Good morning, everyone. I'm delighted to welcome you to our full year 2025 results presentation. With me this morning, Javed Iqbal, Interim CFO; and Victoria Buxton, Group Head of Investor Relations. highlights. Javed will then take you through our financial results in more detail. Finally, I will return to talk more about our performance outlook and why we are confident in the pathway ahead given the clear momentum we are driving. We will then take your questions. With that, I would like to draw your attention to the disclaimers on Slide 2 and 3. So let's begin by looking at the positive transformation momentum we are driving. Starting with some key highlights. We added 4.7 million smokeless consumers bringing our total to 34.1 million, mainly driven by our continued strong performance in modern Auto. This marks our strongest growth acceleration to date and position us well for 2026. We delivered 2025 group results at the top end of guidance driven by resilient delivery in combustibles and an excellent performance from Velo in all 3 regions. Our disciplined focus on quality growth continues to improve returns on more targeted investments with new category contributing now up 77% at constant rates. Alongside this, we remain committed to investing behind our premium innovation launches, supporting long-term value creation. We continue to deliver strong cash returns for shareholders. In addition to our progressive dividend in December, we announced an increase to our share buyback to GBP 1.3 billion in 2026. Looking ahead, we are confident in returning to our midterm algorithm this year with the accelerated momentum through the second half of 2025, positioning us well for continued delivery. I'm proud that we have delivered on all of our 2025 priorities and I want to thank our teams around the world for driving these encouraging results. Our performance reflects the clear momentum we are driving as we continue to build a track record of delivery. I'd like to take a moment to highlight 2 areas from last years that stand out to me. First, the return to both revenue and profit growth in the U.S. for the first time since 2022. A significant milestone driven by stronger combustibles performance, a return to revenue growth in vapor in the second half, and modern oral. As a result, we grew 30 basis points of combustibles value share. Second, we are delivering quality growth in new categories, launching premium innovations in each category while delivering a return to double-digit revenue growth in second half and category contribution growth, up 77% for the full year. The progress we made in 2025 reinforces my confidence in our future delivery. And with that, I will hand over to Javed to take you through our 2025 performance in more detail.

Thank you, Tadeu, and good morning, everyone. I am pleased to share that we delivered results at the top end of guidance on a constant currency basis. The performance was driven by return to growth in the U.S., a robust performance in AME and the strength of modern oral globally. Our reported numbers reflect some adjusting items, including nearly GBP 1.6 billion, mainly related to the annual amortization of our U.S. acquired trademarks, a net credit of GBP 524 million, following a change in the forecasted outlook for the Canadian combustible industry. We also recognized a gain of nearly GBP 900 million from the partial monetization of our ITC stake. To give you a clear view of our underlying performance, I will focus on constant currency, adjusted and where applicable adjusted for Canada metrics. You can find further detail on adjusting items and share data in the appendix. We delivered group results at the top end of guidance, supported by accelerated momentum through the second half. Group revenue increased by 2.1%. Adjusted profit rose 3.4%, adjusted profit from operations grew 2.3% and adjusted diluted EPS was up 3.4%. Let's now turn to new categories revenue grew by 7% driven by outstanding growth in modern oral, which was up strongly by 48% with heated products up 1%. This was partially offset by a nearly 9% decline in vapor mainly due to continued illicit pressures in the U.S. and Canada. Our second half use performance showed a clear improvement versus the mid-teens decline in H1, supported by early signs of strong enforcement activity in the U.S. We continue to deliver quality growth with gross profit up over GBP 200 million and category contribution reaching GBP 442 million. This reflects our disciplined approach to return on investment, targeted investments in high-value markets and…

