Category: Business

MIL-OSI: Onity Group Announces Full-Year and Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

WEST PALM BEACH, Fla., Feb. 13, 2025 (GLOBE NEWSWIRE) — Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced its full-year and fourth quarter 2024 results and provided a business update.

Full-Year 2024:

Net income attributable to common stockholders of $33 million, highest since 2013; diluted EPS of $4.13; return on equity (“ROE”) of 8%
Adjusted pre-tax income* of $90 million, resulting in adjusted ROE* of 20%
$86 billion in total servicing additions ($47 billion in subservicing additions)
Book value per share improved $4 year-over-year to $56 as of December 31, 2024
Reduced corporate debt by $145 million; debt-to-equity ratio of 2.96 to 1

Fourth Quarter 2024:

Net loss attributable to common stockholders of $29 million; diluted EPS of ($3.63); ROE of (25%); includes previously disclosed $41 million of net corporate debt restructuring charges
Adjusted pre-tax income* of $11 million, resulting in annualized adjusted ROE* of 10%
$25 billion in total servicing additions ($8 billion in subservicing additions)
Successfully executed planned corporate debt restructuring, closed the sale of the Company’s joint venture interest in MAV and the Waterfall asset purchase transaction

2025 Outlook:

Increased adjusted ROE* guidance to 16% – 18%

* See “Note Regarding Non-GAAP Financial Measures” below

“In 2024 we delivered powerful financial results, with net income reaching an eleven-year high, adjusted pre-tax income nearly doubling from the prior year, and adjusted ROE exceeding our guidance,” said Onity Group Chair, President and CEO Glen Messina. “The year was marked by several significant milestones, including successfully completing a series of transactions to reduce our corporate debt, lower cost and extend maturities, rebranding to Onity, and expanding our digital capabilities. Fourth quarter results were consistent with the guidance we provided at the end of the third quarter, and even with the previously disclosed debt restructuring costs, we ended the year with book value per share at $56, up $4 from prior year-end.”

Messina continued, “Our results demonstrate that our best-in-class servicing platform and broad originations capabilities across our balanced business continued to deliver strong operating and financial performance regardless of interest rate cycles. I’d like to thank our global team and business partners who helped to enable a successful year. Looking ahead, I am confident in our strategy, team and capabilities. I believe we are well positioned to accelerate growth, improve returns and deliver substantial value to our customers, business partners and shareholders in 2025 and beyond.”

Additional Full-Year and Fourth Quarter 2024 Operating and Business Highlights

Funded recapture volume for full-year 2024 up 2.5x over 2023; fourth quarter 2024 up 4.2x over fourth quarter 2023 and up 64% over third quarter 2024
Originations volume of $30 billion in 2024, up 33% compared to 2023; $10 billion in fourth quarter, up 72% over fourth quarter 2023 and up 12% over third quarter 2024
Total servicing UPB of $302 billion at December 31, 2024, up $13 billion over December 31, 2023; sold $15 billion of MSR UPB servicing released above book value
Total liquidity (unrestricted cash plus available credit) maintained year-over-year at $248 million as of December 31, 2024
MSR fair value change, net of hedge, resulted in a net gain in 2024
Extended subservicing agreement for existing MSR Asset Vehicle LLC (“MAV”) portfolio for an initial term of five years; renewed subservicing agreement with Rithm Capital to January 31, 2026
Achieved HUD Tier 1 servicer rating for fourth consecutive year; recognized by 2024 Freddie Mac SHARP^SM program for subservicing

Webcast and Conference Call

Onity will hold a conference call on Thursday, February 13, 2025, at 8:30 a.m. (ET) to review the Company’s full-year and fourth quarter 2024 operating results. All interested parties are welcome to participate. You can access the conference call by dialing (800) 274-8461 or (203) 518-9814 approximately 10 minutes prior to the call; please reference the conference ID “Onity.” Participants can also access the conference call through a live audio webcast available from the Shareholder Relations page at onitygroup.com under Events and Presentations. An investor presentation will accompany the conference call and be available by visiting the Shareholder Relations page at onitygroup.com prior to the call. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call’s completion through February 27, 2025, by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11157783.

About Onity Group

Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding our ability to accelerate growth, improve returns and deliver substantial value to our customers, business partners and shareholders in 2025 and beyond. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements.

Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the potential for ongoing disruption in the financial markets and in commercial activity generally as a result of U.S. and global political events, changes in monetary and fiscal policy, and other sources of instability; the impacts of inflation, employment disruption, and other financial difficulties facing our borrowers; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, future draws on existing reverse loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them; our ability to interpret correctly and comply with current or future liquidity, net worth and other financial and other requirements of regulators, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), and the Government National Mortgage Association (Ginnie Mae), including our ability to implement a cost-effective response to Ginnie Mae’s risk-based capital requirements by the extended deadline granted to us by Ginnie Mae of May 1, 2025; our ability to timely reduce operating costs, or generate offsetting revenue, in proportion to the industry-wide decrease in originations activity; the impact of cost-reduction initiatives on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock or that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity’s, our contractual counterparties’, or our vendors’ information technology or other security systems or privacy protections, including any failure to protect customers’ data, resulting in disruption to our operations, loss of income, reputational damage, costly litigation and regulatory penalties; our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations; the future of our long-term relationship with Rithm Capital Corp. (Rithm); our ability to close acquisitions of MSRs and other transactions, including the ability to obtain regulatory approvals; our ability to grow our reverse servicing business; our ability to retain clients and employees of acquired businesses, and the extent to which acquisitions and our other strategic initiatives will contribute to achieving our growth objectives; increased servicing costs based on increased borrower delinquency levels or other factors; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our servicing, foreclosure, modification, origination and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD); the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae, to our regulatory engagements and litigation matters; increased regulatory scrutiny and media attention; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to comply with our servicing agreements, including our ability to comply with the requirements of the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them; our ability to fund future draws on existing loans in our reverse mortgage portfolio; our servicer and credit ratings as well as other actions from various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2023 and for the year ended December 31, 2024 when available. Anyone wishing to understand Onity’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.

Note Regarding Non-GAAP Financial Measures

This press release contains references to adjusted pre-tax income (loss) and adjusted ROE, both non-GAAP financial measures.

We believe these non-GAAP financial measures provide a useful supplement to discussions and analysis of our financial condition, because they are measures that management uses to assess the financial performance of our operations and allocate resources. In addition, management believes that this presentation may assist investors with understanding and evaluating our initiatives to drive improved financial performance. Management believes, specifically, that the removal of fair value changes of our net MSR exposure due to changes in market interest rates and assumptions provides a useful, supplemental financial measure as it enables an assessment of our ability to generate earnings regardless of market conditions and the trends in our underlying businesses by removing the impact of fair value changes due to market interest rates and assumptions, which can vary significantly between periods. However, these measures should not be analyzed in isolation or as a substitute to analysis of our GAAP pre-tax income (loss) or GAAP pre-tax ROE nor a substitute for cash flows from operations. There are certain limitations to the analytical usefulness of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE and, accordingly, we use these adjustments only for purposes of supplemental analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Onity’s reported results under accounting principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Readers are cautioned not to place undue reliance on analysis of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE.

The Company has not provided reconciliations of guidance for adjusted ROE, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include the change in fair value of our net MSR exposure due to changes in market interest rates and assumptions which can vary significantly between periods and are difficult to predict in advance in order to include in a GAAP estimate.

Notables

In the table below, we adjust GAAP pre-tax income for the following factors: MSR valuation adjustments, expense notables, and other income statement notables. MSR valuation adjustments are comprised of changes to Forward MSR and Reverse mortgage valuations due to rates and assumption changes. Expense notables include significant legal and regulatory settlement expenses, severance and retention costs, LTIP stock price changes, consolidation of office facilities and other expenses (such as costs associated with strategic transactions). Other income statement notables include non-routine transactions that are not categorized in the above.

Beginning with the three months ended December 31, 2024, for purposes of calculating Income Statement Notables and Adjusted Pre-Tax Income, we changed the methodology used to calculate Other Income Statement Notables to include change in fair value due to interest rates for reverse loan buyouts (reported in gain/loss on loans held for sale, at fair value). We made this change to align with the change to our risk management approach to include changes in fair value of reverse loan buyouts due to interest rates in our MSR hedge strategy, consistent with other notables, such as Forward MSR Valuation Adjustments due to rates and assumption changes, net and Reverse Mortgage Fair Value Change due to rates and assumption changes.

Other Income Statement Notables (a component of Other Notables) for the first three quarters of 2024 have been revised from prior presentations to reflect the methodology we adopted during the fourth quarter of 2024.

*(Dollars in millions)*		FY’24	FY’23	Q4’24	Q3’24
I	Reported Net Income (Loss)	34	(64)	(28)	21
	A. Income Tax Benefit (Expense)	(5)	(6)	6	(6)
II	Reported Pre-Tax Income (Loss) [I – A]	39	(58)	(34)	28
	Forward MSR Valuation Adjustments due to rates and assumption changes, net ^(a)(b)	17	(121)	14	(1)
	Reverse Mortgage Fair Value Change due to rates and assumption changes ^(b)(c)	(7)	(3)	(15)	9
III	Total MSR Valuation Adjustments due to rates and assumption changes, net	10	(124)	(1)	8
	Significant legal and regulatory settlement expenses	(8)	21	(2)	(6)
	Severance and retention ^(d)	(3)	(7)	(0)	(0)
	LTIP stock price changes ^(e)	1	3	(1)	(1)
	Office facilities consolidation	(0)	0	(0)	(0)
	Other expense notables ^(f)	(1)	2	(0)	0
	B. Total Expense Notables	(11)	18	(4)	(7)
	C. Gain (loss) on extinguishment of debt	(49)	1	(51)	0
	D. Gain on sale of MAV canopy	14		14
	E. Other Income Statement Notables ^(g)	(13)	(2)	(3)	(5)
IV	Total Other Notables [B + C + D + E]	(60)	17	(44)	(12)
V	Total Notables ^(h) [III + IV]	(51)	(107)	(45)	(4)
VI	Adjusted Pre-Tax Income ⁽ⁱ⁾ [II – V]	90	49	11	31

a)	MSR valuation adjustments that are due to changes in market interest rates, valuation inputs or other assumptions, net of overall fair value gains / (losses) on MSR hedge, including FV changes of Pledged MSR liabilities associated with MSR transferred to MAV, Rithm and others and ESS financing liabilities that are due to changes in market interest rates, valuation inputs or other assumptions, a component of MSR valuation adjustments, net
b)	The changes in fair value due to market interest rates were measured by isolating the impact of market interest rate changes on the valuation model output as provided by our third-party valuation expert
c)	FV changes of loans HFI and HMBS related borrowings due to market interest rates and assumptions, a component of gain on reverse loans held for investment and HMBS-related borrowings, net
d)	Severance and retention due to organizational rightsizing or reorganization
e)	Long-term incentive program (LTIP) compensation expense changes attributable to stock price changes during the period
f)	Includes costs associated with but not limited to rebranding, MAV upsize, and other strategic initiatives and transactions
g)	Contains non-routine transactions including but not limited to early asset retirement and fair value assumption changes on other investments recorded in other income/expense
h)	Certain previously presented notable categories with nil numbers for each period shown have been omitted
i)	Effective in Q4’24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted pre-tax income would be $89M in FY’24, $8M in Q4’24 and $35M in Q3’24; see note titled “Note Regarding Non-GAAP Financial Measures” for more information

Adjusted ROE Calculation

*(Dollars in millions)*		FY’24	FY’23	Q4’24	Q3’24
I	Reported Net Income (Loss)	34	(64)	(28)	21
II	Notable Items	(51)	(107)	(45)	(4)
III	Income Tax Benefit (Expense)	(5)	(6)	6	(6)
IV	Adjusted Pre-Tax Income (Loss) [I – II – III]	90	49	11	31
V	*Annualized Adjusted Pre-tax Income [IV 4** for qtr.]	90	49	46	126
	Equity
	A Beginning Period Equity	402	457	468	446
	C Ending Period Equity	443	402	443	468
	D Equity Impact of Notables	51	107	45	4
	B Adjusted Ending Period Equity [C + D]	493	509	488	472
VI	Average Adjusted Equity [(A + B) / 2]	448	483	478	459
VII	Adjusted ROE ^(a) [V / VI]	20%	10%	10%	27%

Effective in Q4’24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted pre-tax income would be $89M in FY’24, $8M in Q4’24, and $35M in Q3’24; without this change, adjusted ROE would be 20% in FY’24, 7% in Q4’24, and 31% in Q3’24; see note titled “Note Regarding Non-GAAP Financial Measures” for more information

Condensed Consolidated Balance Sheets (unaudited)

Assets *(Dollars in millions)*	December 31, 2024	December 31, 2023
Cash and cash equivalents	184.8	201.6
Restricted cash	80.8	53.5
Mortgage servicing rights (MSRs), at fair value	2,466.3	2,272.2
Advances, net	577.2	678.8
Loans held for sale, at fair value	1,290.2	677.3
Loans held for investment, at fair value	11,125.3	7,975.5
Receivables, net	176.4	154.8
Investment in equity method investee	–	37.8
Premises and equipment, net	11.0	13.1
Other assets	111.3	106.2
Contingent loan repurchase asset	412.2	343.0
Total Assets	16,435.4	12,513.7

Liabilities, Mezzanine & Stockholders’ Equity *(Dollars in millions)*	December 31, 2024	December 31, 2023
Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value	10,872.1	7,797.3
Other financing liabilities, at fair value	846.9	900.0
Advance match funded liabilities	417.1	499.7
Mortgage loan financing facilities, net	1,528.2	710.6
MSR financing facilities, net	957.9	916.2
Senior notes, net	487.4	595.8
Other liabilities	420.6	349.3
Contingent loan repurchase liability	412.2	343.0
Total Liabilities	15,942.5	12,111.9
Mezzanine Equity	49.9	–
Stockholders’ Equity	442.9	401.8
Total Liabilities, Mezzanine and Stockholders’ Equity	16,435.4	12,513.7

Condensed Consolidated Statements of Operations (unaudited)

*(Dollars in millions)*	For the Years Ended
*(Dollars in millions)*	December 31, 2024		December 31, 2023
Revenue
Servicing and subservicing fees		832.5		947.3
Gain on reverse loans held for investment and HMBS-related borrowings, net		42.5		46.7
Gain on loans held for sale, net		59.0		40.6
Other revenue, net		42.0		32.0
Total revenue		976.0		1,066.7
MSR valuation adjustments, net		(96.2)		(232.2)
Operating expenses
Compensation and benefits		232.5		229.2
Servicing and origination		52.3		57.3
Technology and communications		52.9		52.5
Professional services		52.6		22.3
Occupancy, equipment and mailing		31.4		31.8
Other expenses		14.7		19.0
Total operating expenses		436.5		412.1
Other income (expense)
Interest income		93.3		78.0
Interest expense		(288.9)		(273.6)
Pledged MSR liability expense		(175.4)		(296.3)
Gain (loss) on extinguishment of debt		(49.4)		1.3
Earnings of equity method investee		22.9		7.3
Other, net		(6.6)		2.8
Other income (expense), net		(404.1)		(480.5)
Income before income taxes		39.3		(58.1)
Income tax expense		5.3		5.6
Net Income (Loss)		33.9		(63.7)
Preferred stock dividend		(0.5)		–
Net Income (Loss) attributable to common stockholders		33.4		(63.7)
Basic EPS		$4.28		($8.34)
Diluted EPS		$4.13		($8.34)

For Further Information Contact:

Investors:
Valerie Haertel, VP, Investor Relations
(561) 570-2969
shareholderrelations@onitygroup.com

Media:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com

The MIL Network –

February 14, 2025

MIL-OSI: GobizKOREA Online Exhibition Launch: Korean SMEs Unveil Cutting-Edge Products to the Global Market

Source: GlobeNewswire (MIL-OSI)

SEOUL, KOREA, Feb. 13, 2025 (GLOBE NEWSWIRE) — The GobizKOREA Online Exhibition is officially underway, bringing together innovative and competitive products from Korean small and medium-sized enterprises for a global business showcase. This dynamic online event, powered by the GobizKOREA global B2B platform, eliminates time and location barriers, enabling real-time interaction and efficient connections between exhibitors and buyers, as Korea’s latest trendy products make their grand debut on the international stage.

This online exhibition aims to introduce innovative and competitive products from Korean small and medium-sized suppliers to the global market and strengthen business networks.

Based on GobizKOREA’s online platform, this exhibition showcases products from various industries including health and beauty, agriculture and food, clothing and accessories. Additionally, it has significantly enhanced accessibility between global buyers and Korean companies by providing an environment where anyone can participate anytime, without time or location constraints.

Participating companies are strengthening their credibility by sharing detailed company and product information, along with various certifications to increase the chance of securing deals with buyers.

Buyers interested in trading can access the GobizKOREA website (https://www.gobizkorea.com), browse the various showcased products, and submit purchase inquiries for products of interest.

Considering the nature of this non-face-to-face online exhibition, GobizKOREA is actively supporting smooth communication between participating companies and buyers through trade experts, aiming to facilitate practical business cooperation.

GobizKOREA is a global B2B platform initiated in 1996 by The Korea SMEs & Startups Agency (KOSME), a government agency of the Republic of Korea. It plays a pivotal role in introducing outstanding products from Korean small and medium-sized suppliers to overseas markets through online channels and supporting global business.

Looking for trendy new products with immediate sales potential in the market? Please participate in this online exhibition and directly explore the products. Don’t miss out on valuable business opportunities.

Media contact

Brand: GobizKOREA

Contact: Ru Jieun

E-mail: ruji@Gobizkorea.com

Website: https://gobizkorea.com

Phone: +82-70-4771-1751

The MIL Network –

February 14, 2025
MIL-OSI Europe: EIB invests in new IPAE 3 fund to support entrepreneurship in West Africa and Madagascar
Source: European Investment Bank
- The EIB is investing €15 million in the new I&P Afrique Entrepreneurs (IPAE 3) fund to bolster support for small and medium-sized enterprises (SMEs) in Africa.
- This innovative and high-impact fund is expected to create more than 4 000 direct jobs, at least 40% of which will be for women.
- The investment, which is funded by the ACP Trust Fund, is in line with the European Union’s Global Gateway strategy.
During the EIB Group Day, the European Investment Bank (EIB) and Investisseurs & Partenaires (I&P) announced the signing of a financial partnership worth €15 million for the new I&P Afrique Entrepreneurs 3 (IPAE 3) fund. The signing ceremony was attended by EIB Vice-President Ambroise Fayolle as well as Jérémy Hajdenberg and Sébastien Boyé, co-CEOs of Investisseurs & Partenaires (I&P).

It is an innovative and high-impact fund in Africa, which supports local businesses with high growth potential in key areas for the countries involved. These vital sectors include agriculture, nutrition, health, energy, water, industry and services. The fund has clear impact objectives for the businesses in Africa that it finances. These include creating decent jobs, promoting responsible entrepreneurship, empowering women and fighting climate change.

The fund is expected to create over 4 000 direct jobs, at least 40% of which will be for women. The fund will also be fully aligned with the criteria of the 2X Challenge supporting women entrepreneurs.

The EIB – along with the West African Development Bank (BOAD) and Proparco – is among the first to invest in this fund and aims to attract other public and private investors. By supporting the fund, the EIB aims to unlock further investment amounting to 4.5 times the figure invested by the EIB. This is a milestone in financing for SMEs in West Africa and Madagascar, particularly in countries where private equity funds have traditionally faced significant investment challenges. I&P has a local presence in Côte d’Ivoire, Ghana, Senegal and Madagascar, and also covers nearby countries such as Benin and Togo.

“I am very pleased to have signed this new investment with Investisseurs & Partenaires to support IPAE 3, an innovative and high-impact fund for entrepreneurs in Africa, particularly in West Africa and Madagascar. Our aim is to provide finance for start-ups and to assist them in their development, especially in countries where accessing finance is difficult,” said EIB Vice-President Ambroise Fayolle. He also added: “By taking action, we are helping to create a more responsible form of entrepreneurship and supporting women entrepreneurs. In this way, we are helping to create jobs and develop the business leaders of the future. These are the key objectives of our finance operation in Africa alongside our Team Europe partners.”

“We are especially proud to continue our long-term partnership with the European Investment Bank, which began almost 20 years ago. As one of the first players to make a formal commitment to IPAE 3, the EIB is playing a decisive role in the success of this round of fundraising, along with the other players involved in this initial closing. The commitment that has been made to IPAE 3 demonstrates that there is confidence in our approach and expertise. IPAE 3 has a unique ambition: to grant finance to capable, responsible and innovative businesses that offer solutions to the biggest challenges facing Africa, while supporting economic inclusion, especially that of women,” said I&P co-CEO Sébastien Boyé.

This new financing is the fourth operation that the EIB and I&P have signed together, further strengthening the fruitful partnership that has developed between the parties. It brings the total support provided by the EIB to the various funds raised by I&P to €35.25 million.

This investment was funded by le Fonds fiduciaire pour les États d’Afrique, des Caraïbes et du Pacifique (Fonds fiduciaire ACP) with the support of the European Commission. This is part of Team Europe’s strong commitment to providing finance and support for start-ups in Africa, and more broadly as part of the Global Gateway strategy and its EU-Africa Global Gateway programme, to support sustainable and inclusive growth in Africa.

The EIB is a key player in development in Africa. Via EIB Global – its arm dedicated to financing outside the European Union – the EIB provided nearly €3.1 billion in investment in 2024 to support concrete and high-impact projects for the continent.

Please note: This press release is strictly informative and does not constitute an offer nor an invitation to invest in IPAE 3.

Background information

European Investment Bank

The EIB is the long-term lending institution of the European Union, owned by the Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in the Global Gateway. It aims to support €100 billion of investment by the end of 2027 – one-third of the overall target of this EU strategy. It is designed to foster strong, focused partnership within Team Europe alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices around the world.

Investisseurs & Partenaires

For over 20 years, Investisseurs & Partenaires (I&P) has been committed to financing and supporting SMEs in Africa and assisting investment teams to establish themselves on the continent.

I&P’s activities revolve around three fundamental objectives: to provide finance and assistance to entrepreneurs, to support and develop investment teams, and to bolster the entrepreneurial ecosystem. I&P provides finance for around 50 SMEs each year, and up to now has supported over 300 companies in a variety of sectors. Its team is present in 11 countries: Burkina Faso, Cameroon, Côte d’Ivoire, France, Ghana, Kenya, Madagascar, Mali, Niger, Senegal and Uganda.
MIL OSI Europe News –
February 14, 2025
MIL-OSI Europe: Written question – Fast fashion, Shein and the DSA – E-000407/2025
Source: European Parliament
Question for written answer E-000407/2025/rev.1
to the Commission
Rule 144
Adnan Dibrani (S&D)

We have seen alarming reports unveiling the specific operations of the Chinese online retail giant Shein, which has emerged as one of the largest e-commerce players in the EU. Shein is already recognised as a very large online platform (VLOP) under the EU’s Digital Services Act (DSA), and as such is subject to the supervision of the Commission. The Commission has already used this act to send a request for information to the company. Now, we urge the Commission to take the next step and open formal proceedings against Shein, as has already been done in the similar case of Temu. This should be effective, given the recent implementation of the EU’s new General Product Safety Regulation.

We stand ready to collaborate with the Commission in tackling these pressing challenges to protect our environment and safeguard the interests of EU consumers.

We therefore ask:

1.Will the Commission commit to taking immediate action on this case and open formal proceedings, in accordance with Article 66 of the DSA, to investigate Shein?

2.What additional measures will the Commission take to address these alarming issues, without delay, to effectively protect EU consumers?

Supporters[1]

Submitted: 29.1.2025

[1] This question is supported by Members other than the author: Christel Schaldemose (S&D), Heléne Fritzon (S&D)
Last updated: 13 February 2025
MIL OSI Europe News –
February 14, 2025
MIL-OSI Europe: Answer to a written question – Large-scale mergers in agro-industry – Ensuring fair competition and protection of small farmers – E-000072/2025(ASW)

Source: European Parliament

The Commission is fully aware that large-scale agro-industrial mergers may have an adverse impact on competition, small farmers, local cooperatives and sustainability.

These considerations are central to the Commission’s recent merger control investigations in the agricultural sector. For instance, in Case M.11204 Bunge/Viterra, the Commission assessed the effects of increased concentration of oilseed processing capacity in Central Europe, with potential negative effects on farmers.

In Case M.11382 AGCO/Trimble/JV, it assessed an acquisition in precision agriculture systems, which farmers use daily to optimize efficiency, productivity and sustainability of their operations. European farmers were invited to contribute to these investigations and their feedback was integral to the Commission’s analysis.

When necessary, the Commission has taken measures to prevent mergers from harming the EU agricultural sector’s competitiveness. In Case M.11204 Bunge/Viterra, approval was conditional upon the divestment of Viterra’s entire oilseed businesses in Hungary and Poland.

The independence, financial position, expertise and competitiveness of the proposed buyer will also be vetted, ensuring oilseed farmers in Hungary and Poland retain a diversified customer base.

The Commission will continue using all available tools to ensure agro-industrial concentration does not undermine the EU’s agricultural and environmental goals.

It will assess competition effects under the Merger Regulation, prevent distortions caused by third-country financial contributions under the Foreign Subsidies Regulation, and cooperate with Member States screening transactions under the Foreign Direct Investment Regulation.

MIL OSI Europe News –

February 14, 2025
MIL-OSI Europe: EIB and Government of Malta strengthen partnership with €260 million investment for sustainable growth
Source: European Investment Bank

EIB
- EIB signed with Ministry for Finance the first €130 million tranche of the €260 million financing package approved by the EU Bank.
- The EIB’s support will enhance Malta’s national co-financing contribution for the implementation of various EU funds, driving investments in crucial sectors of the economy.
- Since 1979, the EIB Group has invested more than €1 billion in Malta.
The European Investment Bank (EIB) approved a financing package of €260 million to support the Maltese government’s investments aimed at fostering a smarter, greener, and more resilient economy. The first €130 million tranche was signed this morning in Valletta by Clyde Caruana, Minister for Finance, and Kyriacos Kakouris, EIB Vice-President. This landmark agreement will help Malta co-finance initiatives that receive grants through the European Union budget for the 2021-2027 period, advancing strategic investments in critical sectors that drive economic growth, job creation, and social cohesion.

This funding will drive investment in key areas, including modernising health infrastructure to improve healthcare accessibility, strengthening SMEs by enhancing credit access and fostering entrepreneurship, and accelerating digital transformation to expand connectivity and drive innovation. Additionally, the financing will support biodiversity protection, wastewater management, and sustainable transport initiatives such as cycling infrastructure and energy-efficient solutions. These efforts will encourage sustainable mobility, lower emissions, and enhance energy security, reinforcing Malta’s economic, social, and territorial cohesion in alignment with EU policy priorities.

The EIB will support Malta’s national co-financing share for the implementation of the Operational Programmes for the 2021-2027 period under different EU funds, namely the Cohesion Fund (CF), the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Maritime, Fisheries and Aquaculture Fund (EMFAF), and the Just Transition Fund (JTF).

Minister for Finance Clyde Caruana commented: “The financing package we have just signed is a testament to the shared values between Malta and the EIB, serving as a crucial step in driving Malta’s economic growth. Through such commitment and collaboration, Malta’s vision for the future will become a reality, thus ensuring that society and local businesses will continue to thrive and excel.”

EIB Vice-President Kyriacos Kakouris highlighted: “This agreement demonstrates the EIB’s strong commitment to Malta’s sustainable growth. By accelerating investments in key areas—healthcare, digital innovation, sustainable transport, and environmental protection—we aim to enhance economic resilience and improve the quality of life for Maltese citizens. Together, we are shaping a greener, more innovative, and competitive future for Malta.”

The EIB in Malta

The European Investment Bank (EIB) has been supporting the Maltese economy since before the country’s accession to the European Union, with its first project signed in 1979 to help expand the commercial port of Valletta Grand Harbour. Since then, the EIB Group’s financing in Malta has exceeded €1 billion, aiding vital sectors such as SME access to finance, urban regeneration, climate action, telecommunications, and the construction of affordable housing. The EIB has also supported landmark infrastructure projects that have transformed the heart of Valletta, including the Parliament building and the open-air theatre at the City Gate. As the EU’s long-term lending institution, the EIB remains committed to promoting sustainable investment and fostering economic resilience in Malta and across Europe.

Background information  

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high -impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

EIB and Government of Malta strengthen partnership with €260 million investment for sustainable growth
EIB and Government of Malta strengthen partnership with €260 million investment for sustainable growth
©EIB
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EIB and Government of Malta strengthen partnership with €260 million investment for sustainable growth
EIB and Government of Malta strengthen partnership with €260 million investment for sustainable growth
©EIB
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MIL OSI Europe News –
February 14, 2025
MIL-OSI Europe: Frank Elderson: From concept to delivery: accounting for climate and nature in maintaining price stability and keeping banks safe and sound

Source: European Central Bank

Introductory remarks by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the MNI Webcast on Climate Change: Impact on Monetary Policy and Bank Supervision

Frankfurt am Main, 12 February 2025

Central banks and supervisors are not climate and nature policymakers.

Central banks and supervisors are climate and nature policy takers.

And we face an ever-increasing volume of climate and nature-related factors that we must take into account in order to successfully deliver on our mandate.

This is the fundamental principle that underpins all our climate and nature-related activities at the European Central Bank.

It is a principle grounded in irrefutable facts established by the scientific community and transposed to make their implications clear for the economy and financial system. At the ECB, we have translated this principle into our monetary policy and supervisory work as a strategic commitment to account for the ongoing climate and nature crises, irrespective of shifts in the macroeconomic tides and no matter what direction the political winds may blow.

