Emissions Trading – Page 31

MIL-OSI: PDF Solutions® Announces Record 2024 Fourth Quarter and Full Year Total Revenues

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) — PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of comprehensive data solutions for the semiconductor and electronics ecosystem, today announced financial results for its fourth quarter and year ended December 31, 2024.

Financial Highlights of Fourth Quarter 2024

Record quarterly total revenues of $50.1 million, up 22% over last year’s comparable quarter
Record quarterly analytics revenue of $47.9 million, up 22% over last year’s comparable quarter
GAAP gross margin of 68% and non-GAAP gross margin of 72%
GAAP diluted earnings per share (EPS) of $0.01 and non-GAAP diluted EPS of $0.25

Financial Highlights of Full Year 2024

Record full year total revenues of $179.5 million, up 8% over last year
Record full year analytics revenue of $169.3 million, up 11% over last year
GAAP gross margin of 70% and non-GAAP gross margin of 74%
GAAP diluted EPS of $0.10 and non-GAAP diluted EPS of $0.84
Backlog of $221.4 million as of December 31, 2024

Total revenues for the fourth quarter of 2024 were $50.1 million, compared to $46.4 million for the third quarter of 2024 and $41.1 million for the fourth quarter of 2023. Analytics revenue for the fourth quarter of 2024 was $47.9 million, compared to $44.8 million for the third quarter of 2024 and $39.1 million for the fourth quarter of 2023. Integrated Yield Ramp revenue for the fourth quarter of 2024 was $2.2 million, compared to $1.7 million for the third quarter of 2024 and $2.0 million for the fourth quarter of 2023. Total revenues for the full year 2024 and 2023 were $179.5 million and $165.8 million, respectively.

GAAP gross margin for the fourth quarter of 2024 was 68%, compared to 73% for the third quarter of 2024 and 68% for the fourth quarter of 2023. GAAP gross margin for the full year 2024 and 2023 was 70% and 69%, respectively.

Non-GAAP gross margin for the fourth quarter of 2024 was 72%, compared to 77% for the third quarter of 2024 and 72% for the fourth quarter of 2023. Non-GAAP gross margin for the full year 2024 and 2023 was 74% and 73%, respectively.

On a GAAP basis, net income for the fourth quarter of 2024 was $0.5 million, or $0.01 per diluted share, compared to net income of $2.2 million, or $0.06 per diluted share, for the third quarter of 2024, and net income of $0.9 million, or $0.02 per diluted share, for the fourth quarter of 2023. On a GAAP basis, net income for the full year 2024 was $4.1 million, or $0.10 per diluted share, compared to net income of $3.1 million, or $0.08 per diluted share, for the full year 2023.

Non-GAAP net income for the fourth quarter of 2024 was $9.9 million, or $0.25 per diluted share, compared to non-GAAP net income of $9.9 million, or $0.25 per diluted share, for the third quarter of 2024, and non-GAAP net income of $5.7 million, or $0.15 per diluted share, for the fourth quarter of 2023. Non-GAAP net income for the full year 2024 was $32.6 million, or $0.84 per diluted share, compared to non-GAAP net income of $28.5 million, or $0.73 per diluted share, for the full year 2023.

Cash, cash equivalents and short-term investments as of December 31, 2024, were $114.9 million.

Financial Outlook

“We are pleased with the progress we are making with our customers. During the fourth quarter of 2024, we completed an ongoing manufacturing evaluation of an eProbe machine earlier than the customer’s schedule, resulting in the sale to this new leading edge customer, booked multiple Exensio deals, and saw growth in our Cimetrix connectivity business from runtime licenses. In 2025, we expect our full year revenues to grow at a rate approaching 15% year over year,” said John Kibarian, CEO and President.

Conference Call

As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today. To participate on the live call, analysts and investors should pre-register at: https://register.vevent.com/register/BI1b05df01d9534a648d4fd2cd753be31c. Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. A copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions’ management when discussing financial results with investors and analysts, will also be available on PDF Solutions’ website at http://www.pdf.com/press-releases following the date of this release.

Fourth Quarter and Full Year 2024 Financial Commentary Available Online

A Management Report reviewing the Company’s fourth quarter and full year 2024 financial results will be furnished to the Securities and Exchange Commission on Form 8-K and published on the Company’s website at http://ir.pdf.com/financial-reports. Analysts and investors are encouraged to review this commentary prior to participating in the conference call.

Information Regarding Use of Non-GAAP Financial Measures

In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP gross profit and margin exclude stock-based compensation expense and the amortization of acquired technology under costs of revenues. Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, tax and accounting service-related costs, loss on damaged equipment in-transit, net of recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. These non-GAAP financial measures are used by management internally to measure the Company’s profitability and performance. PDF Solutions’ management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company’s ongoing operations in light of the fact that none of these categories of expense and income has a current effect on the future uses of cash (with the exception of expenses related to certain legal proceedings and non-recurring legal, tax and accounting services) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may differ from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF Solutions has included these non-GAAP measures to give investors an opportunity to see the Company’s financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company’s condensed consolidated financial statements presented below.

Forward-Looking Statements

This press release and the planned conference call include forward-looking statements regarding the Company’s future expected business performance and financial results, including expectations about total revenue growth for 2025 and other statements identified by words such as “could,” “expects,” “intends,” “may,” “plans,” “potential,” “should,” “will,” “would,” or similar expressions and the negatives of those terms, that are subject to future events and circumstances. Other than statements of historical fact, all statements contained in this press release and the planned conference call are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: the effectiveness of the Company’s business and technology strategies; current semiconductor industry trends and competition; rates of adoption of the Company’s solutions by new and existing customers; project milestones or delays and performance criteria achieved; cost and schedule of new product development and investments in research and development; the continuing impact of macroeconomic conditions, including inflation, changing interest rates and tariffs, the evolving trade regulatory environment and geopolitical tensions, and other trends on the semiconductor industry, the Company’s customers, operations, and supply and demand for its products; supply chain disruptions; the success of the Company’s strategic growth opportunities and partnerships; recent and future acquisitions, strategic alliances and relationships and the Company’s ability to successfully integrate acquired businesses and technologies; whether the Company can successfully convert backlog into revenue; customers’ production volumes under contracts that provide Gainshare; the sufficiency of the Company’s cash resources and anticipated funds from operations; the Company’s ability to obtain additional financing if needed and its ability to use support and updates for certain open-source software; and other risks set forth in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made in this press release and the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements. The Company has not filed its Annual Report on Form 10-K for the year ended December 31, 2024. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Annual Report on Form 10-K.

About PDF Solutions

PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystem to improve manufacturing yield, product quality and operational efficiency leading to increased profitability. The Company’s products and services are used by Fortune 500 companies across the semiconductor and electronics ecosystem to achieve smart manufacturing goals by connecting and controlling manufacturing equipment, collecting data generated during manufacturing and test operations, and using advanced analytics and machine learning models to enable profitable, high-volume manufacturing.

Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com.

PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries.

Company Contacts:
Adnan Raza		Sonia Segovia
Chief Financial Officer		Investor Relations
Tel: (408) 516-0237		Tel: (408) 938-6491
Email: adnan.raza@pdf.com		Email: sonia.segovia@pdf.com

PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)


	December 31,
	2024			2023

ASSETS
Current assets:
Cash and cash equivalents	$	90,594		$	98,978
Short-term investments		24,291			36,544
Accounts receivable, net		73,649			44,904
Prepaid expenses and other current assets		17,445			17,422
Total current assets		205,979			197,848
Property and equipment, net		48,465			37,338
Operating lease right-of-use assets, net		4,029			4,926
Goodwill		14,953			15,029
Intangible assets, net		12,307			15,620
Deferred tax assets, net		43			157
Other non-current assets		29,513			19,218
Total assets	$	315,289		$	290,136

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,255		$	2,561
Accrued compensation and related benefits		16,855			14,800
Accrued and other current liabilities		8,752			4,633
Operating lease liabilities ‒ current portion		1,675			1,529
Deferred revenues ‒ current portion		24,930			25,750
Billings in excess of recognized revenues		75			1,570
Total current liabilities		60,542			50,843
Long-term income taxes		2,915			2,972
Non-current operating lease liabilities		3,504			4,657
Other non-current liabilities		2,291			2,718
Total liabilities		69,252			61,190

Stockholders’ equity:
Common stock and additional paid-in capital		502,908			473,301
Treasury stock, at cost		(159,352	)		(143,923	)
Accumulated deficit		(93,988	)		(98,045	)
Accumulated other comprehensive loss		(3,531	)		(2,387	)
Total stockholders’ equity		246,037			228,946
Total liabilities and stockholders’ equity	$	315,289		$	290,136

PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)


	Three months ended										Year ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Revenues:
Analytics		$	47,926		$	44,750		$	39,128		$	169,253		$	152,085
Integrated yield ramp			2,159			1,659			1,997			10,212			13,750
Total revenues			50,085			46,409			41,125			179,465			165,835

Costs and Expenses:
Costs of revenues			15,901			12,484			13,194			54,144			51,749
Research and development			14,417			13,516			12,308			53,566			50,736
Selling, general, and administrative			19,073			18,094			16,194			69,924			62,216
Amortization of acquired intangible assets			182			196			306			896			1,285
Interest and other expense (income), net			(962	)		(1,511	)		(1,020	)		(5,644	)		(5,020	)
Income before income tax benefit (expense)			1,474			3,630			143			6,579			4,869
Income tax benefit (expense)			(935	)		(1,424	)		744			(2,522	)		(1,764	)
Net income		$	539		$	2,206		$	887		$	4,057		$	3,105

Net income per share:
Basic		$	0.01		$	0.06		$	0.02		$	0.11		$	0.08
Diluted		$	0.01		$	0.06		$	0.02		$	0.10		$	0.08

Weighted average common shares used to calculate net income per share:
Basic			38,783			38,710			38,269			38,602			38,015
Diluted			39,104			39,105			38,814			39,047			38,937

PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED)
(In thousands)


	Three months ended										Year ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

GAAP
Total revenues		$	50,085		$	46,409		$	41,125		$	179,465		$	165,835
Costs of revenues			15,901			12,484			13,194			54,144			51,749
GAAP gross profit		$	34,184		$	33,925		$	27,931		$	125,321		$	114,086
GAAP gross margin			68	%		73	%		68	%		70	%		69	%

Non-GAAP
GAAP gross profit		$	34,184		$	33,925		$	27,931		$	125,321		$	114,086
Adjustments to reconcile GAAP to non-GAAP gross margin:
Stock-based compensation expense			1,336			1,366			1,147			5,087			4,169
Amortization of acquired technology			583			584			586			2,335			2,266
Non-GAAP gross profit		$	36,103		$	35,875		$	29,664		$	132,743		$	120,521
Non-GAAP gross margin			72	%		77	%		72	%		74	%		73	%

PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
(In thousands, except per share amounts)


	Three months ended									Year ended
		December 31,		September 30,			December 31,			December 31,			December 31,
		2024		2024			2023			2024			2023

GAAP net income		$	539	$	2,206		$	887		$	4,057		$	3,105
Adjustments to reconcile GAAP net income to non-GAAP net income:
Stock-based compensation expense			6,507		6,730			5,923			25,047			21,484
Amortization of acquired technology under costs of revenues			583		584			586			2,335			2,266
Amortization of other acquired intangible assets			182		196			306			896			1,285
Expenses for certain legal proceedings (1)			69		—			75			69			2,600
Non-recurring legal, tax and accounting service-related costs			940		—			—			940			209
Loss on damaged equipment in-transit, net of (recovery) from previously written-off property and equipment			663		(55	)		—			608			(105	)
Tax impact of valuation allowance for deferred tax assets and reconciling items (2)			375		262			(2,060	)		(1,335	)		(2,374	)
Non-GAAP net income		$	9,858	$	9,923		$	5,717		$	32,617		$	28,470

GAAP net income per diluted share		$	0.01	$	0.06		$	0.02		$	0.10		$	0.08
Non-GAAP net income per diluted share		$	0.25	$	0.25		$	0.15		$	0.84		$	0.73

Weighted average common shares used in GAAP net income per diluted share calculation			39,104		39,105			38,814			39,047			38,937
Weighted average common shares used in non-GAAP net income per diluted share calculation			39,104		39,105			38,814			39,047			38,937

(1) Represents legal costs and expenses related to certain litigation and an arbitration proceeding which are expected to continue until these matters are resolved.
(2) The difference between the GAAP and non-GAAP income tax provisions is primarily due to the valuation allowance on a GAAP basis and non-GAAP adjustments. For example, on a GAAP basis, the Company does not receive a deferred tax benefit for foreign tax credits or research and development credits after the valuation allowance. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense is not calculated with a full U.S. federal or state valuation allowance due to the Company’s cumulative non-GAAP income and management’s conclusion that it is more likely than not to utilize its net deferred tax assets (DTAs). Each reporting period, management evaluates the need for a valuation allowance and may place a valuation allowance against its U.S. net DTAs on a non-GAAP basis if it concludes it is more likely than not that it will not be able to utilize some or all of its U.S. DTAs on a non-GAAP basis.

The MIL Network –

February 14, 2025

MIL-OSI: Prestige Wealth Inc. Announces First Half of Fiscal Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

HONG KONG, Feb. 13, 2025 (GLOBE NEWSWIRE) — Prestige Wealth Inc. (Nasdaq: PWM) (the “Company” or “Prestige Wealth”), a wealth management and asset management services provider based in Hong Kong, today announced its unaudited financial results for the six months ended March 31, 2024.

Mr. Kazuho Komoda, the Company’s Chief Executive Officer, commented, “Reflecting upon the first half of fiscal year 2024, we made many strategic layouts including exploring the path of using technology method to scale up wealth management business, preparing for expanding business areas and actively seeking talents for business upgrade. Meanwhile, we also maintain stable growth in our existing business and garnered an increase of our total revenues from compared to the same period of fiscal year 2023.”

Mr. Komoda continued, “Benefited from our efforts and status of listed company, we have access to better business resources, advanced technology, and financing capabilities to hedge against negative macroeconomic impacts. In fact, we have also made many significant strategic initiatives in fiscal year 2024, including acquisitions and post IPO financing. This presents us with immense opportunities, and we want to assure our clients and shareholders that we are in prime position to harness these prospects. We will continue to strive to create value for all shareholders.”

First Half of Fiscal Year 2024 Financial Results

	For the Six Months Ended March 31,
	2024		2023		Change		Change
	USD		USD		USD		%
	(Unaudited)		(Unaudited)
Selected Unaudited Interim Condensed Consolidated Statements of Income Data:
Net revenues	497,629		312,964		184,665		59.01
Operation cost and expenses	(1,105,629	)	(311,871	)	793,758		254.51
(Loss) Income from operations	(608,000	)	1,093		(609,093	)	(55,726.72	)
Other income	118,580		3,335		115,245		(3,455.59	)
(Loss) Income before income taxes	(489,420	)	4,428		(493,848	)	(11,152.85	)
Income taxes (expenses) benefits	(14,009	)	21,132		(35,141	)	(166.29	)
Net (loss) income	(503,429	)	25,560		(528,989	)	(2,069.60	)
(Loss) Earnings per ordinary share – basic and diluted	(0.055	)	0.003		(0.058	)	(1,933.33	)

Net Revenues

Net revenues were $497,629 in the six months ended March 31, 2024, compared to $312,964 in the six months ended March 31, 2023. The increase was primarily due to increase in net revenue from asset management services, partially offset by the decrease in net revenue from wealth management services.

Net revenue from wealth management services was $11,685 in the six months ended March 31, 2024, compared to $74,875 in the six months ended March 31, 2023. The decrease was primarily due to the decrease number of cases of referrals.
Net revenue from asset management services was $485,944 in the six months ended March 31, 2024, increased from $238,089 in the six months ended March 31, 2023. The increase was primarily due to the Company provided asset management related advisory services to new client.

Operating Costs and Expenses

Operating costs and expenses are primarily comprised of selling, general and administrative expenses. Selling, general and administrative expenses were $1,105,629 in the six months ended March 31, 2024, compared to $311,871 in the six months ended March 31, 2023. The increase in selling, general and administrative expenses was mainly due to the increases in wages & salaries from senior management, depreciation of right-of-use assets and audit fee.

(Loss) Income from operations

Loss from operations was $608,000 in the six months ended March 31, 2024, compared to an income from operations of $1,093 in the six months ended March 31, 2023.

Income Tax (Expenses) Benefits

Income tax expenses were $14,009 in the six months ended March 31, 2024, compared to an income tax benefit of $21,132 in the six months ended March 31, 2023, primarily because the Company had net taxable profits from one of its subsidiaries.

Net (Loss) Income

Net loss was $503,429 in the six months ended March 31, 2024, compared to a net income of $25,560 in the six months ended March 31, 2023.

Basic and Diluted Earnings per Share

Basic and diluted loss per share was $0.055 in the six months ended March 31, 2024, compared to basic and diluted earnings per share $0.003 in the six months ended March 31, 2023.

Balance Sheet

As of March 31, 2024, the Company had cash and cash equivalents of $294,548, compared to $431,307 as of September 30, 2023.

Cash Flow

Net cash used in operating activities was $2,995,580 in the six months ended March 31, 2024, compared to net cash provided by operating activities of $454,660 in the six months ended March 31, 2023, mainly due to increase in prepayment.

Net cash used in investing activities was $2,862,641 in the six months ended March 31, 2024, compared to net cash provided by investing activities of $1,414,297 in the six months ended March 31, 2023, due to decease in loan and interest repayment from a related party.

Net cash used in financing activities was $nil in the six months ended March 31, 2024, compared to net cash used by investing activities of $545,499 in the six months ended March 31, 2023, due to decease in deferred offering cost.

Recent Accounting Pronouncements

On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the CODM. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023, with early adoption permitted. The Group is currently evaluating the impact of adopting the standard and does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories and additional reconciling items that meet quantitative thresholds and expands disclosures for income taxes paid by requiring disaggregation by certain jurisdictions. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Group is currently evaluating the impact of adopting the standard and does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows.

Recent Developments

On November 4, 2024, the Company completed its acquisition of all shares of SPW Global Inc., a company incorporated under the laws of the British Virgin Islands, which in turn wholly owns Wealth AI PTE LTD. or Wealth AI, a company incorporated under the laws of Republic of Singapore. Wealth AI is a company based in Singapore that offers personalized, cost-effective wealth management solutions using artificial intelligence. Founded by AI experts from top technology companies in 2022, Wealth AI is dedicated to the transformative potential of artificial intelligence in wealth management.

On December 16, 2024, the Company completed its acquisition of all shares of InnoSphere Tech Inc. (“InnoSphere Tech”), a company incorporated under the laws of the British Virgin Islands. InnoSphere Tech is a technology company that leverages its advantages in web scraping technology to collect data on finance, wealth management, and related industries according to international standards. Through the accumulation and processing of large amounts of data, its system can train a specialized large model tailored for the wealth management industry, providing robust foundational support to clients in the financial sector that surpasses traditional general-purpose large models.

On December 16, 2024, the Company also completed its acquisition of all shares of Tokyo Bay Management Inc. (“Tokyo Bay”), a company incorporated under the laws of the British Virgin Islands. Tokyo Bay is a company based in Tokyo, Japan. Founded by experienced professionals, the Tokyo Bay team has accumulated extensive premium client resources and local market knowledge over the past years, providing wealth management services, family affairs services, lifestyle management services and related value-added services to high-net-worth clients in Japan.

About Prestige Wealth Inc.

Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong, assisting its clients in identifying and purchasing well-matched wealth management products and global asset management products. With a focus on quality service, the Company has retained a loyal customer base consisting of high-net-worth and ultra-high-net-worth clients in Asia. Through the Company’s wealth management service, it introduces clients to customized wealth management products and provides them with tailored value-added services. The Company provides asset management services via investment funds that it manages and also provides discretionary account management services and asset management-related advisory services to clients. For more information, please visit the Company’s website: http://ir.prestigewm.hk/index.html.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

PRESTIGE WEALTH INC. CONDENSED CONSOLIDATED BALANCE SHEETS
	March 31, 2024			September 30, 2023
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	294,548		$	431,307
Restricted cash		200,000			200,000
Accounts receivable		350,826			273,257
Contract asset		3,002			91,565
Note Receivables		1,037,199			3,755,794
Amounts due from related parties		1,619,590			1,592,593
Right-of-use assets, current		213,978			213,814
Income tax receivable		45,783			29,279
Prepaid expenses and other assets		2,765,857			66,484
Total current assets		6,530,783			6,654,093

NON-CURRENT ASSETS
Right-of-use asset, non-current	$	42,247		$	140,898
Prepaid expenses and other assets		68,672			68,620
Total non-current assets	$	110,919		$	209,518
Total assets	$	6,641,702		$	6,863,611

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Income tax payable	$	37,345		$	27,648
Lease liability, current		237,535			220,101
Amounts due to related parties		190,844			—
Deferred tax liabilities		11,858			14,415
Other payables and accrued liabilities		435,228			257,906
Total current liabilities	$	912,810		$	520,070

NON-CURRENT LIABILITIES
Lease liability, non-current	$	49,095		$	160,996
Total non-current liabilities	$	49,095		$	160,996
Total liabilities	$	961,905		$	681,066

Shareholders’ equity
Ordinary share ($0.000625 par value, 1,600,000,000 shares authorized, 9,150,000 shares issued and outstanding as of March 31, 2024; $0.000625 par value, 160,000,000 shares authorized, 9,150,000 shares issued and outstanding as of September 30, 2023)*	$	5,719		$	5,719
Additional paid in capital		2,570,664			2,570,664
Retained earnings		3,139,565			3,642,994
Accumulated other comprehensive loss		(36,151	)		(36,832	)
Total shareholders’ equity	$	5,679,797		$	6,182,545
Total liabilities and shareholders’ equity	$	6,641,702		$	6,863,611

* The shares are presented on a retroactive basis to reflect the Company’s share subdivision on July 15, 2022.

PRESTIGE WEALTH INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
	For the six months ended March 31,
	2024			2023
	(Unaudited)			(Unaudited)
Net revenue
Wealth management services
Referral fees	$	11,685		$	74,875

Asset management services
Advisory service fees		459,974			212,486
Management fees		25,970			25,603
Subtotal		485,944			238,089
Total net revenue		497,629			312,964

Gross Margin		497,629			312,964

Operation cost and expenses
Selling, general and administrative expenses		1,105,629			311,871
Total operation cost and expenses		1,105,629			311,871

(Loss) Income from operations		(608,000	)		1,093

Other income		118,580			3,335

(Loss) Income before income taxes		(489,420	)		4,428
Income taxes (expenses) benefits		(14,009	)		21,132

Net (loss) income	$	(503,429	)	$	25,560

Other comprehensive (loss) income
Foreign currency translation adjustment		681			6,016
Total comprehensive (loss) income	$	(502,748	)	$	31,576

(Loss) Earnings per ordinary share
Basic and diluted	$	(0.055	)	$	0.003

Weighted average number of ordinary shares outstanding*
Basic and diluted		9,150,000			8,000,000

The MIL Network –

February 14, 2025

MIL-OSI: Applied Materials Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Revenue $7.17 billion, up 7 percent year over year
GAAP gross margin 48.8 percent and non-GAAP gross margin 48.9 percent
GAAP operating margin 30.4 percent and non-GAAP operating margin 30.6 percent
GAAP EPS $1.45 and non-GAAP EPS $2.38, down 40 percent and up 12 percent year over year, respectively
Generated $925 million in cash from operations and distributed $1.64 billion to shareholders including $1.32 billion in share repurchases and $326 million in dividends

SANTA CLARA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) — Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its first quarter ended Jan. 26, 2025.

“The industry drive to accelerate the development of advanced compute and more sophisticated AI is gaining momentum,” said Gary Dickerson, President and CEO. “Applied Materials is enabling the major device architecture inflections critical for energy-efficient AI and our focus on high-velocity co-innovation creates unique collaboration opportunities with our customers and partners, positioning Applied for continued growth and outperformance in the years to come.”

“We delivered strong financial performance in the first fiscal quarter, with record revenue, gross margin expansion and robust shareholder distributions,” said Brice Hill, Senior Vice President and CFO. “ For the second fiscal quarter, we are encouraged by the trends supporting continued customer investments to enable leading-edge technology inflections, while also taking into account export control related headwinds.”

Results Summary

	Q1 FY2025			Q1 FY2024			Change
	(In millions, except per share amounts and percentages)
Net revenue	$	7,166		$	6,707		7%
Gross margin		48.8	%		47.8	%	1.0 point
Operating margin		30.4	%		29.3	%	1.1 points
Net income	$	1,185		$	2,019		(41)%
Diluted earnings per share	$	1.45		$	2.41		(40)%
Non-GAAP Results
Non-GAAP gross margin		48.9	%		47.9	%	1.0 point
Non-GAAP operating margin		30.6	%		29.5	%	1.1 points
Non-GAAP net income	$	1,946		$	1,782		9%
Non-GAAP diluted EPS	$	2.38		$	2.13		12%
Non-GAAP free cash flow	$	544		$	2,096		(74)%

A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section.

Impact of Singapore Tax Incentives

As a result of new tax incentive agreements in Singapore in fiscal 2025, the company recorded a $644 million, or $0.79 per diluted share, income tax expense due to the remeasurement of deferred tax assets in Singapore.

Business Outlook

Applied’s total net revenue, non-GAAP gross margin and non-GAAP diluted EPS for the second quarter of fiscal 2025, including the estimated impact of recently announced U.S. export regulations, are expected to be approximately as follows:

	Q2 FY2025
(In millions, except percentage and per share amounts)
Total net revenue	$	7,100		+/-	$	400
Non-GAAP gross margin		48.4	%
Non-GAAP diluted EPS	$	2.30		+/-	$	0.18

This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and a gain on asset sale of $0.05 per share, and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.

First Quarter Reportable Segment Information

*Semiconductor Systems*	Q1 FY2025			Q1 FY2024
	(In millions, except percentages)
Net revenue	$	5,356		$	4,909
Foundry, logic and other		68	%		62	%
DRAM		28	%		34	%
Flash memory		4	%		4	%
Operating income	$	1,986		$	1,744
Operating margin		37.1	%		35.5	%
Non-GAAP Results
Non-GAAP operating income	$	1,998		$	1,754
Non-GAAP operating margin		37.3	%		35.7	%

*Applied Global Services*	Q1 FY2025			Q1 FY2024
	(In millions, except percentages)
Net revenue	$	1,594		$	1,476
Operating income	$	447		$	417
Operating margin		28.0	%		28.3	%
Non-GAAP Results
Non-GAAP operating income	$	447		$	417
Non-GAAP operating margin		28.0	%		28.3	%

*Display*	Q1 FY2025			Q1 FY2024
	(In millions, except percentages)
Net revenue	$	183		$	244
Operating income	$	14		$	25
Operating margin		7.7	%		10.2	%
Non-GAAP Results
Non-GAAP operating income	$	14		$	25
Non-GAAP operating margin		7.7	%		10.2	%

*Corporate and Other*	Q1 FY2025			Q1 FY2024
	(In millions)
Unallocated net revenue	$	33		$	78
Unallocated cost of products sold and expenses		(305	)		(297	)
Total	$	(272	)	$	(219	)

Use of Non-GAAP Financial Measures

Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied’s ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Webcast Information

Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at https://ir.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the second quarter of fiscal 2025 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; the implementation of additional export regulations and license requirements and their interpretation, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies and our ability to obtain licenses or authorizations on a timely basis, if at all; imposition of new or increases in tariffs and any retaliatory measures; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting our information systems or information contained in them, or affecting our operations, suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-K and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.

Investor Relations Contact:
Liz Morali (408) 986-7977
liz_morali@amat.com

Media Contact:
Ricky Gradwohl (408) 235-4676
ricky_gradwohl@amat.com


APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

	Three Months Ended
(In millions, except per share amounts)	January 26, 2025		January 28, 2024
Net revenue	$	7,166	$	6,707
Cost of products sold		3,670		3,503
Gross profit		3,496		3,204
Operating expenses:
Research, development and engineering		859		754
Marketing and selling		206		207
General and administrative		256		276
Total operating expenses		1,321		1,237
Income from operations		2,175		1,967
Interest expense		64		59
Interest and other income (expense), net		8		395
Income before income taxes		2,119		2,303
Provision for income taxes		934		284
Net income	$	1,185	$	2,019
Earnings per share:
Basic	$	1.46	$	2.43
Diluted	$	1.45	$	2.41
Weighted average number of shares:
Basic		814		831
Diluted		819		837


APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

(In millions)	January 26, 2025		October 27, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	6,264	$	8,022
Short-term investments		1,949		1,449
Accounts receivable, net		5,998		5,234
Inventories		5,501		5,421
Other current assets		982		1,094
Total current assets		20,694		21,220
Long-term investments		2,686		2,787
Property, plant and equipment, net		3,563		3,339
Goodwill		3,768		3,732
Purchased technology and other intangible assets, net		237		249
Deferred income taxes and other assets		2,390		3,082
Total assets	$	33,338	$	34,409
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	799	$	799
Accounts payable and accrued expenses		4,485		4,820
Contract liabilities		2,452		2,849
Total current liabilities		7,736		8,468
Long-term debt		5,461		5,460
Income taxes payable		684		670
Other liabilities		832		810
Total liabilities		14,713		15,408
Total stockholders’ equity		18,625		19,001
Total liabilities and stockholders’ equity	$	33,338	$	34,409


APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

	Three Months Ended
(In millions)	January 26, 2025			January 28, 2024
Cash flows from operating activities:
Net income	$	1,185		$	2,019
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization		105			91
Share-based compensation		195			170
Deferred income taxes		668			(72	)
Other		95			(235	)
Net change in operating assets and liabilities		(1,323	)		352
Cash provided by operating activities		925			2,325
Cash flows from investing activities:
Capital expenditures		(381	)		(229	)
Cash paid for acquisitions, net of cash acquired		(28	)		—
Proceeds from sales and maturities of investments		1,223			531
Purchases of investments		(1,711	)		(749	)
Cash used in investing activities		(897	)		(447	)
Cash flows from financing activities:
Proceeds from issuance of commercial paper		200			100
Repayments of commercial paper		(200	)		(100	)
Common stock repurchases		(1,318	)		(700	)
Tax withholding payments for vested equity awards		(142	)		(192	)
Payments of dividends to stockholders		(326	)		(266	)
Repayments of principal on finance leases		—			1
Cash used in financing activities		(1,786	)		(1,157	)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents		(1,758	)		721
Cash, cash equivalents and restricted cash equivalents—beginning of period		8,113			6,233
Cash, cash equivalents and restricted cash equivalents — end of period	$	6,355		$	6,954

Reconciliation of cash, cash equivalents, and restricted cash equivalents
Cash and cash equivalents	$	6,264		$	6,854
Restricted cash equivalents included in deferred income taxes and other assets		91			100
Total cash, cash equivalents, and restricted cash equivalents	$	6,355		$	6,954

Supplemental cash flow information:
Cash payments for income taxes	$	70		$	139
Cash refunds from income taxes	$	70		$	2
Cash payments for interest	$	52		$	34

Additional Information

	Q1 FY2025			Q1 FY2024
Net Revenue by Geography (In millions)
United States	$	917		$	759
% of Total		13	%		11	%
Europe	$	330		$	410
% of Total		4	%		6	%
Japan	$	540		$	565
% of Total		8	%		9	%
Korea	$	1,667		$	1,231
% of Total		23	%		18	%
Taiwan	$	1,183		$	559
% of Total		17	%		8	%
Southeast Asia	$	286		$	186
% of Total		4	%		3	%
China	$	2,243		$	2,997
% of Total		31	%		45	%

Employees(In thousands)
Regular Full Time		36.0			34.5


APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

	Three Months Ended
(In millions, except percentages)	January 26, 2025			January 28, 2024
Non-GAAP Gross Profit
GAAP reported gross profit	$	3,496		$	3,204
Certain items associated with acquisitions¹		7			7
Non-GAAP gross profit	$	3,503		$	3,211
Non-GAAP gross margin		48.9	%		47.9	%
Non-GAAP Operating Income
GAAP reported operating income	$	2,175		$	1,967
Certain items associated with acquisitions¹		12			11
Acquisition integration and deal costs		3			3
Non-GAAP operating income	$	2,190		$	1,981
Non-GAAP operating margin		30.6	%		29.5	%
Non-GAAP Net Income
GAAP reported net income	$	1,185		$	2,019
Certain items associated with acquisitions¹		12			11
Acquisition integration and deal costs		3			3
Realized loss (gain), dividends and impairments on strategic investments, net		(9	)		(1	)
Unrealized loss (gain) on strategic investments, net		106			(280	)
Income tax effect of share-based compensation²		(10	)		(26	)
Income tax effects related to intra-entity intangible asset transfers³		674			22
Resolution of prior years’ income tax filings and other tax items		(16	)		33
Income tax effect of non-GAAP adjustments⁴		1			1
Non-GAAP net income	$	1,946		$	1,782

1	These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.

2	GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis.

3	Amount for the three months ended January 26, 2025, included changes to income tax provision of $30 million from amortization of intangibles and a $644 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025.

4	Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes.


APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

	Three Months Ended
(In millions, except per share amounts)	January 26, 2025			January 28, 2024
Non-GAAP Earnings Per Diluted Share
GAAP reported earnings per diluted share	$	1.45		$	2.41
Certain items associated with acquisitions		0.01			0.01
Realized loss (gain), dividends and impairments on strategic investments, net		(0.01	)		—
Unrealized loss (gain) on strategic investments, net		0.13			(0.33	)
Income tax effect of share-based compensation		(0.01	)		(0.03	)
Income tax effects related to intra-entity intangible asset transfers¹		0.83			0.03
Resolution of prior years’ income tax filings and other tax items		(0.02	)		0.04
Non-GAAP earnings per diluted share	$	2.38		$	2.13
Weighted average number of diluted shares		819			837

1	Amount for the three months ended January 26, 2025, included changes to income tax provision of $0.04 per diluted share from amortization of intangibles and $0.79 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025.


APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

	Three Months Ended
(In millions, except percentages)	January 26, 2025			January 28, 2024
Semiconductor Systems Non-GAAP Operating Income
GAAP reported operating income	$	1,986		$	1,744
Certain items associated with acquisitions¹		12			10
Non-GAAP operating income	$	1,998		$	1,754
Non-GAAP operating margin		37.3	%		35.7	%
Applied Global Services Non-GAAP Operating Income
GAAP reported operating income	$	447		$	417
Non-GAAP operating income	$	447		$	417
Non-GAAP operating margin		28.0	%		28.3	%
Display Non-GAAP Operating Income
GAAP reported operating income	$	14		$	25
Non-GAAP operating income	$	14		$	25
Non-GAAP operating margin		7.7	%		10.2	%

1	These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.

Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.


APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE

	Three Months Ended
(In millions, except percentages)	January 26, 2025

GAAP provision for income taxes (a)	$	934
Income tax effect of share-based compensation		10
Income tax effects related to intra-entity intangible asset transfers		(674	)
Resolutions of prior years’ income tax filings and other tax items		16
Income tax effect of non-GAAP adjustments		(1	)
Non-GAAP provision for income taxes (b)	$	285

GAAP income before income taxes (c)	$	2,119
Certain items associated with acquisitions		12
Acquisition integration and deal costs		3
Realized loss (gain), dividends and impairments on strategic investments, net		(9	)
Unrealized loss (gain) on strategic investments, net		106
Non-GAAP income before income taxes (d)	$	2,231

GAAP effective income tax rate (a/c)		44.1	%

Non-GAAP effective income tax rate (b/d)		12.8	%


UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW

	Three Months Ended
(In millions)	January 26, 2025			January 28, 2024
Cash provided by operating activities	$	925		$	2,325
Capital expenditures		(381	)		(229	)
Non-GAAP free cash flow	$	544		$	2,096

The MIL Network –

February 14, 2025

MIL-OSI: iPower Reports Fiscal Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Fiscal Q2 Revenue up 14% to $19.1 Million

Achieves GAAP Profitability and Positive Cash Flow from Operations

RANCHO CUCAMONGA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) — iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven ecommerce services provider and online retailer, today announced its financial results for the fiscal second quarter ended December 31, 2024.

Fiscal Q2 2025 Results vs. Year-Ago Quarter

Total revenue increased 14% to $19.1 million.
Gross profit increased 15% to $8.4 million, with gross margin up 40 bps to 44.0%.
Net income attributable to iPower improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share.
As of December 31, 2024, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024.

Management Commentary

“We delivered strong results across all key financial metrics in our fiscal second quarter while further enhancing our SuperSuite platform,” said Lawrence Tan, CEO of iPower. “Throughout the quarter, we continued to optimize operations and strengthen our presence across both our established and emerging sales channels. We also remain focused on supply chain diversification by exploring new supplier relationships beyond our existing network, reinforcing our commitment to building a more resilient and adaptable infrastructure.”

“Our SuperSuite platform is gaining further momentum as we leverage our superior supply chain, warehousing and merchandising expertise to drive sales growth for partners with innovative product catalogs. Additionally, we are making steady progress with our recently launched SaaS platform, refining its capabilities to improve supplier collaboration, streamline operations, and better align partners with evolving market demands. With a strong pipeline of prospective partners, we are well-positioned to capitalize on the growing demand for SuperSuite as we bolster our comprehensive service offerings.”

iPower CFO, Kevin Vassily, added, “Our ongoing efforts to optimize our cost structure have delivered meaningful results as we continue to drive gross margin expansion and operating leverage in our business. We have also officially shuttered our legacy commercial hydroponics business, as we are now focused on our core competency as a data-driven, consumer products and services company. We believe these initiatives, coupled with our accelerating growth in our SuperSuite business, will enable us to execute on our goals ahead.”

Fiscal Second Quarter 2025 Financial Results

Total revenue in the fiscal second quarter of 2025 increased 14% to $19.1 million compared to $16.8 million for the same period in fiscal 2024. The increase was driven primarily by growth in iPower’s SuperSuite supply chain offerings, as well as greater product sales to the Company’s largest channel partner.

Gross profit in the fiscal second quarter of 2025 increased 15% to $8.4 million compared to $7.3 million in the same quarter in fiscal 2024. As a percentage of revenue, gross margin increased 40 basis points to 44.0% compared to 43.6% in the year-ago period. The increase in gross margin was primarily driven by improved pricing through key supplier negotiations.

Total operating expenses in the fiscal second quarter of 2025 improved 22% to $7.7 million compared to $9.9 million for the same period in fiscal 2024. The decrease in operating expenses was driven primarily by lower selling and fulfillment expenses related to the Company’s largest channel partner.

Net income attributable to iPower in the fiscal second quarter of 2025 improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share for the same period in fiscal 2024.

Cash and cash equivalents were $2.9 million at December 31, 2024, compared to $7.4 million at June 30, 2024. As a result of the Company’s debt paydown, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024.

Conference Call

The Company will hold a conference call today, February 13, 2025, at 4:30 p.m. Eastern Time to discuss its results for the fiscal second quarter ended December 31, 2024.

iPower’s management will host the conference call, which will be followed by a question-and-answer session.

The conference call details are as follows:

Date: Thursday, February 13, 2025
Time: 4:30 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here

Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at IPW@elevate-ir.com.

The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com.

About iPower Inc.

iPower Inc. is a tech and data-driven online retailer, as well as a provider of value-added ecommerce services for third-party products and brands. iPower’s capabilities include a full spectrum of online channels, robust fulfillment capacity, a nationwide network of warehouses, competitive last mile delivery partners and a differentiated business intelligence platform. iPower believes that these capabilities will enable it to efficiently move a diverse catalog of SKUs from its supply chain partners to end consumers every day, providing the best value to customers in the U.S. and other countries. For more information, please visit iPower’s website at www.meetipower.com.

Forward-Looking Statements

All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower’s Annual Report on Form 10-K, as filed with the SEC on September 20, 2024, and in its other SEC filings, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Investor Relations Contact

Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
IPW@elevate-ir.com

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2024 and June 30, 2024

				December 31,			June 30,
				2024			2024
				(Unaudited)
ASSETS
Current assets
	Cash and cash equivalent			$	2,877,457		$	7,377,837
	Accounts receivable, net				13,926,432			14,740,093
	Inventories, net				9,183,631			10,546,273
	Prepayments and other current assets, net				2,292,744			2,346,534
			Total current assets		28,280,264			35,010,737

Non-current assets
	Right of use – non-current				4,757,429			6,124,163
	Property and equipment, net				303,059			370,887
	Deferred tax assets, net				3,001,517			2,445,605
	Goodwill				3,034,110			3,034,110
	Intangible assets, net				3,306,014			3,630,700
	Other non-current assets				1,187,179			679,655
			Total non-current assets		15,589,308			16,285,120

			Total assets	$	43,869,572		$	51,295,857

LIABILITIES AND EQUITY
Current liabilities
	Accounts payable, net				8,853,320			11,227,116
	Other payables and accrued liabilities				3,491,596			3,885,487
	Lease liability – current				1,540,624			2,039,301
	Short-term loan payable				–			491,214
	Short-term loan payable – related party				350,000			350,000
	Revolving loan payable, net				–			5,500,739
	Income taxes payable				274,947			276,158
			Total current liabilities		14,510,487			23,770,015

Non-current liabilities
	Long-term revolving loan payable, net				4,042,400			–
	Lease liability – non-current				3,612,756			4,509,809

			Total non-current liabilities		7,655,156			4,509,809

			Total liabilities		22,165,643			28,279,824

Commitments and contingency					–			–

Stockholders’ Equity
	Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and
		outstanding at December 31, 2024 and June 30, 2024			–			–
	Common stock, $0.001 par value; 180,000,000 shares authorized; 31,359,899 and
		31,359,899 shares issued and outstanding at December 31, 2024 and June 30, 2024			31,361			31,361
	Additional paid in capital				33,867,156			33,463,883
	Accumulated deficits				(12,041,063	)		(10,230,601	)
	Non-controlling interest				(44,195	)		(38,204	)
	Accumulated other comprehensive loss				(109,330	)		(210,406	)
			Total stockholders’ equity		21,703,929			23,016,033

			Total liabilities and stockholders’ equity	$	43,869,572		$	51,295,857

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
For the Three and Six Months Ended December 31, 2024 and 2023

			For the Three Months Ended December 31,						For the Six Months Ended December 31,
			2024			2023			2024			2023
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
REVENUES
	Product sales		$	17,606,889		$	16,800,122		$	35,882,301		$	43,308,496
	Service income			1,465,682			–			2,198,791			–
		Total revenues		19,072,571			16,800,122			38,081,092			43,308,496

COST OF REVENUES
	Product costs			9,461,119			9,481,882			19,378,567			24,231,411
	Service costs			1,221,566			–			1,824,742			–
		Total cost of revenues		10,682,685			9,481,882			21,203,309			24,231,411

GROSS PROFIT				8,389,886			7,318,240			16,877,783			19,077,085

OPERATING EXPENSES:
	Selling and fulfillment			4,628,914			6,936,980			10,543,722			17,000,451
	General and administrative			3,077,365			2,933,607			8,396,888			5,897,658
		Total operating expenses		7,706,279			9,870,587			18,940,610			22,898,109

INCOME (LOSS) FROM OPERATIONS				683,607			(2,552,347	)		(2,062,827	)		(3,821,024	)

OTHER INCOME (EXPENSE)
	Interest expenses			(140,672	)		(182,612	)		(280,634	)		(410,977	)
	Loss on equity method investment			(802	)		(801	)		(1,721	)		(1,826	)
	Other non-operating income (expenses)			(205,958	)		128,838			12,728			61,672
		Total other expenses, net		(347,432	)		(54,575	)		(269,627	)		(351,131	)

INCOME (LOSS) BEFORE INCOME TAXES				336,175			(2,606,922	)		(2,332,454	)		(4,172,155	)

PROVISION FOR INCOME TAX EXPENSE (BENEFIT)				120,511			(688,939	)		(516,001	)		(964,821	)
NET INCOME (LOSS)				215,664			(1,917,983	)		(1,816,453	)		(3,207,334	)

	Non-controlling interest			(3,155	)		(3,155	)		(5,991	)		(5,991	)

NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.			$	218,819		$	(1,914,828	)	$	(1,810,462	)	$	(3,201,343	)

OTHER COMPREHENSIVE INCOME (LOSS)
	Foreign currency translation adjustments			156,130			(160,255	)		101,076			(160,962	)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.			$	374,949		$	(2,075,083	)	$	(1,709,386	)	$	(3,362,305	)

WEIGHTED AVERAGE NUMBER OF COMMON STOCK
	Basic			31,437,517			29,790,242			31,427,360			29,777,378

	Diluted			31,437,517			29,790,242			31,427,360			29,777,378

EARNINGS (LOSSES) PER SHARE
	Basic		$	0.01		$	(0.06	)	$	(0.06	)	$	(0.11	)

	Diluted		$	0.01		$	(0.06	)	$	(0.06	)	$	(0.11	)

The MIL Network –

February 14, 2025

MIL-OSI: Salsify Customers Drive Valuable Business Outcomes Through Organizational Efficiency, Increased Performance, and AI Impact in 2024

Source: GlobeNewswire (MIL-OSI)

BOSTON, Feb. 13, 2025 (GLOBE NEWSWIRE) — Salsify, the Product Experience Management (PXM) platform empowering brand manufacturers, distributors, and retailers to win on the digital shelf, today announced another year of double digit ARR growth in 2024, driven by the business value created by its customers using Salsify. In 2024, 70,000 Salsify PXM users in 149 countries used 511 million automated workflow tasks to help publish over 2 billion products across more than 950 destinations worldwide with increased efficiency and performance impact. The number of automated workflow tasks, a critical component of driving efficiency, represents a 40% increase over 2023.

The early 2024 announcement of Salsify PXM Advance, the company’s new AI-propelled version of its platform, was a significant driver of customer investment in Salsify. The platform’s Grocery Accelerator, which uses AI and automation to speed accurate, validated, and high-quality product data to market, became the company’s fastest-adopted capability ever.

Over 200 new customers began their partnership with Salsify in 2024, including Virbac and Riviana Foods, Inc. By the end of 2024, 47% of Salsify’s customers had migrated to the new PXM Advance platform, a record-breaking adoption rate. Customers increasing their commitment to Salsify in 2024 included Coty and Fortune Brand Innovations. Driven by the power of the new platform and the excellence of Salsify’s customer success and services teams, the company is extremely proud that its customers continue to make recurring investments in the Salsify platform with a gross retention rate in the mid 90s. Salsify also achieved historic profitability in 2024 with double-digit EBITDA margins, ending the year with over $200 million in cash and cash equivalents on its balance sheet.

“In my first six months as Salsify CEO, customers have consistently cited two reasons why they continue to invest in Salsify: our platform and our people,” said Piyush Chaudhari, CEO of Salsify. “In 2025 and beyond, we will continue to direct our own investments to help them achieve both top-line and bottom-line growth through product experiences that truly matter – to their customers, end consumers, and B2B buyers.”

In 2024, Salsify invested $32 million in product innovation to advance the business value realized by its customers. This investment helped enable documented valuable outcomes across the Salsify customer base, including:

Speed to market: Salsify’s investments in automated workflows and AI helped decrease the time it takes to bring products to market.
- In three months, a global food brand reduced the time to market from seven days to minutes.
- Using Grocery Accelerator, an ecommerce associate at a global CPG can verify the accuracy of 15 SKUs in 40 minutes, versus eight hours with their prior solution.
- A national household goods company reduced time to market from six weeks to one week by using Salsify to syndicate content to Dollar General.

Performance Improvements: Accurate, complete, optimized product content created and syndicated to retailers using Salsify drives improved SEO and conversions, while increasing retail media Return on Ad Spend (ROAS).
- A global electronics manufacturer improved their content scores on Walmart, rising from an average score of 86% to 94% across their portfolio.
- A global wine and spirits brand saw their volume grow 24% at one of the largest grocers in the US after implementing a new Salsify direct connection that offered more robust content capabilities.
- KIND has experienced significant improvement on the digital shelf since implementing Salsify, including a 10% sales lift on Kroger. They’ve also seen average compliance for bullet point product data increase from 17% to 96% and average image compliance from 57% to 90%.
- A European food manufacturer was receiving daily fines due to submitting product data through a manual excel upload which was both time consuming and open to errors. Since implementing Salsify’s GDSN solution, they have reached 100% compliance with the packaging requirements and zero penalties.
- Dorel Juvenile invested in several major initiatives to improve their Enhanced Content quality and effectiveness that they saw paid off by more than doubling their conversions at Target.

“We have always believed in the value that publishing Enhanced Content through Salsify provides to enhance the customer experience and provide more information to help customers feel confident in their decision to buy our products,” said Daniel Desimone, Digital & Ecommerce Product Manager at Dorel Juvenile. “Their Enhanced Content Analytics has taken that a step further, allowing us to make more data-driven decisions about our content development. We invested in several major initiatives around Enhanced Content that we can see paid off by more than doubling our conversions at Target.”

Tech Consolidation: In a time when IT organizations are looking to streamline their tech stack for greatest efficiency and ROI, Salsify’s investments in enterprise-scale data governance, global IT administration, and industry-leading workflows has enabled customers to replace legacy PIM solutions and consolidate on Salsify.
- In 2024, a global CPG brand expanded their use of Salsify PXM Advance to replace their separate legacy PIM solution and launched seven markets in five months.

Global PXM Network Growth: The reach and impact of our customers is directly tied to the continually expanding network of retailer, distributor, and commerce endpoints they can reach through Salsify’s network. In 2024, Salsify expanded reach and impact at commerce destinations around the globe:
- Salsify’s investment in Amazon success paid off in 2024, expanding to 16 markets and launching the Amazon Feedback Status Report, now used by hundreds weekly to optimize listings.
- In 2024, Salsify connected directly to Walmart’s OmniSpec API Suite, enabling seamless content publishing—over 2.3 million SKUs were uploaded by 1P and 3P sellers.
- The company also introduced eight new bi-directional retailer connections, breaking down existing walled gardens that prevent the continual collaboration and optimization of product content.
- Enhanced content expanded with 13 new destinations, enhancing the shopping experience and driving conversions, including Ulta, Staples, and more.
- Meanwhile, Salsify’s free Open Catalog saw 40% more products added and 41% growth in retailer engagement, ensuring continual access to the industry’s most up-to-date content.

In addition in 2024, Salsify was recognized as a “Leader” in the IDC’s latest PIM market evaluation, “IDC MarketScape: Worldwide Product Information Management Applications for Commerce 2024-2025 Vendor Assessment”, which stated, “Salsify’s PIM provides strong governance, taxonomy, and hierarchy capabilities while remaining flexible enough to support omnichannel data management. It can store a golden product information record while transforming those records to meet endpoint requirements quickly and at scale.”

As a reflection of their innovation and success with Salsify, many customers shared the stories of their success with the industry. The latest case studies appear on the Salsify website. The most outstanding examples of customer performance, growth, and innovation during 2024 will be recognized with Digital Shelf Transformer Awards at the Digital Shelf Summit in New Orleans from April 7th-9th.

For more information, visit www.salsify.com.

About Salsify

Salsify helps thousands of brand manufacturers, distributors, and retailers in over 140 countries collaborate to win on the digital shelf. The company’s Product Experience Management (PXM) platform enables organizations to centralize all of their product content, connect to the commerce ecosystem, and automate business processes in order to deliver the best possible product experiences across every selling destination.

Learn how the world’s largest brands, including Mars, L’Oreal, Coca-Cola, Bosch, and ASICS, as well as retailers and distributors such as DoorDash, E.Leclerc, Carrefour, Metro, and Intermarché use Salsify every day to drive efficiency, power growth, and lead the digital shelf. For more information, please visit: www.salsify.com.

Contact:

Carolyn Adams
carolyn@bluerunpr.com

The MIL Network –

February 14, 2025

MIL-OSI: Brookfield Wealth Solutions Announces Year End 2024 Results and Declares Quarterly Distribution Increase

Source: GlobeNewswire (MIL-OSI)

BROOKFIELD, NEWS, Feb. 13, 2025 (GLOBE NEWSWIRE) — Brookfield Wealth Solutions (NYSE, TSX: BNT) today announced financial results for the three months and year ended December 31, 2024.

Sachin Shah, CEO of Brookfield Wealth Solutions, stated, “Our strong results for 2024 underscore our growth over the past year having doubled the size of the business in that time. Our scalable North American annuity platform, coupled with our leading investment capabilities, will serve as the foundation for our business as we expand internationally in 2025.”

Unaudited As of and for the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended				Year Ended
		*2024*		2023		*2024*		2023
Total assets	$	140,460	$	61,643	$	140,460	$	61,643
Adjusted equity¹		12,872		8,969		12,872		8,969
Distributable operating earnings¹		427		258		1,374		745
Net income		576		453		1,247		797
Net income per each class A share	$	0.08	$	0.07	$	0.32	$	0.28

^{1. See Non-GAAP and Performance Measures on page 6 and a reconciliation from net income and reconciliation from equity on page 5.}

2024 Highlights

Completed the acquisition of American Equity Investment Life Holding Company (“AEL”), doubling the size of our business
Deployed more than $17 billion across our investment portfolio at strong risk-adjusted returns
Generated $19 billion in annuity and pension risk transfer (“PRT”) sales across the business, consisting of approximately $14 billion of retail annuity sales, inclusive of a full twelve months of activity at AEL, and $5 billion of PRT deals
We closed our first U.K. reinsurance transaction, reinsuring £1.0 billion ($1.3 billion) of pension liabilities

Operating Update
We recognized $427 million and $1.4 billion of distributable operating earnings (“DOE”) for the three months and year ended December 31, 2024, respectively, compared to $258 million and $745 million in the prior year periods. The increase in earnings for the current period reflects contributions from our acquisition of AEL as well as higher net investment income resulting from progress made in repositioning assets into higher yielding investment strategies. DOE further benefitted from strong annuity sales during the year.

We recorded net income of $576 million and $1.2 billion for the three months and year ended December 31, 2024, respectively, compared to net income of $453 million and $797 million in the prior year periods. Net income in the current period is the result of strong operating performance and contributions from our DOE, as well as favorable movement on reserves due to interest rate and equity market movements.

Today, we are in a strong liquidity position, with approximately $31 billion of cash and short-term liquid investments across our investment portfolios, and another $21 billion of long-term liquid investments. These liquid assets will support the ongoing rotation of our portfolio into higher yielding investment strategies, while ensuring we have sufficient liquidity coverage for our liabilities in the case of any stress events impacting the broader market.

Regular Distribution Declaration
The Board declared a 13% increase in the Company’s quarterly return of capital to $0.09 per class A share and class B share (representing $0.36 per annum), payable on March 31, 2025 to shareholders of record as at the close of business on March 14, 2025. This distribution is identical in amount per share and has the same payment date as the quarterly distribution announced today by Brookfield Corporation on the Brookfield class A shares.

Brookfield Corporation Operating Results
An investment in class A shares of our company is intended to be, as nearly as practicable, functionally and economically, equivalent to an investment in the Brookfield class A shares. A summary of Brookfield Corporation’s fourth quarter and full year operating results is provided below:

Unaudited
For the periods ended December 31
(US$ millions, except per share amounts)

Three Months Ended

Years Ended

2024

2023

2024

2023

Net income of consolidated business¹

$

101

$

3,134

$

1,853

$

5,105

Net income attributable to Brookfield shareholders²

432

699

641

1,130

Distributable earnings before realizations^2,3

1,498

1,209

4,871

4,223

– Per Brookfield class A share^2,3

0.94

0.76

3.07

2.66

Distributable earnings^2,3

1,606

1,312

6,274

4,806

– Per Brookfield class A share^2,3

1.01

0.83

3.96

3.03

^{1. Consolidated basis – includes amounts attributable to non-controlling interests.}
^{2. Excludes amounts attributable to non-controlling interests.}
^{3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8 of Brookfield Corporation’s press release dated February 13, 2025.}

Brookfield Corporation net income above is presented under IFRS. Given the economic equivalence, we expect that the market price of the class A shares of our company will be impacted significantly by the market price of the Brookfield class A shares and the business performance of Brookfield as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review Brookfield Corporation’s letter to shareholders, supplemental information and its other continuous disclosure filings. Investors, analysts and other interested parties can access Brookfield Corporation’s disclosure on its website under the Reports & Filings section at bn.brookfield.com.

CONSOLIDATED BALANCE SHEETS

Unaudited

December 31

December 31

(US$ millions)

2024

2023

Assets

Insurance invested assets

Cash and cash equivalents

$

12,243

$

4,308

Investments

92,966

39,838

Reinsurance funds withheld

1,517

7,248

Accrued investment income

860

107,586

280

51,674

Reinsurance recoverables and deposit assets

13,195

3,388

120,781

55,062

Deferred policy acquisition costs

10,696

2,468

Other assets

8,983

4,113

Total assets

140,460

61,643

Liabilities and equity

Policy and contract claims

7,659

7,288

Future policy benefits

14,088

9,813

Policyholders’ account balances

83,079

24,939

Deposit liabilities

1,502

1,577

Market risk benefits

3,655

89

Unearned premium reserve

1,843

2,056

111,826

45,762

Corporate borrowings

1,022

1,706

Subsidiary borrowings

3,329

1,863

Funds withheld for reinsurance liabilities

3,392

83

Other liabilities

7,815

3,380

Junior preferred shares

—

2,694

Non-controlling interest

850

146

Class A and class B

1,470

1,591

Class C

10,756

13,076

4,418

6,155

Total liabilities and equity

$

140,460

$

61,643

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended December 31 US$ millions	Three Months Ended						Year Ended
		2024			2023			2024			2023
Net premiums and other policy revenue	$	4,307		$	1,432		$	9,048		$	4,550
Net investment income, including funds withheld		1,325			621			4,440			2,121
Net investment gains (losses), including funds withheld		115			176			615			241
Total revenues		5,747			2,229			14,103			6,912

Benefits and claims paid on insurance contracts		(4,003	)		(1,194	)		(8,162	)		(3,939	)
Interest sensitive contract benefits		(710	)		(355	)		(1,874	)		(687	)
Amortization of deferred policy acquisition costs		(370	)		(180	)		(1,237	)		(632	)
Changes in fair value of insurance-related derivatives and embedded derivatives		396			210			234			41
Changes in fair value of market risk benefits		299			85			(107	)		166
Other reinsurance expenses		(6	)		(5	)		(26	)		(21	)
Operating expenses		(332	)		(244	)		(1,356	)		(777	)
Interest expense		(96	)		(68	)		(362	)		(249	)
Total benefits and expenses		(4,822	)		(1,751	)		(12,890	)		(6,098	)
Net income before income taxes		925			478			1,213			814
Income tax recovery (expense)		(349	)		(25	)		34			(17	)
Net income for the period	$	576		$	453		$	1,247		$	797

Attributable to:
Class A and class B shareholders¹	$	4		$	2		$	14		$	5
Class C shareholder		559			453			1,200			791
Non-controlling interest		13			(2	)		33			1
	$	576		$	453		$	1,247		$	797

^{1. Class A shares receive distributions at the same amount per share as the cash dividends paid on each Brookfield class A share.}

SUMMARIZED FINANCIAL RESULTS

RECONCILIATION OF NET INCOME TO DISTRIBUTABLE OPERATING EARNINGS

Unaudited For the periods ended December 31 US$ millions	Three Months Ended						Year Ended
		2024			2023			2024			2023
Net income	$	576		$	453		$	1,247		$	797
Unrealized net investment gains, including funds withheld		(115	)		(176	)		(615	)		(241	)
Mark-to-market on insurance contracts and other net assets		(367	)		(104	)		589			105
		94			173			1,221			661
Deferred income tax expense (recovery)		260			47			(195	)		14
Transaction costs		32			24			213			40
Depreciation		41			14			135			30
Distributable operating earnings¹	$	427		$	258		$	1,374		$	745

RECONCILIATION OF EQUITY TO ADJUSTED EQUITY

Unaudited As of December 31 US$ millions		2024			2023
Equity	$	13,076		$	6,155
Add:
Accumulated other comprehensive (income) loss		(204	)		120
Junior preferred shares		—			2,694
Adjusted equity¹	$	12,872		$	8,969

^{1. Non-GAAP measure – see Non-GAAP and Performance Measures on page 6.}

Additional Information

The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter and year ended December 31, 2024, which have been prepared using generally accepted accounting principles in the United States of America (“US GAAP” or “GAAP”).

Brookfield Wealth Solutions’ Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our distributions can be found on our website under Stock & Distributions/Distribution History.

Brookfield Wealth Solutions Ltd. (NYSE, TSX: BNT) is focused on securing the financial futures of individuals and institutions through a range of wealth protection and retirement services, and tailored capital solutions. Each class A exchangeable limited voting share of Brookfield Wealth Solutions is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Corporation (NYSE, TSX: BN). For more information, please visit our website at bnt.brookfield.com or contact:

Communications & Media:
Kerrie McHugh
Tel: (212) 618-3469
Email: kerrie.mchugh@brookfield.com

Investor Relations:
Rachel Schneider
Tel: (416) 369-3358
Email: rachel.schneider@brookfield.com

Non-GAAP and Performance Measures

This news release and accompanying financial statements are based on US GAAP, unless otherwise noted.

We make reference to Distributable operating earnings. We define distributable operating earnings as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates. Distributable operating earnings is a measure of operating performance. We use distributable operating earnings to assess our operating results. We also make reference to Adjusted equity. Adjusted equity represents the total economic equity of our Company through our class A, B and C shares, excluding Accumulated other comprehensive income, and the junior preferred shares issued by our Company. We use adjusted equity to assess our return on our equity.

We provide additional information on key terms and non-GAAP measures in our filings available at bnt.brookfield.com.

Notice to Readers

Brookfield Wealth Solutions Ltd. (“Brookfield Wealth Solutions” or “our” or “we”) is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, assumptions and expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Wealth Solutions, Brookfield Corporation and their respective subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Particularly, statements regarding international expansion plans and future capital markets initiatives, including statements relating to the redeployment of capital into higher yielding investments constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “foresees,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” In particular, the forward-looking statements contained in this news release include statements referring to the growth of our business, international expansion, investment opportunities and expected future deployment of capital and financial earnings. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable estimates, assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Wealth Solutions or Brookfield Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, including but not limited to, earthquakes, hurricanes, epidemics and pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, Brookfield Wealth Solutions undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of investment opportunities or otherwise).

Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield Wealth Solutions believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield Wealth Solutions does not make any assurance, representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties, and undue reliance should not be put on them.

The MIL Network –

February 14, 2025

MIL-OSI: Calian Reports Results for the First Quarter

Source: GlobeNewswire (MIL-OSI)

(All amounts in release are in Canadian dollars)

OTTAWA, Ontario, Feb. 13, 2025 (GLOBE NEWSWIRE) — Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, today released its results for the first quarter ended December 31, 2024.

Q1-25 Highlights:

Revenue up 3% to $185 million
Gross margin at 31.8%, slightly down from 32.5% last year
Adjusted EBITDA¹ of $18 million, down from $21 million last year
Operating free cash flow¹ of $13 million, down from $17 million last year
Net debt to adjusted EBITDA¹ ratio of 0.6x
Repurchased 101,350 shares in consideration of $4.9 million
Guidance reiterated
Announced new U.S. subsidiary to focus on U.S. government and defence


Financial Highlights	Three months ended
(in millions of $, except per share & margins)	December 31,
	2024		2023²		%
Revenue	185.0		179.2		3	%
Adjusted EBITDA¹	17.8		21.4		(17)	%
Adjusted EBITDA %¹	9.6	%	11.9	%	(230)bps
Adjusted Net Profit¹	10.5		14.0		(25)	%
Adjusted EPS Diluted¹	0.88		1.17		(25)	%
Operating Free Cash Flow¹	13.1		17.2		(24)	%

¹ This is a non-GAAP measure. Please refer to the section “Reconciliation of non-GAAP measures to most comparable IFRS measures” at the end of this press release.
² Certain comparative figures have been reclassified to align with the current year’s presentation. For more information, please see the selected consolidated financial information section of the management discussion and analysis.

Access the full report on the Calian Financials web page.
Register for the conference call on Thursday, February 13, 2025, 8:30 a.m. Eastern Time.

“We closed the quarter as expected and are seeing positive momentum across our diverse end markets, while continuing to benefit from the strong contributions of our recent acquisitions in UK, the U.S. and Canada,” said Kevin Ford, Calian CEO. “The accelerating global demand for defence solutions positions Calian’s expanding footprint to play a critical role in the years ahead. Additionally, discussions among Canadian leaders about increasing military investment and accelerating initiatives are a welcome development. We remain on track to deliver another record year and are making progress against our long-term objectives.”

First Quarter Results

Revenues increased 3%, from $179 million to $185 million, representing the highest first quarter revenue on record. Acquisitive growth was 8% and was generated by the acquisitions of Decisive Group, the nuclear assets from MDA Ltd and Mabway. Organic growth was down 5%, as growth generated in global Defence was offset by declines in the pace of domestic Defence training and delays in large projects in its Space and IT infrastructure markets.

Gross margin stood at 31.8% and represents the 11th quarter above the 30% mark. Adjusted EBITDA¹ stood at $18 million, down 17% from $21 million last year, primarily impacted by revenue mix and increased investments in our sales and delivery capacity. As a result, adjusted EBITDA¹ margin decreased to 9.6%, from 11.9% last year.

Net profit stood at $(1) million, or $(0.08) per diluted share, down from $6 million, or $0.46 per diluted share last year. This decrease in profitability is primarily due to increases in accounting charges related to amortization and deemed compensation expenses from acquisitions as well as increased operating expenses, which was offset by higher gross profit. Adjusted net profit¹ was $10 million, or $0.88 per diluted share, down from $14 million, or $1.17 per diluted share last year.

Liquidity and Capital Resources

“In the first quarter we generated $13 million in operating free cash flow¹, representing a 73% conversion rate from adjusted EBITDA¹,” said Patrick Houston, Calian CFO. “We used our cash and a portion of our credit facility to pay contingent earn out liabilities for $11 million and make capital expenditure investments for $1 million. We also provided a return to shareholders in the form of dividends for $3 million and share buybacks for $5 million. We ended the quarter with a net debt to adjusted EBITDA¹ ratio of 0.6x, well-positioned to pursue our growth objectives,” concluded Mr. Houston.

Normal Course Issuer Bid

In the three-month period ended December 31, 2024, the Company repurchased 101,350 shares for cancellation in consideration of $4.9 million.

Announced U.S. Subsidiary to Focus on U.S. Government and Defence

On December 4, 2024, Calian announced the launch of an independent U.S.-focused subsidiary, Calian US, Inc. It is committed to securing U.S. government contracts by ensuring full compliance with all relevant regulations. To facilitate this, Calian US will be established as an independent subsidiary and will pursue the necessary certifications to operate effectively within the U.S. market.

Quarterly Dividend

On February 12, 2025, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable March 12, 2025, to shareholders of record as of February 26, 2025. Dividends paid by the Company are considered “eligible dividend” for tax purposes.

Guidance Reiterated

The table below presents the FY25 guidance based on the new definition of adjusted EBITDA.

	Guidance for the year ended September 30, 2025			FY24 Results	YOY Growth at Midpoint
(in thousands of $)	Low	Midpoint	High	FY24 Results	YOY Growth at Midpoint
Revenue	800,000	840,000	880,000	746,611	12	%
Adj. EBITDA¹	96,000	101,000	106,000	92,159	10	%

This guidance includes the full-year contribution from the Decisive Group acquisition, closed on December 1, 2023, the nuclear asset acquisition from MDA Ltd., closed on March 5, 2024 and the Mabway acquisition, closed on May 9, 2024. It does not include any other further acquisitions that may close within the fiscal year. The guidance reflects another record year for the Company and positions it well to achieve its long-term growth targets.

At the midpoint of the range, this guidance reflects revenue and adjusted EBITDA¹ growth of 12% and 10%, respectively, and an adjusted EBITDA¹ margin of 12.0%. It would represent the 8^th consecutive year of double-digit revenue growth and record revenue and adjusted EBITDA¹ levels.

About Calian

www.calian.com

We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer reliable solutions that solve complex challenges. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets. Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.

Product or service names mentioned herein may be the trademarks of their respective owners.

