Category: Economy

MIL-OSI USA: Booker Announces $406 Million in Federal Grants for New Jersey Projects

US Senate News:

Source: United States Senator for New Jersey Cory Booker

NEWARK N.J. – Today, U.S. Senator Cory Booker (D-NJ) announced a total of $406 million in federal grants being awarded to New Jersey by the Environmental Protection Agency (EPA) and the Federal Railroad Administration (FRA). EPA’s 2024 Clean Ports Program (CPP) is awarding the Port Authority of New York and New Jersey (Port Authority) $347 million total to execute their plan to implement alternative freight movement and zero-emissions options across the marine terminals operated by the Port Authority and its private sector partners in New York and New Jersey. The program will also award $55 million to the SeaStreak LLC to deploy high-speed zero-emission ferries for service between northern New Jersey and New York City, as well as for accompanying charging infrastructure and for training and workforce development. Additionally, the FRA is awarding $4 million to the Morristown & Erie Railway (ME) to provide more efficient and reliable freight rail operations along a nine-mile railway that runs from Morristown, New Jersey to Roseland, New Jersey.

Senator Booker wrote in support of the Port Authority’s and the Morristown & Erie Railway’s applications for these projects in May and July of this year, respectively.

The Port Authority’s “Catalyzing Change: Zero Emissions NY-NJ Port Projects for a Greener Future” plan is receiving $344 million to establish a sustainable zero emissions operation at the Port of New York and New Jersey, the largest container port on the East Coast and third largest in the country. The Port Authority’s Port Master Plan 2050 would commit to achieving net zero carbon emissions by 2050. The second grant of $3 million would fund a drayage truck movement study, increased community air monitoring, and the establishment of a Ports Community Advisory Council.

“EPA’s $347 million award to the Port Authority of New York and New Jersey to execute their ‘Catalyzing Change’ plan is a huge win for New Jersey, and a bold step toward a cleaner, more sustainable future,” said Senator Booker. “Investing in zero-emissions technologies and enhancing our freight operations will help us protect our environment and boost our regional economy. I am proud to have supported this award that will create jobs, improve air quality, protect our planet, and ensure that our supply chain remains efficient and resilient.”

“We appreciate the recognition and support from our government and community partners to ensure the critical work at the Port of New York and New Jersey is accomplished with an eye toward the future,” said Port Authority Chairman Kevin O’Toole. “This funding will reverberate well beyond the docks, allowing us to work together with nearby communities to ensure that the busiest port on the East Coast sets a new standard for collaboration, innovation, and sustainability.”

“We’re immensely grateful and thrilled to receive this significant funding from the EPA, allowing us to accelerate the deployment of zero-emission equipment across our port facilities,” said Port Authority Executive Director Rick Cotton. “This award is a crucial step forward in our commitment to sustainability and will help us meet the Agency’s net-zero emissions goal by 2050. We are grateful for the EPA’s partnership as the Port Authority continues our aggressive pursuit of our climate agenda.”

“These extraordinary awards represent a significant step toward our community engagement and sustainability efforts, and we extend our sincere appreciation to all of the port partners who made it happen,” said Bethann Rooney, port director at the Port Authority of New York and New Jersey. “The cargo moved through the Port radiates out across the country, but it would not be possible without the collaboration of the port community. Our goal is to ensure that all stakeholders have a voice as we look to maximize the impact of every dollar to deliver cleaner air, new equipment, and a port that leads the way on sustainability and community engagement.”

“Ports are essential to moving and bringing us goods that we depend on, but they are also sources of air and climate pollution impacting the surrounding communities,” said EPA Regional Administrator Lisa F. Garcia. “By advancing zero-emission technologies, we are tackling air pollution head-on while creating good-paying jobs that support local economies and families. This tremendous investment demonstrates EPA’s commitment to environmental and climate justice, and economic opportunity while also ensuring that our port communities can breathe cleaner air.”

The grant money for the Morristown-Erie Railway will be awarded through the FRA’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) program. The project will replace five-track miles of 75-year-old lite-weight jointed rail and eight switches with 115-pound or larger rail in addition to other updates. These improvements will minimize derailments and reduce noise levels, and help the railway expand its operations to manage the increase of freight coming in from the Port of New York and New Jersey.

“This $4 million grant from the FRA’s CRISI program is a crucial investment in the Morristown & Erie Railway that will enhance the safety and efficiency of our freight operations,” said Senator Booker. “Upgrading our aging infrastructure will benefit freight rail workers and consumers from Morristown to Roseland who rely on these tracks. This project will create jobs, support the local economy, and ensure this railway remains safe and efficient for years to come.”

“We are pleased to have received Senator Booker’s support in receiving this $4MM CRISI grant toward a total $6MM project to replace rail switches and extend track on our rail line. It will enable us to continue providing environmentally superior rail freight service to our customers, facilitate customer growth and additional employment in our Morris and Essex County service territory,” said Morristown & Erie President Charles Jensen.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Team Maryland Joins President Biden to Celebrate $147 Million Investment to Create Clean Jobs and Support the Port of Baltimore’s Zero-Emission Goals

US Senate News:

Source: United States Senator for Maryland Ben Cardin
ANNAPOLIS, Md. — U.S. Senators Ben Cardin and Chris Van Hollen joined Governor Wes Moore today joined President Joseph R. Biden at the Port of Baltimore to celebrate more than $147 million in federal funding to create good-paying, clean jobs and to expedite decarbonization and electrification efforts at the Port. The U.S. Environmental Protection Agency awarded the funding to the Port of Baltimore through its Clean Ports Program, created under President Biden’s Inflation Reduction Act.
“The Port of Baltimore is a vital economic engine for the state and a leader among the nation’s ports. As we work to improve the port, it is essential that we build for the future. The projects supported by the Clean Ports Program will help reduce emissions, improve air quality in the Baltimore region and create more clean energy jobs,” said U.S. Senator Ben Cardin. “The Biden-Harris Administration’s bold investments in modernizing our infrastructure are driving our economy forward while enabling us to take on climate change in a meaningful way.”
“In Maryland, we aren’t going to choose between building a competitive state and a sustainable one -— we will do both at the same time,” said Gov. Moore. “In partnership with the Biden-Harris Administration, we are investing in the Port of Baltimore and electrifying the way to a greener, cleaner, and healthier future with a strong economy and good-paying jobs.”
The Port of Baltimore generates about 20,300 direct jobs, with more than 273,000 jobs overall linked to port activities. The funding will enable the Maryland Port Administration and its private partners to purchase 213 pieces of new zero-emission vehicles, equipment, and charging infrastructure that will replace old, inefficient, and polluting diesel combustion engines. The funding will also pay for capacity upgrades to the port’s electrical grid, which will help significantly reduce greenhouse gas emissions with an estimated 35% decrease in carbon dioxide equivalency compared to 2020 levels.
“We fought to pass the Inflation Reduction Act to create good-paying jobs in our communities while tackling the climate crisis head-on, and today’s announcement shows these investments are being put to work,” said U.S. Senator Chris Van Hollen. “This new federal funding will support the Port of Baltimore’s transition to electric infrastructure as part of its plans to reduce emissions – both bolstering the port’s growth and improving air quality for nearby communities. These efforts will help strengthen Baltimore’s economy and create more local jobs for Marylanders.”
“The tremendous projects selected for these federal funding awards will improve air quality and combat climate change by dramatically diminishing the Port of Baltimore’s greenhouse gas and toxic pollutant emissions via installation of zero-emission cargo handling equipment and trucks, while also bolstering the Maryland Port Administration’s overall emissions reduction strategy. These extraordinary federal investments into our port are consistent with our collective duty to preserve the planet – while also continuing to uplift the Port of Baltimore’s workforce and surrounding communities in the transition to a zero-emissions facility,” said Congressman Kweisi Mfume. “As exemplified by this compelling announcement, the historic Inflation Reduction Act continues to tackle the climate crisis with fierce urgency right here in Baltimore.”
“The Biden-Harris Administration’s Investing in America agenda continues to leave no community behind and promote clean air and water in communities that have long borne the brunt of pollution,” said Congressman Steny Hoyer. “Thanks to the Inflation Reduction Act that I brought to the House Floor as Majority Leader last Congress, the Port of Baltimore is getting the tools it needs to upgrade its equipment, improve electric charging infrastructure, and fight the climate crisis in a way that benefits Marylanders across the state. As Chair of the Regional Leadership Council, I appreciate Administrator Regan and the Biden-Harris Administration’s partnership as we continue to ensure the historic investments Democrats passed last Congress reach every community in America. We must continue to work together to strengthen the Port of Baltimore and ensure environmental justice for all Marylanders.”
“The Port of Baltimore is a critical hub for Maryland and our nation as a whole, supporting good-paying jobs, driving economic growth and keeping goods and resources moving. This investment will improve the health of our region’s environment and provide cleaner air for port workers and nearby communities – all while ensuring that the Port remains a thriving center of commerce for generations to come,” said Congressman John Sarbanes. “I appreciate the Biden-Harris Administration for its continued partnership to enhance clean energy and improve infrastructure in Maryland, and for its tireless efforts to advance environmental justice and create a greener, more sustainable future across the country.”
“This critical investment into the Port of Baltimore will not only keep us globally competitive, but will help mitigate pollution driving climate change,” said Congressman Dutch Ruppersberger. “The Port of Baltimore has always been at the forefront of efficiency and productivity and now we are leading the nation environmentally. I am proud to have supported this funding request and thank the Biden Administration for this strategic and responsible use of tax dollars.”
Federal grant funding will also support community engagement with neighborhoods such as Turner Station, Brooklyn, and Curtis Bay.
“These improvements will provide an immediate impact to the people who live and work around the Port of Baltimore and who have borne the brunt of transportation-related health impacts,” said Maryland Department of Transportation Secretary Paul Wiedefeld. “Thanks to the EPA’s grants, the Port of Baltimore and its partners are accelerating their collective efforts to support Maryland’s climate goals of reaching net zero by 2045.”
Today’s announcement builds on the Biden Administration’s championship of the Port of Baltimore and the State of Maryland’s infrastructure needs, which includes the recent $30.9 million Infrastructure for Rebuilding America award for Dundalk Marine Terminal Reconstruction of Berth 11 and the $7.5 million award for Curtis Creek Drawbridge Rehabilitation and Resiliency projects. The projects directly advance the federal government and State of Maryland’s partnership to recover and rebuild after the DALI struck the Francis Scott Key Bridge.
“The Maryland Port Administration is committed to integrating our overall mission of increasing cargo and generating jobs through the Port of Baltimore with forward-looking environmental and sustainability solutions,” said Maryland Port Administration Executive Director Jonathan Daniels. “Our customers and port partners are driven to change the way they do business to reduce greenhouse gas emissions, decarbonize, increase electrification throughout our marine terminals, and, most importantly, positively impact our near-port environmental justice communities.”
To learn more about the clean port project and its benefits, read the Port of Baltimore’s grant proposal.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Cardin, Van Hollen, Hoyer, Ruppersberger Announce Over $7.5 Million for Carroll County Regional, Tipton, and Martin State Airports
US Senate News:
Source: United States Senator for Maryland Ben Cardin

WASHINGTON – U.S. Senators Ben Cardin and Chris Van Hollen, Congressmen Steny Hoyer and Dutch Ruppersberger (all D-Md.), today announced $7,556,842 in U.S. Department of Transportation awards to Carroll County Regional, Tipton and Martin State Airports for necessary upgrades to modernize their facilities and improve passenger comfort.

“The landmark infrastructure law enacted by President Biden in 2021 continues to invest in Maryland,” said Senator Cardin. “It recognized that our airports, both large and small, have aging and outdated facilities that require upgrades to meet the changing demands on our aviation system and keep it safe and competitive.”

“Our local airports are important transportation hubs that support our state’s economy, ensuring that travelers and goods get where they need to go. We fought for these investments to support the Carroll County Regional, Tipton, and Martin State airports in serving the growing needs of Maryland’s businesses, residents, and visitors,” said Senator Van Hollen.

“President Biden and Vice President Harris’ Investing in America agenda continues to deliver for Maryland’s airports and boost our economic competitiveness,” said Congressman Hoyer. “As Chair of the Regional Leadership Council, I have worked with House Democrats and top officials in the Biden-Harris Administration to ensure that every community in America can see and feel the impact of the historic laws that Democrats passed in the 117th Congress. I was pleased to work with Team Maryland to secure these Bipartisan Infrastructure Law funds for Carroll County Regional Airport, Martin State Airport, and Tipton Airport, which will create good jobs and provide a more reliable air travel experience. Together, we will continue to lower costs, create jobs, and ensure our state’s economy works for all Marylanders.”

“The bipartisan infrastructure law continues to reap rewards for Maryland and Marylanders including this funding for local airports, which provide a critical connection to communities and economies throughout the region,” said Congressman Ruppersberger. “This is a strategic investment that will make our airports safer, more comfortable and convenient. I look forward to even more upgrades to our nation’s aging transportation infrastructure to come.”

The funding was awarded by the U.S. Department of Transportation’s Airport Improvement Program and Airport Terminal Program.

The federal grants have been awarded as follows:
1. $3,612,000. Carroll County Regional Airport: To remove a building and relocate fencing identified as obstructions by the FAA.
2. $2,944,842, Tipton Airport: To construct a 6,000 square-foot terminal to accommodate the movement of passengers and baggage.
3. $1,000,000, Martin State Airport: To fund the funds the construction of a new Airport Traffic Control Tower, replacing the 82-year-old sponsor-owned tower that has reached the end of its useful life.
The Airport Improvement Program funds various types of airport infrastructure projects across the country, including repairs and upgrades to runways, taxiways, airport signage, lighting and markings – all while creating thousands of good-paying, local jobs. The members have consistently fought to provide funds for airports and terminal operators, including through the fiscal year 2024 appropriations process, which makes $3.35 billion available from the Airport and Airway Trust Fund and an additional $532 million from the general fund for AIP projects.

The Airport Terminal Program was created in 2021 through the lawmakers’ efforts to pass the Infrastructure Investment and Jobs Act. Funded at $1 billion in fiscal year 2024, the Airport Terminal Program supports safe, sustainable, and accessible airport terminals, on-airport rail access projects, and airport-owned airport traffic control towers.
MIL OSI USA News –
January 25, 2025
MIL-OSI United Kingdom: E3 foreign ministries call for the urgent renewal of Israeli-Palestinian correspondent banking services
Source: United Kingdom – Executive Government & Departments 3

Statement calling on Israel to urgently renew reciprocal banking arrangements to prevent economic collapse in the Occupied Palestinian Territories.
The foreign ministries of France, Germany and the United Kingdom call for the urgent renewal of Israeli-Palestinian correspondent banking services for a period of at least one year. Failure to renew would completely suspend cross-border trade, which would be catastrophic for the Palestinian economy. This will endanger regional security and harm Palestinian and Israeli businesses alike.

We note the significant steps completed in recent months to mitigate risks related to illicit financing, including the completion of a National Risk Assessment by the Palestinian Monetary Authority and agreement for a MENAFATF on-site evaluation to take place next year.

We urge the Government of Israel to renew the indemnifications without delay for a period of least one year, in line with their obligations under the Paris Protocol. We are committed to working with Israel and the Palestinian Authorities to continue countering the financing of terrorism while reiterating that a failure to renew indemnifications, or another temporary renewal, would be unacceptable and cause serious economic damage to both Israel and the West Bank.

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Published 30 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI USA: Congressman Biggs Introduces Legislation to Free Companies From the Chokehold of the Harris-Biden Regime’s Woke Social Priorities
Source: United States House of Representatives – Congressman Andy Biggs (AZ-05)

Congressman Andy Biggs (R-AZ) introduced the Stop Woke Investing Act, legislation promoting corporate America’s return to the free exchange of ideas. The Securities and Exchange Commission (SEC) has broad power to dictate what shareholder proposals a public company must consider. Under the Harris-Biden regime, the SEC has severely limited the ability of companies to exclude radical ESG proposals, like requiring companies to conduct “racial equity audits” or to set mandates to reduce greenhouse gas emissions, that are detrimental to a company’s financial responsibilities to their shareholders.

Actions from this Administration have forced companies to include controversial policies that are of little to no value to their business operations and accomplish nothing other than serving a woke social agenda. Kamala Harris and Joe Biden have weaponized every aspect of the federal government to punish those who refuse to cower in the face of their radical priorities.

The legislation would:
- Allow businesses to reject frivolous shareholder proposals unrelated to the financial success of the company.
- Limit the amount of proposals on which a company is permitted to vote, encouraging the prioritization of proposals that advance shareholder interests.
“Woke activism shouldn’t be placed ahead of the profitability of a public company,” said Congressman Biggs.

“Businesses should not be enslaved to radical ESG priorities that pull attention away from their fiduciary responsibilities. Focusing on woke policies only serves to harm businesses, investors, and the American economy. Congress must continue fighting the weaponization of the Harris-Biden regime and its push to radicalize Americans’ day-to-day lives.

“I’m thankful for the support of my colleagues and for Senator Eric Schmitt’s (R-MO) leadership on this issue in the Senate.”

“Over the years activist investors have increasingly proposed shareholder resolutions to compel American companies to consider ESG-related priorities that have nothing to do with financial performance. The focus on ancillary environmental and social factors is putting businesses’ management at odds with their fiduciary duty to maximize financial returns to shareholders,” said Grover Norquist, President of Americans for Tax Reform.

“That is why I am proud to support Rep. Biggs’s Stop Woke Investing Act, which would limit the amount of extraneous shareholder resolutions that can be included on a company’s proxy ballot. The shareholder resolutions submitted must also have a material effect on the financial performance of the company. This bill preserves the true meaning of fiduciary duty and ensures American companies can continue to focus on job creation, financial performance, and economic growth.”

Cosponsors of the Stop Woke Investing Act are: Rep. Andy Ogles (R-TN), Rep. Eli Crane (R-AZ), and Rep. Eric Burlison (R-MO).

The legislation may be read here.

Breitbart covered the legislation here.

MIL OSI USA News –
January 25, 2025
MIL-OSI USA: $16 Million in Federal Funding Fuels Tennessee’s Recovery a Month After Helene

Source: US Federal Emergency Management Agency

Headline: $16 Million in Federal Funding Fuels Tennessee’s Recovery a Month After Helene

$16 Million in Federal Funding Fuels Tennessee’s Recovery a Month After Helene

A month after the major presidential disaster declaration for the Sept. 26-30 flooding from Tropical Storm Helene, Tennessee families and communities are recovering with $16.4 million in funding from FEMA as well as support from the state, other federal agencies, and voluntary and community organizations.Helene’s rains devastated Eastern Tennessee, leaving mountains of debris strewn across a vast area, knocking out power and communications to thousands, and cutting off drinking water. Residents were left without cell coverage, internet connections and access to essential necessities. It may be years before these remote and rural communities resemble the charm they had before.The disaster declaration was approved on Oct. 2, authorizing funding from FEMA’s Individuals and Households Program to the counties most heavily impacted by the storms: Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi and Washington counties. Survivors have until Monday, Dec. 2, to apply for FEMA assistance.State, federal and voluntary organizations have collaborated to drive the recovery. As of Oct. 30, $16.4 million in FEMA funds has been approved for Tennessee’s homeowners, renters and businesses. And FEMA authorized a Direct Temporary Housing mission for survivors who had major or significant structural damage to their primary homes. The American Red Cross, Salvation Army and the Tennessee Department of Education have completed their mission after serving 140,903 meals to survivors.In the early days after the storms, with communications down across a swath of rural communities, FEMA brought in a mobile unit that continues to provide high-speed internet by connecting to satellites.Debris removal remains a major priority. The state and federal partners joined with local communities to clear more than 24,000 cubic yards of debris, a visible and vital step in recovery operations. Special attention is focused on Douglas Reservoir, located only a few miles from the Pigeon Forge-Gatlinburg area and the Great Smoky Mountains National Park. A mile-long curtain was installed to save the dam from damage by 1 million cubic yards of debris that rushed into the lake during the storms. Vegetation, construction and demolition equipment, and hazardous materials continue to line the shores even as the reservoir returns to pre-disaster water levels. Perhaps FEMA’s biggest challenge during the response operation has been the campaign to counter misinformation and harmful rhetoric about FEMA’s assistance programs, which was having a negative impact on Tennesseans desperately in need of help. The agency built a Helene Rumor Response webpage where survivors could find the facts themselves, and it continues to push messaging, in English and Spanish, about the many types of available assistance tailored to each survivor’s unique situation. FEMA accomplishes this by directing traffic to the state’s tn.gov/TEMA and fema.gov/Helene/Tennessee disaster pages as well as FEMA’s social media sites on Facebook, X, Instagram and YouTube.But the work of recovery has only just begun. Here are a few highlights:$16.4 million in funding from the Individuals and Households Program to provide financial help to those who are unable to meet their disaster-related needs through insurance or other means. As part of that total, more than $8 million represents Housing Assistance to help homeowners repair or replace residential property damage that is not covered by insurance.$8.3 million in Other Needs Assistance covers necessary disaster-related expenses such as medical bills; money to clean, repair or replace household items; to repair or replace vehicles damaged by the disaster and other non-housing needs.The Direct Temporary Housing Assistance program will help homeowners and renters whose homes were destroyed or heavily damaged.More than $1.07 million for 186 claims was paid to National Flood Insurance policyholders. The program also extended the grace period for paying policy premiums to Tuesday, Nov. 26.FEMA’s Disaster Survivor Assistance specialists visited 6,277 homes, 288 businesses and 237 community facilities. They also referred 1,140 survivors to community resources.More than $53,000 was paid in Disaster Unemployment Assistance to Tennesseans who have been unable to work because of the disaster. FEMA funds the unemployment program, which is managed by the state.Some 1,311 survivors have visited FEMA’s Disaster Recovery Centers to apply for federal assistance, to get help uploading documents to their account or get answers to questions including decisions about eligibility for FEMA assistance. A Mobile Disaster Recovery Center is scheduled to open Nov. 1 in Johnson County.Specialists at the state’s three Multi-Agency Resource Centers in Carter, Cocke and Washington counties also help survivors apply for FEMA assistance and connect them with additional local, state, federal and voluntary agency resources.Disaster assistance is also available to help communities respond to and recover from Helene’s deadly wrath. FEMA Public Assistance was approved for state and local governments and some private non-profits. These funds help communities cover the costs for debris removal, life-saving emergency protective measures and restoring public infrastructure.Public Assistance is a cost-sharing program and FEMA’s largest grant program. FEMA typically covers 75% of funding and the state covers 25%. For Helene damage in Tennessee, President Biden authorized 100% federal funding for emergency work generated by the disaster. This means FEMA will cover all eligible costs incurred during any 45-day period of the state’s choosing during the first 120 days from the start of the disaster, or Sept. 26. This allows communities to maximize cost savings by selecting the 45 days when the greatest costs occurred.Under Public Assistance, the federal share of funding is reimbursed through the Tennessee Emergency Management Agency to disburse to local agencies, local governments and certain private non-profits including houses of worship.
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Wed, 10/30/2024 – 20:38

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: Eleven Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking Offenses

Source: United States Attorneys General 4

A federal grand jury in Minneapolis returned an 18-count indictment yesterday against 11 alleged members of the Lows — a violent Minneapolis street gang — for crimes including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving murder, attempted murder, gun trafficking, and drug trafficking.