This is why, both in our monetary policy and in our banking supervision, we have meticulously formulated strategies that are robust and resilient in all weathers. In the face of changing climates, be they macroeconomic, political or indeed at the level of our planetary ecosystem, we will continue to deliver on our mandate to keep prices stable and ensure Europe’s banks are safe and sound.

Climate and nature in monetary policy

Let me start with what we our doing when it comes to accounting for climate and nature in our monetary policy.

When the ECB concluded its strategy review in the summer of 2021, our new strategy explicitly acknowledged the profound implications of climate change for the economy and therefore its relevance for monetary policy. In our strategy, we also formulated a concrete action plan, and we are delivering on that plan.

First, we have made significant progress in improving our ability to take climate considerations into account in the macroeconomic analyses that inform our policy discussions.

Second, with respect to our monetary policy instruments, we started tilting our purchases of corporate bonds towards issuers with a better climate performance to avoid undue exposures to climate-related risks. While the last remaining purchases were suspended at the start of this year, if any corporate bond purchases were to be needed for monetary policy purposes in the future, the established direction of the tilt would set the minimum benchmark. With respect to the collateral we require for our lending operations, further technical work on incorporating climate change collateral considerations is still ongoing.

Our current actions aim to support a high degree of confidence in the alignment of our activities, within our mandate, with the goals set by the Paris Agreement. We have committed to regularly reviewing all our measures to assess their impact. If necessary, we will adapt them to ensure they continue to fulfil their monetary policy objectives and support the decarbonisation path to reach the goals set by the Paris Agreement and the EU’s climate neutrality objectives. Within our mandate, we will also look into addressing additional nature-related challenges.

Climate and nature in banking supervision

Let me move to the steps we have taken in banking supervision.

Our supervisory strategy was formulated after we learnt in 2019 that less than a quarter of the banks under our supervision had demonstrably reflected on how the climate and nature crises were affecting their risk management. This observation was obviously concerning, so in 2020 we published a guide setting out our supervisory expectations. These expectations outline the ECB’s understanding of the safe and prudent management of climate and nature-related risks under the prevailing prudential framework. Since then, we have consistently taken these risks into account in our supervisory work.

Considering the requirements clearly set out in the Capital Requirements Directive as implemented in national law, and the need for banks to implement a regular process for identifying all material risks, banks must ensure that practices are in place for the sound management of climate and nature-related risks. They had to achieve this by the end of last year and, in the run-up to that deadline, we also set interim deadlines for banks to remediate certain shortcomings related to the management of these risks. These deadlines were informed by what the banks themselves considered reasonable when we first started discussing climate and nature-related risk management with them.

We are still following up on the two earlier interim deadlines while we begin assessing banks’ practices in light of their final end-2024 deadline.

After the first interim deadline back in March 2023, we saw that many banks still had not implemented an adequate materiality assessment of the impact of climate and nature-related risks across their portfolios. The ECB imposed binding supervisory decisions on 28 banks, with 22 of them being told that if they did not remedy their shortcomings by a certain date, they would incur a periodic penalty payment for each day they remained in breach of our requirements. Encouragingly, almost all banks submitted an adequate materiality assessment in time, which shows that our supervisory efforts have been effective in almost all cases. For a few banks, the process to determine whether penalties have been incurred is ongoing.

For the second interim deadline of the end of 2023, we asked banks to clearly include climate and nature-related risks in their governance, strategy and risk management. As with the first interim deadline, we found weaknesses in banks’ practices that we communicated to them in the form of further feedback letters. In a small group of outliers, foundational elements for the adequate management of climate and nature-related risks are still missing. These banks received binding supervisory decisions in autumn 2024, again outlining the potential imposition of periodic penalty payments if they fail to meet the requirements in a timely manner.

To avoid any doubt, we will proceed in exactly the same way with respect to the third and final deadline that fell due at the turn of the year. We want to see evidence that banks’ risk management practices ensure the sound management of climate and nature-related risks across all areas of our supervisory expectations. For instance, this means that banks need to consider these risks in their stress-testing frameworks, including in plausible baseline and adverse scenarios that are in line with scientific evidence. Thereafter, banks will have to keep updating their practices in accordance with advances in data availability, methodologies and legislative and regulatory requirements. Banks need to ensure that their risk management practices remain commensurate with the magnitude of the climate and nature-related risks that they face. As supervisors, it is our job to make sure they do. To deliver on this, we will use – obviously always in a proportionate way – all supervisory instruments that we have at our disposal.

Conclusion

Let me conclude.

While the fundamental principle – that climate and nature are relevant for both monetary policy and banking supervision and, therefore, must be taken into account in the exercise of our tasks – is independent of the actions of climate and nature policymakers, the intensity and configuration of the risks that will ultimately materialise is not. The choices that climate and nature policymakers make will determine what combination of transition and physical risks materialises in the years to come. Regrettably, the prevailing consensus among climate scientists is that the goal of limiting global heating to 2 degrees Celsius, as set out in the Paris Agreement, is not currently being met. Last October the UN Emissions Gap Report concluded that the world is on track for an average increase of 3.1 degrees.^[1] And even that dramatic number will only be achieved if all governments stick with their current policies. The physical risks of climate and nature hazards are currently materialising at an ever-increasing scale and frequency.^[2] These physical risks will continue increasing or transition policies will have to be implemented more abruptly to secure a timely transition which will cause an increase in transition risks.

To identify climate and nature-related risks, central banks, supervisors and the banks we supervise are reliant on good data. Reporting requirements in the EU’s sustainable finance framework will improve the availability of reliable and comparable data that are needed to identify and manage financial risks. This is essential to ensure that the broader sustainable finance framework can serve its purpose of unlocking finance for the green transition and thereby contributing to Europe’s competitiveness agenda.

It is inevitable that climate and nature-related risks will increase. Concealing them will not make them disappear. And ignoring them will not make them less threatening for monetary policy and banking supervision. This is why we are delivering on our strategic commitment to take them into account in our work.

Robust to any shifting tides or changing winds.

Faithful to our mandate.

Thank you for your attention.

MIL OSI Europe News –

February 14, 2025
MIL-OSI Europe: EIB Group invests €12.6 billion to back growth, the green transition and innovation in France in 2024

Source: European Investment Bank

The European Investment Bank Group (EIB Group) delivered a strong performance in France last year, with €12.6 billion in long-term investment provided directly or indirectly to private sector companies of all sizes and public sector organisations. France received more EIB Group funding than any other country in 2024, partially as a result of an 85% increase in EIF financing.

MIL OSI Europe News –

February 14, 2025
MIL-OSI Europe: Highlights – Mission to Finland and Estonia – Subcommittee on Tax Matters

Source: European Parliament

FISC Mission to Finland and Estonia – 25 to 27 February 2025 © Image used under the license from Adobe Stock

Members of the FISC Subcommittee will travel to Helsinki (Finland) and Tallinn (Estonia) from 25 to 27 February 2025. The delegation, led by second Vice-Chair Ms. Regina Doherty, will meet with representatives of key institutions, such as the Ministries of Finances and national parliaments, and stakeholders from the private sector, trade unions, and civil society.

The discussions will focus on topical international tax issues and challenges, such as the implementation of the OECD’s two-pillar tax reform, the simplification of the tax system and forwarding competitiveness, tax incentives, the situation of cross-border workers, energy taxation, and the implementation of EU Directives.

MIL OSI Europe News –

February 14, 2025
MIL-OSI Europe: Missions – Mission to Finland and Estonia – 25-02-2025 – Subcommittee on Tax Matters

Source: European Parliament

Members of the FISC Subcommittee will travel to Helsinki (Finland) and Tallinn (Estonia) from 25 to 27 February 2025. The delegation, led by second Vice-Chair Ms. Regina Doherty, will meet with representatives of key institutions, such as the Ministries of Finances and national parliaments, and stakeholders from the private sector, trade unions, and civil society.

The discussions will focus on topical international tax issues and challenges, such as the implementation of the OECD’s two-pillar tax reform, the simplification of the tax system and forwarding competitiveness, tax incentives, the situation of cross-border workers, energy taxation, and the implementation of EU Directives.

MIL OSI Europe News –

February 14, 2025
MIL-OSI Europe: Highlights – EoV with Olli Rehn, First Vice-Chair of the European Systemic Risk Board – Committee on Economic and Monetary Affairs

Source: European Parliament

Olli Rehn © European Parliament

Olli Rehn, Governor of the Bank of Finland, will appear before ECON Committee Members in his capacity as First Vice Chair of the European Systemic Risk Board (ESRB) on Thursday, 20 February 2025.

The ESRB is responsible for the macroprudential oversight of the EU financial system and the prevention and mitigation of systemic risk. The ESRB Regulation requires the First Vice Chair to appear before the relevant committee of the European Parliament to explain how he will carry out his duties. Governor Rehn is a former European Commissioner (2004-2014) including a term as European Commissioner for Economic and Monetary Affairs and the Euro. In respect of the ESRB, he chaired a high level group which reported in 2024 on the future of the organisation.

MIL OSI Europe News –

February 14, 2025
MIL-OSI Europe: Highlights – Economic Dialogue with ECOFIN President – Committee on Economic and Monetary Affairs

Source: European Parliament

Andrzej Domański, ECOFIN President and Minister of Finance of Poland © European Union, 2025

The Committee on Economic and Monetary Affairs (ECON) holds an Economic Dialogue and exchange of views with Andrzej Domański, Minister of Finance of Poland, in his capacity as President of the ECOFIN Council during the Polish Presidency (January to June 2025) on Wednesday, 19 February 2025.

The ECOFIN President will provide an overview of the priorities of the Polish Presidency in the area of economic governance, financial services and taxation, and answer the questions of ECON Members.

MIL OSI Europe News –

February 14, 2025
MIL-OSI United Kingdom: Update on UK Shared Prosperity Fund Delivery Plan progress
Source: Scotland – Highland Council

An update on the progress being made across a range of interventions under the UK Government funded UK Shared Prosperity Fund (UKSPF) priorities of Communities and Places, Supporting Local Business and People and Skills was noted by Members of the Economy and Infrastructure Committee today (Thursday 13 February 2025). The report included reference to the Highland UKSPF allocation for 2025/26 and the work being progressed to establish a Delivery Plan for the coming financial year.

Chair of the Committee, Councillor Ken Gowans said: “As the UK Shared Prosperity Fund allocation must be spent within the 2025/26 financial year it is critical that projects are selected that will meet that timeframe. Members have agreed that a report will be presented, with recommendations, to the next Economy and Infrastructure Committee in May this year to enable Councillors to make decisions on which projects will go ahead.”

The update to Members included information on some key projects including:

Community Regeneration Fund Programme –

The majority of UKSPF projects managed by the Community Regeneration Fund team have now commenced activity. The team are in regular contact with the grantees to ensure that all the approved outcomes will be met and in line with the UKSPF deadlines and areas of intervention.

Active Travel Enhancements and Small-Scale Transport Projects –

Work is progressing on active travel projects to improve access to public transport and walking, wheeling and cycling facilities. Highlighted projects that were recently completed included: active travel works in Fort William, at Obsdale Road in Alness and the footpath from Balloch to Sunnyside east of Inverness. Works have started on cycle storage at six primary schools across the region and contracts have been awarded for footpath and crossing points in Hilton and Raigmore housing estates in Inverness.

Development of Area Place Plans –

The latest positions on the establishment of Area Place Plans was provided for Black Isle and Easter Ross, Dingwall and Seaforth, Lochaber, Sutherland, Caithness, Wester Ross, Strathpeffer and Lochalsh, Skye and Raasay, Inverness and Nairn.

Development and Promotion of the Visitor Economy –

The allocation from UK Shared Prosperity Fund to develop and promote the visitor economy is being utilised across several projects, including: The Glencoe Three Sisters Visitor Facilities; Glencoe Village Car Park Project; the pan-Highland Motorhome Signage Project; and Na Trads 2024 – MG ALBA Scots Traditional Music Awards which was held in Inverness in November 2024.

Business Support Start Up and Growth Grants –

The Highland Council Business Gateway service delivers the Business start-up and growth grants for the UKSPF programme. A total 381 eligible businesses were approved for the start-up grant by the end of December 2024, and 65 businesses were supported with a growth grant.

People and Skills –

Support is being provided for unemployed or economically inactive people of working age who need between 6 to 12 months support to progress into employment. The two providers – Enable Scotland and Triage Centrum have continued to progress well in seeking referrals, with 251 clients registered to date and receiving support and 82 clients now in employment at this stage.

Area and Green Skills Training and Facilities –

Green skills training is being delivered with four consortia business grants awarded, with projects now completed or near completion. Over 120 people have been supported to gain a green skills qualification or complete a course, and more than 40 are in employment following support through:
- Green Engineers for the Future, UHI North, West and Hebrides.
- For Peat’s Sake – consortia of businesses, Nature Scot and UHI Northwest Highland and Hebrides College.
- Access to Engineering, Nigg Skills Academy.
- Highland Green Skills, UHI Inverness.
Castle Training Programme –

A partnership with officers of The Highland Council, Developing the Young Workforce, UHI, and training providers is developing employability pathways for school leavers or those who would like to return to work to consider a career or role as part of the new Inverness Castle visitor experience team. To date, over 500 adult numeracy courses have been run in Highland through the Multiply programme

Multiply –

With twelve contracted providers across the region, this project continues to deliver support to people over the age of 16 to help improve their numeracy skills through free personal tutoring and digital training.

Budget Management –

The 2022-25 Highland UKSPF budget is £9.44m, comprising £7.81m allocated for Communities and Places, Supporting Local Business, and People and Skills priorities, and £1.63m ring fenced to Multiply (adult numeracy training), with spend allowed up to end March 2025.

In December 2024, the UK Government confirmed the UKSPF allocations for 2025/26, for Highland as £3.10m (£0.88m capital; and £2.22m revenue).

The update report presented to committee is available on the council’s website here – Item 8

-ends-
MIL OSI United Kingdom –
February 14, 2025
MIL-OSI Russia: Marat Khusnullin: Drilling operations have begun during the construction of the interchange on the M-11 “Neva” with a connection to Pulkovo Airport

Translartion. Region: Russians Fedetion –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

At the 681st km of the M-11 “Neva” highway, construction is underway on a transport interchange to Pulkovo Airport in St. Petersburg

At the 681st km of the M-11 Neva highway, a transport interchange to Pulkovo Airport in St. Petersburg is being built. It includes three overpasses. Currently, specialists are working on the foundations of two artificial structures made of bored piles. This was reported by Deputy Prime Minister Marat Khusnullin.

“A lot has been done in the context of road activities to connect the regions of the country with single routes in different directions. Thanks to the launch of new sections and the reconstruction of existing ones, a seamless, traffic-light-free route has already been created from St. Petersburg to the Republic of Bashkortostan and Sevastopol, which also runs along the M-11 “Neva” highway. This road system will also include a new interchange on the M-11 to Pulkovo Airport in St. Petersburg, which is being built on the instructions of the President. Specialists have begun to construct the foundations of two future overpasses over Pulkovo Highway from bored piles. They have already driven 16 piles for the first support and have begun drilling the piles of the third support. This is the most important stage of the work, on which the stability and reliability of the entire transport interchange depends in the future. In total, three overpasses are planned to be built as part of the future transport infrastructure facility, for which 151 piles need to be driven and 20 supports erected,” said Marat Khusnullin.

The new access road to Pulkovo Airport starts at the 681st km of the M-11 Neva highway, crosses Pulkovo Highway and is directly adjacent to the entrance to the airport. The first overpass is located directly above the M-11 Neva, and the other two are above Pulkovo Highway. The new complex of road structures will allow motorists to safely and quickly get to the air harbor.

According to the Chairman of the Board of the state company Avtodor, Vyacheslav Petushenko, this project is of great importance, since it affects the increase of transport accessibility and connectivity of the country’s regions, especially in the context of the predicted increase in passenger turnover at Pulkovo Airport.

“We are building a connecting four-lane highway of the highest technical category, without traffic lights and intersections with other roads at the same level. Now we are installing bored piles at the site using two drilling rigs. The piles have been drilled into the first support of the two future overpasses over Pulkovo Highway, and now we are installing the reinforcement frame and assembling the formwork for concreting the grillage. At the same time, we are carrying out work on installing the roadbed, bringing in and compacting sandy soil,” noted Vyacheslav Petushenko.

The total length of the new connecting road, as well as all exits at the intersection of M-11 “Neva” and Pulkovo Highway, will be 5.5 km. Opening of traffic on it for motorists is planned for the end of 2026.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

February 14, 2025

MIL-OSI: Beneficient Reports Results for Third Quarter Fiscal 2025

Source: GlobeNewswire (MIL-OSI)

Announced Proposed Transaction to Increase Tangible Book Value to Ben Public Company Stockholders by $9 Million on 8.4 Million Shares Outstanding, Permanent Equity Increased by $35 Million

Completed First Primary Capital Transaction as Part of Ongoing Business Development Activities

Announced Proposed International Bank Acquisition to Expand Alternative and Digital Asset Markets Capabilities

DALLAS, Feb. 13, 2025 (GLOBE NEWSWIRE) — Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets through its proprietary online platform, AltAccess, today reported its financial results for the fiscal 2025 third quarter, which ended December 31, 2024.

Commenting on the fiscal 2025 third quarter results, Beneficient management said: “Our fiscal third quarter was focused on key steps that we believe will ready Ben for significant new activities in delivering liquidity, primary capital and digital asset markets solutions – which we believe are all opportunities to disrupt and enhance the solutions available to large financial audiences. During the fiscal third quarter, we also closed our first primary capital transaction and are seeking additional opportunities.

“A complementary part of our plan is the proposed acquisition of Mercantile Bank International Corp. (“Mercantile Bank”), a Puerto Rico-based International Financial Entity, which is expected to enable Ben to offer an expanded range of digital asset market solutions and companion custody, clearing and control account fee-based services. We intend to drive new growth opportunities in calendar 2025, which we believe have the potential to generate above market fee rates. These efforts are expected to further build out our expansive model and enable the Company to benefit from a growing range of trust, custody and other services we provide as well as the underlying performance of the private equity assets held in trust.

“Additionally, we are pleased to have continued to strengthen our capital structure, increasing our permanent equity by $35 million through a re-designation of certain preferred equity. Furthermore, we executed an agreement to complete additional transactions designed to revise the liquidation priority of Beneficient Company Holdings, L.P. (“BCH”) and deliver other benefits to our public company stockholders provided by entities controlled by our founders, which are expected to become increasingly visible as the Company enters into more liquidity and primary capital transactions.”

Third Quarter Fiscal 2025 and Recent Highlights (for the quarter ended December 31, 2024 or as noted):

Reported investments with a fair value of $334.3 million, increased from $329.1 million at the end of our prior fiscal year, served as collateral for Ben Liquidity’s net loan portfolio of $260.6 million and $256.2 million, respectively. Reported investments include our first primary capital transaction with a closing of $1.4 million on December 31, 2024.
Revenues increased to $4.4 million in the third quarter of fiscal 2025 as compared to $(10.2) million in the same quarter of fiscal 2024. For the nine months ended December 31, 2024, revenues for fiscal 2025 were $23.0 million as compared to $(55.7) million for fiscal 2024.
Operating expenses declined 98% to $13.9 million in the third quarter of fiscal 2025, as compared to $905.7 million in the third quarter of fiscal 2024, which included a non-cash goodwill impairment of $883.2 million. For the nine months ended December 31, 2024, operating expenses for fiscal 2025 were $1.9 million, which included the release of a loss contingency accrual of $55.0 million and non-cash goodwill impairment of $3.7 million, as compared to $2.4 billion in fiscal 2024, which included non-cash goodwill impairment of $2.3 billion.
Excluding the non-cash goodwill impairment in the prior comparable period, operating expenses declined 38% to $13.9 million in the third quarter of fiscal 2025 as compared to $22.5 million in the same period of fiscal 2024. For the nine months ended December 31, 2024, excluding the non-cash goodwill impairment and the loss contingency release in each period, as applicable, operating expenses were $53.2 million in fiscal 2025 as compared to $111.7 million in fiscal 2024.
Improved permanent equity from a deficit of $148.3 million as of June 30, 2024 to a positive $14.3 million as of December 31, 2024 through a combination of redesignating approximately $160.5 million of temporary equity to permanent equity and additional capital from equity sales and liquidity transactions offset by net loss allocable to permanent equity classified securities of $6.9 million during the applicable period.
Announced proposed transaction on December 23, 2024 to revise the liquidation priority of BCH and provide other benefits to our public company shareholders, which on a proforma basis, amounts to $9.2 million of tangible book value to Ben’s public company stockholders⁽¹⁾ using December 31, 2024 financial information, as compared to no book value to Ben’s public company stockholders absent the transaction.
Announced an agreement to acquire Mercantile Bank in exchange for an aggregate purchase price of $1.5 million, subject to certain closing conditions, which is expected to enable Ben to offer an expanded range of digital asset markets solutions and companion custody, clearing and control account fee-based services that generate additional cash flow in calendar 2025, including additional alternative asset custody services with the potential to generate higher fee rates than are generally available for traditional custody services.

Loan Portfolio

As a result of executing on our business plan of providing financing for liquidity, or early investment exits, for alternative asset marketplace participants, Ben organically develops a balance sheet comprised largely of loans collateralized by a well- diversified alternative asset portfolio that is expected to grow as Ben successfully executes on its core business.

Ben’s balance sheet strategy for ExAlt Loan origination is built on the theory of the portfolio endowment model for the fiduciary financings we make by utilizing our patent-pending computer implemented technologies branded as OptimumAlt. Our OptimumAlt endowment model balance sheet approach guides diversification of our fiduciary financings across seven asset classes of alternative assets, over 11 industry sectors in which alternative asset managers invest, and at least six countrywide exposures and multiple vintages of dates of investment into the private funds and companies.

As of December 31, 2024, Ben’s loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 220 private market funds and approximately 750 investments across various asset classes, industry sectors and geographies. This portfolio includes exposure to some of the most exciting, sought after private company names worldwide, such as the largest private space exploration company, an innovative software and payment systems provider, a venture capital firm investing in waste-to-energy and clean energy technologies, a technology company providing Net Zero solutions in the production of advanced biofuels, a designer and manufacturer of shaving products, a large online store for women’s clothes and other fashionable accessories that has announced intentions to go public, a mobile banking services provider, and others.

Figure 1: Portfolio Diversification

Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses

As of December 31, 2024, the charts below present the ExAlt Loan portfolio’s relative exposure by certain characteristics (percentages determined by aggregate fiduciary ExAlt Loan portfolio principal balance net of allowance for credit losses, which includes the exposure to interests in certain of our former affiliates composing part of the Fiduciary Loan Portfolio).

_{As of December 31, 2024. Represents the characteristics of professionally managed funds and investments in the Collateral (defined as follows) portfolio. The Collateral for the ExAlt Loans in the loan portfolio is comprised of a diverse portfolio of direct and indirect interests (through various investment vehicles, including, limited partnership interests and private and public equity and debt securities, which include our and our affiliates’ or our former affiliates’ securities), primarily in third-party, professionally managed private funds and investments. Loan balances used}_{to calculate the percentages reported in the pie charts are loan balances net of any allowance for credit losses, and as of}_{December 31, 2024}_{, the total allowance for credit losses was}_{$325 million}_{, for a total gross loan balance of}_{$586 million}_{and a loan balance net of allowance for credit losses of}_{$261 million}_.

Business Segments: Third Quarter Fiscal 2025

Ben Liquidity

Ben Liquidity offers simple, rapid and cost-effective liquidity products through the use of our proprietary financing and trust structure, or the “Customer ExAlt Trusts,” which facilitate the exchange of a customer’s alternative assets for consideration.

Ben Liquidity recognized $11.3 million of interest income for the fiscal third quarter, a decrease of 5.7% from the quarter ended September 30, 2024, primarily due to a higher percentage loans being placed on nonaccrual status, partially offset by the effects of compounding interest on the remaining loans.

Operating loss for the fiscal third quarter was $2.9 million, a decline from operating income of $2.9 million for the quarter ended September 30, 2024. The decline in operating performance was due to higher intersegment credit losses in the current fiscal period as compared to the quarter ended September 30, 2024 due to slightly lower collateral values while the amortized cost basis increased principally due to interest capitalizing at a higher rate than loan payments.

Ben Custody

Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly calculated as a percentage of assets in custody.

NAV of alternative assets and other securities held in custody by Ben Custody during the fiscal third quarter increased to $385.1 million as of December 31, 2024, compared to $381.2 million as of March 31, 2024. The increase was driven by $1.4 million of new originations and unrealized gains on existing assets, principally related adjustments to the relative share held in custody of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor during the period, offset by distributions during the period.
Revenues applicable to Ben Custody were $5.4 million for the fiscal third quarter, compared to $5.4 million for the quarter ended September 30, 2024. The similar amount of revenues for these periods was a result of stable NAV of alternative assets and other securities held in custody at the beginning of each applicable period, when such fees are calculated.
Operating income for the fiscal third quarter decreased to $3.5 million, from $4.3 million for the quarter ended September 30, 2024. The decrease was primarily due to credit losses related to certain fees collateralized by securities of our former parent company. Additionally, there was no non-cash goodwill impairment in the third fiscal quarter as compared to non-cash goodwill impairment of $0.3 million for the quarter ended September 30, 2024.
Adjusted operating income⁽¹⁾ for the fiscal third quarter was $4.8 million, compared to adjusted operating income⁽¹⁾ of $4.6 million for the quarter ended September 30, 2024. The increase was due to slightly lower operating expenses, principally related to lower employee compensation due to lower headcount.

Business Segments: Through Nine Months Ended Fiscal 2025

Ben Liquidity

Ben Liquidity recognized $34.1 million of interest income for the nine months ended December 31, 2024, down 6.0% compared to the prior year period, primarily due to lower loans, net of the allowance for credit losses, resulting from higher levels of non-accrual loans and loan prepayments, partially offset by new loans originated.
Operating loss was $0.5 million for the nine months ended December 31, 2024, improving from an operating loss of $1.8 billion in the prior year period. The prior period loss was driven by non-cash goodwill impairment totaling $1.7 billion and credit losses largely related to securities of our former parent company.
Adjusted operating loss⁽¹⁾ was $0.5 million for the nine months ended December 31, 2024 compared to adjusted operating loss⁽¹⁾ of $11.8 million in the prior year period with the improvement in adjusted operating loss⁽¹⁾ primarily related to lower credit loss adjustments recognized in the current fiscal year and lower employee compensation costs due to lower headcount.

Ben Custody

Ben Custody revenues were $16.2 million for the nine months ended December 31, 2024, down 14.7%, compared to the prior year period, primarily due to lower NAV of alternative assets and other securities held in custody.
Operating income was $9.1 million for the nine months ended December 31, 2024 compared to operating loss of $538.8 million in the prior year period, with the increase in operating income principally related to a significantly larger non-cash goodwill impairment in the prior year period of $554.6 million as compared to $3.4 million in the current fiscal year.
Adjusted operating income⁽¹⁾ for the nine months ended December 31, 2024 was $13.9 million, compared to adjusted operating income⁽¹⁾ of $15.8 million in the prior year period with the decrease in adjusted operating income⁽¹⁾ primarily due to lower revenue related to lower NAV of alternative assets and other securities held in custody partially offset by slightly lower operating expenses during the current fiscal year period.

Capital and Liquidity

As of December 31, 2024, the Company had cash and cash equivalents of $4.1 million and total debt of $122.9 million.
Distributions received from alternative assets and other securities held in custody totaled $19.3 million for the nine months ended December 31, 2024, compared to $38.4 million for the same period of fiscal 2024.
Total investments (at fair value) of $334.3 million at December 31, 2024 supported Ben Liquidity’s loan portfolio.

⁽¹⁾ Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.

Board Update

On November 21, 2024, Karen Wendel was appointed to the Board as an independent director and a member of various committees, including the Audit committee of the Board, bringing substantial additional expertise in Cyber Security, Identity Solutions, Security Regulations, ISO Global Standards, e-Commerce, e-Healthcare, PKI Digital Certificates and Blockchain to Beneficient. Ms. Wendel serves as Founder and Chief Executive Officer of Trust Chains, a cybersecurity consulting firm, and previously served as the Chief Executive Officer and board member of IdenTrust, a global identity solutions company, from May 2003 to February 2016. Ms. Wendel has also served as Chief Executive Officer and a board member for eFinance Corporation, as a board member and audit committee member of Level Field Capital, a Nasdaq-traded special purpose acquisition company, as a partner at the Capital Markets Company (CAPCO), a Belgium-based consulting firm, and is the former head of the U.S. Financial Services Practice at Gemini Consulting. Ms. Wendel is an author on financial management, payments and supply chain integration; an advisor to U.S. government agencies and the European Union on emerging technologies for payments and transaction processing; and a keynote speaker at major international banking conferences.

Consolidated Fiscal Third Quarter Results

Table 1 below presents a summary of selected unaudited consolidated operating financial information.

