Good day, and thank you for standing by. Welcome to the Philip Morris International Fourth Quarter 2024 and Full Year Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, James Bushnell, Vice President of Investor Relations and Financial Communications. Please go ahead. Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2024 fourth quarter and full year results. The press release is available on our website at pmi.com. A glossary of terms, including the definition for smoke-free products, as well as adjustments, other calculations, and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial measures cited in this presentation, are available in Exhibit 99.2 to the Company's Form 8-K dated February 6, 2025, and on our Investor Relations website. 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 projections or forward-looking statements. I'm joined today by Jacek Olczak, Chief Executive Officer, and Emmanuel Babeau, Chief Financial Officer. Over to you, Jacek. Thank you, James, and welcome everyone. We delivered an outstanding performance in 2024 with all key elements of the business contributing strongly to delivered best-in-class organic top and bottom line growth. This resulted in significant acceleration in adjusted diluted earnings per share growth in both currency neutral and, equally importantly, dollar terms, as we mitigated substantial currency headwinds. Our business outperformed the industry and consumer packaged goods overall with growth across all categories to deliver our fourth consecutive year of positive volumes. IQOS continued its strong underlying momentum with continued excellent growth in Japan, robust progress in Europe despite the EU characterizing flavor ban, and further strong growth in other global markets. Importantly, the growth of IQOS is increasingly profitable as the benefits of scale and pricing more than offset continued substantial growth investments, including brand-building activities and innovations on devices and consumables. ZYN once again delivered strong growth in the US as 2023 demand acceleration continued in 2024. This resulted in short-term supply challenges, which we have progressively addressed throughout the year, working towards our goal of matching existing user demand. As we unlock further capacity, we will be in a position to explore the full potential of this dynamic category. Outside the U.S., shipments grew by 75% as we increased our global presence in nicotine pouches to 37 markets. In e-vapor, VEEV is progressively contributing to growth with encouraging volume momentum in closed pods and strengthening market position with a premium offer. Our combustible business performed well on all metrics. We delivered double-digit gross profit growth in Q4 of last year and around 7% organically for the year, led by strong pricing, resilient volumes in certain markets, and the ongoing benefits of our cost actions. Overall, our strong performance across all categories and regions drove meaningful operating leverage, notably in our smoke-free business, alongside cost efficiency initiatives across the entire value chain. This enabled us to deliver operating cash flow and adjusted diluted EPS above our expectations at the start of the year, despite ongoing currency and input cost headwinds. Our transformation journey and growth drivers have excellent momentum, and we are confident in our ability to deliver sustainable growth and returns in 2025 and beyond. Over the past year, we achieved several key milestones in our smoke-free journey, including the 10-year anniversary of IQOS and ZYN. Our smoke-free business is large, profitable, and growing fast. Our total smoke-free net revenues reached almost $15 billion in 2024. Combined with a strong combustible performance, our company also surpassed $10 billion in adjusted net earnings for the first time. Our smoke-free business reached 40% of total PMI net revenues in the fourth quarter and around 42% of adjusted gross profit, as our transformation becomes intrinsically profitable. In our top five markets by operating income, around 60% of net revenues were smoke-free. We have deployed our smoke-free multi-category strategy across almost half of the 95 markets with smoke-free products, and we closed the year with over 38.5 million estimated adult users across heat-not-burn, oral, and e-vapor. Our smoke-free business surpassed 1 billion cans, including 644 million cans of nicotine pouches. The ZYN brand continues to resonate with adult nicotine consumers across the U.S., where it is the number one smoke-free brand and the fourth biggest nicotine brand, and also grows internationally. We are also very pleased that the robust science and responsible marketing practices behind ZYN were recognized by FDA through the recent marketing authorization of all currently commercialized U.S. ZYN variants, making ZYN the first and the only authorized nicotine pouch brand in the United States. We remain at the forefront of the effort to increase understanding of smoke-free products and advanced tobacco harm reductions among consumers and regulators. We are encouraged by the increasing number of governments adopting tobacco harm reduction policies to incentivize switching to reduced nicotine products instead of continuing to smoke, which is a sound public health policy. A number of markets are also moving favorably with regards to robust regulation of nicotine pouches and e-vapor. Now, regretfully, there is also resistance in many places, often driven by ideology, not facts and science, and therefore a considerable amount of work is still in front of us. While reaching important milestones is pleasing, after 10 years, we are still in the early stages of industry transformation. With our strong brands and our innovative and commercial capabilities, we have many years of opportunities and growth ahead. I look forward to sharing more with you at the upcoming CAGNY Conference on February 19. I will now hand over to Emmanuel to discuss our results and outlook in more detail. Thank you, Jacek. I will start with the headline financials for the year. As Jacek said, this was a truly outstanding year of growth across our business, as the rapid progress of IQOS and U.S. ZYN was complemented by emerging growth contribution from VEEV and ZYN internationally, and much improved combustible performance. We delivered in line or above our last communicated expectation across key metrics. Organic net revenue growth of plus 9.8%, adjusted IMS and shipments of HTUs, and combustible pricing of + 8.7% were strong. Excellent total shipment volume growth of + 2.9%, including ZYN and combustible volumes, performed at the top end of our expectation. Coupled with accelerated cost efficiencies, this led to better than expected + 14.9% organic operating income growth and + 15.6% currency-neutral adjusted diluted earnings per share growth. Our clear focus on delivering performance in dollar terms was reflected in the + 9.3% growth in adjusted diluted EPS. As a result, we achieved record operating cash flow of $12.2 billion, which was significantly above both our initial and most recent forecast, supported by excellent