“According to the indictment, these defendants are leaders, organizers, and members of the Lows street gang, a violent gang that allegedly committed multiple murders and attempted murders and trafficked in guns and drugs, including fentanyl,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Violent gangs that engage in bloody street wars and peddle deadly drugs endanger our communities. The Criminal Division, along with our local, state, and federal partners, is committed to holding violent criminals accountable, including by bringing racketeering charges.”

“The Lows are an exceptionally violent criminal street gang that has terrorized north Minneapolis for nearly 20 years. Through threats and violence — shootings and murders — the Lows have long sought to establish dominion over large swaths of our city,” said U.S. Attorney Andrew Luger for the District of Minnesota. “My office will continue to respond to gang violence by treating it as the organized criminal activity it is. This indictment is an important step in dismantling a violent street gang that has devastated families and communities in north Minneapolis.”

“More than 100 people lose their lives to gun violence every day in the United States,” said Special Agent in Charge Travis Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division. “There will never be a time where this will be considered acceptable. Our ATF agents put forth solid investigative work in this case utilizing crime gun intelligence that without a doubt aided the case announced today. ATF is happy to work alongside each of our partners in this investigation, and we are grateful to the Criminal Division, U.S. Attorney Luger, and the entire team for taking up this challenging RICO case.”

“The charges in this indictment reflect our unwavering commitment to bringing violent criminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “For too long, the Lows have inflicted pain and spread fear in north Minneapolis. Together with our law enforcement partners, we are determined to remove this threat from our communities and help restore a sense of security to all who call this city home.”

“Today’s indictment provides a stark reminder that violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Steven T. Bell of the Drug Enforcement Administration (DEA) Omaha Division. “These were not victimless crimes. Communities were hurt. The DEA will continue its unwavering focus to remove threats of violence and hold accountable the individuals responsible for inflicting fear on the streets of Minneapolis.”

“The individuals named in this indictment allegedly engaged in homicide, and illegal drug and firearms trafficking, which created an atmosphere of terror and disrupted countless lives in this community,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Chicago Field Office. “These charges represent a pivotal milestone in our commitment to restore safety and uphold justice in the communities we serve. Working with their federal, state, and local law enforcement partners, IRS-CI special agents will continue to follow every financial trail to dismantle the networks fueling these criminal enterprises. We stand united against the violence and fear that street gangs have inflicted upon our communities in Minneapolis and elsewhere.”

“The Lows, and criminal organizations like them, wreak havoc on our communities, threatening the safety of our communities on a daily basis through their many acts of violence, murder, and narcotics and firearms trafficking,” said Special Agent in Charge Jamie Holt of Homeland Security Investigations (HSI) St. Paul. “HSI St. Paul will continue to foster a strong collaboration with our law enforcement partners to bring an end to the chaos these criminal organizations inflict on our local communities.”

“This multi-count indictment against ranking members of the Lows gang is an excellent example of multiple law enforcement agencies combining their expertise and resources to conduct investigations with the common goal of taking down violent leaders perpetuating street violence involving guns and narcotics,” said Inspector in Charge Bryan Musgrove of the U.S. Postal Inspection Service (USPIS) Denver Division. “These RICO charges aim to remove these allegedly violent offenders from our community. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives.”

As alleged in this indictment, the defendants were members of the Lows criminal street gang, which has been in existence in Minneapolis since approximately 2004. The Lows are primarily active in the northside of Minneapolis. They allegedly traffic in firearms and narcotics, including fentanyl, and use threats, intimidation, and violence to protect their territory, reputation, illicit proceeds, and power.

The indictment charges that the defendants engaged in a pattern of racketeering — that is, unlawful acts of violence, gun trafficking, and narcotics trafficking — for the benefit of the Lows enterprise. These acts include seven alleged murders or attempted murders involving a total of ten victims.

The 11 defendants, all from Minneapolis, have been indicted for the following crimes:

Ashimiyu Alowonle II, 38, also known as Cash, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

Timothy Callender III, 26, also known as Lil’ Tim, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

Glenn Carter III, 23, also known as G5 and Bossman Carter, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Carter is charged with committing a murder on May 14, 2022, as a racketeering act in furtherance of the RICO conspiracy.

Victor Collins, 22, also known as Vic, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; and possessing a firearm a firearm in furtherance of drug trafficking. Collins is charged with committing a murder and an attempted murder on Feb. 27 as a racketeering act in furtherance of the RICO conspiracy.

Damari Douglas, 20, also known as Mari, is charged with RICO conspiracy, being a felon in possession of a firearm, and possession of a machine gun. Douglas is charged with committing a murder on Dec. 3, 2023, as a racketeering act in furtherance of the RICO conspiracy.

Deontae Jackson, 35, also known as Leef, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

Shannon Jackson, 32, also known as Shakedown, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; possessing a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm. Jackson is charged with committing a murder on April 27, 2023, as a racketeering act in furtherance of the RICO conspiracy.

Robert Knights Jr., 19, also known as CMB Rob and Lil’ Rob, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.

Albert Lucas V, 20, also known as Abk Sav, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Lucas is charged with committing multiple murders and an attempted murder on Feb. 27 and May 6, 2021, as a racketeering act in furtherance of the RICO conspiracy.

Kaprice Richards, 23, also known as Kap, is charged with RICO conspiracy and using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death. Richards is charged with committing an attempted murder on May 29, 2022, and a murder on April 27, 2023, as racketeering acts in furtherance of the RICO conspiracy.

Cartrelle Smith, 27, also known as Poo Moe, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.

If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances. A federal district court judge will determine any sentence after the consideration of the U.S. Sentencing Guidelines and other statutory factors.

ATF, FBI, DEA, IRS-CI, HSI, USPIS, Minneapolis Police Department, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U.S. Marshals Service.

Trial Attorney Jared Engelking of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Garrett S. Fields and David M. Classen for the District of Minnesota are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL Security OSI –

January 25, 2025

MIL-OSI: Silicon Motion Announces Results for the Period Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

Business Highlights

Third quarter of 2024 sales increased 1% Q/Q and increased 23% Y/Y
- SSD controller sales: 3Q of 2024 were flat Q/Q and increased 20% to 25% Y/Y
- eMMC+UFS controller sales: 3Q of 2024 increased 0% to 5% Q/Q and increased 40% to 45% Y/Y
- SSD solutions sales: 3Q of 2024 increased 5% to 10% Q/Q and increased 5% to 10% Y/Y

Financial Highlights

	3Q 2024 GAAP	3Q 2024 Non-GAAP
• Net sales	$212.4 million (+1% Q/Q, +23% Y/Y)	$212.4 million (+1% Q/Q, +23% Y/Y)
• Gross margin	46.7%	46.8%
• Operating margin	11.5%	16.1%
• Earnings per diluted ADS	$0.62	$0.92

TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2024 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended September 30, 2024. For the third quarter of 2024, net sales (GAAP) increased sequentially to $212.4 million from $210.7 million in the second quarter of 2024. Net income (GAAP) decreased to $20.8 million, or $0.62 per diluted American Depositary Share of the Company (“ADS”) (GAAP), from net income (GAAP) of $30.8 million, or $0.91 per diluted ADS (GAAP), in the second quarter of 2024.

For the third quarter of 2024, net income (non-GAAP) decreased to $31.0 million, or $0.92 per diluted ADS (non-GAAP), from net income (non-GAAP) of $32.5 million, or $0.96 per diluted ADS (non-GAAP), in the second quarter of 2024.

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

Third Quarter of 2024 Review
“We continued to execute well in the third quarter of 2024, delivering revenue above the mid-point of our guided range and further expanding our gross margins,” said Wallace Kou, President and CEO of Silicon Motion. “Our eMMC and UFS controller revenue grew modestly, and our SSD controller revenue remained strong given continued growth in the OEM channel. We continue to outperform the market through new wins we secured this quarter with both NAND makers and module makers that we expect will ramp-up in 2025. We expect this trend to continue as we expand our product portfolio and deliver world-class controllers to the market.”

Key Financial Results

(in millions, except percentages and per ADS amounts)	GAAP						Non-GAAP
(in millions, except percentages and per ADS amounts)	3Q 2024		2Q 2024		3Q 2023		3Q 2024		2Q 2024		3Q 2023
Revenue	$212.4		$210.7		$172.3		$212.4		$210.7		$172.3
Gross profit		$99.3		$96.8		$73.1		$99.3		$96.8		$73.3
Percent of revenue		46.7%		45.9%		42.4%		46.8%		46.0%		42.5%
Operating expenses	$74.8		$66.0		$58.1		$65.1		$62.1		$49.5
Operating income		$24.5		$30.7		$15.0		$34.2		$34.7		$23.8
Percent of revenue		11.5%		14.6%		8.7%		16.1%		16.5%		13.8%
Earnings per diluted ADS	$0.62		$0.91		$0.32		$0.92		$0.96		$0.63

Other Financial Information

(in millions)	3Q 2024	2Q 2024	3Q 2023
Cash, cash equivalents, restricted cash and short-term investments—end of period	$368.6	$343.6	$350.3
Routine capital expenditures	$7.4	$6.3	$6.3
Dividend payments	$16.8	$16.8		—

During the third quarter of 2024, we had $12.4 million of capital expenditures, including $7.4 million for the routine purchase of testing equipment, software, design tools and other items, and $5.0 million for building construction in Hsinchu.

Business Outlook
“Looking ahead, we expect to experience gains from greater outsourcing by our NAND flash maker partners, which should continue to deliver revenue and profitability growth for the company,” said Wallace Kou, President and CEO of Silicon Motion. “In the current quarter, we are introducing two key new controllers, including our first AI/enterprise server MonTitan controller and our first PCIe Gen 5.0 client SSD controller, placing Silicon Motion in an exceptionally strong position entering calendar 2025. While the seasonal holiday demand is expected to be more muted than in past years, we are confident that our highly differentiated controller solutions for PCs, smartphones and now enterprise-class storage controllers will further strengthen our market leadership position and will build on our foundation for strong, sustainable long-term growth.”

For the fourth quarter of 2024, management expects:

($ in millions)	GAAP	Non-GAAP Adjustment	Non-GAAP
Revenue	$191 to $202 -10% to -5% Q/Q -6% to 0% Y/Y	—	$191 to $202 -10% to -5% Q/Q -6% to 0% Y/Y
Gross margin	46.3% to 47.4%	Approximately $0.3*	46.5 % to 47.5%
Operating margin	8.0% to 9.9%	Approximately $13.4 to $14.4**	15.6% to 16.6%

* Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $13.4 million to $14.4 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 October 31, 2024.

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/BI3e5d77077ee94ca9b9fd61325f52a0e9

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.

Unrealized holding loss (gain) on investments relates to the 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 Nine Months Ended
	Sep. 30,		Jun. 30,		Sep. 30,		Sep. 30,		Sep. 30,
	2023		2024		2024		2023		2024
	($)		($)		($)		($)		($)
Net Sales	172,333		210,670		212,412		436,763		612,392
Cost of sales	99,193		113,893		113,142		254,897		331,227
Gross profit	73,140		96,777		99,270		181,866		281,165
Operating expenses
Research & development	41,740		50,788		58,486		117,926		163,666
Sales & marketing	6,862		6,777		7,009		20,715		20,090
General & administrative	8,939		7,215		9,315		20,323		23,003
Loss from settlement of litigation	591		1,250		–		591		1,250
Operating income	15,008		30,747		24,460		22,311		73,156
Non-operating income (expense)
Interest income, net	3,480		4,175		3,518		8,026		10,760
Foreign exchange gain (loss), net	569		245		(488	)	2,030		345
Unrealized holding gain(loss) on investments	(2,828	)	1,855		(602	)	8,053		(355	)
Subtotal	1,221		6,275		2,428		18,109		10,750
Income before income tax	16,229		37,022		26,888		40,420		83,906
Income tax expense	5,642		6,201		6,045		8,639		16,226
Net income	10,587		30,821		20,843		31,781		67,680

Earnings per basic ADS	0.32		0.92		0.62		0.95		2.01
Earnings per diluted ADS	0.32		0.91		0.62		0.95		2.01

Margin Analysis:
Gross margin	42.4	%	45.9	%	46.7	%	41.6	%	45.9	%
Operating margin	8.7	%	14.6	%	11.5	%	5.1	%	11.9	%
Net margin	6.1	%	14.6	%	9.8	%	7.3	%	11.1	%

Additional Data:
Weighted avg. ADS equivalents	33,413		33,684		33,687		33,332		33,627
Diluted ADS equivalents	33,471		33,697		33,700		33,431		33,691


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 Nine Months Ended
	Sep. 30,		Jun. 30,		Sep. 30,		Sep. 30,		Sep. 30,
	2023		2024		2024		2023		2024
	($)		($)		($)		($)		($)
Gross profit (GAAP)	73,140		96,777		99,270		181,866		281,165
*Gross margin (GAAP)*	42.4	%	45.9	%	46.7	%	41.6	%	45.9	%
Stock-based compensation (A)	94		14		63		300		149
Restructuring charges	88		46		–		3,347		46
Gross profit (non-GAAP)	73,322		96,837		99,333		185,513		281,360
*Gross margin (non-GAAP)*	42.5	%	46.0	%	46.8	%	42.5	%	45.9	%

Operating expenses (GAAP)	58,132		66,030		74,810		159,555		208,009
Stock-based compensation (A)	(3,751	)	(371	)	(3,595	)	(11,460	)	(7,059	)
M&A transaction expenses	(708	)	–		–		(2,893	)	–
Dispute related expenses	(3,495	)	(3,527	)	(6,076	)	(3,495	)	(11,135	)
Restructuring charges	(661	)	–		–		(4,581	)	–
Operating expenses (non-GAAP)	49,517		62,132		65,139		137,126		189,815

Operating profit (GAAP)	15,008		30,747		24,460		22,311		73,156
*Operating margin (GAAP)*	8.7	%	14.6	%	11.5	%	5.1	%	11.9	%
Total adjustments to operating profit	8,797		3,958		9,734		26,076		18,389
Operating profit (non-GAAP)	23,805		34,705		34,194		48,387		91,545
*Operating margin (non-GAAP)*	13.8	%	16.5	%	16.1	%	11.1	%	14.9	%

Non-operating income (expense) (GAAP)	1,221		6,275		2,428		18,109		10,750
Foreign exchange loss (gain), net	(569	)	(245	)	488		(2,030	)	(345	)
Unrealized holding loss (gain) on investments	2,828		(1,855	)	602		(8,053	)	355

Non-operating income (expense) (non-GAAP)	3,480		4,175		3,518		8,026		10,760

Net income (GAAP)	10,587		30,821		20,843		31,781		67,680
Total pre-tax impact of non-GAAP adjustments	11,056		1,858		10,824		15,993		18,399
Income tax impact of non-GAAP adjustments	(584	)	(218	)	(649	)	(2,968	)	(1,014	)
Net income (non-GAAP)	21,059		32,461		31,018		44,806		85,065

Earnings per diluted ADS (GAAP)	$0.32		$0.91		$0.62		$0.95		$2.01
Earnings per diluted ADS (non-GAAP)	$0.63		$0.96		$0.92		$1.33		$2.52

Shares used in computing earnings per diluted ADS (GAAP)	33,471		33,697		33,700		33,431		33,691
Non-GAAP adjustments	128		18		109		136		52
Shares used in computing earnings per diluted ADS (non-GAAP)	33,599		33,715		33,809		33,567		33,743

(A) Excludes stock-based compensation as follows:
Cost of sales	94		14		63		300		149
Research & development	2,422		94		2,377		7,605		4,614
Sales & marketing	521		173		455		1,496		975
General & administrative	808		104		763		2,359		1,470


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

	Sep. 30,	Jun. 30,	Sep. 30,
	2023	2024	2024
	($)	($)	($)
Cash and cash equivalents	295,385	289,175	313,924
Accounts receivable (net)	193,389	191,692	202,726
Inventories	199,003	240,811	214,574
Refundable deposits – current	49,445	51,036	51,102
Prepaid expenses and other current assets	16,896	31,460	38,246
Total current assets	754,118	804,174	820,572
Long-term investments	17,023	17,301	16,878
Property and equipment (net)	162,107	179,550	181,983
Other assets	33,672	29,121	29,304
Total assets	966,920	1,030,146	1,048,737

Accounts payable	26,975	36,411	30,888
Income tax payable	26,279	14,103	14,444
Accrued expenses and other current liabilities	77,502	134,947	131,143
Total current liabilities	130,756	185,461	176,475
Other liabilities	62,112	60,182	62,673
Total liabilities	192,868	245,643	239,148
Shareholders’ equity	774,052	784,503	809,589
Total liabilities & shareholders’ equity	966,920	1,030,146	1,048,737


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

	For Three Months Ended						For the Nine Months Ended
	Sep. 30,		Jun. 30,		Sep. 30,		Sep. 30,		Sep. 30,
	2023		2024		2024		2023		2024
	($)		($)		($)		($)		($)
Net income	10,587		30,821		20,843		31,781		67,680
Depreciation & amortization	8,043		5,802		6,664		19,032		18,075
Stock-based compensation	3,845		385		3,658		11,760		7,208
Investment losses (gain) & disposals	3,135		(1,855	)	602		(7,556	)	355
Changes in operating assets and liabilities	39,302		(13,660	)	22,280		52,910		(9,967	)
Net cash provided by (used in) operating activities	64,912		21,493		54,047		107,927		83,351

Purchase of property & equipment	(17,052	)	(10,427	)	(12,436	)	(40,687	)	(33,612	)
Net cash provided by (used in) investing activities	(17,052	)	(10,427	)	(12,436	)	(40,687	)	(33,612	)

Dividend payments	–		(16,820	)	(16,812	)	(15	)	(50,441	)
Net cash used in financing activities	–		(16,820	)	(16,812	)	(15	)	(50,441	)

Net increase (decrease) in cash, cash equivalents & restricted cash	47,860		(5,754	)	24,799		67,225		(702	)
Effect of foreign exchange changes	(2,528	)	86		186		(3,977	)	308
Cash, cash equivalents & restricted cash—beginning of period	304,971		349,279		343,611		287,055		368,990
Cash, cash equivalents & restricted cash—end of period	350,303		343,611		368,596		350,303		368,596

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 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. Motions to dismiss the amended complaint are expected to be fully briefed by February 2025. 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 press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 press release.

The MIL Network –

January 25, 2025

MIL-OSI: Silicon Motion Appoints Jason Tsai as Chief Financial Officer

Source: GlobeNewswire (MIL-OSI)

TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2024 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in designing and marketing NAND flash controllers for solid state storage devices, today announced, following a search process, that Jason Tsai, currently the Interim Chief Financial Officer and VP of Investor Relations and Finance of the Company, has been appointed the Chief Financial Officer, effective October 28, 2024. Mr. Tsai has served as our Interim CFO since April 25, 2024.

Wallace Kou, Chief Executive Officer of Silicon Motion, said, “Jason has made innumerable contributions to the strong performance of our finance team and the financial results of the Company in his previous roles as Interim CFO and VP of Investor Relations and Finance. After a six-month search, our Board unanimously resolved that with his long history with the Company and his in-depth knowledge of our business, our customers and our industry, Jason is the ideal choice to help align our long-term strategy with our strong financial performance and operational excellence in the years ahead.”

“I am excited for this opportunity to help Silicon Motion through its next chapter,” said Jason Tsai. “I believe that the Company is poised for significant growth as it extends its market leading position in its current markets and capitalize on its new and growing opportunities in the enterprise storage market.”

Jason has over 25 years of finance leadership experience in the semiconductor, hardware and software (SaaS) sectors. Prior to rejoining Silicon Motion last year, he held finance leadership positions at Zendesk and Synaptics and brings an extensive background in financial planning, treasury, capital markets, investor relations and strategic planning.

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 press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 press release.

Investor Contact:

Tom Sepenzis
Senior Director of IR & Strategy
E-mail: tsepenzis@siliconmotion.com

Selina Hsieh
Investor Relations
ir@siliconmotion.com

The MIL Network –

January 25, 2025
MIL-OSI Economics: African Development Bank Approves a $75 Million Participation in Export Trading Group’s Sustainability Linked Loan for Core Value Chain Financing…

Source: African Development Bank Group

The African Development Bank Group has approved a $75 million financing package to support Export Trading Group (ETG), a Mauritius-based conglomerate with extensive operations across Africa. ETG boasts a diverse portfolio spanning agricultural inputs, logistics, merchandising and processing, supply chain optimization, digital transformation, and energy.

This package includes a $65 million participation from the Bank’s own resources, along with $10 million in concessional co-financing from the Agri-Food Catalytic Financing Mechanism (ACFM) into ETGs Sustainable Linked Loan facility for financing its core value chain assets. The Agri-Food Catalytic Financing Mechanism is an internally managed Special Fund, capitalized by Canada’s Department of Foreign Affairs, Trade and Development, to build markets and mobilize finance for gender-oriented and underserved agri-SMEs in Africa.

Through participation in the Sustainable Linked Loan facility, the financing will be deployed to ETG’s core value chains in 14 countries, namely Benin, Ghana, Ivory Coast, Senegal, Nigeria, Burkina Faso, Ethiopia, Kenya, Tanzania, Uganda, Malawi, Mozambique, Zimbabwe, and Zambia. This will support ETG’s processing and packaging facilities and warehouses and provide farmers with fertilizers and other agri-inputs. The Bank’s financing may be deployed to up to 28 African countries based on ETG’s emerging needs.

The Sustainable Linked Loan facility establishes annual sustainability key performance indicators and targets focused on decarbonization, reforestation, zero deforestation, farmer extension services, and gender empowerment with inherent direct financial consequences for non-compliance.

“The African Development Bank Group is thrilled to expand our work with Export Trade Group and support its commitment to strengthen women’s economic development in Africa. Access to finance and training in agriculture will contribute to food security and economic growth,” said Dr. Beth Dunford, Bank Vice President for Agriculture, Human and Social Development.

ETG plans to engage 600,000 smallholder farmers by 2027, with a 25 percent target for women farmers. This includes training on sustainable farming and improved access to resources. The project is expected to boost exports from Bank regional member countries and enhance intra-regional trade, particularly within the Economic Community of West African States, Southern African Development Community, and East African Community regional economic blocks.

The Bank’s investment in ETG capitalizes on the Group’s proven track record and resilience in agriculture, aiming to mobilize private sector financing into a critical yet underserved sector of the economy. ETG will manage the project, with oversight from the company’s Board of Directors and support from specialized departments within the Group.

The project aligns with the Bank’s ‘High 5’ priorities, specifically “Feed Africa,” “Integrate Africa,” and “Improve the quality of life for the people of Africa,” as well as the Bank’s Ten-Year Strategy 2024-2033. It is expected to contribute to Africa’s agricultural transformation into a business-oriented and commercially viable sector, driving the continent’s food self-sufficiency.