Consolidated Fiscal Third Quarter Results ($ in thousands, except share and per share amounts)	Fiscal 3Q25 December 31, 2024			Fiscal 2Q25 September 30, 2024			Fiscal 3Q24 December 31, 2023			Change % vs. Prior Quarter	YTD Fiscal 2025			YTD Fiscal 2024			Change % vs. Prior YTD
GAAP Revenues	$	4,419		$	8,561		$	(10,235	)	(48.4)%	$	23,026		$	(55,739	)	NM
Adjusted Revenues⁽¹⁾		4,427			8,734			8,456		(49.3)%		23,572			8,478		NM
GAAP Operating Income (Loss)		(9,513	)		(13,715	)		(915,951	)	30.6%		21,110			(2,453,685	)	NM
Adjusted Operating Loss⁽¹⁾		(7,301	)		(6,611	)		(11,684	)	(10.4)%		(18,638	)		(57,374	)	67.5%
Basic Class A EPS	$	(1.32	)	$	2.98		$	(158.36	)	NM	$	10.30		$	(668.31	)	NM
Diluted Class A EPS	$	(1.32	)	$	0.03		$	(158.36	)	NM	$	0.12		$	(668.31	)	NM
Segment Revenues attributable to Ben’s Equity Holders⁽²⁾		16,621			16,626			17,961		—%		49,482			53,715		(7.9)%
Adjusted Segment Revenues attributable to Ben’s Equity Holders ⁽¹⁾⁽²⁾		16,621			16,626			18,146		—%		49,489			55,059		(10.1)%
Segment Operating Income (Loss) attributable to Ben’s Equity Holders		(8,281	)		(9,192	)		(894,617	)	9.9%		27,391			(2,414,893	)	NM
Adjusted Segment Operating Loss attributable to Ben’s Equity Holders⁽¹⁾⁽²⁾	$	(4,737	)	$	(2,261	)	$	(4,594	)	NM	$	(11,551	)	$	(37,583	)	69.3%

NM – Not meaningful.

⁽¹⁾ Adjusted Revenues, Adjusted Operating Loss, Adjusted Segment Revenues attributable to Ben’s Equity Holders and Adjusted Segment Operating Loss attributable to Ben’s Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.

⁽²⁾ Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the nine months ended December 31, 2024, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.

Table 2 below presents a summary of selected unaudited consolidated balance sheet information.

Consolidated Fiscal Third Quarter Results ($ in thousands)	Fiscal 3Q25 As of December 31, 2024		Fiscal 4Q24 As of March 31, 2024		Change %
Investments, at Fair Value	$	334,278	$	329,119	1.6%
All Other Assets		52,720		22,676	132.5%
Goodwill and Intangible Assets, Net		13,014		16,706	(22.1)%
Total Assets	$	400,012	$	368,501	8.6%

Business Segment Information Attributable to Ben’s Equity Holders⁽¹⁾

Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben’s equity holders.

Segment Revenues Attributable to Ben’s Equity Holders⁽¹⁾ ($ in thousands)	Fiscal 3Q25 December 31, 2024			Fiscal 2Q25 September 30, 2024			Fiscal 3Q24 December 31, 2023		Change % vs. Prior Quarter	YTD Fiscal 2025			YTD Fiscal 2024			Change % vs. Prior YTD
Ben Liquidity	$	11,297		$	11,978		$	11,275	(5.7)%	$	34,124		$	36,303		(6.0)%
Ben Custody		5,410			5,386			5,897	0.4%		16,178			18,961		(14.7)%
Corporate & Other		(86	)		(738	)		789	88.3%		(820	)		(1,549	)	47.1%
Total Segment Revenues Attributable to Ben’s Equity Holders⁽¹⁾	$	16,621		$	16,626		$	17,961	—%	$	49,482		$	53,715		(7.9)%

Segment Operating Income (Loss) Attributable to Ben’s Equity Holders⁽¹⁾ ($ in thousands)	Fiscal 3Q25 December 31, 2024			Fiscal 2Q25 September 30, 2024			Fiscal 3Q24 December 31, 2023			Change % vs. Prior Quarter	YTD Fiscal 2025			YTD Fiscal 2024			Change % vs. Prior YTD
Ben Liquidity	$	(2,853	)	$	2,905		$	(606,405	)	NM	$	(462	)	$	(1,781,521	)	100.0%
Ben Custody		3,507			4,329			(267,995	)	(19.0)%		9,123			(538,840	)	NM
Corporate & Other		(8,935	)		(16,426	)		(20,217	)	45.6%		18,730			(94,532	)	NM
Total Segment Operating Income (Loss) Attributable to Ben’s Equity Holders⁽¹⁾	$	(8,281	)	$	(9,192	)	$	(894,617	)	9.9%	$	27,391		$	(2,414,893	)	NM

NM – Not meaningful.

⁽¹⁾ Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the nine months ended December 31, 2024, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.

Adjusted Business Segment Information Attributable to Ben’s Equity Holders⁽²⁾

Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben’s equity holders.

Adjusted Segment Revenues Attributable to Ben’s Equity Holders⁽¹⁾⁽²⁾ ($ in thousands)	Fiscal 3Q25 December 31, 2024			Fiscal 2Q25 September 30, 2024			Fiscal 3Q24 December 31, 2023		Change % vs. Prior Quarter	YTD Fiscal 2025			YTD Fiscal 2024			Change % vs. Prior YTD
Ben Liquidity	$	11,297		$	11,978		$	11,275	(5.7)%	$	34,124		$	36,303		(6.0)%
Ben Custody		5,410			5,386			5,897	0.4%		16,178			18,961		(14.7)%
Corporate & Other		(86	)		(738	)		974	88.3%		(813	)		(205	)	NM
Total Adjusted Segment Revenues Attributable to Ben’s Equity Holders⁽¹⁾⁽²⁾	$	16,621		$	16,626		$	18,146	—%	$	49,489		$	55,059		(10.1)%

Adjusted Segment Operating Income (Loss) Attributable to Ben’s Equity Holders⁽¹⁾⁽²⁾ ($ in thousands)	Fiscal 3Q25 December 31, 2024			Fiscal 2Q25 September 30, 2024			Fiscal 3Q24 December 31, 2023			Change % vs. Prior Quarter	YTD Fiscal 2025			YTD Fiscal 2024			Change % vs. Prior YTD
Ben Liquidity	$	(2,853	)	$	2,905		$	2,525		NM	$	(457	)	$	(11,769	)	96.1%
Ben Custody		4,847			4,627			4,835		4.8%		13,890			15,767		(11.9)%
Corporate & Other		(6,731	)		(9,793	)		(11,954	)	31.3%		(24,984	)		(41,581	)	39.9%
Total Adjusted Segment Operating Income (Loss) Attributable to Ben’s Equity Holders⁽¹⁾⁽²⁾	$	(4,737	)	$	(2,261	)	$	(4,594	)	NM	$	(11,551	)	$	(37,583	)	69.3%

NM – Not meaningful.

⁽¹⁾ Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben’s Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben’s Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.
⁽²⁾ Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the nine months ended December 31, 2024, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.

Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income (Loss) Attributable to Ben Common Shareholders

Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben’s Equity Holders to net income (loss) attributable to Ben common shareholders.

Reconciliation of Business Segments to Net Income (Loss) to Ben Common Shareholders ($ in thousands)	Fiscal 3Q25 December 31, 2024			Fiscal 2Q25 September 30, 2024			Fiscal 3Q24 December 31, 2023			YTD Fiscal 2025			YTD Fiscal 2024
Ben Liquidity	$	(2,853	)	$	2,905		$	(606,405	)	$	(462	)	$	(1,781,521	)
Ben Custody		3,507			4,329			(267,995	)		9,123			(538,840	)
Corporate & Other		(8,935	)		(16,426	)		(20,217	)		18,730			(94,532	)
Loss on debt extinguishment, net (intersegment elimination)		—			—			(3,940	)		—			(3,940	)
Gain on liability resolution		—			23,462			—			23,462			—
Income tax expense (allocable to Ben and BCH equity holders)		(713	)		—			(75	)		(741	)		(75	)
Net loss attributable to noncontrolling interests – Ben		4,844			3,067			360,695			15,098			401,985
Noncontrolling interest guaranteed payment		(4,489	)		(4,423	)		(4,229	)		(13,268	)		(12,501	)
Net income (loss) attributable to Ben’s common shareholders	$	(8,639	)	$	12,914		$	(542,166	)	$	51,942		$	(2,029,424	)

Earnings Webcast

Beneficient will host a webcast and conference call to review its third quarter financial results on February 13, 2025, at 8:30 am Eastern Standard Time. The webcast will be available via live webcast from the Investor Relations section of the Company’s website at https://shareholders.trustben.com under Events.

Replay

The webcast will be archived on the Company’s website in the investor relations section for replay for at least one year.

About Beneficent

Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential exit options within minutes, while customers can log on to the AltAccess® portal to explore opportunities and receive proposals in a secure online environment.

Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.

For more information, visit www.trustben.com or follow us on LinkedIn.

Contacts
Investors:
Matt Kreps/214-597-8200/mkreps@darrowir.com
Michael Wetherington/214-284-1199/mwetherington@darrowir.com
investors@beneficient.com

Important Information and Where You Can Find It

This press release may be deemed to be solicitation material in respect of a vote of stockholders to approve an amendment to Ben’s articles of incorporation to increase the authorized shares of Class B Common Stock of Ben and the issuance of securities pursuant to the transactions to revise the liquidation priority of BCH (the “Transactions”). In connection with the requisite stockholder approval, Ben will file with the Securities and Exchange Commission (the “SEC”) a preliminary proxy statement and a definitive proxy statement, which will be sent to the stockholders of Ben, seeking such approvals related to the Transactions.

INVESTORS AND SECURITY HOLDERS OF BEN AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ, WHEN AVAILABLE, THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTIONS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BEN AND THE TRANSACTIONS. Investors and security holders will be able to obtain a free copy of the proxy statement, as well as other relevant documents filed with the SEC containing information about Ben, without charge, at the SEC’s website (http://www.sec.gov). Copies of documents filed with the SEC by Ben can also be obtained, without charge, by directing a request to Investor Relations, Beneficient, 325 North St. Paul Street, Suite 4850, Dallas, Texas 75201, or email investors@beneficient.com.

Participants in the Solicitation of Proxies in Connection with Transaction

Ben and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the requisite stockholder approvals under the rules of the SEC. Information regarding Ben’s directors and executive officers is available in its annual report on Form 10-K for the fiscal year ended March 31, 2024, which was filed with the SEC on July 9, 2024 and certain current reports on Form 8-K filed by Ben. Other information regarding the participants in the solicitation of proxies with respect to the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

Not an Offer of Securities

The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Disclaimer and Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to, among other things, demand for our solutions in the alternative asset industry, opportunities for market growth, statements regarding the proposed Transactions, including expectations of future plans, strategies, and benefits of the Transactions, statements regarding the proposed Mercantile Bank acquisition and estimates regarding future synergies and benefits, our ability to expand the range of digital asset market solutions, and companion custody clearing and control account fee-based services as a result of the proposed Mercantile Bank acquisition, our ability to identify and negotiate transactions, diversification and size of our loan portfolio and our ability to scale operations and provide shareholder value. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the ultimate outcome of the Transactions; the Company’s ability to consummate the Transactions; the ability of the Company to satisfy the closing conditions set forth in the agreement with respect to the Transactions, including obtaining the requisite vote of securityholders; the Company’s ability to meet expectations regarding the timing and completion of the Transactions, the ultimate outcome of the proposed Mercantile Bank acquisition; the Company’s ability to consummate the proposed Mercantile Bank acquisition in a timely manner or at all; the ability of the parties to satisfy the closing conditions to the acquisition; the possibility that the Company may be unable to successfully integrate Mercantile Bank’s operations with those of the Company or realize the expected benefits of the acquisition; the possibility that such integration may be more difficult, time-consuming, or costly than expected; the risk that operating costs, customer loss, and business disruption (including, without limitation, difficulties in maintaining relationships with employees, contractors, and customers) may be greater than expected following the acquisition or the public announcement of the acquisition; the Company’s ability to retain certain key employees of Mercantile Bank; the ability to launch and receive market acceptance for new products and services; risks related to the entry into a new line of business in connection with the proposed Mercantile Bank acquisition, and the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Table 6: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended December 31,						Nine Months Ended December 31,
(Dollars in thousands, except per share amounts)		2024			2023			2024			2023
Revenues
Investment income, net	$	4,742		$	7,448		$	24,311		$	7,935
Loss on financial instruments, net (related party of $(8), $(18,691), $(546) and $(64,217), respectively)		(523	)		(18,024	)		(1,885	)		(64,260	)
Interest and dividend income		10			118			34			348
Trust services and administration revenues (related party of $8, $8, $23 and $23, respectively)		188			158			564			173
Other income		2			65			2			65
Total revenues		4,419			(10,235	)		23,026			(55,739	)

Operating expenses
Employee compensation and benefits		2,929			7,340			13,914			58,561
Interest expense (related party of $3,140, $3,018, $9,330 and $5,843, respectively)		3,240			4,671			11,848			13,569
Professional services		5,083			4,970			17,884			22,000
Provision for credit losses		—			—			1,000			—
Loss on impairment of goodwill		—			883,223			3,692			2,286,212
Release of loss contingency related to arbitration award		—			—			(54,973	)		—
Other expenses (related party of $723, $2,096, $2,111 and $6,317, respectively)		2,680			5,512			8,551			17,604
Total operating expenses		13,932			905,716			1,916			2,397,946
Operating income (loss)		(9,513	)		(915,951	)		21,110			(2,453,685	)
(Gain) loss on liability resolution		—			—			(23,462	)		—
Loss on extinguishment of debt, net		—			8,846			—			8,846
Net income (loss) before income taxes		(9,513	)		(924,797	)		44,572			(2,462,531	)
Income tax expense		713			75			741			75
Net income (loss)		(10,226	)		(924,872	)		43,831			(2,462,606	)
Plus: Net loss attributable to noncontrolling interests – Customer ExAlt Trusts		1,232			26,240			6,281			43,698
Plus: Net loss attributable to noncontrolling interests – Ben		4,844			360,695			15,098			401,985
Less: Noncontrolling interest guaranteed payment		(4,489	)		(4,229	)		(13,268	)		(12,501	)
Net income (loss) attributable to Beneficient common shareholders	$	(8,639	)	$	(542,166	)	$	51,942		$	(2,029,424	)
Other comprehensive income (loss):
Unrealized (loss) gain on investments in available-for-sale debt securities		(120	)		51			(115	)		4,236
Total comprehensive income (loss)		(8,759	)		(542,115	)		51,827			(2,025,188	)
Less: comprehensive (loss) gain attributable to noncontrolling interests		(120	)		51			(115	)		4,236
Total comprehensive income (loss) attributable to Beneficient	$	(8,639	)	$	(542,166	)	$	51,942		$	(2,029,424	)

Net income (loss) per common share
Class A – basic	$	(1.32	)	$	(158.36	)	$	10.30		$	(668.31	)
Class B – basic	$	(1.02	)	$	(156.95	)	$	13.78		$	(587.49	)
Net income (loss) per common share
Class A – diluted	$	(1.32	)	$	(158.36	)	$	0.12		$	(668.31	)
Class B – diluted	$	(1.02	)	$	(156.95	)	$	0.12		$	(587.49	)

Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	December 31, 2024			March 31, 2024
(Dollars and shares in thousands)	(unaudited)
ASSETS
Cash and cash equivalents	$	4,149		$	7,913
Restricted cash		52			64
Investments, at fair value:
Investments held by Customer ExAlt Trusts (related party of $12 and $552)		334,278			329,113
Investments held by Ben (related party of nil and $6)		—			6
Other assets, net		48,519			14,699
Intangible assets		3,100			3,100
Goodwill		9,914			13,606
Total assets	$	400,012		$	368,501
LIABILITIES, TEMPORARY EQUITY, AND EQUITY (DEFICIT)
Accounts payable and accrued expenses (related party of $14,294 and $14,143)	$	149,204		$	157,157
Other liabilities (related party of $16,798 and $9,740)		22,433			31,727
Warrants liability		648			178
Convertible debt		2,667			—
Debt due to related parties		120,274			120,505
Total liabilities		295,226			309,567
Redeemable noncontrolling interests
Preferred Series A Subclass 0 Redeemable Unit Accounts, nonunitized		90,526			251,052
Total temporary equity		90,526			251,052
Shareholder’s equity (deficit):
Preferred stock, par value $0.001 per share, 250,000 shares authorized
Series A preferred stock, 0 and 0 shares issued and outstanding as of December 31, 2024 and March 31, 2024		—			—
Series B preferred stock, 363 and 227 shares issued and outstanding as of December 31, 2024 and March 31, 2024		—			—
Class A common stock, par value $0.001 per share, 5,000,000 and 18,750⁽¹⁾ shares authorized as of December 31, 2024 and March 31, 2024, respectively, 8,246 and 3,348 shares issued as of December 31, 2024 and March 31, 2024, respectively, and 8,237 and 3,339 shares outstanding as of December 31, 2024 and March 31, 2024, respectively		8			3
Class B convertible common stock, par value $0.001 per share, 250⁽¹⁾ shares authorized, 239 and 239 shares issued and outstanding as of December 31, 2024 and March 31, 2024		—			—
Additional paid-in capital		1,843,911			1,848,068
Accumulated deficit		(2,007,272	)		(2,059,214	)
Stock receivable		—			(20,038	)
Treasury stock, at cost (9 shares as of December 31, 2024 and March 31, 2024)		(3,444	)		(3,444	)
Accumulated other comprehensive income		161			276
Noncontrolling interests		180,896			42,231
Total equity (deficit)		14,260			(192,118	)
Total liabilities, temporary equity, and equity (deficit)	$	400,012		$	368,501

(1) Number has been adjusted to reflect 1-for-80 reverse stock split on April 18, 2024. See Note 1 – Summary of Significant Accounting Policies – Reverse Stock Split to the consolidated financial statements included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on July 9, 2024, for additional information.

Table 8: Non-GAAP Reconciliations

(in thousands)	Three Months Ended December 31, 2024
	Ben Liquidity			Ben Custody		Customer ExAlt Trusts			Corporate/ Other			Consolidating Eliminations			Consolidated
Total revenues	$	11,297		$	5,410	$	4,317		$	(86	)	$	(16,519	)	$	4,419
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—		8			—			—			8
Adjusted revenues	$	11,297		$	5,410	$	4,325		$	(86	)	$	(16,519	)	$	4,427

Operating income (loss)	$	(2,853	)	$	3,507	$	(35,544	)	$	(8,935	)	$	34,312		$	(9,513	)
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—		8			—			—			8
Intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust		—			1,340		—			—			(1,340	)		—
Goodwill impairment		—			—		—			—			—			—
Release of loss contingency related to arbitration award		—			—		—			—			—			—
Share-based compensation expense		—			—		—			804			—			804
Legal and professional fees⁽¹⁾		—			—		—			1,400			—			1,400
Adjusted operating income (loss)	$	(2,853	)	$	4,847	$	(35,536	)	$	(6,731	)	$	32,972		$	(7,301	)

⁽¹⁾ Includes legal and professional fees related lawsuits.

(in thousands)	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts			Corporate/ Other			Consolidating Eliminations			Consolidated
Total revenues	$	11,978	$	5,386	$	9,112		$	(738	)	$	(17,177	)	$	8,561
Mark to market adjustment on interests in the GWG Wind Down Trust		—		—		173			—			—			173
Adjusted revenues	$	11,978	$	5,386	$	9,285		$	(738	)	$	(17,177	)	$	8,734

Operating income (loss)	$	2,905	$	4,329	$	(31,549	)	$	(16,426	)	$	27,026		$	(13,715	)
Mark to market adjustment on interests in the GWG Wind Down Trust		—		—		173			—			—			173
Intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust		—		—		—			—			—			—
Goodwill impairment		—		298		—			—			—			298
Release of loss contingency related to arbitration award		—		—		—			—			—			—
Share-based compensation expense		—		—		—			3,364			—			3,364
Legal and professional fees⁽¹⁾		—		—		—			3,269			—			3,269
Adjusted operating income (loss)	$	2,905	$	4,627	$	(31,376	)	$	(9,793	)	$	27,026		$	(6,611	)

⁽¹⁾ Includes legal and professional fees related to lawsuits.

(in thousands)	Three Months Ended December 31, 2023
	Ben Liquidity			Ben Custody			Customer ExAlt Trusts			Corporate/ Other			Consolidating Eliminations			Consolidated
Total revenues	$	11,275		$	5,897		$	(11,182	)	$	789		$	(17,014	)	$	(10,235	)
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—			18,506			185			—			18,691
Adjusted revenues	$	11,275		$	5,897		$	7,324		$	974		$	(17,014	)	$	8,456

Operating income (loss)	$	(606,405	)	$	(267,995	)	$	(49,363	)	$	(20,217	)	$	28,029		$	(915,951	)
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—			18,506			185			—			18,691
Intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust		4,262			—			—			—			(4,262	)		—
Goodwill impairment		604,668			272,830			—			5,725			—			883,223
Loss on arbitration		—			—			—			—			—			—
Share-based compensation expense		—			—			—			2,026			—			2,026
Legal and professional fees⁽¹⁾		—			—			—			327			—			327
Adjusted operating income (loss)	$	2,525		$	4,835		$	(30,857	)	$	(11,954	)	$	23,767		$	(11,684	)

⁽¹⁾ Includes legal and professional fees related to lawsuits.

(in thousands)	Nine Months Ended December 31, 2024
	Ben Liquidity			Ben Custody		Customer ExAlt Trusts			Corporate/ Other			Consolidating Eliminations			Consolidated
Total revenues	$	34,124		$	16,178	$	23,282		$	(820	)	$	(49,738	)	$	23,026
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—		539			7			—			546
Adjusted revenues	$	34,124		$	16,178	$	23,821		$	(813	)	$	(49,738	)	$	23,572

Operating income (loss)	$	(462	)	$	9,123	$	(96,722	)	$	18,730		$	90,441		$	21,110
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—		539			7			—			546
Intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust		5			1,340		—			—			(1,345	)		—
Goodwill impairment		—			3,427		—			265			—			3,692
Release of loss contingency related to arbitration award		—			—		—			(54,973	)		—			(54,973	)
Share-based compensation expense		—			—		—			5,162			—			5,162
Legal and professional fees⁽¹⁾		—			—		—			5,825			—			5,825
Adjusted operating income (loss)	$	(457	)	$	13,890	$	(96,183	)	$	(24,984	)	$	89,096		$	(18,638	)

⁽¹⁾ Includes legal and professional fees related to lawsuits.

(in thousands)	Nine Months Ended December 31, 2023
	Ben Liquidity			Ben Custody			Customer ExAlt Trusts			Corporate/ Other			Consolidating Eliminations			Consolidated
Total revenues	$	36,303		$	18,961		$	(54,363	)	$	(1,549	)	$	(55,091	)	$	(55,739	)
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—			62,873			1,344			—			64,217
Adjusted revenues	$	36,303		$	18,961		$	8,510		$	(205	)	$	(55,091	)	$	8,478

Operating income (loss)	$	(1,781,521	)	$	(538,840	)	$	(166,051	)	$	(94,532	)	$	127,259		$	(2,453,685	)
Mark to market adjustment on interests in the GWG Wind Down Trust		—			—			62,873			1,344			—			64,217
Intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust		43,872			—			—			—			(43,872	)		—
Goodwill impairment		1,725,880			554,607			—			5,725			—			2,286,212
Loss on arbitration		—			—			—			—			—			—
Share-based compensation expense		—			—			—			37,530			—			37,530
Legal and professional fees⁽¹⁾		—			—			—			8,352			—			8,352
Adjusted operating income (loss)	$	(11,769	)	$	15,767		$	(103,178	)	$	(41,581	)	$	83,387		$	(57,374	)

⁽¹⁾ Includes legal and professional fees related to GWG Holdings bankruptcy, lawsuits, public relations, and employee matters.

	Three Months Ended December 31,					Nine Months Ended December 31,
		2024		2023			2024			2023
Operating Expenses Non GAAP Reconciliation
Operating expenses	$	13,932	$	905,716		$	1,916		$	2,397,946
Plus: Release of loss contingency related to arbitration award		—		—			54,973			—
Less: Goodwill impairment		—		(883,223	)		(3,692	)		(2,286,212	)
Operating expenses, excluding goodwill impairment and release of loss contingency related to arbitration award	$	13,932	$	22,493		$	53,197		$	111,734

The below table reconciles the non-GAAP financial measures of tangible book value and tangible book value to Ben’s public stockholders to the most comparable GAAP financial measures as of December 31, 2024 on an actual basis and pro forma assuming the transactions described in our Form 8-K filed on December 23, 2024 occurred on December 31, 2024.

	Actual and Pro Forma ^(a)				Actual			Pro forma ^(a)
Tangible Book Value				Tangible book value attributable to Ben’s public company stockholders
Total equity (deficit)	$	14,260		Tangible book value	$	91,772		$	91,772
Less: Goodwill and intangible assets		(13,014	)	Less: Tangible book value attributable to Beneficient Holdings noncontrolling interest holders		(91,772	)		(82,595	)
Plus: Total temporary equity		90,526		Tangible book value attributable to Ben’s public company stockholders		—			9,177
Tangible book value	$	91,772

^(a)Assumes the transactions described in our Form 8-K filed on December 23, 2024 closed on December 31, 2024 including that the BCH limited partnership agreement was amended to provide that Beneficient, as the indirect holder of the Class A Units and certain Designated Class S Ordinary Units of BCH, would receive in the event of a liquidation of BCH (i) 10% of the first $100 million of distributions of BCH following the satisfaction of the debts and liabilities of BCH on a consolidated basis and (ii) 33.3333% of the net asset value of the added alternative assets of up to $5 billion in connection with ExAlt Plan liquidity and primary capital transactions entered after December 22, 2024.

Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben’s Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben’s Equity Holders are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. Tangible Book Value and Tangible Book Value to Ben’s Public Company Stockholders are also non-GAAP financial measures. We present these non-GAAP financial measures because we believe it help investors in analyzing the intrinsic value of the Company, including the proforma impact of the contemplated transactions more fully described in our Form 8-K filed on December 23, 2024. The non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S. GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate such items in the same way.

We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and during the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust. Adjusted Segment Revenues attributable to Ben’s Equity Holders is the same as “adjusted revenues” related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient’s subsidiary, BCH.

Adjusted operating income (loss) represents GAAP operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities that were acquired in the Collateral Swap which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, a defunct product offering, and certain employee matters, including fees & loss contingency accruals (releases) incurred in arbitration with a former director. Adjusted Segment Operating Income (Loss) attributable to Ben’s Equity Holders is the same as “adjusted operating income (loss)” related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient’s subsidiary, BCH.

Tangible book value is defined as the sum of total equity (deficit) less goodwill and intangible assets plus total temporary equity. Tangible book value to Ben’s public company stockholders is defined at tangible book value adjusted for the portion of tangible book value that is attributable to Ben’s public company stockholders, which is calculated as tangible book value adjusted for (i) 10% of the first $100 million of distributions of BCH following the satisfaction of the debts and liabilities of BCH on a consolidated basis and (ii) 33.3333% of the net asset value of the added alternative assets of up to $5 billion in connection with ExAlt Plan liquidity and primary capital transactions entered after December 22, 2024.

These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with U.S. GAAP. They are unaudited and should not be considered an alternative to, or more meaningful than, GAAP revenues or GAAP operating income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in adjusted operating income (loss) or adjusted segment operating income (loss) attributable to Ben’s Equity Holders include capital expenditures, interest payments, debt principal repayments, and other expenses, which can be significant. As a result, adjusted operating income (loss) and/or adjusted segment operating income (loss) attributable to Ben’s Equity Holders should not be considered as a measure of our liquidity.

Because of these limitations, Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben’s Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben’s Equity Holders, Tangible Book Value and Tangible Book Value to Ben’s Public Company Stockholders should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben’s Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben’s Equity Holders, Tangible Book Value and Tangible Book Value to Ben’s Public Company Stockholders on a supplemental basis. You should review the reconciliation of these non-GAAP financial measures set forth above and not rely on any single financial measure to evaluate our business.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/09d463d7-9883-4bbf-8a05-3c24ea42846e

The MIL Network –

February 14, 2025

MIL-OSI: TransUnion Announces Fourth Quarter and Full-Year 2024 Results and Refreshed Capital Allocation Framework

Source: GlobeNewswire (MIL-OSI)

Exceeded fourth quarter 2024 financial guidance for revenue with 9 percent growth driven by U.S. Markets Financial Services and Insurance verticals, and our International segment
Delivered strong financial results in 2024 while executing on technology modernization and delivering ~$85 million of transformation program savings
Announcing new freemium direct-to-consumer credit education and monitoring offering, enabled in collaboration with Credit Sesame
Providing 2025 financial guidance, we expect to deliver 3.5 to 5 percent revenue growth (4.5 to 6 percent organic constant currency)
Refreshing capital allocation framework – lowering target Leverage Ratio to under 2.5x, raising quarterly dividend to $0.115 and announcing new $500 million share repurchase program authorization

CHICAGO, Feb. 13, 2025 (GLOBE NEWSWIRE) — TransUnion (NYSE: TRU) (the “Company”) today announced financial results for the quarter and full-year ended December 31, 2024.

Fourth Quarter 2024 Results

Revenue:

Total revenue for the quarter was $1,037 million, an increase of 9 percent (9 percent on an organic constant currency basis), compared with the fourth quarter of 2023.

Earnings:

Net income attributable to TransUnion was $66 million for the quarter, compared with $6 million for the fourth quarter of 2023. Diluted earnings per share was $0.34, compared with $0.03 in the fourth quarter of 2023. Net income attributable to TransUnion margin was 6 percent, compared with 1 percent in the fourth quarter of 2023.
Adjusted Net Income was $192 million for the quarter, compared with $156 million for the fourth quarter of 2023. Adjusted Diluted Earnings per Share for the quarter was $0.97, compared with $0.80 in the fourth quarter of 2023.
Adjusted EBITDA was $378 million for the quarter, an increase of 16 percent (16 percent on a constant currency basis) compared with the fourth quarter of 2023. Adjusted EBITDA margin was 36 percent, compared with 34 percent in the fourth quarter of 2023.

“TransUnion finished the year with strong revenue growth and margin expansion,” said Chris Cartwright, President and CEO. “U.S. Markets grew by high single-digits in the fourth quarter against subdued but stable market conditions, driven by mortgage pricing, improving non-mortgage Financial Services growth and Insurance strength. Our International segment delivered double-digit growth led by India, Asia Pacific and Latin America.”