Thank you, Javed. So moving on now to the positive transformation momentum we are driving. In 2023, when I became Chief Executive, I committed to sharpening our focus and execution, guided by a refined strategy and ambition to become a predominantly smokeless business by 2035. And I'm proud to say that we have made significant progress across all 3 strategic pillars as we continue to build a track record of delivery. While there is still much to do, I'm confident that our focused investments and sharp execution are driving real momentum, as you can see from our 2025 results. Our progress underpins our confidence in sustainably delivering our midterm algorithm, while continuing to reward shareholders with strong cash returns. I'd now like to highlight 5 points that demonstrate this. First, we have successfully reset our U.S. business returning to revenue and profit growth in 2025. While the U.S. macroeconomic environment remains dynamic the pace of combustibles industry volume decline started to moderate in 2025, down 7.4%. Against this backdrop, driven by the actions we have taken to strengthen our portfolio and shop and execution. Our U.S. combustibles business delivered strong revenue and profit growth in 2025. Driving value from our combustible business is essential to funding our transformation and the U.S. is a key driver of this. In line with the strategy we gained 30 basis points of total industry value share. I'm particularly encouraged that our financial performance accelerated in the second half. This positive momentum reinforces my confidence in the resilience of our U.S. combustible business and our ability to deliver sustainable value going forward. Velo Plus is the fastest growing modern oral brand in the largest modern oral value pool globally. Since launch at the end of 2024, it has already reached the #2 position in both…

Thank you Tadeu and good morning, everyone. If you've joined us for the webcast, you can type your question directly into the online question box or if you joined the call, you can press star 1 on your telephone keypad. Tadeu and Javed will be very happy to take your questions. And I will now I'll hand over to the conference call operator.

Our first question is from Andre Andon Inter from Jefferies. Please go ahead, sir.

First of all, 2 questions on Modern Oral, please. Number one, what are your expectations in terms of performance in the U.S. in fiscal '26 for Modern Oral specifically? And secondly, are these expectations underpinned by the FDA approving the European Velo product for sale in the U.S.? Or are they mainly driven by the existing Velo Plus product? And perhaps finally, in terms of profitability, could you tell us a bit more about how you expect New categories profitability to evolve in fiscal '26?

Okay. Andre, thank you for the question. We have -- look, we have a very strong product with Velo Plus in the U.S. The levels of retention has been 70% throughout the year, which is really, really a very strong rate when you compare with other offers in the market. So basically, at the back of that, we believe that the product is competitive enough to continue growing in the U.S. market, has all the indications from that. Today, we still have a low level of awareness in the brand, around 30% -- and we are present now in 150-plus outlets, 1,000 outlets, which accounts for something like 93% of the total auto revenue. We are also seeing that the average daily consumption as new products start to be more satisfying for consumers in the U.S. is increasing. So it used to be around 2.8 pounds per day. Today is around 3.6 pouch per day. If you compare that with the European market, which is around 6 pouch per day, you see a lot of potential growth still in the U.S. and the Nordics is 12 pouch per day. So when you pull all this together, a strong product and the dynamics of the market evolving at the pace that it is in the U.S. So the expectation is that we will continue growing. That's why we are investing in capacity, like I mentioned during my presentation. We mentioned Velo Max, which is an even higher moisture product that we have as part of the pilot that the FDA is running. We welcome the -- first of all, that FDA is embracing nicotine pouch as a key category to address tobacco harm reduction in the U.S. because it's the lowest risk profile, if you want. There is no inhalation, there…

We'll now take our next question from Faham Baig from UBS.

The first one is on guidance for full year '26. You've guided for the lower end of the midterm targets. Could you maybe share factors that could result in the performance, whether in '26 or beyond that, getting you to the middle or even upper half of the range would be helpful. And then second question is on heated tobacco. I guess it was a tough year in 2025 from a share perspective. How do you think about share progressing through 2026, particularly as competition in the category is intensifying?

