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Felipe Navarro López de Chicheri: Good morning, and welcome to MAPFRE's Full Year 2025 Activity Update. This is Felipe Navarro, Deputy General Manager of the Finance area. We are pleased to have here with us, Antonio Huertas, the Group Executive Chairman. He will make a few opening remarks and will give an overview of business trends and developments. Following to that, José Luis Jiménez, the Group CFO, will give us a brief overview of the IFRS figures and will discuss the main financials under local accounting. I will walk us through the balance sheet and capital-related topics. Before we begin, just a few reminders. Interpretation services are available, both here and online. So feel free to choose the language you prefer, either English or Spanish. At the end of the presentation, we will open up the Q&A. Questions can be made in either language. I will now hand the floor over to Antonio Huertas. Antonio Huertas Mejías: Thank you, Felipe. Hello, everyone, and thank you for your time today, both of you here in person or those connected online. Firstly, I must express the Board of Directors' satisfaction with the results we have just presented. You have seen, 2025 was an excellent year for MAPFRE. It was a year in which we exceeded our main business targets with significant improvements in our main technical ratios as well as achieving significant strategic advances. In terms of net attributable profit, we had another record year with EUR 1.08 billion, representing an increase of almost 20%. But we must remember that gross profit exceeded EUR 2.4 billion, also representing a spectacular improvement of 20%. Premiums also reached an all-time high, exceeding EUR 29 billion, also up 20%. And we cannot forget to mention that total income, including financial income, exceeded EUR 34 billion for the first time. We have once again outperformed all the financial targets that we updated and presented in the last AGM despite the fact that the international economic environment has affected our growth in euros. In this context, exchange rate depreciations have negatively impacted our business volumes, especially those currencies that have the greatest weight in our accounts such as the Brazilian real, the U.S. dollar, the Turkish lira and other Latin American currencies. Premium grew by 3.6% in euros, but at constant exchange rates, this figure would more than double, reaching almost 8%. Non-Life, which is 3/4 of our business continues to benefit from technical improvements, growing 6% at constant exchange rates or 1.5% in euros to over EUR 22 billion. Life business is also up nearly 15% at constant exchange rates, almost 12% in euros to over EUR 6.6 billion. The Non-Life combined ratio now stands at an excellent 92.2%, representing a decrease of more than 2 points. This is the best combined ratio our group has achieved in the last 15 years. The technical improvement has been impressive with all geographical areas and all businesses showing a significant reduction in their combined ratio. Particularly notable is the sharp reduction in the claim ratio to 65%. ROE stands at a healthy 12.4%. Excluding noncash one-offs in the third quarter, profit would have exceeded EUR 1.1 billion and ROE would have been over 30%. Our capital base remains strong despite market volatility with shareholders' equity to up over 5% during the year, just shy of EUR 9 billion, and the solvency ratio was 210% at the end of September. These excellent results have enabled us to propose a final dividend of EUR 0.11 per share, fulfilling our commitment for another year to pay out at least 50% of our profits. Next, the following slide, allow me to comment on the key data from our most relevant activities, which shows excellent underlying trends. Starting with insurance operations in the different regions, Iberia has delivered an excellent technical and commercial performance and has once again achieved outstanding results, thanks to a solid and well-diversified business. Net profit was EUR 450 million, up 23% with significant contributions from both Life and Non-life businesses. Technical management continues to improve in all areas. The Motor business has experienced a clear change in trend, once again becoming a significant contributor to the result with a result up over EUR 100 million and the combined ratio that has fallen by almost 7 points to 98.5%. General Non-life and Accident & Health businesses are also solid with both combined ratios around 94%. LATAM also showed solid underlying results with a net profit of EUR 365 million. The combined ratio stands at 84.6% with most countries well below 100%. Brazil remains a key driver of profitability, supported by high financial income and solid technical margins. Net profit reached a record level of around EUR 270 million, an increase of 5%. North America also posted record results of nearly EUR 140 million, up 42%. The operational improvements implemented in recent years have paid off and combined ratios in the U.S. are now the best ever. Finally, MAPFRE RE recorded a profit of EUR 381 million, up 17% with a combined ratio of 91.2% indicating that both Reinsurance and Global Risk has performed excellently with historic results. It's true that it has not been a particularly intense year in terms of major catastrophes, but the frequency of weather events is not decreasing globally and the increase of secondary perils in the industry is significant. In our case, our technical rigor in underwriting and risk selection, our diversified business model and appropriate retrocession program have helped us to achieve these magnificent results. In addition, reserves remain close to the upper end of our confidence interval. We are extremely satisfied with this year's historic results and the Board of Directors has proposed a final dividend of EUR 0.11, representing a 15.8% increase to be approved at the AGM on March 13. This is the highest dividend paid ever and the fifth consecutive increase in 3 years, bringing the total dividend against 2025 to EUR 0.18, up 12.5%. Total dividends reached EUR 454 million with a payout of 51.4%. The average dividend yield for 2025 was 4.6%. The average dividend yield for -- okay, I already said. Over the last 5 years, MAPFRE has paid out EUR 2.3 billion to its shareholders, fully in cash. Now -- I will now hand the floor over to José Luis. José Jiménez Guajardo-Fajardo: Thank you, Antonio. Before moving into the details of the local figures, I would like to briefly comment on the main KPIs under IFRS compared to local GAAP, which are very aligned. Insurance revenue, which reached a little over EUR 26 billion is up over 3%. At constant exchange rates, growth is 7.6%. The net result stands at EUR 1,133 million under IFRS, EUR 54 million higher than local GAAP. IFRS 17 had a EUR 43 million positive impact. The impact of discounting and the risk margin offset a negative impact from the loss company, which mainly affected the Life business in Colombia during the year. IFRS 9 had a positive EUR 11 million impact, the positive impact of mutual fund valuation booked in P&L offset the realized gains on equity recorded under ICI. Shareholders' equity amounts to EUR 9.4 billion, and return on equity was 12.4% with similar trends under local GAAP. The growth CCM was EUR 2.6 billion, up almost 4% and was EUR 1.6 billion after taxes and minorities, mainly from the contribution of new business. The 90% combined ratio under IFRS is below the local figure. Mainly due to the discount factor, we had a 1.4 point impact. I will now discuss the key trends by region. In Iberia, total premiums are growing over 10% with solid momentum across most business lines. Non-Life is up 5%, while Life has increased over 23%, supported by remarkable performance in savings. The combined ratio has improved more than 3 points, reaching 95.8%. The return on equity is now over 2 points to 13.6%. Profitability in LATAM has been excellent with a return on equity of nearly 16% despite some one-off and currency depreciations. Brazil reached a record high result, posting a return on equity of close to 28%, with improved technical ratios and strong investment returns. The Non-Life combined ratio remains outstanding at 72%. In euros, premiums are down 10% with almost 7-point drag from foreign exchange rates. The decline reflects a slowdown in lending-linked products due to higher interest rates. In the rest of LATAM, premiums are over 5% in euros with a strong local currency growth in key markets like Mexico, Colombia and Peru. The combined ratio has improved in most countries standing at 98.8% for the region. The net result was EUR 97 million with 2 relevant negative impact. EUR 37 million in Mexico from the change to VAT treatment for insurance companies and EUR 57 million in Colombia due to the 23% minimum wage increase, mainly affecting annuities reference to inflation. Overall, trend across the region are still strong, and we are confident that the region will continue to prove resilient as we have been successfully operating in these markets for years. In North America, premiums are down over 4% in euros due to the U.S. dollar depreciation. In a record profit year, the combined ratio is down to 95.4%, improving 3 points. In EMEA, losses in Germany and Italy are down. The region is reporting its third consecutive quarter of positive numbers with a EUR 60 million profit compared to EUR 30 million in losses last year with an 8-point reduction in the combined ratio. Regarding MAPFRE RE, in terms of growth, premiums are in line with last year. The non-group Reinsurance business around 40% at constant exchange rates. In terms of profitability, it has been a good year after a very quiet hurricane season. There was a partial release of reserve in the fourth quarter. Some of this prudence was applied to claims on a case-by-case basis. The combined ratio includes around 2.5 points of total addition reserve prudence at year-end. There has also been a one-off tax impact for around EUR 45 million in the fourth quarter due to a prudent approach related to doubling position in some Latin American countries. MAWDY continues to contribute positively with a net result of EUR 6 million. Finally, I would like to comment that the net hyperinflation adjustment are down from EUR 60 million last year to EUR 31 million, mainly from the case of Argentina. General P&C lines continue to benefit from disciplined technical management, solid market presence and diversification. Premiums are down, affected by the Brazilian real and the U.S. dollar. The combined ratio remained excellent at 80%. In Iberia, premiums are up 7%, with a strong performance in key segments with commercial lines growing 10%. The combined ratio stands at 94%, thanks to diversification, a prudent underwriting approach and comprehensive reinsurance protection. In Brazil, premiums declined 8.5% in euros, mainly due to the currency depreciation. Furthermore, agricultural insurance remained affected by high interest rates, while other retail and industrial lines experienced notable growth. The combined ratio was stable and 63% supported by Agro. In North America, premiums are impacted by dollar depreciation while the combined rate has improved more than 5 points to 79%, supported by prior year tariff increases as well as lower weather-related claims. Regarding Motor, the fourth quarter result confirms the positive trends with significant advance in profitability in most markets. The combined ratio is below 100% with a 5-point improvement year-on-year. In Iberia, the combined ratio was 98.5%, improving 7 points. Premiums are growing 3%, with average premium up 7.5% compared to the market at 6%. In Brazil, premiums are down mainly due to the currency depreciation. The combined ratio remained stable, in line with higher interest rates. In North America, premiums also declined due to weaker currency. Profit amounts to EUR 72 million, up more than 80% with the combined ratio down more than 3 points. Regarding other regions, in other LATAM, almost all units reported combined ratios below 100%. In EMEA, the combined ratio is also down 11 points from 122 to 111, driven by an over 20-point reduction in Germany. In conclusion, technical management remains strong with measures continue to deliver. On the Life business, sorry -- that's it. On the life business, premiums are up 12% with the strong trends in Iberia and other LATAM. The Life business continues to be very profitable, adding almost EUR 200 million to the group results. In Iberia, premiums are growing 24% due to a strong performance in savings. The Protection business is up over 4%, in line with previous trends. The net result was EUR 132 million, down year-on-year, largely driven by lower financial gains. In Brazil, premiums are down 30%, impacted by the currency as well as the high interest rate environment, which affect lending and related Life Protection product demand. Earnings remained strong, up 5% with a combined ratio of 82%, down 2 points year-on-year. Regarding other markets, volumes were up 80% laid by other LATAM, with not wealthy performance in Mexico growing 40%. The loss in other largely reflects the increase in the minimum wage in Colombia. And now I will hand the floor over to Felipe to discuss the main balance sheet items. Felipe Navarro López de Chicheri: Thank you very much, José Luis. Shareholders' equity stands at strong at over EUR 8.9 billion, up more than 5% at year-end on the back of the excellent results that we're presenting. The improved valuation of the investment portfolio offsets negative conversion differences, mainly from the U.S. dollar, which is now down nearly 12%. Leverage is below 21% at the beginning of the year. We completed a dual tranche of 6- and 10-year senior transaction for a total of EUR 1 billion with 3.125 and 3.625 coupons. Leverage would increase temporarily, but still acceptable levels until we repay the upcoming senior bond maturity in May. We don't expect any other major changes in our capital structure in the near future. Our strong balance sheet supported by strong cash flow generation within MAPFRE Group. In 2025, EUR 900 million was upstreamed from subsidiaries, EUR 200 million higher than the previous year. Iberia remains the most important contributor with EUR 348 million. LATAM contributed EUR 300 million, including an extraordinary dividend of EUR 80 million in Brazil, corresponding to 2026, which was upstream to avoid fiscal changes that have taken effect this year. North America contributed over EUR 70 million. MAPFRE RE upstreamed almost EUR 150 million this year. In conclusion, our sources of cash generation are solid and well diversified. Total assets under management stand at almost EUR 65 billion, growing 9% year-on-year. Third-party assets now reach over EUR 16 billion, up 20%. In Spain, we remain among the top nonbank asset managers. We maintain our commitment to being a benchmark in financing planning. In 2025, MAPFRE was among the top 5 largest players in pension plans, leading growth with a rate of 8%. As for mutual funds, growth has been outstanding, reaching 32% year-on-year. Brazil was the main contributor to this expansion, nearly doubling assets under management throughout our local asset manager. In Spain, our own channel delivered double-digit growth with an increase of 16%, while the bancassurance channel posted a 39% increase. Our own investment portfolio amounts to EUR 48.4 billion with asset allocation stable throughout the year. It remains defensive with a focus on quality, diversification and high liquidity and with a low exposure in alternative assets. Regarding the euro area, investment portfolio yields are up over 50 basis points at MAPFRE RE, while Iberia yields and duration are slightly down. In other markets, Brazilian portfolio yields increased over 230 basis points during the year, reaching 12.7%. In North America, yields are up -- are also up around 25 basis points to over 3.2%. Realized gains and losses are very stable, around EUR 43 million as in Non-Life financial income. I would like to comment on a few exceptional items. In Iberia, there was a prudent accelerated amortization of intangibles, which had a EUR 24 million impact. And in North America, there was a reclassification of premium finance fees in line with market practice with around EUR 20 million impact. Financial income continues to be a tailwind, and our portfolios are well positioned to face market volatility. I will now hand the floor over to Antonio to make a few closing remarks. Antonio Huertas Mejías: Thank you, Felipe. The close of 2025 marks the end of the second year of our 2024-2026 strategic plan. We have continued to implement a strategy focusing on growth and results. MAPFRE has continued to enhance in technical excellence, improving productivity and leveraging its potential across all markets, while transforming our business. Referring to our financial commitments, we are very pleased with our achievements in the current plan. Over the last 2 years, average growth has been 3.1%, but at constant exchange rates, it would have been 7%, meaning we would have met our targets. Our average ROE target for the period is 11% to 12%, excluding extraordinary items, and we reached over 13% at the year-end. Combined ratio performance was also excellent in 2025 at 92.2%, well below the target range. These financial figures are on the local accounting, but we are very much in line with IFRS metrics. We remain highly committed to sustainability, having achieved notable improvements. We are now carbon neutral in 13 countries and improving from 10 in 2024. Over 93% of our portfolio is now ESG rated. Additionally, women now occupy 35.4% of top management positions globally. We have strengthened our underlying profits in all geographies and products. Those excellent results are mainly due to our geographical diversification. Results in Brazil, North America and MAPFRE RE have been outstanding, reaching historic highs. And Iberia has returned to normalized results, maintaining its position as the group's leading contributor. In addition, in terms of business development, MAPFRE continues to occupy leading positions in our main markets. The technical work carried out after the pandemic has borne fruit. We have reduced the combined ratio by more than 5 points since 2023 with improvement in technical management and disciplined underwriting, and we have increased prudence in our reserves. In addition to all this, improving efficiency remains a strategic pillar. We maintain a strict cost control despite inflation with a stable paying ratio. Finally, it's worth highlighting the strength of our balance sheet, which has allowed us over the years to absorb extraordinary events without a significant impact on the final results. To conclude, I would like to comment on our general expectations for 2026. First, despite a complex macroeconomic context, MAPFRE will continue to demonstrate its ability to navigate these circumstances successfully. This year, we will focus more on growth, especially in those segments where profitability has already reached acceptable levels, including Motor. In addition, the impact of currencies is expected to be more benign than in 2025. We believe that our new brand identity launched this year will also help the business to develop. Our ambition is now also being rolled out with a new global modern and digitally connected brand. This new corporate identity strengthens our positioning in the markets, bringing us closer to our customers and other stakeholders. Despite our excellent ratios and profitability levels, we believe that we can still grow profitably, thanks to our diversified business model and the effect of the entire transformation process we are undergoing. Financial income should also continue to be a favorable factor and the portfolios are well positioned to cope with possible interest rate declines. In conclusion, we are optimistic about MAPFRE's performance in 2026, as well we are prepared to face the challenges post by global uncertainty and the competitive insurance of reinsurance market. The dividends announced today reinforces our confidence in the future of our firm commitment to continue creating value for our shareholders. I will now give the floor to Felipe to start the Q&A session. Felipe Navarro López de Chicheri: Thank you very much, Antonio. Although most of you are already familiar with the process, let me quickly remind you of the details of the Q&A session. [Operator Instructions] And we will try to answer them as time allows. The IR team, I remind you that the IR team will be available for any pending questions after the call. And before that, I would like to apologize because of the information that we provided and the CNMV that was a little bit late this morning due to a technical issue with the connection with -- to the CNMV. I mean this is something that was out of our possibilities. So it is something that we could not do anything else. I would like to start with the floor in the room. Felipe Navarro López de Chicheri: [Interpreted] I'm switching over to Spanish now. [Operator Instructions] Maria Paz Ojeda Fernandez: [Interpreted] Can you hear me? Great. Maria Paz Ojeda from Banco Sabadell. Well, first of all, congratulations on your performance. It's really been outstanding for the past 18 months. I have three questions. First, about the Colombia regulation changes and those in Mexico, too. What do you foresee for 2026 and the future years because these changes, I'm sure, would affect your rating, right? So any possibilities to raise premiums or prices to offset that VAT-related cost increase and the new salaries? As for the business in North America, well, that 68% combined ratio sounds spectacular. I understand it takes support on milder weather with fewer claims. So what do you think the additional impact would be if a standard amount of weather events were to take place? And also, do you have any information on the firm storm that blew over the whole East Coast in January? And also, could you give us some flavor on the lawsuit or the differences in opinion with the AAA club vis-a-vis the contract renewal? And another question, we see that most of the targets, both the combined ratio and return on equity are being met easily in your strategic plan into next year. So what's your perspective on whether you can go more ambitious in your targets? Antonio Huertas Mejías: [Interpreted] Okay, I will start dealing with the one-offs in Mexico and Colombia, and then José Luis will deal with the rest of your question. Yes, certainly, these one-offs are not your usual run-of-the-mill one-offs. You come up with, as part of our business, like extreme weather events or similar circumstances leading to potential impairments or not. These circumstances are entirely out of our management's sphere. Well, in Colombia, we had the December 29 change in the salary in Mexico. We have a long-standing dispute with the Mexican tax administration, which demanded a legal review of VAT and insurance. And finally, the photo finish was that the industry negotiated with the Mexican government to get retroactive action to only 2025 and of course, from 2026 on. MAPFRE has already provisioned the total impact expected for 2025 and the expected impact for 2026. I'm sorry, but I cannot claim for fee or premium adjustments. But as soon as possible, when we start dealing with renewals after the second quarter, we will have full view of the total impact. And we will have fully transferred this to our clients. The total impact is calculated in over $1 billion for the Mexican insurance industry. And for us, it's a limited impact, but it's still part of that price transfer that we couldn't do in 2025. And as for the case in Colombia, the increase in minimum wage, 23% unexpected increase that affects only some specific product of life rent. And they're already in runoff in Colombia for MAPFRE. So we don't need to do much. We already have provisions to deal with this one-off, the new rates, which are after all indexed to the minimum wage. But I insist it's a runoff portfolio. So it won't have a huge impact. Well, the impact was relevant for the industry, particularly for very specific product, as I said. And then quickly, AAA agency. We know that in late 2026, our 20-year agreement with AAA would come to an end. We knew that 20 years ago, and we've done our best to continue to be exclusive distributors for AAA. From now on, we will not be exclusive since AAA is opening an insurance company panel. The distribution capacity for AAA is very relevant, but we have a lot of capacity beyond AAA to deal with this new circumstances that affect Nordisk, mostly in Massachusetts. The fact that they've been less than compliant during the past year is truly nonrelevant. And I'm sure we will come to an agreement so that this last year of the contract will be as smooth as possible. And then we have another agreement with another AAA, a joint venture we have in Washington and Oregon is totally unrelated because we're talking about federated separate institutions. Our joint venture for auto is growing as expected, and there's nothing to report there. José Jiménez Guajardo-Fajardo: [Interpreted] As for the storms, and the U.S. Maria path, we're not aware that there are any material things to report. This is just business as usual in the United States. Right now, their temperatures are minus 10, minus 20 Celsius. So nothing new to report. We're provisioning for it. Maybe at this time of the year, some weather events might affect California, too. But we -- only time will tell. We just know that the January storms have not had any material effects, nothing that is not usual in that considering the geography. About the performance of our strategy plan, we're more than pleased. We're over complying. It's been years of work to come to this point, and we're in a very healthy situation. However, it's too soon to tell. We would have to wait until the AGM to see if the new targets are, as you say, more demanding. Felipe Navarro López de Chicheri: [Interpreted] I will go over one of the questions that came in online about AI. Apparently, news is broken about an intermediary who was coming to an agreement with ChatGPT and changes in the distribution considering AI. Do we consider that this agreement between Tuio and ChatGPT might become credible disruption in the insurance distribution market? That's part of the question. And what we see as the general impact of AI on our business? So in sum, how could AI affect the business? And what consequences could it have on the general insurance business? Antonio Huertas Mejías: [Interpreted] Yes, maybe a few thoughts on the matter. Certainly, we've been following the news with great interest. It does not come as a surprise because the benefits of AI for the present and the near future of all businesses are very clear. We just need to continue to integrate AI into our distribution initiatives. But that's valid not only for the insurance business. I guess many of us have been using AI to prepare a holiday or to compare pricing in other products. So AI is likely to change our lives, most likely for the better, just for simplification purposes. I mean price comparative tables were already out there before AI. The new technology has enabled to compare prices for a long time. Obviously, AI can make things better and quicker. But dealing with distribution, well, MAPFRE is a multichannel group that works and will continue to work with all sorts of distributors. We were connected to many insurtechs that have tested different models. Well, they don't go directly into insurance because our installed capacities are beyond their means. But anything enabling financial and insurance inclusion, particularly in markets not served by traditional mediation are welcome. A large part of the world population, even European and Spanish population don't have access to simple products just because they don't understand products that seems so simple, but it might look like they don't deserve too much explanation. Products like Life, Risk, ensuring fundamental tools, for instance, MAPFRE has been using AI for some time now. Two years ago, we were the first company to generate our own manifesto to communicate our intention to work on AI and make that connection transparent. We contemplate a people-focused AI with the same values and principles, we have stood for in our face-to-face relationship with clients to make sure that our clients will always have a consultant mediator, a professional expert to walk them side by side and generate trust in the product. So long-live technology, and we welcome any company that can give greater access to citizens to generate better financial and insurance inclusion. José Jiménez Guajardo-Fajardo: [Interpreted] If I may, Antonio, we've been reading about stock performance of companies and some reports seem exaggerated. A company in Spain with a turnover of EUR 15 million shaking long-established companies in their boots doesn't seem to make a lot of sense. Maybe if we think back, remember the Lemonade case in the U.S., it felt very disruptive only 5 years ago, and look where we are now in terms of balance sheet and return on equity. I do understand that it's loud news and the industry has grown impressively in the past year, but that's all there is. Felipe Navarro López de Chicheri: [Interpreted] And an extension of this question. Do we expect to start selling small ticket products customized to the new possibilities, AI yields, simpler products, for instance? Antonio Huertas Mejías: [Interpreted] Well, we cannot answer that at this point. We -- like I said, we are working with several AI suppliers. We're just getting to know artificial intelligence, and we're using it for both back office and front office to offer our clients solutions that will truly have an impact on their real lives. Only in Spain, over 6 million users in Spain benefited from AI solutions to facilitate connectivity. And well, in Brazil and the United States, we have very interesting projects to keep growing that accessibility. But AI product distribution seems a little bit more distant in the future. When there's real capacity to do so in the future, we will consider it. But so far, our model remains based on being close to the ground and relying on experts because insurance products are very complicated, even the most traditional products like auto, we don't want to cheapen those products as they're enormously complicated in technical terms and in terms of third-party accountability and liability. Felipe Navarro López de Chicheri: [Interpreted] Well, I think this answers Ivan Bokhmat's, Maks Mishyn and David Barma's questions online. Back to the room. Do we have any hands raised? Juan Lopez Cobo: [Interpreted] Juan Pablo Lopez, from Santander. Two questions. The first one about your solvency ratio, which continues to do better and better, 8 percentage points throughout the year within your target range. So two questions. One, about the dividend. The dividend seems to keep growing, a payout of 51%. Have you, at any point, considered paying out more considering your extraordinary capital position? And second, about potential M&As. We've seen some news in Portugal, a company that might potentially go public or bank that went dual track, they tried to go public and then finally got sold. If there were that possibility for that dual track, would you be at all interested? And could you update or are you willing to update your position on M&A? And then about Reinsurance, you come from a particularly good quarter, particularly in Non-Life. So have you released any provisions? PBT was particularly solid. And then on tax. Tax line was a little bit high this quarter. I understand there are one-offs and catch-ups. Can you shed some light on that? José Jiménez Guajardo-Fajardo: [Interpreted] Well, you asked about our solvency ratio. We're pretty pleased that we're within the range of 1.75% to 2.25% established by the Board. We're approaching the top of the bracket, and we're feeling comfortable. About the dividend, well, today, we announced a dividend of EUR 0.18, the highest paid by this company so far and that stands for 12.5% above last year's number, and it's the fifth dividend raise in the past 5 years. The message the Board has always conveyed is that if the business does better, so will the dividend. And I believe we have maintained our promise. So the outlook is positive, and I believe that for this year -- well, this year is looking good. Certainly, last year, we had some headwinds on the side of currencies and these one-offs we've been mentioning in Colombia and Mexico, which should not be recurrent. No reason to do so. And in the case of Colombia, this was certainly a one-off. There's always been a slight scale when it comes to raising salaries. But this time, since there were Congress and presidential elections, there was a public policy decision made to raise the minimum salary above reasonable levels. Felipe Navarro López de Chicheri: [Interpreted] And I can say something maybe about the company, which is now going to trade in the Brazilian stock market. MAPFRE is not going to invest a minority stake in a company that's going through an IPO. Just -- it's not part of our core strategy. And then as for any M&A activity, our objectives are still the same as we've said over and over, we want more potential for distribution in Spain. We want to deploy a bit more capital in Europe. And one of our goals is definitely Germany, but we won't be opening up any more markets or companies. And in LATAM, we're always looking up for opportunities in Brazil and Mexico. And in Brazil, anything that doesn't, of course, impinge upon our agreement with Banco do Brasil. And in the U.S., if we find something that could complement a single-state company, for instance, that could be complementary to our current business in the U.S. And as for the Reinsurance topic, it's true that there is that tax impact of EUR 45 million, but that is because of an interpretation on the risk of double taxation, how that could affect Reinsurance. So we've provisioned those EUR 45 million from a purely prudential perspective. As for the reserves, you're right that there has been some release of provisions in the fourth quarter because of two basic effects. First, as we said throughout the year, we have been preparing for a hurricane season, which looked like it was going to be much longer or later. But in the end, it was almost nonexistent. And so it didn't affect our insured footprint and so we've released those provisions in a standard way. And then we strengthened provisions relative to some case-by-case claims. What we do at the end of the year is check and see how our case-by-case claims have evolved and we provision accordingly. So the releases are not that significant in terms of MAPFRE RE's figures. We still have very solid reserves with an impact of about 2.5 points in the combined ratio because of the reinforcement of these reserves and with amazing results in 2025. And now if you want, we can read out a question that has come in. The people who are following this online, they're asking, from Barclays, how do we expect to benefit from the reform of Solvency II? José Jiménez Guajardo-Fajardo: [Interpreted] Well, I think like most of the European insurance sector, the reforms, which will come into force if everything goes according to plan in June of 2027, will have a positive impact for most insurers. In our case, we're estimating initially that it could be between 3 and 5 additional points of solvency. Felipe Navarro López de Chicheri: [Interpreted] Thank you very much, José Luis. Another small question, which I might perhaps answer myself, if I may, because it's about Malta. They're asking about the estimated impact of storm Harry on Malta and Italy, and there probably will be some claims. Well, Malta is a country that has constantly been affected by these types of storms with winds, which are practically hurricane-forced winds and the company has sufficient financial resilience to cover such claims, and it's basically claims to do with property and house insurance near the other coast. As for the impact of Malta for the whole group, it's really not going to have any effect because Malta's figures are solid enough to cover of all this on its own. As for Italy, mostly there's an Auto portfolio, auto affected by the storm, where cars affected by -- vehicles affected by the storm were very few. So we don't expect it to have a significant impact. Questions from the room? Paco? Francisco Riquel: [Interpreted] Yes, I'm Francisco Riquel from Alantra. Antonio, you said that the priority for 2026 is to grow premiums, again, particularly in the Auto business. The number of policies has continued to drop in the main markets, Spain, Brazil, the U.S. How compatible is that with growing premiums profitably? Because in the case of Spain, your combined ratio for Auto is still 98.5%, which is the high end of your range. Do you think you can grow and still continue to improve profitability? And how? And the second question about Brazil. The yield curve anticipates a fall of 500 basis points in 2 years. You've reduced the tenor of your portfolio to 1.5 years. So -- but how sustainable is Brazil's profitability in general? Antonio Huertas Mejías: [Interpreted] Okay. Paco, let me start with the part about growth. I don't know if going back to growth is the right way to put it. It's about bolstering the growth because we've always had growth in policies, in customers, not in every market, but definitely in premiums. It's true that we have seen less growth in Europe in the consolidated accounts. But in local currency, except for Brazil, all the other markets grew even above inflation, which is no longer a major concern right now. And with our forecast, we can expect it to be for the next 2 or 3 years. Growing the number of customers is the biggest challenge, but that is our focus always, customer selection and risk selection processes as well as the market pricing we do to adjust the price to the risk we're taking on is our standard business. Auto, of course, is the business that was under more pressure in the last 4 years because of impairment in that line. Also, Health because of sector inflation, not the general inflation, but sector inflation were significant, and it probably is still somewhat high. We know of the pressures that are present in markets because manufacturers, OEMs are exposed to that with the inflow of Chinese cars at much lower prices. And electric, EV, which are very welcome and very necessary, also have much higher prices than their equivalent combustion engine cars. So that means that there's price on -- there's rising prices for insurance as well. But we don't contemplate seeing combined ratios in Spain or in other mature markets, like the ones we had back in the day. We trust that the combination of good customer selection, combining all their policies and other insurance needs and their MAPFRE brands make us feel that with reasonable technical profit, we can offer solutions that will make it worth their while to be in MAPFRE, where they have 2 cars, for instance, plus health insurance, plus property insurance and some life insurance products means we can be very good at pricing. The techniques we have to predict future claim rates for those customers also means that we can be very competitive and therefore, see higher growth rates for Auto in a very competitive market like Spain or Brazil or the U.S. But in general, we're satisfied. We made some tough decisions with some fleet business and some group business to improve that combined ratio, which will nevertheless continue to improve based on our forecast, based on our pricing calculations will continue to improve slightly. In the rest of the world with a high interest rate environment, you can have combined ratios around 100% or even a bit higher without any problem. But we are quite optimistic with regards to the growth of that segment, and we maintain our guidance in the strategic plan, although we are, of course, saying that that's for constant euros. But we do expect some tailwinds this next year with currency exchange and that both the dollar and the real and the Mexican peso might begin to recover, and that could also help drive our growth in current euros. José Jiménez Guajardo-Fajardo: [Interpreted] And as for Brazil, you were asking what's going to happen with the yield curve. It's already discounting lower rates, probably around 2, 3 points for the next months. And I would start by focusing on Brazil's excellent performance last year, even though it wasn't easy because of the currency depreciation effect. But remember that at some point, even the U.S. administration levied 50% tariff on Brazil imports when it's a net exporting -- commodity exporting economy to the U.S. and other markets. But I think that very negative context last year has, I think, turned around quite quickly. I would say that probably Latin America in general and Brazil especially could be some of the economies that will benefit the most during this year. And so I think it's what we're seeing in the forecast and reports of most of the major investment banks. Lower interest rates in Brazil would be a very positive outcome for us. Of course, maybe our investment portfolio, instead of having a gross yield of 15% might see that come down a couple of points. But the important thing is the growth of our business, particularly protection insurance, which is linked to credit. It's very difficult to sell credit when rates -- imagine if your reborrow was 15% here, very few people would ask for loans. But as rates come down, gradually, I think that will definitely drive sales. It's what we're seeing already. Our relationship with our partner, the Banco do Brasil is excellent. Our business with them is also growing very well, and we're seeing a recovery in commodity prices as well. So I think overall, this year for Brazil should be an excellent year. Felipe Navarro López de Chicheri: [Interpreted] And I think we've answered all the questions, right, except Francisco, maybe if you want to add anything? No. Thank you very much. I'm going to group some questions that have come in about the business in Spain. JB Capital, Maks is asking about the impact of the storms we've had this first quarter in Spain. Also asking about the target for the combined ratio in Iberia now that it's already improved and whether we will achieve a combined ratio group target with the Auto business in Iberia? And what kind of average premium hike are we implementing? And what do we expect from our policy portfolio? Do we expect it to grow or not? Antonio Huertas Mejías: [Interpreted] Okay. The storms are, of course, extremely unfortunate because they're happening one after another in some parts of the country. But luckily, in Spain, we do have one of the best systems for managing storm damage anywhere in the world since we have full coverage for everyone through the insurance compensation consortium when damage is caused by wind or flooding. And we've received about 40,000 claims in the last weeks to do with these storms and the number will continue to grow since there have been new storms coming in nonstop, although perhaps not as extreme, and they are unfortunately causing a lot of disruption in people's lives, and particularly in rural areas. MAPFRE is already responding personally to everything that is to do water damage covered by our policies and our internal numbers are not that significant and will not really have a material impact on our P&L with the information we have so far. But again, a lot of it is going to be covered by the consortium, which as we saw in the Valencia floods worked exemplary with over EUR 5 billion damages insured covered in just a year and a bit very successfully by the consortium and with no impact on the P&L of the sector. These were contributions that we have made to the consortium over the years and which were then paid out to cover those claims. And with the flood, we've not had to raise premiums to our clients because there was enough fund in that consortium pool to cover everything, and the same will happen now. José Jiménez Guajardo-Fajardo: [Interpreted] As for the other questions that Felipe summarized, I would say that, in general, for the group or for Spain, the ambition is to grow and to grow in euros. And last year, at the group level, we had this ForEx effect, but often in the currency markets, there's always a sort of regression to the mean as we're seeing in this year so far. And in Spain, the Life and the Non-Life segments are going to grow, but not at any price, of course, as we said in the strategic plan, we seek profitable growth. And so in the last few years, what we did was to adjust our portfolio sharply to go back to profitability. So reducing the combined ratio 7 points in Spain was the great achievement of this last year. And so our ambition to grow will focus on both the digital channels, but also the offices. And we have different levers we can use to have a positive result this year. As we said at the beginning, there's the whole rebranding and how that could boost the business, but also the over 3,000 offices. It's the second largest distribution network of the financial sector in Spain, and also with a new commercial structure, which was launched on January 1 as well, which was a major challenge, in order to help simplify and improve the efficiency for clients. And you were asking also about the Life Savings business. Yes, the strong growth, the over EUR 3 billion in premiums we've seen in Spain, will it continue? Well, we're doing everything we can to become a major actor in financial planning. And our ambition is still to grow. And to do that, apart from this network, we have over 10,000 professionals ready to advice and sell financial products, both insurers and the asset management side. And in 2026, we feel fairly optimistic. It's true that most of our competitors, which are banks, are not really competing very aggressively in this segment, and we are very close to the customers. And we think that just like in Non-Life, a personal touch and knowing your customer is particularly important, which doesn't mean we can't use digital channels and applications, but things are perfectly compatible with hybrid models, but ultimately, like everything in life, what really matters is the human touch and having someone who knows you, who knows what you need and who can help you do the best financial planning for your own personal needs. So we are ambitious with growth in that area. And in 2026, we expect to exceed the targets of 2025. Felipe Navarro López de Chicheri: [Interpreted] Thank you. I think that was a pretty good answer for the questions from UBS, from JB Capital, from Autonomous Research. And now we're going to move to the Reinsurance sector. There's lots of questions with respect to 2026. What do we think will be the trend for premiums? I think we've already explained about the releasing of provisions in the year and especially about renewals in this first part of the year and what we expect for next year. And an obvious question, which is how much have we saved or how the savings we've achieved in our reinsurance program affected our results? Antonio Huertas Mejías: [Interpreted] Yes, the early year campaign just ended. We have two, January and June. As for MAPFRE's hedging, well, most of it is about midyear and become effective in July. And then MAPFRE RE and group provisions are mostly placed in January. And yes, as expected, the market has grown rates substantially for the past 3 years, a circumstance that MAPFRE ceased to make a capital extension. And considering a benign performance of the weather, if we can call it that, we still have weather event, but perhaps in areas that have lower insuring and reinsuring effect. So this year, reduction -- an incipient reduction is observed, not a very relevant one because it allows us to accommodate for new coverage and grow MAPFRE's appetite with the possibility to integrate purchases for second or third-party event at practically no cost. Of course, this situation generates more tension in reinsurers because they need to seek new clients and fight over the existing ones with more competitive pricing, and that will entail small reductions in performance and, of course, make our -- or generate more competitiveness amongst our reinsurance businesses. But we have a solid footprint in different markets, and we have enough commercial products that have greater possibilities for reinsurance. As a matter of fact, we have nearly automatic coverage programs facilitated by MAPFRE RE to enhance business insurance, and it actually boosts our growth. As we have seen in the past, we haven't reached -- we haven't hit rock bottom in price terms. If large events take place next year, we will go back to previous numbers. And if we have to carry that out to clients or final consumers, we will do so with more thorough complicated products. And of course, we will work harder on our relationship with clients, but we do not see any threats on the horizon for the immediate performance of MAPFRE RE and Global RE, which may be more exposed to price reductions in certain businesses. We still have plenty of room to grow in terms of market share in several areas. Felipe Navarro López de Chicheri: [Interpreted] Thank you. I believe that with this, we've answered Carlos Peixoto, [ Max Migliorini ], and August Marcan on MAPFRE RE. We also have questions about Colombia. Is MAPFRE affected by the project to increase tax withholdings to nonresidents in Colombia? We have a question about Mexico. Is there any impact that carries over to next year? I think we already talked about the nondeductibility of VAT in Auto and Health. But anything to say, José Luis? José Jiménez Guajardo-Fajardo: [Interpreted] Just a reminder, in Mexico, the impact was EUR 37 million. What we did was take the impact recorded in 2025 in the last quarter last year to a possible impact on 2026 to move ahead of the impact, if you will. We are aware that the legislation in Colombia is subject to an appeal in the constitutional court, and we still don't know whether this will have an impact in the case of Colombia or in our business in Colombia. Felipe Navarro López de Chicheri: [Interpreted] Any further questions. I can't see any raised hands in the room. There seems to be none. We do have a question online, and it's a frequent question coming from Maks, JB Capital, about the expected combined ratio in Brazil for -- in 2026 and midterm. Well, the foundation is excellent, isn't it? Right, José Luis? José Jiménez Guajardo-Fajardo: [Interpreted] Well, we always say that things need to get worse for a little bit, but they haven't. We could expect combined ratios to go up a little bit, but at a very positive level for us. Just a few points up will not affect us significantly. Certainly, during the past couple of years, we've had an absence of great disasters in Brazil. Our portfolio is highly diversified per region per crop, and we're not expecting any major events. And if that trend continues, the ratio will be positive and very profitable. And about premiums, because we do see that premiums are more deeply affected by interest rates. Well, as we said during the presentation, we're talking about insurance policies indexed to loans. So a reduction in the interest rate for this kind of activity would be very positive. We cannot quantify the elasticity of this ratio. But in Brazil, we've seen years when levels remained around 2.5%, with strong growth and years where we've reached 15%, which is the real or the actual interest rate, the highest interest rate in the world as the Chair said during the presentation, 15%. As rates go down, well, we know that this would foster investment. And the agricultural sector in Brazil, which is such a relevant one, and with that reduction of tariffs and the foreign policy applied by United State, I think this places the industry in a very positive position. We don't know how long it will take, but it is looking good. Also, this year, presidential elections are scheduled in Brazil, and that will probably bring a new boost to the agricultural business in Brazil. Felipe Navarro López de Chicheri: [Interpreted] A question from [ Vicky Beata ] from Bank of America. Average premium and performance throughout the year and a possible reacceleration on Q4. And does that show a change in market conditions? Or is it rather a matter of product mix and seasonality affecting the fourth quarter? And in more general terms, they ask about pricing expectations for 2026. I understand the question is about Spain, right, particularly the Auto business. José Jiménez Guajardo-Fajardo: [Interpreted] Well, policy price is generated on a client-by-client basis based on risk profile. We're not a single channel company. Many of our clients are very satisfied with the service quality they are getting and price is not a deal breaker. Probably pricing will go above inflation to cover costs, but we do not expect any significant peaks in pricing this year now that the industry has gone back to balance, but we will continue to enhance the combined ratio as we've said a number of times. Felipe Navarro López de Chicheri: [Interpreted] Thank you, José Luis. And about local currency premiums in the U.S. This growth we're beginning to experience, will it be supported by the number of policies or average premiums? Question by Carlos Peixoto. José Jiménez Guajardo-Fajardo: [Interpreted] Well, the United States has a clear target of profitable growth, obviously, give or take currency fluctuations, but the trend we've been observing in the past few months is expected to be maintained in the near future. Felipe Navarro López de Chicheri: [Interpreted] Thank you, José Luis. And one last question from Alessia Magni from Barclays via the app. Alessia asks whether we expect any pressure on combined ratios in any of our markets in 2026? And maybe looking forward into the future, what can we expect for 2027? José Jiménez Guajardo-Fajardo: [Interpreted] Well, that's one very good question with a very difficult answer. Pressure, there will always be pressure on the combined ratio, right? Plenty of factors out there. It depends on competitors and the type of business. In reinsurance, as we said, well, there have been several years with fewer disasters, weather events, and that has led to a small adjustment in prices. But that could change in a matter of hours if anything serious happens. In other markets, at least in general, we've seen some serious ups and downs in Brazil, U.S., Spain, Germany, even Italy. But those fees have been gradually adapted to the actual cost of claims and combined ratios are stable. I cannot foresee any extra pressure anywhere, all things being equal. I mean we will probably run on inertia. Antonio Huertas Mejías: [Interpreted] At any rate, the diversification of the MAPFRE model causes general insurance and damages, insurance will affect our competitors more than it will affect us. And maybe our combined ratio could go up, but we still have margin in the Auto business, for instance where we're slightly below 100%. And I'm sure that as interest ratios go down, there will be pressure to reduce the technical ratio to maintain margins. So that diversification, that offset effect keeps us afloat. We're not optimistic -- that opportunistic to consider that 92% combined ratio will persist, but slightly above that, it's still perfectly acceptable. There are exceptional circumstances like the agriculture insurance in Brazil that has a nonsustainable combined ratio. I'm sure drought will take place in the future. But also we expect to grow in volume because this is a year where fewest policies have been acquired in Brazil because of the incentives that the Brazilian government used to grant agricultures were removed. These subsidies, actually, kept agricultures from getting insurance. I'm sure the premiums will go back up and the combined ratio will go slightly up. But all in all, the general bottom line will remain above expected. Felipe Navarro López de Chicheri: [Interpreted] We don't have any further questions online. Would you like to make any wrap-up comments? Antonio Huertas Mejías: [Interpreted] Well, I'd just like to thank you for following this presentation. It's been an excellent year having seen the best combined ratio ever, we say, over the last 15 years, but actually, it's the best ever since we have records as an international group. And that, I think, shows the consistency of our model. And of course, growth is always going to be the hardest thing to maintain, as you pointed out in your questions, but that's what we're focused on. And our outlook is to continue to grow organically. But of course, we could also take advantage of some M&A opportunities if they develop. Continuing with our traditional model of adding new distribution networks, banking networks to our distribution model through alliances and agreements also add additional capabilities that could help, but always, again, open to any M&A opportunity that might develop to integrate businesses that might be complementary to ours, but always in a consistent way and making sure that it's going to add value for our shareholders medium term. We're not planning to broaden our footprint. That's clear. And the M&A priorities Felipe described are the same. But with -- but knowing we have enough financial capabilities and support from the shareholders to continue to grow in the future. But mostly, the priority is to open up new distribution networks through new agreements and alliances in bancassurance or even through retail distribution like here in Spain with Carrefour, which will now distribute MAPFRE products in our main market, our home markets. So anyway, that's it for 2025. The AGM on March 23 in 2026, the prospects look really good, and we're working already to give you an update on our guidance during that General Shareholders' Meeting and also some indications of our new strategic plan, which will start in 2027. So anyway, I just encourage you that starting February 19, there's going to be a new beautiful exhibition in the MAPFRE Foundation next door here. Anders Zorn, who is an amazing Swedish painter, unknown in Spain, but who was known as the Swedish Sorolla and was extraordinarily important in Madrid's painting of the 19th century in Sweden. And so those of you who're following online might not have a chance to stay now for a drink and some appetizers, but the rest of you definitely invited to join us. And thank you for being here and for helping us be better every year. Thank you. Felipe Navarro López de Chicheri: [Interpreted] Thank you very much, Antonio. I'll remind you that all the documents are posted on our website and with -- and in the CNMV's website. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Trond Johannessen: Good morning, and welcome to this presentation of Pexip's fourth quarter results. My name is Trond Johannessen, and I'm the CEO. Together with me here at Lysaker today, I have our CFO, Oystein Hem; and our Chief Revenue Officer, Asmund Fodstad. Together, we will take you through the highlights of the quarter and what we are focusing on going forward. The standard disclaimers apply as usual. First, a short overview of Pexip for those new to the company. Pexip was founded in 2012, and currently, we operate in 25 countries across the globe. We are a specialist video conferencing and infrastructure company focusing on interoperability and secure and custom meetings. We do software only delivered as a software or software delivered as a service. Pexip has unique and established relationships and partnerships with the leading companies in our industry. We complement and enhance their solutions and do not generally compete with them. Our customers are mainly large organizations in both the private sector and the public sector that have complex needs when it comes to video collaboration. The financial performance is strong and has been continuously improving over the last quarters. Now, to the highlights of the past quarter. Our annual recurring revenues, ARR, grew with USD 8.8 million during the quarter, and this gives us an ARR base of $131 million leaving Q4. This is the top end of the updated Q4 guiding we gave you in December. In Q4, we saw a significant improvement in the growth in Connected Spaces as a result of a couple of large deals that closed in the quarter. In our Secure and Custom business area, the positive development continues, driven by increased awareness around the need for secure and sovereign communication solutions. In Connected Spaces, we also see solid progress on our solutions for native rooms and the launch of Connect for Google Meet hardware in Q4 has been a success, both technically and commercially. EBITDA came in at NOK 94.2 million in the quarter and NOK 316 million for the full year. Free cash flow was NOK 71.9 million in Q4 and NOK 354 million for the full year. If we look at this Q4 performance in the context of the last 12 months, we see an accelerated development on all key parameters. Our total ARR continues to grow, and year-over-year, the growth rate was 16%. Our 12-month rolling EBITDA reached NOK 316 million, which is a 53% improvement since Q4 last year. This corresponds to a 26% EBITDA margin. And finally, the free cash flow in the last 12 months of NOK 354 million is 80% higher than at the same time last year. We take this performance as evidence that we are operating in attractive markets with relevant products and a strong market position. Pexip has 2 main solution areas. Pexip Secure and Custom is privately hosted video meetings that give complete privacy and data control with the desired level of customization. Pexip Connected Spaces is about video meeting interoperability by enabling any meeting room to connect to any meeting platform. Now, a few words about each of these business areas. In Secure and Custom, we are targeting a segment of the video conferencing market that is largely unserved by the major players like Teams, Zoom, Google and Webex. We are catering to those organizations that have limitations with respect to use of global cloud platforms like Azure, GCP or AWS. And consequently, they have a need for their conferencing software to run in controlled IT environments, either self-hosted or in private or sovereign clouds. This is a fast-growing market as a consequence of the geopolitical situation and the need to control data. Data sovereignty is increasingly relevant, in particular in Europe. Significant investments are being made in building sovereign IT infrastructure and solutions in many countries. Pexip has a unique position in this growing market with a modern and future-proofed solution that has the flexibility to be integrated and customized to the needs of the customers, while at the same time, being certified and tested to the highest standards in the market. Again, in this market, Pexip's offering is a secure video meeting platform that can be used exclusively or alongside, for example, Teams or Zoom. The solution includes security features such as tailored user authentication, clear meeting classification labeling and complete control over what data is stored and where. Integrating with chat is also an option. The Pexip platform can be installed in all relevant IT environments and gives complete control to the customers as no data needs to be shared with any external third parties. The secure meeting can easily be booked through the Outlook calendar or started through a chat session, exactly the same way as for Teams meetings. We're now starting to see that large organizations deploy more than one video meeting solution, and Pexip is very well positioned as a secure meetings alternative. Now to Connected Spaces. Here, we have basically completed the any-to-any vision and really deliver on the promise. In close partnerships with Google, Zoom, and of course, Microsoft, we provide the most comprehensive suite of interoperability solutions available in the market. In Q4, we launched a brand-new Connected Spaces product named Pexip Connect for Google Meet hardware. With this new product that we have co-developed with Google, all meeting rooms that have Google Meet hardware can now connect to Teams meetings with excellent quality. The market interest and resulting uptake is strong, and we have closed close to USD 1 million in new ARR on this product during Q4 alone. Now, let me leave it to Asmund for a more detailed sales update. Åsmund Fodstad: Thank you, Trond, and good morning, everyone. Pexip delivered a strong fourth quarter, reinforcing our momentum across both Secure and Custom and Connected Spaces. For Secure and Custom, Pexip added USD 2.9 million in ARR and reached USD 56.3 million for the end of the quarter. It's a solid 25% year-over-year increase. Growing focus on sovereign IT solutions across Europe strengthened our position. And our solutions for defense, government and healthcare continue to be key contributors to our momentum in Q4 and beyond. In Connected Spaces, Q4 ended as an exceptional strong quarter for us. ARR grew by USD 5.9 million, reaching USD 74.7 million, a solid 10% year-over-year increase. Growth in this segment is fueled by major customer wins as organizations transition across video platforms and rely on Pexip to ensure a seamless, consistent user experience. Let's look at a couple of wins. This quarter, we had so many large wins that we decided to share more of them with you and as well address the commonalities that strengthen our relevance and competitive position. So, across our global wins in the last quarters, we see 4 growth drivers that contribute to our success. Number one, the acceleration of sovereign IT solutions and the increasing need for data control. Governments across Europe, the Middle East and Asia are increasingly selecting Pexip as their standard for secure internal and cross-agency collaboration. Let me just use a few larger win examples. A central European state IT provider now powers all intergovernmental communication with a self-hosted sovereign Pexip solution. In Southeast Asia, the Ministry of Defense of a leading nation now powers all critical collaboration with a modern, integrated complete collaboration solution from Pexip. The second trend, successful adoption of Private AI. Pexip continues to demonstrate strong net retention in the Secure and Custom segment. A key growth driver is our Private AI offering, which is gaining significant traction across justice and healthcare sectors globally. A great example is one of the world's largest healthcare organization who now adopted Pexip Private AI resulting in a 30% upsell within an already major customer for Pexip. And thirdly, Pexip's unique position for classified and mission-critical environments. Pexip secured multiple wins across classified networks in Europe as well as deployments at the highest U.S. impact classification level IL-7, underscoring our unique suitability for sensitive environments. A couple of large wins here as well. A Nordic nation now powers all their classified and above communication with Pexip solutions across intelligence agencies, Ministry of Defense and National Security. And a U.S. IT provider for defense, intelligence and national security environments is now enabled with Pexip at Impact Level 4 and above. And remember, Pexip is the only Microsoft certified vendor at IL-4, 5, 6 and 7 that can meet the strict security regulations of the U.S. government. And lastly, interoperability as a strategic differentiator. As enterprises and government institutions shift technology platforms, Pexip's ability to deliver a consistent user experience remains essential. And recent wins prove our relevance and long-term competitive strength. A couple of large wins. One of the world's largest technology companies now uses Pexip for Google Meet across thousands of devices and meeting rooms worldwide, as they changed the video technology platform to Google. Another example is one of the world's largest biotech companies who have used Pexip Connect standard for years and now transition to Pexip solution for their native rooms, as they have changed the technology for devices in their meeting spaces. These 4 drivers are core to what makes Pexip unique, and they explain why we continue to win customer after customer in both Secure and Custom and in Connected Spaces. And lastly, I wanted to point out, as we came into this year with a solid pipeline across both business areas, we expect sustained strong traction in 2026 and beyond. And with that, I will hand over to Oystein for the financial details. Oystein? Øystein Hem: Thanks a lot, Asmund. For annual recurring revenue, as Trond mentioned, we increased our growth to 16% overall, up from 12% out of Q3. This is a combination of continued strong growth in Secure and Custom at 25% per year and Connected Spaces having a great quarter, delivering 10% growth year-on-year. The great growth come from customers in Enterprise, Government, Healthcare and Defense, and in particular, from the Americas. In terms of net retention and new sales, Connected Spaces saw an increase of 8.6% in the quarter, driven by strong new sales. The improvement compared to previous quarters was in particular from a couple of large customers that closed in the quarter. Secure and Custom continues to see strong growth, delivering 5.4% in the quarter and from a combination of strong new sales as well as positive net retention. Churn was slightly higher this quarter, as we saw a low renewal rate for support contracts in Asia that had an impact on churn overall. Such customers are a small part of our ARR base, hence, we expect this to be more of a onetime event. In terms of the P&L, recognized revenue came in, in line with last year. This is mostly due to the 10% decline in the U.S. dollar to Norwegian kroner exchange rate impacting our software revenues as well as a software deal slipping from Q4 and being delivered in Q1 of 2026. In U.S. dollar terms, revenue growth was 10%. For the year, revenue growth is in line with the ARR growth going into this quarter, while the contracts closed in Q4 will have revenue impact from Q1 and onwards. EBITDA increased in the quarter, benefiting from the same currency development, as it also reduces our costs. And for the year, we came in at an EBITDA margin of 26%, up from 18% in 2024. And the sum of our ARR growth and EBITDA margin is now at 42% for the year versus our long-term ambition of more than 40%. On costs, they were slightly down compared to Q4 of last year. Non-share-based salary expenses are down NOK 11 million, while share-based compensation is up NOK 9 million due to the share price increasing meaningfully during Q4. And other OpEx was down NOK 3 million. Looking at the year overall, Pexip increased our revenues with NOK 110 million and managed to convert 100% of that into incremental EBITDA. And this really shows the scalability of our software business, combining double-digit growth with good cost control. The EBITDA of NOK 316 million resulted in a free cash flow for the year of NOK 354 million, helped by a strong Q4. Q4 came in with a free cash flow of NOK 72 million, an increase of NOK 51 million compared to Q4 of 2024, with most of the improvement resulting from a better working capital development. Looking at the rest of the P&L, depreciation is in line with previous quarters and continues to be down year-on-year, while net financials is down compared to Q4 of 2024 due to lower gains on foreign exchange differences. In total, our profits before tax came in somewhat above 2024 with NOK 87 million. And to summarize the year, we grew revenues with 10% and had no significant changes to either of the cost categories above EBITDA. Depreciation is NOK 26 million lower, and hence, our EBIT margin has crossed 20% for the first time and came in at 21%. Lastly, an update on reporting. Pexip is currently reporting our annual recurring revenues in U.S. dollars as that is the primary currency we use with our customers. To make reporting more consistent and remove noise from currency fluctuations, we intend to consolidate all financial reporting using U.S. dollars in 2026, starting from Q1. We will provide pro forma historic figures for 2023 to 2025 in April, before the first report in the new reporting currency comes out in May. And with that, I hand it back to Trond. Trond Johannessen: Thank you, Oystein. Yes, looking good. Well, looking ahead, we have described earlier that we maintain a positive market outlook based on the key trends we see in our markets and the unique technology, strong market position and the solid industry partnerships we have. The expectation now is that we will end Q1 with an ARR in the range of USD 133 million to USD 136 million compared to the USD 131 million we had leaving Q4. This expectation reflects that the positive trends we have seen over the last quarters, they are expected to continue or even accelerate. The financial ambition we have is to consistently deliver above Rule of 40 performance across ARR growth and EBITDA margin. And the last 12 months, as Oystein mentioned, we were at 42% on this parameter. Now to capital distribution. Pexip's dividend policy is to distribute 50% to 100% of free cash flow. For the fiscal year 2025, we recommend a dividend of NOK 4 per share, up from the NOK 2.5 we distributed last year. As for last year, this total dividend is a combination of ordinary and extraordinary dividend, 3 plus 1. As always, this recommendation is subject to AGM approval in April with payment likely to happen in May. We believe that even with this sizable dividend, the company maintains a solid financial position and the ability to go after both short-term and long-term growth opportunities. Finally, before we go to Q&A, our AGM will be on April 17, and the Q1 presentation is planned for May 5. Now, Q&A. Welcome back my friends. Øystein Hem: We'll start with the questions from the analysts that are with us live, and we will start with Jorgen Weidemann from Pareto. Jorgen, can you hear us? Jørgen Weidemann: Yes, as always. Congratulations on yet another solid quarter. So if I may start with your increase or your guidance on ARR for the next quarter, on the midpoint that assumes $3.5 million ARR growth, which is more or less in line with the performance you saw earlier in '25. And -- but you did increase guidance quite a lot going into this quarter. So I was just wondering, could you elaborate a little bit on what sort of contracts that made you lift guidance or actually made the Q4 2025 ARR so much better than what you expected in Q3 earnings call? What sort of contracts those were? And also, what sort of visibility you have on guide or on ARR guidance when you guide the next quarter, for example, now into next quarter? Øystein Hem: Absolutely, Jorgen. So we try to give a -- the most realistic range that we see and with our best estimate as we stand here now being the midpoint of the range. And then, in Q4, in particular, we work with a number of large deals, and when, some of those hit and several of them land in the same quarter, that has a meaningful impact on the ARR development. And so instead of doing -- I think our midpoint was around $4 million, we delivered $8.8 million, which is obviously a significant beat in terms of incremental ARR. We always, in all quarters, work with large contracts. But then, also the larger the contract is the more difficult it is to make a meaningful range with sort of the outcome with it inside or outside. So there are at times sort of opportunities to go above the guiding range. But I think if you look at our track record for the past 12 quarters or so, we've been fairly consistent in landing roughly where we think we're going to land. Trond Johannessen: And commenting on your question around the midpoint, 3.5% on the Q1 guiding, is meant to reflect sort of a positive view from our side as this is -- the midpoint is above what we delivered in Q1 last year, which I think was 2.5% or -- so we are kind of quite a lot, so Q1 is normally not a very strong order intake quarter. But this year, as you can see in the guiding, we are kind of seeing a more positive Q1 than we delivered last year. Jørgen Weidemann: Great. And then also, if I may ask about costs. Once again, costs came in below our expectation, which obviously is good, but you keep the number of employees stable. And could you give some high-level reflections on when you believe you'll hit a size that makes the non-sales organization ripe for extra resources? Trond Johannessen: Yes. We're constantly reviewing the need for people in all parts of the organization. We are investing in technology development. We are investing in sales resources where that is needed. And there -- I think we have said that we think we will leave this year with maybe around 300 employees, which is up a little bit from where we are now, basically continuing to fine-tune, continuing to invest where needed, but also look at reductions where we see that being appropriate. So I think possibly the mix of employees and where we invest and where we reduce will give sort of the net will be an increase, but not a huge one. Jørgen Weidemann: Okay. Understand. And then finally, if I may. France now intends to ditch Teams in its government organizations and part of Germany has done the same earlier. So I was wondering if you could speak a little bit about changes you see in secure or geo-fenced video conferencing, and how you work to win contracts in situations like these when large countries are making such significant changes? Trond Johannessen: I can start, and Asmund, you can fill in. But in general, it's a very positive development for Pexip, the fact that the countries in particularly in Europe are seeing a need for not always replacing 100% the U.S. cloud platforms, but having something in addition to have backup, to have business continuity, to have an alternative to a fully U.S.-based infrastructure. So you see some countries that are building their own. You see other countries that are kind of taking other approaches to meeting these requirements. But the most important thing is the total market is growing. And then, Pexip has a pretty unique position on the video side here with our video engine and video platform that nobody really can match when it comes to the technical capabilities around catering to all endpoints, bringing meeting rooms into the mix, solving all the more complex use cases beyond just point-to-point PC-to-PC communication. So I think you will see that Pexip will be complementing some of the kind of more basic video solutions in many of these sovereign solutions that are popping up all over. And we have a lot of discussions these days in many countries around how Pexip can support this development. Åsmund Fodstad: Yes. I can add because I just came out of a meeting with one of the biggest ministries in France in Paris yesterday, and it basically confirms what you're saying. We have a very strong position with them. They might be forced into solutions on the desktop side, but again, just speaks to the relevance of sovereign solutions where they have complete control of the data. And then, it's hard for us to like what's really going to be the endgame here from a geopolitical standpoint. But all in all, this is very good news for Pexip. Øystein Hem: Also, I think we have plenty of good examples that commercial off-the-shelf software tends to outcompete and source build-it-yourself solutions over time. But of course, customers will try different venues as they go along. Thanks a lot, Jorgen. Then, we will move on to Markus Heiberg from SEB. Can you hear us, Markus? Markus Heiberg: Yes. So first one is on the Secure and Custom opportunities are obviously vast, but you have relatively stable growth quarter-over-quarter. When do you expect to see a sort of step up in that? Or do you expect to be at this pace? That's the first one. Trond Johannessen: I think in dollar terms, the percentages get more and more difficult to kind of match as the numbers get bigger. But in general, I think we have seen an acceleration in the dollar growth quarter-over-quarter in the Secure and Custom area. And these are, as we have also said sometimes before, processes that do take a little bit of time. Typically, you can have 18-month sales cycles in the public sector when it comes to changing platforms, replacing or adding to these complex solutions. So we think it will be a stable development steadily, sort of increasing with sort of at least in dollar terms increasing quarter-by-quarter growth in Secure and Custom. Markus Heiberg: All right. And then, maybe you can elaborate a bit more on the churn you saw in Secure and Custom this quarter is a bit higher than previous quarters. Øystein Hem: Yes. So as I commented on, the underlying development is fairly similar to previous quarters. Then, we did see an increase in churn for support contracts in Asia, where we've had a somewhat increase over the past couple of years on perpetual customers within Secure and Custom. There, they buy perpetual software. So there's -- that's not recurring revenues, but they also buy support contracts that are subscriptions, which is part of ARR. We did see an increase in churn on those. That had actually a meaningful impact on the total churn that we saw. And one, that's a very small part of our overall ARR base, as you can see from the share of revenue overall in APAC. And so we -- I do consider that somewhat of a one-off. And then, we are looking at how we can counteract that by making sure that we have multiyear commitments from customers when they're starting with those type of platforms. Åsmund Fodstad: And it's also been also kind of adapting to the HP partnership, where this is the model that they've been selling into Asia. And of course, we are trying to then just be complementary to them and make sure that we get into these customers. So we do also see a potential upside future here with these clients, but this hit us in Q4. Trond Johannessen: But generally, very, very sticky, the business we have in Secure and Custom. When you have implemented Pexip as a Secure Meetings solution, we have seen very few examples of organizations that are -- that replace us with something else. Markus Heiberg: And the final one for me is maybe on AI, and how you think about that across your offering now with a lot of new tools being released over recent months and the whole software sector is rethinking opportunities and risks, I would say? So how have you been thinking about this lately? And do you see any risk in, for instance, interoperability software that, that could be an area where, yes, things will change? Trond Johannessen: So I think the headline here is that we see more -- we see a lot of opportunities with AI for Pexip. We see the need for private AI solutions, the fear of data being lost, data being misused by large -- from large organizations that would like to have AI functionality, but that are afraid of what happens to the data. So we get inbound calls almost on a daily basis on this topic. So the way we provide AI in a private controlled context is really in demand these days. And that will continue to grow. And we see the upsell that was mentioned today by Asmund, it was a 30% upsell on an existing customer because they deploy AI functionality into their meeting solution. And then, to your second part of your question, can Pexip be replaced by AI? Obviously, anything could happen. But on the interoperability side, it's difficult to see how that would happen. A lot of the -- most of the APIs and SDKs that are being used to provide the interoperability solutions we have are not really well documented and available externally. And second, it has to do with certifications and approvals and partnerships with all these large technology companies, Teams, Zoom and so on and -- Google and so on, right? So even if AI would be able to make a solution, it wouldn't necessarily be able to be used because of the blocking or lack of approvals from one of these large organizations. So in that area, not particularly concerned. When it comes to can we use AI to more quickly create an alternative to Pexip in the market because you use AI to code faster or make solutions faster than before, obviously, but we can do the same, right? So we also use AI actively to bring technology to the market faster and be more competitive in that respect. So I think it's -- at least it's a balanced picture and not something that we're losing a lot of sleep over these days. Øystein Hem: Thanks a lot, Markus. Then, we will move over to e-mail, where we received a question from an investor on how is the release of the interoperability solution between Microsoft Teams and Google Meet hardware impacting Pexip? And so Pexip launched a product for Google Meet hardware in October, where we provide a premium interoperability between the Google Meet hardware device into a Microsoft Teams Meeting. That was -- Google and Microsoft introduced a direct guest join alternative now in February, which is the same sort of base level interoperability as you have with, for example, Zoom Rooms into Microsoft Teams or Teams Rooms into Microsoft or Teams Rooms into Zoom. So with this, our Google offering is in the same way as a -- our offering for Zoom Rooms, a premium interoperability solution that will have the sort of key features that you require so that your video room works well. But then, there is also a basic option for those that don't really have a lot of meetings on other platforms. So we think that we will have a good competitive position on Google Meet hardware as well, and then, we've enjoyed the first quarter of being the only solution, but that was never the long-term picture. Åsmund Fodstad: And to quote Google themselves, they referred to Pexip as the premium solution, right? So we have good -- still good traction with those opportunities. Øystein Hem: That concludes the Q&A session for this quarter. And thank you for watching, and see you again in 3 months. Åsmund Fodstad: Thank you. Trond Johannessen: Thank you.
Erik Engstrom: Good morning, everybody. Thank you for taking the time to join us today. As you may have seen from our press release this morning, we delivered strong financial results in 2025. We made further operational and strategic progress, and we continue to see positive momentum across the group. Underlying revenue growth was 7%. Underlying adjusted operating profit growth was 9%, and adjusted earnings per share growth was 10% at constant currency. All four business areas continue to perform well. On this chart, you can see the relative sizes of the business areas and their growth rates with underlying adjusted operating profit growth exceeding underlying revenue growth in each business area. In Risk, underlying revenue growth was 8% and underlying adjusted operating profit growth was 10%. Strong growth continues to be driven across segments by the development and rollout of our deeply embedded AI-enabled analytics and decision tools with over 90% of divisional revenue coming from machine-to-machine interactions. In Business Services, which represents over 40% of divisional revenue, strong growth continues to be driven by financial crime compliance and digital fraud and identity solutions and strong new sales. We continue to expand our differentiated data set, build out our global fraud infrastructure and more deeply integrate advanced authentication and behavioral intelligence. In Insurance, which represents around 40% of divisional revenue, strong growth continues to be driven by innovation and adoption of contributory databases and market-specific solutions, supported by positive market factors and strong new sales. We continue to expand our products across the insurance continuum and across the insurance lines, while adding data sources and analytics to enhance value for our customers. Going forward, we expect continued strong underlying revenue growth with underlying adjusted operating profit growth exceeding underlying revenue growth. In STM, underlying revenue growth was 5%, and underlying adjusted operating profit growth was 7%. Improving momentum is being driven by the evolution of the business mix towards higher growth, higher value analytics and tools supported by the increasing pace of new product introductions and strong new sales. Databases, Tools & Electronic Reference, which represents around 40% of divisional revenue, delivered strong growth, driven by higher value-add analytics and decision tools and we continue to expand our solution set built on our industry-leading trusted content with an ongoing series of new releases. In Primary Research, which represents a little over half of divisional revenue, good growth continues to be driven by volume growth. The number of articles submitted continued to grow very strongly across the portfolio by over 20% in 2025, and the number of articles published grew 10%. Going forward, we expect good to strong underlying revenue growth, with underlying adjusted operating profit growth exceeding underlying revenue growth. In Legal, underlying revenue growth improved to 9%, with underlying adjusted operating profit growth of 12%. Strong growth continues to be driven by the ongoing shift in business mix towards higher growth, higher value legal analytics and tools. In Law Firms & Corporate Legal, which represents around 70% of divisional revenue, double-digit growth is being driven by continued adoption of our core AI-enabled legal platform and integrated Agentic assistant, Lexis+ AI and Protege. Ongoing releases of new functionality and deeper integration with our comprehensive, verified legal content is enabling us to increase our value add and serve an increasing number of use cases. Going forward, we expect continued strong underlying revenue growth, with underlying adjusted operating profit growth exceeding underlying revenue growth. Exhibitions delivered strong underlying revenue growth of 8%, reflecting the improved growth profile of our event portfolio and good progress on our growing range of value-enhancing digital initiatives. Underlying adjusted operating profit growth of 9% was ahead of revenue growth with margins now significantly above historical levels. Going forward, we expect continued strong underlying revenue growth with an improvement in adjusted operating margin over the prior full year. Our strategic direction is unchanged. Our improving long-term growth trajectory continues to be driven by the ongoing shift in business mix towards higher growth analytics and decision tools. This is being supported by the continued evolution of artificial intelligence, which is enabling us to add more value to our customers as we embed additional functionality in our product and to develop and launch products at a faster pace. Our revenue growth objectives for the business areas remain: For Risk, to sustain strong long-term growth; for both STM and Legal, to continue on their improving growth trajectories; and for Exhibitions, to sustain strong long-term growth. When combined with continuous process innovation to manage cost growth below revenue growth, the result is a higher growth profile with strong earnings growth and improving returns. I will now hand over to Nick Luff, our CFO, who will talk you through our results in more detail. I'll be back afterwards for a quick wrap-up and Q&A. Nicholas Luff: Thank you, Erik. Good morning, everyone. Let me start by providing more detail on the group financials. As Erik said, underlying revenue growth was 7%, with underlying adjusted operating profit growth ahead of that at 9%. As a result, the adjusted operating margin improved by just under 1 percentage point to 34.8%. The strong operating result flowed through to adjusted earnings per share, which at constant currency increased by 10%. Cash conversion was again strong at 99%. After acquisition spend of GBP 270 million and the completion of the GBP 1.5 billion buyback, leverage ended the year at 2.0x at the lower end of our typical range. Given the strong overall performance, we are proposing an increase in the full year dividend of 7% to 67.5p per share. Looking at revenue, you can see how all 4 business areas contributed to the overall 7% underlying growth. As we discussed at the half year results, we have separated out the reporting of print and print-related revenues and profits, reflecting changes to how we manage the distribution of print versions of our content. The proactive steps to reduce our involvement in print-related activities continued in 2025, resulting in a reduction in associated revenue of over 20%. For the group as a whole, total revenue growth at constant currency was 4% after the portfolio effects in Risk, Legal and Exhibitions and after the step-down in print activities. In addition, there were cycling effects in Exhibitions with 2025 being a cycling out year. In sterling, total revenue growth was 2% impacted by the relative strength of the pound against the dollar compared to the prior year. Here, you can see the 9% underlying growth in group adjusted operating profit. As Erik mentioned, we continue to manage cost growth to be below revenue growth in each business area. As a result, Risk, STM and Legal each delivered underlying profit growth 2 or 3 percentage points ahead of underlying revenue growth, while Exhibitions was 1 point ahead, reflecting a better cycling in the year. The profit contribution from print and print-related activities declined but at a lower rate than revenue. As I said at the half year results, going forward, we expect profit from print and print-related activities to continue to decline in the high single digits each year in line with historical trends. Portfolio effects and the decline in print were a slight drag, leaving total adjusted operating profit growth in constant currency at 7%. There was a similar currency effect on profit as there was on revenue, giving adjusted operating profit growth in sterling of 4%. With profit growth ahead of revenue growth, margins improved across all 4 business areas, driving the overall improvement of 90 basis points to 34.8%. Margins were up by 40 basis points in Risk, 70 in STM and 80 in Legal. Exhibitions margin increased by 250 basis points, aided by prior year disposals and the effects of cycling. Turning to the group adjusted income statement. You can see here the underlying growth was 7% in revenue and 9% in operating profit. The interest expense was slightly lower, with the decrease reflecting lower average interest rates partly offset by higher average debt balances. The effective tax rate was 22.5%, in line with the prior year. Net profit was up 8% at constant currency and up 5% in sterling to over GBP 2.3 billion. With the lower share count as a result of the buyback program, adjusted earnings per share were up 10% at constant currency and up 7% in sterling to 128.5p. Turning to cash flow. Cash conversion was strong at 99%. EBITDA was over GBP 3.8 billion and CapEx was GBP 525 million, equating to 5% of revenue. After interest and tax, total free cash flow was over GBP 2.3 billion. And here's how we deployed that free cash flow. We completed 5 small acquisitions with total consideration of GBP 270 million and made 2 small disposals. The most significant acquisition was IDVerse, an ID document verification platform for business services in Risk, which completed in the first quarter of the year. Dividend payments were GBP 1.2 billion, and as I mentioned earlier, we completed GBP 1.5 billion of share buybacks. Overall, year-end net debt was GBP 7.2 billion. Including pensions, the ratio of net debt to EBITDA calculated in U.S. dollars was 2.0x at the lower end of our typical range of 2 to 2.5x. Our priorities for the use of cash remain unchanged. Organic development is our #1 priority with CapEx consistently around 5% of revenues. We augment that organic development with selective acquisitions with this level of spend typically being the most significant variable in our uses of cash, depending on the opportunities that arise. Average acquisition spend over the last 10 years has been around GBP 400 million per annum with 2025 a little below that average. We pay out around half of our adjusted earnings in dividends and have increased the dividend every year for well over a decade. Leverage has typically been in the 2 to 2.5x range. Strong cash generation, improving EBITDA and modest acquisition spend in the year mean that leverage at the end of 2025 was at the lower end of that range. We continue to return our surplus capital through the share buyback with GBP 2.25 billion of spend announced today for 2026, of which GBP 250 million has already been deployed. With that, I will hand you back to Erik. Erik Engstrom: Thank you, Nick. Just to summarize what we have covered this morning. In 2025, we delivered strong financial results, and we made further operational and strategic progress. Going forward, we continue to see positive momentum across the group, and we expect another year of strong underlying growth in revenue and adjusted operating profit as well as strong growth in adjusted earnings per share on a constant currency basis. And with that, I think we're ready to go to questions. Operator: [Operator Instructions] We take the first question from the line of George Webb from Morgan Stanley. George Webb: I have got a couple of questions, please. Firstly, big picture one, it's hard to miss the kind of broad concern or fear that's happening across a lot of stocks today. If we pick up on your Legal segment, I guess the latest one of those worries is a concern that you might face incremental competition around AI-enabled workflow tools from other large software companies. Maybe if we take one step back, for the last couple of years in Legal, we've seen you talk about product launches which use Gen AI, more product adoption by customers and therefore, underlying acceleration in the Legal business. I guess the question is, do you or have you seen anything in your business in terms of lead indicators or numbers on product adoption, conversations you're having that calls into question your ability to continue to participate in that tech adoption cycle, and that means we should be thinking about potential deceleration in legal before any potential further acceleration? That's the first question. Secondly, just on STM, given the slight bump in the outlook there. On one hand, you talked to kind of the strong submissions growth and maybe the early ramp of new products such as LeapSpace, but then I guess the full open access growth might moderate in the mix this year, the U.S. funding environment is still a little bit tough. Could you maybe just outline some of those growth considerations in the mix for 2026? Erik Engstrom: Okay. Well, maybe I'll have -- thank you. Maybe I'll ask Nick to comment on the specifics on growth, adoption, penetration, rollout usage on Legal. And then I'll comment on that a little bit and move on to the second. Nicholas Luff: George, I mean I think the opposite. I mean, we see these tools as adding value, enabling us to build the functionality into our products. And you're seeing that come through in the adoption, the usage. And if you look specifically at the Legal business and Lexis+ AI, the enterprise-wide subscription customer base has more than doubled in the past year. And the usage is going up faster than that. We have users in the multiple hundreds of thousands now across the globe on Lexis+ AI. We're seeing strong demand for what we do with the product built on that trusted curated content set, it remains very important to the customers, and these tools are enabling us to add value and grow faster. Erik Engstrom: I think just if you back up a little bit to your broader question about workflow software, I think it's important to remember that the core of our strategy always starts with our uniquely differentiated, comprehensive content, our collection of trusted, verified, continually updated content and data sets. And we then leverage our deep understanding to combine these content assets with sort of advanced evolving technologies and these evolving AI tools to deliver increased value to our customers. And I think it's important to understand that we have worked with this strategy inside Risk with the evolution of AI tools, extracting machine learning tools for over 15 years, and that's been the core driver of the whole evolution of the Risk business to now being 40% of our profits, growing 8% a year on revenue, and this year, 10% on profit. And we have had the same technology-agnostic philosophy and tool-agnostic, multi-model architecture from the beginning of the Gen AI trends for over 3 years. We've been partnering closely with all the large language models providers, including Anthropic and OpenAI for that time period. And as they continue to build out their models and tools, we continually evaluate all the new releases, including often through previews as a partner, and we often test them through ongoing interaction with our customers to determine if they can help us add more value to our customers if we embed them in our tools. So any new tool that you read about, hear about, we're probably already testing it, involving it in our platform and seeing if we can add more value on our platform to our customer value equation. And often, as you say, there are several companies out there that are developing workflow tools that effectively are today serving -- they're trying to serve or starting to serve some of the use cases that other software companies are serving today. In Legal, large law firms typically use over 100 of these software companies for different workflow tools, different admin procedures. And if those tools embedded in our core content platform help our customers add more value, we will embed the best of those new tools into our platform and act as an integrator of those and make them work with our customers. And if they're not relevant to the content-related use case, the content-related workflow and if it's just workflow that's today being served by software companies, then we don't integrate them directly. We often look at alternative ways to be interoperable and compatible with them so that our content sets, our deeply differentiated content set on our content platform can actually be accessed in the different workflows and we believe that, that way then we enhance the utility of, and therefore, the value of our platform if it can be accessed in workflows where people are more efficient and more productive and in the area where we don't want to be or operate ourselves. I mean today and historically, we have virtually no revenue in any of our divisions from what I would describe as workflow software-related services. Nicholas Luff: And sorry, to the STM question. I mean you asked about submissions and publication volumes, George. The fact is that science remains a totally global industry. The number of scientific researchers in the world continues to go up. The information intensity of science continues to increase. The desire and the speed at which people want to be published continues to increase. And so we -- as you saw in the -- we had strong growth in submissions last year, over 20%, the number of articles we published over 10%. And that has not slowed down. We're seeing that continue into this year. There's continued strong momentum in primary research. And there's always in any one country, there can always be things happening. But if you look at it in an overall sense, we continue to see strong demand for primary research publishing. Operator: We take the next question from the line of Nick Dempsey from Barclays. Nick Dempsey: I've got 3. So first of all, for the Protege AI workflows, which you are now starting to roll out, can you please talk through what differentiates those offerings from the competition in that broad AI workflow market in a bit more detail, please? Second question, there have been some concerns knocking around about autonomous driving and the auto insurance market. Can you talk about your exposure, the impact as the auto market shifts gradually towards autonomous driving and give us a sense of whether you see any long-term risks around that? And number three, when you refer to strong new sales in 2025 for the group and then in Legal, you'd say renewals and new sales are strong across all 3 segments, am I right in thinking that those new sales will have only a very modest effect on '26 growth, but you're signaling that they should be supporting growth through '27, '28 and beyond? Erik Engstrom: Yes. So I'll let Nick to start with the first one. Nicholas Luff: Yes. So I mean, the big difference between what Erik was touching on earlier, all the things we're offering to do is the content that's behind them. We would describe what the workflow tools that we're introducing as being content-enabled, and that's a key differentiator. It's not that other tools can't be useful to people. And as Erik touched on, many tools are used by lawyers and other professionals. But the ones we have, if you're actually doing anything that relies on trusted curated content, then that's where the differentiation comes in. We also, of course, have the advantage of the customer understanding and the sheer scale at which we already operate. As I touched on earlier, we have hundreds of thousands of users of Lexis+ AI. And so we can see how it's used, and we can see what's useful and constantly be updating the quality of the answers that we're able to provide, and that's a key differentiator as well. Erik Engstrom: Yes. Yes, I mean I just want to add to that, but I think it's important to look at this is that the workflows we're developing, I think when we first released Protege, we were talking about order of magnitude sort of 50 workflows or so in earlier, and these have been released out in phases, continue to be released out in phases and upgraded as we go along. At the moment, we're probably nearing 300 different workflows -- specific workflow tools. And we can develop these on our content, on our platform and launch them to our customers at the rate of probably another 2 or 3 a day in this machinery that we have. But again, these are content-related workflows that are embedded in our platforms that help add value to our customers the way they operate with us and it's unrelated to the kind of industry that is the broader legal tech software industry where people are spending money on software or workflow solutions for operating an admin. And that's where we separate the two and try to be embedded with the first category and be interoperable with the second category. As you know, we're fully embedded in Microsoft since many years ago for our customers, they can fully operate and work between our tools and the Microsoft tools. That does not mean we're trying to compete with them or operate Microsoft general admin workflows in any way. But it enhances the value of our content and our utility of our platform when our content-specific workflows fit right on our content, but it also enhances the value when you can use our LexisNexis AI-related platform and workflow interoperably with Microsoft, for example. And we have about 25 of these different existing partnerships in Legal today, and I'm sure there'll be many more in the future, yes. Nicholas Luff: So Nick, on the autonomous driving question, obviously, there are lots of trends affecting the auto insurance industry all the time. Enhanced safety features is part of that, automatic braking, telematics, some autonomous driving. And I think we see that as the whole industry evolving to make driving safer, generate more data and everything becoming more complex as you do that. And in that environment, what we do where you get sophisticated risk analysis, combining the data from -- about the driver, about the vehicle, about how it's been driven, the interaction between cars being driven in different ways, that just creates opportunity for us. The value at stake actually goes up, and it's been a trend for many years that you get fewer accidents, but the severity of them and the cost of them goes up. So the value at stake actually is getting higher. And in that environment, I think we're extremely well placed to add more value because of the additional data and analytics that we can provide. And your last question, Nick, was on strong new sales. You're absolutely right. I mean obviously strong new sales. New sales are -- in a subscription -- heavily subscription based business as we are, they are only a small component of what's relevant to the current year revenues, but they are a good indication of the momentum there is in the business and ultimately, what drives the long-term growth trajectory, and that's why we're flagging this morning. Operator: The next question comes from the line of Christophe Cherblanc from Bernstein. Christophe Cherblanc: I have 2 questions. The first one is on STM. I guess, we have a sense of the lawyer population, but it's harder to understand the addressable population for tools like LeapSpace. So I was curious whether you had any number in mind or any number of institutions and how long it would take to ramp up penetration? And the second question was about pricing. I think you've been insisting that especially in Legal, you are no longer pricing per seat, but I was curious as to what was the extent to which you've been changing pricing contract over the last 12, 24 months and whether you intend to further adjust pricing going forward? Erik Engstrom: Yes. So on the STM side, we are launching several different tools into that market, as we've told you. Several tools have been going for now up to -- well, 1 year or up to 2 years in some instances, and we continue to see what the value uplift is to the customer, what the usage growth is and what the user growth is and usage growth, and we can see the value they're getting. From the new forward-looking LeapSpace launch, which has just recently launched commercially, we can see that is a significant value uplift to the users, several of them report very significant time savings or productivity gains or improved results from specific use cases that are very material. And we look, therefore, at the potential addressable market as being basically all the institutions that today have any of our platforms in use, right, or any of the subscribers. And that order of magnitude is in the thousands. I mean, it's over 10,000, depending on when you want to define it, somewhere between 10,000 and 15,000 institutions, right, as potential institutional customers. When it comes to individual users, which also in the end could be a customer for this, I would look at it as is typical that people refer to the total number of researchers in the world at somewhere a little bit above 10 million. That's the scale of this. And if you look at the question of how do we price them, our approach here is to price this platform based on scale of institution and research intensity of the institution. So therefore, there's a set of pricing metrics regarding what type of institution it is. We are also likely to, over time, come up with an individual researcher subscription option for those researchers who operate in a different way that they should -- that might want to access the capability of this in their daily research life. But we're very early stages on the commercial side of this, and it's sold and priced separately from our other content tools. But the indication we're getting from our customers, the feedback we're getting in terms of the value adds and the excitement is very strong. But as you said, everything in the STM industry goes a little more slowly than it does in other industries, partly because of how they think of funding and spending and budget and also because the purchase cycles, the decision cycles at academic institutions are typically slightly more involved and take longer. But we are very positive on the ability for this platform to continue to add value to our customers and meaningfully impact our long-term value-add and growth trajectory in this division, but it's going to come through very gradually. Operator: We take the next question from the line of Thymen Rundberg with ING. Thymen Rundberg: Two from my side. I have one on operating leverage and margins. So you've done a great job in managing cost growth below revenue growth in the last few years, also 2025, profit margins are expanding nicely. As we are now moving in more compute-intensive AI or agentic workflows that just basically require deeper reasoning, how are you leveraging your scale and your -- what you've just talked about as well, your model agnostic approach to ensure that you can still drive that margin expansion while delivering these more sophisticated capabilities? And then the second question is with the pace of this AI and agentic AI innovation across all your divisions, I was wondering if you could walk us through a bit how you're currently assessing the balance between returning capital via buybacks, what you've now increased, and more or perhaps larger strategic acquisitions. And so given that your leverage remains at the low end of your 2 to 2.5 range and organic investments are still your priority, I was wondering if you could highlight just when does it make sense to use the balance sheet a bit more actively, particularly in light of competitive dynamics? Erik Engstrom: Thank you for that. I'm actually going to ask Nick to tell us about both of those. Nicholas Luff: Yes. I mean obviously, the new technologies that are evolving are giving us great opportunity to build additional functionality in our products, but they're also giving us the opportunity to improve our own processes, make our own processes more efficient. So we're using those to -- internally, which enables us to get to market faster, but also ensure we can keep cost growth below revenue growth. And I don't think -- obviously, we're spending more on some things than what we're spending with large language model providers, et cetera, as our customers use our products more and as we use those technologies more. But equally, with other things that we can do more efficiently than we couldn't before. And there's nothing we see in the overall dynamic that means we can't keep cost growth below revenue growth. And if anything, as we touched on in the outlook statements, the gap between profit growth and revenue growth can be -- potentially be a little bit wider. And that's just through cost control and the opportunity that it's -- that these new tools are giving us. I think -- your second question, I think, was about acquisitions and balance sheet and how we might use it. The primary focus remains on organic development. We have the skills and the opportunity. We have all the assets we need to innovate and bring new products to market and value to customers using that. We will look at acquisitions where we see the opportunity -- where we see something that can enhance and accelerate what we're doing. But they have to fit, they have to fit with what we're doing. And obviously, with those specific criteria, there's only a few things that are available at any time that makes sense. We could -- and we've had a couple of -- a few years now of relatively low M&A spend. That's not deliberate. It's just the way things have -- what's come up and it's perfectly possible that in the next period, we may see slightly 2 or 3 larger acquisitions come up, and we would absolutely invest in those if we saw the opportunity, but it's not the core of the strategy. The core strategy is organic. And in terms of where the leverage is, as you rightly point out, because we've had relatively low M&A spend in the last couple of years, we're at the bottom end of our leverage range. Clearly, we reflect that when we think about the buyback, and we have announced a buyback of GBP 2.25 billion this morning, which is up 50% from the buyback in the previous year. That -- if you take the sort of average M&A spend we have for the last few years, it's been around the sort of GBP 250 million mark, then all things being equal, that would put us roughly in the middle of our leverage range of 2 to 2.5x. So that's why it's been pitched at that level. Operator: We take the next question from the line of Ciaran Donnelly from Citi. Ciaran Donnelly: Firstly, just in terms of Legal, can you help us understand the mix between publicly available data and proprietary created curative data that underpins those products? And perhaps just comment on how difficult it will be to replicate those data sets, just looking to get a sense of how deep that competitive moat is? In addition, can you just clarify with regards to your comments on interoperability, would you be open to licensing use of your proprietary data to be integrated into, I don't know, API plug-in such as Claude Cowork? And then lastly, just in risk, it looks like the base market growth contribution was a smaller contribution in 2025 versus '24. So can you just help us understand the dynamics there? And looking forward to 2026, what the mix of growth from base and product innovation is likely to be? Erik Engstrom: Yes. So let me start with the question of our content sets. As you know, we describe RELX as a global provider of information-based analytics and decision tools. And everything we do is built on that information base, which is a foundation of unique and comprehensive content and data sets. And that applies to all our divisions. And our assets are both historically comprehensive and continuously updated on an industrial scale across our divisions. And in each one of our divisions, it includes some form of public records accumulated over decades, some of which are no longer publicly available, some of which are theoretically public, but extremely difficult and complicated to collect because of the format or in print or in different locations. Then they also include licensed data sets. Across the company we have licensed data for over 10,000 different sources. Some of those sources, the usage is regulated and controlled, and we can only use them in certain ways in our tools. We then have unique contributory data sets, and we have some of those involved in Legal as well. And we have dozens of those contributory databases across the company. We then have proprietary data and content that we have created ourselves, written ourselves, either within our pool of internal employees or external contractors have created them for us over many years, right? But we combine these content and data sets then with our deep customer understanding to build proprietary algorithms, judgment, inferences and interpretations, which accumulated over decades, delivered unique insights and significant value to our customers themselves, and this would be extremely hard, if not impossible, to replicate to the same level of value. And this is what we mean when we talk about the fact that we have a content advantage that we believe is very sustainable and very strong and are very high value to our customers across our divisions, including Legal. So if you then look at the question, will we consider just licensing out our content sets and on? No, this is a centerpiece of our strategy. This is what we are. We are an information-based company. We're a content-based company. And everything we do is built around that unique, comprehensive information base. And that's the foundation for our product today. It will be the foundation of our products and their value-add in the future. And is it possible some [ small sliver ] in some noncore areas could be licensed in some places? Yes. We've always done copyright sales here and there for decades, but that's not material. It's not the core of our strategy. Our core -- the core of our strategy is to leverage those deeply embedded content and data sets and embed these new tools on top to enhance the value of those content platforms to our customers. And that's what we're seeing a confirmation of when we do that to our customers, we see that they see a value uplift. We see the spend uplift they are willing to go on those because they see the higher value. We see that customers do that when it rolls out. We see that the users, we have more active users on the new higher value-add platforms and that they use them more. Nicholas Luff: And I think your last question was about the split of the risk growth, the 8%. As you rightly pointed out, the contribution from new products has gone up. This year, the split was 6% from new products, 2% from older products compared to 5%, 3% the previous couple of years. I wouldn't read too much into that. It's only a small shift. If anything, it just demonstrates that the pace of innovation has increased. The older products perhaps are being replaced slightly quicker with new products, new functionality. And therefore, the split has shifted a little bit, but I wouldn't read too much into it. Operator: We take the next question from the line of Steve Liechti from Deutsche Numis. Steven Craig Liechti: I'll take 3 well, please. First of all, just relatively simplistically, just if I'm a lawyer, and I've now embedded Harvey or Legora into my workflow, just why am I going to buy Protege as well as a workflow tool, maybe put that in the context of a large lawyer and a small lawyer? So that's the first question. Second question is on STM. You've given your -- you've moved your guidance from good to good to strong like-for-like growth. Is that code for saying that you think like-for-like is going to go from 5% this year to more like 6% next year? And then the third question is on the Risk. Just we're having a lot of conversations with people on the kind of disruptive stuff going on in the market. Just remind us or rehearse the arguments on why an LLM or disruptor would find it very, very difficult to break into the risk market in terms of either the business services bit or insurance? Erik Engstrom: Nick, would you like to take the first one? Nicholas Luff: Yes. Look, there are obviously various tools out. And as we said before, the whole ecosystem in which lawyers operate, they've traditionally used all sorts of different tools for different functionalities. It does depend on what sort of work you're doing. But if you're doing work that -- legal research work, in particular, but anything that it relies on content and what the latest information is, the latest law is, then as we've been outlining, we have a significant competitive advantage because of the data set that we've put and the content that we've articulated a couple of times already on this call. That doesn't mean to say that lawyers won't use other things as well. And if they're good tools, then as we said, we'll look to see whether we can use that functionality, replicate it in our products or make it interoperable with our products. And we'll continue to do that. But I think we're clear that we have a big customer base already using our Lexis+ AI with Protege tool that runs into the hundreds of thousands of users, tens of thousands of customers, so the scale of what we're doing is already way bigger than a lot of things -- lot of other things that are out there. So I think the starting point with that content advantage is very good for us. Erik Engstrom: And I think it's important to distinguish here between content players and competing in content, which is what we do with these layers on top, which is content-enabled processing that adds value to the content, and the people who are building workflow tools that are not in the content business at the scale that we have or the comprehensiveness of the historical trust and verified content that we have. But there, there are several hundred software and workflow companies ranging all the way from Microsoft at the top to very specialized tools that are used by lawyers in many ways. And as we said, many of the large law firms have 100 of these different tools. And the two that you mentioned that are coming up that for workflow tools that enable processing and workflows, they are more the way they describe it, going after that much larger software and services market in the legal tech space. And in a way, they have explained that they see that their biggest threat to their in their quote publicly is the LLM tools and LLM-related workflow tools themselves. We see them as additional partners. We're partnering with already 25 of these workflow and software-related companies in that space, and there's nothing that says that, that couldn't be -- do more over time. So we see them more as complement than competitors. Nicholas Luff: Steve, your second question was about the guidance around STM. I think as we said in the statement this morning, we have got improving momentum in STM. We are seeing an increased pace of the introduction and rollout of new products. We can see it in the strong new sales. So the business is in very good shape. Clearly, it's a very heavy subscription business. So things tend to change relatively slowly. But without getting into the numbers, clearly, the outlook statement is a more positive statement than we've had previously. That is an upgrade in our outlook. And your last question was about the Risk business and LLMs and things. I think the most important thing to remember about the Risk business is 90% of its revenue comes from machine-to-machine interactions. And this is a massive scale of the data sets we have and the data we collect from all the -- as we've outlined a couple of times already on this -- in this discussion, the thousands of sources, the public records, the contributory data coming back from customers with that network effect that they can all benefit from, what we do with the data, the algorithms that we apply to it and it's incredibly difficult to replicate. It's a heavily regulated area, what data you can collect, how you can -- how you're allowed to use that data is heavily regulated. And I think given it's almost all machine to machine, I think we see lots of opportunity to continue to use new data sources and using technology. But I think we will be the beneficiaries of that. Erik Engstrom: But I think it's important also to point out that Risk has been at the forefront of using AI technology now for close to 20 years. The core driver behind the entire growth rate and the growth improvement over the last 15 years in Risk has been the fact that we have all these unique comprehensive data sets that most people don't have access to any of those particularly the contributory data sets and some of the internal data sets that we generate in those markets. But the real enabler has been the fact that we have had a technology-agnostic philosophy for that entire time period and continuously look at new AI and machine learning tools and new algorithms for a very, very long time. And whenever anything comes out that can help us increase the value to our customers, we have tested them and embedded them. And that's why at this point, we are a 90% embedded machine-to-machine AI-enabled algorithm business. The new or evolving generative AI tools actually do not add significant value to those kind of mathematical calculations. I mean, just to give you an illustration, in one of our contributory database offerings, we process around 400 million transactions per day in a mathematical continuously improving model, right? So this is a completely different type of business that went through the AI enablement transformation starting about 20 years ago, it started and that's continuing to evolve, and it's already very, very far down this path. I mean I could remind you that it's exactly 20 years ago this year that because of how we approach big data, data science and algorithms, we picked up knowledge of what was going on over at -- no, over at Palantir, yes, exactly over at Palantir. And I went out to visit them personally about 20 years ago and talked about how our different technologies compare and how well we could do together and some of their tech people were at our conferences and so on. And we've evolved into a high-volume, algorithm-driven very low price per unit, but very high volume sort of transaction-based pricing installed inside industries, and they've evolved in a complete opposite direction, but we still leverage the same technology heritage and the same thinking and approach to big data, data clients and AI. So this is not a new thing, and it's not something that's likely to impact the trajectory of the Risk business in any way other than continue on the path we've been on to evaluate and look at and embed any new possible AI tools from any source that can increase the value to our customers of those algorithms we operate today. Operator: [Operator Instructions] We take the next question from the line of Henry Hayden from Rothschild & Company Redburn. Henry Hayden: I have 3 from my end. The first one on STM, how do you think about the corporate opportunity? So it's one you discussed in the past as a large addressable market with attractive structural growth profile. We were hoping for any incremental color you could give around end client preferences. And if there's a different approach that needs to be taken in going after that opportunity in terms of product functionality? And is there an appetite to grow corporate within the mix? And if so, what unlocks better exposure to that underlying growth? Secondly, within Legal, we're seeing this structural uplift in tech investment from law firms, which adds support to your growth, but also can drive some degree of experimentation for new solutions around legal research and workflows. At what point would you expect firms to kind of consolidate how many products they're taking? And how do you think about your positioning against that consolidation? And then finally, on Risk, you called out strong new sales and insurance again now. Is there a specific product or line item driving this? And are those competitive displacements? Or is there something else at play here? Erik Engstrom: Well, I can address first the STM market. The corporate market is, we believe, an important future growth opportunity for us. It is a relatively small segment of our revenue today. And we believe that it is more commercially oriented, and as these tools that we build become higher value, more usable with new tools on top of our content that we see an opportunity to continue to sell and package those in a way that is more appropriate for the corporate market. We believe that we're going to continue to see that growth rate there pick up as well over time as those tools are developed, integrated to add more value. But it's a relatively small segment today. It's likely to be gradual, even though on some of the tools we've rolled out today, we've actually slightly faster uptake on the sales cycle than we do in the academic markets as early signs. So we're positive, but it's small and it's still going to be gradual. On the Legal tech? Nicholas Luff: So Henry, on the legal tech. And look, I think law firms will continue to evaluate and look at new technology and look at new tools. The legal research market clearly is very consolidated already with, obviously, the two big players, of which we're one. But if you look at the wider technology provided to law firms, which is a big market, and all commentators think that's going to grow quite significantly. Individual law firms may choose different strategies, but I'm sure they'll continue to experiment. And we think we have a strong offering to move into some of that market and to continue to add value in that more consolidated legal research market where we play. And your third question was on insurance and new sales. That business is going well. It is -- we continue to innovate. We continue to have new sources of data, and we touched on it earlier when we're talking about data coming off vehicles, from vehicles, about vehicles. For example, new identity data being brought to bear. We are using new data sources in different lines of insurance. So for example, using electronic health records for -- in the life insurance market, using aerial imagery or video taken inside the home, analyzed by AI to inform property. And these are additive. These are additive to what's already there. This is not typically displacing anything. It's -- these are not either/or type products. It's something that functionality and analytics that wasn't available before. And as we innovate and make it available, then it comes into the marketplace and helps the insurance companies become more efficient, helps them price risk more accurately and they see value in them, and that's what's driving the take-up. Operator: As there are no further questions from the participants, I would like to turn the conference back over to Erik Engstrom, CEO, for any closing remarks. Erik Engstrom: Well, thank you so much for taking the time to join us this morning. I appreciate you listening to us and asking us questions. And I look forward to talking to you again soon.