“In 2025, we expect to deliver 4.5 to 6 percent organic constant currency revenue growth with modest margin expansion, assuming a continuation of current subdued conditions. We remain highly focused on driving strong financial results while executing on our transformation initiatives – refining and strengthening our global operating model; completing U.S. and India technology modernization; and accelerating innovation and growth across our solution suites. We took a key step in reinvigorating Consumer Interactive growth with today’s announcement of our new freemium credit education and monitoring offering, enabled in collaboration with Credit Sesame.”

“Following strong de-levering throughout 2024, we are providing a refreshed capital allocation framework. We are lowering our Leverage Ratio target to under 2.5x, raising our quarterly dividend to $0.115, and announcing a new $500 million share repurchase program. Given the strength of our portfolio and our ongoing transformation, the bar for M&A is high, and we are not seeking large-scale acquisitions. In 2025, we plan to deploy cash for a combination of further debt prepayment, share repurchases and partially funding of the recently announced Trans Union de Mexico acquisition.”

Fourth Quarter 2024 Segment Results

U.S. Markets:

U.S. Markets revenue was $792 million, an increase of 8 percent compared with the fourth quarter of 2023.

Financial Services revenue was $356 million, an increase of 21 percent compared with the fourth quarter of 2023.
Emerging Verticals revenue was $302 million, an increase of 4 percent compared with the fourth quarter of 2023.
Consumer Interactive revenue was $134 million, a decrease of 11 percent compared with the fourth quarter of 2023.

Adjusted EBITDA was $312 million, an increase of 16 percent compared to the fourth quarter of 2023.

International:

International revenue was $245 million, an increase of 11 percent (12 percent on a constant currency basis) compared with the fourth quarter of 2023.

Canada revenue was $39 million, an increase of 5 percent (8 percent on a constant currency basis) compared with the fourth quarter of 2023.
Latin America revenue was $34 million, an increase of 7 percent (15 percent on a constant currency basis) compared with the fourth quarter of 2023.
United Kingdom revenue was $59 million, an increase of 6 percent (3 percent on a constant currency basis) compared with the fourth quarter of 2023.
Africa revenue was $18 million, an increase of 13 percent (8 percent on a constant currency basis) compared with the fourth quarter of 2023.
India revenue was $67 million, an increase of 17 percent (18 percent on a constant currency basis) compared with the fourth quarter of 2023.
Asia Pacific revenue was $29 million, an increase of 19 percent (20 percent on a constant currency basis) compared with the fourth quarter of 2023.

Adjusted EBITDA was $107 million, an increase of 11 percent (13 percent on a constant currency basis) compared with the fourth quarter of 2023.

Full Year 2024 Results

Revenue:

Total revenue for the year was $4,184 million, an increase of 9 percent (9 percent on a constant currency basis) compared with 2023.

Earnings:

Net income (loss) attributable to TransUnion was $284 million for the year, compared with $(206) million in 2023. Diluted earnings (loss) per share was $1.45, compared with $(1.07) in 2023. Net income (loss) attributable to TransUnion margin was 7 percent, compared with (5) percent in 2023. Our net income attributable to TransUnion, diluted earnings per share and net income attributable to TransUnion margin include expenses associated with our transformation plan. Our 2023 net income attributable to TransUnion, diluted earnings per share and net income attributable to TransUnion margin include a goodwill impairment recognized in the third quarter of 2023.
Adjusted Net Income was $769 million for the year, compared with $655 million in 2023. Adjusted Diluted Earnings per Share was $3.91, compared with $3.37 in 2023.
Adjusted EBITDA was $1,506 million for the year, compared to $1,344 million in 2023, an increase of 12 percent (an increase of 12 percent on a constant currency basis) compared with 2023. Adjusted EBITDA margin was 36 percent, compared with 35 percent in 2023.

Liquidity and Capital Resources

Cash and cash equivalents were $679 million at December 31, 2024 and $476 million at December 31, 2023. For the twelve months ended December 31, 2024, we prepaid $150.0 million of our Senior Secured Term Loans, funded from our cash on hand.

For the year ended December 31, 2024, cash provided by operating activities was $832 million compared with $645 million in 2023. For 2024, the increase in cash provided by operating activities was primarily due to improved operating performance and lower net interest expense, partially offset by employee separation payments and a penalty paid for the early termination of a facility lease, both of which were in connection with our operating model optimization program. For the year ended December 31, 2024, cash used in investing activities was $307 million for 2024 compared with $319 million in 2023. The decrease in cash used in investing activities was primarily due to lower investments in nonconsolidated affiliates. Capital expenditures as a percent of revenue represented 8% for 2024 and 2023. For the year ended December 31, 2024, cash used in financing activities was $309 million compared with $439 million in 2023. The decrease in cash used in financing activities was due primarily to a decrease in debt repayments.

The Company’s Board of Directors has authorized the repurchase of up to $500 million of the Company’s common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan, hybrid open market repurchases or an accelerated share repurchase transaction, at prices that the Company deems appropriate and subject to market conditions, applicable law and other factors deemed relevant in the Company’s sole discretion. The share repurchase authorization does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and may be suspended or discontinued at any time. This new share repurchase authorization replaces all previous authorizations.

The Company’s Board of Directors has declared a cash dividend of $0.115 per share for the fourth quarter of 2024. The dividend will be payable on March 14, 2025, to shareholders of record on February 27, 2025.

First Quarter and Full Year 2025 Outlook

Our guidance is based on a number of assumptions that are subject to change, many of which are outside of the control of the Company, including general macroeconomic conditions, interest rates and inflation. There are numerous evolving factors that we may not be able to accurately predict. There can be no assurance that the Company will achieve the results expressed by this guidance.

	Three Months Ended March 31, 2025						Year Ended December 31, 2025
(in millions, except per share data)	Low			High			Low			High
Revenue, as reported	$	1,060		$	1,074		$	4,333		$	4,393
Revenue growth¹:
As reported		4	%		5	%		3.5	%		5	%
Constant currency^{1, 2}		5	%		6	%		4.5	%		6	%
Organic constant currency^{1, 3}		5	%		6	%		4.5	%		6	%

Net income attributable to TransUnion	$	71		$	77		$	335		$	362
Net income attributable to TransUnion growth		9	%		18	%		18	%		27	%
Net income attributable to TransUnion margin		6.7	%		7.1	%		7.7	%		8.3	%

Diluted Earnings per Share	$	0.36		$	0.39		$	1.68		$	1.82
Diluted Earnings per Share growth		7	%		16	%		16	%		26	%

Adjusted EBITDA, as reported⁵	$	376		$	384		$	1,549		$	1,590
Adjusted EBITDA growth, as reported⁴		5	%		7	%		3	%		6	%
Adjusted EBITDA margin		35.5	%		35.8	%		35.8	%		36.2	%

Adjusted Diluted Earnings per Share⁵	$	0.96		$	0.99		$	3.93		$	4.08
Adjusted Diluted Earnings per Share growth		4	%		8	%		1	%		4	%

Additional revenue growth assumptions:

The impact of changing foreign currency exchange rates is expected to be approximately 1% of headwind for Q1 2025 and FY 2025.
There is no impact from recently announced acquisitions for Q1 2025 and FY 2025.
The impact of mortgage is expected to be approximately 2 points of benefit for Q1 2025 and approximately 2 points of benefit for FY 2025.
Constant currency growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
Organic constant currency growth rates are constant currency growth excluding inorganic growth. Inorganic growth represents growth attributable to the first twelve months of activity for recent business acquisitions. There is no impact from recent business acquisitions in Q1 2025 and FY 2025.

Additional Adjusted EBITDA assumptions:

The impact of changing foreign currency exchange rates is expected to have approximately 2% of headwind for Q1 2025 and approximately 1% of headwind for FY 2025.
For a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures, refer to Schedule 7 of this Earnings Release.

Earnings Webcast Details

In conjunction with this release, TransUnion will host a conference call and webcast today at 8:30 a.m. Central Time to discuss the business results for the quarter and certain forward-looking information. This session and the accompanying presentation materials may be accessed at www.transunion.com/tru. A replay of the call will also be available at this website following the conclusion of the call.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

http://www.transunion.com/business

Availability of Information on TransUnion’s Website

Investors and others should note that TransUnion routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the TransUnion Investor Relations website. While not all of the information that the Company posts to the TransUnion Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in TransUnion to review the information that it shares on www.transunion.com/tru.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negatives of these words and other similar expressions.

Factors that could cause actual results to differ materially from those described in the forward-looking statements, or that could materially affect our financial results or such forward-looking statements include:

macroeconomic effects and changes in market conditions, including the impact of inflation, risk of recession, and industry trends and adverse developments in the debt, consumer credit and financial services markets, including the impact on the carrying value of our assets in all of the markets where we operate;
our ability to provide competitive services and prices;
our ability to retain or renew existing agreements with large or long-term customers;
our ability to maintain the security and integrity of our data;
our ability to deliver services timely without interruption;
our ability to maintain our access to data sources;
government regulation and changes in the regulatory environment;
litigation or regulatory proceedings;
our approach to the use of artificial intelligence;
our ability to effectively manage our costs;
our efforts to execute our transformation plan and achieve the anticipated benefits and savings;
our ability to maintain effective internal control over financial reporting or disclosure controls and procedures;
economic and political stability in the United States and risks associated with the international markets where we operate;
our ability to effectively develop and maintain strategic alliances and joint ventures;
our ability to timely develop new services and the market’s willingness to adopt our new services;
our ability to manage and expand our operations and keep up with rapidly changing technologies;
our ability to acquire businesses, successfully secure financing for our acquisitions, timely consummate our acquisitions, successfully integrate the operations of our acquisitions, control the costs of integrating our acquisitions and realize the intended benefits of such acquisitions;
our ability to protect and enforce our intellectual property, trade secrets and other forms of unpatented intellectual property;
our ability to defend our intellectual property from infringement claims by third parties;
the ability of our outside service providers and key vendors to fulfill their obligations to us;
further consolidation in our end-customer markets;
the increased availability of free or inexpensive consumer information;
losses against which we do not insure;
our ability to make timely payments of principal and interest on our indebtedness;
our ability to satisfy covenants in the agreements governing our indebtedness;
our ability to maintain our liquidity;
stock price volatility;
our dividend payments;
share repurchase plans;
dividend rate;
our reliance on key management personnel; and
changes in tax laws or adverse outcomes resulting from examination of our tax returns.

There may be other factors, many of which are beyond our control, that may cause our actual results to differ materially from the forward-looking statements, including factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, to be filed with the SEC in February 2025, and our Annual Report on Form 10-K for the year ended December 31, 2023, as well as our quarterly reports for the quarters ended September 30, 2024, June 30, 2024 and March 31, 2024, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K filed with the Securities and Exchange Commission. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.

The forward-looking statements contained in this earnings release speak only as of the date of this earnings release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this earnings release.

For More Information

E-mail: Investor.Relations@transunion.com

Telephone: 312.985.2860

TRANSUNION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(in millions, except per share data)

	December 31, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	679.5		$	476.2
Trade accounts receivable, net of allowance of $19.9 and $16.4		798.9			723.0
Other current assets		323.4			275.9
Total current assets		1,801.8			1,475.1
Property, plant and equipment, net of accumulated depreciation and amortization of $506.3 and $804.4		203.5			199.3
Goodwill		5,144.3			5,176.0
Other intangibles, net of accumulated amortization of $2,294.5 and $2,719.8		3,257.5			3,515.3
Other assets		577.7			739.4
Total assets	$	10,984.8		$	11,105.1
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable	$	294.6		$	251.3
Current portion of long-term debt		70.6			89.6
Other current liabilities		694.4			661.8
Total current liabilities		1,059.6			1,002.7
Long-term debt		5,076.6			5,250.8
Deferred taxes		415.3			592.9
Other liabilities		114.5			153.2
Total liabilities		6,666.0			6,999.6
Stockholders’ equity:
Preferred stock, $0.01 par value; 100.0 million shares authorized; none issued or outstanding as of December 31, 2024 and 2023		—			—
Common stock, $0.01 par value; 1.0 billion shares authorized at December 31, 2024 and December 31, 2023; 201.5 million and 200.0 million shares issued as of December 31, 2024 and December 31, 2023, respectively; and 194.9 million and 193.8 million shares outstanding as of December 31, 2024 and December 31, 2023, respectively		2.0			2.0
Additional paid-in capital		2,558.9			2,412.9
Treasury stock at cost; 6.6 million and 6.2 million shares at December 31, 2024 and December 31, 2023, respectively		(334.6	)		(302.9	)
Retained earnings		2,357.9			2,157.1
Accumulated other comprehensive loss		(367.2	)		(260.9	)
Total TransUnion stockholders’ equity		4,217.0			4,008.2
Noncontrolling interests		101.8			97.3
Total stockholders’ equity		4,318.8			4,105.5
Total liabilities and stockholders’ equity	$	10,984.8		$	11,105.1

TRANSUNION AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Revenue	$	1,036.8		$	954.3		$	4,183.8		$	3,831.2
Operating expenses
Cost of services (exclusive of depreciation and amortization below)		411.6			380.6			1,673.3			1,517.3
Selling, general and administrative		317.2			303.9			1,239.3			1,171.6
Depreciation and amortization		137.3			133.3			537.8			524.4
Goodwill impairment		—			—			—			414.0
Restructuring		—			75.3			66.8			75.3
Total operating expenses		866.0			893.0			3,517.1			3,702.7
Operating income		170.8			61.3			666.7			128.5
Non-operating income and (expense)
Interest expense		(62.0	)		(71.0	)		(265.2	)		(288.2	)
Interest income		8.6			5.7			28.5			20.7
Earnings from equity method investments		4.2			4.6			18.3			16.3
Other income and (expense), net		(20.9	)		(6.4	)		(47.1	)		(22.7	)
Total non-operating income and (expense)		(70.1	)		(67.1	)		(265.5	)		(273.9	)
Income (loss) from continuing operations before income taxes		100.6			(5.8	)		401.1			(145.3	)
Provision for income taxes		(29.9	)		15.4			(98.8	)		(44.7	)
Income (loss) from continuing operations		70.7			9.5			302.3			(190.1	)
Discontinued operations, net of tax		—			—			—			(0.7	)
Net income (loss)		70.7			9.5			302.3			(190.8	)
Less: net income attributable to noncontrolling interests		(4.5	)		(3.5	)		(18.0	)		(15.4	)
Net income (loss) attributable to TransUnion	$	66.2		$	6.1		$	284.4		$	(206.2	)

Income (loss) from continuing operations	$	70.7		$	9.5		$	302.3		$	(190.1	)
Less: income from continuing operations attributable to noncontrolling interests		(4.5	)		(3.5	)		(18.0	)		(15.4	)
Income (loss) from continuing operations attributable to TransUnion		66.2			6.0			284.4			(205.4	)
Discontinued operations, net of tax		—			—			—			(0.7	)
Net income (loss) attributable to TransUnion	$	66.2		$	6.1		$	284.4		$	(206.2	)

Basic earnings (loss) per common share from:
Income (loss) from continuing operations attributable to TransUnion	$	0.34		$	0.03		$	1.46		$	(1.06	)
Discontinued operations, net of tax		—			—			—			—
Net income (loss) attributable to TransUnion	$	0.34		$	0.03		$	1.46		$	(1.07	)
Diluted earnings (loss) per common share from:
Income (loss) from continuing operations attributable to TransUnion	$	0.34		$	0.03		$	1.45		$	(1.06	)
Discontinued operations, net of tax		—			—			—			—
Net income (loss) attributable to TransUnion	$	0.34		$	0.03		$	1.45		$	(1.07	)

Weighted-average shares outstanding:
Basic		194.9			193.7			194.4			193.4
Diluted		197.3			194.3			196.7			193.4

As a result of displaying amounts in millions, rounding differences may exist in the table above.

TRANSUNION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(in millions)

	Years Ended December 31,
		2024			2023
Cash flows from operating activities:
Net income (loss)	$	302.3		$	(190.8	)
Less: Discontinued operations, net of tax		—			(0.7	)
Income (loss) from continuing operations		302.3			(190.1	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		537.8			524.4
Goodwill impairment		—			414.0
Loss on repayment of loans		7.4			7.6
Deferred taxes		(157.3	)		(162.7	)
Stock-based compensation		121.2			100.3
Loss on early termination of lease		40.5			—
Other		34.3			26.0
Changes in assets and liabilities:
Trade accounts receivable		(105.6	)		(135.1	)
Other current and long-term assets		46.0			(12.7	)
Trade accounts payable		39.2			(6.5	)
Other current and long-term liabilities		(33.3	)		80.4
Cash provided by operating activities of continuing operations		832.5			645.6
Cash used in operating activities of discontinued operations		—			(0.2	)
Cash provided by operating activities		832.5			645.4
Cash flows from investing activities:
Capital expenditures		(315.8	)		(310.7	)
Proceeds from sale/maturity of other investments		0.2			82.3
Purchases of other investments		(0.2	)		(53.5	)
Investments in nonconsolidated affiliates		(5.9	)		(36.9	)
Proceeds from the sale of investments in nonconsolidated affiliates		7.7			—
(Payments) proceeds related to disposal of discontinued operations		—			(0.5	)
Other		6.6			0.4
Cash used in investing activities		(307.4	)		(318.9	)
Cash flows from financing activities:
Proceeds from Term Loans		1,793.1			655.8
Repayments of Term Loans		(1,786.1	)		(347.7	)
Repayments of debt		(198.9	)		(650.0	)
Debt financing fees		(16.5	)		(3.3	)
Proceeds from issuance of common stock and exercise of stock options		24.9			23.1
Dividends to shareholders		(82.7	)		(81.8	)
Employee taxes paid on restricted stock units recorded as treasury stock		(31.7	)		(18.4	)
Distributions to noncontrolling interests		(10.8	)		(16.5	)
Cash used in financing activities		(308.7	)		(438.8	)
Effect of exchange rate changes on cash and cash equivalents		(13.1	)		3.2
Net change in cash and cash equivalents		203.3			(109.1	)
Cash and cash equivalents, beginning of period		476.2			585.3
Cash and cash equivalents, end of period	$	679.5		$	476.2

As a result of displaying amounts in millions, rounding differences may exist in the table above.

TRANSUNION AND SUBSIDIARIES
Non-GAAP Financial Measures

We present Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted Provision for Income Taxes, Adjusted Effective Tax Rate and Leverage Ratio for all periods presented. These are important financial measures for the Company but are not financial measures as defined by GAAP. These financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative measures of GAAP. Other companies in our industry may define or calculate these measures differently than we do, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, including operating income, operating margin, effective tax rate, net income (loss) attributable to the Company, diluted earnings per share or cash provided by operating activities. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are presented in the tables below.

We present Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted Provision for Income Taxes and Adjusted Effective Tax Rate as supplemental measures of our operating performance because these measures eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. These are measures frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours.

Our board of directors and executive management team use Adjusted EBITDA as an incentive compensation measure for most eligible employees and Adjusted Diluted Earnings per Share as an incentive compensation measure for certain of our senior executives.

Under the credit agreement governing our Senior Secured Credit Facility, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is tied to our Leverage Ratio which is partially based on Adjusted EBITDA. Investors also use our Leverage Ratio to assess our ability to service our debt and make other capital allocation decisions.

Consolidated Adjusted EBITDA

Management has excluded the following items from net income (loss) attributable to TransUnion in order to calculate Adjusted EBITDA for the periods presented:

Discontinued operations, net of tax, as reported on our Consolidated Statements of Operations. We exclude discontinued operations, net of tax because we believe it does not reflect the underlying and ongoing performance of our business operations.
Net interest expense, which is the sum of interest expense and interest income as reported on our Consolidated Statements of Operations.
Provision for income taxes, as reported on our Consolidated Statements of Operations.
Depreciation and amortization, as reported on our Consolidated Statements of Operations.
Goodwill impairment, as reported on our Consolidated Statements of Operations. We exclude goodwill impairment because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations during that period and such expense can vary significantly between periods.
Stock-based compensation is used as an incentive to engage and retain our employees. It is predominantly a non-cash expense. We exclude stock-based compensation because it may not correlate to the underlying performance of our business operations during the period since it is measured at the grant date fair value and it is subject to variability as a result of performance conditions and timing of grants. These expenses are reported within cost of services and selling, general and administrative on our Consolidated Statements of Operations.
Operating model optimization program represents employee separation costs, facility lease exit costs and other business process optimization expenses incurred in connection with the transformation plan discussed further in “Results of Operations – Factors Affecting Our Results of Operations.” We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business. Further, these costs will vary and may not be comparable during the transformation initiative as we progress toward an optimized operating model. These costs are reported primarily in restructuring and selling, general and administrative on our Consolidated Statements of Operations.
Accelerated technology investment includes Project Rise and the final phase of our technology investment announced in November 2023. Project Rise was announced in February 2020 and was originally expected to be completed in 2022. Following our acquisition of Neustar in December 2021, we recognized the opportunity to take advantage of Neustar’s capabilities to enhance and complement our cloud-based technology already under development as part of Project Rise. As a result, we extended Project Rise’s timeline to 2024 and increased the total estimated cost to approximately $240 million. In November 2023, we announced our plans to further leverage Neustar’s technology to standardize and streamline our product delivery platforms and to build a single global platform for fulfillment of our product lines. The additional investment is expected to be approximately $90 million during 2024 and 2025 and represents the final phase of the technology investment in our global technology infrastructure and core customer applications. We expect that the accelerated technology investment will fundamentally transform our technology infrastructure by implementing a global cloud-based approach to streamline product development, increase the efficiency of ongoing operations and maintenance and enable a continuous improvement approach to avoid the need for another major technology overhaul in the foreseeable future. The unique effort to build a secure, reliable and performant hybrid cloud infrastructure requires us to dedicate separate resources in order to develop the new cloud-based infrastructure in parallel with our current on-premise environment by maintaining our existing technology team to ensure no disruptions to our customers. The costs associated with the accelerated technology investment are incremental and redundant costs that will not recur after the program has been completed and are not representative of our underlying operating performance. Therefore, we believe that excluding these costs from our non-GAAP measures provides a better reflection of our ongoing cost structure. These costs are primarily reported in cost of services and therefore do not include amounts that are capitalized as internally developed software.
Mergers and acquisitions, divestitures and business optimization expenses are non-recurring expenses associated with specific transactions (exploratory or executed) and consist of (i) transaction and integration costs, (ii) post-acquisition adjustments to contingent consideration or to assets and liabilities that occurred after the acquisition measurement period, (iii) fair value and impairment adjustments related to investments and call and put options, (iv) transition services agreement income, and (v) a loss on disposal of a business. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business operations and vary depending upon the timing of such transactions. These expenses are reported in costs of services, selling, general and administrative and other income and (expenses), net, on our Consolidated Statements of Operations.
Net other adjustments principally relate to: (i) deferred loan fee expense from debt prepayments and refinancing, (ii) currency remeasurement on foreign operations, (iii) other debt financing expenses consisting primarily of revolving credit facility deferred financing fee amortization and commitment fees and expenses associated with ratings agencies and interest rate hedging, (iv) legal and regulatory expenses, net, and (v) other non-operating (income) expense. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business and create variability between periods based on the nature and timing of the expense or income. These costs are reported in selling, general and administrative and in non-operating income and expense, net as applicable based on their nature on our Consolidated Statements of Operations.

Consolidated Adjusted EBITDA Margin

Management defines Consolidated Adjusted EBITDA Margin as Consolidated Adjusted EBITDA divided by total revenue as reported.

Adjusted Net Income

Management has excluded the following items from net income (loss) attributable to TransUnion in order to calculate Adjusted Net Income for the periods presented:

Discontinued operations, net of tax (see Consolidated Adjusted EBITDA above)
Goodwill impairment (see Consolidated Adjusted EBITDA above)
Amortization of certain intangible assets presents non-cash amortization expenses related to assets that arose from our 2012 change in control transaction and business combinations occurring after our 2012 change in control. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business operations and vary dependent upon the timing of the transactions that give rise to these assets. Amortization of intangible assets is included in depreciation and amortization on our Consolidated Statements of Operations.
Stock-based compensation (see Consolidated Adjusted EBITDA above)
Operating model optimization program (see Consolidated Adjusted EBITDA above)
Accelerated technology investment (see Consolidated Adjusted EBITDA above)
Mergers and acquisitions, divestiture and business optimization (see Consolidated Adjusted EBITDA above)
Net other is consistent with the definition in Consolidated Adjusted EBITDA above except that other debt financing expenses and certain other miscellaneous income and expense that are included in the adjustment to calculate Adjusted EBITDA are excluded in the adjustment made to calculate Adjusted Net Income.
Total adjustments for income taxes relates to the cumulative adjustments discussed below for Adjusted Provision for Income Taxes. This adjustment is made for the reasons indicated in Adjusted Provision for Income Taxes below. Adjustments related to the provision for income taxes are included in the line item by this name on our consolidated statement of operations.

Adjusted Diluted Earnings Per Share

Management defines Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted-average diluted shares outstanding.

Adjusted Provision for Income Taxes

Management has excluded the following items from our provision for income taxes for the periods presented:

Tax effect of above adjustments represents the income tax effect of the adjustments related to Adjusted Net Income described above. The tax rate applied to each adjustment is based on the nature of each line item. We include the tax effect of the adjustments made to Adjusted Net Income to provide a comprehensive view of our adjusted net income.
Excess tax expense (benefit) for stock-based compensation is the permanent difference between expenses recognized for book purposes and expenses recognized for tax purposes, in each case related to stock-based compensation expense. We exclude this amount from the Adjusted Provision for Income Taxes in order to be consistent with the exclusion of stock-based compensation from the calculation of Adjusted Net Income.
Other principally relates to (i) deferred tax adjustments, including rate changes, (ii) infrequent or unusual valuation allowance adjustments, (iii) return to provision, tax authority audit adjustments, and reserves related to prior periods, and (iv) other non-recurring items. We exclude these items because they create variability that impacts comparability between periods.

Adjusted Effective Tax Rate

Management defines Adjusted Effective Tax Rate as Adjusted Provision for Income Taxes divided by Adjusted income from continuing operations before income taxes. We calculate adjusted income from continuing operations before income taxes by excluding the pre-tax adjustments in the calculation of Adjusted Net Income discussed above and noncontrolling interest related to these pre-tax adjustments from (loss) income from continuing operations before income taxes.

Leverage Ratio

Management defines Leverage Ratio as net debt divided by Consolidated Adjusted EBITDA for the most recent twelve-month period including twelve months of Adjusted EBITDA from significant acquisitions. Net debt is defined as total debt less cash and cash equivalents as reported on the balance sheet as of the end of the period.

This earnings release presents constant currency growth rates assuming foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates. This earnings release also presents organic constant currency growth rates, which assumes consistent foreign currency exchange rates between years and also eliminates the impact of our recent acquisitions. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates and the impacts of recent acquisitions.

Free cash flow is defined as cash provided by operating activities less capital expenditures and is a measure we may refer to.

Refer to Schedules 1 through 7 for a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

SCHEDULE 1 TRANSUNION AND SUBSIDIARIES Revenue and Adjusted EBITDA growth rates as Reported, CC, Inorganic, Organic and Organic CC (Unaudited)

	For the Three Months Ended December 31, 2024 compared with the Three Months Ended December 31, 2023						For the Year Ended December 31, 2024 compared with the Year Ended December 31, 2023
	Reported		CC Growth¹		Organic CC Growth²		Reported		CC Growth¹		Organic CC Growth²
Revenue:
Consolidated	8.6	%	8.9	%	8.9	%	9.2	%	9.3	%	9.3	%
U.S. Markets	7.6	%	7.7	%	7.7	%	8.2	%	8.2	%	8.2	%
Financial Services	20.6	%	20.6	%	20.6	%	15.2	%	15.2	%	15.2	%
Emerging Verticals	4.2	%	4.2	%	4.2	%	4.0	%	4.0	%	4.0	%
Consumer Interactive	(11.1)%		(11.1)%		(11.1)%		1.5	%	1.6	%	1.6	%
International	10.7	%	11.7	%	11.7	%	12.7	%	13.0	%	13.0	%
Canada	5.3	%	7.9	%	7.9	%	9.9	%	11.5	%	11.5	%
Latin America	7.0	%	15.2	%	15.2	%	10.6	%	12.0	%	12.0	%
United Kingdom	5.8	%	2.7	%	2.7	%	5.1	%	2.6	%	2.6	%
Africa	13.0	%	8.2	%	8.2	%	9.5	%	9.8	%	9.8	%
India	16.7	%	18.3	%	18.3	%	23.1	%	24.7	%	24.7	%
Asia Pacific	19.3	%	20.2	%	20.2	%	15.1	%	15.8	%	15.8	%

Adjusted EBITDA:
Consolidated	15.9	%	16.4	%	16.4	%	12.1	%	12.3	%	12.3	%
U.S. Markets	16.3	%	16.4	%	16.4	%	10.2	%	10.2	%	10.2	%
International	11.3	%	12.8	%	12.8	%	15.8	%	16.6	%	16.6	%

1.	Constant Currency (“CC”) growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
2.	We have no inorganic revenue or Adjusted EBITDA for the periods presented. Organic CC growth rate is the CC growth rate less inorganic growth rate.

