Financial Data and Key Metrics Changes - For the full year 2025, the company reported underlying revenue growth of 5.3%, with all three business units growing by over 5% [1][15] - Free cash flow increased to $840 million, a 52.5% year-on-year growth, enabling a $500 million share buyback program [3][26] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] Business Line Data and Key Metrics Changes - Orthopedics grew 7.9% on an underlying basis, with strong performance in hips and trauma, while U.S. knee growth improved following the launch of LEGION MS [8][9] - Sports medicine and ENT grew 7.3%, driven by double-digit growth in joint repair, surpassing $1 billion in revenue for the first time [12][13] - Advanced Wound Management grew 2.8%, with Advanced Wound Care growing 4.4% [14][15] Market Data and Key Metrics Changes - U.S. growth was 5.6%, other established markets grew 7.2%, and emerging markets grew 6.4% [7] - Excluding China, underlying growth was 7.2%, indicating strong performance in other markets despite challenges in China [16][17] Company Strategy and Development Direction - The company is transitioning to a new RISE strategy aimed at accelerating growth and improving returns, building on the previous 12-Point Plan [4][31] - The acquisition of Integrity Orthopaedics is expected to enhance the sports medicine portfolio and drive growth in biomechanical repair [33][35] - The company aims for more than 20% margin in orthopedics by 2030, supported by initiatives like the Ortho360 operating model [3][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth for 2026, with trading profit growth expected to be around 8% [4][28] - The impact of China VBP is expected to be less significant in 2026, with management anticipating a flat performance in greater China sales compared to 2025 [70][73] - The company is focused on innovation, with over 60% of growth in 2025 coming from products launched in the last five years [2][16] Other Important Information - The company achieved a 240 basis points trading margin expansion from 17.3% in 2022 to 19.7% in 2025, despite facing headwinds from VBP in China and inflation [5][19] - The company plans to maintain a dividend ratio of 35%-40% and consider buybacks subject to leverage targets [27] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and the impact of new product launches? - Management indicated that growth will be driven by multiple sources, with innovation contributing significantly, and expects around 6% growth for 2026 [48][49] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and they expect a balanced portfolio to drive growth without the previous VBP drag [63][74] Question: How does M&A impact bottom line growth? - Management emphasized that M&A, like the acquisition of Integrity, is aimed at scaling in areas of strength and will complement existing products, enhancing overall growth potential [66][68]