Category: Commerce

MIL-OSI Economics: Low-value deals dominate global VC funding landscape in 2024, reveals GlobalData

Source: GlobalData

Low-value deals dominate global VC funding landscape in 2024, reveals GlobalData

Posted in Business Fundamentals

A total of 12,163 venture capital (VC) funding deals with disclosed funding value were announced during 2024. Among VC deals with different funding size ranges, low-value deals* experienced a fall in numbers, while high-value deals (valued more than $100 million) registered growth in volume. However, despite the decline, low-value deals continued to dominate and accounted for the largest chunk of VC deals volume in 2024, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Deals Database reveals that the number of low-value VC deals declined by 23.7% from 10,510 in 2023 to 8,020 deals in 2024. In contrast, the volume of high-value VC deals increased by 24.9% from 337 in 2023 to 421 in 2024. Overall, the volume of VC funding deals declined by 18.4% last year compared to the announcement of 14,902 VC deals with disclosed venture funding value during the previous year.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The mixed trend observed in the volume of high-value VC deals and low-value deals indicates the prioritization of quality over quantity by the investors . During the year, VC firms seem to have placed a good number of big bets in start-ups they perceived to be promising enough for solid returns. It is also evident from the fact that the number of billion-dollar deals also increased in 2024 compared to the previous year.”

The number of VC deals valued more than $1 billion increased from seven in 2023 to 13 in 2024.

Low-value deals* accounted for a 65.9% share of the total number of VC deals with disclosed funding value announced globally during 2024. This was a decline compared to the 70.5% share in 2023.

Meanwhile, high-value VC deals occupied 3.5% share of the total number of VC deals with disclosed funding value announced globally during 2024, which is an increase from the previous year’s share of 2.3%.

Mid-size VC funding deals (valued >$10 million and ≤$100 million) volume declined by 8.2% from 4,055 deals in 2023 to 3,722 deals in 2024. These deals accounted for a 30.6% share of the total number of VC deals with disclosed funding value announced globally during 2024.

*Investment value less than or equal to $10 million

MIL OSI Economics –

February 6, 2025
MIL-OSI Africa: XTransfer and Ecobank Group Partner to Empower African Small and Medium-sized Enterprises’ (SMEs) Foreign Trade

Source: Africa Press Organisation – English (2) – Report:

XTransfer and Ecobank Group Partner to Empower African Small and Medium-sized Enterprises’ (SMEs) Foreign Trade XTransfer will leverage Ecobank’s extensive network across Africa, enabling its Chinese clients to collect funds in local African currencies while assisting African SMEs in making payments in their local currencies to negate foreign exchange issues LOMÉ, Togo, February 6, 2025/APO Group/ — XTransfer, the world-leading and China’s No.1 B2B Cross-Border Trade Payment Platform, and Ecobank Group (www.Ecobank.com), the leading private pan-African financial services group with unrivalled African expertise, have signed a landmark Memorandum of Understanding of Cooperation (MOU) to roll out comprehensive cross-border financial services to Africa’s small and medium-sized enterprises (SMEs) engaged in foreign trade. The collaboration will facilitate trade between China and African countries. In recent years, China and Africa have continued to deepen trade cooperation, with the scale of imports and exports rising rapidly. In 2023, bilateral trade reached a record US$282 billion. From January to November 2024, China’s exports to Africa totalled US$160 billion, a 1.4% increase from the previous year, while imports from Africa reached US$107 billion, marking a substantial rise of 6.6%. Despite this growth, African SMEs engaged in foreign trade face numerous challenges related to cross-border payments and fund collections. These challenges include difficulties in opening accounts with traditional banks, a high risk of funds being frozen, difficulties in foreign exchange and related losses, lengthy remittance times and high remittance costs. The partnership between XTransfer and Ecobank Group will foster collaboration between both parties to provide comprehensive cross-border payment solutions for African SMEs’ foreign trade. XTransfer will leverage Ecobank’s extensive network across Africa, enabling its Chinese clients to collect funds in local African currencies while assisting African SMEs in making payments in their local currencies to negate foreign exchange issues. Bill Deng, Founder and CEO of XTransfer, stated, “We are excited about the partnership with Ecobank. This collaboration represents a significant milestone for XTransfer and greatly enhances our global payment capabilities. Leveraging Ecobank’s extensive payment network in Africa will accelerate our business expansion in the region. We are looking forward to the synergies and opportunities this partnership will create. Together, we will drive innovation and improve the financial landscape, making financial services more efficient and accessible for African SMEs.” Jeremy Awori, CEO Ecobank Group, said, “We are proud to partner with XTransfer to advance seamless cross-border payment solutions between Africa and China. This partnership builds on our established strategy, which includes a representative office in China and a dedicated China desk. By integrating XTransfer’s cutting-edge solutions with our pan-African payment platform, we simplify payments, reduce transaction costs, and enable African businesses to thrive in global trade.” The partnership will facilitate trade between SMEs in China and African countries and also streamline foreign trade transactions between African companies and their global partners. Ultimately, this will help reduce the costs of global trade and enhance the global competitiveness of African SMEs. This partnership aligns with Ecobank’s goals of driving financial integration by facilitating seamless cross-border trade, which is the backbone of the continent’s economy growth. By collaborating with XTransfer, Ecobank is strengthening its position as a key player in the global payments industry by reducing trade barriers, enabling African SMEs to thrive in international markets and contribute to the continent’s sustainable development. Distributed by APO Group on behalf of Ecobank Transnational Incorporated. Media Contact: XTransfer Limited Maggie NG Public Relations Director Tel: +852 6287 2989 Email: maggie.ng@xtransfer.com Ecobank Transnational Incorporated Christiane Bossom Group Communications Ecobank Transnational Incorporated Email: groupcorporatecomms@ecobank.com Tel: +228 22 21 03 03 Web: www.Ecobank.com About XTransfer: XTransfer, the world-leading and China’s No.1 B2B Cross-Border Trade Payment Platform, is dedicated to providing small and medium-sized enterprises (SMEs) with secure, compliant, fast, convenient and low-cost foreign trade payment and fund collection solutions, significantly reducing the cost of global expansion and enhancing global competitiveness. Founded in 2017, the company is headquartered in Shanghai and has branches in Hong Kong SAR, the United Kingdom, the Netherlands, the United States, Canada, Australia, Singapore, Vietnam, Thailand, Malaysia, the Philippines, the UAE, and Nigeria. XTransfer has obtained local payment licences in Mainland China, Hong Kong SAR, Singapore, the United Kingdom, the United States, Canada, and Australia. With more than 600,000 enterprise clients, XTransfer has become the industry No.1 in China. By cooperating with well-known multinational banks and financial institutions, XTransfer has built a unified global multi-currency clearing network and built a data-based, automated, internet-based and intelligent anti-money laundering risk control infrastructure centred on SMEs. XTransfer uses technology as a bridge to link large financial institutions and SMEs around the world, allowing SMEs to enjoy the same level of cross-border financial services as large multinational corporations. XTransfer completed its Series D financing in September 2021 and achieved unicorn status. The Company possesses a diverse composition of international investors, including D1 Capital Partners LP, Telstra Ventures, China Merchants Venture, eWTP Capital, Yunqi Capital, Gaorong Capital, 01VC, MindWorks and Lavender Hill Capital Partners. For more information, please visit: https://www.XTransfer.com/ About Ecobank: Ecobank Group is the leading private pan-African banking group with unrivalled African expertise. Present in 35 sub-Saharan African countries, as well as France, the UK, UAE and China, its unique pan-African platform provides a single gateway for payments, cash management, trade and investment. The Group employs over 14,000 people and offers Consumer, Commercial, Corporate and Investment Banking products, services and solutions across multiple channels, including digital, to over 32 million customers. For further information, please visit www.Ecobank.com

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MIL OSI Africa –

February 6, 2025

MIL-OSI: Societe Generale: Fourth quarter & 2024 full year results

Source: GlobeNewswire (MIL-OSI)

RESULTS AT 31 DECEMBER 2024

Press release
Paris, 6 February 2025

2024 RESULTS ABOVE ALL GROUP TARGETS
GROUP NET INCOME OF EUR 4.2 BILLION, +69% vs. 2023

Annual revenues of EUR 26.8 billion, up by +6.7% vs. 2023, above the ≥+5% target set for 2024, driven in particular by the strong rebound in net interest income in France and by an excellent performance in Global Banking and Investor Solutions with revenues above EUR 10 billion

Cost-to-income ratio of 69.0%, below the target of <71% set for 2024, thanks to tight control of costs, which are stable vs. 2023

Cost of risk at 26 basis points, at the lower end of the 2024 guidance range

Profitability (ROTE) of 6.9%, above the target of >6% expected for 2024

CET1 ratio of 13.3% at end-2024, around 310 basis points above regulatory requirement

+75% INCREASE IN DISTRIBUTION TO SHAREHOLDERS VS. 2023

Proposed distribution of EUR 1,740 million¹, equivalent to EUR 2.18 per share¹, composed of:

a cash dividend of EUR 1.09 per share to be proposed to the General Meeting

a share buyback programme of EUR 872 million, equivalent to EUR 1.09 per share¹. ECB approval has been obtained to launch the programme, due to start on 10 February 2025
Increase of the payout ratio to 50% of net income²

2025 FINANCIAL TARGETS, STRONG CAPITAL, EXECUTION DISCIPLINE

Revenue growth of more than +3%³ vs. 2024

Decrease in costs above -1%³ vs. 2024

Improvement of the cost-to-income ratio, less than 66% in 2025

Cost of risk between 25 and 30 basis points in 2025

Increase of the ROTE, more than 8% in 2025

CET1 ratio above 13% post Basel IV throughout the year 2025

With a solid CET1 ratio ahead of the capital trajectory, we are proposing to improve the distribution policy with:

an overall distribution payout ratio of 50% of net income²
a balanced distribution between cash dividends and share buybacks

Slawomir Krupa, the Group’s Chief Executive Officer, commented:
“In 2024, our performance improves materially. All our targets are exceeded and ahead of plan. Strong capital build-up, strong and sustainable business growth, strong cost control and risk management, and a material progress in our integration projects led to the doubling of the earnings per share. Against this strong backdrop, we are improving both the 2024 distribution and our distribution policy. I would like to thank the entire Societe Generale team for their dedication and remarkable commitment, every single day, to serving our clients and our Bank.
We will continue to focus in 2025 on the relentless execution of our strategy, improving our performance even further.”

GROUP CONSOLIDATED RESULTS

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	6,621	5,957	+11.1%	+12.5%*	26,788	25,104	+6.7%	+5.7%*
Operating expenses	(4,595)	(4,666)	-1.5%	-0.7%*	(18,472)	(18,524)	-0.3%	-1.6%*
Gross operating income	2,026	1,291	+57.0%	+61.3%*	8,316	6,580	+26.4%	+26.6%*
Net cost of risk	(338)	(361)	-6.4%	-4.9%*	(1,530)	(1,025)	+49.3%	+48.6%*
Operating income	1,688	930	+81.6%	+87.4%*	6,786	5,555	+22.2%	+22.5%*
Net income/expense from other assets	(11)	(21)	+48.9%	+45.2%*	(77)	(113)	+31.4%	+26.3%*
Income tax	(413)	(302)	+36.6%	+40.5%*	(1,601)	(1,679)	-4.7%	-4.9%*
Net income	1,273	612	x 2.1	x 2.1*	5,129	3,449	+48.7%	+49.6%*
O.w. non-controlling interests	233	183	+27.0%	+33.6%*	929	957	-3.0%	-9.3%*
Group net income	1,041	429	x 2.4	x 2.5*	4,200	2,492	+68.6%	+73.2%*
ROE	5.8%	1.5%			6.1%	3.1%	+0.0%	+0.0%*
ROTE	6.6%	1.7%			6.9%	4.2%	+0.0%	+0.0%*
Cost to income	69.4%	78.3%			69.0%	73.8%	+0.0%	+0.0%*

Asterisks* in the document refer to data at constant perimeter and exchange rates

The Board of Directors of Societe Generale, which met on 5 February 2025 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for Q4 24 and endorsed the 2024 financial statements.

Net banking income

Net banking income stood at EUR 6.6 billion, up by +11.1% vs. Q4 23.

Revenues of French Retail, Private Banking and Insurance were up by +15.5% vs. Q4 23 and totalled EUR 2.3 billion in Q4 24. Net interest income increased in Q4 24 (+36% vs. Q4 23), in line with the latest estimates. Assets under management in Private Banking and Insurance increased by +7% each in Q4 24 vs. Q4 23. Lastly, BoursoBank showed strong growth momentum with more than 460,000 new clients in the quarter, allowing to reach a client base of 7.2 million clients at end-December 2024, above the target of 7 million clients set for end-2024. In addition, BoursoBank posted a positive contribution to Group net income in 2024 for the second year in a row.

Global Banking and Investor Solutions registered a +12.4% increase in revenues relative to Q4 23. Revenues amounted to EUR 2.5 billion for the quarter, driven by strong momentum across all businesses. Global Markets grew by 9.8% in Q4 24 vs. Q4 23. Revenues from the Equities business were up by +10%, reaching a record level for a fourth quarter. They were driven by favourable market conditions, particularly after the result of the presidential elections in the United States. Fixed Income and Currencies were up by +9% owing to solid commercial activity in financing and intermediation across all asset classes. In Financing and Advisory, solid commercial momentum was recorded in structured finance and the performance of M&A and advisory continued to rebound. Likewise, Global Transaction & Payment Services posted a +26% increase in revenues vs. Q4 23, driven by a sustained commercial development across all businesses, particularly in correspondent banking.

Mobility, International Retail Banking and Financial Services’ revenues were up by +2.0% vs. Q4 23, mainly due to an increase in margins at Ayvens. International Retail Banking recorded a -3.6% fall in revenues vs. Q4 23 at EUR 1.0 billion, due to a scope effect related to the asset disposals finalised in Africa (Morocco, Chad, Congo, Madagascar). Revenues were up +3.4% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were up by +8.3% vs. Q4 23 mainly due to non-recuring items in Q4 23 and improved margins at Ayvens.

The Corporate Centre recorded revenues of EUR -159 million in Q4 24.

Over 2024, net banking income increased by +6.7% vs. 2023.

Operating expenses

Operating expenses came out to EUR 4,595 million in Q4 24, down by -1.5% vs. Q4 23.
They include a scope effect of around EUR 46 million related to the integration of Bernstein’s cash equity operations and a decrease in transformation costs of EUR 26 million. Excluding these items, operating expenses were down by nearly -2% in Q4 24 vs. Q4-23 owing to the effect of the cost saving measures implemented across all business lines.

The cost-to-income ratio stood at 69.4% in Q4 24, significantly lower than in Q4 23 (78.3%).

Over 2024, operating expenses remained relatively stable (-0.3% vs. 2023), thanks from rigorous cost management. The cost-to-income ratio stood at 69.0% (vs. 73.8% in 2023), a level below the target of 71% for 2024.

Cost of risk

The cost of risk fell to 23 basis points over the quarter (or EUR 338 million). This includes a EUR 386 million provision for non-performing loans (around 26 basis points) and a reversal of a provision on performing loans for EUR -48 million.

At end-December, the Group’s provisions on performing loans amounted to EUR 3,119 million, stable relative to 30 September 2024. The EUR -453 million contraction relative to 31 December 2023 is mainly owing to the application of IFRS 5.

The gross non-performing loan ratio stood at 2.81%⁴^,⁵ at 31 December 2024, significantly down vs. end of September 2024 (2.95%). The net coverage ratio on the Group’s non-performing loans stood at 81%⁶ at 31 December 2024 (after taking into account guarantees and collateral).

Net profits from other assets

The Group recorded a net loss of EUR -11 million in Q4 24, mainly related to the accounting impacts of finalised asset sales, such as the disposals of our activities in Morocco and Madagascar.

Group net income

Group net income stood at EUR 1,041 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 6.6%.

Over the year, Group net income stood at EUR 4,200 million, equating to a Return on Tangible Equity (ROTE) of 6.9%.

Shareholder distribution

The Board of Directors approved the distribution policy for the 2024 fiscal year, aiming to distribute EUR 2.18 per share, equivalent to EUR 1,740 million, of which EUR 872 million in share buyback⁷. A cash dividend of EUR 1.09 per share will be proposed at the General Meeting of Shareholders on 20 May 2025. The dividend will be detached on 26 May 2025 and paid out on 28 May 2025.

AN ESTABLISHED ESG STRATEGY FROM WHICH TO STEP FORWARD

In 2024, Societe Generale accelerated the execution of its ESG roadmap, particularly with respect to the contribution to the environmental transition:

The Group now covers ~70% of companies’⁸ financed emissions, with 10 alignment targets for the carbon-intensive sectors. It has already reduced its oil and gas upstream exposure by more than 50% since the end of 2019⁹
In Q2 24 and ahead of schedule, the Group reached its target of EUR 300 billion for sustainable finance planned for the period 2022-2025. A new target of EUR 500 billion, complementing the work carried out as part of the portfolio alignment, was announced for the period 2024-2030. This will help increase the orientation of financial flows towards decarbonization activities.

The Group has broadened the scope of actions to prepare for a sustainable future by supporting new players and new technologies:

The EUR 1 billion investment for the transition, announced during the Capital Markets Day, has entered its operationalization phase
A new partnership with the EIB to unlock up to EUR 8 billion in the wind industry supply chain in Europe was signed in Q4 24.

At the same time, ESG risk management continues to be strengthened, enhancing forward-looking assessments of environmental risk materiality and further integrating environmental, social and governance risks into the risk framework.
Lastly, the Group is moving forward with its ambitions as a responsible employer: at the end of 2024, the “Group Leaders Circle” (Top 250) had ~30% women executives¹⁰ and ~30% international members. As announced during the Capital Markets Day, the EUR 100 million envelope commitment to reduce the gender pay gap was launched in 2023.

THE GROUP’S FINANCIAL STRUCTURE

At 31 December 2024, the Group’s Common Equity Tier 1 ratio stood at 13.3%¹¹, around 310 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well ahead of regulatory requirements at 156% at end-December 2024 (145% on average for the quarter), and the Net Stable Funding Ratio (NSFR) stood at 117% at end-December 2024.

All liquidity and solvency ratios are well above the regulatory requirements.

	31/12/2024	31/12/2023	Requirements
CET1⁽¹⁾	13.3%	13.1%	10.24%
Fully-loaded CET1	13.3%	13.1%	10.24%
Tier 1 ratio ⁽¹⁾	16.1%	15.6%	12.17%
Total Capital⁽¹⁾	18.9%	18.2%	14.73%
Leverage ratio⁽¹⁾	4.34%	4.25%	3.60%
TLAC (% RWA)⁽¹⁾	29.7%	31.9%	22.31%
TLAC (% leverage)⁽¹⁾	8.0%	8.7%	6.75%
MREL (% RWA)⁽¹⁾	34.2%	33.7%	27.58%
MREL (% leverage)⁽¹⁾	9.2%	9.2%	6.23%
End of period LCR	156%	160%	>100%
Period average LCR	145%	155%	>100%
NSFR	117%	119%	>100%

In EURbn	31/12/2024	31/12/2023
Total consolidated balance sheet	1,574	1,554
Shareholders’ equity (IFRS), Group share	70	66
Risk-weighted assets	390	389
O.w. credit risk	327	326
Total funded balance sheet	952	970
Customer loans	463	497
Customer deposits	614	618

At 31 December 2024, the parent company had issued EUR 43.2 billion in medium/long-term debt under its 2024 funding program. The subsidiaries had issued EUR 4.7 billion. In all, the Group has issued a total of EUR 47.9 billion.

At 10 January 2025, the parent company 2025 funding program was executed at 47% for vanilla notes.

The Group is rated by four rating agencies: (i) FitchRatings – long-term rating “A-”, stable outlook, senior preferred debt rating “A”, short-term rating “F1”; (ii) Moody’s – long-term rating (senior preferred debt) “A1”, negative outlook, short-term rating “P-1”; (iii) R&I – long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings – long-term rating (senior preferred debt) “A”, stable outlook, short-term rating “A-1”.

FRENCH RETAIL, PRIVATE BANKING AND INSURANCE

In EURm	Q4 24	Q4 23	Change	2024	2023	Change
Net banking income	2,267	1,963	+15.5%	8,657	8,053	+7.5%
Of which net interest income	1,091	801	+36.2%	3,868	3,199	+20.9%
Of which fees	1,028	948	+8.5%	4,108	3,975	+3.3%
Operating expenses	(1,672)	(1,683)	-0.7%	(6,634)	(6,756)	-1.8%
Gross operating income	596	280	x 2.1	2,024	1,297	+56.0%
Net cost of risk	(115)	(163)	-29.6%	(712)	(505)	+41.0%
Operating income	481	118	x 4.1	1,312	792	+65.6%
Net profits or losses from other assets	(2)	5	n/s	6	9	-35.1%
Group net income	360	90	x 4.0	991	596	+66.2%
RONE	9.1%	2.3%		6.3%	3.9%
Cost to income	73.7%	85.7%		76.6%	83.9%

Commercial activity

SG Network, Private Banking and Insurance

The SG Network’s average outstanding deposits amounted to EUR 232 billion in Q4 24, down by -1% on Q4 23, with strong shift of inflows into investment products and savings life insurance.

The SG Network’s average loan outstandings contracted by -4% vs. Q4 23 to EUR 194 billion, but -2.5% excluding PGE (state guaranteed loans). Outstanding loans to corporate and professional clients grew vs. Q3 24 excluding state guaranteed PGE loans, and individual clients lending experienced an increased commercial momentum.

The average loan to deposit ratio came to 83.6% in Q4 24, down by 2.6 percentage points relative to Q4 23.

Private Banking activities saw their assets under management¹² maintain a record level of EUR 154 billion in Q4 24, up by +7% vs. Q4 23. Net gathering stood at EUR 6.3 billion in 2024, the annual net asset gathering pace (net new money divided by AuM) being at +4% in 2024. Net banking income came to EUR 348 million over the quarter, a decrease of -2% vs. Q4 23. It stands at EUR 1,469 million for 2024, unchanged from 2023.

Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +7% vs. Q4 23 to reach a record EUR 146 billion at end-December 2024. The share of unit-linked products remained high at 40%. Savings Life insurance gross inflows amounted to EUR 3.4 billion in Q4 24, and EUR 18.3 billion for 2024, up by +42% vs. 2023.

Personal protection and P&C premia were up by +3% vs. Q4 23 (+5% at constant perimeter).

BoursoBank

BoursoBank’s growth momentum continued with more than 460K new clients in the fourth quarter of 2024. BoursoBank reached almost 7.2 million clients in December 2024, above 2024 target.

Thanks notably to its comprehensive banking offer and recognized among the “Digital Leaders”¹³, the Bank has a low attrition rate (~3% in 2024), still down vs. 2023.

BoursoBank continued its profitable growth trajectory in 2024 with a cost per client down by -17.0% vs. 2023 with an expanding client base, more than 1.3 million net clients over 12 months (+22.4% vs. 2023).

Loans outstanding improved by +5.4% relative to Q4 23, at EUR 16 billion in Q4 24.

Average outstanding in savings including deposits and financial savings were +15.5% higher vs. Q4 23 at EUR 64 billion. Deposits outstanding totalled EUR 39 billion in Q4 24, posting another strong increase of +15.4% vs. Q4 23, driven by interest-bearing savings. Average life insurance outstandings, at EUR 13 billion in Q4 24, rose by +10.2% vs. Q4 23 (o/w 48% in unit-lined products, +3.8 percentage points vs. Q4 23). The activity continued to register strong gross inflows over the quarter (+50.4% vs. Q4 23, 65% unit-linked products).

For the second year in a row, BoursoBank recorded a positive contribution to Group net income in 2024.

At end of 2025, BoursoBank aims to exceed 8 million clients.

Net banking income

Over the quarter, revenues amounted to EUR 2,267 million (including PEL/CEL provision), up by +15% compared with Q4 23 and up by +1% compared with Q3 24. Net interest income grew by +36% vs. Q4 23 and +3% vs. Q3 24. Fee income rose by +9% relative to Q4 23.

Over the year, revenues reached EUR 8,657 million, up by +8% compared with 2023 (including PEL/CEL provision). Net interest income was up by +21% vs. 2023. Fees increased by +3% relative to 2023.

Operating expenses

Over the quarter, operating expenses came to EUR 1,672 million, down -1% compared to Q4 23. The cost-to-income ratio reached 73.7% in Q4 24 and improved by 12 percentage points vs. Q4 23.

Over the year, operating expenses totalled EUR 6,634 million, decreasing by -2% vs. 2023. The cost-to-income ratio stood at 76.6% and improved by 7.3 percentage points compared with 2023.

Cost of risk

Over the quarter, the cost of risk amounted to EUR 115 million, or 20 basis points, down compared with Q3 24 (30 basis points).

Over the year, the cost of risk totalled EUR 712 million, or 30 basis points.

Group net income

Over the quarter, Group net income totalled EUR 360 million. RONE stood at 9.1% in Q4 24.

Over the year, Group net income totalled EUR 991 million. RONE stood at 6.3% for the year.

GLOBAL BANKING AND INVESTOR SOLUTIONS

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	2,457	2,185	+12.4%	+11.6%*	10,122	9,642	+5.0%	+4.8%*
Operating expenses	(1,644)	(1,601)	+2.7%	+2.0%*	(6,542)	(6,788)	-3.6%	-3.7%*
Gross operating income	812	584	+39.0%	+37.9%*	3,580	2,854	+25.4%	+25.0%*
Net cost of risk	(97)	(38)	x 2.5	x 2.5*	(126)	(30)	x 4.2	x 4.3*
Operating income	715	546	+31.0%	+30.1%*	3,455	2,824	+22.3%	+21.9%*
Group net income	627	467	+34.4%	+33.0%*	2,788	2,280	+22.2%	+21.7%*
RONE	16.6%	12.2%	+0.0%	+0.0%*	18.4%	14.8%	+0.0%	+0.0%*
Cost to income	66.9%	73.3%	+0.0%	+0.0%*	64.6%	70.4%	+0.0%	+0.0%*

Net banking income

Global Banking & Investor Solutions delivered an excellent fourth quarter, with revenues up by +12.4% compared with Q4 23, at EUR 2,457 million.

Over 2024, revenues reached a record¹⁴ level of EUR 10,122 million, up by +5.0% vs. FY23, owing to excellent momentum across all business lines.

Global Markets and Investor Services recorded a sharp rise in revenues over the quarter vs Q4 23 of +9.8% to EUR 1,493 million. Over 2024, they totalled EUR 6,557 million, up by +4.5% vs. FY 2023. This growth is the result of solid performance across all activities.

Global Markets posted both a record fourth quarter and a record¹ year with revenues, respectively, of EUR 1,332 million, up +9.5% vs. Q4 23, and EUR 5,884 million, up +5.6% vs. 2023, in a market environment that remains conducive.

The Equities business delivered an excellent performance, with both a record year and fourth quarter. In Q4 24, revenues amounted to EUR 831 million, a steady increase of +10.0% vs. Q4 23, benefiting from a strong commercial dynamic post US elections especially in flow, listed products and financing activities. Over 2024, revenues increased sharply by +12.2% versus 2023 to EUR 3,569 million.

Fixed Income and Currencies grew by +8.8% to EUR 501 million in Q4 24, thanks to a solid performance across all products, with an increased client engagement across Corporates and Financial Institutions following the impact of the US elections on rates and currencies. In addition, European rates and currencies franchise outperformed, together with solid secured financing opportunities in the Americas. Over 2024, revenues decreased slightly by -3.2% to EUR 2,315 million.