Media inquiries:
media@calian.com
613-599-8600

Investor Relations inquiries:
ir@calian.com

—————————————————————————–
DISCLAIMER

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at December 31, 2024 and September 30, 2024
(Canadian dollars in thousands, except per share data)

	December 31,		September 30,
	2024		2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	61,040	$	51,788
Accounts receivable		157,542		157,376
Work in process		20,205		20,437
Inventory		29,442		23,199
Prepaid expenses		23,805		23,978
Derivative assets		31		32
Total current assets		292,065		276,810
NON-CURRENT ASSETS
Property, plant and equipment		41,234		40,962
Right of use assets		41,746		36,383
Prepaid expenses		7,157		7,820
Deferred tax asset		3,376		3,425
Investments		3,875		3,875
Acquired intangible assets		123,297		128,253
Goodwill		213,925		210,392
Total non-current assets		434,610		431,110
TOTAL ASSETS	$	726,675	$	707,920
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	123,945	$	124,884
Provisions		2,454		3,075
Unearned contract revenue		40,263		41,723
Lease obligations		5,556		5,645
Contingent earn-out		29,709		39,136
Derivative liabilities		169		92
Total current liabilities		202,096		214,555
NON-CURRENT LIABILITIES
Debt facility		115,750		89,750
Lease obligations		39,425		33,798
Unearned contract revenue		17,256		14,503
Contingent earn-out		2,773		2,697
Deferred tax liabilities		23,738		25,862
Total non-current liabilities		198,942		166,610
TOTAL LIABILITIES		401,038		381,165

SHAREHOLDERS’ EQUITY
Issued capital		227,561		225,747
Contributed surplus		4,555		6,019
Retained earnings		84,038		91,268
Accumulated other comprehensive income (loss)		9,483		3,721
TOTAL SHAREHOLDERS’ EQUITY		325,637		326,755
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	726,675	$	707,920
Number of common shares issued and outstanding		11,765,055		11,802,364

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT
For the three months ended December 31, 2024 and 2023
(Canadian dollars in thousands, except per share data)

	Three months ended
	December 31,
	2024		2023
Revenue	$	185,047	$	179,179
Cost of revenues		126,246		120,961
Gross profit		58,801		58,218

Selling, general and administrative		38,105		34,145
Research and development		2,896		2,719
Share based compensation		1,091		1,190
Profit before under noted items		16,709		20,164

Restructuring expense		692		—
Depreciation and amortization		11,540		9,006
Mergers and acquisition costs		2,320		1,980
Profit before interest income and income tax expense		2,157		9,178

Interest expense		1,783		1,547
Income tax expense		1,350		2,106
NET PROFIT (LOSS)	$	(976)	$	5,525

Net profit (loss) per share:
Basic	$	(0.08)	$	0.47
Diluted	$	(0.08)	$	0.46

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended December 31, 2024 and 2023
(Canadian dollars in thousands)

	Three months ended
	December 31,
		2024			2023
CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES
Net profit	$	(976	)	$	5,525
Items not affecting cash:
Interest expense		1,295			1,098
Changes in fair value related to contingent earn-out		558			726
Lease obligations interest expense		488			449
Income tax expense		1,350			2,106
Employee share purchase plan expense		174			162
Share based compensation expense		917			1,013
Depreciation and amortization		11,540			9,006
Deemed compensation		1,563			604
		16,909			20,689
Change in non-cash working capital
Accounts receivable		(167	)		(11,189	)
Work in process		232			(898	)
Prepaid expenses and other		(2,739	)		(74	)
Inventory		(6,241	)		(2,590	)
Accounts payable and accrued liabilities		(858	)		15,516
Unearned contract revenue		1,294			206
		8,430			21,660
Interest paid		(1,783	)		(1,547	)
Income tax paid		(2,265	)		(2,575	)
		4,382			17,538
CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES
Issuance of common shares net of costs		881			694
Dividends		(3,292	)		(3,314	)
Draw on debt facility		26,000			56,000
Payment of lease obligations		(1,442	)		(1,171	)
Repurchase of common shares		(4,926	)		(1,357	)
		17,221			50,852
CASH FLOWS USED IN INVESTING ACTIVITIES
Business acquisitions		(11,215	)		(47,457	)
Property, plant and equipment		(1,136	)		(2,400	)
		(12,351	)		(49,857	)

NET CASH INFLOW (OUTFLOW)	$	9,252		$	18,533
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		51,788			33,734
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	61,040		$	52,267

Reconciliation of Non-GAAP Measures to Most Comparable IFRS Measures

These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non-GAAP measures of other entities to compare performance of those entities to the Company’s performance.

Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Company’s financial reports with enhanced understanding of the Company’s results and related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company’s core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another.

Adjusted EBITDA


		Three months ended
		December 31,
		2024			2023¹
Net profit	$	(976	)	$	5,525
Share based compensation		1,091			1,190
Restructuring expense		692			—
Depreciation and amortization		11,540			9,006
Mergers and acquisition costs		2,320			1,980
Interest expense		1,783			1,547
Income tax		1,350			2,106
Adjusted EBITDA	$	17,800		$	21,354

Adjusted Net Profit and Adjusted EPS


		Three months ended
		December 31,
		2024			2023¹
Net profit	$	(976	)	$	5,525
Share based compensation		1,091			1,190
Restructuring expense		692			—
Mergers and acquisition costs		2,320			1,980
Amortization of intangibles		7,334			5,325
Adjusted net profit		10,461			14,020
Weighted average number of common shares basic		11,773,465			11,812,574
Adjusted EPS Basic		0.89			1.19
Adjusted EPS Diluted	$	0.88		$	1.17

Operating Free Cash Flow


		Three months ended
		December 31,
		2024			2023¹
Cash flows generated from operating activities (free cash flow)	$	4,382		$	17,538
Adjustments:
M&A costs included in operating activities		199			650
Change in non-cash working capital		8,479			(971)
Operating free cash flow	$	13,060		$	17,217
Operating free cash flow per share – basic		1.11			1.46
Operating free cash flow per share – diluted		1.10			1.44
Operating free cash flow conversion		73	%		81	%

Net Debt to Adjusted EBITDA



	December 31,		September 30,
		2024		2023¹
Cash	$	61,040	$	52,267
Debt facility		115,750		93,750
Net debt (net cash)		54,710		41,483
Trailing twelve month adjusted EBITDA		88,602		65,987
Net debt to adjusted EBITDA		0.6		0.6

Operating free cash flow measures the company’s cash profitability after required capital spending when excluding working capital changes. The Company’s ability to convert adjusted EBITDA to operating free cash flow is critical for the long term success of its strategic growth. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable IFRS financial measures. The Company has reconciled adjusted profit to the most comparable IFRS financial measure as shown above.

The MIL Network –

February 14, 2025

MIL-OSI: Brookfield Corporation Reports Record 2024 Results

Source: GlobeNewswire (MIL-OSI)

Distributable Earnings Before Realizations Increased 15% to a Record $4.9 billion or $3.07 Per Share

Quarterly Dividend Raised by 13%

BROOKFIELD, NEWS, Feb. 13, 2025 (GLOBE NEWSWIRE) — Brookfield Corporation (NYSE: BN, TSX: BN) announced record financial results for the year ended December 31, 2024.

Nick Goodman, President of Brookfield Corporation, said, “We delivered record financial results in 2024, with strong contributions from each of our businesses. Our asset management business had inflows of over $135 billion, our wealth solutions business is now firmly established as a top-tier annuity writer in the U.S., and our operating businesses continue to generate high-quality and stable cash flows.”

He continued, “We expect the positive momentum in each of our businesses to continue this year. Our access to scale capital remains very strong and with transaction activity expected to pick up throughout 2025, we are well positioned to continue to generate strong growth in our cash flows and intrinsic value.”

Operating Results

Distributable earnings (“DE”) before realizations increased by 24% and 15% on a per share basis compared to the prior year periods.

Unaudited For the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended				Years Ended
		*2024*		2023		*2024*		2023
Net income of consolidated business¹	$	101	$	3,134	$	1,853	$	5,105
Net income attributable to Brookfield shareholders²		432		699		641		1,130

Distributable earnings before realizations^2,3		1,498		1,209		4,871		4,223
– Per Brookfield share^2,3		0.94		0.76		3.07		2.66

Distributable earnings^2,3		1,606		1,312		6,274		4,806
– Per Brookfield share^2,3		1.01		0.83		3.96		3.03

_{See endnotes on page 8.}

Total consolidated net income was $101 million in the quarter and $1.9 billion for the year. Distributable earnings before realizations were a record $1.5 billion ($0.94/share) for the quarter and $4.9 billion ($3.07/share) for the year.

Our asset management business generated a 17% increase in fee-related earnings compared to the prior year quarter, benefiting from strong fundraising momentum and the scaling of its credit platform through strategic partnerships.

Wealth solutions earnings nearly doubled compared to the prior year, on the back of the acquisition of American Equity Life (“AEL”), organic growth and the attractive returns on our investment portfolio.

Our operating businesses continue to deliver stable and growing cash flows, underpinned by the strong earnings of our renewable power and transition, infrastructure and private equity businesses and 4% growth in same-store net operating income (“NOI”) from our core real estate portfolio.

During the quarter and for the year, earnings from realizations were $108 million and $1.4 billion, with total DE for the quarter and for the year of $1.6 billion ($1.01/share) and $6.3 billion ($3.96/share), respectively.

Regular Dividend Declaration

The Board declared a 13% increase in the quarterly dividend for Brookfield Corporation to $0.09 per share (representing $0.36 per annum), payable on March 31, 2025 to shareholders of record as at the close of business on March 14, 2025. The Board also declared the regular monthly and quarterly dividends on our preferred shares.

Operating Highlights

Distributable earnings before realizations were a record $1.5 billion ($0.94/share) for the quarter and $4.9 billion ($3.07/share) for the year, representing an increase of 24% and 15% on a per share basis over the prior year periods, respectively. Total distributable earnings were $1.6 billion ($1.01/share) for the quarter and $6.3 billion ($3.96/share) for the year.

Asset Management:

DE was $694 million ($0.44/share) in the quarter and $2.6 billion ($1.67/share) for the year.
Fee-related earnings grew by 17% compared to the prior year quarter, driven by an 18% increase in fee-bearing capital over the prior year to $539 billion as at December 31, 2024. Total inflows were over $135 billion in 2024.
Our latest round of flagship funds have raised approximately $40 billion across our second global transition fund strategy, our fifth opportunistic real estate fund strategy, and our flagship opportunistic credit fund strategy. Heading into 2025, we expect to hold final closes for our latest flagship funds and continue to actively deploy capital, which should contribute to strong earnings growth.

Wealth Solutions:

Distributable operating earnings were $421 million ($0.26/share) in the quarter and $1.4 billion ($0.85/share) for the year.
Insurance assets increased to over $120 billion, as we originated approximately $19 billion of retail and institutional annuity sales in 2024. We continue to diversify the business by growing our pension risk transfer capabilities and expanding into new markets. An example of this is the completion of our first reinsurance transaction in the U.K., at $1.3 billion which closed in the fourth quarter.
The average investment portfolio yield was 5.4%, 1.8% higher than the average cost of capital. As we continue to rotate the investment portfolio, annualized earnings for the business are well positioned to grow from approximately $1.6 billion today to $2 billion in the near term.
We are raising close to $2 billion of retail capital per month via our combined wealth solutions platforms.

Operating Businesses:

DE was $562 million ($0.35/share) in the quarter and $1.6 billion ($1.03/share) for the year.
Operating Funds from Operations in our renewable power, transition and infrastructure businesses increased by 10% over the prior year. Our private equity business continues to contribute resilient, high-quality cash flows. Our core real estate portfolio continues to grow its same-store NOI, delivering a 4% increase over the prior year quarter.
In our real estate business, we signed close to 27 million square feet of office and retail leases during the year. Rents on the newly signed leases were approximately 35% higher compared to those leases expiring in the fourth quarter. Also during the fourth quarter, our DE benefited from monetizing a land parcel within our North American residential operations.
As real estate markets continue to recover in the coming years, we expect earnings and valuations of the business to strengthen.

Earnings from the monetization of mature assets were $108 million ($0.07/share) for the quarter and $1.4 billion ($0.89/share) for the year.

During the year, we closed nearly $40 billion of asset sales at strong returns, which include a portfolio of U.S. manufactured housing assets and several renewable power and infrastructure assets globally. With the pick-up in transaction activity, we expect this momentum to accelerate into 2025.
Total accumulated unrealized carried interest was $11.5 billion at year end, representing an increase of 13% over the prior year, net of carried interest realized into income. We recognized approximately $400 million of net realized carried interest into income in 2024, and we expect to realize significant carried interest as we actively monetize assets in the coming years.

We ended the quarter with a record $160 billion of capital available to deploy into new investments.

We have record deployable capital of approximately $160 billion, which includes $68 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business.
Our balance sheet is robust and remains conservatively capitalized. Our corporate debt at the Corporation has a weighted-average term of 14 years and today we have no maturities through to the end of 2025.
Over the year, we returned $1.5 billion to shareholders through regular dividends and share repurchases, with total share buybacks of approximately $1 billion. In 2025 so far, we have repurchased over $200 million of shares.
We had an active year in the capital markets. We executed approximately $135 billion of financings, including issuing $700 million of 30-year subordinated notes and a $1 billion, 7-year non-recourse loan to a large institutional partner of ours, the proceeds of which will mainly be directed towards share repurchases.

CONSOLIDATED BALANCE SHEETS

Unaudited (US$ millions)			*December 31*				December 31
				*2024*				2023
Assets
Cash and cash equivalents			$	15,051			$	11,222
Other financial assets				25,887				28,324
Accounts receivable and other				40,509				31,001
Inventory				8,458				11,412
Equity accounted investments				68,310				59,124
Investment properties				103,665				124,152
Property, plant and equipment				153,019				147,617
Intangible assets				36,072				38,994
Goodwill				35,730				34,911
Deferred income tax assets				3,723				3,338
Total Assets			$	490,424			$	490,095

Liabilities and Equity
Corporate borrowings			$	14,232			$	12,160
Accounts payable and other				60,223				59,011
Non-recourse borrowings				220,560				221,550
Subsidiary equity obligations				4,759				4,145
Deferred income tax liabilities				25,267				24,987

Equity
Non-controlling interests in net assets	$	119,406			$	122,465
Preferred equity		4,103				4,103
Common equity		41,874		165,383		41,674		168,242
Total Equity				165,383				168,242
Total Liabilities and Equity			$	490,424			$	490,095

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Revenues	$	19,426		$	24,518		$	86,006		$	95,924
Direct costs¹		(11,977	)		(18,168	)		(58,199	)		(72,334	)
Other income and gains		52			4,256			1,247			6,501
Equity accounted income		1,034			429			2,729			2,068
Interest expense
– Corporate borrowings		(183	)		(142	)		(727	)		(596	)
– Non-recourse borrowings
Same-store		(3,474	)		(3,903	)		(14,889	)		(14,907	)
Acquisitions, net of dispositions²		(136	)		—			(319	)		—
Upfinancings²		(186	)		—			(680	)		—
Corporate costs		(20	)		(16	)		(76	)		(69	)
Fair value changes		(1,759	)		(1,326	)		(2,520	)		(1,396	)
Depreciation and amortization		(2,417	)		(2,427	)		(9,737	)		(9,075	)
Income tax		(259	)		(87	)		(982	)		(1,011	)
Net income		101			3,134			1,853			5,105
Loss (income) attributable to non-controlling interests		331			(2,435	)		(1,212	)		(3,975	)
Net income attributable to Brookfield shareholders	$	432		$	699		$	641		$	1,130

Net income per share
Diluted	$	0.25		$	0.42		$	0.31		$	0.61
Basic		0.26			0.43			0.31			0.62

_{1. Direct costs disclosed above exclude depreciation and amortization expense.
2. Interest expense from acquisitions, net of dispositions, and upfinancings completed for the year ended December 31, 2024.}

SUMMARIZED FINANCIAL RESULTS

DISTRIBUTABLE EARNINGS

Unaudited For the periods ended December 31 (US$ millions)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Asset management	$	694		$	649		$	2,645		$	2,554

Wealth solutions		421			253			1,350			740

BEP		107			102			428			417
BIP		84			79			336			319
BBU		8			9			35			36
BPG		351			218			855			733
Other		12			(8	)		(28	)		(43	)
Operating businesses		562			400			1,626			1,462

Corporate costs and other		(179	)		(93	)		(750	)		(533	)
Distributable earnings before realizations¹		1,498			1,209			4,871			4,223
Realized carried interest, net		108			100			403			570
Disposition gains from principal investments		—			3			1,000			13
Distributable earnings¹	$	1,606		$	1,312		$	6,274		$	4,806

_{1. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.}

RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS

Unaudited For the periods ended December 31 (US$ millions)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Net income	$	101		$	3,134		$	1,853		$	5,105
Financial statement components not included in DE:
Equity accounted fair value changes and other items		448			1,097			2,679			2,902
Fair value changes and other		1,685			1,549			2,652			1,952
Depreciation and amortization		2,417			2,427			9,737			9,075
Disposition gains in net income		(659	)		(4,424	)		(1,234	)		(6,080	)
Deferred income taxes		82			(416	)		(341	)		(897	)
Non-controlling interests in the above items¹		(2,560	)		(2,064	)		(10,570	)		(7,941	)
Less: realized carried interest, net		(108	)		(100	)		(403	)		(570	)
Working capital, net		92			6			498			677
Distributable earnings before realizations²		1,498			1,209			4,871			4,223
Realized carried interest, net³		108			100			403			570
Disposition gains from principal investments		—			3			1,000			13
Distributable earnings²	$	1,606		$	1,312		$	6,274		$	4,806

_{1. Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. By adjusting DE attributable to non-controlling interests, we are able to remove the portion of DE earned at non-wholly owned subsidiaries that is not attributable to Brookfield.
2. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.}
_{3. Includes our share of Oaktree’s distributable earnings attributable to realized carried interest.}

EARNINGS PER SHARE

Unaudited For the periods ended December 31 (millions, except per share amounts)	Three Months Ended						Years Ended
		2024			2023			2024			2023
Net income	$	101		$	3,134		$	1,853		$	5,105
Non-controlling interests		331			(2,435	)		(1,212	)		(3,975	)
Net income attributable to shareholders		432			699			641			1,130
Preferred share dividends¹		(41	)		(43	)		(168	)		(166	)
Net income available to common shareholders		391			656			473			964
Dilutive impact of exchangeable shares of affiliate		3			3			12			5
Net income available to common shareholders including dilutive impact of exchangeable shares	$	394		$	659		$	485		$	969

Weighted average shares		1,508.3			1,540.1			1,511.5			1,558.5
Dilutive effect of conversion of options and escrowed shares using treasury stock method² and exchangeable shares of affiliate		81.1			40.8			73.1			29.7
Shares and share equivalents		1,589.4			1,580.9			1,584.6			1,588.2

Diluted earnings per share³	$	0.25		$	0.42		$	0.31		$	0.61

_{1. Excludes dividends paid on perpetual subordinated notes of $2 million (2023 – $2 million) and $10 million (2023 – $10 million) for the three months and year ended December 31, 2024, which are recognized within net income.
2. Includes management share option plan and escrowed stock plan.}
_{3. Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.}

Additional Information

The Letter to Shareholders and the company’s Supplemental Information for the three months and year ended December 31, 2024, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website.

The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended December 31, 2024, which have been prepared using IFRS, as issued by the IASB. The amounts have not been audited by Brookfield Corporation’s external auditor.

Brookfield Corporation’s Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our dividends can be found on our website under Stock & Distributions/Distribution History.

Quarterly Earnings Call Details

Investors, analysts and other interested parties can access Brookfield Corporation’s 2024 Fourth Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield Corporation’s website under the Reports & Filings section at www.bn.brookfield.com.

To participate in the Conference Call today at 10:00 a.m. ET, please pre-register at https://register.vevent.com/register/BIf7f2f2b5bdd84f708b0fc3cd0fd714dd. Upon registering, you will be emailed a dial-in number, and unique PIN. The Conference Call will also be webcast live at https://edge.media-server.com/mmc/p/5vbgiehc. For those unable to participate in the Conference Call, the telephone replay will be archived and available until February 13, 2026. To access this rebroadcast, please visit: https://edge.media-server.com/mmc/p/5vbgiehc.

About Brookfield Corporation

Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.

We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).

Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please visit our website at www.bn.brookfield.com or contact:

Media: Kerrie McHugh Tel: (212) 618-3469 Email: kerrie.mchugh@brookfield.com		Investor Relations: Angela Yulo Tel: (416) 943-7955 Email: angela.yulo@brookfield.com

Non-IFRS and Performance Measures

This news release and accompanying financial information are based on International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), unless otherwise noted.

We make reference to Distributable Earnings (“DE”). We define DE as the sum of distributable earnings from our asset management business, distributable operating earnings from our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business.

Realized carried interest and realized disposition gains are further described below:

Realized Carried Interest represents our contractual share of investment gains generated within a private fund after considering our clients’ minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance.
Realized Disposition Gains from Principal Investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE.

We use DE to assess our operating results and the value of Brookfield Corporation’s business and believe that many shareholders and analysts also find these measures of value to them.

We make reference to Operating Funds from Operations (“Operating FFO”). We define Operating FFO as the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis.

We make reference to Net Operating Income (“NOI”), which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. We present this measure as we believe it is a key indicator of our ability to impact the operating performance of our properties. As NOI excludes non-recurring items and depreciation and amortization of real estate assets, it provides a performance measure that, when compared to prior periods, reflects the impact of operations from trends in occupancy rates and rental rates.

We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.

We provide additional information on key terms and non-IFRS measures in our filings available at www.bn.brookfield.com.

_{1. Consolidated basis – includes amounts attributable to non-controlling interests.}
_{2. Excludes amounts attributable to non-controlling interests.}
_{3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8.}

Notice to Readers

Brookfield Corporation is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, and our target growth objectives.

Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).

Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation’s control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them.

When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield’s investments in this business that supported the acquisitions of its underlying operating subsidiaries.

The MIL Network –

February 14, 2025

MIL-OSI Europe: Minutes – Wednesday, 12 February 2025 – Strasbourg – Final edition

Source: European Parliament

PV-10-2025-02-12

EN

iPlPv_Sit

Minutes
Wednesday, 12 February 2025 – Strasbourg

IN THE CHAIR: Roberta METSOLA
President

1. Opening of the sitting

The sitting opened at 09:04.

2. Negotiations ahead of Parliament’s first reading (Rule 72) (action taken)

The decision of the AFET and BUDG committees to enter into interinstitutional negotiations had been announced on 10 February 2025 (minutes of 10.2.2025, item 7).

As no request for a vote pursuant to Rule 72(2) had been made, the committees responsible had been able to enter into negotiations upon expiry of the deadline.

3. Commission Work Programme 2025 (debate)

Commission statement: Commission Work Programme 2025 (2025/2500(RSP))

The President gave explanations on the conduct of the debate, as a new format was being tested.

The following spoke: Gerben-Jan Gerbrandy, on the presence of the Commission at the debate.

Maroš Šefčovič (Member of the Commission) made the statement.

The following spoke: Jeroen Lenaers, on behalf of the PPE Group, Iratxe García Pérez, on behalf of the S&D Group, Jordan Bardella, on behalf of the PfE Group, Nicola Procaccini, on behalf of the ECR Group, Valérie Hayer, on behalf of the Renew Group, Bas Eickhout, on behalf of the Verts/ALE Group, Martin Schirdewan, on behalf of The Left Group, René Aust, on behalf of the ESN Group, Tomas Tobé, Camilla Laureti, Sebastiaan Stöteler, who also answered a blue-card question from Gerben-Jan Gerbrandy, Patryk Jaki, who also answered a blue-card question from Yvan Verougstraete, Billy Kelleher, Kira Marie Peter-Hansen, who also answered a blue-card question from Tomáš Zdechovský, Pasquale Tridico, Christine Anderson, Kateřina Konečná, who also answered a blue-card question from Tomáš Zdechovský, Dolors Montserrat, Mohammed Chahim, Tamás Deutsch, who also answered a blue-card question from Martin Hojsík, Lídia Pereira, who also answered a blue-card question from João Oliveira, Gabriele Bischoff, Charlie Weimers, who also answered a blue-card question from Petras Gražulis, Gerben-Jan Gerbrandy, who also answered a blue-card question from Sander Smit, Željana Zovko, Damian Boeselager, Andrey Novakov, Yannis Maniatis, Jorge Buxadé Villalba, Adrian-George Axinia, Gordan Bosanac, Tomislav Sokol, Ana Catarina Mendes, Irene Montero, Monika Beňová, Lena Düpont, Alex Agius Saliba, Karlo Ressler, Paolo Borchia, Assita Kanko, Martin Hojsík, Angelika Niebler, Anna Bryłka, Zsuzsanna Borvendég, Elissavet Vozemberg-Vrionidi, Heléne Fritzon, Harald Vilimsky, Beata Szydło, Paulo Cunha, who also answered a blue-card question from João Oliveira, Mario Mantovani, Hannah Neumann, Li Andersson, Thomas Geisel, Nikolina Brnjac, Kathleen Van Brempt, Gilles Pennelle, Ioan-Rareş Bogdan and Marion Maréchal.

The following spoke under the catch-the-eye procedure: Michał Wawrykiewicz, Juan Fernando López Aguilar, Sebastian Tynkkynen, Hilde Vautmans, Tilly Metz, Lynn Boylan, Lukas Sieper, Sunčana Glavak, Maria Grapini, Bert-Jan Ruissen, Seán Kelly, Vytenis Povilas Andriukaitis, Thomas Bajada, Cristina Maestre and Jean-Marc Germain.

The following spoke: Maroš Šefčovič.

The following spoke: Jeroen Lenaers, who referred to the presence of the Commission at the debate.

The debate closed.

4. One year after the murder of Alexei Navalny and the continued repression of the democratic opposition in Russia (debate)

Statements by Parliament: One year after the murder of Alexei Navalny and the continued repression of the democratic opposition in Russia (2024/2526(RSP))

The President made an introductory address.

The following spoke: Sandra Kalniete, on behalf of the PPE Group, Andreas Schieder, on behalf of the S&D Group, Pierre-Romain Thionnet, on behalf of the PfE Group, Nicola Procaccini, on behalf of the ECR Group, Bernard Guetta, on behalf of the Renew Group, Sergey Lagodinsky, on behalf of the Verts/ALE Group, Martin Schirdewan, on behalf of The Left Group, and Petar Volgin, on behalf of the ESN Group.

The debate closed.

(The sitting was suspended for a few moments.)

IN THE CHAIR: Sophie WILMÈS
Vice-President

5. Resumption of the sitting

The sitting resumed at 12:05.

6. Voting time

For detailed results of the votes, see also ‘Results of votes’ and ‘Results of roll-call votes’.

6.1. VAT: rules for the digital age * (vote)

Report on the draft Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age [15159/2024 – C10-0170/2024 – 2022/0407(CNS)] – Committee on Economic and Monetary Affairs. Rapporteur: Ľudovít Ódor (A10-0001/2025)

(Majority of the votes cast)

COUNCIL DRAFT

Approved by single vote (P10_TA(2025)0012)

The following had spoken:

Before the vote, Ľudovít Ódor (rapporteur) to make a statement on the basis of Rule 165(4).

(‘Results of votes’, item 1)

6.2. Administrative cooperation in the field of taxation * (vote)

Report on the proposal for a Council directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation [COM(2024)0497 – C10-0169/2024 – 2024/0276(CNS)] – Committee on Economic and Monetary Affairs. Rapporteur: Aurore Lalucq (A10-0002/2025)

(Majority of the votes cast)

COMMISSION PROPOSAL AU CONSEIL

Approved by single vote (P10_TA(2025)0013)

(‘Results of votes’, item 2)

6.3. Objection pursuant to Rule 115(2) and (3): Genetically modified maize DP910521 (vote)

Motion for a resolution tabled by the ENVI Committee, in accordance with Rule 115(2) and 115(3), (B10-0061/2025) – Members responsible: Martin Häusling, Biljana Borzan, Anja Hazekamp

(Majority of the votes cast)

MOTION FOR A RESOLUTION

Adopted (P10_TA(2025)0014)

(‘Results of votes’, item 3)

6.4. Objection pursuant to Rule 115(2) and (3): Genetically modified maize MON 95275 (vote)

Motion for a resolution tabled by the ENVI Committee, in accordance with Rule 115(2) and 115(3), on the draft Commission implementing decision authorising the placing on the market of products containing, consisting of or produced from genetically modified maize MON 95275 pursuant to Regulation (EC) No 1829/2003 of the European Parliament and of the Council (D102172/03 – 2024/3011(RSP)) (B10-0060/2025) – Members responsible: Martin Häusling, Biljana Borzan, Anja Hazekamp

(Majority of the votes cast)

MOTION FOR A RESOLUTION

Adopted (P10_TA(2025)0015)

(‘Results of votes’, item 4)

(The sitting was suspended at 12:11.)

IN THE CHAIR: Martin HOJSÍK
Vice-President

7. Resumption of the sitting

The sitting resumed at 12:15.

8. Approval of the minutes of the previous sitting

The minutes of the previous sitting were approved.

9. Collaboration between conservatives and the far right as a threat to competitiveness in the EU (topical debate)

The following spoke: René Repasi to open the debate proposed by the S&D Group.

The following spoke: Adam Szłapka (President-in-Office of the Council) and Stéphane Séjourné (Executive Vice-President of the Commission).

The following spoke: Daniel Caspary, on behalf of the PPE Group, Javi López, on behalf of the S&D Group, António Tânger Corrêa, on behalf of the PfE Group, Carlo Fidanza, on behalf of the ECR Group, Billy Kelleher, on behalf of the Renew Group, Daniel Freund, on behalf of the Verts/ALE Group, Martin Schirdewan, on behalf of The Left Group, Ivan David, on behalf of the ESN Group, Lukas Mandl, Heléne Fritzon, Klara Dostalova, Jadwiga Wiśniewska, Sandro Gozi, Maria Ohisalo, Marina Mesure, Markus Buchheit, Lukas Sieper, Angelika Niebler, Katarina Barley, Anders Vistisen, Charlie Weimers, Charles Goerens, Thomas Waitz, Jussi Saramo, Erik Kaliňák, Alma Ezcurra Almansa, Mohammed Chahim, Paolo Borchia, Assita Kanko, Moritz Körner, Reinier Van Lanschot, Luis-Vicențiu Lazarus, Riho Terras, Alessandra Moretti, Ondřej Knotek, Stefano Cavedagna, Anna Stürgkh, Majdouline Sbai, François-Xavier Bellamy, Andreas Schieder, Jorge Buxadé Villalba, Cristian Terheş, Stefan Berger, Vasile Dîncu, Afroditi Latinopoulou, Thomas Pellerin-Carlin, Csaba Dömötör, Estelle Ceulemans, Jean-Paul Garraud, Tiemo Wölken and Marc Angel.

The following spoke: Stéphane Séjourné and Adam Szłapka.

The debate closed.

10. Competitiveness Compass (debate)

Council and Commission statements: Competitiveness Compass (2025/2531(RSP))

Adam Szłapka (President-in-Office of the Council) and Stéphane Séjourné (Executive Vice-President of the Commission) made the statements.

The following spoke: Christian Ehler, on behalf of the PPE Group.

IN THE CHAIR: Roberts ZĪLE
Vice-President

The following spoke: Mohammed Chahim, on behalf of the S&D Group, Tom Vandendriessche, on behalf of the PfE Group, Johan Van Overtveldt, on behalf of the ECR Group, Morten Løkkegaard, on behalf of the Renew Group, Marie Toussaint, on behalf of the Verts/ALE Group, Hanna Gedin, on behalf of The Left Group, Sarah Knafo, on behalf of the ESN Group, Markus Ferber, Gabriele Bischoff, who also answered a blue-card question from Bogdan Rzońca, Anders Vistisen, Piotr Müller, João Cotrim De Figueiredo, Ville Niinistö, Anthony Smith, Lefteris Nikolaou-Alavanos, Peter Liese, Alex Agius Saliba, Julie Rechagneux, who also answered a blue-card question from Anthony Smith, Elena Donazzan, Pascal Canfin, Sara Matthieu, Per Clausen, who also answered a blue-card question from Jadwiga Wiśniewska, Andreas Schwab, Irene Tinagli, who also answered a blue-card question from Diana Iovanovici Şoşoacă, András Gyürk, Gheorghe Piperea, Svenja Hahn, João Oliveira, Lídia Pereira, Aurore Lalucq, Jana Nagyová, Giovanni Crosetto, Anna-Maja Henriksson, Rudi Kennes, Massimiliano Salini, Ana Catarina Mendes, who also answered blue-card questions from João Oliveira and Lídia Pereira, Margarita de la Pisa Carrión, who also answered a blue-card question from Dario Nardella, Kosma Złotowski, Anna Stürgkh, Fernando Navarrete Rojas, Estelle Ceulemans, Sebastian Kruis, Dick Erixon, Jeannette Baljeu, Jens Gieseke, Jonás Fernández, Tomasz Buczek, Antonella Sberna, Oihane Agirregoitia Martínez, Tom Berendsen, Laura Ballarín Cereza, Pascale Piera, Nora Junco García, Cynthia Ní Mhurchú, Pilar del Castillo Vera, Dario Nardella, Ľudovít Ódor, Eszter Lakos and Carla Tavares.

IN THE CHAIR: Christel SCHALDEMOSE
Vice-President

The following spoke: Virgil-Daniel Popescu, Lara Wolters, Jessica Polfjärd, Delara Burkhardt, Eero Heinäluoma, Victor Negrescu and Marcos Ros Sempere.

The following spoke under the catch-the-eye procedure: Hélder Sousa Silva, Nina Carberry, Maria Zacharia, Maria Grapini and Sebastian Tynkkynen.

The following spoke: Stéphane Séjourné and Adam Szłapka.

The debate closed.

11. Composition of committees and delegations

The ECR Group had notified the President of the following decisions changing the composition of the committees and delegations:

– ITRE Committee: Diego Solier to replace Carlo Ciccioli

– PETI Committee: Chiara Gemma

The decisions took effect as of that day.

12. Need for targeted support to EU regions bordering Russia, Belarus and Ukraine (debate)

Council and Commission statements: Need for targeted support to EU regions bordering Russia, Belarus and Ukraine (2025/2532(RSP))

Adam Szłapka (President-in-Office of the Council) and Raffaele Fitto (Executive Vice-President of the Commission) made the statements.

The following spoke: Andrzej Halicki, on behalf of the PPE Group, Marcos Ros Sempere, on behalf of the S&D Group, Sebastian Tynkkynen, on behalf of the ECR Group, Ľubica Karvašová, on behalf of the Renew Group, Mārtiņš Staķis, on behalf of the Verts/ALE Group, Marcin Sypniewski, on behalf of the ESN Group, Ioan-Rareş Bogdan, Marina Kaljurand, Tobiasz Bocheński, Elsi Katainen, Michael von der Schulenburg, Andrey Novakov, Eero Heinäluoma, Georgiana Teodorescu, Eugen Tomac, Mika Aaltola, Carla Tavares, Aurelijus Veryga, Petras Auštrevičius, Riho Terras, Reinis Pozņaks, Christophe Gomart and Maciej Wąsik.

The following spoke under the catch-the-eye procedure: Seán Kelly, Juan Fernando López Aguilar, Liudas Mažylis, Vilija Blinkevičiūtė and Diana Iovanovici Şoşoacă.

The following spoke: Raffaele Fitto and Adam Szłapka.

The debate closed.