profit delivery and favorable working capital. Combined with strong adjusted EBITDA, this allowed us to significantly improve our leverage ratio, which I'll come back to later. We closed the year strongly in Q4 with organic net revenue growth of + 7.3%, despite the impact of timing and comparison effect, most notably related to Red Sea disruption, the EU Characterizing Flavor Ban for HTUs, and pre-launch ILUMA i device shipments. This was driven by total volume growth of plus 2.3% alongside positive smoke-free mix and robust pricing. Combined with operating leverage and manufacturing efficiencies, we delivered close to + 12% organic operating income growth and + 10% currency neutral adjusted diluted EPS growth. In dollar terms, adjusted operating income increased + 15%, and adjusted diluted earnings per share grew + 14% to $1.55. This includes a positive currency impact of $0.06, which reflects an unfavorable transactional impact in the prior year in Argentina, as well as the move to hyperinflationary accounting in Egypt, which also had a negative impact on our organic growth of around one point on net revenues and two points on operating income. The non-cash impairment of our RBH equity investment had no impact on our adjusted financials. In future, we may benefit from RBH dividend income, but we do not include any impact in our 2025 forecast at this time. Let's take a step back and consider 2024 in the context of the last few years. Our organic top-line delivery has been consistently strong since the pandemic and further accelerated this year as both smoke-free products and combustibles stepped up their trajectory. Clearly, 2024 was also a standout year for adjusted diluted EPS growth. The profitability of our smoke-free business accelerated due to the operating leverage of IQOS, including scale, favorable unit economics, pricing efficiency, and the impressive accretion from ZYN's rapid growth at superior U.S. margins. We also benefited from a notably robust combustible performance, which provides important structural support for our transformation journey. These dynamics are further demonstrated by the organic top-line and gross profit growth of both categories in the year. Our smoke-free business accelerated to plus 17% net revenue growth and plus 23% gross profit growth, reaching close to $10 billion in gross profit. This drove an impressive +330 basis points of organic gross margin expansion, fueled by the factors I just mentioned. On the combustible side, net revenue and gross profit grew organically by + 6% and + 7%, respectively, leading to + 60 basis points of organic gross margin expansion. Our combustible business is once again contributing positively, with pricing and cost efficiency more than compensating for the third year of significant input cost headwinds, which we expect to ease in 2025. I would also note that adjusted gross margin for smoke-free products were plus 490 basis points higher than combustible in Q4 and plus 270 basis points higher for the year overall at 66.6%. While we continue to target gross margin expansion in combustible, we expect this gap to grow over time as we continue to drive profitable growth from smoke-free products while investing in new markets, brand building, and innovation. Taking a closer look now at our volume performance, we delivered our fourth consecutive year of shipment growth, up 2.3% in the fourth quarter and close to 3% for the full year. Including our VEEV e-vapor business in equivalent unit, this growth was +2.4% and +3%, respectively. Our total 2024 smoke-free volume growth, including VEEV, was +13.5% or 19 billion units equivalent, an acceleration compared to 2023. For IQOS, we delivered HTU adjusted in-market sales growth of close to 13% and shipment volumes of 139.7 billion, both broadly in line with our expectation. Adjusted IMS growth accelerated in H2 to close to 14%, essentially in line with our target of +14% to +15%. This includes dynamic growth of close to +11% in Europe, with strong momentum across the large majority of markets. As I touched on earlier, Q4 HTU shipment growth includes the impact of additional shipment in the prior year to prepare for the EU characterizing flavor ban and the phasing effect of additional shipment to Japan in H1, notably due to Red Sea disruption. Our overall smoke-free business grew 2024 shipment volume by +24.6%, including ZYN's U.S. growth of +51% to 581 million cans. Snus and moist snuff volumes were stable. Cigarette shipments grew by +0.6%, approximately in line with the estimated growth of the international industry. The growth of the cigarette market can be largely attributed to growth in markets where smoke-free products are not permitted, such as Turkey, Brazil, and India. Excluding such markets, we observe a low single-digit decline consistent with historic trends. Our strong full-year top-line growth of almost + 10% was again achieved through a combination of volume growth, pricing, and the positive mix impact of the shift to smoke-free products. Pricing contributed + 6.2%, reflecting almost +9% combustibles pricing and + 2% for smoke-free products. Smoke-free also drove a positive mix impact of + 1.9% due to the higher net revenue per unit of both IQOS HTUs and ZYN. Overall smoke-free products contributed + 2.2% to overall group top-line growth for the year, demonstrating ZYN's role as a meaningful accelerator to our performance. As in prior years, geographic mix was negative primarily due to combustibles, but to a lesser degree given robust net revenue growth in Europe. Moving down to adjusted operating margins, we delivered full-year organic expansion of plus 180 basis points and plus 100 basis points in dollar terms, comfortably achieving our objective of expansion on both bases. This reflects strong Q4 with OI margin expanding organically by plus 140 basis points as gross margin expansion outweighed SG&A investment. Full-year gross margins increased organically by + 160 basis points and by + 120 basis points in dollar terms. SG&A drove plus 20 basis points of margin expansion enabled by cost efficiency action despite significant reinvestment and commercial support behind our smoke-free business and US capabilities, especially in H2. We delivered over $750 million in gross cost efficiency for the year, with cost productivity across smoke-free and combustible and continued back-office savings. This places us well on track for our 2024-2026 target of $2 billion. Focusing on our smoke-free business, we grew our estimated user base by over 5 million people in 2024 to reach approximately 38.6 million legal-age users as of December the 31st. This includes an estimated 32.2 million IQOS users, 5.7 million oral users, and one million VEEV users. I am pleased to report robust IQOS user growth of +3.4 million versus prior year and + 1.5 million during H2. This growth is broad- based and consistent with recent years despite limited new markets opening and the EU characterizing flavor ban. Overall, added + 1.5 million users year-on-year driven by ZYN's continued strong traction with legal-age marketing continuing in the U.S. despite supply