Securities Services’ revenues were sharply up by +12.4% versus Q4 23 at EUR 162 million but increased by +4.8% excluding the impact of equity participations. The business continued to reap the benefit of a positive fee generation trend and robust momentum in fund distribution, especially in France and Italy. Over 2024, revenues were down by -4.0%, but up by +2.8% excluding equity participations. Assets under Custody and Assets under Administration amounted to EUR 4,921 billion and EUR 623 billion, respectively.

The Financing and Advisory business posted revenues of EUR 964 million, up by +16.7% vs. Q4 23. Over 2024, revenues totalled EUR 3,566 million, up by +5.8% vs. 2023.

The Global Banking & Advisory business grew steadily by +13.7% compared with Q4 23 with a double digit increase in fees vs. Q4 23 driven by strong origination and distribution volumes in Fund Financing and Structured Finance. The rebound in M&A and Advisory continued in the fourth quarter with a strong increase in revenues. This is the second best quarter ever in terms of revenues, close to record Q4 22. Over 2024, revenues grew by +3.2% vs. 2023.

The Global Transaction & Payment Services business once again delivered an excellent performance compared with Q4 23. The sharp increase in revenues of +26.1% was driven by solid commercial momentum in all activities, as well as a high level of fee generation, led by a strong performance in correspondent banking. Over 2024, revenues saw a steady increase of +13.9%. This represents a record year and fourth quarter.

Operating expenses

Operating expenses came out to EUR 1,644 million for the quarter, including around EUR 32 million in transformation costs. They are up by +2.7% relative to Q4 23. The cost-to-income ratio came to 66.9% in Q4 24.

Over 2024, operating expenses decreased by -3.6% compared with 2023 and the cost-to-income ratio came to 64.6%.

Cost of risk

Over the quarter, the cost of risk was EUR 97 million, or 24 basis points vs. 9 basis points in Q4 23.

Over 2024, the cost of risk was EUR 126 million, or 8 basis points.

Group net income

Group net income recorded strong growth, up by +34.4% vs. Q4 23 to EUR 627 million. Over 2024, Group net income rose sharply by +22.2% to EUR 2,788 million.

Global Banking and Investor Solutions reported significant RONE of 16.6% over the quarter and 18.4% over 2024.

MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	2,056	2,016	+2.0%	+6.7%*	8,458	8,507	-0.6%	-3.8%*
Operating expenses	(1,240)	(1,281)	-3.2%	+0.8%*	(5,072)	(4,760)	+6.6%	+1.7%*
Gross operating income	816	734	+11.1%	+17.0%*	3,386	3,747	-9.6%	-10.9%*
Net cost of risk	(133)	(137)	-2.5%	+2.2%*	(705)	(486)	+45.1%	+43.5%*
Operating income	682	598	+14.2%	+20.4%*	2,681	3,261	-17.8%	-19.1%*
Net income/expense from other assets	(2)	(12)	+86.1%	+84.3%*	96	(11)	n/s	n/s
Non-controlling interests	203	152	+33.1%	+39.6%*	826	826	-0.1%	-7.1%*
Group net income	314	284	+10.5%	+16.1%*	1,270	1,609	-21.1%	-20.0%*
RONE	12.0%	11.0%			12.2%	16.6%
Cost to income	60.3%	63.6%			60.0%	56.0%

⁽²⁾()

Commercial activity

International Retail Banking

International Retail Banking¹⁵ activity remained strong in Q4 24 with outstanding loans at EUR 59 billion, up by +3.4%* vs. Q4 23 and deposits at EUR 74 billion, up by +3.9%* vs. Q4 23.

Europe continues to post good commercial performance for both entities in individual and corporate client segments. With EUR 43 billion in Q4 24, outstanding loans increased by 4.9%* vs. Q4 23, across segments in Romania and more particularly in home loans in the Czech Republic. Outstanding deposits totalled EUR 55 billion in Q4 24, up by +3.8%* vs. Q4 23, mostly driven by Romania.

In the Africa, Mediterranean Basin and Overseas France network, outstanding loans were stable* vs. Q4 23, with EUR 16 billion in Q4 24, on the back of the good performance in retail. Outstanding deposits of EUR 20 billion in Q4 24 increased by 4.0%* vs. Q4 23, mainly driven by sight deposits in retail.

Mobility and Financial Services

Overall, Mobility and Financial Services maintained a good commercial performance.

Ayvens’ earning assets totalled EUR 53.6 billion at end-December 2024, a +2.9% increase vs. end-December 2023.

Consumer Finance posted outstandings of EUR 23 billion in Q4 24, still down by -4.0% vs. Q4 23.

With EUR 15 billion in Q4 24, Equipment Finance outstandings slightly decreased by -1.4% vs. Q4 23.

Net banking income

Over the quarter, Mobility, International Retail Banking and Financial Services’ revenues rose by +2.0% vs. Q4 23 to EUR 2,056 million in Q4 24.

Over the year, revenues were stable compared with 2023 at EUR 8,458 million.

International Retail Banking revenues reached EUR 1,029 million, up by +3.4%* vs. Q4 23. Over 2024, revenues amounted to EUR 4,161 million, up by 3.8%* vs. 2023.

Revenues in Europe, which amounted to EUR 539 million in Q4 24, rose by +6.4%* vs. Q4 23, driven by the +3.5%* increase in net interest income for both KB in Czech Republic and BRD in Romania. Fee income increased strongly over the quarter in the Czech Republic, up by +29.5%* vs. Q4 23. Over 2024, revenues improved by +2.8%* vs. 2023 at EUR 2,028 million.

The Africa, Mediterranean Basin and French Overseas network maintained a sustained level of revenues in Q4 24 of EUR 490 million, stable* vs. Q4 23, mainly driven by fee growth. Over 2024, revenues improved by +4.8%* vs. 2023 at EUR 2,133 million.

Overall, revenues from Mobility and Financial Services were up by 8.3% vs. Q4 23 at EUR 1,026 million. They remained stable vs. 2023, at EUR 4,298 million in 2024.

At Ayvens, net banking income stood at EUR 707 million in Q4 24, a sharp increase of +16,3% vs. Q4 23 as reported, and of +2.0% adjusted for non-recurring items¹⁶. The amount of margins stood at 541 basis points, generating revenues up +12%¹ vs. T4-23. The used car sales markets are gradually normalising, as expected, with an average Used Car Sale (UCS) result per unit of EUR 1,267¹ per unit this quarter, vs. EUR 1,420¹ in Q3 24 and EUR 1,706¹ in Q4 23. In 2024, Ayvens posted an increase in revenues of +1.2% vs. 2023 (at EUR 3,015 million), with an increase in underlying margins.

The Consumer Finance entities posted revenues of EUR 216 million in Q4 24, still down by -4.2% vs. Q4 23. These are stabilizing from Q3 24, with an improvement in the margin for new production. Revenues from the Equipment Finance business was down this quarter by -9.3% vs. Q4 23, with EUR 103 million in Q4 24. In 2024, overall revenues for both businesses decreased by -4.0% vs. 2023.

Operating expenses

Over the quarter, operating expenses remained contained at EUR 1,240 million (-3.2% vs. Q4 23, stable* at constant perimeter and exchange rates). The cost-to-income ratio stood at 60.3% in Q4 24 vs. 63.6% in Q4 23.

Over the year, operating expenses came to EUR 5,072 million, up by +6.6% vs. 2023. They include transformation costs of around EUR 200 million.

International Retail Banking recorded an increase in costs of +4.8%* vs. Q4 23 (down by -2.1% at current perimeter and exchange rates, to EUR 577 million in Q4 24), still including the new bank tax in Romania, implemented since January 2024.

Mobility and Financial Services costs reached EUR 663 million in Q4 24, down by -4.2% vs. Q4 23.

Cost of risk

Over the quarter, the cost of risk amounted to EUR 133 million or 32 basis points, which was considerably lower than in Q3 24 (48 basis points).

Over the year, the cost of risk normalised to a level of 42 basis points, compared with 32 basis points in 2023.

Group net income

Over the quarter, Group net income came out to EUR 314 million, up by +10.5% vs. Q4 23. RONE stood at 12.0% in Q4 24. RONE was 16.3% in International Retail Banking, and 9.1% in Mobility and Financial Services in Q4 24.

Over 2024, Group net income came out to EUR 1,270 million, down by -21.1% vs. 2023. RONE stood at 12.2% in 2024. RONE was 16.4% in International Retail Banking, and 9.4% in Mobility and Financial Services in 2024.

CORPORATE CENTRE

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	(159)	(207)	+23.4%	+24.4%*	(450)	(1,098)	+59.0%	+59.6%*
Operating expenses	(39)	(101)	-61.8%	-61.8%*	(224)	(220)	+1.6%	+1.4%*
Gross operating income	(197)	(308)	+36.0%	+36.5%*	(674)	(1,318)	+48.9%	+49.5%*
Net cost of risk	7	(23)	n/s	n/s	12	(4)	n/s	n/s
Net income/expense from other assets	(7)	(15)	+51.3%	+51.3%*	(179)	(111)	-61.3%	-61.4%*
Income tax	(37)	(45)	-17.9%	-16.6%*	81	(130)	n/s	n/s
Group net income	(261)	(412)	+36.7%	+37.0%*	(848)	(1,994)	+57.5%	+57.8%*

The Corporate Centre includes:

the property management of the Group’s head office,
the Group’s equity portfolio,
the Treasury function for the Group,
certain costs related to cross-functional projects, as well as several costs incurred by the Group that are not re-invoiced to the businesses.

Net banking income

Over the quarter, the Corporate Centre’s net banking income totalled EUR -159 million, vs. EUR – 207 million in Q4 23.

Over the year, the Corporate Centre’s net banking income totalled EUR -450 million, vs. EUR – 1,098 million in 2023. It includes the booking in Q3 24 of exceptional proceeds received of approximately EUR 0.3 billion¹⁷.

Operating expenses

Over the quarter, operating expenses totalled EUR -39 million, vs. EUR -101 million in Q4 23.

Over the year, operating expenses totalled EUR -224 million, vs. EUR -220 million in 2023.

Net losses from other assets

Pursuant notably to the application of IFRS 5, the Group booked in Q4 24 various impacts from ongoing disposals of assets.

Group net income

Over the quarter, the Corporate Centre’s Group net income totalled EUR -261 million, vs. EUR -412 million in Q4 23.

Over the year, the Corporate Centre’s Group net income totalled EUR -848 million, vs. EUR -1,994 million in 2023.

To be noted that starting from 2025, normative return to businesses will be based on a 13% capital allocation.

8. 2024 AND 2025 FINANCIAL CALENDAR

2025 Financial communication calendar

April 30, 2025 First quarter 2025 results
May 20, 2025 2024 Combined General Meeting
May 26, 2025 Dividend detachment
May 28, 2025 Dividend payment
July 31, 2025 Second quarter and first half 2025 results
October 30, 2025 Third quarter and nine months 2025 results

The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, cost of risk in basis points, ROE, ROTE, RONE, net assets and tangible net assets are presented in the methodology notes, as are the principles for the presentation of prudential ratios.

This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.

These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations.

These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to:

– anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

– evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.

Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives.

More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the section “Risk Factors” in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on https://investors.societegenerale.com/en).

Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal.

9. APPENDIX 1: FINANCIAL DATA

GROUP NET INCOME BY CORE BUSINESS

In EURm	Q4 24	Q4 23	Variation	2024	2023	Variation
French Retail, Private Banking and Insurance	360	90	x 4.0	991	596	+66.2%
Global Banking and Investor Solutions	627	467	+34.4%	2,788	2,280	+22.2%
Mobility, International Retail Banking & Financial Services	314	284	+10.5%	1,270	1,609	-21.1%
Core Businesses	1,301	841	+54.7%	5,048	4,486	+12.5%
Corporate Centre	(261)	(412)	+36.7%	(848)	(1,994)	+57.5%
Group	1,041	429	x 2.4	4,200	2,492	+68.6%

MAIN EXCEPTIONAL ITEMS

In EURm	Q4 24	Q4 23	12M24	12M23
Net Banking Income – Total exceptional items	0	41	287	(199)
One-off legacy items – Corporate Centre	0	41	0	(199)
Exceptional proceeds received – Corporate Centre	0	0	287	0

Operating expenses – Total one-off items and transformation charges	(76)	(102)	(613)	(765)
Transformation charges	(76)	(102)	(613)	(730)
Of which French Retail, Private Banking and Insurance	7	18	(132)	(312)
Of which Global Banking & Investor Solutions	(32)	(64)	(236)	(167)
Of which Mobility, International Retail Banking & Financial Services	(51)	(56)	(199)	(251)
Of which Corporate Centre	0	0	(47)	0
One-off items	0	0	0	(35)
Of which French Retail, Private Banking and Insurance	0	0	0	60
Of which Global Banking & Investor Solutions	0	0	0	(95)

Other one-off items – Total	(7)	(115)	(74)	(820)
Net profits or losses from other assets	(7)	(15)	(74)	(112)
Of which Mobility, International Retail Banking and Financial Services	0	0	86	0
Of which Corporate Centre	(7)	(15)	(160)	(112)
Goodwill impairment – Corporate Centre	0	0	0	(338)
Provision of Deferred Tax Assets – Corporate Centre	0	(100)	0	(370)

CONSOLIDATED BALANCE SHEET

In EUR m	31/12/2024	31/12/2023
Cash, due from central banks	201,680	223,048
Financial assets at fair value through profit or loss	526,048	495,882
Hedging derivatives	9,233	10,585
Financial assets at fair value through other comprehensive income	96,024	90,894
Securities at amortised cost	32,655	28,147
Due from banks at amortised cost	84,051	77,879
Customer loans at amortised cost	454,622	485,449
Revaluation differences on portfolios hedged against interest rate risk	(292)	(433)
Insurance and reinsurance contracts assets	615	459
Tax assets	4,687	4,717
Other assets	70,903	69,765
Non-current assets held for sale	26,426	1,763
Investments accounted for using the equity method	398	227
Tangible and intangible fixed assets	61,409	60,714
Goodwill	5,086	4,949
Total	1,573,545	1,554,045

In EUR m	31/12/2024	31/12/2023
Due to central banks	11,364	9,718
Financial liabilities at fair value through profit or loss	396,614	375,584
Hedging derivatives	15,750	18,708
Debt securities issued	162,200	160,506
Due to banks	99,744	117,847
Customer deposits	531,675	541,677
Revaluation differences on portfolios hedged against interest rate risk	(5,277)	(5,857)
Tax liabilities	2,237	2,402
Other liabilities	90,786	93,658
Non-current liabilities held for sale	17,079	1,703
Insurance and reinsurance contracts liabilities	150,691	141,723
Provisions	4,085	4,235
Subordinated debts	17,009	15,894
Total liabilities	1,493,957	1,477,798
Shareholder’s equity	–	–
Shareholders’ equity, Group share	–	–
Issued common stocks and capital reserves	21,281	21,186
Other equity instruments	9,873	8,924
Retained earnings	33,863	32,891
Net income	4,200	2,493
Sub-total	69,217	65,494
Unrealised or deferred capital gains and losses	1,039	481
Sub-total equity, Group share	70,256	65,975
Non-controlling interests	9,332	10,272
Total equity	79,588	76,247
Total	1,573,545	1,554,045

10. APPENDIX 2: METHODOLOGY

1 –The financial information presented for the fourth quarter and full year 2024 was examined by the Board of Directors on February 5^th, 2025 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress.

2 – Net banking income

The pillars’ net banking income is defined on page 42 of Societe Generale’s 2024 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.

3 – Operating expenses

Operating expenses correspond to the “Operating Expenses” as presented in note 5 to the Group’s consolidated financial statements as at December 31^st, 2023. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 42 of Societe Generale’s 2024 Universal Registration Document.

4 – Cost of risk in basis points, coverage ratio for non-performing loan outstandings

The cost of risk is defined on pages 43 and 770 of Societe Generale’s 2024 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars as a percentage of balance sheet loan commitments, including operating leases.

In EURm		Q4 24	Q4 23	2024	2023
French Retail, Private Banking and Insurance	Net Cost Of Risk	115	163	712	505
	Gross loan Outstandings	233,298	240,533	235,539	246,701
	Cost of Risk in bp	20	27	30	20
Global Banking and Investor Solutions	Net Cost Of Risk	97	38	126	30
	Gross loan Outstandings	160,551	168,799	162,749	169,823
	Cost of Risk in bp	24	9	8	2
Mobility, International Retail Banking & Financial Services	Net Cost Of Risk	133	137	705	486
	Gross loan Outstandings	167,911	164,965	167,738	150,161
	Cost of Risk in bp	32	33	42	32
Corporate Centre	Net Cost Of Risk	(7)	23	(12)	4
	Gross loan Outstandings	25,730	23,075	24,700	20,291
	Cost of Risk in bp	(11)	40	(5)	2
Societe Generale Group	Net Cost Of Risk	338	361	1,530	1,025
	Gross loan Outstandings	587,490	597,371	590,725	586,977
	Cost of Risk in bp	23	24	26	17

The gross coverage ratio for non-performing loan outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“non-performing loans”).

5 – ROE, ROTE, RONE

The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on pages 43 and 44 of Societe Generale’s 2024 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity.
RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 44 of Societe Generale’s 2024 Universal Registration Document.
Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders if deeply subordinated notes and undated subordinated notes, issue premium amortisation”. For ROTE, income is also restated for goodwill impairment.
Details of the corrections made to the accounting equity in order to calculate ROE and ROTE for the period are given in the table below:

ROTE calculation: calculation methodology

End of period (in EURm)	Q4 24	Q4 23	2024	2023
Shareholders’ equity Group share	70,256	65,975	70,256	65,975
Deeply subordinated and undated subordinated notes	(10,526)	(9,095)	(10,526)	(9,095)
Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(25)	(21)	(25)	(21)
OCI excluding conversion reserves	757	636	757	636
Distribution provision⁽²⁾	(1,740)	(995)	(1,740)	(995)
Distribution N-1 to be paid	–	–	–	–
Equity end-of-period for ROE	58,722	56,500	58,722	56,500
Average equity for ROE	58,204	56,607	57,223	56,396
Average Goodwill⁽³⁾	(4,192)	(4,068)	(4,108)	(4,011)
Average Intangible Assets	(2,883)	(3,188)	(2,921)	(3,143)
Average equity for ROTE	51,129	49,351	50,194	49,242

Group net Income	1,041	430	4,200	2,493
Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation	(199)	(215)	(720)	(759)
Cancellation of goodwill impairment	–	–	–	338
Adjusted Group net Income	842	215	3,480	2,073
ROTE	6.6%	1.7%	6.9%	4.2%

¹⁸¹⁹²⁰

RONE calculation: Average capital allocated to Core Businesses (in EURm)

In EURm	Q4 24	Q4 23	Change	2024	2023	Change
French Retail , Private Banking and Insurance	15,731	15,445	+1.9%	15,634	15,454	+1.2%
Global Banking and Investor Solutions	15,129	15,247	-0.8%	15,147	15,426	-1.8%
Mobility, International Retail Banking & Financial Services	10,460	10,313	+1.4%	10,433	9,707	+7.5%
Core Businesses	41,320	41,006	+0.8%	41,214	40,587	+1.5%
Corporate Center	16,884	15,601	+8.2%	16,009	15,809	+1.3%
Group	58,204	56,607	+2.8%	57,223	56,396	+1.5%

6 – Net assets and tangible net assets

Net assets and tangible net assets are defined in the methodology, page 45 of the Group’s 2024 Universal Registration Document. The items used to calculate them are presented below:
²¹²²

End of period (in EURm)	2024	2023	2022
Shareholders’ equity Group share	70,256	65,975	66,970
Deeply subordinated and undated subordinated notes	(10,526)	(9,095)	(10,017)
Interest of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(25)	(21)	(24)
Book value of own shares in trading portfolio	8	36	67
Net Asset Value	59,713	56,895	56,996
Goodwill⁽²⁾	(4,207)	(4,008)	(3,652)
Intangible Assets	(2,871)	(2,954)	(2,875)
Net Tangible Asset Value	52,635	49,933	50,469

Number of shares used to calculate NAPS⁽³⁾	796,498	796,244	801,147
Net Asset Value per Share	75.0	71.5	71.1
Net Tangible Asset Value per Share	66.1	62.7	63.0

7 – Calculation of Earnings Per Share (EPS)

The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see page 44 of Societe Generale’s 2024 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE.
The calculation of Earnings Per Share is described in the following table:

Average number of shares (thousands)	2024	2023	2022
Existing shares	801,915	818,008	845,478
Deductions
Shares allocated to cover stock option plans and free shares awarded to staff	4,402	6,802	6,252
Other own shares and treasury shares	2,344	11,891	16,788
Number of shares used to calculate EPS⁽⁴⁾	795,169	799,315	822,437
Group net Income (in EUR m)	4,200	2,493	1,825
Interest on deeply subordinated notes and undated subordinated notes (in EUR m)	(720)	(759)	(596)
Adjusted Group net income (in EUR m)	3,480	1,735	1,230
EPS (in EUR)	4.38	2.17	1.50

²³²⁴
8 – The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 rules. The fully loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise. When there is reference to phased-in ratios, these do not include the earnings for the current financial year, unless specified otherwise. The leverage ratio is also calculated according to applicable CRR2/CRD5 rules including the phased-in following the same rationale as solvency ratios.

9 – Funded balance sheet, loan to deposit ratio

The funded balance sheet is based on the Group financial statements. It is obtained in two steps:

A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:

Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
Wholesale funding: Includes interbank liabilities and debt securities issued. Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.

A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.

The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.

NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
(2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website:
www.societegenerale.com in the “Investor” section.

Societe Generale

Societe Generale is a top tier European Bank with more than 126,000 employees serving about 25 million clients in 65 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.

¹ Based on the number of shares in circulation at 31 December 2024 excluding own shares, subject to usual approvals from the General Meeting
² Reported Group net income, after deduction of interest on deeply subordinated notes and undated subordinated notes, restated from non-cash items that have no impact on CET1 ratio
³ Excluding assets sold
⁴ Ratio calculated according to EBA methodology published on 16 July 2019
⁵ Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5 (in particular Société Générale Equipment Finance, SG Marocaine de Banques and La Marocaine Vie)
⁶ Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
⁷ The share buyback programme and the subsequent capital reduction, aim also, and in priority, at fully offsetting the dilutive impact of the future capital increase as part of the next Group Employee Share Ownership Plan, the principle of which was adopted by the Board of Directors on February 5, 2025
⁸ Scopes 1 & 2 of corporate clients’ financed emissions
⁹Target: -80% upstream exposure reduction by 2030 vs. 2019, with an intermediary step in 2025 at -50% vs. 2019
¹⁰ The target is to have at least 35% of women executives by 2026
¹¹Including IFRS 9 phasing
¹²France and International (including Switzerland and the United Kingdom)
¹³ Banking App #1 in France and #2 worldwide based on Sia Partners International Mobile Banking Benchmark in October 2024
¹⁴ At comparable business model in the post Global Financial Crisis (GFC) regulatory regime

¹⁵ Including entities reported under IFRS 5, excluding entities sold in Morocco and Madagascar in December 2024
¹⁶ Excluding non-recurring items on either margins or UCS (mainly linked to fleet revaluation at EUR 107m in Q4 23 vs. EUR 0m in Q4 24, prospective depreciation at EUR -191m in Q4 23 vs. EUR -87m in Q4 24, hyperinflation in Turkey at EUR -27m in Q4 23 vs. EUR -40m in Q4 24 and MtM of derivatives at EUR -137m in Q4 23 vs. EUR -2m in Q4 24)

¹⁷ As stated in Q2 24 results press release
¹⁸ Interest net of tax
¹⁹ Based on the 2024 proposed distribution, subject to usual approvals of the General Meeting
²⁰ Excluding goodwill arising from non-controlling interests
²¹ Interest net of tax
²² Excluding goodwill arising from non-controlling interests
²³ The number of shares considered is the number of ordinary shares outstanding at the end of the period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)
²⁴ The number of shares considered is the average number of ordinary shares outstanding during the period, excluding treasury shares and buybacks, but including the trading shares held by the Group

Attachment

Societe-Generale-Q4-2024-Financial-Results-Press-release-en

The MIL Network –

February 6, 2025

MIL-OSI Video: Tariffs, globalization, and democracy, with Harvard economist Dani Rodrik

Source: World Economic Forum (video statements)

Dani Rodrik has long argued against unfettered globalization and supports countries’ use of industrial policy to pursue economic development.

The Harvard economist joins us to talk about the usefulness and limitations of trade tariffs, economic nationalism, and the impact of global economics on democracy.

Catch up on all the action from the Annual Meeting 2025 at wef.ch/wef25 (http://wef.ch/wef25) and across social media using the hashtag #WEF25.

Links:

World Economic Forum Centre for Regions, Trade and Geopolitics (https://centres.weforum.org/centre-for-regions-trade-and-geopolitics/home) : https://centres.weforum.org/centre-for-regions-trade-and-geopolitics/home From Blind Spots to Insights: Enhancing Geopolitical Radar to Guide Global Business: https://www.weforum.org/publications/from-blind-spots-to-insights-enhancing-geopolitical-radar-to-guide-global-business/ Related podcasts:

What just happened in Davos, and how is the world different now? (https://www.weforum.org/podcasts/radio-davos/episodes/davos-2025-what-just-happened/) The global economy ‘at a crossroads’ ahead of Davos: Chief Economists Outlook (https://www.weforum.org/podcasts/radio-davos/episodes/chief-economists-outlook-ralph-ossa-wto/)

Global Risks Report: the big issues facing the world at Davos 2025 (https://www.weforum.org/podcasts/radio-davos/episodes/global-risks-report-2025/)

IMF’s Gita Gopinath: What’s ahead for economic growth in 2025 (https://www.weforum.org/podcasts/meet-the-leader/episodes/gita-gopinath-imf-economic-outlook/)

Check out all our podcasts on wef.ch/podcasts (http://wef.ch/podcasts) :

YouTube: (https://www.youtube.com/@wef/podcasts) – https://www.youtube.com/@wef/podcasts

Radio Davos (https://www.weforum.org/podcasts/radio-davos) – subscribe (https://pod.link/1504682164) : https://pod.link/1504682164

Meet the Leader (https://www.weforum.org/podcasts/meet-the-leader) – subscribe (https://pod.link/1534915560) : https://pod.link/1534915560

Agenda Dialogues (https://www.weforum.org/podcasts/agenda-dialogues) – subscribe (https://pod.link/1574956552) : https://pod.link/1574956552

Join the World Economic Forum Podcast Club (https://www.facebook.com/groups/wefpodcastclub) : https://www.facebook.com/groups/wefpodcastclub

https://www.youtube.com/watch?v=w_Mj61EUEFg

MIL OSI Video –

February 6, 2025
MIL-OSI USA: Senators Marshall, Lee Reintroduce SHUSH Act to Simplify Suppressor Rules

US Senate News:

Source: United States Senator for Kansas Roger Marshall

Washington, D.C. – U.S. Senator Roger Marshall, M.D. and Senator Mike Lee (R-UT) introduced the Silencers Helping Us Save Hearing (SHUSH) Act, a bill to eliminate the excessive regulation of firearm suppressors. The bill seeks to simplify the purchase process for law-abiding citizens and reduce unnecessary bureaucratic obstacles. The SHUSH Act has garnered the support of the National Association for Gun Rights, Gun Owners of America, the National Rifle Association, and the National Shooting Sports Foundation.
“The misinformation around silencers has led many to fear and misunderstand this valuable tool,” said Senator Marshall. “Silencers help gun owners across America protect their hearing and safely exercise their Second Amendment Right – restricting access to a safety tool for gun owners just doesn’t make sense. By treating silencers the same as any other firearm accessory, this bill will protect Americans’ Second Amendment rights and encourage safe firearm usage.”
“Despite what Hollywood may lead you to believe, silencers aren’t silent, and they aren’t just for secret agents,” said Senator Lee. “They are a vital tool for hearing protection for countless marksmen and gun enthusiasts across America, and making them prohibitively difficult to obtain is an assault on the 2nd Amendment. The SHUSH Act eliminates federal regulation of silencers and treats them as the non-lethal accessory that they are.”
Background
Suppressors, commonly known as silencers, are non-lethal firearm accessories widely used by hunters, sportsmen, and marksmen. These devices enhance safety by reducing noise, recoil, and muzzle blast. Contrary to popular belief, they do not completely silence firearms.
Currently, the process to legally acquire a suppressor involves an extensive and burdensome procedure through the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), including:

Completing two copies of ATF Form 4
Filling out ATF Form 5330.20 Certification of Compliance
Obtaining certification from a local chief law enforcement officer and two copies of fingerprints
Submitting two passport photos and a $200 check to the ATF
This approval process can take 9-12 months, making the purchase of a suppressor prohibitively complex and costly for many consumers

The SHUSH Act aims to:

Eliminate federal regulation of suppressors as firearms under the National Firearms Act (NFA) and the Gun Control Act (GCA).
Remove existing taxes, fees, and registration requirements associated with suppressors.
Allow current or retired law enforcement officers to carry concealed firearms with suppressors.
Preempt state regulations on the manufacture, transfer, transport, or possession of suppressors.
Strike provisions requiring mandatory minimum sentences for suppressor possession in certain cases.
Exempt suppressors from regulation by the Consumer Product Safety Commission.
Provide a provision for a refund of the $200 transfer tax for anyone who purchased a suppressor within two years prior to the enactment of the bill.