13. US withdrawal from the Paris Climate Agreement and the World Health Organisation, and the suspension of US development and humanitarian aid (debate)

Commission statement: US withdrawal from the Paris Climate Agreement and the World Health Organisation, and the suspension of US development and humanitarian aid (2025/2527(RSP))

Hadja Lahbib (Member of the Commission) made the statement.

The following spoke: Michał Szczerba, on behalf of the PPE Group, Mohammed Chahim, on behalf of the S&D Group, Ondřej Knotek, on behalf of the PfE Group, Alexandr Vondra, on behalf of the ECR Group, Barry Andrews, on behalf of the Renew Group, Michael Bloss, on behalf of the Verts/ALE Group, Jonas Sjöstedt, on behalf of The Left Group, Christine Anderson, on behalf of the ESN Group, Udo Bullmann, who also declined to take a blue-card question from Alexander Sell, António Tânger Corrêa, Anna Zalewska, Dan Barna, Ignazio Roberto Marino, Isabel Serra Sánchez, Alexander Sell, Ondřej Dostál, Tomislav Sokol, Vytenis Povilas Andriukaitis, Gerolf Annemans, Francesco Torselli, Charles Goerens, Lena Schilling, Marc Botenga, Anja Arndt, David McAllister, Tiemo Wölken, who also answered a blue-card question from Alexander Sell, Julien Sanchez, Laurence Trochu, Sigrid Friis and Isabella Lövin.

IN THE CHAIR: Antonella SBERNA
Vice-President

The following spoke: Catarina Martins, who also answered a blue-card question from Diana Iovanovici Şoşoacă, Stanislav Stoyanov, Radan Kanev, Nicola Zingaretti, Juan Carlos Girauta Vidal, Sergio Berlato, who also answered a blue-card question from Radan Kanev, Michal Wiezik, Rasmus Nordqvist, Valentina Palmisano, Milan Mazurek, Lídia Pereira, Marta Temido, who also answered a blue-card question from João Oliveira, Marieke Ehlers, who also answered a blue-card question from Nicolae Ştefănuță, Lukas Sieper on some of the remarks made by the previous speaker, Nikolas Farantouris, Sander Smit, who also answered a blue-card question from Anna Strolenberg, Antonio Decaro, Hermann Tertsch, Murielle Laurent, Roman Haider, Leire Pajín, Virginie Joron, Heléne Fritzon, Gerald Hauser, Robert Biedroń, Anne-Sophie Frigout and Aleksandar Nikolic.

The following spoke under the catch-the-eye procedure: Seán Kelly, Marit Maij, Alexander Jungbluth, Lukas Sieper, Nikolina Brnjac and Michał Wawrykiewicz.

The following spoke: Hadja Lahbib.

The debate closed.

14. Honouring the memory of Ján Kuciak and Martina Kušnírová: advancing media freedom, strengthening the rule of law and protecting journalists across the EU (debate)

Commission statement: Honouring the memory of Ján Kuciak and Martina Kušnírová: advancing media freedom, strengthening the rule of law and protecting journalists across the EU (2025/2556(RSP))

Michael McGrath (Member of the Commission) made the statement.

The following spoke: Miriam Lexmann, on behalf of the PPE Group, Ana Catarina Mendes, on behalf of the S&D Group, Juan Carlos Girauta Vidal, on behalf of the PfE Group, Małgorzata Gosiewska, on behalf of the ECR Group, Veronika Cifrová Ostrihoňová, on behalf of the Renew Group, Tineke Strik, on behalf of the Verts/ALE Group, Konstantinos Arvanitis, on behalf of The Left Group, Milan Uhrík, on behalf of the ESN Group, David Casa, Emma Rafowicz, Irena Joveva, Katarína Roth Neveďalová, Magdalena Adamowicz, Sophie Wilmès, Hristo Petrov and Laurence Farreng.

IN THE CHAIR: Esteban GONZÁLEZ PONS
Vice-President

The following spoke under the catch-the-eye procedure: Juan Fernando López Aguilar, Maria Zacharia and Lukas Sieper.

The following spoke: Michael McGrath.

The debate closed.

15. Debate on cases of breaches of human rights, democracy and the rule of law (debate)

(For the titles and authors of the motions for resolutions, see minutes of 12.2.2025, item I.)

15.1. Recent dismissals and arrests of mayors in Türkiye

Motions for resolutions B10-0100/2025, B10-0103/2025, B10-0110/2025, B10-0115/2025, B10-0119/2025, B10-0121/2025 and B10-0124/2025 (2025/2546(RSP))

Michalis Hadjipantela, Evin Incir, Malik Azmani, Vladimir Prebilič, Isabel Serra Sánchez and Sebastiaan Stöteler introduced their groups’ motions for resolutions.

The following spoke: Reinhold Lopatka, on behalf of the PPE Group, Nacho Sánchez Amor, on behalf of the S&D Group, Arkadiusz Mularczyk, on behalf of the ECR Group, Mélissa Camara, on behalf of the Verts/ALE Group, Giorgos Georgiou, on behalf of The Left Group, Nikos Papandreou and Per Clausen.

The following spoke under the catch-the-eye procedure: Geadis Geadi and Maria Zacharia.

The following spoke: Glenn Micallef (Member of the Commission).

The debate closed.

Vote: 13 February 2025.

15.2. Repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular

Motions for resolutions B10-0126/2025, B10-0128/2025, B10-0130/2025, B10-0131/2025, B10-0132/2025, B10-0134/2025 and B10-0135/2025 (2025/2547(RSP))

Željana Zovko, Leire Pajín, Carlo Fidanza, Oihane Agirregoitia Martínez, Diana Riba i Giner and Tomasz Froelich introduced their groups’ motions for resolutions.

The following spoke: Antonio López-Istúriz White, on behalf of the PPE Group, Francisco Assis, on behalf of the S&D Group, Davor Ivo Stier, Gabriel Mato and Francisco José Millán Mon.

The following spoke: Glenn Micallef (Member of the Commission).

The debate closed.

Vote: 13 February 2025.

15.3. Continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu

Motions for resolutions B10-0101/2025, B10-0104/2025, B10-0111/2025, B10-0113/2025, B10-0117/2025, B10-0120/2025, B10-0122/2025 and B10-0123/2025 (2025/2548(RSP))

Miriam Lexmann, Hannes Heide, Bert-Jan Ruissen, Catarina Vieira, Merja Kyllönen, Susanna Ceccardi and Tomasz Froelich introduced their groups’ motions for resolutions.

The following spoke: Arkadiusz Mularczyk, on behalf of the ECR Group.

The following spoke: Glenn Micallef (Member of the Commission).

The debate closed.

Vote: 13 February 2025.

16. Silent crisis: the mental health of Europe’s youth (debate)

Commission statement: Silent crisis: the mental health of Europe’s youth (2025/2552(RSP))

Glenn Micallef (Member of the Commission) made the statement.

The following spoke: Tomislav Sokol, on behalf of the PPE Group, Alex Agius Saliba, on behalf of the S&D Group, Aurelijus Veryga, on behalf of the ECR Group, Veronika Cifrová Ostrihoňová, on behalf of the Renew Group, Ignazio Roberto Marino, on behalf of the Verts/ALE Group, Catarina Martins, on behalf of The Left Group, Milan Mazurek, on behalf of the ESN Group, Adam Jarubas, Nikos Papandreou, Michele Picaro and Nicolae Ştefănuță.

IN THE CHAIR: Victor NEGRESCU
Vice-President

The following spoke: Emma Fourreau, Alvise Pérez, András Tivadar Kulja, Romana Jerković, Kim Van Sparrentak, Elena Nevado del Campo, Nicolás González Casares, Peter Agius, Maria Walsh and Jessika Van Leeuwen.

The following spoke under the catch-the-eye procedure: Martine Kemp, Ana Miranda Paz, João Oliveira and Sunčana Glavak.

The following spoke: Glenn Micallef.

The debate closed.

17. Explanations of vote

Written explanations of vote

Explanations of vote submitted in writing under Rule 201 appear on the Members’ pages on Parliament’s website.

18. Agenda of the next sitting

The next sitting would be held the following day, 13 February 2025, starting at 09:00. The agenda was available on Parliament’s website.

19. Approval of the minutes of the sitting

In accordance with Rule 208(3), the minutes of the sitting would be put to the House for approval at the beginning of the afternoon of the next sitting.

20. Closure of the sitting

The sitting closed at 21:26.

LIST OF DOCUMENTS SERVING AS A BASIS FOR THE DEBATES AND DECISIONS OF PARLIAMENT

I. Motions for resolutions tabled

Recent dismissals and arrests of mayors in Türkiye

The following Members or political groups had requested that a debate be held, in accordance with Rule 150, on the following motions for resolutions:

on the recent dismissals and arrests of mayors in Türkiye (B10-0100/2025)
Isabel Serra Sánchez, Özlem Demirel
on behalf of The Left Group

on the recent dismissals and arrests of mayors in Türkiye (B10-0103/2025)
Vladimir Prebilič, Mélissa Camara, Mounir Satouri, Vicent Marzà Ibáñez, Catarina Vieira, Maria Ohisalo, Erik Marquardt, Nicolae Ştefănuță, Ville Niinistö, Villy Søvndal
on behalf of the Verts/ALE Group

on the recent dismissals and arrests of mayors in Türkiye (B10-0110/2025)
Malik Azmani, Oihane Agirregoitia Martínez, Petras Auštrevičius, Dan Barna, Benoit Cassart, Olivier Chastel, Veronika Cifrová Ostrihoňová, Karin Karlsbro, Ľubica Karvašová, Jan-Christoph Oetjen, Marie-Agnes Strack-Zimmermann, Hilde Vautmans, Sophie Wilmès, Lucia Yar
on behalf of the Renew Group

on the recent dismissals and arrests of mayors in Türkiye (B10-0115/2025)
Sebastiaan Stöteler, Marieke Ehlers, Jaroslav Bžoch, Roberto Vannacci, Susanna Ceccardi
on behalf of the PfE Group

on the recent dismissals and arrests of mayors in Türkiye (B10-0119/2025)
Yannis Maniatis, Francisco Assis, Nacho Sánchez Amor, Evin Incir, Nikos Papandreou, Pina Picierno
on behalf of the S&D Group

on the recent dismissals and arrests of mayors in Türkiye (B10-0121/2025)
Sebastião Bugalho, Vangelis Meimarakis, Željana Zovko, Wouter Beke, Antonio López Istúriz White, Isabel Wiseler Lima, Ingeborg Ter Laak, Tomáš Zdechovský, Mirosława Nykiel, Jessica Polfjärd, Luděk Niedermayer, Jan Farský, Inese Vaidere
on behalf of the PPE Group

on the recent dismissals and arrests of mayors in Türkiye (B10-0124/2025)
Joachim Stanisław Brudziński, Sebastian Tynkkynen, Małgorzata Gosiewska, Waldemar Tomaszewski, Veronika Vrecionová, Ondřej Krutílek, Assita Kanko, Alexandr Vondra
on behalf of the ECR Group

Repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular

The following Members or political groups had requested that a debate be held, in accordance with Rule 150, on the following motions for resolutions:

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0126/2025)
Sebastião Bugalho, Željana Zovko, Antonio López-Istúriz White, Gabriel Mato, David McAllister, Vangelis Meimarakis, Wouter Beke, Isabel Wiseler-Lima, Ingeborg Ter Laak, Tomáš Zdechovský, Mirosława Nykiel, Jessica Polfjärd, Luděk Niedermayer, Jan Farský, Andrey Kovatchev, Inese Vaidere
on behalf of the PPE Group

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0128/2025)
Diana Riba i Giner, Catarina Vieira, Maria Ohisalo, Nicolae Ştefănuță, Ville Niinistö
on behalf of the Verts/ALE Group

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0130/2025)
Tomasz Froelich
on behalf of the ESN Group

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0131/2025)
Bernard Guetta, Oihane Agirregoitia Martínez, Petras Auštrevičius, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Engin Eroglu, Karin Karlsbro, Ľubica Karvašová, Ilhan Kyuchyuk, Urmas Paet, Marie-Agnes Strack-Zimmermann, Hilde Vautmans, Lucia Yar
on behalf of the Renew Group

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0132/2025)
Hermann Tertsch, Jorge Martín Frías, Gerolf Annemans, Nikola Bartůšek, Roberto Vannacci, Susanna Ceccardi
on behalf of the PfE Group

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0134/2025)
Yannis Maniatis, Francisco Assis, Leire Pajín
on behalf of the S&D Group

on the repression by the Ortega-Murillo regime in Nicaragua, targeting human rights defenders, political opponents and religious communities in particular (B10-0135/2025)
Adam Bielan, Jadwiga Wiśniewska, Mariusz Kamiński, Ondřej Krutílek, Veronika Vrecionová, Joachim Stanisław Brudziński, Małgorzata Gosiewska, Waldemar Tomaszewski, Sebastian Tynkkynen, Assita Kanko, Ivaylo Valchev, Alexandr Vondra, Aurelijus Veryga, Alberico Gambino
on behalf of the ECR Group

Continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu

The following Members or political groups had requested that a debate be held, in accordance with Rule 150, on the following motions for resolutions:

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0101/2025)
Merja Kyllönen
on behalf of The Left Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0104/2025)
Catarina Vieira, Maria Ohisalo, Nicolae Ştefănuță
on behalf of the Verts/ALE Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0111/2025)
Susanna Ceccardi, Nikola Bartůšek
on behalf of the PfE Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0113/2025)
Tomasz Froelich
on behalf of the ESN Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0117/2025)
Jan Christoph Oetjen, Oihane Agirregoitia Martínez, Petras Auštrevičius, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Engin Eroglu, Karin Karlsbro, Ilhan Kyuchyuk, Urmas Paet, Marie Agnes Strack Zimmermann, Hilde Vautmans, Lucia Yar
on behalf of the Renew Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0120/2025)
Yannis Maniatis, Francisco Assis, Hannes Heide
on behalf of the S&D Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0122/2025)
Sebastião Bugalho, Vangelis Meimarakis, Željana Zovko, Wouter Beke, Isabel Wiseler Lima, Ingeborg Ter Laak, Tomáš Zdechovský, Mirosława Nykiel, Jessica Polfjärd, Luděk Niedermayer, Jan Farský, Inese Vaidere, Andrey Kovatchev
on behalf of the PPE Group

on continuing detention and risk of the death penalty for individuals in Nigeria charged with blasphemy, notably the case of Yahaya Sharif-Aminu (B10-0123/2025)
Bert Jan Ruissen, Jadwiga Wiśniewska, Ondřej Krutílek, Veronika Vrecionová, Bogdan Rzońca, Joachim Stanisław Brudziński, Małgorzata Gosiewska, Waldemar Tomaszewski, Michał Dworczyk, Sebastian Tynkkynen, Assita Kanko, Alexandr Vondra, Alberico Gambino
on behalf of the ECR Group

II. Delegated acts (Rule 114(2))

Draft delegated acts forwarded to Parliament

– Commission Delegated Regulation supplementing Regulation (EU) 600/2014 of the European Parliament and of the Council as regards OTC derivatives identifying reference data to be used for the purposes of the transparency requirements laid down in Article 8a(2) and Articles 10 and 21 (C(2025)00417 – 2025/2534(DEA))

Deadline for raising objections: 3 months from the date of receipt of 24 January 2025

referred to committee responsible: ECON

– Commission Delegated Regulation amending the regulatory technical standards laid down in Delegated Regulation (EU) 2021/931 as regards the specification of the formula for calculating the supervisory delta of call and put options mapped to the commodity risk category (C(2025)00459 – 2025/2537(DEA))

Deadline for raising objections: 3 months from the date of receipt of 28 January 2025

referred to committee responsible: ECON

– Commission Delegated Regulation amending Delegated Regulation (EU) 2019/624 as regards ante-mortem inspections in slaughterhouses, ante-mortem inspections at the holding of provenance and post-mortem inspections (C(2025)00539 – 2025/2540(DEA))

Deadline for raising objections: 2 months from the date of receipt of 30 January 2025

referred to committee responsible: ENVI
opinion: AGRI

– Commission Delegated Regulation amending the regulatory technical standards laid down in Delegated Regulation (EU) 2022/2059, Delegated Regulation (EU) 2022/2060 and Delegated Regulation (EU) 2023/1577 as regards the technical details of back-testing and profit and loss attribution requirements, the criteria for assessing the modellability of risk factors, and the treatment of foreign-exchange risk and commodity risk in the non-trading book (C(2025)00595 – 2025/2543(DEA))

Deadline for raising objections: 3 months from the date of receipt of 3 February 2025

referred to committee responsible: ECON

– Commission Delegated Regulation supplementing Directive 2003/87/EC of the European Parliament and of the Council by laying down detailed rules for the yearly calculation of price differences between eligible aviation fuels and fossil kerosene and for the EU ETS allocation of allowances for the use of eligible aviation fuels (C(2025)00681 – 2025/2559(DEA))

Deadline for raising objections: 2 months from the date of receipt of 6 February 2025

referred to committee responsible: ENVI
opinion: ITRE

– Commission Delegated Regulation amending Regulation (EU) 2023/2053 of the European Parliament and of the Council as regards the management of bluefin tuna in the eastern Atlantic and in the Mediterranean (C(2025)00748 – 2025/2560(DEA))

Deadline for raising objections: 2 months from the date of receipt of 7 February 2025

referred to committee responsible: PECH

III. Implementing measures (Rule 115)

Draft implementing measures falling under the regulatory procedure with scrutiny forwarded to Parliament

– Commission Regulation amending Regulation (EU) 2023/1803 as regards International Financial Reporting Standard 9 and International Financial Reporting Standard 7 (Text with EEA relevance) (D103844/01 – 2025/2525(RPS) – deadline: 21 April 2025)
referred to committee responsible: ECON
opinion: JURI

– Commission Regulation amending and correcting Regulation (EU) No 142/2011 as regards certain requirements for the placing on the market and imports of animal by-products and derived products not intended for human consumption (D103880/01 – 2025/2535(RPS) – deadline: 28 April 2025)
referred to committee responsible: ENVI

IV. Transfers of appropriations and budgetary decisions

In accordance with Article 29 of the Financial Regulation, the Committee on Budgets had decided to approve transfer of appropriations No 1/2025 – Section IX – European Data Protection Supervisor.

In accordance with Article 31(1) of the Financial Regulation, the Committee on Budgets had decided to approve the Commission’s transfer of appropriations DEC 01/2025 – Section III – Commission.

In accordance with Article 31(6) of the Financial Regulation, the Council of the European Union had decided to approve the Commission’s transfer of appropriations DEC 01/2025 – Section III – Commission.

ATTENDANCE REGISTER

Present:

Aaltola Mika, Abadía Jover Maravillas, Adamowicz Magdalena, Aftias Georgios, Agirregoitia Martínez Oihane, Agius Peter, Agius Saliba Alex, Alexandraki Galato, Allione Grégory, Al-Sahlani Abir, Anadiotis Nikolaos, Anderson Christine, Andersson Li, Andresen Rasmus, Andrews Barry, Andriukaitis Vytenis Povilas, Androuët Mathilde, Angel Marc, Annemans Gerolf, Annunziata Lucia, Antoci Giuseppe, Arias Echeverría Pablo, Arimont Pascal, Arłukowicz Bartosz, Arnaoutoglou Sakis, Arndt Anja, Arvanitis Konstantinos, Asens Llodrà Jaume, Assis Francisco, Attard Daniel, Aubry Manon, Auštrevičius Petras, Axinia Adrian-George, Azmani Malik, Bajada Thomas, Baljeu Jeannette, Ballarín Cereza Laura, Bardella Jordan, Barley Katarina, Barna Dan, Barrena Arza Pernando, Bartulica Stephen Nikola, Bartůšek Nikola, Bausemer Arno, Bay Nicolas, Bay Christophe, Beke Wouter, Beleris Fredis, Bellamy François-Xavier, Benea Adrian-Dragoş, Benifei Brando, Benjumea Benjumea Isabel, Beňová Monika, Bentele Hildegard, Berendsen Tom, Berger Stefan, Berg Sibylle, Berlato Sergio, Bernhuber Alexander, Biedroń Robert, Bielan Adam, Bischoff Gabriele, Blaha Ľuboš, Blinkevičiūtė Vilija, Blom Rachel, Bloss Michael, Bocheński Tobiasz, Boeselager Damian, Bogdan Ioan-Rareş, Bonaccini Stefano, Bonte Barbara, Borchia Paolo, Borrás Pabón Mireia, Borvendég Zsuzsanna, Borzan Biljana, Bosanac Gordan, Bosse Stine, Botenga Marc, Boyer Gilles, Boylan Lynn, Brandstätter Helmut, Brasier-Clain Marie-Luce, Braun Grzegorz, Brejza Krzysztof, Bricmont Saskia, Brnjac Nikolina, Brudziński Joachim Stanisław, Bryłka Anna, Buchheit Markus, Buczek Tomasz, Buda Daniel, Budka Borys, Bugalho Sebastião, Buła Andrzej, Bullmann Udo, Burkhardt Delara, Buxadé Villalba Jorge, Bystron Petr, Bžoch Jaroslav, Camara Mélissa, Canfin Pascal, Carberry Nina, Cârciu Gheorghe, Carême Damien, Casa David, Caspary Daniel, Cassart Benoit, Castillo Laurent, del Castillo Vera Pilar, Cavazzini Anna, Cavedagna Stefano, Ceccardi Susanna, Cepeda José, Ceulemans Estelle, Chahim Mohammed, Chaibi Leila, Chastel Olivier, Chinnici Caterina, Cifrová Ostrihoňová Veronika, Ciriani Alessandro, Cisint Anna Maria, Clausen Per, Cormand David, Corrado Annalisa, Costanzo Vivien, Cotrim De Figueiredo João, Cowen Barry, Cremer Tobias, Crespo Díaz Carmen, Cristea Andi, Crosetto Giovanni, Cunha Paulo, Dahl Henrik, Danielsson Johan, Dauchy Marie, Dávid Dóra, David Ivan, Decaro Antonio, de la Hoz Quintano Raúl, Della Valle Danilo, Deloge Valérie, De Masi Fabio, De Meo Salvatore, Deutsch Tamás, Dibrani Adnan, Diepeveen Ton, Dieringer Elisabeth, Dîncu Vasile, Disdier Mélanie, Dobrev Klára, Doherty Regina, Doleschal Christian, Dömötör Csaba, Do Nascimento Cabral Paulo, Donazzan Elena, Dorfmann Herbert, Dostalova Klara, Dostál Ondřej, Düpont Lena, Dworczyk Michał, Ecke Matthias, Ehler Christian, Ehlers Marieke, Eriksson Sofie, Erixon Dick, Eroglu Engin, Estaràs Ferragut Rosa, Ezcurra Almansa Alma, Falcă Gheorghe, Farantouris Nikolas, Farreng Laurence, Farský Jan, Ferber Markus, Ferenc Viktória, Fernández Jonás, Fidanza Carlo, Firea Gabriela, Firmenich Ruth, Fita Claire, Flanagan Luke Ming, Fourlas Loucas, Fourreau Emma, Fragkos Emmanouil, Freund Daniel, Frigout Anne-Sophie, Friis Sigrid, Fritzon Heléne, Froelich Tomasz, Funchion Kathleen, Furet Angéline, Furore Mario, Gahler Michael, Gál Kinga, Gálvez Lina, Gambino Alberico, García Hermida-Van Der Walle Raquel, Garraud Jean-Paul, Gasiuk-Pihowicz Kamila, Geadi Geadis, Gedin Hanna, Geese Alexandra, Geier Jens, Geisel Thomas, Gemma Chiara, Georgiou Giorgos, Gerbrandy Gerben-Jan, Germain Jean-Marc, Gerzsenyi Gabriella, Geuking Niels, Gieseke Jens, Giménez Larraz Borja, Girauta Vidal Juan Carlos, Glavak Sunčana, Glucksmann Raphaël, Goerens Charles, Gomart Christophe, Gomes Isilda, Gómez López Sandra, Gonçalves Bruno, Gonçalves Sérgio, González Casares Nicolás, González Pons Esteban, Gori Giorgio, Gosiewska Małgorzata, Gotink Dirk, Gozi Sandro, Grapini Maria, Gražulis Petras, Gregorová Markéta, Grims Branko, Griset Catherine, Gronkiewicz-Waltz Hanna, Groothuis Bart, Grossmann Elisabeth, Gualmini Elisabetta, Guarda Cristina, Guetta Bernard, Guzenina Maria, Győri Enikő, Gyürk András, Hadjipantela Michalis, Hahn Svenja, Haider Roman, Halicki Andrzej, Hansen Niels Flemming, Hassan Rima, Hauser Gerald, Häusling Martin, Hava Mircea-Gheorghe, Hazekamp Anja, Heide Hannes, Heinäluoma Eero, Henriksson Anna-Maja, Herbst Niclas, Herranz García Esther, Hetman Krzysztof, Hohlmeier Monika, Hojsík Martin, Holmgren Pär, Hölvényi György, Homs Ginel Alicia, Humberto Sérgio, Ijabs Ivars, Imart Céline, Inselvini Paolo, Iovanovici Şoşoacă Diana, Jaki Patryk, Jalloul Muro Hana, Jamet France, Jarubas Adam, Jerković Romana, Joński Dariusz, Joron Virginie, Jouvet Pierre, Joveva Irena, Juknevičienė Rasa, Junco García Nora, Jungbluth Alexander, Kabilov Taner, Kalfon François, Kaliňák Erik, Kaljurand Marina, Kalniete Sandra, Kamiński Mariusz, Kanev Radan, Kanko Assita, Karlsbro Karin, Kartheiser Fernand, Karvašová Ľubica, Katainen Elsi, Kefalogiannis Emmanouil, Kelleher Billy, Keller Fabienne, Kelly Seán, Kemp Martine, Kennes Rudi, Knafo Sarah, Knotek Ondřej, Kobosko Michał, Köhler Stefan, Kohut Łukasz, Kokalari Arba, Kolář Ondřej, Kollár Kinga, Kols Rihards, Konečná Kateřina, Kopacz Ewa, Körner Moritz, Kountoura Elena, Kovatchev Andrey, Krah Maximilian, Krištopans Vilis, Kruis Sebastian, Krutílek Ondřej, Kubín Tomáš, Kuhnke Alice, Kulja András Tivadar, Kulmuni Katri, Kyllönen Merja, Kyuchyuk Ilhan, Lagodinsky Sergey, Lakos Eszter, Lalucq Aurore, Lange Bernd, Langensiepen Katrin, Laššáková Judita, László András, Latinopoulou Afroditi, Laurent Murielle, Laureti Camilla, Laykova Rada, Lazarov Ilia, Lazarus Luis-Vicențiu, Le Callennec Isabelle, Leggeri Fabrice, Lenaers Jeroen, Lewandowski Janusz, Lexmann Miriam, Liese Peter, Lins Norbert, Løkkegaard Morten, Lopatka Reinhold, López Javi, López Aguilar Juan Fernando, López-Istúriz White Antonio, Lövin Isabella, Luena César, Lupo Giuseppe, McAllister David, Madison Jaak, Maestre Cristina, Magoni Lara, Magyar Péter, Maij Marit, Maląg Marlena, Manda Claudiu, Mandl Lukas, Maniatis Yannis, Mantovani Mario, Maran Pierfrancesco, Marczułajtis-Walczak Jagna, Maréchal Marion, Mariani Thierry, Marino Ignazio Roberto, Marquardt Erik, Martín Frías Jorge, Martins Catarina, Martusciello Fulvio, Mato Gabriel, Matthieu Sara, Mavrides Costas, Mayer Georg, Mazurek Milan, Mažylis Liudas, McNamara Michael, Mebarek Nora, Mehnert Alexandra, Meimarakis Vangelis, Meleti Eleonora, Mendes Ana Catarina, Mendia Idoia, Mertens Verena, Mesure Marina, Metsola Roberta, Metz Tilly, Mikser Sven, Milazzo Giuseppe, Millán Mon Francisco José, Minchev Nikola, Miranda Paz Ana, Montero Irene, Montserrat Dolors, Morace Carolina, Moreira de Sá Tiago, Moreno Sánchez Javier, Moretti Alessandra, Motreanu Dan-Ştefan, Mularczyk Arkadiusz, Müller Piotr, Mureşan Siegfried, Nagyová Jana, Nardella Dario, Navarrete Rojas Fernando, Negrescu Victor, Nemec Matjaž, Nesci Denis, Neuhoff Hans, Neumann Hannah, Nevado del Campo Elena, Niebler Angelika, Niedermayer Luděk, Niinistö Ville, Nikolaou-Alavanos Lefteris, Nikolic Aleksandar, Ní Mhurchú Cynthia, Noichl Maria, Nordqvist Rasmus, Novakov Andrey, Nykiel Mirosława, Obajtek Daniel, Ódor Ľudovít, Oetjen Jan-Christoph, Ohisalo Maria, Oliveira João, Olivier Philippe, Omarjee Younous, Ó Ríordáin Aodhán, Ozdoba Jacek, Paet Urmas, Pajín Leire, Palmisano Valentina, Panayiotou Fidias, Papadakis Kostas, Papandreou Nikos, Pappas Nikos, Pascual de la Parte Nicolás, Patriciello Aldo, Paulus Jutta, Pedro Ana Miguel, Pedulla’ Gaetano, Pellerin-Carlin Thomas, Peltier Guillaume, Penkova Tsvetelina, Pennelle Gilles, Pereira Lídia, Pérez Alvise, Peter-Hansen Kira Marie, Petrov Hristo, Picaro Michele, Picierno Pina, Picula Tonino, Piera Pascale, Pimpie Pierre, Piperea Gheorghe, de la Pisa Carrión Margarita, Pokorná Jermanová Jaroslava, Polato Daniele, Polfjärd Jessica, Popescu Virgil-Daniel, Pozņaks Reinis, Prebilič Vladimir, Princi Giusi, Pürner Friedrich, Rackete Carola, Radev Emil, Radtke Dennis, Rafowicz Emma, Ratas Jüri, Razza Ruggero, Rechagneux Julie, Regner Evelyn, Repasi René, Repp Sabrina, Ressler Karlo, Reuten Thijs, Riba i Giner Diana, Ricci Matteo, Ridel Chloé, Riehl Nela, Ripa Manuela, Ros Sempere Marcos, Roth Neveďalová Katarína, Rougé André, Ruissen Bert-Jan, Ruotolo Sandro, Rzońca Bogdan, Saeidi Arash, Salini Massimiliano, Salis Ilaria, Salla Aura, Sánchez Amor Nacho, Sanchez Julien, Sancho Murillo Elena, Sardone Silvia, Šarec Marjan, Sargiacomo Eric, Satouri Mounir, Saudargas Paulius, Sbai Majdouline, Sberna Antonella, Schaldemose Christel, Schaller-Baross Ernő, Schenk Oliver, Scheuring-Wielgus Joanna, Schieder Andreas, Schilling Lena, Schwab Andreas, Scuderi Benedetta, Seekatz Ralf, Sell Alexander, Serrano Sierra Rosa, Serra Sánchez Isabel, Sidl Günther, Sienkiewicz Bartłomiej, Sieper Lukas, Simon Sven, Singer Christine, Sinkevičius Virginijus, Sippel Birgit, Sjöstedt Jonas, Śmiszek Krzysztof, Smith Anthony, Smit Sander, Sokol Tomislav, Solier Diego, Solís Pérez Susana, Sommen Liesbet, Sonneborn Martin, Sorel Malika, Sousa Silva Hélder, Søvndal Villy, Staķis Mārtiņš, Stancanelli Raffaele, Ştefănuță Nicolae, Steger Petra, Stier Davor Ivo, Storm Kristoffer, Stöteler Sebastiaan, Stoyanov Stanislav, Strack-Zimmermann Marie-Agnes, Strada Cecilia, Streit Joachim, Strik Tineke, Strolenberg Anna, Sturdza Şerban Dimitrie, Stürgkh Anna, Sypniewski Marcin, Szczerba Michał, Szekeres Pál, Szydło Beata, Tamburrano Dario, Tânger Corrêa António, Tarczyński Dominik, Tarquinio Marco, Tarr Zoltán, Târziu Claudiu-Richard, Tavares Carla, Tegethoff Kai, Temido Marta, Teodorescu Georgiana, Teodorescu Måwe Alice, Terheş Cristian, Ter Laak Ingeborg, Terras Riho, Tertsch Hermann, Thionnet Pierre-Romain, Timgren Beatrice, Tinagli Irene, Tobé Tomas, Tolassy Rody, Tomac Eugen, Tomašič Zala, Tomaszewski Waldemar, Tomc Romana, Tonin Matej, Toom Jana, Topo Raffaele, Torselli Francesco, Tosi Flavio, Toussaint Marie, Tovaglieri Isabella, Toveri Pekka, Tridico Pasquale, Trochu Laurence, Tsiodras Dimitris, Tudose Mihai, Turek Filip, Tynkkynen Sebastian, Uhrík Milan, Vaidere Inese, Valchev Ivaylo, Vălean Adina, Valet Matthieu, Van Brempt Kathleen, Van Brug Anouk, van den Berg Brigitte, Vandendriessche Tom, Van Dijck Kris, Van Lanschot Reinier, Van Leeuwen Jessika, Vannacci Roberto, Van Overtveldt Johan, Van Sparrentak Kim, Varaut Alexandre, Vasconcelos Ana, Vasile-Voiculescu Vlad, Vautmans Hilde, Vedrenne Marie-Pierre, Ventola Francesco, Verougstraete Yvan, Veryga Aurelijus, Vešligaj Marko, Vicsek Annamária, Vieira Catarina, Vilimsky Harald, Vincze Loránt, Vind Marianne, Vistisen Anders, Vivaldini Mariateresa, Volgin Petar, von der Schulenburg Michael, Vondra Alexandr, Voss Axel, Vozemberg-Vrionidi Elissavet, Vrecionová Veronika, Vázquez Lázara Adrián, Waitz Thomas, Walsh Maria, Walsmann Marion, Warborn Jörgen, Warnke Jan-Peter, Wąsik Maciej, Wawrykiewicz Michał, Wcisło Marta, Wechsler Andrea, Weimers Charlie, Werbrouck Séverine, Wiesner Emma, Wiezik Michal, Wilmès Sophie, Winkler Iuliu, Winzig Angelika, Wiseler-Lima Isabel, Wiśniewska Jadwiga, Wölken Tiemo, Wolters Lara, Yar Lucia, Yon-Courtin Stéphanie, Yoncheva Elena, Zacharia Maria, Zalewska Anna, Žalimas Dainius, Zan Alessandro, Zdechovský Tomáš, Zdrojewski Bogdan Andrzej, Zijlstra Auke, Zīle Roberts, Zingaretti Nicola, Złotowski Kosma, Zoido Álvarez Juan Ignacio, Zovko Željana, Zver Milan

Excused:

Morano Nadine, Zarzalejos Javier

MIL OSI Europe News –

February 14, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

Loan Portfolio

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

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

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

Figure 1: Portfolio Diversification

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

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

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

Business Segments: Third Quarter Fiscal 2025

Ben Liquidity

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

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

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

Ben Custody

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

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

Business Segments: Through Nine Months Ended Fiscal 2025

Ben Liquidity

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

Ben Custody

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

Capital and Liquidity

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

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

Board Update

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

Consolidated Fiscal Third Quarter Results

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

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

NM – Not meaningful.

