Welcome, and thank you for joining us. I'm James Bushnell, Director of Investor Relations. Today's webcast is focused on our sustainability strategy and addressing the impact of our business in our next growth phase. We will hear today from our Chief Executive Officer, Jacek Olczak, our Chief Financial Officer, Emmanuel Babeau, and our Chief Sustainability Officer, Jennifer Motles. Our Vice President of Strategic and Scientific Communications, Dr. Moira Gilchrist, will also join for the Q&A session. The materials we will share today are predominantly based on our 2020 integrated report, published on May 18th, where you will find comprehensive and in-depth coverage of all the topics we'll touch on. Today's remarks contain forward-looking statements and projections of future results. I direct your attention to the forward-looking and cautionary statements disclosure in today's presentation and press release for a review of the various factors that could cause actual results to differ materially from forward-looking projections or statements. Please also note the additional forward-looking and cautionary statements related to COVID-19. A glossary of terms is posted on our website. As shown on this next slide, responsibilities and ownership for key sustainability topics are assigned across our senior management team. There is a similar assignment of responsibilities and ownership at the board level as outlined in our proxy statement and the integrated report. Sustainability performance is also reflected in our management incentives, and Emmanuel will touch more on this later. It's now my pleasure to introduce Jacek Olczak, our Chief Executive Officer. Jacek. Thank you, James. Good morning, good afternoon, or good evening. This is our first sustainability-related webcast, and it's designed to increase our engagement with investors and other stakeholders on this important topic. It is obviously critical, as investors in particular have the power to drive positive change by encouraging companies to improve. We talked about the next growth phase for our company at our Investor Day in February. I believe many of you also joined us at the time, and today we want to give you more depth on how sustainability and our impact on society are at the core of our growth strategy. This is, as James indicated, following the publication of our most recent integrated report on May 18th. I will start with a transformation. Obviously, it's about driving the growth and a positive impact and financial performance through a unique sustainability mission, which we have articulated for some years very clearly, which is about phasing out cigarettes and ending smoking in the world. Our strategic priorities are derived or are being driven by the sustainability materiality assessment. They reflect our business, and they're being reflected in our business and executive compensation targets. Materiality takes into account what our stakeholders expect from us. Jenny later on will talk more about the materiality assessments, how we adopt it, how we approach it, and how we use it to guide our strategies. We have a very clear statement of purpose, which I will talk about later, which underpins our strategy. Again, materiality informs our purpose. The things which we are addressing there are really of the most of importance to a broader group of our stakeholders. James presented that sustainability essentially penetrates all ranks of our management team and below, with clearly assigned roles and the contributions to the specific sustainability agenda points. The sustainability strategy for us is essentially equal to the business strategy and obviously is being driven by our transformation strategy. We are differentiated from the industry by our purpose, by the level and the commitment to transformations, by the way we allocate the magnitude of resource allocation, and also by the level of disclosure in income and impact, especially for the ESG and the product, the KPIs and progress. We are the only company today who work purposefully to phase out cigarettes, and engage with stakeholders to do so. We're not offering our smoke-free product as another alternative or part of our portfolio. Our objective, our purpose is very clear. This product should fully replace the cigarettes, as they are much better option for the consumers than continuing smoking. We also have, during our Investors Day, for the first time talk that we're working on the strategy, which will deliver the long-term growth opportunity for Philip Morris International coming from beyond nicotine product. I will also talk about it later on. We can go to the next slide. Obviously, as the outcome of our materiality assessment, it's difficult for us to envisage that Philip Morris International can be a sustainable business if we don't address the problem of our product, i.e., the combustible cigarettes. By far, the most important and the prime priority is to address the problem of smoking by replacing cigarettes with a much better alternative. This is not only about the developing and the scientific substantiation of these products, so both the consumers and the regulators and all other stakeholders have a comfort dealing with this product, but it is also ensuring that the consumer smokers will have a broad access to this product. Obviously, it informs the way we design. There is accessibility to the product from affordability perspective, but also the way we engage with the regulators when we believe the consumer should have an access to the very clear and transparent information about the products, what these products can do and what they don't, and can make the informed decisions. Also, have an access, in terms of a trial of the product, et cetera, which will facilitate or accelerate the switching to this proposition. We are working purposefully to phase out cigarettes. Again, I repeat, our strategy is not that this is another line of the products which we offer to the consumer. Our desire or objective, our mission is that this product should fully replace cigarettes, and this is very well reflected in the magnitude of the resource allocations, where essentially 100% of our research and development budgets are devoted only to the Reduced-Risk Products, and the three-quarters of our commercial spend is being devoted or being invested behind this product. As you know, it's in a complete disproportion to how much these products contribute today to our top line, to our revenue, when the last year we have generated close to 25% of revenue coming from the non-combustible products. Again, 75% of the resources are behind the further development and commercializations of this product. Obviously, as we've been developing and substantiating these products, we have developed, I believe, quite a unique capability in PMI, which allows us to, in a more realistic terms, think about the products which go beyond nicotine, that have nothing to do with the tobacco or nicotine. We'll talk about this also later. If we can move to the next slide. The very critical for us is to ensure that there is a perfect alignment between the external and internal stakeholders, including, obviously, our board of directors. As you personally know already, in the last year, the board of directors of Philip Morris International has adopted statement of purpose. It was published in our proxy in 2020. I just wanted to highlight the four critical pillars, which are covered by this statement of purpose. First, that we believe that with the right regulatory encouragement and support from civil society, we believe cigarette sales can end within 10- 15 years in many countries. In a country like Japan, when penetration of this product today is at the level of about 30%, is a great example of how fast we can really put the cigarette smoking well behind us. We have a number of examples which we also publish, disclose case studies, which we publish, disclose in our integrated report. We understand that there is the need to continue to build legitimacy and trust by being honest, respectful, fair, and transparent, and by aligning our actions with words across all areas of our business. I believe this event, this sustainability conference, is also one of the many examples what we as Philip Morris International are doing to be an accessible, transparent company when we can very openly talk about our missions, our objectives, and progress to date. Hopefully, through the exchange of the opinions, we can improve on our strategy if need. Our key stakeholder constituencies, which are fundamental to both the achieving of our purpose and how fast we get there, will be affected in different ways by Philip Morris transformations. I put it on that way. The massive change