“By partnering with ETG, the African Development Bank continues to champion strategic enterprises that operate across multiple countries, furthering its mission to support agricultural development and improve the livelihoods of millions across the continent. The decision to continue funding ETG is just not a financial transaction. It is a strategic collaboration with a purpose – a mission to transform African agriculture and a commitment to optimize the influence of their investments, “said Richard Ofori-Mante, Director of the Agricultural Finance and Rural Development Department at the Bank.

“By tying loan conditions to performance indicators related to sustainability, ETG is more likely to engage in activities that advance the Sustainable Development Goals. This alignment will drive better environmental, social, and governance outcomes. The transaction not only promotes sustainable practices within ETG’s operations but also influences its supply chain and partners, amplifying the impact on sustainable development,” Ofori-Mante added.

MIL OSI Economics –

January 25, 2025
MIL-OSI Economics: Africa Investment Forum welcomes BADEA as new partner ahead of the December Market Days in Rabat

Source: African Development Bank Group

The Arab Bank for Economic Development in Africa (BADEA) has joined the Africa Investment Forum as a founding partner, marking a new phase in the Forum’s expansion and influence as a catalyst for mega investments into the continent.

The official announcement came during a breakfast meeting of heads of the Africa Investment Forum Founding Partner institutions, convened by the African Development Bank in Washington, DC on the sidelines of the International Monetary Fund and World Bank’s annual meetings. During the meeting, the partners examined and adopted a new strategic framework to govern the forum. The meeting took place on Friday 25 October.

In welcoming BADEA as a new partner, African Development Bank President Akinwumi Adesina said: “Since 2018, BADEA has been a steadfast supporter of the Africa Investment Forum, consistently contributing to the growth and success of this platform.”

The Arab Bank for Economic Development in Africa is a multilateral development financial institution owned by 18 Arab countries. Its operations cover the entire Sub-Saharan African region.

BADEA group president Dr. Sidi Ould Tah said the main shareholders of his bank had been working on a new mechanism to support investment flows to Africa. The group has sovereign funds under management with assets in the trillions of dollars, of which they had pledged to channel a part for Africa’s infrastructure needs.

“The role of BADEA is to catalyse resources for Africa. BADEA will work with all the member countries of AIF to make this pledge a reality,” Tah said.

The addition of BADEA brings the AIF’s founding partners to nine: the African Development Bank, Afreximbank, Africa Finance Corporation, Africa50, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, and Trade and Development Bank.

Meeting of AIF founding partners in Washington, DC October 2024

Heads and representatives of each of the partners who attended the meeting included included Trade and Development Bank President and CEO Admassu Tadesse, Africa Finance Corporation’s CEO Samaila Zubairu, Africa50 President Alain Ebobissé, European Investment Bank Vice President Ambroise Fayolle, Hani Salem Sonbol Chief Executive Officer of the International Islamic Trade Finance Corporation representing Islamic Development Bank President Dr. Muhammad Sulaiman Al Jasser, and Afreximbank’s Director for Export Development Oluranti Doherty, who represented its president.

Adesina also commended the founding partners for their energy, drive and momentum which he described as a testament to their confidence in the Forum.

The AIF’s Market Days events, held annually, have drawn sovereign and non-sovereign investors from around the world, enabling a shift in risk perception and fostering confidence in Africa’s investment landscape.

The platform has actively supported women-led businesses under its Women as Investment Champions pillar with examples such as Mobihealth International Ltd (Healthcare, Nigeria) which was supported to access grant and loan funding for feasibility studies and pan-African expansion.

From the African Development Bank, Senior Vice President Marie Laure Akin-Olugbade, Hassatou N’Sele Vice President for Finance and CFO, Beth Dunford, Vice President for Agriculture, Human and Social Development, Nnenna Nwabufo, Vice President for Regional Development, Integration and Business Delivery and Kevin Urama, Chief Economist and Vice President, Economic Governance and Knowledge Management, also attended the meeting. The Senior Director of Syndications, the Africa Investment Forum and Client Solutions, Max Magor Ndiaye, and the Special Representative of President Adesina, Yacine Fall were also present.

The 2024 Market Days will take place from 4-6 December 2024 in Rabat, Morocco, under the theme: “Leveraging Innovative Partnerships for Scale.”

MIL OSI Economics –

January 25, 2025
MIL-OSI Economics: Mozambique: African Development Bank approves $54 million loan for Mozambique’s first wind energy project

Source: African Development Bank Group

The Board of Directors of the African Development Bank has approved a loan of $54 million for a 120 MW onshore wind farm that will help position Mozambique as a regional energy hub.

The Bank’s loan, which includes $12 million from the Sustainable Energy Fund for Africa (SEFA), is in addition to financing expected from International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and the Private Infrastructure Development Group’s Technical Assistance. The total project cost is estimated at $224.5 million.

Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, located 50 km west of Maputo, under a 25-year power purchase agreement.

The wind farm will be Mozambique’s first utility-scale wind power project. It is expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique’s energy mix, and improving access to electricity. It will also position the country as a regional energy hub, capitalizing on increased energy trade through the Southern African Power Pool (SAPP).

With Mozambique’s energy sources currently dominated by hydropower and gas, the Namaacha wind farm project will help reduce annual CO₂ emissions by approximately 71,816 tons, contributing to the country’s commitments under the Paris climate agreement.

The project will support economic growth, job creation, and improved living standards. During construction it will create 600 jobs, of which its targeting about 120 will be for women, and 300 for youth. Once operational, 20 permanent jobs will be created, with a focus on gender and youth inclusion.

Commenting on the project, Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said, “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”

Wale Shonibare, Director of the Energy Financial Solutions, Policy, and Regulations Department at the African Development Bank stressed the technological impact of this milestone project. “As the first large-scale wind energy initiative in Mozambique, this project showcases the transformative potential of renewable technologies to drive sustainable growth. By leveraging Mozambique’s natural resources, we are creating pathways toward a diversified and resilient energy sector that not only meets current demands but is future-proofed to support an evolving economy,” he said.

Globeleq is one of the project developers. Its CEO Jonathan Hoffman said: “The Namaacha Wind Farm is a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. We are proud to partner with EDM and Source Energia in contributing to the government’s ambitious ‘Energy for All by 2030’ program, which is rapidly transforming into a reality for countless Mozambicans. This project reflects our commitment to supporting Mozambique’s clean energy goals and bringing reliable power to the communities we serve.”

Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the project underscores Mozambique’s dedication to renewable energy development and supports its goal of achieving universal access to electricity by 2030.

The project complements the Bank’s earlier energy sector initiatives in Mozambique, including the Songo Matambo transmission line and the Mozambique Energy for All program.

MIL OSI Economics –

January 25, 2025
MIL-OSI USA: As Clocks Are Set to Fall Back, Senators Markey and Rubio Call for Permanent Daylight Saving Time

US Senate News:

Source: United States Senator for Massachusetts Ed Markey

Boston (October 30, 2024) – Senator Edward J. Markey (D-Mass.) and Senator Marco Rubio (R-Fl.), cosponsors of the bipartisan Sunshine Protection Act, which would make Daylight Saving Time (DST) permanent, again called for passage of their legislation to stop the twice-yearly process of changing clocks in the Spring and Fall. In March 2022, the Sunshine Protection Act unanimously passed the Senate.

“This head-spinning ritual of falling back and springing forward has gone on long enough,” said Senator Markey. “It isn’t just a nuisance — changing our clocks also has a very real impact on our economy, our health, and our happiness. More sun means more fun, so let’s pass the Sunshine Protection Act, which would make for brighter days year-round.”

“It’s time to lock the clock and stop enduring the ridiculous and antiquated practice of switching our clocks back and forth. Let’s finally pass my Sunshine Protection Act and end the need to ‘fall back’ and ‘spring forward’ for good,” said Senator Rubio.

As part of the Energy Policy Act of 2005, then-Representative Markey and Congressman Fred Upton (R-Mich.) amended the Uniform Time Act of 1966, extending the duration of DST in the Spring by changing its start date from the first Sunday in April to the second Sunday in March, and in the Fall by changing its end date from the last Sunday in October to the first Sunday in November. In 1985, then-Representative Markey partnered with Congressman Carlos Moorhead (R-Calif.) to extend DST by three weeks by changing the beginning of Daylight Saving Time from the last Sunday in April to the first Sunday in April.

MIL OSI USA News –

January 25, 2025
MIL-OSI Asia-Pac: FS continues to explore business opportunities for Hong Kong in Riyadh, Saudi Arabia (with photos)

Source: Hong Kong Government special administrative region

The Financial Secretary, Mr Paul Chan, together with a delegation, had their second day of visit in Riyadh, Saudi Arabia, yesterday (October 30, Riyadh time). In the morning, Mr Chan attended the listing ceremony for the first exchange-traded fund (ETF) in Saudi Arabia that invests in Hong Kong stocks at the Saudi Exchange. This product is the result of collaboration between Albilad Bank of Saudi Arabia and Hong Kong’s CSOP Asset Management Limited. Mr Chan highlighted that as the largest ETF in the Middle East, it will attract more regional investors and broaden funding sources for the Hong Kong market, while diversifying the investment product offerings in the Saudi market, fostering the development of its ETF market, creating a win-win situation. He also noted that after the first ETF investing in the Saudi market was listed in Hong Kong last November, this marks the Saudi Arabia’s first ETF investing in Hong Kong stocks. He believes that more diversified products will emerge in the future, providing investors from the Middle East with convenient channels to invest in Hong Kong and Mainland China, and enhancing the two-way flow of capital between Hong Kong and Saudi Arabia, and fostering greater connectivity and more vibrant development of the capital markets in both regions. Mr Chan and some delegation members also attended a breakfast meeting hosted by Hong Kong Exchanges and Clearing Limited (HKEX) to discuss capital market connectivity between Asia and the Middle East. During his keynote speech at the breakfast meeting, Mr Chan elaborated on Hong Kong’s significant role and function in the global capital market. He pointed out that Saudi Arabia’s Vision 2030 has brought major reforms and opportunities, promoting capital investment from Asian markets. With its unique advantage of “one country, two systems”, Hong Kong has become the premier international financial centre connecting the Middle East with the Chinese market, particularly in three key areas: a deep and broad fund-raising market, asset and wealth management, and green and sustainable finance. They provide diverse investment offerings for investors and enterprises in the Middle East, and providing financial support to regional economic development and green transformation. The breakfast meeting included a discussion session moderated by HKEX’s Chief Executive Officer (CEO), Ms Bonnie Chan, featuring remarks from CEO of the Saudi Exchange, Mr Mohammed Al-Rumaih; Deputy Chief Executive of the Hong Kong Monetary Authority, Mr Darryl Chan, and CEO of Standard Chartered Group, Mr Bill Winters. At noon, Mr Chan called on the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Kingdom of Saudi Arabia, Mr Chang Hua, to brief him on Hong Kong’s latest economic developments and exchange views on China-Saudi co-operation and economic relations. In the afternoon, Mr Chan co-hosted a capital markets roundtable with Chairman of the Saudi Capital Market Authority, Mr Mohammed bin Abdullah Elkuwaiz. Representatives from regulatory bodies and a number of asset management institutions attended to discuss the latest developments in the financial markets of both regions and to explore further co-operation opportunities. Later, Mr Chan met with Governor of the Saudi Central Bank, Mr Ayman Alsayari, to discuss advancing connectivity in investment and financial markets between Hong Kong and Saudi Arabia and the Middle East, as well as co-operation in digital finance. In the evening, the Hong Kong Science and Technology Parks Corporation held the “Hong Kong Tech Disrupt” event, featuring over 20 startups in green technology, biotechnology, artificial intelligence and robotics, etc. They showcased their research products and sought to connect with investors and business partners. Yesterday, a number of delegation members also attended the “Future Investment Initiative” event and delivered speeches, continuing to tell the good story of China and Hong Kong. ??? Mr Chan and the delegation will continue their final day of visit in Riyadh today (October 31, Riyadh time).

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI USA: Eleven Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking Offenses

Source: US State Government of Utah

A federal grand jury in Minneapolis returned an 18-count indictment yesterday against 11 alleged members of the Lows — a violent Minneapolis street gang — for crimes including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving murder, attempted murder, gun trafficking, and drug trafficking.

“According to the indictment, these defendants are leaders, organizers, and members of the Lows street gang, a violent gang that allegedly committed multiple murders and attempted murders and trafficked in guns and drugs, including fentanyl,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Violent gangs that engage in bloody street wars and peddle deadly drugs endanger our communities. The Criminal Division, along with our local, state, and federal partners, is committed to holding violent criminals accountable, including by bringing racketeering charges.”

“The Lows are an exceptionally violent criminal street gang that has terrorized north Minneapolis for nearly 20 years. Through threats and violence — shootings and murders — the Lows have long sought to establish dominion over large swaths of our city,” said U.S. Attorney Andrew Luger for the District of Minnesota. “My office will continue to respond to gang violence by treating it as the organized criminal activity it is. This indictment is an important step in dismantling a violent street gang that has devastated families and communities in north Minneapolis.”

“More than 100 people lose their lives to gun violence every day in the United States,” said Special Agent in Charge Travis Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division. “There will never be a time where this will be considered acceptable. Our ATF agents put forth solid investigative work in this case utilizing crime gun intelligence that without a doubt aided the case announced today. ATF is happy to work alongside each of our partners in this investigation, and we are grateful to the Criminal Division, U.S. Attorney Luger, and the entire team for taking up this challenging RICO case.”

“The charges in this indictment reflect our unwavering commitment to bringing violent criminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “For too long, the Lows have inflicted pain and spread fear in north Minneapolis. Together with our law enforcement partners, we are determined to remove this threat from our communities and help restore a sense of security to all who call this city home.”

“Today’s indictment provides a stark reminder that violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Steven T. Bell of the Drug Enforcement Administration (DEA) Omaha Division. “These were not victimless crimes. Communities were hurt. The DEA will continue its unwavering focus to remove threats of violence and hold accountable the individuals responsible for inflicting fear on the streets of Minneapolis.”

“The individuals named in this indictment allegedly engaged in homicide, and illegal drug and firearms trafficking, which created an atmosphere of terror and disrupted countless lives in this community,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Chicago Field Office. “These charges represent a pivotal milestone in our commitment to restore safety and uphold justice in the communities we serve. Working with their federal, state, and local law enforcement partners, IRS-CI special agents will continue to follow every financial trail to dismantle the networks fueling these criminal enterprises. We stand united against the violence and fear that street gangs have inflicted upon our communities in Minneapolis and elsewhere.”

“The Lows, and criminal organizations like them, wreak havoc on our communities, threatening the safety of our communities on a daily basis through their many acts of violence, murder, and narcotics and firearms trafficking,” said Special Agent in Charge Jamie Holt of Homeland Security Investigations (HSI) St. Paul. “HSI St. Paul will continue to foster a strong collaboration with our law enforcement partners to bring an end to the chaos these criminal organizations inflict on our local communities.”

“This multi-count indictment against ranking members of the Lows gang is an excellent example of multiple law enforcement agencies combining their expertise and resources to conduct investigations with the common goal of taking down violent leaders perpetuating street violence involving guns and narcotics,” said Inspector in Charge Bryan Musgrove of the U.S. Postal Inspection Service (USPIS) Denver Division. “These RICO charges aim to remove these allegedly violent offenders from our community. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives.”

As alleged in this indictment, the defendants were members of the Lows criminal street gang, which has been in existence in Minneapolis since approximately 2004. The Lows are primarily active in the northside of Minneapolis. They allegedly traffic in firearms and narcotics, including fentanyl, and use threats, intimidation, and violence to protect their territory, reputation, illicit proceeds, and power.

The indictment charges that the defendants engaged in a pattern of racketeering — that is, unlawful acts of violence, gun trafficking, and narcotics trafficking — for the benefit of the Lows enterprise. These acts include seven alleged murders or attempted murders involving a total of ten victims.

The 11 defendants, all from Minneapolis, have been indicted for the following crimes:

Ashimiyu Alowonle II, 38, also known as Cash, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

Timothy Callender III, 26, also known as Lil’ Tim, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

Glenn Carter III, 23, also known as G5 and Bossman Carter, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Carter is charged with committing a murder on May 14, 2022, as a racketeering act in furtherance of the RICO conspiracy.

Victor Collins, 22, also known as Vic, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; and possessing a firearm a firearm in furtherance of drug trafficking. Collins is charged with committing a murder and an attempted murder on Feb. 27 as a racketeering act in furtherance of the RICO conspiracy.

Damari Douglas, 20, also known as Mari, is charged with RICO conspiracy, being a felon in possession of a firearm, and possession of a machine gun. Douglas is charged with committing a murder on Dec. 3, 2023, as a racketeering act in furtherance of the RICO conspiracy.

Deontae Jackson, 35, also known as Leef, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

Shannon Jackson, 32, also known as Shakedown, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; possessing a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm. Jackson is charged with committing a murder on April 27, 2023, as a racketeering act in furtherance of the RICO conspiracy.

Robert Knights Jr., 19, also known as CMB Rob and Lil’ Rob, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.

Albert Lucas V, 20, also known as Abk Sav, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Lucas is charged with committing multiple murders and an attempted murder on Feb. 27 and May 6, 2021, as a racketeering act in furtherance of the RICO conspiracy.

Kaprice Richards, 23, also known as Kap, is charged with RICO conspiracy and using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death. Richards is charged with committing an attempted murder on May 29, 2022, and a murder on April 27, 2023, as racketeering acts in furtherance of the RICO conspiracy.

Cartrelle Smith, 27, also known as Poo Moe, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.

If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances. A federal district court judge will determine any sentence after the consideration of the U.S. Sentencing Guidelines and other statutory factors.

ATF, FBI, DEA, IRS-CI, HSI, USPIS, Minneapolis Police Department, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U.S. Marshals Service.

Trial Attorney Jared Engelking of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Garrett S. Fields and David M. Classen for the District of Minnesota are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

January 25, 2025
MIL-OSI Australia: Interview with Warwick Lang, Victorian Country Hour, ABC Radio

Source: Australian Treasurer

WARWICK LONG:

Let’s talk competition in farming in Australia. A member of the federal government has identified farming as an area in dire need of competition reform in Australia. Andrew Leigh is the Assistant Minister for Competition in the Labor government. He says this country’s small‑scale farmers are getting hammered at both ends by concentrated markets and at numerous points along the agricultural supply chain. I had a chat to him about improving the improving the competition playing field for farmers after he made a speech on such a topic to ABARES in Canberra.

ANDREW LEIGH:

Well, farmers are the meat in the sandwich when it comes to problems of competition in the Australian economy. We see too many farmers buying seed and fertiliser from concentrated markets and then getting squeezed by having to sell into concentrated markets for processors or in freight. And the effect is that farmers aren’t getting a fair deal. I’m talking about a lot of what we’re doing in the competition space through the lens of farming. Farming is a critical industry to the Australian economy, but it also illustrates some of the big competition problems that the Australian economy faces right now.

LONG:

Why is farming such an easy example to grasp about the lack of competition and what it does to markets?

LEIGH:

Compared to many industries, small‑scale farming is pretty easy to enter. It is not as easy to set up a tractor manufacturing business or to set up a freight distribution network. The result is that you get a lot of competition in farming across many commodities but not so much upstream and downstream. So if you’re looking at fertiliser, the big 4 fertiliser manufacturers in Australia have 62 per cent of the market between them. And then if you’re looking downstream, fruit and vegie processing, the big 4 have 34 per cent of the market. Meat processing, the big 4 have 44 per cent of the market. So there’s these really concentrated markets, and that’s before we’ve even gotten to the supermarkets where the supermarket duopoly does have the effect of squeezing farmers. Which, of course, is why, Warwick, we’re moving to make the Food and Grocery Code of Conduct a mandatory code.

LONG:

What has failed in the past? So the meat industry is one of those that you’re using, particularly you cite its effect on small‑scale beef producers, for example, because there’s such market concentration. Now, I’ve been around for quite a long time, Assistant Minister, and I remember when the ACCC didn’t oppose JBS’s taking over of Primo, for example, because even though it meant a highly concentrated market in areas like New South Wales and Queensland. So what’s gone wrong in the past to lead us down this road of concentration now?

LEIGH:

Our merger law system just hasn’t been up to what it needs for a modern economy. Australia’s competition watchdog doesn’t get to see about 3 out of every 4 mergers because there’s no requirement on big firms to notify them. You can’t block what you can’t see. So the merger reforms we’ve got in parliament right now are the biggest merger shake‑up in half a century. We’d hope they’d get support right across the parliament. And they’ll have 2 results, Warwick, one will be that low‑risk mergers get approved quicker, and the other is that high‑risk mergers can have the scrutiny that they deserve applied to them by the competition watchdog.

LONG:

What other rules and changes are you proposing?

LEIGH:

We’ve got the banning of unfair contract terms. We did that as soon as we came into office. And that’s mattered for areas such as fertiliser contracts and potato processing where those unfair contract terms have been used. For consumers we’ve got the CHOICE quarterly price monitoring to make sure that consumers are seeing where they can get their best deal across the grocery sector. And we’re giving the competition watchdog more resources in order to check up on unit pricing, make sure that the prices on the supermarket shelf really are a fair reflection of what Australians will pay.

LONG:

You’ve also cited in your speech today about the right to repair laws affecting the motor vehicle industry. You and I spoke a lot in the past about trying to extend that to tractor and machinery sales. Why hasn’t that happened yet?

LEIGH:

Well, we’re encouraging parties to first look at a voluntary agreement here which can often have a more tailored approach. But we recognise that there’s a squeeze on and it can particularly affect farmers where you’re working off short timeframes. You’ve got to get a crop harvested. Your machine breaks down and you just can’t afford to take a week for the authorised dealer to fix it. So we understand the squeeze. We understand that the farm machinery industry is heavily concentrated. This one is not as straightforward as what we did for the motor vehicle scheme –

LONG:

Why not?

LEIGH:

Well, because in motor vehicles you’ve got a greater diversity of independent repairers. There’s some 20,000 independent repairers across the country. You just don’t have that network of independent repairers in the area of farm machinery. Most of the repair is being done at the moment by the big firms. And what we’re looking at is a discussion where people say we could have a vibrant independent repair industry if only there was a right to repair laws for farm machinery.

LONG:

Yeah, so as opposed to what you had to do in the motor vehicle sector where there was already an existing network there effectively you need to look if your law changes for the farm machinery sector would effectively almost create a new category of business?

LEIGH:

Yes, that’s right. Whereas independent mechanics, we were seeing them being crushed by a lack of access to data. But data is a big thing. John Deere has got more software development engineers than mechanical design engineers. Farm machines are becoming increasingly computerised, and that means that access to the data is fundamental to allowing a third‑party repairer to fix a fault.

LONG:

This is your passion, isn’t it? Competition and how markets work.

LEIGH:

I’m glad you detected that passion, Warwick. Absolutely. For economists this goes back to Adam Smith in 1776. There’s really good work about the benefits of competition for consumers, for workers and just for innovation. More competitive markets see higher productivity growth. And so this is one of the key things we need to do if we’re going to kickstart more growth in the Australian economy.