If passed, the SHUSH Act will work alongside the Hearing Protection Act to further deregulate suppressors and remove them from the Gun Control Act of 1968.

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Senate Commerce Committee Advances Schatz Bipartisan Legislation Targeting Illegal Fishing To Help Expose Foreign, Intentionally Mislabeled Ahi

US Senate News:

Source: United States Senator for Hawaii Brian Schatz

Legislation Now Moves To Full Senate For Consideration

WASHINGTON – Today, the U.S. Senate Commerce, Science, and Transportation Committee approved the Illegal Red Snapper and Tuna Enforcement Act. The bipartisan bill, authored by U.S. Senator Brian Schatz (D-Hawai‘i), directs the National Institute of Standards and Technology (NIST) and the National Oceanic and Atmospheric Administration (NOAA) to develop a standard methodology for identifying the country of origin of red snapper and certain species of tuna imported into the United States. Senate Commerce Committee Chairman Ted Cruz (R-Texas) co-leads the bill.

“Seafood that’s caught illegally or intentionally mislabeled rips off consumers and makes it harder for law-abiding U.S. fishermen to compete. Our bill will help fight against anyone who tries to pass off cheap foreign tuna for high-quality ahi from local Hawai‘i fishermen,” said Senator Schatz.

“The Hawai‘i fishing and seafood industries support Senator Schatz and the Commerce Committee’s legislation to prevent IUU products from entering US seafood markets. US fisheries, including the Hawai‘i Longline fishery, are among the most regulated in the world and we appreciate Congress taking steps to protect domestic fishermen and our markets. Hawai‘i-landed tuna is known for its sustainability and quality and the ability to detect tuna origin to deter seafood fraud is important and we are very appreciative of this effort,” said Mike Goto, Director of the United Fishing Agency.

Technology exists to chemically test and find the geographic origin of many foods, but not for tuna and red snapper. The legislation aims to develop a field test kit that can be used to accurately ascertain whether fish were caught in U.S. or foreign waters, thus allowing federal and state law enforcement officers to identify the origin of the fish and intercept illegally caught or falsely labelled red snapper and tuna before it enters the U.S. market.

MIL OSI USA News –

February 6, 2025
MIL-OSI: Nokia to modernize Vietnam Air Traffic Management Corporation’s communication network for improved safety
Source: GlobeNewswire (MIL-OSI)

Press Release

Nokia to modernize Vietnam Air Traffic Management Corporation’s communication network for improved safety
- Vietnam’s Air Traffic Management Corporation (VATM) will use Nokia’s multi-service network solution to upgrade its legacy network systems to enhance the performance and flexibility of its air traffic network.
- Nokia’s trusted mission-critical Internet Protocol Multi-Protocol Label Switching (IP/MPLS) networking solution will make air traffic management more robust, and Vietnam’s airways safer.
- Nokia Quantum-Safe Network (QSN)-ready network will provide unparalleled security and reliability to VATM.
6 February 2025
Hanoi, Vietnam – Nokia today announced that Vietnam Air Traffic Management Corporation (VATM) will use Nokia’s networking solution to replace the legacy Synchronous Digital Hierarchy (SDH) transport system with IP/MPLS technology to improve security and reliability in the South region of Vietnam. The new advanced transport network will support new-age applications required for operating highly reliable services to serve rapidly growing air traffic in Vietnam.

The initiative will provide an advanced transmission system to Ho Chi Minh City’s Air Traffic Control Center (ATCC), which will deliver mission critical applications to enhance Air Traffic Control (ATC). The newly upgraded transport network, compliant with the International Civil Aviation Organization’s standard will be operational in the second quarter of 2025.

Nokia’s solution will provide VATM with advanced network capabilities such as advanced analytics, simplifying operations and improving network performance. The IP/MPLS network also offers increased flexibility and programmability, supporting critical applications that enhance overall air traffic management efficiency and safety. The network will equip VATM with robust security features and the ability to evolve to defend against quantum threats.

Ho Sy Tung, Deputy General Director at VATM, said: “Air traffic networks need to be exceptionally secure and reliable at all times to ensure the highest standards of safety are met. Nokia comes with extensive experience in air navigation with 20 air traffic control networks deployed worldwide. We are impressed by the quality and performance of Nokia’s IP/MPLS networking solution and are looking forward to the successful completion of this crucial initiative in the coming year.”

Nguyen Van Nam, General Director at ANSV – Advanced Network System Vietnam, said: “ANSV is proud to be selected as prime contractor for tender package CP-17. Together with other critical systems, we will provide a new Nokia IP/MPLS network replacing the existing SDH networks for air navigation systems.”

Jonathan Goh, Head of Enterprise Business, Network Infrastructure, Southeast Asia North at Nokia, said: “Our mission-critical network solutions are trusted worldwide, delivering exceptional performance and reliability. With embedded QSN capabilities, Nokia’s IP/MPLS technology will enhance the safety and operational efficiency of Vietnam’s air traffic network. We are honored that VATM has chosen Nokia for this pivotal network transformation, paving the way for safer, more advanced and reliable air traffic management across Vietnam.”

Resources and additional information
Product page: 7705 Service Aggregation Router
Product page: 7750 Service Router
Product page: 7250 Interconnect Routers
Product page: Network Services Platform
Product page: Converged IP/MPLS for Aviation

About Nokia
At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Media inquiries
Nokia Communications, Southeast Asia North
Email: takayuki.omino@nokia.com

Nokia Press Office
Email: Press.Services@nokia.com

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The MIL Network –
February 6, 2025
MIL-OSI USA: Committee on Small Business and Entrepreneurship Advances Kelly Loeffler

US Senate News:

Source: United States Senator Joni Ernst (R-IA)

WASHINGTON – Today, the Senate Committee on Small Business and Entrepreneurship, led by Chair Joni Ernst (R-Iowa), advanced the nomination of the Honorable Kelly Loeffler to serve as the Small Business Administration (SBA) administrator by a vote of 12-7.
“For the last four years, small businesses were failed by an ever-growing and burdensome bureaucracy,” said Chair Ernst. “As a successful business leader, Kelly Loeffler is the perfect person to increase transparency and accountability at the SBA and prioritize the needs of small businesses. She will unshackle and unleash Main Street!”
Last week, Ernst discussed fixing the broken SBA with Loeffler and refocusing the agency on its mission to empower entrepreneurs and unleash the small business economy.

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Klobuchar, Moran Bipartisan Legislation to Address Hidden Hotel Fees Passes Unanimously Out of Commerce Committee

US Senate News:

Source: United States Senator Amy Klobuchar (D-Minn)

WASHINGTON – Today, the U.S. Senate Committee on Commerce, Science, and Transportation unanimously passed the bipartisan Hotel Fees Transparency Act by Senators Amy Klobuchar (D-MN) and Jerry Moran (R-KS), co-chairs of the Senate Travel and Tourism Caucus and members of the Senate Commerce Committee. This legislation will lower costs and improve transparency by requiring anyone advertising a hotel room or short-term rental to clearly show the final price a customer will pay to book lodging, including any fees.

“Traveling is expensive, and hidden fees make it difficult to compare prices and understand the true cost of a reservation,” said Klobuchar. “Our bipartisan bill will lower costs for hotel rooms and short-term rentals by increasing transparency and banning hidden fees.”

“High prices are forcing Kansans to account for all their expenses, and many cannot afford to pay hidden fees at hotels or short-term lodging,” said Moran. “This commonsense legislation requires hotels to be straightforward about all their fees so consumers aren’t burdened with unexpected costs on their check.”

The Hotel Fees Transparency Act is co-sponsored by Senators Shelley Moore Capito (R-WV) and Catherine Cortez Masto (D-NV). It is endorsed by the American Hotel & Lodging Association, Consumer Reports, the National Consumers League, and the Travel Technology Association.

Klobuchar has long led efforts to protect consumers and support the travel and tourism industry. In May 2024, a number of Klobuchar-backed provisions passed the Senate and were signed into law as part of the Federal Aviation Administration (FAA) Reauthorization Act, including the Families Fly Together Act, a bill with Senators Ed Markey (D-MA) and Richard Blumenthal (D-CT) to require airlines to allow children to sit together with their family members on flights at no additional charge.

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Tuberville Thanks President Trump for Signing Executive Order Protecting Women’s Sports, Urges Senate to Bring Protection of Women and Girls in Sports Act to the Floor for a Vote

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville

WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) celebrated National Girls and Women in Sports Day by participating in several events and interviews to promote his bill, the Protection of Women and Girls in Sports Act. Sen. Tuberville reintroduced his hallmark Title IX legislation—which is cosponsored by 37 of his colleagues—in the Senate last month. Companion legislation passed the House on a bipartisan basis in January.

Sen. Tuberville also praised President Trump for his leadership in signing an Executive Order today to protect women’s sports and restore Title IX protections for women and girls everywhere. While Senator Tuberville is grateful for President Trump’s commonsense leadership, he insists Congress has to pass his bill to ensure Title IX protections are made permanent. Sen. Tuberville discussed this earlier this week on “The Megyn Kelly Show” when he said, “A lot of people don’t realize that an Executive Order […] only lasts as long as that president’s there. So, we got some work to do. […] As you said—we’ve got to get it to the floor. John Thune told me he’s going to get it to the floor. […] If it’s not going to pass, we’ll do it again, but we’ve got to get people on the record because this is something that’s very dear to the heart of all parents across the country—and it’s dead wrong.”

When White House Press Secretary Karoline Leavitt was asked about this earlier today, she said, “It’s incredibly important that Congress immediately act on this priority. I think the President is really setting the tone—making this an immediate priority for this administration, just as he promised to do on the campaign trail.”

Sen. Tuberville also commemorated National Girls and Women in Sports Day by reintroducing the Protection of Women in Olympic and Amateur Sports Act to prohibit any governing body recognized by the U.S. Olympic Committee (USOC) from allowing men to participate in any women’s Olympic athletic events.

Tuberville Joins “The Faulkner Focus”

Sen. Tuberville joined Harris Faulkner on “The Faulkner Focus” to discuss the latest with the Protection of Women and Girls in Sports Act, as well as his efforts to protect women’s Olympic sports.

Read an excerpt from the interview below or watch here.

FAULKNER: “This Executive Order that Trump is getting ready to put in play comes as today we recognize National Girls and Women in Sports Day. Also on this day, Senator, you are reintroducing that bill called the Protection of Women in Olympic and Amateur Sports Act. This is an effort to ensure that Trump’s protections are permanent. Tell us about it, Senator.”

TUBERVILLE: “Exactly, and you know I started coaching 40 years ago—right when Title IX started. And, Harris, let me tell you something. This is the best thing that this place has ever done. It gave young girls and women a different opportunity to build on leadership and have a future. And, so, this past four years—gender has been under attack. Parents have been under attack. Education has been under attack, and it all goes back to trying to not define what a woman is, and they can’t even define that. They’re telling us right now that men can have babies. So, at the end of the day, I’m giving a speech on the floor today. Leader Thune has promised he’s gonna put this bill on the floor sooner or later. This is my third time that I’ve had this up for a vote. The Democrats don’t want anything to do with it, but I gotta feeling a lot of them are gonna change their mind. And then at three o’clock, President Trump’s going to sign the Executive Order. But as you said, if when he goes out of office, if we don’t get a Republican back in there, this will change back into the gender nonsense that these Democrats have been pushing for the last four years. We have to protect women and girls in sports. And we also have to protect women and girls in Olympic sports because we have the Olympics coming here soon. And if we don’t do that, we’re gonna see men boxing against women like we did this past summer.”

Tuberville Speaks on Senate Floor

Senator Tuberville also delivered a floor speech where he called out Democrats’ out-of-touch, woke ideology that says men can get pregnant and boys should compete in women’s sports.

Read excerpts from the speech below or watch the full speech here.

“I’m here to call for a vote on my legislation, S.9, the Protection of Women and Girls in Sports Act, that would save Title IX and save women’s sports. Today is National Girls and Women in Sports Day—that’s today. To celebrate, President Trump will sign an Executive Order this afternoon in the White House ending Democrats’ intentional destruction of Title IX and saving women’s sports.

I’m very thankful for his leadership on this. President Trump’s Executive Order will make sure women’s sports are protected for at least the next four years. But unfortunately, Executive Orders can be reversed. Congress needs to act on this to make sure the next Democrat administration, whenever it is, can’t take the same steps to destroy Title IX that the Biden administration took. For the past four years, the Biden administration waged an all-out assault on gender. Since the beginning of time, people have agreed that sex is assigned at birth and determined by God. But under the Biden administration, you had people claiming that men can get pregnant. Here on this floor, I heard that. Pure insanity.

But it didn’t stop there. They weren’t content to just erase gender norms that have been accepted for thousands and thousands of years. No. They wanted to allow transgender men to participate against women and girls in sports. This has been happening at schools all across the country. Young women have been forced to compete against men and even share locker rooms and showers. And on top of that, your taxpayer dollars are paying for this nonsense. Over the past several years under the Joe Biden administration, 900 women’s medals have gone to men. 900. That is absolutely wrong.

This one is personal for me. My first coaching job was in women’s basketball—years ago. Title IX was just starting to be implemented when I took that first job. I saw firsthand the immediate difference it made. Before Title IX, at a lot of schools, college women’s athletics didn’t really exist. Back then, there were more than 10x as many male athletes in college as female athletes. After Title IX, that quickly changed. For the first time, the young women I coached had equal access to facilities, resources, and competition. I saw these hardworking young women go on to earn college scholarships, start careers, and become leaders of our country. I still keep in touch with many of these young women today, and I’m deeply proud of them.

Looking back on it now, I wonder if they would have had the same opportunities without Title IX. Would they have had the same successes if they had had to compete against males 40 years ago? This really shouldn’t be controversial. It’s just common sense. A recent poll from the New York Times of all publications showed 79% of all Americans believe men should not compete in women’s sports. 79%.

President Trump campaigned largely on this issue. If you remember, his campaign spent nearly $20 million dollars on TV ads about the importance of keeping men out of women’s sports. So, on November 5, 2024 the American people didn’t just elect President Trump. They also decisively rejected this ridiculous notion that men can get pregnant and boys should compete against women in sports. Ridiculous. And they definitely didn’t want their tax dollars funding schools that allow boys to share locker rooms with girls.

My bill would prevent a school from receiving any federal funding if they let boys compete in women’s sports. It also defines gender [as] male and female for this purpose. I was glad to see President Trump sign an Executive Order defining gender during his first few days in office. The President also made it clear in the Executive Order that he wants Congress to take action on this as well because he understands it can go away with the sign [of] an ink pen.

That’s why today I’m also reintroducing a bill to prohibit men from competing in women’s Olympic sports because men competing against women at any level is dangerous. We are all deeply disturbed—all of us were deeply disturbed this past summer to see videos of boys and men boxing against women. You know, when I was growing up, we were taught never to hit a girl, but I guess that’s over now because of the Democrats. One study found out that males can punch up to 162% harder than females. Somebody is going to get killed or seriously injured if we don’t stop this absolute nonsense. It’s unsafe, it’s unfair, and it’s just plain wrong.

The Protection of Women in Olympic and Amateur Sports Act will make sure men aren’t allowed to compete against women in any sport, but especially not in a violent sport like boxing. This bill will restore fairness for the American women who train their whole lives to represent our country on the world stage. Their entire lives, they train. I know we’re all looking forward to the United States hosting the Summer Olympics in 2028 in Los Angeles. I hope our bill [has] been passed and signed in law long before that so we can all enjoy some healthy, safe women-against-women or men-against-men competition during those Olympics.

But this huge issue goes way beyond politics. I’ve heard from parents, student, teachers, and coaches all over the country about this. These are people who have personally seen the benefits of Title IX and are very concerned about Democrats’ attempts to take these opportunities away from women and girls.

There are countless stories of girls who have benefited from Title IX in my state of Alabama.

This includes athletes like Rachel Argent of Thorsby High School in Chilton County, Alabama. Rachel’s athletic ability and good grades drew the attention of college coaches across Alabama. […] Because of her talent and work ethic, Rachel received basketball scholarships to Faulkner State Community College in Bay Minette, Alabama. After [getting] her degree, she got a softball scholarship at Samford University. That scholarship […] put her on the right direction. […] She didn’t have to worry about landing a full-time job while she went to school and participated in sports. […]

After college, Rachel returned to Thorsby High School as a teacher and a coach. She wanted to give back to the school what she had gotten from Title IX. She taught Health and Physical Education for grades kindergarten to twelve. She coached girls’ softball, basketball, track, and volleyball. She made an impact on hundreds of girls across our state of Alabama. It was all made possible again by Title IX.

Rachel’s daughter, Addie, played softball, tennis, golf, and basketball at Chilton County High School. She got a gold scholarship to the University of Mobile where she graduated with a degree in Nursing. Her athletics scholarship was part of her getting a degree and becoming a nurse. There are countless other young women like Addie and Rachel across Alabama and every other state across the country. More than 50,000 young women in Alabama alone competed in high school sports this past year, 50,000. Every single one of them deserves the full benefit of fair competition.

And I’m grateful that every member of the Senate Republican leadership is a cosponsor of my Protection of Women and Girls in Sports Act. They’ve been very supportive. Leader Thune is a proud cosponsor of my bill, and I’m glad to have his support. Leader Thune is committed to scheduling a vote on this bill and putting every Democrat on the record on whether or not they support men competing in women’s sports. We brought this bill to the floor for a vote during the last Congress. Really, we brought it twice, and every single Democrat always voted against it. What does that tell you?

Leader Thune has not rescheduled it for a vote yet this congress. Right now, we’ve obviously got a lot of things to do with [confirming] President Trump’s cabinet. Then we get started on the reconciliation process and getting the American economy jumpstarted again. We have a lot to accomplish in the first 100 days of the Trump administration, and I hope this bill is part of that 100 days.

President Trump will sign an Executive Order again today banning men from competing in women’s sports. Let’s lock that commitment in. Let’s lock it in for young girls and women all across this country. Let’s bring this bill to the floor for a vote very soon so the Senate can send it to the President’s desk and make this permanent.

To my Senate colleagues who are on the fence about this, I would ask—do you have daughters? Do you have granddaughters? Do you have nieces? Would you want them competing against men in sports? Would you feel comfortable with them sharing a locker room with a biological male?

I’m excited to welcome my first granddaughter in a couple weeks, Rosie Grace. I would raise hell if she was forced to compete, dress, or use the same showers as men. And American taxpayers should not be forced to foot the bill for any schools that are allowing this to happen. The days of woke, swamp politicians running our government are over. Common sense has been restored to the White House, and Congress needs to get back to work and let President Trump work on this bill.

This isn’t about politics. This is about right and wrong. The American people have delivered a verdict. They want men out of women’s sports and women’s locker rooms.

President Trump is 100% with us on this. The time to act is now. It’s time to restore Title IX protections and save women’s sports.”

Tuberville Attends White House Executive Order Signing

Sen. Tuberville went to the White House for President Trump’s signing of an Executive Order restoring Title IX protections for women and girls everywhere. During his speech, President Trump shouted out Sen. Tuberville for all of the work he has done to champion women’s sports in Congress and throughout his coaching career.

The President also shouted out 3x Superbowl Champion Patrick Mahomes, whom Coach Tuberville recruited when he was at Texas Tech University.

“And Tommy Tuberville [is here], a great coach,” said President Trump. “You know, his quarterback was named ‘Mahomes.’ He was a great college coach and I said ‘How good was he?’ and he said, ‘You don’t wanna know how good—he made me into a great coach.’”

Tuberville Joins Kudlow from White House

Following the Executive Order signing, Sen. Tuberville joined “Kudlow” on Fox Business live from Pebble Beach at the White House.

Read excerpts from the interview below or watch here.

KUDLOW: “No more biological men in women’s sports. Wow. Big signing today by President Trump. Joining us now to talk about it is Alabama Senator, Tommy Tuberville. Senator Tuberville, good to see you, sir. Tell us about the signing. Tell us what was in the signing, if you would.”

TUBERVILLE: “Well, it’s been too long happening, Larry. It’s just unfortunate—for the last four years we’ve had to put up with this nonsense of biological boys and men participating in women’s sports. Not just in sports here, but also in the Olympics. It was a great day. Had a lot of people there [for the] Executive Order putting a stop to it, but we’ve gotta permanently do it. I’ve got a bill that’s the Protection of Women and Girls in Sports Act that we’ve got. Hopefully, we get it on the floor soon where we can make it permanent. There’s no reason in the world why men and boys should be able to participate in women’s [sports]. It’s just wrong, it’s dangerous. And, you know, it’s just a great day that we finally got this done.”

KUDLOW: “Senator Tuberville, you mentioned the Olympics. So, good question—how will the Olympic Committee look at this resolution? Will they abide by it? Will they fight it? What do you anticipate, sir?”

TUBERVILLE: “Well, you got to remember, Larry. This is gonna be in L.A. the next time they have it. President Trump mentioned that. The Olympic Committee, two years ago, decided to let each sport decide what they wanted to do and how they wanted to handle it. Unfortunately, boxing let men participate against the women and it was terrible—it really was. Somebody’s gonna get hurt. And so, hopefully, they come to their senses. President Trump will probably get involved in this—with the Olympic Committee, knowing him. And hopefully, we can get all men and boys banned from any kind of [women’s] sports in the Olympics. It’s just not fair.”

KUDLOW: “You know, it’s so ironic to me, Senator, politically. For all these years, going back to, I’m gonna say, Gloria Steinem in the 1970s—over 50 years. The Democratic Party said it was the party to defend women. Okay? But in recent years, as you well know, with the trans movement and so forth and biological men now being allowed to play in women’s sports, etcetera, etcetera. All of a sudden, the Democrats are in favor of that and are wrecking women’s sports and treating women athletes, female athletes incredibly unjustly? I mean, how do you figure that? Do they see the stupidity of this whole story or not?”

TUBERVILLE: “Yeah. They see it. They just won’t admit it. The problem they have, Larry, is they’ve lost the middle class. They have no support anymore. […] They’ve lost their base. They’re not going back. They’ve really gotten so far out there, Larry. You know, even the Democrats [think men shouldn’t compete in women’s sports]. A lot of Democrats voted for President Trump because of this one issue that the Democrats kept pushing.”

Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

February 6, 2025
MIL-OSI China: China extends anti-dumping duties on EU potato starch

Source: China State Council Information Office

China’s Ministry of Commerce will extend anti-dumping duties levied on potato starch imported from the European Union (EU) for another five years, starting Thursday.

If anti-dumping measures are terminated, the dumping of imported potato starch from the EU may continue or recur, potentially causing ongoing or renewed harm to China’s potato starch industry, the ministry said.

China first imposed anti-dumping duties on imported potato starch from the EU in 2007, with the duties lasting five years. On April 18, 2011, the country announced an adjustment of the anti-dumping duty rates to between 12.6 percent and 56.7 percent.

Potato starch is widely used in the food industry to make industrial materials, such as emulsifiers, as well as food products, such as instant noodles.

MIL OSI China News –

February 6, 2025
MIL-OSI China: Action plan 8.0 to inject more vitality into Shanghai

Source: China State Council Information Office 3

This aerial photo taken on Sept. 10, 2023 shows a view of Zhangjiang area of the China (Shanghai) Pilot Free Trade Zone in east China’s Shanghai. [Photo/Xinhua]

The latest business environment improvement action plan released in Shanghai on Wednesday will help the city better address market entities’ needs and inject more vitality into the city’s economic growth, said officials and market experts.

Their comments were made on Wednesday when the Shanghai municipal government held the business environment improvement work conference for the eighth consecutive year. The latest action plan, which is now in its eighth edition, was released during the conference.

The plan aims to enhance the sense of gain among enterprises by coming up with 58 detailed measures which are more substantial and down-to-earth, according to Lu Aiguo, head of the business environment construction division at the Shanghai Municipal Development and Reform Commission.

One focus of the new plan is deepening the reform by aligning with the standards specified in World Bank’s Business Ready evaluation system, said Lu. Ten related reform measures have been rolled out, covering market entry, operational venues, infrastructure, utilities, international trade and market competition, among others.

As to international trade, Shanghai will expand the benefit scope for controlled and inspected high-tech goods. The import pilot program for research and development as well as testing items should be further optimized. Customs clearance facilitation services will be improved by better implementing reform measures such as multi-modal transport and the application of electronic certificates, according to the new action plan.

Another 24 measures have been included in action plan 8.0 to optimize the all-round services rendered to companies. On the one hand, more innovative financing products should be introduced, providing continued financing support to small and medium-sized enterprises.

On the other, more efforts should be made to facilitate the outbound reaches of domestic companies while further opening up the local market. Professional service providers will be supported to set up branches in the markets involved in the Belt and Road Initiative.

Meanwhile, visas as well as entry and exit services for foreign talent will be more convenient. More foreign-invested projects should be introduced in the city and major foreign-invested projects should be settled at a faster pace, according to the new action plan.

Japanese carmaker Toyota announced on Wednesday that it has entered into an agreement with the Shanghai government to establish a new wholly-owned company in Jinshan district of Shanghai for the development and production of Lexus electric vehicles and batteries.

The advanced and mature industrial chains, logistics networks, talent supply and market size in Shanghai and the neighboring cities are the major reasons to land this new project, according to Toyota.

To improve services provided to companies, efforts will be made to promulgate a negative list for cross-border data flow within the China (Shanghai) Pilot Free Trade Zone, according to the new action plan.

Companies will be better guided to conduct data export activities in accordance with laws and regulations. This is conducive to companies’ international competitiveness, said Huang Lina, an official from the internet security division at Shanghai Cyberspace Administration.

The new action plan also includes 14 measures to optimize supervision over companies.

According to Wu Beibei, deputy director of the laws and regulations division at Shanghai Administration for Market Regulation, the targets, frequency and content of on-site inspections will be reduced to lower the impact on companies. The goal is to lower the number of planned administrative on-site inspections in the next two to three years, she said.