SCHEDULE 2 TRANSUNION AND SUBSIDIARIES Consolidated and Segment Revenue, Adjusted EBITDA, and Adjusted EBITDA Margins (Unaudited) (dollars in millions)

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Revenue:
U.S. Markets gross revenue
Financial Services	$	356.1		$	295.3		$	1,433.8		$	1,244.9
Emerging Verticals		302.3			290.3			1,215.5			1,168.2
Consumer Interactive		133.5			150.3			588.7			579.7
U.S. Markets gross revenue	$	792.0		$	735.8		$	3,237.9		$	2,992.8

International gross revenue
Canada	$	38.5		$	36.6		$	154.4		$	140.5
Latin America		33.8			31.6			134.7			121.8
United Kingdom		59.2			55.9			227.7			216.6
Africa		18.4			16.3			66.4			60.6
India		66.6			57.1			269.4			218.9
Asia Pacific		28.6			24.0			105.8			91.9
International gross revenue	$	245.1		$	221.5		$	958.4		$	850.4

Total gross revenue	$	1,037.1		$	957.3		$	4,196.3		$	3,843.1

Intersegment revenue eliminations
U.S. Markets	$	1.3		$	(1.6	)	$	(6.2	)	$	(6.2	)
International		(1.6	)		(1.4	)		(6.4	)		(5.7	)
Total intersegment revenue eliminations	$	(0.3	)	$	(3.0	)	$	(12.6	)	$	(11.9	)

Total revenue as reported	$	1,036.8		$	954.3		$	4,183.8		$	3,831.2

Adjusted EBITDA:
U.S. Markets	$	311.9		$	268.1		$	1,232.8		$	1,119.0
International		107.4			96.5			425.5			367.5
Corporate		(41.4	)		(38.6	)		(152.0	)		(142.8	)

Adjusted EBITDA Margin:¹
U.S. Markets		39.4	%		36.4	%		38.1	%		37.4	%
International		43.8	%		43.6	%		44.4	%		43.2	%

1.	Segment Adjusted EBITDA Margins are calculated using segment gross revenue and segment Adjusted EBITDA. Consolidated Adjusted EBITDA Margin is calculated using total revenue as reported and consolidated Adjusted EBITDA.

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Reconciliation of Net income (loss) attributable to TransUnion to consolidated Adjusted EBITDA:
Net income (loss) attributable to TransUnion	$	66.2		$	6.1		$	284.4		$	(206.2	)
Discontinued operations, net of tax		—			—			—			0.7
Income (loss) from continuing operations attributable to TransUnion	$	66.2		$	6.0		$	284.4		$	(205.4	)
Net interest expense		53.4			65.4			236.7			267.5
Provision (benefit) for income taxes		29.9			(15.4	)		98.8			44.7
Depreciation and amortization		137.3			133.3			537.8			524.4
EBITDA	$	286.8		$	189.4		$	1,157.7		$	631.2
Adjustments to EBITDA:
Stock-based compensation	$	35.6		$	27.3		$	121.2		$	100.6
Goodwill impairment¹		—			—			—			414.0
Mergers and acquisitions, divestitures and business optimization²		9.4			10.1			26.5			34.6
Accelerated technology investment³		25.6			17.0			84.2			70.6
Operating model optimization program⁴		8.4			77.6			94.8			77.6
Net other⁵		12.1			4.6			21.8			15.2
Total adjustments to EBITDA	$	91.1		$	136.6		$	348.7		$	712.5
Consolidated Adjusted EBITDA	$	377.9		$	326.0		$	1,506.3		$	1,343.7

Net income (loss) attributable to TransUnion margin		6.4	%		0.6	%		6.8	%	(5.4)%
Consolidated Adjusted EBITDA margin⁶		36.5	%		34.2	%		36.0	%		35.1	%

As a result of displaying amounts in millions, rounding differences may exist in the tables above and footnotes below.

1.	During the year ended December 31, 2023, we recorded a goodwill impairment of $414.0 million related to our United Kingdom reporting unit in our International segment.
2.	Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024		2023
Transaction and integration costs	$	4.2		$	9.9		$	11.2	$	30.9
Fair value and impairment adjustments		7.6			0.9			8.4		1.6
Post-acquisition adjustments		(2.3	)		(0.5	)		7.0		4.3
Transition services agreement income		—			(0.1	)		—		(2.5	)
Loss on business disposal		—			—			—		0.3
Total mergers and acquisitions, divestitures and business optimization	$	9.4		$	10.1		$	26.5	$	34.6

Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities, which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023
Foundational Capabilities	$	10.7	$	8.0	$	35.7	$	35.8
Migration Management		13.3		7.7		43.2		29.6
Program Enablement		1.6		1.3		5.4		5.2
Total accelerated technology investment	$	25.6	$	17.0	$	84.2	$	70.6

4.	Operating model optimization consisted of the following adjustments:

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023
Employee separation	$	—	$	71.9	$	24.7	$	71.9
Facility exit		—		3.4		42.1		3.4
Business process optimization		8.4		2.3		28.0		2.3
Total operating model optimization	$	8.4	$	77.6	$	94.8	$	77.6

5.	Net other consisted of the following adjustments:

	Three Months Ended December 31,					Years Ended December 31,
		2024		2023			2024			2023
Deferred loan fee expense from debt prepayments and refinancings	$	8.6	$	6.2		$	17.8		$	9.3
Other debt financing expenses		0.7		0.7			2.4			2.2
Currency remeasurement on foreign operations		2.5		(1.8	)		2.1			4.8
Other non-operating (income) and expense		0.2		(0.5	)		(0.5	)		(1.0	)
Total other adjustments	$	12.1	$	4.6		$	21.8		$	15.2

6.	Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue.

SCHEDULE 3 TRANSUNION AND SUBSIDIARIES Adjusted Net Income and Adjusted Diluted Earnings Per Share (Unaudited) (in millions, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Net income (loss) from continuing operations attributable to TransUnion	$	66.2		$	6.0		$	284.4		$	(205.4	)
Discontinued operations, net of tax		—			—			—			(0.7	)
Income (loss) attributable to TransUnion	$	66.2		$	6.1		$	284.4		$	(206.2	)

Weighted-average shares outstanding:
Basic		194.9			193.7			194.4			193.4
Diluted		197.3			194.3			196.7			193.4

Basic earnings (loss) per common share from:
Income (loss) from continuing operations attributable to TransUnion	$	0.34		$	0.03		$	1.46		$	(1.06	)
Discontinued operations, net of tax		—			—			—			—
Net income (loss) attributable to TransUnion	$	0.34		$	0.03		$	1.46		$	(1.07	)
Diluted earnings (loss) per common share from:
Income (loss) from continuing operations attributable to TransUnion	$	0.34		$	0.03		$	1.45		$	(1.06	)
Discontinued operations, net of tax		—			—			—			—
Net income (loss) attributable to TransUnion	$	0.34		$	0.03		$	1.45		$	(1.07	)

Reconciliation of Net income (loss) attributable to TransUnion to Adjusted Net Income:
Net income (loss) attributable to TransUnion	$	66.2		$	6.1		$	284.4		$	(206.2	)
Discontinued operations, net of tax		—			—			—			0.7
Income (loss) from continuing operations attributable to TransUnion	$	66.2		$	6.0		$	284.4		$	(205.4	)
Adjustments before income tax items:
Amortization of certain intangible assets		71.3			72.4			286.1			293.6
Stock-based compensation		35.6			27.3			121.2			100.6
Goodwill impairment¹		—			—			—			414.0
Mergers and acquisitions, divestitures and business optimization²		9.4			10.1			26.5			34.6
Accelerated technology investment³		25.6			17.0			84.2			70.6
Operating model optimization program⁴		8.4			77.6			94.8			77.6
Net other⁵		11.6			4.4			20.2			14.0
Total adjustments before income tax items	$	161.9		$	208.8		$	633.1		$	1,005.0
Total adjustments for income taxes⁶	$	(35.9	)	$	(58.9	)	$	(148.7	)	$	(144.1	)
Adjusted Net Income	$	192.2		$	156.0		$	768.8		$	655.4

Weighted-average shares outstanding:
Basic		194.9			193.7			194.4			193.4
Diluted		197.3			194.3			196.7			194.7

Adjusted Earnings per Share:
Basic	$	0.99		$	0.81		$	3.95		$	3.39
Diluted	$	0.97		$	0.80		$	3.91		$	3.37

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Reconciliation of Diluted earnings (loss) per share from Net income attributable to TransUnion to Adjusted Diluted Earnings per Share:
Diluted earnings (loss) per common share from:
Net income (loss) attributable to TransUnion	$	0.34		$	0.03		$	1.45		$	(1.07	)
Discontinued operations, net of tax		—			—			—			—
Income (loss) from continuing operations attributable to TransUnion	$	0.34		$	0.03		$	1.45		$	(1.06	)
Adjustments before income tax items:
Amortization of certain intangible assets		0.36			0.37			1.45			1.51
Stock-based compensation		0.18			0.14			0.62			0.52
Goodwill impairment¹		—			—			—			2.13
Mergers and acquisitions, divestitures and business optimization²		0.05			0.05			0.13			0.18
Accelerated technology investment³		0.13			0.09			0.43			0.36
Operating model optimization program⁴		0.04			0.40			0.48			0.40
Net other⁵		0.06			0.02			0.10			0.07
Total adjustments before income tax items	$	0.82		$	1.07		$	3.22		$	5.16
Total adjustments for income taxes⁶		(0.18	)		(0.30	)		(0.76	)		(0.74	)
Impact of additional dilutive shares⁷		—			—			—			0.02
Adjusted Diluted Earnings per Share	$	0.97		$	0.80		$	3.91		$	3.37

Each component of earnings per share is calculated independently, therefore, rounding differences exist in the table above.

1.	During the year ended December 31, 2023, we recorded a goodwill impairment of $414.0 million related to our United Kingdom reporting unit in our International segment.
2.	Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024		2023
Transaction and integration costs	$	4.2		$	9.9		$	11.2	$	30.9
Fair value and impairment adjustments		7.6			0.9			8.4		1.6
Post-acquisition adjustments		(2.3	)		(0.5	)		7.0		4.3
Transition services agreement income		—			(0.1	)		—		(2.5	)
Loss on business disposal		—			—			—		0.3
Total mergers and acquisitions, divestitures and business optimization	$	9.4		$	10.1		$	26.5	$	34.6

Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023
Foundational Capabilities	$	10.7	$	8.0	$	35.7	$	35.8
Migration Management		13.3		7.7		43.2		29.6
Program Enablement		1.6		1.3		5.4		5.2
Total accelerated technology investment	$	25.6	$	17.0	$	84.2	$	70.6

4.	Operating model optimization consisted of the following adjustments:

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023
Employee separation	$	—	$	71.9	$	24.7	$	71.9
Facility exit		—		3.4		42.1		3.4
Business process optimization		8.4		2.3		28.0		2.3
Total operating model optimization	$	8.4	$	77.6	$	94.8	$	77.6

5.	Net other consisted of the following adjustments:

	Three Months Ended December 31,					Years Ended December 31,
		2024		2023			2024		2023
Deferred loan fee expense from debt prepayments and refinancing	$	8.6	$	6.2		$	17.8	$	9.3
Currency remeasurement on foreign operations		2.5		(1.8	)		2.1		4.8
Other non-operating expense		0.4		—			0.3		—
Total other adjustments	$	11.6	$	4.4		$	20.2	$	14.0

6.	Total adjustments for income taxes represents the total of adjustments discussed to calculate the Adjusted Provision for Income Taxes.
7.	Diluted share counts for Adjusted Diluted Earnings Per Share includes an additional 1.3 million of dilutive securities for the twelve months ended December 31, 2023, which are not included in GAAP diluted weighted-average shares outstanding due to the Company’s net loss position for the twelve months ended December 31, 2023.

SCHEDULE 4 TRANSUNION AND SUBSIDIARIES Adjusted Provision for Income Taxes, Effective Tax Rate and Adjusted Effective Tax Rate (Unaudited) (dollars in millions)

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Income (loss) from continuing operations before income taxes	$	100.6		$	(5.8	)	$	401.1		$	(145.3	)
Total adjustments before income tax items from Schedule 3		161.9			208.8			633.1			1,005.0
Adjusted income from continuing operations before income taxes	$	262.5		$	203.0		$	1,034.3		$	859.7

Reconciliation of Provision for income taxes to Adjusted Provision for Income Taxes
(Provision) benefit for income taxes		(29.9	)		15.4			(98.8	)		(44.7	)
Adjustments for income taxes:
Tax effect of above adjustments		(37.0	)		(45.5	)		(145.5	)		(135.6	)
Eliminate impact of excess tax (benefit) expenses for stock-based compensation		(0.1	)		0.2			(1.5	)		3.0
Other¹		1.3			(13.7	)		(1.7	)		(11.5	)
Total adjustments for income taxes	$	(35.9	)	$	(58.9	)	$	(148.7	)	$	(144.1	)
Adjusted Provision for Income Taxes	$	(65.8	)	$	(43.5	)	$	(247.6	)	$	(188.8	)

Effective tax rate		29.7	%		263.1	%		24.6	%	(30.8)%
Adjusted Effective Tax Rate		25.1	%		21.4	%		23.9	%		22.0	%

As a result of displaying amounts in millions, rounding differences may exist in the table above.

1.	Other adjustments for income taxes include:

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
Deferred tax adjustments	$	15.2		$	(13.5	)	$	13.8		$	(12.9	)
Valuation allowance adjustments		(10.6	)		4.8			(12.7	)		4.0
Return to provision, audit adjustments, and reserves related to prior periods		(3.5	)		(3.6	)		(2.3	)		(1.0	)
Other adjustments		0.1			(1.4	)		(0.5	)		(1.6	)
Total other adjustments	$	1.3		$	(13.7	)	$	(1.7	)	$	(11.5	)

SCHEDULE 5
TRANSUNION AND SUBSIDIARIES
Leverage Ratio (Unaudited)
(dollars in millions)

	Years Ended December 31,
		2024		2023
Reconciliation of Net income (loss) attributable to TransUnion to Consolidated Adjusted EBITDA:
Net income (loss) attributable to TransUnion	$	284.4	$	(206.2	)
Discontinued operations, net of tax		—		0.7
Income (loss) from continuing operations attributable to TransUnion	$	284.4	$	(205.4	)
Net interest expense		236.7		267.5
Provision for income taxes		98.8		44.7
Depreciation and amortization		537.8		524.4
EBITDA	$	1,157.7	$	631.2
Adjustments to EBITDA:
Stock-based compensation	$	121.2	$	100.6
Goodwill impairment¹		—		414.0
Mergers and acquisitions, divestitures and business optimization²		26.5		34.6
Accelerated technology investment³		84.2		70.6
Operating model optimization program⁴		94.8		77.6
Net other⁵		21.8		15.2
Total adjustments to EBITDA	$	348.7	$	712.5
Leverage Ratio Adjusted EBITDA	$	1,506.3	$	1,343.7

Total debt	$	5,147.2	$	5,340.4
Less: Cash and cash equivalents		679.5		476.2
Net Debt	$	4,467.8	$	4,864.2

Ratio of Net Debt to Net income (loss) attributable to TransUnion		15.7		(23.6	)
Leverage Ratio⁶		3.0		3.6

As a result of displaying amounts in millions, rounding differences may exist in the table above.

1.	During the year ended December 31, 2023, we recorded a goodwill impairment of $414.0 million related to our United Kingdom reporting unit in our International segment.
2.	Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:

	Years Ended December 31,
		2024		2023
Transaction and integration costs	$	11.2	$	30.9
Fair value and impairment adjustments		8.4		1.6
Post-acquisition adjustments		7.0		4.3
Transition services agreement income		—		(2.5	)
Loss on business disposal		—		0.3
Total mergers and acquisitions, divestitures and business optimization	$	26.5	$	34.6

Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:

	Years Ended December 31,
		2024		2023
Foundational Capabilities	$	35.7	$	35.8
Migration Management		43.2		29.6
Program Enablement		5.4		5.2
Total accelerated technology investment	$	84.2	$	70.6

4.	Operating model optimization consisted of the following adjustments:

	Years Ended December 31,
		2024		2023
Employee separation	$	24.7	$	71.9
Facility exit		42.1		3.4
Business process optimization		28.0		2.3
Total operating model optimization	$	94.8	$	77.6

5.	Net other consisted of the following adjustments:

	Years Ended December 31,
		2024			2023
Deferred loan fee expense from debt prepayments and refinancings	$	17.8		$	9.3
Other debt financing expenses		2.4			2.2
Currency remeasurement on foreign operations		2.1			4.8
Other non-operating (income) and expense		(0.5	)		(1.0	)
Total other adjustments	$	21.8		$	15.2

6.	We define Leverage Ratio as net debt divided by Leverage Ratio Adjusted EBITDA as shown in the table above.

SCHEDULE 6 TRANSUNION AND SUBSIDIARIES Segment Depreciation and Amortization (Unaudited) (in millions)

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023

U.S. Markets	$	101.1	$	101.3	$	400.5	$	393.6
International		35.2		30.9		133.3		126.4
Corporate		0.9		1.1		3.9		4.4
Total depreciation and amortization	$	137.3	$	133.3	$	537.8	$	524.4

As a result of displaying amounts in millions, rounding differences may exist in the table above.

SCHEDULE 7
TRANSUNION AND SUBSIDIARIES
Reconciliation of Non-GAAP Guidance (Unaudited)
(in millions, except per share data)

	Three Months Ended March 31, 2025						Year Ended December 31, 2025
	Low			High			Low			High
Guidance reconciliation of Net income attributable to TransUnion to Adjusted EBITDA:
Net income attributable to TransUnion	$	71		$	77		$	335		$	362
Interest, taxes and depreciation and amortization		222			225			923			935
EBITDA	$	293		$	301		$	1,258		$	1,298
Stock-based compensation, mergers, acquisitions divestitures and business optimization-related expenses and other adjustments¹		83			83			292			292
Adjusted EBITDA	$	376		$	384		$	1,549		$	1,590

Net income attributable to TransUnion margin		6.7	%		7.1	%		7.7	%		8.3	%
Consolidated Adjusted EBITDA margin²		35.5	%		35.8	%		35.8	%		36.2	%

Guidance reconciliation of Diluted earnings per share to Adjusted Diluted Earnings per Share:
Diluted earnings per share	$	0.36		$	0.39		$	1.68		$	1.82
Adjustments to diluted earnings per share¹		0.60			0.60			2.25			2.26
Adjusted Diluted Earnings per Share	$	0.96		$	0.99		$	3.93		$	4.08

As a result of displaying amounts in millions, rounding differences may exist in the table above.

1.	These adjustments include the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of our Earnings Release.
2.	Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue.

The MIL Network –

February 14, 2025

MIL-OSI: TransUnion Collaborates with Credit Sesame to Launch New Freemium Direct-to-Consumer Credit Education and Monitoring Offering

Source: GlobeNewswire (MIL-OSI)

CHICAGO, Feb. 13, 2025 (GLOBE NEWSWIRE) — TransUnion (NYSE:TRU) has announced the launch of its new direct-to-consumer experience in the U.S., enabled by its strategic collaboration with Credit Sesame, a leader in the credit management space. This new offering is expected to enable TransUnion to more fully serve the tens of millions of consumers who visit TransUnion digital properties annually, with a highly engaging freemium credit education solution that will be integrated with enhanced premium credit monitoring services.

This new experience will provide consumers with access to a suite of free credit education services, including a daily TransUnion credit score and report, in addition to optional premium credit monitoring services, available on TransUnion’s website and app. Consumers will also have access to a network of third-party financial offers, tailored to a consumer’s individual goals and credit profile. TransUnion expects to launch the new offering in phases throughout the first half of 2025.

“Personal empowerment is a key component of our commitment to Information for Good^®,” said Steve Chaouki, President, U.S. Markets, TransUnion. “By providing a free-first experience that includes financial offers, we engage with more consumers, enabling them to better understand their financial situations and take action to manage their financial futures. By integrating our freemium offering with our enhanced premium credit and identity monitoring services, we expect to deliver a more expansive product offering to consumers and position our direct-to-consumer business for sustainable growth.”

This initiative combines the unique capabilities of Credit Sesame and TransUnion. Credit Sesame provides its expertise to develop and manage a highly engaging product platform, mobile app and integrated network of financial offers, all powered by TransUnion data. TransUnion plans to upgrade its existing consumer base in the U.S. onto the new platform and manage consumer acquisition and consumer servicing, as well as ongoing operational and compliance controls.

“We’re committed to empowering consumers to take charge of their financial health,” said Adrian Nazari, CEO, Credit Sesame. “We have a track record of success in the freemium credit space, helping millions of Americans effectively manage their credit and create better opportunities for themselves and their families. By leveraging our Sesame platform, we expect that TransUnion will be able to deeply engage consumers and support them in achieving their financial goals.”

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business

About Credit Sesame
Credit Sesame is a leading financial wellness company dedicated to helping consumers achieve better credit and financial health through cutting-edge technology and data-driven solutions. With a decade of credit expertise and a proven track record of serving over 18 million users, Credit Sesame leverages AI and advanced analytics to empower individuals to improve their credit scores, enhance approval odds, and reduce credit costs.

The recently launched Sesame Credit Intelligence Platform extends this mission by providing institutions with a turnkey AI-powered credit intelligence solution. It enables businesses to offer personalized credit and financial wellness experiences, driving deeper customer engagement and growth.

Backed by leading institutional and strategic investors, Credit Sesame operates across the U.S. For more information, visit www.addsesame.com.

TransUnion Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negatives of these words and other similar expressions. There may be other factors, many of which are beyond our control, that may cause our actual results to differ materially from the forward-looking statements, including factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K filed with the Securities and Exchange Commission. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.

The forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.

Contact Dave Blumberg
TransUnion

E-mail david.blumberg@transunion.com

Telephone 312-972-6646

The MIL Network –

February 14, 2025
MIL-OSI United Kingdom: Former owner of Gillingham takeaway sanctioned for £50,000 Covid loan abuse
Source: United Kingdom – Executive Government & Departments

Former owner of Chinese takeaway in Kent claimed maximum loan for business which was not eligible for any money
Zhongqing Li claimed a £50,000 Bounce Back Loan for his Chinese takeaway despite the business not being eligible for the scheme

The Official Receiver uncovered the abuse of the loan after the takeaway owner became bankrupt.

He is now subject to nine years of sanctions which prevent him acting as a company director

The former owner of a Chinese takeaway in Kent is subject to stringent sanctions after taking out a £50,000 Bounce Back Loan during the Covid pandemic when the business was not entitled to any money under the scheme.

Zhongqing Li, 55, from Parkwood Green, Gillingham, applied for the loan in June 2020 to support his Silver Sea takeaway, which also traded from Parkwood Green.

Li became bankrupt in June 2024, owing the full amount of the loan.

The Official Receiver, whose duty includes investigating the cause of a bankruptcy, discovered that Silver Sea had not been trading within the required timeframe to have been eligible for a Bounce Back Loan.

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said:

The Bounce Back Loan scheme was designed to help keep existing businesses afloat during a time of crisis for the country.

Zhongqing Li abused this vital support by claiming the maximum amount possible for a business that was not entitled to receive a loan under the terms of the scheme.

The Insolvency Service strives to secure the toughest sanctions for those who abuse public money, and we are pleased these lengthy restrictions will curb Li’s business and financial activities to help protect the public from further harm.

Li made a loan application on 15 June 2020 in which he stated that Silver Sea had been trading on 1 March 2020 – the date businesses had to have been trading to qualify for a loan under the rules of the scheme.

But the Official Receiver discovered that the day before he applied for the loan, Li had signed a VAT registration form saying the business had only begun trading in the previous month, on 17 May 2020.

The Official Receiver secured a Bankruptcy Restrictions Undertaking (BRU) from Li, in which he did not dispute that he had obtained a £50,000 Bounce Back Loan to which he was not entitled because he was not trading on or before 1 March 2020, as required by the terms of the scheme.

He agreed to abide by sanctions that restrict his finance and business activities, and extend the original terms of his bankruptcy – usually a 12-month period – for another nine years.

The restrictions prevent him acting as a company director without permission from the court, and from holding certain roles in public organisations. He is also prohibited from borrowing more than £500 without declaring he is subject to the sanctions.

The Secretary of State for Business and Trade accepted the undertaking from Zhongqing Li on 28 January 2025. He will be subject to the restrictions until 27 January 2034.

The Silver Sea takeaway continues to trade under different owners.

The Official Receiver continues to make enquiries into possible recovery of the money.

Further Information

Zhongqing Li is of Parkwood Green, Gillingham. His date of birth is 14 July 1969.

Further guidance about Bankruptcy Restrictions Orders and Undertakings 

Details of BRO and BRU restrictions relating to individuals can be found on the Individual Insolvency Register

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Published 13 February 2025
MIL OSI United Kingdom –
February 14, 2025
MIL-OSI Economics: Per Jansson: Credibility and flexibility going forward

Source: Bank for International Settlements

Accompanying slides to the speech

My time as a member of the Executive Board of the Riksbank has been quite special, with two extreme periods in terms of how inflation has developed. The first period had already started before I joined the Executive Board in 2012. During this time, inflation had been below target more or less consistently for more than half a decade, sometimes very much below. The problem, which we shared with many other central banks, was how to get inflation to rise towards the target. After a few years of better target attainment in 2017−2019, the global pandemic hit and was followed by a period in which inflation rose sharply and was far above the target, for the first time since its introduction some thirty years ago (see Figure 1). In other words, the problems we have had to deal with during this time have been of very different kinds.

What these periods have had in common, however, is that monetary policy has reacted clearly and decisively to bring inflation back to the target. This has required quite specific, and in some cases unique, measures. First, negative policy rates and large-scale securities purchases, something that had not been tried before. After that, the fastest and largest rate hikes during the inflation targeting period.

I believe there may be some merit in the fact that inflation targeting has now been tested both during a period of too low inflation and during a period of too high inflation − and of course that it has proved to pass the test. The investment in credibility that we have thus made could pay off in the form of making it slightly easier to conduct monetary policy in the future. More specifically, it could mean that we can allow ourselves to act a little less forcefully than we have done so far with the interest rate. But a prerequisite for this is that economic actors really see the target as credible and worth upholding, and act accordingly. This is what I intend to talk about here today.

MIL OSI Economics –

February 14, 2025
MIL-OSI Economics: Burkhard Balz: Envisioning tomorrow – the role of CBDCs in Europe’s digital financial ecosystem

Source: Bank for International Settlements

Check against delivery

1 Introduction

Good morning ladies and gentlemen and thank you very much for your warm welcome.

I am honoured to have been invited back to this year’s Frankfurt Digital Finance Conference in this wonderful building here in Frankfurt’s Palmengarten and to have been asked to hold a keynote to kick off today’s event.

Allow me to begin my keynote this morning with a quote attributed to Oscar Wilde: The future belongs to those who recognise opportunities before they become obvious. These words, ladies and gentlemen, could not be any better suited to our financial ecosystem.

And it is precisely opportunities that I wish to address in my keynote today – the opportunities provided by central bank digital currencies, or CBDCs for short. A subject that is as timely as it is significant.

2 The future is digital

We are at the cusp of a new era. One in which the digitalisation of the financial sector is not just an option but a necessity. New technologies are venturing into the realm of payments and new forms of money, such as digital central bank currencies and stablecoins, are also emerging as alternatives to physical cash.

These developments all pose new challenges for central banks. Ultimately, central banks must continue to ensure secure and efficient payments in line with their mandate and redefine their role in an increasingly digitalised world in order to maintain the public’s trust in our monetary system.

The question that we therefore now face is: how do we respond to these technological challenges?

And that is precisely why we in the Eurosystem – by that I mean the European Central Bank and the national central banks of the euro-area member states, including the Bundesbank – are taking a proactive approach to actively help shape the future of Europe’s digital financial ecosystem.

3 What are we aiming to achieve with the introduction of a digital euro?

One could argue that the Eurosystem already offers enough sufficiently well-functioning products, be it physical banknotes and coins or cashless payment instruments. After all, these have proven their worth for decades. Yet at the same time, we cannot simply ignore the evolving world around us. In an increasingly digitalised society, we must adapt to the changing needs and demands of consumers and rethink our payment services.

Let me outline the three key motivations behind the possible introduction of a retail CBDC in Europe – a digital euro, which we sometimes like to summarise as resilience, autonomy and efficiency.

Let me first start with resilience. The foundation of an independent and efficient monetary policy is the adoption and use of the euro. By providing our common currency – the euro – in its form as legal tender and as a modern “all-in-one” digital payment solution, we are paving the way for our currency to enter the digital age, making it “future-proof” and fit for purpose in an increasingly digital society.

The digital euro would thereby help to preserve the euro’s fulfilment of the core monetary functions and shield the euro area from competing foreign currencies as well as foreign – and potentially unregulated – stablecoins by safeguarding the anchor function of central bank money.

Second, the digital euro is necessary to improve the autonomy of the European payment system. In its current form, the European payments landscape is highly dependent on non-European providers. Almost 25 years after the introduction of the euro, we still do not have a digital payment solution that can be used across the entire euro area and that runs on a European infrastructure, which, in my view, is not compatible with the concept of a single European market. Although a small number of successful payment innovations have emerged across the euro area over the past years, such as iDEAL in the Netherlands or BIZUM in Spain, the reach of these payment solutions usually ends at national borders.

As a result, payments in Europe are largely dependent on international schemes, primarily those in the United States. At present, just under two thirds of all card payments in the euro area are processed by non-European providers. And I believe that Europe’s dependencies in the digital age are likely to increase if we do not fundamentally take matters into our own hands.

Third, is the issue of efficiency. By creating a pan-European payment rail in a technically modern form, we would foster competition and innovation in payments across Europe, which we believe is the best path towards efficiency in payments. The payment initiatives we have today, such as BIZUM or WERO, would be able to integrate the digital euro into their payment applications, thereby enabling them to gain instant European reach.

4 What would a digital euro be for the common citizen?

Although the issues I have just touched upon are very important, they are not necessarily of primarily relevance for the daily life of a majority of citizens in Europe. Hence, what would the digital euro be from the perspective of the customer?

I believe that the digital euro would not just be a commitment to Europe’s autonomy, increase the resilience of our payment system and foster competition and innovation, it would also improve payments and make life easier for the 350 million residents of the euro area.