LONG:

And obviously more competition, more buyers for products is important. Your government is restricting that in the world of agriculture, particularly for the WA sheep industry right now with the phase out of live sheep exports. Have you looked at what that will do to the market there?

LEIGH:

Look, we’re providing support to the industry – over $100 million there – and also encouraging the boxed meat industry. And as you well know, Warwick, the volume of live sheep exports has been steadily declining. We’re very keen to see that local processing industry increasing, the value‑adding, and also working hard to open up new markets. So if you look at the resumption of the rock lobster trade with China, with the trade deal with the United Arab Emirates, all of that opening up of the international markets gives more options to our farmers. It means that they’re not as constrained at just selling to a couple of local processors.

LONG:

A sheep farmer can hardly jump into the world of rock lobster farming, though, can they?

LEIGH:

No, that’s right. I’m just giving you an illustration of what we’re doing across the markets, recognising the importance of international trade to Australian farmers.

LONG:

I suppose you and I are talking about the same thing here, right, aren’t we, Andrew Leigh? We’re talking about how government decisions or actions, whether it be the closure of key international markets or whether it be phase‑outs of industry, that does affect markets and it’s on government to pull the levers to decide the future of these industries, isn’t it?

LEIGH:

The government plays a significant role. And what you’re talking about with live sheep really is an issue of animal welfare, which I think is broadly supported across the Australian community. But what we’ve been doing in opening up international markets really is very much in the traditions of the Whitlam, Hawke and Keating governments – that international engagement often led by farmers because we export the vast majority of our agricultural produce in Australia to the benefit of farmers and the broader economy.

LONG:

So, this is part of your discussion with ABARES. Do you have a plan to sort of update on whether your levers and work in competition areas will be working in, say, 12 months’ time?

LEIGH:

Yeah, it’s a great question, and one of the things we haven’t done very well in government is evaluating what we do. And so we’re now just thinking through the best ways of evaluating the impact of the competition reforms, making sure that as we move to a mandatory code of conduct for food and grocery that we are seeing those better deals coming through for farmers, ensuring that as we go into the new merger regime that we see better competition across Australian industries. So, tracking performance is absolutely the best practice in government. That’s what I want to do more of.

LONG:

That’s the Assistant Minister for Competition, Andrew Leigh, speaking there about improving competition rules, the playing field essentially for farmers.

MIL OSI News –

January 25, 2025
MIL-OSI Australia: Optus in court for alleged unconscionable sales and debt collection
Source: Australian Competition and Consumer Commission

The ACCC has commenced proceedings in the Federal Court alleging that Optus Mobile Pty Ltd (Optus) engaged in unconscionable conduct in contravention of the Australian Consumer Law when selling telecommunications goods and services to hundreds of consumers, that they often did not want or need, and in some cases then pursuing consumers for debts resulting from these sales.

Many of these consumers were experiencing vulnerability and/or disadvantage, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, or having limited financial and legal literacy.

Many of the impacted consumers were First Nations Australians from regional and remote areas or people from culturally and linguistically diverse backgrounds.

“We allege Optus’ conduct disproportionately impacted consumers experiencing vulnerability and/or disadvantage, and that these practices were incentivised by the commission-based remuneration for sales staff. In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers,” ACCC Chair Gina Cass-Gottlieb said.

“This case concerns allegations of very serious conduct, as our case is that Optus sold goods to consumers experiencing vulnerability which they did not need, did not want and could not afford.”

“We also allege that Optus’ unconscionable conduct continued after management became aware of deficiencies in its systems that were being exploited by sales staff, and despite this, failed to implement fixes,” Ms Cass Gottlieb said.

Alleged conduct

The ACCC’s case against Optus involves allegations that Optus acted unconscionably in its dealings with about 429 consumers by engaging in inappropriate sales conduct and/or pursuing consumers for debts, including when it knew contracts were created fraudulently.

The conduct included Optus allegedly putting undue pressure on some of these consumers to purchase a large number of products, including expensive phones and accessories, and not undertaking coverage checks to inform the consumer whether they would have Optus coverage where they lived.

It is alleged that Optus engaged debt collectors to pursue many of these consumers, despite knowing that they were subject to inappropriate or fraudulent sales conduct.

The alleged conduct involves 363 consumers from two Optus Darwin stores, 42 consumers from the Optus Mount Isa store and 24 individual consumers from store locations across Australia.

“We are taking this action against Optus and seeking consumer redress in relation to the hundreds of consumers affected by this alleged unconscionable conduct,” Ms Cass-Gottlieb said.

The ACCC began its investigation after receiving a referral from the Telecommunications Industry Ombudsman about concerns regarding Optus’ sales practices to consumers experiencing vulnerability and/or disadvantage.

The ACCC is seeking declarations and orders for penalties, non-party consumer redress, publication orders, a compliance program, and costs.

Optus’ Darwin stores conduct

The ACCC alleges unconscionable conduct at Optus’ two licensee-operated stores in Darwin, where nearly all staff allegedly engaged in inappropriate sales conduct, encouraged by senior store management, during a two-year period to June 2023. The conduct included not carrying out coverage checks, despite some of the 363 impacted consumers being First Nations Australians from regional, remote and very remote parts of the Northern Territory where there was no Optus coverage available.

The ACCC’s allegations include that Optus staff manipulated credit checks, oversold and overpriced accessories, and sold consumers phones and plans they could not afford at the Darwin stores.

Optus’ Mount Isa store conduct

The ACCC also alleges Optus acted unconscionably by pursuing debts for at least 42 consumers from Mount Isa and remote areas of the Northern Territory, despite some senior executives knowing that those debts related to contracts for goods and services which were fraudulently created by a staff member at a licensee-operated Optus store in Mount Isa, without the knowledge of the affected consumers.

Optus’ conduct to individual consumers

The ACCC alleges Optus acted unconscionably in its dealings with 24 individual consumers by engaging in inappropriate sales conduct. This included by applying undue pressure and inducing the consumers to purchase a large number of goods and services.

The alleged conduct includes claims that sales staff manipulated credit check results without the consumers’ knowledge to sell goods and services that they could not afford, while failing to explain the terms and conditions of contracts in an understandable manner. Despite knowing about this alleged conduct, Optus pursued debt collection activities in many cases, and referred and sold the consumers’ debts to third party debt collection agencies.

In relation to four of these consumers, the ACCC also claims that Optus made false, misleading or deceptive representations that particular goods were ‘free’ when that was not in fact the case.

“Many consumers suffered financial harm, incurring thousands of dollars of debt and non-financial harm, such as shame, fear, and emotional distress about the debts or being pursued by debt collectors,” Ms Cass-Gottlieb said.

“Thankfully many consumers were supported by financial counsellors, carers and other advocates who gave their time and effort to support consumers to eventually seek resolution of Optus’ conduct.”

“We will take appropriate enforcement action against breaches of the Australian Consumer Law, and we pay particular attention to conduct that disproportionately impacts consumers who are experiencing vulnerability or disadvantage.”

An example of the alleged conduct includes a person living with an intellectual disability which impacts their ability to speak and understand financial matters went into an Optus store and was sold an expensive phone, a business phone contract under a false ABN, a new NBN internet plan and accessories, though their disability was evident to Optus staff. The person did not want or need the majority of these items, and was upset and embarrassed about the unwanted and expensive items they were sold. When the person’s representative went to the store to return the items, the Optus staff refused to cancel the contracts and it was only through the intervention of a financial counsellor that Optus cancelled the contracts.

Background

Optus is Australia’s second largest telecommunications provider. It is a wholly-owned subsidiary of Singtel Optus Pty Ltd, a foreign owned private company.

In Australia, Optus’ stores are either:
- owned and operated directly by Optus RetailCo Pty Ltd; or
- owned and operated through third party licensees, through Retail License Agreements. For example, all Optus stores in the Adelaide region are owned and operated by Mavaya Pty Ltd, and all Optus stores in the Northern Territory, as well as several in regional Queensland, are owned and operated by Suntel Communications Pty Ltd.
Statement of claim

ACCC v Optus Mobile Pty Ltd – Introduction to Statement of Claim ( PDF 67.78 KB )

The ACCC has commenced this proceeding with a Statement of Claim. The document available via the link contains the introduction section of the ACCC’s Statement of Claim in relation to this matter, which contains a summary of the ACCC’s case. We will not be uploading further documents.

MIL OSI News –
January 25, 2025

MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 third quarter and year-to-date ended September 30, 2024.

2024 Third Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

86 consecutive quarters of profitability
Net income increased 36.4% to $6.5 million, or $0.48 per basic and diluted share, from $4.8 million, or $0.35 per basic and diluted share, and net income expanded 14.7% from the 2024 second quarter
Net interest margin increased 12 basis points to 2.71%
Efficiency ratio improved to 67.98%, compared to 73.07% for the same period a year ago, and 69.03% for the 2024 second quarter
Total net loans remain stable at $2.54 billion at September 30, 2024
Total assets increased 4.8% to a record $3.39 billion
Deposits increased 4.3% to a record $2.68 billion
Stockholders’ equity increased 10.6% to a record $335.4 million
Asset quality remains at historically strong levels with nonperforming loans of only $2.9 million at September 30, 2024, compared to $22.4 million at September 30, 2023
Allowance for credit losses was 879.37% of nonperforming loans
F&M ended the quarter with excellent liquidity levels, and over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%
According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets

Lars B. Eller, President and Chief Executive Officer, stated, “F&M produced excellent earnings growth on a year-over-year and sequential basis, driven by higher net interest income, historically strong asset quality, and prudent expense management. Most importantly, our third quarter results reflect the talent of our associates, as we continue to work hard to drive operating improvements at F&M, serve our local Ohio, Indiana, and Michigan communities, and position F&M for long-term success. In addition, I am pleased to report that F&M was the third largest bank out of 58 financial institutions within the markets we compete, according to the FDIC, reflecting the leading value we provide to our local communities. In fact, F&M is the number one bank, based on deposits, in almost half of the communities in which we operate.”

Income Statement
Net income for the 2024 third quarter ended September 30, 2024, was $6.5 million, compared to $4.8 million for the same period last year. Net income per basic and diluted share for the 2024 third quarter was $0.48, compared to $0.35 for the same period last year. Net income for the 2024 nine months ended September 30, 2024, was $17.6 million, compared to $17.2 million for the same period last year. Net income per basic and diluted share for the 2024 nine months was $1.28, compared to $1.26 for the same period last year.

Mr. Eller continued, “Our 2024 third quarter and year-to-date performance demonstrate the success of the near-term strategies we are pursuing to navigate a complex operating environment and improve earnings. Most importantly, while the demand for loans is high across our markets, our approach to risk and pricing remains conservative. This near-term strategy has contributed to excellent asset quality. In addition, we continue to focus on strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we have added over 5,600 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended the quarter with a loan-to-deposit ratio of 93.6%, compared to 97.2% at September 30, 2023, and 96.0% at June 30, 2024. Our third quarter of 2024 loan-to-deposit ratio was the lowest quarterly value in two years. The final near-term strategy we are pursuing is focused on controlling expenses, and I am encouraged by the continued year-over-year and sequential improvement in our efficiency ratio. This reflects the opportunities we are pursuing to manage operating costs and expand productivity.”

Deposits
At September 30, 2024, total deposits were $2.68 billion, an increase of 4.3% from September 30, 2023. The Company’s cost of interest-bearing liabilities was 3.2% for the quarter ended September 30, 2024, compared to 2.82% for the quarter ended September 30, 2023, and 3.02% for the 2023 fourth quarter ended December 31, 2023.

Loan Portfolio and Asset Quality
“F&M’s teams continue to do an excellent job managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the quarter ended December 31, 2023, our yield on earning assets has increased by 34 basis points, compared to a 19 basis point increase in our cost of interest bearing liabilities – representing the third consecutive quarter our yield on earning assets has outpaced our cost of interest bearing liabilities. We expect this trend will continue as more of our loan portfolio reprices in 2024,” continued Mr. Eller.

Total loans, net at September 30, 2024, increased 0.3%, or by $8.7 million to $2.54 billion, compared to $2.53 billion at September 30, 2023. The year-over-year growth was driven by higher consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower commercial real estate, agricultural real estate, and consumer loans.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $2.9 million, or 0.11% of total loans at September 30, 2024, compared to $22.4 million, or 0.89% of total loans at September 30, 2023, and $22.4 million, or 0.87% at December 31, 2023.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at September 30, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.3% of the Company’s total loan portfolio at September 30, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $880,000.

F&M’s CRE portfolio included the following categories at September 30, 2024:

CRE Category	Dollar Balance		Percent of CRE Portfolio⁽^*)		Percent of Total Loan Portfolio⁽^*)

Industrial	$	274,953	21.1	%	10.8	%
Retail	$	237,622	18.2	%	9.4	%
Multi-family	$	223,926	17.2	%	8.8	%
Hotels	$	141,642	10.9	%	5.6	%
Office	$	134,973	10.4	%	5.3	%
Gas Stations	$	62,028	4.8	%	2.5	%
Food Service	$	46,526	3.6	%	1.8	%
Development	$	30,999	2.4	%	1.2	%
Senior Living	$	29,866	2.3	%	1.2	%
Auto Dealers	$	25,068	1.9	%	1.0	%
Other	$	93,557	7.2	%	3.7	%
Total CRE	$	1,301,160	100.0	%	51.3	%

* Numbers have been rounded

At September 30, 2024, the Company’s allowance for credit losses to nonperforming loans was 879.37%, compared to 112.61% at September 30, 2023, and 111.95% at December 31, 2023. The allowance to total loans was 1.01% at September 30, 2024, compared to 1.00% at September 30, 2023. Including accretable yield adjustments, associated with the Company’s recent acquisitions, F&M’s allowance for credit losses to total loans was 1.10% at September 30, 2024, compared to 1.18% at September 30, 2023.

Mr. Eller concluded, “With two months remaining in 2024, I am encouraged by F&M’s strong financial and operating performance to date. F&M ended the quarter with record stockholders’ equity, historically strong asset quality, record deposits, and excellent liquidity levels with over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%. We remain focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. As a result, F&M’s financial and operating performance continues to strengthen and I believe the Company is well positioned to create lasting value for our communities, customers, team members, and shareholders.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 10.6% to $335.4 million, or $24.48 per share at September 30, 2024, from $303.2 million, or $22.19 per share at September 30, 2023. The Company’s Tier 1 leverage ratio of 8.04%, remained stable compared to September 30, 2023.

Tangible stockholders’ equity increased to $242.8 million at September 30, 2024, compared to $208.8 million at September 30, 2023. On a per share basis, tangible stockholders’ equity at September 30, 2024, was $17.72 per share, compared to $15.28 per share at September 30, 2023.

For the nine months ended September 30, 2024, the Company has declared cash dividends of $0.66125 per share, which is a 5.0% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the nine months ended September 30, 2024, the dividend payout ratio was 50.99% compared to 49.50% for the same period last year.

About Farmers & Merchants State Bank:
Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (Unaudited) (in thousands of dollars, except per share data)

	Three Months Ended														Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023		September 30, 2023			September 30, 2024			September 30, 2023
Interest Income
Loans, including fees	$	36,873		$	36,593		$	35,200		$	34,493	$	33,783		$	108,666		$	94,851
Debt securities:
U.S. Treasury and government agencies		1,467			1,148			1,045			987		1,005			3,660			3,103
Municipalities		387			389			394			397		392			1,170			1,201
Dividends		334			327			333			365		246			994			517
Federal funds sold		7			7			7			8		6			21			36
Other		2,833			2,702			1,675			2,020		927			7,210			1,830
Total interest income		41,901			41,166			38,654			38,270		36,359			121,721			101,538
Interest Expense
Deposits		16,947			16,488			15,279			15,015		13,323			48,714			31,908
Federal funds purchased and securities sold under agreements to repurchase		277			276			284			293		349			837			1,181
Borrowed funds		2,804			2,742			2,689			2,742		2,741			8,235			6,134
Subordinated notes		284			285			284			285		284			853			853
Total interest expense		20,312			19,791			18,536			18,335		16,697			58,639			40,076
Net Interest Income – Before Provision for Credit Losses		21,589			21,375			20,118			19,935		19,662			63,082			61,462
Provision for Credit Losses – Loans		282			605			(289	)		278		460			598			1,420
Provision for Credit Losses – Off Balance Sheet Credit Exposures		(267	)		(18	)		(266	)		189		(76	)		(551	)		(143	)
Net Interest Income After Provision for Credit Losses		21,574			20,788			20,673			19,468		19,278			63,035			60,185
Noninterest Income
Customer service fees		300			189			598			415		248			1,087			917
Other service charges and fees		1,155			1,085			1,057			1,090		1,133			3,297			3,253
Interchange income		1,315			1,330			1,429			1,310		1,266			4,074			4,008
Loan servicing income		710			513			539			666		502			1,762			3,739
Net gain on sale of loans		215			314			107			230		294			636			469
Increase in cash surrender value of bank owned life insurance		265			236			216			216		221			717			618
Net loss on sale of available-for-sale securities		–			–			–			–		–			–			(891	)
Total noninterest income		3,960			3,667			3,946			3,927		3,664			11,573			12,113
Noninterest Expense
Salaries and wages		7,713			7,589			7,846			6,981		6,777			23,148			19,934
Employee benefits		2,112			2,112			2,171			1,218		2,066			6,395			6,302
Net occupancy expense		1,054			999			1,027			1,187		950			3,080			2,646
Furniture and equipment		1,472			1,407			1,353			1,370		1,189			4,232			3,652
Data processing		339			448			500			785		840			1,287			2,362
Franchise taxes		410			265			555			308		434			1,230			1,179
ATM expense		472			397			473			665		640			1,342			1,946
Advertising		597			519			530			397		865			1,646			2,209
Net (gain) loss on sale of other assets owned		–			(49	)		–			86		49			(49	)		49
FDIC assessment		516			507			580			594		586			1,603			1,388
Servicing rights amortization – net		219			187			168			182		106			574			429
Loan expense		244			251			229			246		241			724			809
Consulting fees		251			198			186			192		179			635			640
Professional fees		453			527			445			331		358			1,425			1,099
Intangible asset amortization		445			444			445			446		445			1,334			1,334
Other general and administrative		1,128			1,495			1,333			1,532		1,319			3,956			4,841
Total noninterest expense		17,425			17,296			17,841			16,520		17,044			52,562			50,819
Income Before Income Taxes		8,109			7,159			6,778			6,875		5,898			22,046			21,479
Income Taxes		1,593			1,477			1,419			1,332		1,121			4,489			4,235
Net Income		6,516			5,682			5,359			5,543		4,777			17,557			17,244
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		11,664			2,531			(1,995	)		13,261		(4,514	)		12,200			(2,480	)
Reclassification adjustment for realized loss on sale of available-for-sale securities		–			–			–			–		–			–			891
Net unrealized gain (loss) on available-for-sale securities		11,664			2,531			(1,995	)		13,261		(4,514	)		12,200			(1,589	)
Tax expense (benefit)		2,449			531			(418	)		2,784		(947	)		2,562			(333	)
Other comprehensive income (loss)		9,215			2,000			(1,577	)		10,477		(3,567	)		9,638			(1,256	)
Comprehensive Income	$	15,731		$	7,682		$	3,782		$	16,020	$	1,210		$	27,195		$	15,988
Basic Earnings Per Share	$	0.48		$	0.42		$	0.39		$	0.41	$	0.35		$	1.28		$	1.26
Diluted Earnings Per Share	$	0.48		$	0.42		$	0.39		$	0.41	$	0.35		$	1.28		$	1.26
Dividends Declared	$	0.22125		$	0.22		$	0.22		$	0.22	$	0.21		$	0.66125		$	0.63

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of dollars, except per share data)

		September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
		(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Assets
Cash and due from banks		$	244,572		$	191,785		$	186,541		$	140,917		$	151,711
Federal funds sold			932			1,283			1,241			1,284			1,471
	Total cash and cash equivalents		245,504			193,068			187,782			142,201			153,182

Interest-bearing time deposits			2,727			3,221			2,735			2,740			2,989
Securities – available-for-sale			404,881			365,209			347,516			358,478			348,255
Other securities, at cost			15,028			14,721			14,744			17,138			16,995
Loans held for sale			1,706			1,628			2,410			1,576			1,039
Loans, net of allowance for credit losses of $25,484 9/30/24 and $25,024 12/31/23			2,512,852			2,534,468			2,516,687			2,556,167			2,504,329
Premises and equipment			33,779			34,507			35,007			35,790			31,723
Construction in progress			35			38			9			8			3,044
Goodwill			86,358			86,358			86,358			86,358			86,358
Loan servicing rights			5,644			5,504			5,555			5,648			5,687
Bank owned life insurance			34,624			34,359			34,123			33,907			33,691
Other assets			46,047			49,552			54,628			43,218			47,388

Total Assets		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229		$	3,234,680

	Liabilities and Stockholders’ Equity
Liabilities
Deposits
	Noninterest-bearing	$	481,444		$	479,069		$	510,731		$	528,465		$	505,358
	Interest-bearing
	NOW accounts		865,617			821,145			829,236			816,790			778,133
	Savings		661,565			673,284			635,430			599,191			591,344
	Time		676,187			667,592			645,985			663,017			700,445
	Total deposits		2,684,813			2,641,090			2,621,382			2,607,463			2,575,280

Federal funds purchased and securities sold under agreements to repurchase			27,292			27,218			28,218			28,218			30,527
Federal Home Loan Bank (FHLB) advances			263,081			266,102			256,628			265,750			266,286
Subordinated notes, net of unamortized issuance costs			34,789			34,759			34,731			34,702			34,673
Dividend payable			2,998			2,975			2,975			2,974			2,838
Accrued expenses and other liabilities			40,832			27,825			25,930			27,579			21,892
	Total liabilities		3,053,805			2,999,969			2,969,864			2,966,686			2,931,496

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value 20,000,000 shares authorized; issued
14,564,425 shares 9/30/24 and 12/31/23; outstanding 13,702,593			135,193			135,829			135,482			135,515			135,171
shares 9/30/24 and 13,664,641 shares 12/31/23
Treasury stock – 861,832 shares 9/30/24 and 899,784 shares 12/31/23			(10,904	)		(11,006	)		(10,851	)		(11,040	)		(11,008	)
Retained earnings			230,465			226,430			223,648			221,080			218,510
Accumulated other comprehensive loss			(19,374	)		(28,589	)		(30,589	)		(29,012	)		(39,489	)
	Total stockholders’ equity		335,380			322,664			317,690			316,543			303,184

Total Liabilities and Stockholders’ Equity		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229		$	3,234,680