Philip Morris International is undergoing also requires change on other sides. Very often, we are still today confronted with a more dogmatic approach and conversations which are more focused about the tobacco, big tobacco, without giving a right recognition or at least attention to the effort which Philip Morris International is taking to completely reshape and transform the entire tobacco industry. I go to the next slide. Okay. The way we look at our transformations, we have three very important axes. One is obviously the product transformations. Without the product transformations, as I said earlier, it would be difficult to think about the Philip Morris in the long term as a sustainable business. There is the internal transformations, which we need to recognize that new culture is required in a company. New ways of working are very important. New operating model as we transform to a more consumer-centric business from this classical business-to-business setup is very required. Developing and upskilling of our people is very important, and many new skills have been already acquired or hired from other industries to complement our current talent and competencies. We've almost now half of our senior management, people who are directly reporting to me, which they have a less than a three years seniority with Philip Morris International, and they came from all other industry technology, life science, digital industry. They have essentially no legacy from a tobacco or cigarette business. The third very important component of our transformation is the external transformation. As I said, we have a mission to phase out cigarettes, and we can't achieve this alone. We can do the product, we can invest in the science, we can continuously improve the product. We can understand what are the best ways of communicating with the consumers or facilitating the conversion to this product. We also require some sort of regulatory frameworks which at least allows consumers to have access to the information about the product. We seek to actively engage with our key stakeholders and foster the debate. We truly understand that not everyone is well-informed about the science and the evidence behind this product. There is a lot of misunderstandings, but it's our job to continue to have this debate, to foster this debate. I think Emmanuel also will touch upon more about what is the role of investors in this external transformation. Obviously, all these free accesses, they require significant investment over a number of years. We didn't stay shy from putting significant amount of the resources of human and the capital and dollar resources behind our transformation well before we have started commercializing IQOS. You will know also from our integrated report that year to date, from the very beginning when we started investing behind the product, the total investment bill is north of $8 billion. We're very happy that we started so early and we spent the resources, and we are where we are today. Let me now turn into the product, right? The biggest question or the most fundamental question is, does product like IQOS, which is our heat-not-burn proposition, impact the total sales of a combustible product in the market? On this chart, I look on over the last five years period, 2016 is essentially a year when we started with IQOS. We almost had almost zero revenue at that time. We start looking of with the acceptance and the penetration of IQOS in the different markets, how did we impact the sales of cigarettes of the total industry. You could see here the blue line represents the cigarette industry in total, the trend line over the decline rate over this period of time. In the red, you could see cigarette industry trend in the markets when IQOS was present. You could see that from the very beginning, IQOS had the positive impact on the acceleration in the decline rates of the combustible industry. Based on this, If I can move to the next slide, please. To build on this, in the integrated report, we have included a number of case studies looking at the impact of introduction of smoke-free products like IQOS, which are replacing cigarettes and thus accelerating smoking declines as measured by cigarette sales. Here, I brought the examples of Japan, Italy, and Lithuania. You could see the massive impact, frankly speaking, massive impact of a heated tobacco product, the impact on the sales of the combustible business. You also could see that product really works. Heat-not-burn products, our product works really very well as the pure substitution to cigarettes. First confirmation of that is coming that the total of the combustibles and the heated tobacco units continue its sort of a historical trend. Obviously, this is a data. There is limitations in the data. Obviously, we only have a visibility of the legitimate sales, tax paid products. On occasions like you observe on Lithuania, you might have some sort of deviations, depends on the level of the illicit product penetrations in a given period in the market. I think in all countries in which we operate, we could very quickly see that we accelerate the decline of the cigarettes. That's the one question, obviously, the first fundamental question is what the products like IQOS do to the sales of a cigarette, sales of a combustible product in the market. Let's go to the next slide. Obviously, we know that investors and many other stakeholders are very interested in the tangible health impacts, or in other words, real-world evidence whether such fast declines in cigarette consumptions, what do they do actually to the health? Do we have any other observations? Obviously, we are five years from the journey of very heavily promoting the non-combustible products. It's difficult to expect from that time series a long-term sort of epidemiological evidence. However, the first indications from the time trend analysis on COPD exacerbations is nothing else than flare-ups of certain conditions in Japan, are consistent with what we would expect from a large amount of smokers moving to less harmful alternatives. Clearly visible trend, you can see here, the trend line has started to change since 2016. It demonstrates the strong correlation with introduction of heated tobacco products. We also continue looking at this whole thing on this real world data. We go to the next slide. We're looking for further indications of the health impact of smoke-free products. Today, I also share with you this new study also coming from Japan, in addition to the study I just showed the second bit before. In a similar way to the COPD exacerbations, we see here an encouraging trend in the decline of admissions for ischemic heart disease, also coinciding with the introduction of heated tobacco products like IQOS. This is also a time trend analysis in the absence of long-term epidemiology, but is consistent with what we would expect from a large amount of smokers moving to less harmful products. We start observing here in these two, three examples, the positive impacts that switching by smokers to these products have when it comes to some outcomes. Here we talk about the ischemic, the heart disease, and the COPD as measured by the hospital admissions. I believe more and more of this data will be made available. We're engaging in a number of studies in order to answer that important question. I have to say one thing, that the results of the studies, and again, I mentioned this, the results of the studies cannot be taken as the causation. Nevertheless, again, it is a very strong correlation with the only material interventions which happened at the time, which is the launch and commercializations of heated tobacco product. Obviously, these studies and many other studies warrants a further investigation. I believe, as I said, we will continue our efforts in this domain. Let's now move to the next subject, which is the question which is very often asked by many stakeholders. What is about the impact of nicotine? Nicotine is the most well-known molecule in tobacco. It naturally occurs in the tobacco leaf. Because it is so well known and because smoking is also the most common source of nicotine uptake, people tend to wrongly associate all the dangers of smoking with nicotine. We need to understand that for many, many years until recently, essentially, the only form of consumption of nicotine has been through the combusting of the tobacco leaves in the form of cigarettes or other products. As the FDA says, nicotine is not directly responsible for tobacco-caused cancer, lung disease, and heart disease. I know that very often we are confronted with a high level of skepticism when Philip Morris will make a statement of this nature, therefore I refer to