The digital euro would serve as an additional means of payment alongside cash. As a digital upgrade of banknotes and coins, it would be an “all-in-one payments solution”, as we like to call it, which means it can be used in almost all everyday payment situations, including at retail checkouts, transactions among family and friends, online purchases, and payments to or from public authorities. Furthermore, it would be the first digital currency which could be used both online and offline. That is to say, also in the event of a loss of internet reception.

Moreover, the design of the digital euro would ensure that it would offer the highest possible level of user privacy, comparable only to cash. No other digital means of payment in Europe currently offers all these features.

Despite the many benefits the digital euro would bring for Europe as a whole, we must, nevertheless, proceed with caution. The introduction of a digital euro raises important questions about privacy, security, and the impact on financial stability and monetary policy. We must ensure that the digital euro upholds the highest standards of data protection, that it is resilient against cyber threats, and that it does not have a negative impact on financial stability.

5 Wholesale CBDC

Digitalisation raises questions not only in terms of how we intend to continue providing access to central bank money for our European citizens in future, but also in terms of how we intend to supply money to our wholesale customers. It is and will remain essential that we are able to settle digital transactions using new and innovative technologies, such as distributed ledger technology (DLT) in central bank money. An entire ecosystem is currently evolving around the tokenisation of securities, which involves all parts of the financial system.

Like other financial players, the Bundesbank, and also the Eurosystem as a whole, see the significant benefits that the use of these new technologies can bring. The advantages of DLT, such as automated settlement by means of smart contracts and reduced reconciliation needs, are clear.

But to fully harness this potential, we also need an innovative settlement mechanism for the cash leg – one which settles transactions in central bank money. We are therefore working on developing wholesale solutions that enable banks to settle DLT-based financial market transactions in central bank money.

The Eurosystem recently completed an exploration phase together with the market, which ran from May to November 2024, during which we tested various new technologies for wholesale central bank money settlement using real transactions. The Bundesbank also participated in this exploration phase with its “Trigger solution”, which builds a bridge between DLT platforms and the conventional TARGET payment system. The feedback we have received from the market so far has been very positive. I think we can already say that the exploration phase was a complete success.

The anticipated benefits of DLT are seen as having the potential to address and overcome the ecosystem’s current shortcomings, such as fragmentation, complexity, over-intermediation, and technological inefficiencies, which hinder the growth of a digital capital markets union.

By developing a new ecosystem from the ground up, it could be made more integrated and harmonised, featuring a “common set of rails” – a shared ledger or a network of fully interoperable ledgers – that would guarantee reachability, open access, and compatibility across the services of all participants.

Our primary focus is now on implementing a short-term wholesale solution to meet the immediate and growing demands of the market. This will buy us some much-needed time to continue working on a vision for a long-term solution for wholesale CBDC. A solution which must ultimately go hand in hand with the evolving financial market ecosystem.

6 Business-to-business (B2B) payments

Alongside its work into the possible introduction of a digital euro and the exploration of wholesale CBDC, the ECB, together with the Eurosystem, has also been turning its focus to another area of payments – one which is increasingly gaining traction: business-to-business payments, or B2B payments for short.

To fully leverage the potential of the evolving payments landscape in the area of CBDCs, last October the ECB organised a special focus workshop on innovations in B2B payments and the role central bank money could play.

This workshop provided a one-of-a-kind platform to learn more about the potential use cases out there in the market. Given the high level of interest shown in the first focus workshop, I’m sure this will not be the last one of its kind.

7 Outlook

Ladies and gentlemen,

The introduction of the digital euro and the exploration of wholesale CBDC and B2B use cases are not just a technical exercise, but a clear commitment to the innovative strength and competitiveness of Europe.

The Bundesbank and the Eurosystem are determined to play an active role in shaping this digital transformation.

It is, however, crucial that we continue working together and pool our resources and expertise in order to fully exploit the opportunities offered by digitalisation to create a strong, stable and future-proof digital financial ecosystem for Europe.

Thank you for your attention.

MIL OSI Economics –

February 14, 2025
MIL-OSI Economics: Asian Development Blog: A Fork in the Road: Will Asia Prioritize Safety or Suffer Rising Fatalities?

Source: Asia Development Bank

While road fatalities in Asia and the Pacific have fallen 11% since 2010, progress remains uneven, with low- and middle-income countries lagging behind. Strengthening infrastructure, enforcing safety regulations, and securing sustainable financing are critical to meeting the UN Decade of Action for Road Safety goal.

On average, one person dies on Asia’s roads every minute. In 2021 alone, the region recorded over 694,000 road fatalities—nearly 60% of the global total of 1.19 million, according to the World Health Organization. These deaths overwhelmingly occur in Asia’s low- and middle-income countries, which account for 99% of the region’s road fatalities.

Road crashes in Asia have a particularly severe impact on young people. They are the leading cause of death for those aged 15 to 29, and the second leading cause of death for children aged 5 to 14. Vulnerable road users are disproportionately affected. In 2021, one-third of all road fatalities involved pedestrians and cyclists, while 35% involved motorized two- and three-wheelers.

The WHO estimates that road traffic deaths have fallen by 5% globally from 2010. In comparison, Asia and the Pacific has outpaced this trend, achieving an overall reduction of 11%. Meanwhile, the overall landscape indicates mixed progress across the region. While 67% of countries in the region have reduced road fatalities, only eight achieved a substantial decrease of 30% or more.

Most of the decline in road fatalities has occurred in high-income Asian countries, which saw a 46% reduction between 2010 and 2021—an average decrease of 5% per year. In contrast, low- and middle-income countries in the region achieved only a 4% reduction over the same period, with an average annual decline of just 0.3%.
While progress is being made, accelerated efforts are needed to realize the target. If current trends continue, about two-thirds of countries in the region — accounting for 86% of current road crash fatalities — will not be able to achieve the UN Decade of Action for Road Safety goal of achieving a 50% reduction.

While discrepancies exist between the various available datasets, they all paint the same scenario, that the majority of the countries in Asia will fail to meet the 2030 target under current trajectories.

Regulations in the region focus on users and usage of the roads. For example, 97% of Asian countries have a national law setting speed limits, and 95% have national motorcycle helmet laws.

With nearly 1.8 billion Asian people lacking access to urban transit and rural roads, countries must invest in safer road infrastructure.

Targeted steps are needed to establish safe systems — which look beyond individual road behavior and address the underlying environment affecting road user safety, including safe roads and roadsides; safe vehicles; post-crash care; safe speeds and safe road use.

For example, technical standards for new roads – which affect all road users – are only present in 78% of the countries. Only half have targets to have their streets meet “technical safety standards for all users.”

There is a dire need to accelerate the improvement of road infrastructure. For example, road user surveys utilizing the IRAP star rating system indicate that the share of roads in Asia with good (3 stars or more) ratings is still quite low. With nearly 1.8 billion Asian people lacking access to urban transit and rural roads, countries must invest in safer road infrastructure.

On the institutions, while 95% of Asian countries have identified national focal agencies for implementing road safety action plans, more detailed responsibilities also need focal points. Less than half of the countries in the region have identified funds to implement their road safety strategies.

Targets and ambitions also need to increase and expand. In the last two decades, Asian countries have added a billion vehicles to the road, and projections suggest that countries will motorize further. However, it is concerning to note that only 68% of the countries in the region have legislation on periodic vehicle technical inspection.

Also, considering the import of used vehicles in developing countries, only 56% of the developing countries in the region have high-quality standards for used vehicle imports.

Measures—and their implementation—matter. The case of the Republic of Korea, which now leads Asia in terms of progress towards the 2030 target, shows that regulations backed by effective implementation can result in significant impact, saving lives and reducing serious injuries.

Broader uptake of monitoring mechanisms is also crucial for elevating our collective awareness of road safety, particularly for low- and middle-income countries.

The Asian Transport Observatory, for example, has developed road safety profiles for Asian economies. These can support the monitoring of progress towards the implementation of the Global Plan for the Decade of Action for Road Safety 2021-2030.

The overall road safety landscape in Asia presents progress but also persistent challenges. We need to turn incremental improvements into transformative actions. This includes boosting investments and standards for safer infrastructure; strengthening and enforcing regulations for ensuring safe vehicles, securing sustainable financing to implement road safety strategies; strengthening institutional capacities and accountability; and enhancing monitoring systems.

We are at a turning point, not just a checkpoint, towards achieving the collective goal towards reducing road fatalities.

This blog post is related to 4th Global Ministerial Conference on Road Safety, which assesses the progress in implementing the Global Plan for the Decade of Action for Road Safety 2021-2030. The plan aims to achieve a 50% reduction in road traffic fatalities by 2030. Sudhir Gota, Co-Team Lead, Asian Transport Observatory, contributed to this article.

MIL OSI Economics –

February 14, 2025
MIL-OSI: Biz2Credit Small Business Earnings Report Finds SMB’s Average Earnings Dropped Nearly $10K in January 2025
Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 13, 2025 (GLOBE NEWSWIRE) — Biz2Credit today released its monthly Small Business Earnings Report for January 2025, which revealed that average monthly earnings were $32,300, the lowest level recorded in the past 36 months of data analyzed in the report. While average monthly revenues increased to $758,100, expenses rose to $725,800, their highest level since Biz2Credit began tracking the earnings data of small businesses in January 2022.

“The Biz2Credit Small Business Earnings Report for January 2025 shows us that even though revenue is climbing for small businesses, rising costs are eating into their earnings,” said Rohit Arora, CEO and co-founder of Biz2Credit, who oversaw the research. “January is usually a tough month for small businesses as consumers typically pay off holiday expenditures and scale back expenditures.”

“The challenge for small businesses owners is whether or not expenses will continue rising at a higher rate than revenues. If and when the Trump administration makes headway in battling inflation, which was 3% in January, SMB earnings should rise again,” Arora added. “While some small business owners may raise prices, some industries, such as restaurants hurt by the soaring price of eggs, may risk losing customers by doing so.”

The report summarizes financial data of companies that applied for financing via Biz2Credit and provides an examination of the financial health of small businesses by analyzing primary data submitted by small to midsized firms in the U.S. that uploaded on Biz2Credit’s award-winning digital funding platform each month.

Key Findings for January 2025
- Average Monthly Earnings: $32,300. (Dec. 2024: $42,100 – a decrease of nearly $10,000)
- Average Monthly Revenue: $758,100. (Dec. 2024: $747,500 – an increase of $10,600)
- Average Monthly Expenses: $725,800. (Dec. 2024: $705,400 – an increase of $20,000+)
A year ago, in January 2024, average revenues were $588,500; average expenses were $512,000; and average earnings were $76,500, more than double the figure of January 2025, a year later.

Biz2Credit is continuing to monitor the revenues and earnings of the tens of thousands of companies that apply for financing on the online platform each month to provide one of the most up-to-date readings on small business health currently available.

The data is drawn from applications submitted on Biz2Credit’s award-winning financing platform each month. Click to review the Small Business Earnings Report. Each month the report will showcase the financial performances of small businesses in terms of changes in average revenue and expenses.

Methodology
Biz2Credit examines a number of small business financial metrics in the Small Business Earnings Report, including annual revenue, operating expenses, age of business, credit score, approval rate, and funding rate. Data is drawn from over 100,000 completed financing applications submitted to Biz2Credit’s online small business funding platform between Jan. 2022 and Dec. 2024. (The numbers were extracted from non-PPP loan applications.)

About Biz2Credit
Founded in 2007, Biz2Credit has helped thousands of companies access more than $10 billion in small business financing. The company is expanding its industry-leading Biz2X technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit www.biz2credit.com, LinkedIn, Instagram, Facebook, and X (formerly Twitter).

####

Editor’s Note: A spreadsheet of three years’ worth of earnings data is available upon request.

Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com

The MIL Network –
February 14, 2025
MIL-OSI: ThinkMarkets Celebrates Its 15-year Anniversary
Source: GlobeNewswire (MIL-OSI)

LONDON, Feb. 13, 2025 (GLOBE NEWSWIRE) — ThinkMarkets, a globally recognized leader in multi-asset online trading, is celebrating 15 years of serving traders worldwide. For over a decade, the broker has provided traders in more than 165 countries with a premium trading experience, combining best-in-class charting, execution, and a multi-asset trading product mix into one offering. To mark this milestone, ThinkMarkets is launching initiatives to thank the people who have been instrumental in its journey and success.

Advancing Global Trading Since 2010
Since its inception, ThinkMarkets has continuously enhanced the trading experience with its innovative platform, ThinkTrader. Continuous investment in server infrastructure and a strong focus on implementing cutting-edge technology have positioned ThinkMarkets at the forefront of the industry, with a commitment to innovation driving its evolution.

Recognizing People and Progress
ThinkMarkets’ growth has been driven by the support of its traders, partners, and employees around the world. To acknowledge their contributions, the company is launching a series of initiatives, including:
- Competitions and giveaways: A year-long calendar of events, competitions, and prizes.
- Media interviews: Exclusive interviews with long-standing personnel, instrumental to the company’s success.
- Reward incentives: New initiatives bring added benefits to its clients and partners.
Commenting on the milestone, Nauman Anees, Co-CEO of ThinkMarkets, said:
“ThinkMarkets started with a vision to build a global financial market trading platform that empowers clients with the best technology. Over the past 15 years, we’ve grown into a global brokerage with a presence in over 165 countries, serving all types of traders. To celebrate this major milestone, we’re launching a series of initiatives that honor our journey and achievements. As we mark 15 years, our commitment to innovation, transparency, and client satisfaction remains clear and will always be at the core of our approach.”

To learn more about its 15-year anniversary, users can visit thinkmarkets.com.

About ThinkMarkets
ThinkMarkets is a global, multi-regulated online brokerage established in 2010, offering clients quick and easy access to 4,000+ CFD instruments across FX, indices, commodities, equities, and more. ThinkMarkets has offices in London, Melbourne, and Tokyo, and hubs in the Asia-Pacific, Europe, and South Africa. It also operates with several financial licenses around the globe and delivers some of the industry’s most recognized trading platforms, including its award-winning platform, ThinkTrader.

Contact

ThinkMarkets
pr@thinkmarkets.com

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/efcfd4c2-f03e-4bbd-a157-b7d74a91c387

The MIL Network –
February 14, 2025
MIL-OSI: Altus Group Releases its Q4 2024 Pan-European Dataset Analysis on CRE Valuation Trends
Source: GlobeNewswire (MIL-OSI)

LONDON, Feb. 13, 2025 (GLOBE NEWSWIRE) — Altus Group Limited (“Altus”) (TSX: AIF), a leading provider of asset and fund intelligence for commercial real estate (“CRE”), today released its Q4 2024 Pan-European dataset analysis on European property market valuation trends.

Each quarter, Altus Group centralizes and aggregates CRE valuation data for the European market, pulling insights into the factors driving commercial property valuations. The Q4 2024 aggregate dataset included Pan-European open-ended diversified funds, representing €29 billion in assets under management. The funds cover 17 countries and primarily span the industrial, office, retail and residential property sectors.

“The latest data across the Pan-European valuation dataset suggests that real estate markets in parts of Europe are entering a recovery phase, with values now rising for two consecutive quarters after two years of declines,” said Phil Tily, Senior Vice President at Altus Group. “The industrial and residential sectors led the rebound in the fourth quarter of 2024, with yield stabilization and improving cashflows signalling a more positive market outlook moving forward.”

Commercial property values across the Pan-European valuation dataset increased for the second consecutive quarter in Q4, rising 0.8% over Q3, with all sectors seeing gains, albeit with a mixed set of results from a yield and cashflow perspective. Values rose 0.4% overall in 2024, as gains in Q3 and Q4 offset declines from the first half of the year, driven mainly by industrial, residential, and other property categories.

Key highlights by sector include:
- Industrial: The industrial sector was the top performer in Q4 with a 1.0% value increase over Q3 2024 and 1.6% annually. The improvement was supported by a positive pricing adjustment with yields declining, although cashflow fundamentals eased as rental growth slowed during the back end of the year. The largest valuation gains were reported in Germany.
- Residential: Residential values rose by 0.9% in Q4 and 1.4% for the full year – both above average. The improvement was driven by comparatively strong cash flow fundamentals with above-average rent growth. Values in the two largest residential markets in the dataset, the Netherlands and Germany, continued to strengthen, increasing 1.0% and 0.8% respectively in the quarter.
- Office: Office values rose 0.8% over Q3 2024, up for two consecutive quarters now. Further yield expansion, reflecting ongoing investor caution towards the sector, was counterbalanced by strengthening cashflow resulting in office values continuing to rise over the quarter. Sweden was the standout performer in this sector in Q4.
- Retail: After leading performance in Q3 2024, the retail sector saw only modest growth in Q4, with values still rising 0.3%. Rising yields held back values for high street stores and shopping centres, while falling yields for retail warehouses helped boost values by 1.9%.
- Other: Outside of the main sectors, hotels had another strong quarter, with positive investor sentiment driving yield improvements and above-average value growth.
For detailed review of the sector trends by asset class, please click here.

About Altus Group

Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services. Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle. Altus Group is a global company headquartered in Toronto with approximately 1,900 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit www.altusgroup.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Elizabeth Lambe
Director, Global Communications, Altus Group
+1-416-641-9787
elizabeth.lambe@altusgroup.com

The MIL Network –
February 14, 2025

MIL-OSI: Ormat Technologies Awarded Tolling Agreements for Two Energy Storage Facilities in Israel

Source: GlobeNewswire (MIL-OSI)

RENO, Nev., Feb. 13, 2025 (GLOBE NEWSWIRE) — Ormat Technologies Inc. (NYSE: ORA), (“Ormat” or the “Company”) a leading geothermal and renewable energy technology company, today announced that it has won a tender issued by the Israeli Electricity Authority and has been awarded two separate 15-year tolling agreements for two Energy Storage facilities. The facilities under the tolling agreements are expected to have a combined capacity of approximately 300MW/1200MWh.

These projects are developed in partnership with Allied Infrastructure LTD (“Allied”), a leading infrastructure company in Israel. The ownership of the projects will be shared, 50/50 between Ormat and Allied. This marks Ormat’s and the partnership’s first major entry into the Israeli utility scale energy storage market. The partnership intends to develop this activity and develop additional Energy Storage facilities.

The parties are in advanced stages of obtaining the interconnection for the two projects, and the necessary land use permits ahead of starting construction. Commercial operation date is expected during 2028. The tolling agreement includes an option for termination of the initial contract and move to participation in the merchant market.

“We are delighted to announce the award of these two tolling agreements, marking another key strategic milestone for our growing Energy Storage business,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “These long-term agreements highlight our team’s ability to advance and execute Ormat’s Energy Storage portfolio expansion strategy. The tolling agreements for these two assets will further enhance the Company’s portfolio profitability and add stability to margin performance, each a key element of our growth strategy in our storage business.”

Blachar concluded, “These energy storage contracts mark the Company’s first owned project in Israel, and we look forward to continuing to work with Allied as Ormat’s capabilities and assets will now help drive Israel’s efforts to achieve its renewable energy and energy continuity goals.”

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1.5GW with a 1.2GW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

ABOUT THE ISRAELI ELECTRICITY AUTHORITY

The Israeli Electricity Authority is a government authority charged with providing utility services, setting tariffs, regulation, and oversight of the electricity market in Israel.

ABOUT ALLIED INFRASTRUCTURE LTD

Allied Infrastructure LTD is a multi-disciplined specialist contractor working primarily in the Airports, Highways, Defense and Construction sectors. Allied is delivering innovative and quality services using specially developed materials to offer complete solutions to preserve, protect, maintain and restore infrastructure assets, especially in the airside environment.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 23, 2024, and in Ormat’s subsequent quarterly reports on Form 10-Q that are filed from time to time with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Ormat Technologies Contact:
Smadar Lavi
VP Head of IR and ESG Planning & Reporting
775-356-9029 (ext. 65726)
slavi@ormat.com

Investor Relations Agency Contact:
Joseph Caminiti or Josh Carroll
Alpha IR Group
312-445-2870
ORA@alpha-ir.com

The MIL Network –

February 14, 2025

MIL-OSI United Kingdom: Partnership work leads to trader sentencing in illegal tobacco crackdown

Source: City of Stoke-on-Trent

Published: Thursday, 13th February 2025

A trader in Stoke-on-Trent has been sentenced following a crackdown on illegal tobacco.

The operation was thanks to partnership working between Stoke-on-Trent City Council’s Trading Standards team and Staffordshire Police.

Ismail Mohammed, who ran ‘Waterloo Stores’ at 80 Waterloo Road, Burslem, received a nine-month suspended sentence, 100 hours of unpaid work, and had his tobacco and cash seized.

The sentencing took place on Wednesday, 6 February 2025, at Stoke-on-Trent Crown Court, following Mr. Mohammed’s conviction on 8 July 2024. He pleaded guilty to the possession of criminal property (£6,310 in cash) and to entering into an arrangement to acquire, use, or control criminal property – in this case counterfeit and non-duty-paid tobacco.

It follows a successful investigation which began in 2019, into illegal tobacco sales at the shop, leading to a raid on residential properties in Hanley.

Officers seized 1,390 packs of illegal cigarettes and £17,000 in cash. Undercover test purchases also confirmed illegal tobacco sales at the Waterloo Road store.

Councillor Amjid Wazir OBE, cabinet member for city pride, enforcement and sustainability at Stoke-on-Trent City Council said: “This case is another great example of partnership work making Stoke-on-Trent a safer place. The work carried out by our Trading Standards team sends a clear message—illegal tobacco sales will not be tolerated. Those involved in the storage, distribution, or sale of illicit tobacco will face serious consequences.

“The trade in illegal tobacco harms legitimate businesses, provides a cheap source of cigarettes for children and young people, and undermines efforts to reduce smoking rates. Illegal tobacco sales are also often linked to wider criminal activity.

“Our message is clear, those engaging in crime will be held accountable. We are committed to making Stoke-on-Trent a greener, fairer, cleaner, and safer city for all.”

Inspector Victoria Ison, from the Stoke North local policing team, said: “We are pleased to support the local authority and Trading Standards in their work to disrupt the sale of illegal tobacco and cigarettes.

“These items not only risk public health, but also have a significant impact on legitimate sellers and local businesses who are operating within the law.

“We hope the outcome reassures the community we are committed to working with partners to tackle this issue and associated criminality.”

Mr. Mohammed had previously been prosecuted for selling counterfeit cigarettes at another Stoke-on-Trent shop, where he was fined.

Anyone concerned about illegal tobacco, underage sales, or restricted products such as knives and vapes can report them through the Trading Standards hotline at 01782 238444 or visit www.stoke.gov.uk/tradingstandards

MIL OSI United Kingdom –

February 14, 2025
MIL-OSI Russia: Tatyana Golikova: The goal of the national project “Personnel” is to coordinate the efforts of educational institutions, employment centers, companies and the state

Translartion. Region: Russians Fedetion –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Deputy Prime Minister Tatyana Golikova addressed the participants, guests and organizers of the “Personnel” forum with a video greeting.

Welcome speech by Tatyana Golikova to the participants, guests and organizers of the forum “Personnel”

14 hours ago

Dear colleagues!

I am pleased to welcome you to the “Personnel” forum as part of the now traditional Russian Business Week, organized by the Russian Union of Industrialists and Entrepreneurs.

Russian President Vladimir Vladimirovich Putin has repeatedly emphasized: “Human resources are an absolute value that must be treated responsibly, protected, strengthened, and resources and investments must be invested in this area.”

Competent, skilled, and dedicated employees are always important. But today, when our country faces the challenges of technological leadership and industrial sovereignty, the team literally becomes the defining resource.

Over the past few years, the labor market has undergone dramatic changes. Demographics, the growth of labor-intensive industries, and the established labor productivity have significantly influenced the transformation of the labor market and the formation of its new model. Demand for employees will grow, while the unemployment rate will remain at a historical minimum.

The answers to these challenges cannot be found in education, employment or business alone.

In order to provide the economy with in-demand specialists, a new national project, “Personnel,” was launched this year on the instructions of the President. Its goal is to coordinate the efforts of educational institutions, employment centers, companies, and the state.

The national project includes four federal projects: “Labour Market Management”, “Education for the Labour Market”, “Active Measures to Promote Employment” and “Labour Person”. Their implementation over the next six years will allow the necessary labour resources to be involved in the economy.

A lot of work has been done to form a forecast of personnel needs for a five-year period. According to our estimates, the Russian economy’s need for personnel up to 2030 is 3.1 million people. The greatest growth is expected in manufacturing (more than 703 thousand people), transportation and storage (about 472 thousand people) and construction (more than 385 thousand people).

The need for personnel arises not only in connection with the opening of new jobs, but also in connection with the need to replace those specialists who are retiring. Therefore, it is necessary to plan work not only based on the formation of a reserve for development plans, but also taking into account the age composition of workers, competition between industries and forms of employment.

From the forecast we see that skilled workers are becoming the most valuable labor reserve. Specialists with secondary vocational education account for 70% of the replacement demand of the labor market.

The forecast of personnel needs will become the basis for the formation of control figures for admission to the system of secondary and higher education. And our task is to build a flexible, effective system of training specialists to meet the demands of the economy. Young specialists must be as prepared as possible for the beginning of their working career.

We have launched a system for monitoring graduate employment and are developing a program for individual support for students. This will help to form the necessary internship and practice base for students during their studies, to get acquainted with enterprises, and to find an employer.

We are improving the labor market management system by transforming employment centers into “Work of Russia” personnel centers. They are becoming full-fledged partners of employers in building teams and personal consultants for those wishing to build a career. This year, comprehensive modernization will take place in 17 regions, and by the end of 2028, the entire employment service system in the country will be updated.

Simply selecting vacancies is not relevant now, our task is to give enterprises the opportunity to create strong and effective teams. There are all the tools for this – targeted training, hiring subsidies, assistance in equipping workplaces for people with special needs, free retraining for adults – we carried it out within the framework of the national project “Demography” (in six years we covered almost 1 million job seekers) and will continue within the framework of the national project “Personnel”, orienting programs directly to the order of employers.

Today, the Government is implementing projects to increase the prestige of sought-after professions. Measures to support the sphere of corporate training are being developed. From this year, we intend to co-finance training in corporate and training centers of enterprises. We are conducting systematic work to find sources and select specialists for the needs of our economy.

Achieving the goals of ensuring the economy’s personnel sovereignty, as I have already said, is only possible in partnership. And we are counting on a number of actions from employers.

We see and welcome a consistent increase in wage levels, as well as an increase in labor productivity with concern for the preservation of human resources.

The involvement and active participation of employers in personnel training – participation in career guidance work, inclusion in the procedure of targeted training, the formation of a responsible personnel order through a forecast of personnel needs – all this will allow us to set up systemic work to prepare a sufficient number and quality of specialists.

And of course, the most important issue is the joint promotion of in-demand professions.

Taking this opportunity, I would like to remind you: starting this year, on the instructions of the President, we are rebooting the All-Russian competition of professional skills “Best in Profession”. Its regional stages will start already in the spring. This year, 19 nominations are dedicated to in-demand blue-collar professions, and a special nomination – “Second Start” – will allow everyone who has retrained in blue-collar professions to participate. I invite your teams to participate in this competition.

I wish all participants, guests and organizers of the forum meaningful discussions, the conquest of new professional heights and the achievement of the most ambitious goals for the benefit of our country and its citizens!

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

February 14, 2025
MIL-OSI Russia: HSE University Discusses Academic Development Tools and Ways to Engage Young People in Science

Translartion. Region: Russians Fedetion –

Source: State University Higher School of Economics – State University Higher School of Economics –

© Higher School of Economics

A round table was held on the topic of “Academic Development at the University Today and Tomorrow”. Its participants discussed the tools of academic development used in various subject areas and ways of involving young people in science, one of which is holding regular scientific seminars. The best practices of HSE departments were presented.

Vice-Rector Alexander Balyshev noted in his opening remarks that the relevance of the roundtable topic is due to the current shortage of personnel both in the academy and in the economy as a whole, and one of its tasks is to rethink the relevance of the academic development tools that exist at HSE.

The moderator of the round table, Deputy Vice-Rector, Head of the HSE, spoke about the challenges of academic development and the HSE’s responses to these challenges. Office of Academic Development Anastasia Stepanova. She emphasized that the concept of academic development has been relevant for the last 30-40 years and is associated with the changing role of the university in society. The main task of academic development is considered to be providing support to scientists to improve their competence and ensure confidence in their identity.

According to Anastasia Stepanova, academic development at HSE supports the implementation of the university’s strategy, creates conditions for the growth of scientific schools and helps to respond to external challenges. In addition to its strategic importance, it has a positive effect on organizational efficiency, promotes personnel development and gives the university institutional advantages, enhancing its competitiveness.

Among the most popular tools for academic development, the Deputy Vice-Rector noted seminars and consultations on academic writing, an academic development program for new teachers and researchers (Academic personnel reserve), mentoring, postdoc programs, as well as various adaptation and integration events for scientists. Based on regular internal monitoring data, it showed clearly expressed needs of scientists: about 40% of respondents are interested in new opportunities to exchange experience with colleagues from other universities, 34% – in expanding access to databases, 25% – in improving scientific communication. The youngest researchers naturally demonstrate a demand for data analysis and academic writing skills.

Zoomers and Science

The main topic of discussion in the first part of the round table was the challenges arising in connection with the arrival of the zoomer generation in science.

The head of the department noted a significant gap between the classical approach to scientific work and the new habits of the younger generation of researchers. Scientific Laboratory of Spatial-Econometric Modeling of Socio-Economic Processes in Russia Olga Demidova. While building a scientific reputation traditionally requires deep immersion in the material and long, painstaking work, today’s young scientists are increasingly turning to artificial intelligence tools to speed up the research process. This poses an important challenge for the scientific community: how to combine modern ways of working with information with the depth of scientific research.

