Smith & Nephew plc

Good morning. Welcome to the Smith & Nephew Q4 and full year 2025 results presentation. I'm Deepak Nath. I'm the Chief Executive Officer and joining me is John Rogers, our CFO. I'm pleased to report a strong finish to 2025, delivering results at the high end of our guidance on revenue growth, margin, and free cash flow. For the full year, underlying revenue growth of 5.3%, and importantly, all three of our business units grew by over 5%. Sports medicine and ENT, and in particular, joint repair within that, had another strong year. And in orthopedics, we saw meaningful progress. In our U.S. recon business, particularly hips, added trauma. There was more work to do in U.S. knees. Our OUS business, knees business, has remained strong throughout the year. So we had a record year of Cori placements globally and saw continued growth in adoption and utilization of our robot. Advanced wound management also had a good performance in 2025, driven by growth in AWD and bioactives. Innovation remains central to our strategy, with over 60% of our growth in 2025 came from products we've launched in the last five years. And innovation's in all three business units delivered double-digit growth for the year, including QFIX, Regeniton, FastSeal, Legion Consul Lock, Catalyst STEM, EVOS, ATOS, PICO, and LEAF. On profitability, we saw 160 basis points of margin expansion driven by our enterprise-wide cost savings program and the benefits of all the work we've done in our orthopedics business dropping through to our P&L. This includes optimizing our manufacturing network, improving productivity, introducing our new sales and operation planning processes, and portfolio rationalization. We expect to see further benefits from these initiatives combined with our Ortho360 operating model and continued revenue growth that will drive us to more than 20% margin in orthopedics by 2030. The Wall Street has shown greater discipline around working capital management, bringing down days of inventory, and we've reduced restructuring charges. Alongside growth and higher profitability, this has lifted free cash flow to $840 million, a 52.5% increase year-on-year. This enabled us to complete a $500 million share buyback program in the second half of 2025. This is a great way to finish off three years of incredibly hard work and focus under the 12-point plan during which we've delivered, consistently delivered our targets each year and sets us up well for further acceleration of growth and returns as we go into the first year of our new rise strategy. Turning now to 2026, we expect growth of 6% revenue and around 8% trading profit growth, both on an organic basis and consistent with what we laid out at our capital market days in December, with trading profit growth ahead of our revenue growth. Since then, we've announced the acquisition of Integrity Orthopedics, so we're also now guiding to trading profit of around $1.3 billion, including the impact of the deal. John will cover guidance in more detail in his section. So let's now round out our financial performance over the last three years under the 12-point plan with actual numbers. We've moved Smith & Nephew from a historically low single-digit revenue growth company to mid-single-digit growth, delivering 5.7% CAGR from 2022 to 2025. And we've expanded trading margin by 240 bps from 17.3% in 2022 to 19.7%, despite facing significant headwinds from VBP in China, FX volatility, and higher inflation. If we exclude the total impact of the SportsMed VBP over this period, our 2025 margin would have been 20.9%, 120 bps higher than we've reported. Our increased focus on cash and capital returns has yielded a 15-fold increase in free cash flow, and ROIC has increased by 170 bps from 6.6% to 8.3%, or by 330 bps, excluding the 160 bps headwind from the impact of portfolio rationalization. I'm incredibly proud of what the whole team here has achieved over the life of the plan and excited about what we can deliver over the next three years under our new strategy, RISE. I'll come back to talk about this next phase of our growth later, but for now, I'll pass you over to John to take you through the detail of our results. John.