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES SELECT FINANCIAL DATA

	For the Three Months Ended															For the Nine Months Ended
Selected financial data	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Return on average assets		0.78	%		0.69	%		0.66	%		0.67	%		0.59	%		0.71	%		0.73	%
Return on average equity		7.93	%		7.13	%		6.76	%		7.27	%		6.26	%		7.28	%		7.52	%
Yield on earning assets		5.27	%		5.22	%		5.00	%		4.93	%		4.79	%		5.17	%		4.57	%
Cost of interest bearing liabilities		3.21	%		3.18	%		3.06	%		3.02	%		2.82	%		3.16	%		2.35	%
Net interest spread		2.06	%		2.04	%		1.94	%		1.91	%		1.97	%		2.01	%		2.22	%
Net interest margin		2.71	%		2.71	%		2.60	%		2.57	%		2.59	%		2.68	%		2.77	%
Efficiency		67.98	%		69.03	%		74.08	%		69.23	%		73.07	%		70.36	%		68.24	%
Dividend payout ratio		45.99	%		52.35	%		55.52	%		54.23	%		60.07	%		50.99	%		49.50	%
Tangible book value per share	$	17.72		$	16.79		$	16.39		$	16.29		$	15.28
Tier 1 leverage ratio		8.04	%		8.02	%		8.40	%		8.20	%		8.02	%
Average shares outstanding		13,687,119			13,681,501			13,671,166			13,665,773			13,650,823			13,679,955			13,633,101

Loans	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
(Dollar amounts in thousands)
Commercial real estate	$	1,301,160		$	1,303,598		$	1,304,400		$	1,337,766		$	1,304,118
Agricultural real estate		220,328			222,558			227,455			223,791			225,672
Consumer real estate		524,055			525,902			525,178			521,895			512,973
Commercial and industrial		260,732			268,426			256,051			254,935			250,891
Agricultural		137,252			142,909			127,670			132,560			123,735
Consumer		67,394			70,918			74,819			79,591			83,024
Other		25,916			26,449			26,776			30,136			31,083
Less: Net deferred loan fees, costs and other ⁽¹⁾		1,499			(1,022	)		(982	)		517			(1,890	)
Total loans, net	$	2,538,336		$	2,559,738		$	2,541,367		$	2,581,191		$	2,529,606


Asset quality data	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
(Dollar amounts in thousands)
Nonaccrual loans	$	2,898		$	2,487		$	19,391		$	22,353		$	22,447
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	2,898		$	2,487		$	19,391		$	22,353		$	22,447
Other real estate owned	$	–		$	–		$	–		$	–		$	–
Nonperforming assets	$	2,898		$	2,487		$	19,391		$	22,353		$	22,447


Allowance for credit losses	$	25,484		$	25,270		$	24,680		$	25,024		$	25,277
Allowance for unfunded		1,661			1,928			1,946			2,212			2,023
Total Allowance for Credit Losses	$	27,145		$	27,198		$	26,626		$	27,236		$	27,300
Allowance for credit losses/total loans		1.01	%		0.99	%		0.97	%		0.97	%		1.00	%
Adjusted credit losses with accretable yield/total loans		1.10	%		1.10	%		1.11	%		1.13	%		1.18	%
Net charge-offs:
Quarter-to-date	$	68		$	15		$	55		$	531		$	93
Year-to-date	$	138		$	70		$	55		$	551		$	20
Net charge-offs to average loans
Quarter-to-date		0.00	%		0.00	%		0.00	%		0.02	%		0.00	%
Year-to-date		0.01	%		0.00	%		0.00	%		0.02	%		0.00	%
Nonperforming loans/total loans		0.11	%		0.10	%		0.76	%		0.87	%		0.89	%
Allowance for credit losses/nonperforming loans		879.37	%		1016.08	%		127.28	%		111.95	%		112.61	%
NPA coverage ratio		879.37	%		1016.08	%		127.28	%		111.95	%		112.61	%

⁽¹⁾ Includes carrying value adjustments of $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (in thousands of dollars, except percentages)

	For the Three Months Ended						For the Three Months Ended
	September 30, 2024						September 30, 2023
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,551,899	$	36,873	5.78	%	$	2,536,885	$	33,783	5.33	%
Taxable investment securities		415,943		2,107	2.03	%		393,910		1,559	1.58	%
Tax-exempt investment securities		19,661		81	2.09	%		23,986		84	1.77	%
Fed funds sold & other		197,258		2,840	5.76	%		85,515		933	4.36	%
Total Interest Earning Assets		3,184,761	$	41,901	5.27	%		3,040,296	$	36,359	4.79	%

Nonearning Assets		168,055						180,193

Total Assets	$	3,352,816					$	3,220,489

Interest Bearing Liabilities:
Savings deposits	$	1,538,387	$	10,691	2.78	%	$	1,367,168	$	7,673	2.24	%
Other time deposits		667,224		6,256	3.75	%		667,880		5,650	3.38	%
Other borrowed money		264,539		2,804	4.24	%		266,467		2,741	4.11	%
Fed funds purchased & securities sold under agreement to repurchase		27,481		277	4.03	%		34,128		349	4.09	%
Subordinated notes		34,769		284	3.27	%		34,654		284	3.28	%
Total Interest Bearing Liabilities	$	2,532,400	$	20,312	3.21	%	$	2,370,297	$	16,697	2.82	%

Noninterest Bearing Liabilities		491,851						544,801

Stockholders’ Equity	$	328,565					$	305,391

Net Interest Income and Interest Rate Spread			$	21,589	2.06	%			$	19,662	1.97	%

Net Interest Margin					2.71	%					2.59	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts


	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2024						September 30, 2023
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,561,774	$	108,666	5.66	%	$	2,470,770	$	94,851	5.12	%
Taxable investment securities		397,466		5,575	1.87	%		396,917		4,544	1.53	%
Tax-exempt investment securities		20,684		249	2.03	%		24,865		277	1.88	%
Fed funds sold & other		165,227		7,231	5.84	%		67,869		1,866	3.67	%
Total Interest Earning Assets		3,145,151	$	121,721	5.17	%		2,960,421	$	101,538	4.57	%

Nonearning Assets		161,113						176,568

Total Assets	$	3,306,264					$	3,136,989

Interest Bearing Liabilities:
Savings deposits	$	1,487,809	$	30,291	2.71	%	$	1,373,110	$	18,854	1.83	%
Other time deposits		662,129		18,423	3.71	%		620,071		13,054	2.81	%
Other borrowed money		264,310		8,235	4.15	%		204,927		6,134	3.99	%
Fed funds purchased & securities sold under agreement to repurchase		27,887		837	4.00	%		37,649		1,181	4.18	%
Subordinated notes		34,741		853	3.27	%		34,625		853	3.28	%
Total Interest Bearing Liabilities	$	2,476,876	$	58,639	3.16	%	$	2,270,382	$	40,076	2.35	%

Noninterest Bearing Liabilities		507,843						561,001

Stockholders’ Equity	$	321,545					$	305,606

Net Interest Income and Interest Rate Spread			$	63,082	2.01	%			$	61,462	2.22	%

Net Interest Margin					2.68	%					2.77	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (in thousands of dollars, except percentages)

	For the Three Months Ended September 30, 2024													For the Three Months Ended September 30, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	36,873	5.78	%	$	36,149	5.67	%	$	724		0.11	%	$	33,783	5.33	%	$	32,631	5.15	%	$	1,152		0.18	%
Taxable investment securities		2,107	2.03	%		2,107	2.03	%		–		0.00	%		1,559	1.58	%		1,559	1.58	%		–		0.00	%
Tax-exempt investment securities		81	2.09	%		81	2.09	%		–		0.00	%		84	1.77	%		84	1.77	%		–		0.00	%
Fed funds sold & other		2,840	5.76	%		2,840	5.76	%		–		0.00	%		933	4.36	%		933	4.36	%		–		0.00	%
Total Interest Earning Assets		41,901	5.27	%		41,177	5.17	%		724		0.10	%		36,359	4.79	%		35,207	4.64	%		1,152		0.15	%

Interest Bearing Liabilities:
Savings deposits	$	10,691	2.78	%	$	10,691	2.78	%	$	–		0.00	%	$	7,673	2.24	%	$	7,673	2.24	%	$	–		0.00	%
Other time deposits		6,256	3.75	%		6,256	3.75	%		–		0.00	%		5,650	3.38	%		5,500	3.29	%		150		0.09	%
Other borrowed money		2,804	4.24	%		2,800	4.23	%		4		0.01	%		2,741	4.11	%		2,759	4.14	%		(18	)	-0.03	%
Federal funds purchased and securities sold under agreement to repurchase		277	4.03	%		277	4.03	%		–		0.00	%		349	4.09	%		349	4.09	%		–		0.00	%
Subordinated notes		284	3.27	%		284	3.27	%		–		0.00	%		284	3.28	%		284	3.28	%		–		0.00	%
Total Interest Bearing Liabilities		20,312	3.21	%		20,308	3.21	%		4		0.00	%		16,697	2.82	%		16,565	2.80	%		132		0.02	%

Interest/Dividend income/yield		41,901	5.27	%		41,177	5.17	%		724		0.10	%		36,359	4.79	%		35,207	4.64	%		1,152		0.15	%
Interest Expense / yield		20,312	3.21	%		20,308	3.21	%		4		0.00	%		16,697	2.82	%		16,565	2.80	%		132		0.02	%
Net Interest Spread		21,589	2.06	%		20,869	1.96	%		720		0.10	%		19,662	1.97	%		18,642	1.84	%		1,020		0.13	%
Net Interest Margin			2.71	%			2.62	%				0.09	%			2.59	%			2.46	%				0.13	%


	For the Nine Months Ended September 30, 2024													For the Nine Months Ended September 30, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	108,666	5.66	%	$	106,588	5.55	%	$	2,078		0.11	%	$	94,851	5.12	%	$	92,364	4.99	%	$	2,487		0.13	%
Taxable investment securities		5,575	1.87	%		5,575	1.87	%		–		0.00	%		4,544	1.53	%		4,544	1.53	%		–		0.00	%
Tax-exempt investment securities		249	2.03	%		249	2.03	%		–		0.00	%		277	1.88	%		277	1.88	%		–		0.00	%
Fed funds sold & other		7,231	5.84	%		7,231	5.84	%		–		0.00	%		1,866	3.67	%		1,866	3.67	%		–		0.00	%
Total Interest Earning Assets		121,721	5.17	%		119,643	5.08	%		2,078		0.09	%		101,538	4.57	%		99,051	4.47	%		2,487		0.10	%

Interest Bearing Liabilities:
Savings deposits	$	30,291	2.71	%	$	30,291	2.71	%	$	–		0.00	%	$	18,854	1.83	%	$	18,854	1.83	%	$	–		0.00	%
Other time deposits		18,423	3.71	%		18,423	3.71	%		–		0.00	%		13,054	2.81	%		13,458	2.89	%		(404	)	-0.08	%
Other borrowed money		8,235	4.15	%		8,254	4.16	%		(19	)	-0.01	%		6,134	3.99	%		6,187	4.03	%		(53	)	-0.04	%
Federal funds purchased and securities sold under agreement to repurchase		837	4.00	%		837	4.00	%		–		0.00	%		1,181	4.18	%		1,181	4.18	%		–		0.00	%
Subordinated notes		853	3.27	%		853	3.27	%		–		0.00	%		853	3.28	%		853	3.28	%		–		0.00	%
Total Interest Bearing Liabilities		58,639	3.16	%		58,658	3.16	%		(19	)	0.00	%		40,076	2.35	%		40,533	2.38	%		(457	)	-0.03	%

Interest/Dividend income/yield		121,721	5.17	%		119,643	5.08	%		2,078		0.09	%		101,538	4.57	%		99,051	4.47	%		2,487		0.10	%
Interest Expense / yield		58,639	3.16	%		58,658	3.16	%		(19	)	0.00	%		40,076	2.35	%		40,533	2.38	%		(457	)	-0.03	%
Net Interest Spread		63,082	2.01	%		60,985	1.92	%		2,097		0.09	%		61,462	2.22	%		58,518	2.09	%		2,944		0.13	%
Net Interest Margin			2.68	%			2.59	%				0.09	%			2.77	%			2.64	%				0.13	%

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

January 25, 2025

MIL-OSI USA: October 29th, 2024 N.M. Delegation Welcomes Over $4 Million From the Infrastructure Law to Enhance Safety, Reduce Delays at Railway Crossings, and Grow Local Economies in Clovis and San Juan County

US Senate News:

Source: United States Senator for New Mexico Martin Heinrich

ALBUQUERQUE, N.M. – U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.), and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) welcomed a combined $4,570,920 for two projects in New Mexico from the U.S. Department of Transportation to strengthen the nation’s supply chain, reduce costs, and grow New Mexico’s economy.

$4,000,000 will help San Juan County and the Navajo Nation complete the planning for a proposed freight rail line connecting Farmington and Gallup.

$570,920 will help the City of Clovis enhance safety and reduce traffic delays at two railway crossings.

“Thanks to our Infrastructure Law, we’re delivering the funds needed to kick-start planning for a freight rail line from Farmington to Gallup and improve railway crossings in Clovis. Combined, these investments will strengthen our nation’s supply chain, grow local economies, lower transportation costs, create high-quality jobs New Mexicans can build their families around, and improve safety for our communities,” said Heinrich. “I’m pleased to welcome these federal investments, and I remain committed to securing more investments to connect rural communities to the abundant opportunities ahead.”

“Across our state, New Mexicans rely daily on our railways for travel and to keep our economy running,” said Luján. “Thanks to the Bipartisan Infrastructure Law, this $4.5+ million in federal funding will deliver much-needed railway safety enhancements in Clovis and help construct a new rail line within the Navajo Nation to expand regional rail service in Northwestern New Mexico. I’m proud to welcome these two grants that will both boost railway service and drive economic development for Clovis, the Navajo Nation, and their surrounding communities. I will continue to fight to bring federal dollars home to New Mexico to improve the safety, efficiency, and reliability of passenger and freight rail.”

“Every time I go to the Four Corners, local leaders emphasize the importance of connecting the region with rail. The Four Corners area is a major economic center of our state, and the funding we’re announcing today is the beginning of our work to make sure our rail infrastructure is ready to meet that potential across San Juan and McKinley Counties,” said Leger Fernández. “I am happy that this funding also includes improvements to safety and efficiency of freight in Clovis. With the support of the CRISI program, we can begin the critical work needed to build stronger connections and drive growth in rural New Mexico.”

“I am thrilled about the recent allocation of two significant federal grants from the Federal Railroad Administration’s CRISI program, which will greatly enhance rail safety and connectivity in New Mexico,” said Stansbury. “These two grants reflect our commitment to investing in infrastructure prioritizing safety and economic growth. I am grateful for the support from the Federal Railroad Administration and look forward to seeing these projects come to fruition as we work together to build a safer New Mexico!”

“Federal investments like this bring vital safety and economic benefits to communities across New Mexico. With this funding, we’re improving railway safety, cutting down delays, and connecting New Mexicans to opportunities that drive economic growth and quality jobs,” said Vasquez. “Thanks to the Bipartisan Infrastructure Law, we are building a stronger, safer transportation network. I’m proud to welcome this funding to bring more jobs and opportunities to our rural communities.”

“The award of grant funding takes a prospective freight rail line study further than any study in the past and is further proof of the importance of collaboration between tribal, local, state, and federal partners to open doors to economic opportunities. We are appreciative of assistance from New Mexico’s federal delegation and excited for future economic growth opportunities in San Juan County and the Four Corners region,” said John T. Beckstead, San Juan County Commission Chairman.

“The Federal CRISI Grant brings San Juan County and the City of Farmington one step closer to having competitive transportation and economic development. This is an important step in growing our regional economy,” said Tim Gibbs, Four Corner Economic Development CEO.

The grants are awarded through the U.S. Department of Transportation Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, which provides funding for projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail. The CRISI Program received significant, additional investments from the Infrastructure Law – legislation passed by Democrats in the N.M. Congressional Delegation.

The N.M. Delegation sent a letter of support to the U.S. Department of Transportation supporting the grant for San Juan County that is being announced today. This grant will prepare the Four Corners Rail Project for final design proposals and planning.

In May 2020, Heinrich and Luján wrote a letter of support for San Juan County’s application for a Better Utilizing Investments to Leverage Development (BUILD) Grant, which applicants of the CRISI Program are required to be approved for.

Members of the N.M. Delegation sent a letter of support to the U.S. Department of Transportation urging the support of the grant for the City of Clovis that is being announced today. This grant will enhance safety and reduce traffic delays at two railway crossings including modifications to the Norris Street railroad crossing and construction of a new grade-separated crossing at MLK Jr. Boulevard.

Below is a breakdown of the U.S. Department of Transportation Federal Railroad Administration funding:

Project Name	Recipient	Award Amount	Project Description
Clovis, N.M. Corridor Improvement Project	City of Clovis	$ 570,920	The proposed project was selected for Project Development and includes activities for one grade crossing separation and improvements to a second at-grade crossing along the BNSF Railway line in Clovis, New Mexico. The project aligns with the selection criteria by enhancing safety and improving system and service performance as the project will reduce blocked crossings. The City of Clovis and BNSF Railway will contribute the 53 percent non-Federal match. This project qualifies for the statutory set-aside for projects in Rural Areas.
Four Corners Freight Rail Project	San Juan County	$ 4,000,000	The proposed project was selected for Project Development and includes activities to develop a new rail line to connect the Farmington, New Mexico Area to the BNSF Railway corridor near Gallup across San Juan County and McKinley County, New Mexico. The proposed project is a partnership between San Juan County, the Navajo Nation, and the New Mexico Department of Transportation, and most of the project is located within the Navajo Nation. The project aligns with the selection criteria by enhancing resilience and improving system and service performance as the project will provide a viable freight transportation modal alternative to highway trucking, opportunities to simplify the supply chain, and enable new, rail-dependent economic development opportunities thereby imparting benefits to the Navajo Nation and surrounding communities. San Juan County will contribute the 20 percent non-Federal match. This project qualifies for the statutory set-aside for projects in Rural Areas.

For more information from San Juan County on the proposed Four Corners Rail Project, please click here.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: October 29th, 2024 Heinrich, Leger Fernández Highlight Over $22 Million to Build a New Terminal at Clovis Regional Airport, Participate in Terminal Groundbreaking Ceremony
US Senate News:
Source: United States Senator for New Mexico Martin Heinrich

PHOTOS/VIDEOS

CLOVIS, N.M. — Today, U.S. Senator Martin Heinrich (D-N.M.), a member of the Senate Appropriations Committee, and U.S. Representative Teresa Leger Fernández (D-N.M.) participated in a groundbreaking ceremony to begin construction on a new 21,000 square foot terminal at Clovis Regional Airport (CVN). The new terminal at Clovis Regional Airport is fully funded by a $15.7 million grant and a $3.5 million grant from the Infrastructure Law — legislation passed by Democrats in the N.M. Congressional Delegation — and a Heinrich-led $3.5 million Congressionally Directed Spending award that is advancing in the Fiscal Year 2025 Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill that passed out of the Senate Appropriations Committee in July.

These three investments, totaling $22,700,000, are making it possible for Clovis to complete the new terminal.

The terminal at Clovis Regional Airport will better connect the community, improve travelers’ experiences, create high-quality jobs, and grow local economies across New Mexico.

U.S. Senator Martin Heinrich (D-N.M.) speaks at a groundbreaking ceremony to begin construction on a new terminal at Clovis Regional Airport (CVN), October 29, 2024.

“When we invest in New Mexico’s airports, we invest in the people who rely on these facilities to do business in our state, create jobs, and contribute to our economy,” said Heinrich. “I am proud to have secured funding from the Infrastructure Law to fully construct Clovis Regional Airport’s new terminal and I will keep fighting to secure more investments to improve airports all across New Mexico — improving travelers’ experiences, creating high quality jobs New Mexicans can build their families around, and driving our state’s economic growth for the future.”

“Thanks to our work on the Bipartisan Infrastructure Law, this $22 million investment will create good jobs, connect families across the region, and drive economic vitality for communities across eastern New Mexico,” said Leger Fernández. “Today’s groundbreaking at the Clovis Regional Airport gets us closer to connecting eastern New Mexico to new economic opportunities and supporting the region’s growth. This new terminal isn’t just about creating a strong foundation for the future of Clovis — it’s about creating a strong foundation for the future of eastern New Mexico. I also want to thank Senator Heinrich for his leadership as he champions rural projects like this one in the Senate Appropriations Committee.”

U.S. Senator Martin Heinrich (D-N.M.) and U.S. Representative Teresa Leger Fernández (D-N.M.) participate in a groundbreaking ceremony to begin construction on a new terminal at Clovis Regional Airport (CVN), October 29, 2024.

The Infrastructure Law is delivering billions of dollars in historic infrastructure investments to New Mexico.

The Infrastructure Law is set to invest $4.3 billion in formula funding alone for at least 337 vital projects in New Mexico. Some of the projects and priorities that have already received federal funding from the Infrastructure Law include:
- $1.8 billion for New Mexico’s roads and bridges.
- $379 million over five years, based on formula funding, for New Mexico’s public transit. To date, New Mexico has been allocated $147.2 million to improve public transportation options across the state in Fiscal Year 2022.
- $710 million for clean drinking water in New Mexico.
- $362.3 million for infrastructure resilience, including $23.4 million through the Army Corps of Engineers for flood mitigation in New Mexico.
- $160 million, the first installment of funding from the Infrastructure Law, to support the completion of the Eastern New Mexico Rural Water System pipeline in Eastern New Mexico.
- $3 billion across Indian Country to help Tribes deploy broadband infrastructure.
- $52.4 million for capping orphaned oil and gas wells and reclaiming abandoned mine lands and $20.7 million has been allocated to cleaning up Superfund and Brownfield sites across New Mexico.
- $38 million over five years, based on formula funding, to support the expansion of an EV charging network in the state.
- $74.9 million for clean energy, energy efficiency, and power in New Mexico.
- $50 million for airports across New Mexico.
- $33 million for clean and low emission buses in New Mexico.
The Infrastructure Law is also helping 173,000 New Mexico households save on broadband. For eligibility on internet programs, visit GetInternet.gov.

For more information, click here to see a map of funding and announced projects in New Mexico through the Infrastructure Law.

Find a fact sheet of the investments New Mexico has received through the Infrastructure Law here.
MIL OSI USA News –
January 25, 2025

MIL-OSI: Capgemini Q3 2024 revenues

Source: GlobeNewswire (MIL-OSI)

Media relations:
Victoire Grux
Tel.: +33 6 04 52 16 55
victoire.grux@capgemini.com

Investor relations:
Vincent Biraud
Tel.: +33 1 47 54 50 87
vincent.biraud@capgemini.com

Capgemini Q3 2024 revenues

Q3 2024 revenues of €5,377 million, down -1.6% at constant exchange rates^*
9M 2024 revenues of €16,515 million, down -2.3% at constant exchange rates
FY 2024 constant currency revenue growth target revised to -2.0% to -2.4% and operating margin target narrowed to 13.3% to 13.4%
FY 2024 organic free cash-flow target confirmed at around €1.9 billion

Paris, October 30, 2024 – The Capgemini Group reported consolidated revenues of €5,377 million in Q3 2024, down -1.9% year-on-year on a reported basis, and down -1.6% at constant exchange rates^*.

Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said: “Our growth improved marginally in Q3 compared to Q2, despite stronger headwinds than anticipated in some sectors, primarily in Manufacturing. However, we continue to see recovery in Financial Services and gradually lesser headwinds from Telco and Tech.