MIL OSI China News –

February 6, 2025
MIL-Evening Report: Unambitious and undermined: why NZ’s latest climate pledge lacks the crucial ‘good faith’ factor

Source: The Conversation (Au and NZ) – By Nathan Cooper, Associate Professor of Law, University of Waikato

New Zealand’s Climate Change Minister Simon Watts speaking during the the recent climate summit in Azerbaijan. Sean Gallup/Getty Images

The announcement of New Zealand’s new climate pledge under the Paris Agreement was met with sharp criticism last week.

The agreement commits nations to provide a new pledge, known as a Nationally Determined Contribution (NDC) every five years. But it also requires each pledge to be a “progression beyond” the previous one.

Climate Change Minister Simon Watts announced New Zealand would commit to reducing emissions by 51-55% below 2005 levels by 2035, which is only 1-5% above the current NDC of a 50% cut by 2030.

Technically, the new NDC represents a progression, albeit the smallest possible one. It was criticised as underwhelming and unambitious to combat climate change, raising the question whether the coalition government has done enough to comply with its international obligations.

The commitments of each member nation should align with the Paris Agreement’s purpose to hold global average temperature rise well below 2°C above pre-industrial levels and to pursue efforts to keep it at 1.5°C.

But the agreement also requires that each country’s NDC reflects its “highest possible ambition, reflecting its common but differentiated responsibilities and respective capabilities, in light of different national circumstances”.

Does the government’s announcement to step up emissions cuts by as little as 1% really represent New Zealand’s highest possible ambition in present circumstances?

In October last year, looking specifically at New Zealand’s potential domestic contribution to the new NDC, the Climate Change Commission advised that emissions cuts of 66% could be achieved without shrinking the economy.

This excludes potential additional cuts achieved through offshore mitigation – paying for overseas carbon credits or funding other countries to reduce their greenhouse emissions.

Clearly, deeper cuts are possible and there is room for significantly greater ambition.

The goal of the Paris Agreement is to limit climate change impacts by holding temperature rise well below 2°C.
Fiona Goodall/Getty Images

Bare minimum commitment

Even if the new NDC meets a minimal requirement for compliance, it is difficult to see how it adheres to the purpose of the Paris Agreement and the level of ambition required.

New Zealand’s NDC falls short of the commitments offered by other comparable countries and even some developing nations, including the oil and gas producer Brazil, which pledged to cut its emissions by 59-67% by 2035.

International law has long been guided by the principle of pacta sunt servanda, which translates to “agreements must be kept”. The principle reminds parties to any agreement or convention that all international obligations should be fulfilled in good faith.

Viewing New Zealand’s new NDC in the context of other recent decisions, it seems the coalition government may be pursuing policies that could undermine climate action while pledging the bare minimum internationally. This would be difficult to characterise as a party acting in good faith.

Immediately following the new NDC announcement, Resources Minister Shane Jones unveiled New Zealand’s national minerals strategy, along with a list of critical minerals.
These documents support the government’s goal to double exports from the mineral sector by 2035.

Despite reassurance in the strategy that minerals production will not come at the expense of our environment, it includes plans to scale up exports of metallurgical coal. But mining more of this coal, then burning it (usually in the process of steelmaking), will add to greenhouse gas emissions.

Wider concerns about the likely environmental damage and biodiversity loss linked with fast-tracked mining operations continue to be raised.

Meeting trade obligations

Last year’s decision to postpone the entry of agriculture into New Zealand’s Emissions Trading Scheme without a robust alternative means that agricultural emissions continue to avoid effective regulation.

Even recent measures to allow increased road speed limits have been criticised for increasing greenhouse gas emissions as well as worsening air quality and reducing road safety.

Despite Prime Minister Christopher Luxon’s claim to be “all about yes” even on climate change, such decisions are difficult to square with a responsible party to the Paris Agreement acting in good faith.

The Paris Agreement is clear that emissions pledges are not imposed but are to be determined nationally. The agreement itself lacks an enforcement mechanism, but recently agreed trade deals with the European Union and with the United Kingdom both contain binding and enforceable commitments to the agreement.

This is a reminder that trading partners are already monitoring New Zealand’s climate actions. Consumer attitudes and trade obligations might become a more powerful lever for climate action in the future. No government should ignore this.

As the US administration begins to withdraw from the Paris Agreement, now more than ever is the time for other countries to stay focused on its purpose and to match national commitments accordingly.

Without an NDC in line with the Paris goal, New Zealand’s government is not sending the right message to New Zealanders or to our trading partners and neighbours. It is failing to show international and regional leadership at a time when many Pacific nations are on the frontline of climate-related risk and damage.

Nathan Cooper does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Unambitious and undermined: why NZ’s latest climate pledge lacks the crucial ‘good faith’ factor – https://theconversation.com/unambitious-and-undermined-why-nzs-latest-climate-pledge-lacks-the-crucial-good-faith-factor-248877

MIL OSI Analysis – EveningReport.nz –

February 6, 2025
MIL-OSI USA: Cantwell Votes NO On Advancing Trump’s Pick to Lead Commerce Department

US Senate News:

Source: United States Senator for Washington Maria Cantwell

02.05.25

Cantwell Votes NO On Advancing Trump’s Pick to Lead Commerce Department

Lutnick supports Trump’s tariffs & waffled on his commitment to allocate chips funding & preserve NOAA; In WA state, every 2 in 5 jobs are tied to trade

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Finance Committee, voted against advancing Howard Lutnick, President Trump’s nominee to be Secretary of the Department of Commerce, to the full Senate for consideration.

In a committee markup today, Sen. Cantwell expressed her concerns with Lutnick’s support for President Trump’s proposed tariffs. She also pointed to Lutnick’s failure to commit to fully allocating the funds approved by Congress under the Cantwell-led CHIPS & Science Act, as well as his waffling on whether he’d protect NOAA – including NOAA’s crucial missions and functions, and the workforce delivering those services to the American people.

Sen. Cantwell had previously questioned Lutnick on these topics in a committee hearing last week – video of that hearing is HERE.

ON TRADE & TARIFFS

“Tariffs and trade wars are a major problem for my state, where two out of every five jobs are tied to trade-related industries,” Sen. Cantwell said in today’s committee meeting. “The Commerce [nominee] has said he’s advocating for the president’s policy [that] would cost my constituents $5 billion or more. We need a secretary that understands that these products and these issues need coalition building, not throwing down gauntlets that will lose jobs for my farmers.”

Yesterday, Sen. Cantwell delivered a speech on the Senate floor calling for the United States to repudiate the trade philosophy of Trump — whose proposed 25% tariffs on goods from Canada and Mexico and 10% tariff on goods from China would spark a trade war, drive up costs for American consumers, harm domestic businesses across hundreds of industries, and compromise the United States’ global leadership in the free trade ecosystem. A video of that speech is HERE; a transcript is HERE.

In Washington state, two out of every five jobs are tied to trade and related industries. In 2023, the state imported $19.9 billion of goods from Canada – primarily oil, gas, lumber, and electrical power — making our northern neighbors Washington state’s largest trade partner. Also in 2023, the state imported $1.7 billion in goods from Mexico, including motor vehicles, vehicle parts, and household appliances. More information about how President Trump’s proposed tariffs will impact businesses and consumers in the State of Washington is HERE.

ON CHIPS & SCIENCE FUNDING

“Over the last four years, there has been much investment in infrastructure [for] manufacturing that this committee has supported. Semiconductor expansion — $450 billion right here in the United States, thanks to the CHIPS & Science Act — and Mr. Lutnick, in various answers to various members of the committee, did not give a full commitment to making sure this money continues to go out the door,” Sen. Cantwell said in today’s committee meeting.

Sen. Cantwell was the main architect and key negotiator of the CHIPS & Science Act. In her position as Commerce chair, she was instrumental in securing the science R&D funding authorizations in the 11th hour of negotiations. A key component of the legislation is the Regional Technology and Innovation Hubs (Tech Hubs) program that was authored by Sen. Cantwell to strengthen U.S. economic and national security with investments in regions across the country. Earlier this month, the American Aerospace Materials Manufacturing Center (AAMMC) in Spokane was awarded $48 million from the program to establish the first-of-its-kind testbed facility in the United States focused on developing advanced thermoplastic materials – new types of lightweight, heat-moldable, and recyclable materials that can replace metal in aircraft parts. The AAMMC will serve as the nation’s hub for creating and testing these innovative materials that are essential for more rapidly building fuel-efficient and environmentally friendly aircraft.

ON DISMANTLING NOAA

“[NOAA] makes up more than 60% of the Commerce budget. When asked for the record if NOAA should be dismantled, as called for in [Project 2025], Mr. Lutnick would only say, if confirmed, he would figure it out. Given how central NOAA is for providing accurate weather forecasting, managing our fisheries, protecting our fishermen from Russian and Chinese illegal fishing, I was looking for a stronger commitment,” Sen. Cantwell said today.

Project 2025 calls for NOAA to be “dismantled and many of its functions eliminated,” calling it part of the “climate change alarm industry.” NOAA provides critical services to the Nation including weather forecasts, extreme storm tracking and monitoring, tools to enable communities to adapt to sea level rise and climate change, supporting fisheries management, and conserving marine mammals and other protected species.

Sen. Cantwell is a champion of NOAA and helped secure $3.3 billion in NOAA investments in the Inflation Reduction Act to help communities prepare for and adapt to climate change, boost science needed to understand changing weather and climate patterns, and invest in advanced computer technologies that are critical for extreme weather prediction and emergency response. Her Fire Ready Nation Act, bipartisan legislation to strengthen NOAA’s ability to help forecast, prevent, and fight wildfires, passed the Commerce committee unanimously today and now heads to the full Senate for consideration.

Video of Sen. Cantwell’s remarks on her Lutnick vote is HERE; audio is HERE; and a transcript is HERE.

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Cantwell Calls For Immediate Hearings on DOGE Treasury Access

US Senate News:

Source: United States Senator for Washington Maria Cantwell

02.05.25

Cantwell Calls For Immediate Hearings on DOGE Treasury Access

Joins letter from 19 Senators to Republican leaders of Senate Finance, Senate Banking committees

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), a senior member of the Senate Committee on Finance and ranking member of the Senate Committee on Commerce, Science, and Transportation, joined fellow members of the Senate Committee on Finance and of the Senate Banking Committee in sending a letter to Finance Chair Sen. Mike Crapo (R-ID) and Banking Chair Sen. Tim Scott (R-SC), requesting immediate hearings about reports that officials associated with Elon Musk gained access to sensitive U.S. Treasury payment systems.

“The Treasury Department’s Bureau of the Fiscal Service’s payment systems control the flow of more than $6 trillion in annual payments to households, businesses and other entities nationwide,” the lawmakers write. “Putting this system in the hands of unaccountable political actors raises significant economic and national security risks.”

“We ask that the Finance Committee and Banking Committee swiftly schedule hearings to allow Treasury Secretary Scott Bessent to answer critical questions about the risks posed by Musk and DOGE’s access to the Bureau of Fiscal Service’s payment systems,” the lawmakers conclude.

On Sunday, Sen. Cantwell released a statement regarding reports that Musk and his DOGE team had accessed these systems: “This threatens the privacy and funds owed to every American taxpayer and Social Security recipient. Congressional Republicans cannot continue to turn a blind eye as to how their own constituents’ private financial records are handled,” she said.

The full text of the letter is HERE and below:

Dear Chairman Crapo and Chairman Scott:

We write requesting that the Committee on Finance and the Committee on Banking, Housing, and Urban Affairs immediately hold hearings to examine reports that officials associated with Elon Musk and the so-called U.S. Department of Government Efficiency (“DOGE”) have gained access to systems that control payments to millions of American citizens, including Social Security, Medicare, tax refunds, and payments to small businesses.1 It is critical that the Senate understands this threat to the stability of a payment system that millions of Americans rely upon and that is critical to America’s global financial standing.

The Treasury Department’s Bureau of the Fiscal Service’s payment systems control the flow of more than $6 trillion in annual payments to households, businesses and other entities nationwide. These payment systems cover 87% of all federal payments and process more than a billion payments annually and are responsible for the distribution of Social Security and Medicare benefits, tax refunds, payments to federal employees and contractors, including competitors of Musk-owned companies, and thousands of other functions.

Putting this system in the hands of unaccountable political actors raises significant economic and national security risks. Information in these systems is critical to the Department’s management of the national debt. The takeover by Mr. Musk and his associates was achieved by engineering the ouster of a key official responsible for managing the extraordinary measures the Department has been taking to avoid a default. A misstep with these payment systems could lead to a technical default with a wide range of devastating consequences, from seniors missing Social Security payments to a global financial meltdown that costs trillions of dollars and millions of jobs.

Furthermore, granting access to Mr. Musk and his team – who may not have appropriate security clearances – access to this system risks exposing the sensitive tax and financial information of nearly every American. The Treasury payment system “includes sensitive personal information about the millions of Americans who receive Social Security checks, tax refunds and other payments from the federal government.” It is not clear why these individuals were granted unfettered access to such data, what they could do with it once inside the system, and what protections are in place to ensure the Department has been complying with its legal obligations under the Privacy Act, 26 U.S.C. 6103, as well as other statutes and Treasury regulations and policies that protect such sensitive information about millions of Americans.

Finally, we are deeply concerned that following the federal grant and loan freeze earlier this week, as well as Musk’s own comments on social media, officials associated with Musk may have intended to access these payment systems to illegally withhold payments authorized by law, and to circumvent the court orders prohibiting that freeze from going into effect. We ask that the Finance Committee and Banking Committee swiftly schedule hearings to allow Treasury Secretary Scott Bessent to answer critical questions about the risks posed by Musk and DOGE’s access to the Bureau of Fiscal Service’s payment systems.

Sincerely,

MIL OSI USA News –

February 6, 2025
MIL-OSI Australia: Wollongong businesses encouraged to pursue growth opportunities in South East Asia

Source: New South Wales Government 2

Headline: Wollongong businesses encouraged to pursue growth opportunities in South East Asia

Published: 6 February 2025

Released by: Minister for the Illawarra and the South Coast, Minister for Industry and Trade

The huge trade potential of Wollongong and the wider Illawarra area will be the focus of the latest NSW Government ASEAN Market Update for NSW Businesses series being held in Wollongong today.

The updates provide local businesses with information about trends and export opportunities across Southeast Asian markets.

The ASEAN bloc is NSW’s second-largest trading partner, with two-way trade in goods growing by more than nine per cent in the past year. Continued rapid growth is expected in sectors where NSW businesses excel, such as food and beverage, health, and the digital economy.

Held in partnership with Asialink Business, today’s session will bring together around 80 participants, including Wollongong businesses, industry groups, and diplomatic representatives from Southeast Asian nations, at iAccelerate within the University of Wollongong’s Innovation Campus.

Speakers at the forum include NSW exporters who have already utilised Investment NSW’s export support services to build connections and drive export sales across Southeast Asia.

The NSW Government is focussed on promoting ASEAN market opportunities to NSW businesses, with the region expected to become the world’s fourth largest economy by 2040.

The ASEAN Market Updates series, is supported by other initiatives led by Investment NSW to help small and medium businesses pursue international growth objectives in Southeast Asia and other important export markets around the globe.

In 2024/25, these include supporting cleantech companies to export to Malaysia and Singapore, and wine to be exported to Vietnam.

The ASEAN Market Updates series began with a session in Western Sydney last October and will continue in the coming months with events in the Northern Rivers, the Hunter and Wagga Wagga.

For more information on how the NSW Government supports business to export, visit Investment NSW: https://www.investment.nsw.gov.au/export/

Minister for Industry and Trade Anoulack Chanthivong said:

“The ASEAN region is entering a golden age, propelled by a young population, industrialisation and technological advances, which present significant opportunities for NSW exporters.

“ASEAN nations are actively pursuing economic growth, with an increasing focus on sustainable development, food and health resilience, the digital economy and skills.

“My ASEAN Market Updates series is all about unlocking the potential of NSW businesses to export and partner with Southeast Asia, where our two-way trade is worth $33.6 billion and continuing to grow.

“The attendance of so many senior ranking diplomats, including Ambassadors and Consuls General shows the international attractiveness of the NSW economy and is a big vote of confidence in the Illawarra region.”

Minister for the Illawarra and the South Coast Ryan Park said:

“The Illawarra is home to innovative businesses with enormous export potential, and Southeast Asia presents a golden opportunity for growth.

“The NSW Government is here to support Wollongong businesses every step of the way to ensure they can compete and thrive on the global stage.”

Member for Wollongong Paul Scully said:

“I’m more than willing to take any opportunity to help sell Wollongong to the world.

“Wollongong has strong connections with the ASEAN region, but there remains enormous potential to take our trade and investment relationship to the next level.

“The University of Wollongong has opened three campuses across Malaysia and has several research partnerships, which is just one example of how we’re cultivating deeper connections with the ASEAN region.

“Today’s ASEAN Market Updates series is an important opportunity for our local businesses to learn more about this dynamic region and how exporting their products and services could turbocharge their growth.”

MIL OSI News –

February 6, 2025
MIL-OSI USA: Senator Murray Blasts Musk Takeover of Treasury Payment Systems

US Senate News:

Source: United States Senator for Washington State Patty Murray

***VIDEO HERE***

Murray: “The richest man in the world is taking over the Treasury in the name of fighting corruption? The irony is almost as rich as Musk himself.”

Washington, D.C. — Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, is helping lead Senate Democrats in holding the Senate floor for a full 30 hours ahead of a final confirmation vote on Russell Vought to serve as Director of the Office of Management and Budget.

As Senator Murray delivered an hour-long floor speech on the Senate floor, she also specifically discussed how Elon Musk, like Vought, is working to illegal block funds and cut programs families rely on—including by gaining alarming access to sensitive financial systems:

“This is not Silicon Valley—where you can just ‘move fast and break things.’ When you break things here—people don’t get health care, people don’t get Social Security checks, people don’t get crucial warnings and lifesaving information.

“And anyone who thinks—’well, that surely won’t happen’—has not been paying attention. Because just this week, Elon Musk and Donald Trump put Americans in danger.

“We have citizens in dangerous corners of the world who were suddenly locked out of their emails and cut off from an app that is meant to help address threats like kidnapping—so no one should be shrugging this off and just saying ‘well what’s the worst that could happen.’ Because this can get really, really bad really, really fast.

“And if anyone is thinking ‘well it’s okay, we have guardrails, we have laws’—make no mistake, even though Trump and Musk have absolutely zero legal authority to hold up any federal payments that are law, that has not stopped them so far.

“As we’ve seen—they are already halting other funds illegally, they are already firing government watchdogs and officials left and right, regardless of our laws. They are already putting forward blatantly unconstitutional executive orders.

“The fact of the matter is—Trump and Musk have yet to find a law they think applies to them. They think because they are rich and powerful, they get to call all the shots—regardless of the courts and Congress. But that’s just not how things work in this country. Billionaires are not above the law. Neither are Presidents.”

The full text of Senator Murray’s remarks on Elon Musk can be found below, and video can be found HERE.

“And, M. President, I know we are discussing the Vought nomination now, but I want to talk about someone who has not been nominated to anything, he’s not been elected to anything, and yet he is serving as de facto Co-President—Elon Musk. Arguably he is more important and more influential than the elected sitting President. And he has proven himself in lock-step with Russ Vought, who we are voting on tomorrow, when it comes to slashing programs that matter to American families and ignoring the laws of our nation.

“In recent days, Musk has been busy illegally shuttering USAID and cutting off foreign assistance programs—which, as I’ve said, will lose jobs for Americans, lose lives in countries around the world, and lose leadership as adversaries like China fill the gap.

“Shockingly, Musk has even had people fired for denying his lackeys classified resources that they had no authority to access. And last weekend, we all learned Elon Musk essentially commandeered access to the Treasury Department’s most sensitive payment system handling six trillion dollars every year and managing nearly all of our federal disbursements.

“It’s a system that contains extremely sensitive personal and commercial information and I’ve been hearing from people across my state who are truly alarmed about what Musk and his associates having access to this system could mean for their data—and for funding that they count on.

“Let’s not mince words here: an unelected, unaccountable billionaire—with expansive conflicts of interest, deep ties to China, and an indiscreet axe to grind against perceived enemies—is hijacking our nation’s most sensitive financial data system and its checkbook. So that he can illegally block funds to our constituents based on the slightest whim or wildest conspiracy. Funds—mind you—that Congress, on a bipartisan basis, passed.

“Some Republicans are trying to suggest that Musk only has ‘viewing access’ to Treasury’s highly sensitive payment system as if that’s acceptable either! But why on earth should we believe that? Particularly when Musk himself is saying the exact opposite loudly and repeatedly for everyone to hear.

“What funds will Elon target next—life saving medical research? Homelessness assistance? Food banks? We already know he is falsely attacking faith-based organizations that help folks—and promising to cut off funds based on conspiracy theories. In other words: the world’s richest man has vowed to cut off funding that helps the least among us. Think about that.

“And next—think about how many dollars he himself makes from government contracts. I mean, seriously: the richest man in the world, with countless government contracts, and ties to our adversaries is taking over the Treasury in the name of fighting corruption? The irony is almost as rich as Musk himself.

“And let me underscore, M. President, just how dangerous this is—because now that Trump has handed over Treasury’s checkbook—what if Elon decides he doesn’t like how Rivian is getting federal funds to build an EV manufacturing facility, so what next?

“All Elon has to do is say they’re ‘woke,’ and he can convince Trump to illegally cut off those funds? Is that how this works now?

“Maybe Elon will decide he doesn’t like that Blue Origin—and not SpaceX—gets a contract, so he wants to gum up the works on their payments. Is that how this works?

“Maybe Elon decides he wants to get into electronic health systems—and maybe he wants to punish hospital systems that don’t take him up on whatever he’s selling. Private corporations and competitors need to take note—the potential for abuse and corruption by Elon, especially considering his track record, is pretty much limitless.

“And it is not just Treasury—Musk and his henchman are launching a full-scale invasion of sensitive data systems across government. We are talking about the Small Business Administration. We are talking about NOAA. We are talking about Medicare. The reporting is now clear they are not just looking either—they are directly making changes to some of those critical systems.

“This is not Silicon Valley—where you can just ‘move fast and break things.’ When you break things here—people don’t get their health care, they don’t get their Social Security checks, they don’t get crucial warnings and lifesaving information.

“And anyone who thinks—’well, that surely won’t happen’—has not been paying attention. Because just this week, Elon Musk and Donald Trump put Americans in danger.

“We have citizens in dangerous corners of the world who were suddenly locked out of their emails and they were cut off from an app that is meant to help address threats like kidnapping—so no one should be shrugging this off and just saying ‘well what’s the worst that could happen.’ Because this can get really, really bad really, really fast.

“And if anyone is thinking ‘well it’s okay, we have guardrails, we have laws’—make no mistake, even though Trump and Musk have absolutely zero legal authority to hold up any federal payments that are law, this has not stopped them so far.

“As we’ve seen—they are already halting other funds illegally, they are already firing government watchdogs and officials left and right, regardless of our laws. They are already putting forward blatantly unconstitutional executive orders.

“The fact of the matter is—Trump and Musk have yet to find a law they think applies to them. They think because they are rich and powerful, they get to call all the shots—regardless of the courts, regardless of Congress. That is just not how things work in this country.

“Billionaires are not above the law. Neither are Presidents. We do not have a monarchy, where a President is king. We do not have an oligarchy, where the richest people get the largest say. We, in this country, have a democracy—if we can keep it—where each citizen has a vote. We have checks and balances—where the President is accountable to the Congress and to the people, where he has to follow the laws we pass.

“But some of my colleagues across the aisle seem to be forgetting that our democracy does not work by magic. We have to do our part, our part here to hold Presidents accountable. Our job is not to say ‘yes’ to everything the President does—no matter how lawless or harmful. Our job is not to shrug our shoulders or cover our eyes. It is to fight for the people who sent us here—and to defend the Constitution.

“So Democrats will be pushing back with the tools we have—we will speak out, we will press this administration, we will open investigations, and we will demand accountability—but one tool we do not have is a majority in Congress. So that means, M. President, our Republican colleagues have to say ‘enough.’ We need them to join us. We need them to stand up to the corruption and lawlessness and stand up for the people they represent.

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Rosen’s Bipartisan Bill to Help Lower Child Care Costs, Expand Availability Advances Out of Committee

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)

A Recent Report Labels Entire State Of Nevada As A “Child Care Desert”
WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV) announced that her bipartisan Small Business Child Care Investment Act has advanced out of the Senate Committee on Small Business and Entrepreneurship. This bipartisan legislation will help lower child care costs by increasing the availability of affordable, high-quality child care for Nevada families. It allows non-profit child care providers that otherwise qualify as small businesses to access larger and more flexible loans from the U.S. Small Business Administration.
A recent report labeled the entire state of Nevada as a “child care desert,” and found that nearly 75 percent of children below the age of five don’t have access to a licensed child care provider. The report deemed the cost of child care a “huge concern” in Nevada and found it often to be more expensive than college tuition. It also attributed the lack of affordable and accessible child care to the worker shortage that Nevada businesses report experiencing.
“The lack of affordable, quality child care options is hurting hardworking Nevada families and forcing them to make tough financial choices,” said Senator Rosen. “That’s why I’ve been working across the aisle to pass my bipartisan bill to help lower costs by increasing access to affordable child care in our state. This legislation will help nonprofits, community organizations, churches, synagogues, and others to set up or expand child care centers, and I’m glad to see it advance out of committee today.”
Senator Rosen continues working to lower child care costs for Nevada’s hardworking families. Last year, she joined a bipartisan bill to provide child care services for police officers and support law enforcement families. Senator Rosen also joined in helping to introduce the Child Care for Working Families Act, legislation that would help lower child care costs for an average American family to no more than $10-a-day. During a confirmation hearing in the U.S. Senate Armed Services Committee, Senator Rosen secured a commitment from General David Allvin, Air Force Chief of Staff, to cut red tape in a program designed to make child care available for military families like Airmen at Nellis and Creech Air Force Bases who work overnight shifts.

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Jefferson, Do Non-inflationary Economic Expansions Promote Shared Prosperity? Evidence from the U.S. Labor Market

Source: US State of New York Federal Reserve

Thank you, Professor O’Connell, for that kind introduction and for the opportunity to talk to this group.1 I am delighted to be back at Swarthmore College. This special community brings back fond memories of fantastic students, great colleagues, and pedagogical excellence.