Thank you, Deepak. Good morning, everyone. Revenue for Q4 was 1.7 billion, representing 6.2% underlying growth and 8.3% reported, including a 210-bip tailwind from foreign exchange. We had one extra trading day year on year, and on an average daily sales basis, growth was 4.5%. Growth was broad-based across business units and regions. The US growth grew 5.6%, other established markets 7.2%, and emerging markets 6.4%. Excluding China, underlying growth was 7.2%. I'll now move on to the details by business unit, starting with orthopedics, which grew 7.9% on an unblind basis and delivered the strongest quarterly growth for more than two years. One extra trading day helped, but even if you normalize for that by looking at average daily sales, growth was still strong and accelerated nicely ahead of Q3. In the US, we saw a third consecutive quarter of above market growth in hips, acceleration in knee growth, and continued strong trauma and extremities growth. Hit performance continues to be driven by the uptake of Catalyst STEM, and we are seeing good competitive conversions, and we plan to increase our Catalyst STEM set deployments to support growth in 2026. U.S. knee growth improved during the quarter following the launch of Legion MS, which enables us to benefit from the market shift to media-stabilized inserts. We are pleased with our competitive wins with the product and continue to receive positive feedback from existing and new users. In AUS, knees, hips, trauma, and extremities all deliver strong performance, except for some localized weakness in hips in certain distributor-led markets. Following the launch of Catalyst Stem in Japan, we see growth improving in AUS hips over the coming quarters. In trauma and extremities, we continue to see good growth from our Trigen Max tibia, EVOS plating system, and ATOS shoulder. Other recon grew 40.8%. We're pleased with increasing Cori placement in teaching institutes and with the percentage of Coris deployed in competitive accounts. We also deployed 45% of Coris in ASCs in the quarter. Cori deployment is important because knee growth is 850 bits higher in accounts where Cori is established, underscoring the potential for further improvement in knee growth as penetration and utilization of Cori continues to grow. I'll take a moment to look more closely at US recon growth. In HIPS, you can see consistent improvement in growth standalone and versus the market since the beginning of 2024. And we've grown above market for the last three quarters of 2025. This is driven by the changes we've made to our commercial engine, product availability, and our portfolio with the launch of Catalyst STEM, which addresses the fast-growing direct planteria segment of the market. In NEIS, we've also been narrowing the gap versus the market. We had a good quarter in US NEIS in Q4, but we recognize quarterly performance has not been as consistent as we would like. In 2026, we expect to continue to close the gap versus US recon market growth. We expect US hips to track in line with or ahead of the market growth and expect US knees to start off with a softer first quarter, reflecting our continuing and deliberate trade-offs on balancing growth, profit, and asset efficiency. We will then build towards market growth in Q4, supported by the launch of the cementless version of our new landmark knee in the second half. Landmark brings the proven clinical benefits of our knee portfolio into a single platform that combines advanced kinematics with the next level of personalization, robotic enablement, and ease of implantation, while unlocking capital efficiency by leveraging existing instrumentation. Landmark will also feature best-in-class tray efficiency, making it particularly suitable for ASCs. Turning now to sports medicine and ENT, which grew 7.3% driven by double digit growth in joint repair as we annualize the impact of China VBP. We reached an important milestone this year with our joint repair business surpassing 1 billion in revenue for the first time. Growth continues to be driven by Regeniton and Qfix-Knotless, along with strong performance in small joint outside of China. We saw further acceleration of Agility C, albeit still off a small base. AET delivered strong growth led by fast seal and patient positioning with strong growth in our US markets ex-China. Despite continued softness in the US tonsil and adenoid market, ENT saw good growth with double digit growth in nose as well as strong international growth again ex-China. We have AET and ENT China BBPs ahead of us, but the headwinds in 2026 will be much smaller given the relative size of these businesses. we are already proactively managing our inventory ahead of implementation. Advanced wound management grew 2.8% in the quarter. Within that, advanced wound care grew 4.4%. We are very early in our launch of a lead in complete care, but we're pleased with performance so far, and we expect momentum to grow over the coming quarters as we roll out the product across the U.S. Moving on to bioactives and devices, it's important to remember that both had very strong prior year comparators of over 20% growth. Bioactives declined by 0.5%. We saw softness as we lacked the Graphics Plus launch in Q4 of 24. And we also saw a slowdown in skin subs in the physician office and outpatient setting prior to the CMS reimbursement changes that came into effect at the start of this year. Advanced wound devices grew 5.4%. Leaf and Pico both perform well, reflecting strong demand. Pico growth continues to demonstrate strong market demand and reflects our efforts to improve penetration in the surgical setting. U.S. renal assist continues to be impacted by softness in the acute care channel, while performance outside the U.S. remains strong. Now I'll move on to the full-year financials. The full year revenue was 6.2 billion, up 5.3% on an underlying basis, ahead of our guidance of around 5%, and up 6.1% on a reported basis. Excluding the headwinds from China, growth would have been 7% on an underlying basis. Note also that 25 had one fewer trading day versus 2024. Performance was broad-based, with all three reporting segments delivering growth of above 5%. Orthopaedics grew 5.1%, sports medicine and ENT grew 5.2%, and AWN grew 5.6%, all on an underlying basis. Overall, a good set of growth figures, and particularly good to see that more than 60% of our growth comes from products launched in the last five years, as Deepak covered, giving us confidence coming into 2026. Let's now take a moment to look at our underlying revenue growth, excluding China over the last few years. You can see that growth ex-China has been greater than 6% since 2023, and that China headwind peaked in 2025 at 170 bps. China was just over 2% of group sales in 2025. And although we still face BVP headwinds in 26, as I already mentioned, these headwinds will have much more impact at the group level. Moving on to the summary P&L. Underlying gross profit was 4.4 billion with a growth margin of 70.9%, an increase of 60 bps. We were able to more than offset raw material inflation with price increases across our portfolio and productivity measures in manufacturing and procurement. Trading profit was 1.2 billion, an increase of 162 million, resulting in 160 bps of trading margin expansion to 19.7 for the full year, at the high end of our initial margin guidance. This was driven by positive operating leverage, our cost savings program, and in particular, margin expansion in our orthopedics business unit. Moving further down the pier now, adjusted earnings per share grew by 21%, to $1.02. That's above trading profit growth, primarily reflecting the 500 million buyback we completed in the second half, which more than offset a slightly higher tax rate year over year. Our tax rate was 19.4% in line with our guidance of 19 to 20%. Basic earnings per share grew significantly faster, primarily driven due to lower restructuring charges and lower acquisition and integration costs. Our restructuring charges were 47 million down from 123 million in 2024, and we had 32.7 million acquisition and integration costs compared to 94 million in 2024. The four-year dividend is proposed to be 39.1 cents per share, an increase of 4.3% year-on-year. This slide shows a more detailed trading margin bridge. We absorbed headwinds of 250 bps from cost inflation, China VBP and tariffs with FX impact being broadly neutral. These were more than offset by 180 bps of revenue leverage from price and volume and 240 bps of productivity improvements delivering 160 basis points of margin improvement for the year. Drilling down into the details of the efficiency savings, we remain on track to deliver on the 12 point plan and zero based budgeting savings we laid out at our interims in 2024 of 325 to 375 million of savings by 2027. We've achieved 280 million in cumulative savings to the end of 2025 with further savings to come through in 26 and 27. We continue to anticipate total savings of about 150 million in 2026, half from these 12-point plans, zero-based budgeting savings, and half from other opportunities above and beyond this across procurement, manufacturing, sales and marketing, and business support. Our 2026 guidance is for 8% reported trading profit growth on an organic basis and for around 1.3 billion of trading profit, including some dilution from the integrity acquisition. We laid out some extraordinary headwinds to profit in 2026 at our London Capital Markets Day. These include inventory revaluation, tariffs, the impact of changes to reimbursement in our US AWM business and ENT BBP in China. There are no changes to any of our assumptions regarding these headwinds. We still expect 60 million impact from tariffs compared to 17 million in 2025 and 20 to 40 million incremental impact from changes to wound reimbursement. We expect revenue leverage and operational savings to more than offset these headwinds to drive trading profit growth ahead of revenue growth before the impact of any M&A. Coming now to trading margin by business unit. We saw a 340 bits increase for orthopedics to 14.9%. 20 bit decrease for sports medicine and ENT to 23.8 and 120 bits increase for wound to 24.9. Broadly speaking, expansion came from OPEX savings and leverage across all three business units. Within orthopedics, the increase was driven by favorable price mix, manufacturing savings from network optimization, ongoing productivity initiatives, and disciplined cost control. We expect further margin expansion to 2028 and beyond in this business unit. This will be driven by continued growth in revenues, the impact of actions already taken to right-size our manufacturing capacity, and our also 360 operating model, our way of running the business to balance growth, profit, and returns. In sports medicine and ENT, the margin decrease was driven by the impact of China VBP, which more than offset revenue leverage, operational efficiencies, and good cost management. Margin expansion in AWM was driven primarily by favorable product mix and productivity gains in operations. As you know, inventory has been a key focus under the 12-point plan. And you can see here the development of DSI, day sales inventory, over the year, both for the group and for each of the business units. Group DSI fell by 21 days, excluding the impact of portfolio rationalisation that we announced at the end of last year, and by 51, including this. The biggest reduction came from orthopaedics, reflecting continued efforts to reduce the number of units in inventory. As covered at our capital markets day, we expect inventory value to reduce further in 2026. We also saw a reduction in sports med DSI, including and excluding portfolio rationalisation, albeit to a lesser extent than in orthopaedics. And both sports and women are already much closer to industry benchmark DSIs. We've made good progress in our ROIC, delivering a 90 BIP increase in ROIC to 8.3% at a group level. The improvement is being driven by trading margin expansion, lower restructuring charges, inventory reduction, and overall better asset utilization. Excluding the impact of portfolio rationalisation that we announced in December, ROIC was 9.9%, exceeding our cost of capital for the first time in several years. All business units contributed to ROIC improvement, including a more than doubling of ortho ROIC in 2025, helped by trading margin expansion and lower inventory. We expect a further step up in group ROIC in 2026, driven by a continuation of these trends. Moving on to cashflow, trading cashflow was 1.236 billion for the year, reflecting 102% conversion. The improvement came primarily from lower working capital costs, particularly from inventory and payables. Capital expenditure was 433 million. Working capital remains a focus for 2026. Free cash flow also improved to $840 million, growing 52.5% year on year. This includes a $26 million one-off property transaction and a $58 million reduction in restructuring, acquisition, legal and other costs. The $840 million was well ahead of our initial guidance for over $600 million. We expect free cash flow in 2026 of around 800 million. We expect the usual increase driven by profit growth, offset by a small temporary increase in restructuring costs, driven by further optimisation of our manufacturing network with the closure of our Warwick site, insourcing more into Memphis and winding down manufacturing activities in Hull as we build our new wound facility in Melton. Overall, our cash generation and returns profile is now in a much healthier position, and there is more improvement to come as we execute our rise strategy. Net debt increased slightly during the year to 2.76 billion, an increase of 50 million. We finished 2025 with a leverage ratio of 1.7 times adjusted net debt adjusted to EBITDA, which is within our target of around two times. In terms of capital allocation, we continue to prioritize organic reinvestment in our business and M&A execution in order to drive top buying growth. We'll maintain our dividend ratio of 35 to 40%, and we'll then consider returns to shareholders in the form of buybacks subject to our target two times leverage ratio. Including the 2026 acquisition of Integrity Orthopaedics, our leverage still remains below two times adjusted EBITDA. Now I'll finish with our outlook for 2026. We continue to expect around 6% organic revenue growth. That includes continued good growth in orthopedics, sports medicine, excluding AET and ENT in China, and advanced wound management, particularly in AWC and AWD. Whilst we expect headwinds in our skin substitutes business, we still expect AWB to grow, supported by the ongoing strength of Santor and growth in skin substitutes out of the physician office and mobile channel. We expect around 8% trading profit growth before M&A. As I've already mentioned, we face a number of extraordinary headwinds in 2026, but we still expect trading profit growth ahead of revenue growth driven by revenue leverage and operational savings. Since providing our provisional guidance, we've also completed the acquisition of Integrity Orthopaedics. This acquisition is expected to be marginally dilutive to trading profit in 2026, broadly neutral in 2027, and accretive in 2028. Including this dilution, we expect trading profit to be around 1.3 billion. We thought it would be helpful to set out these two measures of trading profit so that you could see the performance of the business on an underlying basis, as well as the total trading profit, including the impact of the acquisition. Finally, we expect around 800 million in free cash flow and greater than 10% heroic, excluding integrity. We expect a stronger second half compared to the first half for both sales and profit growth in line with the typical phasing we see. We also expect a leaving complete care to ramp up over the year and the launch of landmark will benefit the second half. We have one fewer trading day in Q1 versus 2025 and one more in Q4. As a reminder, trading days have a more pronounced impact on our orthopedics business. And with that, I'll hand back to Deepak.