FDA, which on a numerous occasion is trying to properly assess or properly explain what exactly is the problem of smoking. Again, nicotine is not directly responsible for tobacco-caused cancer, lung disease, and heart disease. It's also confirmed by many other institutes. Here I present a quote from the Royal College of Physicians, which also clearly state that nicotine is not in itself a highly hazardous drug, and combustion and the harmful chemical which are produced during the process of combustion are the prime cause of smoking-related disease. Products like IQOS with the 90%-95% reduction in exposure to harmful and potentially harmful chemicals will result or should result in a better public health outcome. Again, this has been confirmed by the FDA after a very thorough assessment of all the scientific evidence, not only submitted by Philip Morris, but any evidence which existed by the time by FDA, when FDA was concluding in its MRTP, modified risk tobacco product assessment, that a measurable and a substantial reduction in morbidity and mortality among individual tobacco users is reasonably likely in subsequent studies. Long-term epidemiology needed to fully quantify the benefit of switching to smoke-free products. By all indications today, clearly point what we could or we should expect from this product in the longer run. It is very important, obviously, that even if you have a great product, and a great product offers such significant reductions in exposure, that these products are being adopted by the consumers, by the smokers who otherwise would continue smoking. It's very important in the design of the product to mimic the sensory and ritual experience to maximize the full switching, and the full switching of those who wouldn't quit, who don't quit. That's exactly the role of the nicotine of this product. Very often we have conversations and confronted with the question, why these products cannot offer the nicotine. Well, at this stage, if you offer the product without nicotine, there will be essentially very limited, if zero, adoptions. Remember that IQOS, in all the 66 markets in which we are present with IQOS today, IQOS offers an unprecedented high level of conversions. In excess of 70%, which means that from the 100 people who will buy IQOS, 70% will fully stop smoking. Essentially, they stop interacting with combustible cigarettes. It is not the partial adoption, it's not the temporary use, it's not the complementary type of use to the regular cigarettes. They fully stop smoking cigarettes, that's the power of a product like IQOS in the harm reduction equation. Obviously, it's very important to have a very razor-sharp focus on the unintended use of a smoke-free product. We also clearly see this as a fundamental block in building a sustainable business. I'm very pleased, we have the number of confirmations that our product have not triggered any worrisome levels of unintended consequences measured by uptake of underage people or non-smokers who have successfully stopped quit smoking before. That confirms that the way we designed and the way we are responsibly marketing this product is actually perfectly addressing the problem which we're trying to address. We are crystal clear in our approach. People should not start smoking, you have heard from Philip Morris this in a number of occasion. For those who smoke, the best option is obviously to quit altogether. However, there is more than 1 billion people in the total globe who continue smoking, there are much better choices for them than a continued smoking. These alternative products needs nicotine to maximize full switching away from cigarettes as quickly as possible. The key is, however, in this whole product, is how this nicotine is delivered. As I referred in the slide before, the methods of delivery for the combustion is the worst ever known to humanity method of delivering nicotine. Obviously, as outcome of the combustions, you release all of these toxicant substances, et cetera. By avoiding the consumptions, by eliminating fully the combustion, you really can talk about the products which has this tremendous, offering this tremendous health benefit to the people who otherwise will just continue to smoke. Commercialization of the products I talk about is very important, the responsible commercializations. We're also testing, as we speak, one of our versions of our electronic products with the age log or age verifications. Essentially solutions, as all of us know from our smartphones, that it's not enough to purchase the product. You would need to activate the device. We can do it remotely, only following the positive age verifications if the tests are coming positive. We also have the support from tech companies in allowing the solutions to be accessible to all smokers. That's another important achievement which we can make in order to really make sure that this product will land in the right hands and definitely underage people will not have access to this product. Let me go to the next slide. I mentioned this at the beginning. The whole journey of building, developing, designing and scientifically substantiated product like IQOS requires from Philip Morris very substantial resources. These resources, obviously, majority of these resources is nothing else than the group of 400 plus fabulous scientists who decided to embark on the journey, with us located mainly in Neuchâtel in Switzerland. Now, they have capability. We have built a capability in the company, which allows us to thinking about other products. Not the products like IQOS, not the products which are replacements for cigarette. What else Philip Morris International can do as a contribution to the society, while improving the better, by improving the health and well-being of many people in the world, and also creating another great opportunity for our shareholders. We're talking about the products which will go completely beyond nicotine. I know that very often over the last few months, it's investors day when we start talking about this product, but people don't pay attention at this stage today. It's very difficult to envisage how come a Philip Morris cigarette company is going essentially almost into something which looks like a pharma route. We're very serious about this whole thing. Again, this is not trying to create a holding type of a companies which have very loose associations with each other. We're essentially leveraging the capability and the investment which we have made so far, and we think that investments we can leverage for different purposes. We have made a commitment, and our ambition is that five years from now, by 2025, actually four and a half years from now, we should be in a position to generate the first billion-dollar from the products, again, which have nothing to do with nicotine or tobacco. Let's move to the next slide, please. Okay, to capture the significant growth opportunities beyond nicotine, we're essentially leveraging our scientific and engineering knowledge around inhalation and aerosol delivery. We have learned a lot in the territory, which I have to admit, is left behind by many pharma companies, which is the respiratory drug delivery. We will be making use of our scientific assessment capabilities to support product testing, and you could imagine how much of that capability we have built around developing of the products like IQOS or our smoke-free inhalable alternatives. We're also in a position of repurposing our technology on devices to serve therapeutic purposes, and we'll be able to deliver other substances, I mentioned, beyond nicotine. We're also looking in how we can repurpose, maybe repurpose is the wrong word, but repurposing the tobacco plant, when we're looking into alternative usage of various compounds which are contained in a tobacco plant to serve other community needs that again, go beyond just the pure nicotine extraction. Our focus corridors are the respiratory drug delivery, botanicals, and obviously here we have a capabilities, we have a significant capabilities built in the company, but obviously we don't have end-to-end capabilities needed from a pure development of the product, regulatory part of the process, and the commercialization of the process. We will be working with other partners, and we also don't rule out that there will be a room for the potential bolt-on acquisitions. Expect to hear more from us on this front in the near future. Let's move to the next slide. Just to summarize my part, I think, to characterize the progress against our purpose is to unsmoke the world. I mean, today we have 19 million IQOS users, of which 70% have fully stopped smoking. Those of you who follow the evolution of the cigarette market and the