constraints. Zooming in now on IQOS, strong user momentum is reflected in adjusted IMS volume with 2024 growth of over 15 billion units in line with the prior year despite the impact of the E.U. flavor ban. This growth is also in line with the five-year average and more than one billion units above when excluding contributions from markets launched in the current or preceding year. Importantly, following the rollout of IQOS ILUMA and with the increasing scale of the business, the profitability of IQOS is growing strongly. We illustrate this here with the index product contribution over time at constant return rates. As we've explained before, the upfront cost of the business-to-consumer operation results in declining impact of the cost per user over time as the user count grows in a market. This is a dynamic we expect to continue in the future. Turning to IQOS in Europe, as expected, HTU adjusted IMS growth accelerated strongly in H2 to almost plus 11%, following H1 progression of around 8%. This resulted in robust plus 9.4% growth overall for the year despite the significant disruption of the characterizing flavor ban. This double-digit adjusted IMS growth in H2 was driven by strong progress in a large number of markets, including growth of around 20% or more in markets such as Bulgaria, Greece, Germany, Romania, and Spain, while growth was less dynamic in Poland, Czech Republic, and Italy. Recovery in Italy is ongoing following the disruption of the flavor ban, although at a slightly slower pace than expected in Q4. The continued momentum in the region drove Q4 adjusted share growth of + 0.9 points year-on-year to 10.6%, with adjusted IMS volume reaching 13.5 billion units on the fourth quarter moving average. Q4 shipment volume increased by +6% against the prior year comparison, which included additional volumes related to the implementation of the flavor ban, notably in Italy. The flavor ban is now active in all but six EU markets, with a generally consistent pattern of short-term disruption followed by a return to the pre-ban growth trajectory. Following an impact of around 2 billion units in 2024, we expected a 2025 impact of around 1 billion on both shipment and IMS, including annualization effect, with the most prominent effect in the first quarter of 2025. We also continue to roll out the IQOS ILUMA i device and new consumable variants such as DELIA and LEVIA to more markets, providing an increasing choice of taste profile and price points to adjust the market. Looking at our Key Cities in Europe, we reached a number of important milestones, with Budapest achieving over 40% share, Rome over 30%, and London approaching 10%, with Madrid not far behind. Japan delivered outstanding results yet again, with HTU adjusted IMS growth of close to plus 13% in both the quarter and the full year to reach an adjusted Q4 share of 30.6%, + 3.1 points higher year-on-year. This was supported by continuous share growth of TEREA and SENTIA, as well as a positive traction of the IQOS ILUMA i device as we reach over 9.5 million adult users. Offtake share in Tokyo for the overall heat-not-burn category reached 52.8% in December, with the addition of Shizuoka and Hamamatsu to make 10 cities and five prefectures exceeding the 50% share threshold. On a national offtake basis, 47% of the total industry is now smoke-free. Outside of Europe and Japan, adjusted in-market sales growth continued to grow strongly in Q4. Promising growth in a number of markets is illustrated by HTU shares in Saudi Arabia, Indonesia, and Mexico. Continuous innovation is a key driver of this growth, with TEREA clove variants and capsule in Indonesia driving an uplift in the quarter and some good initial results from the trial of BONDS, our lower tier offering. IQOS continues to perform well in Korea, though offtake share performance was impacted by the dynamic of the combustible market where competitors' supply normalized and a very strong prior quarter following the launch of IQOS ILUMA. Our duty-free HTU offtake share improved nicely as we start to harness the strengths of our multi-category portfolio to drive sales of IQOS, ZYN, and VEEV together. Turning now to the U.S., where our IQOS ILUMA i, the first campaign in Austin, is progressing well, and we expect to commence direct sales of device and HTUs in Austin around the end of Q1. We are seeing high interest from consumers with over 4,000 adult smokers on our waitlist. As we learned from this initial consumer engagement, we are planning the rollout of pilots to other cities. As in Austin, our focus will be on selective adult consumer engagement and building awareness through category and brand education in legal-age smoker communities. We do not assume any significant volume from U.S. IQOS before the at-scale launch of IQOS ILUMA, and we continue to hope for an FDA authorization in H2 2025. Switching categories now to ZYN, where the continuous demand supported Q4 U.S. shipment volume growth of +42% year-on-year to 165 million cans. Despite ongoing production limitations, this reflects an acceleration to a near-record sequential increase of + 16 million cans versus Q3. On a full-year basis, shipment volumes grew by + 196 million cans versus 2023, highlighting both the magnitude of growth and the tremendous effort made to maximize our production capacity. ZYN category share incrementally improved through the second half, reaching 65.9% in Q4 as we progressed in increasing production further, supported the growth of the category. Indeed, category growth slowed significantly during the summer peak of our supply constraint, as shown on this chart. As the situation started to gradually improve, ZYN was again leading and outpacing the category. I am pleased to share that underlying demand for ZYN from adult consumers continued to grow in Q4 and was higher than previously assumed. We continue to experience some out-of-stock at retail, and while production capacity continues to increase, we now target full normalization sometime in the second half of 2025. We continue to target around 900 million cans of capacity for the full year from our Kentucky facility, and as supply continues to improve, we will look to further expand growth beyond our existing consumer base to other legal-age marketing users. Our greenfield site in Colorado is due to come online in early 2026, and we believe we are well-positioned to capture ZYN's potential over the coming years. Responsible regulation of the industry is fundamental to supporting sustainable future growth for this dynamic category. We are therefore encouraged by the recent FDA authorization for the marketing and sale of all ZYN nicotine pouches currently marketed in the U.S., following extensive scientific review by the agency. As mentioned, this makes ZYN the first and only authorized nicotine pouch in the market. Among several considerations were the substantially lower amount of harmful constituents versus cigarettes and other smokeless tobacco products, as well as current low-use usage levels. The FDA's authorization marks an important step in the protection of public health by recognizing the role that ZYN can