Thank you, John. So the launch of Rise, our new strategy, which I laid out for you in the capital market days in December, our ambition is to accelerate growth and improve returns. It's been great to see how well this new strategy has resonated internally. with this focus on reaching more patients, driving innovation, scaling through investment, and executing more efficiently. We're building on the behaviors embedded through the 12-point plan with our way to win, our program to be better every day through our continuous improvement mindset and behaviors. So let me now highlight the key drivers shaping our performance in the first year of RISE, and I'll start here with sports medicine. First, the China joint repair VBP headwinds have now fully annualized, which means our underlying joint repair growth will improve this year. And importantly, we expect the upcoming AET and ENT VBP processes to be significantly less material given the relative size of those businesses. Second, we're continuing to build on the strength of our shoulder portfolio with our acquisition of Integrity Orthopedics. And we look forward to driving adoption of tendon seam across our customer base. So I'll come on to this in a moment. Third, we're awaiting FDA approval of Tessa, our first in industry spatial surgery arthroscopic platform. This represents a major step forward in how surgeons visualize and execute procedures. And finally, we're also seeing ongoing growth in Regenitin. The recent AAOS guideline support for the use of bio-inductive implants in rotator cuff repairs is reinforcing clinical confidence and expanding usage. I'd like to spend a few minutes on our acquisition of Integrity Orthopedics, an asset we believe has the potential to become a key growth driver for our sports medicine portfolio. We announced the deal earlier this year for total consideration of up to $450 million, including performance-based payments. Integrity Orthopedics was co-founded in 2020 by Tom Wessling, who also founded Rotation Medical, the company behind Regeniton, which we acquired in 2017. Regeniton's growth is evidence of our proven track record of successful commercial execution, scaling an innovative shoulder product with our dedicated sales force, and building the clinical evidence to drive adoption. Integrity has developed Tendency, an innovative rotator cuff repair system that received FDA approval in 2023 and addresses the $875 million biomechanical repair market. Rotator cuff repair is a large and growing category with around 500,000 procedures performed annually in the United States. Despite the scale, surgical techniques have seen little meaningful innovation in over two decades, leaving patients with re-tear rates of between 20 and 40% and long recovery times. As a result, this remains a segment with significant unmet need and where meaningful innovation can shift share. TendonSeam introduces a fundamentally novel biomechanical approach designed to distribute load across the entire tendon rather than concentrating stress at fixation points, resulting in stronger, more stable repair. Early clinical data is promising, showing potential for lower retail rates and accelerated patient recovery, while offering a shortened and easier surgical procedure compared to the current standard of care. The acquisition is fully aligned with our right strategy to accelerate growth through strategic investment by deploying capital into high growth, high value clinical segments where we already have a strong presence and thus underpinned by our strong balance sheet. The deal is expected to be dilutive to trading profit in 26 and as John mentioned, broadly neutral in 27 and accretive starting in 2028 as the product scales. While still early, integration is progressing as planned and we're focused on executing the same discipline playbook that drove Regeniton's success. Tendency is highly complimentary to Smith and Nephew's extensive shoulder portfolio. With this novel and disruptive technology, it strengthens the initial repair construct in rotator cuff tears and Regeniton then builds on that strength by promoting biological healing over time. Together, they create a differentiated end-to-end solution that addresses both the mechanical and biological drivers of successful rotator cuff repair. The total combined TAM for the two products is just under $1.2 billion. And today, we have about 25% share with Opportunity to Grow. Within fixation, we have the market-leading instability solutions, including our Q-Fix All-Suture Anchor Portfolio, which has 10 years of proven performance. In shoulder arthroplasty, our ATO shoulder system, launched in 2024 with anatomic, reverse, and stemless options, is positioned for the high-growth replacement segment with estimated $250,000 procedures annually in the U.S. in 2025. We will soon have a powerful new offering with the launch of CoriShoulder that will enable our handheld robotics to be used in the preparation and execution of shoulder replacement with ATOS, building on what we already have with choreographed pre-op planning. We now have one of the broadest, most advanced portfolio for managing shoulder pathology, spanning replacement and repair by both mechanical and biological healing technologies across our orthopedics and sports medicine businesses. Turning to advanced wound management and wound bioactives, we have plans in place to navigate CMS reimbursement changes to skin subs in the physician office and mobile setting and to grow outside of those channels. As a reminder, CMS has introduced a pricing cap starting from the 1st of January, 2026, with the aim of reducing historical distortions in the market that's incentivized a significant number of players, often operating in the mobile setting to charge very high prices. We expect a reduction in non-surgical volumes, particularly in mobile, now that incentives have changed and certain skin sub offerings are economically less viable to many of these players and providers. So although this will drive a value reset short-term, it also creates a more sustainable, patient-focused, and evidence-based market going forward with a long runway for growth. We see opportunities to benefit as the market normalizes. At the very end of last year, CMS also withdrew the Skincep's local coverage determinations, or LCDs. We always saw this as being broadly neutral to the business, and so this has no impact to our 2026 guidance. Even without the LCDs, we believe that clinical evidence will continue to be an important factor in this market. Towards the end of 2025, we launched a leave-in complete care, our newest five-layer foam dressing, which addresses both chronic wound healing and the pressure injury prevention market. It has 51% superior exudate management, and with the new silicone adhesive, stays in place more frequently than competitive products, making it a superior product for chronic wound healing. It also has a 55% greater reduction in strain relative to competition, making it ideally suited for pressure injury prevention. I'm confident that as we roll out a leave-in complete care to the market, we will capture market share in the largest and fastest growing segment of wound dressings. We'll also continue to drive the portfolio in high growth areas with unmet need like santal in wound bed preparation and access new patient populations like those at the risk of surgical site complications or pressure injuries with PICO and LEAF. Moving now to orthopedics, we'll continue to drive procedure growth across all joints with our Cori platform supported by the launch of our shoulder execution capability. Cori remains a core differentiator for us. Handheld robotics are increasingly popular, and Cori's size, mobility, fast setup, and low cost of ownership make it well-suited to both hospitals and to ASCs. In knees, we'll continue to build out our portfolio in 26. We've already launched our Legion medial stabilized knee to meet the needs of a fast-growing segment, and we're pleased with the early momentum we've seen so far. The next leap comes in the second half of the year when we launch Landmark, our most differentiating knee system yet that will be available first in cementless and in cemented versions and with the best in class tray efficiency that's particularly suitable for ASCs. As the ASC channel starts to grow or continues to grow, we're well-positioned to expand further, supported by a suite of tray-efficient implants like Atos, Catalyst stem, and Landmark, together with Cori. In fact, 40% of all Coris placed in 2025 were in the ASCs, underscoring the platform's fit for this high-growth setting. We also capture further efficiencies with our Ortho360 program. This is our global operating model designed to eliminate past inefficiencies by replacing fragmented region-driven decisions with unified goals, integrated metrics, and disciplined portfolio management. By maturing our sales and operation planning processes into fully integrated business planning process, or the IBP, simplifying the portfolio, reducing inventory, and enhancing capital efficiency, this should drive profitability, improve ROIC, and stronger cash generation in this business unit. I'll not give an outlook for innovation over the life of Rise, given its importance to our growth, both historically and looking forward. Looking ahead, we are stepping up our R&D investment in sports and in moon while maintaining a robust front-loaded pipeline across all areas of the group from 2026 and to 2028. Over the last three years, we successfully launched 44 products, largely on time and within budget, and we plan to increase launch cadence going forward. We launched 14 new products in 24, 15 in 25, and we expect to launch 16 in 2026. We're also building on our two major scalable technology platforms, EmTech and Biologics. In EmTech, we'll be launching Tessa and Lumos in sports med and our next generation leaf monitors for pressure injury prevention and good. We also have a rapidly evolving robotic platform to drive procedure innovation across all joints in orthopedics. And in Biologics, we'll build on our existing products with launches like NextGeniton, our next generation of Regeniton. So before I finish, I'd like to remind you of the midterm financial targets that our strategy will deliver. Through continued innovation and execution, we'll deliver organic revenue CAGR of 6% to 7% that's above our market. and our continued focus on productivity, further operational efficiencies and capital discipline will drive nine to 10% trading profit CAGR, more than 1 billion in free cash flow in 2028 and 12 to 13% ROIC. Coming back to the near term, we've delivered on 2025 in terms of revenue growth, margin, free cash flow and ROIC, and we're looking ahead to another good year. On revenue, we're accelerating growth, launching new products, and driving leverage through our P&L. We'll continue to be disciplined on our cost base to drive trading profit growth ahead of revenue growth on an organic basis. And our free cash flow generation remains strong and will deliver another step up in ROIC, significantly exceeding our WAC in 2026. So with that, I'll now take your questions, or will now take your questions.