Yesterday, I discussed my outlook for the current U.S. economy. I highlighted how the economy is growing and appears to be roughly in balance, with low unemployment and declining inflation. Today, I will review some of the historical evidence pertaining to periods when the Federal Reserve has achieved both components of its dual mandate, maximum employment and stable prices, on a sustained basis—that is, periods of long non-inflationary economic expansions. My title question is whether economic evidence indicates that such expansions also result in greater shared prosperity.
My focus will be on the labor market. A reason for this focus is that for many individuals, their employment attachment is a key determinant of their household’s overall well-being. My approach will be to compare the current labor market with the labor market at the end of 2019—that is, at the end of the most recent long, non-inflationary expansion. Such a comparison provides a lens through which to view the prospects for broadly shared prosperity fostered by the current U.S. labor market.
The remainder of my talk is organized as follows. First, I describe the labor market at the end of 2019. After that, I discuss the state of the labor market in the immediate aftermath of the COVID-19 pandemic. Then, I describe the current labor market situation. Next, I discuss possible reasons why strong labor markets facilitate broad-based prosperity. Before concluding, I consider whether the benefits of long expansions are persistent.
The Labor Market on the Eve of the COVID-19 PandemicLet’s begin the exploration of my title question with a careful look at the situation during the historically strong labor market on the eve of the COVID-19 pandemic. Following the 2007-09 Global Financial Crisis, the U.S. economy expanded for 128 consecutive months, making it the longest economic expansion in U.S. history. During this period, as shown in figure 1, the aggregate unemployment rate fell steadily from a peak of 10 percent in October 2009 to 3.5 percent in September 2019, the lowest recorded in nearly 50 years. Job opportunities were plentiful in this strong labor market, with the ratio of vacancies to job seekers hovering around 1.2 throughout 2019, implying that businesses were seeking to fill more open positions than there were workers actively searching for employment. Moreover, while some long economic expansions have led to an unwelcome rise in prices, inflation remained low and stable. Indeed, the Federal Reserve was grappling with inflation somewhat below, rather than above, its longer-run 2 percent target.
In addition, and perhaps related to the length of the expansion, the pre-pandemic labor market was remarkable in terms of the broad-based gains seen across demographic groups, which contributed to a historic narrowing of employment disparities. For instance, as shown in figure 2, the unemployment rate among African Americans, the solid red line, has usually been about twice as high as that for white individuals, the solid blue line, and is more sensitive to the state of the business cycle. The unemployment rate among Hispanics, the dotted green line, falls between these two groups. In late 2019, however, both African American and Hispanic unemployment rates had fallen to the lowest levels on record up to that point, significantly narrowing the persistent unemployment gaps between these groups. Before this, the greatest improvement in the unemployment rate among African Americans was at the end of the 1991–2001 economic expansion, which itself was the second longest expansion in U.S. history. But in 2019, the unemployment rate for African Americans was about 2 percentage points lower than it was in early 2001.
The influence of the long expansion on employment gaps also was evident for other groups of workers. Like minorities, individuals with less education, and especially those who have not completed high school, also experience higher cyclical volatility in their employment.2 In 2019, as shown in figure 3, the unemployment rate gaps between workers with less than a high school education, the solid red line, and those who have attained at least a bachelor’s degree, the solid purple line, also were near multidecade lows. Further, the strong labor market created new opportunities for teens and younger workers, groups whose employment prospects, and even long-term career trajectories, are especially sensitive to the cyclical state of the economy.3
Beyond narrowing gaps between workers actively searching for a job, the strong pre-pandemic labor market also helped draw many new participants into the labor force. Among prime-age workers, those aged 25 to 54, the labor force participation rate began rising again around 2015, as shown in figure 4, reversing a declining trend. This was true among both men, the solid black line, whose participation had been steadily declining since the 1950s, and women, the dashed red line, whose participation had previously peaked in early 2000. Labor force participation among women was rising especially briskly in the months just before the pandemic, essentially reversing its entire decline over the previous 20 years. While this partially reflects broader demographic trends such as increasing educational attainment, participation was rising for both women with and without a college degree after 2015, suggesting that the strong labor market played a part in this reversal.
Turning now from employment and participation to earnings, nominal wages were growing solidly before the pandemic. As with gains in employment, the strong labor market was especially beneficial for some groups. Most noticeably, as shown in figure 5, wage growth for the bottom quartile of earners, the solid red line, started to pick up about five years into the expansion, in late 2014, and by 2019 was significantly stronger than for workers in higher earnings quartiles, the solid purple line.4 These differences in wage growth are important, as they imply convergence in levels and, therefore, declining wage inequality as the bottom of the distribution catches up to higher earners. Similarly, wages were growing faster for non-white workers relative to white workers in 2019, though differences by educational attainment were less pronounced at the time.
Looking back now, the U.S. economy in 2019 was in a good place. The labor market was tight but not overheating, bringing widespread gains to workers. Further, had it not been for the sudden and dramatic interruption of the COVID-19 pandemic, this strong labor market was expected to persist. In December 2019, the median Federal Open Market Committee (FOMC) participant expected the aggregate unemployment rate to remain below 4 percent through the end of 2022 while inflation was expected to move back up to the Committee’s 2 percent objective.5 Had this long, non-inflationary expansion continued as the Committee forecast, gaps in employment and earnings across groups may have continued to narrow as well.
The Labor Market Following the COVID-19 PandemicThe expansion, however, was cut short by the COVID-19 pandemic. In April 2020, the unemployment rate, as shown in figure 6, briefly surged to 14.8 percent, its highest rate since the Great Depression while the share of Americans seeking jobs (not shown) plummeted. Moreover, those same groups that had benefited from the strong pre-pandemic labor market—African American and Hispanic workers, women, and individuals without a college degree—generally fared worse at the onset of the pandemic. Although some of these groups typically experience greater losses in economic downturns, factors unique to the pandemic, including greater exposure to the industries most affected by lockdowns, also contributed to disparities in job losses. For instance, unlike a typical recession, the pandemic disproportionately affected service industries, which employ a larger share of women than industries like construction and manufacturing, which are generally more cyclically sensitive.
Just as the pandemic itself led to unprecedented losses in the labor market, the subsequent recovery was unprecedented in many ways. As the health risk abated and the economy reopened, labor demand surged as businesses attempted to re-hire workers, but many workers remained on the sidelines. By late 2021, the labor force participation rate was still well below its pre-pandemic level. Vacancies rose to record levels, while, at the same time, quits, as shown in figure 7, surged as workers sought out new job opportunities, leading some to refer to the post-pandemic recovery as the “Great Resignation.” Consequently, as shown in figure 8, the gap between available jobs, the solid black line, and available workers, the dashed red line, which had been just over 1 million positions in late 2019, widened to over 6 million, the equivalent of two job openings for every unemployed worker. This was an exceptionally tight labor market, far exceeding any in recent history, including the labor market before the pandemic.
The strong post-pandemic aggregate economy reversed the disparities between groups that initially widened in 2020. The aggregate unemployment rate fell to 3.4 percent in April 2023, its lowest since 1969. That same month, the unemployment rate for African Americans fell to 4.8 percent, the lowest level on record and 1/2 percentage point below the previous record set in 2019, as shown in figure 9 by the red solid line, which is the difference between the unemployment rate for African Americans and its own average in the year 2019.
Although labor force participation was initially slower to recover, the labor force participation rate among prime-age women climbed to its highest level ever in 2023, well above even pre-pandemic levels, as shown in figure 10 by the red dashed line, which is the difference between the labor force participation rate for women and its own average in the year 2019.
The tight labor market also led to a surge in nominal wage growth, especially for workers lower in the earnings distribution. In fact, as shown in figure 11, wage growth for low-wage workers, the solid red line, was strong enough, with a peak wage growth close to 7.5 percent in 2022, to drive a meaningful compression in the aggregate wage distribution (not shown). Economic research suggests that the pandemic recovery reversed around one-third of the increase in the aggregate ratio of the 90th percentile to the 10th percentile wage inequality since the 1980s.6 These gains at the bottom of the income distribution also were reflected in the experience of different demographic groups, as shown in figure 12, with stronger wage growth for nonwhite workers, the dashed red line, relative to white workers, the solid black line, and, unlike even the pre-pandemic expansion, for workers with a high school education or less relative to those with a bachelor’s degree or more.
Unlike the noninflationary pre-pandemic expansion, however, these nominal wage gains coincided with rising prices, reducing many workers’ actual purchasing power. Real wage growth deflated by the personal consumption expenditures price index, which adjusts for the effect of inflation on workers’ purchasing power, was negative for many workers in 2022, despite strong aggregate employment growth. Further, the costs of inflation also vary across groups, and there is evidence that rising prices may hurt lower-income populations more.7 This underscores the connection between the two components of the Federal Reserve’s dual mandate to promote both maximum employment and stable prices, since the benefits of strong labor markets are eroded when accompanied by an unwelcome rise in inflation.
The Current Labor Market SituationLet me turn now to the labor market situation more recently. As the economy has recovered from the pandemic, the labor market has come into better balance. By mid-2024, the gap between available jobs and available workers—I’ll show that figure again here—had essentially returned to where it was in 2019, reflecting both a decline in vacancies and improvements in labor supply. Various indicators pointed to a labor market that was still tight, but no longer overheating.
Currently, the labor market remains solid, on balance, and inflation continues a bumpy descent toward the FOMC’s 2 percent objective. Layoff activity and initial claims for unemployment insurance, shown in figure 13, remain low by historical standards even as job openings have moved down to more normal levels. The unemployment rate appears to have leveled off close to what the median FOMC participant currently sees as its long-run sustainable level of 4.2 percent.8 While employment gaps between certain demographic groups have widened a touch since 2022, they remain historically narrow. Further, a welcome development as inflation has moderated is that real wage growth has picked up even as nominal wage growth has slowed. Though wages are now growing similarly across demographic groups, the narrowing of the wage gap across demographic groups realized in 2021 and 2022 persists.
How Do Strong Labor Markets Facilitate Broad-Based Prosperity?Looking back at long, noninflationary episodes like the pre-pandemic expansion raises the question of why strong labor markets have been especially beneficial for certain demographic groups. Although the literature has not reached a definite conclusion to this question, researchers have pointed to several economic mechanisms that may help explain these patterns.
In 1973, the economist Arthur Okun argued that “high-pressure” labor markets—such as those in 2019 and during the pandemic recovery—allowed workers to move up the job ladder, creating new opportunities for individuals on the margins of the labor market.9,10 Further, he argued that when job openings are difficult to fill, employers relax hiring standards, creating new opportunities for individuals who otherwise might struggle to find employment. Consistent with this argument, economic research shows that as the labor market strengthened from 2010 to 2014, employers reduced education and experience requirements in online job postings.11 Economic research also highlights the role of more productive job-worker matches as tight labor markets facilitate a re-allocation of labor to better and more productive jobs.12 On the participation side, the labor force participation rate tends to respond to business cycles with a significantly longer lag than the unemployment rate, for instance, due to the stickiness of decisions related to caregiving or educational responsibilities. This suggests that long expansions are especially important for drawing non-participants back into the labor market.13
Of course, each business cycle is different, making it difficult to draw general conclusions from past episodes. The pandemic recovery, for example, led to a rise in retirements, far more than what would have been expected given population aging.14 On the downside, this contributed to the significant shortage of workers as the economy was reopening. On the upside, it may have created more opportunities for younger workers to move up the job ladder than is typical during a normal expansion, making Okun’s argument especially relevant. The COVID-19 pandemic also was a remarkable reallocation shock, and elevated quits and job switching may have improved the quality of matches between businesses and workers more than usual, potentially contributing to strong productivity growth and wage gains.
Perhaps paradoxically, excessively tight labor markets may not be beneficial to lower-wage workers in the long run. Some economists argue that hiring difficulties may lead firms to adopt technologies that substitute, rather than complement, workers, ultimately reducing labor demand.15 Similarly, an overheating labor market may lead some workers to prioritize short-term gains over longer-term career stability. Empirical evidence, for example, suggests that during economic expansions some young people choose to take an unstable job that is likely to disappear in the next recession, rather than invest in training opportunities.16
Are the Benefits of Long Expansions Lasting?Another key question for policymakers is whether the benefits of long expansions can be sustained, given that the same groups who benefit disproportionately from strong labor markets also fare worse in recessions. Again, the literature, while not conclusive, offers some reasons for cautious optimism. There is some empirical evidence that suggests that the benefits of tight labor markets are somewhat persistent, at least for African Americans and women.17 The fact that labor market disparities that worsened during the pandemic returned to their pre-pandemic levels so quickly following the pandemic may be another reason to be hopeful.
ConclusionLet me conclude by offering an answer to my title question. The weight of the historical evidence I discussed today suggests that broadly shared economic prosperity is more likely when the economy grows over time with low unemployment and stable prices. While the early part of the current expansion was inflationary, the intent of monetary policy actions over the past few years has been to return us to a prolonged period where prices are stable and the labor market remains solid. The historical experience of the U.S. labor market suggests that long, noninflationary expansions are associated with narrower gaps in employment and earnings, with minority groups and less-educated workers benefiting disproportionately from sustained periods of strong economic growth. Such benefits can help make up for the disproportionate losses experienced by the same groups during economic downturns and, in some cases, may even lead to lasting gains.
Finally, let me return to where I started, the Federal Reserve’s dual mandate: maximum employment and stable prices. The historical evidence that I have reviewed tonight suggests that shared prosperity is a byproduct of sustained accomplishment of our mission.
Thank you.

ReferencesAaronson, Stephanie R., Mary C. Daly, William L. Wascher, and David W. Wilcox (2019). “Okun Revisited: Who Benefits Most from a Strong Economy? (PDF)” Brookings Papers on Economic Activity, Spring, pp. 333–75.
Akerlof, George A., Andrew K. Rose, and Janet L. Yellen (1988). “Job Switching and Job Satisfaction in the U.S. Labor Market (PDF),” Brookings Papers on Economic Activity, no. 2, pp. 495–582.
Autor, David, Arindrajit Dube, and Annie McGrew (2023). “The Unexpected Compression: Competition at Work in the Low Wage Labor Market,” NBER Working Paper Series 31010. Cambridge, Mass.: National Bureau of Economic Research, March (revised May 2024).
Betts, Julian R., and Laurel L. McFarland (1995). “Safe Port in a Storm: The Impact of Labor Market Conditions on Community College Enrollments,” Journal of Human Resources, vol. 30 (Autumn), pp. 741–65.
Cajner, Tomaz, John Coglianese, and Joshua Montes (2021). “The Long-Lived Cyclicality of the Labor Force Participation Rate,” Finance and Economics Discussion Series 2021-047. Washington: Board of Governors of the Federal Reserve System, July.
Dellas, Harris, and Plutarchos Sakellaris (2003). “On the Cyclicality of Schooling: Theory and Evidence,” Oxford Economic Papers, vol. 55 (January), pp. 148–72.
Dellas, Harris, and Vally Koubi (2003). “Business Cycles and Schooling,” European Journal of Political Economy, vol. 19(4), pp. 843–59.
Jefferson, Philip N. (2005). “Does Monetary Policy Affect Relative Educational Unemployment Rates?” American Economic Review, vol. 95 (May), pp.76–82.
——— (2008). “Educational Attainment and the Cyclical Sensitivity of Employment,” Journal of Business and Economic Statistics, vol. 26 (October), pp. 526–35.
Krueger, Alan B. (2002). “Economic Scene: As Recovery Builds, the Less Educated Go to the End of the Employment Line,” New York Times, March 7.
Modestino, Alicia Sasser, Daniel Shoag, and Joshua Ballance (2016). “Downskilling: Changes in Employer Skill Requirements over the Business Cycle,” Labour Economics, vol. 41 (August), pp. 333–47.
Montes, Joshua, Christopher Smith, and Juliana Dajon (2022). ” ‘The Great Retirement Boom’: The Pandemic-Era Surge in Retirements and Implications for Future Labor Force Participation,” Finance and Economics Discussion Series 2022-081. Washington: Board of Governors of the Federal Reserve System, November.
Okun, Arthur M. (1973). “Upward Mobility in a High-Pressure Economy (PDF),” Brookings Papers on Economic Activity, no. 1, pp. 207–52.
Orchard, Jacob (2021), “Cyclical Demand Shifts and Cost of Living Inequality,” working paper, February (revised September 2022).
Oreopoulos, Philip, Till von Wachter, and Andrew Heisz (2012). “The Short- and Long-Term Career Effects of Graduating in a Recession,” American Economic Journal: Applied Economics, vol. 4 (January), pp. 1–29.

1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
2. See Jefferson (2005, 2008). Return to text
3. See Oreopoulos, Von Wachter, and Heisz (2012). Return to text
4. Nominal wages in the figure are measured by the Atlanta Fed’s Wage Growth Tracker. Series show 12-month moving averages of the median percent change in the nominal hourly wage of individuals observed 12 months apart. Workers are assigned to wage quartiles based on the average of their wage reports in both the Current Population Survey and outgoing rotation group interviews; workers in the lowest 25 percent of the average wage distribution are assigned to the 1st quartile, and those in the top 25 percent are assigned to the 4th quartile. Return to text
5. The December 2019 median forecast of FOMC participants is taken from the Summary of Economic Projections (SEP), which is available on the Board’s website at https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm. FOMC participants submit projections of future economic activity and their individual views of the appropriate path of monetary policy conditional thereupon four times a year. These projections are published as the SEP. The SEP is neither a consensus forecast nor is it a commitment to a policy path. Rather, it shows the median, central tendency, and range of the participants’ projections estimated using the 19 individual projections. Return to text
6. See Autor, Dube, and McGrew et al. (2023). Return to text
7. See Orchard (2022). Return to text
8. See the December 2024 median forecast of FOMC participants in the SEP, which is available on the Board’s website at https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm. Return to text
9. See Okun (1973). Return to text
10. While there is no official definition of a “high-pressure” labor market, the term usually refers to a period when the unemployment rate is below its natural rate—that is, below its long-run sustainable level. Return to text
11. See Modestino and others (2016). Return to text
12. See Akerlof, Rose, and Yellen (1988). Return to text
13. See Cajner, Coglianese, and Montes (2021). Return to text
14. See Montes, Smith, and Dajon (2022). Return to text
15. See Krueger (2002). Return to text
16. Specifically, empirical evidence indicates that educational enrollment rates go down during expansions. For four-year college enrollment rates, see Dellas and Sakellaris (2003); for community college enrollment rates, see Betts and McFarland (1995); for high school enrollment rates, see Dellas and Koubi (2003). Return to text
17. See Aaronson and others (2019). Return to text

MIL OSI USA News –

February 6, 2025
MIL-OSI Australia: ACCC denies authorisation for industry code on marketing of infant formula

Source: Australian Competition and Consumer Commission

The ACCC has denied authorisation sought by the Infant Nutrition Council for an industry code which seeks to restrict the advertising and promotion of infant formula.

The Infant Nutrition Council sought authorisation to continue to implement the Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement (MAIF Agreement) and its associated guidelines for a further five years.

The ACCC considers that the effectiveness of the MAIF Agreement is being undermined by several factors including its voluntary nature, its limited scope, and restrictions on its ability to capture the breadth of modern digital marketing methods.

As such, the ACCC considers that the claimed public benefits are unlikely to arise, or are likely to occur with or without the MAIF Agreement. Further, the ACCC considers the conduct is likely to result in some competitive detriment.

“We are not satisfied in all the circumstances that the MAIF Agreement is likely to result in public benefits that would outweigh the public detriments likely to result from it,” ACCC Acting Chair Mick Keogh said.

MAIF Agreement

The MAIF Agreement, initially established in 1992, has formed part of Australia’s response to its obligations as a signatory to the World Health Organisation’s International Code of Marketing Breast Milk Substitutes.

The MAIF Agreement is a voluntary, self-regulatory code of conduct which aims to restrict those manufacturers and importers of infant formula who opt in to the agreement from advertising and promoting formula for infants up to 12 months of age. Its implementation requires ACCC authorisation as it forms an agreement between competitors not to market their infant formula products.

“While the link between breastfeeding and improved health outcomes for mothers and children is undisputed, we are concerned there are several factors that undermine the effectiveness of the MAIF Agreement in protecting breastfeeding rates,” Mr Keogh said.

“We are not satisfied that the MAIF Agreement and associated guidelines are likely to result in a net public benefit to justify authorisation and consider that they are likely to result in some public detriment through reduced competition between infant formula manufacturers and importers, compared to the future without the conduct.”

Further information on the final determination is available on the ACCC’s public register at Infant Nutrition Council.

Note to editors

ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act.

Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Background

The Infant Nutrition Council represents the majority of manufacturers and importers of infant formula in Australia.

The Council applied for revocation of the existing authorisation and the substitution of a new one to continue to make and give effect to the MAIF Agreement and its associated guidelines for a further five years to ensure a framework remains in place while the Government prepares and implements its response to the independent review of the MAIF Agreement.

In September 2024, the ACCC announced it was proposing to deny this authorisation and sought feedback from interested parties which raised broader health policy issues including whether restrictions on marketing of infant formula should extend to breastmilk substitutes for children over 12 months of age and to retailers.

These issues go beyond the scope of the ACCC’s assessment of this application under competition law and are a matter for the Australian Government.

The Department of Health and Aged Care commissioned an independent review of the MAIF Agreement which found that it is no longer fit for purpose and recommended that it be replaced with a stronger regulatory framework in the form of a legislated, prescribed, mandatory code.

In a submission to the ACCC, the Department stated that the Government accepted this recommendation and intends to introduce a mandatory regime to restrict marketing of infant formula, which it expects would take two years to implement.

MIL OSI News –

February 6, 2025
MIL-OSI USA: Fischer Legislation to Improve Passenger Vehicle Safety Passes Commerce Committee

US Senate News:

Source: United States Senator for Nebraska Deb Fischer

U.S. Senator Deb Fischer’s (R-Neb.) legislation to improve passenger vehicle safety passed out of the Senate Commerce Committee today. The She Develops Regulations In Vehicle Equality and Safety (She DRIVES) Act passed unanimously and is now eligible for a vote on the Senate floor.

If signed into law, the She DRIVES Act would enhance passenger safety by updating U.S. crashworthiness testing procedures. Today, the dummies used during crash testing are modeled after the average height and weight of an adult male. This bill would require the use of a female crash test dummy in addition to the male dummy, a reform that will save thousands of lives and prevent tens of thousands of serious injuries. In addition to Senator Fischer, the legislation is cosponsored by U.S. Senators Patty Murray (D-Wash.), Marsha Blackburn (R-Tenn.), and Tammy Duckworth (D-Ill.).

“Today, women are 17 percent more likely to be killed in auto crashes than men. That tragic statistic is a preventable one. Our bill will update crash test dummy standards to reflect the diversity of drivers on our roads, ensuring protection and safety for more Americans. I’m grateful a bipartisan group of my colleagues voted yes on this commonsense legislation, and I look forward to getting it passed soon,” said Senator Fischer.

“Women are far more vulnerable than men to sustaining serious injuries from a car crash,” said Senator Blackburn. “The She DRIVES Act would help keep our mothers and daughters safer on the road by ensuring that women are finally represented in crash testing.”

“We can be doing so much more to improve roadway safety and make sure visiting a family member or a routine trip to the grocery store doesn’t end in tragedy,” said Senator Duckworth. “I’m proud our bipartisan legislation passed through committee and is now that much closer to helping us save lives by ensuring our crash test standards better represent the safety needs of all Americans. I’ll continue to work with Senator Fischer as we push for the full Senate to pass this bipartisan bill—because all Americans deserve safer roadways.”

“We applaud Senator Fischer for her steadfast leadership in advancing the She DRIVES Act and ensuring that vehicle safety standards account for all drivers and passengers,” said Women Drive Too Co-Chairs Susan Molinari and Beth Brooke. “This bill is a critical step toward modernizing crash testing to reflect the real-world experiences of women on the road. We are grateful for the bipartisan support from the Commerce Committee and look forward to working with Congress to see this life-saving legislation become law.”

“For far too long, vehicle safety testing standards have failed American women. Today, with the advancement of the bipartisan She DRIVES Act, the Senate Commerce Committee voted to end this fatal discrimination. While this victory is a testament to the power of collaboration across the aisle and country, the fight is not over yet. Now, it’s up to the full Senate get this across the finish line,” said Drive US Forward President and Founder Maria Weston Kuhn.

MIL OSI USA News –

February 6, 2025
MIL-OSI Banking: Samsung Electronics Highlights Galaxy S25 Ultra’s Mobile Gaming Capabilities at #PlayGalaxy Cup

Source: Samsung

On January 25, Samsung Electronics hosted the third #PlayGalaxy Cup in San Francisco. Collaborating with “Call of Duty®: Mobile” from game developer and publisher Activision, the #PlayGalaxy Cup showcased the Galaxy series’ innovative gaming performance in a tournament broadcasted live to gaming fans around the world via YouTube and Twitch.

Participating players used the Galaxy S25 Ultra and fully demonstrated the mobile device’s unmatched gaming capabilities. Powered by Qualcomm’s Snapdragon 8 Elite for Galaxy, the Galaxy S25 Ultra supports seamless gameplay even for high-performance games such as “Call of Duty®: Mobile.” Vulkan optimization sets a new standard for mobile gaming with a true-to-life graphic experience, and the enlarged Vapor Chamber optimizes the Galaxy S25 Ultra’s cooling system for more stable gameplay.

Named #PlayGalaxy Cup: The Greatest Rivalry With “Call of Duty®: Mobile,” the tournament was centered around an exciting battle between two of North America’s premiere “Call of Duty®: Mobile” eSports teams. World-renowned professional players participated — including Aerith and Vague from Tribe Gaming and AyeoRaph and Cartels from Luminosity Gaming. The presence of popular game streamers Bobby Plays and TeeP further intensified the rivalry between Team Tribe and Team Luminosity.

Livestreamed globally on famous “Call of Duty®: Mobile” content creator iFerg’s YouTube channel, the tournament captivated mobile gaming fans around the world and attracted an impressive three million views. Popular streamers jasontheween, stableronaldo and Arky hosted a #PlayGalaxy Cup watch party and engaged with fans through livestreams at the venue. Meanwhile, “Call of Duty®: Mobile” streamer NoahSunday and other content creators held their own #PlayGalaxy Cup watch parties remotely.

On the day of the event, the venue was packed with more than 250 enthusiastic fans cheering for their favorite teams. A large screen at the center of the arena vividly displayed the Galaxy S25 Ultra’s immersive graphics, quick response time and smooth, seamless gameplay — revealing new possibilities in mobile gaming.

“I am thrilled to see my favorite Tribe players and watch their gameplay in person,” said one Tribe Gaming fan who visited on-site. “I am on the edge of my seat throughout every round, wondering which team will win.”

The Galaxy S25 Ultra hands-on zone was prepared on-site, allowing audience members to experience the Galaxy S25 Ultra’s gaming performance themselves.

“Thanks to the Galaxy S25 Ultra’s excellent gaming performance, each team member could perform at their best and lead us to victory,” said Aerith from Tribe Gaming, captain of the winning team.

“The Galaxy S25 Ultra’s outstanding gaming performance provided a console-level gaming experience on mobile,” said TeeP, professional “Call of Duty®: Mobile” player and content creator.

During the tournament rehearsals, the Galaxy Buds3 Pro and JBL Quantum ONE headphones delivered exceptional audio quality that captivated players. Participants praised the wireless earbuds and headphones for their delay-free, realistic sound effects and professional-grade gaming performance.

“Thanks to the sound and noise-cancelling capabilities of the JBL Quantum One headphones, we were able to focus on the game and enjoy a more lifelike gameplay experience,” said Cartels from Team Luminosity.

“The #PlayGalaxy Cup was an excellent opportunity to demonstrate the Galaxy S25 Ultra’s powerful gaming capabilities to the world,” said Kiwook Moon, Head of Influencer Marketing Group, Mobile eXperience Business at Samsung Electronics. “We will continue to provide more innovative and immersive mobile gaming experiences through Galaxy devices.”

For further details, please visit Samsung Newsroom.

Activision, Call of Duty and the stylized letter M are trademarks of Activision Publishing, Inc. All other trademarks and trade names are the property of their respective owners.

MIL OSI Global Banks –

February 6, 2025
MIL-OSI Australia: Bendigo NEXT presents a dynamic program to inspire business innovation
Source: State of Victoria Local Government 2

The region’s biggest tourism conference, Bendigo NEXT, returns with an exciting program tailored for tourism professionals and businesses to thrive in Greater Bendigo.

Presented by Be.Bendigo in partnership with the City of Greater Bendigo and the Bendigo Tourism Board, Bendigo NEXT’s one-day showcase is from 10am to 4pm on Monday February 24 at the Quality Lakeside Hotel.

City Manager Economy & Experience James Myatt said Bendigo NEXT was a must-attend event for businesses eager to drive innovation, growth, and success in Bendigo and beyond.