play in providing better alternatives to cigarettes and other traditional tobacco products for legal-age adults. We remain committed to driving industry standards in under-21 prevention, with policy and initiatives designed to help prevent youth a ccess. Further, combating trade in illicit tobacco and nicotine products remains a core priority, and we dedicate a significant level of resources to support this effort. ZYN also has an exciting future outside of the U.S. While still in its very early stages, international nicotine pouch shipments grew by 27 million cans or +75%, and we already see strong volume momentum in key international markets such as Pakistan, South Africa, Mexico, the U.K., and global duty-free. We launched nicotine pouches in six new markets during the quarter to reach a total of 37 worldwide, including Italy, Romania, and Thailand. Using e-vapor, we continue to see strong consumer traction behind VEEV ONE, the brand's overall top three post-launch position in 13 European markets, and held the number one position in five, including Italy. VEEV plays an important role within our multi-category strategy as an increasingly trusted choice for smoke-free category poly users and a source of incremental growth with improving economics. Our primary focus for the combustible business is to maximize value over time while supporting the growth of the smoke-free business. Pricing and cost efficiencies are the key levers to drive performance while maintaining our category leadership. We delivered another robust volume quarter with growth of 1.1%. All regions contributed to strong Q4 organic net revenue growth of +6.2%, with gross profit increasing by +10.8%. Full-year pricing of +8.7% includes strong contributions from Germany, Egypt, and Turkey. We expect organic 2025 combustible pricing to normalize to +5% to +6%, partly reflecting Egypt's move to hyperinflationary accounting in Q4 2024. Category share was flat in Q4, with positive contributions from Turkey and India, offset by decline in Egypt and Indonesia, with continued growth in the below-Tier 1 segment. On a full-year basis, we grew category share +0.1 points, reaching all-time high for both Marlboro and our global brands overall. This brings me to the outlook for 2025, where we expect another year of strong growth from all categories, driving top and bottom-line delivery. We anticipate a fifth consecutive year of positive volumes, with growth of up to +2%, notably driven by another year of strong growth in smoke-free products at around +12% to +14%. For IQOS, we expect a continuation of strong momentum, with the absolute growth in HTU adjusted IMS volume expected to be at a similar level to 2024, translating into +10% to +12% growth. We expect shipment growth to be broadly in line with this double-digit trajectory, subject to the usual inherent volatility of shipment timing and trade inventory movement. We expect ongoing strong growth dynamic within the U.S. nicotine pouch category. Despite the supply constraints I mentioned before, we forecast a U.S. ZYN volume shipment range of 780 million - 820 million cans for the year, supported by capacity expansion. This represents another year of structural acceleration in volumes, with an expected increase of approximately 200million- 240 million cans compared to the 196 million can increase in 2024. This supports a total PMI forecast of + 6% to + 8% organic net revenue growth. This includes a headwind of over 100 basis points due to hyperinflationary accounting in Egypt and the technical impact of implementing a new commercial model in the Indonesia below-Tier 1 segment. The change in Indonesia has no effect on operating income. Moving down to the P&L, we expect ongoing smoke-free mix effect, operating leverage, and cost efficiency to drive double-digit adjusted operating growth of + 10.5% to + 12.5%. This includes strong gross profit growth, with both gross and adjusted operating margin forecast to expand in both organic and adjusted dollar terms at prevailing exchange rates. We expect SG&A costs to increase broadly in line with net revenue on an organic basis as we invest behind our smoke-free products. We forecast currency-neutral adjusted diluted EPS growth of +10.5% to +12.5%. This factors in essentially stable net interest expense and an increase in our effective corporate tax rate to approximately 22.5%-23.5% due to tax increases in line with OECD Pillar Two global minimum tax and the mix of international earnings. In dollar terms, we forecast growth of +7% to +9% to a range of $7.40-$7.70. This includes an unfavorable forecast currency impact of $0.22 at prevailing exchange rate, primarily driven by the growth strength of the dollar mitigated by our hedging activity. For the first quarter of 2025, we expect a strong start to the year with net revenue and operating income growth broadly in line with our full-year objective despite the leap year comparison. We forecast HTU adjusted IMS growth of around +10%, which factors in the large annualization impact from the EU flavor ban in the quarter, with a progressive improvement through the year. We forecast shipment volume of 35 billion-36 billion for HTUs and 170 million-180 million cans for U.S. ZYN. We project Q1 Adjusted Diluted EPS of $1.58-$1.63, including a negative currency variance of $0.04 at prevailing rates, and an effective corporate tax rate 2-3 points higher than the prior year quarter. With our 2024 delivery and 2025 outlook, we are well-positioned to meet or exceed all metrics of the 2024-2026 targets presented at our 2023 investor day. This is especially true at the level of operating income growth, as well as for EPS delivery, where our algorithm assumed constant 2023 corporate tax rates. This level of top and bottom-line growth reflects a best-in-class growth profile within the context of large-cap consumer packaged goods. Importantly, we're also well on track to deliver high single-digit adjusted diluted EPS growth in dollar terms across the 2024-2026 period at prevailing exchange rates. Indeed, we measure our cash flows in dollar, and after a record delivery in 2024, we expect to deliver operating cash flow of around $11 billion for 2025. This is broadly in line with 2024, once accounting for two non-recurring payments with a total impact of around $1 billion. While we continue to appeal the German tax surcharge case, we have decided to make a $0.8 billion payment this year, and we also anticipate the final transition tax payment related to the U.S. Tax Cuts and Jobs Act. We anticipate capital expenditure of around $1.5 billion, with a large portion of this related to ZYN as we prioritize the investment behind our smoke-free products. Our strong 2024 cash flow and EBITDA growth, combined with a favorable impact from our Euro balance sheet hedging, allowed us to reduce our net debt-to-adjusted EBITDA ratio by 0.5x to 2.66, ahead of our expectation and representing a dramatic acceleration of our delivery agenda. We expect further progress in 2025, placing us on track for our target ratio of around two times by the end of 2026. I will now turn it back to Jacek for concluding