Jack. Hi there, Jack Reynolds-Clark from RBC. Thank you for taking the questions. The first is on revenue guidance for 2026. Could you kind of break down what your expectations are for market growth, how much launches contribute to that growth guidance, and what contingency is baked in to that guide? And then could you just run through the phasing through the quarters for revenue guide? And then could you remind us of your expectations for timing of the quarry shoulder? Sorry, shoulder ability in on Corey.

So we're 26 and actually right through rise. One of the benefits of the program we have is the multiple sources of growth. So we're not dependent on any one business unit or any one product to carry us through. And to remind you, we've exited 2025 meaningfully above our historical levels of low single digits. So we've now navigated to above 5%. And when you take the impact of China VBP out of it, we were actually above 7%. So what we're driving to is 6% to 7% growth for the next three years. Within that, 26% will be at around 6%, which will be above our market. And each of our business units will contribute to that. Innovation will continue to be a key part of it. As I said, in 25, we're about 60% of our growth comes from new products. To remind you, in 24, we were above 50%. And in 23, we were still above 50%, right about 60%. So we've been consistently above the 50% mark in terms of new products driving growth. And 26, as I indicated, will have 16 new products. I mean, you can measure that on different ways, but we expect that new products will continue to deliver above 50% growth into 2026. So 26... Around 6% growth ahead of market, we'll see growth coming from each one of our business units, and we'll have innovation that continues to fuel our growth. So that's the overall kind of revenue story. And in terms of our – anything to add, John, first? I can give a little bit of shape around the phasing.