Operator: Good morning, and welcome to the Medexus Pharmaceuticals Fiscal Third Quarter 2026 Conference Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Victoria Rutherford, Investor Relations. Victoria, over to you. Victoria Rutherford: Thank you, and good morning, everyone. Welcome to the Medexus Pharmaceuticals Third Fiscal Quarter 2026 Earnings Call. On the call this morning are Ken d'Entremont, Chief Executive Officer; and Brendon Buschman, Chief Financial Officer. If you have any questions after the conference call or would like further information about the company, please contact Adelaide Capital at (480) 625-5772. I would like to remind everyone that this discussion will include forward-looking information as defined in Canadian securities laws that is based on certain assumptions that Medexus believes to be reasonable in the circumstances, but is subject to risks and uncertainties. Actual results may differ materially from historical results or results anticipated by the forward-looking information. In addition, this discussion will also include non-GAAP measures such as adjusted EBITDA, adjusted EBITDA margin and adjusted gross margin and net debt, which do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. For more information about forward-looking information and non-GAAP measures, including reconciliations, please refer to the company's MD&A, which along with the financial statement, is available on the company's website at www.medexus.com and on SEDAR+ at www.sedarplus.ca. As a reminder, Medexus reports on a March 31 fiscal year basis. Medexus reports financial results in U.S. dollars and all references are to U.S. dollars, unless otherwise specified. I would now like to turn the call over to Ken d'Entremont. Kenneth d'Entremont: Thank you, Victoria, and thank you, everyone, for joining this call today. We continue to execute on our commercial launch of GRAFAPEX and are extremely pleased with the progress achieved thus far. We've had a significant presence at Tandem meeting last week, and we're encouraged by the level of interest in conditioning regimens and GRAFAPEX in particular. Product level performance to date has exceeded our prelaunch expectations. And although we experienced a quiet period in the December holiday season, we have seen a strong rebound in January 2026 and which now represents one of the strongest months of patient demand we have seen since commercial launch. For the 9-month period ending December 31, '25, we recognized product level revenue of GRAFAPEX of $8.2 million compared to $8.5 million we invested in the GRAFAPEX launch over that period. We anticipate GRAFAPEX will be accretive to quarterly operating cash flow starting in fiscal Q4 '26, so the quarter we're in right now, and will generate product level net revenue of $11 million to $12 million for fiscal year '26. The initial adoption by major commercial payers and leading health care institutions has been highly encouraging and early indicators of patient-level demand continue to validate the value proposition GRAFAPEX delivers. To that end, product level net revenue from GRAFAPEX in fiscal Q3 '26 totaled $2 million relative to $2.5 million of GRAFAPEX personnel and infrastructure investments. The $8.5 million we have invested in the GRAFAPEX launch year-to-date through December 31, continues to have a significant impact. As of today, 32% of all 180 U.S. transplant centers have already ordered GRAFAPEX for procedures in their institutions and 77% of those 57 institutions have reordered. In fiscal Q4 '26, we expect that the underlying patient demand of GRAFAPEX will be approximately $3 million to $4 million. This compares to $2.2 million in fiscal Q1, $2.1 million in fiscal Q2 and $2.6 million in fiscal Q3 '26. Considering the estimated inventory on hand at our wholesaler at December 31, '25, we anticipate patient demand in fiscal Q4 '26 will result in product level net revenue of GRAFAPEX between $3 million and $4 million. Overall, our fiscal Q3 '26 results remain solid with positive operating income, adjusted EBITDA and operating cash flows. Our results reflect the continuation of our portfolio dynamics we have discussed in past quarters, coupled with continued growth momentum from GRAFAPEX, which we view as a continuing testament to our portfolio approach. Our fiscal Q3 '26 net revenue was $25.3 million, a decrease compared to $30 million for the same period last year. Our fiscal Q3 '26 adjusted EBITDA was $4.5 million, a decrease compared to $5.8 million for the same period last year, but our third consecutive fiscal quarter of adjusted EBITDA growth since the approval and launch of GRAFAPEX in fiscal Q4 '25. We produced modest net income of $0.1 million for the quarter, a slight decrease compared to $0.7 million for the same period last year. Operating income was $1.7 million in fiscal Q3 '26, a decrease compared to $2.1 million for the same period last year. But again, our third consecutive fiscal quarter of operating income growth since the approval and launch of GRAFAPEX. On the rest of our portfolio, I have a few updates to note. We continue to invest judiciously in our IXINITY manufacturing process improvement initiative, which has been ongoing for some years now. This initiative has resulted in a 30% decrease in product level cost of goods comparing fiscal Q3 '26 to fiscal Q1 '21 being the first full fiscal quarter following the acquisition of the product in February of 2020. This progress informed our choice to commit in fiscal Q3 to a modest further investment in this process, approximately $1.2 million, of which we expect to pay in fiscal '26. Regarding Rasuvo, during fiscal Q2 '26, we learned that another product in the branded methotrexate auto-injector market had been withdrawn by its distributor. Comparing fiscal Q3 '26 to fiscal Q3 '25, we attribute the 17% increase in patient unit demand to this change in the competitive landscape. Although we expect that this onetime increase is now largely reflected in product level performance. Rupall continues to face generic competition in Canada. However, we expect that the adverse impact of this generic competition is now largely reflected in product level performance of Rupall, meaning that declines in net sales and product level performance of Rupall for future fiscal quarters will be less severe. In summary, we remain focused on delivering strong overall performance across our portfolio of products in both the United States and Canada, advancing GRAFAPEX in the United States and strategically positioning the company to capitalize on future revenue opportunities. I will now turn the call over to Brendon, who will discuss our financial results in more detail. Brendon? Brendon Bushman: Perfect. Thank you, Ken. Our results for fiscal Q3 2026 continue to demonstrate consistent results quarter-over-quarter and continue to reflect the natural transitional changes of an evolving product portfolio year-over-year. We are very pleased with the early performance of GRAFAPEX, which, as Ken mentioned, saw strong quarter-over-quarter patient demand growth, generating $2 million of product level net revenue in our fiscal Q3 '26. As a reminder, net revenue is determined based on wholesaler buying in the period, not underlying patient demand, which in fiscal Q3 '26 was $2.6 million. GRAFAPEX is expected to begin contributing positively to operating cash flows in the first calendar quarter '26, which is our fiscal Q4 '26. Turning to the full quarterly results. Total net revenue for fiscal Q3 '26 was $25.3 million. This represents a decrease of $4.7 million compared to $30 million for the same period last year. The $4.7 million year-over-year net revenue decrease was attributable in part to reduced net sales of Rupall in Canada and the return of Gleolan in the United States to the licensor. Partially offset by product level net revenue increases from GRAFAPEX and Rasuvo. Gross profit was $13.6 million for fiscal Q3 '26 compared to $15.2 million for the same period last year. Gross margin was 53.6% for fiscal Q3 '26, which is an improvement on the 50.7% we achieved in the same period last year. We continue to expect increasing product level net revenue from GRAFAPEX, together with the absence of product level net revenue from Gleolan after fiscal year 2025 to have a positive effect on company-level gross margin. These resulting changes to gross margin have emerged over fiscal year '26 and are expected to continue to emerge over fiscal year '27. Selling, general and administrative expenses were $11.2 million for fiscal Q3 '26 consistent with $11 million for the same period last year. Adjusted EBITDA was $4.5 million for fiscal Q3 '26, a decrease of $1.3 million compared to $5.8 million for the same period last year. The decrease was primarily due to the effects of generic competition on product level net revenue from Rupall, the termination of Gleolan in the U.S. and a $2 million beneficial impact of customer buying patterns of IXINITY on net revenue in the prior year, so fiscal Q3 '25. Net income was $0.1 million for fiscal Q3 '26, a decrease of $0.6 million compared to net income of $0.7 million for fiscal Q3 '25. We continue to generate meaningful cash from our operating activities with quarterly operating cash flow of $7.8 million compared to $6.7 million for fiscal Q3 '25. Even while investing in the launch of GRAFAPEX, we have generated an average of $4.3 million of cash from operating activity per quarter in the 4 quarters since launch. Cash on hand of $15 million at December 31, 2025, compares to $24 million at March 31, 2025 -- sorry, one second. Sorry about that. As of December 31, 2025, our net debt was $10.4 million, a decrease of $2.8 million compared to $13.2 million as at March 31, 2025. In November 2025, we entered into a new senior secured credit agreement with National Bank of Canada. The delayed draw term loan feature of this facility provides us with flexibility to finance future licensing and/or acquisition transactions on a long-term nondilutive basis. Given our strong financial position on January 1, 2026, the remaining installment of a regulatory milestone payment owed to medac for GRAFAPEX was repaid -- fully repaid using cash on hand. We also initiated a normal course issuing bid -- issuer bid to repurchase Medexus common shares. As of today, we have repurchased 201,500 shares. As always, there can be variability in quarter-to-quarter results. and the operating environment also remains variable. But we are encouraged by the strength of our business and remain well positioned to continue building the company and expanding its portfolio in the coming quarters and beyond. Operator, we will now open the call to analyst questions. Operator: [Operator Instructions]. Our first question is coming from Andre Uddin of Research Capital. Andre Uddin: There was some very useful GRAFAPEX info provided in the release yesterday. I think all of us are trying to figure out right now what the great trajectory is to get GRAFAPEX to $100 million. So my questions are around that. Can you talk a little bit about the 180 transplant centers? And how are you working towards getting GRAFAPEX on their formularies? Kenneth d'Entremont: Yes. Thanks, Andre. Great question because obviously, getting the product listed on the formulary is the key leading indicator to future revenue. So we've had really good success in those efforts. I think we've directed that a significant portion of those hospitals have already put it on the formulary, and that is where a lot of our revenue is coming from. So it's roughly broken down 1/3 have got it on the formulary, 1/3 have it under review and another 1/3 we're still working on. So that's kind of how it breaks down. So we're really pleased with the revenue that we've been generating from the 1/3 that have it on the formulary. Andre Uddin: Okay. And so looking ahead, where do you think you would be in terms of getting GRAFAPEX on those formularies in those 180 centers in fiscal 2027? Is there some sort of goal that you have in mind there for that? Kenneth d'Entremont: Yes, absolutely. So obviously, we're working primarily on the adult hospitals. I mean that is 85% of the market and those are the ones that tend to take a longer period of time. So we would expect that it takes 12 to 18 months to get around to everybody. And so we would expect that kind of in that time frame, we should see significant continued uptake in formulary approvals. Andre Uddin: And just looking at your 75% reorder rate, I mean, that's pretty high. Do you think you can improve that? Kenneth d'Entremont: Yes, it's 77%, but absolutely. Yes, yes. Sure. I mean, obviously, we're getting new orders -- first orders from hospitals all the time every month. And so obviously, they don't necessarily reorder immediately. So as time goes by, that rate will continue. And then as new initiations of hospitals flatten, it should go closer to 100. As hospitals are starting to utilize our product, we will see regular orders. And that's kind of the pattern that we've been observing. Andre Uddin: That's useful. And just lastly, are there any additional transplant conferences this year that Medexus is looking to have either a sales booth or even a physician-focused symposium? Kenneth d'Entremont: Yes. So great question. So Tandem is the Super Bowl of conferences for this specialty. So that was last week, then there's many, many regional meetings, which we will go to all of them where they kind of discuss what happened at Tandem and other related topics. And then the EBMT, which is European Transplant Meeting is next month, and we will have people there as well. Operator: Our next question is coming from Michael Freeman of Raymond James. Michael Freeman: Brendon, congratulations on the quarter, in this GRAFAPEX ramp. I wonder if -- sort of following on to Andre's questions, I wonder if there are -- as you slice up those 180 transplant centers, you've surely taking a look at the highest volume centers and targeted those. I wonder if you could describe your penetration of those maybe like top decile volume centers? And just a progress update there would be great. Kenneth d'Entremont: Yes. Thanks, Michael. Good question. So 180 total transplant centers in the U.S., but recall that 76 of those 180 to 80% of the transplant. So they are highly concentrated in the top 76 and our penetration is better in the top 76 than the total. So obviously, we are focusing on those top decile hospitals. I think what I can say is that we've got some significant hospitals that are in the top quartile that are ordering product on a regular basis. So we're making good progress with the important hospitals and they simply take longer. The bigger the hospital, the more bureaucracy there is, the longer it takes to get products onto formulary. So that is the dynamic that exists, but we're making steady and excellent progress with everybody. And obviously, the top 76 is the focus. Michael Freeman: Got you. Helpful. Now prescribing for adult patients, you described in your releases that there was a significant increase in demand among adults. I wonder if you could describe the impact of that NTAP reimbursement program has had on that ordering dynamic. And if there are further improvements to be made to the process of reimbursement for adults and further penetrating that very important transplant population. Kenneth d'Entremont: Yes. Great question. So the reimbursement for everyone is excellent. So we haven't been running into problems where patients aren't able to get access to the drug. It seems to be quite universal. So we're really pleased with that. The NTAP or for those who aren't familiar with it, New Technology Add-on Payment, is a Medicare payment where they basically pay up to the difference between generic busulfan, our competitor product and our branded GRAFAPEX or treosulfan, and so that's $21,000. And so Medicare is -- we estimate about 30% of adult patients. And so it's a significant add-on payment for the institution. So there's basically no risk in using our product. And obviously, we're out there demonstrating to hospitals, institutions that even if they were to get that add-on payment, we still save the hospital money through shorter hospital stays, fewer readmissions. There's a bunch of factors that go into the fact that into the analysis that demonstrates that we actually save them money. When you add the add-on payment, obviously, there's no risk whatsoever. And so that just helps facilitate uptake in that patient population, and it is a significant patient population. So the add-on payment goes on top of what they receive in the case rate or the DRG. Michael Freeman: Got you. And maybe one more for Brendon. Looking -- thinking about the balance sheet, with this new credit facility, with the final medac payment made and looking at cash from operations funding much of your endeavors. I wonder if you could speak to maybe the difference in balance sheet health between now and the last year. Brendon Bushman: Yes. No, great question. Thanks. Yes. So as a reminder, a year ago, when we were with the BMO facility, our principal repayments were $3.3 million a quarter. Now with National, that's come down to $0.5 million a quarter. The company, as I mentioned, is still generating very meaningful cash from operations even while investing in GRAFAPEX. So we are in a much better position now from a cash flow perspective than we were previously in that currently and going forward, meaningful amounts of those cash from operations are ours to grow the business with or to buy back stock with. Operator: Our next question is coming from Scott Henry of AGP. Scott Henry: Ken, for starters, can you get a sense of when reported GRAFAPEX sales will more similarly match patient demand? At what point should we have consistency where those 2 would kind of go together? Kenneth d'Entremont: Yes, Scott. Good question. I think we're entering that now. I would expect that this quarter, they will start to be pretty level. Obviously, the wholesaler wants to keep about a month on hand. And so as our monthly and quarterly revenue grows, they'll keep more on hand, but it's going to be a lot more balanced as we go forward now. Scott Henry: Okay. Great. And as we try to -- the past questions have alluded to as we try to track GRAFAPEX, obviously, formulary participation will be a key metric to follow. Are there any other metrics that you would suggest that would be a good idea to follow? There may not be, I don't know, what you're going to make available. But anything else we can watch or is that the key thing to focus on? Kenneth d'Entremont: That is certainly the key thing. I think the other really important factor is the split of adult versus pediatric patients. And so that's why we've been calling that out. It's 15% for pediatric patients. And obviously, they use a much lower volume of product because they're smaller. So the adult market is the key market for future growth. And so that's why we've been calling that out. We will continue to do so. So keep an eye on our uptake in adult hospitals where that's 85% of transplants and obviously, they use a larger volume of products. So really key for us. And so we're very pleased that we are seeing strong uptake in that space. That's where our growth will come from going forward. Scott Henry: Okay. Great. And a couple of modeling questions for Brendon. I guess, first, selling and administrative was a little lower than I expected. I sort of expected there to be more increase from GRAFAPEX sales cost. How do you think of that December quarter number for selling and administration going forward? Should it be increasing? Or do you think that's a good reflection of the current run rate? Brendon Bushman: I think it will increase a little bit. One of the reasons we saw a bit of a drop in OpEx for GRAFAPEX in this last quarter was because of the holiday season. So there was just less traveling by our field team. That will ramp up again, including the trip to Tandem. So I think that it's -- we've hit a good stable operating expense for our base business, our business excluding GRAFAPEX and then I would expect sort of modest increases to GRAFAPEX to get us back into that $3 million to $4 million that we have been guiding to and then closer to $4 million throughout fiscal '27. Kenneth d'Entremont: Just to add to that, Scott, the variable expens is the piece that's changing. The infrastructure that we have in place is very, very flat and stable. So it's the travel and expenses for people to be in the field that can vary from quarter-to-quarter. Scott Henry: Okay. Great. And final question, when we think about fiscal Q4, last year, it was a sequential decline from Q3. I don't really recall what the specifics to that were. But when you're thinking about this March quarter, would you expect sales to be flat to up? Or would you expect some sort of seasonal weakness? Kenneth d'Entremont: Yes, I'll start and then maybe Brendon can jump in. So this quarter that we're working now, we'll be comparing kind of like businesses. Historically, the past 3 quarters, we haven't really been comparing like businesses. So it will be a much cleaner picture as we go forward. Brendon? Brendon Bushman: Yes. No, that's exactly right. I think one of the reasons for the drop sort of between Q3 and Q4 of last year was the Rasuvo -- sorry, Rupall generic hitting. So that as one of the benefits of the generic erosion with Rupall is that its seasonality, tracking allergy season won't move things up and down quite as much. So as Ken said, we've got a really, really nice, stable base business that really started to emerge in Q4 and then really has crystallized over the last 2 quarters as things like handing the Gleolan license back has sort of flushed itself out. So I would sort of say, if you take out Gleolan from -- or sorry, GRAFAPEX from the last 2 quarters, you'll see a very stable, repeatable, durable base business that GRAFAPEX as it grows will increase. Operator: [Operator Instructions]. Our next question is coming from David Martin of Bloom Burton. David Martin: First question, the NTAP incentives that you talked about for hospitals for patients insured with Medicare, I'm wondering about those that are covered by private insurance. Is there any flow-through for the extra cost of the drug versus busulfan generics for privately insured patients? Or do the hospitals have to swallow the increased cost of the GRAFAPEX? Kenneth d'Entremont: David, yes, thanks for asking that question because it is an important point. So there is a dynamic, and we've talked about this before, but we observed it even more strongly at Tandem last week. There is a dynamic by which more and more of these patients are treated as commercial patients, so they get conditioned as an outpatient, and then they will move to an inpatient. So what that dynamic does is it causes treosulfan or GRAFAPEX to be reimbursed as a commercial product, so it doesn't affect the DRG, the case payment. And we've observed that those get reimbursed. And so there is that dynamic that's happening for the inpatient, obviously, that is where the NTAP really comes into play and we will neutralize the cost increase in the drug budget between ourselves and busulfan for roughly 30% of those patients. The rest, they tend to get reimbursed by the institution or paid for by the institution and then the institution observed some cost savings within the case load. David Martin: Okay. Second question, are you getting feedback that the lower toxicity and the general benefits with GRAFAPEX are readily tangible to the physicians? Or is this something that they have to look at the results of the clinical trial and say, yes, I'm doing good for my patients. But I'm relying on that. Or are the patients telling them, are they seeing improvements when they use the drug? Kenneth d'Entremont: Yes. It's the latter. So there are visible indicators that the patient is doing better, so less toxicity. And that's visible during the hospital stay and at discharge. And so it's very, very clear that these patients do better. And so hospitals that have tried the product, later adopt the product because there are very tangible evidence that the patient does better. Then it's obviously -- the longer-term benefits are witnessed within the follow-up, just as we showed in the Phase III clinical trial that the survival benefit, obviously, is something that plays out over a longer period of time. But clearly, there is a very tangible and obvious improvement in the patient while in the hospital and at discharge. David Martin: So what is it that they see that's better, less fatigue or what is it? And is it equal across pediatric and adult patients? Kenneth d'Entremont: Yes, great question. I'm not sure I can answer it fully because I'm not a transplanter. The observation that we are receiving from physicians is that toxicity -- organ toxicity can demonstrate itself in many different ways. And so it can be GI toxicity, [ decreased mucositis ]. There's lots of various obvious reductions in organ toxicity that the physician can observe. And so that's typically it. In the pediatric patient, you -- those obvious Oregon toxicities are also observable but the fertility issue is a very big issue. And so that's why we get significant uptake in pediatrics. David Martin: Okay. That's it for me. Kenneth d'Entremont: It seems like we've lost Jenny. So I guess we'll wrap it up here. Operator: No, I'm right here, apologies. And I just cut for a second, and I didn't hear anything. So I do apologize for that. Thank you very much, everybody. This does conclude today's call. You may disconnect your phone lines at this time, and have a wonderful day, and we thank you for your participation.
Dave Huizing: Good morning, and thank you for joining today's call. I'm sitting here with Dimitri de Vreeze, our CEO; and Ralf Schmeitz, our CFO. This morning, we published our full year 2025 results on a restated basis, together with a presentation to investors, which you can find on our website. Here you can also find our disclaimers about forward-looking statements. Following Dimitri's and Ralf's opening comments, we will open the line for questions. [Operator Instructions]. Dimitri, the floor is yours. Dimitri de Vreeze: Thank you, Dave, and welcome to everybody here in this call. Nice to see you yet again, a busy week for us, busy week for you. The ANH call last Monday, now the full year results, and you've seen that there are a lot of numbers there. So Ralf will lead you through in a minute. And then next week, our integrated annual report. And as you've seen in the press release, we're also looking forward to host our investor event on March 12 about the next phase of DSM-Firmenich as a consumer company. Now let me go through a few of the highlights of the divestment of ANH to CVC. We explained that on Monday, but it was an important piece of our journey. And I think it's clear to say that it's really focusing on DSM-Firmenich to become a key player in Nutrition, Health and Beauty. And that's also where the value creation is. So an important point was the signing of the divestment of ANH to CVC. And we constructed a deal where we have mitigated the downside risks in the ANH business as well as the volatility, one of the strategic reasons that we announced that we wanted to divest, and we have implemented on that. Now we have created a deal structure that is not only mitigating those risks on downsides, but also creates an opportunity on upside. And that is also what we have announced last Monday, together with a favorable long-term supply agreement on vitamins. The EUR 2.2 billion, we found a fair value for the ANH business. I think it's a great business, but it has its volatility. We'll get proceeds at closing of EUR 1.2 billion and remained a 20% retained stake because we wanted to cater for a possible upside. The solutions core business, the specialty business is a really good resilient business going forward. So that whole multiplier on value we would like to capture, as well as the Essential co, which is predominantly the vitamins business, where I think CVC Capital Partners are a partner we work on different businesses with, and they are very much catered to make that business grow and add value and want to capture that 20% as well. Well, in the grand scheme of thing, 20% of EUR 2.2 billion is around EUR 0.5 billion. So it is also in terms of risk mitigation, not the biggest number. So please don't see the 20% is something where there's a direct link to our business, not anymore. It's deconsolidated. It has been out of our numbers. The EUR 9 billion is the DSM-Firmenich consumer scope that we're talking about. Now the earnout, the earnout is linked to business on solutions scope, very good business. So in that sense, I think the earnout is pretty much secure. And the part of the earnout is linked to Essential core. And then if that's half of the earnout, I think it's all been mitigated with CVC working diligently to bring that business up to [ thrive ]. And I think there are lots of opportunities with normalization over the business as we speak. Now what are we going to do with the money? Although let's make it very clear, the money only comes in towards the end of the year. As a sign of confidence, we will start our share buyback already in quarter 1 in addition to the EUR 1 billion that we have started and executed and completed for the Feed Enzyme business. And at the same time, not resetting the dividend, it remains stable also after the carve-out of ANH at 250. Now if we then go to the next slide that shows with ANH out of the way, we are on our journey where we merged the company, we delivered on the synergies. We have tuned our portfolio, and we have signed the deal to divest ANH. We're now into the next phase of DSM-Firmenich, the consumer company, and we're going to grow what we have. We're going to anchor what we do and going to deliver on our promises. On March 12, we'll give you that accelerate route with our BU President to get a bit of a feel on what we're growing and how fast we were growing. Under that journey, we have grown organic sales growth of 6% in '24 in the scope of DSM-Firmenich consumer related. And this year, we have announced the 3 years full year result, 3% growth on 2025 for that business in the environment we are in. So we're showing the resilience of that portfolio going forward. Now we then go to the next slide, a little bit the financials of that DSM-Firmenich consumer scope. If you move to the next slide, I'm going to show you a few numbers. Yes, here we go. So here are the numbers. Here, you can see we're a $9 billion company. We have grown that company 3% in '25, as we said, 6% in '24, if you go through the restate apples-with-apples comparison. An adjusted EBITDA of EUR 1.7 billion, EUR 1.8 billion, which was a 5% step up like-for-like. By the way, that's the same from '23 to '24. So it shows the resilience of that portfolio that we've built. With the trajectory of EBITDA margin, I think many of you asked the question, how do you come to the '22, '23 midterm targets? Well, we started with 18%. We moved it up to 19%, 19.6% for 2025. If you take the last 2 quarters, we're more closer to 20%. So also that trajectory will continue with a good generation of cash flow, the 10.5% conversion over sales in 2025. I already alluded on the dividend and on the share buyback and on the investor event on March 12th, where we're going to give you some insight on what the next phase of DSM-Firmenich is all about. Now last phase, last slide before I hand over to Ralf. In that whole trajectory, we stay true to our sustainability program. If you can go to the next slide, please. Then it's clearly that we also have made quite some progress on sustainability. It's important for our customers. So some people will say, well, why do you still work on sustainability? Well, apart from the fact that it's part of who we are, it is in the market we play in with customers important, 100% renewable ahead of plan and also some recent ratings of CDP, AA for climate and water, but also platinum metal for EcoVadis. It does matter. It is the company we're building. And we are proud that we also continued that during that merger. So we're well positioned to go into the next phase, which we call internally the accelerate phase, with growing what we have, anchor what we do and deliver. But before we go there, maybe let's look back for one more time in what we've done in 2025 before we move forward. And with that, I hand over to Ralf. Ralf Schmeitz: Well, thanks, Dimitri. And good morning, everybody. Before diving into all of the numbers, every number presented is, as Dimitri said, in accounting terms, a continuing operation. It represents the company we've been building over the past 2 years. And it's all about Perfumery & Beauty, Taste, Texture & Health; and our Health, Nutrition & Care business. As you'll see, ANH is not very much coming forward in the slides. It's now part of discontinued and the Dimitri and myself will be managing that business for cash until the closing has finalized, which we anticipate towards the end of the year. It will be positive in cash flow generation as well, and that's what we'll steer up on, and we'll continue to report on the cash performance going forward. Now a few things. Happy with the announcement on Monday, where obviously triggered the whole event of all of the restatements and we've been releasing the new numbers on Monday afternoon. So it is a lot to take in. We appreciate that. I think also if you look at our press release, we have been as elaborate as possible, giving you the full P&L, the balance sheet and the cash flow ahead of our annual report. In the Annex we've tried to bridge also between the total group and the continuing operations and show you all of the moving pieces. But we also appreciate that in a busy reporting season, maybe not everybody has restated it. In the Annex, on Page 21 and 22, we've basically also included a reporting as per the old world, including the divisions before restatement to accommodate you as much as possible. Now Dave and the team are happy to take your questions. The annual report next week, that Dimitri alluded to, will also be based on continuing operations that will allow you also to all adjust to the new world and then we move from there. Now let's dive in a bit how that new world has performed. But before we move there, I think this slide is an important one for me, where overall, you've seen the work and the outcome of all the activities around tuning of the portfolio, where on a group perspective, we've developed the group towards a 22% margin. It's very much in line with the trajectory that we envisage. But also you see the 3 BUs with P&B, TTH coming towards the lower end of our guidance, also very nice progress on those fronts. And HNC really showing a strong recovery towards that trajectory as well. And I'm happy, although that the restatement is a lot to take in, it does show that also going into '26, we've got the right reference on how we're doing as a company. Now let's dive in on the next page, please. Overall, the group, Dimitri already highlighted it, for full year overall 3% organic sales growth in not the easiest environment with a stronger H1 than H2, but encouraging growth throughout the year with the leverage in EBITDA, so a 5% step-up in EBITDA and has set the margin of 19.6%, very nice. But for me, it's more relevant as we're on a trajectory that the second half is at 20%. And that's something that we'll continue to improve on. If we look at Q4 specific for the group, overall, a 2% organic growth and a 3% step-up in EBITDA and a margin very much in line with prior. But I think it's more relevant to zoom in into the business units. But before we go there, also a highlight on cash. We delivered overall, remember that when we guided for a 10% target that, that was for the group. We've delivered upon that for the total group. So the total group was just over 10%, but also in the continuing operations, we've delivered upon that, and I'll comment that towards the end of my voice over. Another metric that I want to call out is that we talk about our capital returns. Overall, the core ROCE for continuing operations stood just over 11%, showing also the quality improvement on that front over the period. Now let's zoom in on the next slide, please, into the businesses, starting with Perfumery & Beauty. Overall, a 3% organic sales growth. Keep in mind that throughout '25, we obviously had the headwind in sun filters, where we've seen some softer conditions. Overall, adjusting for that, the sales growth is 1% to 2% higher throughout the year. And going into Q4, we've seen an improvement in sequential conditions with an overall 4% organic sales growth with a strong contribution of Fine Fragrance with a high single-digit growth and a more mid-single-digit growth and a more mid-single-digit growth in our Consumer Fragrance & Ingredients business, whilst the recovery in B&C did not come through yet, overall delivering a solid performance in our Perfumery & Beauty business. Margin overall, slightly impacted by FX and the mix effect as a result of that on a full year basis, very much in line at 22% on average despite a difficult exchange rate environment. Moving then on to the next page, please, to Taste, Texture & Health. Overall here, a very strong year. Again, 4% organic growth. Keep in mind, the comps of last year on the back of a very strong 2024, that translated again in a very nice step up in EBITDA of 7% year-over-year when adjusting for the FX. And also here, the margin is something we continue to improve margin positively, as said, towards the 21%, the lower end of the range, and we continue to progress from there. If we look at Q4, a bit impacted by softer conditions in the U.S. mainly. Overall, a 2% organic sales growth, still reflecting the contribution of synergies and very well positioned in the market, but we see, especially with our key accounts in the U.S., a bit of weaker. Overall, if you look at it from a segment basis, beverage, a bit softer, but dairy, baking at very strong and that continues. EBITDA quality very profound. Q4, a very nice step-up. Overall, a 10% step-up in EBITDA. And when adjusting for currencies and also the margin showed a very strong step-up versus prior, in line with the ambition that we have for this business overall. Then moving to Health, Nutrition & Care on the next page, please. Overall there, we often talk about the journey of Health, Nutrition & Care and also that journey continued. So on a full-year basis, continued growth of around 3% organic. A continued strong performance at the EBITDA side, a 4% step-up when adjusting for currency and also the margin continues to improve. You also see that in Q4, we again delivered a 20% margin for the business. The growth was somewhat impacted by timing of a bit more lumpy order in our pharma business. There is a bit of a shift there that overall, adjusting for that, the organic sales growth stood at 1% for the quarter, where we see a continued strong environment for Early Life Nutrition and our HMO business, but we also see the uncertain consumer behavior impacting a bit of higher dairy supplements and Eye health business in the fourth quarter. Overall, margin more or less flat as said in Q4. But overall, a continued trajectory of growth also in Health Nutrition & Care. Maybe then last, but not least, looking at cash, overall, important on the next page, please. Our cash performance -- sorry, before we go there, there was one more slide. I think here a lot of detail. I did want to come back on the overall performance of the group as well because I think that's important. It's a bit of a busy slide, but it's coming out of the press release. I think the key highlight here are two things. On the one hand, our adjusted EBITDA for the group, overall will land just below EUR 2.3 billion, in line with the guidance that we gave, set aside for a bit of weakness in Animal Nutrition in the fourth quarter and a deteriorating FX environment. Overall, we came in at EUR 22.80 billion for the total group, so very much in line from an overall perspective as well. And also on the tax side, you see that our rate is normalizing at 21% for the continuing operations where we aim to improve a bit further, I think, as relevant going forward. Then to the next page to our cash conversion. So overall, I think looking at a few drivers. Overall, working capital was below 29%, a little up versus prior when we talked about cash and the unwind of inventory in the second half. I'm pleased to report that our second half performance was very strong. Remember that we came out with the half year numbers with a softer performance in the first half, so happy to see that rebound. However, in the current environment, we were not able to fully absorb the uplift of inventory on the back of the tariffs and the carve-out activities that we've done. So that is to further unwind in '26 and causing us a bit of a percent in working capital. Overall, our sales to cash conversion for the continuing operations was also well above 10%. And there, we alluded to that in the first half, a bit of a shift, where in '24, you had a bit of a benefit from some timing of payments, including incentives, which is obviously then impacting '25. So -- but across the two years, a 12% performance, and we'll come back on that in the March 12th event where we will be stretching ourselves a bit further in terms of target setting on that front. But overall, an encouraging performance. And a good momentum going into '26. And maybe with that, Dave, we pause with the voice over and move to Q&A. Dave Huizing: Yes. Thanks, Ralf. Indeed, it is a good moment to start with the Q&A. [Operator Instructions]. And with that, operator, we can start. Operator: [Operator Instructions] Our first question comes from Nicola Tang with Exane BNP Paribas. Ming Tang: I want to start a bit with the outlook. I know you didn't give an outlook and we have to wait until 12th of March to get a bit more color. But I was wondering if you could talk a little bit about how the year has started across each of your continuing divisions. And you've given us a restatement for the past year, but is there anything to be aware of in terms of any changes in seasonality versus what we're used to for old DSM-Firmenich. I'll leave it there. Those will be my questions. Dimitri de Vreeze: Okay. Let me respond on that. Indeed, on March 12th, we'll give the formal outlook, but I can give you a little bit of color, and then you can prepare your outlook yourself before we go on March 12th. What you can expect from us on March 12 is that we'll go a little bit to industry standards. So we'll give you a bit of a range on where we see organic sales growth, the EBITDA quality as a percentage, and obviously, the cash percentage of which you were clearly indicating, all of you, that we felt that the 10% was right, conservative. So we're going to review that and come back to you in March on that. Well, a bit of color. What we have seen overall, before I dive in a little bit to the 3 business units and the 3 businesses. We've seen a bit of a cautious consumer behavior around the globe, but predominantly in North America, which is an impact on the Taste part of TTH and certainly dietary supplements and the eye health part in HNC. We'll come back to that in a minute when I'll give you a bit of color for BU. I think a 3% growth of the consumer in scope business for DSM-Firmenich is a good growth in the current market context, considering also the 6% growth we've done in the same scope in 2024. Now organic sales growth, 3% if that is in this current setup, we didn't see any change in trends from Q4 into Q1. So I think you can see that Q1, certainly for now half of February, we will not see a huge change from Q4 to Q1. We will know a little bit more in March. We'll give you the input, I think at the end of the day. A 3% in a year 2025 is a little bit the range where we've seen in a difficult market context, is what our business can bring, with a nice pipeline and growth going forward, still to the midterm target of 5% to 7%. And the BU presidents will also be there at March 12th to give you a bit of a feel of what is in the pipeline, what are the drivers? The fundamentals of the businesses are absolutely the same. We've all seen human mankind when uncertainty is there, they will start to be a bit more cautious. And there are two things of it. They either pile the stock or they destock. Pile stock, we saw during COVID. Now we see that destocking happening and then it normalizes over time. When it exactly will normalize, we don't know, but that normalization will take place, I think that is clear. Now, some color per business, Perfumery & Beauty. I think a good result in Fine Fragrance, high single digit. We see that continue. Mid single-digit growth in Consumer Fragrance, also there, with that trending doing well. Ingredients, for us, very good. Remember, mid single-digit growth after we've tuned the portfolio. We had a EUR 1.2 billion portfolio. We've tuned it, made deliberate choices where we want to grow. That ingredients we have are a big part, are specialty ingredients with mid single-digit growth in Q4. And Beauty & Care, the destocking effect fading out in Q4 and moving that into 2026, where we will see normalization going on. Now Taste, Texture & Health. Here, overall, a 2% growth in Q4, 4% for full year, with a 10% growth in the year before. So let's look a little bit about the 1 to 2 years trending with the comparison. Very good growth in pet food, in bakery and dairy. Also, dairy as a segment linked to healthy food. GLP, we really see a pickup there, a bit slow in beverages, but above all, in the North American region, that uncertainty has caused cautious behavior of consumers and therefore, also our customers, so we have seen North America being soft with destocking. Now then Health, Nutrition & Care. Health Nutrition & Care grew 3% for the full year, minus 1% for Q4, but you have to correct for that specific pharma order, which is sometimes in 1 quarter to another, it would have grown with 1%. Also here, predominantly the North America bit Dietary Supplement and Eye Health, Early Life Nutrition, Pharma, really, really doing well with good growth also on biomedical. So the fundamentals are still there. We've shown, build on what Ralf said, a 3% growth in a difficult market is creating a bit of confidence. So we're not giving an outlook, but we are giving you a lot of color to understand where we are heading for. Dave Huizing: Second question, Ralf? Ralf Schmeitz: Okay, yes. No, supplementing, I think Dimitri gave a better call. I think overall, Nicola, I think also, if you look at the Annex, then the impact of the restatement is very limited. So the regular seasonality will remain in place. Not that, that is very big, but on the back of the restatements, there's no fundamental change on that. Other than that, is that you now see the quality of the tuned portfolio. And if you look at the overall margin, fairly stable throughout the year and also from a growth perspective, not much of a deviation. Other than that, some of the a more volatile and weaker segments have now been restated. So that generally lifted the performance a little up. Operator: Our next question comes from Charles Eden with UBS. Charles Eden: My first question is more of a follow-up around sort of comments on Monday around the stranded cost of EUR 75 million that you mentioned. Would you expect this to mean that you start '27, I guess if we assume the deal closed at the end of '26, with a EUR 75 million headwind to continuing op EBITDA? Or do you expect to announce sort of another sort of top-up cost savings program to offset this amount, either fully or partially? And then second one, I'm just kind of follow up on the '26 guidance. And can I pressure a bit on the decision not to provide the guidance today. I guess, given the initial plan was to announce last summer, you've known the scope for a while when Ralf, as you mentioned, the restatement are pretty small for the continuing ops. So I'm slightly surprised you're waiting until March to give us that outlook. It just feels like it adds another period of uncertainty for your shareholders who've been patient and waiting for the disposal. So can you just help us understand that? Dimitri de Vreeze: Okay. Let me do the first one and then Ralf could explain the outlook. By the way, 12th of March is three weeks away. But apart from that, that's Ralf to respond. On the stranded costs, thanks for giving me the opportunity to elaborate on that. The stranded cost will have zero effect on our EBITDA. So we will compensate it for that. We have programs ready. We know when the TSA will run out. We'll take actions before. We've done it several times with many of the divestments we've done. So the EUR 75 million will be fully compensated for that. Maybe you see some small effects from one month to another, but we have road map, a road book where we exactly know what to do and how to phase that out. So that will not have any effect on our bottom line throughout the period. Ralf Schmeitz: All right. And let me then comment a bit further on the guidance. The short answer was of the Dimitri, it's only three weeks away. Now but on a serious tone, Charles, it's something that we looked at as well. But as you'll appreciate, we just closed the transaction literally over the weekend and then the restatement and the announcement of the deal. Obviously, when we want to guide, we want to guide for continuing operations. But I think also through the color that Dimitri gave is that we will be giving that guidance in full, including the BUs, but also about what is comprising of the businesseses, I think also a guidance today would kind of land in a territory where there's a lot of -- where people are still digesting all of the changes and going through. I mean, if you look at it, there's not even a consensus out there in terms of that around that new company. But rest assured, we are managing the business for growth. You said that it adds a period of uncertainty. I don't think so. I think with the voice of Dimitri, I mean, the color that we gave is in a difficult environment in '25, how we managed to deliver at least 3% growth. We will be managing the business for growth going forward. We will be tilting -- what Dimitri clearly said is that our guidance will be very much around organic growth, EBITDA, quality and cash where the cash target we will be uplifting, I think that is clear. And at the same time, the margin is a continued improvement story as well. We are happy with that the actions of tuning, also, if you look at the bridges that we presented at Capital Markets Day, there was a step-up of 2% of that. We have delivered on that. We're now at a 20% margin, but it's clear that we want to continue that trajectory also going into '26. So I think overall, there is comfort around that, managing the business for growth. We continue our margin trajectory and we'll be uplifting our cash performance. But then zooming in onto the full details and everybody had time to digest also the new reality and then we'll be bringing also the BUs that can then elaborate a bit more on our growth ambitions or innovation-driven ambitions. And with that, I think then, there's more purpose of giving you the outlook then on March 12. Charles Eden: Appreciate the color. I guess my point would just be we're going to recalibrate consensus now. And then maybe in 3 weeks, it needs to be recalibrated again. So it just creates a netbook. Anyway. I appreciate the color. Ralf Schmeitz: Yes. All right. Operator: Our next question comes from Matthew Yates with Bank of America Merrill Lynch. Matthew Yates: A couple of questions, please. The first one on the Perfumery & Beauty business. If I take the sort of continuing operations, I think the margins were down 80 basis points year-on-year. Can you just help us disaggregate that a little bit? You know, what was the FX impact on that? You talked about negative mix, but Fine was actually growing quite well. So, I guess, the mix isn't obviously a headwind unless, you're suggesting that beauty is a very, very high margin. And then the second question for Ralf around the cash flow. And I apologize, I'm not really sure how to phrase it because I haven't been through the accounts in a lot of detail. Your cash conversion was down about 3 percentage points year-on-year. It looks like about half of that is probably explained by working capital and then there's another half that I think, in your introductory remarks, you talked about timing. I'm just trying to understand, you're saying you're aiming to raise the cash flow conversion target. You've just done 10.5%. Like how would you honestly assess the cash conversion last year? What -- are there things that you think was depressing that conversion that we wouldn't necessarily extrapolate going forward? Just trying to get an assessment really about how much cash the business is generating? Ralf Schmeitz: Yeah. You want to take P&B? I'll take the cash. Dimitri de Vreeze: Yes. I think on P&B, it's rather clear. You basically said it's FX and it's mix. So remember that Fine Fragrance is around EUR 600 million out of the total. So obviously, we had a growth there. But Beauty & Care was lagging behind, softening, waiting for normalization. So it's a mix effect. That's about half and the other half is FX. Ralf Schmeitz: All right. And then building on the cash, and I appreciate the question, Matthew. Let me -- I think your assessment -- your quick assessment is a good one. So there's a few moving pieces around working capital. I commented on that in the opening words, around inventory, that we're not able to manage everything through. So we're carrying a bit about an elevated level. Inventory is about 1% differential. Last year, we continued to make good progress. This year, whilst the efforts were there to reduce it, I think, overall, the tariff environment and our carve-out activities cost an elevated level. Obviously, with a somewhat softer demand environment in the second half. So that's about EUR 100 million and accounts for half of it. The other moving pieces in working capital, generally on the payable side, I'm happy if you look at our DPO, it's slightly above 100. We're very much in line with prior. Receivables have been elevated as well. I think everybody is carefully managing the cash flow and that costs us a bit of half a point as well. So I think that assessment is absolutely fair. Half is working capital, and then I'm confident that we will be able to rebound that. And that's how I am also looking more at the cash flow over the 2-year period. If you look at the continuing operations, we included that in the press release, was 13% last year, now with 10.5% now on average, that lands very much at a 12% rate over this period. Now, what do I mean in terms of timing of payments? There's always a bit of an overflow from year-to-year. And sometimes that allows you to slightly perform better in one year, and then you see the rebounds next year. That's what we've seen. But if you go back to a half year call, I also explained that the incentives had an impact on that as well. On the one hand, '24 was a strong year, but the actual cash out is actually the year thereafter. So whilst at the same time, you have a bit of an elevated level of cash generation in '24 because you got the strong business results, but then obviously, you see a bit of a higher outflow in the first half of the year thereafter. So I think that's why you need to balance the cash over the 2 years to really see the current earnings performance, but at the same time, we have a continued step-up that we want to do in terms of working capital, but also CapEx. If you look at it, when we gave the prior guidance was always for the full group. We guided for 6% of sales. We landed spot on, on that figure. If you look for the continuing operations, it's slightly elevated because we're finishing the Bovaer plant, so that has, still a cash outlet this year and next year. But there's a potential that, that will normalize back to the 5% for the continuing operations, so that in itself was also 1.5% improvement. So I think we've got the levers. We'll elaborate a bit more on that on March 12th as well on what the programs are in place and where Dimitri and myself are focusing on and steering on, but there is a potential uplift for that target, and we know where that needs to come from. Operator: Our next question comes from Alex Sloane with Barclays Bank PLC. Alexander Sloane: Two questions from my side. First one on HNC, could you remind us roughly how much of the division ARA oil sales make up? And if you were to see significantly increased demand there from market share gains, given everything that's been happening, you know, can you talk to your capacity to service that demand and what that could potentially mean for HNC in '26? And then just the second one, just going back to Perfumery & Beauty and Matthew's question on the margin. I mean, was there any of that margin pressure that may be related to the kind of increased price competition in perfumery ingredients that we have seen at some of your peers. I think so far, you haven't really called that out, but just wondering if you can maybe touch upon that? Are you seeing any pressure on that front? Would you expect to see any pressure on that front? Dimitri de Vreeze: Thank you for those two questions. Let me elaborate on that. Thanks for the ingredients China part. You didn't hear us calling that out because it's not an issue