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

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

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

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

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

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

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

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

NM – Not meaningful.

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

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

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

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

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

NM – Not meaningful.

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

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

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

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

Earnings Webcast

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

Replay

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

About Beneficent

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

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

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

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

Important Information and Where You Can Find It

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

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

Participants in the Solicitation of Proxies in Connection with Transaction

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

Not an Offer of Securities

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

Disclaimer and Cautionary Note Regarding Forward-Looking Statements

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

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

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

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

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

Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

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

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

Table 8: Non-GAAP Reconciliations

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

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

⁽¹⁾ Includes legal and professional fees related lawsuits.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

February 14, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

Fourth Quarter 2024 Financial Results

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

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

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

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

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

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

Full Year 2024 Financial

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

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

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

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

Balance Sheet and Cash Flow

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

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

Outstanding Share

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

Q1 2025 Outlook

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

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

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

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

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

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

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

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

Display Driver IC Businesses

LDDIC

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

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

SMDDIC

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

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

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

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

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

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

Non-Driver Product Categories

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

Timing Controller (Tcon)

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

WiseEye™ Ultralow Power AI Sensing

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

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

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

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

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

Wafer Level Optics (WLO)

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

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

LCoS

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

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

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

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

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

Live Webcast (Video and Audio): http://www.zucast.com/webcast/br8wqbB4 Toll Free Dial-in Number (Audio Only):
	Hong Kong 2112-1444 Taiwan 0080-119-6666 Australia 1-800-015-763 Canada 1-877-252-8508 China (1) 4008-423-888 China (2) 4006-786-286 Singapore 800-492-2072 UK 0800-068-8186 United States (1) 1-800-811-0860 United States (2) 1-866-212-5567
Dial-in Number (Audio Only):
	Taiwan Domestic Access 02-3396-1191 International Access +886-2-3396-1191
Participant PIN Code: 3329013 #

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

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

http://www.himax.com.tw

Forward Looking Statements

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

Company Contacts:

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

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

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

-Financial Tables-

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

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

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

Operating income		23,079			16,681			5,856

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

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

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

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

	Twelve Months Ended December 31,
		2024			2023

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

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

Operating income		68,221			43,212

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

February 13, 2025

MIL-OSI: Euronet Reports Record Results Across All Financial Metrics For The Fourth Quarter And Full Year 2024

Source: GlobeNewswire (MIL-OSI)

LEAWOOD, Kan., Feb. 12, 2025 (GLOBE NEWSWIRE) — Euronet (or the “Company”) (NASDAQ: EEFT), a global leader in payments processing and cross-border transactions, today announced fourth quarter and full year 2024 financial results.

Euronet reports the following consolidated results for the fourth quarter 2024 compared with the same period of 2023:

Revenues of $1,047.3 million, a 9% increase from $957.7 million (10% increase on a constant currency1 basis).
Operating income of $122.7 million, a 26% increase from $97.4 million (27% increase on a constant currency basis).
Adjusted operating income² of $122.7 million, a 23% increase from $99.9 million (24% increase on a constant currency basis).
Adjusted EBITDA³ of $165.8 million, a 12% increase from $147.6 million (13% increase on a constant currency basis).
Net income attributable to Euronet of $45.2 million, or $0.98 diluted earnings per share, compared with $69.3 million, or $1.43 diluted earnings per share.
Adjusted earnings per share⁴ of $2.08, a 10% increase from $1.88.
Euronet’s cash and cash equivalents were $1,278.8 million and ATM cash was $643.8 million, totaling $1,922.6 million as of December 31, 2024, and availability under its revolving credit facilities was approximately $1,335 million.

Euronet reports the following consolidated results for the full year 2024 compared with the same period of 2023:

Revenues of $3,989.8 million, an 8% increase from $3,688.0 million (9% increase on a constant currency basis).
Operating income of $503.2 million, a 16% increase from $432.6 million (18% increase on a constant currency basis).
Adjusted operating income of $502.8 million, a 16% increase from $432.1 million (18% increase on a constant currency basis).
Adjusted EBITDA of $678.5 million, a 10% increase from $618.7 million (11% increase on a constant currency basis).
Net income attributable to Euronet of $306.0 million, or $6.45 diluted earnings per share, compared with $279.7 million, or $5.50 diluted earnings per share.
Adjusted earnings per share of $8.61, a 15% increase from $7.46.

See the reconciliation of non-GAAP items in the attached financial schedules.

“I am pleased we delivered 15% growth in Adjusted EPS for the full year — at the top end of our range, driven by strong performance in all three segments. As we entered 2024, we told shareholders that we expected our Adjusted EPS to grow between 10% and 15%, and we would be driving to go through the range. Throughout the year our results increasingly demonstrated that it was likely we would perform at the upper end of that range. Now with these very good fourth quarter results, you can see we performed at the top of the range and even ahead of our historical 10- and 20-year CAGR rates. I would like to also point out that our 2024 adjusted EPS of $8.61 was adversely impacted by significant increases in interest and tax expense, but also benefited from share repurchases. With interest, taxes and share repurchases netting each other, you can see that the 15% increase in adjusted EPS was driven by the 16% increase in operating income made possible by strong revenue growth, scale and cost management. For the fourth quarter we delivered record adjusted EPS of $2.08, a 10% year-over-year increase as well as double-digit growth in operating income and adjusted EBITDA,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. “EFT delivered double-digit growth across all metrics driven by international travel, growth in merchant acquiring business, fee increase opportunities, and expansion into new markets. Money Transfer produced strong fourth quarter results across all metrics including a 33% growth in digital transactions. In epay, our core business delivered strong results from continued digital branded payments and mobile growth.”

Adjusted operating income and adjusted EBITDA were adjusted for non-cash purchase accounting adjustments in the EFT Segment during the fourth quarter and full-year of 2023 and the full year of 2024 and a non-cash gain in the full year 2023.

Taking into consideration recent trends in the business and the global economy, the Company anticipates its 2025 adjusted EPS will grow 12% to 16% year-over-year, consistent with its 10 and 20 year compounded annualized growth rates. This outlook does not include any changes that may develop in foreign exchange rates, interest rates or other unforeseen factors.

Segment and Other Results

The EFT Processing Segment reports the following results for the fourth quarter 2024 compared with the same period or date in 2023:

Revenues of $265.6 million, a 12% increase from $237.9 million (13% increase on a constant currency basis).
Operating income of $37.3 million, a 46% increase from $25.5 million (48% increase on a constant currency basis).
Adjusted operating income of $37.3 million, a 33% increase from $28.0 million (35% increase on a constant currency basis).
Adjusted EBITDA of $61.7 million, an 18% increase from $52.2 million (19% increase on a constant currency basis).
Transactions of 3,203 million, a 35% increase from 2,369 million.
Total of 55,248 installed ATMs as of December 31, 2024, a 5% increase from 52,652 at December 31, 2023. Operated 49,945 active ATMs as of December 31, 2024, a 6% increase from 47,303 as of December 31, 2023.

The EFT Processing Segment reports the following results for the full year 2024 compared with the same period in 2023:

Revenues of $1,161.2 million, a 10% increase from $1,058.3 million (10% increase on a constant currency basis).
Operating income of $256.0 million, a 24% increase from $206.3 million (25% increase on a constant currency basis).
Adjusted operating income of $255.6 million, a 24% increase from $205.8 million (25% increase on a constant currency basis).
Adjusted EBITDA of $353.5 million, an 18% increase from $300.4 million (19% increase on a constant currency basis).
Transactions of 11,424 million, a 35% increase from 8,473 million.

Revenue, operating income, and adjusted EBITDA growth for both the fourth quarter and full year 2024 was driven by continued growth in transactions in nearly all markets, new market expansion, fee increase opportunities, cost management and growth in the merchant acquiring business with adjusted EBITDA doubling in the last two years.

The EFT Segment’s total installed ATMs at December 31, 2024 grew 5% over December 31, 2023 ATMs due to the net addition of 1,729 Euronet-owned ATMs, 773 new outsourcing ATMs and the addition of 94 low-margin ATMs in India. The difference between installed and active ATMs relates to ATMs that have been seasonally deactivated.

The epay Segment reports the following results for the fourth quarter 2024 compared with the same period or date in 2023:

Revenues of $342.2 million, an 8% increase from $316.7 million (10% increase on a constant currency basis).
Operating income of $48.0 million, a 10% increase from $43.6 million (12% increase on a constant currency basis).
Adjusted EBITDA of $49.9 million, a 10% increase from $45.4 million (12% increase on a constant currency basis).
Transactions of 1,185 million, a 31% increase from 906 million.
POS terminals of approximately 777,000 as of December 31, 2024, a 5% decrease from approximately 821,000.
Retailer locations of approximately 362,000 as of December 31, 2024, a 3% increase from approximately 352,000.

The epay Segment reports the following results for the full year 2024 compared with the same period in 2023:

Revenues of $1,150.5 million, a 6% increase from $1,082.4 million (7% increase on a constant currency basis).
Operating income of $129.9 million, a 3% increase from $126.2 million (4% increase on a constant currency basis).
Adjusted EBITDA of $137.2 million, a 3% increase from $133.1 million (4% increase on a constant currency basis).
Transactions of 4,374 million, a 15% increase from 3,789 million.

Fourth quarter and full year 2024 constant currency revenue, operating income and adjusted EBITDA growth was driven by continued expansion of digital branded payment and mobile sales.

The Money Transfer Segment reports the following results for the fourth quarter 2024 compared with the same period or date in 2023:

Revenues of $441.9 million, a 9% increase from $405.1 million (9% increase on a constant currency basis).
Operating income of $58.4 million, a 13% increase from $51.9 million (12% increase on a constant currency basis).
Adjusted EBITDA of $64.4 million, a 9% increase from $59.3 million (9% increase on a constant currency basis).
Total transactions of 46.9 million, an 11% increase from 42.4 million.
Network locations of approximately 607,000 as of December 31, 2024, a 5% increase from approximately 580,000.

The Money Transfer Segment reports the following results for the full year 2024 compared with the same period in 2023:

Revenues of $1,686.5 million, an 8% increase from $1,555.2 million (9% increase on a constant currency basis).
Operating income of $201.0 million, an 8% increase from $185.4 million (9% increase on a constant currency basis).
Adjusted EBITDA of $227.0 million, a 5% increase from $216.4 million (5% increase on a constant currency basis).
Total transactions of 176.9 million, a 9% increase from 161.7 million.

Fourth quarter constant currency revenue, operating income and adjusted EBITDA growth was the result of 14% growth in U.S.-outbound transactions, 11% growth in international-originated money transfers and 8% growth in xe transactions, partially offset by a 14% decline in the intra-U.S. business. These transaction growth rates include 33% growth in direct-to-consumer digital transactions.

Full year 2024 constant currency revenue, operating income, and adjusted EBITDA growth was the result of 12% growth in U.S.-outbound transactions, 11% growth in international-originated money transfers and 16% growth in xe transactions, partially offset by a 14% decline in the intra-U.S. business. These transaction growth rates include 28% growth in direct-to-consumer digital transactions.

Corporate and Other reports $21.0 million of expense for the fourth quarter 2024 compared with $23.6 million for the fourth quarter 2023. For the full year 2024, Corporate and Other reports $83.7 million of expense compared with $85.3 million for the full year 2023. The decrease in corporate expenses for both the fourth quarter and full year 2024 is largely the result of a decrease in long-term compensation expenses based on lower share value.

Balance Sheet and Financial Position
Unrestricted cash and cash equivalents on hand were $1,278.8 million as of December 31, 2024, compared to $1,524.1 million as of September 30, 2024. The net decrease in unrestricted cash and cash equivalents during the quarter is mainly due to working capital fluctuations, repayment of short-term borrowings, $50 million in share repurchases, partially offset by cash generated from operations. Total indebtedness was $1,949.8 million as of December 31, 2024, compared to $2,278.8 million as of September 30, 2024. The decrease in debt was largely due to repayment of short-term borrowings. Availability under the Company’s revolving credit facility was approximately $1,335 million as of December 31, 2024. The increase in availability of the revolving credit facility was primarily the result of an increase and extension of our credit facility in December 2024 from $1.25 billion to $1.90 billion.

Non-GAAP Measures
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency financial measures, adjusted operating income, adjusted EBITDA, and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues, net income and earnings per share computed in accordance with U.S. GAAP. We believe that these non-GAAP measures provide useful information to investors regarding the Company’s performance and overall results of operations. These non-GAAP measures are also an integral part of the Company’s internal reporting and performance assessment for executives and senior management. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedules provide a full reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure.

The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

⁽¹⁾ Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company’s results when compared to the prior period.

⁽²⁾ Adjusted operating income is defined as operating income excluding, to the extent incurred in the period, non-cash gains and non-cash purchase accounting adjustments. Adjusted operating income represents a performance measure and is not intended to represent a liquidity measure.

⁽³⁾ Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation, non-cash gains, non-cash purchase accounting adjustments and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.

⁽⁴⁾Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) non-cash gains and non-cash purchase accounting adjustments, f) other non-operating or non-recurring items and g) dilutive shares relate to the Company’s convertible bonds. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure.

Conference Call and Slide Presentation
Euronet Worldwide will host an analyst conference call on February 13, 2025, at 9:00 a.m. Eastern Time to discuss these results. The call may also include discussion of Company developments on the Company’s operations, forward-looking information, and other material information about business and financial matters. To listen to the call via telephone please register at Euronet Worldwide Fourth Quarter 2024 Earnings Call. The conference call will also be available via webcast at http://ir.euronetworldwide.com. Participants should register at least five minutes prior to the scheduled start time of the event. A slideshow will be included in the webcast.

A webcast replay will be available beginning approximately one hour after the event at http://ir.euronetworldwide.com and will remain available for one year.

About Euronet Worldwide, Inc.
A global leader in payments processing and cross-border transactions, Euronet moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit processing, ATMs, point-of-sale services, branded payments, currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster and more secure for everyone.

Starting in Central Europe in 1994, Euronet now supports an extensive global real-time digital and cash payments network that includes 55,248 installed ATMs, approximately 1,160,000 EFT point-of-sale terminals and a growing portfolio of outsourced debit and credit card services which are under management in 67 countries; card software solutions; a prepaid processing network of approximately 777,000 point-of-sale terminals at approximately 362,000 retailer locations in 64 countries; and a global money transfer network of approximately 607,000 locations serving 197 countries and territories with digital connections to 4.1 billion bank accounts and 3.1 billion digital wallet accounts. Euronet serves clients from its corporate headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For more information, please visit the Company’s website at www.euronetworldwide.com.

Statements contained in this news release that concern Euronet’s or its management’s intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: conditions in world financial markets and general economic conditions, including impacts from the COVID-19 or other pandemics; inflation; military conflicts in the Ukraine and the Middle East, and the related economic sanctions; our ability to successfully integrate any acquired operations; economic conditions in specific countries and regions; technological developments affecting the market for our products and services; our ability to successfully introduce new products and services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs; our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy; changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions; changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other loss contingencies affecting Euronet; the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants; and renewal of sources of funding as they expire and the availability of replacement funding. These risks and other risks are described in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC’s Edgar website or by contacting the Company. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. The Company regularly posts important information to the investor relations section of its website.

EURONET WORLDWIDE, INC.
Condensed Consolidated Balance Sheets
(in millions)

	As of
	December 31,		As of
	2024		December 31,
	(unaudited)		2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,278.8	$	1,254.2
ATM cash	643.8		525.2
Restricted cash	9.2		15.2
Settlement assets	1,522.7		1,681.5
Trade accounts receivable, net	284.9		370.6
Prepaid expenses and other current assets	297.1		316.0
Total current assets	4,036.5		4,162.7

Property and equipment, net	329.7		332.1
Right of use lease asset, net	132.1		142.6
Goodwill and acquired intangible assets, net	1,048.1		1,015.1
Other assets, net	288.1		241.9

Total assets	$	5,834.5	$	5,894.4

LIABILITIES AND EQUITY
Current liabilities:
Settlement obligations	$	1,522.7	$	1,681.5
Accounts payable and other current liabilities	841.0		816.9
Current portion of operating lease liabilities	48.3		50.3
Short-term debt obligations	814.0		151.9
Total current liabilities	3,226.0		2,700.6

Debt obligations, net of current portion	1,134.4		1,715.4
Operating lease liabilities, net of current portion	87.4		95.8
Capital lease obligations, net of current portion	1.4		2.3
Deferred income taxes	71.8		47.0
Other long-term liabilities	84.3		83.6
Total liabilities	4,605.3		4,644.7
Equity	1,229.2		1,249.7

Total liabilities and equity	$	5,834.5	$	5,894.4


EURONET WORLDWIDE, INC.
Consolidated Statements of Operations
(unaudited – in millions, except share and per share data)

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

Revenues	$	3,989.8		$	3,688.0		$	1,047.3		$	957.7

Operating expenses:
Direct operating costs		2,389.3			2,222.8		640.8			596.4
Salaries and benefits		650.2			602.9		167.9			158.0
Selling, general and administrative		315.3			296.8		83.4			72.4
Depreciation and amortization		131.8			132.9		32.5			33.5
Total operating expenses		3,486.6			3,255.4		924.6			860.3
Operating income		503.2			432.6		122.7			97.4

Other income (expense):
Interest income		23.8			15.2		5.7			5.1
Interest expense		(80.5	)		(55.6	)	(21.3		)	(16.5		)
Foreign currency exchange (loss) gain		(19.1	)		8.0		(35.5		)	11.6
Other income		21.5			0.2		4.3			0.3
Total other (expense) income, net		(54.3	)		(32.2	)	(46.8		)	0.5
Income before income taxes		448.9			400.4		75.9			97.9

Income tax expense		(142.6	)		(120.9	)	(30.6		)	(28.4		)

Net income		306.3			279.5		45.3			69.5
Net (income) loss attributable to non-controlling interests		(0.3	)		0.2		(0.1		)	(0.2		)
Net income attributable to Euronet Worldwide, Inc.	$	306.0		$	279.7		$	45.2		$	69.3
Add: Interest expense from assumed conversion of convertible notes, net of tax		4.2			4.2			0.9			1.0
Net income for diluted earnings per share calculation	$	310.2		$	283.9		$	46.1		$	70.3
Earnings per share attributable to Euronet
Worldwide, Inc. stockholders – diluted	$	6.45		$	5.50		$	0.98		$	1.43

Diluted weighted average shares outstanding		48,082,766			51,599,633		47,050,602			49,066,284

EURONET WORLDWIDE, INC.
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA
(unaudited – in millions)

	Three months ended December 31, 2024

	EFT Processing		epay		Money Transfer		Corporate Services				Consolidated

Net income											$	45.3

Add: Income tax expense											30.6
Add: Total other expense, net											46.8

Operating income (expense)	$	37.3	$	48.0	$	58.4	$	(21.0	)		$	122.7

Add: Depreciation and amortization	24.4		1.9		6.0		0.2				32.5
Add: Share-based compensation	—		—		—		10.6				10.6

Earnings before interest, taxes, depreciation, amortization, share-based compensation (Adjusted EBITDA) ⁽¹⁾	$	61.7	$	49.9	$	64.4	$	(10.2	)		$	165.8

	Three months ended December 31, 2023

	EFT Processing		epay		Money Transfer		Corporate Services				Consolidated

Net income											$	69.5

Add: Income tax expense											28.4
Less: Total other income, net											(0.5		)

Operating income (expense)	$	25.5	$	43.6	$	51.9	$	(23.6		)	$	97.4
Add: non-cash purchase accounting expense adjustment		2.5		—		—		—				2.5
Adjusted operating income (expense) ⁽¹⁾		28.0		43.6		51.9		(23.6		)		99.9

Add: Depreciation and amortization	24.2		1.8		7.4		0.1				33.5
Add: Share-based compensation	—		—		—		14.2				14.2

Earnings before interest, taxes, depreciation, amortization, non-cash purchase accounting expense adjustment and share-based compensation (Adjusted EBITDA) ⁽¹⁾	$	52.2	$	45.4	$	59.3	$	(9.3		)	$	147.6

⁽¹⁾ Adjusted operating income (expense) and Adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income computed in accordance with U.S. GAAP.

EURONET WORLDWIDE, INC.
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA
(unaudited – in millions)

	Twelve months ended December 31, 2024

	EFT Processing			epay		Money Transfer		Corporate Services			Consolidated

Net income											$	306.3

Add: Income tax expense											142.6
Add: Total other expense, net											54.3

Operating income (expense)	$	256.0		$	129.9	$	201.0	$	(83.7	)	$	503.2

Less: Non-cash purchase accounting income adjustment	(0.4		)	—		—		—			(0.4		)
Adjusted operating income (expense) ⁽¹⁾	255.6			129.9		201.0		(83.7		)	502.8

Add: Depreciation and amortization	97.9			7.3		26.0		0.6			131.8
Add: Share-based compensation	—			—		—		43.9			43.9

Earnings before interest, taxes, depreciation, amortization, non-cash purchase accounting income adjustment and share-based compensation (Adjusted EBITDA)⁽¹⁾	$	353.5		$	137.2	$	227.0	$	(39.2	)	$	678.5

	Twelve months ended December 31, 2023

	EFT Processing			epay		Money Transfer		Corporate Services			Consolidated

Net income											$	279.5

Add: Income tax expense											120.9
Add: Total other expense, net											32.2

Operating income (expense)	$	206.3		$	126.2	$	185.4	$	(85.3	)	$	432.6

Add: Non-cash purchase accounting expense adjustment	2.5			—		—		—			2.5
Less: Non-cash gain	(3.0		)	—		—		—			(3.0		)
Adjusted operating income (expense) ⁽¹⁾	205.8			126.2		185.4		(85.3		)	432.1

Add: Depreciation and amortization	94.6			6.9		31.0		0.4			132.9
Add: Share-based compensation	—			—		—		53.7			53.7

Earnings before interest, taxes, depreciation, amortization, non-cash purchase accounting expense adjustment, non-cash gain and share-based compensation (Adjusted EBITDA)⁽¹⁾	$	300.4		$	133.1	$	216.4	$	(31.2	)	$	618.7

⁽¹⁾ Adjusted operating income (expense) and Adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income computed in accordance with U.S. GAAP.

EURONET WORLDWIDE, INC.
Reconciliation of Adjusted Earnings per Share
(unaudited – in millions, except share and per share data)

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

Net income attributable to Euronet Worldwide, Inc.	$	306.0		$	279.7		$	45.2		$	69.3

Foreign currency exchange loss (gain)		19.1			(8.0	)		35.5			(11.6	)
Intangible asset amortization⁽¹⁾		21.7			24.4			4.7			5.4
Share-based compensation⁽²⁾		43.9			53.7			10.6			14.2
Non-cash gain⁽³⁾		—			(3.0	)		—			—
Non-cash purchase accounting (income) expense adjustment⁽⁴⁾		(0.4	)		2.5			—			2.5
Income tax effect of above adjustments⁽⁵⁾		13.2			(3.0	)		3.2			1.2
Non-cash investment gain⁽⁶⁾		(20.3	)		—			(3.5	)		—
Non-cash GAAP tax expense (benefit)⁽⁷⁾		9.9			19.7			(3.1	)		6.4

Adjusted earnings⁽⁸⁾	$	393.1		$	366.0		$	92.6		$	87.4

Adjusted earnings per share – diluted⁽⁸⁾	$	8.61		$	7.46		$	2.08		$	1.88

Diluted weighted average shares outstanding (GAAP)		48,082,766			51,599,633			47,050,602			49,066,284
Effect of adjusted EPS dilution of convertible notes		(2,781,818	)		(2,781,818	)		(2,781,818	)		(2,781,818	)
Effect of unrecognized share-based compensation on diluted shares outstanding		369,573			230,000			295,559			158,030
Adjusted diluted weighted average shares outstanding		45,670,521			49,047,815			44,564,343			46,442,496

⁽¹⁾ Intangible asset amortization of $4.7 million and $5.4 million are included in depreciation and amortization expense of $32.5 million and $ 33.5 million for both the three months ended December 31, 2024 and December 31, 2023, in the consolidated statements of operations. Intangible asset amortization of $21.7 million and $24.4 million are included in depreciation and amortization expense of $131.8 million and $132.9 million for the twelve months ended December 31, 2024 and December 31, 2023, respectively, in the consolidated statements of operations.

⁽²⁾ Share-based compensation of $10.6 million and $14.2 million are included in salaries and benefits expense of $167.9 million and $158.0 million for the three months ended December 31, 2024 and December 31, 2023, respectively, in the consolidated statements of operations. Share-based compensation of $43.9 million and $53.7 million are included in salaries and benefits expense of $650.2 million and $602.9 million for the twelve months ended December 31, 2024 and December 31, 2023, respectively, in the consolidated statements of operations.

⁽³⁾ A non-cash gain of $3.0 million is included in operating income for the twelve months ended December 31, 2023, in the consolidated statements of operations.

⁽⁴⁾ Non-cash purchase accounting (income)/expense adjustment of respectively ($0.4) million and $2.5 million is included in operating income for the twelve months ended December 31, 2024 and December 31, 2023 in the consolidated statement of operations.

⁽⁵⁾ Adjustment is the aggregate U.S. GAAP income tax effect on the preceding adjustments determined by applying the applicable statutory U.S. federal, state and/or foreign income tax rates.

⁽⁶⁾ Non-cash investment gain of respectively $3.5 million and $20.3 million for the three and twelve months ended December 31, 2024 is included in other income in the consolidated statement of operations.

⁽⁷⁾ Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.

⁽⁸⁾ Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with U.S. GAAP.

The MIL Network –

February 13, 2025

MIL-OSI: Precision Drilling Announces 2024 Fourth Quarter and Year End Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 12, 2025 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, gain on acquisition, loss on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

Financial Highlights and 2025 Capital Allocation Plans

Revenue in the fourth quarter was $468 million, an 8% decrease from 2023 as activity increases in Canadian drilling, well servicing, and international were more than offset by lower activity and day rates in the U.S.
Adjusted EBITDA⁽¹⁾ was $121 million in the quarter and included $15 million of share-based compensation charges, $4 million for rig reactivation costs and $4 million of non-recurring charges. In 2023, fourth quarter Adjusted EBITDA was $151 million and included share-based compensation charges of $13 million.
Net earnings attributable to shareholders was $15 million or $1.06 per share in the fourth quarter compared to $147 million or $10.42 per share as net earnings in 2023 included an income tax recovery of $69 million and a gain on acquisition of $26 million.
In 2024, we invested $217 million into our fleet and infrastructure, including multiple contracted rig upgrades and the strategic purchase of drill pipe for use in 2025. We expect to invest $225 million into our fleet and infrastructure in 2025, which may fluctuate with activity levels and customer contract upgrade opportunities.
For the year ended December 31, 2024, we achieved our annual debt reduction and return of shareholder capital targets, reducing debt by $176 million and repurchasing $75 million of common shares while building cash by $20 million. Precision has consistently met or exceeded its capital allocation goals since implementation in 2016.
For 2025, we expect to reduce debt by at least $100 million in 2025 and have increased our long-term debt reduction target to $700 million and extended our debt reduction period to 2027. In 2025, we plan to increase direct shareholder returns to 35% to 45% of free cash flow, before debt repayments. To the extent excess cash is generated these allocations may be increased.

Operational Highlights

Demand for our services continues to be strong and in 2024 our Canadian and international drilling rig utilization days increased 12% and 37%, respectively, while our well servicing rig operating hours increased 26% over 2023.
In the fourth quarter, Canada’s activity averaged 65 active drilling rigs versus 64 in the same quarter last year. Our Super Triple and Super Single rigs remain in high demand and are nearly fully utilized. Canadian revenue per utilization day was $35,675, up from $34,616 in the fourth quarter of 2023.
Our U.S. activity has remained relatively consistent since mid-2024. We averaged 34 drilling rigs in the fourth quarter with revenue per utilization day of US$30,991 versus 45 drilling rigs at US$34,452 in 2023’s fourth quarter.
International activity increased 6% over the same period last year while revenue per utilization day was US$49,636 compared to US$49,872 in the fourth quarter of 2023.
Service rig operating hours in the fourth quarter totaled 59,834, representing a 6% increase over the same quarter last year partially driven by the CWC Energy Services Corp. (CWC) acquisition in November of 2023.

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

MANAGEMENT COMMENTARY

“Through 2024 Precision demonstrated remarkable market resilience despite weaker than expected U.S. customer demand and late year customer budget exhaustion in Canada. We continued our long-term record of meeting or exceeding our capital allocation targets every year since 2016 with $176 million of debt reduction, $75 million of share buybacks, while increasing our cash balance by $20 million. In the fourth quarter, approximately $8 million of reactivation costs and non-recurring items impacted our financial results, along with slightly lower than expected Canadian customer demand. Despite these fourth quarter headwinds we continued investing in our core business lines, including purchasing approximately $18 million of drill pipe in advance of potential tariffs, investing $3 million to begin reactivating two idle Canadian Super Single rigs to meet demand in 2025, and upgrading one rig for Canadian heavy oil pad drilling opportunities.

“The outlook for Canada remains very strong given robust heavy oil activity following the startup of the Trans Mountain pipeline expansion in May 2024 and the imminent startup of LNG Canada in mid-2025. My enthusiasm is further underpinned by the pace of rig reactivations following the seasonal Christmas break and the stable winter activity we have experienced to date with 81 rigs working since mid-January. The uncertainty introduced by potential U.S. tariffs on Canadian oil and gas exports, has been tempered and we have not experienced any change in customer demand or their longer-term capital spending plans.

“In Canada, our drilling utilization days increased 12% over 2023 and our Super Triple and Super Single rigs, which represent approximately 80% of our Canadian fleet, are nearly fully utilized. Demand for our Super Triple fleet, which is the preferred rig for Montney drilling, is driven by robust condensate fundamentals and the startup of LNG Canada this year. Demand for our Super Single fleet is driven by increased activity in heavy oil targeted areas as customers are benefiting from improved commodity pricing, following the startup of Trans Mountain, and a softening Canadian dollar.

“Internationally, our drilling utilization days increased 37% in 2024 following the recertification and reactivation of four rigs in 2023. In 2024, we had eight rigs working on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years.

“In our Completion and Production Services business, our well servicing operating hours increased 26% over 2023 levels following the successful integration of CWC, where we achieved significant operating synergies. Our Completion and Production Services Adjusted EBITDA increased 30% year over year, which was slightly below our expectation due to late year customer budget exhaustion impacting our activity and rental business. I am very pleased with how we have transformed our Completion and Production Services business with two strategic tuck-in acquisitions. The High Arctic and CWC acquisitions more than doubled our Completion and Production revenue and Adjusted EBITDA since 2021 and solidified Precision as the premier well service provider in Canada.

“During the year, Precision generated $482 million of cash provided by operations, allowing us to meet our capital return targets and invest $217 million into our fleet and infrastructure, which included multiple drilling rig upgrades and the strategic purchase of drill pipe for use in 2025. We expect to invest approximately $225 million in 2025, which reflects a weaker Canadian dollar and includes expected customer funded upgrades across our North American operations, including approximately $30 million in US fleet upgrades for customers targeting extended reach laterals.

“With sustained free cash flow as a key differentiator of our business, we remain focused on reducing debt and increasing direct returns to shareholders. In 2025, we expect to reduce debt by at least $100 million, reinforcing our commitment to achieving a sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times. As we continue to realize the benefits of lower debt levels, we have increased our long-term debt reduction target by $100 million to $700 million and extended the debt reduction period by one year to 2027. In 2025, our goal is to increase our direct capital returns to shareholders by allocating 35% to 45% of free cash flow, before debt repayments, while continuing to move towards 50% of free cash flow thereafter, with excess cash potentially used to increase these allocations.

“I would like to thank our employees for their dedication and commitment to serving our customers, and our shareholders for their continued support. With positive long-term fundamentals associated with global oil and natural gas demand and particularly the unique fundamentals driving drilling activity in our core geographic markets, I am confident we will continue to drive shareholder value,” concluded Mr. Neveu.