Yeah, phasing's great. So as we said in the presentation, sort of weighted towards the second half. So Q1 will be softer. Obviously, there's one fewer trading day in Q1. We think US needs will be a little bit soft in Q1. We think that will build into Q2. So we're expecting the first half to outturn somewhere between, say, 4.5% to 5% top line growth. Q3 and Q4 will be stronger as we obviously introduce landmark and obviously a lead in complete care grows through the year. So Q3 and Q4 will be stronger. Q4 also has one more trading day. So that's a little bit of a boost. And so we'd expect the second half to deliver growth of somewhere between seven and a half to eight percent you combine that four four and a half to five percent in the first half with the seven and a half to eight percent in the second half that gets you to your around six percent for the full year that gives you a little bit of shape on the top line And then I'll give you a little, you didn't ask for it, but I'll give it to you anyway, because some people will probably ask. In terms of shaping on the bottom line, again, we've got that 8% growth in our trading profit for the full year. Again, it's naturally going to be swayed to the second half, given the revenue bias towards the second half. So I'd expect profit growth in the first half to be of the order of 5.5% to 6%, something of that nature. profit in the great in the second half to be around nine to ten percent the two combined gets you to your around eight percent so i'm not going to break it out by quarter but hopefully that gives you a little bit of a shape so effectively building through the year partly driven by the fact we've got one fewer trading day in q1 and one more trading day in q4

your question on corey's shoulder uh the uh choreograph which is our planning uh platform launched i think middle of last year the key unlock is of course execution and we're starting the year now that's uh that's launched so we've got um a whole atos portfolio stemlish short stump and corey shoulder now planning and execution so the ability to do both reverse and anatomic um and the ability to do both uh glenoid and humoral and uh with corey to do pre-operative planning intra-operative and post-operative uh kind of insight so uh not only a complete solution a highly differentiated solution that should be awesome veronica next david

Hi, good morning. Veronica Dababa from SISI too. Two questions for me, please. The first one, I just want to go back to joint repair. And obviously, Deepak, you said that the China headwind has annualized out now, but we've had it basically for eight quarters. So I just want to confirm what's happening in joint repair China specifically and sort of what gives you the confidence this year that it's not going to be a drag to the overall joint repair number to the extent that we've seen, obviously, that China improvement is a big part. of the guide for the year. So if he can talk about that, please. And then just kind of a big picture question around the margin and organic and inorganic development, obviously, you know, very exciting to see organic margin improvement this year, but it is being eaten away by Integra. So I don't know if you can maybe talk a little bit more broadly, how you think about capital allocation and M&A sort of having an impact on the bottom line growth and to what extent that's sort of a favorable, trade-off that you're willing to take. And maybe if there was anything else in the pipeline beyond Integra that we should be kind of looking at for this year. Thank you. Integrity. Sorry, integrity. I'm so sorry. Clearly my second cup of coffee hasn't kicked in yet. Thank you so much.

So let me talk about joint repair. So as we mentioned, joint repair has annualized at this point. So going forward, we'll have a clean kind of comp or rather joint repair growth unalloyed by China VBP. And that is a key part of our growth story as you highlighted. And as we've called out a number of times, when you actually dissect our sports growth It's been well-balanced across geographies. You take China out of it, and we've actually grown high single-digit growth, not only across markets, but actually across categories, which is one of the key features of our sports medicine, which is a balanced portfolio selling that we've undertaken. So I feel very, very good about commercializing our portfolio and not the impact of China BBP and joint repairs going away. What is left, though, is AET. The AET part started last year. I think it'll be Q3, right, John? Something like that, Q3 or early into Q4, by the time we fully lap AET. But the impact to the group is relatively small at this point, right? The other part is we report ENT and sports together. It's ENT that's not going through this. It started towards the late of last year. We'll fully annualize that towards the end of this year. Again, both of those, while important to those business segments at a group level, will now be a relatively small portion of the portfolio. Overall, like I said, I feel very, very good about the continued the momentum we've built and capitalizing on that momentum as we go into 2026. In terms of margin, as we noted, we've driven 240 bps of margin improvement over the life of the 12-point plan program. That's a combination of leverage and cost improvement and all of the work that we've done over the three years of the program, not only deliver the 240 bps, but what's most impressive about that is the sheer scale of headwinds that we've overcome if you just take china joint repair bbp that's just 120 bps on its own and if you just add that to 19.7 we would be at 20.9 i'm absolutely proud of what we as an organization have delivered with focus not only on the top of the margin. As we've said going forward, the focus will be on revenue growth and driving sustainable above-market revenue growth and profit growth. So that's kind of what we are orienting and guiding toward. recognizing that we'll continue to drive productivity we'll continue to take costs out in order to in effect drive uh drive margin as well in terms of capital allocation our focus remains on investments in organic right to drive top line growth above market to further accelerate our growth that remains a key feature or a key priority for us in terms of capital allocation What we've also said, of course, is that's a mix of R&D and M&A. And within our RISE strategy, what we've said is we will undertake M&A that allows us to scale in areas where we have strength and That's within sports and within wound and areas where we see clear ability to build on what is a solid foundation. And integrity fits very squarely within that. As I've highlighted, the advantage of integrity is within sports medicine, it allows us to be a clear leader in biomechanical repair. We were very, very positively impressed with Tenancy and all that it has to offer in terms of an alternative to existing approaches. And together with what we have, I think it would be a great complement in terms of mechanical repair. But what's most exciting is when you couple that with Regeniton. where we clearly have market leadership in biologics, that's a fantastic portfolio. And we should expect us to act as the leaders that we are in sports medicine, where we see an asset, unique technology that augments our position. But actually, what's even more impressive is when you couple that with what we've got in arthroplasty, with chlorine and a full portfolio of ATOS, we are now very, very strongly positioned within shoulder. And just to remind you, there's significant channel overlap in shoulders. So surgeons who do arthroplasty also do soft tissue repair. So that's what's most exciting about this. So integrity fits very squarely as I said in our RISE strategy, where we will make investments in order to shore up our position and to drive great growth. And as it turns out, within this particular asset, it's the group that gave us Regenitin, and you've seen what we've done, not only commercially, but actually investing clinically to develop the clinical evidence to drive adoption. So that's what's most exciting about it, and hopefully it gives you a little bit of color on capital allocation.