for us. Now then you could do a follow-up question. Yes, but why are the others talking about it? Because we have tuned our portfolio already 2 years ago. Remember, we had a EUR 1.2 billion ingredient portfolio, where we have made deliberate decision not to rebuild Pinova. We have sold the aroma business. We have tuned down our portfolio. We've upgraded our portfolio and we have an EUR 800 million portfolio left in the ingredients, apart from the CapEx. So that EUR 800 million is predominantly specialties, fragmented, small molecules. And the pressure on China is on the big molecules, the menthol, the citral we were not in those big molecules because these big molecules, scale is important, cost is important, commodity type of elements are there. We don't want to play there. It's not our profile. We are in the Fragrance ingredients, in the fragmented ingredients, and therefore, you don't hear us call us out. And if you see at the results, the ingredients grow mid-single digit, and we're very happy with that. So that's why you didn't hear us calling it out because it's not an issue for us. Now then on your HNC part, I will be less specific because obviously, this is also a customer as well as competitive -- sensitive. We are the best-placed player in Early Life Nutrition. I think nobody would debate that. We are in ARA, we are in DHA. We now are absolutely the first entrants in HMO in China, but also more than HMOs in the pipeline to follow. And obviously, what we have seen on ARA is helping the story we tell Early Life Nutrition. Innovation is super important. Quality is super important. Credibility and reliability is super important. And I think DSM-Firmenich is always have -- always been that type of partner for our customers. And obviously, what is happening on the Early Life Nutrition market is helping us a little bit, and we will see a little bit of tailwind for that because I think it hints to what we want to be for the Early Life Nutrition phase. Now HMO, I spelled out earlier, that's a category where we see more than EUR 100 million-plus segment moving towards. And Early Life Nutrition, as part of our HNC business is around 25-plus percent of the portfolio. So it's definitely an area where we want to play, where innovation is important, where premiumization is important. Just to give you a bit of reference, everybody is always asking, oh, Dimitri, Early Life Nutrition is bad because birth rates are going down. The issue is that the premiumization with new ingredients is going up, the ingredients play into the Early Life Nutrition has seen very, very healthy growth in the last two, three years if you're there with the right innovation. Let me pause here. Operator: Our next question comes from Fernand de Boer with Degroof Petercam. Fernand de Boer: Yes, I also had a question on Early Life Nutrition, but that was answered. But on the new company of the continuing operations, how much of your cost base is actually in Swiss franc? Ralf Schmeitz: Great question. Overall, our FX profile improved. Well, normally, you get a slide from me with the housekeeping indicating that a bit as well. I think overall, the dollar exposure came down to about [ $13 million ] , that was previously closer to [ $15 million, $16 million ]. So that has somewhat improved. And on the Swiss franc, our overall exposure was CHF 800 million, it's now CHF 600 million exposure. Overall, the impact of [indiscernible] is about CHF 6 million, I think that was previously CHF 8 million. So somewhat improved profile on the FX side. Obviously, the current environment is not very helpful. So we will see an impact of that. But overall, the sensitivity has improved with the separation of ANH. Fernand de Boer: And maybe to come back on the guidance question. The fact that you don't give a guidance today for '26, absolutely does not mean that you are going to change your midterm guidance of ambitions? Dimitri de Vreeze: The answer is for 2, yes, and for 3, no. OSG, no change midterm. EBITDA, no change, midterm. And you wanted us to change the midterm guidance on cash because we said above 10%. And we got so much comment that, that was absolutely conservative, et cetera, and Ralf and myself, said listen, we are also building a company, so we start with more than 10%. And I think during that event, I also asked for a little bit of patience. Now, we have delivered 2x above the 10%. And I think I've heard Ralf saying that we would upward adjust that cash target. But let's have that for March 12. So 2 out of 3, absolutely, yes. And the third one, a yes, but it will be changed upward. Fernand de Boer: Midterm still the starting point is '24? Dimitri de Vreeze: The midterm starting point in '24... Fernand de Boer: Because actually in 2022 you gave the guidance for midterm and then in '24, you did actually the same for a smaller company, but not that you now mean with midterm, okay, we're going to have midterm targets, and then the starting point is '26. Dimitri de Vreeze: No, because we're already in '26. By the way, we've always said a midterm target starting run rate into '28. So that is what we said and that's still consistent. It's not a moving target. Yes, it's not like my son saying, I will pass my exam, but not this year, but next year. Fernand de Boer: Okay. Dimitri de Vreeze: You don't sound very convinced. Fernand de Boer: Well, what I said, we had '22 and then it was midterm and then in '24, it was also still midterm, and that's why I'm asking that -- okay, the answer is very clear, thank you. Dimitri de Vreeze: Yes. '22, the company didn't exist as we are today. So we started in May '23, that is... Operator: Our next question comes from Chetan Udeshi with JPMorgan Securities. Chetan Udeshi: I have two. The first one is quick. Is there any implications on your tax rate, excluding animal? I mean, I suppose animal wasn't making much money anyway. So -- I would guess, but just to clarify, the second question is your cash target, and I appreciate you'll probably upgrade that conversion target, which is good to see. But it's based on your adjusted numbers. And I'm just curious, as we go past this phase of restructuring and separation. What is the level of APM that we should have in mind that sort of leaks out from your adjusted cash? Because when I look at what you give us in terms of adjusted free cash flow versus what we can derive just taking your cash flow statement, the numbers are pretty different, and I would hope, over time, that gap reduces. So I'm just curious what would be the normal level of APM that we should have in mind? Ralf Schmeitz: Yes. Thanks for questions, Chetan. So on the tax side, overall, I made a quick comment in the opening statements. So overall, our effective tax rate for the continuing operations is at 21%. I think previously we guided for 21% to 22% for the total group. Happy that we came in on 21%, and we continue to aspire to minimize the leakage on that front, but this is very much in line with the guidance that we gave before. So the impact of the separation of ANH despite having, of course, its base in Switzerland didn't adversely impact the company, which is good. And again, I think that's also going to be the guidance going forward, in that same range that the tax will be around that 21% level. Now then, with respect to your APM questions. I think in the Annexes of the press release, you can actually see the APM development as well. Now obviously, throughout these tuning activities, you're rightly so, we had a bit of leakage. And normally, when you transform, there is a bit of a cost associated to that. We took that into account in the company that we want to build. But over time, from a cash perspective, you see it coming down. It's a constant point of attention, also for Dimitri and myself, we don't want any leakage on that front. We have substantially reduced it over the years from '23 to '24 to '25 also with some of the merger costs flowing out. And the guidance for '26 is that it should come down to below EUR 100 million, but we continue to stay focused on it to reduce it as much as we can. So the adjusted number comes closer and closer to the nonadjusted figure. Dave Huizing: We're now at the end, I think we are at the end of the Q&A session. Maybe closing remark, Dimitri, you want to make? Dimitri de Vreeze: No. Thanks, Dave. Indeed. Thanks for your time. Thanks for your understanding. Let's dive into the numbers. Please reach out to IR to really understand. I understand there's a little bit of pushback why we don't give an outlook. Now, you need to establish a full understanding of the base before you give an outlook. Imagine we've given an outlook, you would have asked based on what? So let's do step 1 first, March 12 is around the corner. We gave color on the business. I think at 3% in a difficult year. That's what we inspire to. So even to the midterm target, when business is normalizing, is absolutely in play with an EBITDA trajectory starting from 18% to 19%, close to 20% and we will not stop after 20%, we move towards the 20% to 23%. And I think with the cash we clearly indicated that we'll listen to you and that we'll come with a new midterm target on the cash as well as in the outlook for 2026. Now with all that, over the last 2.5 years, I think we worked diligently to bring DSM-Firmenich into the next phase, a EUR 9 billion business with today already at 20 -- around 20% EBITDA with good cash flow generation. To the point on what's a normalized APM is also linked to what is the next phase? The next phase will be accelerated. We will not go for big M&A, we're going to grow what we have. So we're happy with that portfolio. We're going to show that potential with an improved step-up still from the EBITDA from 20% to the range of 22% to 23% with good cash flow generation and with a clear understanding for our investors. We have paid around EUR 2 billion of dividend over the last 2 years. It is important to us. If we have additional leverage on the balance sheet, we are doing share buybacks. We finished the EUR 1 billion. We'll add another EUR 0.5 billion already in anticipation of the close towards the end of the year. So we also take that very seriously, and I hope we all see you on March 12 to show that what we have built has huge acceleration potential. And with that, let's close the call. Dave Huizing: Okay. Thank you, Dimitri. Thank you all for attending today's call. And with that, we can close the webcast. Any questions, as the gentleman already said, make times, please reach out to Investor Relations. We will pull a consensus ahead of 12th March, so that also we will then give basically an outlook on basis of that you've referenced to your estimates. Back to the operator, please. Operator: This concludes today's call. Thank you, everyone, for joining. You may now disconnect.
Erik Engstrom: Good morning, everybody. Thank you for taking the time to join us today. As you may have seen from our press release this morning, we delivered strong financial results in 2025. We made further operational and strategic progress, and we continue to see positive momentum across the group. Underlying revenue growth was 7%. Underlying adjusted operating profit growth was 9%, and adjusted earnings per share growth was 10% at constant currency. All four business areas continue to perform well. On this chart, you can see the relative sizes of the business areas and their growth rates with underlying adjusted operating profit growth exceeding underlying revenue growth in each business area. In Risk, underlying revenue growth was 8% and underlying adjusted operating profit growth was 10%. Strong growth continues to be driven across segments by the development and rollout of our deeply embedded AI-enabled analytics and decision tools with over 90% of divisional revenue coming from machine-to-machine interactions. In Business Services, which represents over 40% of divisional revenue, strong growth continues to be driven by financial crime compliance and digital fraud and identity solutions and strong new sales. We continue to expand our differentiated data set, build out our global fraud infrastructure and more deeply integrate advanced authentication and behavioral intelligence. In Insurance, which represents around 40% of divisional revenue, strong growth continues to be driven by innovation and adoption of contributory databases and market-specific solutions, supported by positive market factors and strong new sales. We continue to expand our products across the insurance continuum and across the insurance lines, while adding data sources and analytics to enhance value for our customers. Going forward, we expect continued strong underlying revenue growth with underlying adjusted operating profit growth exceeding underlying revenue growth. In STM, underlying revenue growth was 5%, and underlying adjusted operating profit growth was 7%. Improving momentum is being driven by the evolution of the business mix towards higher growth, higher value analytics and tools supported by the increasing pace of new product introductions and strong new sales. Databases, Tools & Electronic Reference, which represents around 40% of divisional revenue, delivered strong growth, driven by higher value-add analytics and decision tools and we continue to expand our solution set built on our industry-leading trusted content with an ongoing series of new releases. In Primary Research, which represents a little over half of divisional revenue, good growth continues to be driven by volume growth. The number of articles submitted continued to grow very strongly across the portfolio by over 20% in 2025, and the number of articles published grew 10%. Going forward, we expect good to strong underlying revenue growth, with underlying adjusted operating profit growth exceeding underlying revenue growth. In Legal, underlying revenue growth improved to 9%, with underlying adjusted operating profit growth of 12%. Strong growth continues to be driven by the ongoing shift in business mix towards higher growth, higher value legal analytics and tools. In Law Firms & Corporate Legal, which represents around 70% of divisional revenue, double-digit growth is being driven by continued adoption of our core AI-enabled legal platform and integrated Agentic assistant, Lexis+ AI and Protege. Ongoing releases of new functionality and deeper integration with our comprehensive, verified legal content is enabling us to increase our value add and serve an increasing number of use cases. Going forward, we expect continued strong underlying revenue growth, with underlying adjusted operating profit growth exceeding underlying revenue growth. Exhibitions delivered strong underlying revenue growth of 8%, reflecting the improved growth profile of our event portfolio and good progress on our growing range of value-enhancing digital initiatives. Underlying adjusted operating profit growth of 9% was ahead of revenue growth with margins now significantly above historical levels. Going forward, we expect continued strong underlying revenue growth with an improvement in adjusted operating margin over the prior full year. Our strategic direction is unchanged. Our improving long-term growth trajectory continues to be driven by the ongoing shift in business mix towards higher growth analytics and decision tools. This is being supported by the continued evolution of artificial intelligence, which is enabling us to add more value to our customers as we embed additional functionality in our product and to develop and launch products at a faster pace. Our revenue growth objectives for the business areas remain: For Risk, to sustain strong long-term growth; for both STM and Legal, to continue on their improving growth trajectories; and for Exhibitions, to sustain strong long-term growth. When combined with continuous process innovation to manage cost growth below revenue growth, the result is a higher growth profile with strong earnings growth and improving returns. I will now hand over to Nick Luff, our CFO, who will talk you through our results in more detail. I'll be back afterwards for a quick wrap-up and Q&A. Nicholas Luff: Thank you, Erik. Good morning, everyone. Let me start by providing more detail on the group financials. As Erik said, underlying revenue growth was 7%, with underlying adjusted operating profit growth ahead of that at 9%. As a result, the adjusted operating margin improved by just under 1 percentage point to 34.8%. The strong operating result flowed through to adjusted earnings per share, which at constant currency increased by 10%. Cash conversion was again strong at 99%. After acquisition spend of GBP 270 million and the completion of the GBP 1.5 billion buyback, leverage ended the year at 2.0x at the lower end of our typical range. Given the strong overall performance, we are proposing an increase in the full year dividend of 7% to 67.5p per share. Looking at revenue, you can see how all 4 business areas contributed to the overall 7% underlying growth. As we discussed at the half year results, we have separated out the reporting of print and print-related revenues and profits, reflecting changes to how we manage the distribution of print versions of our content. The proactive steps to reduce our involvement in print-related activities continued in 2025, resulting in a reduction in associated revenue of over 20%. For the group as a whole, total revenue growth at constant currency was 4% after the portfolio effects in Risk, Legal and Exhibitions and after the step-down in print activities. In addition, there were cycling effects in Exhibitions with 2025 being a cycling out year. In sterling, total revenue growth was 2% impacted by the relative strength of the pound against the dollar compared to the prior year. Here, you can see the 9% underlying growth in group adjusted operating profit. As Erik mentioned, we continue to manage cost growth to be below revenue growth in each business area. As a result, Risk, STM and Legal each delivered underlying profit growth 2 or 3 percentage points ahead of underlying revenue growth, while Exhibitions was 1 point ahead, reflecting a better cycling in the year. The profit contribution from print and print-related activities declined but at a lower rate than revenue. As I said at the half year results, going forward, we expect profit from print and print-related activities to continue to decline in the high single digits each year in line with historical trends. Portfolio effects and the decline in print were a slight drag, leaving total adjusted operating profit growth in constant currency at 7%. There was a similar currency effect on profit as there was on revenue, giving adjusted operating profit growth in sterling of 4%. With profit growth ahead of revenue growth, margins improved across all 4 business areas, driving the overall improvement of 90 basis points to 34.8%. Margins were up by 40 basis points in Risk, 70 in STM and 80 in Legal. Exhibitions margin increased by 250 basis points, aided by prior year disposals and the effects of cycling. Turning to the group adjusted income statement. You can see here the underlying growth was 7% in revenue and 9% in operating profit. The interest expense was slightly lower, with the decrease reflecting lower average interest rates partly offset by higher average debt balances. The effective tax rate was 22.5%, in line with the prior year. Net profit was up 8% at constant currency and up 5% in sterling to over GBP 2.3 billion. With the lower share count as a result of the buyback program, adjusted earnings per share were up 10% at constant currency and up 7% in sterling to 128.5p. Turning to cash flow. Cash conversion was strong at 99%. EBITDA was over GBP 3.8 billion and CapEx was GBP 525 million, equating to 5% of revenue. After interest and tax, total free cash flow was over GBP 2.3 billion. And here's how we deployed that free cash flow. We completed 5 small acquisitions with total consideration of GBP 270 million and made 2 small disposals. The most significant acquisition was IDVerse, an ID document verification platform for business services in Risk, which completed in the first quarter of the year. Dividend payments were GBP 1.2 billion, and as I mentioned earlier, we completed GBP 1.5 billion of share buybacks. Overall, year-end net debt was GBP 7.2 billion. Including pensions, the ratio of net debt to EBITDA calculated in U.S. dollars was 2.0x at the lower end of our typical range of 2 to 2.5x. Our priorities for the use of cash remain unchanged. Organic development is our #1 priority with CapEx consistently around 5% of revenues. We augment that organic development with selective acquisitions with this level of spend typically being the most significant variable in our uses of cash, depending on the opportunities that arise. Average acquisition spend over the last 10 years has been around GBP 400 million per annum with 2025 a little below that average. We pay out around half of our adjusted earnings in dividends and have increased the dividend every year for well over a decade. Leverage has typically been in the 2 to 2.5x range. Strong cash generation, improving EBITDA and modest acquisition spend in the year mean that leverage at the end of 2025 was at the lower end of that range. We continue to return our surplus capital through the share buyback with GBP 2.25 billion of spend announced today for 2026, of which GBP 250 million has already been deployed. With that, I will hand you back to Erik. Erik Engstrom: Thank you, Nick. Just to summarize what we have covered this morning. In 2025, we delivered strong financial results, and we made further operational and strategic progress. Going forward, we continue to see positive momentum across the group, and we expect another year of strong underlying growth in revenue and adjusted operating profit as well as strong growth in adjusted earnings per share on a constant currency basis. And with that, I think we're ready to go to questions. Operator: [Operator Instructions] We take the first question from the line of George Webb from Morgan Stanley. George Webb: I have got a couple of questions, please. Firstly, big picture one, it's hard to miss the kind of broad concern or fear that's happening across a lot of stocks today. If we pick up on your Legal segment, I guess the latest one of those worries is a concern that you might face incremental competition around AI-enabled workflow tools from other large software companies. Maybe if we take one step back, for the last couple of years in Legal, we've seen you talk about product launches which use Gen AI, more product adoption by customers and therefore, underlying acceleration in the Legal business. I guess the question is, do you or have you seen anything in your business in terms of lead indicators or numbers on product adoption, conversations you're having that calls into question your ability to continue to participate in that tech adoption cycle, and that means we should be thinking about potential deceleration in legal before any potential further acceleration? That's the first question. Secondly, just on STM, given the slight bump in the outlook there. On one hand, you talked to kind of the strong submissions growth and maybe the early ramp of new products such as LeapSpace, but then I guess the full open access growth might moderate in the mix this year, the U.S. funding environment is still a little bit tough. Could you maybe just outline some of those growth considerations in the mix for 2026? Erik Engstrom: Okay. Well, maybe I'll have -- thank you. Maybe I'll ask Nick to comment on the specifics on growth, adoption, penetration, rollout usage on Legal. And then I'll comment on that a little bit and move on to the second. Nicholas Luff: George, I mean I think the opposite. I mean, we see these tools as adding value, enabling us to build the functionality into our products. And you're seeing that come through in the adoption, the usage. And if you look specifically at the Legal business and Lexis+ AI, the enterprise-wide subscription customer base has more than doubled in the past year. And the usage is going up faster than that. We have users in the multiple hundreds of thousands now across the globe on Lexis+ AI. We're seeing strong demand for what we do with the product built on that trusted curated content set, it remains very important to the customers, and these tools are enabling us to add value and grow faster. Erik Engstrom: I think just if you back up a little bit to your broader question about workflow software, I think it's important to remember that the core of our strategy always starts with our uniquely differentiated, comprehensive content, our collection of trusted, verified, continually updated content and data sets. And we then leverage our deep understanding to combine these content assets with sort of advanced evolving technologies and these evolving AI tools to deliver increased value to our customers. And I think it's important to understand that we have worked with this strategy inside Risk with the evolution of AI tools, extracting machine learning tools for over 15 years, and that's been the core driver of the whole evolution of the Risk business to now being 40% of our profits, growing 8% a year on revenue, and this year, 10% on profit. And we have had the same technology-agnostic philosophy and tool-agnostic, multi-model architecture from the beginning of the Gen AI trends for over 3 years. We've been partnering closely with all the large language models providers, including Anthropic and OpenAI for that time period. And as they continue to build out their models and tools, we continually evaluate all the new releases, including often through previews as a partner, and we often test them through ongoing interaction with our customers to determine if they can help us add more value to our customers if we embed them in our tools. So any new tool that you read about, hear about, we're probably already testing it, involving it in our platform and seeing if we can add more value on our platform to our customer value equation. And often, as you say, there are several companies out there that are developing workflow tools that effectively are today serving -- they're trying to serve or starting to serve some of the use cases that other software companies are serving today. In Legal, large law firms typically use over 100 of these software companies for different workflow tools, different admin procedures. And if those tools embedded in our core content platform help our customers add more value, we will embed the best of those new tools into our platform and act as an integrator of those and make them work with our customers. And if they're not relevant to the content-related use case, the content-related workflow and if it's just workflow that's today being served by software companies, then we don't integrate them directly. We often look at alternative ways to be interoperable and compatible with them so that our content sets, our deeply differentiated content set on our content platform can actually be accessed in the different workflows and we believe that, that way then we enhance the utility of, and therefore, the value of our platform if it can be accessed in workflows where people are more efficient and more productive and in the area where we don't want to be or operate ourselves. I mean today and historically, we have virtually no revenue in any of our divisions from what I would describe as workflow software-related services. Nicholas Luff: And sorry, to the STM question. I mean you asked about submissions and publication volumes, George. The fact is that science remains a totally global industry. The number of scientific researchers in the world continues to go up. The information intensity of science continues to increase. The desire and the speed at which people want to be published continues to increase. And so we -- as you saw in the -- we had strong growth in submissions last year, over 20%, the number of articles we published over 10%. And that has not slowed down. We're seeing that continue into this year. There's continued strong momentum in primary research. And there's always in any one country, there can always be things happening. But if you look at it in an overall sense, we continue to see strong demand for primary research publishing. Operator: We take the next question from the line of Nick Dempsey from Barclays. Nick Dempsey: I've got 3. So first of all, for the Protege AI workflows, which you are now starting to roll out, can you please talk through what differentiates those offerings from the competition in that broad AI workflow market in a bit more detail, please? Second question, there have been some concerns knocking around about autonomous driving and the auto insurance market. Can you talk about your exposure, the impact as the auto market shifts gradually towards autonomous driving and give us a sense of whether you see any long-term risks around that? And number three, when you refer to strong new sales in 2025 for the group and then in Legal, you'd say renewals and new sales are strong across all 3 segments, am I right in thinking that those new sales will have only a very modest effect on '26 growth, but you're signaling that they should be supporting growth through '27, '28 and beyond? Erik Engstrom: Yes. So I'll let Nick to start with the first one. Nicholas Luff: Yes. So I mean, the big difference between what Erik was touching on earlier, all the things we're offering to do is the content that's behind them. We would describe what the workflow tools that we're introducing as being content-enabled, and that's a key differentiator. It's not that other tools can't be useful to people. And as Erik touched on, many tools are used by lawyers and other professionals. But the ones we have, if you're actually doing anything that relies on trusted curated content, then that's where the differentiation comes in. We also, of course, have the advantage of the customer understanding and the sheer scale at which we already operate. As I touched on earlier, we have hundreds of thousands of users of Lexis+ AI. And so we can see how it's used, and we can see what's useful and constantly be updating the quality of the answers that we're able to provide, and that's a key differentiator as well. Erik Engstrom: Yes. Yes, I mean I just want to add to that, but I think it's important to look at this is that the workflows we're developing, I think when we first released Protege, we were talking about order of magnitude sort of 50 workflows or so in earlier, and these have been released out in phases, continue to be released out in phases and upgraded as we go along. At the moment, we're probably nearing 300 different workflows -- specific workflow tools. And we can develop these on our content, on our platform and launch them to our customers at the rate of probably another 2 or 3 a day in this machinery that we have. But again, these are content-related workflows that are embedded in our platforms that help add value to our customers the way they operate with us and it's unrelated to the kind of industry that is the broader legal tech software industry where people are spending money on software or workflow solutions for operating an admin. And that's where we separate the two and try to be embedded with the first category and be interoperable with the second category. As you know, we're fully embedded in Microsoft since many years ago for our customers, they can fully operate and work between our tools and the Microsoft tools. That does not mean we're trying to compete with them or operate Microsoft general admin workflows in any way. But it enhances the value of our content and our utility of our platform when our content-specific workflows fit right on our content, but it also enhances the value when you can use our LexisNexis AI-related platform and workflow interoperably with Microsoft, for example. And we have about 25 of these different existing partnerships in Legal today, and I'm sure there'll be many more in the future, yes. Nicholas Luff: So Nick, on the autonomous driving question, obviously, there are lots of trends affecting the auto insurance industry all the time. Enhanced safety features is part of that, automatic braking, telematics, some autonomous driving. And I think we see that as the whole industry evolving to make driving safer, generate more data and everything becoming more complex as you do that. And in that environment, what we do where you get sophisticated risk analysis, combining the data from -- about the driver, about the vehicle, about how it's been driven, the interaction between cars being driven in different ways, that just creates opportunity for us. The value at stake actually goes up, and it's been a trend for many years that you get fewer accidents, but the severity of them and the cost of them goes up. So the value at stake actually is getting higher. And in that environment, I think we're extremely well placed to add more value because of the additional data and analytics that we can provide. And your last question, Nick, was on strong new sales. You're absolutely right. I mean obviously strong new sales. New sales are -- in a subscription -- heavily subscription based business as we are, they are only a small component of what's relevant to the current year revenues, but they are a good indication of the momentum there is in the business and ultimately, what drives the long-term growth trajectory, and that's why we're flagging this morning. Operator: The next question comes from the line of Christophe Cherblanc from Bernstein. Christophe Cherblanc: I have 2 questions. The first one is on STM. I guess, we have a sense of the lawyer population, but it's harder to understand the addressable population for tools like LeapSpace. So I was curious whether you had any number in mind or any number of institutions and how long it would take to ramp up penetration? And the second question was about pricing. I think you've been insisting that especially in Legal, you are no longer pricing per seat, but I was curious as to what was the extent to which you've been changing pricing contract over the last 12, 24 months and whether you intend to further adjust pricing going forward? Erik Engstrom: Yes. So on the STM side, we are launching several different tools into that market, as we've told you. Several tools have been going for now up to -- well, 1 year or up to 2 years in some instances, and we continue to see what the value uplift is to the customer, what the usage growth is and what the user growth is and usage growth, and we can see the value they're getting. From the new forward-looking LeapSpace launch, which has just recently launched commercially, we can see that is a significant value uplift to the users, several of them report very significant time savings or productivity gains or improved results from specific use cases that are very material. And we look, therefore, at the potential addressable market as being basically all the institutions that today have any of our platforms in use, right, or any of the subscribers. And that order of magnitude is in the thousands. I mean, it's over 10,000, depending on when you want to define it, somewhere between 10,000 and 15,000 institutions, right, as potential institutional customers. When it comes to individual users, which also in the end could be a customer for this, I would look at it as is typical that people refer to the total number of researchers in the world at somewhere a little bit above 10 million. That's the scale of this. And if you look at the question of how do we price them, our approach here is to price this platform based on scale of institution and research intensity of the institution. So therefore, there's a set of pricing metrics regarding what type of institution it is. We are also likely to, over time, come up with an individual researcher subscription option for those researchers who operate in a different way that they should -- that might want to access the capability of this in their daily research life. But we're very early stages on the commercial side of this, and it's sold and priced separately from our other content tools. But the indication we're getting from our customers, the feedback we're getting in terms of the value adds and the excitement is very strong. But as you said, everything in the STM industry goes a little more slowly than it does in other industries, partly because of how they think of funding and spending and budget and also because the purchase cycles, the decision cycles at academic institutions are typically slightly more involved and take longer. But we are very positive on the ability for this platform to continue to add value to our customers and meaningfully impact our long-term value-add and growth trajectory in this division, but it's going to come through very gradually. Operator: We take the next question from the line of Thymen Rundberg with ING. Thymen Rundberg: Two from my side. I have one on operating leverage and margins. So you've done a great job in managing cost growth below revenue growth in the last few years, also 2025, profit margins are expanding nicely. As we are now moving in more compute-intensive AI or agentic workflows that just basically require deeper reasoning, how are you leveraging your scale and your -- what you've just talked about as well, your model agnostic approach to ensure that you can still drive that margin expansion while delivering these more sophisticated capabilities? And then the second question is with the pace of this AI and agentic AI innovation across all your divisions, I was wondering if you could walk us through a bit how you're currently assessing the balance between returning capital via buybacks, what you've now increased, and more or perhaps larger strategic acquisitions. And so given that your leverage remains at the low end of your 2 to 2.5 range and organic investments are still your priority, I was wondering if you could highlight just when does it make sense to use the balance sheet a bit more actively, particularly in light of competitive dynamics? Erik Engstrom: Thank you for that. I'm actually going to ask Nick to tell us about both of those. Nicholas Luff: Yes. I mean obviously, the new technologies that are evolving are giving us great opportunity to build additional functionality in our products, but they're also giving us the opportunity to improve our own processes, make our own processes more efficient. So we're using those to -- internally, which enables us to get to market faster, but also ensure we can keep cost growth below revenue growth. And I don't think -- obviously, we're spending more on some things than what we're spending with large language model providers, et cetera, as our customers use our products more and as we use those technologies more. But equally, with other things that we can do more efficiently than we couldn't before. And there's nothing we see in the overall dynamic that means we can't keep cost growth below revenue growth. And if anything, as we touched on in the outlook statements, the gap between profit growth and revenue growth can be -- potentially be a little bit wider. And that's just through cost control and the opportunity that it's -- that these new tools are giving us. I think -- your second question, I think, was about acquisitions and balance sheet and how we might use it. The primary focus remains on organic development. We have the skills and the opportunity. We have all the assets we need to innovate and bring new products to market and value to customers using that. We will look at acquisitions where we see the opportunity -- where we see something that can enhance and accelerate what we're doing. But they have to fit, they have to fit with what we're doing. And obviously, with those specific criteria, there's only a few things that are available at any time that makes sense. We could -- and we've had a couple of -- a few years now of relatively low M&A spend. That's not deliberate. It's just the way things have -- what's come up and it's perfectly possible that in the next period, we may see slightly 2 or 3 larger acquisitions come up, and we would absolutely invest in those if we saw the opportunity, but it's not the core of the strategy. The core strategy is organic. And in terms of where the leverage is, as you rightly point out, because we've had relatively low M&A spend in the last couple of years, we're at the bottom end of our leverage range. Clearly, we reflect that when we think about the buyback, and we have announced a buyback of GBP 2.25 billion this morning, which is up 50% from the buyback in the previous year. That -- if you take the sort of average M&A spend we have for the last few years, it's been around the sort of GBP 250 million mark, then all things being equal, that would put us roughly in the middle of our leverage range of 2 to 2.5x. So that's why it's been pitched at that level. Operator: We take the next question from the line of Ciaran Donnelly from Citi. Ciaran Donnelly: Firstly, just in terms of Legal, can you help us understand the mix between publicly available data and proprietary created curative data that underpins those products? And perhaps just comment on how difficult it will be to replicate those data sets, just looking to get a sense of how deep that competitive moat is? In addition, can you just clarify with regards to your comments on interoperability, would you be open to licensing use of your proprietary data to be integrated into, I don't know, API plug-in such as Claude Cowork? And then lastly, just in risk, it looks like the base market growth contribution was a smaller contribution in 2025 versus '24. So can you just help us understand the dynamics there? And looking forward to 2026, what the mix of growth from base and product innovation is likely to be? Erik Engstrom: Yes. So let me start with the question of our content sets. As you know, we describe RELX as a global provider of information-based analytics and decision tools. And everything we do is built on that information base, which is a foundation of unique and comprehensive content and data sets. And that applies to all our divisions. And our assets are both historically comprehensive and continuously updated on an industrial scale across our divisions. And in each one of our divisions, it includes some form of public records accumulated over decades, some of which are no longer publicly available, some of which are theoretically public, but extremely difficult and complicated to collect because of the format or in print or in different locations. Then they also include licensed data sets. Across the company we have licensed data for over 10,000 different sources. Some of those sources, the usage is regulated and controlled, and we can only use them in certain ways in our tools. We then have unique contributory data sets, and we have some of those involved in Legal as well. And we have dozens of those contributory databases across the company. We then have proprietary data and content that we have created ourselves, written ourselves, either within our pool of internal employees or external contractors have created them for us over many years, right? But we combine these content and data sets then with our deep customer understanding to build proprietary algorithms, judgment, inferences and interpretations, which accumulated over decades, delivered unique insights and significant value to our customers themselves, and this would be extremely hard, if not impossible, to replicate to the same level of value. And this is what we mean when we talk about the fact that we have a content advantage that we believe is very sustainable and very strong and are very high value to our customers across our divisions, including Legal. So if you then look at the question, will we consider just licensing out our content sets and on? No, this is a centerpiece of our strategy. This is what we are. We are an information-based company. We're a content-based company. And everything we do is built around that unique, comprehensive information base. And that's the foundation for our product today. It will be the foundation of our products and their value-add in the future. And is it possible some [ small sliver ] in some noncore areas could be licensed in some places? Yes. We've always done copyright sales here and there for decades, but that's not material. It's not the core of our strategy. Our core -- the core of our strategy is to leverage those deeply embedded content and data sets and embed these new tools on top to enhance the value of those content platforms to our customers. And that's what we're seeing a confirmation of when we do that to our customers, we see that they see a value uplift. We see the spend uplift they are willing to go on those because they see the higher value. We see that customers do that when it rolls out. We see that the users, we have more active users on the new higher value-add platforms and that they use them more. Nicholas Luff: And I think your last question was about the split of the risk growth, the 8%. As you rightly pointed out, the contribution from new products has gone up. This year, the split was 6% from new products, 2% from older products compared to 5%, 3% the previous couple of years. I wouldn't read too much into that. It's only a small shift. If anything, it just demonstrates that the pace of innovation has increased. The older products perhaps are being replaced slightly quicker with new products, new functionality. And therefore, the split has shifted a little bit, but I wouldn't read too much into it. Operator: We take the next question from the line of Steve Liechti from Deutsche Numis. Steven Craig Liechti: I'll take 3 well, please. First of all, just relatively simplistically, just if I'm a lawyer, and I've now embedded Harvey or Legora into my workflow, just why am I going to buy Protege as well as a workflow tool, maybe put that in the context of a large lawyer and a small lawyer? So that's the first question. Second question is on STM. You've given your -- you've moved your guidance from good to good to strong like-for-like growth. Is that code for saying that you think like-for-like is going to go from 5% this year to more like 6% next year? And then the third question is on the Risk. Just we're having a lot of conversations with people on the kind of disruptive stuff going on in the market. Just remind us or rehearse the arguments on why an LLM or disruptor would find it very, very difficult to break into the risk market in terms of either the business services bit or insurance? Erik Engstrom: Nick, would you like to take the first one? Nicholas Luff: Yes. Look, there are obviously various tools out. And as we said before, the whole ecosystem in which lawyers operate, they've traditionally used all sorts of different tools for different functionalities. It does depend on what sort of work you're doing. But if you're doing work that -- legal research work, in particular, but anything that it relies on content and what the latest information is, the latest law is, then as we've been outlining, we have a significant competitive advantage because of the data set that we've put and the content that we've articulated a couple of times already on this call. That doesn't mean to say that lawyers won't use other things as well. And if they're good tools, then as we said, we'll look to see whether we can use that functionality, replicate it in our products or make it interoperable with our products. And we'll continue to do that. But I think we're clear that we have a big customer base already using our Lexis+ AI with Protege tool that runs into the hundreds of thousands of users, tens of thousands of customers, so the scale of what we're doing is already way bigger than a lot of things -- lot of other things that are out there. So I think the starting point with that content advantage is very good for us. Erik Engstrom: And I think it's important to distinguish here between content players and competing in content, which is what we do with these layers on top, which is content-enabled processing that adds value to the content, and the people who are building workflow tools that are not in the content business at the scale that we have or the comprehensiveness of the historical trust and verified content that we have. But there, there are several hundred software and workflow companies ranging all the way from Microsoft at the top to very specialized tools that are used by lawyers in many ways. And as we said, many of the large law firms have 100 of these different tools. And the two that you mentioned that are coming up that for workflow tools that enable processing and workflows, they are more the way they describe it, going after that much larger software and services market in the legal tech space. And in a way, they have explained that they see that their biggest threat to their in their quote publicly is the LLM tools and LLM-related workflow tools themselves. We see them as additional partners. We're partnering with already 25 of these workflow and software-related companies in that space, and there's nothing that says that, that couldn't be -- do more over time. So we see them more as complement than competitors. Nicholas Luff: Steve, your second question was about the guidance around STM. I think as we said in the statement this morning, we have got improving momentum in STM. We are seeing an increased pace of the introduction and rollout of new products. We can see it in the strong new sales. So the business is in very good shape. Clearly, it's a very heavy subscription business. So things tend to change relatively slowly. But without getting into the numbers, clearly, the outlook statement is a more positive statement than we've had previously. That is an upgrade in our outlook. And your last question was about the Risk business and LLMs and things. I think the most important thing to remember about the Risk business is 90% of its revenue comes from machine-to-machine interactions. And this is a massive scale of the data sets we have and the data we collect from all the -- as we've outlined a couple of times already on this -- in this discussion, the thousands of sources, the public records, the contributory data coming back from customers with that network effect that they can all benefit from, what we do with the data, the algorithms that we apply to it and it's incredibly difficult to replicate. It's a heavily regulated area, what data you can collect, how you can -- how you're allowed to use that data is heavily regulated. And I think given it's almost all machine to machine, I think we see lots of opportunity to continue to use new data sources and using technology. But I think we will be the beneficiaries of that. Erik Engstrom: But I think it's important also to point out that Risk has been at the forefront of using AI technology now for close to 20 years. The core driver behind the entire growth rate and the growth improvement over the last 15 years in Risk has been the fact that we have all these unique comprehensive data sets that most people don't have access to any of those particularly the contributory data sets and some of the internal data sets that we generate in those markets. But the real enabler has been the fact that we have had a technology-agnostic philosophy for that entire time period and continuously look at new AI and machine learning tools and new algorithms for a very, very long time. And whenever anything comes out that can help us increase the value to our customers, we have tested them and embedded them. And that's why at this point, we are a 90% embedded machine-to-machine AI-enabled algorithm business. The new or evolving generative AI tools actually do not add significant value to those kind of mathematical calculations. I mean, just to give you an illustration, in one of our contributory database offerings, we process around 400 million transactions per day in a mathematical continuously improving model, right? So this is a completely different type of business that went through the AI enablement transformation starting about 20 years ago, it started and that's continuing to evolve, and it's already very, very far down this path. I mean I could remind you that it's exactly 20 years ago this year that because of how we approach big data, data science and algorithms, we picked up knowledge of what was going on over at -- no, over at Palantir, yes, exactly over at Palantir. And I went out to visit them personally about 20 years ago and talked about how our different technologies compare and how well we could do together and some of their tech people were at our conferences and so on. And we've evolved into a high-volume, algorithm-driven very low price per unit, but very high volume sort of transaction-based pricing installed inside industries, and they've evolved in a complete opposite direction, but we still leverage the same technology heritage and the same thinking and approach to big data, data clients and AI. So this is not a new thing, and it's not something that's likely to impact the trajectory of the Risk business in any way other than continue on the path we've been on to evaluate and look at and embed any new possible AI tools from any source that can increase the value to our customers of those algorithms we operate today. Operator: [Operator Instructions] We take the next question from the line of Henry Hayden from Rothschild & Company Redburn. Henry Hayden: I have 3 from my end. The first one on STM, how do you think about the corporate opportunity? So it's one you discussed in the past as a large addressable market with attractive structural growth profile. We were hoping for any incremental color you could give around end client preferences. And if there's a different approach that needs to be taken in going after that opportunity in terms of product functionality? And is there an appetite to grow corporate within the mix? And if so, what unlocks better exposure to that underlying growth? Secondly, within Legal, we're seeing this structural uplift in tech investment from law firms, which adds support to your growth, but also can drive some degree of experimentation for new solutions around legal research and workflows. At what point would you expect firms to kind of consolidate how many products they're taking? And how do you think about your positioning against that consolidation? And then finally, on Risk, you called out strong new sales and insurance again now. Is there a specific product or line item driving this? And are those competitive displacements? Or is there something else at play here? Erik Engstrom: Well, I can address first the STM market. The corporate market is, we believe, an important future growth opportunity for us. It is a relatively small segment of our revenue today. And we believe that it is more commercially oriented, and as these tools that we build become higher value, more usable with new tools on top of our content that we see an opportunity to continue to sell and package those in a way that is more appropriate for the corporate market. We believe that we're going to continue to see that growth rate there pick up as well over time as those tools are developed, integrated to add more value. But it's a relatively small segment today. It's likely to be gradual, even though on some of the tools we've rolled out today, we've actually slightly faster uptake on the sales cycle than we do in the academic markets as early signs. So we're positive, but it's small and it's still going to be gradual. On the Legal tech? Nicholas Luff: So Henry, on the legal tech. And look, I think law firms will continue to evaluate and look at new technology and look at new tools. The legal research market clearly is very consolidated already with, obviously, the two big players, of which we're one. But if you look at the wider technology provided to law firms, which is a big market, and all commentators think that's going to grow quite significantly. Individual law firms may choose different strategies, but I'm sure they'll continue to experiment. And we think we have a strong offering to move into some of that market and to continue to add value in that more consolidated legal research market where we play. And your third question was on insurance and new sales. That business is going well. It is -- we continue to innovate. We continue to have new sources of data, and we touched on it earlier when we're talking about data coming off vehicles, from vehicles, about vehicles. For example, new identity data being brought to bear. We are using new data sources in different lines of insurance. So for example, using electronic health records for -- in the life insurance market, using aerial imagery or video taken inside the home, analyzed by AI to inform property. And these are additive. These are additive to what's already there. This is not typically displacing anything. It's -- these are not either/or type products. It's something that functionality and analytics that wasn't available before. And as we innovate and make it available, then it comes into the marketplace and helps the insurance companies become more efficient, helps them price risk more accurately and they see value in them, and that's what's driving the take-up. Operator: As there are no further questions from the participants, I would like to turn the conference back over to Erik Engstrom, CEO, for any closing remarks. Erik Engstrom: Well, thank you so much for taking the time to join us this morning. I appreciate you listening to us and asking us questions. And I look forward to talking to you again soon.