remarks. Thank you, Emmanuel. In summary, 2024 was a remarkable year for PMI. Our financial results epitomized the strength of our strategy and the success of our transformation, with underlying momentum across categories, bolstered by our proactive measures on pricing and cost efficiency. I remain confident in our position as the global smoke-free champion as we continue to execute on our multi-category strategy with leading premium brands: IQOS, ZYN, and VEEV. Our key strategic priorities for 2025 are clear as we continue to support the expansion and development of our smoke-free business both in the U.S. and internationally. We expect continued strong momentum in 2025, and we remain confident in our ability to deliver or exceed our 2024-2026 growth targets as we progress towards our ambition of becoming substantially smoke-free by 2030. Finally, and importantly, our strong growth output and highly cash-generative business enables us to continue reinvesting in our smoke-free transformation while returning cash to shareholders. In September, we increased our annual dividend for the 17th consecutive year in line with our long-term commitment. Thank you, and Emmanuel and I will be heading out to answer your questions. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question today comes from Matt Smith of Stifel. Your line is open. Hi, Jacek and Emmanuel. Good morning, Matt. Good morning. The 2025 outlook calls for HTU shipments in numbers or in-market sales growth fairly in line with what you saw in 2024. But could you talk about the composition of the growth? If it's overall in line, are you seeing different contribution by geography in your outlook? And can you remind us on if there has been any progress in new markets contributing to growth in 2025, or if you've made any progress in those markets as you look out to your 2026 goals? Thank you. Now, so in the guidance, we essentially continue seeing good growth in Japan and in a number of parts of Europe. I mean, Emmanuel mentioned about Italy, Czech, Poland, right, where the growth is a bit below what we would expect at this stage, especially Italy and Czech following the flavored ban. But we also see that there is some recovery coming in. So I think, hopefully, in the second part of the year, we should bring Italy and other geographies that part to what the rest of the Europe is going through. And we have not, in the guidance, assumed any significant new market opening in terms of a volume. As you know, and I had it in my remarks, I mean, we're dealing with this rational world, fighting with the irrational world. I hope that the most recent authorizations of FDA following the authorizations of heat-not-burn, now the pouches, will be a good incentive or encouragement by other governments, which, to be very frank, stupidly oppose smoke-free products while allowing cigarettes. But in the guidance, we have not put any significant volume coming from the new geography. So this is all organic growth, and as you could see it in the quarters of this year, despite the fact, even if you look at Japan, when almost half of the market is already on smoke-free products, the growth continues there. Thank you, Jacek. I'll pass it on. Thank you. Our next question comes from Bonnie Herzog of Goldman Sachs. Your line is open. All right. Thank you. Hi, Emmanuel and Jacek. Good morning Bonnie. I had a question on your margins. You're guiding robust operating leverage on a currency-neutral basis this year. So hoping you could highlight some of the key drivers behind this. Also, sort of wanted to verify if your guidance assumes a potential entry of ILUMA in the U.S. or just possibly continued investments without any corresponding sales. Then how should we think about the margin contribution from ZYN in the U.S. and how long it might take after your entry here in the market for those margins to really be meaningful? Yeah. Yeah. So maybe I started, Bonnie, good morning. I mean, yes, we're looking for a robust margin expansion this year, maybe not precisely to the same level as we had last year, but still it's going to be robust, I think, in a 100 basis points or so territory. This is what we're looking into. It's the combination of a few factors. We're still looking at the pricing contributions, which is obvious. There's obviously positive mix, right, between the categories, and especially now that we have our smoke-free category on the positive margin path, including the e-vapor. So we're very happy that our strategy of going selectively, but with the right impacts in the geographies that is needed, we're not really leaving money behind, if you like, margin behind. So this will contribute. And we had in the past, as you remember, quite the headwinds coming from FX, and I think those have, I think they are behind us, okay? And obviously, there's all conversations these days here and there, especially coming from the U.S. about the tariffs and so on. But the way we organize our supply chain, as you know, U.S. on the ZYN is essentially self-sufficient. Our supply chains in Europe, I mean, we organized our supply chain almost by blocks, so I don't see at this stage that there should be any surprises coming on the tariff side. So I think we're pretty confident where we land with the COGS for the year. There is obviously ongoing support coming from the scale of IQOS, especially devices. And okay, there is economy of scale, there is the robustness of the device in terms of quality, etc. So we actually don't have this, like in the past, a bit of a pressure on the margins coming from a device sale. So this we have well stabilized for 2024. It was behind the margin expansion. And I think we should expect the same, or we are expecting the same in 2025. Now, your questions with regards to ILUMA margins US, okay, maybe one by one. We still expect that hopefully we will get authorization for IQOS ILUMA around the middle of this year. Again, on the one hand, one could read this as encouragement that after, as we said, it's thorough scientific, etc., review, FDA has given authorizations for all variants of ZYN. I wouldn't be myself if I wouldn't comment that obviously if something takes five years, it must be thorough because otherwise I cannot explain the length of the process, but I do hope that FDA will move faster and already IQOS ILUMA is pending for a while, and by the way, if you have also authorization for ZYN, so the margin story, I would repeat myself that obviously when we start adding support behind ILUMA, I mean, at the initial period, it will be a negative, right, but in the scheme of the things and the P&L size, if you like, of our business in the U.S., I don't think it should be something which is that much worried. I believe the U.S. will go on a similar path as we had on a heat-not-burn in other places. In two to three years, IQOS should be a net contributor to the bottom line. Bearing in mind, as always, reminding everyone that we don't really have the headwind of cannibalization, right? We don't really; we're in a better starting position. We have growing confidence in the IQOS ILUMA internationally, but we know what IQOS