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

SELECT FINANCIAL AND OPERATING INFORMATION
Financial Highlights

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2024		2023		% Change				2024		2023		% Change
Revenue		468,171		506,871			(7.6	)		1,902,328		1,937,854			(1.8	)
Adjusted EBITDA⁽¹⁾		120,526		151,231			(20.3	)		521,221		611,118			(14.7	)
Net earnings		14,930		146,722			(89.8	)		111,330		289,244			(61.5	)
Net earnings attributable to shareholders		14,795		146,722			(89.9	)		111,195		289,244			(61.6	)
Cash provided by operations		162,791		170,255			(4.4	)		482,083		500,571			(3.7	)
Funds provided by operations⁽¹⁾		120,535		145,189			(17.0	)		463,372		533,409			(13.1	)

Cash used in investing activities		61,954		57,627			7.5			202,986		214,784			(5.5	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		21,565		24,459			(11.8	)		52,066		63,898			(18.5	)
Maintenance and infrastructure		37,335		54,388			(31.4	)		164,632		162,851			1.1
Proceeds on sale		(8,570	)	(3,117	)		174.9			(30,395	)	(23,841	)		27.5
Net capital spending⁽¹⁾		50,330		75,730			(33.5	)		186,303		202,908			(8.2	)

Net earnings attributable to shareholders per share:
Basic		1.06		10.42			(89.8	)		7.81		21.03			(62.8	)
Diluted		1.06		9.81			(89.2	)		7.81		19.53			(60.0	)
Weighted average shares outstanding:
Basic		13,982		14,084			(0.7	)		14,229		13,754			3.5
Diluted		13,987		15,509			(9.8	)		14,234		15,287			(6.9	)

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}Operating Highlights

	For the three months ended December 31,							For the year ended December 31,
	2024		2023		% Change			2024		2023		% Change
Contract drilling rig fleet		214		214		–			214		214		–
Drilling rig utilization days:
U.S.		3,084		4,138		(25.5	)		12,969		17,961		(27.8	)
Canada		6,018		5,909		1.8			23,685		21,156		12.0
International		736		693		6.2			2,928		2,132		37.3
Revenue per utilization day:
U.S. (US$)		30,991		34,452		(10.0	)		32,531		35,040		(7.2	)
Canada (Cdn$)		35,675		34,616		3.1			34,797		33,151		5.0
International (US$)		49,636		49,872		(0.5	)		51,227		50,840		0.8
Operating costs per utilization day:
U.S. (US$)		21,698		21,039		3.1			22,009		20,401		7.9
Canada (Cdn$)		21,116		19,191		10.0			20,424		19,225		6.2

Service rig fleet		170		183		(7.1	)		170		183		(7.1	)
Service rig operating hours		59,834		56,683		5.6			254,224		201,627		26.1

Drilling Activity

	Average for the quarter ended 2023								Average for the quarter ended 2024
	Mar. 31		June 30		Sept. 30		Dec. 31			Mar. 31		June 30		Sept. 30		Dec. 31
Average Precision active rig count⁽¹⁾:
U.S.		60		51		41		45			38		36		35		34
Canada		69		42		57		64			73		49		72		65
International		5		5		6		8			8		8		8		8
Total		134		98		104		117			119		93		115		107

^{(1) Average number of drilling rigs working or moving.}

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	December 31, 2024		December 31, 2023⁽²⁾
Working capital⁽¹⁾		162,592		136,872
Cash		73,771		54,182
Long-term debt		812,469		914,830
Total long-term financial liabilities⁽¹⁾		888,173		995,849
Total assets		2,956,315		3,019,035
Long-term debt to long-term debt plus equity ratio ⁽¹⁾		0.33		0.37

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}^{(2) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”}

Summary for the three months ended December 31, 2024:

Revenue decreased to $468 million compared with $507 million in the fourth quarter of 2023 as a result of lower U.S. activity and day rates, partially offset by higher Canadian and international activity.
Adjusted EBITDA was $121 million in the quarter and included $15 million of share-based compensation charges, $4 million for rig reactivation costs and $4 million of non-recurring charges. In 2023, fourth quarter Adjusted EBITDA was $151 million and included share-based compensation of $13 million. Please refer to “Other Items” later in this news release for additional information on share-based compensation charges.
Adjusted EBITDA as a percentage of revenue was 26% as compared with 30% in 2023.
Net earnings attributable to shareholders was $15 million compared to $147 million in the same quarter last year as net earnings in 2023 included an income tax recovery of $69 million and a gain on acquisition of $26 million.
Generated cash provided by operations of $163 million, reduced debt by $25 million through the partial redemption of our 2026 unsecured senior notes and repayment of our U.S. Real Estate Credit Facility, repurchased $25 million of common shares under our Normal Course Issuer Bid (NCIB), and ended the quarter with $74 million of cash and more than $575 million of available liquidity.
U.S. revenue per utilization day, excluding the impact of idle but contracted rigs was US$30,813 compared with US$32,819 in 2023, a decrease of 6%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was down 6% compared with the third quarter of 2024. Fourth quarter U.S. revenue per utilization day was US$30,991 compared with US$34,452 in 2023. The decrease was primarily the result of lower fleet average day rates, idle but contracted rig revenue and recoverable costs. We recognized US$1 million of revenue from idle but contracted rigs in the quarter as compared with US$7 million in 2023.
U.S. operating costs per utilization day increased to US$21,698 compared with US$21,039 in 2023. The increase was mainly due to higher rig operating costs and fixed costs spread over lower activity, offset by lower recoverable costs and repairs and maintenance. Sequentially, operating costs per utilization day were down 2% due to lower recoverable costs.
Canadian revenue per utilization day was $35,675, an increase from the $34,616 realized in 2023 due to higher average day rates and recoverable costs. Sequentially, revenue per utilization day increased $3,350 due to higher boiler revenue and higher fleet-wide average day rates.
Canadian operating costs per utilization day increased to $21,116, compared with $19,191 in 2023, resulting from higher repairs and maintenance, rig reactivation costs and impact of labour rate increases. Sequentially, daily operating costs increased $1,668 and were the result of higher labour expenses due to rate increases, recoverable expenses and repairs and maintenance.
Internationally, fourth quarter revenue increased 6% from 2023 as we realized revenue of US$37 million versus US$35 million in the prior year. Our higher revenue was primarily the result of a 6% increase in activity, which was negatively impacted by a planned rig recertification accounting for 21 non-billable utilization days in October. International revenue per utilization day was US$49,636 compared with US$49,872 in 2023.
Completion and Production Services revenue was $69 million, an increase of $6 million from 2023, as our fourth quarter service rig operating hours increased 6%, reflecting the successful integration of the CWC acquisition in November 2023.
General and administrative expenses were $35 million as compared with $39 million in 2023 primarily due to lower non-recurring costs associated with our CWC acquisition in 2023, partially offset by higher share-based compensation charges.
Net finance charges were $16 million, a decrease of $3 million compared with 2023 as a result of lower interest expense on our outstanding debt balance.
Capital expenditures were $59 million compared with $79 million in 2023 and by spend category included $22 million for expansion and upgrades and $37 million for the maintenance of existing assets, infrastructure, and intangible assets.
Income tax expense for the quarter was $6 million as compared with a recovery of $69 million in 2023. During the fourth quarter, we continue to not recognize deferred tax assets on certain international operating losses.

Summary for the year ended December 31, 2024:

Revenue for the year was $1,902 million, comparable with 2023.
Adjusted EBITDA was $521 million as compared with $611 million in 2023. Our lower Adjusted EBITDA was primarily attributed to decreased U.S. drilling results and $13 million of higher share-based compensation, partially offset by the strengthening of Canadian and international results.
Net earnings attributable to shareholders was $111 million compared to $289 million in the prior year. Our lower current year net earnings was due to the impact of decreased U.S. drilling results, higher income tax expense of $67 million and the gain on acquisition of $26 million recognized in 2023.
Cash provided by operations was $482 million as compared with $501 million in 2023. Funds provided by operations were $463 million, a decrease of $70 million from the comparative period.
General and administrative costs were $132 million, an increase of $10 million from 2023 primarily due to higher share-based compensation charges.
Net finance charges were $70 million, $14 million lower than 2023 due to our lower interest expense on our outstanding debt balance.
Capital expenditures were $217 million in 2024, a decrease of $10 million from 2023. Capital spending by spend category included $52 million for expansion and upgrades and $165 million for the maintenance of existing assets, infrastructure, and intangible assets.
Reduced debt by $176 million from the partial redemption of our 2026 unsecured senior notes and repayment of our Canadian and U.S. Real Estate Credit Facilities.
Repurchased $75 million of common shares under our NCIB.

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.

Below we summarize the results of our 2024 strategic priorities:

Concentrate organizational efforts on leveraging our scale and generating free cash flow.
- Generated cash provided from operations of $482 million, allowing us to meet our debt reduction and share repurchase goals and build our cash balance by $20 million.
- Increased utilization of our Super Single and tele double rigs, driving Canadian drilling activity up 12% over 2023.
- Successfully integrated our 2023 CWC acquisition, increasing Completion and Production Services operating hours and Adjusted EBITDA 26% and 30%, respectively, year over year. Achieved our $20 million annual synergies target from the acquisition.
- Internationally, increased our activity 37% year over year and realized US$150 million of contract drilling revenue compared to US$108 million in 2023.
Reduce debt by between $150 million and $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases.
- Reduced debt by $176 million and ended the year with a Net Debt to Adjusted EBITDA ratio of approximately 1.4 times. On track to achieve a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
- Returned $75 million to shareholders through share repurchases, achieving the midpoint of our target range.
- Renewed our NCIB in September, allowing repurchases of up to 10% of the public float.
Continue to deliver operational excellence in drilling and service rig operations to strengthen our competitive position and extend market penetration of our Alpha^TMand EverGreen^TMproducts.
- Increased our Canadian drilling rig utilization days and well service rig operating hours year over year, maintaining our position as the leading provider of high-quality and reliable services in Canada.
- Invested $52 million in expansion and upgrade capital to enhance our drilling rigs.
- Nearly doubled our EverGreen^TM revenue year over year.
- Continued to expand our EverGreen^TM product offering on our Super Single rigs with LED mast lighting and hydrogen injection systems.

2025 Strategic Priorities

Maximize free cash flow through disciplined capital deployment and strict cost management.

Enhance shareholder returns through debt reduction and share repurchases.

Reduce debt by at least $100 million in 2025 and debt by $700 million between 2022 and 2027, while remaining committed to achieving a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
Allocate 35% to 45% of free cash flow, before debt repayments, directly to shareholders and continue moving direct shareholder capital returns toward 50% of free cash flow thereafter.
Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.

OUTLOOK

The long-term outlook for global energy demand remains positive with rising demand for all types of energy including oil and natural gas driven by economic growth, increasing demand from third-world regions, and emerging energy sources of power demand. Oil prices are constructive as OPEC+ continues to honour its production quotas, producers remain committed to returning capital to shareholders versus increasing production, and geopolitical issues continue to threaten supply. In Canada, the Trans Mountain pipeline expansion, which became operational in May of 2024, combined with the imminent startup of LNG Canada are projected to provide significant tidewater access for Canadian crude oil and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of Liquefied Natural Gas (LNG) export terminals is expected to add approximately 11 bcf/d of export capacity from 2025 to 2028, supporting additional U.S. natural gas drilling activity. Coal retirements and a build-out of artificial intelligence data centers could provide further support for natural gas drilling.

Our Canadian drilling activity continues to be robust in 2025 and we currently have 81 rigs operating and expect this activity level to continue until spring breakup. Our Super Single fleet is near full utilization as heavy oil customers are benefiting from improved commodity pricing and a weak Canadian dollar. Our Super Triple fleet, the preferred rig for Montney drilling, is also nearly fully utilized, and with the expected startup of LNG Canada in mid-2025, rig demand could exceed supply. Overall, we expect our Canadian drilling activity to be up year over year with near full utilization of our Super Series rigs, which should support day rates and increase demand for term contracts as customers secure rigs to ensure fulfillment of their development programs. The uncertainty introduced by potential U.S. tariffs on Canadian oil and gas exports, has been tempered and we have not experienced any change in customer demand or their longer-term plans.

In the U.S., we currently have 34 rigs earning revenue, which has been relatively consistent since mid-2024. Drilling activity growth remains constrained as producers continue to focus on shareholder returns rather than growth, while volatile commodity prices, customer consolidation, and drilling and completion efficiencies have restricted activity growth. If commodity prices remain stable and around today’s level, we expect drilling demand to begin to improve in the second half and gain momentum through the remainder of 2025 as new LNG export capacity is added and customers seek to maintain or possibly increase production levels.

Internationally, we have eight rigs working on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years. We continue to bid our remaining idle rigs within the region and remain optimistic in our ability to secure rig reactivations.

As the premier well service provider in Canada, the outlook for this business remains positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service-related activity, while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand should remain strong, and with continued labour constraints, we expect firm pricing into the foreseeable future.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at February 12, 2025. For those quarters ending after December 31, 2024, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at February 12, 2025	Average for the quarter ended 2024								Average		Average for the quarter ended 2025								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2024		Mar. 31		June 30		Sept. 30		Dec. 31		2025
Average rigs under term contract:
U.S.		20		17		17		16		18		15		13		8		6		11
Canada		24		22		23		23		23		20		19		18		14		18
International		8		8		8		8		8		8		8		7		7		8
Total		52		47		48		47		49		43		40		33		27		37

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

	For the three months ended December 31,									For the year ended December 31,
(Stated in thousands of Canadian dollars)		2024		2023			% Change				2024		2023			% Change
Revenue:
Contract Drilling Services		402,610			446,503			(9.8	)		1,617,735			1,704,265			(5.1	)
Completion and Production Services		68,830			62,459			10.2			294,817			240,716			22.5
Inter-segment eliminations		(3,269	)		(2,091	)		56.3			(10,224	)		(7,127	)		43.5
		468,171			506,871			(7.6	)		1,902,328			1,937,854			(1.8	)
Adjusted EBITDA:⁽¹⁾
Contract Drilling Services		125,683			162,459			(22.6	)		532,345			630,761			(15.6	)
Completion and Production Services		15,895			12,193			30.4			66,681			51,224			30.2
Corporate and Other		(21,052	)		(23,421	)		(10.1	)		(77,805	)		(70,867	)		9.8
		120,526			151,231			(20.3	)		521,221			611,118			(14.7	)

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2024		2023		% Change				2024		2023		% Change
Revenue		402,610		446,503			(9.8	)		1,617,735		1,704,265			(5.1	)
Expenses:
Operating		264,858		270,303			(2.0	)		1,041,068		1,030,053			1.1
General and administrative		12,069		13,741			(12.2	)		44,322		43,451			2.0
Adjusted EBITDA⁽¹⁾		125,683		162,459			(22.6	)		532,345		630,761			(15.6	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		31.2	%	36.4	%					32.9	%	37.0	%

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

United States onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		38		602		60		744
June 30		36		583		51		700
September 30		35		565		41		631
December 31		34		569		45		603
Year to date average		36		580		49		670

^{(1) United States lower 48 operations only.}
^{(2) Baker Hughes rig counts.}

Canadian onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		73		208		69		221
June 30		49		134		42		117
September 30		72		207		57		188
December 31		65		194		64		181
Year to date average		65		186		58		177

^{(1) Canadian operations only.}
^{(2) Baker Hughes rig counts.}

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2024		2023		% Change				2024		2023		% Change
Revenue		68,830		62,459			10.2			294,817		240,716			22.5
Expenses:
Operating		50,714		48,297			5.0			217,842		181,622			19.9
General and administrative		2,221		1,969			12.8			10,294		7,870			30.8
Adjusted EBITDA⁽¹⁾		15,895		12,193			30.4			66,681		51,224			30.2
Adjusted EBITDA as a percentage of revenue⁽¹⁾		23.1	%	19.5	%					22.6	%	21.3	%
Well servicing statistics:
Number of service rigs (end of period)		170		183			(7.1	)		170		183			(7.1	)
Service rig operating hours		59,834		56,683			5.6			254,224		201,627			26.1
Service rig operating hour utilization		38	%	38	%					42	%	42	%

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2023 Annual Report.

A summary of expense amounts under these plans during the reporting periods are as follows:

For the three months ended
December 31,

For the year ended
December 31,

(Stated in thousands of Canadian dollars)

2024

2023

2024

2023

Cash settled share-based incentive plans

14,018

11,972

42,828

32,063

Equity settled share-based incentive plans

1,071

697

4,588

2,531

Total share-based incentive compensation plan expense

15,089

12,669

47,416

34,594

Allocated:

Operating

3,709

2,765

11,868

9,497

General and Administrative

11,380

9,904

35,548

25,097

15,089

12,669

47,416

34,594

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

We reference certain Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

Adjusted EBITDA

We believe Adjusted EBITDA (earnings before income taxes, gain on acquisition, loss on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

The most directly comparable financial measure is net earnings.

	For the three months ended December 31,					For the year ended December 31,
(Stated in thousands of Canadian dollars)		2024		2023			2024		2023
Adjusted EBITDA by segment:
Contract Drilling Services		125,683		162,459			532,345		630,761
Completion and Production Services		15,895		12,193			66,681		51,224
Corporate and Other		(21,052	)	(23,421	)		(77,805	)	(70,867	)
Adjusted EBITDA		120,526		151,231			521,221		611,118
Depreciation and amortization		82,210		78,734			309,314		297,557
Gain on asset disposals		(1,913	)	(8,883	)		(16,148	)	(24,469	)
Loss on asset decommissioning		—		9,592			—		9,592
Foreign exchange		1,487		(773	)		2,259		(1,667	)
Finance charges		16,281		19,468			69,753		83,414
Gain on repurchase of unsecured notes		—		—			—		(137	)
Loss on investments and other assets		1,814		735			1,484		6,810
Gain on acquisition		—		(25,761	)		—		(25,761	)
Incomes taxes		5,717		(68,603	)		43,229		(23,465	)
Net earnings		14,930		146,722			111,330		289,244
Non-controlling interests		135		—			135		—
Net earnings attributable to shareholders		14,795		146,722			111,195		289,244


*Funds Provided by (Used in) Operations*	We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances. The most directly comparable financial measure is cash provided by (used in) operations.

*Net Capital Spending*	We believe net capital spending is a useful measure as it provides an indication of our primary investment activities. The most directly comparable financial measure is cash provided by (used in) investing activities. Net capital spending is calculated as follows:
		For the three months ended December 31,					For the year ended December 31,
(Stated in thousands of Canadian dollars)			2024		2023			2024		2023
Capital spending by spend category
Expansion and upgrade			21,565		24,459			52,066		63,898
Maintenance, infrastructure and intangibles			37,335		54,388			164,632		162,851
			58,900		78,847			216,698		226,749
Proceeds on sale of property, plant and equipment			(8,570	)	(3,117	)		(30,395	)	(23,841	)
Net capital spending			50,330		75,730			186,303		202,908
Business acquisitions			—		646			—		28,646
Proceeds from sale of investments and other assets			—		—			(3,623	)	(10,013	)
Purchase of investments and other assets			718		61			725		5,343
Receipt of finance lease payments			(208	)	(191	)		(799	)	(255	)
Changes in non-cash working capital balances			11,114		(18,619	)		20,380		(11,845	)
Cash used in investing activities			61,954		57,627			202,986		214,784

Working Capital

We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Working capital is calculated as follows:

	December 31,		December 31,
(Stated in thousands of Canadian dollars)		2024		2023
Current assets		501,284		510,881
Current liabilities		338,692		374,009
Working capital		162,592		136,872

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:

	December 31,		December 31,
(Stated in thousands of Canadian dollars)		2024		2023
Total non-current liabilities		935,624		1,069,364
Deferred tax liabilities		47,451		73,515
Total long-term financial liabilities		888,173		995,849

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Adjusted EBITDA % of Revenue*			We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

*Long-term debt to long-term debt plus equity*			We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total shareholders’ equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.

*Net Debt to Adjusted EBITDA*			We believe that the Net Debt (long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.

Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Capital Spending by Spend Category*			We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

CHANGE IN ACCOUNTING POLICY

Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants – Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation’s Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director’s retirement. In the case of a director retiring, the director’s respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.
As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

The Corporation’s other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation’s consolidated financial statements as at and for the year ending December 31, 2024.

PARTNERSHIP

On September 26, 2024, Precision formed a strategic Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership. Profit attributable to Non-Controlling Interests (NCI) was $0.1 million in 2024.

Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as NCI in the Consolidated Statements of Net Earnings and Consolidated Statements of Financial Position.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

In particular, forward-looking information and statements include, but are not limited to, the following:

our strategic priorities for 2025;
our capital expenditures, free cash flow allocation and debt reduction plans for 2025 through to 2027;
anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025;
the average number of term contracts in place for 2025;
customer adoption of Alpha^TM technologies and EverGreen^TM suite of environmental solutions;
timing and amount of synergies realized from acquired drilling and well servicing assets; and
potential commercial opportunities and rig contract renewals.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
the status of current negotiations with our customers and vendors;
customer focus on safety performance;
existing term contracts are neither renewed nor terminated prematurely;
our ability to deliver rigs to customers on a timely basis;
the impact of an increase/decrease in capital spending; and
the general stability of the economic and political environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

volatility in the price and demand for oil and natural gas;
fluctuations in the level of oil and natural gas exploration and development activities;
fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
liquidity of the capital markets to fund customer drilling programs;
availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
the impact of weather and seasonal conditions on operations and facilities;
competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
ability to improve our rig technology to improve drilling efficiency;
general economic, market or business conditions;
the availability of qualified personnel and management;
a decline in our safety performance which could result in lower demand for our services;
changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
fluctuations in foreign exchange, interest rates and tax rates; and
other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	December 31, 2024			December 31, 2023⁽¹⁾			January 1, 2023⁽¹⁾
ASSETS
Current assets:
Cash	$	73,771		$	54,182		$	21,587
Accounts receivable		378,712			421,427			413,925
Inventory		43,300			35,272			35,158
Assets held for sale		5,501			—			—
Total current assets		501,284			510,881			470,670
Non-current assets:
Income tax recoverable		—			682			1,602
Deferred tax assets		6,559			73,662			455
Property, plant and equipment		2,356,173			2,338,088			2,303,338
Intangibles		12,997			17,310			19,575
Right-of-use assets		66,032			63,438			60,032
Finance lease receivables		4,806			5,003			—
Investments and other assets		8,464			9,971			20,451
Total non-current assets		2,455,031			2,508,154			2,405,453
Total assets	$	2,956,315		$	3,019,035		$	2,876,123

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	314,355		$	350,749		$	404,350
Income taxes payable		3,778			3,026			2,991
Current portion of lease obligations		20,559			17,386			12,698
Current portion of long-term debt		—			2,848			2,287
Total current liabilities		338,692			374,009			422,326

Non-current liabilities:
Share-based compensation		13,666			16,755			47,836
Provisions and other		7,472			7,140			7,538
Lease obligations		54,566			57,124			52,978
Long-term debt		812,469			914,830			1,085,970
Deferred tax liabilities		47,451			73,515			28,946
Total non-current liabilities		935,624			1,069,364			1,223,268
Equity:
Shareholders’ capital		2,301,729			2,365,129			2,299,533
Contributed surplus		77,557			75,086			72,555
Deficit		(900,834	)		(1,012,029	)		(1,301,273	)
Accumulated other comprehensive income		199,020			147,476			159,714
Total equity attributable to shareholders		1,677,472			1,575,662			1,230,529
Non-controlling interest		4,527			—			—
Total equity		1,681,999			1,575,662			1,230,529
Total liabilities and equity	$	2,956,315		$	3,019,035		$	2,876,123

^{(1) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”}

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)	2024			2023			2024			2023


Revenue	$	468,171		$	506,871		$	1,902,328		$	1,937,854
Expenses:
Operating		312,303			316,509			1,248,686			1,204,548
General and administrative		35,342			39,131			132,421			122,188
Earnings before income taxes, loss on investments and other assets, gain on acquisition, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals, and depreciation and amortization		120,526			151,231			521,221			611,118
Depreciation and amortization		82,210			78,734			309,314			297,557
Gain on asset disposals		(1,913	)		(8,883	)		(16,148	)		(24,469	)
Loss on asset decommissioning		—			9,592			—			9,592
Foreign exchange		1,487			(773	)		2,259			(1,667	)
Finance charges		16,281			19,468			69,753			83,414
Gain on repurchase of unsecured senior notes		—			—			—			(137	)
Gain on acquisition		—			(25,761	)		—			(25,761	)
Loss on investments and other assets		1,814			735			1,484			6,810
Earnings before income taxes		20,647			78,119			154,559			265,779
Income taxes:
Current		2,811			486			7,470			4,494
Deferred		2,906			(69,089	)		35,759			(27,959	)
		5,717			(68,603	)		43,229			(23,465	)
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Attributable to:
Shareholders of Precision Drilling Corporation	$	14,795		$	146,722		$	111,195		$	289,244
Non-controlling interests	$	135		$	—		$	135		$	—
Net earnings per share attributable to shareholders:
Basic	$	1.06		$	10.42		$	7.81		$	21.03
Diluted	$	1.06		$	9.81		$	7.81		$	19.53

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		89,412			(36,755	)		119,821			(33,433	)
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt		(49,744	)		22,679			(69,027	)		21,195
Tax related to net investment hedge of long-term debt		750			—			750			—
Comprehensive income	$	55,348		$	132,646		$	162,874		$	277,006
Attributable to:
Shareholders of Precision Drilling Corporation	$	55,213		$	132,646		$	162,739		$	277,006
Non-controlling interests	$	135		$	—		$	135		$	—

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Adjustments for:
Long-term compensation plans		4,398			(2,541	)		18,888			6,659
Depreciation and amortization		82,210			78,734			309,314			297,557
Gain on asset disposals		(1,913	)		(8,883	)		(16,148	)		(24,469	)
Loss on asset decommissioning		—			9,592			—			9,592
Foreign exchange		1,477			(853	)		2,442			(866	)
Finance charges		16,281			19,468			69,753			83,414
Income taxes		5,717			(68,603	)		43,229			(23,465	)
Other		(392	)		(9	)		(272	)		(229	)
Loss on investments and other assets		1,814			735			1,484			6,810
Gain on acquisition		—			(25,761	)		—			(25,761	)
Gain on repurchase of unsecured senior notes		—			—			—			(137	)
Income taxes paid		(1,617	)		(708	)		(6,459	)		(3,103	)
Income taxes recovered		27			17			85			24
Interest paid		(2,806	)		(3,335	)		(72,241	)		(83,037	)
Interest received		409			614			1,967			1,176
Funds provided by operations		120,535			145,189			463,372			533,409
Changes in non-cash working capital balances		42,256			25,066			18,711			(32,838	)
Cash provided by operations		162,791			170,255			482,083			500,571

Investments:
Purchase of property, plant and equipment		(58,900	)		(78,582	)		(216,647	)		(224,960	)
Purchase of intangibles		—			(265	)		(51	)		(1,789	)
Proceeds on sale of property, plant and equipment		8,570			3,117			30,395			23,841
Proceeds from sale of investments and other assets		—			—			3,623			10,013
Business acquisitions		—			(646	)		—			(28,646	)
Purchase of investments and other assets		(718	)		(61	)		(725	)		(5,343	)
Receipt of finance lease payments		208			191			799			255
Changes in non-cash working capital balances		(11,114	)		18,619			(20,380	)		11,845
Cash used in investing activities		(61,954	)		(57,627	)		(202,986	)		(214,784	)

Financing:
Issuance of long-term debt		17,078			—			27,978			162,649
Repayments of long-term debt		(41,813	)		(86,699	)		(204,319	)		(375,237	)
Repurchase of share capital		(25,023	)		(17,004	)		(75,488	)		(29,955	)
Issuance of common shares from the exercise of options		—			—			686			—
Debt amendment fees		(46	)		—			(1,363	)		—
Lease payments		(3,266	)		(3,010	)		(13,271	)		(9,423	)
Funding from non-controlling interest		—			—			4,392			—
Cash used in financing activities		(53,070	)		(106,713	)		(261,385	)		(251,966	)
Effect of exchange rate changes on cash		1,700			(798	)		1,877			(1,226	)
Increase in cash		49,467			5,117			19,589			32,595
Cash, beginning of period		24,304			49,065			54,182			21,587
Cash, end of period	$	73,771		$	54,182		$	73,771		$	54,182

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662
Net earnings for the period		—			—			—		111,195			111,195			135		111,330
Other comprehensive income for the period		—			—			51,544		—			51,544			—		51,544
Share options exercised		978			(292	)		—		—			686			—		686
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		—		—			20,367			—		20,367
Share repurchases		(86,570	)		—			—		—			(86,570	)		—		(86,570	)
Redemption of non-management directors share units		346			(346	)		—		—			—			—		—
Share-based compensation expense		—			4,588			—		—			4,588			—		4,588
Funding from non-controlling interest		—			—			—		—			—			4,392		4,392
Balance at December 31, 2024	$	2,301,729		$	77,557		$	199,020	$	(900,834	)	$	1,677,472		$	4,527	$	1,681,999

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus		Accumulated Other Comprehensive Income			Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2023	$	2,299,533		$	72,555	$	159,714		$	(1,301,273	)	$	1,230,529		$	—	$	1,230,529
Net earnings for the period		—			—		—			289,244			289,244			—		289,244
Other comprehensive income for the period		—			—		(12,238	)		—			(12,238	)		—		(12,238	)
Acquisition share consideration		75,588			—		—			—			75,588			—		75,588
Settlement of Executive Performance and Restricted Share Units		19,206			—		—			—			19,206			—		19,206
Share repurchases		(29,955	)		—		—			—			(29,955	)		—		(29,955	)
Redemption of non-management directors share units		757			—		—			—			757			—		757
Share-based compensation expense		—			2,531		—			—			2,531			—		2,531
Balance at December 31, 2023	$	2,365,129		$	75,086	$	147,476		$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662

2024 FOURTH QUARTER AND YEAR-END RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, February 13, 2025.

To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

https://register.vevent.com/register/BI9168b4c0516f4409ab4f297340994ebc

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

https://edge.media-server.com/mmc/p/8hij84aa

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com

The MIL Network –

February 13, 2025

MIL-OSI: Oportun Reports Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Returned to GAAP profitability with net income of $9 million in fourth quarter

Adjusted EBITDA of $41 million, up 315% year-over-year

Quarterly annualized net charge-off rate of 11.7%, lowest since third quarter of 2022

Total quarterly operating expenses of $89 million, reduced 31% year-over-year

Raising full year 2025 expectations

SAN CARLOS, Calif., Feb. 12, 2025 (GLOBE NEWSWIRE) — Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the “Company”) reported financial results today for the fourth quarter and full year ended December 31, 2024.

“We finished the year stronger than anticipated and believe that we’ve turned the corner, well-poised to capitalize on our momentum and advance our strategic priorities into 2025 and beyond,” said Raul Vazquez, CEO of Oportun. “I’m pleased that we returned to GAAP profitability in the quarter by generating $9 million of net income, a $51 million year-over-year increase. Furthermore, fourth quarter Adjusted Net Income increased by $30 million year-over-year, while Adjusted EBITDA more than quadrupled, and we returned to originations growth at 19%. I am also pleased that we delivered quarterly GAAP and Adjusted Return on Equity (ROE) of 10% and 25%, respectively, demonstrating good progress towards consistently delivering annual ROE in the 20% to 28% range. Our focus on cost discipline and improved credit performance is continuing to yield tangible results, laying the foundation to return to growth in 2025. We’re raising our expectations for full year 2025 Adjusted EPS to $1.10 to $1.30 per share, which implies 53 to 81% growth.”

Fourth Quarter and Full Year 2024 Results

Metric	GAAP				Adjusted¹
	4Q24	4Q23	FY24	FY23	4Q24	4Q23²	FY24	FY23²
Total revenue	$251	$263	$1,002	$1,057
Net income (loss)	$9	$(42)	($79)	($180)	$22	$(8.2)	$29	$(71)
Diluted EPS	$0.20	$(1.09)	($1.95)	$(4.88)	$0.49	$(0.21)	$0.72	$(1.93)
Adjusted EBITDA					$41	$9.9	$105	$19
_{Dollars in millions, except per share amounts.}
_{¹See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.}
_{²Beginning 1Q24, we updated our calculations of Adjusted EBITDA and Adjusted Net Income (Loss). Prior periods presented here have been updated to reflect the prior period numbers on a comparable basis. See Appendix for non-GAAP reconciliation to the most comparable GAAP measure.}

Fourth Quarter 2024

Aggregate Originations were $522 million, a 19% increase compared to $437 million in the prior-year quarter
Portfolio Yield was 34.2%, an increase of 155 basis points compared to the 32.7% in prior-year quarter
Owned Principal Balance at end-of-period was $2.7 billion, a decrease of 8% compared to $2.9 billion in the prior-year quarter
Annualized Net Charge-Off Rate of 11.7%, a decrease of 55 basis points compared to 12.3% in the prior-year quarter
30+ Day Delinquency Rate of 4.8%, a decrease of 113 basis points compared to 5.9% for the prior-year quarter

Full Year 2024

Aggregate Originations were $1,775 million, a 2% decrease compared to $1,813 million in the prior year
Portfolio Yield was 33.5%, an increase of 125 basis points compared to 32.2% in the prior year
Annualized Net Charge-Off Rate of 12.0%, a decrease of 18 basis points compared to 12.2% in the prior year

Financial and Operating Results

All figures are as of or for the quarter ended December 31, 2024, unless otherwise noted.

Operational Drivers

Originations – Aggregate Originations for the fourth quarter were $522 million, an increase of 19% as compared to $437 million in the prior-year quarter as the Company returned to year-over-year growth for the first time in ten quarters. Aggregate Originations for full year 2024 were $1,775 million, a decrease of 2% as compared to $1,813 million in 2023.

Portfolio Yield – Portfolio Yield as of the end of fourth quarter was 34.2%, an increase of 155 basis points as compared to 32.7% in the prior-year quarter. Portfolio Yield for the full year 2024 was 33.5%, an increase of 125 basis points as compared to 32.2% in 2023.

Fourth Quarter 2024 Financial Results

Revenue – Total revenue for the fourth quarter of $251 million was a decrease of 4% as compared to $263 million in the prior-year quarter. The decrease was due to the November 12th sale of the Company’s credit card receivables portfolio and a decline in average daily principal balance in its personal loans portfolio. The decline in average daily principal balance was due to prior credit tightening actions, the revenue impact of which was partially offset by a 155 basis point increase in portfolio yield to 34.2%. Excluding the impact of the credit card receivables portfolio sale, the fourth quarter’s total revenue declined by only 2%.

Net revenue for the fourth quarter was $93 million, up 30% as compared to Net Revenue of $72 million in the prior-year quarter. Lower net charge-offs and non-cash fair value marks more than offset lower total revenue and higher interest expense. Excluding a one-time, non-cash write-off of $17 million of deferred financing fees relating to the Company’s November corporate debt refinancing, net revenue would have been up 53% year-over-year.

Operating Expenses and Adjusted Operating Expense¹ – For the fourth quarter, total operating expense was $89 million, a decrease of 31% as compared to $129 million in the prior-year quarter and below the $97.5 million the Company was targeting. The decrease is principally attributable to a combined set of cost reduction initiatives announced in 2023 and 2024. The fourth quarter 2024 figure includes approximately $6 million in one-time benefits, including those related to capitalization of previous accrued expenses associated with the Company’s debt refinancing, true-ups related to estimated costs of exiting the credit card product and other benefits management does not consider to be part of a normalized run rate. Without the benefit from these one-time items, operating expense would have been approximately $95 million, still below the $97.5 million target. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, decreased 17% year-over-year to $89 million.

Net Income (Loss) and Adjusted Net Income (Loss)¹ – Net income was $9 million as compared to a net loss of $42 million in the prior-year quarter. The increase in net income was attributable to the increase in net revenue and a decrease in operating expenses as a result of cost reduction initiatives. Adjusted Net Income was $22 million, as compared to Adjusted Net Loss of $8.2 million in the prior-year quarter. The increase in Adjusted Net Income was attributable higher net revenue and the decrease in operating expense.

Earnings (Loss) Per Share and Adjusted EPS¹ – GAAP earnings per share, basic and diluted, were both $0.20, as compared to basic and diluted loss per share of $1.09 each in the prior-year quarter. Adjusted earnings per share was $0.49 as compared to adjusted loss per share of $0.54 in the prior-year quarter.

Adjusted EBITDA¹ – Adjusted EBITDA was $41 million, up from $10 million in the prior-year quarter, driven by a significant reduction in operating expenses along with reduced charge-offs.