Operator: Good morning. Welcome to Corby Spirit and Wine's Fiscal Year 2026 Q2 Financial Results Conference Call for the period ended December 31, 2026. Joining me on the call this morning are Florence Tresarrieu, President and Chief Executive Officer, and Juan Alonso, Vice President and Chief Financial Officer. Hopefully, you have had the opportunity to review the press release, which was issued yesterday. Before we begin, I would like to inform listeners that information provided on today's call may contain forward-looking statements, which can be subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Risks and uncertainties about the company's business are more fully discussed in Corby's materials, including annual and interim MD&A filed with the securities regulatory authorities in Canada as required. [Operator Instructions] I would now like to turn the conference over to Ms Tresarrieu. Please go ahead. Florence Tresarrieu: Thank you very much, and good morning, everyone. Thank you for joining us to review Corby's Spirits and Wine Q2 and first half results. I am very pleased to be here for my first earnings call as the CEO. For those of you who doesn't know me, I'm Florence Tresarrieu, and it's a privilege to lead Corby at this moment of its journey. I bring over 20 years of experience across markets, investor relations and operational strategy, and I was most recently Global Senior Vice President of Investor Relations, Treasury and Cash Performance at Pernod Ricard. Over the past months, I have spent time with our people being on the road, meeting our brands, our partners across the country. And what I've witnessed is an organization with very strong fundamentals, a clear strategy, very passionate people and a proven track record to execute and deliver with discipline and agility. And actually, today's H1 results are the perfect illustrations of what I've seen. This is indeed a very strong first half for Corby, a record-breaking start to the year. We delivered the highest first half revenue in Corby's history with reported revenue of up 12% and organic growth of 13%. Continued market share gains in spirits and the accelerating expansion of our RTD business have been at the forefront of our performance with RTD now representing roughly 1/3 of Corby's top line revenue and being as such, a core pillar of our strategy. These results reflect strong and consistent sales execution with significant share gains across our total portfolio in a volatile and highly competitive market. Performance was further supported by the removal of U.S-origin products on shelves and favorable LCBO order phasing extending into Q2. The breadth and depth of our portfolio continues to differentiate Corby. Despite the impact of the British Columbia strike, we delivered strong shipments and earnings growth in Q2 and across first half. And at a retail, we outperformed the spirits market in value for the 13th consecutive quarter. Earnings growth is slightly inside revenue growth, which is reflecting an RTD-skewed portfolio mix together with some less favorable spirits and channel mix effects. We are reporting a very strong cash generation, which is indeed the backbone of our long-term value creation and attractive capital returns. Our balance sheet is strong, and this is one of our key financial strengths. Our net debt to adjusted EBITDA ratio at 1.1x allows flexibility to invest behind our brands for future growth, reflecting the confidence of the continued dynamism of our business. The Board declared a quarterly dividend of $0.24 per share, an increase of $0.01 or a growth of 4% from the previous quarterly dividend. As of December 31, 2025, Corby delivered a 1-year total shareholder return, TSR of 25%, which is very much a testament to our strong performance and commitment to long-term sustainable value creation for our shareholders. As a nutshell, Corby has the right momentum and it's leveraging its key strategic levers to continue outperforming the market. So let me then briefly frame the market context and explain why Corby model continues to perform so well in an evolving and indeed volatile market. Corby achieved a clear acceleration in market share across all categories in Q2, building on strong and disciplined execution, being, for instance, illustrated by our ability to capture share following the removal of U.S.-origin products from shelves. In the rolling 3 month period ending December 31, while the Canadian spirits market declined 4.4%, Corby outperformed by 6.9 percentage points, delivering 2.5% value growth. Our Wine portfolio performed even more strongly, growing 11.9% against a declining -- slightly declining market of minus 0.7%. As mentioned before, RTD continued to be a standout. The category delivered 27.7% growth representing a 6.5 points out-performance versus the market, which is indeed reinforcing RTD as a strategic growth engine within our portfolio. I've mentioned that before, but it's quite important, RTD represents approximately 1/3 of our net sales and contributed this fiscal half for almost 3/4 of our net sales growth. Corby has consistently outperformed the Canadian market in value for 13 quarters in a row. In Spirits, while the category declined, we delivered a very resilient performance with R12 at 1.9%, representing a 6.2 points out-performance versus the market. Our Wine business also delivered strong growth, up 13.7% for the R12, which was 15.8 points ahead of the market. And again, we see the biggest gain in RTD, delivering 28.1% growth which is 16.5 points above the continuously growing category. Looking closer at spirits performance by category, you can see that we continue to outpace the market across several categories over the 12 months ending December 31, which is showcasing our competitive advantage and the effectiveness of our sales execution. Some highlights include our portfolio growth in the otherwise declining rum and vodka categories, benefiting from the shelf prominence amid restrictions on U.S-origin products in some provinces. We remain the category leader in Irish whiskey and have expanded our footprint in the tequila category with double-digit growth. Although our performance in the blended scotch category was impacted by production challenges, we remain optimistic in the opportunity to gain our fair share back in this category, along with the growing Canadian whiskey category, supported by our J.P. Wiser's NHL partnership. We have a uniquely diverse portfolio across price points for various customer occasions in Spirits, RTD and Wine, and we're leveraging all that with impact. Now let's dive up to discuss the growth strategy. RTD is one of Corby's most important growth engines. Over the last 12 months, our RTD business has accelerated meaningfully with sustained share gains driven by strong innovation and market expansion. Our unique RTD route-to-market strategy continues to deliver with increased penetration and share in both Ontario and Western Canada through focused RTD-dedicated sales execution. At the end of H1, Corby's RTD portfolio delivered 28% value growth over the last 12 months, significantly outpacing the category. Over the last 3 months, we gained share in every single region, reinforcing the natural strength of our RTD brands and the consistency of our execution. Our portfolio is well positioned for continued growth, supported by a robust innovation pipeline with exceptional new listing results in all major provinces set to launch in H2 FY '26. New brands are playing an increasingly important role, allowing us to move quickly into white spaces and capture emerging consumer occasion. In Ontario, for instance, we continue to capitalize on route-to-market modernization, leveraging the breadth and depth of our RTD portfolio to strengthen our presence in grocery and emerging channels where our brands are gaining visibility and relevance. We also continue to actively shape the portfolio to elevate growth through the fastest-growing categories. And as such, we've increased our ownership of ABG to 95%, while exiting non-core brands, SL Beer, SL RTD and Liberty Village Dry Cider, therefore, streamlining the business and sharpening ABG growth profile. I'm not going to walk through the page in detail, but you're already familiar with the Corby strategy. Our priorities remain very much unchanged, and they are gaining share in spirits, accelerating penetration in the fastest-growing category, continuing to grow value ahead of volume while investing efficiently behind the brands, including innovation and finally, actively managing our portfolio of brands. Pace of execution and breadth of opportunity we're seeing across RTD, spirits and channels are accelerating further our momentum. So with that, let me pass you over -- let me pass over to you, Juan. Juan Alonso: Thank you, Florence, and good morning, everyone. I'm Juan Alonso, Corby's Chief Financial Officer. I'm pleased to walk you through our financial results. Very quickly, before we talk about our financial performance, you're going to notice some mentions of adjusted metrics and organic revenue growth. We believe that these non-IFRS financial measures support a better understanding of our underlying business performance and trends. We provided the detailed explanations for each of those elements in our Q2 FY '26 MD&A, and I invite you to refer to this document for any questions related to it. So let me start with our Q2 results. Corby delivered $66.9 million in revenue, representing plus 9% reported growth and 10% organic growth year-over-year. As Florence said, this performance was supported by the strong momentum in our RTD business expansion and continued market share gains in Spirit. Adjusted earnings from operations reached $13.8 million, up plus 6% versus last year, reflecting strong revenue and diligent cost discipline, but partially offset by the RTD-skewed portfolio mix and channel mix effects on margin. Adjusted earnings per share came in at $0.32 and reported earnings per share at $0.31, reflecting solid growth of plus 8% and 12%, respectively. We also delivered $31.4 million in cash from operating activities in Q2, underscoring the strength of our earnings and working capital discipline. Lastly, in line with our Q2 declaration, the Board approved a quarterly dividend of $0.24 per share, an increase of $0.01 from our previous declaration in Q1. This reflects our confidence in Corby's outlook and our ongoing commitment to shareholder returns. Now let's go to the next slide and delve deeper into our Q2 revenue growth. To reiterate, Corby delivered a strong quarterly revenue of $66.9 million in Q2, representing a 9% increase over Q2 of FY '25. And this growth can be attributed to: first, domestic Case Goods, which accounted for 80% of Corby's Q2 net sales performance, reached $53.4 million, reflecting 11% reported growth and a 12% organic growth. This is highlighted by improved shelf prominence of Corby's Spirits, capitalizing on the removal of U.S-origin products in key provinces. ABG brands grew plus 19% with continued strong momentum on new channel expansion in Ontario and Western Canada. Total Commissions made up 12% of Q2 net sales and reached $7.8 million, a decline of 8%, lapping a strong Q2 last year, where our represented wines portfolio quickly gained traction early on, during the route-to-market modernization in Ontario and provided a strong fuel of shipment pipeline to grocery and convenience store channels. Lastly, export revenue, which contributed 7% to total net sales surged to $4.8 million, an increase of 25%, largely driven by strong shipment performance of J.P. Wiser's Whiskey and Pike Creek to Turkey. Now let's turn our attention to the H1 performance. Coming off a strong Q2 after a record quarterly performance in Q1 in earnings and profitability, H1 FY '26 marked another company record in top line generation. In H1, Corby generated $142.3 million in revenue, a plus 12% reported increase over H1 last year with plus 13% organic growth. This performance, that was achieved in a challenging retail environment set the highest H1 revenue in Corby's history, highlighting the strength of our diversified portfolio and our agility in responding to market shifts. I will further delve into the details in the next slide. Our top line growth was driven by the rapid expansion of our RTD business, now the fastest-growing category in the Canadian alcohol market. While this RTD mix and channel shifts put some pressure on margins, strong cost discipline helped offset those impacts. As a result, adjusted earnings from operations grew 6% year-over-year, though at a moderate pace than revenue. For the bottom line, our adjusted earnings per share was $0.71, with reported earnings per share at $0.67, representing a robust 11% growth in reported earnings and 8% in adjusted earnings. Our cash from operating activities totaled $37 million, a $1.5 million increase year-over-year. This was supported by earnings growth, disciplined management of costs and capital spend. We also strengthened our balance sheet, reducing our net debt to adjusted EBITDA ratio to 1.1x, down from 1.4x at the end of Q1 FY '26. This reflects our strong solvency and financial discipline. Total dividends declared for H1 FY '26 were $0.47 per share, up 4% from H1 last year, reinforcing our commitment to consistent and growing returns for our shareholders. Now let's delve deeper into our year-to-date revenue growth. To recap this record H1 top line performance, Corby delivered a strong growth of 12% year-over-year, totaling $142.3 million, and this growth can be attributed to, first, domestic Case Goods, which accounted for 81% of Corby's H1 net sales performance and reached $114.8 million, reflecting a plus 13% reported growth and 14% organic growth. This is highlighted by improved shelf prominence of Corby Spirits, capitalizing on the removal of U.S-origin products in key provinces. ABG brands grew plus 28% with continued strong momentum on new channel expansion in Ontario and Western Canada. Total Commission made up 11% of H1 net sales and reached $16 million, a slight decline of 1%, lapping a strong H1 last year when our represented wines portfolio quickly gained traction during route-to-market modernization in Ontario and provided a strong fuel of shipment pipeline to grocery and convenience store channels. In addition, H1 earnings growth in Canada benefited from cycling off the LCBO labor strike last year and emphasized by favorable LCBO ordering phasing this year, which is expected to normalize in H2. Lastly, export revenue, which contributed 7% to total net sales surged to $9.7 million, an increase of 38% largely driven by strong shipment performance of Wiser's Whiskey and Pike Creek to Turkey as well as recovery of shipments to the U.K. and U.S. markets. So to summarize our P&L results for H1, Corby recorded the highest H1 revenue in company history with a strong 12% revenue growth, bolstered by the strength of our portfolio, specifically the accelerated RTD portfolio, capturing new channel expansion in Ontario and the Spirits portfolio capturing market share gains in key provinces. Our total operating expenses also increased by 13% at a higher pace to support the continued growth and expansion of our RTD business in addition to strategic investments behind the key strategic brands such as the Wiser's NHL partnership. As a result, Corby delivered a solid H1 adjusted earnings from operations, marking 6% increase versus last year. On a per share basis, our adjusted net earnings was $0.71 and reported net earnings was $0.67, reflecting growth of 8% and 11%, respectively, versus last year. In H1, Corby generated $37 million of cash from operating activities, an increase of $1.5 million from last year, supported by higher net earnings as well as favorable working capital changes, primarily driven by the timing of spend. This strong cash flow allowed Corby to pay robust dividends, increase our stake in ABG to 95% and still reduce debt to $72 million, a $13 million improvement compared to FY '25 after loan repayments. As a result, our net debt to adjusted EBITDA ratio reduced to 1.1x, demonstrating a robust solvency position and reinforces our financial health. Corby has an attractive dividend payout ratio at 57% on a rolling 12-month basis, highlighting the sustainability of company's quarterly dividend. Notably, quarterly dividend payment increased by 4% in Q2 FY '26 compared to both Q1 FY '26 and Q2 FY '25. These actions have contributed to a high dividend yield over recent years at 6.5% at the end of H1, marking a consistent level of return for our shareholders. We are proud of our performance in H1 FY '26, and we remain focused on delivering long-term value for our stakeholders and shareholders. With a strong diversified portfolio, disciplined execution and a clear strategy, Corby is well positioned to continue driving growth and shareholder returns. Before I hand back to Florence, I want to give you a glimpse at what's ahead for Corby. After all you have heard today, you can see that Corby is well positioned to continue outperforming the market in FY '26, even as the environment remains dynamic. Our RTD portfolio remains a major growth engine, and we see significant potential to expand across Canada, led by strong traction from ABG. Our ambition is to continue gaining market share in spirits despite the challenge of a potentially slight market decline. We will remain agile and respond whenever U.S. products are permitted back on shelves. In Ontario, we will continue to capitalize on route-to-market modernization, meeting evolving consumer preferences with agility and breadth. From a financial perspective, we remain focused on protecting margins, driving profitable growth and generating long-term shareholder value. And finally, looking ahead to H2, while we are expecting some normalization in growth after a strong H1, Corby is still expected to deliver a strong full year revenue growth, supported by the continued strength in our Canadian portfolio and continued expansion of our RTD business. Now back to Florence for some closing remarks. Florence Tresarrieu: Thank you very much, Juan. So as we close our earnings call, I just want to reiterate the key strengths of Corby equity story, which makes it indeed a very strong investment. Starting with the fact that Corby is Canada's largest publicly listed multi-beverage alcohol company with the most diverse portfolio in the market. On top of that, our close partnership with Pernod Ricard gives us strategic advantages and access to global best practices. We have indeed a clear strategy, a very strong execution and a proven track record of outpacing this market in value growth. Our innovation pipeline, marketing strength and dynamic portfolio is driving performance and operational excellence. And finally, as you've seen, we have consistent financials with dynamic revenue, strong cash flow and a strong balance sheet that supports attractive shareholder returns. The results we've shared this morning demonstrate a business that is executing with discipline and agility, gaining share in the categories that matter most and building a strong foundation for sustainable long-term value creation for all stakeholders. Thank you once again for joining us today and for your continued interest in Corby. I very much look forward to continuing our engagement as I take on this role. For now, Juan and I are happy to take any questions. Operator: [Operator Instructions] And there are no questions at this time. I will turn the call back over to Florence for closing remarks. Florence Tresarrieu: So I think there is actually a question in that we've seen on the console. So maybe I'm going to read out and then we're going to share the answer with Juan, right? So the question is, can you provide more details on the performance of our RTD portfolio, sorry, for instance, with regards to a change in the route-to-market model in Ontario. Have you adjusted your marketing sales and organization to address the different sales channel? And second, are you deriving benefits from the customer boycott of U.S. products in this category? Or is there any other reason for your out-performance in RTD? And finally, can you detail the relative contribution percentage of RTDs to our net sales? I guess -- so if you don't mind, we're going to share. So maybe I'm going to take some questions and then Juan will answer the other ones. I think maybe the reason why we are gaining so much shares in RTD and then the reason behind our out-performance, maybe I will summarize them in three. I think the first one is the mindset. So we have a very strong team with the right mindset for the RTD products. Innovation is very central to everything that they're doing. So innovation is very strong for spirits. I think it's even stronger for RTD with a different pace. And I think the ability that they have to adjust innovations to consumer trends and market trends is second to none. So this is definitely something which is an explanation behind the out-performance. And then the last one, which is key as well is the route-to-market. So they have a dedicated route-to-market to service the RTD across the country. And again, this is definitely one of the key strengths behind our performance. Juan Alonso: Yes. Thank you, Florence. I would add as well that we did strengthen this team as well for -- to grab the opportunity to different channels, grocery and convenience. We reinforced the team in the beginning of the fiscal year. And finally, regarding the question of the relative contribution of RTD to our net sales. RTD represented around 72% of our total net sales growth. So almost 3/4 of our net sales growth came from RTD. And today, RTD has a total weight of around 1/3 of Corby's revenue as we initially announced at the moment of the acquisition of ABG. And mainly on the boycott of U.S. product in this category, is there any other reason for your out-performance? So the boycott of U.S. product is definitely supporting a lot of the market share gains in spirit. There is no relation to RTD. RTD is really the opportunity to perform better than our competition, accelerate, taking advantage of the modernization of routes-to-market, expand to other provinces in Canada beyond Ontario, and that explains our great performance on RTD. Florence Tresarrieu: Maybe I take this opportunity maybe to reiterate something that we've tried to develop in the presentation is the fact that Corby is quite unique in being a multi-beverage company and have a multi-beverage portfolio. So I think the performance across spirits, wines and RTD is outstanding. So RTD is definitely standing out as well. But I guess having the balance is key to our organization, and it's very much at the forefront and at the core of our results today, right. So again, if I want to leave you with one message is, I guess, the fact that we have a very strong portfolio, and we are a multi-beverage company in an evolving and in a volatile market. So that's very key to what we are and very key to our equity story. Operator: [Operator Instructions] And there are no questions over the phone at this time. I will turn the call back over to Florence. Florence Tresarrieu: Thank you very much. Thank you all for connecting. Again, I was saying I'm very much looking forward to connecting and meeting many of you, as we continue to get to know each other and then discuss with you the great sense of the company's equity history. So I wish you a very good day. I wish you as well to enjoy our products in a responsible way, of course. And I'm hoping to see you all very soon. Thank you. Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.
Operator: Good morning. Welcome to the Sigma Foods Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. A replay will be available on Sigma Foods Investor Relations website following the conclusion of today's event. I will now turn the call over to Hernan Lozano, Sigma's IRO. Hernan Lozano: Thank you, operator, and good morning to everyone joining us today. Before we begin, please note that today's discussion will include forward-looking statements. These statements are based on currently available information, expectations and assumptions, which are subject to risks and uncertainties. Actual results may differ materially. Sigma Foods undertakes no obligation to update forward-looking statements. It is my pleasure to participate in today's call together with Rodrigo Fernández, Sigma's CEO; and Roberto Olivares, Sigma's CFO. Our agenda today is straightforward. Rodrigo will provide a strategic and operational overview. Roberto will then take you through the financial results and 2026 guidance. We will conclude with a Q&A session. With that, I will turn the call over to Rodrigo. Rodrigo Fernández Martínez: Thank you, Hernan, and good morning to everyone. I'm pleased to join you today for my first earnings call. I also look forward connecting with many of you in person through a range of forums as we step up the investor engagement agenda initiated last year. I want to begin by acknowledging the exceptional work of our more than 47,000 members worldwide. Their execution, resilience and commitment enabled a strong finish to 2025 across regions and categories. Let me highlight a few consolidated performance points. First, our revenue surpassed $9 billion for the first time, reaching $9.3 billion in 2025. Second, we delivered on our EBITDA guidance of $1 billion, making 2025 the second consecutive $1 billion year. And third, our balance sheet remains strong, supported by robust investment-grade credit ratings. A key advantage continues to be Sigma's diversified business model across regions, channels, brands and categories, which helped us navigate dynamic market conditions. Looking at performance by region. Mexico delivered outstanding results driven by commercial effectiveness and robust execution. Retail channels remained the primary growth engine, consistent with trends throughout the year. Dairy-led category performance and value brands gained momentum across income segments. In Europe, our team executed exceptionally well as we navigated temporary capacity constraints stemming from the Torrente flooding, particularly early in the year. We protected market presence and customer service levels by relocating production across our network and trusted partners. Importantly, underlying profitability in Europe continues a clear upward trajectory. Comparable EBITDA surpassed $100 million for the first time since 2021. We also advanced our strategic European agenda by restructuring the Fresh Meat business in Spain. We signed an agreement that further sharpens our focus on branded products and improves pork supply traceability. In the U.S., the year was marked by continued penetration of Hispanic brands in mainstream channels, driven primarily by raising performance in key national accounts. Market dynamics remained fluid as consumers adjusted shopping patterns across channels. In Latin America, profitability continues to recover gradually with sequential EBITDA improvements driven by operational normalization effects. While cost pressures persisted in some countries, we're encouraged by continued operational discipline. Shifting gears to our strategic priorities. Our purpose, delicious for better life sets the direction and our strategy turns into action, grounded in 4 core priorities. First, grow and defend the core. We will continue doing what Sigma does exceptionally well on a large scale, serving consumers with trusted brands, strong execution and a multichannel commerce presence. Second, developing new sources of revenue. This includes core adjacent innovations and disruptive opportunities to the growth business unit, which is already demonstrating strong scaling potential in initiatives such as high-protein snacking and direct-to-consumer concepts. Third, strengthening the organization. This pillar is about building the culture and capabilities that help each team member perform at their best. It also includes investing in systems, modernization, marketing and consumer-centric innovation platforms like the studio. And fourth, exploring the future. We're looking ahead to longer-term opportunities in food science, responsible protein and consumer well-being priorities that will shape Sigma's next era of growth. Looking ahead into 2026, we expect to grow co-branded volume supported by an improving raw material environment and solid execution. We also strive to expand margin driven primarily by stabilization in protein markets and continued profitability improvement in Europe and we will deploy CapEx high-return projects, capacity expansion in the Americas and capacity recovery in Spain. In sum, we anticipate another year of solid performance. In this context, I'm pleased to inform you that the Board of Directors approved our plan to propose at our Annual Shareholders Meeting, 2026 cash dividends totaling $150 million payable into installments. Dividends will continue to be a key component of our capital allocation strategy. With that, I will turn the call over to Roberto. Roberto Rolando Olivares Lopez: Thank you, Rodrigo, and good morning, everyone. I will walk through Sigma's financial performance and 2026 guidance. In the fourth quarter of 2025, Sigma Foods revenues were $2.5 billion, up 12% year-on-year and 2% sequentially. This was driven by favorable FX translation, selective price actions and a stable volume. In Mexico, revenues increased 21% in U.S. dollars and 10% in Mexican pesos, supported by selective pricing and a solid performance led by our dairy category. European revenues were up 11% in U.S. dollars and 2% in euros. A healthy top line figure reflected branded volume growth and successful allocation of production from the plant that was flooded in 4Q '24. Revenues in the United States and Latin America increased 1% and 2% year-on-year, respectively. For the full year, revenues reached $9.3 billion, up 4% year-on-year. Importantly, 2025 volume held steady at a record high level despite pricing actions taken to mitigate higher raw material costs. For the fourth quarter, EBITDA was $278 million and comparable EBITDA was $284 million, up 34% year-on-year, driven primarily by Mexico and Europe. For the full year, comparable EBITDA was $1 billion, in line with guidance and the second highest in Sigma's history. Moving on to key cash flow items for the year. Net working capital posted $64 million recovery in 4Q '25, driven by seasonality. For the full year, we invested $208 million, primarily due to higher raw material prices. CapEx was $159 million in 4Q '25 and $362 million for the full year, up 47% from 2024. This reflects capacity expansions in Mexico and the United States, replacement capacity in Europe and modernization of systems and infrastructure. Sigma Foods paid $35 million in dividends during 4Q '25 for a full year total of $119 million, aligned with Sigma's strong cash generating capacity. Sigma Foods ended the year with a solid financial position. Net debt was $2.7 billion, up 9% year-on-year, reflecting investments in net working capital and CapEx. Net debt-to-EBITDA was 2.5x, in line with our long-term target. We closed the quarter with $643 million in cash. Total liquidity, including committed credit lines was approximately $1.5 billion. We are currently exploring opportunities in the Mexican bond market to refinance 2027 maturities and further strengthen our debt profile. This financial strength allows us to continue investing with confidence. Let me now walk you through our 2026 guidance. FX conditions have been favorable in recent months. For planning purposes, we consider 2 FX scenarios: a currency-neutral base case using the 2025 average exchange rate of MXN 19.2 per U.S. dollar and an alternative currency-specific scenario using MXN 18 per dollar. These assumptions are intended to illustrate a reasonably range. We expect protein markets, particularly turkey to gradually trend downward from current elevated levels. As reference, year-to-date prices of turkey breast have decreased 12% and turkey thigh is flat. Volume is estimated to grow approximately 2% with improving trends across regions. Revenues are expected to rise by 4%, supported by mix improvements and balanced pricing actions designed to grow volume as raw material pressures ease. We expect EBITDA to increase 5% year-on-year, driven by all regions. In particular, Europe is expected to deliver double-digit growth in 2026. CapEx is estimated to increase approximately 27%, totaling $460 million. The year-on-year increase is mainly explained by the planned investment for Torrente capacity replacement in Spain, covered primarily by insurance reimbursements received in 2025. With that, I will now turn the call back to Hernan for Q&A. Hernan? Hernan Lozano: Thank you, Roberto. We will open the line for questions. Please limit yourself to one question and one follow-up, so we can address as many participants as possible. Operator, please? Roberto Rolando Olivares Lopez: [Operator Instructions] Our first question comes from Rodolfo Ramos of Bradesco. Rodolfo Ramos: Congratulations on the very strong results. My question is related to your 2026 guidance. And I'm hoping you can help me here square the circle on your guidance, which seems maybe a bit conservative. I understand the sensitivity to the FX, and it's great that you included these scenarios for different currency levels. But just given how well volumes at top line behaved, particularly in Mexico and how some raw materials seem to be improving, I'm trying to gauge how conservative you are. Is it something that -- is it something to do with how you see volumes performing or the raw materials in '26? I don't know if you're also expecting anything incremental from the -- associated with the World Cup. So just trying to get us a better sense of what we've seen maybe this year and trying to get a little granularity on your guidance. Roberto Rolando Olivares Lopez: Rodolfo. This is Roberto. Thank you for your question. Yes. So maybe I think it will be good to talk a little bit about the assumptions, the main assumptions in the different regions. In general, we see volume growing in all regions. In the case of Mexico, the retail is expected to grow low single digits. And we see better dynamics that we have -- as we saw in the last quarter of the year in the dairy segment, particularly in the yogurt and cheese. We see a recovery in the foodservice channel in Mexico coming from more clients, but also penetrating those actual clients and some additional growth coming from the World Cup, particularly in the cities where there were going to be some matches. Our main focus in the case of Mexico, particularly in foodservice coming from a year 2025, where we have a lot of inflation coming from raw materials is to focus on volume. So in the case and to your point that there's going to be less pressure coming from raw materials, maybe is to focus and to balance volume in the long run. In the case of Europe, we are seeing some volume growth coming mainly from branded core segments and better mix, particularly in Spain as we focus on initiatives to foster higher-margin portfolio. We also see better raw materials, particularly right now in Spain due to that at least in the short term, there's some export restrictions in Spain due to the ASF, the African swine fever that's where -- that is happening right now in Spain. In the case of the U.S., we expect a volume growth coming mainly from Hispanic brands as we continue penetrating the mainstream channels, and we look for more clients. We do expect a slight margin increase as well in the U.S. coming also from better mix, particularly getting into the underpenetrated categories. We -- as you know, we are the #1 hot dog in the U.S., but there's still some room to go in terms of ham and poultry and other categories. And lastly, Latin America in terms of volume is where we see more growth for next year. We're seeing mid-single-digit volume growth in Latin America, particularly coming from a soft year in 2025, where we have some supply chain disruptions, and we do expect to capitalize on those corrections during 2026. Rodrigo Fernández Martínez: And Rodolfo to complement, when you think about the raw materials, you might see, for example, turkey getting a little better in the short term. But at the same time, you see things like the winter storm that happened in the U.S. recently and the production of turkey for the last week was even smaller. So with raw materials, you always have to be thinking what could happen and be prepared for that. And I would say that even though -- even if the raw materials go down, we have to see or the way we see things, it's from 2 perspectives. One, it's in the short term and in the long term, and we need -- and we think and we need to deliver on both. So when there is a big cost increase, we definitely think about marginal contribution per unit, and we want to maintain that, and we usually increase prices to make sure that happens. But for example, last year, we increased prices to offset a cost of more than $400 million. And we also have to think of the consumer in the long term. And with that in mind, like Roberto said, we also want to think about volume to make sure that we deliver in the short and the medium and the long term. Operator: Our next question comes from Renata Cabral of Citi. Renata Fonseca Cabral Sturani: My question is regarding the U.S. We are receiving several questions related to potential impact on GLP-1 on the portfolio of the company. Actually, as the company is exposed to protein, my expectation is actually that could help in the U.S. So my question is if the company is already seeing that or it's a trend that should increase in the future in terms of innovation. The company is focusing on that because of the trends naturally much more broadly in the U.S., I imagine and then in the other countries. Rodrigo Fernández Martínez: Thank you, Renata, for the question. Let me answer it from 2 timelines in the short term and in the long term. In the short term, definitely, GLP users come from fat and muscle and then the protein intake is going to play an important part of muscle preservation efforts. So we're well positioned to benefit of such trends of a high protein portfolio that we have within the company. And -- but in the long term, I talked at the beginning about 4 pillars for our strategy. And the last pillar, it's about exploring the future. And one of the things that we're looking in the future, too, it's responsible protein. And there are 3 things that we're looking for, for the long term. We want to make sure that we have platforms that taste amazingly because that's very important, delicious for a better life, it has to be delicious. Two is we want them to be a high-quality protein. So at the end, there are 9 amino acids that only come through food, and we want to make sure that our proteins have those 9 amino acids that the body needs to come from food. And third, we want to make sure that those products can be better for the environment. And I'm talking about CO2 emissions. I'm talking about water consumption. So at the end, we do see a trend in the short term, but we're also preparing the company for the long term thinking that this is going to be important going forward. Renata Fonseca Cabral Sturani: The second question, it's about Europe. If you can help us elaborate a little bit about the trends this year, especially because we will have a different base because of the transaction that the company announced in the end of last year. So what are the expectations in terms of especially EBITDA improvement, but any additional color on that would be helpful. Roberto Rolando Olivares Lopez: Renata, this is Roberto. Thank you. So in general, in Europe, let me talk briefly about trends that we're seeing. We -- last year, we saw branded volume growing across the different segments. We also saw a better dynamics in the pork market during the year, but mainly at the end of the year, as I explained, due to excess supply of pork in Spain given the export restrictions that Spain is passing right now due to the ASF. We announced the divestment of our slaughterhouse business by the end of last year, and we're in the process of getting all the authorization from the authority. We are planned to get those during the 1st Q of 2026. If that happens or when that happened, we're going to have a better alignment in terms of the focus on the core segments on branded products, particularly and also having more traceability or securing the traceability of our pork in Europe. Rodrigo Fernández Martínez: And if I can just complement very briefly on that -- this year, we had growth, as Roberto mentioned, on branded products, and we have very nice also control of SG&A. So at the end, we're in a position that now we can think about growth. We can think about how can we do better, grow more. We have been thinking about some innovations in different geographies, very focused. And what we like a lot about Europe, about trends in Europe is that it's a way to see into the future in some of the other geographies, what happens in Europe later on and happening in the U.S. and later on in Mexico and Latin America. So we're very happy and eager to have -- to find those innovations and make sure that they start in Europe and then they can continue in the rest of the company. Operator: Our next question comes from [ Enrique Moreo ] of Morgan Stanley. Unknown Analyst: I would just like to do a quick follow-up in the U.S. If you could just explore a bit how the channel outside the big retailers is performing and how you're seeing the market share trends in the whole portfolio or in the whole channel mix that you have would be very helpful. I ask that because we see a little bit of a mismatch in the consumer scanner data that we have on bigger retailers. So just to see a broader picture of what you're seeing in the U.S. and how you see your strategy on that market going forward as well? Roberto Rolando Olivares Lopez: This is Roberto. Let me first put some context. 2025 for the U.S. was the second highest EBITDA in U.S. history. And also the fourth quarter was a record fourth quarter for the U.S. In the U.S., we have, as you mentioned, 2 different businesses. We have what we call the national brand business, which is mainly our brand Bar-S and the Hispanic brands business. In the case of the Hispanic brands, we have been -- we used to sell mostly to independent or specialty retailers focused on Hispanic population. And we used to grow a lot in that segment. Last year, as let me say, migration policy change in the U.S., those segments started to have softer numbers. But we increased a lot last year, our presence in the mainstream channel with the Hispanic brands portfolio. And we reached the big retailers with our Hispanic portfolio, and that helped us a lot offsetting the lower consumption numbers in the independent retailers. In the case of our national brand business, our Bar-S brand, -- we -- I mean, last year, we have tough competition coming mainly from private label, but we're focusing right now on revitalizing the category through innovation. Rodrigo Fernández Martínez: Let me, Enrique, just go a little further on the last comment from Roberto. We're the largest in hot dog in the U.S., and we plan to maintain that. And what we want to make sure is that we have the best product cost in the market -- best quality product versus cost in the market. We want to be the ones that consumers think about and not necessarily on product level. And we're doing things to get that. So for example, in sausages, we're just launching a new package. And usually, you have 6 links in 1 package. But when you eat them, you don't need 6 of them. You might need 1 or 2. So we have the IEP for this package where you can have 3 separate pieces tied together in the same package. So you can open a third and just eat those 2 links and then open another third and so on. So at the end with that, we want to make sure that the cost benefit we're the best one. And with that, we hope to be growing and taking some share from private label in the coming time. Operator: Our next question comes from Andrés Ortiz of BTG Pactual. Andrés Ortiz: I would like to ask you about the tax rate we saw this quarter. I believe it was close to 45% and we are already past the Alpek spin-off. So I just want to understand what happened here? And what will be the correct assumption for 2026 for tax rate? Roberto Rolando Olivares Lopez: Andrés, this is Roberto. So the main difference in the tax rate in the quarter has to do with the FX gains or losses due to the fluctuation of the MXN in regard to 2026, particularly in terms of cash flow tax, we do expect to have a similar amount of tax payment during 2026 that we have on 2025. Andrés Ortiz: So it's -- so if we continue to see like this level of appreciation, we will continue to see that or... Roberto Rolando Olivares Lopez: If we continue to see what, I'm sorry? Andrés Ortiz: This level of appreciation of the MXN, we will continue to see this like large. Roberto Rolando Olivares Lopez: So yes. So if the Mexican peso maintains in this level, there should not be many difference. If it continues to appreciate, there could potentially be an effect on that. Andrés Ortiz: And if I could do a second question. Could you remind us like the effect that an appreciation of the Mexican peso has on the margins in Mexico and how it benefits or affects consolidated EBITDA? Roberto Rolando Olivares Lopez: Sure. So in terms of -- so we have 2 effects. The first one is the conversion effect. In terms of conversion, MXN 1 change versus the U.S. dollar impacts around $30 million to $35 million in conversion. Operator: Our next question comes from Juan José Guzmán of Scotiabank. Juan José Guzmán Calderón: Congrats on the results. A quick one on Latin America. It was probably the only division that didn't perform as well as the others this quarter. So can you tell us a little more about what's going on there, both from the production standpoint and price pass-through angles? Roberto Rolando Olivares Lopez: This is Roberto. Yes, in terms of Latin America, last year, we have some impacts, particularly in some countries of Latin America regarding supply chain disruptions coming from problems in raw materials and demand planning. We -- as we move through the year, we solve those problems, and we actually saw a sequential improvement in EBITDA through -- coming from the second quarter. We do expect those problems to be to -- I mean, those problems ended last year. We expect a significant better result in 2026 coming from Latin America. If you see, as I explained in my initial remarks, in guidance, we do expect higher volume in Latin America, mid-single digits, coming from solving those problems. Juan José Guzmán Calderón: And if I can ask a follow-up question regarding your guidance. Can you tell us what kind of specific assumptions or expectations you're dealing with when it comes to input costs specifically in your guidance? At first glance, it seems to us that you are not incorporating much in input cost reductions. For example, turkey coming down or you're kind of expecting a lower contraction in the cost of turkey. What are you dealing with specifically for your guidance? Roberto Rolando Olivares Lopez: Thank you, Guzmán, yes. So we do are expecting or we consider in our guidance that prices of raw materials, particularly turkey, gradually trend down in 2026. However, we have seen that those prices started to decrease, particularly turkey a little bit sooner than we expected. But we are -- as Rodrigo mentioned, we right now are focused on volume this year. So we will take into consideration what is happening with the FX and what is happening in raw materials in that formula in order to grow volume this year. Rodrigo Fernández Martínez: And then we have people doing revenue management. And as I mentioned at the beginning, we want to do both. We want to make sure that we can deliver on the short term and we can deliver in the long term. And the cost increase that we were able to pass last year was significant. And we will look at every single product in detail per month just to make sure that we can both maintain or grow margins a little, but at the same time, we can get some volume increases that with that, we can do more sustainable growth for the company for the medium and long term. Operator: Our next question comes from Fernando Olvera of Bank of America. Fernando Olvera Espinosa de los Monteros: I have 2 questions. The first one is related to Europe. I believe, Roberto, you mentioned before that you are expecting volume growth in Europe. Does that -- I just want to be sure if that includes the agreement with Grupo Vall. Roberto Rolando Olivares Lopez: Fernando, so in case of volume growth, it's coming mainly from our core segments in our branded categories. The agreement with Grupo Vall will make that we will divest or not consolidate our Fresh Meat business. If that happens, we are going to divest a part of portfolio that will improve margin in terms of EBITDA margin. But that means that volume -- I mean, we're going to reduce that amount of volume, but we should produce that amount of the base as well. Rodrigo Fernández Martínez: Exactly. So Fernando, we're not -- the restructure is not included in our guidance. Fernando Olvera Espinosa de los Monteros: And my other question is regarding your gross margin. I mean, considering that you're still facing cost pressure, I mean what was the driver behind the gross margin expansion this quarter? Roberto Rolando Olivares Lopez: Sure. So I mean, it comes mainly from pricing actions that we have done through the year. As Rodrigo mentioned in one of the answers, we -- this year, we confront close to $400 million of additional cost in the operation. So we have to increase prices in some regions significantly to offset that effect. As we move through the quarters, we have the reflection of those price increases. So that's the main focus or our increase in gross margin. Operator: There being no further questions, I would like to return the call to management. Hernan Lozano: Thank you, operator. And it seems that we have a couple of questions from our chat. So this question is coming from Froylán Méndez at JPMorgan. Thank you for your question, Froy. And the question is, how should we think about capital return to shareholders under the simplified structure? Can we expect a higher payout in the short term? What needs to happen? Sure. Roberto Rolando Olivares Lopez: Thank you, Froylán. This is Roberto. In terms of dividends, Sigma Foods will continue to our long track record of cash distribution to shareholders, supported by our strong underlying cash flow generation. As you know, we announced yesterday in the report that we're proposing to the shareholders meeting to distribute a total of $150 million of dividends this year to be paid into installments. So as we mentioned, this is important for us. We -- our dividends are aligned to maintain our long-term target of 2.5x net debt-to-EBITDA ratio. Hernan Lozano: So that was the first question from Froylán. And the second question is cost at the holding level. How should we think about this cost component going forward? Rodrigo Fernández Martínez: So thanks for the question. So Sigma Foods, it's a company that -- it's about food. So what we have today, it's more than 99% of what we have today is food. We think about food, we talk about food, and that's all we do. The structure that we have today is to manage the food business. So you shouldn't see a difference between Sigma Foods and Sigma that you used to see. If you think about years in the past, that was different, that was a difference, and it was about transformation. But the structure that we have today, we're just converged totally there. And you can think today Sigma Foods as a food company overall. Hernan Lozano: Thank you. So that concludes our Q&A section. I would pass the microphone back to you, Rodrigo, for closing remarks. Rodrigo Fernández Martínez: Thank you. I want to close by reinforcing a few key points. First, Sigma business is strong and resilient, powered by a diversified platform and team that consistently delivers under dynamic conditions. Second, our long-term strategy is clear. We're focused on defending the core, developing new sources of revenue, strengthening our organization and exploring the future of food. And third, we remain committed to profitable growth, operational excellence and continuous innovation. Finally, I want to thank our investors and partners for their continued support. We look forward to updating you on our progress next quarter, and thank you for your interest in Sigma Foods. Operator: This concludes today's conference call. You may disconnect.