In a market that remains soft overall, we expect to deliver a similar growth in Q4 while demonstrating the resilience of our operating margin and organic free cash-flow. Client demand continues to be driven by operational efficiencies and cost reduction and we seize their growing appetite for AI and Gen AI services.

Our positioning as a business and technology transformation partner, the relevance of our offerings and the quality of our talent are driving our solid book-to-bill ratio and growing pipeline of strategic deals. We are also launching a set of targeted actions to simplify our operations to make the Group more agile with a stronger emphasis on growth.

Based on Q4 perspectives, we now expect a full-year constant currency growth rate of -2.0% to -2.4% and narrow the operating margin target to 13.3% to 13.4%, while the organic free cash-flow target of around €1.9 billion is confirmed.”

	(in millions of euros)		Change
Revenues	2023	2024	At current exchange rates	At constant exchange rates^*
Q3	5,480	5,377	-1.9%	-1.6%
9 months	16,906	16,515	-2.3%	-2.3%

After bottoming out in Q1 2024, Capgemini activity trends improved again in Q3, but only marginally. The Group generated revenues of €5,377 million in Q3 2024, down -1.9% year-on-year on a reported basis and -1.6% at constant exchange rates^*. On an organic basis (i.e., restated for changes in Group scope and exchange rates), revenues contracted by -2.1%. For the first nine months of the year, growth stands at -2.3%, both on a reported basis and at constant exchange rates.

Clients remained focused on driving efficiencies through large digital transformation programs, at the expense of discretionary deals. This is fueling strong demand for Capgemini’s Cloud and Data & AI/Gen AI services, as well as for digital core modernization and intelligent supply chain services that are key focus themes in the current environment.

Bookings totaled €5,222 million in Q3 2024, down -0.8% at constant exchange rates, leading to a book-to-bill ratio of 0.97 for the period. Generative AI bookings amounted to around €600 million over the last 9 months which represent around 3.5% of Group bookings.

OPERATIONS BY REGION

In the Group’s largest regions, Q3 growth rates remained similar to Q2. Overall, this reflects the continued recovery in Financial Services across all regions combined with, as anticipated, a slowdown in the Manufacturing sector.

At constant exchange rates, revenues in the North America region (28% of Group revenues in Q3 2024) decreased by -3.9% year-on-year. Financial Services further improved, yet still posting a year-on-year decline in Q3. Overall, the revenue contraction was driven by the Consumer Goods & Retail, Energy & Utilities, and Public sectors.

Revenues in the United Kingdom and Ireland region (13% of Group revenues) returned to positive growth at +0.4%. The continued dynamism of the Energy & Utilities sector and a resilient Manufacturing sector outweighed the contraction in the Consumer Goods & Retail sector.

Revenues in France (19% of Group revenues) decreased by -2.5%. Growth in the Public sector, along with positive momentum in TMT (Telecoms, Media & Technology), were more than offset by the slowdown of the Manufacturing sector.

Revenues in the Rest of Europe region (31% of Group revenues) increased by +0.6%. Solid growth in Financial Services, as well as continued dynamism in Energy & Utilities and Public sector, made up for the contraction in the Manufacturing and TMT sectors.

Lastly, revenues in the Asia-Pacific and Latin America region (9% of Group revenues) were down -2.2%. In the Asia-Pacific region, strong momentum in the Public sector and improving Financial Services were more than offset by visible weakness in the Consumer Goods & Retail and Manufacturing sectors. Growth acceleration in Latin America was mostly driven by the Consumer Goods & Retail sector.

OPERATIONS BY BUSINESS

In Q3 2024, at constant exchange rates, the growth in Strategy & Transformation services (9% of the Group’s total revenues^* in Q3 2024) further strengthened to +6.5% year-on-year. This reflects continued client demand for strategic consulting on their transition towards a more digital and sustainable model as well as their unwavering interest in the broad AI and Gen AI opportunities.

In Applications & Technology services (63% of the Group’s total revenues and Capgemini’s core business), growth rates improved by 170 basis points compared to Q2, to -1.2% year-on-year in Q3.

Lastly, Operations & Engineering total revenues (28% of the Group’s total revenues) decreased by -3.4% primarily driven by the contraction in Infrastructure Services and, to a lesser extent, Engineering services.

HEADCOUNT

The Group’s total headcount stands at 338,900 as at September 30, 2024, down -1.1% year-on-year and up +0.6% since the end of June. The offshore workforce stands at 194,400 employees or 57% of the total headcount.

OUTLOOK

The Group’s financial targets for 2024 are updated as follows:

Revenue growth of -2.0% to -2.4% at constant currency (was -0.5% to -1.5%);
Operating margin of 13.3% to 13.4% (was 13.3% to 13.6%);
Organic free cash-flow of around €1.9 billion (unchanged).

The inorganic contribution to growth should be 40 basis points.

CONFERENCE CALL

Aiman Ezzat, Chief Executive Officer, accompanied by Nive Bhagat, Chief Financial Officer, and Olivier Sevillia, Chief Operating Officer, will present this press release during a conference call in English to be held today at 8.00 a.m. Paris time (CET). You can follow this conference call live via webcast at the following link. A replay will also be available for a period of one year.

All documents relating to this publication will be posted on the Capgemini investor website at https://investors.capgemini.com/en/.

PROVISIONAL CALENDAR

February 18, 2025        FY 2024 results
April 29, 2025        Q1 2025 revenues
May 7, 2025        Shareholders’ Meeting
July 30, 2025        H1 2025 results

DISCLAIMER

This press release may contain forward-looking statements. Such statements may include projections, estimates, assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding future performance or events. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would”, “should” or the negatives of these terms and similar expressions. Although Capgemini’s management currently believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking statements are subject to various risks and uncertainties (including, without limitation, risks identified in Capgemini’s Universal Registration Document available on Capgemini’s website), because they relate to future events and depend on future circumstances that may or may not occur and may be different from those anticipated, many of which are difficult to predict and generally beyond the control of Capgemini. Actual results and developments may differ materially from those expressed in, implied by or projected by forward-looking statements. Forward-looking statements are not intended to and do not give any assurances or comfort as to future events or results. Other than as required by applicable law, Capgemini does not undertake any obligation to update or revise any forward-looking statement.

This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction.

ABOUT CAPGEMINI

Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.

Get the Future You Want | www.capgemini.com

* *

APPENDIX3F¹

BUSINESS CLASSIFICATION

Strategy & Transformation includes all strategy, innovation and transformation consulting services.
Applications & Technology brings together “Application Services” and related activities and notably local technology services.
Operations & Engineering encompasses all other Group businesses. These comprise Business Services (including Business Process Outsourcing and transaction services), all Infrastructure and Cloud services, and R&D and Engineering services.

DEFINITIONS

Organic growth or like-for-like growth in revenues is the growth rate calculated at constant Group scope and exchange rates. The Group scope and exchange rates used are those for the reported period. Exchange rates for the reported period are also used to calculate growth at constant exchange rates.

Reconciliation of growth rates	Q1 2024	Q2 2024	Q3 2024	9M 2024
Organic growth	-3.6%	-2.3%	-2.1%	-2.7%
Changes in Group scope	+0.3 pts	+0.4 pts	+0.5 pts	+0.4 pts
Growth at constant exchange rates	-3.3%	-1.9%	-1.6%	-2.3%
Exchange rate fluctuations	-0.2 pts	+0.4 pts	-0.3 pts	-0.0 pts
Reported growth	-3.5%	-1.5%	-1.9%	-2.3%

When determining activity trends by business and in accordance with internal operating performance measures, growth at constant exchange rates is calculated based on total revenues, i.e., before elimination of inter-business billing. The Group considers this to be more representative of activity levels by business. As its businesses change, an increasing number of contracts require a range of business expertise for delivery, leading to a rise in inter-business flows.

Operating margin is one of the Group’s key performance indicators. It is defined as the difference between revenues and operating costs. It is calculated before “Other operating income and expense” which include amortization of intangible assets recognized in business combinations, expenses relative to share-based compensation (including social security contributions and employer contributions) and employee share ownership plan, and non-recurring revenues and expenses, notably impairment of goodwill, negative goodwill, capital gains or losses on disposals of consolidated companies or businesses, restructuring costs incurred under a detailed formal plan approved by the Group’s management, the cost of acquiring and integrating companies acquired by the Group, including earn-outs comprising conditions of presence, and the effects of curtailments, settlements and transfers of defined benefit pension plans.

Normalized net profit is equal to profit for the year (Group share) adjusted for the impact of items recognized in “Other operating income and expense”, net of tax calculated using the effective tax rate. Normalized earnings per share is computed like basic earnings per share, i.e., excluding dilution.

Organic free cash flow is equal to cash flow from operations less acquisitions of property, plant, equipment and intangible assets (net of disposals) and repayments of lease liabilities, adjusted for cash out relating to the net interest cost.

Net debt (or net cash) comprises (i) cash and cash equivalents, as presented in the Consolidated Statement of Cash Flows (consisting of short-term investments and cash at bank) less bank overdrafts, and also including (ii) cash management assets (assets presented separately in the Consolidated Statement of Financial Position due to their characteristics), less (iii) short- and long-term borrowings. Account is also taken of (iv) the impact of hedging instruments when these relate to borrowings, intercompany loans, and own shares.

REVENUES BY REGION

	Revenues (in millions of euros)		Year-on-year growth
	Q3 2023	Q3 2024	Reported	At constant exchange rates
North America	1,608	1,530	-4.9%	-3.9%
United Kingdom and Ireland	676	690	+2.1%	+0.4%
France	1,045	1,019	-2.5%	-2.5%
Rest of Europe	1,633	1,646	+0.8%	+0.6%
Asia-Pacific and Latin America	518	492	-5.0%	-2.2%
TOTAL	5,480	5,377	-1.9%	-1.6%

	Revenues (in millions of euros)		Year-on-year growth
	9 months 2023	9 months 2024	Reported	At constant exchange rates
North America	4,896	4,638	-5.3%	-4.9%
United Kingdom and Ireland	2,062	2,070	+0.4%	-1.8%
France	3,353	3,264	-2.6%	-2.6%
Rest of Europe	5,105	5,116	+0.2%	+0.1%
Asia-Pacific and Latin America	1,490	1,427	-4.2%	-1.9%
TOTAL	16,906	16,515	-2.3%	-2.3%

REVENUES BY BUSINESS

	Total revenues* (% of Group revenues)	Year-on-year growth at constant exchange rates in total revenues of the business
	Q3 2024
Strategy & Transformation	9%	+6.5%
Applications & Technology	63%	-1.2%
Operations & Engineering	28%	-3.4%

	Total revenues* (% of Group revenues)	Year-on-year growth at constant exchange rates in total revenues of the business
	9 months 2024
Strategy & Transformation	9%	+3.9%
Applications & Technology	62%	-2.7%
Operations & Engineering	29%	-2.3%

¹ Note that in the appendix, certain totals may not equal the sum of amounts due to rounding adjustments.

Attachments

The MIL Network –

January 25, 2025

MIL-OSI: Melexis Q3 2024 results – Third quarter sales of 247.9 million EUR
Source: GlobeNewswire (MIL-OSI)

^{Regulated information}

Intermediate declaration by the Board of Directors

Ieper, Belgium – October 30th, 2024, 07.00 hrs CET

Dear,

Please find herewith the link to our most recent press release:

www.melexis.com/en/news/2024/financial/melexis-q3-2024-results

Attachment
- PR_ENG_Melexis_Q3 2024
The MIL Network –
January 25, 2025

MIL-OSI: Amundi: Third quarter and nine-month 2024 results

Source: GlobeNewswire (MIL-OSI)

Amundi: Third quarter and nine-month 2024 results

Net income¹^,²up +16% Q3/Q3 and record assets under management at €2.2 trillion

Strong growth in earnings and revenues		Q3 – adjusted net income¹^,² at €337m, fast-growing: +16.1% Q3/Q3 Thanks to revenue growth (+10.5%) and positive jaws effect Q3/Q3 cost/income ratio improvement at 52.9%³ 9 months – adjusted net income¹^,² at €1,005m, up +10.4% 9M/9M Earnings per share²: €1.65 for Q3, €4.91 for 9M

Record AuM & dynamic MLT inflows⁵		Record assets under management³: €2,192bn at 30 September 2024, up +11% year-on-year Q3 net inflows³ of +€2.9bn, or +€14.5bn excluding the exit from a large, low-income institutional mandate⁴ +€9.1bn in MLT assets⁴^,⁵^,⁶ Solid commercial momentum of Asian JVs: +€5.3bn

Continued strategic progress		ETFs⁶: +€8bn in Q3 net inflows, now more than €250bn in assets under management Third-party distribution: +€7bn Q3 net inflows, with contribution from all regions and asset classes Asia: +€7bn in Q3 net inflows, from JVs and direct distribution in Japan, Singapore, Hong Kong, Taiwan and China Technology: revenues +42% Q3/Q3 Victory Capital: approval⁷ of the partnership with Amundi secured at EGM, transaction expected to close in Q1 2025

Paris, 30 October 2024

Amundi’s Board of Directors met on 29 October 2024 under the chairmanship of Philippe Brassac, and reviewed the financial statements for the third quarter and the first 9 months of 2024.

Valérie Baudson, Chief Executive Officer, said:
« Amundi’s results in the third quarter of 2024 demonstrate our ongoing strategic progress and continued growth potential. Our Q3 net profit¹^,²of €337m, increased by +16% compared to the same period in 2023 and exceeded one billion euros over 9 months. Assets under management reached a record level of €2.2 trillion.

We have been able to support our clients whatever their profile and needs, which has resulted in a high level of net inflows in our strategic development areas, namely Asia, Third-Party Distributors, and ETFs.

By putting clients at the heart of our strategy and by continuing to develop the areas of expertise that primarily seek to meet their needs, we are ideally positioned to seize growth opportunities in the savings industry. »

* * * * *

Further progress in achieving our 2025 Ambitions plan

Q3 2024 saw key areas of focus under the “2025 Strategic Ambitions” plan contribute to activity and earnings growth.

ETFs exceeded €250bn in assets under management at the end of September, up +31% year-on-year, thanks in particular to very dynamic net inflows reaching +€17bn over 9 months, including +€8bn in Q3. This places Amundi in second place in the European market in terms of net inflows this quarter⁸. these inflows are well diversified across equity and fixed income products, with a high share of products classified as responsible investment⁹ in net inflows (+€3bn, or 34% market share in flows in this market segment). Amundi has had many commercial successes this quarter: for example, the Amundi ETF Stoxx Europe 600 is the best-selling (+€0.85bn) European equity ETFs in Q3, the Amundi ETF Euro Government Tilted Green Bond, launched last year, saw its assets under management exceed €3bn after gathering +€1.1bn since the beginning of the year, and the Amundi ETF Prime ACWI exceeded €1bn in assets under management 8 months after its launch.
Third-Party Distribution reached €377bn in assets under management at the end of September, up +24% year-on-year, with net inflows +€19bn for 9 months 2024, and +€7bn in Q3, thanks to contributions from all regions and asset classes, from ETFs, treasury products and active management;
Asia assets under management increased by +17% year-on-year to €458bn; net inflows for 9 months 2024 stood at +€30bn with a significant contribution from Amundi’s Indian JV SBI MF, which now has €278bn in assets, up +19% year-on-year (+€18bn in net inflows); €103bn of total Asian assets under management come from direct distribution excluding JVs (+20% year-on-year), with net inflows for 9 months 2024 standing at +€3bn in Japan, +€2.4bn Singapore, +€1.4bn Hong Kong and also +€1.7bn in China outside the two JVs, mainly with institutional clients;
The Technology & Services offering is also experiencing strong growth, with technology revenues of €54m over 9 months, up +28% compared to the same period in 2023, and even +42% Q3/Q3; the Fund Channel fund distribution platform exceeded €490bn in assets at the end of September 2024; during the quarter it signed a distribution agreement with ING Germany and integrated the fintech AirFund into its ecosystem to digitise access to private markets; Fund Channel was also ranked “Best Distribution Platform” for the third consecutive year by the consulting and research firm Platforum;
In fixed income expertise, Amundi now manages €1,160bn in assets¹⁰ across a wide range of solutions, from treasury products to target maturity funds, offering attractive returns and capital protection; fixed income net inflows stood at +€46bn¹⁰ over 9 months and +€14bn¹⁰ in Q3 thanks to sustained activity in active bond strategies (+€11bn excluding JV) and ETFs (+€2.5bn);
The partnership project with Victory Capital reached an important milestone with shareholder approval of resolutions⁷ necessary to finalise the transactions, expected in Q1 2025. As a reminder, this partnership aims at creating a larger US investment platform, via the contribution of Amundi US to Victory Capital in return for Amundi taking a 26%-stake of the combined entity as well as 15-year distribution agreements, to serve the clients of both companies; Amundi would thus have a greater number of US and global management expertise to offer its clients. The transaction, which involves no disbursement of cash, is expected to bring a low single-digit accretion for Amundi shareholders, with an increase in the contribution of our US operations to the adjusted net income and EPS.

Activity

Market environment

In the third quarter of 2024, equity markets¹¹ increased by +1.1% in average compared to the previous quarter and by +15.6% compared to Q3 2023. The European bond markets¹² also rose, reflecting the shift in monetary policy and the ECB’s decision to cut rates. Year-on-year, our benchmark index¹² increased by +6.3% in Q3 2024 compared to Q3 2023 and by +2.1% compared to Q2 2024. The market effect is therefore positive on the evolution of Amundi’s revenues and net income.

When compared to the 2021 averages used as a reference for the 2025 Ambitions plan, the market effect is only slightly positive.

The European asset management market continues its gradual recovery. Open-ended fund volumes¹³, at +€213bn in the third quarter, continued to be driven by treasury products (+€93bn) and passive management (+€75bn). Nevertheless, the third quarter recorded positive flows in medium- to long-term active management for the second quarter in a row (+€45bn), driven by fixed income strategies (+€69bn).

High level of activity over the quarter in MLT assets⁵, assets under management at a record level of €2.2tn

Activity this quarter continues to be marked, like the rest of the European market, by risk aversion among retail clients. However, Amundi performed well, driven in particular by ETFs, bond solutions, third-party distributors and Asia. Excluding the exceptional exit from a low-income insurance mandate⁴, net inflows were positive in all major medium- to long-term areas of expertise (passive, active, structured products and real assets), in all client segments (Retail, Institutional and JV), and in all major markets (France, Italy, Germany, Asia and the United States).

Amundi’s assets under management at 30 September 2024 increased by +11.1% year-on-year (compared to the end of September 2023) and by +1.6% quarter-on-quarter (compared to the end of June 2024), to €2,192bn, an all-time high.

In the third quarter of 2024, the market and currency effect amounted to +€32.5bn (+€175.9bn over a year) and Amundi generated positive net inflows of +€2.9bn. As announced at the time of the second quarter results publication, this amount includes the exit of a low-income multi-asset mandate⁴ with a European insurer, of €11.6bn.

Adjusted for this exit⁴, net inflows for the quarter were +€14.4bn of which +€9.1bn in MLT Assets⁵. It was positive in active management (+€4.3bn) and ETFs (+€7.8bn), partially offset by outflows from index strategies. Structured products and real and alternative assets also recorded positive net inflows (+€0.8bn), while treasury products were flat (+€0.1bn).

Finally, the JVs¹⁴continued their solid commercial momentum, with net inflows of +€5.3bn, reflecting a positive contribution from India (SBI MF, +€6.0bn) and South Korea (NH-Amundi, +€0.4bn), partially offset this quarter by slight net outflows in China (ABC-CA) despite continued open-ended net inflows.

By Client Segment, Retail recorded net inflows of +€6.3bn, of which +€1.3bn in MLT assets⁵, with contrasting developments according to the sub-segments:

Third-Party Distributors had another very good quarter in terms of total net inflows (+€6.8bn); all regions contributed to these inflows, which were highly diversified across asset classes, with positive contributions from ETFs, treasury products but also active management (+€1.5bn);
Risk aversion has a larger impact on the activity of partner network clients in France (+€1.1bn) and outside France excluding Amundi BOC WM (-€0.9bn), despite the good performance of structured and treasury products as well as bond strategies; Sabadell’s network in Spain continues its sales momentum (+€0.4bn);
In China, Amundi BOC WM posted net outflows this quarter (-€0.7bn), as the maturities of fixed-term funds were not offset by open-ended fund subscriptions.

Excluding the loss of the low-income insurance mandate already mentioned⁴, the Institutional segment recorded very positive inflows in MLT Assets⁵(+€7.8bn), in all sub-segments: Institutional & Sovereigns with +€4.4bn, CA & SG insurance mandates with +€2.4bn thanks to the continued recovery of the traditional life insurance Euro contracts this quarter, Corporates and Employee Savings (+€1.0bn) thanks to net inflows in short-term bond products from corporates. Net outflows in Treasury Products (-€4.9bn) are to a large extent seasonal.

Results

Sustained growth in net income, +16% Q3/Q3 to €337m, and more than €1bn in the 9 months of 2024

Adjusted data²

In the third quarter of 2024, adjusted net income²reached €337m, up +16.1% compared to the third quarter of 2023. Since the second quarter, it includes Alpha Associates, whose acquisition was finalised in early April.

The growth in net income was mainly due to organic revenue growth, amplified by operating efficiency, which led to a positive jaws effect, and by the very strong momentum of Asian JVs. These results were achieved against the backdrop of continued client risk aversion, and inflation.

Adjusted net revenues² reached €862m, up +10.5% compared to the third quarter of 2023.

The sustained growth in net management fees, up +9.2% compared to the third quarter of 2023, to €805m, reflects the good level of activity and the increase in average assets under management excluding JVs (+8.6% over the same period);
Performance fees (€20m) doubled compared to the third quarter of 2023 (€10m), a low basis of comparison; however, they were down compared to the second quarter of 2024 (€50m) due to the lower level of crystallisation¹⁵ in the third quarter than in the second and fourth quarters, as it does every year; however, the performance of Amundi’s management is at a good level, with more than 71% of assets under management ranked in the first or second quartiles according to Morningstar¹⁶ over 1, 3 or 5 years and 257 Amundi funds rated 4 or 5 stars by Morningstar as of 30 September;
Amundi Technology’s revenues, at €20m, continued to grow steadily (+41.8% compared to the third quarter of 2023; +13.0% compared to the second quarter of 2024), confirming the development of this business;
Finally, the Financial and other income² amounted to €17m, down slightly compared to the third quarter of 2023 and previous quarters.

The increase in operating expenses², by +7.4% compared to the third quarter of 2023, to €456m, remains lower than the increase in revenues (+10.5%) over the same period, thus generating a positive jaws effect which reflects the Group’s operational efficiency.

The increase is mainly due to:

the first consolidation of Alpha Associates;
the provision for individual variable remuneration in line with the increase in results;
and finally the acceleration of investments in development initiatives according to the axes of the 2025 Ambitions Plan, particularly in technology.

The Cost income ratio improved to 52.9% in adjusted data² compared to the same quarter last year, and remains in line with the 2025 target and at the best level in the industry.