Okay. Thank you, Faham. Look, I want to start with the second one first, and then we address the guidance. Yes, we clearly see areas of improvement in our performance in heated products. What we saw throughout '26 is that the Bow WAP, which is basically where we were present until the launch of glo Hilo later in the year, has been very competitive in some of the key markets. And that's the reason why I have just made the point today that we are coming with a revamped hyper product that we believe that together with revamped consumables, we will strengthen our position in that particular segment. So we are very encouraged by what we have seen of the performance of this product and initial tests that we have been doing. And we believe that this will support our performance moving forward. And obviously, glo Hilo will complement that because it's the first attempt that we have done in the -- where 7% of the value of the category seats, which is the AWP, the premium part of it, which is -- and we are extremely pleased with the performance. We are growing week after week with a level of retention of 50%. And this complemented by a revamped value for money proposition gives us the confidence that we can revert this trend and start growing from here. Now in terms of the guidance, I think that Javed can explain a bit more about 2026. I just want to call the attention that after 2 years of investing resetting our business, the U.S. business, our innovations pipeline, BAT is ready to go back to the midterm algorithm that we have always had in the company around a 3% revenue, 5% revenue, leading to a 4% to 6% operating profit…

Thank you Tadeu. I think on 2026, specifically, if I go region by region, and then we can look at overall. In case of APMEA, as I highlighted, that we expect Bangladesh to be not a big drag, but Australia still remain a meaningful drag, which is becoming smaller and smaller every year. So in 2026, Australia will still be a drag, but will be less meaningful in '27. Having said that, also, we will continue to invest in the rollout of premium innovations in APMEA as well, as you saw in terms of glo Hyper, -- so that's where we'll be there as well. The other thing in that area is that in case of AME, we still face headwinds from the illicit environment in vapor and also the regulation changes in Poland, which happened at the end of the year, which has made the legal vapor out of the market, which is again a drag for us. Coming to U.S. you have to keep in mind that comparative from '24 to '25 versus '25 to '26 is very different. We are -- we had a very good performance in '25, so that comparatives changes. And also, we are assuming for now stable volumes in views in U.S. So we are expecting that the enforcement level as we've seen so today will stop that decline, but we'll keep the volume overall stable. And lastly, also we highlighted in our pre-close trading update that we are exiting certain geographies, which are not adjusted, but they will have an impact on our numbers in 2026. So I hope this all gives you an idea of why the lower end of 2026. But having said that, we are all very proud and confident in the business that we are entering the first year of our midterm algorithm

Our next question is from Ray [indiscernible] from Anchor Stockbrokers.

I just want to get back to -- I mean, it's quite interesting to listen to your optimism around the new categories. And I just had a quick look at the numbers. Obviously, Modern Oral is doing exceptionally well. You have the opportunity for vapor to at least stabilize and heated tobacco. I don't know whether the jewelry is still out there. But I don't know if you can just talk high-level stuff here. To give us an idea how do you -- which of these categories give you or makes you the most excited in terms of the future growth in terms of that, I mean, especially now into 2026, you talk of a double-digit revenue growth. And then just a follow-up. Just on Australia, I mean, it's quite interesting because I see in this market. I mean the needle market is now down to like $3 billion or less. Now clearly, I mean, if I look at Japan, I mean, that's basically what Japan will consume in the space of 7 days. So I mean, I struggle to understand why do you say it will still be a drag. Is it not a time that you could consider to exit this market? So I'm just curious to hear your thoughts around that.

Okay. On the new categories, obviously, Modern oral is the exciting category out of the 3. The pace of growth of Modern Oral around the world is very clear. And even in markets where there is no oral tradition, you take, for example, the U.K., when we launched Velo here 4 years ago, the incidence of nicotine and oral was 0. And today is around 3%. sporadically, it can go all the way to 4% in terms of use. And this is happening also in the likes of Poland. It's happening in emerging markets because it's very affordable. And like Pakistan that is doing extremely well. South Africa doing extremely well, Kenya. So there is a massive potential, and we are very pleased with the fact that now we have 24 markets already that have passed legislation. The last one has actually been Argentina a few weeks ago. Portugal has just passed legislation as well. So we see clearly a lot of potential in this category, and we are obviously very pleased that we have a leading brand in this category. In terms of tobacco heating product, it is a EUR 9 billion revenue category in which BAT has just below $1 billion. So there is a lot of white space for us, and it has been more and more competitive. But we have now a product that is being present in the value side of the category, if you want, on the premium side that has never been the case before. So with glo Hilo, we are tapping a very, very -- it has been an untapped subcategory within the category for BAT. And we are extremely excited about this possibility of to occupy some of that white space in a category that is still growing, not at the…

Our next question is from Pallav Mittal from Barclays.