“This year’s Bendigo NEXT conference builds on its tourism-focused roots whilst incorporating dynamic business training seminars designed to appeal to a broader audience in the business community,” Mr Myatt said.

“From the latest trends to practical tools for growth, this event is packed with insightful presentations, interactive workshops, strategies, and a networking session to connect and build new partnerships.

The MC for the day’s event is Bendigo Tourism Chair Kath Bolitho and the conference features an impressive program to inspire including:
- Victorian Tourism Industry and Council Updates & the Future of Business with AI with Despina Karatzias
- Upgrading nbn across the Bendigo region in 2025 with Emy Peel, Head of nbn Local – Victoria/Tasmania
- Workforce Requirements and Opportunities with Martin Collins from the Victorian Skills Authority
- Attracting Multicultural Visitors to Bendigo with Bendigo Heritage Attractions
- Accessible Content for Businesses with City of Greater Bendigo Community Engagement Officer Angela McKinley
- 2025 Highlights and Opportunities in Bendigo with Bendigo Art Gallery Curator Lauren Ellis, Manager Bendigo Venues & Events Julie Amos, Manager Major Events Nicole McNamara and Manager Destination and Experience Glenn Harvey
Be.Bendigo incoming CEO Hayley Tibbett said the program offered something for everyone.

“We’re really excited to be partnering with the City of Greater Bendigo to deliver the 2025 Bendigo NEXT Conference,” Ms Tibbett said.

“This is a dynamic and forward-thinking event that builds on its tourism-focused expertise with new elements to support small business owners and entrepreneurs.

“The program will deliver a wide of range of topics from expert-led presentations on critical topics like AI, workforce development, multicultural tourism, to interactive workshops on finance, marketing, and customer service tailored to your business needs.

“The conference is more accessible than ever, designed to deliver practical insights and meaningful connections that will help businesses thrive. We encourage tourism professionals, small business owners, and innovators across all industries to join us for a day of learning, inspiration, and networking.”

Bendigo NEXT stands for Networking, Emerging trends, eXperiences, and Technology.

To register, visit:

MIL OSI News –
February 6, 2025

MIL-OSI: Silicon Motion Announces Results for the Period Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

Business Highlights

Fourth quarter of 2024 sales decreased 10% Q/Q and decreased 6% Y/Y
- SSD controller sales: 4Q of 2024 decreased 5% to 10% Q/Q and decreased 5% to 10% Y/Y
- eMMC+UFS controller sales: 4Q of 2024 decreased 10% to 15% Q/Q and were flat Y/Y
- SSD solutions sales: 4Q of 2024 decreased 35% to 40% Q/Q and decreased 25% to 30% Y/Y
Announced annual cash dividend of $2.00 per American Depositary Share (“ADS”)

Financial Highlights

	4Q 2024 GAAP	4Q 2024 Non-GAAP*
• Net sales	$191.2 million (-10% Q/Q, -6% Y/Y)	$191.2 million (-10% Q/Q, -6% Y/Y)
• Gross margin	46.8%	47.0%
• Operating margin	10.3%	16.5%
• Earnings per diluted ADS	$0.68	$0.91

	Full Year 2024 GAAP	Full Year 2024 Non-GAAP*
• Net sales	$803.6 million (+26% Y/Y)	$803.6 million (+26% Y/Y)
• Gross margin	46.1%	46.2%
• Operating margin	11.6%	15.3%
• Earnings per diluted ADS	$2.69	$3.43

* Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended December 31, 2024. For the fourth quarter of 2024, net sales (GAAP) decreased sequentially to $191.2 million from $212.4 million in the third quarter of 2024. Net income (GAAP) increased to $23.0 million, or $0.68 per diluted ADS (GAAP), from net income (GAAP) of $20.8 million, or $0.62 per diluted ADS (GAAP), in the third quarter of 2024.

For the fourth quarter of 2024, net income (non-GAAP) decreased to $30.9 million, or $0.91 per diluted ADS (non-GAAP), from net income (non-GAAP) of $31.0 million, or $0.92 per diluted ADS (non-GAAP), in the third quarter of 2024.

All financial numbers are in U.S. dollars unless otherwise noted.

Fourth Quarter of 2024 Review

“We continued to execute well in the fourth quarter of 2024 despite the challenging consumer market, delivering revenue within our guided range and further expanding of our gross margin,” said Wallace Kou, President and CEO of Silicon Motion. ”For the full-year 2024, revenue rebounded strongly, growing 26% as compared to full-year 2023 and well above our initial expectations at the start of the year. For the full-year 2024, gross margin (non-GAAP) increased to 46.2% from 43.0% in 2023 despite the overall market weakness in the second half of 2024. We successfully launched our industry-leading PCIE Gen 5 controllers in the second half of 2024, winning four of the six flash makers and multiple module maker customers, which are all anticipated to ramp up throughout 2025. While the consumer market remains challenging in the near-term, we remain focused on delivering strong, sustainable long-term growth by broadening our product portfolio, expanding into new markets and growing our market share in the consumer, enterprise, automotive, industrial and commercial storage markets.”

Key Financial Results

(in millions, except percentages and per ADS amounts)	GAAP			Non-GAAP
(in millions, except percentages and per ADS amounts)	4Q 2024	3Q 2024	4Q 2023	4Q 2024	3Q 2024	4Q 2023
Revenue	$191.2	$212.4	$202.4	$191.2	$212.4	$202.4
Gross profit	$89.5	$99.3	$88.5	$89.9	$99.3	$89.3
Percent of revenue	46.8%	46.7%	43.7%	47.0%	46.8%	44.1%
Operating expenses	$69.9	$74.8	$71.0	$58.3	$65.1	$61.5
Operating profit	$19.7	$24.5	$17.6	$31.6	$34.2	$27.8
Percent of revenue	10.3%	11.5%	8.7%	16.5%	16.1%	13.8%
Earnings per diluted ADS	$0.68	$0.62	$0.63	$0.91	$0.92	$0.93

Other Financial Information

(in millions)	4Q 2024	3Q 2024	4Q 2023
Cash, cash equivalents, restricted cash and short-term investments—end of period	$334.3	$368.6	$369.0
Routine capital expenditures	$7.3	$7.4	$3.5
Dividend payments	$16.8	$16.8	$16.7

During the fourth quarter of 2024, we had $10.8 million of capital expenditures, including $7.3 million for the routine purchases of testing equipment, software, design tools and other items, and $3.5 million for building construction in Hsinchu.

Business Outlook
“Longer-term, we expect to continue increasing our market share within the mobile and PC markets through greater outsourcing by the NAND flash makers, which should drive greater revenue and profitability for Silicon Motion,” said Mr. Kou. “This year, we expect to benefit from the introduction of several new products, including our 8-channel PCIe Gen 5 controller that started shipping in the second half of 2024, our new UFS 4.1 controller for the mobile market that will begin to ramp-up in the second half of this year, and our new 4-channel mainstream PCIe Gen 5 that we expect to launch late this year. Additionally, we will benefit from our many automotive controllers that are rapidly expanding across multiple applications and our MonTitan suite of enterprise controllers that just started shipping in the second half of 2024 and are expected to increase in the second half of this year. Consumer demand remains weak in the first half of 2025 and is proving more challenging than we initially anticipated; however, we expect a strong rebound in the second half of this year driven from new product introductions and new project wins with our OEM customers, reaching close to a run-rate of $1 billion in annual revenue in 4Q25.”

For the first quarter of 2025, management expects:

(in millions, except percentages)	GAAP	Non-GAAP Adjustment	Non-GAAP
Revenue	$158m to $167m -17.5% to -12.5% Q/Q	—	$158m to $167m -17.5% to -12.5% Q/Q
Gross margin	46.9% to 47.4%	Approximately $0.1m*	47.0% to 47.5%
Operating margin	2.3% to 5.2%	Approximately $7.5m to $8.5m**	7.7% to 9.7%

* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $7.5 million to $8.5 million of stock-based compensation and dispute related expenses.

Conference Call & Webcast:
The Company’s management team will conduct a conference call at 8:00 am Eastern Time on February 6, 2025.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:
https://register.vevent.com/register/BI742c56c62eb0464e9ba0c61a39fa4c91

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
a better understanding of how management plans and measures the Company’s underlying business; and
an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.

M&A transaction expenses consist of legal, financial advisory and other fees related to the transaction.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.


Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended					For the Year Ended
	Dec. 31,		Sep. 30,		Dec. 31,	Dec. 31,	Dec. 31,
	2023		2024		2024	2023	2024
	($)		($)		($)	($)	($)
Net Sales	202,379		212,412		191,160	639,142	803,552
Cost of sales	113,854		113,142		101,635	368,752	432,862
Gross profit	88,525		99,270		89,525	270,390	370,690
Operating expenses
Research & development	56,432		58,486		54,156	174,357	217,822
Sales & marketing	6,205		7,009		7,360	26,920	27,450
General & administrative	7,600		9,315		8,350	27,923	31,354
Loss from settlement of litigation	720		–		–	1,312	1,250
Operating income	17,568		24,460		19,659	39,878	92,814
Non-operating income (expense)
Interest income, net	4,221		3,518		3,768	12,246	14,528
Foreign exchange gain (loss), net	(1,117	)	(488	)	1,046	914	1,391
Realized/Unrealized gain(loss) on investments	(51	)	(602	)	956	8,002	601
Others, net	8		–		–	8	–
Subtotal	3,061		2,428		5,770	21,170	16,520
Income before income tax	20,629		26,888		25,429	61,048	109,334
Income tax expense (benefit)	(464	)	6,045		2,389	8,175	18,614
Net income	21,093		20,843		23,040	52,873	90,720

Earnings per basic ADS	0.63		0.62		0.68	1.59	2.70
Earnings per diluted ADS	0.63		0.62		0.68	1.58	2.69

Margin Analysis:
Gross margin	43.7%		46.7%		46.8%	42.3%	46.1%
Operating margin	8.7%		11.5%		10.3%	6.2%	11.6%
Net margin	10.4%		9.8%		12.1%	8.3%	11.3%

Additional Data:
Weighted avg. ADS equivalents	33,416		33,687		33,690	33,353	33,642
Diluted ADS equivalents	33,587		33,700		33,814	33,470	33,722

Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended						For the Year Ended
	Dec. 31,		Sep. 30,		Dec. 31,		Dec. 31,		Dec. 31,
	2023		2024		2024		2023		2024
	($)		($)		($)		($)		($)
Gross profit (GAAP)	88,525		99,270		89,525		270,390		370,690
*Gross margin (GAAP)*	43.7%		46.7%		46.8%		42.3%		46.1%
Stock-based compensation (A)	106		63		162		406		311
Restructuring charges	648		–		164		3,996		209
Gross profit (non-GAAP)	89,279		99,333		89,851		274,792		371,210
*Gross margin (non-GAAP)*	44.1%		46.8%		47.0%		43.0%		46.2%

Operating expenses (GAAP)	70,957		74,810		69,866		230,512		277,876
Stock-based compensation (A)	(5,680	)	(3,595	)	(9,585	)	(17,141	)	(16,645	)
M&A transaction expenses	288		–		–		(2,606	)	–
Dispute related expenses	(3,477	)	(6,076	)	(1,999	)	(6,973	)	(13,135	)
Restructuring charges	(638	)	–		–		(5,217	)	–
Operating expenses (non-GAAP)	61,450		65,139		58,282		198,575		248,096

Operating profit (GAAP)	17,568		24,460		19,659		39,878		92,814
*Operating margin (GAAP)*	8.7%		11.5%		10.3%		6.2%		11.6%
Total adjustments to operating profit	10,261		9,734		11,910		36,339		30,300
Operating profit (non-GAAP)	27,829		34,194		31,569		76,217		123,114
*Operating margin (non-GAAP)*	13.8%		16.1%		16.5%		11.9%		15.3%

Non-operating income (expense) (GAAP)	3,061		2,428		5,770		21,170		16,520
Foreign exchange loss (gain), net	1,117		488		(1,046	)	(914	)	(1,391	)
Realized/Unrealized holding loss (gain) on investments	51		602		(956	)	(8,002	)	(601	)
Non-operating income (expense) (non-GAAP)	4,229		3,518		3,768		12,254		14,528

Net income (GAAP)	21,093		20,843		23,040		52,873		90,720
Total pre-tax impact of non-GAAP adjustments	11,429		10,824		9,908		27,423		28,308
Income tax impact of non-GAAP adjustments	(1,202	)	(649	)	(2,049	)	(4,169	)	(3,064	)
Net income (non-GAAP)	31,320		31,018		30,899		76,127		115,964

Earnings per diluted ADS (GAAP)	$0.63		$0.62		$0.68		$1.58		$2.69
Earnings per diluted ADS (non-GAAP)	$0.93		$0.92		$0.91		$2.27		$3.43

Shares used in computing earnings per diluted ADS (GAAP)	33,587		33,700		33,814		33,470		33,722
Non-GAAP adjustments	110		109		181		129		84
Shares used in computing earnings per diluted ADS (non-GAAP)	33,697		33,809		33,995		33,599		33,806

(A) Excludes stock-based compensation as follows:
Cost of sales	106		63		162		406		311
Research & development	4,103		2,377		6,670		11,709		11,284
Sales & marketing	361		455		978		1,858		1,954
General & administrative	1,216		763		1,937		3,574		3,407

Silicon Motion Technology Corporation
Consolidated Balance Sheet
(In thousands, unaudited)

	Dec. 31,	Sep. 30,	Dec. 31,
	2023	2024	2024
	($)	($)	($)
Cash and cash equivalents	314,302	313,924	276,068
Accounts receivable (net)	194,701	202,726	233,744
Inventories	216,950	214,574	201,154
Refundable deposits – current	49,656	51,102	54,645
Prepaid expenses and other current assets	e17,636	38,246	31,187
Total current assets	793,245	820,572	796,798
Long-term investments	17,116	16,878	17,326
Property and equipment (net)	167,417	181,983	188,398
Other assets	30,183	29,304	30,354
Total assets	1,007,961	1,048,737	1,032,876

Accounts payable	55,586	30,888	17,773
Income tax payable	7,544	14,444	13,176
Accrued expenses and other current liabilities	149,680	131,143	168,624
Total current liabilities	212,810	176,475	199,573
Other liabilities	60,455	62,673	59,548
Total liabilities	273,265	239,148	259,121
Shareholders’ equity	734,696	809,589	773,755
Total liabilities & shareholders’ equity	1,007,961	1,048,737	1,032,876

Silicon Motion Technology Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)

	For Three Months Ended							For the Year Ended
		Dec. 31,		Sep. 30,		Dec. 31,		Dec. 31,		Dec. 31,
		2023		2024		2024		2023		2024
		($)		($)		($)		($)		($)
Net income		21,093		20,843		23,040		52,873		90,720
Depreciation & amortization		5,356		6,664		7,256		21,810		25,331
Stock-based compensation		5,786		3,658		9,747		17,547		16,956
Investment losses (gain) & disposals		(432	)	602		(956	)	(8,217	)	(601	)
Changes in operating assets and liabilities		11,582		22,280		(45,245	)	65,070		(55,213	)
Net cash provided by (used in) operating activities		43,385		54,047		(6,158	)	149,083		77,193

Purchase of property & equipment		(10,758	)	(12,436	)	(10,836	)	(50,313	)	(44,449	)
Proceeds from disposal of properties		1,228		–		3		1,228		3
Purchase of long-term investments		–		–		(4,173	)	–		(4,173	)
Disposal of long-term investments		–		–		4,432		–		4,432
Net cash used in investing activities		(9,530	)	(12,436	)	(10,574	)	(49,085	)	(44,187	)

Dividend payments		(16,676	)	(16,812	)	(16,814	)	(16,690	)	(67,254	)
Net cash used in financing activities		(16,676	)	(16,812	)	(16,814	)	(16,690	)	(67,254	)

Net increase (decrease) in cash, cash equivalents & restricted cash		17,179		24,799		(33,546	)	83,308		(34,248	)
Effect of foreign exchange changes		1,508		186		(717	)	(1,373	)	(409	)
Cash, cash equivalents & restricted cash—beginning of period		350,303		343,611		368,596		287,055		368,990
Cash, cash equivalents & restricted cash—end of period		368,990		368,596		334,333		368,990		334,333

Shareholder Litigation:
On August 31, 2023, a Silicon Motion ADS holder (the “Plaintiff”) filed a putative class action complaint in the United States District Court for the Southern District of California, captioned Water Island Event-Driven Fund v. MaxLinear, Inc., No. 23-cv-01607 (S.D. Cal.), asserting claims against MaxLinear, Inc. (“MaxLinear”) and two of its officers (the “MaxLinear Defendants”) for alleged violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, in connection with alleged false and misleading statements made by the MaxLinear Defendants between June 6, 2023 and July 26, 2023 concerning MaxLinear’s intent to consummate the merger agreement it had entered into with Silicon Motion. On August 28, 2024, the Court dismissed the complaint against the MaxLinear Defendants without prejudice for lack of standing. On September 18, 2024, the Plaintiff filed an amended complaint against the MaxLinear Defendants, and also added Silicon Motion and two of its officers (the “Silicon Motion Defendants”), asserting substantially similar claims under the Exchange Act. The complaint seeks compensatory damages, including interest, costs and expenses, and such other equitable or injunctive relief that the court deems appropriate. The motion to dismiss the amended complaint is fully briefed. The Silicon Motion Defendants believe that the claims asserted against them are without merit and intend to defend themselves vigorously.

About Silicon Motion:
We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

The MIL Network –

February 6, 2025

MIL-OSI Security: New York Man Sentenced To 84 Months In Prison For Conspiring To Engage In Multimillion Dollar Wire Fraud Scheme

Source: Office of United States Attorneys

NEWARK, N.J. – A New York man was sentenced today to 84 months in prison for conspiring to commit wire fraud, Acting U.S. Attorney Vikas Khanna announced.

Terrell Fuller, 34, of Baldwin, New York, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with conspiring to commit wire fraud.

According to documents filed in the case and statements made in court:

Fuller and his co-conspirators submitted a fraudulent application to the Small Business Administration, which caused the SBA to provide them with approximately $1,200,000. In addition, Fuller and his co-conspirators opened bank accounts in the names of various entities and individuals, deposited illegally obtained or fraudulent checks into those accounts, and then withdrew and attempted to withdraw money from the accounts. Further, Fuller, using stolen personal identifying information, fraudulently rented locations to live in New York and failed to pay more than $400,000 in rent and fees for those locations. Through the conspiracy, Fuller and his co-conspirators obtained more than $2,000,000 in money and property through their fraudulent actions.

In addition to the prison term, Judge Chesler sentenced Fuller to 3 years of supervised release and $2,289,816.06 in restitution.

Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly, and special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in Newark.

###

Defense counsel: Scott Leemon, New York City, New York

MIL Security OSI –

February 6, 2025
MIL-OSI USA: Klobuchar Statement on the Privacy, Technology, and the Law Subcommittee

US Senate News:

Source: United States Senator for Minnesota Amy Klobuchar

WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) released the statement below following her appointment to the Senate Judiciary Antitrust, Competition Policy, and Consumer Rights and Privacy, Technology, and the Law subcommittees.

“Tech innovation strengthens our economy and touches every aspect of our lives, but there is still so much we must do to put guardrails in place and protect Americans – from children exposed to harmful content and illegal drugs to consumers who have no privacy protections. We also must continue the momentum on reforms to ensure we strengthen our antitrust laws to lower costs and ensure American markets are strong and breed innovation through competition.

Senator Blackburn – the Chair of the Technology Subcommittee – and I and a number of the other members of the subcommittee have worked together on legislation in this area, and I look forward to working with her and the entire committee. As Ranking Member of the Privacy, Technology, and the Law Subcommittee and a member of the Subcommittee on Antitrust, Competition Policy and Consumer Rights, I will work across the aisle to make progress on these crucial issues.”

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Commerce Committee Advances Schatz-Cruz Bipartisan Legislation To Keep Kids Safe, Healthy, Off Social Media
US Senate News:
Source: United States Senator for Hawaii Brian Schatz

Bill Now Moves To Full Senate For Consideration

WASHINGTON – Today, the U.S. Senate Commerce, Science, and Transportation Committee approved the Kids Off Social Media Act. Authored by U.S. Senators Brian Schatz (D-Hawai‘i), a senior member of the Senate Commerce Committee, Ted Cruz (R-Texas), Chair of the Senate Commerce Committee, Chris Murphy (D-Conn.), and Katie Britt (R-Ala.), the bipartisan legislation will keep kids off social media and help protect them from its harmful impacts. To do that, the bill would set a minimum age of 13 to use social media platforms and prevent social media companies from feeding algorithmically-targeted content to users under the age of 17. In addition to Schatz, Cruz, Murphy, and Britt, the Kids Off Social Media Act is cosponsored by U.S. Senators Peter Welch (D-Vt.), Ted Budd (R-N.C.), John Fetterman (D-Pa.), Angus King (I-Maine), Mark Warner (D-Va.), and John Curtis (R-Utah).

“There is no good reason for a nine-year-old to be on Instagram or Snapchat. The growing evidence is clear: social media is making kids more depressed, more anxious, and more suicidal. Yet tech companies refuse to anything about it because it would hurt their bottom line. This is an urgent health crisis, and Congress must act with the boldness and urgency it demands,” said Senator Schatz. “Protecting kids online is not a partisan issue, and our bipartisan coalition – which includes several parents of kids and teenagers – represents the millions of parents across the country who’ve long been asking for help.”

Upon the introduction of the Kids Off Social Media Act, Senator Cruz said, “Every parent I know is concerned about the online threats to kids—from predators to videos promoting self-harm, risky behavior, or low self-esteem. Many families have suffered due to Big Tech’s failure to take responsibility for its products. The Kids Off Social Media Act addresses these issues by supporting families in crisis and empowering teachers to better manage their classrooms. I am proud to work with Senator Schatz on this bipartisan legislation to combat the harms social media poses to children, especially in schools. As Chairman of the Commerce Committee, I am confident we can swiftly move this legislation and similar measures through committee and urge Congress to heed the calls of parents everywhere by delivering this bill to President Trump’s desk to help protect America’s youth.”

Specifically, the Kids Off Social Media Act would:
- Prohibit social media platforms from allowing children under the age of 13 to create or maintain social media accounts;
- Prohibit social media companies from pushing targeted content using algorithms to users under the age of 17;
- Provide the FTC and state attorneys general authority to enforce the provisions of the bill; and
- Follow existing CIPA framework, with changes, to require schools to work in good faith to limit social media on their federally-funded networks, which many schools already do.
Parents overwhelmingly support the mission of the Kids Off Social Media Act. A survey conducted by Count on Mothers shows that over 90 percent of mothers agree that there should be a minimum age of 13 for social media. Additionally, 87 percent of mothers agree that social media companies should not be allowed to use personalized recommendation systems to deliver content to children. Pew finds similar levels of concern from parents, reporting that 70 percent or more of parents worry that their teens are being exposed to explicit content or wasting too much time on social media, with two-thirds of parents saying that parenting is harder today compared to 20 years ago—and many of them cited social media as a contributing factor.

The Kids Off Social Media Act is supported by Public Citizen, National Organization for Women, National Association of Social Workers, National League for Nursing, National Association of School Nurses, KidsToo, Count on Mothers, American Federation of Teachers, American Counseling Association, National Federation of Families, National Association of Pediatric Nurse Practitioners, National Council for Mental Wellbeing, Parents Television and Media Council, Tyler Clementi Foundation, Parents Who Fight, Conservative Ladies of America, David’s Legacy Foundation, Digital Progress, HAS Coalition, Parents Defending Education Action, Concerned Women for America Legislative Action Committee, and the American Academy of Child and Adolescent Psychiatry.

A copy of the legislation is available here. For more information on the Kids Off Social Media Act, click here.
MIL OSI USA News –
February 6, 2025
MIL-OSI USA: Luján, Cohen Reintroduce Bicameral Legislation to Improve Roadway Safety and Uplift Victim Voices at DOT

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)

Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Committee on Commerce, Science, and Transportation, reintroduced the DOT Victim and Survivor Advocate Act to create a new role designated as the “National Roadway Safety Advocate” at the Department of Transportation (DOT) who will be responsible for working directly with roadway safety crash victims, survivors, and their families. Specifically, this new role will be responsible for building relationships with victims and survivors, providing education on DOT activities, and providing the victim perspective to the Secretary of Transportation and other DOT officials throughout the process of Department decision-making. U.S. Representative Steve Cohen (D-Tenn.) introduced companion legislation in the U.S. House of Representatives.

After suffering from a traffic crash, victim-advocates often don’t know where to go to make their voice heard and prevent crashes like theirs from happening to others. In addition, latest projections from the National Highway and Traffic Administration (NHTSA) estimate that 40,990 people died in motor vehicle traffic crashes in 2023 and millions more each year are involved in non-fatal crashes. Many of these crashes are preventable with the right policies in place to save lives.

“In New Mexico and across the country, far too many families know the pain of losing a loved one to a traffic crash. More must be done to address traffic safety issues, and that includes having an advocate for victims at the Department of Transportation,” said Senator Luján. “I’m proud to partner Representative Cohen to reintroduce the DOT Victim and Survivor Advocate Act to make this position a reality and ensure victims have a permanent seat at the table. As a victim and survivor of a drunk driving crash myself, I understand the necessity and importance of improving roadway safety and providing victims of roadway safety crashes with the support they deserve. I look forward to working with my colleagues to get this bill signed into law.”

“Traffic accident victims and their families deserve an advocate in the Department of Transportation to listen to their ideas for improving roadway safety, especially after the experience of suffering from a traffic accident. The DOT Victim and Survivor Advocate Act will help ensure that victim-advocates have a point of contact to work with at DOT and give them a permanent and respected voice in DOT decision-making. I’m pleased to partner with Senator Luján on this important legislation,” said Congressman Steve Cohen (TN-9).

This legislation is supported by a number of New Mexican advocates, including Eric Hein, IST Board Member; Barbara Toth, Vulnerable Road Users NM; and Linda Unruh, Bobby’s Law, NM. National supporters of this legislation include Mothers Against Drunk Driving (MADD), Advocates for Highway and Auto Safety, National Safety Council, Truck Safety Coalition, League of American Bicyclists, Institute for Safer Trucking, Families for Safe Streets, AnnaLeah & Mary For Truck Safety, Stop Underrides – In Loving Memory of Roya, StopDistractions.org, The Kiefer Foundation, Safe Kids Worldwide. Quotes from supporters are available here.

Senator Luján is a longtime advocate of comprehensive safety measures to save lives and keep our roadways safe. In 2021, Luján championed the HALT/RIDE Act, which was included in the Bipartisan Infrastructure Law and implements drunk and impaired driving measures to prevent drunk driving and help save thousands of lives each year. In March 2024, Luján called on the U.S. Department of Transportation to swiftly move forward with its rulemaking process to implement the HALT/RIDE Act, and to do so in a way that protects’ drivers privacy. Since the passage of the Bipartisan Infrastructure Law, Luján has supported a number of efforts encouraging the Department of Transportation to make positive progress to make our roadways safer, including putting an end to underride crashes and distracted driving, and completing vital rulemakings.

Full text of the legislation is available here.