Deputy Dean for Science Faculty of World Economy and World Politics Alexandra Morozkina suggested specific ways to do this, such as organizing discussions of articles at scientific seminars (and then students will have to read them from beginning to end), holding seminars without gadgets. She also spoke about a program for attracting scientific assistants to the faculty, within the framework of which a student helps a teacher in his scientific work for a small fee and sees the benefits of such work. All students who have gone through this program go on to teach and participate in various projects of the faculty.

Supervisor Schools of Philological Sciences Evgeny Kazartsev recalled two large projects dedicated to speech practices and the sociology of literature, which were successfully implemented by the school. They included a significant digital component, and, in his opinion, without the participation of zoomers who know how to use digital tools, the projects would not have taken place.

Dean Faculty of Geography and Geoinformation Technologies Nikolay Kurichev believes that earlier, when choosing scientific activity, young people clearly understood its differences from work in business or in the civil service, where the rules are stricter, but now, as science is becoming “managerialized,” the difference is becoming less obvious. But it should be there, and this is, first of all, interaction with a mentor, a scientific supervisor, as well as an environment – “seminars where crazy people who are burning with scientific ideas should gather.”

Continuing the theme of differences between academia and business, Vice Dean for Research Faculty of Computer Science Alexey Mitsyuk reported that the IT industry today differs very little from the scientific environment. Large companies are increasingly engaged in computer science, and the conditions created in these companies today are no worse than in universities. There is freedom to choose tasks, opportunities for development, there is no need to work with students and engage in organizational activities. For universities, this is a problem, since competition with business research arises.

Deputy Director Department of Data Analysis and Artificial Intelligence Vasily Gromov outlined the trends in the transformation of science and scientific activity. He noted that in the near future a scientific market will be formed in which the university will lose its monopoly status. At the same time, society will change its understanding of what a scientist does, and perhaps the concept of disciplinarity will disappear.

First Vice-Rector Vadim Radaev emphasized that young people, starting with millennials, are increasingly abandoning a linear professional trajectory — they change professions and consider it indecent to sit in one place for more than three or four years. “Academic activity, as we are accustomed to seeing and building it, involves long-term investments and full immersion with a long-term building of a scientific reputation and unclear prospects. And young colleagues burn out before they have time to shed light on anything,” he explained.

Vice-Rector Sergey Roshchin focused on the topic of goal-setting in academic development: “As a rule, we do not raise this issue, but only support it with some data, such as statistics on published articles. However, the goals of academic development are contextual in nature from the point of view of the society around us and should not be limited to publication activity alone.”

As for the claims about the peculiarities of zoomers, both a hundred and two hundred years ago, representatives of the older generation claimed that the next generation was not like them. According to the vice-rector, the key question is what is the value of science so that the younger generation continues to study it within the walls of the university. “Science studies are not studies that interest you now, but studies based on the current agenda in society, in combination with what interests you,” he concluded.

Scientific seminars: constancy, obligation, regularity

The second part of the round table was devoted to involving young people in scientific discussion. Vadim Radaev, who made the key report on this topic, noted: “First of all, we need to have this discussion, especially since real discussions are extremely rare on the pages of journals.” A regular scientific seminar becomes a platform for it.

In his report, the First Vice-Rector of the HSE emphasized that seminar activities are not an addition or an appendix, but part of the foundation, one of the main forms of work. “I believe that a scientific department without a regular seminar is an institutional fiction: individual scientists conduct research and publish results, but the integrity of the organization, the environment that should form scientists, remains more on paper,” he said.

The speaker shared his experience in organizing scientific seminars Department of Economic Sociology And Laboratory of Economic and Sociological Research (LESI), which he heads. His departments have held scientific seminars weekly since 2002, and he does not consider this to be anything extraordinary. Even if not weekly, then a monthly seminar should be the norm for any scientific community. Anyone can organize a seminar, but it is difficult to do so on a regular basis. “Many great projects started and then, unfortunately, died out,” Vadim Radaev noted. In his opinion, a seminar should have a permanent core, be mandatory, be held regularly (at least once a month) and in person (a hybrid format is possible), have a fixed day, time and plan for at least two to three months, be announced in advance and not be postponed.

Vadim Radaev believes that the topic of the seminar is not the main thing: the speakers are more important. He emphasized that only full texts of research should be discussed, and materials should be sent to participants at least a week in advance. It is advisable to invite discussants to the seminar, make uniform demands on all colleagues from students to professors, and gently and persistently observe the rules so that the seminar does not turn into, for example, a benefit performance for the speaker.

According to Vadim Radaev, the value of a scientific seminar lies primarily in communication. This is a good way to create and maintain an environment, an opportunity to interest and retain young colleagues who, as noted in the first part of the round table, are today prone to a rapid loss of interest in science.

Other HSE employees also spoke about their successful experience of participating in scientific seminars and organizing them.

Dean Faculty of Computer Science Ivan Arzhantsev recalled that mathematics in the USSR, which flourished in the 1960s and 1970s, lived by scientific seminars. At the same time, work was organized differently in foreign universities. “Colleagues envied us that we had such a wonderful culture of scientific seminars,” said the dean of the Faculty of Computer Science. He himself participated in one of these seminars, and now the faculty holds a mathematical seminar every two weeks.

Head of the Department of Mathematics Faculty of Economic Sciences Fuad Aleskerov spoke about two scientific seminars that he leads, one of which has been held for 60 years, including more than 20 years at the HSE. In his opinion, seminars should not be limited in time; it is quite acceptable if they last for four hours.

Referring to his experience working in foreign universities, the dean Faculty of Social Sciences Denis Stukal reported that scientific seminars there can take place both in the form of formal discussions – traditional regular meetings of scientists, and in the form of informal discussions – for example, meetings and discussions of scientific ideas over lunch. In his opinion, organizing a seminar should be a common matter for all employees of the department, who are responsible for this periodically.

Professor Elena Dragalina-Chernaya shared her experience of holding regular seminars in International Laboratory of Logic, Linguistics and Formal Philosophy. There are five of them in the laboratory: theoretical, analytical, reading seminar and two scientific and educational seminars. She believes it is important to support the initiatives of young researchers and give them their own space for discussions. The professor emphasized that long-term internships for young scientists are important for the development of international and interdisciplinary projects.

Summing up the round table, Alexander Balyshev said that its participants demonstrated a demand for updating the goal-setting of academic development at the university. He also noted the need to communicate to target groups, especially young researchers, information about the opportunities opening up to them and stated that scientific seminars are still a relevant and mandatory component of the work of all scientific departments of the HSE.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

February 14, 2025

MIL-OSI: Himax Technologies, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results; Provides First Quarter 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

Q4 2024 Revenues, Gross Margin and EPS All Surpassed Guidance Range Issued on November 7, 2024
Company Q1 2025 Guidance: Revenues to Decrease 8.5% to 12.5% QoQ,
Gross Margin is Expected to be Around 30.5%. Profit per Diluted ADS to be 9.0 Cents to 11.0 Cents

Q4 2024 revenues registered $237.2 million, an increase of 6.7% QoQ, significantly exceeding guidance range of a slight decrease to flat, primarily driven by stronger order momentum across product lines
Q4 2024 Gross margin reached 30.5%, exceeding guidance of flat to slightly up, driven by a favorable product mix and cost improvements. Up from 30.0% in the Q3 2024
Q4 2024 after-tax profit was $24.6M, or 14.0 cents per diluted ADS, considerably above the guidance range of 9.3 cents to 11.0 cents
Company’s full year 2024 revenues were $906.8 million, and gross margin was 30.5%. 2024 profit attributable to shareholders was $0.46 per fully diluted ADS
Company’s Q1 2025 revenues to decline 8.5% to 12.5% QoQ, reflecting the low season demand due to Lunar New Year holidays. The Q1 revenue guidance implies flat to 4.6% increase YoY. Gross margin to be around 30.5%, up from 29.3% same quarter last year. Profit per diluted ADS to be in the range of 9.0 cents to 11.0 cents, implying the increase of 26% to 54% YoY
Himax sales revenues in each quarter of 2024 consistently outperformed guidance, demonstrating its ability to handle most of rush orders, underscoring its strong ability in inventory management and swift market responsiveness
Full year 2024 automotive driver IC sales increased nearly 20% YoY, significantly outpacing global automotive growth, largely driven by the continued TDDI adoption among major customers across all continents. Himax continues to reinforce its market leadership in automotive TDDI, holding well over 50% market share
Himax’s WLO technology plays a critical role in CPO by providing essential optical coupling capability, making it a core element of the solution. Small-scale production of the first-gen CPO underway, with acceleration of future CPO generation development, in close collaboration with AI customers/partners. Company believes prospect of CPO remains unchanged
WiseEye, building on the success with Dell, has achieved notable progress with other leading NB brands. Also made breakthroughs in smart door lock, palm vein authentication and smart home. Himax anticipates a strong growth trajectory in WiseEye business in 2025 and beyond
At CES 2025, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI, and advanced optical technologies for AR/VR
Rising enthusiasm in AR glasses with Gen AI in CES 2025. Himax offers three critical technologies for AR glasses, namely LCoS microdisplay, WLO waveguide, and ultralow power WiseEye AI
Himax is well-positioned to capitalize on the trend of the premium NB to adopt OLED displays and touch features. Confident to lead in the rapidly evolving landscape of AI PCs and premium NB, offering a comprehensive IC portfolio for both LCD and OLED NB

TAINAN, Taiwan, Feb. 13, 2025 (GLOBE NEWSWIRE) — Himax Technologies, Inc. (Nasdaq: HIMX) (“Himax” or “Company”), a leading supplier and fabless manufacturer of display drivers and other semiconductor products, announced its financial results for the fourth quarter and full year 2024 ended December 31, 2024.

“In 2024, our sales revenues in each quarter consistently outperformed guidance. We have consistently demonstrated our ability to handle most of rush orders, underscoring our agility, adaptability, strong capabilities in inventory management, and swift market responsiveness,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax.

“At CES this year, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI, and advanced optical technologies for AR/VR. Notably, a clear trend emerged at this year’s CES as the industry demonstrated growing enthusiasm for AR glasses, fueled by more companies entering the space and integrating generative AI to accelerate the development of lightweight, compact, and all-day AR glasses. For AR glasses, Himax offers three critical technologies, namely LCoS microdisplay, WLO waveguide, and ultralow power WiseEye AI,” continued Mr. Jordan Wu.

“Himax’s WLO technology plays a critical role in CPO by providing essential optical coupling capability, making it a core element of the solution. The prospect of CPO remains unchanged and the widespread adoption of CPO for data transmission to be conducted via optics instead of metal wire is on track in high-performance AI applications. Through WLO and CPO technologies, Himax is well-positioned to engage in the high-speed AI computing market with high expectations for its growth,” concluded Mr. Jordan Wu.

Fourth Quarter 2024 Financial Results

Himax net revenues registered $237.2 million, an increase of 6.7% sequentially, significantly exceeding Company’s guidance range of a slight decrease to flat, and up 4.2% year-over-year. Gross margin reached 30.5%, exceeding its guidance of flat to slightly up from 30.0% in the previous quarter, and up from 30.3% in the same period last year. The sequential increase was driven by a favorable product mix and cost improvements. Q4 profit per diluted ADS was 14.0 cents, considerably above the guidance range of 9.3 cents to 11.0 cents, thanks to better-than-expected revenues and improved costs.

Revenue from large display drivers came in at $25.0 million, reflecting a 18.6% sequential decline. The decrease was primarily attributed to continued customer destocking after substantial Q2 replenishment for shopping festivals, as well as heightened price competition from Chinese peers. Sales of large panel driver ICs accounted for 10.5% of total revenues for the quarter, compared to 13.8% last quarter and 14.8% a year ago.

Small and medium-sized display driver segment totaled $166.8 million, an increase of 7.4% sequentially, exceeding its guidance of flat quarter-over-quarter, thanks to stronger-than-expected sales in the automotive and tablet markets. Q4 automotive driver sales, including both traditional DDIC and TDDI, experienced mid-teens increase, significantly outperforming Company’s expectation of a single digit increase, with both DDIC and TDDI showing stronger-than-expected sales. This surge was primarily driven by continued rush orders from Chinese panel customers, carried over from Q3, following the Chinese government’s renewed trade-in stimulus initiative announced in mid-August 2024 to boost automobile consumption. Remarkably, Himax’s Q4 automotive TDDI sales have exceeded DDIC sales for the first time, underscoring the global adoption of Company’s TDDI solutions, which are increasingly essential in modern vehicles, and reflects the growing demand for more intuitive, interactive, and cost-effective touch panel features powered by TDDI technology. Himax’s automotive business, comprising drivers, Tcon, and OLED IC sales, accounted for around 50% of total Q4 revenues. Meanwhile, Q4 tablet IC sales exceeded the guidance of a low teens decline, with sales up slightly sequentially driven by rush orders from leading end customers. Q4 smartphone IC sales declined slightly, in line with its guidance. The small and medium-sized driver IC segment accounted for 70.3% of total sales for the quarter, compared to 69.9% in the previous quarter and 71.6% a year ago.

Fourth quarter revenues from its non-driver business reached $45.4 million, exceeding the guidance range, with a 24.9% increase from the previous quarter. The growth was primarily driven by a one-time ASIC Tcon product shipment to a leading projector customer and Tcon for monitor application. In Q4, automotive Tcon sales continued to grow sequentially, due to the widespread adoption of Himax’s market-leading local dimming Tcon with over two hundred secured design-win projects across major panel makers, Tier 1 suppliers, and automotive manufacturers worldwide. Non-driver products accounted for 19.2% of total revenues, as compared to 16.3% in the previous quarter and 13.6% a year ago.

Fourth quarter operating expenses were $49.2 million, a decrease of 19.1% from the previous quarter and a decline of 6.0% from a year ago. The sequential decrease stemmed primarily from a reduction in annual employee bonuses, partially offset by an increase in R&D expenses. As part of Company’s standard practice, Himax grants annual bonuses, including cash and RSUs, to employees at the end of September each year. This results in higher IFRS operating expenses in the third quarter compared to the other quarters of the year. The year-over-year decrease was mainly due to a decline in employee bonus compensation as the amortized portion of prior year’s bonuses for 2023 was higher than that for 2024, offsetting the higher annual bonus compensation grant for 2024 compared to 2023. Amid ongoing macroeconomic challenges, Himax is strictly enforcing budget and expense controls, with full-year 2024 operating expenses declining 5.6% compared to last year.

Fourth quarter operating income was $23.1 million or 9.7% of sales, compared to 2.6% of sales last quarter and 7.3% of sales for the same period last year. The sequential increase was primarily the result of higher sales, improved gross margin, and lower operating expenses. The year-over-year increase was primarily the result of higher sales, higher gross margin, and lower employee bonus compensation due to the amortized portion of the prior year’s bonuses. Fourth-quarter after-tax profit was $24.6 million, or 14.0 cents per diluted ADS, reflecting a meaningful increase from $13.0 million, or 7.4 cents per diluted ADS last quarter, and up from $23.6 million, or 13.5 cents in the same period last year.

Full Year 2024 Financial

Revenues totaled $906.8 million, a slight decline of 4.1% compared to 2023. Persistent global demand weakness, coupled with uncertainty about market trends, led to conservative purchasing decisions and inventory management by Company’s panel customers. Given this uncertainty, Himax implemented strict expense controls, resulting in a 5.6% reduction in operating expenses for the year. However, Company’s optimism in the automotive business remains unwavering, with automotive IC sales increasing by nearly 20% year-over-year in 2024, far outpacing the overall automotive market growth. Among Company’s automotive product lines, automotive TDDI and Tcon sales, both relatively new technologies, surged by more than 70%, driven by accelerated adoption across the board. This growth strengthened Company’s market leadership and positions Himax well for continued success as the automotive sector embraces more advanced technology resulting from the mega trend of increasing size, quantity, and sophistication of displays inside vehicles.

Revenue from large panel display drivers totaled $125.9 million in 2024, marking a decrease of 28.3% year-over-year, and representing 13.9% of total sales, as compared to 18.6% in 2023. Small and medium-sized driver sales totaled $625.4 million, reflecting a slight decrease of 0.6% year-over-year, and accounting for 69.0% of its total revenues, as compared to 66.5% in 2023. Non-driver product sales totaled $155.5 million, an increase of 10.6% year-over-year, and representing 17.1% of Company’s total sales, as compared to 14.9% a year ago.

Gross margin in 2024 was 30.5%, up from 27.9% in 2023. The margin expansion was driven by a strategic focus on cost improvements and operational efficiency optimization, combined with a favorable product mix that included a higher percentage of high-margin products such as automotive and Tcon. The successful diversification of foundry sources also contributed to the margin increase.

Operating expenses in 2024 were $208.0 million, a decline of 5.6% from 2023, primarily due to lower employee bonus compensation, as the amortized portion of bonuses in 2023 was higher than that in 2024. 2024 operating income was $68.2 million, or 7.5% of sales, an increase from $43.2 million, or 4.6% of sales, in 2023. Himax’s net profit for 2024 was $79.8 million, or $0.46 per diluted ADS, significantly up from $50.6 million, or $0.29 per diluted ADS in 2023.

Balance Sheet and Cash Flow

Himax had $224.6 million of cash, cash equivalents and other financial assets as of December 31, 2024. This compares to $206.4 million at the same time last year and $206.5 million a quarter ago. Himax achieved a strong positive operating cash flow of $35.4 million for the fourth quarter, compared to a cash outflow of $3.1 million in Q3. Company made a total of $30.1 million annual cash bonus to employees, resulting in the low operating cash flow of the quarter. As of December 31, 2024, Himax had $34.5 million in long-term unsecured loans, with $6.0 million representing the current portion.

The Company’s inventories as of December 31, 2024 were $158.7 million, lower than $192.5 million last quarter and $217.3 million at the end of last year. Company’s inventory levels have steadily declined over the past couple of quarters and are now at a healthy level. Accounts receivable at the end of December 2024 was $236.8 million, little changed from $224.6 million last quarter and $235.8 million a year ago. DSO was 96 days at the quarter end, as compared to 92 days last quarter and 91 days a year ago. Fourth quarter capital expenditures were $3.2 million, versus $2.6 million last quarter and $15.1 million a year ago. Fourth quarter capex was mainly for R&D related equipment for Company’s IC design business. Total capital expenditures for 2024 were $13.1 million as compared to $23.4 million in 2023. The decrease was primarily due to reduced spending on in-house testers for Company’s IC design business in 2024.

Outstanding Share

As of December 31, 2024, Himax had 174.9 million ADS outstanding, little changed from last quarter. On a fully diluted basis, the total number of ADS outstanding for the fourth quarter was 175.1 million.

Q1 2025 Outlook

In 2024, Himax’s sales revenues in each quarter consistently outperformed guidance. While this strong performance is certainly commendable, it also highlights the challenges Company faced such as limited market visibility and conservative customer demand, where many customers relied on rush orders to address their actual demands. On the other hand, rush orders are indicative of the tight inventory position of Company’s panel customers in general. In the past few quarters, Himax has consistently demonstrated its ability to handle most of such rush orders, underscoring Company’s agility, adaptability, strong capabilities in inventory management, and swift market responsiveness.

The automotive IC sales remained Company’s largest revenue contributor in 2024, accounting for almost half of total revenues and achieving close to 20% annual growth. This performance highlights Himax’s automotive leadership in technological innovations, product development, and market share. Looking ahead, Himax expects its automotive TDDI and Tcon technologies to maintain growth momentum, further strengthening its market competitiveness. Beyond LCD technology, Himax is advancing development in the automotive OLED sector, with numerous projects currently underway in partnership with leading panel makers. Company anticipates that automotive OLED IC will serve as one of the key growth drivers for Himax in the coming years, further solidifying its leadership in automotive display market.

Meanwhile, Himax is actively expanding its technology development beyond display ICs. To that end, in the WiseEye AI segment, Company has made notable progress with leading notebook brands and achieved significant breakthroughs in smart door lock, palm vein authentication, and smart home applications, collaborating with world-leading customers to develop new innovations. Himax anticipates a strong growth trajectory in its WiseEye business in 2025 and beyond.

Himax’s proprietary wafer-level optics (WLO) technology for co-packaged optics (CPO) has recently garnered significant attention in the capital markets. In fact, as early as June 2024, Himax and FOCI, a global leader in silicon photonics connectors, jointly announced the industry-leading CPO technology. The collaboration, spanning several years, unites Himax’s WLO technology with FOCI’s CPO solutions for cutting-edge AI multi-chip modules (MCM). Since the announcement, Himax has provided updates on the latest progress in each quarterly earnings call. Himax’s WLO technology plays a critical role in CPO by providing essential optical coupling capability, making it a core element of the solution. CPO significantly enhances bandwidth and accelerates data transmission while reducing signal loss, latency, and power consumption. Additionally, it can help drastically decrease the size and cost of MCM.

While CPO is still in engineering validation and trial production stage this year, with customer’s mass production timelines undisclosed and the recent AI market disruptions from DeepSeek, the prospect of CPO remains unchanged. The widespread adoption of CPO for data transmission to be conducted via optics instead of metal wire is on track in high-performance AI applications. This is evident by the significant increase in customer’s recent trial production volume forecast, indicating an accelerated timeline for CPO technology to enter mass production. Furthermore, Himax and FOCI, in close collaboration with leading AI customers and partners, are actively developing future generations of CPO technologies to meet the explosive high-speed optical data transmission demand in HPC and AI. Through WLO and CPO technologies, Himax is well-positioned to engage in the high-speed AI computing market with high expectations for its growth. Company believes that CPO technology, beyond cloud applications, will see further adoption in sectors such as automotive and robot in the future. Himax’s current goal is to accelerate CPO adoption in cloud applications, thereby helping drive broader CPO adoption in AI applications.

At CES this year, Himax showcased a wide range of innovative achievements, including automotive display technology, WiseEye AI, and advanced optical technologies for AR/VR. Notably, a clear trend emerged at this year’s CES as the industry demonstrated growing enthusiasm for AR glasses, fueled by more companies entering the space and integrating generative AI to accelerate the development of lightweight, compact, and all-day AR glasses. For AR glasses, Himax offers three critical technologies, namely LCoS microdisplay, WLO waveguide, and ultralow power WiseEye AI. Company’s latest, patented Front-lit LCoS Microdisplay delivers unparalleled brightness with an industry-leading 400k nits, exceptional optical power efficiency, compact form factor, lightweight, and superior display quality, making it one of the most viable solutions in the see-through AR glasses market. In waveguide, in collaboration with leading tech names, Himax leverages proprietary WLO expertise, built on advanced nanoimprint technology, to offer industry-leading optical solutions that optimize light transmission and display efficiency. In the field of AI sensing for AR glasses, Himax’s WiseEye provides always-on AI sensing capabilities which are being applied by developers to significantly enhance AR interactivity while consuming just a few milliwatts of power.

In automotive display IC technology, Himax unveiled the industry’s most comprehensive LCD and OLED solutions at CES, showcasing a range of next-generation smart cabin technologies. These solutions not only improve the intuitive operation of smart cabins but also enhance driving safety and provide an exceptional user experience. A prime example is the advanced Display HMI solution developed in collaboration with AUO which meets the demands for large-size, high-resolution, and freeform automotive displays.

At CES, Himax also partnered with several AI ecosystem partners to showcase its ultralow power WiseEye Modules over a range of innovative, production-ready AIoT applications. These applications include palm vein authentication, baby cry detection, people flow management, and human sensing detection. The modules are designed for easy integration, making it highly suitable for various AIoT applications.

Display Driver IC Businesses

LDDIC

In Q1 2025, Himax anticipates a single digit sequential sales increase for large display driver ICs, driven by demand spurred by Chinese government subsidies for household appliances aimed at reviving demand in the sluggish household sector. Notebook and monitor sales are expected to increase in Q1. In contrast, TV IC sales are set to decline as customers pulled forward their inventory purchases in the prior quarter, coupled with the seasonal slowdown in Q1.

Looking ahead in the notebook sector, Company is seeing an increase in demand for premium notebooks to adopt OLED displays and touch features, partially fueled by the rise of AI PC. Himax is well-positioned to capitalize on this trend, offering a comprehensive range of ICs for both LCD and OLED notebooks, including DDIC, Tcon, touch controllers, and TDDI. A standout innovation is Company’s pioneering in-cell touch TDDI for LCD displays, which improves the ease of system design and integration by embedding the touch controller within the TDDI chip while maintaining the conventional display driver setup for Tcon data transmission. This design simplifies integration for customers, reducing engineering complexity and speeding up product development. This solution also supports high-resolution displays up to 4K and larger screens up to 16 inches, aligning with the growing demand for advanced, visually stunning, and immersive laptops. With mass production already underway for a leading notebook vendor’s AI PC, more projects are lined up. For OLED notebooks, in addition to Company’s OLED DDIC and Tcon solutions, Himax is also developing on-cell touch controller technology, with multiple projects underway with top panel makers and notebook vendors. Last but not least, progress has been made on the next-generation eDP 1.5 display interface for Tcon for both LCD and OLED panels. This interface will support high frame rates, low power consumption, adaptive sync, and high resolution, key features essential for next-generation AI PCs. By delivering innovative, cutting-edge technologies, Himax is well-positioned to lead in the rapidly evolving landscape of AI PCs and premium notebooks.

SMDDIC

On SMDDIC revenue, for the full year 2024, Himax’s automotive driver IC sales, comprising of TDDI and traditional DDIC, increased nearly 20% year-over-year, significantly outpacing global automotive growth, largely driven by the continued adoption of TDDI technology among major customers across all continents. However, Himax anticipates Q1 automotive revenue to decline low teens sequentially, following two quarters of surge demand. Despite this, Q1 automotive sales are still projected to increase by mid-teens on a year-over-year basis. In the automotive TDDI sector, with cumulative shipments significantly surpassing those of Himax’s competitors, Company continues to reinforce its market leadership, which currently stands at well over 50%. With nearly 500 design-in projects secured and a continuous influx of new pipeline and design-wins across the board, of which only 30% already in mass production, Himax expects to sustain this decent growth in the years ahead. While traditional automotive DDIC sales for 2024 declined due to their gradual, partial replacement by TDDI, Company’s DDIC shipment volume still saw a modest increase in the last year. This demonstrates the steady demand for mature DDIC products, such as those used in cluster displays, HUDs, and rear- and side-view mirrors, which do not require touch functionality. Furthermore, the long-term trust and loyalty from Company’s DDIC customers, some of whom have relied on Himax’s solutions for over a decade, is indicative of Company’s strong customer retention. Himax continues to lead the automotive DDIC market, maintaining a global market share of approximately 40%.

Himax continues to lead in automotive display IC innovation by pioneering solutions that deliver superior performance, power efficiency, and enhanced user experiences. As part of this ongoing innovation, Company’s latest TED (Tcon Embedded Driver IC) solution, which combines TDDI with local dimming Tcon into a single chip, provides a cost-effective, flexible, and comprehensive solution for its customers. Another new technology worth highlighting is Himax’s automotive TDDI with advanced user-aware touch control, which differentiates between driver and passenger touches to prevent cross-touch and enhance driving safety. In addition, Company offers a unique knob-on-in-cell-display solution that combines a physical knob with a TDDI. This design seamlessly merges in-cell touch technology with tactile controls, offering drivers a safer, more intuitive interaction that reduces distractions and enhances the overall driving experience.

Moving to smartphone and tablet IC sales, Himax expects a sequential decline in both product lines, as is typical during the low season in Q1 due to the Lunar New Year.

On OLED business update. In the automotive OLED market, Company has established strategic partnerships with leading panel makers in Korea, China, and Japan. As OLED technology extends beyond premium car models, Himax is well-positioned as the preferred partner, leveraging Company’s strong presence and proven track record in the automotive LCD display sector. Capitalizing on Himax’s first-mover advantage, Himax aims to drive the growing adoption of OLED in automotive displays by offering a comprehensive range of solutions, including DDIC, Tcon, and on-cell touch controller. Company believes this positions it as a primary beneficiary of the anticipated shift toward OLED displays for high end vehicles in a couple of years, enabling Himax to capture new growth opportunities and further strengthen its market leadership.

Beyond the automotive sector, Company has also made strides in the tablet and notebook markets, partnering with leading OLED panel makers in Korea and China. Himax’s comprehensive OLED product portfolio, covering DDIC, Tcon, and touch controllers, has driven several new projects that are on track to begin mass production this year. In the smartphone OLED market, Company is making solid progress in collaborations with customers in Korea and China and anticipates mass production to start later this year.

First quarter small and medium-sized display driver IC business is expected to decline low teens sequentially.

Non-Driver Product Categories

Q1 non-driver IC revenues are expected to decrease high teens sequentially.

Timing Controller (Tcon)

Himax anticipates Q1 2025 Tcon sales to decrease mid-teens sequentially, primarily due to the non-recurrence of a one-time ASIC Tcon shipment to a leading projector customer last quarter, as well as a moderation in automotive Tcon shipments following several quarters of strong growth. That being said, Himax maintains an unchallenged position in local dimming Tcon, evidenced by growing validation and widespread adoption in both premium and mainstream car models worldwide. Company is confident in the continued growth of its automotive Tcon business, supported by its strong market presence in local dimming Tcon, with strong pipeline of over two hundred design-win projects set to gradually enter production in the coming years. Heads-up display (HUD) is another field gaining traction within automotive displays, driving increased adoption of local dimming Tcon technology and emerging as a particularly promising application. Himax’s industry-leading local dimming Tcon provides distinct advancements with high contrast ratio and optimized power consumption. It effectively eliminates the “postcard effect” often seen in HUDs, caused by backlight leakage typical of conventional TFT LCD panels, ensuring clear and precise images on the windshield. Additionally, the Tcon features advanced transparency detection to prevent the display from obstructing the driver’s view, thereby ensuring driving safety. Several HUD projects are already in progress, and Himax is excited about the potential opportunities ahead. Company is well positioned for continuous growth in automotive Tcon over the next few years.