ILUMA brought us internationally over the last three years, and it continues generating growth and user acquisition. I believe it's really a great proposition for adult smokers in the U.S. Maybe just to complement on the margin side, Bonnie, as you can judge from our guidance, we have significant ambition in terms of margin improvement in 2025. What is driving that is the fact that we are flying on several engines here on margin improvement, and everything is coming together positively at the same time. So indeed, we have, of course, the mix evolution that is very favorable to us with smoke-free products coming with a higher margin, and they are growing very fast. Among those smoke-free products, we have the U.S. and ZYN that is growing even faster and which, as we already said, is best in class in terms of margin. So that's obviously a plus. We are also increasing price. Yes, of course, we're not going to continue to deliver 8%+ price increase on combustibles, but it's going to remain extremely robust. And we also have the ambition to grow our price, not at the same level, but significantly on our smoke-free portfolio. And then when we look at our COGS, we are working on productivity. They have scale effect that are delivering positively. And as you know, we were facing until now a significant headwind on cost, notably on the combustible business. This is easing. 2025 should be better, and 2026 could be even better than 2025, by the way. So we are going in the right direction there, and that is making us clearly targeting nice margin improvement, both organically and in dollar terms for 2025. Okay. Super helpful. And actually, I'm just going to ask a quick follow-up because you kind of touched on this, but you also mentioned this morning about targeting or you're continuing to target gross margin expansion in combustibles. And then you did say that you expect the gap to grow relative to your smoke-free product gross margin. So previously, you guys have talked about, I think, a 10-point gap. So as your gross margins expand on combustibles, I think what I'm hearing you say is that not only is that an opportunity, but also continued margin expansion on smoke-free, which you just mentioned. So do you foresee that gap expanding? I mean, does it go to 15-point spread, or could it go to 20? Just kind of trying to think through that in the next couple of years. Look, on the consumable, we've already highlighted the fact that there was a 10 percentage point gap, and it has been expanding in the last few years. So indeed, we have the ambition to do better on the gross margin for combustibles, and we explain why. But as we continue to progress also rapidly on smoke-free products, and both with the mixed effect coming from ZYN, but separately on IQOS and ZYN, we want to continue to progress. So we could have indeed a gap that could continue to expand between smoke-free products and combustibles in the coming years. All right. Thank you. I'll pass it on. Thank you. Thank you, Bonnie. Thank you. Our next question comes from Gaurav Jain of Barclays. Your line is open. Good morning, Emmanuel and Jacek. Thank you for my questions. I have a couple of questions. What is on ZYN? So if I look at the scan data, your volumes have decelerated to mid-teens growth, and your guidance is for 34%-41% growth. And then you also mentioned that the supply normalization would only happen in 2H 2025. So, I just wanted to understand what gives us the confidence that suddenly ZYN will be accelerating to this almost 40% growth rate again? Yeah. So, good morning. So, we look also on how the volumes were evolving in Q4 or the weeks of the last quarter. We see the growing velocities behind ZYN. And actually, there was the only brand, I think, over the last few weeks, which was growing in velocities, not the rest of the, at least the big four other brands, or smaller, but big other brands. Look, we also have to understand that we're reading all this data with no full supply of the supply constrained environment, right? So, it's a bit difficult that you see at the retail. It depends even in which source you're looking at, that something which would be significantly different than what we're shipping to the trade. But Q4, as we predicted with the increased capacity on Owensboro, we had the first quarter with the significant sequential quarter-on-quarter growth. Even if you would take the run rate of what we see the last weeks, etc., I think the guidance is somehow reflecting what we see there. Now, our comments that we think that we should be meeting demand by about mid of this year, I have to make one reservation is that it's difficult to actually read what the demand is because we know what is the level of out-of-stock. We know what the existing users of ZYN demand for the product, and knowing that these purchases or the purchases are somehow impacted by the fact that, unfortunately, they are confronted with the lack of availability out of stock. Then it's all the positive momentum which the ZYN has. I believe also the FDA authorizations, which on the one hand, one could read product was in the market, so there is no change. Actually, I think it gives a lot of visibility and stability to all the market participants, including the trade. I believe also the consumers that the product now has the full-fledged, my language, authorization in all flavor variants. So all of these things, I think, will translate into the volumes, which we projections of the volumes, which will reflect it in our guidance. Sure. A follow-up question to that. ZYN clearly in supply shortage, retailers have been putting their markups. I think you increased prices by $0.30 last year, while retail has increased pricing by $1 or $3-$5. How do you control retail price? And is there a way for you to, as supply normalizes, to reduce retail price so that that will also have a positive effect on your volume? Yeah. So if you have a degree of the out-of-stock as ZYN is experiencing, it's obviously managing the price at the retail level is a little bit more challenging, right? I mean, it's pretty obvious. But I believe with the growing demand, sorry, with the growing supply of the product, I think this pricing will come to some sort of natural to the normalization. So I have to also admit that, look, we are very happy with the support we're getting from retailers handling our products. And it's not that easy for them also to be confronted with a product which, on the one hand, has the demand, on the other hand, they cannot realize their margins and they take from a ZYN price. And I hope, but again, I think that this pricing situations in the market will sort out somehow naturally the moment when the product will be in a fuller unconstrained supply. As we said, second half of 2025, we should start seeing improvement on this. Sure. And if I could just squeeze in one last question on ZYN Ultra, could you just talk about that PMTA, what the product is, and when do you think we can see it in the market? Yeah. Obviously, well, as we all noticed, right, the ZYN authorization came essentially in the last days or hours of the one administration. Now, I