MIL OSI USA News –

February 6, 2025

MIL-OSI: Orange County Bancorp, Inc. Announces Fourth Quarter and Full-Year Earnings for Fiscal 2024

Source: GlobeNewswire (MIL-OSI)

Net Interest Income increased $3.4 million, or 3.8%, to $91.8 million for the year ended December 31, 2024, from $88.4 million for the year ended December 31, 2023
Net Interest Margin grew 5 basis points to 3.83% for the year ended December 31, 2024, from 3.78% for the year ended December 31, 2023
Total Loans grew $68.7 million, or 3.9%, to $1.8 billion at December 31, 2024 as compared to $1.7 billion at December 31, 2023.
Total Deposits rose $114.6 million, or 5.6%, to $2.2 billion at December 31, 2024, from $2.0 billion at year-end 2023
Book value per share increased $1.72, or 11.8%, to $16.35 at December 31, 2024, from $14.63 at December 31, 2023
Trust and investment advisory income rose $470 thousand, or 16.7%, to $3.3 million for Q4 2024, as compared to $2.8 million for Q4 2023

MIDDLETOWN, N.Y., Feb. 05, 2025 (GLOBE NEWSWIRE) — Orange County Bancorp, Inc. (the “Company” – Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced net income of $7.2 million, or $0.63 per basic and diluted share, for the three months ended December 31, 2024. This compares with net income of $8.1 million, or $0.72 per basic and diluted share, for the three months ended December 31, 2023. The decrease in earnings per share, basic and diluted, was due primarily to an increase in non-interest expense offset by increases in net interest income and non-interest income during the current period. For the twelve months ended December 31, 2024, net income was $27.9 million, or $2.47 per basic and diluted share, as compared to $29.5 million, or $2.62 per basic and diluted share, for the twelve months ended December 31, 2023.

Book value per share rose $1.72, or 11.8%, from $14.63 at December 31, 2023 to $16.35 at December 31, 2024. Tangible book value per share increased $1.74, or 12.4%, from $14.06 at December 31, 2023 to $15.80 at December 31, 2024 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were driven primarily by earnings during the twelve months ended December 31, 2024, offset by an increase in accumulated other comprehensive income (loss) associated with unrealized losses within the investment securities portfolio.

“Orange Bank closed out 2024 with another solid quarter,” said Company President and CEO Michael Gilfeather. “Earnings of $7.2 million for the three months ended December 31, 2024 increased our full year total to $27.9 million. Though below our record $29.5 million in earnings the prior year, I am pleased by the results given challenges in the current interest rate environment and significant charges related to a non-performing participation loan. Additionally, given our historically conservative approach to credit quality, we have taken provisions to adequately reserve for charges associated with the previously disclosed participation loan.

The economic environment in our region remains strong, enabling us to expand and improve the quality of our loan portfolio. For the year just ended, total loans grew nearly $70 million, or 4%, to $1.8 billion.

Deposit growth was also robust during 2024, with deposits increasing $114.6 million, or 5.6%, to $2.2 billion at December 31, 2024. Even more impressive is the fact the majority of these new deposits were sourced internally as the result of a very targeted and strategic initiative.

Low cost deposits and strong, high quality loan growth enabled us to expand net interest margin to 3.83% for the year ended December 31, 2024 from 3.78% during the year ended December 31, 2023. This is no small achievement given the uncertainty regarding interest rate and economic policy that characterized much of the year.

Our Wealth Management business also maintained its consistent performance, contributing $3.3 million of trust and investment advisory income for the quarter, a $470 thousand, or 16.7%, increase over the same period last year. We have always viewed this division as an essential component of our business bank model, offering financial, advisory, estate and planning services for business customers and their families. Since inception, these services have allowed us to expand and retain our customer relationships, new and current, and increase overall customer satisfaction. As successful as this initiative has been, we saw an opportunity to leverage its success further through the promotion of David Dineen. David has been tasked with further aligning and expanding the capabilities of the Bank with the needs of our customers and we are very excited by its prospects.

We have worked hard to deliver strong, consistent results, despite occasional challenges, and it is exciting to see the market recognize our efforts. This resulted in favorable stock price performance during the year that supported a 2-for-1 stock split in Q4, improving liquidity for shareholders. We always seek opportunities that benefit stakeholders, whether customers, shareholders or employees, and it is rewarding to achieve and implement them.

As we end the year with another solid quarter, I want to again thank our employees for their hard work and dedication, our customers for their trust and business, and our investors for their continued confidence and support.”

Fourth Quarter and Fiscal Year 2024 Financial Review

Net Income

Net income for the fourth quarter of 2024 was $7.2 million, a decrease of $960 thousand, or 11.8%, from net income of $8.1 million for the fourth quarter of 2023. The decrease was primarily the result of increased non-interest expense over the same quarter last year. Net income for the twelve months ended December 31, 2024 was $27.9 million, as compared to $29.5 million for the same period in 2023. The decrease similarly reflected increased non-interest expense during the twelve months of 2024 over the same period in 2023.

Net Interest Income

For the three months ended December 31, 2024, net interest income rose $929 thousand, or 4.2%, to $23.1 million, versus $22.2 million during the same period last year. The increase was driven primarily by a $1.4 million increase in interest and fees on loans during the current period. For the twelve months ended December 31, 2024, net interest income reached $91.8 million, representing an increase of $3.4 million, or 3.8%, over the twelve months ended December 31, 2023.

Total interest income rose $639 thousand, or 2.0%, to $32.2 million for the three months ended December 31, 2024, compared to $31.6 million for the three months ended December 31, 2023. The increase reflected a 5.4% growth in interest and fees associated with loans and a 3.2% increase in interest income from tax-exempt investment securities. For the twelve months ended December 31, 2024, total interest income rose $9.5 million, or 8.0%, to $127.2 million as compared to $117.8 million for the twelve months ended December 31, 2023.

Total interest expense decreased $290 thousand during the fourth quarter of 2024, to $9.1 million, as compared to $9.4 million during the fourth quarter of 2023. The decrease represented the combined effect of management focus on low-cost deposits and a decrease in costs associated with brokered deposits and borrowed funds utilized as alternate sources of funding. Interest expense associated with Time Deposits, mainly brokered, decreased to $1.7 million during the fourth quarter of 2024 as compared to $2.5 million during the fourth quarter of 2023. Interest expense associated with FHLB advances drawn and other borrowings during the quarter totaled $1.9 million, as compared to $2.6 million during the fourth quarter of 2023. During the twelve months ended December 31, 2024, total interest expense rose $6.1 million, to $35.5 million, as compared to $29.4 million for the same period last year.

Provision for Credit Losses

As of January 1, 2023, the Company adopted the current expected credit losses methodology (“CECL”) accounting standard, which includes loans individually evaluated, as well as loans evaluated on a pooled basis to assess the adequacy of the allowance for credit losses. The Bank seeks to estimate lifetime losses in its loan and investment portfolio using discounted cash flows and supplemental qualitative considerations, including relevant economic considerations, portfolio concentrations, and other external factors, as well as evaluation of investment securities held by the Bank.

The Company recognized net recovery within its provision for credit losses of $51 thousand for the three months ended December 31, 2024, as compared to a $462 thousand charge for the three months ended December 31, 2023. This recovery was due primarily to slower loan growth during the 2024 fourth quarter combined with the composition of loans closed during the quarter. The allowance for credit losses to total loans was 1.44% as of December 31, 2024 and 2023. For the twelve months ended December 31, 2024, the provision for credit losses totaled $7.7 million as compared to $7.9 million for the twelve months ended December 31, 2023. No reserves for investment securities were recorded during 2024.

Non-Interest Income

Non-interest income rose $562 thousand, or 15.0%, to $4.3 million for the three months ended December 31, 2024, compared to $3.7 million for the three months ended December 31, 2023. This growth was due to increased fee income within several of the Company’s fee income categories, including investment advisory income, trust income, and service charges on deposit accounts. For the twelve months ended December 31, 2024, non-interest income increased $2.6 million, to $16.0 million, as compared to $13.4 million for the twelve months ended December 31, 2023.

Non-Interest Expense

Non-interest expense was $18.5 million for the fourth quarter of 2024, reflecting an increase of $3.7 million, or 25.4%, as compared to $14.7 million for the same period in 2023. The increase in non-interest expense consisted primarily of increases in compensation costs, technology charges, and professional fees as well as the recognition of increased costs associated with the nonperforming loan participation and certain costs related to a fraudulent incident within one of our branches. As a result, our efficiency ratio increased to 67.4% for the three months ended December 31, 2024, from 56.9% for the same period in 2023. For the twelve months ended December 31, 2024, our efficiency ratio increased to 60.5% from 55.8% for the same period in 2023. Non-interest expense for the twelve months ended December 31, 2024 reached $65.2 million, reflecting an $8.4 million increase over non-interest expense of $56.8 million for the twelve months ended December 31, 2023.

Income Tax Expense

Provision for income taxes for the three months ended December 31, 2024 was $1.8 million, as compared to $2.6 million for the same period in 2023. For the twelve months ended December 31, 2024, the provision for income taxes was $6.9 million, as compared to $7.7 million for the twelve months ended December 31, 2023. The decrease for both 2024 periods was due to lower income before income taxes. Our effective tax rate for the three-month period ended December 31, 2024 was 20.1%, as compared to 24.1% for the same period in 2023. Our effective tax rate for the twelve-month period ended December 31, 2024 was 19.9%, as compared to 20.6% for the same period in 2023.

Financial Condition

Total consolidated assets increased $24.5 million, or approximately 1.0%, to $2.5 billion at December 31, 2024. The stability of the balance sheet reflects loan growth and continued increases in deposits and cash, as well as paydowns of borrowings during the current twelve-month period.

Total cash and due from banks increased from $147.4 million at December 31, 2023, to $150.3 million at December 31, 2024, an increase of approximately $3.0 million, or 2.0%. This slight increase resulted primarily from increases in deposit balances and managed loan growth which elevated cash levels while reducing short-term borrowings.

Total investment securities decreased $51.0 million, or 10.1%, from $504.5 million at December 31, 2023 to $453.5 million at December 31, 2024. The decrease continues to be driven primarily by investment maturities and paydowns during the twelve months of 2024.

Total loans increased $68.7 million, or 3.9%, from $1.7 billion at December 31, 2023 to $1.8 billion at December 31, 2024. The increase was primarily driven by an increase of $102.7 million related to commercial real estate loans as well as a $3.8 million increase in home equity loans offset by decreases in all other loan categories during 2024.

Total deposits increased $114.6 million, reaching $2.2 billion at December 31, 2024, from $2.0 billion at December 31, 2023. This increase was due primarily to $94.1 million of growth in money market accounts, $26.2 million increase in interest bearing demand accounts, and $42.9 million increase in savings accounts. The increases in deposit accounts were offset by a $48.1 million decrease in noninterest-bearing demand accounts and relatively stable balances in certificates of deposit, mainly associated with brokered deposits utilized by the Bank for short term funding purposes. Deposit composition at December 31, 2024 included 45.6% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represented approximately 39% of total deposits at December 31 2024, as compared to 37% of total deposits at December 31, 2023.

FHLBNY short-term borrowings decreased by $111.0 million, or 49.4%, to $113.5 million as of December 31, 2024, as compared to $224.5 million at December 31, 2023. The decrease in borrowings was driven by increased deposits which outpaced loan growth in 2024 and allowed for paydowns of borrowings while maintaining adequate levels of cash at December 31, 2024. The decrease in borrowings reflects a strategic focus on actively managing liquidity sources and pursuing opportunities to reduce funding costs.

Stockholders’ equity increased approximately $20.2 million during the year ended 2024, reaching $185.5 million at December 31, 2024 from $165.4 million at December 31, 2023. The increase was due primarily to $27.9 million of net income during the twelve months of 2024, partially reduced by dividends and an increase in unrealized losses of approximately $3.6 million, net of taxes, mainly related to the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss).

At December 31, 2024, the Bank maintained capital ratios in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital to average assets ratio was 10.23%, both common equity and Tier 1 capital to risk weighted assets were 14.12%, and total capital to risk weighted assets was 15.37%.

Wealth Management

At December 31, 2024, our Wealth Management Division, which includes trust and investment advisory, held $1.8 billion in assets under management or advisory, as compared to $1.6 billion at December 31, 2023, a 12.9% increase. Trust and investment advisory income for the year ended December 31, 2024 reached $12.2 million, representing an increase of 18.5%, or $1.9 million, as compared to $10.3 million for the year ended December 31, 2023.

The breakdown of trust and investment advisory assets as of December 31, 2024 and December 31, 2023, respectively, is as follows:

ORANGE COUNTY BANCORP, INC.
SUMMARY OF AUM/AUA
(UNAUDITED)
(Dollar Amounts in thousands)
	At December 31, 2024				At December 31, 2023
	Amount		Percent		Amount		Percent
Investment Assets Under Management & Advisory	$	1,105,143	61.99	%	$	909,384	57.56	%
Trust Asset Under Administration & Management	677,723		38.01	%	670,515		42.44	%
Total	$	1,782,866	100.00	%	$	1,579,899	100.00	%

Loan Quality

At December 31, 2024, the Bank had total non-performing loans of $6.3 million, or 0.35% of total loans. Total non-accrual loans represented approximately $6.3 million of loans as of December 31, 2024, compared to $4.4 million at December 31, 2023. The increase was primarily the result of one commercial real estate participation loan which remains non-performing and in non-accrual status at year end.

Liquidity

Management believes the Bank has the necessary liquidity to meet normal business needs. The Bank uses a variety of resources to manage its liquidity position. These include short term investments, cash from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits exceeding $250,000, brokered deposits, FHLBNY advances, and other borrowings. As of December 31, 2024, the Bank’s cash and due from banks totaled $150.3 million. The Bank maintains an investment portfolio of securities available for sale, comprised mainly of US Government agency and treasury securities, Small Business Administration loan pools, mortgage-backed securities, and municipal bonds. Although the portfolio generates interest income for the Bank, it also serves as an available source of liquidity and funding. As of December 31, 2024, the Bank’s investment in securities available for sale was $453.5 million, of which $104.7 million was not pledged as collateral or specifically designated to any borrowings. Additionally, as of December 31, 2024, the Bank’s overnight advance line capacity at the FHLBNY was $512.2 million, of which $101.0 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of December 31, 2024, the Bank’s unused borrowing capacity at the FHLBNY was $398.7 million. The Bank also maintains additional borrowing capacity of $20 million with other correspondent banks. Additional funding is available to the Bank through the discount window lending by the Federal Reserve. At December 31, 2024, the Bank was not utilizing any available funding from the Federal Reserve.

The Bank also considers brokered deposits an element of its deposit strategy. As of December 31, 2024, the Bank had brokered deposit arrangements with various terms totaling approximately $180.0 million.

Non-GAAP Financial Measure Reconciliations
The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.

	December 31, 2024			December 31, 2023
	(Dollars in thousands except for share data)
Tangible Common Equity:
Total stockholders’ equity	$	185,531		$	165,376
Adjustments:
Goodwill	(5,359		)	(5,359		)
Other intangible assets	(821		)	(1,107		)
Tangible common equity	$	179,351		$	158,910
Common shares outstanding	11,350,158			11,302,622
Book value per common share	$	16.35		$	14.63
Tangible book value per common share	$	15.80		$	14.06

Tangible Assets
Total assets	$	2,509,927		$	2,485,468
Adjustments:
Goodwill	(5,359		)	(5,359		)
Other intangible assets	(821		)	(1,107		)
Tangible assets	$	2,503,747		$	2,479,002
Tangible common equity to tangible assets	7.16		%	6.41		%

About Orange County Bancorp, Inc

Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.5 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

Forward Looking Statements

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

For further information:
Michael Lesler
EVP & Chief Financial Officer
mlesler@orangebanktrust.com
Phone: (845) 341-5111


ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(UNAUDITED)
	(Dollar Amounts in thousands except per share data)

			December 31, 2024			December 31, 2023

		ASSETS

Cash and due from banks			$	150,334		$	147,383
Investment securities – available-for-sale			443,775			489,948
(Amortized cost $519,567 at December 31, 2024 and $560,994 at December 31, 2023)
Restricted investment in bank stocks			9,716			14,525
Loans			1,815,751			1,747,062
Allowance for credit losses			(26,077		)	(25,182		)
	Loans, net		1,789,674			1,721,880

Premises and equipment, net			15,808			16,160
Accrued interest receivable			6,680			5,934
Bank owned life insurance			42,257			41,447
Goodwill			5,359			5,359
Intangible assets			821			1,107
Other assets			45,503			41,725

		TOTAL ASSETS	$	2,509,927		$	2,485,468

		LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits:
	Noninterest bearing		$	651,135		$	699,203
	Interest bearing		1,502,224			1,339,546
		Total deposits	2,153,359			2,038,749

FHLB advances, short term			113,500			224,500
FHLB advances, long term			10,000			10,000
Subordinated notes, net of issuance costs			19,591			19,520
Accrued expenses and other liabilities			27,946			27,323

		TOTAL LIABILITIES	2,324,396			2,320,092

		STOCKHOLDERS’ EQUITY

Common stock, $0.25 par value; 30,000,000 shares authorized;
	11,366,608 issued; 11,350,158 and 11,302,622 outstanding,
	at December 31, 2024 and December 31, 2023, respectively		2,842			2,842
Surplus			120,896			120,392
Retained Earnings			129,919			107,361
Accumulated other comprehensive income (loss), net of taxes			(67,751		)	(64,108		)
Treasury stock, at cost; 16,450 and 63,986 shares at December 31,
	2024 and December 31, 2023, respectively		(375		)	(1,111		)
		TOTAL STOCKHOLDERS’ EQUITY	185,531			165,376

		TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,509,927		$	2,485,468

ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
			For Three Months Ended December 31,					Twelve Months Ended December 31,
			2024			2023		2024		2023
INTEREST INCOME
	Interest and fees on loans		$	27,263		$	25,866	106,030		$	96,264
	Interest on investment securities:
		Taxable	2,696			3,153		11,672		12,723
		Tax exempt	582			564		2,304		2,285
	Interest on Federal funds sold and other		1,665			1,984		7,221		6,498

		TOTAL INTEREST INCOME	32,206			31,567		127,227		117,770

INTEREST EXPENSE
	Savings and NOW accounts		5,308			4,045		20,475		13,126
	Time deposits		1,658			2,500		7,399		6,393
	FHLB advances and borrowings		1,932			2,643		6,666		8,938
	Subordinated notes		230			230		921		922
		TOTAL INTEREST EXPENSE	9,128			9,418		35,461		29,379

		NET INTEREST INCOME	23,078			22,149		91,766		88,391

Provision for credit losses			(51		)	462		7,710		7,868
		NET INTEREST INCOME AFTER
		PROVISION FOR CREDIT LOSSES	23,129			21,687		84,056		80,523

NONINTEREST INCOME
	Service charges on deposit accounts		278			221		1,015		809
	Trust income		1,511			1,391		5,511		5,098
	Investment advisory income		1,772			1,422		6,738		5,241
	Investment securities gains(losses)		–			–		–		107
	Earnings on bank owned life insurance		264			259		815		984
	Other		480			450		1,893		1,180
		TOTAL NONINTEREST INCOME	4,305			3,743		15,972		13,419

NONINTEREST EXPENSE
	Salaries		7,177			6,141		27,475		24,747
	Employee benefits		2,243			2,080		8,938		7,439
	Occupancy expense		1,243			1,147		4,790		4,761
	Professional fees		1,601			1,241		5,931		4,753
	Directors’ fees and expenses		272			769		1,053		1,451
	Computer software expense		1,761			1,336		5,952		5,050
	FDIC assessment		330			380		1,308		1,403
	Advertising expenses		409			583		1,575		1,657
	Advisor expenses related to trust income		18			31		113		120
	Telephone expenses		181			178		746		712
	Intangible amortization		72			72		286		285
	Other		3,159			770		7,043		4,415
		TOTAL NONINTEREST EXPENSE	18,466			14,728		65,210		56,793

	Income before income taxes		8,968			10,702		34,818		37,149

Provision for income taxes			1,804			2,578		6,935		7,671
		NET INCOME	$	7,164		$	8,124	27,883		$	29,478

Basic and diluted earnings per share			$	0.63		$	0.72	$	2.47	$	2.62

Weighted average shares outstanding			11,322,045			11,264,908		11,303,118		11,258,300

ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)

	Three Months Ended December 31,
	2024					2023
	Average Balance		Interest		Average Rate	Average Balance		Interest		Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,813,263	$	27,261	5.96%	$	1,725,560	$	25,863	5.95%
PPP Loans	174		2		4.56%	222		3		5.36%
Investment securities	456,552		3,207		2.79%	471,955		3,480		2.93%
Due from banks	143,908		1,665		4.59%	149,312		1,984		5.27%
Other	9,033		71		3.12%	12,432		237		7.56%
Total interest earning assets	2,422,930		32,206		5.27%	2,359,481		31,567		5.31%
Non-interest earning assets	94,263					98,224
Total assets	$	2,517,193				$	2,457,705

Liabilities and equity:
Interest-bearing demand accounts	$	339,233	$	402	0.47%	$	314,008	$	409	0.52%
Money market accounts	698,335		3,967		2.25%	600,451		2,958		1.95%
Savings accounts	269,244		939		1.38%	228,078		678		1.18%
Certificates of deposit	162,610		1,658		4.05%	217,137		2,500		4.57%
Total interest-bearing deposits	1,469,422		6,966		1.88%	1,359,674		6,545		1.91%
FHLB Advances and other borrowings	132,908		1,932		5.77%	187,989		2,643		5.58%
Subordinated notes	19,579		230		4.66%	19,508		230		4.68%
Total interest bearing liabilities	1,621,909		9,128		2.23%	1,567,171		9,418		2.38%
Non-interest bearing demand accounts	679,727					719,535
Other non-interest bearing liabilities	25,664					24,376
Total liabilities	2,327,300					2,311,082
Total shareholders’ equity	189,893					146,623
Total liabilities and shareholders’ equity	$	2,517,193				$	2,457,705

Net interest income			$	23,078				$	22,149
Interest rate spread ¹					3.04%					2.92%
Net interest margin ²					3.78%					3.72%
Average interest earning assets to interest-bearing liabilities	149.4%					150.6%

Notes:
¹ The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
² Net interest margin is the annualized net interest income divided by average interest-earning assets

ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)

	Twelve Months Ended December 31,
	2024					2023
	Average Balance		Interest		Average Rate	Average Balance		Interest		Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,760,057	$	106,022	6.01%	$	1,683,232	$	96,236	5.72%
PPP Loans	192		8		4.16%	1,133		28		2.47%
Investment securities	467,145		13,255		2.83%	503,410		14,055		2.79%
Due from banks	153,634		7,221		4.69%	142,003		6,498		4.58%
Other	8,218		721		8.75%	11,561		953		8.24%
Total interest earning assets	2,389,246		127,227		5.31%	2,341,339		117,770		5.03%
Non-interest earning assets	95,597					96,259
Total assets	$	2,484,843				$	2,437,598

Liabilities and equity:
Interest-bearing demand accounts	$	366,103	$	1,751	0.48%	$	331,056	$	1,284	0.39%
Money market accounts	670,231		15,199		2.26%	617,345		9,429		1.53%
Savings accounts	254,098		3,525		1.38%	245,663		2,413		0.98%
Certificates of deposit	168,202		7,399		4.39%	165,239		6,393		3.87%
Total interest-bearing deposits	1,458,634		27,874		1.91%	1,359,303		19,519		1.44%
FHLB Advances and other borrowings	126,149		6,666		5.27%	170,371		8,938		5.25%
Subordinated notes	19,553		921		4.70%	19,481		922		4.73%
Total interest bearing liabilities	1,604,336		35,461		2.20%	1,549,155		29,379		1.90%
Non-interest bearing demand accounts	675,983					717,689
Other non-interest bearing liabilities	26,440					23,338
Total liabilities	2,306,759					2,290,182
Total shareholders’ equity	178,084					147,416
Total liabilities and shareholders’ equity	$	2,484,843				$	2,437,598

Net interest income			$	91,766				$	88,391
Interest rate spread ¹					3.11%					3.13%
Net interest margin ²					3.83%					3.78%
Average interest earning assets to interest-bearing liabilities	148.9%					151.1%

Notes:
¹ The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
² Net interest margin is the annualized net interest income divided by average interest-earning assets

ORANGE COUNTY BANCORP, INC.
SELECTED RATIOS AND OTHER DATA
(UNAUDITED)

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2024	2023	2024	2023
Performance Ratios:
Return on average assets (1)	1.14%	1.32%	1.12%	1.21%
Return on average equity (1)	15.09%	22.16%	15.66%	20.00%
Interest rate spread (2)	3.04%	2.92%	3.11%	3.13%
Net interest margin (3)	3.78%	3.72%	3.83%	3.78%
Dividend payout ratio (4)	19.76%	15.95%	19.05%	17.56%
Non-interest income to average total assets	0.68%	0.61%	0.64%	0.55%
Non-interest expenses to average total assets	2.93%	2.40%	2.62%	2.33%
Average interest-earning assets to average interest-bearing liabilities	149.39%	150.56%	148.92%	151.14%

	At	At
	December 31, 2024	December 31, 2023
Asset Quality Ratios:
Non-performing assets to total assets	0.25%	0.18%
Non-performing loans to total loans	0.35%	0.25%
Allowance for credit losses to non-performing loans	413.99%	568.83%
Allowance for credit losses to total loans	1.44%	1.44%

Capital Ratios (5):
Total capital (to risk-weighted assets)	15.37%	14.16%
Tier 1 capital (to risk-weighted assets)	14.12%	12.91%
Common equity tier 1 capital (to risk-weighted assets)	14.12%	12.91%
Tier 1 capital (to average assets)	10.23%	9.42%

Notes:
(1) Annualized for the three and twelve month periods ended December 31, 2024 and 2023, respectively.
(2) Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the periods.
(3) The net interest margin represents net interest income as a percent of average interest-earning assets for the periods.
(4) The dividend payout ratio represents dividends paid per share divided by net income per share.
(5) Ratios are for the Bank only.

ORANGE COUNTY BANCORP, INC.
SELECTED OPERATING DATA
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
	Three Months Ended December 31,					Twelve Months Ended December 31,
	2024			2023		2024		2023
Interest income	$	32,206		$	31,567	$	127,227	$	117,770
Interest expense	9,128			9,418		35,461		29,379
Net interest income	23,078			22,149		91,766		88,391
Provision for credit losses	(51		)	462		7,710		7,868
Net interest income after provision for credit losses	23,129			21,687		84,056		80,523
Noninterest income	4,305			3,743		15,972		13,419
Noninterest expenses	18,466			14,728		65,210		56,793
Income before income taxes	8,968			10,702		34,818		37,149
Provision for income taxes	1,804			2,578		6,935		7,671
Net income	$	7,164		$	8,124	$	27,883	$	29,478

Basic and diluted earnings per share	$	0.63		$	0.72	$	2.47	$	2.62
Weighted average common shares outstanding	11,322,045			11,264,908		11,303,118		11,258,300

	At			At
	December 31, 2024			December 31, 2023
Book value per share	$	16.35		$	14.63
Net tangible book value per share (1)	$	15.80		$	14.06
Outstanding common shares	11,350,158			11,302,622

Notes:
(1) Net tangible book value represents the amount of total tangible assets reduced by our total liabilities. Tangible assets are calculated by reducing total assets, as defined by GAAP, by $5,359 in goodwill and $821, and $1,107 in other intangible assets for December 31, 2024 and December 31, 2023, respectively.