various regulatory and other interventions, never in the history of public health have had such intervention of this magnitude, that in such a short period of time, that many smokers will stop smoking, and in this case, switch to the vastly better alternatives. We have set the very clear targets, to mark where we want to be five years from now. Our starting point today is already 66 markets with our smoke-free products. We aspire to go to the 100 markets by 2025. Today, as I said, about a quarter of our revenues is coming from smoke-free products. By 2025, we want to reach the 50% of the revenues, a minimum of 50%. I mentioned about the $1 billion of revenues, which by that time should be generated from the beyond nicotine products. This is where we are. Six years ago, we had nothing other than aspirations and ideas and the concept and some development, and we've been at the very early stages. Many people thought that we're just doing a sort of the window dressings, that we're not serious, that this is a smoke screen. Many of you are familiar with the classical language used against the companies like ours. I believe during the six years of hard work, dedications, and a commitment, we have demonstrated that we're serious about our mission of unsmoking the world. I spent a lot of time on talking about the product, but I believe we all agree that without addressing the product, it's difficult to talk about the sustainable business in Philip Morris International, which doesn't mean that my company, that this company doesn't pay very high attention to other important aspects coming from environment, society, or the governance. I am pleased now to hand over to Emmanuel, and then Jenny later on, and we'll come back to you during the Q&A session. Thank you for your attention. Thank you, Jacek. Good morning, good afternoon, good evening, everybody, wherever you are in the world. Thank you for being with us. I must say, I'm absolutely thrilled to be detailing now how we are putting our ambition to become a best-in-class company when it comes to sustainability and ESG matters at the very heart of our journey and transformation to become a smoke-free company. Moving to the next slide, I guess I should start explaining why we've been putting together finance and sustainability team in one single integrated team. First of all, I have to admit that I'm just super excited and pleased to be heading these two team in one gathered team and to have responsibility on the two fronts. The reality is that I deeply believe that this combination is a natural one. Today, my belief is that the chief financial performance should actually be called the Chief Performance Officer. There is no performance, overall performance today, if you don't put together, of course, still very strong financial results, but at the same time, strong delivery on a very, very ambitious sustainability agenda. For me, the two are totally entangled. Of course, you need to deliver the great financial profit in order to have the resources to invest on innovation, on all the investments that are going to be needed to drive the sustainability agenda. The other way around, there is no doubt that if you're not good on delivering very, very strongly and with very high level of expectation on sustainability and ESG matter, you're not going to be able to deliver a strong financial return and performance for shareholder on the long term. The two will be, in the future, absolutely play together. We do that in a very holistic manner. Internally, as you can expect, of course, any strategic decision, any decision-making that is really of important for the group today is taking sustainability and ESG as a key element, a key criteria to make the decision. Externally, you have seen that, we're going to elaborate on that. We are in a very transparent, granular, detailed manner, sharing a lot of information with all stakeholders to make sure that they understand the journey we are following, where we are in the journey. Of course, we help that they will therefore be more in a position to onboard with us on that journey, to support the journey and make it even faster and more successfully. I'll detail that a bit later, but we're also calling for a frame, I would say, environment to report on these sustainability matters. I would say more or less the same way that we are today reporting on financial matters. We need a frame, we need something that would be homogeneous, that would be measurable, auditable, and that will allow the benchmark between the various player of the category. If we now go to the next slide. I think that is a very good illustration when we say that we are one integrated now team between finance and sustainability. When we have here, what are the key transformation metrics for us? As you can see, it's really gathering the two component. Of course, you still have finance dimension. Are we focused on the right matters for R&D and commercial spending? Are we focusing on Reduced-Risk Products? Are we growing net revenue coming from RRP on the total of net revenue? These are, of course, still a financial matter that you're going to be able to find in the P&L or in the balance sheet. As you can see, we are also coming with other metrics that are non-financial, or I would say not exactly totally financial when we look at our shipment ratio for smoke-free product, the number of IQOS user or fully converted IQOS user, the proportion of market in non-OECD, where we now are distributing IQOS, or the number of market where IQOS is already more than 50% of the sales. My message at the end of the day is that you see the lines are getting blurry between finance and non-finance. It is one set of integrated number that is, I think, in a very, very, I would say, reliable and clear manner reflecting our transformation journey. If we go to the next slide. We have the dashboard, I would say. How are we doing on our transformation? What are the key elements that we are tracking, and how we are doing on these elements? We are also very clear on the course. We are setting in a very clear manner what are the objectives that we are pursuing, what are the aspiration, and we have this 2025 agenda that is a very nicely ambitious agenda. For me, there is, of course, one-year landmark, which is to get above 50% of our global revenue on smoke-free product by 2025. Quite obviously, to get there, it means that we need to grow very rapidly our IQOS and globally reduced-risk for the business. It start by being above 450 billion stick or equivalent by 2025. More than 30% of our volume will have to be smoke-free by 2025, and we will have to have converted more than 40 million smokers to our reduced-risk product. At the same time, of course, we want to decrease in a pronounced manner our volume on combustible. Of course, we want to make our reduced-risk product widely available, and that's why we are targeting to be present in 100 market. Then on top of that, Jacek said it, we have this beyond nicotine ambition where we intend to capitalize on all the assets, all the goodwill, all the IP that we have been creating through our journey on IQOS and on RRP. Moving to the next slide. We are, of course, super consistent on the way we are dealing with governance on this sustainability and ESG matter. They are the core of our journey, and we are putting in place a very robust governance on this matter. First of all, I said it, we have been gathering to strengthen the finance and sustainability team in one gathered team, and that make it very efficient and powerful. All the work that we are doing on sustainability is reported to the board through the nomination and governance committee at least once a year. We've set up a sustainability committee that is taking place every quarter. Jacek is, of course, part of that committee, and that's when we are reviewing our sustainability agenda and the progress that we are making. We are, of course, being fully consistent again and putting a very significant part of the variable part of the remuneration for the executive based on this element of the ESG and sustainability journey, and whether we are progressing in line with our expectation. I don't want to elaborate on all of them. I will elaborate on a few of them in a second. As you can see, we are covering all the ground. Very clear element on product, very clear element on social and on environment. With strategic initiative, we're also covering the governance. It is a full spectrum of the ESG plus Key Ambition that we are covering. It is also the short-term, so incentive part for the year, but also the long-term or the performance share that are being impacted by our performance on all these metrics. If we go to the next slide, there