Maybe if I can just give you a little bit more colour on China as well, because there's obviously a topic that comes up a lot in conversation. Just to sort of set the scene, in 2024, in sort of greater China, I think we've said this number before, we were doing around 210, 220 million or so of sales. In 2025, we saw broadly a sort of a reduction of a third a consequence of all the impacts that we talked about so roughly getting to us about 160. actually when we look at 2026 it's actually a very similar number to 2025 so we're really not expecting to see much relative movement in our greater china sales 26 on 25. now actually you need to unpack that a little bit because it's a combination of a couple of taking place, one of which is we're actually expecting to see sports and joint recovery recover a little bit. Now, the reason why that's the case is because we've done a really successful job of managing channel inventory in 2025. We've taken inventory where we've had to. We've taken inventory out of the channel. So we are confident and we can see this starting to come through in Q4 of last year, which is the reason that gives us confidence. So we expect to see a little bit of a bounce in our sports business in China. Of course, for the overall number to be flat, that means there needs to be a negative somewhere. And of course, the negative exists in the AET and in the EMT that we haven't really seen the impact of that in 25. It's going to really come through in 26. That's the negative. But overall, those two player draw to be neutral on the top line. When you look at the bottom line, profit again for 25 was, let's sort of call it around 50 to 60. We will expect to see a 15 to 20 million reduction in that profit year on year into 26. And that's being driven again by the VBP on AET and ENT. So again, we've done a really good job of managing the channel inventory on ENT. So again, we can be reasonably comfortable with that number. So as we've very clearly stated, China will not be in 2026 a drag on the top line in the way that it has been historically. And it will be a drag on the bottom line, but to a much more limited extent, call it 15 to 20 million, which is what we set out at the Capital Markets Day in December and what we're reiterating today in terms of the impact of VBP, AET and ENT for 26. So that's absolute clarity. And that's the thing that gives us confidence. You know, when you look at our growth, ex-China for 25, we were 7% growth. Because we're no longer seeing that drag come through in 26, that's what gives us confidence with regards to our around 6% growth at the top line of our business, notwithstanding some of the headwinds we've clearly talked about. David, then you.

Morning, David Addings and Jamie Morgan. You've seen two or three of your competitors in skin substitutes downgrade their guidance expectations in the last few weeks. You've maintained yours that you had before Christmas. Just wondered if you could talk about what you're seeing in the markets and your assumptions around price and volumes for this year. And then secondly, more for John, inventory write down 159 million. Is that all coming from the portfolio rationalization or is there anything more underlying in there? And is that now completed or should we expect more changes coming through?

Yeah. So in terms of skin sobs, we are seeing the channel adapt to the changes that are coming. So just to remind everyone, it's really in the physician office and the mobile channels where we're seeing most of the impact. And within that, mobile is more impacted than physician office or the hospital outpatient segment. But in the surgical segment, we're continuing to see growth. So in terms of parsing what different players have said, it really has to do with the mix of our business, is how much of our business is in each of those channels. The other factor within that is the type of products you have within each segment. You've got products that you can segment both from a customer standpoint and from a price standpoint. So put all these pieces together. What we're seeing is definitely impact in terms of price that has hit to remind everyone Typically within the physician office segment and mobile segment, the payment terms or reimbursement levels or cycles are between 40 and 45, 30 and 45 days. So we're now heading into a period with the first tranche of reimbursements have gone in and physician offices are starting to see just what comes through from CMS around that. So there's still a fair amount of uncertainty in the channel in terms of not only utilization, but how these products get reimbursed and the mechanism under which the CMS is actually reimbursing those products. What we've said is the guidance we've provided for our business in terms of how we're impacted hasn't fundamentally changed from last year. But longer term, David, I'm very, very bullish on the segment. Once we get through this period of adaptation, we believe that the clinical unmet need is there. There will be a drive towards using products that have clinical evidence. And as you know, we've invested considerably over the years to develop not only products, but clinical evidence to drive the appropriate use of those products. And that combined with the growing unmet need based on demographics, right, makes this an attractive channel over the long term.

Well, I was going to say, just maybe give a little bit of colour around the how do you get to our 20 to 40 impact on the bottom line? I mean, we've said before that our skin subs business is around a couple of hundred million. um if you look at the you know we think that from a pricing perspective we think for our portfolio we'll see a sort of price reduction of around 20 25 or so now that's a lot lower than the overall industry will see because we haven't necessarily participated in quite the same high price points as the inventory average so we will expect prices to come down a little bit at the same time we will expect our volumes to be broadly neutral, maybe even a little bit positive as we grab a little bit more share in the channel. So overall, a sort of 15% to 20% reduction in our revenues. If you work out that on the 200 and drop that through as a margin, that gives you your 20% to 40% impact on our bottom line that we put in our margin bridge. So there's lots of assumptions that build into that, lots of uncertainty around that, but that's just the basis on which we give the guidance and We haven't seen anything in the market today that would contradict that guidance. And that's a reasonably broad range, around like 20 to 40 million. In terms of the inventory and the portfolio rationalisation, we see this as being... really positive thing you know we this is an opportunity you know we've taken this opportunity to accelerate uh the rationalization of our product portfolio it means that circa two-thirds reduction in our ortho skew count a circa 10 reduction in our sports skew count And these only represent, in 2026, probably about 7% of our sales. So it's a huge number of SKUs representing a very small percentage of our sales, which we will expect to, over the next two or three years, to roll off. um and this is an opportunity for us to simplify simplify the portfolio offer our our customers our latest products um and it's very much building on the work there was a portfolio rationalization work that was kicked off at the very beginning of the 12-point plan this is the second wave of that a little bit more focused on trauma the initial plan was more focused on knees and hips but we see this as being a really positive thing and we don't by the way we don't anticipate any further And for the avoidance of doubt, the $159 million charge is just the portfolio rationalizing. We haven't hidden anything else in there. It's simply what it is. But we think it's a very positive thing for the business.

Just to reinforce something here, which is we've called out Ortho360 a couple of times today. We've mentioned that actually in our couple of market days. It's really important. to emphasize how we're running this business better than we have historically. So balancing capital deployment, you know, growth and margin. So we achieve a better balance across those things than we've historically done is an important part of how we operate this business. It's not chasing growth. at all costs, but rather to drive the right kind of balance. So we've historically been not as disciplined around deploying capital in this business, which has led to some of the challenges around ROIC and inventory that we've seen. So it's really important to emphasize that we're operating this business better in a more disciplined way than we historically ever have done. Question here, the last question in the room, and then we go to questions.