ORANGE COUNTY BANCORP, INC.
LOAN COMPOSITION
(UNAUDITED)
(Dollar Amounts in thousands)
	At December 31, 2024				At December 31, 2023
	Amount		Percent		Amount		Percent
Commercial and industrial (a)	$	251,313	13.84	%	$	273,562	15.66	%
Commercial real estate	1,362,054		75.01	%	1,259,356		72.08	%
Commercial real estate construction	80,993		4.46	%	85,725		4.91	%
Residential real estate	74,973		4.13	%	78,321		4.48	%
Home equity	17,365		0.96	%	13,546		0.78	%
Consumer	29,053		1.60	%	36,552		2.09	%
Total loans	1,815,751		100.00	%	1,747,062		100.00	%
Allowance for loan losses	26,077				25,182
Total loans, net	$	1,789,674			$	1,721,880

(a) – Includes PPP loans of:	$	170			$	215

ORANGE COUNTY BANCORP, INC. DEPOSITS BY ACCOUNT TYPE (UNAUDITED) (Dollar Amounts in thousands)
	At December 31, 2024						At December 31, 2023
	Amount		Percent		Average Rate		Amount		Percent		Average Rate
Noninterest-bearing demand accounts	$	651,135	30.24	%	0.00	%	$	699,203	34.30	%	0.00	%
Interest bearing demand accounts	331,115		15.38	%	0.42	%	304,892		14.95	%	0.49	%
Money market accounts	679,082		31.54	%	2.15	%	584,976		28.69	%	2.04	%
Savings accounts	271,014		12.59	%	1.25	%	228,161		11.19	%	1.19	%
Certificates of Deposit	221,013		10.26	%	3.97	%	221,517		10.87	%	4.57	%
Total	$	2,153,359	100.00	%	1.31	%	$	2,038,749	100.00	%	1.29	%

ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
(Dollar Amounts in thousands)

	December 31, 2024			December 31, 2023

Non-accrual loans:
Commercial and industrial	$	293		$	556
Commercial real estate	6,000			2,692
Commercial real estate construction	–			–
Residential real estate	6			1,179
Home equity	–			–
Consumer	–			–
Total non-accrual loans	6,299			4,427
Accruing loans 90 days or more past due:
Commercial and industrial	–			–
Commercial real estate	–			–
Commercial real estate construction	–			–
Residential real estate	–			–
Home equity	–			–
Consumer	–			–
Total loans 90 days or more past due	–			–
Total non-performing loans	6,299			4,427
Other real estate owned	–			–
Other non-performing assets	–			–
Total non-performing assets	$	6,299		$	4,427

Ratios:
Total non-performing loans to total loans	0.35		%	0.25		%
Total non-performing loans to total assets	0.25		%	0.18		%
Total non-performing assets to total assets	0.25		%	0.18		%

The MIL Network –

February 6, 2025

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

Source: GlobeNewswire (MIL-OSI)

Fourth quarter revenue of $1,341 million decreased 5% sequentially and 2% year-over-year; full year revenue of $5,513 million increased 7% from prior year, driven by international revenue growth of 10%
Fourth quarter operating income of $198 million decreased 19% sequentially and 8% year-over-year; full year operating income of $938 million increased 14% from prior year
Fourth quarter net income of $112 million, an 8.4% margin, decreased 29% sequentially and 20% year-over-year; full year net income of $506 million, a 9.2% margin, increased by 21% from prior year
Fourth quarter adjusted EBITDA* of $326 million, a 24.3% margin, decreased 8%, or 88 basis points, sequentially and increased 2%, or 74 basis points, year-over-year; full year adjusted EBITDA* of $1,382 million, a 25.1% margin, increased 17%, or 197 basis points, from prior year
Fourth quarter cash provided by operating activities of $249 million and adjusted free cash flow* of $162 million; full year cash provided by operating activities of $792 million and adjusted free cash flow* of $524 million
Shareholder return of $67 million for the quarter, which included dividend payments of $18 million and share repurchases of $49 million
Board approved quarterly cash dividend of $0.25 per share, payable on March 19, 2025, to shareholders of record as of February 21, 2025

^{*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled}

HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the fourth quarter of 2024 and full year 2024.

Revenues for the fourth quarter of 2024 were $1,341 million, a decrease of 5% sequentially and 2% year-over-year. Operating income was $198 million in the fourth quarter of 2024, compared to $243 million in the third quarter of 2024 and $216 million in the fourth quarter of 2023. Net income in the fourth quarter of 2024 was $112 million, with an 8.4% margin, a decrease of 29%, or 279 basis points, sequentially, and a decrease of 20%, or 193 basis points, year-over-year. Adjusted EBITDA* was $326 million, a 24.3% margin, a decrease of 8%, or 88 basis points, sequentially, and an increase of 2%, or 74 basis points, year-over-year. Basic income per share in the fourth quarter of 2024 was $1.54 compared to $2.14 in the third quarter of 2024 and $1.94 in the fourth quarter of 2023. Diluted income per share in the fourth quarter of 2024 was $1.50 compared to $2.06 in the third quarter of 2024 and $1.90 in the fourth quarter of 2023.

Fourth quarter 2024 cash flows provided by operating activities were $249 million, compared to $262 million in the third quarter of 2024, and $375 million in the fourth quarter of 2023. Adjusted free cash flow* was $162 million, a decrease of $22 million sequentially, and $153 million year-over-year. Capital expenditures were $100 million in the fourth quarter of 2024, compared to $78 million in the third quarter of 2024, and $67 million in the fourth quarter of 2023.

Revenue for the full year 2024 was $5,513 million, compared to revenues of $5,135 million in 2023. Operating income for the full year was $938 million, compared to $820 million in 2023. The Company’s full year 2024 net income was $506 million, compared to $417 million in 2023. Full year cash flows provided by operations were $792 million, compared to $832 million in 2023. Adjusted free cash flow* for the full year was $524 million compared to $651 million in 2023. Capital expenditures for the full year 2024 were $299 million, compared to $209 million in 2023.

Girish Saligram, President and Chief Executive Officer, commented, “The fourth quarter witnessed a significant drop in activity levels in Latin America and a more cautious tone in a few key geographies. Despite a challenging environment in the fourth quarter, the overall full year 2024 was another one of setting new operational highs, and I would like to express my gratitude to the One Weatherford team for that. We ended the year with the best safety record we have ever had, strong margin expansion and solid cash generation.

While the activity outlook continues to evolve, margins and cash flow performance continue to be the cornerstone of our financial and strategic objectives. We are well-positioned to deliver another year of strong cash flow generation in 2025. While there is some temporary activity reduction, we continue to believe in the industry’s mid to long-term resilience and remain committed to our goal of achieving EBITDA margins in the high 20’s over the next few years.”

*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

Operational & Commercial Highlights

ADNOC awarded Weatherford a three-year contract for the provision of rigless services as part of the reactivation of ADNOC’s onshore strings.
Kuwait Oil Company (KOC) awarded Weatherford a Managed Pressure Drilling (MPD) services contract focused on improving operational efficiency, enhancing safety, accelerating well-delivery timelines, and reducing costs by deploying Weatherford’s innovative Victus^TM Intelligent MPD system.
KOC awarded Weatherford a one-year contract to provide and operate two onshore Real Time Decision Centers.
A National Oil Company (NOC) in Qatar awarded Weatherford a five-year contract to provide fishing and drilling tools, with a five-year extension option.
An NOC in Asia awarded Weatherford a three-year contract for the provision of Wireline conveyance and tooling services and a three-year contract for Tubular Running Services (TRS) in onshore India.
OMV Petrom awarded Weatherford a two-year contract for openhole and cased-hole logging services in Romania.
A major operator in Asia awarded Weatherford a three-year contract for providing Modus^TM MPD services for two zones in North and South Sumatra, and awarded a five-year contract to provide openhole and cased-hole Wireline in onshore Indonesia.
Khalda awarded Weatherford a three-year contract to deploy up to 300 wells in Egypt using CygNet^® SCADA and ForeSite^® platform.
Azule Energy awarded Weatherford a three-year contract to provide TRS for the NGC Project in offshore Angola. This is in addition to the recently awarded TRS contract in block 15/06 in the deepwater block.
PTTEP awarded Weatherford a 24-month contract to provide openhole Wireline Services in onshore Thailand.
A major operator in Asia awarded Weatherford with a four-year contract to provide Rotating Control Devices to enable MPD in offshore Indonesia.
Shell Petroleum Development Company awarded Weatherford a three-year contract to provide Well Completions and other related specialized services in onshore Nigeria.

Technology Highlights
On January 14, 2025, at the annual IKTVA forum held at Dahan Dharan Expo, Weatherford signed an agreement with SPARK, a fully integrated industrial ecosystem aimed at making Saudi Arabia a global energy hub. This strategic partnership, aligned with Saudi Arabia’s Vision 2030, enhances Weatherford’s local presence, boosts production capabilities, and supports the region’s energy goals. By advancing local content, fostering talent, and driving innovation, Weatherford demonstrates its commitment to economic growth and to supporting Saudi Arabia’s leadership in energy innovation.

Drilling & Evaluation (“DRE”)
- In the North Sea, Weatherford successfully deployed the world’s first Dual Advanced Kickover Tool for Equinor. The unique solution enables gas lift valve replacements in just a single run, which significantly increases efficiency and reduces cost of conventional systems.
- In Saudi Arabia, Weatherford deployed its compact wireline logging tools with shuttle technology to achieve a record total depth for Aramco. This extended reach well features the longest horizontal section, measuring 23,000 feet.
Well Construction and Completions (“WCC”)
- In deepwater Brazil, Weatherford successfully installed the first OptiRoss^® RFID Multi-Cycle Sliding Sleeve Valve for a major operator. The system enhances acid stimulation efficiency, improving production and boosting the reservoir’s oil recovery factor.
- In the Middle East, Weatherford successfully deployed its market-leading Optimax Tubing Retrievable Safety Valve for an NOC. This deployment enabled gas lift valve replacements in a single run, significantly increasing efficiency and reducing costs compared to conventional systems.
Production and Intervention (“PRI”)
- In the Middle East, Weatherford’s Alpha1Go remote re-entry system was deployed for an NOC, optimizing rig site operations by significantly reducing whipstock preparation time and minimizing red-zone exposure. This deployment improved both efficiency and safety, demonstrating the system’s effectiveness in facilitating well re-entry operations and real-time team collaboration in various rig environments.
- In US land operations, Weatherford successfully deployed its first Reclaim Dual Barrier Plug and Abandon (P&A) system for a major operator. This innovative dual barrier P&A system safely and reliably abandons wells without the need to pull tubing. By eliminating the requirement for conventional drilling rigs, it significantly reduces costs and minimizes the carbon footprint.

Shareholder Return

During the fourth quarter of 2024, Weatherford repurchased shares for approximately $49 million and paid dividends of $18 million, resulting in total shareholder return of $67 million. Since the inception of the shareholder return program introduced earlier in 2024, the Company repurchased shares for approximately $99 million and paid dividends of $36 million, resulting in total shareholder return of $135 million.

On January 29, 2025, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on March 19, 2025, to shareholders of record as of February 21, 2025.

Results by Reportable Segment

Drilling and Evaluation (“DRE”)

	Three Months Ended									Variance				Twelve Months Ended						Variance
($ in Millions)	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Seq.		YoY		Dec 31, 2024			Dec 31, 2023			YoY
Revenue	$	398		$	435		$	382		(9	)%	4	%	$	1,682		$	1,536		10	%
Segment Adjusted EBITDA	$	96		$	111		$	97		(14	)%	(1	)%	$	467		$	422		11	%
Segment Adj EBITDA Margin		24.1	%		25.5	%		25.4	%	(140)	bps	(127)	bps		27.8	%		27.5	%	29	bps

Fourth quarter 2024 DRE revenue of $398 million decreased by $37 million, or 9% sequentially, primarily from lower activity in Latin America, partly offset by higher international Wireline activity. Year-over-year DRE revenues increased by $16 million, or 4%, primarily from higher activity in North America and higher international Wireline activity, partly offset by lower activity in Latin America.

Fourth quarter 2024 DRE segment adjusted EBITDA of $96 million decreased by $15 million, or 14% sequentially, primarily driven by lower activity in Latin America, partly offset by higher international Wireline activity. Year-over-year DRE segment adjusted EBITDA decreased by $1 million, or 1%, primarily due to lower activity in Latin America, partly offset by improved performance in Middle East/North Africa/Asia.

Full year 2024 DRE revenues of $1,682 million increased by $146 million, or 10% compared to 2023, as higher Wireline and Drilling-related services activity were partly offset by lower Drilling Services in Latin America.

Full year 2024 DRE segment adjusted EBITDA of $467 million increased by $45 million, or 11% compared to 2023, as higher MPD and Wireline activity were partly offset by lower activity in Latin America.

Well Construction and Completions (“WCC”)

	Three Months Ended									Variance				Twelve Months Ended						Variance
($ in Millions)	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Seq.		YoY		Dec 31, 2024			Dec 31, 2023			YoY
Revenue	$	505		$	509		$	480		(1	)%	5	%	$	1,976		$	1,800		10	%
Segment Adjusted EBITDA	$	148		$	151		$	131		(2	)%	13	%	$	564		$	455		24	%
Segment Adj EBITDA Margin		29.3	%		29.7	%		27.3	%	(36)	bps	202	bps		28.5	%		25.3	%	326	bps

Fourth quarter 2024 WCC revenue of $505 million decreased by $4 million, or 1% sequentially, primarily due to lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher Completions and TRS activity in Middle East/North Africa/Asia. Year-over-year WCC revenues increased by $25 million, or 5%, primarily due to higher activity in Middle East/North Africa/Asia and higher Liner Hangers and Well Services activity in Latin America, partly offset by lower activity in North America.

Fourth quarter 2024 WCC segment adjusted EBITDA of $148 million decreased by $3 million, or 2% sequentially, primarily due to lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher Completions and TRS activity in Middle East/North Africa/Asia. Year-over-year WCC segment adjusted EBITDA increased by $17 million, or 13%, primarily due to higher activity in Middle East/North Africa/Asia, partly offset by lower activity in Europe/Sub-Sahara Africa/Russia.

Full year 2024 WCC revenues of $1,976 million increased by $176 million, or 10% compared to 2023, primarily from higher activity in Middle East/North Africa/Asia and Latin America, partly offset by lower activity in North America.

Full year 2024 WCC segment adjusted EBITDA of $564 million increased by $109 million, or 24% compared to 2023, primarily due to improved fall through in major product lines across all geographies.

Production and Intervention (“PRI”)

	Three Months Ended									Variance				Twelve Months Ended						Variance
($ in Millions)	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Seq.		YoY		Dec 31, 2024			Dec 31, 2023			YoY
Revenue	$	364		$	371		$	386		(2	)%	(6	)%	$	1,452		$	1,472		(1	)%
Segment Adjusted EBITDA	$	78		$	83		$	88		(6	)%	(11	)%	$	319		$	323		(1	)%
Segment Adj EBITDA Margin		21.4	%		22.4	%		22.8	%	(94)	bps	(137)	bps		22.0	%		21.9	%	3	bps

Fourth quarter 2024 PRI revenue of $364 million decreased by $7 million, or 2% sequentially, primarily due to lower activity in Latin America and lower Intervention Services and Drilling Tools (ISDT) activity in Europe/Sub-Sahara Africa/Russia and North America. Year-over-year PRI revenue decreased by $22 million, or 6%, as lower activity in Middle East/North Africa/Asia and Latin America was partly offset by higher Artificial Lift activity in North America.

Fourth quarter 2024 PRI segment adjusted EBITDA of $78 million, decreased by $5 million, or 6% sequentially, primarily from lower activity in Latin America and lower ISDT activity in Europe/Sub-Sahara Africa/Russia and North America, partly offset by higher Artificial Lift activity in Middle East/North Africa/Asia. Year-over-year PRI segment adjusted EBITDA decreased by $10 million, or 11% year-over-year, primarily due to lower activity in Latin America and Europe/Sub-Sahara Africa/Russia, partly offset by better ISDT and Artificial Lift fall through in North America.

Full year 2024 PRI revenues of $1,452 million decreased by $20 million, or 1% compared to 2023, primarily due to lower international Pressure Pumping and Digital Solutions activity, partly offset by higher ISDT activity in Europe/Sub-Sahara Africa/Russia and Middle East/North Africa/Asia.

Full year 2024 PRI segment adjusted EBITDA of $319 million decreased by $4 million, or 1% compared to 2023, as lower activity in international Pressure Pumping and Digital Solutions was partly offset by improved performance in Artificial Lift.

Revenue by Geography

	Three Months Ended								Variance		Twelve Months Ended				Variance
*($ in Millions)*	Dec 31, 2024		Sep 30, 2024		Dec 31, 2023		Seq.		YoY		Dec 31, 2024		Dec 31, 2023		YoY
North America	$	261	$	266	$	248	(2	)%	5	%	$	1,046	$	1,068	(2	)%

International	$	1,080	$	1,143	$	1,114	(6	)%	(3	)%	$	4,467	$	4,067	10	%
Latin America		312		358		342	(13	)%	(9	)%		1,393		1,387	—	%
Middle East/North Africa/Asia		542		542		547	—	%	(1	)%		2,123		1,815	17	%
Europe/Sub-Sahara Africa/Russia		226		243		225	(7	)%	—	%		951		865	10	%
Total Revenue	$	1,341	$	1,409	$	1,362	(5	)%	(2	)%	$	5,513	$	5,135	7	%

North America

Fourth quarter 2024 North America revenue of $261 million decreased by $5 million, or 2% sequentially, primarily due to activity decreases in the North and South regions, partly offset by activity increase offshore in the Gulf of Mexico. Year-over-year, North America increased by $13 million, or 5%, primarily from higher Artificial Lift and Wireline activity, partly offset by a decrease in activity across the WCC segment.

Full year 2024 North America revenue of $1,046 million decreased by $22 million, or 2%, compared to 2023, primarily due to lower activity in the WCC and PRI segments, partly offset by higher Wireline activity.

International

Fourth quarter 2024 international revenue of $1,080 million decreased 6% sequentially and decreased 3% year-over-year, and full year 2024 international revenue of $4,467 million increased 10%, compared to 2023.

Fourth quarter 2024 Latin America revenue of $312 million decreased by $46 million, or 13% sequentially, primarily due to lower Drilling-related Services, partly offset by higher Liner Hangers activity. Year-over-year, Latin America revenue decreased by $30 million, primarily due to lower activity in the DRE and PRI segments, partly offset by higher activity in Liner Hangers and Well Services.

Full year 2024 Latin America revenue of $1,393 million was largely flat, compared to 2023.

Fourth quarter 2024 revenue of $542 million in Middle East/North Africa/Asia was flat sequentially, as higher activity from Completions and Artificial Lift were largely offset by lower MPD and Integrated Services & Projects. Year-over-year, the Middle East/North Africa/Asia revenue decreased by $5 million, or 1%, primarily due to lower activity in the PRI segment, partly offset by higher Drilling-related services and Completions activity.

Full year 2024 revenue of $2,123 million in Middle East/North Africa/Asia increased by $308 million, or 17%, compared to 2023, mainly due to increased activity in the DRE and WCC segments, partly offset by lower activity in Digital Solutions, Artificial Lift and Pressure Pumping.

Fourth quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of $226 million decreased by $17 million, or 7%, sequentially, mainly driven by lower Completions and ISDT activity, partly offset by higher Wireline activity. Year-over-year Europe/Sub-Sahara Africa/Russia revenue was largely flat due to increased activity in the DRE segment, largely offset by lower activity in the WCC and PRI segments.

Full year 2024 Europe/Sub-Sahara Africa/Russia revenue of $951 million increased by $86 million, or 10% compared to 2023, due to increased activity in the DRE and WCC segments, partly offset by lower Pressure Pumping and Artificial Lift activity.

About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.

Conference Call Details

Weatherford will host a conference call on Thursday, February 6, 2025, to discuss the Company’s results for the fourth quarter ended December 31, 2024. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).

Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.

Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.

A telephonic replay of the conference call will be available until February 20, 2025, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 9530137. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.

Contacts
For Investors:
Luke Lemoine
Senior Vice President, Corporate Development & Investor Relations
+1 713-836-7777
investor.relations@weatherford.com

For Media:
Kelley Hughes
Senior Director, Communications & Employee Engagement
media@weatherford.com

Forward-Looking Statements

This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies and tariffs, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflict, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.

These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

Weatherford International plc
Selected Statements of Operations (Unaudited)

	Three Months Ended									Year Ended
*($ in Millions, Except Per Share Amounts)*	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024				December 31, 2023
Revenues:
DRE Revenues	$	398		$	435		$	382		$	1,682			$	1,536
WCC Revenues		505			509			480			1,976				1,800
PRI Revenues		364			371			386			1,452				1,472
All Other		74			94			114			403				327
Total Revenues		1,341			1,409			1,362			5,513				5,135

Operating Income:
DRE Segment Adjusted EBITDA^[1]	$	96		$	111		$	97		$	467			$	422
WCC Segment Adjusted EBITDA^[1]		148			151			131			564				455
PRI Segment Adjusted EBITDA^[1]		78			83			88			319				323
All Other^[2]		11			23			13			84				38
Corporate^[2]		(7	)		(13	)		(8	)		(52	)			(52	)
Depreciation and Amortization		(83	)		(89	)		(83	)		(343	)			(327	)
Share-based Compensation		(10	)		(10	)		(9	)		(45	)			(35	)
Other Charges		(35	)		(13	)		(13	)		(56	)			(4	)
Operating Income		198			243			216			938				820

Other Expense:
Interest Expense, Net of Interest Income of $12, $13, $12, $56 and $59		(25	)		(24	)		(31	)		(102	)			(123	)
Loss on Blue Chip Swap Securities		—			—			—			(10	)			(57	)
Other Expense, Net		(4	)		(41	)		(36	)		(87	)	—		(134	)
Income Before Income Taxes		169			178			149			739				506
Income Tax Provision		(45	)		(12	)		(2	)		(189	)			(57	)
Net Income		124			166			147			550				449
Net Income Attributable to Noncontrolling Interests		12			9			7			44				32
Net Income Attributable to Weatherford	$	112		$	157		$	140		$	506			$	417

Basic Income Per Share	$	1.54		$	2.14		$	1.94		$	6.93			$	5.79
Basic Weighted Average Shares Outstanding		72.6			73.2			72.1			73.0				71.9

Diluted Income Per Share^[3]	$	1.50		$	2.06		$	1.90		$	6.75			$	5.66
Diluted Weighted Average Shares Outstanding		74.5			75.2			73.9			74.9				73.7

^[1]		^{Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation and other adjustments. Research and development expenses are included in segment adjusted EBITDA.}
^[2]		^{All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting.}
^[3]		^{Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to Weatherford in calculating diluted income per share.}

Weatherford International plc
Selected Balance Sheet Data (Unaudited)

*($ in Millions)*	December 31, 2024		December 31, 2023
Assets:
Cash and Cash Equivalents	$	916	$	958
Restricted Cash		59		105
Accounts Receivable, Net		1,261		1,216
Inventories, Net		880		788
Property, Plant and Equipment, Net		1,061		957
Intangibles, Net		325		370

Liabilities:
Accounts Payable		792		679
Accrued Salaries and Benefits		302		387
Current Portion of Long-term Debt		17		168
Long-term Debt		1,617		1,715

Shareholders’ Equity:
Total Shareholders’ Equity		1,283		922

Weatherford International plc
Selected Cash Flows Information (Unaudited)

	Three Months Ended									Year Ended
*($ in Millions)*	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Cash Flows From Operating Activities:
Net Income	$	124		$	166		$	147		$	550		$	449
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation and Amortization		83			89			83			343			327
Foreign Exchange Losses (Gain)		(2	)		35			43			56			116
Loss on Blue Chip Swap Securities		—			—			—			10			57
Gain on Disposition of Assets		(2	)		(1	)		—			(35	)		(11	)
Deferred Income Tax Provision (Benefit)		—			(19	)		(19	)		8			(86	)
Share-Based Compensation		10			10			9			45			35
Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits		24			30			151			(120	)		(84	)
Other Changes, Net		12			(48	)		(39	)		(65	)		29
Net Cash Provided By Operating Activities		249			262			375			792			832

Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment		(100	)		(78	)		(67	)		(299	)		(209	)
Proceeds from Disposition of Assets		13			—			7			31			28
Purchases of Blue Chip Swap Securities		—			—			—			(50	)		(110	)
Proceeds from Sales of Blue Chip Swap Securities		—			—			—			40			53
Business Acquisitions, Net of Cash Acquired		—			(15	)		—			(51	)		(4	)
Other Investing Activities		1			1			(71	)		36			(47	)
Net Cash Used In Investing Activities		(86	)		(92	)		(131	)		(293	)		(289	)

Cash Flows From Financing Activities:
Repayments of Long-term Debt		(23	)		(5	)		(80	)		(287	)		(386	)
Distributions to Noncontrolling Interests		(20	)		(10	)		(31	)		(39	)		(52	)
Tax Remittance on Equity Awards		(22	)		—			(2	)		(31	)		(56	)
Share Repurchases		(49	)		(50	)		—			(99	)		—
Dividends Paid		(18	)		(18	)		—			(36	)		—
Other Financing Activities		(1	)		(6	)		(13	)		(19	)		(20	)
Net Cash Used In Financing Activities	$	(133	)	$	(89	)	$	(126	)	$	(511	)	$	(514	)

Weatherford International plc

Non-GAAP Financial Measures Defined (Unaudited)

We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted EBITDA Margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.

Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

*Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled

Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)


	Three Months Ended									Year Ended
*($ in Millions, Except Margin in Percentages)*	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenues	$	1,341		$	1,409		$	1,362		$	5,513		$	5,135
Net Income Attributable to Weatherford	$	112		$	157		$	140		$	506		$	417
Net Income Margin		8.4	%		11.1	%		10.3	%		9.2	%		8.1	%
Adjusted EBITDA*	$	326		$	355		$	321		$	1,382		$	1,186
Adjusted EBITDA Margin*		24.3	%		25.2	%		23.6	%		25.1	%		23.1	%

Net Income Attributable to Weatherford	$	112		$	157		$	140		$	506		$	417
Net Income Attributable to Noncontrolling Interests		12			9			7			44			32
Income Tax Provision		45			12			2			189			57
Interest Expense, Net of Interest Income of $12, $13, $12, $56 and $59		25			24			31			102			123
Loss on Blue Chip Swap Securities		—			—			—			10			57
Other Expense, Net		4			41			36			87			134
Operating Income		198			243			216			938			820
Depreciation and Amortization		83			89			83			343			327
Other Charges^[1]		35			13			13			56			4
Share-Based Compensation		10			10			9			45			35
Adjusted EBITDA*	$	326		$	355		$	321		$	1,382		$	1,186

Net Cash Provided By Operating Activities	$	249		$	262		$	375		$	792		$	832
Capital Expenditures for Property, Plant and Equipment		(100	)		(78	)		(67	)		(299	)		(209	)
Proceeds from Disposition of Assets		13			—			7			31			28
Adjusted Free Cash Flow*	$	162		$	184		$	315		$	524		$	651

^[1]		^{Other charges in the three and twelve months ended December 31, 2024, primarily included severance and restructuring costs and fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico.}

^{*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined}

Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)



*($ in Millions)*	December 31, 2024			September 30, 2024			December 31, 2023
Current Portion of Long-term Debt	$	17		$	21		$	168
Long-term Debt		1,617			1,627			1,715
Total Debt	$	1,634		$	1,648		$	1,883

Cash and Cash Equivalents	$	916		$	920		$	958
Restricted Cash		59			58			105
Total Cash	$	975		$	978		$	1,063

Components of Net Debt
Current Portion of Long-term Debt	$	17		$	21		$	168
Long-term Debt		1,617			1,627			1,715
Less: Cash and Cash Equivalents		916			920			958
Less: Restricted Cash		59			58			105
Net Debt*	$	659		$	670		$	820

Net Income for trailing 12 months	$	506		$	534		$	417
*Adjusted EBITDA for trailing 12 months**	$	1,382		$	1,377		$	1,186

*Net Leverage (Net Debt/Adjusted EBITDA)**		0.48	x		0.49	x		0.69	x

^{*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined}

The MIL Network –

February 6, 2025

Category: Commerce

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