is one element on which I really want to insist and elaborate, because on the social ambition, it's a key one, it's diversity and inclusion at PMI. First, as you can imagine, gender balance, gender equality is certainly the first element on which we are focusing our attention. We are very pleased to be equal pay certified. We are very proud to have been integrated to the Bloomberg Gender-Equality Index. We are doing a huge work to promote female talent within the company and really have a diverse environment at the level of leadership. Look at these two target, management position to be at 40% by 2022. That's next year. Senior role, so at an even more senior level, if you want, to be at 32% by 2023. That's not the only element on which we are working. That's why in 2020, a Chief Diversity Officer, Silke Muenster, has been appointed, and she's directly reporting to Jacek, to our CEO. I can tell you, she has a pretty busy and loaded agenda. Of course, we want to take the full benefit and feel the full power of diversity and inclusion in other dimension and beyond gender balance. There is the LGBTQ+ group and community from which we certainly want to increase diversity and inclusion. There is all the diversity on race, ethnicity, culture that we want to foster, and there is certainly more inclusion for the disabled that we also want to develop in the coming years. We have a very progressive parental leave policy that I think is really cutting-edge with a new gender inclusive policy that we've been issuing. We are working a lot on developing local talent, so we want to source, develop, groom talent everywhere in the world as we are a truly global company, and we have more than 80 nationalities today at PMI. We are working on making sure that some of the illness and health issue are taken into account, and we create an inclusive environment for these people. Going to the next slide. Another element that I want to elaborate, maybe the Q&A will detail that, it's about carbon neutrality. I am very proud to announce today that we are raising the bar when it comes to our ambition to become carbon neutral on scope one and two. Initially, we were targeting to be carbon neutral by 2030. We are now targeting to be carbon neutral by 2025. Five years gain over time on this fight against climate change. We're going to generate that by, of course, working on our sourcing of energy to be greener, more renewable. We are working on waste reduction. We are also working on our fleet and logistics. For what is missing to make the last mile, I would say, to get to carbon neutrality, we will generate the compensation. I think it's a very good illustration of the fact that despite the fact that we have already a very ambitious agenda on sustainability and ESG, we're going to keep raising the bar, leveling up to make sure that we generate further improvement in the future. Jenny will talk about that in a moment. Moving to the next slide. I certainly want to say a word about all this very granular detail information and the fact that we call for a framework. We are producing all this information. I think we're second to none in the detail that we are providing the transparency. Sometime we have to show that we are not always fulfilling our ambition, but at least people know, understand. I think they can trust us in what we are doing. We're having exactly the same quality of dialogue with all the rating agency, exchanging with them on a very consistent basis. We believe that they are doing a very important job, in making analysis comparison possible, when it's possible. We think that certainly, there is a role for them which is based on facts and element, and they should not exceed this role, and they should not go on biased or non, I would say, numbers or science-based elements. We are very pleased with what we've been reaching with all these rating agency. I've been commenting the fact that we are now part of the Bloomberg Gender-Equality Index. I've been very pleased to see that we got, again, a AAA rating from CDP. We've been joining the Dow Jones Sustainability Indices. Once again, we're very pleased with that. When we are assessed and benchmarked versus peers, we are most of the time, as number one or among the very best of our industry, and it's of course, a matter of great satisfaction. It doesn't mean that we need to stop working, but it's a matter of satisfaction. I would even say when you look at the last S&P rating on our profile, if you exclude the tobacco industry dimension that we compare very well with best-in-class company in FMCG. We are very pleased with that. At the same time, we acknowledge some limitation that had come from this work or from the rating agency. Most of the time they are backward-looking. Sometime we're not too sure of the homogeneity and the comparability of the data, and that can give way to inconsistent rating. For all these reason, that's why we are calling for regulators in a very, once again, similar manner to what exists for finance, that there should be a frame for reporting, once again, with data that are measurable, auditable, comparable, and homogeneous. Once we have that, I think we'll be certainly able to make, in a more clear way, apparent that we are making a big difference versus other companies. Next slide. Actually that will be my last slide, but that one is really super important. I want to insist once again on the key role that investors in general, and of course, ESG investors in particular, have to push the sustainability and ESG agenda through their choices. At PMI, we have a very strong conviction is that these investors have actually two angles or two way to invest to push and accelerate the good development on sustainability matters. The first one is probably what everybody had in mind at the beginning, which is I'm going to invest in companies that are doing already the right thing, ticking all the boxes, showing that they are doing well and with a nice impact. Of course, that will continue to be the case. For us, the other one is as important, and I'm here talking about the company that are improving things. That are coming with this mindset of, I'm going to get the things better through my work, through the investment that I make, through the product I'm going to create. We don't believe for one second that ban or exclusion for companies that are not doing everything perfect or when there is a problem because there is an impact of what they are doing on climate or with some consumer impact. We don't believe that a ban, or an exclusion is going to improve things, because the impact on planet will continue if they are not addressed, and the issue with the consumer will continue as well if they are not addressed. On the contrary, if ESG investors accompanies with company that are coming with the right mindset to change for the better and improve things, they're gonna have a huge impact. First of all, because they're going to foster the ambition of these companies that are willing to improve things. Second, because once they are shareholders, they're gonna make sure that the company is delivering on its agenda to improve things. Third, because they will be, of course, the advocate of what their investment is doing. They will be able to explain that to other people, public opinion, regulators, government, and they will certainly make the journey faster and more successful. Big responsibility, and we certainly count on investor support in that respect. That's it for my presentation. Thank you very much for your attention. I'm now going to hand over to our Chief Sustainability Officer, Jennifer Motles, who is going to share more about how we intend to deliver even more impact on our sustainability journey in the future. Thank you. Thank you, Emmanuel, and hello to everyone. Thank you so much for joining us today. If we can start, with my next slide. We have spoken a lot today about sustainability, but let me speak about what does sustainability mean at PMI, for us, of course, it's about mitigating risk and compliance and really improving our operational and resource efficiency. However, that's not our end goal. We really see sustainability as an opportunity for technology and growth, an opportunity for expanding and growing the way that we understand success and the way that we do our business, following our purpose and focusing on creating value not just for our shareholders but to all stakeholders. We can go to the next slide. Everything starts with materiality. This is how we define our strategy. If you're familiar with sustainability and how is it that you define a sustainability strategy, I'm sure you've seen this before. A materiality process is not something that is unique to PMI, but