Operator: Good morning, and welcome to the lastminute.com Q4 and Preliminary Unaudited Full Year 2025 Financial Results Conference Call. Today's call will be hosted by Julia Weinhart, Head of Investor Relations, and joined by Alessandro Petazzi, Chief Executive Officer; and Diego Fiorentini, Chief Financial Officer. [Operator Instructions] Please note that this call is being recorded. At this time, I'd like to turn the call over to Julia, Head of Investor Relations. Please go ahead. Julia Weinhart: Thank you, Valentina. Good morning, everyone, and thank you for joining us for our Investor Relations call this morning. We value your continued support and are pleased to present our latest developments. After the presentation, we will be happy to address your questions. With that, I hand over to Alessandro now. Alessandro Petazzi: Thank you. Thank you, Julia. Thank you, everyone. Good morning. Thanks for joining us. We have a lot of positive ground to cover today. We're commenting today the final quarter, but also the preliminary unaudited full year results. And I think you've come to know me throughout this year as we complete my first year as CEO of the company. And you probably know that I normally do not like to be blowing my own trumpet, but it is a real pleasure indeed to be presenting such a strong set of results, I would say, quite exceptional, to be honest. If you follow our industry closely, you know that the period from October to December is the lowest from a seasonality point of view. But in terms of year-over-year comparison, actually, Q4 was the strongest period of the year for us. But in general, if we take a look at the whole 2025, we really -- we outperformed the market. We grew our market share in core markets, in the expansion markets in which we started investing this year, we hit and then exceeded the expectations we had and the guidance we already raised in Q3, by the way. So achieving double-digit growth in both revenues and adjusted EBITDA. So as I said, at the very beginning of this journey, I think we're the kind of company that can grow top line, bottom line and cash generation, and that's exactly what happened in 2025 with the holiday packages continuing to be our primary engine and the strategic focus of the company. I would say that we really had a step change also in capital discipline. There's been criticism by some investors in the past about the fact that this company was generating a lot of volumes, but maybe not so much in terms of cash generation. And I think that we can say confidently that this has also changed this year with cash flow doubling compared to 2024. And it's not a one-off thing. It's there to stay. So this is definitely something on which we think the next year will allow us to grow even more. Again, it's not just because the market has favored us. It's something that came from decisions we took over the year, sometimes not easy decisions, but really aim to put the company in a stronger position to be focused on what really matters, what moved the needles. We reorganized the internal structure to allow us to work more efficiently. We made clear calls on where to focus and where not to. We set clear priorities, define what we wanted to do and laid out a 3-year outlook to guide us there starting with already strong execution in 2025, which is the foundation of the next phase of the growth of this company. So 2025 has a clear direction and the focus now is carrying on that energy into 2026. I think it's a very good momentum to enter '26 on such a strong tailwind, and we plan to continue that. So if we look at the numbers a bit more closely, you can see this slide, the financial performance for both the quarter and the full year. And you will notice that the quarter has been growing even more than the full year. So 23% growth on revenues. Adjusted EBITDA, very positive at almost EUR 9 million and adjusted EBITDA minus CapEx, which actually was positive, again, as a proxy of the cash generation even in the fourth quarter, which normally because of the working capital dynamic of our industry has been a quarter in which traditionally we've been having negative free cash flow and negative EBITDA minus CapEx, but not this year. And for the whole year, I think the picture then is pretty similar, 15% growth in revenues, more than proportional growth in adjusted EBITDA. We'll see exactly why and how over the next few pages with our CFO, Diego. And again, let me insist on adjusted EBITDA minus CapEx as kind of a proxy of cash flow, even if we will then take a look at the cash flow in detail later on, but we can say that this number already doubled compared to last year. So again, it shows the strong operating leverage that we currently have in the business. And I would say that the business as a whole is now operating at a new level of financial strength and cash conversion. 2025 was the first year like that. 2026 will be the second one, and we can say that we will confidently move forward in that direction in the future. And with that, I hand it over to our CFO, Diego Fiorentini, to take a closer look at the numbers. Diego Fiorentini: Thank you, Alessandro, and good morning, everyone. As you know, Q4 is seasonally the least relevant quarter for our sector. Despite that, we delivered a very strong close of the year. When we last spoke, we highlighted a clear acceleration in Q3, and I'm now pleased to say that this momentum further improved in Q4. Overall, Q4 revenues reached EUR 77 million, up 23% year-on-year. This brought full year revenues to EUR 361 million, up 15% and clearly above our guidance. Importantly, all 3 core segments delivered a Q4 year-on-year growth above their respective full year growth rate, confirming the strength on the underlying trend. Looking at each segment, Packages, our core product, grew 16% in Q4 and 11% for the full year, demonstrating resilience and solid execution. Flights delivered an outstanding performance, up 48% in Q4 and 31% for the full year with strong acceleration in growth and continued market share gains. Hotels remain solid and consistent, growing 22% in Q4 and 21% for the full year. Finally, as a reminder, the other segment includes the cruise business, which was discontinued in early October. As a result, Q4 reflects the absence of that revenue stream. The strong top line performance translated into solid profit growth. In Q4, gross profit increased 17% year-on-year, while it grew 10% for the year. As already anticipated, gross profit growth was below revenue growth, both in the quarter four and for the full year. This reflects higher investment mainly in performance marketing aimed at supporting acceleration and expanding market share. Let me be clear on this. We increased investment where we saw measurable and accretive returns. Our performance marketing model remains highly data-driven with strict return on investment thresholds and continuous optimization. Looking at the segment breakdown, Packages remained our largest contributor, delivering EUR 20 million in gross profit in Q4, up 14% versus the same quarter last year. Flights continue to let the term -- in terms of growth rate with gross profit up 31% year-on-year, confirming strong operating leverage and scalability in the segment. Hotels remained broadly stable year-on-year with higher marketing investment made in the quarter. Finally, while the other segment showed a year-over-year decline at the revenues level, the dynamic reverses completely at the gross profit level. With the discontinuation of the Cruise business in early October, the segment now reflects a leaner perimeter and delivered a positive gross profit growth in the quarter. On Slide 8, you can see in more detail the composition of our cost structure between variable and fixed costs. Variable costs included a [ 36% fixed ] increase in marketing spend, supporting gross travel value growth momentum and made possible by our stronger financial position. On the other hand, fixed costs were up just 6% in the quarter, mainly reflecting higher variable compensation as we achieved and exceeded our targets. Excluding this performance related component, fixed costs would have been down 13% year-on-year, reflecting the full impact of the cost measures we previously implemented. Looking at the full year, the picture is consistent with fixed costs were broadly unchanged in absolute terms compared to 2024 despite double-digit revenue growth. Taken together, higher revenues and disciplined cost control drove a 4% point reduction in the fixed cost ratio, highlighting clear operating leverage and improved structural efficiency. This slide takes a closer look at the profit and loss, giving you a bit more detail on what we just covered. In Q4, adjusted EBITDA reached EUR 8.8 million, up 62% year-on-year. This strong increase reflects our operating leverage, which amplified profitability even if we continue to invest in marketing and sales. Net result benefit from lower financial costs compared to last year as well as a positive contribution from taxes following the remeasurement of the deferred tax asset. Closing at EUR 1.9 million, earnings per share came at EUR 0.18 compared to a small loss in the same period of last year. Looking at the full year, as we already discussed, revenue grew 15%, while adjusted EBITDA increased 33%, with both metrics comfortably exceeding our guidance. Net result came at EUR 11.6 million, slightly below last year, reflecting the one-off costs related to the cost reduction measures we implemented. That said, the story on operating cash generation is very positive. Adjusted EBITDA minus CapEx, a useful proxy for cash flow, doubled over the year, increasing from EUR 16.2 million to EUR 32.4 million. During our third quarter call, we got some questions on cash generation. So we decided to give a bit more detail to really explain what's driving the numbers. Free cash flow for the year came at EUR 27 million compared to a negative EUR 4.7 million in 2024. And even if you strip out the effect of working capital, which, of course, moves with the gross driven value, free cash flow was still prepared versus 2024 even after accounting for the one-off costs related to the cost reduction initiatives. Our free cash flow to EBITDA conversion has improved significantly, moving from a fixed effectively 0% to 58%. And we are looking to push this further in 2026, building on the strong progress we have already made from 2024 to 2025. Finally, the net financial position stood at almost EUR 32 million, up from EUR 19 million at the end of 2024. As we speak, we have already repaid all the short-term debt that was outstanding at the end of 2025. With this, I'll pass the word to Alessandro, and I'll be happy to take any follow-up questions during Q&A. Alessandro Petazzi: Thank you. Thank you, Diego. So basically, to wrap it up, I mean, you probably don't even need me to highlight how strong this set of results is from 3 points of view, right? I mean the first one is that we did better than we planned, I would say, across the board. We exceeded the guidance that we already raised in Q3, and this is visible at the revenue level, where we grew 15%, where we had a target of low double digits and even more so at the adjusted EBITDA level, where the growth was 33% compared to a 20% guidance, which had been reviewed also pretty recently. And again, these results are, I would say, a combination of a positive trend, right? So it's not just Q4, it's more the entire year across product segments, across geographies. We grew in the core markets. We grew in the expansion markets. And we'll see a bit more details about also our product initiatives in a second. So very robust starting point for 2026. And finally, as Diego mentioned, we really closed the year with a significantly stronger balance sheet, right, driven by both EBITDA growth and a very disciplined approach to CapEx and working capital. So yes, we're delivering on our commits on the one hand, but I would say, even more importantly, we have this trajectory now of our midterm plan on which we are executing against. And the growth is just, I would say, at the beginning. So for me, it is really important also as we move into -- so we talked about the financial results. But I think it is also important to realize that these results do not happen in a vacuum. They happen because there are industrial choices that we make underneath and things that we are working on and that we already delivered and then they translate into these results. So we've decided starting from this quarter and going forward to give you a bit more of a chance to take a look under the hood of what we've done and what we're doing to make these results possible. So the next section, when we say strategic direction, this is it. Well, first of all, the overall strategic direction, I will not spend too much time on this because we insist on this every single time. You've seen this page a few times on Page 13, the pillars of our strategy are strengthening the market presence, evolving our Dynamic Packages product, making sure that we are a travel companion that is relevant for our customers, not only in the moment in which they do the holiday, but really throughout the entire journey and making sure that we have clear idea of what each brand in our portfolio stands for and what is the type of product and audience that are relevant to that with AI, I would say, being the glue that takes it all together as an enabler for the next phase of scaling up. But let's be a bit more concrete, right? Because this could sound like just a framework, but what about the execution on this framework and the things that prove that we're getting there progressively. Well, first of all, the first thing that I'm really happy to announce is that we have indeed launched our free multi-tier loyalty program, which, as you can see, we decided to call PRO, which I think is a nice acronym for perks, rewards and offers and also hints to the idea that with that, you are indeed traveling like a pro. So the concept is simple, and the idea is that the more our customers travel with us, the more benefits they unlock over a 12-month period. Some of these benefits are special discounts because indeed, this is something that people still expect from a loyalty program, but also, I would say, perks and dedicated offers. So it's going to be a mix of financial rewards, I would say, and more qualitative elements, which people have proven to enjoy and also games that they can play that did not have an immediate monetary value, but are designed in order to improve the psychological effect of happiness on our customers if they come back. So the idea is that, again, we want to convert people who maybe got in touch for us for the first time with a price-led approach and make them become loyal customers. We started that in Q4 2025 in the U.K. and progressively, we are rolling that out in all of our markets. But now it's not just about what we did, I would say, is also what we achieved. So if we take a look at loyalty of our customers, you can see on this page that the bookings from repeat customers in 2025 already grew 27% compared to 2024. So clearly, there is -- and this was before the launch of the loyalty program, obviously. So throughout the entire year. So this is very important. This tells us that our brands already resonate with consumers and our value proposition convinces them to come back. So that is something that happens across the board on all touch points, web, mobile and app. But obviously, I would say that the app is at the center of this travel companion bit of the strategy as the go-to device and the go-to product for people who are familiar with the brand and loyal to us. And I would say the numbers have been really interesting on that side as well. I think we never talked about these numbers, and I think it's actually important to give you a sense of how relevant the app already is in our ecosystem and how even more relevant will become in the next few years. We had a 12% growth year-on-year of app downloads to 1.6 million. People who download the app then also use it. We have over 600,000 monthly users for the app. And it represents an important engine of bookings with 20%, 21% of booking shares. And don't get me wrong, we don't think that the app's value is just in terms of allowing people to book a holiday. Yes, that's also there. But let's be honest, they can do it on a variety of touch points. We think that the app value is really as a travel companion. But of course, as you get more used to it and you use it more often, then it becomes natural once the app has all the information about you, it becomes easier also to book there your second or third trip with us. And as we talk about touch points and as we talk about how consumer behavior is evolving in terms of looking for holidays and booking holidays, I think it is really important to take a closer look at AI and how AI is changing the way we all search and get inspired online. This is a topic on which I got a lot of questions and all the one-to-ones I had with you guys over the past few months. And so I thought it was appropriate to take a closer look. And a question that I get all the time, even if it's not always articulated this clearly, but the concept behind this is, okay, what happens to your business if Google search becomes irrelevant? What happens if users search via chatbots, they never click on that, they never land on your website. What happens if agents do all the work on behalf of the customers, and therefore, they're not necessarily influenced by your brand. What happens? And sometimes I get that question in a much more simpler form, which is, well, but now progressively, everyone is looking for inspiration about their travels on ChatGPT. So what happens to people like you, what happens to online travel agencies, right? There's a complete disruption of the business model. And I think it's fair because I think that potentially, you could say, well, if you lose the entry point, then ultimately, you lose the customer. But actually, the evolution we're seeing is much more nuanced than this. And I think it's important to understand certain characteristics and dynamics of our market to really understand what we're talking about here. So on the next page, so first of all, a bit of fact checking, right, how the search and discovery scenario is actually evolving. So historically, I would say, for over 20 years, it kind of stays the same, right? People go to Google, they type holiday for 4 in Mallorca, and thanks to SEM ads or SEO, free positioning, companies like us, they show us at the top, right? So for sure, we're seeing a shift from -- even if typing keywords into a bar, it's still the vast majority of searches. Of course, people are having more conversations with chatbots such as ChatGPT and Gemini by Google. So is this the end of paid ad? Is it the end of Google search? Will AI players become the new OTAs when they eat your cake and your company will become irrelevant? Well, it's a bit different than that. Well, first of all, Google still holds a dominant position. If we're talking about Gemini and AI overviews, basically, the vast majority of customer interactions with some type of AI chatbot is indeed managed by Google. And Google has been adamant that their business model is an ad-based one. They have no intention to become an OTA. For those of you who've been following the sector for a few years, this sounds like Google Flights all over again when Google many years ago now launched Google Flights. A lot of questions like, oh, then the OTAs are done. Google is going to allow you to look flights. And actually, Google's business model has always been to be able to surface the right type of information to the right type of audience and connect that audience and that information with the right advertisers paying them their bills, right? And their adamant, their business model will continue to be absent and also in an AI-first world, their job will be to connect demand and supply. And when they say supply, it means companies like us. Now obviously, other players are emerging. So there's new traffic sources emerging. OpenAI and ChatGPT are the obvious ones. I think it's really interesting actually that because up to now, obviously, these companies have been burning through a huge amount of cash, and that will continue for some time. But at some point, they will also want to understand how they can better monetize what they're doing. And so far, they try to have a premium -- a freemium kind of model with a lot of stuff for free and then the possibility to pay, let's say, $20 a month if you want something more or even more if you want more premium features. But it's pretty clear that it's a pretty niche market, the market in which people are willing to pay for that and potentially they're realizing that ad money is bigger. So I think it's interesting that they started offering ads in the U.S. Now, will this be the end of the game? Because at the end of the day, maybe the end game will be a situation in which all the players managing chatbots will have an ad-supported model. And then for us, it will be an evolution from basically having Google as the main -- as the only actually player for search to having a number of players that we interact with that are really strong on the inspiration phase of the journey and where we can place our ads to make sure we're relevant there. This is one possible scenario. But obviously, we don't have a crystal ball. So it's so early days. It's very difficult to say how the things will evolve. New players might emerge, new models might emerge. So let's say that even if the business model remains or the business model changes in a way that actually it will be customers to pay for the service and there will be no ads, which again, something that right now, we really don't see happening. But even assuming that, that might happen, we believe that lastminute.com is very well positioned to be a winner in this new phase of AI growth and to thrive, not just survive, I would say, in this evolving landscape. And why that? For a number of reasons, which you can see at Page 18. So on one hand, from a technical point of view, we're building an AI-friendly infrastructure, embedding our services where the conversation happens. So you might have seen the PR that we already launched our Flight MCP server in Q4. Now, I get it that it might be a bit technical. The easy way to say that is that it's kind of a universal plug. It's kind of the evolution of APIs, if you want. And that allows LLMs such as Gemini or ChatGPT or Claude to plug directly into our real-time inventory and pricing. And this is very important because it has the power to ensure that when an AI agent moves from the inspiration to actually booking a holiday, we are one of the brands that are surfaced and the agent has directly access to our tariffs, right? So it's very important. The first use case that we -- that this technology enables is the fact that we have an app in the Claude ecosystem. And it will be also very soon available on OpenAI and ChatGPT as well. So I saw that in the insurance sector, a Spanish start-up made a huge wave in the industry to say, "Oh, we have an app on ChatGPT. And so people were like, wow, this company is the one who's going to benefit from all people starting to book their insurance directly on ChatGPT." Well, we're going to be there in a few weeks as well from a travel point of view. But again, this is an infrastructure play. So the MCP, this thing of having the app on ChatGPT, the app on Claude is, I would say, just one of the use cases. There are even more interesting ones that this infrastructure enables. And this is the type of investments that we can do. And of course, other very large companies such as Booking.com or Expedia can do. But if you are a small hotel chain, probably you're not able to do that, right? So that already, I think, creates a most in terms of the winners, the large companies versus the really small ones. The second one is that from a product point of view, we used to be a distribution platform, which was distributing mostly, we can call them commodity products such as flights and hotels. But in reality, over the past few years and even more from now onwards, we have our unique proprietary packages at the core. And so we have these end-to-end holiday packages, which are not just available on any hotel website or airline or even their MCPs. This is a lastminute package. You can only find it on lastminute. And when you find it on lastminute, I don't necessarily mean the website. I also mean the MCP server. I mean everything that is lastminute. So we are the producer of that, not just -- it's produced by Netflix, if you want, not just distributed by Netflix, if you allow me the analogy. And by owning the product itself, we are the provider of this value proposition. Now, people might say, well, but basically, a package is just putting a flight and a hotel together and AI agents can do that themselves or they will be able to do that. And I'm definitely -- I'm not in the camp where people in the industry say, "Oh, but that's more complex. AI is not able to do it." I don't think that's the case. I think any kind of technical complexity, AI will be able to get it. So that's not the point, maybe not now, but in the not-too-distant future, for sure, for sure. That's not the point. So I'm not saying that what we do is so complex, AI cannot do it. What I'm talking about is business models and regulation, right? Because the key thing here is that in order to create a package, we have commercial agreements with all the hotel chains from the big ones, Hilton, Marriott, to the really small ones with independent boutique hotels. We have commercial agreements with all the airlines. We have commercial agreements with transfer providers, with activity providers, with the tons of players in the ecosystem. And for each of those, we have access to those called opaque or opaque or nonpublic rates, which can be used only if you create a package. Now, again, it's really not the business model of Google or OpenAI to start replicating these deals with all these players. And then it's not their business model to be in-charge of customer service when something goes wrong. You get to a lot of times, you book a flight and then the flight is disrupted, it's rescheduled. We are in-charge of that. If there's a partial refund, as the provider of the package, it's our responsibility. All these companies want nothing to do with them. It's the opposite of their business model. They want again to surface someone like us to serve the customer. And it's not just because they don't want to do it, but it's also because from a regulatory point of view, once you are the provider of a package, at least in Europe and in the U.K., you clearly have responsibilities of that. And again, to have a license, you have -- so this is definitely not something that is interesting for this company. So again, AI and chatbots excelling inspiration, but we remain the partner that delivers the actual holiday. So for sure, AI can help you plan, know the context and give you great suggestions, but then to sell a protected package to have the ATOL license in the U.K. to manage the customer operations and service, you need to be a player like us. So I hope that this clarified a few things. But now talking about AI as an opportunity, right? Because let's focus on why this is actually good for us. And I think it's good for us from 3 points of view, and these are the 3 pillars on which we are working on. So internal productivity, of course, everyone gets it. We are embedding AI company-wide to boost, I would say, productivity of our employees. We have already automated a number of processes, and we are working to increase that. We have a new AI automation department under our Chief Data Officer, precisely in charge of that to collect all the initiatives that are happening already around the company and to give a very clear strategic direction using a mix of internal and external tools. Of course, we started with a big project on our customer service side, which really is aimed also to improve the customer experience. So again, I don't see historically, right, you were seeing productivity and customer experience almost as a trade-off. You need to invest more if you want to make customers happy. In this case, I would say, yes, we are investing, obviously, on technology, but then the efficiency will come also with a bigger effectiveness, I would say. So we're also using AI to rethink the travelers' journey in terms of personalization. So the kind of things, the kind of experience that you have right now on ChatGPT, there's no reason why you cannot have it on our website potentially, and in terms of providing that type of, I would say, consultancy, if you want. And then again, as I was saying, Gen AI-powered customer service allows to provide high-quality support 24/7 in all languages initially in the chat and potentially then also with voice. Last but not least, we need to be present where the conversations happen. And therefore, that's why we are integrating seamlessly in the various chatbots. As I was saying, Claude is the first example, but the MCP servers that we now released for flights and we will expand for it to include Dynamic Packages will then be on all the relevant chatbots in the market. And I would say that because this is so interesting and because there's so much happening in the company right now, probably over the next few quarters, we will give you some more insight on the things that we are progressively deploying as they go into production because I think there are so many interesting things that I'm really excited to share them with you. And as we complete this very passionate talk about product and industry, let's go back on Page 21 to what it means from a financial point of view. So our 2026 outlook, you might have, by the way, noticed that this year, we're giving you an indication on what we expect at the very beginning of February. Last year, considering it was my first year in the job, I needed a bit more time to take a look at our budget. And so we gave you guidance much later towards the end of March. So while we're doing that, we think that we're going to keep growing more than the market. So that's going to be constant. We still expect to be growing market share at the expense of more traditional players in both core and expansion markets around Europe. And we expect the growth to be at 10%. Now, you might be -- I can anticipate some questions you might have as soon as we open the floor in a few minutes, which is, well, this year, you grew much more than proportionally at the adjusted EBITDA level than on revenues, why? For 2026, we're forecasting the same type of growth. And I would say there are various considerations here. The first one is that from a strategic point of view, I think that this company underinvested in its own its own brand actually for many years. And this is something that potentially in the short term maximizes or helps maximize EBITDA, especially if revenues are a bit stagnating, but it's not something that makes sense in the long term. And I would say that by excessive short-termism, companies die, right? And this is not us. We have the possibility because we're growing the top line, we have the possibility to also grow the bottom line while still making strategic bets and strategic investments. And one of these is that we will significantly expand our investments in our brands in 2026, again, to -- and these are investments that maybe do not necessarily have an immediate return on revenues. It's different from performance marketing clearly, but they do have a return on a foundation for the future on customer loyalty. So we're really building the steps for our continued long-term success. The other element is that, here, we're talking about it more -- a bit more of a technical one, if you want. We're talking about the adjusted EBITDA, which was EUR 55 million. This year, you might have noticed that actually below the adjusted EBITDA, we had over EUR 8 million of one-off charges. And obviously, we do not expect one-off charges to -- by definition, they're one-offs. So we don't expect such a value in 2026. So actually, the growth of the reported EBITDA will be more than that because of this element, right? And if I take a look at the cash flow, I would say even more so because on one hand, our CapEx reached kind of a plateau in 2025. So we do not expect a growth in CapEx for 2026. And because we're growing the top line and the GTV, clearly, because of the nature of our working capital dynamics, we will also have a very positive effect from working capital on our cash flow. So if you combine all of these effects, the growth of adjusted EBITDA, the more than proportional growth in reported EBITDA, stable CapEx, so that growth will go straight to the, let's say, bottom line of cash generation, right? And then you mount on top of it the positive net working capital effect, then you have a company that we generate in 2026. So very confident to generate even way more cash flow than in 2025 while still growing the top line. So I think it's a very, how can I say, reassuring and positive forward-looking message, both from an industrial and from a strategic and financial point of view. And with that, I leave the floor again to Julia to wrap it up with our financial calendar and then to open the floor for questions. Julia Weinhart: Thank you very much, Alessandro. On Slide 23, we have just wrapped up our latest financial publications you can see and the conferences where we participate in 2026. We will now begin with today's Q&A session, starting with the live questions followed by submitted the ones in webcast. Please note that like always, we might group questions together and they might be slightly rephrased. In line with our privacy and data protection policy, we remind participants that stating your name is optional when asking a live question. With this, I hand it over to Valentina now to start with the first live questions. Operator: The first question comes from Volker Bosse from Baader Bank. Volker Bosse: Volker Bosse, Baader Bank. Yes, congratulations on the great set of results and the convincing outlook. I would like to start with 3 questions, if I may, starting with Page 6, where you give the breakdown of sales growth by product lines. And I mean, in the past, we were used that the strongest growth comes always from the Dynamic Packaging system. Now we see flights up 31%, hotels 21%, which are, of course, great results, but they are exceeding Dynamic Packaging growth. So therefore, my question, is that a structural change? And what has been the driver for that outperformance of hotels and flights? I mean in the past, you spoke about flights as a commodity, and we do not push that and therefore, growth will be lower. So my question would be, how should we look at the growth by the product lines if we model our year 2026 and the following years, just the growth guidance you can give here in that regard? Second question, if I may, would be on your guidance '26. Yes, you always took my question, why EBITDA -- adjusted EBITDA just in line to sales. But you -- thanks for the explanation, more marketing investment, understood. But a bit more details. How do you plan to spend more marketing? Which channels you will use? Will you also use offline channels or online only? Or mean a bit more on how your marketing budget will be spent going forward? And last but not least, a bit more general one. You speak about a robust demand for travel products, which helped you to generate great results on top to your, of course, company-specific initiatives. But my question would be on your expectations regarding market trends in 2026. What is the growth you expect for 2026 from the market side? Do you expect less tailwind for '26? I mean we see that unemployment rates are going up means job uncertainties are rising on the back of weak macros all over Europe basically. But just curious to get your view on these things and how this would affect the travel industry potentially. Alessandro Petazzi: Volker, this is Alessandro. Thanks for the questions. Actually, we had said last time that it would be better to have one question at a time out of respect of the many people who write questions. So we have a lot of that. Because of that, I'll answer 2 of your questions, the first 2, which are really company specific, and then I'll leave the floor for other questions which are company specific. If we then have time at the end, happy to also answer the one on market dynamics, but I would prioritize the others if you allow. So I would say, revenue growth, well, maybe there was, I would say, a conceptual misunderstanding here. What we say is that if we have to bet 5, 10 years down the line, the more we want to be a product-led organization. We want to have a differentiated product that is just specific of us of lastminute, and that's the package. And the evolution of the package, flight plus hotel, it becomes potentially even something more. Now -- and we want to have a more curated approach on the experience. Now, does that mean we're abandoning flights or hotels? Absolutely not. We're very happy about the performance. I would say that for flights, it was about catching up with the fact that, that product had been neglected a bit over the past few years. But maybe in another time, we can go into the details of how we managed to grow so much. We improved the unit economics. That was again done. That's why I want to try and give more details about the things we do internally because then they explain by having a lot of testing on and changing our pricing algorithm. We improved that. We were able to sell more ancillaries and therefore, we were able to have better discounts on Meta channels. That increases the volume. So we will continue to do that as long as possible, right? So in terms of the market evolution, maybe this is something that will change in the next few years. But as long as it doesn't change, as long as there is an audience interested in our flight product, we will continue believing in that, investing on it, improving it and therefore, growing it. So going forward, I would say I expect the growth to be kind of, I would say, similar across our various segments for 2026. I don't necessarily expect one specific segment to really outperform. Clearly, the one difference will be the so-called other because other in 2024 and before included the cruise business, which, as you know, we closed in Q3. So obviously, that number will be smaller going forward. So that's the first one. The second one was about marketing, I guess. Sorry, there's another consideration. What we report as packages is a mix of our own product, the Dynamic Packaging and the fact that especially in Germany with the brand Weg.de, we distribute packages by third-party tour operators to either tour and stuff like that. This is a minor component of the business, so don't think much about that. But of course, strategically, again, that's something on which we are distributing a third-party product. And so the core is our own product. Now marketing, as I use the word brand rather than marketing, not on purpose, right? Because basically here, performance marketing is when you spend money, especially on Google or Meta to drive immediately traffic that is already, let's say, warm, ready to potentially book a holiday, searching for something specific, maybe tomorrow already, searching something in ChatGPT and then it's being ready to book their holiday. Performance marketing, of course, we will increase that in the core markets, in the expansion markets. But the increase there is very data-driven. Every extra euro we spend brings more than EUR 1 in terms of profit. So it's always accretive from an absolute number point of view. What I was talking about here is differently so-called brand, meaning the investments that are not necessarily meant to drive an immediate conversion, but something that builds brand awareness and loyalty over time. Does this mean offline, does this mean out-of-home or TV? Not necessarily. You can do a lot of that on digital channels. But for example, we're talking about YouTube videos on YouTube, on TikTok, on Instagram, but stuff that talks about why lastminute is your provider of choice, not necessarily book now for this deal, right? So it's a different thing. And historically, we haven't really done it a lot over the past few years. I think now that we can afford it, so to say, with the cash flow that we generate, it's now the time to do that investment. And with that, I would pass on to the next question. Julia Weinhart: Thank you, Volker. Valentina, do we have any other live questions in line? Operator: We don't have any more questions from the phone. Back over to you for questions from the webcast. Julia Weinhart: Okay. Then we will now move to the webcast. I will start with the first question we have received today. Will the growing adoption of pay by installment options for Dynamic Packages have an impact on your working capital? Have you structured partnerships with external providers, for example, Klarna, Scalapay, that advance the full transaction amount to you upfront, leaving the credit risk with them? Diego Fiorentini: Thank you, Julia. I'll take this one. Yes, we do have agreements with players like Klarna, Scalapay and PayPal. And those partners are offering the current payment solution to our customers even after departure. In these cases, we are getting the full value of the transaction upfront, and we are not taking any credit risk on our balance sheet. This solution still amounts to a few percentage points of our gross travel value. On the other hand, we still -- we are offering to our customer, our internal solution, both deposit and balance, so deposit upfront, balance before departure or deposit and payment by installments. These options are still with no credit risk for us because our clients are required to pay everything before departure. Julia Weinhart: Thank you, Diego. The next question we have received this morning. Unfortunately, you only communicate the planned change in EBITDA for 2026, but not for the net result. Net result will also be positively affected by missing one-offs that should be communicated. Diego Fiorentini: Thank you, Georgia. Yes, yes, this is a fair point, and thank you for highlighting it. Our primary guidance focuses on revenues and EBITDA because those are the clearest indicator of the underlying operational performance of the company. But it is correct. The next year, we are not expecting significantly one-off item like we had in 2025. For this reason, the net profit will -- we expect it to be higher than in 2025. We'll be in the position to provide greater clarity during the year as the year progresses. Julia Weinhart: Thank you, Diego. Moving to the next question. Dynamic Packages delivered strong growth to EUR 250 million in revenues. Can you decompose this between B2C and B2B white label channels? What's the percentage of Dynamic Package revenue now comes from B2B2C partnerships? Alessandro Petazzi: Thank you, Julia. Yes, basically, you've seen that our packages grew from -- mostly from the new pricing and approach to marketing. The one thing that we're not disclosing now the precise distribution mix, but there's one thing that I can say, and I think also hopefully correcting what was maybe a misunderstanding in the past. We love our B2B2C partnerships. We love our white label partnerships with players like Booking.com and a lot of companies for which we deliver their welfare solutions, holiday [ cards ], other players. We love them, but we think that strategically, it's important to invest in our own B2C brands where we're really building an asset. So the one thing that I can tell -- this is to say that when we say, well, we should increase the percentage of our revenues that come from our B2C proposition, I would say, yes, but we achieved that by making sure that our B2C proposition grows more than proportionately than the other, not by making sure that the others remain either flat or even decreases, right? So in that sense, I can reassure you that indeed, the majority of growth in revenues for our Dynamic Package product in 2025 came from our own B2C brands. So indeed, the proportion of B2B2C decreased as a part of the mix compared to the latest numbers we had disclosed in 2023 and 2024. Julia Weinhart: Thank you, Alessandro. Moving to the next question. Flight revenues accelerated to 31% growth in the full year 2025 after more muted performance previously. What were the primary drivers for this trajectory change? Is this growth sustainable in the future as well? Alessandro Petazzi: Well, I think actually that I already answered this question with answering Volker's live question. And so yes, we will continue to invest in flights. Again, the exceptional growth of 2025, I think, was a function of many things, the improved pricing system, the improved ancillary products which, again, in turn, improved also the way that we showed up in meta channels, also the fact that we have a resilient traffic on the non-meta channels for flights, the fact that we started having more kickbacks from debit card providers because we started progressively having more cash. We could have a bigger portion of the payments going to airlines done with debit cards, which right now provide higher kickbacks than credit cards, and that also improved the unit economics. So it was all about basically the improvement of unit economics. Clearly, you cannot improve unit economics indefinitely, I guess, but you can still grow. Again, I would say 2025, for sure, we had also the fact that the investments was neglected and this type of activity neglected in the prior years. But yes, we expect the growth to continue at a more balanced level with the other products. Julia Weinhart: Thank you, Alessandro. Moving to the next question. Can you please talk about your dividend plans? Diego Fiorentini: Yes. Thank you, Georgia. I just want to remind everybody that these are unaudited results, which means that once the audit is completed in the coming weeks, the Board will propose the 2025 dividend in line with our dividend policy for shareholder approval at the end of June. Julia Weinhart: Thank you, Diego. Moving to the next question. Cash allocation. Given the strong operating cash generation, what are your capital allocation priorities for 2026? Do you plan to accelerate debt reduction considering targeted acquisitions, M&A or invest further in technology and marketing? Could you please explain how do you think about cash generated priorities going forward? Alessandro Petazzi: Yes. Yes. Well, basically, the first thing is that we intend to reinvest in all our strategic drivers. Brand for sure is one of them, strategic initiatives and let's say, improving our product and getting ready for this really fast-changing landscape is also part of that. We also have the idea of keeping disciplined shareholder returns through our dividend policy. So that's going to continue. But I would say more in general, I think we still feel that it's the right time now to have a bit of a war chest in a way to be prepared for whatever market scenario comes up. Basically, I really like the idea of having optionality, especially when there's so much change, right? I think when there's so much change, you want to be in a position to act swiftly if something interesting comes up. For example, we are working a lot now with AI start-ups, I would say, mostly in the AI space, but not just in the AI space, also another interesting project, which maybe we'll tell you a bit more about in the next few quarters, and if opportunities come there. So I'm not thinking about that type of transformational type of acquisition, but if opportunities arise to maybe have direct capital investments in some of these very interesting companies that are developing something that is AI first or that are developing something that is really complementary to our business model, then I want to have that flexibility. So that's what we're prioritizing now. Julia Weinhart: Thank you, Alessandro. Moving to the next question. Your revenue outlook for 2028, EUR 450 million looks very defensive now. Have you plan to do EUR 400 million in '26 already? Can you give us an update, please? Alessandro Petazzi: Well, guys, I would say this is a happy problem to have in the sense that if you look at this company a couple of years ago, the story was completely different, right? Revenues were stagnating, maybe decreasing. Now we have the problem of, say, oops, we're growing too fast, you're not credible in what you're saying if you're not more aggressive. So I would say it's February. There is a bit of a tendency sometimes of the market to say, well, actually, once you give a guidance in the beginning of the year. It's not -- we're not a SaaS business in which you have subscriptions, obviously, there's seasonality, there's stuff. So it's early days, I would say. We're confident that we can deliver on the growth that we talked about for 2026. The moment that this confidence translates into actual numbers, we can think about taking a closer look at our longer-term guidance. Obviously, we will have like a rolling approach to our 3-year plan. So last year, we were talking about 2025, 2026, '27, '28 plan. And later in the year, we will extend it to 2029 and give you a refresh on that based on the actual numbers. I would say, when we are past the peak of the season. Julia Weinhart: Thank you, Alessandro. Moving to the next question. How would tax rate be negative in Q4? Diego Fiorentini: Thank you, Julia. I think I mentioned during the call already, but happy to explain it better. In Q4, we had what is called the measurement of the deferred tax assets. Basically, tax assets are losses that we incurred in the past, but we were not able to record because the expectation for the profitability of the companies was not there yet. With the measures we have taken in 2025, we are now more confident about the possibility to use those losses brought forward. And for this reason, we have recognized these tax losses. Julia Weinhart: Thank you, Diego. Do you consider your fixed cost base as optional at the moment? Any path to further optimize without damaging top line growth potential? Diego Fiorentini: Yes, this is a very good question. The current cost base is something we are happy with at the moment. But of course, this cannot be taken for granted as we move forward. So we will continue to revise our cost base, especially in light of the new technology and the possibility to automate the back office and the accounting operations. Julia Weinhart: Thank you, Diego. Moving to the next question. Thank you so much for the presentation you mentioned. No growth of CapEx for 2026. Does it mean that there was no change in your approach? Do IT app development expenses? Or have you finished the app and there is not much to capitalize? Alessandro Petazzi: Okay. I'll take this. No, I think this would be a bit of a simplistic view. We're not slowing down development. We maintain a significant level of CapEx relative to our EBITDA. It's more that we have reached a plateau in which we think that this is the amount of money that allows us to basically keep on improving our products because there's always something to improve. Keep in mind that also thanks not just but also thanks to the usage, the more widespread usage within the company of AI tools also for coding, we expect a big productivity gain. So with the same type of cost should be able to be faster, deliver more products. So that's more the approach. We started using internally [ Claude co-brand ] with the development team, and we have a target of improving productivity of 15% on that. So that alone means that you can be actually delivering all the initiatives we're talking about without increasing the CapEx amount. Julia Weinhart: Thank you, Alessandro. Moving to the next question. What was the one-off charge in P&L 2025 for? Maybe it was covered and I have missed it. Could you please explain? Diego Fiorentini: Yes. Thank you, Julia. Yes, this was covered during Q2 and Q3 calls. We had 2 reorganization efforts in 2025. The first one during Q2 and the second one in Q3 when we closed the cruise business. There were no other exercises in Q4. Julia Weinhart: Thank you, Diego. With this, we will close our call today. If there are any questions which we couldn't address today, we are, of course, available after the call. You can write us an e-mail or give us a call. With this, I hand over to Alessandro for the final words. Alessandro Petazzi: Thank you, Julia, and thank you, everyone, for joining us. Yes, I think we talked a lot about what we've done in an exceptional -- in what ended up being an exceptional year, to be honest, even beyond our targets and expectations. And we keep on building for 2026 to make sure that we keep this momentum, and we will give you more information, not just on our financial growth, but how we get there and all the interesting things that we are working on. So stay tuned, not just for our investor calls, but also for the press releases we will have over the next few months about some industrial developments. Thank you so much, and see you next time. Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
