Financial Data and Key Metrics Changes - Total revenue increased by 8% in 2025, with product revenue growing by 10% driven by global demand for innovative medicines [5][18] - Core EPS grew by 11%, aligning with full-year guidance [19] - Operating profit increased by 9%, with a core gross margin of 82% [18][19] - Cash flow from operating activities rose by 23% to $14.6 billion [20] - Interest-bearing debt is close to $30 billion, with a net debt-to-EBITDA ratio of 1.2 times [21] Business Line Data and Key Metrics Changes - Oncology revenues reached $25.6 billion, up 14% year-on-year, with Tagrisso, Imfinzi, and Enhertu contributing significantly [25][26] - Biopharmaceuticals revenue increased by 5% to $23 billion, with growth medicines outpacing declines from generic competition [38] - Rare Disease revenue grew by 4% to $9.1 billion, driven by neurology indications and global expansion [50] Market Data and Key Metrics Changes - U.S. market saw a 10% growth, while emerging markets outside of China grew by 22% [10] - China experienced a 4% growth despite losing Pulmicort to generics, maintaining its position as the largest pharma company in the region [10] - Europe accounted for 35% of Farxiga's total revenue, with patent protections extending to 2028 [22] Company Strategy and Development Direction - The company aims to reach $80 billion in revenue by 2030, with a focus on R&D investments in innovative technologies and new medicines [12][57] - Plans to strengthen manufacturing and R&D footprints in the U.S. and China to support growth [8] - Emphasis on diversification to mitigate concentration risk and ensure resilience against regional disruptions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum into 2026 despite known headwinds, including patent expirations and market competition [21][22] - The company anticipates a mid- to high-single-digit percentage growth in total revenue for 2026, driven by strong underlying business momentum [21] - Management highlighted the importance of continued investment in R&D to drive long-term growth beyond 2030 [12][57] Other Important Information - The company secured 43 approvals for its medicines across major regions in the last 12 months [6] - A second interim dividend of $2.17 per share was declared, with plans to increase the annual dividend to $3.30 per share in 2026 [21] Q&A Session Summary Question: Growth beyond 2030 and readouts in 2026 - Inquiry about the $10 billion risk-adjusted peak sales potential and the mix of assets contributing to this figure, as well as expectations for higher success rates following strong performance in the previous year [61] Question: Update on China - Request for an update on the 2026 outlook for China, including new launches and profitability compared to historical performance [62]

As the head of the finance department, do you look at all the things in this room and think this costs that amount of money, this costs that amount of money. >> Thankfully, no. I don't I don't when I think about cameras in general and what we, you know, when we first I'll give you a really prime example, the film cameras, when you thought about it, okay, are we building two.Are we building four. Are you building eight. Right.And and that's where I start to think about, well, what what makes the most sense f ...

Core Insights - The UK has experienced a slight downturn in R&D tax relief claims for the tax year 2023 to 2024, with a provisional estimate of £7.6 billion ($10.2 billion), representing a 2% decrease from the previous year [1] - R&D expenditure also fell by 1% to £46.1 billion ($62.03 billion) [1] Summary by Categories R&D Tax Relief Claims - The SME scheme saw a significant 29% reduction in tax relief claims, amounting to £3.15 billion, while the RDEC scheme experienced a 36% increase to £4.41 billion [2] - Overall, the number of R&D tax credit claims decreased by 26% year-on-year to 46,950, with the SME scheme facing a 31% reduction in claims and the RDEC scheme seeing a modest 5% drop [3] Impact on SMEs - There was a notable 45% fall in first-time claims from SMEs, attributed to lower relief rates and more demanding administrative requirements [4] - Concerns have been raised regarding the discouraging effect of recent changes on smaller businesses considering innovation investments [3] Larger Businesses and RDEC - Larger businesses have benefited from an increased share of relief at 47%, although the number of RDEC claims has decreased, but to a lesser extent [4] - The increased RDEC rate has made it more feasible for larger companies to undertake projects with higher financial certainty [5] Future Considerations - There are cautions against further changes that could undermine R&D investment, as recent reforms aimed at reducing error and fraud have had a positive impact [5] - HMRC has earmarked £2.4 billion for tax reliefs and expenditure credits for the creative industries for the fiscal year ending 31 March 2024 [5]

Financial Data and Key Metrics Changes - For Q4, the company recorded net sales of $251 million, up 6% sequentially and up 33% year over year [39][41] - Adjusted gross margin was 53.2%, up 80 basis points sequentially and up 430 basis points year over year [40] - Adjusted operating income was $49.8 million, resulting in an adjusted operating margin of 19.9%, up 160 basis points sequentially and up 1070 basis points year over year [40] - Adjusted diluted earnings per share increased to 40 cents, up from 26 cents in Q3 and up from a loss of 6 cents in Q4 of the previous year [41][42] - Net debt was reduced to $411 million, a decrease of 68% from $1.3 billion at the end of FY 2024 [42][43] Business Line Data and Key Metrics Changes - Infrastructure net sales for Q4 were $69.1 million, up 5% sequentially and up 75% year over year [16] - Data center net sales reached a record $50 million, up 16% sequentially and up 183% year over year [16] - High-end consumer net sales for Q4 were $35.4 million, up 10% year over year, with FY 2025 net sales at $147 million, up 17% year over year [22][25] - Industrial net sales for Q4 were $146.6 million, up 12% sequentially and up 21% year over year, with LoRa-enabled solutions recording Q4 net sales of $37.1 million, up 28% sequentially and up 205% year over year [27][28] Market Data and Key Metrics Changes - The company expects net sales from the infrastructure end market to increase sequentially, with data center applications leading growth [44] - The high-end consumer end market is expected to see slight increases reflective of seasonality, while the industrial end market is anticipated to decline due to seasonality in the IoT portfolio [45] Company Strategy and Development Direction - The company is focused on three core priorities: portfolio optimization and simplification, strategic investment in R&D, and driving margin expansion through operational leverage and AI [11][15] - The company aims to enhance profitability through portfolio optimization and leveraging AI for efficiency [15] - The company is prioritizing divestitures of non-core assets to improve balance sheet strength and operational focus [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, citing strong fundamentals and a favorable market environment [65] - The company anticipates continued growth in the data center segment despite temporary headwinds from the Copper Edge portfolio [70] - Management highlighted the importance of customer engagement and innovation in driving future growth [102] Other Important Information - The company achieved a significant milestone with the 5G Redcap certification in collaboration with AT&T and Qualcomm, positioning it for scalable solutions across industries [36] - The company is actively engaged with over 20 potential customers for its CopperEdge portfolio, indicating a strong interest in new applications [58] Q&A Session Summary Question: Can you expand on the Copper Edge portfolio and its future? - Management indicated that revenue for Copper Edge is expected to be below $50 million in FY 2026, with ongoing engagement with over 20 customers for various applications [56][58] Question: What is the outlook for the core business and growth visibility? - Management expressed confidence in the core business's growth trajectory, with expectations for continued sequential growth across various segments [62][65] Question: Can you provide timing on the upcoming revenue step change in the data center? - Management noted that while there may be temporary bumps in the Copper Edge segment, overall data center growth is expected to continue [70] Question: How is the company approaching portfolio rationalization? - Management stated that they are patient in their approach to rationalization, focusing on strategic synergies rather than distressed sales [76] Question: What is the outlook for LoRa and its recent growth? - Management attributed the strong growth in LoRa to customer focus and new product development, with expectations for continued year-over-year growth [102][156]