Full Year 2024 Financial Results

Revenue – Total revenue for the full year was $1.0 billion, a decrease of 5% as compared to total revenue of $1.1 billion in 2023. The decrease was due to decreased interest income attributable to a lower Average Daily Principal Balance including impact from the November sale of the credit card receivables portfolio and decreased non-interest income. Excluding the impact of the credit card receivables portfolio sale, full year total revenue declined by 4%.

Net revenue for the full year was $295 million, an increase of 5% compared to net revenue of $281 million in the prior year, primarily due to an improvement in net decrease in fair value, including reduced marks on asset backed notes and reduced charge-offs. This net revenue favorability was partially offset by an increase in interest expense, including a one-time, non-cash write-off of $17 million of deferred financing fees related to the Company’s debt financing in the fourth quarter, and the decline in total revenue.

Operating Expense and Adjusted Operating Expense¹ – For the full year, total operating expense was $410 million, a decrease of 23% as compared to $534 million in 2023, enabled by the cost reduction initiatives announced in 2023 and 2024. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, decreased 20% year-over-year to $381 million due to similar drivers.

Net Income (Loss) and Adjusted Net Income (Loss)¹ – Net loss was $79 million, as compared to a net loss of $180 million in 2023. Adjusted Net Income increased to $29 million, as compared to Adjusted Net Loss of $71 million in 2023. The improvements in net loss and Adjusted Net income were attributable to reduced operating expenses coupled with higher net revenue, including reduced charge-offs.

Earnings (Loss) Per Share and Adjusted EPS¹ – GAAP net loss per share, basic and diluted, were both $1.95 for the full year 2024 as compared to basic and diluted loss per share of $4.88 each in 2023. Adjusted earnings per share was $0.72 in 2024 as compared to an adjusted net loss per share of $1.93 in 2023.

Adjusted EBITDA¹ – Adjusted EBITDA was $105 million, an increase of $86 million , or 463% as compared to $19 million in 2023, also driven by reduced operating expenses coupled with higher net revenue, including reduced charge-offs.

Credit and Operating Metrics

Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the fourth quarter was 11.7%, a 55 basis points reduction from 12.3% in the prior-year quarter, and 12.0% for the full year 2024, an 18 basis points reduction from 12.2% in 2023. Dollar Net Charge-offs for the quarter were down 12% to $80 million, compared to $91 million for the prior-year quarter, and down 9% to $331 million for the full year 2024, compared to $364 million for 2023.

30+ Day Delinquency Rate – The Company’s 30+ Day Delinquency Rate was 4.8% at the end of 2024, a 113 basis points improvement compared to 5.9% at the end of 2023.

Operating Expense Ratio and Adjusted Operating Expense Ratio¹ – Operating Expense Ratio for the quarter was 13.1% as compared to 17.5% in the prior-year quarter, a 434 basis points improvement. Adjusted Operating Expense Ratio was 13.1% as compared to 14.5% in the prior-year quarter, a 141 basis points improvement. For the full year 2024, Operating Expense Ratio was 14.8% as compared to 17.9% for 2023, a 302 basis points improvement. For the full year 2024, Adjusted Operating Expense Ratio was 13.8% as compared to 16.0% for 2023, a 224 basis points improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges, such as expenses related to the credit card portfolio sale. The improvement in Adjusted Operating Expense Ratio is primarily attributable to the Company’s focus on reducing operating expenses, partially offset by a decrease in Average Daily Principal Balance due to prior credit tightening actions.

Return on Equity (“ROE”) and Adjusted ROE¹ – ROE for the quarter was 10%, as compared to (39)% in the prior-year quarter. The increase was attributable to the increase in net income. Adjusted ROE for the quarter was 25%, as compared to (8)% in the prior-year quarter. ROE for the full year 2024 was (21)%, as compared to (38)% for 2023. Adjusted ROE for the full year 2024 was 8%, as compared to (15)% for 2023.

_{¹ Beginning 1Q24, we updated our calculations of Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Operating Expense. To align with these updated calculations we also updated Adjusted EPS and Adjusted Return on Equity. Prior periods presented here have been updated to reflect the prior period numbers on a comparable basis. See Appendix for non-GAAP reconciliation to the most comparable GAAP measure.}

Other Products

Secured personal loans – As of December 31, 2024, the Company had a secured personal loan receivables balance of $162 million, up 38% from $117 million at the end of 2023, and up 15% quarter-over-quarter. Available only in California as of the end of 2023, Oportun now also offers secured personal loans in Texas, Florida, Arizona, New Jersey and Illinois. During 2024, secured personal loan losses ran approximately 500 basis points lower compared to unsecured personal loans, with fourth quarter revenue per loan approximately 75% higher due to larger average loan sizes.

Funding and Liquidity

As of December 31, 2024, total cash was $215 million, consisting of cash and cash equivalents of $60 million and restricted cash of $155 million. Cost of Debt and Debt-to-Equity were 8.0% and 7.9x, respectively, for and at the end of the fourth quarter 2024 as compared to 7.1% and 7.2x, respectively, for and at the end of the prior-year quarter. Cost of Debt and Debt-to-Equity were 7.8% and 7.9x, respectively, for and at the year ended December 31, 2024 as compared to 6.0% and 7.2x, respectively, for and at the year ended December 31, 2023. These fourth quarter and full year 2024 Cost of Debt figures exclude a $17 million non-cash write-off of deferred financing costs relating to the repayment of the Company’s prior corporate financing facility as part of a November refinancing. As of December 31, 2024, the Company had $227 million of undrawn capacity on its existing $766 million personal loan warehouse lines. The Company’s personal loan warehouse lines are committed through September 2027 and August 2028.

Financial Outlook for First Quarter and Full Year 2025

Oportun is providing the following guidance for 1Q 2025 and full year 2025 as follows:

	1Q 2025	Full Year 2025
Total Revenue	$225 – $230M	$945 – $970M
Annualized Net Charge-Off Rate	12.30% +/- 15 bps	11.5% +/- 50 bps
Adjusted EBITDA¹	$18 – $22M	$135 – $145M
Adjusted Net Income	—	$53 – $63M
Adjusted EPS	—	$1.10 – $1.30

_{¹ See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, including revised Adjusted EBITDA, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.}

Chief Financial Officer & Chief Administration Officer Announces Retirement

On February 7, 2025, Mr. Jonathan Coblentz notified the Company that effective March 28, 2025, he plans to retire from his role as Chief Financial Officer (“CFO”) and Chief Administrative Officer (“CAO”) of the Company. Mr. Coblentz has served as the Company’s CFO since 2009.

Mr. Coblentz will continue in his CFO and CAO roles until March 28th to support a smooth transition to Casey Mueller, the Company’s Principal Accounting Officer and Global Controller, who, following Mr. Coblentz’s departure will serve as our interim CFO. The Company has retained an executive search firm to conduct a thorough search process to identify Mr. Coblentz’s successor, considering both internal and external candidates.

Mr. Mueller is 43 years old and has served as Global Controller since joining the Company in 2018 and assumed the role of Principal Accounting Officer in 2022. Prior to joining the Company, Mr. Mueller held various leadership roles of increasing scope and responsibility within finance at OneMain Financial from 2013 to 2018. Mr. Mueller also previously served as Audit Manager at Deloitte LLP, a public accounting firm, which currently serves as the Company’s auditor. Mr. Mueller is a Certified Public Accountant and received a B.S. in Accounting and Master of Accountancy from Brigham Young University.

Conference Call

As previously announced, Oportun’s management will host a conference call to discuss fourth quarter 2024 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun’s website at https://investor.oportun.com. The dial-in number for the conference call is 1-866-604-1698 (toll-free) or 1-201-389-0844 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun’s website at https://investor.oportun.com following the conference call.

About Non-GAAP Financial Measures

This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Efficiency, Adjusted Operating Expense Ratio, and Adjusted ROE, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below.

About Oportun

Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members’ financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $19.7 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members save an average of more than $1,800 annually. For more information, visit Oportun.com.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company’s strategic priorities and goals; expectations regarding the departure of the Company’s CFO and CAO and regarding its interim CFO; the Company’s expectations regarding macroeconomic conditions; the Company’s profitability and future growth opportunities; the effect of and trends in fair value mark-to-market adjustments on the Company’s loan portfolio and asset-backed notes; the Company’s first quarter and full year 2025 outlook; the Company’s expectations regarding Adjusted EPS in full year 2025; the Company’s expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun’s filings with the Securities and Exchange Commission, including Oportun’s most recent annual report on Form 10-K, and include, but are not limited to, Oportun’s ability to retain existing members and attract new members; Oportun’s ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun’s A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun’s ability to increase market share and enter into new markets; Oportun’s ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company’s information technology systems or those of the Company’s third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun’s ability to obtain additional financing on acceptable terms or at all.

Contacts

Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com

Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com

Oportun and the Oportun logo are registered trademarks of Oportun, Inc.

Oportun Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share and per share data, unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Revenue
Interest income	$	233.5		$	242.2		$	925.5		$	963.5
Non-interest income		17.5			20.5			76.3			93.4
Total revenue		250.9			262.6			1,001.8			1,056.9
Less:
Interest expense		73.7			52.0			238.2			179.4
Net decrease in fair value		(83.9	)		(138.5	)		(468.4	)		(596.8	)
Net revenue		93.4			72.1			295.2			280.7

Operating expenses:
Technology and facilities		37.9			54.8			166.2			219.4
Sales and marketing		17.3			18.1			67.0			75.3
Personnel		19.7			25.1			87.2			121.8
Outsourcing and professional fees		8.1			11.2			36.8			45.4
General, administrative and other		6.4			20.2			53.2			72.4
Total operating expenses		89.5			129.4			410.4			534.3

Income (loss) before taxes		3.9			(57.3	)		(115.2	)		(253.7	)
Income tax benefit		(4.8	)		(15.5	)		(36.5	)		(73.7	)
Net income (loss)	$	8.7		$	(41.8	)	$	(78.7	)	$	(180.0	)

Diluted Earnings (Loss) per Common Share	$	0.20		$	(1.09	)	$	(1.95	)	$	(4.88	)
Diluted Weighted Average Common Shares		43,550,693			38,485,406			40,356,025			36,875,950

Note: Numbers may not foot or cross-foot due to rounding.

Oportun Financial Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)

	December 31,			December 31,
		2024			2023
Assets
Cash and cash equivalents	$	60.0		$	91.2
Restricted cash		154.7			114.8
Loans receivable at fair value		2,778.5			2,962.4
Capitalized software and other intangibles		86.6			114.7
Right of use assets – operating		9.8			21.1
Other assets		137.6			107.7
Total assets	$	3,227.1		$	3,411.9

Liabilities and stockholders’ equity
Liabilities
Secured financing	$	535.5		$	290.0
Asset-backed notes at fair value		1,080.7			1,780.0
Asset-backed borrowings at amortized cost		984.3			581.5
Acquisition and corporate financing		203.8			258.7
Lease liabilities		18.2			28.4
Other liabilities		50.9			68.9
Total liabilities		2,873.3			3,007.5
Stockholders’ equity
Common stock		—			—
Common stock, additional paid-in capital		612.6			584.6
Accumulated deficit		(252.5	)		(173.8	)
Treasury stock		(6.3	)		(6.3	)
Total stockholders’ equity		353.8			404.4
Total liabilities and stockholders’ equity	$	3,227.1		$	3,411.9

Note: Numbers may not foot or cross-foot due to rounding.

Oportun Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions, unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Cash flows from operating activities
Net income (loss)	$	8.7		$	(41.8	)	$	(78.7	)	$	(180.0	)
Adjustments for non-cash items		100.4			139.0			498.0			585.3
Proceeds from sale of loans in excess of originations of loans sold and held for sale		0.2			2.9			4.5			8.5
Changes in balances of operating assets and liabilities		(17.9	)		6.2			(30.3	)		(21.1	)
Net cash provided by operating activities		91.4			106.3			393.5			392.8

Cash flows from investing activities
Net loan principal repayments (loan originations)		(101.7	)		(91.8	)		(228.1	)		(257.5	)
Proceeds from loan sales originated as held for investment		51.7			1.3			54.5			4.1
Capitalization of system development costs		(6.1	)		(6.1	)		(19.2	)		(31.3	)
Other, net		(0.3	)		(0.2	)		(0.9	)		(1.4	)
Net cash used in investing activities		(56.4	)		(96.8	)		(193.7	)		(286.2	)

Cash flows from financing activities
Borrowings		691.2			429.4			1,736.7			945.5
Repayments		(740.1	)		(432.1	)		(1,927.7	)		(1,047.1	)
Net stock-based activities		—			(0.4	)		(0.3	)		(2.7	)
Net cash used in financing activities		(48.9	)		(3.1	)		(191.2	)		(104.4	)

Net increase (decrease) in cash and cash equivalents and restricted cash		(13.9	)		6.4			8.6			2.2
Cash and cash equivalents and restricted cash beginning of period		228.5			199.6			206.0			203.8
Cash and cash equivalents and restricted cash end of period	$	214.6		$	206.0		$	214.6		$	206.0

Note: Numbers may not foot or cross-foot due to rounding.

Oportun Financial Corporation
CONSOLIDATED KEY PERFORMANCE METRICS
(unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
Key Financial and Operating Metrics		2024			2023			2024			2023
Aggregate Originations (Millions)	$	522.2		$	437.3		$	1,775.3		$	1,813.1
Portfolio Yield (%)		34.2	%		32.7	%		33.5	%		32.2	%
30+ Day Delinquency Rate (%)		4.8	%		5.9	%		4.8	%		5.9	%
Annualized Net Charge-Off Rate (%)		11.7	%		12.3	%		12.0	%		12.2	%

Other Metrics
Managed Principal Balance at End of Period (Millions)	$	2,973.5		$	3,182.1		$	2,973.5		$	3,182.1
Owned Principal Balance at End of Period (Millions)	$	2,678.2		$	2,904.7		$	2,678.2		$	2,904.7
Average Daily Principal Balance (Millions)	$	2,714.4		$	2,940.5		$	2,766.6		$	2,992.6

Note: Numbers may not foot or cross-foot due to rounding.

Oportun Financial Corporation
ABOUT NON-GAAP FINANCIAL MEASURES
(unaudited)

This press release dated February 12, 2025 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun’s core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

As previously announced on March 12, 2024, beginning with the quarter ended March 31, 2024 the Company has updated it’s calculation of Adjusted EBITDA and Adjusted Net Income for all periods. To align with these updated calculations the Company also updated Adjusted Operating Efficiency, Adjusted EPS and Adjusted Return on Equity. Comparable prior period Non-GAAP financial measures are included in addition to the previously reported metrics.

Adjusted EBITDA
The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun’s business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences.

The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
The Company believes it is useful to exclude the impact of interest expense associated with the Company’s corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding.
The Company excludes the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.

Adjusted Net Income
The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company’s board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.

The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
The Company believes it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.

Adjusted Operating Expense, Adjusted Operating Efficiency and Adjusted Operating Expense Ratio
The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Efficiency as Adjusted Operating Expense divided by total revenue. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun’s board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Efficiency and Adjusted Operating Expense Ratio are important measures because they allow management, investors and Oportun’s board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance.

Adjusted Return on Equity
The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders’ equity and how efficiently it generates income from stockholders’ equity.

Adjusted EPS
The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.

Oportun Financial Corporation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
Adjusted EBITDA		2024			2023			2024			2023
Net income (Loss)	$	8.7		$	(41.8	)	$	(78.7	)	$	(180.0	)
Adjustments:
Income tax benefit		(4.8	)		(15.5	)		(36.5	)		(73.7	)
Interest on corporate financing		11.4			14.6			51.1			51.8
Depreciation and amortization		12.5			13.8			52.2			54.9
Stock-based compensation expense		2.8			4.8			13.1			18.0
Workforce optimization expenses		0.1			6.8			3.1			22.5
Other non-recurring charges ⁽¹⁾		14.2			10.8			31.0			15.5
Fair value mark-to-market adjustment		(4.0	)		16.4			69.3			109.5
Adjusted EBITDA⁽²⁾	$	41.0		$	9.9		$	104.5		$	18.6

	Three Months Ended December 31,						Twelve Months Ended December 31,
Adjusted Net Income		2024			2023			2024			2023
Net income (Loss)	$	8.7		$	(41.8	)	$	(78.7	)	$	(180.0	)
Adjustments:
Income tax benefit		(4.8	)		(15.5	)		(36.5	)		(73.7	)
Stock-based compensation expense		2.8			4.8			13.1			18.0
Workforce optimization expenses		0.1			6.8			3.1			22.5
Other non-recurring charges ⁽¹⁾		14.2			10.8			31.0			15.5
Net decrease in fair value of credit cards receivable		—			—			36.2			—
Mark-to-market adjustment on ABS notes		8.5			23.6			72.1			100.0
Adjusted income before taxes		29.5			(11.3	)		40.2			(97.7	)
Normalized income tax expense		8.0			(3.0	)		10.8			(26.4	)
Adjusted Net Income (Loss) ⁽³⁾	$	21.5		$	(8.2	)	$	29.3		$	(71.3	)

Stockholders’ equity	$	353.8		$	404.4		$	353.8		$	404.4
GAAP ROE		10.2	%	(39.2		)%	(20.8		)%	(37.8		)%
Adjusted ROE (%) ⁽⁴⁾		25.2	%	(7.7		)%		7.7	%	(15.0		)%

Note: Numbers may not foot or cross-foot due to rounding.
_{⁽¹⁾ Certain prior-period financial information has been reclassified to conform to current period presentation.}
_{⁽²⁾ Our calculation of Adjusted EBITDA was updated in Q1 2024 to more closely align with management’s internal view of the performance of the business. The Q4 2023 and FY 2023 values for Adjusted EBITDA shown in the table above have been revised and presented on a comparable basis, prior to these revisions the values would have been $6.1 million and $1.7 million, respectively.}
_{⁽³⁾ Our calculation of Adjusted Net Income (Loss) was updated in Q1 2024 to more closely align with management’s internal view of the performance of the business. The Q4 2023 and FY 2023 values for Adjusted Net Income (Loss) shown in the table above have been revised and presented on a comparable basis, prior to these revisions the values would have been $(20.6) million and $(124.1) million, respectively.}
_{⁽⁴⁾ Calculated as Adjusted Net Income (Loss) divided by average stockholders’ equity. ROE has been annualized. Due to the Adjusted Net Income (Loss) revisions in Q1 2024, the Q4 2023 and FY 2023 Adjusted ROE values would have been (19.3)% and (26.1)%, respectively.}

Oportun Financial Corporation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
Adjusted Operating Efficiency		2024			2023			2024			2023
Operating Efficiency		35.7	%		49.3	%		41.0	%		50.6	%
Total Revenue	$	250.9		$	262.6		$	1,001.8		$	1,056.9

Total Operating Expense	$	89.5		$	129.4		$	410.4		$	534.3
Adjustments:
Stock-based compensation expense		(2.8	)		(4.8	)		(13.1	)		(18.0	)
Workforce optimization expenses		(0.1	)		(6.8	)		(3.1	)		(22.5	)
Other non-recurring charges ⁽¹⁾		2.6			(10.5	)		(12.9	)		(14.4	)
Total Adjusted Operating Expense	$	89.2		$	107.3		$	381.3		$	479.4

Adjusted Operating Efficiency⁽²⁾		35.5	%		40.9	%		38.1	%		45.4	%

Average Daily Principal Balance	$	2,714.4		$	2,940.5		$	2,766.6		$	2,992.6

OpEx Ratio		13.1	%		17.5	%		14.8	%		17.9	%
Adjusted OpEx Ratio		13.1	%		14.5	%		13.8	%		16.0	%

Note: Numbers may not foot or cross-foot due to rounding.
_{⁽¹⁾ Certain prior-period financial information has been reclassified to conform to current period presentation.}
_{⁽²⁾ Our calculation of Adjusted Net Income (Loss) was updated in Q1 2024 to more closely align with management’s internal view of the performance of the business. We have removed the adjustment related to acquisition and integration related expenses from our calculation of Adjusted Operating Efficiency to maintain consistency with the revised Adjusted EBITDA and Adjusted Net Income (Loss) calculations. The Q4 2023 and FY 2023 values for Adjusted Operating Efficiency shown in the table above have been revised and presented on a comparable basis, prior to these revisions the values would have been 38.4% and 42.7%, respectively.}

Oportun Financial Corporation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, except share and per share data, unaudited)

	Three Months Ended December 31,					Twelve Months Ended December 31,
GAAP Earnings (loss) per Share		2024		2023			2024			2023
Net income (loss)	$	8.7	$	(41.8	)	$	(78.7	)	$	(180.0	)
Net income (loss) attributable to common stockholders	$	8.7	$	(41.8	)	$	(78.7	)	$	(180.0	)

Basic weighted-average common shares outstanding		42,720,229		38,485,406			40,356,025			36,875,950
Weighted average effect of dilutive securities:
Stock options		—		—			—			—
Restricted stock units		830,464		—			—			—
Diluted weighted-average common shares outstanding		43,550,693		38,485,406			40,356,025			36,875,950

Earnings (loss) per share:
Basic	$	0.20	$	(1.09	)	$	(1.95	)	$	(4.88	)
Diluted	$	0.20	$	(1.09	)	$	(1.95	)	$	(4.88	)

	Three Months Ended December 31,					Twelve Months Ended December 31,
Adjusted Earnings (loss) Per Share		2024		2023			2024			2023
Diluted earnings (loss) per share	$	0.20	$	(1.09	)	$	(1.95	)	$	(4.88	)

Adjusted Net Income	$	21.5	$	(8.2	)	$	29.3		$	(71.3	)

Basic weighted-average common shares outstanding		42,720,229		38,485,406			40,356,025			36,875,950
Weighted average effect of dilutive securities:
Stock options		—		—			—			—
Restricted stock units		830,464		—			500,705			—
Diluted adjusted weighted-average common shares outstanding		43,550,693		38,485,406			40,856,730			36,875,950

Adjusted Earnings (loss) Per Share⁽¹⁾	$	0.49	$	(0.21	)	$	0.72		$	(1.93	)

Note: Numbers may not foot or cross-foot due to rounding.
_{⁽¹⁾ Our calculation of Adjusted Net Income (Loss) was updated in Q1 2024 to more closely align with management’s internal view of the performance of the business. The Q4 2023 and FY 2023 values for Adjusted EPS shown in the table above have been revised and presented on a comparable basis, prior to these revisions the values would have been $(0.54) and $(3.37), respectively.}

Oportun Financial Corporation
RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES
(in millions, unaudited)

	1Q 2025								FY 2025
	Low				High				Low		High
Adjusted EBITDA
Net (loss)	$	(5.4	)	*	$	(2.2	)	*	$	23.2	$	33.4
Adjustments:
Income tax expense (benefit)		(1.3	)			(0.5	)			6.3		9.0
Interest on corporate financing		9.2				9.2				36.7		36.7
Depreciation and amortization		10.6				10.6				40.6		40.6
Stock-based compensation expense		3.5				3.5				15.0		15.0
Other non-recurring charges		1.4				1.4				5.8		5.8
Fair value mark-to-market adjustment	*				*					7.4		4.4
Adjusted EBITDA	$	18.0			$	22.0			$	135.0	$	145.0

*Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis.

	FY 2025
Adjusted Net Income and Adjusted EPS	Low		High
Net income	$	23.2	$	33.4
Adjustments:
Income tax expense (benefit)		6.3		9.0
Stock-based compensation expense		15.0		15.0
Other non-recurring charges		5.8		5.8
Mark-to-market adjustment on ABS notes		22.3		22.3
Adjusted income before taxes	$	72.6	$	85.6
Normalized income tax expense		19.6		23.1
Adjusted Net Income	$	53.0	$	62.5

Diluted weighted-average common shares outstanding		48.2		48.2

Diluted earnings per share	$	0.48	$	0.69
Adjusted Earnings Per Share	$	1.10	$	1.30

Note: Numbers may not foot or cross-foot due to rounding.

The MIL Network –

February 13, 2025

MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2024 Fourth-Quarter and Full-Year Financial Results

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, Feb. 12, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 fourth quarter and twelve months ended December 31, 2024.

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

87 consecutive quarters of profitability
Net income increased 51.2% to $8.4 million, or $0.61 per basic and diluted share, from $5.5 million, or $0.41 per basic and diluted share
Asset quality remains at historically strong levels with nonperforming loans of only $3.1 million at December 31, 2024, compared to $22.4 million at December 31, 2023
Net charge-offs to average loans were 0.00%
Allowance for credit losses was 826.70% of nonperforming loans
Tier 1 leverage ratio was 8.12%
Net interest margin increased 27 basis points to 2.84%
Efficiency ratio improved to 59.82%, compared to 69.23% for the same period a year ago

2024 Full-Year Financial Highlights Include (on a year-over-year basis unless noted):

Total loans, net were $2.56 billion at December 31, 2024, compared to $2.58 billion at December 31, 2023 and $2.54 billion at September 30, 2024
Total assets increased 2.5% to $3.36 billion
Deposits increased 3.0% to a record $2.69 billion
Stockholders’ equity increased 5.9% to $335.2 million
Net interest income after provision for credit losses increased 7.5% to $85.6 million
Return on average tangible equity was 8.91%
F&M ended 2024 with excellent liquidity levels, and over $690 million in contingent funding sources, and a cash-to-assets ratio of 5.3%, compared to 4.3% at December 31, 2023
Dividend raised 3.8% year-over-year, representing the 30^th consecutive annual increase in the Company’s regular dividend payment since 1994

Lars B. Eller, President and Chief Executive Officer, stated, “Our strong 2024 financial performance reflects solid execution of our multi-year strategic plan, as we have remained focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. Thanks to the unwavering dedication of our team and the trust of our customers, F&M’s financial and operating results strengthened throughout 2024. This performance creates a solid foundation and further solidifies F&M’s position as a leading community bank in the Ohio, Indiana and Michigan markets we serve.”

Mr. Eller continued, “Strong earnings growth in 2024 was driven by the success of ongoing strategies aimed at expanding our net interest margin, maintaining excellent asset quality, and driving efficiencies across our business. Core earnings for the 2024 fourth quarter were strong as net interest income after provision for credit losses increased 16.1% year-over-year to a quarterly record of $22.6 million, and noninterest income expanded 4.1% year-over-year to $4.0 million. We believe these trends highlight the improvements we have made to profitability, and we expect these trends to continue in the second half 2025.”

Income Statement
Net income for the 2024 fourth quarter ended December 31, 2024, was $8.4 million, compared to $5.5 million for the same period last year. Net income per basic and diluted share for the 2024 fourth quarter was $0.61, compared to $0.41 for the same period last year. Net income for the 2024 twelve months ended December 31, 2024, was $25.9 million, compared to $22.8 million for the same period last year. Net income per basic and diluted share for the 2024 twelve months was $1.90, compared to $1.67 for the same period last year.

Deposits
At December 31, 2024, total deposits were a record $2.69 billion, an increase of 3.0% from December 31, 2023. The Company’s cost of interest-bearing liabilities was 3.01% for the quarter ended December 31, 2024, compared to 3.02% for the quarter ended December 31, 2023. For the 2024 twelve months ended December 31, 2024, F&M’s cost of interest-bearing liabilities was 3.12%, compared to 2.53% in the prior year reflecting the higher rate environment and growth in interest-bearing checking and savings accounts.

Mr. Eller commented, “Throughout 2024, we pursued strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we added nearly 7,500 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended 2024 with a loan-to-deposit ratio of 94.4%, compared to 98.0% at December 31, 2023.”

Loan Portfolio and Asset Quality
“While the demand for loans is high across our markets, our approach to risk and pricing remains prudent. This strategy has contributed to historically strong asset quality over the past two quarters and is a testament to F&M’s risk, lending, and compliance capabilities and high-performing teams. We expect loan growth to increase modestly in 2025, with growth weighted in the back half of the year. In addition, 31.4% of our loan portfolio is subject to reprice in the next 12 months. We believe these favorable trends will contribute to higher net interest income in 2025,” continued Mr. Eller.

Total loans, net at December 31, 2024, decreased 0.7%, or by $19.3 million to $2.56 billion, compared to $2.58 billion at December 31, 2023. The year-over-year decline was driven primarily by lower consumer real estate, consumer, and agricultural real estate loans, partially offset primarily by higher commercial and industrial and agricultural loans. Compared to the quarter ended September 30, 2024, total loans, net at December 31, 2024 increased by 0.9% or $23.5 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $3.1 million, or 0.12% of total loans at December 31, 2024, compared to $22.4 million, or 0.87% of total loans at December 31, 2023, and $2.9 million, or 0.11% at September 30, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.2% of the Company’s total loan portfolio at December 31, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.2% of the Company’s total loan portfolio at December 31, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $958,100.

F&M’s CRE portfolio included the following categories at December 31, 2024:

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

Industrial	$	269,315	20.6%	10.5%
Multi-family		233,868	17.8%	9.1%
Retail		219,395	16.7%	8.6%
Hotels		141,514	10.8%	5.5%
Office		134,139	10.2%	5.2%
Gas Stations		70,767	5.4%	2.8%
Food Service		49,246	3.8%	1.9%
Senior Living		31,799	2.4%	1.3%
Development		29,491	2.3%	1.2%
Auto Dealers		28,081	2.1%	1.1%
Other		103,196	7.9%	4.0%
Total CRE	$	1,310,811	100.0%	51.2%

* Numbers have been rounded

At December 31, 2024, the Company’s allowance for credit losses to nonperforming loans was 826.70%, compared to 111.95% at December 31, 2023. The allowance to total loans was 1.07% at December 31, 2024, compared to 1.06% at December 31, 2023. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at December 31, 2024, compared to 1.13% at December 31, 2023.

Mr. Eller concluded, “Throughout the new year, we will leverage F&M’s strong banking platform, while continuing to make strategic investments that expanded our operations, capabilities, and services. We believe this will expand operating efficiencies and produce better outcomes for our customers. I am proud of our strong performance in 2024, and expect 2025 to be another good year for F&M.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 5.9% to $335.2 million, or $24.47 per share at December 31, 2024, from $316.5 million, or $23.17 per share at December 31, 2023. The Company’s Tier 1 leverage ratio of 8.12%, remained stable compared to December 31, 2023.

Tangible stockholders’ equity increased to $270.0 million at December 31, 2024, compared to $254.2 million at December 31, 2023. On a per share basis, tangible stockholders’ equity at December 31, 2024, was $17.74 per share, compared to $16.29 per share at December 31, 2023.

For the twelve months ended December 31, 2024, the Company declared cash dividends of $0.8825 per share, representing a 3.8% 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 twelve months ended December 31, 2024, the dividend payout ratio was 46.07% compared to 50.65% for the same period last year.