it's certainly something that we take very seriously. We follow a very structured approach where we identify several sustainability topics. We gather the perspectives of different stakeholders, internal and external. We assess the impact that our company has on these different topics, we build and validate a materiality matrix. What you can see here is this materiality matrix per se. Something that is quite evident, as you can see on the top right of the screen, is that there's one issue that really departs from the rest, and that pertains to product health impact. Of course, we know and we are aware that this is where we can have the greatest impact. That's why, not by coincidence, most of this presentation has focused on the impact of the product. First and foremost, that is the core of our strategy. Of course, we are a big multinational that has a big environmental and social impact, and there are other sustainability issues that we need to address. Let me show you how this materiality matrix translates into. Next slide. This is the result of our materiality matrix, our strategic framework of where and how is it that we allocate resources to create impact. As I was sharing with you before, first and foremost, for our sustainability is about transforming our company to achieve a sustainable smoke-free future. We do that by innovating for better products, operating with excellence, caring for the people that we work with, and protecting the environment. These are our four pillars of action, and each pillar of action has two different tier topics. It's not that some tiers are less important than others, but we understand that on certain ESG issues, we can have a greater impact. What we do is that we have classified them and qualified them, understanding that, first and foremost, there are certain issues that we need to prioritize and address well in order to really tailor our strategy to have a better and more positive impact on society and the environment. Next. Something that we did for the first time last year is that for all tier one topics of our four pillars of actions is that we introduced forward-looking targets. We believe that even though reporting disclosure and transparency is very important, it is equally important to bring clarity of what is it that we want to achieve. Sustainability is about the long term, creating impact and giving direction to all our stakeholders, shareholders, and our own employees about what is it that we want to achieve. For that, it's very important that we report progress and that we can be clear and transparent about our impact. At the same time, it's very important to show where is it that we're going. This set of forward-looking targets mostly focus on our end goal of 2025. We call our 2025 Roadmap. Allow me to elaborate on a few of them. For the first time this year in our 2020 integrated report, we actually communicate progress. On our 2019 integrated report, you would have seen our 2025 Roadmap with our forward-looking goals. This year, you can see exactly how is it that we're progressing. Are we moving fast enough? Where is it that perhaps we're not doing enough or fast enough? Some of these issues pertain to, for example, human rights. We're very proud about the work that we're doing to advance our understanding on the impact that we have on our value chain and on those who work for PMI. For that, we have a forward-looking goal of conducting 10 human rights impact assessments in those countries that we rank as highest risk. We have so far conducted four, and last year we conducted two, one in Mozambique that was focused on our tobacco supply chain and one in Russia. Something that is very special about the human rights impact assessment that we conducted in Russia is that despite all the challenges brought on by COVID, we actually successfully were able to complete it in a virtual mode. That shows the ability the organization has to be nimble and agile and really adapt to difficult times. Another issue that is important for us is the socioeconomic well-being of our tobacco farming communities, and we have been working on this for over 10 years. Because of that, we have a better understanding and granular data knowledge about where the core root causes that create the main problems in our tobacco farming communities. In that regard, we have adopted an ambitious goal of making sure that 100% of the farmers that supply tobacco to PMI are actually making a living income by 2025. We're making good progress on this as well, and you can find more information about it in our integrated report. Next. As we develop our sustainability strategy, we continue to build a base for embedding sustainability into everything that we do. We have identified our corporate purpose and built a culture around it. We have implemented strategic ESG practices and created accountability structures for ESG integration. We've made operational changes to ensure that our sustainability strategy is successfully executed, and we have and remain committed to transparently reporting on progress and building relationships with our investors. I hope that this is clear that this is a journey in which we are becoming more sophisticated and mature, and that your engagement and engaging with different parts of society can only help us better and improve. Next. Last but not least, I couldn't finish my presentation today without sharing with you and reminding you all that if you want to learn more about our sustainability strategy, you can check out our integrated report that was published last week. We also have a dedicated sustainability materiality report that describes in detail, in a very transparent way, how is it that we define our strategy. In addition to that, you can download our performance metrics separately. Last but not least, our integrated report follows the integrated reporting framework in alliance with GRI, with the UNGC, the Sustainable Development Goals, and its corresponding targets. Something that is unique for this year is that in seeking to align with SASB, not only for the tobacco sector, but as a result of our transformation, we also reference the technology standard, more concretely on hardware, and we also reference the healthcare industry standard, more concretely on medical equipment. Last but not least, we're also reporting following the World Economic Forum's index on measuring stakeholder capitalism. It is just one more way to showcase how is it that we are making progress against our purpose. Thank you again for being with us today, and I look forward for your questions. Thank you. Thank you, Jennifer. It's now time for the Q&A session, for which we have allocated around 20- 30 minutes. Joining Jacek, Emmanuel, and Jennifer will be Dr. Moira Gilchrist, Vice President of Strategic and Scientific Communications. We also invite webcast participants to submit questions using the question box on the right-hand side of the screen. Time permitting, I'll come to these later on. We now invite live participants to ask a question by raising their hand. Please keep to one question at a time and rejoin the queue if you wish to ask another question. Maybe I take it. Absolutely. I mean, the whole aspect of this transformation is to make it in a way that all the parties which are somehow involved in our combustible business model, and what we can do that we all together go through this transformation with possibly limited impact. I mean, we're working, for example, on the number of alternative crops to the tobacco, but we also have to take into consideration the income, obviously, which the tobacco generates for the farmer. The crop of the tobacco for the farmer would have to be replaced with a crop which sort of offers the similar sort of economics. I mean, the attractiveness of tobacco to many farmers rests with the fact that, as you know, tobacco is not a commodity, it's not a traded commodity, right? Therefore, the farmer is well somehow insulated or protected from speculations and all of the ups and downs of the classical commodity market. It has a very good visibility into demand, and that visibility actually helps into making sure that year on year you have the right number of the farmers and so on, with the right expected yields, tobacco yields. There is not much of a surprises over supply or farmer is left with unsellable stock. I do believe that more efforts, we have started quite a few programs with alternative crops, also the crops which I believe could benefit the general public, right? I mean, there are some great nutrients to nutritionally rich crops, which could offer similar sort of profitability to the farmer. I think it will be a mix of all of the interventions, which somehow will also