guess we'll have to wait for the new administration. Look, as I said in the answer to the questions before, that I do hope that period of four or five years waiting for authorization is too much. It's too long. And I do believe that there will be some accelerations in the processing, I hope, because of the authorizations. And we have to also understand that partially the challenge which the U.S. market has very much on the e-vapor product is by the fact that the legal part of the market has not been created. On the one hand, FDA is doing a lot of right things in terms of law enforcement and chasing the illegal Chinese or whatever imports. But on the other hand, there is a demand among smokers, adult nicotine users for this type of a product. And unless we create in a fast manner the legal part of that market, and then we're essentially wasting our time and money. So I do believe that FDA will take this also into consideration that this situation shouldn't happen in our product categories. And if there is a demand for the product to be recognized as a better alternative to cigarettes, we also have an interest in creating the legal part of the market and then controlling for the law enforcement, etc., the illicit market. But you cannot just control the illicit market if you haven't provided the legal solutions in the market which are available. So I do believe that IQOS, sorry, IQOS as well, but ZYN has some pending authorizations or applications, I should say. And I do believe that they're going to be processed in a faster manner than before. Thank you so much. Thank you, Gaurav. Thank you. And as a reminder, if you have a question, please press star one one. And our next question comes from Erik Serotta of Morgan Stanley. Your line is open. Great. Thanks, guys. Good morning, Eric. Hopefully, I could give some color in terms of what you're seeing in Italy. You mentioned that the fourth quarter was a little bit softer than you had anticipated after the nice recovery you saw in the third quarter from the characterizing flavor ban. In terms of Poland, can you remind us when you expect to see some disruption from the ban being implemented and what sort of an impact you expect in terms of overall European combustibles business? And then lastly, on FX, it seems like the FX headwind that you called out for the year in the guidance was a bit less than what seems to be implied based on spot rates and your typical yen hedge. Wondering if there's been any change in the hedging policy or if there's any reason why it may be a bit lower than anticipated. Thank you. Yeah. So maybe I think the last one is the easiest one, and I come back to Italy, which is a bit of a longer story. I mean, in the $0.22 at spot rates right now, I mean, frankly speaking, the biggest contributor to the negative is the Russian ruble, and that's well above the 60% of the variance. The yen actually goes in a cent. I guess it was, if I recall, about the $0.04 in our estimates at the spot rates. Obviously, as we all know, we're living in the pretty dynamic times as we speak, but this is what it is. There was a big contribution last year coming from the Egyptian pound, right? I mean, we had to take the heat that obviously will not be repeated in 2025, and actually, this will result in a positive currency variance. But this is on the currency, so frankly speaking, at this stage, it's a ruble. As I said, $0.04 or so on the yen, and the rest is just the mixed bag due to our international footprint. Emmanuel wants to add something. No, I want to add something because I think, I mean, the volatility we're seeing on the currency market today is probably a good touch of trust on how things are working for us. I should first remind you that we have a natural important hedging in our balance sheet with more than 60% of our debt that is in euro. And therefore, when we have a weakness in the euro versus dollar, which is a situation we've seen recently, of course, we have a negative impact on our P&L, but we have also a decrease of our debt in dollar terms. And we are also benefiting from lower cost of the debt in euro, plus, of course, lower interest cost in euro translated into dollar. So that has been certainly helping our trajectory in 2024. And if there was continued weakness of the euro, that would continue to help us in the future. Probably what is not fully captured by the market is the fact that indeed, on top of that, we have two significant hedge positions, one on our exposure to the yen for 2025. We have around 60% of our exposure that is covered at a rate of around 138 JPY for one dollar. So that means that we are not impacted by the possible deterioration of the JPY for that part of our exposure. And we have also a lower exposure to a lower hedging, sorry, on euro, where we have around a bit more than one-fifth, sorry, one-fourth of our exposure to euro, where we are covered at one-twelve, which is also limiting a bit the impact on the P&L when the euro is going down. So with everything I've been saying, you have all the explanation, plus what Jacek has been sharing with you on the Forex impact for us today. Yeah. Now, on Italy, so I think, yes, the second half was a bit weaker than we would maybe expect. I mean, Italy was going as many others, not all, but many other member states of the EU for the flavor ban. I think what we see is that, okay, some smokers, some users have hope temporarily by the return to cigarettes, which always was the risk. So it also explains in some geographies the cigarette trends are slightly better than one could expect or could think. There is some poly use between the e-vapor products very much. And that, I believe, maybe partially also explains why our VEEV proposition has advanced most in Italy, right? And this was in a VEEV, in pods, in a closed system, very shortly after a short period of time, jumped or traveled to the number one proposition. So I think we need to maybe look at the category of a smoke-free over a period of time on a total basis because there will be some poly usage and sometimes driven by the events like this, by this flavors ban. But we also have geographies in Europe that very shortly after the implementation of the flavors ban, I mean, they actually returned to the growth rates which we had before. So maybe Italy is outlier. We're looking into this whole thing. But as I said, part of our multi-category strategy is also, should there be any leakage at the heat-not-burn users, we can capture this with our proposition. And then I guess we need a bit more time to see the stabilization. Poland, you asked about the Poland. I don't think Poland has put the stick in the ground at which moment they really want to fully implement the ban. So I think it will happen, I think, somewhere in 2025, but it has to be if this is not if the stick has not been put in the ground, it is more toward the end of this year. Great. Thanks so much. Thank you. Thank you. Thank you. And our next question comes from Faham Baig of UBS. Your line is open. Good morning, guys. Thank you for the questions. Hi, guys. A couple from me as well, firstly on ZYN again in