Two of them. Firstly, on the U.S. business, clearly, your price mix is pretty strong at 12% plus. Can you help us understand what percentage of your U.S. volume portfolio is right now benefiting from the excise duty drawback? And how much scope does it have to increase in the future given your global business? That's the first one. And then secondly, I appreciate all the commentary on your NGP guidance for 2026. But your low double-digit growth, it still -- I mean, it seems like you're factoring a pretty sharp normalization versus what we can see in data, especially on nicotine pouches and the e-vapor side of things. So can you just help us understand the moving parts for your low double-digit guidance for '26?

Okay. will cover your second question. On the duty drawback, this is a long-standing legislation in the U.S. to incentivize local manufacturing and promote export from the U.S. So obviously, what we are doing is exactly that. Reynolds has invested more than $200 million in terms of manufacturing over the last couple of years. We have generated more than 800 jobs, and we increased our purchase of leaf in the U.S. by 65%. And today, Reynolds is the #1 company in terms of volume of leaf purchase in the U.S. market. So we are not making disclosures specifically about the duty clawback impact. But one data point for you to consider is the fact that our revenue in combustible would have been positive independent of the duty drawback. So it's important to mention that because at the end of the day, when you go back to what I was referring to in terms of the long-term algorithm, we expect the U.S. market in terms of combustible to be declining at rates around 6% to 7%. And this should be, given the elasticity and that still exist in the market, the possibility for Reynolds to get to a positive revenue around 0% to 1%. In the current years, it has been more than that because the company is doing extremely well in terms of the strength of the portfolio, but also the duty drawback is helping for those in that sense as well. But independent of the drawback, we are positive, and I feel very comfortable with the range that we have set ourselves for our long-term algorithm.

I think on the overall new category revenue guidance of low double teens is one thing is one -- a couple of points. One, in the U.S., even as I explained in my presentation, that we had a negative number for the full year on Views. So what we are expecting in the Views numbers to be flattish because it will require a more meaningful and more stronger enforcement. And given a very complex and long supply chain, even those measures will take time to have a meaningful impact. So even the ITC regulation, which today was talking about, if it gets passed through, it will be much later in the year when we'll see some meaningful impact. And having said that, also, as I highlighted, the regulations, for example, in Poland and Europe, which has put a drag on the reuse volume because it has made the whole illegal business negative in that number, so that's not possible to enter that market. And also the highly competitive environment we see in the BWAP segment within the heated product portfolio, as we were talking about earlier, that competitiveness will continue to be there for the short term. So if you put all these together, that's why our guidance on the low end of the teens. But having said that, we are very confident in midterm that Velo will lead the charge of new category revenue growth, being the fastest-growing brand in the fastest-growing nicotine category globally, including U.S. However said that, given all these points, that's why we have guided on this front as the low teens for now.

Our next question is from Simon Hales from Citi.

So a couple for me. I wonder if I could just first come back to some of those comments you just made on the U.S. business on a go-forward basis. Jo, just back to the point in terms of the base performance and the flat vapor expectation for 2026. I'm still just trying to square that circle, given you've got pretty strong exit rate momentum through the second half of the year. I appreciate enforcement actions in vapor and a straight upward line. But we're still probably going to annualize at least through the first half, some of the building enforcement we saw in 2025, and that should help the bake category, 1 would imagine the legal vapor category in the first half. So you therefore expecting as we come into H2 of 2026 to see your Boost business down year-on-year to get you back to that flat guidance for the year. That's the first point. And then secondly, on the U.S., today, you talked about 6% to 7% being the normal full run rate of decline on combustibles volumes. Is that something you expect to see in 2026 and could you also perhaps talk a little bit about what you're doing in discount at the moment, the performance of Doral last year and your plans on that brand going forward.

