Financial Data and Key Metrics Changes - The company reported a strong finish to 2025, achieving underlying revenue growth of 5.3% and free cash flow of $840 million, a 52.5% increase year-on-year [1][3] - Trading profit for the full year was $1.2 billion, reflecting a 160 basis points margin expansion to 19.7% [17][20] - Adjusted earnings per share grew by 21% to $1.02, driven by a $500 million share buyback [18][19] Business Line Data and Key Metrics Changes - Orthopedics grew by 5.1%, Sports Medicine and ENT by 5.2%, and Advanced Wound Management by 5.6%, all on an underlying basis [15][16] - The joint repair business surpassed $1 billion in revenue for the first time, driven by products like REGENETEN and Q-FIX [11][12] - Advanced Wound Management grew 2.8% in Q4, with Advanced Wound Care growing 4.4% [13][14] Market Data and Key Metrics Changes - U.S. growth was 5.6%, other established markets 7.2%, and emerging markets 6.4%, with underlying growth excluding China at 7.2% [7][16] - The company expects continued growth in orthopedics, sports medicine, and Advanced Wound Management, particularly in AWC and AWD [27][28] 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][34] - The company plans to increase R&D investment and maintain a robust product launch pipeline, with expectations of launching 16 new products in 2026 [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving around 6% organic revenue growth in 2026, with trading profit growth expected to be around 8% [20][29] - The impact of China VBP on joint repair is expected to be less significant moving forward, with management anticipating a bounce in sports business in China [72][75] - The company aims to maintain a focus on organic growth and capital allocation towards high-value clinical segments [68][69] Other Important Information - The company achieved a 15-fold increase in free cash flow and a 170 basis points increase in ROIC from 6.6% to 8.3% [6][25] - The company expects to face extraordinary headwinds in 2026, including inventory revaluation and changes to reimbursement in the U.S. AWM business [20][21] Q&A Session Summary Question: Can you break down revenue guidance for 2026 and expectations for market growth? - Management indicated that 2026 revenue growth is expected to be around 6%, with contributions from all business units and innovation driving growth [48][49] Question: What is the expected phasing of revenue growth through the quarters? - Management expects Q1 to be softer due to one fewer trading day, with growth in the first half around 4.5%-5% and stronger growth in Q3 and Q4 [53][54] Question: What is the outlook for joint repair in China? - Management confirmed that joint repair growth in China has annualized, and they expect a bounce in sports business while AET and ENT will have a limited negative impact [64][75]