The Adjusted gross operating income²(EBIT) amounted to €406m, up +14.2% compared to the third quarter of 2023, reflecting double-digit revenue growth amplified by operational efficiency.

Income from equity-accounted companies, which reflects Amundi’s share of the net income of minority JVs in India (SBI MF), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion), was up +36.5% compared to the third quarter of 2023, to €33m, representing 10% of adjusted net income, reflecting the good level of activity in India and Korea.

Adjusted earnings per share²in the third quarter of 2024 reached €1.65, up +16.0%.

Accounting data in the third quarter of 2024

Accounting Net income Group share amounted to €320m and includes non-cash charges related to acquisitions, in particular the amortisation of intangible assets related to distribution and client contracts (-€24m before tax in the quarter including the corresponding new charges related to Alpha Associates, see details in p. 11), representing a total of -€17m after tax.

Accounting earnings per share in the third quarter of 2024 reached €1.56.

In the first 9 months of 2024, adjusted net income²amounted to €1,005m, up +10.4%, reflecting the same trends as in the third quarter:

Adjusted net revenues² grew by +7.3% compared to the first 9 months of 2023, to €2,573m, reflecting as in the quarter the sustained growth in management fees (+6.6%) and the strong increase in Amundi Technology’s revenues (€54m, +28.2%) and financial and other income² (€67m, +38.2%); performance fees, on the other hand, were down by -2.0% to €88m;
Adjusted operating expenses² are well controlled with an increase of +5.9% compared to the first 9 months of 2023, at €1,356m, resulting in a positive jaws effect;
Adjusted cost income ratio² stands at 52.7%.

Adjusted gross operating income² was €1,217m, up +8,9% compared to the first 9 months of 2023, showing a higher growth rate than revenue growth thanks to operating efficiency.

Income from equity-accounted companies increased by +28.6% compared to the first 9 months of 2023, to €94m.

Adjusted earnings per share²for the first 9 months of 2024 reached €4.91, up +10.1% compared to the first 9 months of 2023.

Accounting data for the first 9 months of 2024

Accounting Net income Group share amounted to €956m and includes non-cash charges related to acquisitions, in particular the amortisation of intangible assets related to distribution and client contracts (-€68m before tax in the 9 months including the corresponding new charges related to Alpha Associates, see details on p. 11), representing a total of -€49m after tax in the first 9 months of 2024.

Accounting earnings per share for the first 9 months of 2024 reached €4.67.

To be noted for the fourth quarter and full-year 2024

Success of the capital increase reserved for employees – The capital increase reserved for employees “We Share Amundi”, announced on 23 September 2024, is expected to be completed tomorrow, 31 October 2024. This operation offered for the seventh consecutive year a subscription of shares at a discount.

It was once again a great success this year: more than 2,000 employees in 15 countries subscribed to this capital increase, for a total amount of €36.3m. This represents nearly two out of three employees in France and more than two out of five worldwide.
This transaction, which is in line with the existing legal authorisations voted by the Shareholders’ Meeting on 12 May 2023, reflects Amundi’s desire to involve its employees not only in the development of the Company but also in the creation of economic value.

The impact of this transaction on earnings per share will be very limited: the number of shares to be created will be 771,628 (i.e. ~0.4% of the share capital before the transaction).
This issue will bring the number of shares making up Amundi’s share capital to 205,419,262 as of 31 October 2024, i.e. a share capital increased to €513,548,155.
Employees will now hold around 1.7% of Amundi’s capital, compared to 1.3% before the transaction. In the fourth quarter of 2024, the Amundi Group will record in its consolidated financial statements a charge relating to the subscription discount of €12.3m before tax.

On the basis of the Finance Bill presented by the French government, an exceptional tax contribution on the profits of large companies would apply to Amundi, whose turnover in France for tax purposes is more than €3bn.

* * * * *

APPENDICES

Adjusted income statement²of the first 9 months of 2024 and 2023

(€m)	9M 2024	9M 2023	% chg. 9M/9M

Net revenue – Adjusted	2,573	2,397	+7.3%
Management fees	2,364	2,217	+6.6%
Performance fees	88	89	-2.0%
Technology	54	42	+28.2%
Net financial & other net income	67	49	+38.2%
Operating expenses – Adjusted	(1,356)	(1,280)	+5.9%
Cost income ratio – Adjusted (%)	52.7%	53.4%	-0.7pp
Gross operating income – Adjusted	1,217,	1,117,	+8.9%
Cost of risk & other	(7)	(5)	+24.5%
Equity-accounted companies	94	73	+28.6%
Income before tax – Adjusted	1,305	1,185	+10.1%
Corporate tax	(302)	(277)	+8.8%
Non-controlling interests	2	3	-25.2%
Net income, Group share – Adjusted	1,005	910	+10.4%
Depreciation of intangible assets after tax	(49)	(44)	+11.6%
Integration costs net of tax	0	0	NS
Net income, Group share	956	866	+10.3%
Earnings per share (€)	4.67	4.25	+10.0%
Earnings per share – Adjusted (€)	4.91	4.46	+10.1%

Adjusted income statement²of the third quarter of 2024

(€m)	Q3 2024	Q3 2023	% chg. Q3/Q3	Q2 2024	% chg. Q3/Q2

Net revenue – Adjusted	862	780	+10.5%	887	-2.9%
Management fees	805	737	+9.2%	794	+1.3%
Performance fees	20	10	+97.3%	50	-58.9%
Technology	20	14	+41.8%	17	+13.0%
Net financial & other net income	17	19	-10.6%	26	-34.0%
Operating expenses – Adjusted	(456)	(424)	+7.4%	(461)	-1.1%
Cost income ratio – Adjusted (%)	52.9%	54.4%	-1.5pp	51.9%	+1.0pp
Gross operating income – Adjusted	406	356	+14.2%	426	-4.8%
Cost of risk & other	(2)	(3)	-36.0%	(5)	-63.4%
Equity-accounted companies	33	24	+36.5%	33	-0.1%
Income before tax – Adjusted	437	377	+15.9%	454	-3.9%
Corporate tax	(101)	(88)	+14.9%	(105)	-3.8%
Non-controlling interests	1	1	-23.5%	0	NS
Net income, Group share – Adjusted	337	290	+16.1%	350	-3.7%
Depreciation of intangible assets after tax	(17)	(15)	+17.9%	(17)	+1.2%
Integration costs net of tax	0	0	NS	0	NS
Net income, Group share	320	276	+16.0%	333	-4.0%
Earnings per share (€)	1.56	1.35	+15.9%	1.63	-4.0%
Earnings per share – Adjusted (€)	1.65	1.42	+16.0%	1.71	-3.7%

Evolution of assets under management from the end of 2020 to the end of September 2024¹⁷

(€bn)	Assets under management	Net inflows	Market & Forex Effect	Scope effect			Change in AuM vs. previous quarter
As of 31/12/2020	1,729				/	+4.0%
Q1 2021		-12.7	+39.3		/
As of 31/03/2021	1,755				/	+1.5%
Q2 2021		+7.2	+31.4		/
As of 30/06/2021	1,794				/	+2.2%
Q3 2021		+0.2	+17.0		/
As of 30/09/2021	1,811				/	+1.0%
Q4 2021		+65.6	+39.1		+148¹⁸
As of 31/12/2021	2,064				/	+14%
Q1 2022		+3.2	-46.4		/
As of 31/03/2022	2,021				/	-2.1%
Q2 2022		+1.8	-97.75		/
As of 30/06/2022	1,925				/	-4.8%
Q3 2022		-12.9	-16.3		/
As of 30/09/2022	1,895				/	-1.6%
Q4 2022		+15.0	-6.2		/
As of 31/12/2022	1,904				/	+0.5%
Q1 2023		-11.1	+40.9		/
As of 31/03/2023	1,934				/	+1.6%
Q2 2023		+3.7	+23.8		/
As of 31/06/2023	1,961				/	+1.4%
Q3 2023		+13.7	-1.7		/
As of 30/09/2023	1,973				/	+0.6%
Q4 2023		+19.5	+63.8		-20
As of 31/12/2023	2,037				/	+3.2%
Q1 2024		+16.6	+63.0		/
As of 31/03/2024	2,116				/	+3.9%
Q2 2024		+15.5	+16.6		+8
30/06/2024	2,156					+1.9%
Q3 2024		+2.9	+32.5		/
30/09/2024	2,192					+1.6%

Total over one year between September 30, 2023 and September 30, 2024: +11.1%

Net inflows +€54.5bn
Market & exchange rate effects +€175.9bn
Scope effects -€12.2bn
(disposal of Lyxor Inc. in Q4 2023, first consolidation of Alpha Associates in Q2 2024)

Details of assets under management and net inflows by client segments¹⁹

(€bn)	AuM 30.09.2024	AuM 30.09.2023	% change /30.09.2023	Net flows Q3 2024	Net flows Q3 2023	Net flows 9M 2024	Net flows 9M 2023
French networks	138	126	+9.1%	+1.1	+0.9	+0.3	+4.6
International networks	167	156	+7.1%	-1.6	-1.0	-4.4	-3.2
o/w Amundi BOC WM	3	4	-26.9%	-0.7	-0.5	-0.5	-3.3
Third-party distributors	377	305	+23.5%	+6.8	+2.1	+19.2	+4.1
Retail	681	587	+16.1%	+6.3	+2.0	+15.1	+5.6
Institutional & Sovereigns (*)	518	489	+6.0%	-9.3	+17.9	+1.4	+14.4
Corporates	113	97	+16.0%	+2.3	-3.8	-5.8	-7.4
Employee savings plans	92	84	+9.8%	-0.5	-0.9	+2.5	+2.6
CA & SG insurers	428	406	+5.3%	-1.2	-3.9	+0.5	-9.6
Institutional	1,151	1,076	+6.9%	-8.7	+9.3	-1.4	+0.0
JVs	360	310	+16.0%	+5.3	+2.4	+21.3	+0.7
Total	2,192	1,973	+11.1%	+2.9	+13.7	+35.0	+6.3

Details of assets under management and net inflows by asset classes¹⁹

(€bn)	AuM 30.09.2024	AuM 30.09.2023	% change /30.09.2023	Net flows Q3 2024	Net flows Q3 2023	Net flows 9M 2024	Net flows 9M 2023
Equity	527	443	+18.9%	-0.7	+7.0	+0.0	+2.0
Multi-assets	274	274	-0.0%	-15.4	-5.9	-22.3	-17.0
Bonds	732	624	+17.3%	+12.8	+7.7	+36.8	+10.1
Real, alternative & structured assets	114	124	-8.3%	+0.8	-1.1	+1.5	+2.4
MLT ASSETS excl. JVs	1,647	1,465	+12.4%	-2.5	+7.8	+16.1	-2.4
Treasury products excl. JVs	185	198	-6.5%	+0.1	+3.5	-2.4	+8.0
Assets excl. JVs	1,832	1,663	+10.1%	-2.4	+11.3	+13.6	+5.6
JVs	360	310	+16.0%	+5.3	+2.4	+21.3	+0.7
TOTAL	2,192	1,973	+11.1%	+2.9	+13.7	+35.0	+6.3
*o/w MLT assets*	*1,973*	*1,745*	*+13.1%*	*+3.4*	*+11.3*	*+34.9*	*-0.7*
*o/w Treasury products*	*219*	*229*	*-4.2%*	*-0.5*	*+2.5*	*+0.1*	*+7.1*

Details of assets under management and net inflows by management type and asset classes¹⁹

(€bn)	AuM 30.09.2024	AuM 30.09.2023	% change /30.09.2023	Net flows Q3 2024	Net flows Q3 2023	Net flows 9M 2024	Net flows 9M 2023
Active management	1,136	1,022	+11.1%	-7.1	-1.9	+2.2	-15.6
Equity	208	187	+11.4%	-2.3	-1.6	-5.4	-2.5
Multi-assets	263	265	-0.9%	-15.7	-6.3	-23.4	-18.2
Bonds	665	570	+16.6%	+10.8	+6.1	+31.0	+5.1
Structured products	43	35	+22.3%	+0.8	-0.2	+2.7	+2.9
Passive management	397	319	+24.5%	+3.8	+10.8	+12.4	+10.8
ETFs & ETC	251	192	+31.1%	+7.8	+3.6	+17.3	+8.0
Index & Smart Beta	146	127	+14.5%	-4.0	+7.2	-5.0	+2.8
Real & alternative assets	71	89	-20.5%	+0.0	-0.9	-1.2	-0.5
Real assets	67	63	+4.8%	+0.2	-0.3	-0.1	+0.2
Alternative assets	4	25	-83.8%	-0.2	-0.6	-1.1	-0.7
MLT ASSETS excl. JVs	1,647	1,465	+12.4%	-2.5	+7.8	+16.1	-2.4
Treasury products excl. JVs	185	198	-6.5%	+0.1	+3.5	-2.4	+8.0
TOTAL ASSETS excl. JVs	1,832	1,663	+10.1%	-2.4	+11.3	+13.6	+5.6
JVs	360	310	+16.0%	+5.3	+2.4	+21.3	+0.7
TOTAL	2,192	1,973	+11.1%	+2.9	+13.7	+35.0	+6.3

Details of assets under management and net inflows by geographical areas¹⁹

(€bn)	AuM 30.09.2024	AuM 30.09.2023	% change /30.09.2023	Net flows Q3 2024	Net flows Q3 2023	Net flows 9M 2024	Net flows 9M 2023
France	987	903	+9.3%	+2.8	+4.1	+12.8	-1.2
Italy	202	197	+2.7%	-10.8	-1.5	-13.8	-2.2
Europe excl. France & Italy	421	353	+19.2%	+1.9	-0.8	+6.0	+6.0
Asia	458	392	+17.0%	+7.4	+3.4	+29.6	-0.3
Rest of the world	124	129	-4.3%	+1.7	+8.4	+0.4	+4.0
TOTAL	2,192	1,973	+11.1%	+2.9	+13.7	+35.0	+6.3
*TOTAL outside France*	1,204	1,070	+12.5%	+0.1	+9.6	+22.2	+7.5

Methodology Appendix

Accounting & adjusted data

Accounting data – These include the amortization of intangible assets, recorded as other income, and since Q2 2024, other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; these expenses are recognized as deductions from net income, in finance costs.

The aggregate amounts of these items are as follows for the different periods under review:

Q1 2023: -€20m before tax and -€15m after tax
Q2 2023: -€20m before tax and -€15m after tax
Q3 2023: -€20m before tax and -€15m after tax
9M 2023: -€61m before tax and -€44m after tax
2023: -€82m before tax and -€59m after tax
Q1 2024: -€20m before tax and -€15m after tax
Q2 2024: -€24m before tax and -€17m after tax
Q3 2024: -€24m pre-tax and -€17m after tax
9M 2024: -€68m before tax and -€49m after tax

There were no significant integration costs recorded in the third quarter as a result of the acquisition of Alpha Associates

Adjusted data – in order to present an income statement closer to economic reality, the following adjustments are made: restatement of the amortization of distribution contracts with Bawag, UniCredit and Banco Sabadell, intangible assets representing the client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates; such depreciation and amortization and non-cash expenses are recorded as a deduction from net revenues.

Acquisition of Alpha Associates

In accordance with IFRS 3, recognition of Amundi’s balance sheet as at 01/04/2024:

goodwill of €290m;
an intangible asset of €50m representing client contracts, depreciable on a straight-line basis until the end of 2030;
a liability representing the conditional earn-out not yet paid, for €160m, including an actuarial discount of -€30m, which will be amortized over 6 years.

In the Group’s income statement, the following is recorded:

amortization of intangible assets for a full-year expense of -€7.6m (-€6.1m after tax)
other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; These expenses are recorded as deductions from net income, as finance costs.

In Q3 2024, the amortization of intangible assets was -€1.9m before tax (-€1.5m after tax) and non-cash expenses were -€1.4m before tax (i.e. -€1.1m after tax). Over the first 9 months of 2024, these expenses are respectively -€3.8m and -€2.9m (-€6.6m in total), since they only started in Q2.

Alternative Performance Measures²⁰

In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that excludes the depreciation of intangible assets and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates.
Adjusted, normalized data are reconciled with accounting data as follows:

= accounting data

= adjusted data

(m€)	9M 2024	9M 2023	Q3 2024	Q3 2023	Q2 2024

Net operating income	2,452	2,307	825	747	844
Technology	54	42	20	14	17
Net financial income and other income	(1)	(13)	(6)	(1)	3
Adjusted net financial income and other income	67	49	17	19	26

Net revenues (a)	2,505	2,336	838	760,	864,
– Depreciation of intangible assets before tax	(65)	(61)	(22)	(20)	(22)
– other non-cash charges relating to Alpha Associates	(3)	0	(1)	0	(1)
Net revenues – Adjusted (b)	2,573	2,397	862,	780,	887

Operating expenses (c)	(1,356)	(1,280)	(456)	(424)	(461)
– Integration costs before tax	0	0	0	0	0
Operating expenses – Adjusted (d)	(1,356)	(1,280)	(456)	(424)	(461)

Gross operating income (e) = (a) + (c)	1,149	1,056	382	335	403
Gross operating income – Adjusted (f) = (b) + (d)	1,217	1,117	406	356	426
Cost-income ratio (%) -(c)/(a)	54.1%	54.8%	54.4%	55.9%	53.4%
Cost-income ratio – Adjusted (%) -(d)/(b)	52.7%	53.4%	52.9%	54.4%	51.9%
Cost of risk & other (g)	(7)	(5)	(2)	(3)	(5)
Equity-accounted companies (h)	94	73	33	24	33
Income before tax (i) = (e) + (g) + (h)	1,237	1,124	413	356	431
Income before tax – Adjusted (j) = (f) + (g) + (h)	1,305	1,185	437	377	454
Income tax (k)	(283)	(260)	(94)	(82)	(98)
Income tax – Adjusted (l)	(302)	(277)	(101)	(88)	(105)
Non-controlling interests (m)	2	3	1	1	0
Net income, Group share (o) = (i)+(k)+(m)	956	866	320	276	333
Net income, Group share – Adjusted (p) = (j)+(l)+(m)	1,005	910	337	290	350

Earnings per share (€)	4.67	4.25	1.56	1.35	1.63
Adjusted earnings per share (€)	4.91	4.46	1.65	1.42	1.71

Shareholding

	30 September 2023		31 December 2023		30 September 2024
(units)	Number of shares	% of share capital	Number of shares	% of share capital	Number of shares	% of share capital
Crédit Agricole Group	141,057,399	68.93%	141,057,399	68.93%	141,057,399	68.93%
Employees	3,042,292	1.49%	2,918,391	1.43%	2,751,891	1.34%
Treasury shares	1,297,231	0.63%	1,247,998	0.61%	958,031	0.47%
Free float	59,250,712	28.95%	59,423,846	29.04%	59,880,313	29.26%

Number of shares at end of period	204,647,634	100.0%	204,647,634	100.0%	204,647,634	100.0%
Average number of shares year-to-date	204,050,516	–	204,201,023	–	204,647,634	–
Average number of shares quarter-to-date	204,425,079	–	204,647,634	–	204,647,634	–

Average number of shares on a pro rata basis.

The average number of shares is unchanged between Q2 and Q3 2024, it increased by +0.1% between Q3 2023 and Q3 2024 and by +0.3% between the first 9 months of 2023 and the same period of 2024;
A capital increase reserved for employees will be carried out on October 31, 2024. 771,628 shares were created (approximately 0.4% of the share capital before the transaction), bringing the share of employees to about 1.7% of the capital, compared to 1.34% at September 30, 2024, before the transaction.

Financial communication calendar

Q4 and Full Year 2024 Results: February 4, 2025
Q1 2025 earnings release: April 29, 2025
Annual General Meeting: May 27, 2025
Q2 and H1 2025 earnings release: July 29, 2025
Q3 and 9-month 2025 results: October 28, 2025

About Amundi

Amundi, the leading European asset manager, ranking among the top 10 global players²¹, offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages close to €2.2 trillion of assets²².

With its six international investment hubs²³, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

Amundi clients benefit from the expertise and advice of 5,500 employees in 35 countries.

Amundi, a trusted partner, working every day in the interest of its clients and society.

www.amundi.com

Press contacts:
Natacha Andermahr
Tel. +33 1 76 37 86 05
natacha.andermahr@amundi.com

Corentin Henry
Tel. +33 1 76 36 26 96
corentin.henry@amundi.com

Investor contacts:
Cyril Meilland, CFA
Tel. +33 1 76 32 62 67
cyril.meilland@amundi.com

Thomas Lapeyre
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com

Annabelle Wiriath

Tel. + 33 1 76 32 43 92

annabelle.wiriath@amundi.com

WARNING

This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.

This document may contain forward looking statements concerning Amundi’s financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.

These forward looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward looking statement will come to fruition, and Amundi’s actual financial position and results may differ materially from those projected or implied in these forward looking statements. [In particular, conditions to completion of the announced transaction between Amundi and Victory Capital, may not be satisfied and such transaction may not be completed on schedule, or at all; risks relating to the expected benefits or impact of the transaction on Victory Capital’s and Amundi’s respective businesses are contained in their respective public filings.]

Amundi undertakes no obligation to publicly revise or update any forward looking statements provided as at the date of this document. Risks that may affect Amundi’s financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.

The figures presented were prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date. The financial information set out herein do not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.

The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.

¹        Net income Group share
²        Adjusted data: excluding amortisation of intangible assets relating to distribution and client contracts as well as other non-cash charges relating to the acquisition of Alpha Associates recorded in net financial income (see note p. 11)
³        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
⁴        As announced at the time of the publication of the Q2 results, exit in Q3 from a large low-income mandate (€11.6 billion) with a European insurer, in multi-asset; including this exit, net inflows were positive by +€2.9bn in Q3 and +€35bn over 9 months
⁵        Medium-Long Term Assets
⁶        Excluding JVs
⁷        Extraordinary General Meeting of Shareholders of Victory Capital, held on 11 October 2024
⁸        Source: TrackInsight Q3 2024
⁹        Classified as article 8 or 9 of the SFDR regulation of the European Union
¹⁰        Including JV: €234bn in assets, +€12bn net inflows over 9 months and +€1bn in Q3
¹¹        50% MSCI World + 50% Eurostoxx 600 composite index for equity markets, average values over each period considered
¹²        Bloomberg Euro Aggregate for bond markets, average values over each reporting period
¹³        Source: Morningstar FundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data as of the end of June 2024.
¹⁴        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
¹⁵        Anniversary dates of the funds triggering the recognition of these fees
¹⁶        Source: Morningstar Direct, Broadridge FundFile – Open-ended funds and ETFs, global fund scope, September 2024; as a percentage of the assets under management of the funds in question; the number of Amundi open-ended funds rated by Morningstar was 1063 at the end of September 2024. © 2024 Morningstar, all rights reserved
¹⁷        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
¹⁸        Lyxor, integrated as of 31/12/2021
¹⁹        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV; as of 01/01/2024, reclassification of short-term bond strategies (€30 billion in outstandings) as Bonds previously classified as Treasury until that date; Outstanding amounts up to that date have not been reclassified in these tables
²⁰        See also the section 4.3 of the 2023 Universal Registration Document filed with the AMF on April 18, 2024
²¹Source: IPE “Top 500 Asset Managers” published in June 2024, based on assets under management as at 31/12/2023
²²Amundi data at 30/09/2024
²³Boston, Dublin, London, Milan, Paris and Tokyo

Attachment

Amundi PR results Q3&9M 2024

The MIL Network –

January 25, 2025

MIL-OSI Russia: Over 600 tons of garbage during navigation: how river waters are cleaned in Moscow

Translation. Region: Russian Federation –

Source: Moscow Government – Government of Moscow –

The municipal fleet collected more than 600 tons of garbage from the capital’s waters during the navigation period this year. This was reported by the Deputy Mayor of Moscow for Housing and Public Utilities and Improvement Petr Biryukov.