the US. We noticed a couple of your peers have launched synthetic moist nicotine products. And according to the scanner data, have seen some initial uptake. How do you see the moist versus dry dynamic in the U.S.? And where do you think the consumer may end up in the future, recognizing that in Europe, most products are moist? And the second question maybe comes back to your comments around Italy. But just longer term, we see the vapor category continuing to grow quite strongly. And we can discuss its flaws around flavors, marketing, underage use, etc. But do you see this as a headwind for the tobacco industry? Or do you believe the total pie can continue to grow with limited impact on tobacco? Yeah. So maybe the second part, I think the total pie grows despite the fact that the movements between the categories within smoke-free, there is some dynamics, right, between heat-not-burn and e-vapor and pouches now depends how the market is organized and regulated. We also know that the most difficult actually to read category due to the way the market is organized currently is the e-vapor category, right? Because you have disposables, you have pods, you have open tank systems still, and some products are under the regulations and properly authorized depends on the jurisdiction. Some products are just popping up in the market. So you could call it the different forms of illicit trade. But I think you see this in the U.S., but also in Europe, in the U.K., and a few other places, regulators, governments are taking more serious look into properly organizing that market. I can't tell you whether this will be completed in 2025, but definitely there is the movements, the moves are in the right direction. So I believe 2025, 2026, the category should be normalized by the fact that it's going to be properly regulated. And then we take it from there. I don't want to talk about the youth exposure, etc., because, obviously, you know our policy, you know what our views on this one. But definitely, it's difficult to control or to discipline the market if you're dealing with all of the different emanations of the product coming essentially illegally to the marketplace that obviously also enjoys the less disciplined trade channels, so completely invisible trade channels, if you like, etc. When it comes to your questions about the synthetic versus dry, so just to take it from a perspective, the way we look at the data in the U.S., for example, there's whole new things which are coming into the market. There is quite a long list of different SKUs and the moist or others. And this whole market, the dry part of the market, if I'm not mistaken, move year on year by barely 20 basis points. In the scheme of things, there's presumably a lot of dynamics on a weekly basis, but it doesn't seem that it has any major traction, etc. The insights which we have when we talk with the consumers, we see, and obviously, when you read the consumer insight, it's not a pure mathematical accuracy and the exact number. But I think that the moist products, moist pouch products, is more appealing to the moist snuff type of users, right, like snus, etc. While what we see in the marketplace, the dry product has more appeal towards the smokers and the vapor or vapes. That is what I can tell you at this stage. Thank you, guys. Really appreciate that. Thank you. Thank you. Our last question today comes from Philip Stein of JP Morgan. Your line is open. Hi, good afternoon. Thanks very much for taking the question. Good morning, Philip. I just had one question, please. It was just on the HTU guidance. If I look at where the volumes landed at the end of 2024, and then I look at the guidance range, the 10%-12% you've guided for 2025, but then just extracting that out for 2026 and looking at your guidance there of the 180 million-200 million of shipment volume, just trying to get a sense of what gives you confidence in my math, that implies reacceleration in the growth in 2026. And I just want to understand, I suppose, what gives you that confidence that you will see that reacceleration in 2026. Thank you. Yeah. So as I said earlier, I mean, in the guidance for this year for 2025, we essentially stayed very low into we essentially focused on organic growth in existing markets. Obviously, if you open 2025 and beyond 2026, I think it's becoming maybe more prudent or fair to assume that there will be some geographies also coming finally and opening the markets to the new proposition. There is one point which maybe we haven't articulated well in our remarks and the answers to the questions before is that there is still about the 20% or so of the volumes on the heat-not-burn that we don't really do, we can't really realize the full growth potential. I'm referring here to the geographies of Russia and Ukraine, now for obvious reasons. But if I was just looking at the numbers of 2024, I think we have left behind about 0.6, maybe even more point of a growth, which we would normally expect to deliver if all these markets were subject to the same sort of market conditions as other places, right, as ILUMA, etc. So, okay, let's see how this unwinds. I think the growth which we projected very much focused on organic, organic meaning the geographies which we have today on hand, I think is a good growth. Volume terms is essentially the same volume growth as we used to have in the past. But also in a broader sense, we more and more see the potential of the multi-category and the total volumes of the smoke-free products is just the one category. And as we know very well, from the margin perspective, they all essentially create great opportunities. I mean, they're all greatly accurate to where we are today and especially to the combustibles. Second thing is, and I think we will zoom a little bit more, try to zoom a bit more to this at our CAGNY presentations. But from the user's perspective, it's actually a pretty nice economic proposition because we're essentially then leveraging all the investments for the user acquisitions, etc. And one of the categories obviously takes the burden of acquiring the user, but all the other product categories actually very nicely benefit from this whole thing. So you will hear from us more and more talking. Obviously, we'll give you the granularity about the heat- not- burn, e-vape, and ZYN, but I think in the next few years, the focus will be more and more turning into total smoke-free rather than just the individual because this also somehow reflects the user directions, the user consumer dynamics. Thank you very much. Thank you. Thank you. I'm showing no further questions at this time. I would like to turn it back to James Bushnell for closing remarks. Thank you. Before closing our call, I'd like to remind you that, as Jacek mentioned, we will be presenting at the CAGNY Conference on February 19th, and we hope you'll be able to join us either in person or virtually. Thank you again for joining us today. If you have any follow-up questions, please contact the investor relations team and have a great day. Thank you. Thank you. Speak to you soon. Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.