Vincent Rouget: Good morning, and a warm welcome to URW's Full Year 2025 results, my first as CEO. I'm going to take you through some key highlights and share some insights on our key priorities. Fabrice will cover our financials, and then we will both be available for questions. 2025 was another big year for URW with many achievements and a good start to our Platform for Growth business plan, including a 2025 AREPS guidance at EUR 9.58 per share. We are reporting a strong performance across our business plan priorities, attractive growth -- organic growth, disciplined capital allocation and substantial deleveraging. First, the key foundation is our strong retail operational performance. Footfall and tenant sales are up, leasing activity is strong and vacancy is down to a record low. We also made very important strategic inroads in preparing for a bright future through 2 capital-light initiatives, a new franchising business, an industry first in flagship retail globally and the acquisition of a 25% stake in St. James Quarter in Edinburgh. This demonstrates the significant growth potential of the Westfield ecosystem of performance with top mall owners. We also had successful deliveries with Westfield Hamburg-Uberseequartier and Westfield Cerny Most in Czech Republic. Second, on the capital allocation side, valuations are up and our LTV has significantly improved, helped by EUR 2.2 billion of disposals completed or secured since the start of 2025. We have delivered on our earnings and distribution commitments for 2025, thanks to all these great achievements and to the successful financing and hedging activity delivered by Fabrice and his teams. One more point. We will present in a few slides how we are preparing the future as a top innovator, thanks to the exciting possibilities data and AI offer us and our retail partners. I'm sincerely grateful to all our teams for their outstanding performance across our 4 regions in 2025, and I'm very excited to lead this great company. Our Platform for Growth business plan focuses on delivering growth from a dominant network of retail-anchored urban infrastructure assets. And you can see that clearly in our 2025 results. For me, they clearly reinforce our strong underlying fundamentals and showcase the strength and attractiveness of our unique business. Our EBITDA margin stands at 63%, a level very few businesses enjoy. And post disposals, we now have an attractive cash flow conversion rate in excess of 70%. With the completion of our noncore disposals program, our business now comprises a portfolio of irreplaceable destinations. The strengthening of our balance sheet with an LTV at its lowest level since 2017 means we are well on track to achieve our 40% 2028 LTV target. All this is great news as it gives us the strategic flexibility to unlock URW's embedded growth potential in line with our business plan. As I shared at the start, our business has once again demonstrated its attractivity and consistent compounding growth. We saw continued improvement in key operating metrics across all regions within our retail portfolio. Tenant sales continue to outperform sales indices and core inflation and vacancy is down a further 20 basis points to record low, driven by dynamic leasing activity. Zooming in on our key leasing metrics, we signed over EUR 400 million of MGR with an 11% uplift on long-term deals, consistent with 2024 activity. We made good progress in 2025, and we want to go even further with leasing being our #1 priority for me and our teams. In the Platform for Growth, we have a simple plan, which will drive growth through our established ecosystem of performance that combines unique assets, best-in-class retail operations expertise and the powerful Westfield brand. As a result, we see a clear opportunity to increase traffic, to keep driving tenant sales up with our partners, further enhance rental tension and retail tension and reduce vacancy and solidify our competitive advantage and capture market share. This is the key work that will drive like-for-like growth and unlock capital-light opportunities for our group. Now I want to spend a couple of minutes on why we outperformed our sector. It's pretty simple, and this is at the core of our competitive advantage. Flagship stores are an essential part of a retailer's brand expression and customer acquisition strategy. Traditionally, these stores were located in premium city center or high streets with high footfall. And today, they are increasingly a key component of the Westfield value proposition. We offer brands premium locations, incredible footfall and most importantly, a profitable growth platform. Our value proposition combines brand awareness with earned media value equal to 20% to 25% of annual occupancy costs at our centers and a cost-efficient customer acquisition channel, 80% lower than digital. For these reasons, our stores are big business for many tenants. Our top 20 fastest-growing brands achieved a plus 40% sales increase across our portfolio over only the 2 past years and generate an average of EUR 16 million of annual sales from each store. Here is another data point. Our 10 largest brands are grossing between EUR 100 million and EUR 900 million in annual sales volume across our portfolio. This is huge, and we're super excited to see which one will first reach the EUR 1 billion sales with us. Finally, I would add that this success also reflects the benefits of our highly curated destinations for customers. These are safe, secure, comfortable locations that offer a superior experience in real-life human connection. This being said, here is a thought-provoking comparison. We have taken key leasing data from Forum des Halles in Paris and compared it to our city's leading high streets, Avenue des Champs-Elysees. We are talking about roughly the same annual footfall levels around EUR 65 million, yet Forum des Halles has materially lower rents. Given our similar to higher sales densities, this means higher profits for retailers at our Westfield destination. You'll also notice that average store sizes are 4x larger on Champs-Elysees. Usually, in retail, the larger the store, the lower the rent per square meter. Interestingly here, the opposite is true with Champs-Elysees. And this is clearly the beauty and power of operating in the flagship locations business, where retailers are ready to pay a premium for brand awareness and visibility. OCR is much less part of the conversation. Obviously, you could argue that Champs-Elysees represents a different proposition for major brands. And I'm not saying that we will soon match these rental levels. However, we clearly offer a compelling value proposition that provides comparable traffic levels and attractive demographics while also delivering profitability for retailers. And it certainly gives us confidence about the true value of our offer and the upside potential we see on the very best flagship assets. And beyond this sales performance, as a single landlord compared to Forum des Halles multiple ownership, this means that we are in full control of tenant mix, customer journeys and visit store data. And this is where we can be a top innovator in the flagship retail segment. In 2025, we continue to see a strong lineup of new flagship openings. Bringing in new flagship concepts that are in demand by our customers is key to increasing the level of commercial tension at our locations. The U.S. offers, in particular, a deep reservoir of great brands like Skims, Vuori and others that are very open to the flagship opportunity we offer and look to Westfield as a natural partner to expand into Europe. A great example is premium activewear brand, Alo, which has 7 stores in our U.S. portfolio and just opened its first shopping center location at Westfield London. Early data is extremely positive, outperforming the brand's gross revenue targets by 80%. We also hear it is frequently outperforming their other flagship stores. In Europe, our newest flagship asset, Westfield Hamburg-Uberseequartier is also proving to be a major draw for big brand flagships such as Aesop, LEGO, [ Polo Ralph Lauren ] or Dyson. We have a huge opportunity in front of us, and I'm confident we can do more to attract exciting new concepts by better demonstrating our value proposition and its potential to brands, hence, our leasing, leasing, leasing priority for 2026. In the end, it's fairly simple. The higher the attractivity, the higher the demand, which results in more leasing tension and occupancy, which delivers a higher rental growth profile. We are also leading the way in data intelligence, thanks to years of investment in technology as well as our scale and the quality and size of our assets. We see it as another way to unlock the full potential of Westfield through AI. We partnered with digeiz to develop mapping algorithms to convert video footage into GDPR-compliant segmented data, harnessing the power of AI to analyze real customer visits and traffic patterns. We have now rolled out this technology across 21 Westfield shopping centers in Europe. And what is truly exciting is its massive potential as a performance tool in areas like asset management and leasing. We are unlocking new KPIs and data sets like capture rates, conversion rates or bounce rates today received or estimated in almost real time, i.e., not a month later, like tenant sales. These KPIs are making a real difference in decision-making and providing insights that were not possible with traditional metrics like rent per square meter and sales intensity. And this powerful data can allow a deeper evidence-based conversation with tenants to drive their performance at a shopping center and a portfolio level with URW. This understanding provides valuable insights and data intelligence that can unlock higher long-term growth, but also allows us to provide additional value-add services like Westfield Rise packages. On this slide, we have shared some anonymized data showing these new KPIs for a medium-sized fashion tenant with stores at multiple locations. By comparing store performance at such a granular level, you start seeing how much richer conversations with retail partners can be. How can we help you improve capture rates at a given store? Do you know why this store has significant higher bounce rate than your others? Why is the conversion rate so low at store X versus usual standards? This is obviously a ton of new data to digest for our teams. And this is where AI technology will be of great support to start unlocking this full potential. To further illustrate this, we selected 3 other concrete examples of how data is already enabling active asset management and driving operating performance at URW. First, leasing. Thanks to new passing by and demographic data, we were able to demonstrate the true potential of an area that had been perceived as soft and a specific unit that had been vacant or only short-term let for several years at Westfield Forum des Halles. Traffic data helped us convince an existing tenant to upsize and relocate into the space and unlock the second opportunity within the same asset, i.e., allowing another tenant to expand as well into the free space to create a flagship store, which it had been looking for, for quite some time. Second, the retailer performance. We can now measure the real impact of introducing new concepts, not just on traffic in the immediate area, but also on visits to adjacent stores or brands in the same category. This gives us tangible evidence for rental discussions and powerful insights, leasing strategy in opportunity zones across the mall. And third, retail media. Data enables more precise audience targeting and far more effective brand campaigns. Across 11 recent Westfield Rise campaigns in our portfolio, we were able to measure a 16% increase in store visits for advertising retailers with an estimated 17% sales growth over the campaign months. Looking ahead, AI will allow us to go even further, generating smarter, automated campaign recommendations based on our custom data sets. Using this data, we will also be able to create digital simulations of our assets to further optimize our tenant mix and customer journey. And I can tell you, you simply don't get this on the best high streets. We are excited by the potential and one of our key priorities for 2026 is to scale use cases and turn them into a driver of shared performance with retailers. With this, data and AI-led physical retail truly becomes the future of commerce. Moving now to disposals, which have been key to streamlining and simplifying our business and the continued strengthening of our balance sheet. Despite tough market conditions, we were very active in 2025 and have now completed or secured EUR 2.2 billion of disposals. I remember vividly the many questions received at our Investor Day last year about the feasibility of a disposal plan, well within and at pricing levels in line with book values. This now means a strategic shift to a capital recycling mode to fund any additional investment and development activities going forward that can contribute to our organic growth profile in a disciplined way. Speaking of capital-light growth, it will be an important tool for creating long-term value for our group. We established very important foundations in 2025. First, our acquisition of a 25% stake in St. James Quarter, an 81,000 square meter flagship shopping center in Edinburgh and 1 of only 4 A++ assets in the U.K. As you could guess, Westfield London and Westfield Stratford City are 2 of the other 3. This transaction demonstrates our ability to strengthen our presence in an existing market and expand the Westfield platform in a way that is consistent with our capital-light strategy. Our ecosystem of performance, including the Westfield brand was key to majority owner APG, actively seeking us out, creating an opportunity to improve the future performance of the asset and generate management fees for the group. Second, a new franchising business is generating fees as well, while allowing us to reach new markets and customers with no capital deployment. This is a first in the world in flagship retail, and we are very proud of this achievement. In December, a 58,000 square meter mall in Saudi Arabia's third largest city became Westfield Dammam and the first asset to be rebranded. Based on early feedback, the rebranding has already driven stronger-than-expected footfall and increased commercial tension. In the coming year, 2 new flagship centers in Riyadh and Jeddah will open under the Westfield brand. A key focus for URW this year will be to demonstrate the substantial added value we can bring to owners of flagship assets in new markets. Let's now spend a few minutes on our developments. We delivered projects that totaled EUR 1.8 billion of total investment cost, including 3 key retail projects, all at high leasing levels. In November, Westfield Cerny Most became the 41st Westfield branded asset in our portfolio, and we opened its extension, bringing in 32 new shops and dining concepts. Westfield Hamburg-Uberseequartier has now crossed 10 million visits and as mentioned earlier, has proven to be the new destination for flagship retail for major brands and retailers in Hamburg. With completion of the IBIS hotel and remaining office works, our committed development pipeline drops to EUR 0.7 billion over H1 2026, down from EUR 3 billion a year ago. This significant progress means our development focus can now shift to disciplined capital allocation and capital-light growth outlined in our Platform for Growth business plan. Moving to sustainability next and a Better Places road map, which is a core strategic driver for the group and a key to our long-term competitive advantage. In 2025, URW achieved significant progress and was recognized again among the top 100 most sustainable companies worldwide by Corporate Knights and Time Magazine. Other highlights include our Le Louvre au Centre partnership, bringing iconic Louvre artwork reproductions into 6 mold -- 6 French molds to expand cultural access and reconnect communities with a shared heritage. URW is fully on track to achieve its Better Places targets, and we will publish more information on our 2025 performance in our URD in March. At the end of the day, with a portfolio of EUR 49 billion and an annual footfall in excess of EUR 900 million, we have a substantial impact in our communities and an increasingly meaningful role to play in today's society. We are in a position to deliver at scale and on our purpose to reinvent being together. In addition to leasing and innovation, our third core priority for 2026 is the continued simplification of our business. We've already made significant progress in 2025, including our organizational shift to 4 regions, the disposals of noncore businesses and 21 noncore assets and administrative changes like delisting Australian CDIs. In addition, we are preparing to destaple URW shares. This would be tax neutral and have no change to economic exposure, and we plan to propose this to shareholders at this year's AGM. We will continue to reduce the number of group subsidiaries, and Fabrice will cover the further decrease in our net admin expenses in 2025. In 2026, we will remain very focused on driving down costs while developing a culture of simplicity and agility for all teams at all levels in all regions and for everything we do. This is key to freeing up internal resources so that we can allocate a valuable time to generate growth, push our advantage in data and AI and drive impact. Before I hand over to Fabrice, I am happy to welcome Kathleen Verelst, who joined our Management Board as Chief Investment Officer at the start of the year. She brings a deep real estate experience and relationships and will lead a disciplined capital allocation approach. Kathleen joins Anne-Sophie, Fabrice, Sylvain and I, and we are altogether tremendously excited to lead the group in this next chapter. In May, we presented our Platform for Growth business plan, which was well received by the market. The whole Management Board is focused on delivering the plan and achieving those targets. We've already made significant progress with LTV down 355 basis points on a pro forma basis and generated underlying average growth of more than 5%. And we have very clear priorities for 2026, leasing, leasing and once again leasing. Innovation, including leveraging the Westfield brand and our data and AI capabilities and continued simplification and development of an agile and entrepreneurial culture. I want to thank once again our teams across our business and regions for their significant commitment and focus. We have achieved attractive growth with lower cost, less CapEx and more innovation, and we are well positioned to continue this strong momentum in 2026. I will now hand over to Fabrice to share more detail on our results, and I will then return to cover 2026 guidance and answer questions. Fabrice Mouchel: Thank you, Vincent, and good morning, everyone. In 2025, we once again saw a strong operating dynamic. Tenant sales increased plus 3.9% compared to 2024, supported by a footfall increase of plus 1.9%. Leasing activity was robust and vacancy fell further to 4.6%, the lowest level since 2017. We completed or secured EUR 2.2 billion of disposals in 2025 and in the year-to-date. And as a result, IFRS net debt, including hybrid is down to EUR 19.7 billion pro forma for secured disposals. This net debt reduction, together with the increase in valuations and in like-for-like EBITDA led to a further improvement of the group rate metrics. Let's look at our 2025 figures. AREPS stands at EUR 9.58 per share, down minus 2.7% on 2024, mainly as a result of the disposals completed in 2024 and 2025. Our AREPS figure also reflects the 3.25 million URW shares issued to CPPIB in December 2024 in exchange for an additional 39% stake in URW Germany. 2025 AREPS is consistent with guidance, taking into account the timing of disposals, strong underlying growth and lower financial costs. EBITDA growth was plus 3.6% on a like-for-like basis, mainly from higher shopping center NRI. Office NRI was down minus 34.7% due to disposals, partly offset by the full letting of Lightwell and the full delivery of the Coppermaker Square residential project. 2025 earnings growth also benefited from the reduction in both financial expenses and the hybrid coupon, which I will comment on later. Here, we provide a detailed bridge showing the AREPS evolution year-on-year. Disposals net of acquisitions had a minus EUR 0.57 impact on 2025 AREPS. 2025 AREPS was also down minus EUR 0.19 year-on-year due to the contribution of the Paris Olympics to C&E activity in 2024. Rebates for disposals, net of savings in financial expenses, the Olympics and the impact of the CPPIB deal. We have delivered underlying AREPS growth of 5.4%. And this is in line with the underlying growth rate of at least 5% in our guidance for 2025. Retail NRI growth contributed plus EUR 0.51, thanks to our positive operating performance and recent deliveries. This performance was partly offset by minus EUR 0.07 from offices as well as the usual C&E seasonality effect between even and odd years. Financial expenses had a positive contribution of EUR 0.04, thanks to proactive refinancing and FX hedging. And we also saw a positive impact of plus EUR 0.13 from the hybrid liability management exercises completed in April and September. The other category reflects the negative FX impact on EBITDA before hedging as well as minority interest. So let's look more closely at URW's retail performance on a like-for-like basis. NRI was up 3.8% like-for-like, made up of plus 3.5% for Europe and plus 5% for U.S. flagship assets. Indexation made a plus 1.4% contribution at group level, reflecting a plus 1.7% increase in Europe. Leasing activity and sales base rents in Europe made a total contribution of plus 1.2% on top of indexation. Our U.S. flagship NRI growth was supported by leasing activity and higher sales days rents, representing growth of plus 5.4%. And the other category contributed plus 0.4%, thanks to variable income, including Westfield Rise and parking as well as lower service charges in Central Europe. It was slightly down in the U.S. due to a few bankruptcies. Moving to vacancy now, which stands at 4.6% at group level. This corresponds to a minus 20 basis points decrease from last year, thanks to strong leasing activity. In particular, vacancy decreased in Q4 with EUR 125 million in MGR signed, corresponding to around 30% of total leasing activity for the year. Vacancy in Europe was 3.3% compared to 3.6% in December 2024, thanks to a noticeable reduction in Northern Europe, which dropped from 5.5% to 4.8% with a further decrease in U.K. vacancy. Vacancy remained low in Southern Europe and Central Europe at 3.1% and 2.2%, respectively. U.S. Flagships vacancy was 6.3%, in line with December 2024, up slightly, reflecting the impact of bankruptcies in Q3. And despite this, U.S. flagship delivered like-for-like growth of 5% in 2025. Leasing activity remains strong in 2025 with EUR 423 million of MGR signed. Total MGR is slightly down on last year due to lower vacancy and lower bankruptcies to address as well as the FX impact. Rental uplift continued to be healthy, standing at plus 6.7% on top of indexation, combining a 5.4% uplift in Europe and a plus 9.4% uplift in the U.S., and this is in line with the 6.5% uplift that we achieved in 2024. 2025 performance was supported by an 11.3% uplift on long-term deals, including plus 6.6% in Europe and plus 23.8% in the U.S. It also benefited from a higher proportion of long-term deals at 82%. And the uplift in the U.S. was driven by the introduction of new food, luxury, automotive and fashion brands replacing nonperforming tenants. Rents per square meter signed in 2025 stood at EUR 659 per square meter in Europe and $80 per square foot in the U.S. This was an increase of 17.8% and 17.4%, respectively, compared to rents signed in 2024. Moving now to occupancy cost ratio, which stands at 15.7% in Europe, slightly above its 2024 level of 15.6%. In the U.S., OCR for flagship assets decreased from 12.6% in 2024 to 12.2% as at December 2025. And as we have demonstrated previously, the volume of activity generated by omnichannel retailers through in-store initiatives as well as brand and marketing value as highlighted by Vincent, goes well beyond the sales figure used to compute the OCR. NOI for our C&A activities stood at EUR 160 million, a 27% decrease compared to last year, reflecting the positive effect of the Paris Olympics on 2024 and the usual seasonality between even and odd years. On a like-for-like basis, i.e., excluding triennial shows, the Olympics and scope changes, NOI was minus 0.9% compared to 2024 and plus 31% above 2023, the last comparable year. This was thanks to lower energy costs and the full recovery of this activity. Bookings and prebookings stand at 93% of the expected rental revenues planned for 2026, demonstrating the appeal of URW's convention and exhibition venues. Our 2025 performance was also supported by a minus 4.6% decrease in our general expenses as part of wider cost-saving initiatives. And this is on top of the minus 10% decrease achieved in full year 2024. General expenses as a percentage of NRI have now decreased from 10.1% in 2022 to 8% in 2025, reflecting both the improvement in our operating performance and the efficiency gains that we've achieved on top of the effect of disposals. These gains include the positive effect of the simplification of the organization into 4 regions as well as stringent procurement and ongoing process automation. Moving now to the evolution of our gross market value. The group GMV at December 2025 amounted to EUR 48.9 billion, a minus 1.6% decrease compared to last year. This is mainly due to the EUR 1.5 billion in disposals achieved in 2025, partly compensated by CapEx of EUR 1.1 billion spent over the period. GMV was also impacted by a minus EUR 1.2 billion FX impact from the weakening of the U.S. dollar and sterling versus euro. Net of investment, disposals and FX, portfolio valuations were up EUR 836 million, corresponding to a plus 1.7% increase. This is the first positive revaluation of the portfolio, excluding FX, investment and disposals since 2018, and it is above the 1% annual growth we referred to at our Investor Day. Net reinstatement value stood at EUR 143.8 per share at the end of 2025, in line with year-end 2024. This includes an AREPS contribution of EUR 9.58 per share and the EUR 3.50 distribution paid in May. NAV saw a positive asset revaluation contribution of plus EUR 3.85 per share at group share. This was partly offset by a negative FX impact of minus EUR 5.18 from U.S. and U.K. assets, net of liabilities and minus EUR 1.49 on the mark-to-market of debt, hybrid and financial instruments. It also takes into account an increase in the fully diluted number of shares. Moving to shopping center portfolio valuations next. Like-for-like retail valuation was up 1.9% in 2025, driven by a positive rent impact of plus 1.6% and plus 0.4% from yield impact. This positive rent impact reflects the strong operating performance achieved in both Europe and in the U.S. in 2025. Overall, a yield impact, which had been negative in previous years was slightly positive in 2025, thanks to Europe. And this comes from an overall minus 10 basis points reduction on the discount rate, while exit cap rates remain unchanged. Like-for-like valuations were up plus 2.3% in Europe, slightly above the 2024 revaluation at plus 1.6%. Valuations were up in the U.S. for the first time since the Westfield acquisition at plus 0.7% and the GMV increase for U.S. Flagship assets was plus 1.6%, fully coming from a rent impact. The net initial yield for European assets as at December 2025 stands at 5.3%, i.e., 10 basis points below 2024 level, while potential yield was stable at 5.7%. The NRI growth assumed by appraisers for the European portfolio stands at 3.5%, including a plus 1.8% assumption on indexation. The net initial yield for U.S. flagship assets stands at 5.2%, plus 10 basis points above its 2024 level and 40 basis points above its 2023 level. The stabilized yield for U.S. Flagship assets based on assumed rental increase in year 3 stands unchanged at 5.7%. And these yields are consistent with recent transaction on A++ assets in the U.S. like NorthPark Center in Dallas sold at 5.3%. These yields also reflect the potential growth embedded in our U.S. assets. And the NRI growth assumed by appraisers for the U.S. Flagship assets stands at 3.8%, and this is based on cash flow growth, including the contractual rents and CAM escalation of 3% on average. This means that more than 3/4 of the growth assumed by appraisers comes from current leases in place, assuming the extension with no capture of rental uplift nor vacancy reduction. Moving now to development. The key event in 2025 was the successful delivery of the retail component of Westfield Hamburg as well as the handover of the first office to Shell. Following these deliveries, the total investment cost of our committed pipeline decreased from EUR 3 billion to EUR 1.2 billion between 2024 and 2025. Works on the IBIS Hotel and the remaining offices in Hamburg are due to be completed in H1 2026. And when handed over to tenants, this will reduce the total investment cost of our pipeline by a further EUR 0.5 billion, leaving just EUR 0.7 billion in committed projects. The controlled pipeline amounts to EUR 1 billion at 100%, in line with last year. And any decision to launch controlled pipeline projects will be fully consistent with the capital allocation policy presented at our Investor Day. Net debt has further reduced in 2025 from EUR 21.9 billion to EUR 20.3 billion on an IFRS basis, including hybrid. This results from the EUR 1.6 billion disposals completed in 2025, which has a positive impact of over 200 basis points on the LTV. The retained profit, net of distribution and others also contributed to the LTV reduction for a net impact of circa 120 basis points, and this was partly offset by the EUR 1 billion of investment spend in 2025. Net debt decreased by EUR 0.4 billion as a result of the weakening of the sterling and the U.S. dollar, which also impacted the GMV as we saw earlier, leading to an overall negative impact of circa minus 20 basis points from FX on the LTV. And last, portfolio valuation had a positive impact of circa 90 basis points on our LTV. In total, IFRS LTV, including hybrid, stood at 42.8%, down from 44 -- from 45.5% at year-end 2024, a 270 basis points decrease. The group has also secured an additional EUR 0.5 billion of disposals. And taking into account these disposals, the IFRS net debt, including hybrid would stand at EUR 19.7 billion on a pro forma basis. And as a consequence, the LTV would decrease further to 42%. The IFRS net debt over EBITDA ratio, including hybrid, further improved to 9.1x in 2025, down from 9.5x in 2024. This is consistent with the trajectory presented at our Investor Day and the 9x level anticipated in 2026. This results from the net debt reduction of EUR 1.6 billion achieved in 2025. It also reflects an EBITDA decrease of minus 2.9% due to disposals and the 2024 Olympics impact and a plus 3.6% EBITDA increase on a like-for-like basis. This ratio does not take into account the further EUR 0.5 billion of disposals secured or the full year NRI impact from projects delivered in 2025 and to be delivered in 2026. The cost of debt for 2025 amounted to 2.1%, slightly above the 2% in full year 2024. This includes the benefit of refinancings completed in particular in the U.S. and the hedges put in place in 2025 to cover rates and FX. This was partly mitigated by the maturity of low coupon debt in 2025, a lower cash amount and decreasing cash remuneration. Going forward, the cost of debt is expected to be aligned with the trajectory presented during the Investor Day of a 20 to 30 basis points increase per year. So let's look at those refinancings in more detail. The group has successfully executed major financing transactions in 2025, illustrating its access to funding at attractive conditions and its ability to seize market opportunities. We fully refinanced our hybrid stack in April and September 2025. The new hybrids issued have an average coupon of 4.8%, while the group reimbursed its 2028 hybrid with a coupon of 7.25%. Through these transactions, the group has generated savings of around 55 basis points on its hybrid coupon, representing a positive contribution of plus EUR 18.6 million to its 2025 AREPS. The group's hybrid portfolio stands at EUR 1.8 billion at the end of 2025 and will decrease to EUR 1.5 billion by April 2026 with the repayment of the remaining EUR 226 million hybrid. We also refinanced $1.2 billion of commercial mortgage-backed securities, managing to both extend the maturity and secure improved conditions with an average coupon of 5.3%. This corresponds to a saving of around 190 basis points compared to conditions previously in place. And this included the refinancing of $925 million for Century City, which was the tightest spread for a AAA tranche over the 2020, 2025 period and the tightest CMBS coupon for a single asset in the past 5 years. And last, the group renewed and extended its credit facilities. And thanks to this activity, our average debt maturity was unchanged at 7 years. Finally, the group's IFRS cash position decreased from EUR 5.3 billion to EUR 2.7 billion during 2025. This results from the use of available cash to repay EUR 3 billion of maturing debt. This also included proactive repayment of EUR 600 million of bonds at a 2.5% coupon maturing in June 2026 and EUR 150 million loans at 4.2% maturing in 2027. We also proceeded with the discounted repayment of Wheaton and the debt on Wheaton, generating a $30 million net debt reduction. And this is consistent with the group's approach to reducing its cash position as remuneration conditions deteriorated with a decrease in central bank's rates and as we made a significant progress in our deleveraging program. And as the group's cash position decreased, we reaccessed the commercial paper markets in Europe and in the U.S. to benefit from decreasing short rates. And these programs are backed by undrawn credit facilities standing at EUR 8.7 billion at the end of the year. And the group's strong liquidity position gives us the full flexibility to access debt markets as and when we see fit. In total, we have secured the EUR 2.2 billion of disposals announced during the Investor Day. We have shown a strong operating performance in 2025. Our credit metrics improved on the back of the group's net debt reduction, like-for-like EBITDA growth and a 1.7% increase in asset values. We have also demonstrated our strong access to funding through the CMBS and hybrid issuances completed in 2025. In view of these achievements and as already disclosed, we intend to propose a distribution of EUR 4.50 per share for fiscal year 2025. This corresponds to an increase of circa 30% compared to 2024 and a payout ratio of 47%, which we intend to increase to 60% for fiscal year 2026. And as in 2024, this distribution will be paid out of premium. With that, let me hand back to Vincent for some closing remarks. Vincent Rouget: Thank you, Fabrice. Solid performance. Let's now look at our guidance for 2026. At our Investor Day, we provided AREPS guidance of at least EUR 9.15, reflecting the mechanical effect of disposals. We are now increasing the range of full year 2026 AREPS guidance to between EUR 9.15 and EUR 9.30. This represents another year of underlying growth of at least 5%, supported by our solid retail operating performance. No major deterioration of the macroeconomic and geopolitical environment is built into this guidance. Finally, in line with our commitment to increase shareholder distributions, we intend to propose a payout of EUR 5.50 per share for fiscal year 2026 to be paid '27, consistent with our confidence in the group's outlook. This represents a payout ratio of circa 60% and a 22% increase versus 2025. Before we move to Q&A, I would like to share why I'm excited to lead this amazing business and confident we will deliver sustainable long-term growth. We have an unmatched and irreplaceable flagship portfolio located in the best cities and catchment areas in the U.S. and Europe, powered by our retail operations expertise and the iconic Westfield brand. Our assets, our expertise and our brand are an ecosystem of performance and a powerful competitive advantage. Looking more broadly beyond the real estate industry, we also have a sound, highly profitable and cash-generative business and are fully focused on unlocking our full potential through a platform for growth business plan and being the leading innovator in our industry. This will generate compelling shareholder returns and create value for all our stakeholders. With the depth of talent in this group and the plan we have in place, I have absolute confidence in our ability to deliver something truly incredible. And with that, let's start the Q&A. Operator: [Operator Instructions] The first question is from Valerie Jacob of Bernstein. Valerie Jacob Guezi: Congratulations on your results. So my first question is on capital allocation. You've now completed your disposal program. You've also sold some lands, which perhaps reflect less upside on development. So I just wanted to ask you what are now your key priorities in terms of capital allocation? And how shall we think about it? Vincent Rouget: Thank you, Valerie. We're very happy to be at a point where we can now move towards capital recycling. That's another avenue of organic growth to some extent at a similar debt level that keeps on going down, that will fuel potential additional growth. This is a tool through the further disposal on the land bank part as we had shared during the Investor Day that we'll keep on working over the next few years. And that will be the main driver of our capital allocation strategy in a disciplined way. And as we expressed it and shared it during the Investor Day, we have a net CapEx investments, annual investments on average over '26, '27 and '28 that is set at EUR 600 million, and that will be the key yardstick for us for any future capital allocation decisions and new investments, which will be funded by disposals on the resource side. So -- and maybe the last point I will add is that we share the criteria upon which we will appreciate and analyze any new investments in the future as part of our Investor Day as well, and they remain fully in place in any new situations we may be looking at. Valerie Jacob Guezi: And just in terms of geographies, are you completely agnostic or do you have some priorities? Vincent Rouget: I think our teams are monitoring every opportunity that fits our overall highly qualitative positioning across the portfolio in our existing markets. So I think we remain alert to every opportunity in the market across different locations and geographies. And I would say -- beyond countries, I would say, urban areas to some extent because, as you know, we are more a city player than a country player, generally speaking, across our 24 markets. So this is where we like to build scale and to generate further competitive advantage in our positioning as well. Valerie Jacob Guezi: And my second question is on your vacancy rate. I mean you've made some good progress over the past few years. Do you think you can improve the occupancy further? Or have we reached a floor and you're happy with what the portfolio is? Vincent Rouget: I think before I hand over to Fabrice, maybe to comment on the vacancy, it's really at the core of our leasing, leasing, leasing #1 priority. So we intend to keep driving up occupancy across the portfolio and continue to increase the retail tension across the board. So that's definitely part of the plan. And it's really through this virtuous cycle of efforts of bringing in and attracting the very best concepts, which are sometimes not in shopping centers yet that will increase gradually the expansion that will reinforce our desirability vis-a-vis tenant partners and will drive upward as well the tenant sales, which is the long-term yardstick we are pursuing to ensure that we have durable and consistent long-term organic growth. Fabrice Mouchel: Thank you, Valerie. So to come back to your question. First, we've been able to reduce significantly the vacancy in Q4. And as you would recall, the vacancy stood at 5.3% at the end of Q3. And we've been able to decrease it to 4.6%. And this was in particular on the back of strong leasing activity with EUR 125 million of MGR signed. So 30% of the total full-year leasing activity and with a higher focus on the letting of vacant units. Hence, as Vincent said the importance on the leasing, leasing side. Now to your question, there are still some areas where we see some improvement potential. One is the U.K. And even though there was an improvement in the vacancy rate in the U.K. from 5.8% to 5% at the end of 2025, we still see some possibility to reduce further the vacancy rate in the U.K. And the other one is obviously the U.S. at 6.3%. So historically, the structural vacancy in the U.S. was somewhat higher than in Europe but we feel that there's some room for improvement to reduce further the vacancy on our U.S. Flagship assets. Operator: Next question is from Jonathan Kownator, Goldman Sachs. Jonathan Kownator: The first question is going to be on brand media. I think you described a slightly shrinking market. You described weakness in luxury demand. Obviously, you have a lot more statistics also to offer to retailers at this stage. How are they seeing the market? Are you able to convince them that it's not just out-of-home market and that there is more potential, i.e., do you see any, I would say, a question on the growth path for that business, please? Vincent Rouget: Yes, correct. We see a lot of potential in this activity. As you know, Jonathan, we expressed it during the Investor Day, and we see this business line as higher growing trend inside the overall portfolio. We see some -- there are several levers across this activity. Beyond the market situation and the market environment generally, we believe that we can increase the occupancy rates across our screens, generally speaking. And we believe that we have some substantial leeway as well on the rate card and the way we -- what we pay and charge -- what we charge for those screens. So we are still at the beginning of this activity, we believe and where we see some interesting potential as well is making the link with our core business further in the next few years. And that's really our second priority around data and AI because of the investments we've made to expand and to develop retail media franchise with Westfield Rise. Now we can use those substantial investments to improve on our core business. And it's really the link and the full connection of those various approaches and value-add services towards retailers to some extent that will crystallize the upside. The advertising market is softer right now that -- what we foresaw maybe a year ago. We still see some growth in our business and we fully believe in the upside we shared with investors during last year's Investor Day and the substantial growth trajectory we see on this line of business. Jonathan Kownator: Just to continue on the -- so these luxury tenants, are they unhappy with the results of their campaigns? Or is it just broadly they reduce advertising? Or are they shifting it online? I mean, online is obviously 60% of the market, right? And so what are you seeing there? Vincent Rouget: Look, I think luxury tenants are very happy with us because they've been generating a positive performance in sales, in footfall, generally speaking, across year 2025. It's one of the best-performing branches when we look at our overall portfolio with tenant sales, which are above what we reported at the group level of 3.9%. So from that standpoint, I think the business for luxury retailers with us is doing well. On the advertising market, again, we are seeing an increase in occupancy across our screens between '25 and '24 when we correct for the positive effect of the Olympic games in Paris. And so we don't have anything to report specifically around the luxury market and the lack of appetite for this new media. Jonathan Kownator: Okay. Just one quick question, sorry, on your FX assumption for 2026. You said that you have a negative FX impact. Are you able to elaborate what assumptions you've taken for FX and at the same time, have you put hedges in place similar to what you had in 2025? Fabrice Mouchel: So that's a very important topic and which effectively has a strong impact on the 2026 results compared to 2025. And just to give you some perspective, so basically, a, of course, we are hedged in 2026 to the same extent as we are hedged in 2025, but we are hedged at levels that are much higher in 2026 than they were in 2025 as a result of the evolution of the currency, in particular, the ongoing weakening of the dollar that we saw over the period. So all in all, we are fully hedged but the level at which we are hedged is closer to the current market levels that you see with an FX of around 1.8 between euro and dollar, whereas in 2025, we've been able to hedge ourselves at a level closer to 1.03. That was the level of FX that was prevailing at the beginning of 2025. So basically, in 2025, we had a positive impact from FX compared to 2024 when the FX rate was on average at 1.06. But in 2026, we'll see a negative impact on the FX coming from this evolution and the weakening of the U.S. dollar that we've seen over the period. Vincent Rouget: Let me commend very strong performance of Fabrice and his treasury teams this year. Again, I think it's a well-known fact in the market, generally speaking, but obviously, the track record is very impressive and better than the trajectory we shared last year in terms of anticipation. So hats off. Operator: Next question is from Pierre-Emmanuel Clouard, Jefferies. Pierre-Emmanuel Clouard: Yes. Coming back on your capital allocation, what do you mean when you say that the objective in 2026 to capture market share in 2026. Is it -- are you willing to be a net buyer or net seller in 2026? And would you say that the convention and exhibition activities core business for you from a medium-term perspective? Vincent Rouget: Yes. Pierre-Emmanuel, very simply by mentioning capturing market share. This is what we've been doing over the last few years and somewhat when you look at the evolution of a tenant sales versus national indices, we've been operating at a healthy spread over the years. And it's true that, I would say, leasing, leasing, leasing priority that will predominantly capture this. Obviously, when we co-invest in a capital-light way on the 25% stake in St. James Quarter in Edinburgh. It allows us to expand our portfolio as well in a very disciplined way on the balance sheet side and the net debt levels that we want to keep on reducing over time. So this is what we mean about capturing market share, generally speaking. It's not about acquisitions, substantial M&A or things like that. And I think we're very happy to have achieved a EUR 2.2 billion disposal program in advance to what we foresaw and announced to the market during our Investor Days or slightly in advance, I would say, because we had targeted early 2026. And it allows us to look with full flexibility at capital recycling opportunities if the attractive ones materialize for us, and it will need to be to the service of the growth profile of AREPS and obviously, it doesn't -- without affecting LTV reducing trend. So I think these are the core parameters for us in terms of capital allocation. I don't have an answer for you on the net buyer or net seller from that standpoint because we have completed a disposal program. So it will be managing the timings in case we were pursuing capital recycling because the opportunities are there. Lastly, on the convention and exhibition. This is a core activity. This is historic activity for the URW Group, we see some growth potential with the delivery of major infrastructure in the northern side of Paris for [indiscernible] site. And so -- and the activity is performing very well. You could see obviously, the great performance with the Olympic games last year. And we are on the right trend on this business. So there's no disposal plan whatsoever on this activity. Pierre-Emmanuel Clouard: Okay. Understood. And a quick follow-up on your capital allocation strategy. The [ Balkany family ] Is selling a big Spanish portfolio, including La Vaguada, in Spain, and it has been reported by the press, you could have a look at this portfolio? So are you evaluating this process? And if so, would you angle be selective [indiscernible] stakes or full ownership? Vincent Rouget: We as -- I mean, first, we never comment on specific situation, as you well know. So thank you for your question. And more generally, we are monitoring all situations across the market and across our different markets, as I mentioned previously. So we track them. We want to know where assets trade, whether the portfolio quality fits our ambition and our overall quality in the portfolio, and we do that with this opportunity as with others. I think in the end, the bottom line is we have a very clear trajectory. We intend to deliver on that. And it sets some parameters, which are pretty stringent in terms of capital allocation. So even though we look at everything to know the market and know our markets, I think the odds of something happening are pretty disciplined, I would say. Pierre-Emmanuel Clouard: Okay. Understood. And a final question on your pipeline. So it would be interesting to have an update on your pipeline, specifically about the residential scheme next to Westfield White City in London and also Westfield Milan, is there any news here? And maybe a quick follow-up about the pre-letting ratio on offices in Hamburg that will be delivered this year. Vincent Rouget: Yes. On the pre-leasing ratio, we stand at 82% on the overall office product across the Hamburg state in the Westfield, Hamburg-Uberseequartier, a state which is a very high rate and reflects the high quality and great location, this office product offers prospective tenants, and we keep on having positive discussions with prospects. With regards to your questions on the various developments, I think on all the examples you shared or you cited. We are investing in pre-devCapEx and expenses across our portfolio to bring our land investments to maturity. And this is what we apply across the board on our controlled pipeline and noncontrolled pipeline. And again, it will -- any decision to commit further capital to new developments and new densifications will have to fit within a baseline, the baseline we shared during the Investor Day of EUR 600 million net CapEx, so net of capital recycling. So that's the approach we're pursuing. We are working on a slightly marginal rezoning of the Westfield London residential quarter to improve the product and improve overall the project. Operator: Next question is from Paul May, Barclays. Paul May: Just a couple of quick questions for me. I wonder if you could give some color on the average yield on the EUR 2.2 billion of disposals, not obviously specific assets, but just so we can get a sense for modeling, particularly the remaining outstanding yield would be great. And then given all the activity, if you could provide a proportionately consolidated closing annualized rental income as at the year-end, that would be really helpful moving forward and say proportionately consolidated would be great. I think you gave the nonconsolidated version. And then do you want the second question now or should I ask that afterwards? Fabrice Mouchel: So to your first question, Paul, on average, the yield at which we sold or secured the EUR 2.2 billion was between 6% and 7%. and I will be even more helpful than your question. So basically, just to give you an insight of the impact of disposals -- of the 2025 disposals on the 2026 AREPS. So basically, it's higher than the EUR 82 million of negative impact that we saw in 2025 for the 2024 and 2025 disposals. And out of the EUR 82 million, you had less than EUR 40 million that was coming from the 2025 disposals. So basically, based on that, you see what could be the total impact on the NRI side of the disposals secured or completed, the EUR 2.2 billion. What was the impact on 2025 and therefore, what would be the impact on the 2026 AREPs. Hope it helps. And if not, you can still call me. Paul May: Perfect. Just following up with the second question is following on a previous question around the ramp-up of development, which I think you talked about in the medium-term outlook. I think various development schemes, especially your experience at Hamburg and recent retail experience would imply that retail development isn't really going to work in the current rate environment or the current return environment. And then if you look at offices, you've got obviously the structural issues and possible AI impact seemingly impacting offices at the moment. So that doesn't seem like a viable sort of decision to ramp up development there. So I was just wondering what is the thought process with that? Does it not make more sense to reduce your land exposure, try to sell what you can and rotate that into income-producing assets? Just thinking on that sort of capital allocation, what the thought process is? Vincent Rouget: Yes, sure. I would say both on the offices side as well as on retail, but I'm sure it applies to other asset classes. It all starts with the product. And I think on offices, there's a lot of talk about the impact of AI. And at the same time, I read headlines everywhere that New York office market -- prime office market has been booming for 3 years now and has never been as good as it is right now. So it's really the quality of products. What we've shown very substantially and meaningfully on La Defense market, which has not been an easy market for a number of years and where we managed to deliver Trinity and fully leased Trinity after delivery, starting from 0% pre-letting at record rents and a massive premium versus every other restructured product delivered over the same period in La Defense. So it really starts with the product. It's the same for us in our view and strong conviction with [indiscernible] project, which is -- where construction is ongoing. And so it's really a question of location, market, but as well ability to create the right product. It also applies to retail. I leave aside the capital allocation side of Hamburg, but we see that Hamburg product is a tremendous success from a retail perspective. The retail partners are very happy about the performance. We already passed in less than a year, 10 million footfall. And so you see that when you create a great product, it creates its own attractivity. That being said, I think a lot of -- obviously, we're working on the land portfolio, as you suggest. And as we expressed it during the Investor Day, we shared, I believe, a figure of roughly EUR 1 billion on our balance sheet of land values back then. And we shared that we intended to sell or dispose around EUR 400 million over the duration of the plan. So between last year and the end of 2028 this objective remains true. And so that's what will enable us to keep investing in development or selling assets and more through a mixed-use angle and adding and densifying around our existing footprints, I would say, as a general trend. And then for the rest, it will be a matter of bringing in partners alongside us as well on the right product and projects in which we have strong conviction to enable the launch and the development of those. So I would say, in a disciplined capital allocation way in the end as we committed to early 2025. Paul May: Yes, I do. I get that. It's just, as you said, putting aside the capital return point, which, obviously, for shareholders, we can't put aside the capital return point. So Hamburg is a great success in terms of it looks pretty and it's got lots of footfall, but I think yield on cost was in the 3s, and also you've lost a lot of money on that. So that would be, I suppose, a concern of shareholders is that real estate companies focus on the shiny final asset and not on the capital return point. I think we just want to get comfort that you're not going to just go off and develop a lot of trophy assets and not generate returns for shareholders. I think that's the concern people have. . Vincent Rouget: Paul, you can have every comfort you wish to have on this, and that's the exact reason why we ascribe ourselves to a very stringent net CapEx spend of EUR 600 million per annum. I use this opportunity -- as we shared during the Investor Day, roughly EUR 300 million, give or take, is going to leasing -- ongoing leasing, maintenance and better places CapEx overall, which leaves EUR 300 million net of extra spending to go for developments or densification around our existing assets. So this is a very stringent trajectory from that standpoint. And I didn't mean the capital allocation side in that form for Hamburg. It's a real trauma, and this is an experience we learned from. And it was also at the source of the decision we made with GMV to drive a platform for growth business plan last year with such a disciplined capital allocation approach. We shared during this some pretty specific criteria in terms of the targets we will aim at in terms of underwriting of new projects as part of the Investor Day, and we absolutely stick to them. And that's exactly the approach we are pursuing. And lastly, when I look at our business overall across real estate asset classes, the EUR 600 million net CapEx accounts for roughly 25% to 30% of the EBITDA we generate on an annual basis of our NRI. This is one of the most compelling metric across asset class in the industry -- in the real estate industry. And that shows that it doesn't leave a ton of space to launch, as you call, new crown jewel developments in terms of development forward. Operator: The next question is from Florent Laroche-Joubert, ODDO BHF. Florent Laroche-Joubert: So 2 questions for me, if I may. So my first questions would be on the guidance for 2026. So we have been able to see in your presentations that you are working on improving your G&A expenses. In which way have you been able to -- have you taken into account some improvement today in your guidance for 2026? Fabrice Mouchel: So thank you, Florent. So basically, this is incorporated, but this is not the main driver for the evolution and the AREPS in 2026. So basically, our guidance. First, we've discussed the 2 mechanical effects with Jonathan and Paul, which are, a, the disposal, which, as you see, as I've mentioned, will be significant and even above in terms of NRI loss compared to 2025. The second is the FX impact. But all in all, this is also driven by a positive evolution and particularly on the rents on a like-for-like basis even though the indexation would be lower in 2026 than it was in 2025. So -- but despite that, we expect to deliver strong like-for-like growth in line with what we've done last year, in line with the guidance that we gave during the Investor Day. And on top of that, we'll benefit from the ramp-up of the projects. And ultimately, there will be also the positive impact of the seasonality of the C&E activity with the even year that would also benefit from the 2026 year. So this is part of the growth that we expect or the evolution of the NRI of the AREPS that we expect in 2026 but that's not the main driver. The main driver continues to be the strong like-for-like growth, which is the priority that we have laid out during the Investor Day and the platform for growth. Florent Laroche-Joubert: Yes. That's very interesting. And maybe my second question would be on your cash on hand that you have now at EUR 2.7 billion, so it's much more or less than 1 year ago. And also we have been able to see that you have been able to re-access to short-term debt. So what would be -- what can we expect now for you for 2026? And after maybe -- do you think that you would be able to have maybe a lower cost of debt than the ones you presented at the Capital Market Day? What -- how do you want to manage that now? Fabrice Mouchel: So. So basically, first, in 2025, we've been able to achieve a cost debt of 2.1% which was only a 10 basis points increase compared to 2024. So below the 20 to 30 basis points increase in the cost of debt that we have mentioned during the Investor Day. And the main reason for that, again, is the FX hedging that we have put in place and that have been -- that we have -- that has allowed us to reduce our cost of debt for 2025. So basically, going forward, as we said, we stick to the guidance that we gave of an increase between 20 and 30 basis points in the cost of debt. And this already incorporates, by the way, the use of the commercial paper market. And it also incorporates some lower remuneration on the cash and the cash has reduced, and this was done on purpose. We've reduced it from 5.3% to 2.7%. So part of the cash was used to repay debt, maturing debt, but also proactively repaying debt maturing in '26 and '27, which had coupons above the cost -- the remuneration conditions of the cash. But all in all, the marginal conditions are higher than the average cost of debt. And therefore, there should be a 20% to 30% basis points increase year-on-year, even though as usual, we try to optimize it and the use of the CP market is one of the ways to achieve that. But it only makes sense to the extent that your cash position reduces enough. Otherwise, you would raise cash on the CP market, but you would have to replace it at conditions that would be slightly worse than the ones at which you would have raised this cash. Operator: The next question is from Veronique Meertens, Kempen. Veronique Meertens: For me, 2 questions around Asian disposals. So I was wondering, so you've now completed your disposal program, pro forma LTV of 42% and you reiterated your guidance of 40%. I was just wondering versus the plan that you presented in May last year, are you ahead or on track after the completion of the disposal program to reset 42% -- 40%? And then in line with that, how actively are you still pursuing disposals at the moment? Are there ongoing discussions at the moment? And how do you see that investment market at the moment? Vincent Rouget: I would say on the fact that we reached EUR 2.2 billion disposals, we had planned to reach it slightly later. So from that standpoint, we are slightly ahead of the objective and what we foresaw last year, and we received a lot of questions during the Investor Day last year on -- to what extent we were confident we would be able to execute such a volume and quantum in a difficult market. So we're slightly ahead there. On the rest of the criteria, and I will leave -- I will let Fabrice elaborate on those. We are well into the plan. We are on track with the plan we disclosed and we shared with the market in May 2025, and we see a solid momentum in our business. And so I would say that's the general assessment and perception we have around our strong operations. Fabrice Mouchel: So to come back to your question, I think the one point on which we are ahead compared to the assumption that we have given during the Investor Day is the evolution in valuation. So as you would recall, we said that the trajectory towards 40%, a, assumed that we would complete the EUR 2.2 billion of disposals, and this has been done. But it also assumed a 1% increase in values per year between '25 and '28, and we have achieved 1.7% in 2025, which is above the 1% level that we had referred to during the Investor Day. So this is where we are ahead of the plan compared to the LTV evolution, and this is already incorporated into the 42% of LTV level, which, as you would recall, compares to 41.7%, which was the level without any increase in values at the end of -- at the end of 2028. Vincent Rouget: It' a good sign, and I will finish on also insisting on the fact that, that's the key reason why organic growth is our primary focus and the leasing, leasing, leasing priority there because with the ability to drive our business plan and to generate the kind of organic growth we shared during the Investor Day market, we see that rates have kind of landed now or reached a high on the cap rates. And to some extent, we start seeing the benefit with such an attractive organic growth on the valuation levels. So that gives us a lot of confidence. And this is really at the center of everything we do, driving this like-for-like performance for our own assets, but it's also the key that unlocks and makes extremely attractive to partner with us either through rebranding and management or co-investment in our existing markets, but also on the franchising business to expand into new markets where we are not present today. So this is really the core of the ecosystem of performance we set up in order to deliver a very attractive platform for growth. Veronique Meertens: Okay. That's clear. And one follow-up on that because during the Investor Day, you had several ideas on future capital allocation and obviously, on a disciplined manner. But one of the things that you did mention was also share buybacks as one of the potential ways. When you're looking at -- if you say that now you're ahead on that sort of like 40% target, what is necessary to potentially trigger a share buyback? Or is it really just focusing now on interesting opportunities in the market? Fabrice Mouchel: So share buyback is definitely part of our toolbox. Now there are a number of conditions that needs to be met before we use this tool. The first one is, as we said, that we need to sell more than the EUR 2.2 billion of assets. So basically, any use of capital would be only done to the extent that we sell more than the EUR 2.2 billion. So now we've reached EUR 2.2 billion. So we'll have to see what are the additional proceeds that we can generate from disposals. And the second topic is that out of the use of these proceeds coming from additional disposals on top of the EUR 2.2 billion, we have a variety of options to reallocate this capital, one being acquisitions. And as we have done, for instance, in Edinburgh with the acquisition of this 25% stake, which is on a prime asset, as Vincent has mentioned, with very attractive conditions with capacity also to develop the brand, capacity to generate some fees. And so basically, out of the various options that will be available to us, we will look into what can be done in terms of acquisition, what can be done in terms of share buyback. And again, looking at both the returns of each option and as well its impact on the financial ratios and the LTV and the net debt over EBITDA, the share buyback being, of course, more negative than acquisitions when it comes to the financial ratios. Operator: The next question is from Neil Green, JPMorgan. Neil Green: Just one, please. It's a bit of a follow-up from Jonathan's earlier on FX. If you go back to the Capital Markets Day, I think you used a euro-dollar FX assumption of 1.14 in the medium-term guidance. So just wondering if there's any change to that assumption, please, and whether the reiteration of the medium-term targets today could potentially be seen as an upgrade given what we've seen in the movement in the FX rate over the last 12 months or so, please? Fabrice Mouchel: Coming back to effectively the FX, the FX evolution as of now had a negative impact on 2028 AREPS in as far as -- as mentioned, today, the spot rate is more in the [ 118, 119 ] whereas what we had assumed during the Investor Day was more closer to [ 114 ]. So basically, what we've been doing is securing a level of FX above which we won't go, and therefore, we have limited our risk on the downside. We can still benefit from the upside. But all in all, the level at which we have hedged ourselves is above the 1.14 in terms of FX, meaning that there will be a negative impact on the FX compared to the 2028 guidance that was given. By the way, there would be another mechanical effect, a negative effect, which is the one that I've already mentioned for 2026, which is the lower level of indexation. And just to give you an insight, so we were at 1.4% indexation contribution for 2025, and we expect to be closer to 1% in 2026. So these are the 2 elements that might impact 2028. But all in all, we expect the trajectory that we have presented in terms of recurring results to be still aligned with the Platform for Growth targets. And in particular, this is consistent with the priorities that Vincent has reminded in terms of leasing, leasing, leasing because in the end, this growth will be coming from the leasing activity, the like-for-like growth that we will be able to generate out of our assets. Operator: And the last question is from Rahul Kaushal, Green Street. Rahul Kaushal: My first question is on the investment market. How much appetite do you see across various investment markets? And more specifically, what -- I guess, were the differences you see across various markets? And maybe if you can specifically touch on Germany there. And what is the spread in terms of cap rates between your ask and what you're seeing from interest from investors? Vincent Rouget: Thanks, Rahul. To answer your question on the spread, I mean, we are transacting. So we are transacting at values we are comfortable transacting to in line with our valuation. So in the end, we don't see so much of a spread. As we often mentioned in the past, some noncore assets we are disposing are core assets for other acquirers given the very high quality of our portfolio. And this is one of the reasons why despite, I would say, an overall difficult investment market, we managed to progress on disposals at pace and at scale because we've been one of the most active player in the market on the disposal market over the last year-end change. So I would say in terms of investor velocity, obviously, the Spanish market is showing quite substantial liquidity and the diversity of investors and buyers. So this is one of the strong markets, investment markets in Europe. We see some transactions in the U.K. market as well where you see some liquidity. We've transacted in Germany. So it's quite widespread overall. And interestingly, Fabrice mentioned it as well as part of his presentation, we are seeing some real mark of interest on the premium end of the mall sector in the U.S. The financing markets are wide open over there for senior credit, which is pricing at tight spreads. There's a lot of appetite and demand from debt investors from that perspective. It feeds into the retail market and the quality mall market as well or for some large-scale mixed-use type of properties with a very substantial quality retail component, which have been trading, let's say, in the 5% to 6% cap rate area over 2025. So we see encouraging signs of a strong return of investment market in the U.S. as well. Okay. I believe we do not have any more questions. Thank you. Thank you, everyone, for joining us for this presentation and the Q&A session, and we're looking forward to speaking with you very soon. Fabrice Mouchel: Thank you. Bye-bye. Vincent Rouget: Bye-bye.