Yes. So if I take the first one. So I think one thing which I have to highlight further on the second half performance of 2025 of Vuse in U.S. Other than the enforcement, there is also one item which will not see repetition was the delisting of competition product in which Vuse gains. So 63% of those consumers stayed within the glow systems. And in RCS system, views gained more than their fair share of our category. So that is one thing, which is also boosting Views performance in the second half. So I wouldn't be recipocating that second half into the full year of full year of 26 is more focused and will be more dependent upon the level of enforcement we see. And as also highlighted by Tadeu that although we have seen regulation covering 40% of the legal volume but level of enforcement varies from state to state. So one, not having that one-off of the exit of a competition, which we gained more than fair share. and enforcement still seems to be early days. So that's why our guidance on the Vuse comment was made by me.

Yes. On the volume side, my comment is more, I would say, hypothetical situation. It's not -- what's happening in the U.S. market is the fall. If you go back to 2020, 54% of the nicotine users were using traditional nicotine products, combustible traditional. You go now to 2025 is 34%. So the balance is happening. What's happening is the transition of these consumers to either pay using or using solo users of becoming solo users of smokeless products, either modern oral or vapor products. So obviously, the secular decline that was related to ADC and level of incidents reducing over time around 4% will not be coming back. That's my point. So even if you see a meaningful enforcement in vapor in disposables that we know that has currently plays a role in terms of the level of decline of cigarettes. Even if we see that, even if we see improvement in the macroeconomics in the U.S., it's very hard to imagine the market going back to 4% decline because of the dynamic of the poly use and solo users in new categories that I was referring to. So my point is that in the long run, with a meaningful enforcement in disposable with macroeconomics is strengthening between 6% to 7%. I think that where we see today in the next couple of years in the scenario that we are seeing I think that the performance in '25, around 7% to 8% is a more reasonable one to assume. So that's what I would assume. Now obviously, this is overall markets. When you separate from the overall market, the deeper discounts, the deeper discount has a very different dynamic. We are seeing more activity there from competitors. And as a consequence, we saw the deeper discount growing by 10% in 2024 or 5 was even higher than the 7% that they grew in 2024. So we have been piloting [indiscernible] out to your question. We have been always very mindful because despite the fact that the deeper discount is growing as opposed to the general market, the 95% of the value continues to be outside the deeper discount. So we are very mindful in terms of testing the product, in this case, is [indiscernible] We did pilots in Louisiana in West Virginia. And what we are seeing in those pilots is suggesting that we'll be able to expand Doral for other states as well. taking into consideration the source of business, the potential down trades of our own brands, we are doing that with the value in mind. We are not doing that for the sake of market share. we want to cap to expand or in the states that makes sense from the value point of view.

Our next question is from Richard Felton from Goldman Sachs.

Thank you for taking my question, three please. First one is on vapor. So look, great news that the U.S. is starting to take some proper enforce an action against elicit vapor. But your comments point to, I suppose, a challenging environment in markets ex U.S. So thinking about those ex U.S. markets, -- are you seeing any shifts in appetite from governments or regulators to start to enforce against that illicit segment a little bit more stringently or does that remain very challenging. Any comments on some of your top vapor markets ex U.S. on that topic would be very helpful. And then the second one, sorry to come back on the duty drawback question. I appreciate you don't want to give us the exact numbers for 2025, but just sort of, I suppose, from a high-level perspective, thinking about duty drawback into 2026, is the tailwind going to be more or less than it was in 2025 at a similar level? Any high-level comments just to sort of help us triangulate on that would be very helpful.

Okay, Richard. Look, vapor is -- I don't think that there is one side fit saw here. There are -- we know based on our own experience that when we have geographies where we have retail license, we have proper regulation and proper enforcement. I would say, for example, France is one of the case, you just can sell vapors in tobacco net source. And if you have got selling, for example, disposable now, you have a massive fine in euros and this helps with the discipline in the markets. And in the U.K., for example, despite the fact that we have been asking for a retail license, and we haven't seen the movement in that direction. There is a tobacco vape being discussed as we speak. And hopefully, they will address that. But the attempts to ban disposable has failed because the manufacturers that are not responsible, they try to circumvent in the case these regulations. So 50% of the markets is illegal today in vapor. And this is a demonstration of how difficult the governments find to either regulate but more important to enforce regulation in some markets. We have as much as we can, and we have promoted this vapor deserves better campaign. We have been very vocal about what are the measures that government should be taking into consideration to try to discipline that. And this, with no surprise, you will see us talking about retail license, [indiscernible] fines if they got caught a more stringent discussion in terms of age verification when you buy the product and a negative lease to avoid things like sucralose in the liquids to sweet the liquids. So there is -- in our webcast and all that, there is a plant of -- but there is still a lot of…

Next question from Bastien Agaud from Bank of America.