We go to the phone. Thank you very much. Richard Felton from Goldman Sachs. Two questions, please, both on shoulders. So I think it's 13 or 14 consecutive quarters where Regenitin has been called out as a strong contributor to growth. Could you help us with roughly how much that product contributes to your sports medicine business today? And then on the AAOS guidance, what does that change in practice? Is it because of that guidance that shifts reimbursement conversations? Does that guidance have a material impact on surging behavior? Anything you can help us with to frame how material that shifting guidance is would be really helpful. And the second one also on shoulders, Deepak, I think you referenced regenerative integrity addresses a TAM of 1.2 billion. How do you get to that 1.2 billion? Is that all rotator cuffs? Is it a subset of rotator cuffs that are done with bioinductive implants today? Any parameters to provide color around that and how fast it's growing? Thank you.

So Regenitin, I think, we haven't called out Regenitin, have we, previously?

So I need to confirm what we've actually... I think we've given some rough guidance. I think you can give a least range.

So think multiple hundred million. OK, so I've got to be careful of what I say. So it's a key driver of growth, as you'd rightly note. We've it's been a fantastic story for us. And as we've said, we took a relatively small when it was launched, when we acquired it, kind of like integrity, right? Early stages. And what we've done is put it into our channel, our commercial channel. sales organization. And we've done more, right? We've invested in developing clinical evidence. We've, in previous earnings calls, called out the wonderful data that have come out, right, at different time points, one year initially and then two-year time points in terms of statistically significant reduction in retail rates that we've seen with Regeniton, right? So, That's been a great story. So it's not only the commercial channel strength, but also the evidence investment that leads to the kind of utilization that we've seen. What the guidance does is actually help surgeons determine the appropriate use. There's different levels of clinical evidence, right? So this doesn't, over time, we'll have this be reimbursed, right? But today it's part of the DRG. There's not a specific reimbursement for Regenitin. What it helps surgeons do is, you know, take all the clinical data they've seen in papers. Now that the society has now come up with guidance to the appropriate use of it, It's a way to further increase adoption, is the way to think about it. The $1.2 billion market, it's about $875 million of it, is biomechanical repair. It's the sutures and anchors and everything else that goes into repairing the rotator cuff. And that's all rotator cuff, Richard. Um, and the remaining bit of it is biologics. And within that, we are a large part of that. I mean, there's some other, um, uh, uh, collagen based implants, but we are the, um, essentially the largest player within that space. So you add the two together, 875, the balance, you get 1.2 billion. And that's the market in which we participate. And as I mentioned, when you combine the two together, we're about a quarter of the market. And the potential we see now with tendon seam is the ability to actually have a full solution, actually now with tendon seam, a very unique solution in biomechanical repair, right? So that allows us to treat even more. But what is important, as I highlighted, is not to include biological healing right on top of when the repair is initially done. That's the real helpful part. And what we see with tendon seam is at time zero right after the procedure. the anchors actually leave the tendon with twice the amount of strength that a traditional repair has. So there's some intriguing possibility of faster recovery time for patients coming out of a sling quicker. There's some great early experience around that that makes us think that this would be a very nice complement to what's out there, right? So that's the sports medicine part of it. The other exciting thing, just as I reinforce within shoulder, is with ATOS. We are a relatively small player in arthroplasty today. within shoulder. But with ATOS, we now have a full solution that's stemless, short stem, anatomic, reverse anatomic. So we've got a full range of implants. And in the shoulder anatomy, a handheld form factor is particularly well-suited for that anatomy, so robotics is. And Cori, with its handheld form factor, is super well suited for that. And just to remind everyone, adoption of robotics in children is very, very early stages today, right? So we see an opportunity now chlori plus atos where we start to take share within the arthroplasty market and together with the robust portfolio we've got in soft tissue repair within shoulder we now have what we think is a very very compelling offering in a fast growing part of orthopedics that's all of these different pieces uh to come together richard questions over the phone i'm told

Thank you. To ask a question, please press star followed by one on your telephone keypad now. When preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from Graham Doyle from UBS. Graham, your line is now open. Please go ahead.

Morning, guys. Thanks a lot for taking the questions. I just went on skin subs and then on landmark. On skin subs, the flat volumes assumption, it's quite a benign assumption versus what we're seeing in the market over the past sort of month and a half, how would you expect that to sort of flow in H1? Would you expect, you know, maybe down 50 plus 50 in H2? And then just on the landmark knee, could you just talk us through how you imagine the ramp would be? So is there, are there things you need to do on inventory or getting people ready for that launch? And, you know, Does the old factors sort of slow down to launch? Do you then ramp up quite quickly? Just to get a sense when we're modeling that. That would be really helpful. Thank you.

Sure thing, Graham. Let me start off with consumption. And John, maybe you can take the phasing of it, right? So in terms of flat volume, and John kind of alluded to it in his remarks earlier, fundamentally, when you double click, it has to do with parts of our portfolio we're actually seeing growth. And Oasis, for example, in our portfolio, we're seeing very significant uptick in volumes and usage and utilization of that product and price impacts that impact one or the other part of the portfolio. So in terms of volumes, it's both channels, as I said earlier, where the volumes are quite stable in the surgical channel. And then when you look at Hospital outpatient, physician office, and in mobile, the greatest impact actually is in mobile and physician office, right? And in terms of our mix of business, what we're seeing is gains in one area offsetting declines in another, right, as the channel adapts. So the net impact of which will be a draw. As I said, it's still early going yet. So in terms of how the channel is responding to it, We're now in the first early stages of physician offices billing from the utilization they've had in the early part of the year and now in a position to see how CMS is responding in terms of reimbursement. And that will help inform how the balance of the half goes and how H2 is kind of set up. Anything you want to color to that, John?