Trond Johannessen: Good morning, and welcome to this presentation of Pexip's fourth quarter results. My name is Trond Johannessen, and I'm the CEO. Together with me here at Lysaker today, I have our CFO, Oystein Hem; and our Chief Revenue Officer, Asmund Fodstad. Together, we will take you through the highlights of the quarter and what we are focusing on going forward. The standard disclaimers apply as usual. First, a short overview of Pexip for those new to the company. Pexip was founded in 2012, and currently, we operate in 25 countries across the globe. We are a specialist video conferencing and infrastructure company focusing on interoperability and secure and custom meetings. We do software only delivered as a software or software delivered as a service. Pexip has unique and established relationships and partnerships with the leading companies in our industry. We complement and enhance their solutions and do not generally compete with them. Our customers are mainly large organizations in both the private sector and the public sector that have complex needs when it comes to video collaboration. The financial performance is strong and has been continuously improving over the last quarters. Now, to the highlights of the past quarter. Our annual recurring revenues, ARR, grew with USD 8.8 million during the quarter, and this gives us an ARR base of $131 million leaving Q4. This is the top end of the updated Q4 guiding we gave you in December. In Q4, we saw a significant improvement in the growth in Connected Spaces as a result of a couple of large deals that closed in the quarter. In our Secure and Custom business area, the positive development continues, driven by increased awareness around the need for secure and sovereign communication solutions. In Connected Spaces, we also see solid progress on our solutions for native rooms and the launch of Connect for Google Meet hardware in Q4 has been a success, both technically and commercially. EBITDA came in at NOK 94.2 million in the quarter and NOK 316 million for the full year. Free cash flow was NOK 71.9 million in Q4 and NOK 354 million for the full year. If we look at this Q4 performance in the context of the last 12 months, we see an accelerated development on all key parameters. Our total ARR continues to grow, and year-over-year, the growth rate was 16%. Our 12-month rolling EBITDA reached NOK 316 million, which is a 53% improvement since Q4 last year. This corresponds to a 26% EBITDA margin. And finally, the free cash flow in the last 12 months of NOK 354 million is 80% higher than at the same time last year. We take this performance as evidence that we are operating in attractive markets with relevant products and a strong market position. Pexip has 2 main solution areas. Pexip Secure and Custom is privately hosted video meetings that give complete privacy and data control with the desired level of customization. Pexip Connected Spaces is about video meeting interoperability by enabling any meeting room to connect to any meeting platform. Now, a few words about each of these business areas. In Secure and Custom, we are targeting a segment of the video conferencing market that is largely unserved by the major players like Teams, Zoom, Google and Webex. We are catering to those organizations that have limitations with respect to use of global cloud platforms like Azure, GCP or AWS. And consequently, they have a need for their conferencing software to run in controlled IT environments, either self-hosted or in private or sovereign clouds. This is a fast-growing market as a consequence of the geopolitical situation and the need to control data. Data sovereignty is increasingly relevant, in particular in Europe. Significant investments are being made in building sovereign IT infrastructure and solutions in many countries. Pexip has a unique position in this growing market with a modern and future-proofed solution that has the flexibility to be integrated and customized to the needs of the customers, while at the same time, being certified and tested to the highest standards in the market. Again, in this market, Pexip's offering is a secure video meeting platform that can be used exclusively or alongside, for example, Teams or Zoom. The solution includes security features such as tailored user authentication, clear meeting classification labeling and complete control over what data is stored and where. Integrating with chat is also an option. The Pexip platform can be installed in all relevant IT environments and gives complete control to the customers as no data needs to be shared with any external third parties. The secure meeting can easily be booked through the Outlook calendar or started through a chat session, exactly the same way as for Teams meetings. We're now starting to see that large organizations deploy more than one video meeting solution, and Pexip is very well positioned as a secure meetings alternative. Now to Connected Spaces. Here, we have basically completed the any-to-any vision and really deliver on the promise. In close partnerships with Google, Zoom, and of course, Microsoft, we provide the most comprehensive suite of interoperability solutions available in the market. In Q4, we launched a brand-new Connected Spaces product named Pexip Connect for Google Meet hardware. With this new product that we have co-developed with Google, all meeting rooms that have Google Meet hardware can now connect to Teams meetings with excellent quality. The market interest and resulting uptake is strong, and we have closed close to USD 1 million in new ARR on this product during Q4 alone. Now, let me leave it to Asmund for a more detailed sales update. Åsmund Fodstad: Thank you, Trond, and good morning, everyone. Pexip delivered a strong fourth quarter, reinforcing our momentum across both Secure and Custom and Connected Spaces. For Secure and Custom, Pexip added USD 2.9 million in ARR and reached USD 56.3 million for the end of the quarter. It's a solid 25% year-over-year increase. Growing focus on sovereign IT solutions across Europe strengthened our position. And our solutions for defense, government and healthcare continue to be key contributors to our momentum in Q4 and beyond. In Connected Spaces, Q4 ended as an exceptional strong quarter for us. ARR grew by USD 5.9 million, reaching USD 74.7 million, a solid 10% year-over-year increase. Growth in this segment is fueled by major customer wins as organizations transition across video platforms and rely on Pexip to ensure a seamless, consistent user experience. Let's look at a couple of wins. This quarter, we had so many large wins that we decided to share more of them with you and as well address the commonalities that strengthen our relevance and competitive position. So, across our global wins in the last quarters, we see 4 growth drivers that contribute to our success. Number one, the acceleration of sovereign IT solutions and the increasing need for data control. Governments across Europe, the Middle East and Asia are increasingly selecting Pexip as their standard for secure internal and cross-agency collaboration. Let me just use a few larger win examples. A central European state IT provider now powers all intergovernmental communication with a self-hosted sovereign Pexip solution. In Southeast Asia, the Ministry of Defense of a leading nation now powers all critical collaboration with a modern, integrated complete collaboration solution from Pexip. The second trend, successful adoption of Private AI. Pexip continues to demonstrate strong net retention in the Secure and Custom segment. A key growth driver is our Private AI offering, which is gaining significant traction across justice and healthcare sectors globally. A great example is one of the world's largest healthcare organization who now adopted Pexip Private AI resulting in a 30% upsell within an already major customer for Pexip. And thirdly, Pexip's unique position for classified and mission-critical environments. Pexip secured multiple wins across classified networks in Europe as well as deployments at the highest U.S. impact classification level IL-7, underscoring our unique suitability for sensitive environments. A couple of large wins here as well. A Nordic nation now powers all their classified and above communication with Pexip solutions across intelligence agencies, Ministry of Defense and National Security. And a U.S. IT provider for defense, intelligence and national security environments is now enabled with Pexip at Impact Level 4 and above. And remember, Pexip is the only Microsoft certified vendor at IL-4, 5, 6 and 7 that can meet the strict security regulations of the U.S. government. And lastly, interoperability as a strategic differentiator. As enterprises and government institutions shift technology platforms, Pexip's ability to deliver a consistent user experience remains essential. And recent wins prove our relevance and long-term competitive strength. A couple of large wins. One of the world's largest technology companies now uses Pexip for Google Meet across thousands of devices and meeting rooms worldwide, as they changed the video technology platform to Google. Another example is one of the world's largest biotech companies who have used Pexip Connect standard for years and now transition to Pexip solution for their native rooms, as they have changed the technology for devices in their meeting spaces. These 4 drivers are core to what makes Pexip unique, and they explain why we continue to win customer after customer in both Secure and Custom and in Connected Spaces. And lastly, I wanted to point out, as we came into this year with a solid pipeline across both business areas, we expect sustained strong traction in 2026 and beyond. And with that, I will hand over to Oystein for the financial details. Oystein? Øystein Hem: Thanks a lot, Asmund. For annual recurring revenue, as Trond mentioned, we increased our growth to 16% overall, up from 12% out of Q3. This is a combination of continued strong growth in Secure and Custom at 25% per year and Connected Spaces having a great quarter, delivering 10% growth year-on-year. The great growth come from customers in Enterprise, Government, Healthcare and Defense, and in particular, from the Americas. In terms of net retention and new sales, Connected Spaces saw an increase of 8.6% in the quarter, driven by strong new sales. The improvement compared to previous quarters was in particular from a couple of large customers that closed in the quarter. Secure and Custom continues to see strong growth, delivering 5.4% in the quarter and from a combination of strong new sales as well as positive net retention. Churn was slightly higher this quarter, as we saw a low renewal rate for support contracts in Asia that had an impact on churn overall. Such customers are a small part of our ARR base, hence, we expect this to be more of a onetime event. In terms of the P&L, recognized revenue came in, in line with last year. This is mostly due to the 10% decline in the U.S. dollar to Norwegian kroner exchange rate impacting our software revenues as well as a software deal slipping from Q4 and being delivered in Q1 of 2026. In U.S. dollar terms, revenue growth was 10%. For the year, revenue growth is in line with the ARR growth going into this quarter, while the contracts closed in Q4 will have revenue impact from Q1 and onwards. EBITDA increased in the quarter, benefiting from the same currency development, as it also reduces our costs. And for the year, we came in at an EBITDA margin of 26%, up from 18% in 2024. And the sum of our ARR growth and EBITDA margin is now at 42% for the year versus our long-term ambition of more than 40%. On costs, they were slightly down compared to Q4 of last year. Non-share-based salary expenses are down NOK 11 million, while share-based compensation is up NOK 9 million due to the share price increasing meaningfully during Q4. And other OpEx was down NOK 3 million. Looking at the year overall, Pexip increased our revenues with NOK 110 million and managed to convert 100% of that into incremental EBITDA. And this really shows the scalability of our software business, combining double-digit growth with good cost control. The EBITDA of NOK 316 million resulted in a free cash flow for the year of NOK 354 million, helped by a strong Q4. Q4 came in with a free cash flow of NOK 72 million, an increase of NOK 51 million compared to Q4 of 2024, with most of the improvement resulting from a better working capital development. Looking at the rest of the P&L, depreciation is in line with previous quarters and continues to be down year-on-year, while net financials is down compared to Q4 of 2024 due to lower gains on foreign exchange differences. In total, our profits before tax came in somewhat above 2024 with NOK 87 million. And to summarize the year, we grew revenues with 10% and had no significant changes to either of the cost categories above EBITDA. Depreciation is NOK 26 million lower, and hence, our EBIT margin has crossed 20% for the first time and came in at 21%. Lastly, an update on reporting. Pexip is currently reporting our annual recurring revenues in U.S. dollars as that is the primary currency we use with our customers. To make reporting more consistent and remove noise from currency fluctuations, we intend to consolidate all financial reporting using U.S. dollars in 2026, starting from Q1. We will provide pro forma historic figures for 2023 to 2025 in April, before the first report in the new reporting currency comes out in May. And with that, I hand it back to Trond. Trond Johannessen: Thank you, Oystein. Yes, looking good. Well, looking ahead, we have described earlier that we maintain a positive market outlook based on the key trends we see in our markets and the unique technology, strong market position and the solid industry partnerships we have. The expectation now is that we will end Q1 with an ARR in the range of USD 133 million to USD 136 million compared to the USD 131 million we had leaving Q4. This expectation reflects that the positive trends we have seen over the last quarters, they are expected to continue or even accelerate. The financial ambition we have is to consistently deliver above Rule of 40 performance across ARR growth and EBITDA margin. And the last 12 months, as Oystein mentioned, we were at 42% on this parameter. Now to capital distribution. Pexip's dividend policy is to distribute 50% to 100% of free cash flow. For the fiscal year 2025, we recommend a dividend of NOK 4 per share, up from the NOK 2.5 we distributed last year. As for last year, this total dividend is a combination of ordinary and extraordinary dividend, 3 plus 1. As always, this recommendation is subject to AGM approval in April with payment likely to happen in May. We believe that even with this sizable dividend, the company maintains a solid financial position and the ability to go after both short-term and long-term growth opportunities. Finally, before we go to Q&A, our AGM will be on April 17, and the Q1 presentation is planned for May 5. Now, Q&A. Welcome back my friends. Øystein Hem: We'll start with the questions from the analysts that are with us live, and we will start with Jorgen Weidemann from Pareto. Jorgen, can you hear us? Jørgen Weidemann: Yes, as always. Congratulations on yet another solid quarter. So if I may start with your increase or your guidance on ARR for the next quarter, on the midpoint that assumes $3.5 million ARR growth, which is more or less in line with the performance you saw earlier in '25. And -- but you did increase guidance quite a lot going into this quarter. So I was just wondering, could you elaborate a little bit on what sort of contracts that made you lift guidance or actually made the Q4 2025 ARR so much better than what you expected in Q3 earnings call? What sort of contracts those were? And also, what sort of visibility you have on guide or on ARR guidance when you guide the next quarter, for example, now into next quarter? Øystein Hem: Absolutely, Jorgen. So we try to give a -- the most realistic range that we see and with our best estimate as we stand here now being the midpoint of the range. And then, in Q4, in particular, we work with a number of large deals, and when, some of those hit and several of them land in the same quarter, that has a meaningful impact on the ARR development. And so instead of doing -- I think our midpoint was around $4 million, we delivered $8.8 million, which is obviously a significant beat in terms of incremental ARR. We always, in all quarters, work with large contracts. But then, also the larger the contract is the more difficult it is to make a meaningful range with sort of the outcome with it inside or outside. So there are at times sort of opportunities to go above the guiding range. But I think if you look at our track record for the past 12 quarters or so, we've been fairly consistent in landing roughly where we think we're going to land. Trond Johannessen: And commenting on your question around the midpoint, 3.5% on the Q1 guiding, is meant to reflect sort of a positive view from our side as this is -- the midpoint is above what we delivered in Q1 last year, which I think was 2.5% or -- so we are kind of quite a lot, so Q1 is normally not a very strong order intake quarter. But this year, as you can see in the guiding, we are kind of seeing a more positive Q1 than we delivered last year. Jørgen Weidemann: Great. And then also, if I may ask about costs. Once again, costs came in below our expectation, which obviously is good, but you keep the number of employees stable. And could you give some high-level reflections on when you believe you'll hit a size that makes the non-sales organization ripe for extra resources? Trond Johannessen: Yes. We're constantly reviewing the need for people in all parts of the organization. We are investing in technology development. We are investing in sales resources where that is needed. And there -- I think we have said that we think we will leave this year with maybe around 300 employees, which is up a little bit from where we are now, basically continuing to fine-tune, continuing to invest where needed, but also look at reductions where we see that being appropriate. So I think possibly the mix of employees and where we invest and where we reduce will give sort of the net will be an increase, but not a huge one. Jørgen Weidemann: Okay. Understand. And then finally, if I may. France now intends to ditch Teams in its government organizations and part of Germany has done the same earlier. So I was wondering if you could speak a little bit about changes you see in secure or geo-fenced video conferencing, and how you work to win contracts in situations like these when large countries are making such significant changes? Trond Johannessen: I can start, and Asmund, you can fill in. But in general, it's a very positive development for Pexip, the fact that the countries in particularly in Europe are seeing a need for not always replacing 100% the U.S. cloud platforms, but having something in addition to have backup, to have business continuity, to have an alternative to a fully U.S.-based infrastructure. So you see some countries that are building their own. You see other countries that are kind of taking other approaches to meeting these requirements. But the most important thing is the total market is growing. And then, Pexip has a pretty unique position on the video side here with our video engine and video platform that nobody really can match when it comes to the technical capabilities around catering to all endpoints, bringing meeting rooms into the mix, solving all the more complex use cases beyond just point-to-point PC-to-PC communication. So I think you will see that Pexip will be complementing some of the kind of more basic video solutions in many of these sovereign solutions that are popping up all over. And we have a lot of discussions these days in many countries around how Pexip can support this development. Åsmund Fodstad: Yes. I can add because I just came out of a meeting with one of the biggest ministries in France in Paris yesterday, and it basically confirms what you're saying. We have a very strong position with them. They might be forced into solutions on the desktop side, but again, just speaks to the relevance of sovereign solutions where they have complete control of the data. And then, it's hard for us to like what's really going to be the endgame here from a geopolitical standpoint. But all in all, this is very good news for Pexip. Øystein Hem: Also, I think we have plenty of good examples that commercial off-the-shelf software tends to outcompete and source build-it-yourself solutions over time. But of course, customers will try different venues as they go along. Thanks a lot, Jorgen. Then, we will move on to Markus Heiberg from SEB. Can you hear us, Markus? Markus Heiberg: Yes. So first one is on the Secure and Custom opportunities are obviously vast, but you have relatively stable growth quarter-over-quarter. When do you expect to see a sort of step up in that? Or do you expect to be at this pace? That's the first one. Trond Johannessen: I think in dollar terms, the percentages get more and more difficult to kind of match as the numbers get bigger. But in general, I think we have seen an acceleration in the dollar growth quarter-over-quarter in the Secure and Custom area. And these are, as we have also said sometimes before, processes that do take a little bit of time. Typically, you can have 18-month sales cycles in the public sector when it comes to changing platforms, replacing or adding to these complex solutions. So we think it will be a stable development steadily, sort of increasing with sort of at least in dollar terms increasing quarter-by-quarter growth in Secure and Custom. Markus Heiberg: All right. And then, maybe you can elaborate a bit more on the churn you saw in Secure and Custom this quarter is a bit higher than previous quarters. Øystein Hem: Yes. So as I commented on, the underlying development is fairly similar to previous quarters. Then, we did see an increase in churn for support contracts in Asia, where we've had a somewhat increase over the past couple of years on perpetual customers within Secure and Custom. There, they buy perpetual software. So there's -- that's not recurring revenues, but they also buy support contracts that are subscriptions, which is part of ARR. We did see an increase in churn on those. That had actually a meaningful impact on the total churn that we saw. And one, that's a very small part of our overall ARR base, as you can see from the share of revenue overall in APAC. And so we -- I do consider that somewhat of a one-off. And then, we are looking at how we can counteract that by making sure that we have multiyear commitments from customers when they're starting with those type of platforms. Åsmund Fodstad: And it's also been also kind of adapting to the HP partnership, where this is the model that they've been selling into Asia. And of course, we are trying to then just be complementary to them and make sure that we get into these customers. So we do also see a potential upside future here with these clients, but this hit us in Q4. Trond Johannessen: But generally, very, very sticky, the business we have in Secure and Custom. When you have implemented Pexip as a Secure Meetings solution, we have seen very few examples of organizations that are -- that replace us with something else. Markus Heiberg: And the final one for me is maybe on AI, and how you think about that across your offering now with a lot of new tools being released over recent months and the whole software sector is rethinking opportunities and risks, I would say? So how have you been thinking about this lately? And do you see any risk in, for instance, interoperability software that, that could be an area where, yes, things will change? Trond Johannessen: So I think the headline here is that we see more -- we see a lot of opportunities with AI for Pexip. We see the need for private AI solutions, the fear of data being lost, data being misused by large -- from large organizations that would like to have AI functionality, but that are afraid of what happens to the data. So we get inbound calls almost on a daily basis on this topic. So the way we provide AI in a private controlled context is really in demand these days. And that will continue to grow. And we see the upsell that was mentioned today by Asmund, it was a 30% upsell on an existing customer because they deploy AI functionality into their meeting solution. And then, to your second part of your question, can Pexip be replaced by AI? Obviously, anything could happen. But on the interoperability side, it's difficult to see how that would happen. A lot of the -- most of the APIs and SDKs that are being used to provide the interoperability solutions we have are not really well documented and available externally. And second, it has to do with certifications and approvals and partnerships with all these large technology companies, Teams, Zoom and so on and -- Google and so on, right? So even if AI would be able to make a solution, it wouldn't necessarily be able to be used because of the blocking or lack of approvals from one of these large organizations. So in that area, not particularly concerned. When it comes to can we use AI to more quickly create an alternative to Pexip in the market because you use AI to code faster or make solutions faster than before, obviously, but we can do the same, right? So we also use AI actively to bring technology to the market faster and be more competitive in that respect. So I think it's -- at least it's a balanced picture and not something that we're losing a lot of sleep over these days. Øystein Hem: Thanks a lot, Markus. Then, we will move over to e-mail, where we received a question from an investor on how is the release of the interoperability solution between Microsoft Teams and Google Meet hardware impacting Pexip? And so Pexip launched a product for Google Meet hardware in October, where we provide a premium interoperability between the Google Meet hardware device into a Microsoft Teams Meeting. That was -- Google and Microsoft introduced a direct guest join alternative now in February, which is the same sort of base level interoperability as you have with, for example, Zoom Rooms into Microsoft Teams or Teams Rooms into Microsoft or Teams Rooms into Zoom. So with this, our Google offering is in the same way as a -- our offering for Zoom Rooms, a premium interoperability solution that will have the sort of key features that you require so that your video room works well. But then, there is also a basic option for those that don't really have a lot of meetings on other platforms. So we think that we will have a good competitive position on Google Meet hardware as well, and then, we've enjoyed the first quarter of being the only solution, but that was never the long-term picture. Åsmund Fodstad: And to quote Google themselves, they referred to Pexip as the premium solution, right? So we have good -- still good traction with those opportunities. Øystein Hem: That concludes the Q&A session for this quarter. And thank you for watching, and see you again in 3 months. Åsmund Fodstad: Thank you. Trond Johannessen: Thank you.
Operator: Good morning. Welcome to the Sigma Foods Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. A replay will be available on Sigma Foods Investor Relations website following the conclusion of today's event. I will now turn the call over to Hernan Lozano, Sigma's IRO. Hernan Lozano: Thank you, operator, and good morning to everyone joining us today. Before we begin, please note that today's discussion will include forward-looking statements. These statements are based on currently available information, expectations and assumptions, which are subject to risks and uncertainties. Actual results may differ materially. Sigma Foods undertakes no obligation to update forward-looking statements. It is my pleasure to participate in today's call together with Rodrigo Fernández, Sigma's CEO; and Roberto Olivares, Sigma's CFO. Our agenda today is straightforward. Rodrigo will provide a strategic and operational overview. Roberto will then take you through the financial results and 2026 guidance. We will conclude with a Q&A session. With that, I will turn the call over to Rodrigo. Rodrigo Fernández Martínez: Thank you, Hernan, and good morning to everyone. I'm pleased to join you today for my first earnings call. I also look forward connecting with many of you in person through a range of forums as we step up the investor engagement agenda initiated last year. I want to begin by acknowledging the exceptional work of our more than 47,000 members worldwide. Their execution, resilience and commitment enabled a strong finish to 2025 across regions and categories. Let me highlight a few consolidated performance points. First, our revenue surpassed $9 billion for the first time, reaching $9.3 billion in 2025. Second, we delivered on our EBITDA guidance of $1 billion, making 2025 the second consecutive $1 billion year. And third, our balance sheet remains strong, supported by robust investment-grade credit ratings. A key advantage continues to be Sigma's diversified business model across regions, channels, brands and categories, which helped us navigate dynamic market conditions. Looking at performance by region. Mexico delivered outstanding results driven by commercial effectiveness and robust execution. Retail channels remained the primary growth engine, consistent with trends throughout the year. Dairy-led category performance and value brands gained momentum across income segments. In Europe, our team executed exceptionally well as we navigated temporary capacity constraints stemming from the Torrente flooding, particularly early in the year. We protected market presence and customer service levels by relocating production across our network and trusted partners. Importantly, underlying profitability in Europe continues a clear upward trajectory. Comparable EBITDA surpassed $100 million for the first time since 2021. We also advanced our strategic European agenda by restructuring the Fresh Meat business in Spain. We signed an agreement that further sharpens our focus on branded products and improves pork supply traceability. In the U.S., the year was marked by continued penetration of Hispanic brands in mainstream channels, driven primarily by raising performance in key national accounts. Market dynamics remained fluid as consumers adjusted shopping patterns across channels. In Latin America, profitability continues to recover gradually with sequential EBITDA improvements driven by operational normalization effects. While cost pressures persisted in some countries, we're encouraged by continued operational discipline. Shifting gears to our strategic priorities. Our purpose, delicious for better life sets the direction and our strategy turns into action, grounded in 4 core priorities. First, grow and defend the core. We will continue doing what Sigma does exceptionally well on a large scale, serving consumers with trusted brands, strong execution and a multichannel commerce presence. Second, developing new sources of revenue. This includes core adjacent innovations and disruptive opportunities to the growth business unit, which is already demonstrating strong scaling potential in initiatives such as high-protein snacking and direct-to-consumer concepts. Third, strengthening the organization. This pillar is about building the culture and capabilities that help each team member perform at their best. It also includes investing in systems, modernization, marketing and consumer-centric innovation platforms like the studio. And fourth, exploring the future. We're looking ahead to longer-term opportunities in food science, responsible protein and consumer well-being priorities that will shape Sigma's next era of growth. Looking ahead into 2026, we expect to grow co-branded volume supported by an improving raw material environment and solid execution. We also strive to expand margin driven primarily by stabilization in protein markets and continued profitability improvement in Europe and we will deploy CapEx high-return projects, capacity expansion in the Americas and capacity recovery in Spain. In sum, we anticipate another year of solid performance. In this context, I'm pleased to inform you that the Board of Directors approved our plan to propose at our Annual Shareholders Meeting, 2026 cash dividends totaling $150 million payable into installments. Dividends will continue to be a key component of our capital allocation strategy. With that, I will turn the call over to Roberto. Roberto Rolando Olivares Lopez: Thank you, Rodrigo, and good morning, everyone. I will walk through Sigma's financial performance and 2026 guidance. In the fourth quarter of 2025, Sigma Foods revenues were $2.5 billion, up 12% year-on-year and 2% sequentially. This was driven by favorable FX translation, selective price actions and a stable volume. In Mexico, revenues increased 21% in U.S. dollars and 10% in Mexican pesos, supported by selective pricing and a solid performance led by our dairy category. European revenues were up 11% in U.S. dollars and 2% in euros. A healthy top line figure reflected branded volume growth and successful allocation of production from the plant that was flooded in 4Q '24. Revenues in the United States and Latin America increased 1% and 2% year-on-year, respectively. For the full year, revenues reached $9.3 billion, up 4% year-on-year. Importantly, 2025 volume held steady at a record high level despite pricing actions taken to mitigate higher raw material costs. For the fourth quarter, EBITDA was $278 million and comparable EBITDA was $284 million, up 34% year-on-year, driven primarily by Mexico and Europe. For the full year, comparable EBITDA was $1 billion, in line with guidance and the second highest in Sigma's history. Moving on to key cash flow items for the year. Net working capital posted $64 million recovery in 4Q '25, driven by seasonality. For the full year, we invested $208 million, primarily due to higher raw material prices. CapEx was $159 million in 4Q '25 and $362 million for the full year, up 47% from 2024. This reflects capacity expansions in Mexico and the United States, replacement capacity in Europe and modernization of systems and infrastructure. Sigma Foods paid $35 million in dividends during 4Q '25 for a full year total of $119 million, aligned with Sigma's strong cash generating capacity. Sigma Foods ended the year with a solid financial position. Net debt was $2.7 billion, up 9% year-on-year, reflecting investments in net working capital and CapEx. Net debt-to-EBITDA was 2.5x, in line with our long-term target. We closed the quarter with $643 million in cash. Total liquidity, including committed credit lines was approximately $1.5 billion. We are currently exploring opportunities in the Mexican bond market to refinance 2027 maturities and further strengthen our debt profile. This financial strength allows us to continue investing with confidence. Let me now walk you through our 2026 guidance. FX conditions have been favorable in recent months. For planning purposes, we consider 2 FX scenarios: a currency-neutral base case using the 2025 average exchange rate of MXN 19.2 per U.S. dollar and an alternative currency-specific scenario using MXN 18 per dollar. These assumptions are intended to illustrate a reasonably range. We expect protein markets, particularly turkey to gradually trend downward from current elevated levels. As reference, year-to-date prices of turkey breast have decreased 12% and turkey thigh is flat. Volume is estimated to grow approximately 2% with improving trends across regions. Revenues are expected to rise by 4%, supported by mix improvements and balanced pricing actions designed to grow volume as raw material pressures ease. We expect EBITDA to increase 5% year-on-year, driven by all regions. In particular, Europe is expected to deliver double-digit growth in 2026. CapEx is estimated to increase approximately 27%, totaling $460 million. The year-on-year increase is mainly explained by the planned investment for Torrente capacity replacement in Spain, covered primarily by insurance reimbursements received in 2025. With that, I will now turn the call back to Hernan for Q&A. Hernan? Hernan Lozano: Thank you, Roberto. We will open the line for questions. Please limit yourself to one question and one follow-up, so we can address as many participants as possible. Operator, please? Roberto Rolando Olivares Lopez: [Operator Instructions] Our first question comes from Rodolfo Ramos of Bradesco. Rodolfo Ramos: Congratulations on the very strong results. My question is related to your 2026 guidance. And I'm hoping you can help me here square the circle on your guidance, which seems maybe a bit conservative. I understand the sensitivity to the FX, and it's great that you included these scenarios for different currency levels. But just given how well volumes at top line behaved, particularly in Mexico and how some raw materials seem to be improving, I'm trying to gauge how conservative you are. Is it something that -- is it something to do with how you see volumes performing or the raw materials in '26? I don't know if you're also expecting anything incremental from the -- associated with the World Cup. So just trying to get us a better sense of what we've seen maybe this year and trying to get a little granularity on your guidance. Roberto Rolando Olivares Lopez: Rodolfo. This is Roberto. Thank you for your question. Yes. So maybe I think it will be good to talk a little bit about the assumptions, the main assumptions in the different regions. In general, we see volume growing in all regions. In the case of Mexico, the retail is expected to grow low single digits. And we see better dynamics that we have -- as we saw in the last quarter of the year in the dairy segment, particularly in the yogurt and cheese. We see a recovery in the foodservice channel in Mexico coming from more clients, but also penetrating those actual clients and some additional growth coming from the World Cup, particularly in the cities where there were going to be some matches. Our main focus in the case of Mexico, particularly in foodservice coming from a year 2025, where we have a lot of inflation coming from raw materials is to focus on volume. So in the case and to your point that there's going to be less pressure coming from raw materials, maybe is to focus and to balance volume in the long run. In the case of Europe, we are seeing some volume growth coming mainly from branded core segments and better mix, particularly in Spain as we focus on initiatives to foster higher-margin portfolio. We also see better raw materials, particularly right now in Spain due to that at least in the short term, there's some export restrictions in Spain due to the ASF, the African swine fever that's where -- that is happening right now in Spain. In the case of the U.S., we expect a volume growth coming mainly from Hispanic brands as we continue penetrating the mainstream channels, and we look for more clients. We do expect a slight margin increase as well in the U.S. coming also from better mix, particularly getting into the underpenetrated categories. We -- as you know, we are the #1 hot dog in the U.S., but there's still some room to go in terms of ham and poultry and other categories. And lastly, Latin America in terms of volume is where we see more growth for next year. We're seeing mid-single-digit volume growth in Latin America, particularly coming from a soft year in 2025, where we have some supply chain disruptions, and we do expect to capitalize on those corrections during 2026. Rodrigo Fernández Martínez: And Rodolfo to complement, when you think about the raw materials, you might see, for example, turkey getting a little better in the short term. But at the same time, you see things like the winter storm that happened in the U.S. recently and the production of turkey for the last week was even smaller. So with raw materials, you always have to be thinking what could happen and be prepared for that. And I would say that even though -- even if the raw materials go down, we have to see or the way we see things, it's from 2 perspectives. One, it's in the short term and in the long term, and we need -- and we think and we need to deliver on both. So when there is a big cost increase, we definitely think about marginal contribution per unit, and we want to maintain that, and we usually increase prices to make sure that happens. But for example, last year, we increased prices to offset a cost of more than $400 million. And we also have to think of the consumer in the long term. And with that in mind, like Roberto said, we also want to think about volume to make sure that we deliver in the short and the medium and the long term. Operator: Our next question comes from Renata Cabral of Citi. Renata Fonseca Cabral Sturani: My question is regarding the U.S. We are receiving several questions related to potential impact on GLP-1 on the portfolio of the company. Actually, as the company is exposed to protein, my expectation is actually that could help in the U.S. So my question is if the company is already seeing that or it's a trend that should increase in the future in terms of innovation. The company is focusing on that because of the trends naturally much more broadly in the U.S., I imagine and then in the other countries. Rodrigo Fernández Martínez: Thank you, Renata, for the question. Let me answer it from 2 timelines in the short term and in the long term. In the short term, definitely, GLP users come from fat and muscle and then the protein intake is going to play an important part of muscle preservation efforts. So we're well positioned to benefit of such trends of a high protein portfolio that we have within the company. And -- but in the long term, I talked at the beginning about 4 pillars for our strategy. And the last pillar, it's about exploring the future. And one of the things that we're looking in the future, too, it's responsible protein. And there are 3 things that we're looking for, for the long term. We want to make sure that we have platforms that taste amazingly because that's very important, delicious for a better life, it has to be delicious. Two is we want them to be a high-quality protein. So at the end, there are 9 amino acids that only come through food, and we want to make sure that our proteins have those 9 amino acids that the body needs to come from food. And third, we want to make sure that those products can be better for the environment. And I'm talking about CO2 emissions. I'm talking about water consumption. So at the end, we do see a trend in the short term, but we're also preparing the company for the long term thinking that this is going to be important going forward. Renata Fonseca Cabral Sturani: The second question, it's about Europe. If you can help us elaborate a little bit about the trends this year, especially because we will have a different base because of the transaction that the company announced in the end of last year. So what are the expectations in terms of especially EBITDA improvement, but any additional color on that would be helpful. Roberto Rolando Olivares Lopez: Renata, this is Roberto. Thank you. So in general, in Europe, let me talk briefly about trends that we're seeing. We -- last year, we saw branded volume growing across the different segments. We also saw a better dynamics in the pork market during the year, but mainly at the end of the year, as I explained, due to excess supply of pork in Spain given the export restrictions that Spain is passing right now due to the ASF. We announced the divestment of our slaughterhouse business by the end of last year, and we're in the process of getting all the authorization from the authority. We are planned to get those during the 1st Q of 2026. If that happens or when that happened, we're going to have a better alignment in terms of the focus on the core segments on branded products, particularly and also having more traceability or securing the traceability of our pork in Europe. Rodrigo Fernández Martínez: And if I can just complement very briefly on that -- this year, we had growth, as Roberto mentioned, on branded products, and we have very nice also control of SG&A. So at the end, we're in a position that now we can think about growth. We can think about how can we do better, grow more. We have been thinking about some innovations in different geographies, very focused. And what we like a lot about Europe, about trends in Europe is that it's a way to see into the future in some of the other geographies, what happens in Europe later on and happening in the U.S. and later on in Mexico and Latin America. So we're very happy and eager to have -- to find those innovations and make sure that they start in Europe and then they can continue in the rest of the company. Operator: Our next question comes from [ Enrique Moreo ] of Morgan Stanley. Unknown Analyst: I would just like to do a quick follow-up in the U.S. If you could just explore a bit how the channel outside the big retailers is performing and how you're seeing the market share trends in the whole portfolio or in the whole channel mix that you have would be very helpful. I ask that because we see a little bit of a mismatch in the consumer scanner data that we have on bigger retailers. So just to see a broader picture of what you're seeing in the U.S. and how you see your strategy on that market going forward as well? Roberto Rolando Olivares Lopez: This is Roberto. Let me first put some context. 2025 for the U.S. was the second highest EBITDA in U.S. history. And also the fourth quarter was a record fourth quarter for the U.S. In the U.S., we have, as you mentioned, 2 different businesses. We have what we call the national brand business, which is mainly our brand Bar-S and the Hispanic brands business. In the case of the Hispanic brands, we have been -- we used to sell mostly to independent or specialty retailers focused on Hispanic population. And we used to grow a lot in that segment. Last year, as let me say, migration policy change in the U.S., those segments started to have softer numbers. But we increased a lot last year, our presence in the mainstream channel with the Hispanic brands portfolio. And we reached the big retailers with our Hispanic portfolio, and that helped us a lot offsetting the lower consumption numbers in the independent retailers. In the case of our national brand business, our Bar-S brand, -- we -- I mean, last year, we have tough competition coming mainly from private label, but we're focusing right now on revitalizing the category through innovation. Rodrigo Fernández Martínez: Let me, Enrique, just go a little further on the last comment from Roberto. We're the largest in hot dog in the U.S., and we plan to maintain that. And what we want to make sure is that we have the best product cost in the market -- best quality product versus cost in the market. We want to be the ones that consumers think about and not necessarily on product level. And we're doing things to get that. So for example, in sausages, we're just launching a new package. And usually, you have 6 links in 1 package. But when you eat them, you don't need 6 of them. You might need 1 or 2. So we have the IEP for this package where you can have 3 separate pieces tied together in the same package. So you can open a third and just eat those 2 links and then open another third and so on. So at the end with that, we want to make sure that the cost benefit we're the best one. And with that, we hope to be growing and taking some share from private label in the coming time. Operator: Our next question comes from Andrés Ortiz of BTG Pactual. Andrés Ortiz: I would like to ask you about the tax rate we saw this quarter. I believe it was close to 45% and we are already past the Alpek spin-off. So I just want to understand what happened here? And what will be the correct assumption for 2026 for tax rate? Roberto Rolando Olivares Lopez: Andrés, this is Roberto. So the main difference in the tax rate in the quarter has to do with the FX gains or losses due to the fluctuation of the MXN in regard to 2026, particularly in terms of cash flow tax, we do expect to have a similar amount of tax payment during 2026 that we have on 2025. Andrés Ortiz: So it's -- so if we continue to see like this level of appreciation, we will continue to see that or... Roberto Rolando Olivares Lopez: If we continue to see what, I'm sorry? Andrés Ortiz: This level of appreciation of the MXN, we will continue to see this like large. Roberto Rolando Olivares Lopez: So yes. So if the Mexican peso maintains in this level, there should not be many difference. If it continues to appreciate, there could potentially be an effect on that. Andrés Ortiz: And if I could do a second question. Could you remind us like the effect that an appreciation of the Mexican peso has on the margins in Mexico and how it benefits or affects consolidated EBITDA? Roberto Rolando Olivares Lopez: Sure. So in terms of -- so we have 2 effects. The first one is the conversion effect. In terms of conversion, MXN 1 change versus the U.S. dollar impacts around $30 million to $35 million in conversion. Operator: Our next question comes from Juan José Guzmán of Scotiabank. Juan José Guzmán Calderón: Congrats on the results. A quick one on Latin America. It was probably the only division that didn't perform as well as the others this quarter. So can you tell us a little more about what's going on there, both from the production standpoint and price pass-through angles? Roberto Rolando Olivares Lopez: This is Roberto. Yes, in terms of Latin America, last year, we have some impacts, particularly in some countries of Latin America regarding supply chain disruptions coming from problems in raw materials and demand planning. We -- as we move through the year, we solve those problems, and we actually saw a sequential improvement in EBITDA through -- coming from the second quarter. We do expect those problems to be to -- I mean, those problems ended last year. We expect a significant better result in 2026 coming from Latin America. If you see, as I explained in my initial remarks, in guidance, we do expect higher volume in Latin America, mid-single digits, coming from solving those problems. Juan José Guzmán Calderón: And if I can ask a follow-up question regarding your guidance. Can you tell us what kind of specific assumptions or expectations you're dealing with when it comes to input costs specifically in your guidance? At first glance, it seems to us that you are not incorporating much in input cost reductions. For example, turkey coming down or you're kind of expecting a lower contraction in the cost of turkey. What are you dealing with specifically for your guidance? Roberto Rolando Olivares Lopez: Thank you, Guzmán, yes. So we do are expecting or we consider in our guidance that prices of raw materials, particularly turkey, gradually trend down in 2026. However, we have seen that those prices started to decrease, particularly turkey a little bit sooner than we expected. But we are -- as Rodrigo mentioned, we right now are focused on volume this year. So we will take into consideration what is happening with the FX and what is happening in raw materials in that formula in order to grow volume this year. Rodrigo Fernández Martínez: And then we have people doing revenue management. And as I mentioned at the beginning, we want to do both. We want to make sure that we can deliver on the short term and we can deliver in the long term. And the cost increase that we were able to pass last year was significant. And we will look at every single product in detail per month just to make sure that we can both maintain or grow margins a little, but at the same time, we can get some volume increases that with that, we can do more sustainable growth for the company for the medium and long term. Operator: Our next question comes from Fernando Olvera of Bank of America. Fernando Olvera Espinosa de los Monteros: I have 2 questions. The first one is related to Europe. I believe, Roberto, you mentioned before that you are expecting volume growth in Europe. Does that -- I just want to be sure if that includes the agreement with Grupo Vall. Roberto Rolando Olivares Lopez: Fernando, so in case of volume growth, it's coming mainly from our core segments in our branded categories. The agreement with Grupo Vall will make that we will divest or not consolidate our Fresh Meat business. If that happens, we are going to divest a part of portfolio that will improve margin in terms of EBITDA margin. But that means that volume -- I mean, we're going to reduce that amount of volume, but we should produce that amount of the base as well. Rodrigo Fernández Martínez: Exactly. So Fernando, we're not -- the restructure is not included in our guidance. Fernando Olvera Espinosa de los Monteros: And my other question is regarding your gross margin. I mean, considering that you're still facing cost pressure, I mean what was the driver behind the gross margin expansion this quarter? Roberto Rolando Olivares Lopez: Sure. So I mean, it comes mainly from pricing actions that we have done through the year. As Rodrigo mentioned in one of the answers, we -- this year, we confront close to $400 million of additional cost in the operation. So we have to increase prices in some regions significantly to offset that effect. As we move through the quarters, we have the reflection of those price increases. So that's the main focus or our increase in gross margin. Operator: There being no further questions, I would like to return the call to management. Hernan Lozano: Thank you, operator. And it seems that we have a couple of questions from our chat. So this question is coming from Froylán Méndez at JPMorgan. Thank you for your question, Froy. And the question is, how should we think about capital return to shareholders under the simplified structure? Can we expect a higher payout in the short term? What needs to happen? Sure. Roberto Rolando Olivares Lopez: Thank you, Froylán. This is Roberto. In terms of dividends, Sigma Foods will continue to our long track record of cash distribution to shareholders, supported by our strong underlying cash flow generation. As you know, we announced yesterday in the report that we're proposing to the shareholders meeting to distribute a total of $150 million of dividends this year to be paid into installments. So as we mentioned, this is important for us. We -- our dividends are aligned to maintain our long-term target of 2.5x net debt-to-EBITDA ratio. Hernan Lozano: So that was the first question from Froylán. And the second question is cost at the holding level. How should we think about this cost component going forward? Rodrigo Fernández Martínez: So thanks for the question. So Sigma Foods, it's a company that -- it's about food. So what we have today, it's more than 99% of what we have today is food. We think about food, we talk about food, and that's all we do. The structure that we have today is to manage the food business. So you shouldn't see a difference between Sigma Foods and Sigma that you used to see. If you think about years in the past, that was different, that was a difference, and it was about transformation. But the structure that we have today, we're just converged totally there. And you can think today Sigma Foods as a food company overall. Hernan Lozano: Thank you. So that concludes our Q&A section. I would pass the microphone back to you, Rodrigo, for closing remarks. Rodrigo Fernández Martínez: Thank you. I want to close by reinforcing a few key points. First, Sigma business is strong and resilient, powered by a diversified platform and team that consistently delivers under dynamic conditions. Second, our long-term strategy is clear. We're focused on defending the core, developing new sources of revenue, strengthening our organization and exploring the future of food. And third, we remain committed to profitable growth, operational excellence and continuous innovation. Finally, I want to thank our investors and partners for their continued support. We look forward to updating you on our progress next quarter, and thank you for your interest in Sigma Foods. Operator: This concludes today's conference call. You may disconnect.
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