help the farmers' community to navigate through that transformation. I mentioned also that we're spending quite a significant effort on finding the, I call it the repurposing of a tobacco leaf. I do believe there's another factor which in the long run, at least to some extent, may contribute to how do we take care about the farmers' community. It's very important for us. These are the hardworking people, and we have spent so many years on upgrading the agronomy practices. They're actually very skilled farmers, and it's very close to our heart to make sure that they land at the end of this transformation with the minimum impact possible. Thank you. Okay, thanks. We have a few questions here which have been submitted by the written box. Let me read this one out from an analyst. The transformation of the company is happening quickly, and it's clear that PMI seems to be focused intently on accelerating this transformation and is doing it with a continued shift in investments away from combustibles and to smoke-free products. The question is trying to understand if there's more PMI can do to influence this transformation, either by spending more to expand RRPs or is it a matter of consumers and competitors catching up to PMI's vision? Well, maybe I take this. Yes, obviously, every organization always can do more and better and faster. It's the classical impact of a learning curve. I wouldn't be honest, admitting that PMI internally have the reservoir of agility, unleashed agility. Me and my colleagues at SMT are working on it. To really look at the fast acceleration of the trend of going to smoke-free, frankly speaking, you need the two things which are desperately needed as we speak. One is to obtain the absolute clarity and stop confusing the smokers what is really the problem of smoking. I have seen it on a number of occasions when the smokers will tell you, "Your IQOS or e-cigarette product or other non-combustible products, they contain nicotine, that's the problem." I thought I was very crystal clear today in my presentations. Nicotine is not the prime problem. We essentially, everyone who claims so is confusing the smokers, and smokers are using this as another excuse not to do anything about the smoking. They continue smoking. Every time when I hear any responsible claims about the nicotine and its negative impact, the net result is people are going back to what they used to do, which is smoking cigarettes. This is seriously highly irresponsible. Second thing is the regulatory environment, which in many markets either completely ban access to the product, and unfortunately, this continues to be celebrated by anti-tobacco organizations or NGOs. Me, I'm looking at the celebrations that the markets are not accessible, so they'll make not accessible or don't have an access, they don't have access to these products. Those organizations who are supposed to work on addressing the problem of smoking, since they are not interested in solving a problem of smoking, they're interested in perpetuating the problem of smoking. This is at this stage when we stand today, 2021, science, technology, everything exists, and these claims are becoming highly irresponsible. My dream or ask or whatever you want to call it is, can we get together and make sure that within, as I said, within 10-1 5 years in most of the markets, if everyone acts together, we can put the smoking behind us. We never also, to be very clear, we never have said that the products like IQOS are risk-free. These products are not for the general public. These products are developed, designed for a very specific audience, which are smokers which would continue to smoke. Can we be serious and responsible that these products today is the second-best choice smokers can do other than a continuing smoking. Obviously, quitting smoking is the best one. The two accelerations, which come from regulations, but we have countries like New Zealand recently, and you remember New Zealand was always on the very aggressive, quite rightly, tobacco regulations, combustible regulations. They realize without the help of innovations and technology, they will perpetuate the problem of smoking. Thank you. Okay, we have another question here which has been sent in. The question is, keen to know about plans to develop harm reduction products at a price point and level of acceptance that will work in low- and middle-income countries. Absolutely. I mean, and our desire when we have said, and we said it been very responsible. Our desire is to unsmoke the billion people who would continue smoking. Therefore, I need to think when we're thinking and we're designing the products, when the economic barriers will not constitute the problem for those people to have access to this product. Obviously, we're working on having an access by consumers in these places to informations about the product, and obviously, the affordability barriers would have to be addressed. As you well know, in majority, actually, majority of the countries, these products, quite rightly, are being taxed at a level lower than a cigarette. Sometimes we're being criticized for the thing, but this is actually an incentive which we're passing to the consumers to create another economic incentive that rather than a continual smoking cigarette, they switch to this product. I believe the mix of the regulatory interventions and obviously on our side, make the product, which is intuitive, which is low on the cost, therefore we lower the barriers to entry, et cetera. We'll go for the so-called lower middle-income consumers or countries. The truth is also, and we have talked about this number of occasions, we also on our side, as much as we can, are lowering the economic barrier to entry for this product by, for example, subsidizing the devices. Okay? We're taking a lot of efforts that for consumer to change the behavior, to change the habit from smoking, it requires a multi-pronged type of strategy and approach. We need to explain the benefit, why this is better than continuing smoking, remove, if possible, the economic barriers, the affordability barriers, and so on. Thank you, Jacek. We have another question here potentially for Moira. How do you deal with those externally, for example, around World No Tobacco Day recently, who question the science that PMI carries out or even questions the FDA's MRTP authorization? Thank you, James, and hello, everybody. Yes, I've personally seen a lot of these statements, both in the scientific literature but then also in the media. I think oftentimes I would characterize them as opinions of individuals and organizations who are not necessarily scientists or who are simply opposed to either products or companies in this space. I think from my perspective, I think what's important is not to focus on what we think or feel about tobacco products or companies, but really to focus on the scientific evidence and also focus on what's the best approach, what's in the best interest for men and women who would otherwise continue to smoke. Really, that's exactly what the FDA did, and that's what they have to do according to the statute under U.S. law. They granted authorization after a very serious and long-term multi-year scientific review by their experts. They came to the conclusion that the product with its authorized messages meets the standard, as they call it, of being appropriate to promote the public health. I think this is what we should be focusing on. Jacek mentioned in his remarks the words of FDA, the available evidence without conducting long-term epidemiological studies demonstrates that a measurable and substantial reduction in morbidity and mortality among tobacco users is reasonably likely to be seen in subsequent studies. Reduced exposure messages is one important step forward, and we're continuing to build the scientific evidence. Again, Jacek showed you some interesting time series analysis that gives us real hope for the future of what epidemiological studies will show. All I ask is people to really focus on the scientific evidence and focus on men and women who would otherwise continue to smoke. Let's have a serious discussion about what the next step should be. Okay. Thank you, Moira. Another question submitted here, perhaps for Emmanuel. A competitor announced recently it was making its vaping products carbon neutral. Is PMI considering doing the same for IQOS? Thanks, James. As I've been clarifying, we are actually raising the bar to become carbon neutral globally for scope one and scope two. We're not too sure that to take one part of the business is really meaningful because that will rely on a lot of allocation and how you are looking at things. We prefer to work on what is really making