WiseEye™ Ultralow Power AI Sensing

On the update of WiseEye™ ultralow power AI sensing solution, a cutting-edge endpoint AI integration featuring industry-leading ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm. WiseEye AI delivers a significant competitive edge in the rapidly growing AI market through its ultralow power consumption and context-aware, on-device AI inferencing that seamlessly integrates vision and other sensing capabilities into endpoint applications, particularly battery-powered devices. This not only enhances intuitive user interaction but also makes AI more practical and accessible. Additionally, WiseEye AI offloads tasks from the main processor, effectively extending battery lifespan and improving overall data processing efficiency. Building on the success with Dell notebooks, Himax WiseEye AI is continuing to expand its market presence, with additional use cases expected across other leading notebook brands, some of which are set for production later this year.

WiseEye also continues to achieve significant market success across various sectors. For smart door lock, Company collaborated with DESMAN, a leading high-end brand in China, to introduce the world’s first smart door lock with 24/7 sentry monitoring and real-time event recording. Building on this achievement, Himax is expanding globally by collaborating with other leading door lock makers worldwide to integrate innovative AI features, including parcel recognition, anti-pinch protection, and palm vein biometric access, further extending application possibilities. Several of these value-added solutions are set to enter production later this year. At CES 2025, Himax joined forces with ecosystem partners to unveil a suite of innovative, production-ready AIoT applications, powered by Company’s tiny form factor, plug-and-play WiseEye Modules. Himax offers a series of modules, each incorporating an ultralow power WiseEye AI processor, an AoS image sensor, and advanced algorithms. The modules feature no-code/low-code AI platform capabilities, simplifying AI integration and supporting diverse use cases, such as human presence detection, gender and age recognition, gesture recognition, face mesh, voice command, thermal image sensing, pose estimation and people flow management. By streamlining deployment and reducing development costs, WiseEye Modules open new opportunities for automation, enhance interactivity, and elevate user experiences across a variety of industries.

A broad range of innovative, ultralow power WiseEye Modules are also under development in collaboration with ecosystem partners, such as crying baby detection, dynamic gesture recognition, and human sensing, among others. One standout in Himax’s WiseEye Module portfolio is the Himax WiseEye PalmVein solution, which has quickly gained traction since its introduction just one year ago. Company has secured multiple design wins, with mass production already underway by a US customer for smart access applications and a Taiwan-based door lock vendor for its leading smart door lock brands. To meet growing customer demand for flexibility across various environments, the upgraded WiseEye PalmVein suite now features bimodal authentication, combining both palm vein and face recognitions. This dual-authentication solution enhances security by offering two layers of biometric verification, which not only increases reliability but also makes it highly adaptable to various environments.

The rise of physical AI agents marks a significant shift in human-machine interaction, enabling devices to perceive, process, and respond to their surroundings in real time. A key emerging trend is the integration of cloud-based large language models (LLMs), which enables these agents’ advanced reasoning and language understanding, enhancing their ability to interact with and adapt to the physical world. Himax WiseEye AI is at the forefront of this revolution, delivering always-on sensor fusion, ultralow power on-device processing, while seamlessly interfacing with LLMs, to provide the essential real-time AI capabilities for next-generation applications. A good illustration of this innovation was showcased at CES 2025, where Himax and Seeed Studio introduced the SenseCAP Watcher, a physical AI agent powered by WiseEye AI. Equipped with vision and audio sensor fusion, along with a speaker, this battery-powered IoT device combines on-device AI with cloud-based LLMs to interpret commands, recognize objects, respond to events, and facilitate real-time interaction. Drawing from the success of SenseCAP Watcher, Himax is actively working on multiple projects leveraging WiseEye AI to further drive advancements in physical AI agent applications.

Separately, Himax is excited about its collaboration with a leading AR player to integrate WiseEye AI into the next generation of AR glasses. At CES, there was a renewed enthusiasm on AR glasses with AI becoming an integral component to enable intuitive and seamless human-device interaction. WiseEye AI addresses two critical challenges in AR glasses, namely real-time responsiveness and power efficiency. For example, WiseEye supports always-on outward sensing, enabling AR glasses to detect and analyze the surrounding environment with real time context-aware AI. This capability powers instant response, real-time object recognition, navigation assistance, translation, and environmental mapping, enhancing the overall AR experience. Notably, WiseEye AI’s exceptional ultralow power consumption, measured in single digit milliwatts, also make it perfectly suited for AR glasses for all-day wear. In another example, Company collaborates with Ganzin on eyeball tracking technology, which, powered by WiseEye, precisely detects subtle eyeball movements, gaze direction, pupil size, and blinking, thereby providing critical data for the enhancement of user interaction in AR glasses.

Wafer Level Optics (WLO)

In June 2024, Himax, in partnership with FOCI, a world leader in silicon photonics connector, unveiled an industry-leading co-packaged optics (CPO) technology, leveraging Himax state-of-the-art WLO technology. This innovation integrates silicon photonic chips and optical connectors within MCM, replacing traditional metal wire transmission with high-speed optical communication. The technology significantly enhances bandwidth, boosts data transmission rates, reduces signal loss and latency, lowers power consumption, and significantly minimizes the size and cost of MCM. In working closely with FOCI, Himax is making significant strides through a solid partnership with leading AI semiconductor companies and foundry, with small-scale production of the first-generation CPO solution already underway. The significant increase in Q1 engineering validation and trial production volume, combined with the anticipated sample volume increases in the coming quarters, is a strong indication that CPO technology is being accelerated toward mass production. In addition, in close collaboration with leading AI customers/partners, Himax is speeding up the development of CPO technology for the next few generations. Himax is more optimistic than ever about the outlook for its WLO business, which is poised to generate significant growth opportunities and become a major revenue and profit contributor in the years ahead.

Alongside the CPO progress, Company is witnessing a rise in engineering collaborations with global technology leaders who are utilizing Himax’s WLO expertise to make advanced waveguides for AR glasses, highlighting the growing recognition of Company’s WLO capabilities.

LCoS

On the update on LCoS, Company recently introduced its industry-leading 400K nits ultra-luminous Front-lit LCoS Microdisplay, setting a new benchmark for brightness with extremely low power consumption of merely 300mW. At CES 2025, Company showcased an AR glasses POC (Proof-Of-Concept) featuring the microdisplay with a third-party waveguide, achieving over 1,000 nits of brightness to the eye. This demonstration highlighted its suitability for outdoor, high ambient light conditions. With a lightweight of just 0.98 grams and ultra-compact form factor of less than 0.5 c.c., combined with excellent color performance, Himax’s Front-lit LCoS Microdisplay is ideal for all-day AR glasses and underscores the technology’s readiness for real-world applications.

Following the recent release of Himax’s 400K nits ultra-luminous Front-lit LCoS Microdisplay, Himax is actively engaged in significant projects through strategic collaborations with industry leaders. Himax’s proven track record of over a decade in LCoS technology, coupled with a history of successful production shipments, highlights Company’s readiness to meet the demands of large-scale production of AR glasses.

First Quarter 2025 Guidance
Net Revenue:	Decrease 8.5% to 12.5% QoQ, Flat to Up 4.6% YoY
Gross Margin:	Around 30.5%, depending on final product mix
Profit:	9.0 cents to 11.0 cents per diluted ADS, Up 26% to 54% YoY

Himax noticed that some peers’ customers placed orders early due to tariff factors, especially in the consumer electronics sector, resulting in Q1 revenue forecasts exceeding normal seasonal demand. In contrast, no similar trend has been observed in the automotive semiconductor market. Since Himax’s automotive business accounts for more than half of its total revenues, Himax’s Q1 revenue forecast has not benefited from tariff factors.

HIMAX TECHNOLOGIES FOURTH QUARTER AND FULL YEAR 2024 EARNINGS CONFERENCE CALL
DATE:	Thursday, February 13, 2025
TIME:	U.S. 8:00 a.m. EST Taiwan 9:00 p.m.

Live Webcast (Video and Audio): http://www.zucast.com/webcast/br8wqbB4 Toll Free Dial-in Number (Audio Only):
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Dial-in Number (Audio Only):
	Taiwan Domestic Access 02-3396-1191 International Access +886-2-3396-1191
Participant PIN Code: 3329013 #

If you choose to attend the call by dialing in via phone, please enter the Participant PIN Code 3329013 # after the call is connected. A replay of the webcast will be available beginning two hours after the call on www.himax.com.tw. This webcast can be accessed by clicking on this link or Himax’s website, where it will remain available until February 13, 2026.

About Himax Technologies, Inc.
Himax Technologies, Inc. (NASDAQ: HIMX) is a leading global fabless semiconductor solution provider dedicated to display imaging processing technologies. The Company’s display driver ICs and timing controllers have been adopted at scale across multiple industries worldwide including TVs, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, among others. As the global market share leader in automotive display technology, the Company offers innovative and comprehensive automotive IC solutions, including traditional driver ICs, advanced in-cell Touch and Display Driver Integration (TDDI), local dimming timing controllers (Local Dimming Tcon), Large Touch and Display Driver Integration (LTDI) and OLED display technologies. Himax is also a pioneer in tinyML visual-AI and optical technology related fields. The Company’s industry-leading WiseEye™ Ultralow Power AI Sensing technology which incorporates Himax proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm has been widely deployed in consumer electronics and AIoT related applications. Himax optics technologies, such as diffractive wafer level optics, LCoS microdisplays and 3D sensing solutions, are critical for facilitating emerging AR/VR/metaverse technologies. Additionally, Himax designs and provides touch controllers, OLED ICs, LED ICs, EPD ICs, power management ICs, and CMOS image sensors for diverse display application coverage. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,200 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, Germany, and the US. Himax has 2,649 patents granted and 402 patents pending approval worldwide as of December 31, 2024.

http://www.himax.com.tw

Forward Looking Statements

Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company’s business; general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations (EAR); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company’s SEC filings, including those risks identified in the section entitled “Risk Factors” in its Form 20-F for the year ended December 31, 2023 filed with the SEC, as may be amended.

Company Contacts:

Eric Li, Chief IR/PR Officer
Himax Technologies, Inc.
Tel: +886-6-505-0880
Fax: +886-2-2314-0877
Email: hx_ir@himax.com.tw
www.himax.com.tw

Karen Tiao, Investor Relations
Himax Technologies, Inc.
Tel: +886-2-2370-3999
Fax: +886-2-2314-0877
Email: hx_ir@himax.com.tw
www.himax.com.tw

Mark Schwalenberg, Director
Investor Relations – US Representative
MZ North America
Tel: +1-312-261-6430
Email: HIMX@mzgroup.us
www.mzgroup.us

-Financial Tables-

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Profit or Loss
(These interim financials do not fully comply with IFRS because they omit all interim disclosure required by IFRS)
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)
	Three Months Ended December 31,						3 Months Ended September 30,
		2024			2023			2024

Revenues
Revenues from third parties, net	$	237,182		$	227,664		$	222,401
Revenues from related parties, net		41			14			6
		237,223			227,678			222,407

Costs and expenses:
Cost of revenues		164,963			158,669			155,795
Research and development		37,584			41,088			46,880
General and administrative		5,711			5,831			6,828
Sales and marketing		5,886			5,409			7,048
Total costs and expenses		214,144			210,997			216,551

Operating income		23,079			16,681			5,856

Non operating income (loss):
Interest income		2,042			1,934			2,297
Changes in fair value of financial assets at fair value through profit or loss		1,245			1,710			27
Foreign currency exchange gains (losses), net		690			(1,525	)		457
Finance costs		(964	)		(1,140	)		(1,018	)
Share of losses of associates		(360	)		(14	)		(143	)
Other losses		–			(1,932	)		–
Other income (losses)		60			(362	)		105
		2,713			(1,329	)		1,725
Profit before income taxes		25,792			15,352			7,581
Income tax expense (benefit)		761			(7,933	)		(5,174	)
Profit for the period		25,031			23,285			12,755
Loss (profit) attributable to noncontrolling interests		(423	)		280			268
Profit attributable to Himax Technologies, Inc. stockholders	$	24,608		$	23,565		$	13,023

Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.141		$	0.135		$	0.075
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.140		$	0.135		$	0.074

Basic Weighted Average Outstanding ADS		175,008			174,724			174,727
Diluted Weighted Average Outstanding ADS		175,146			174,979			174,987

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Profit or Loss
(Amounts in Thousands of U.S. Dollars, Except Share and Per Share Data)

	Twelve Months Ended December 31,
		2024			2023

Revenues
Revenues from third parties, net	$	906,737		$	945,309
Revenues from related parties, net		65			119
		906,802			945,428

Costs and expenses:
Cost of revenues		630,601			681,931
Research and development		160,329			171,392
General and administrative		24,121			25,037
Sales and marketing		23,530			23,856
Total costs and expenses		838,581			902,216

Operating income		68,221			43,212

Non operating income (loss):
Interest income		9,907			8,746
Changes in fair value of financial assets at fair value through profit or loss		1,363			1,655
Foreign currency exchange gains (losses), net		2,491			(768	)
Finance costs		(4,014	)		(6,080	)
Share of losses of associates		(831	)		(598	)
Other losses		–			(1,932	)
Other income		198			158
		9,114			1,181
Profit before income taxes		77,335			44,393
Income tax benefit		(2,435	)		(5,028	)
Profit for the period		79,770			49,421
Loss (profit) attributable to noncontrolling interests		(15	)		1,195
Profit attributable to Himax Technologies, Inc. stockholders	$	79,755		$	50,616

Basic earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.456		$	0.290
Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholders	$	0.456		$	0.290

Basic Weighted Average Outstanding ADS		174,796			174,495
Diluted Weighted Average Outstanding ADS		175,014			174,783

Himax Technologies, Inc.
IFRS Unaudited Condensed Consolidated Statements of Financial Position
(Amounts in Thousands of U.S. Dollars)

	December 31, 2024			December 31, 2023			September 30, 2024
Assets
Current assets:
Cash and cash equivalents	$	218,148		$	191,749		$	194,139
Financial assets at amortized cost		4,286			12,511			12,335
Financial assets at fair value through profit or loss		2,140			2,117			–
Accounts receivable, net (including related parties)		236,813			235,829			224,589
Inventories		158,746			217,308			192,458
Income taxes receivable		726			1,454			986
Restricted deposit		503,700			453,000			503,700
Other receivable from related parties		13			69			22
Other current assets		43,471			86,548			42,581
Total current assets		1,168,043			1,200,585			1,170,810
Financial assets at fair value through profit or loss		23,554			21,650			26,383
Financial assets at fair value through other comprehensive income		28,226			1,635			22,457
Equity method investments		8,571			3,490			2,945
Property, plant and equipment, net		121,280			130,109			122,333
Deferred tax assets		21,193			14,196			13,806
Goodwill		28,138			28,138			28,138
Other intangible assets, net		636			816			717
Restricted deposit		31			32			31
Refundable deposits		221,824			222,025			221,879
Other non-current assets		18,025			20,728			18,484
		471,478			442,819			457,173
Total assets	$	1,639,521		$	1,643,404		$	1,627,983
Liabilities and Equity
Current liabilities:
Current portion of long-term unsecured borrowings	$	6,000		$	6,000		$	6,000
Short-term secured borrowings		503,700			453,000			503,700
Accounts payable (including related parties)		113,203			107,342			121,384
Income taxes payable		9,514			15,309			2,324
Other payable to related parties		–			110			–
Contract liabilities-current		10,622			17,751			25,694
Other current liabilities		63,595			109,291			54,673
Total current liabilities		706,634			708,803			713,775
Long-term unsecured borrowings		28,500			34,500			30,000
Deferred tax liabilities		564			520			505
Other non-current liabilities		7,496			35,879			11,361
		36,560			70,899			41,866
Total liabilities		743,194			779,702			755,641
Equity
Ordinary shares		107,010			107,010			107,010
Additional paid-in capital		115,376			114,648			115,285
Treasury shares		(5,546	)		(5,157	)		(4,714	)
Accumulated other comprehensive income		8,621			(180	)		3,507
Retained earnings		664,600			640,447			644,596
Equity attributable to owners of Himax Technologies, Inc.		890,061			856,768			865,684
Noncontrolling interests		6,266			6,934			6,658
Total equity		896,327			863,702			872,342
Total liabilities and equity	$	1,639,521		$	1,643,404		$	1,627,983

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
	Three Months Ended December 31,						Three Months Ended September 30,
		2024			2023			2024

Cash flows from operating activities:
Profit for the period	$	25,031		$	23,285		$	12,755
Adjustments for:
Depreciation and amortization		5,564			5,115			5,640
Share-based compensation expenses		103			346			407
Losses (gains) on disposals of property, plant and equipment, net		4			(368	)		–
Loss on re-measurement of the pre-existing relationships in a business combination		–			1,932			–
Changes in fair value of financial assets at fair value through profit or loss		(1,245	)		(1,710	)		(27	)
Interest income		(2,042	)		(1,934	)		(2,297	)
Finance costs		964			1,140			1,018
Income tax expense (benefit)		761			(7,933	)		(5,174	)
Share of losses of associates		360			14			143
Inventories write downs		4,037			5,727			2,269
Unrealized foreign currency exchange losses (gains)		(159	)		1,517			228
		33,378			27,131			14,962
Changes in:
Accounts receivable (including related parties)		(27,302	)		8,163			8,548
Inventories		29,675			36,580			8,964
Other receivable from related parties		9			(29	)		33
Other current assets		2,502			(5,682	)		(778	)
Accounts payable (including related parties)		(7,706	)		(627	)		(26,101	)
Other payable to related parties		1			363			(102	)
Contract liabilities		6			(958	)		667
Other current liabilities		2,508			3,014			(4,161	)
Other non-current liabilities		71			393			(3,354	)
Cash generated from operating activities		33,142			68,348			(1,322	)
Interest received		3,513			2,665			860
Interest paid		(1,047	)		(1,140	)		(1,018	)
Income tax paid		(191	)		(1,131	)		(1,658	)
Net cash provided by (used in) operating activities		35,417			68,742			(3,138	)

Cash flows from investing activities:
Acquisitions of property, plant and equipment		(3,222	)		(15,052	)		(2,551	)
Proceeds from disposal of property, plant and equipment		–			111			–
Acquisitions of intangible assets		–			(40	)		(9	)
Acquisitions of financial assets at amortized cost		(2,286	)		(4,573	)		(1,500	)
Proceeds from disposal of financial assets at amortized cost		10,289			784			617
Acquisitions of financial assets at fair value through profit or loss		(6,807	)		(5,375	)		(27,934	)
Proceeds from disposal of financial assets at fair value through profit or loss		3,722			1,645			33,036
Acquisitions of financial assets at fair value through other comprehensive income		–			(1,379	)		–
Proceeds from disposal of financial assets at fair value through other comprehensive income		–			99			–
Acquisition of a subsidiary, net of cash acquired (paid)		(5,416	)		433			–
Proceeds from capital reduction of investment		338			360			–
Acquisitions of equity method investment		(1,236	)		–			–
Decrease (increase) in refundable deposits		(8	)		–			11,339
Net cash provided by (used in) investing activities		(4,626	)		(22,987	)		12,998

Cash flows from financing activities:
Purchase of treasury shares		(832	)		–			–
Prepayments for purchase of treasury shares		(2,168	)		–			–
Payments of cash dividends		–			–			(50,670	)
Payments of dividend equivalents		–			–			(233	)
Proceeds from issuance of new shares by subsidiaries		–			916			–
Purchases of subsidiaries shares from noncontrolling interests		–			(9	)		–
Proceeds from short-term unsecured borrowings		–			36,932			–
Repayments of short-term unsecured borrowings		–			(37,226	)		–
Repayments of long-term unsecured borrowings		(1,500	)		(1,500	)		(1,500	)
Proceeds from short-term secured borrowings		461,400			427,100			522,600
Repayments of short-term secured borrowings		(461,400	)		(427,100	)		(471,900	)
Pledge of restricted deposit		–			–			(50,700	)
Payment of lease liabilities		(1,340	)		(1,244	)		(979	)
Guarantee deposits received (refunded)		219			(5	)		–
Net cash used in financing activities		(5,621	)		(2,136	)		(53,382	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(1,161	)		873			985
Net increase (decrease) in cash and cash equivalents		24,009			44,492			(42,537	)
Cash and cash equivalents at beginning of period		194,139			147,257			236,676
Cash and cash equivalents at end of period	$	218,148		$	191,749		$	194,139

Himax Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands of U.S. Dollars)
	Twelve Months Ended December 31,
		2024			2023

Cash flows from operating activities:
Profit for the period	$	79,770		$	49,421
Adjustments for:
Depreciation and amortization		22,354			20,322
Share-based compensation expenses		1,247			2,663
Losses (gains) on disposals of property, plant and equipment, net		4			(368	)
Loss on re-measurement of the pre-existing relationships in a business combination		–			1,932
Changes in fair value of financial assets at fair value through profit or loss		(1,363	)		(1,655	)
Interest income		(9,907	)		(8,746	)
Finance costs		4,014			6,080
Income tax benefit		(2,435	)		(5,028	)
Share of losses of associates		831			598
Inventories write downs		13,551			21,540
Unrealized foreign currency exchange losses (gains)		(171	)		624
		107,895			87,383
Changes in:
Accounts receivable (including related parties)		(40,738	)		20,804
Inventories		45,011			132,090
Other receivable from related parties		56			5
Other current assets		3,941			(3,863	)
Accounts payable (including related parties)		14,567			7,676
Other payable to related parties		(110	)		(268	)
Contract liabilities		45			(37,051	)
Other current liabilities		(9,010	)		1,246
Other non-current liabilities		(2,260	)		(4,602	)
Cash generated from operating activities		119,397			203,420
Interest received		9,732			8,567
Interest paid		(4,015	)		(6,080	)
Income tax paid		(9,138	)		(53,066	)
Net cash provided by operating activities		115,976			152,841

Cash flows from investing activities:
Acquisitions of property, plant and equipment		(13,054	)		(23,378	)
Proceeds from disposal of property, plant and equipment		–			111
Acquisitions of intangible assets		(153	)		(115	)
Acquisitions of financial assets at amortized cost		(11,236	)		(6,911	)
Proceeds from disposal of financial assets at amortized cost		19,457			3,099
Acquisitions of financial assets at fair value through profit or loss		(76,003	)		(82,628	)
Proceeds from disposal of financial assets at fair value through profit or loss		70,389			75,539
Acquisitions of financial assets at fair value through other comprehensive income		(17,164	)		(1,379	)
Proceeds from disposal of financial assets at fair value through other comprehensive income		–			99
Acquisition of a subsidiary, net of cash acquired (paid)		(5,416	)		433
Proceeds from capital reduction of investment		338			360
Acquisitions of equity method investment		(1,236	)		–
Decrease (increase) in refundable deposits		33,562			(56,933	)
Cash received in advance from disposal of land		–			2,821
Net cash used in investing activities		(516	)		(88,882	)

Cash flows from financing activities:
Purchase of treasury shares		(832	)		–
Prepayments for purchase of treasury shares		(2,168	)		–
Payments of cash dividends		(50,670	)		(83,720	)
Payments of dividend equivalents		(233	)		(148	)
Proceeds from issuance of new shares by subsidiary		71			916
Purchases of subsidiaries shares from noncontrolling interests		(190	)		(9	)
Proceeds from short-term unsecured borrowings		–			47,226
Repayments of short-term unsecured borrowings		–			(47,226	)
Repayments of long-term unsecured borrowings		(6,000	)		(6,000	)
Proceeds from short-term secured borrowings		1,780,300			1,383,300
Repayments of short-term secured borrowings		(1,729,600	)		(1,299,600	)
Pledge of restricted deposit		(50,700	)		(83,700	)
Payment of lease liabilities		(5,032	)		(4,830	)
Guarantee deposits received (refunded)		(23,163	)		200
Net cash used in financing activities		(88,217	)		(93,591	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(844	)		(200	)
Net increase (decrease) in cash and cash equivalents		26,399			(29,832	)
Cash and cash equivalents at beginning of period		191,749			221,581
Cash and cash equivalents at end of period	$	218,148		$	191,749

The MIL Network –

February 13, 2025

MIL-OSI United Kingdom: Thousands of small businesses to benefit from new government buying rules, boosting local jobs, growth and innovation
Source: United Kingdom – Executive Government & Departments

Thousands of small businesses across the country will have more opportunities to win valuable contracts with public sector organisations, kickstarting local economic growth and innovation
Complicated government buying processes will be simplified to make it easier for small businesses to win contracts, bringing jobs and growth to local areas and across the UK as government delivers on its Plan for Change.

Alongside measures for small business, companies that win public sector contracts will be told to advertise vacancies at local job centres to help get Britain back to work and breaking down barriers to opportunity for millions across the country.

Further measures introduced to cut government waste and drive value for money.

Thousands of small businesses across the country will have more opportunities to win valuable contracts with public sector organisations, kickstarting local economic growth and innovation and creating jobs for local communities as the Government delivers on its Plan for Change.

Measures announced by the Government today will speed up and simplify procurement processes in the public sector, where £400 billion is spent each year on essential goods and services – driving growth and improving the lives of working people.

The changes outlined today include proposals for a major shake-up of spending rules, with local councils able to reserve contracts for small businesses to maximise spend within their area and help boost local economies.

Alongside this, a new duty will be placed on firms that win contracts with government bodies to advertise jobs at job centres, delivering real change for people, bringing good jobs closer to home and getting Britain back to work.

The National Procurement Policy Statement (NPPS), will gear all parts of the public sector towards delivering growth. The new rules include eight actions to return public procurement back into the service of the country and working people, and drive forward the Plan for Change.

Georgia Gould, Parliamentary Secretary at the Cabinet Office, said:

Businesses tell me that the current system isn’t working. It is slow, complicated and too often means small businesses in this country are shut out of public sector contracts.

These measures will change that, giving them greater opportunity to access the £400 billion spent on public procurement every year, investing in home grown talent and driving innovation and growth.

This new policy statement sets out our vision for how procurement can put this country back into the service of working people, and deliver our Plan for Change – by making sure the public sector is committed to growing the economy and empowering our communities with innovation and opportunity.

Current processes require Social Value measures on contracts, which put requirements on businesses to help bring forward positive change in communities and the country as a whole.

However, there are currently multiple different approaches used across the public sector and potentially many different criteria, confusing business and making it harder to ensure the commitments made are actually delivered.

The Government will be updating and streamlining the system used by all central government departments and their agencies to align it with the Government’s missions.

This will make it simpler to use, giving small businesses a better chance when bidding for contracts, and will make sure companies who profit from government work give back to the community.

Small Business Minister Gareth Thomas said:

For too long small businesses have been stuck on the sidelines of the procurement process with complicated bureaucracy and a confusing system. That changes today.

These measures will mean small firms can more easily offer their expertise to key projects both locally and nationally, helping SMEs to scale up, securing jobs and creating opportunities across the country.

AI and Digital Government Minister Feryal Clark said:

There is a £45 billion jackpot of potential productivity savings if we make full use of technology across our public services, it is not an opportunity we can miss.

To get this right, we need to make sure public sector organisations can get their hands on the right technology for them, quickly. That’s why our Digital Commercial Centre of Excellence will help the rest of the public sector invest in long-term solutions and stop hasty quick fixes.

Alongside the NPPS, a range of measures to support its delivery and make savings across government are also being introduced.

This includes the development of a new AI tool for commercial teams across government to cut bureaucracy wherever possible – such as to simplify redacting contracts and quality assurance of procurement documents.

This includes the development of a new AI tool for commercial teams across government to cut bureaucracy wherever possible – such as to simplify redacting contracts and quality assurance of procurement documents.

As first announced in the blueprint for a modern digital government, a new Digital Commercial Centre of Excellence will also be set up in the Department for Science, Innovation and Technology to embed a “buy once and well” attitude, and drive innovative solutions to problems facing our public sector, securing long-term solutions rather than short-term fixes for digital and IT products and opening up opportunities for small and medium businesses to work on digital transformation.

The current system is broken: two departments might buy two types of equipment for the same purpose, requiring two teams with different individual skills to service and maintain.

The new approach means buying only once – requiring only one team, and one set of skills, removing duplication, saving the taxpayer money, and reducing waste in government.

A new Commercial Innovation Hub is also being considered, to establish a golden link across government departments, embedding learnings from extraordinary events such as vaccine procurement into our day to day processes. This will support departments to deliver greater value from the new flexible powers offered by the Procurement Act – and act as a workshop to seek out innovative commercial solutions that drive greater value.

The NAO recently estimated there are between 8,000 and 21,000 frameworks available to public sector buyers through external third party organisations. These agreements are often not transparent, with hidden fees and charges, racking up the cost of common goods and services.

A new Register of Framework agreements will be produced, shining a light on those rip-off frameworks from third party providers that are profiting off our local councils and NHS, taking money away from front line services.

The Government will also be consulting on more reforms including a requirement for large contracting authorities to publish their three-year targets for small business and social enterprise spend and report on this annually – as well as the exclusion of suppliers from contracts worth more than £5million if they don’t complete prompt payments of invoices.

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Published 13 February 2025
MIL OSI United Kingdom –
February 13, 2025

Contact	Dave Blumberg TransUnion
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

Category: Business

Introductory remarks by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the MNI Webcast on Climate Change: Impact on Monetary Policy and Bank Supervision

Climate and nature in monetary policy

Climate and nature in banking supervision

Conclusion

Further Information

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1 Introduction

2 The future is digital

3 What are we aiming to achieve with the introduction of a digital euro?

4 What would a digital euro be for the common citizen?

5 Wholesale CBDC

6 Business-to-business (B2B) payments

7 Outlook

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Scientific seminars: constancy, obligation, regularity

Georgia Gould, Parliamentary Secretary at the Cabinet Office, said:

Small Business Minister Gareth Thomas said:

AI and Digital Government Minister Feryal Clark said:

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