Not really. I mean, Graham, I actually thought we were being quite detailed in the guidance that we were giving for the year as a whole. So in terms of the volume impact and the pricing impact, I don't think I want to get drawn into specifically quarter by quarter, other than to say, you know, to Deepak's point, it's still working its way through as we speak. I'd expect half one to be a little bit softer, half two to be a little bit stronger as the market starts to normalise. But

i don't think we're going to get drawn on very specific guidance quarter by quarter on skin subs okay good um on in terms of landmark uh this will come in stages so in the second half um think um end of q3 q4 uh we'll launch landmark first on cementless and then we'll bring forward cemented in the first half of 2027. The focus there is one platform that combines the best of essentially our existing platforms in terms of degree of personalization, ease of implantation, and preserving some of the benefits of kinematics and the other benefits that we have within our existing portfolio. The other important kind of design considerations around landmark is tray efficiency. We've brought this thinking in catalyst stem and with ATOS, because what we're looking ahead to is ASC, where space matters and tray efficiency is super important. So we've built that thinking now into landmark. Not only is it about the designs of the implant itself, but also making the procedure more more efficient um you know more efficient not only in terms of uh uh ease of implantation but also the mechanics of getting through uh getting to a case less less capital intensive right so those are the features of uh landmark and it also is comes to cementless and cemented and with a medial stabilized kind of paradigm which is where the market is going and keep in mind today We've got Cementless on the Legion platform, and we don't have this on the Journey platform. So Landmark allows us to fill kind of the gap that we've got with Journey today, right? And so the way we expect to launch, as you know, this will be a build over time. So we'll, in this back half of the year, with the cementless launch, we'll have kind of the initial kind of foray into this. And then as we go into the first half of 27, we'll have both cemented and cementless. It'll be the same instruments for cemented and cementless, right? So again, keeping that tray efficiency paradigm front and center in what we do. So hopefully that addresses your question, Scott.

And just to build on the comment that we also made in the presentation, that we're also mindful, we're very mindful as to how we're deploying capital on our existing platforms in the build up to the launch of Landmark in the second half. because we want to make sure that we maintain our capital efficiency. We've continued to build over the last couple of years. And for that reason, we do expect the first half to be a little bit softer, therefore, on US knees as we grow. So the Q1 will be a little bit softer because of the fewer trading day. We'll expect to see that grow a little bit in Q2, but then it's really Q3 and Q4 that upon the landmark where we expect to see U.S. needs grow in line with the market by the end of the year. So that's the sort of trajectory we're expecting U.S.

needs. And this type of capital discipline, again, as part of Oral 360, we've actually, 360, we've displayed in how we've launched Catalyst STEM. It's very different to how we've done it. You've seen all of the growth numbers, right? We are above market now. Again, in Q4, we exceeded the market in US hips, right? So as important as that growth is, how we've achieved that is in many ways even more important because we brought a high level of capital discipline in terms of how we approached that launch to the market. And you should expect the same with Landmark. It's a bit more complicated because we've got to straddle. We've got multiple elements of our portfolio and needs that we have to navigate through. But we will strike a better balance in terms of growth, capital deployment, and margin. It's not just growth for the sake of growth. Super important to keep in mind. So we'll take one more question online, and then we'll come back to the room if there aren't any questions.

Thank you. Our next question comes from Kane Slitskin from Deutsche Bank. Your line is now open. Please go ahead.

Morning, guys. Just on Corey, could you just talk a little bit on the competition you're seeing in the sort of smaller handheld space? We obviously recently had Mecca announce their limited market release of their handhelds. So just wondering what you're seeing there. Presumably, they're going to be targeting the same sort of ASC space. And then just on J&J spinning out of its auto business, I assume, are we expecting sort of a bit of disruption in the market over the next sort of year or so due to that split out? And if so, what are the sort of challenges and opportunities you're seeing there? And yeah, just finally, I did notice there was a shortage of bone cement in the UK. I mean, I appreciate UK is probably smaller in your life nowadays, but yeah, any comments around that? Thanks.

Yeah, so first, Corey, it's important to keep in mind that when we talk about Corey ASCs and we said something like excess of 40% of our placements in 25 have been in the ASC, it's important to remember that Corey isn't just for the ASC. And while it is a handheld robot, Fundamentally, it's a robot across a whole range of settings, hospitals, ASCs. We've got quite a bit of focus on teaching institutions, and we've got great traction over the last couple of years in terms of the adoption of Cori in teaching institutions. It's important to keep in mind that Cori isn't just handheld. It's a robotic system that happens to be handheld, right? And it has resonance across a range of, uh, settings. So therefore in terms of competition, uh, you know, we feel very, very good about what Corey is, the features and benefits that it's got is one platform that can do knees, hips, and shoulders and the type of, um, kind of features and benefits we've brought on board over the last three years is absolutely impressive in terms of how quickly we've done it. So that's the short answer to this. It's a robotic platform that happens to be handheld rather than us competing in one segment. In terms of J&J, look, we've got A very good set of priorities we're executing towards, you know, we feel very good about how competitive we've been in hips and how we've gone from basically lag in the market to when we've got a product. We've launched, we've launched in a very disciplined way. And now you see the benefits of that flowing through, not only in terms of growth, but the leverage that we're coming through with that. Prama, that whole process started earlier on supply improving and us executing commercially with a great product portfolio with Evos and now with Trigen Max. We're starting to, not starting to, we've had multiple quarters now where we've um surpass the market in our trauma and extremities and so we expect to do the same uh with knees right on the launch of a landmark in the back half of the year legion ms now that we uh recently brought to market and of course continued adoption of corey where we've as we've said We are pleased with the kind of uptake we've had in competitive accounts with Corey, right? And not to mention the traction in ASC. You put all of this together, you've got a set of priorities. We're executing to those priorities. In terms of J&J, we don't underestimate any competitor. And no matter what kind of they're going through, I believe with continued focus on what we're doing, we will be competitive and increasingly competitive within the market. In terms of shortage of bone cement in the US, as you highlighted, in the UK rather, the UK is a relatively small proportion of our market. It doesn't fundamentally impact any of our guidance or financially. I do believe now there's a solution in the market in the UK. And so the market should see some relief from that shortage of bone cement. It doesn't fundamentally impact any of our financials or guidance as a result of it. Thank you. I think that's the time. Absolutely, Graham. I think that's all the time we have today. So just wanted to close by saying thank you for being here. Thank you for your time and attention. Just to recap now, 2025 was a very strong year for us of delivery. It marked the successful completion of the three-year 12-point plan. We've built momentum across the group. And as we enter 2026, we do so from a position of strength And we're well aligned with our ambition to deliver the 2028 rise targets. So looking ahead, what I'm really pleased about is the multiple growth drivers that we have over the next three years, including 2026. And the fact that innovation, just like it's been over the last three years, will continue to be a key to us delivering on targets. The investments we've made in R&D so far is starting to bear fruit, will continue to bear fruit, and we're now pivoting to stepping up our investments in sports and in wound. And that, combined with sharper commercial execution, positions us to accelerate revenue growth as we progress to market leadership in both sports and in wound. So in parallel, the positive actions that we've taken in orthopedics, together with our focus on group-wide productivity and operational efficiency, will make sure that our top-line growth actually translates into sustained trading profit growth as well. A strong cash generation underpins this progress and gives us the flexibility to pursue value-accretive strategic M&A, and that will be further reinforcement of our success. So we're confident. in the year ahead. And we look forward to updating you on progress as we go through Q1 and beyond. So thank you very much for your time and attention today.