impact, which is a full company. As you have seen today, we are coming with this five-year acceleration. It's a significant effort that we are making to further improve our roadmap on becoming carbon-free. For us, that's what is really important and what matter, rather than looking at the small piece of the company that is probably not meaningful. Thank you, Emmanuel. We've got quite a few questions coming in here, so I'll keep going. Another one here, perhaps also for Emmanuel. What is your view on linking some of the same sustainability/ESG KPIs that are part of the compensation structure to those in financing sources? Could this be another way to further solidify your commitments to the investment community? Sorry, James. The connection was bad for one second. Connecting finance and ESG element, correct? Yes. To financing sources. I think it's around having. Yeah. Yeah. Well, that's a very interesting thought, and we are giving some consideration to it. We think it would make sense, and that would probably further highlight, confirm, support our commitment on our sustainability and ESG agenda. We're going to look at that. Of course, that will require that we come with the, I would say, criteria parameters that are relevant to our journey. We see that possibly as a very interesting angle, and we're going to explore it. Thank you. Another investor question. The largest sustainable investment strategy continues to be negative or exclusionary screening. Appreciating the FDA regulatory history in the U.S., how important will the consumer adoption of IQOS in this predominantly combustible market be to moving the company in a positive direction, i.e., the reduced risk claim halo effect and de-risking the total company portfolio? Should I take that one as well? Yeah. No, happy to start. Jacek, I'm sure you will complement. I think it's a journey where we're going to go step by step. It's certainly important that, in the U.S., we are also developing, through our license to Altria, the business and create more awareness on IQOS, and certainly, therefore, increasing the impact for our product there. It is clear that we have a strong base of shareholder that are in the U.S. They know about our product. They learn about our product through what we are doing elsewhere. They are just in the beginning of the launch and the development in the U.S. I have little doubt that as more consumer will go to IQOS, adopt this reduced-risk product, the smoke-free category developing, that will have an impact on the perception, for sure, and understanding of what our journey means for smokers and how we can really change the life of 1 billion people globally, certainly, having people next door that which is a neighbor adopting and creating some proximity and better understanding. Okay, thank you. Jacek, I don't know whether you want to comment on this one. No, I think we covered it. Great. Okay, we have a follow-up question from the live Q&A line from Gaurav Jain of Barclays again. Gaurav, please feel free to unmute your microphone and ask your question. Right. Thank you. Yes, I had a question on the single-use plastic ban that will happen in EU, I think, over the next two years, as part of which littering will be prevented. When you are developing all these Reduced-Risk Products which come with devices and packaging, how are you thinking in a comprehensive way, the issue of littering and the circular economy and how these devices could be recycled? If you could just speak on that would be really helpful. Thank you, Gaurav. I think the line was not perfect, but I think the question was around single-use plastic directive in Europe, littering, particularly for the new products. Perhaps that's one that Jenny could take up. Thanks, James. Sorry, Gaurav, I couldn't hear your question very well, but I can refer to plastic that I guess is what James was talking about. We have a related forward-looking target to that is to halve the amount of plastic that we have in our product by 2025. The initiatives that we have related to that pertain to, A, reducing litter, so anti-littering campaigns, and B, developing and putting in place principles of eco-design and circularity. Putting all of that together, we're looking to halving the amount of plastic that our products have, specifically our filters. That was the question. Okay, thank you. There is an important element which maybe is not that widely known, that actually we have a less problem with the littering on the alternative products like IQOS than on the cigarettes. The delta, the factor by which, and we measure this in a, at least if I remember, in a one market pretty solidly, and the factor was, I remember, by a factor of 10 or so, you have a less littering of an IQOS product than on the classical combustible cigarette. That is something which we also learn from the behavior of the consumers, that we might actually be, by faster switching consumers to the alternatives, we actually may also address the littering problem to a large extent, obviously not to full. Okay. I think we have time for one more question, so I'll just pick one from the questions submitted via the portal. You talked about moving a significant portion of your selling and marketing expenses towards RRPs at a much larger portion than your RRP sales as a percentage of total sales. Do you expect that to continue to expand this transformation of the business? You have lost market share in combustibles of late. Do you believe this is a function of this significant shift in the company's efforts and investments behind combustibles? We will continue with investing disproportionally behind the RRPs compared to the combustibles, because this is really where our strategy and our vision, et cetera, is. I am very pleased that even during the most challenging times, like last 15- 18 months, we have not lost the eye from the ball on IQOS, and we opened the markets, further markets. We brought the product accessible to the larger number of geographies, and we continue with the consumer acquisition, and IQOS actually volumes and the share within a category, within a total combustible nicotine was growing. Yes, we had some here and there, pressures on the market share on the combustibles, and we said that, for us, maintaining our strong leadership position in a combustible is a very important component of our transformations and the journey to the smoke-free. As only by maintaining and continue to having a high relevance with the smokers for our combustible products and the relevance with the trade, for example, et cetera, we are actually accelerating the conversions to RRP products. To be very frank, the success of IQOS in the places like Japan, Italy, many European markets, et cetera, is to a large extent, thanks to the fact that we had an access to the smokers, because very often they've been using our products. We had an access to the trade, so we could shortcut a lot of these interventions and go directly And convert the smokers to IQOS. Very few people don't really see this whole thing, but in essentially all markets where we go with IQOS, one of the things which we implement is to putting an information about the smoke-free product, IQOS, via the text, leaflets, inserts, onserts or QR codes, wherever legally it is possible on the packs of the consumable products. It gives us this frequency of the communications of staying in touch with the consumer. Yeah, that's the answer to the question. Okay, great. That concludes the Q&A session for today. I'll now turn it back to you, Jacek, for any closing remarks. Well, I think the most important thing is, and this is really which is somehow disturbing in absence of other word, is these conversations which we have, which end up with an outright exclusion without really spending the time and thinking. Actually by participating and supporting and pushing and challenging the management of PMI, we actually can achieve our transformational goals even faster. One of the reasons why we started to organize this as a first conference, which we organize around the sustainability, is also to address what Emmanuel had in his presentations, et cetera. I do believe that investors have a role to play, but you only can play that role if you are in the room. If you leave the room, none of the company will change. Nothing will change. It's only by the dialogue, participations, negotiations, push, motivations, incentives. This is how you can drive the change, and I'm strong believer that you can change any company, but you need to participate. You cannot just abdicate. It's too easy to abdicate. Thank you very much for your attention, and I hope we'll have a number of opportunities, myself, Jenny, Moira, Emmanuel, to engage with you.