“Communal vessels were engaged in daily garbage collection from the water surface of the Moscow River and the navigable part of the Yauza, eliminated pollution, and removed silt sediment. In total, they collected over 600 tons of floating garbage, eliminated almost 140 different types of pollution, and removed about 6.5 thousand tons of sand and soil from the bottom,” noted Pyotr Biryukov.

Thanks to the competent arrangement of the fleet and waste collection bases, the entire water area of the Moscow River within the city boundaries and the navigable section of the Yauza are under 24-hour control. The main efforts to collect floating waste were concentrated in the upper reaches of the Moscow River, which ensured the cleanliness of the riverbed downstream. Garbage collection vessels worked mainly, with small vessels operating in shallow areas. Floating cranes and non-self-propelled barges with tugs were used to extract bottom sediments of sand and soil.

The head of the city economy complex reminded that the capital’s municipal fleet operates all year round. Even after the end of the seasonal navigation, two vessels with an ice class of up to 20 centimeters remain on the water. Garbage collectors and rapid response boats continue to operate on non-freezing rivers.

During the inter-navigation period, the bulk of the fleet is moored in winter mooring areas, where maintenance and routine repairs are carried out.

Sergei Sobyanin: Icebreakers of the municipal fleet patrol the Moscow River every day The southern part of the Moscow River water area has been cleared of abandoned ships and floating objects

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

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

https://vvv.mos.ru/nevs/item/145940073/

MIL OSI Russia News –

January 25, 2025
MIL-OSI: LHV Pank updated equity research on EfTEN Real Estate Fund AS

Source: GlobeNewswire (MIL-OSI)

LHV Pank updated the equity research and price target of EfTEN Real Estate Fund AS (EfTEN; EFT1T) shares. According to the analysis, the price target for the share was increased from 19,6 euros to 20 euros and the share has a “neutral” rating. The previous price target for the EfTEN Real Estate Fund AS shares was set in January 2024.

LHV research points out three main strengths of the EfTEN Real Estate Fund AS: (i) decreasing financial cost base due to falling interest rates; (ii) low vacancy rate; (iii) dividend yield, which is above the level of competitors.

The analysis can be found on the LHV Pank Financial Portal.

Kristjan Tamla

EfTEN Capital AS

Managing Director

Tel: +372 655 9515

E-post: kristjan.tamla@eften.ee

The MIL Network –

January 25, 2025
MIL-OSI China: Scholarship quota for undergrads doubled

Source: People’s Republic of China – State Council News

China has recently optimized scholarships and bursary granting systems to senior high school and college students with an aim of providing financial aid to youth pursuing higher education.

The initiative jointly launched by the Ministry of Finance, the Ministry of Education and the Ministry of Human Resources and Social Security will double the number of undergraduate students receiving the State-level scholarships, while financial aid will also be significantly increased, starting this year.

As per the policy, 120,000 undergraduate students from universities and junior colleges can receive the scholarship, and each will be awarded 10,000 yuan ($1,400) annually. Previously, the quota of students was 60,000, and they could receive no more than 8,000 yuan a year.

The State-level scholarship provides major assistance for higher education students, rewarding them for achieving outstanding academic performance, diligence and good moral qualities.

The new policy will also double the number of such scholarships to postgraduate students from 45,000 to 90,000 from this year, among whom 70,000 will be master’s degree candidates and 20,000 doctoral students.

Meanwhile, China will also channel more funds to assist students with financial difficulties. They will receive 3,700 yuan of State-level financial aid on average from this semester, with some receiving as much as 5,000 yuan. Previously, the financial aid offered was 3,300 yuan per year.

Beginning in the spring semester next year, aid will also be extended to students from regular senior high schools facing financial difficulties. On average, they will receive 2,300 yuan, while the neediest can receive up to 3,500 yuan per year in accordance with local practices. Previously, senior high students received 2,000 yuan in such aid annually.

The nation will expand the coverage of its financial aid to more vocational high school students and raise the amount from 2,000 yuan per year to 2,300 yuan starting next spring. Vocational high school students who are in their third year and having financial difficulties are included in the new policy.

Guo Tingting, vice-minister of finance, said at a recent news conference that China has established an all-around financial support system for students to give them security and make it easier for them to access higher education.

According to the finance ministry, the nation channeled 93.2 billion yuan in scholarships and aid to students last year, with over 31 million higher education students benefiting.

MIL OSI China News –

January 25, 2025
MIL-OSI Asia-Pac: LCQ16: Recovery for reuse and upcycling of wood waste

Source: Hong Kong Government special administrative region

LCQ16: Recovery for reuse and upcycling of wood waste
LCQ16: Recovery for reuse and upcycling of wood waste
*****************************************************

Following is a question by the Hon Shiu Ka-fai and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (October 30): Question: Some members of the local timber industry have relayed that Hong Kong generates a large amount of wood waste from areas such as home decoration (including replacement of furniture and floor boards) and construction works every year. However, due to the lack of effective arrangements for recovery for reuse and upcycling, most of these wood materials are disposed of at landfills. They are of the view that this not only depletes the space resources of the landfills, but also runs contrary to environmental protection principles as the waste is not converted into resources. They aspire that the Government will provide adequate support to enable the recovery for reuse and upcycling of used wood materials. In this connection, will the Government inform this Council: (1) of the amount of wood waste (excluding yard waste) generated in Hong Kong in each of the past five years, and set out in tables a breakdown of the amount and percentage by source (e.g. used furniture, floor boards and construction materials) and way of handling (e.g. disposed of at landfills and recovered for reuse); (2) of the respective ways by which wood waste (excluding yard waste) is recovered for reuse and upcycled in Hong Kong currently, and the use of the products so produced; whether it has assessed the effectiveness of the relevant work; if so, of the details; if not, the reasons for that; (3) whether it has studied the practices adopted in other places for the recovery for reuse and upcycling of wood waste and the effectiveness of the relevant work; if so, of the details; if not, the reasons for that; (4) considering the factors required for the recovery for reuse and upcycling of wood waste, such as land and manpower, whether the authorities have plans to study the handling of wood waste jointly with Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area or other neighbouring cities; if so, of the details; if not, the reasons for that; and (5) whether it will plan to work with chambers of commerce and relevant stakeholders of the local timber industry through negotiation and co-operation to improve the ways in which wood waste is recovered for reuse and upcycled and the effectiveness of the relevant work; if so, of the details; if not, the reasons for that? Reply: President, The Government’s support to the recycling industry is primarily based on the principles of market economy and fair competition. Meanwhile, consideration is also given to the feasibility of converting different types of waste into energy or resources for various types of recyclables, in order to enhance the cost effectiveness of recycling. One of the most important support measures is the provision of land resources specifically for recycling purposes, such as the EcoPark, at affordable rents for the recycling industry (including the waste wood recycling industry), to nurture and promote the development of local recycling industry, with a view to establishing a circular economy in the long run. At present, a waste wood recycler which mainly handles waste wooden pallets and tree trunks has been operating in the EcoPark since August 2017. The reply to the question raised by the Hon Shiu Ka-fai is as follows:(1) The disposal quantity of waste wood, its share in the total municipal solid waste (MSW), recovery quantity and recovery rate in the past five years are set out below:

Year
Waste Wood (Note)

Disposal quantity(tonnes per day)
Share in MSW
Recovery quantity(tonnes per day)
Recovery rate

2018
427
3.7%
16
3.6%

2019
348
3.1%
20
5.3%

2020
345
3.2%
11
3.2%

2021
262
2.3%
29
10.0%

2022
207
1.9%
32
13.5%

Note: Under the compilation framework of statistics regarding MSW adopted by the Environmental Protection Department (EPD), “waste wood” only includes waste made of wood such as timber, rattan, wooden pallets, wooden articles, wooden chopsticks. The EPD does not collect data and statistics on wooden furniture and waste wood generated from home renovation or construction works. The compilation of relevant statistics for 2023 is underway.(2) At present, waste wood in Hong Kong after being processed by recyclers will be manufactured into products such as cat litter, wood chips, wood granules, furniture and outdoor paving materials. For instance, the foregoing recycler in the EcoPark has commenced operation since August 2017, treating an average of about 1 200 tonnes of waste wood per year in the past five years. The Government will continue to closely monitor the operational needs of the waste wood recycling industry and provide appropriate assistance as far as possible.(3) and (4) In the course of formulating relevant policies with regard to the handling of different recyclables, the Government will make reference and pay heed to the development and relevant work in other places, as well as taking into account the actual circumstances in Hong Kong in the process of implementation. As for regional co-operation, the “Guangdong-Hong Kong-Macao Greater Bay Area Ecological Environmental Protection Plan” promulgated by the Ministry of Ecology and Environment vigorously promotes the development of a “Zero Waste” Bay Area. With this opportunity, Guangdong and Hong Kong have established a close co-operation and exchange mechanism on environmental issues to jointly explore the capacity and modes for developing a circular economy in the region, leveraging the competitive advantages of the two places, complementing each other’s strengths, and mutually developing green industries, green energy and related facilities.(5) The EPD has been maintaining communication with stakeholders of the waste wood recycling industry, and supporting the waste wood recycling industry through the Recycling Fund. Since 2015, the Recycling Fund has approved six projects related to waste wood, involving a total funding of about $7.8 million. These approved projects include support for environmental protection technology and furniture companies to collect and recycle waste wood, upcycling it into furniture and outdoor paving materials.

Ends/Wednesday, October 30, 2024Issued at HKT 14:45

NNNN

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: Opening address by Permanent Secretary for Financial Services and the Treasury (Financial Services) at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia (English only) (with photo)

Source: Hong Kong Government special administrative region

Following is the opening address by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia today (October 30):

Peter (Chief Executive Officer of the Asia Securities Industry & Financial Markets Association (ASIFMA), Mr Peter Stein), Boris (Managing Director, Head of Institutional Banking Group of DBS Bank (Hong Kong) Limited, Mr Boris Chan), distinguished guests, ladies and gentlemen,

     Good morning. It is my great pleasure to join you today at the 5th Annual Sustainable Finance Conference organised by ASIFMA. ASIFMA’s events always draw an inquisitive and enthusiastic crowd with a lot of brain power. Today is no exception, but perhaps with somewhat more seriousness than usual as we are addressing the serious topic of enabling transition finance in the sustainability pathway towards net zero carbon emissions.

     The seriousness is compounded when one reads the Asian Development Bank’s thematic report on “Asia in the Global Transition to Net Zero” published last year. According to the report, developing Asia accounted for 44 per cent of global greenhouse gas (GHG) emissions in 2019, and growth in the region still tends to rely substantially on emission-intensive activities. Obviously, there is a huge need for transition finance to assist heavy-emitting industries and economic activities to go down the path of net zero while managing economic development implications. Market estimates put the funding gap at over US$3 to 4 trillion in annual investment over the next three decades in the region. Policy trade-offs will certainly be involved in finding the right solutions.

     For this, I note a keyword in the topic of the Conference today and that is “enabling”. Hong Kong, being an international financial centre as well as a premier sustainable finance hub, is well-positioned to play important enabling roles in expediting Asia’s transition to net zero in an enabling or conducive environment.

     With well-functioning capital markets offering a wide range of investment products and an international pool of financial services professionals, Hong Kong can contribute to mobilising international capital to finance transition initiatives in the region. We are already doing so and enriching our ecosystem. For example, the number of ESG funds authorised by the Securities and Futures Commission (SFC) has increased significantly in recent years, with assets under management reaching close to US$170 billion as of June this year.

     The bond market also helps issuers raise sustainable financing in support of low-carbon transition efforts. The volume of green and sustainable bonds arranged in Hong Kong increased by about five times from around US$6 billion in 2019 to almost US$30 billion last year, topping the Asian market from 2021 to 2023. Among these, the Government Green Bond Programme has issued bonds of various tenors denominated in different currencies including RMB, euro and USD. The programme has recently been expanded to cover sustainable projects. The bonds issuances have been well received by institutional and retail investors alike, and have taken tokenisation form for two recent tranches.

     Two points specifically on transition finance:

(a) First, we published the first edition of the Hong Kong Taxonomy for Sustainable Finance in May this year to provide a clear set of definitions or classification of green activities for application by the industry in their green transition journey. It aligns with the two mainstream taxonomies of the Mainland and the European Union, and currently encompasses 12 economic activities under four sectors of power generation, transportation, construction, and water and waste management. The Taxonomy is now under the next phase development, where the scope of sectors and economic activities will be expanded to cover transition activities as well. The Hong Kong Monetary Authority (HKMA) plans to conduct a public consultation on the updated taxonomy prototype in the first half of 2025.

(b) Second, to cater for the increasingly significant need for transition finance in the region, we have expanded the scope of the Green and Sustainable Finance Grant Scheme to cover transition bonds and loans, helping to incentivise relevant industries in the region to make use of Hong Kong’s transition financing platform towards the decarbonisation mission. Since its inception in 2021 to mid-October this year, we have granted around $280 million to 470 green and sustainable debt instruments under the Scheme.

        Moving into another subject which is important to today’s topic, data clarity and transparency is often cited as one of the primary challenges hindering the development of transition finance. Hong Kong operates a highly open and internationalised market aligning with international standards and best practices. We stand ready to promote the adoption of data transparency in the market to facilitate and encourage more transition financing activities.

     Earlier this month, for example, the Hong Kong Code of Conduct for ESG Ratings and Data Products Providers was published by an industry working group sponsored by the SFC. Its aim is to establish and promote a globally consistent, interoperable, and proportionate voluntary code for providers offering ESG ratings and data products and services in Hong Kong. The Code was modelled on international best practices recommended by the International Organization of Securities Commissions (IOSCO). It is intended to enhance transparency of methodologies for ESG ratings and data products and improve standards generally across the market with a view to combating greenwashing and instilling integrity in the growing green and sustainable finance ecosystem.

     Another important measure on standards is our commitment to launch a roadmap on the full adoption of the ISSB Standards on sustainability disclosure within this year, leading Hong Kong to be among the first jurisdictions in the world to align its local requirements with ISSB Standards. The Hong Kong Institute of Certified Public Accountants has already issued the exposure drafts for consultation. I am sure they will come up with final Hong Kong standards aligning with the ISSB Standards soon. I know that the afternoon session of this Conference has scheduled a dedicated panel to dive deep into this subject. I will spare the detail here.

     Blended finance is an evolving concept and is quickly developing. An OECD (Organisation for Economic Co-operation and Development) report defines it as a combination of official development finance, private philanthropic funds and commercial finance where the principal purpose is commercial rather than development. I look forward to the Panel’s discussion on this. I would note here that as Asia’s primary asset and wealth management hub for international investors, Hong Kong is well placed to harness the finance power of the public and private sectors.

     On the home front, the HKMA launched last week the Sustainable Finance Action Agenda, setting out its goals and actions to be taken to further support green and sustainable financing needs in Asia and globally. Under the Agenda, one of the action areas is investment in a sustainable future, under which the HKMA aims to achieve net-zero emissions for the investment portfolio of the Exchange Fund by 2050 through continuing to actively expand the scope and variety of its sustainable investments, particularly those supporting the theme of climate transition across the public and private markets. The Exchange Fund will also deepen its focus on transition opportunities and mobilise stakeholders to actively support this effort through stewardship and engagement.

     Another emerging source of funds to support sustainable initiatives comes from philanthropy and impact investing of family offices. In Hong Kong, the philanthropic landscape is underscored by the existence of more than 10 000 charities that have been established in Hong Kong, reflecting a diverse and robust ecosystem of giving. Meanwhile, the global impact investing market, valued at about US$1.6 trillion, attaches growing recognition of the need to address critical challenges such as climate change. We have seen growing interest from family offices in impact investing as they do not just allocate funds for charitable purposes but also seek financial returns and measurable social outcomes. To this end, we will soon consult the industry on proposals to enhance the tax arrangements for funds and single family offices, including expanding the definition of “fund” to cover pension fund and endowment fund, and include emission derivatives and emission allowance as eligible exemption items.

     Added to this, Hong Kong is exceptionally well placed to serve the sustainable initiatives and transition needs of entities on the Mainland. Various Mainland local governments including Shenzhen, Hainan Province and Guangdong Province have issued offshore RMB local government bonds including green, blue, sustainability and social bonds in Hong Kong over the past few years. And Core Climate, our carbon credit marketplace, is exploring co-operation initiatives with its Mainland counterparts. We will certainly contribute our best to the country’s drive to achieve the goal of peaking carbon emissions by 2030 and reaching net zero by 2060.

     Ladies and gentlemen, all these being said, a lot remains to be done. Hong Kong takes our 2050 net zero commitment very seriously and has set up a high-level steering committee comprising policy bureaux with both environmental protection and financial services policy responsibilities, and all financial regulators to co-ordinate and take forward relevant initiatives. Our Financial Secretary is also chairing the Green Technology and Finance Development Committee. We look forward to having your advice and participation in the journey. On this note, I wish you all a rewarding day at the Conference today. Thank you.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI: Quadient secures €25 million Schuldschein facility from EBRD to finance R&D programs in Czech Republic
Source: GlobeNewswire (MIL-OSI)

Quadient secures €25 million Schuldschein facility from EBRD
to finance R&D programs in Czech Republic

Paris, October 30, 2024

Quadient S.A. (Euronext Paris: QDT), a global automation platform powering secure and sustainable business connections, today announces that it has secured a new €25 million Schuldschein facility from the European Bank of Reconstruction and Development (EBRD) to finance R&D programs in Czech Republic.

The Schuldschein loan from the EBRD is for a total nominal amount of €25 million with maturities spread equally between 5 and 7 years. The new credit facility aims at financing R&D programs at Quadient’s state of the art R&D center in Hradec Králové, Czech Republic.

Quadient’s R&D center in Czech Republic is the Company’s hub for its Digital automation platform development. It currently hosts around 400 employees, including software developers, testers, IT consultants, trainers and UX designers. The R&D team is responsible for driving continuous improvements to Quadient software offerings and developing innovative Digital solutions, by leveraging advanced technologies such as Artificial Intelligence, complex frameworks, and programming languages. A strong focus is placed on fostering continuous learning and collaboration by partnering with local schools and universities to train future engineers and developers. Notably, Quadient regularly collaborates with the University of Hradec Králové, offering classes, organizing IT events, and hosting BarCamps on new technologies.

In addition to the headquarters in Hradec Králové, Quadient also has offices established in Olomouc and Ostrava in the Czech Republic. This strong presence in the Královéhradecký region is well recognized locally as Quadient Czech Republic has been named Employer of the Year for several consecutive years and recently achieved 4^th place nationally.

Laurent du Passage, Chief Financial Officer of Quadient, said: “We are pleased to be partnering with the EBRD to strengthen our R&D activities in Czech Republic. Our R&D center in Hradec Králové is central to Quadient’s Digital strategy and plays a key role in the local community. We are excited to be able to further enhance our development capabilities while maintaining our leadership in the field of innovation and Artificial Intelligence, continuing to offer best in class solutions to our customers.”

In the full-year 2023, Quadient dedicated a total of €63.2 million to R&D spending across its three automation platforms, representing 5.9% of its Group revenue.

About Quadient®

Quadient is a global automation platform provider powering secure and sustainable business connections through digital and physical channels. Quadient supports businesses of all sizes in their digital transformation and growth journey, unlocking operational efficiency and creating meaningful customer experiences. Listed in compartment B of Euronext Paris (QDT) and part of the CAC® Mid & Small and EnterNext® Tech 40 indices, Quadient shares are eligible for PEA-PME investing.

For more information about Quadient, visit https://invest.quadient.com/en/

Contacts

About EBRD

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, well governed, green, inclusive, resilient and integrated.

Attachment
- Quadient EBRD loan vGB
The MIL Network –
January 25, 2025

MIL-OSI: Redemption of 2024 Zero Dividend Preference Shares and Notice of Cancellation

Source: GlobeNewswire (MIL-OSI)

THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, ITALY, DENMARK, JAPAN, THE UNITED STATES, OR TO ANY NATIONAL OF SUCH JURISDICTIONS

Redemption of 2024 Zero Dividend Preference Shares and Notice of Cancellation

30 October 2024

NB Private Equity Partners (NBPE), the $1.3bn¹, FTSE 250, listed private equity investment company managed by Neuberger Berman, today announces that the Company will request the admission to and trading of the 2024 ZDPs on the Specialist Fund Segment of the Main Market of London Stock Exchange plc be cancelled. The cancellation will follow the redemption of the 2024 Zero Dividend Preference Shares (“2024 ZDPs”), with effect from 12:00 pm on 30 October 2024.

As previously announced, the maturity date of the 2024 ZDPs is 30 October 2024 and the final capital entitlement is 130.63 pence per share.

Cheques are expected to be mailed to holders on 30 October 2024.

CREST accounts are expected to be credited on 30 October 2024.

For further information, please contact:

NBPE Investor Relations +44 (0) 20 3214 9002
Luke Mason NBPrivateMarketsIR@nb.com

Kaso Legg Communications +44 (0)20 3882 6644

Charles Gorman nbpe@kl-communications.com
Luke Dampier
Charlotte Francis

About NB Private Equity Partners Limited
NBPE invests in direct private equity investments alongside market leading private equity firms globally. NB Alternatives Advisers LLC (the “Investment Manager”), an indirect wholly owned subsidiary of Neuberger Berman Group LLC, is responsible for sourcing, execution and management of NBPE. The vast majority of direct investments are made with no management fee / no carried interest payable to third-party GPs, offering greater fee efficiency than other listed private equity companies. NBPE seeks capital appreciation through growth in net asset value over time while paying a bi-annual dividend.

LEI number: 213800UJH93NH8IOFQ77

About Neuberger Berman
Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages $509 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman’s investment philosophy is founded on active management, fundamental research and engaged ownership. The PRI identified the firm as part of the Leader’s Group, a designation awarded to fewer than 1% of investment firms for excellence in environmental, social and governance practices. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last ten years

This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security. NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE has received the necessary consent of the Guernsey Financial Services Commission. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. This document is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of NBPE’s investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this document contains “forward-looking statements.” Actual events or results or the actual performance of NBPE may differ materially from those reflected or contemplated in such targets or forward-looking statements.

(firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of September 30, 2024.

¹Based on net asset value.

The MIL Network –

January 25, 2025

Category: Economy

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