Bastien from Bank of America. I just have a quick 1 on the -- your net debt is close to your target 2.5 and your free cash flow in 25million was quite strong. So my question is regarding the buyback, EUR 1.3 billion what kind of margin do you have to potentially increase it at some point or another during the year? I understand that your debt is approximately 70% in dollar. So could be quite volatile on that? But just to understand the moving parts on your buyback for full year '26.

I'll take the question. Thank you very much. We started a sustainable share buyback program in 2024, and we started it with $700 million. And now we are at GBP 1.3 billion with an increase of GBP 200 million for 2026. We remain our focus on cash and also deliver. We have to enter into our range of 2% to 2.5%. And also, we want to make sure that we continue to deliver additional incremental dividend in sterling terms and continue our 25 years plus record on that front and continue a sustainable share buyback. What we want to ensure is to create more optionality for capital allocation and medium to long term for the business. So for now, I'm very comfortable with the increase we have done of GBP 200 million from GBP 1.1 billion to GBP 1.3 billion for and we keep on focusing on generating cash to bring us back into our range of 2% to 2.5% and continue a sustainable buyback.

Our next question is from Damien McNeela from Deutsche Numis.

First question is just on U.S. combustible and particularly on pricing. I was wondering if you could provide any more granularity on the pricing within the subsegments that you operate in? And what the sort of outlook for '26 might be for pricing given the very strong year last year. And then the second question is on CapEx. You've indicated the step up this year. I was just wondering whether that level of CapEx is what we should be expecting for outer years past 2026.

Thank you, Damien. Look, on the CapEx side, we are increasing at the back of investments, mainly on the modern or space. Most of the CapEx today is being reverted back to new categories and our -- and giving the space for us to continue growing. We don't have huge expectations to be much beyond the level that is currently -- and this is suiting us well because at that level, we still can be very close to the 100% of operating conversion. It's not a limitation, but it's just the fact that with this level [indiscernible] address the business needs. At the same time, it puts us in a strong position to continue having high levels of operating cash conversion, which is very helpful for the financial flexibility and capital allocation that Javed was referring to. On the U.S. combustibles, look, I cannot be talking about pricing [Audio Gap] and we -- what I can say to you is that the price elasticity is still very benign in the U.S. when you compare the price of cigarette vis-a-vis the average household income and Obviously, there is a dynamic debt because of the specific tax that when we increase the price of a pack of cigarettes, the manufacturer have a higher benefit than the consumer perceived as a price increase, which is also helpful. And -- but what [indiscernible] has been doing is laddering some of our brands. We did that very successfully with Newport. We have launched Pall Mall Select as well, which is another laddering. And we have now Doral, like I said, in pilot phase that we probably will expect to roll out to more states. But I cannot speculate with you about the future price.

That was the last question today over the phone. With this, I'd like to hand the call back over to Victoria. Over to you.

Thank you very much, everybody, for your questions. I'm afraid that's all we have time for today. So if you put a question into the web, then the IR team will be delighted to answer the question as soon as we can. I'd now like to hand back to Tadeu for closing remarks.

Okay. Thank you all for listening today and for your questions. To close, I'm confident we have the right building blocks in place to deliver our midterm algorithm supported by delivering 2025 results at the top end of guidance. We will continue to reward our shareholders through strong catch-up returns including our progressive dividend and a sustainable share buyback and enabling us to deliver long-term growth and value creation. Thank you again for joining us. I look forward to see many of you at the CAGNY conference next week where we are presenting on the 18th of February.