About Farmers & Merchants State Bank:
F&M Bank is 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 Troy, 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															Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Interest Income
Loans, including fees	$	36,663		$	36,873		$	36,593		$	35,200		$	34,493		$	145,329		$	129,344
Debt securities:
U.S. Treasury and government agencies	1,882			1,467			1,148			1,045			987			5,542			4,090
Municipalities	384			387			389			394			397			1,554			1,598
Dividends	367			334			327			333			365			1,361			882
Federal funds sold	24			7			7			7			8			45			44
Other	2,531			2,833			2,702			1,675			2,020			9,741			3,850
Total interest income	41,851			41,901			41,166			38,654			38,270			163,572			139,808
Interest Expense
Deposits	15,749			16,947			16,488			15,279			15,015			64,463			46,923
Federal funds purchased and securities sold under agreements to repurchase	274			277			276			284			293			1,111			1,474
Borrowed funds	2,713			2,804			2,742			2,689			2,742			10,948			8,876
Subordinated notes	285			284			285			284			285			1,138			1,138
Total interest expense	19,021			20,312			19,791			18,536			18,335			77,660			58,411
Net Interest Income – Before Provision for Credit Losses	22,830			21,589			21,375			20,118			19,935			85,912			81,397
Provision for (Recovery of) Credit Losses – Loans	346			282			605			(289		)	278			944			1,698
Provision for (Recovery of) Credit Losses – Off Balance Sheet Credit Exposures	(120		)	(267		)	(18		)	(266		)	189			(671		)	46
Net Interest Income After Provision for Credit Losses	22,604			21,574			20,788			20,673			19,468			85,639			79,653
Noninterest Income
Customer service fees	237			300			189			598			415			1,324			1,332
Other service charges and fees	1,176			1,155			1,085			1,057			1,090			4,473			4,343
Interchange income	1,322			1,315			1,330			1,429			1,310			5,396			5,318
Loan servicing income	771			710			513			539			666			2,533			4,405
Net gain on sale of loans	223			215			314			107			230			859			699
Increase in cash surrender value of bank owned life insurance	248			265			236			216			216			965			834
Net gain (loss) on sale of other assets owned	22			–			49			–			(86		)	71			(135		)
Net loss on sale of available-for-sale securities	–			–			–			–			–			–			(891		)
Total noninterest income	3,999			3,960			3,716			3,946			3,841			15,621			15,905
Noninterest Expense
Salaries and wages	7,020			7,713			7,589			7,846			6,981			30,168			26,915
Employee benefits	2,148			2,112			2,112			2,171			1,218			8,543			7,520
Net occupancy expense	1,072			1,054			999			1,027			1,187			4,152			3,833
Furniture and equipment	1,032			1,472			1,407			1,353			1,370			5,264			5,022
Data processing	160			339			448			500			785			1,447			3,147
Franchise taxes	312			410			265			555			308			1,542			1,487
ATM expense	328			472			397			473			665			1,670			2,611
Advertising	498			597			519			530			397			2,144			2,606
FDIC assessment	505			516			507			580			594			2,108			1,982
Servicing rights amortization – net	244			219			187			168			182			818			611
Loan expense	236			244			251			229			246			960			1,055
Consulting fees	242			251			198			186			192			877			832
Professional fees	368			453			527			445			331			1,793			1,430
Intangible asset amortization	446			445			444			445			446			1,780			1,780
Other general and administrative	1,465			1,128			1,495			1,333			1,532			5,421			6,373
Total noninterest expense	16,076			17,425			17,345			17,841			16,434			68,687			67,204
Income Before Income Taxes	10,527			8,109			7,159			6,778			6,875			32,573			28,354
Income Taxes	2,146			1,593			1,477			1,419			1,332			6,635			5,567
Net Income	8,381			6,516			5,682			5,359			5,543			25,938			22,787
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities	(7,403		)	11,664			2,531			(1,995		)	13,261			4,797			10,781
Reclassification adjustment for realized loss on sale of available-for-sale securities	–			–			–			–			–			–			891
Net unrealized gain (loss) on available-for-sale securities	(7,403		)	11,664			2,531			(1,995		)	13,261			4,797			11,672
Tax expense (benefit)	(1,554		)	2,449			531			(418		)	2,784			1,008			2,451
Other comprehensive income (loss)	(5,849		)	9,215			2,000			(1,577		)	10,477			3,789			9,221
Comprehensive Income	$	2,532		$	15,731		$	7,682		$	3,782		$	16,020		$	29,727		$	32,008
Basic Earnings Per Share	$	0.61		$	0.48		$	0.42		$	0.39		$	0.41		$	1.90		$	1.67
Diluted Earnings Per Share	$	0.61		$	0.48		$	0.42		$	0.39		$	0.41		$	1.90		$	1.67
Dividends Declared	$	0.22125		$	0.22125		$	0.22		$	0.22		$	0.22		$	0.88250		$	0.85

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

	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
				(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	174,855		$	244,572		$	191,785		$	186,541		$	140,917
Federal funds sold	1,496			932			1,283			1,241			1,284
Total cash and cash equivalents	176,351			245,504			193,068			187,782			142,201

Interest-bearing time deposits	2,482			2,727			3,221			2,735			2,740
Securities – available-for-sale	426,556			404,881			365,209			347,516			358,478
Other securities, at cost	14,400			15,028			14,721			14,744			17,138
Loans held for sale	2,996			1,706			1,628			2,410			1,576
Loans, net of allowance for credit losses of $25,826 12/31/24 and $25,024 12/31/23	2,536,043			2,512,852			2,534,468			2,516,687			2,556,167
Premises and equipment	33,828			33,779			34,507			35,007			35,790
Construction in progress	–			35			38			9			8
Goodwill	86,358			86,358			86,358			86,358			86,358
Loan servicing rights	5,656			5,644			5,504			5,555			5,648
Bank owned life insurance	34,872			34,624			34,359			34,123			33,907
Other assets	45,181			46,047			49,552			54,628			43,218
Total Assets	$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	516,904		$	481,444		$	479,069		$	510,731		$	528,465
Interest-bearing
NOW accounts	850,462			865,617			821,145			829,236			816,790
Savings	671,818			661,565			673,284			635,430			599,191
Time	647,581			676,187			667,592			645,985			663,017
Total deposits	2,686,765			2,684,813			2,641,090			2,621,382			2,607,463

Federal funds purchased and securities
sold under agreements to repurchase	27,218			27,292			27,218			28,218			28,218
Federal Home Loan Bank (FHLB) advances	246,056			263,081			266,102			256,628			265,750
Subordinated notes, net of unamortized issuance costs	34,818			34,789			34,759			34,731			34,702
Dividend payable	2,996			2,998			2,975			2,975			2,974
Accrued expenses and other liabilities	31,659			40,832			27,825			25,930			27,579
Total liabilities	3,029,512			3,053,805			2,999,969			2,969,864			2,966,686

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value 20,000,000 shares authorized; issued
14,564,425 shares 12/31/24 and 12/31/23; outstanding 13,699,536	135,565			135,193			135,829			135,482			135,515
shares 12/31/24 and 13,664,641 shares 12/31/23
Treasury stock – 864,889 shares 12/31/24 and 899,784 shares 12/31/23	(10,985		)	(10,904		)	(11,006		)	(10,851		)	(11,040		)
Retained earnings	235,854			230,465			226,430			223,648			221,080
Accumulated other comprehensive loss	(25,223		)	(19,374		)	(28,589		)	(30,589		)	(29,012		)
Total stockholders’ equity	335,211			335,380			322,664			317,690			316,543

Total Liabilities and Stockholders’ Equity	$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229

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

	For the Three Months Ended										For the Twelve Months Ended
Selected financial data	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Return on average assets		0.99%		0.78%		0.69%		0.66%		0.67%		0.78%		0.71%
Return on average equity		10.00%		7.93%		7.13%		6.76%		7.27%		7.98%		7.46%
Yield on earning assets		5.20%		5.27%		5.22%		5.00%		4.93%		5.17%		4.67%
Cost of interest bearing liabilities		3.01%		3.21%		3.18%		3.06%		3.02%		3.12%		2.53%
Net interest spread		2.19%		2.06%		2.04%		1.94%		1.91%		2.05%		2.14%
Net interest margin		2.84%		2.71%		2.71%		2.60%		2.57%		2.72%		2.72%
Efficiency		59.82%		67.98%		69.03%		74.08%		69.23%		67.54%		68.48%
Dividend payout ratio		35.75%		45.99%		52.35%		55.52%		54.23%		46.07%		50.65%
Tangible book value per share	$	17.74	$	17.72	$	16.79	$	16.39	$	16.29
Tier 1 leverage ratio		8.12%		8.04%		8.02%		8.40%		8.20%
Average shares outstanding		13,699,869		13,687,119		13,681,501		13,671,166		13,665,773		13,679,955		13,641,336

Loans	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
(Dollar amounts in thousands)
Commercial real estate	$	1,310,811	$	1,301,160	$	1,303,598	$	1,304,400	$	1,337,766
Agricultural real estate		216,401		220,328		222,558		227,455		223,791
Consumer real estate		520,114		524,055		525,902		525,178		521,895
Commercial and industrial		275,152		260,732		268,426		256,051		254,935
Agricultural		152,080		137,252		142,909		127,670		132,560
Consumer		63,009		67,394		70,918		74,819		79,591
Other		24,978		25,916		26,449		26,776		30,136
Less: Net deferred loan fees, costs and other ⁽¹⁾		(676)		1,499		(1,022)		(982)		517
Total loans, net	$	2,561,869	$	2,538,336	$	2,559,738	$	2,541,367	$	2,581,191


Asset quality data	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
(Dollar amounts in thousands)
Nonaccrual loans	$	3,124	$	2,898	$	2,487	$	19,391	$	22,353
90 day past due and accruing	$	–	$	–	$	–	$	–	$	–
Nonperforming loans	$	3,124	$	2,898	$	2,487	$	19,391	$	22,353
Other real estate owned	$	–	$	–	$	–	$	–	$	–
Nonperforming assets	$	3,124	$	2,898	$	2,487	$	19,391	$	22,353


Allowance for credit losses	$	25,826	$	25,484	$	25,270	$	24,680	$	25,024
Allowance for unfunded		1,541		1,661		1,928		1,946		2,212
Total allowance for credit losses	$	27,367	$	27,145	$	27,198	$	26,626	$	27,236
Total allowance for credit losses/total loans		1.07%		1.07%		1.06%		1.05%		1.06%
Adjusted credit losses with accretable yield/total loans		1.08%		1.10%		1.10%		1.11%		1.13%
Net charge-offs:
Quarter-to-date	$	4	$	68	$	15	$	55	$	531
Year-to-date	$	142	$	138	$	70	$	55	$	551
Net charge-offs to average loans
Quarter-to-date		0.00%		0.00%		0.00%		0.00%		0.02%
Year-to-date		0.01%		0.01%		0.00%		0.00%		0.02%
Nonperforming loans/total loans		0.12%		0.11%		0.10%		0.76%		0.87%
Allowance for credit losses/nonperforming loans		826.70%		879.37%		1016.08%		127.28%		111.95%
NPA coverage ratio		826.70%		879.37%		1016.08%		127.28%		111.95%

⁽¹⁾ Includes carrying value adjustments of $1.1 million as of December 31, 2024, $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

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
	December 31, 2024						December 31, 2023
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate		Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	2,543,628	$	36,663	5.77	%	$	2,553,023	$	34,493	5.41	%
Taxable investment securities	450,648		2,554		2.27	%	386,931		1,660		1.72	%
Tax-exempt investment securities	18,571		79		2.15	%	24,145		89		1.87	%
Fed funds sold & other	209,307		2,555		4.88	%	142,642		2,028		5.69	%
Total Interest Earning Assets	3,222,154		$	41,851	5.20	%	3,106,741		$	38,270	4.93	%

Nonearning Assets	174,172						189,202

Total Assets	$	3,396,326					$	3,295,943

Interest Bearing Liabilities:
Savings deposits	$	1,548,638	$	9,459	2.44	%	$	1,392,304	$	8,570	2.46	%
Other time deposits	666,896		6,290		3.77	%	701,347		6,445		3.68	%
Other borrowed money	255,490		2,713		4.25	%	265,948		2,742		4.12	%
Fed funds purchased & securities
sold under agreement to repurchase	27,341		274		4.01	%	28,739		293		4.08	%
Subordinated notes	34,799		285		3.28	%	34,683		285		3.29	%
Total Interest Bearing Liabilities	$	2,533,164	$	19,021	3.01	%	$	2,423,021	$	18,335	3.02	%

Noninterest Bearing Liabilities	527,751						567,813

Stockholders’ Equity	$	335,411					$	305,109

Net Interest Income and Interest Rate Spread			$	22,830	2.19	%			$	19,935	1.91	%

Net Interest Margin					2.84	%					2.57	%

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 Twelve Months Ended						For the Twelve Months Ended
	December 31, 2024						December 31, 2023
Interest Earning Assets:	Average Balance		Interest/ Dividends		Annualized Yield/Rate		Average Balance		Interest/ Dividends		Annualized Yield/Rate
Loans	$	2,557,213	$	145,329	5.68	%	$	2,491,502	$	129,344	5.19	%
Taxable investment securities	410,764		8,129		1.98	%	394,424		6,204		1.57	%
Tax-exempt investment securities	20,154		328		2.06	%	24,686		366		1.88	%
Fed funds sold & other	176,307		9,786		5.55	%	85,018		3,894		4.58	%
Total Interest Earning Assets	3,164,438		$	163,572	5.17	%	2,995,630		$	139,808	4.67	%

Nonearning Assets	164,464						197,726

Total Assets	$	3,328,902					$	3,193,356

Interest Bearing Liabilities:
Savings deposits	$	1,502,365	$	39,750	2.65	%	$	1,376,318	$	27,424	1.99	%
Other time deposits	663,320		24,713		3.73	%	640,390		19,499		3.04	%
Other borrowed money	262,094		10,948		4.18	%	220,175		8,876		4.03	%
Fed funds purchased & securities
sold under agreement to repurchase	27,750		1,111		4.00	%	35,421		1,474		4.16	%
Subordinated notes	34,755		1,138		3.27	%	34,640		1,138		3.29	%
Total Interest Bearing Liabilities	$	2,490,284	$	77,660	3.12	%	$	2,306,944	$	58,411	2.53	%

Noninterest Bearing Liabilities	513,588						580,931

Stockholders’ Equity	$	325,030					$	305,481

Net Interest Income and Interest Rate Spread			$	85,912	2.05	%			$	81,397	2.14	%

Net Interest Margin					2.72	%					2.72	%

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 December 31, 2024													For the Three Months Ended December 31, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	36,663	5.77	%	$	36,039	5.67	%	$	624		0.10	%	$	34,493	5.41	%	$	33,769	5.29	%	$	724		0.12	%
Taxable investment securities	2,554		2.27	%	2,554		2.27	%	–			0.00	%	1,660		1.72	%	1,660		1.72	%	–			0.00	%
Tax-exempt investment securities	79		2.15	%	79		2.15	%	–			0.00	%	89		1.87	%	89		1.87	%	–			0.00	%
Fed funds sold & other	2,555		4.88	%	2,555		4.88	%	–			0.00	%	2,028		5.69	%	2,028		5.69	%	–			0.00	%
Total Interest Earning Assets	41,851		5.20	%	41,227		5.12	%	624			0.08	%	38,270		4.93	%	37,546		4.84	%	724			0.09	%

Interest Bearing Liabilities:
Savings deposits	$	9,459	2.44	%	$	9,459	2.44	%	$ –			0.00	%	$	8,570	2.46	%	$	8,570	2.46	%	$ –			0.00	%
Other time deposits	6,290		3.77	%	6,290		3.77	%	–			0.00	%	6,445		3.68	%	6,381		3.64	%	64			0.04	%
Other borrowed money	2,713		4.25	%	2,710		4.24	%	3			0.01	%	2,742		4.12	%	2,760		4.15	%	(18		)	-0.03	%
Federal funds purchased and
securities sold under agreement to
repurchase	274		4.01	%	274		4.01	%	–			0.00	%	293		4.08	%	293		4.08	%	–			0.00	%
Subordinated notes	285		3.28	%	285		3.28	%	–			0.00	%	285		3.29	%	285		3.29	%	–			0.00	%
Total Interest Bearing Liabilities	19,021		3.01	%	19,018		3.00	%	3			0.01	%	18,335		3.02	%	18,289		3.02	%	46			0.00	%

Interest/Dividend income/yield	41,851		5.20	%	41,227		5.12	%	624			0.08	%	38,270		4.93	%	37,546		4.84	%	724			0.09	%
Interest Expense / yield	19,021		3.01	%	19,018		3.00	%	3			0.01	%	18,335		3.02	%	18,289		3.02	%	46			0.00	%
Net Interest Spread	22,830		2.19	%	22,209		2.12	%	621			0.07	%	19,935		1.91	%	19,257		1.82	%	678			0.09	%
Net Interest Margin			2.84	%			2.76	%				0.08	%			2.57	%			2.48	%				0.09	%

	For the Twelve Months Ended December 31, 2024													For the Twelve Months Ended December 31, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	145,329	5.68	%	$	142,627	5.58	%	$	2,702		0.10	%	$	129,344	5.19	%	$	126,133	5.06	%	$	3,211		0.13	%
Taxable investment securities	8,129		1.98	%	8,129		1.98	%	–			0.00	%	6,204		1.57	%	6,204		1.57	%	–			0.00	%
Tax-exempt investment securities	328		2.06	%	328		2.06	%	–			0.00	%	366		1.88	%	366		1.88	%	–			0.00	%
Fed funds sold & other	9,786		5.55	%	9,786		5.55	%	–			0.00	%	3,894		4.58	%	3,894		4.58	%	–			0.00	%
Total Interest Earning Assets	163,572		5.17	%	160,870		5.09	%	2,702			0.08	%	139,808		4.67	%	136,597		4.57	%	3,211			0.10	%

Interest Bearing Liabilities:
Savings deposits	$	39,750	2.65	%	$	39,750	2.65	%	$ –			0.00	%	$	27,424	1.99	%	$	27,424	1.99	%	$ –			0.00	%
Other time deposits	24,713		3.73	%	24,713		3.73	%	–			0.00	%	19,499		3.04	%	19,839		3.10	%	(340		)	-0.06	%
Other borrowed money	10,948		4.18	%	10,964		4.18	%	(16		)	0.00	%	8,876		4.03	%	8,947		4.06	%	(71		)	-0.03	%
Federal funds purchased and
securities sold under agreement to
repurchase	1,111		4.00	%	1,111		4.00	%	–			0.00	%	1,474		4.16	%	1,474		4.16	%	–			0.00	%
Subordinated notes	1,138		3.27	%	1,138		3.27	%	–			0.00	%	1,138		3.29	%	1,138		3.29	%	–			0.00	%
Total Interest Bearing Liabilities	77,660		3.12	%	77,676		3.12	%	(16		)	0.00	%	58,411		2.53	%	58,822		2.55	%	(411		)	-0.02	%

Interest/Dividend income/yield	163,572		5.17	%	160,870		5.09	%	2,702			0.08	%	139,808		4.67	%	136,597		4.57	%	3,211			0.10	%
Interest Expense / yield	77,660		3.12	%	77,676		3.12	%	(16		)	0.00	%	58,411		2.53	%	58,822		2.55	%	(411		)	-0.02	%
Net Interest Spread	85,912		2.05	%	83,194		1.97	%	2,718			0.08	%	81,397		2.14	%	77,775		2.02	%	3,622			0.12	%
Net Interest Margin			2.72	%			2.63	%				0.09	%			2.72	%			2.60	%				0.12	%

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 –

February 13, 2025

MIL-OSI: MKS Instruments Reports Fourth Quarter and Full-Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Quarterly revenue of $935 million, above the midpoint of guidance
Quarterly GAAP net income of $90 million and net income per diluted share of $1.33
Quarterly Adjusted EBITDA of $237 million and Non-GAAP net earnings per diluted share of $2.15, above the midpoint of guidance

ANDOVER, Mass., Feb. 12, 2025 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported fourth quarter and full year 2024 financial results.

“MKS delivered revenue and adjusted EBITDA above the midpoint of our outlook, closing out 2024 on an impressive note against a mixed demand backdrop,” said John T.C. Lee, President and Chief Executive Officer. “Our broad and deep technology portfolio serving an array of semiconductor, electronics and industrial applications enables us to address key demand opportunities as broader end market recovery begins to develop.”

Mr. Lee added, “We enter 2025 in a strong position, highlighted by increasing customer engagement with our World Class Optics solutions, as well as solid trends in our chemistry business as we demonstrate the pivotal role we play in advanced electronics.”

“Our revenue and profitability remained robust in the fourth quarter as our team executed well,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.

Mr. Mayampurath added, “We delivered continued healthy gross margin, earnings per share growth and increased operating cash flow in 2024. This underscores the value customers see in our technology portfolio as well as our strong focus on both cost management and cash generation. We also continue to make good progress proactively managing our leverage, completing another repricing of our term loan B and making a voluntary principal prepayment of $100 million in January.”

First Quarter 2025 Guidance

For the first quarter of 2025, the Company expects revenue of $910 million, plus or minus $40 million, GAAP net income of $43 million, plus or minus $19 million, Adjusted EBITDA of $217 million, plus or minus $23 million, GAAP net income per diluted share of $0.63, plus or minus $0.28, and Non-GAAP net earnings per diluted share of $1.40, plus or minus $0.27. The guidance for the first quarter is based on the current business environment, including the immaterial impact of the recently announced U.S. import tariffs up through but not including the date of this release. This guidance does not reflect the imposition of any other import tariffs by the United States or potential retaliatory actions taken by other countries. The Company will continue to monitor and adapt to changes in the business environment as needed.

Conference Call Details

A conference call with management will be held on Thursday, February 13, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Instruments

MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

Selected GAAP and Non-GAAP Financial Measures
(In millions, except per share data)

	Quarter									Full Year
	Q4 2024			Q3 2024			Q4 2023				2024			2023
Net Revenues
Semiconductor	$	400		$	378		$	362		$	1,498		$	1,479
Electronics & Packaging		254			231			226		$	922		$	916
Specialty Industrial		281			287			305		$	1,166		$	1,227
Total net revenues	$	935		$	896		$	893		$	3,586		$	3,622
GAAP Financial Measures
Gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.3	%
Operating margin		14.5	%		14.3	%		2.7	%		13.9	%		(42.9	%)
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Diluted income (loss) per share	$	1.33		$	0.92			(1.02	)	$	2.81		$	(27.54	)
Non-GAAP Financial Measures
Gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.7	%
Operating margin		21.3	%		21.8	%		20.3	%		21.3	%		19.5	%
Net earnings	$	146		$	116		$	78		$	444		$	297
Diluted earnings per share	$	2.15		$	1.72		$	1.17		$	6.58		$	4.43

Additional Financial Information

At December 31, 2024, the Company had $714 million in cash and cash equivalents, $3.2 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding and up to $675 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the fourth quarter of 2024, the Company paid a cash dividend of $15 million or $0.22 per diluted share and made a voluntary principal prepayment of €200 million, which equated to $216 million, on its EUR term loan B.

In January 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of $100 million on its USD term loan B.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; legal, reputational, financial and contractual risks resulting from the ransomware incident we identified in February 2023, and other risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business and growth of the Electro Scientific Industries, Inc. business, which we acquired in February 2019, and financial risks associated with those and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; the impact of a pandemic or other widespread health crisis; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Annual Report on Form 10-K for the year ended December 31, 2024.

Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mks.com

MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In millions, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net revenues:
Products	$	824		$	776		$	785		$	3,124		$	3,200
Services		111			120			108			462			422
Total net revenues		935			896			893			3,586			3,622
Cost of revenues:
Products		443			410			423			1,662			1,748
Services		51			54			59			216			232
Total cost of revenues (exclusive of amortization shown separately below)		494			464			482			1,878			1,980
Gross profit		441			432			411			1,708			1,642
Research and development		65			70			70			271			288
Selling, general and administrative		176			167			160			674			675
Acquisition and integration costs		3			3			3			9			16
Restructuring and other		1			1			7			6			20
Fees and expenses related to the repricing of Term Loan Facility		—			2			2			5			2
Amortization of intangible assets		61			61			70			245			295
Goodwill and intangible asset impairment		—			—			75			—			1,902
Gain on sale of long-lived assets		—			—			—			—			(2	)
Income (loss) from operations		135			128			24			498			(1,554	)
Interest income		(5	)		(6	)		(7	)		(21	)		(17	)
Interest expense		54			64			90			284			356
Loss on extinguishment of debt		4			5			8			57			8
Other expense (income), net		3			5			12			(2	)		27
Income (loss) before income taxes		79			60			(79	)		180			(1,928	)
(Benefit) provision for income taxes		(11	)		(2	)		(11	)		(10	)		(87	)
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Net income (loss) per share:
Basic	$	1.34		$	0.92		$	(1.02	)	$	2.82		$	(27.54	)
Diluted	$	1.33		$	0.92		$	(1.02	)	$	2.81		$	(27.54	)
Cash dividends per common share	$	0.22		$	0.22		$	0.22		$	0.88		$	0.88
Weighted average shares outstanding:
Basic		67.4			67.4			66.9			67.3			66.8
Diluted		67.7			67.6			66.9			67.6			66.8

MKS Instruments, Inc.
Unaudited Consolidated Balance Sheets
(In millions)


	December 31,			December 31,
		2024			2023
ASSETS
Cash and cash equivalents	$	714		$	875
Trade accounts receivable, net		615			603
Inventories		893			991
Other current assets		252			227
Total current assets		2,474			2,696
Property, plant and equipment, net		771			784
Right-of-use assets		238			225
Goodwill		2,479			2,554
Intangible assets, net		2,272			2,619
Other assets		356			240
Total assets	$	8,590		$	9,118
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term debt	$	50		$	93
Accounts payable		341			327
Other current liabilities		384			428
Total current liabilities		775			848
Long-term debt, net		4,488			4,696
Non-current deferred taxes		504			640
Non-current accrued compensation		141			151
Non-current lease liabilities		211			205
Other non-current liabilities		149			106
Total liabilities		6,268			6,646
Stockholders’ equity:
Common stock		—			—
Additional paid-in capital		2,067			2,195
Retained earnings		503			373
Accumulated other comprehensive loss		(248	)		(96	)
Total stockholders’ equity		2,322			2,472
Total liabilities and stockholders’ equity	$	8,590		$	9,118

MKS Instruments, Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Cash flows from operating activities:
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		87			87			95			348			397
Goodwill and intangible asset impairments		—			—			75			—			1,902
Unrealized loss (gain) on derivatives not designated as hedging instruments		11			2			10			13			32
Amortization of debt issuance costs and original issue discount		7			7			10			30			33
Loss on extinguishment of debt		4			5			8			57			8
Gain on sale of long-lived assets		—			—			—			—			(2	)
Stock-based compensation		11			11			11			48			54
Provision for excess and obsolete inventory		15			16			10			56			64
Deferred income taxes		(58	)		(72	)		(61	)		(226	)		(234	)
Other		2			2			—			8			5
Changes in operating assets and liabilities, net of acquired assets and liabilities		7			43			90			4			(99	)
Net cash provided by operating activities		176			163			180			528			319
Cash flows from investing activities:
Proceeds from sale of long-lived assets		—			1			—			1			3
Purchases of property, plant and equipment		(51	)		(22	)		(34	)		(118	)		(87	)
Net cash used in investing activities		(51	)		(21	)		(34	)		(117	)		(84	)
Cash flows from financing activities:
Proceeds from borrowings		—			—			214			2,161			216
Payments of borrowings		(229	)		(123	)		(336	)		(2,427	)		(403	)
Purchase of capped calls related to Convertible Notes		—			—			—			(167	)		—
Payments of deferred financing fees		—			—			(9	)		(33	)		(9	)
Dividend payments		(15	)		(15	)		(15	)		(59	)		(59	)
Net proceeds (payments) related to employee stock awards		3			(1	)		4			(9	)		(1	)
Other financing activities		(5	)		(5	)		(1	)		(15	)		(3	)
Net cash used in financing activities		(246	)		(144	)		(143	)		(549	)		(259	)
Effect of exchange rate changes on cash and cash equivalents		(26	)		13			13			(23	)		(10	)
(Decrease) increase in cash and cash equivalents		(147	)		11			16			(161	)		(34	)
Cash and cash equivalents at beginning of period		861			850			859			875			909
Cash and cash equivalents at end of period	$	714		$	861			875		$	714		$	875

The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)


	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Amortization of intangible assets		61			61			70			245			295
Loss on debt extinguishment (Note 3)		4			5			8			57			8
Amortization of debt issuance costs (Note 4)		5			5			7			21			24
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Tax effect of Non-GAAP adjustments (Note 10)		(18	)		(23	)		(26	)		(89	)		(156	)
Non-GAAP net earnings	$	146		$	116		$	78		$	444		$	297
Non-GAAP net earnings per diluted share	$	2.15		$	1.72		$	1.17		$	6.58		$	4.43
Weighted average diluted shares outstanding		67.7			67.6			67.1			67.6			67.0

Net cash provided by operating activities	$	176		$	163		$	180		$	528		$	319
Purchases of property, plant and equipment		(51	)		(22	)		(34	)		(118	)		(87	)
Free cash flow	$	125		$	141		$	146		$	410		$	232

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Gross profit	$	441		$	432		$	411		$	1,708		$	1,642
Gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.3	%
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Non-GAAP gross profit	$	441		$	432		$	411		$	1,708		$	1,655
Non-GAAP gross margin		47.2	%		48.2	%		46.0	%		47.6	%		45.7	%
Operating expenses	$	306		$	304		$	387		$	1,210		$	3,196
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Amortization of intangible assets		61			61			70			245			295
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Non-GAAP operating expenses	$	242		$	237		$	229		$	945		$	948
Income (loss) from operations	$	135		$	128		$	24		$	498		$	(1,554	)
Operating margin		14.5	%		14.3	%		2.7	%		13.9	%		(42.9	%)
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Amortization of intangible assets		61			61			70			245			295
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Non-GAAP income from operations	$	199		$	195		$	182		$	763		$	707
Non-GAAP operating margin		21.3	%		21.8	%		20.3	%		21.3	%		19.5	%
Interest expense, net	$	49		$	58		$	83		$	263		$	339
Amortization of debt issuance costs (Note 4)		5			5			7			21			24
Non-GAAP interest expense, net	$	45		$	53		$	76		$	242		$	315
Net income (loss)	$	90		$	62		$	(68	)	$	190		$	(1,841	)
Interest expense, net		49			58			83			263			339
Other expense (income), net		3			5			12			(2	)		27
(Benefit) provision for income taxes		(11	)		(2	)		(11	)		(10	)		(87	)
Depreciation		26			26			25			103			102
Amortization		61			61			70			245			295
Stock-based compensation		11			11			11			48			54
Acquisition and integration costs (Note 1)		3			3			3			9			16
Restructuring and other (Note 2)		1			1			7			6			20
Loss on debt extinguishment (Note 3)		4			5			8			57			8
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—			2			2			5			2
Goodwill and intangible asset impairment (Note 6)		—			—			75			—			1,902
Gain on sale of long-lived assets (Note 7)		—			—			—			—			(2	)
Ransomware incident (Note 8)		—			—			1			—			15
Excess and obsolete charge from discontinued product line (Note 9)		—			—			—			—			13
Adjusted EBITDA	$	237		$	232		$	218		$	914		$	863
Adjusted EBITDA margin		25.3	%		25.9	%		24.4	%		25.5	%		23.8	%

MKS Instruments, Inc.
Reconciliation of GAAP Income Tax Rate to Non-GAAP Income Tax Rate
(In millions)


	Three Months Ended December 31, 2024							Three Months Ended December 31, 2023
	Income Before		(Benefit) Provision			Effective		(Loss) Income Before			(Benefit) Provision			Effective
	Income Taxes		for Income Taxes			Tax Rate		Income Taxes			for Income Taxes			Tax Rate

GAAP	$	79	$	(11	)	(14.5	%)	$	(79	)	$	(11	)	14.2	%
Acquisition and integration costs (Note 1)		3		—					3			—
Restructuring and other (Note 2)		1		—					7			—
Amortization of intangible assets		61		—					70			—
Loss on debt extinguishment (Note 3)		4		—					8			—
Amortization of debt issuance costs (Note 4)		5		—					7			—
Fees and expenses related to repricing of Term Loan Facility (Note 5)		—		—					2			—
Goodwill and intangible asset impairment (Note 6)		—		—					75			—
Ransomware incident (Note 8)		—		—					1			—
Tax effect of Non-GAAP adjustments (Note 10)		—		18					—			26
Non-GAAP	$	153	$	7		4.0	%	$	94		$	15		15.6	%

	Three Months Ended September 30, 2024
	Income Before		(Benefit) Provision			Effective
	Income Taxes		for Income Taxes			Tax Rate
GAAP	$	60	$	(2	)	(4.0	%)
Acquisition and integration costs (Note 1)		3		—
Restructuring and other (Note 2)		1		—
Amortization of intangible assets		61		—
Loss on debt extinguishment (Note 3)		5		—
Amortization of debt issuance costs (Note 4)		5		—
Fees and expenses related to repricing of Term Loan Facility (Note 5)		2		—
Tax effect of Non-GAAP adjustments (Note 10)		—		23
Non-GAAP	$	137	$	21		15.1	%

	Twelve Months Ended December 31, 2024							Twelve Months Ended December 31, 2023
	Income Before		(Benefit) Provision			Effective		(Loss) Income Before			(Benefit) Provision			Effective
	Income Taxes		for Income Taxes			Tax Rate		Income Taxes			for Income Taxes			Tax Rate
GAAP	$	180	$	(10	)	(5.7	%)	$	(1,928	)	$	(87	)	4.5	%
Acquisition and integration costs (Note 1)		9		—					16			—
Restructuring and other (Note 2)		6		—					20			—
Amortization of intangible assets		245		—					295			—
Loss on debt extinguishment (Note 3)		57		—					8			—
Amortization of debt issuance costs (Note 4)		21		—					24			—
Fees and expenses related to repricing of Term Loan Facility (Note 5)		5		—					2			—
Goodwill and intangible asset impairment (Note 6)		—		—					1,902			—
Gain on sale of long-lived assets (Note 7)		—		—					(2	)		—
Ransomware incident (Note 8)		—		—					15			—
Excess and obsolete charge from discontinued product line (Note 9)		—		—					13			—
Tax effect of Non-GAAP adjustments (Note 10)		—		89					—			156
Non-GAAP	$	523	$	78		14.8	%	$	366		$	69		18.9	%

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures – Q1’25 Guidance
(In millions, except per share data)


	Three Months Ending March 31, 2025
	$ Amount			Per Share
GAAP net income and net income per share	$	43		$	0.63
Amortization of intangible assets		60
Loss on debt extinguishment		3
Amortization of debt issuance costs		4
Fees and expenses related to repricing of Term Loan Facility		2
Tax effect of Non-GAAP adjustments		(17	)
Non-GAAP net earnings and net earnings per share	$	95		$	1.40
Estimated weighted average diluted shares		67.8

GAAP operating expenses	$	317
Amortization of intangible assets		(60	)
Fees and expenses related to repricing of Term Loan Facility		(2	)
Non-GAAP operating expenses	$	255

GAAP net income		43
Interest expense, net		50
Provision for income taxes		10
Depreciation		26
Amortization of intangible assets		60
Stock-based compensation		23
Loss on debt extinguishment		3
Fees and expenses related to repricing of Term Loan Facility		2
Adjusted EBITDA	$	217

MKS Instruments, Inc.
Notes on Our Non-GAAP Financial Information

Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Note 1: Acquisition and integration costs related to the Atotech Acquisition.

Note 2: Restructuring costs primarily related to severance costs due to global cost-saving initiatives. Other costs related to certain legal matters.

Note 3: During the three and twelve months ended December 31, 2024, we recorded charges to write-off deferred financing fees and original issue discount costs related to voluntary principal prepayments on our USD term loan B. During the three months ended September 30, 2024 and the twelve months ended December 31, 2024, we recorded charges to write-off deferred financing fees and original issue discount costs related to the repricing of our USD term loan B and EUR term loan B. Additionally, during the twelve months ended December 31, 2024, we recorded charges to (i) write-off deferred financing fees and original issue discount costs related to voluntary principal prepayments on our EUR term loan B and (ii) write-off deferred financing fees related to the extinguishment of our term loan A. During the three and twelve months ended December 31, 2023, we recorded a charge to write-off deferred financing fees and original issue discount costs related to the repricing of our USD term loan B and the voluntary prepayment on our USD Tranche A loan.

Note 4: We recorded additional interest expense related to the amortization of deferred financing costs associated with our term loan facility.

Note 5: During the twelve months ended December 31, 2024 and the three months ended September 30, 2024, we recorded fees and expenses related to the repricing of our USD term loan B and EUR term loan B. During the twelve months ended December 31, 2024, we also recorded fees and expenses related to an amendment to our term loan facility where we borrowed additional amounts under our USD term loan B and EUR term loan B and fully repaid our term loan A. During the three and twelve months ended December 31, 2023, we recorded fees and expenses related to the repricing of our USD term loan B.

Note 6: During the twelve months ended December 31, 2023, we noted softer industry demand, particularly in the personal computer and smartphone markets and concluded there was a triggering event at our Materials Solutions Division, which represents the former Atotech business, and Equipment Solutions Business, which represents the former Electro Scientific Industries business and is a reporting unit of our Photonics Solutions Division. We performed a quantitative assessment which resulted in an impairment of $1.3 billion for our Materials Solutions Division and $0.5 billion for our Equipment Solutions Business. In addition, during the three months ended December 31, 2023, as part of our annual goodwill and intangible asset impairment analysis, we recorded additional impairment charges of $62 million for our Materials Solutions Division and $13 million for our Equipment Solutions Business.

Note 7: We recorded a gain on the sale of a minority interest investment in a private company.

Note 8: We recorded costs, net of recoveries, associated with the ransomware incident we identified on February 3, 2023. These costs were primarily comprised of various third-party consulting services, including forensic experts, restoration experts, legal counsel, and other information technology and accounting professional expenses, enhancements to our cybersecurity measures, and costs to restore our systems and access our data.

Note 9: We recorded an excess and obsolescence inventory charge related to a product line that was discontinued.

Note 10: Non-GAAP adjustments are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates.

The MIL Network –

February 13, 2025

MIL-OSI: Robinhood Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Q4 Revenues up 115% year-over-year to a record $1.01 billion.
Q4 Net Deposits grow to a record $16 billion.
Q4 Gold Subscribers up 86% year-over-year to a record 2.6 million.
Q4 Net Income up over 10X year-over-year to a record $916 million, or Diluted EPS of a record $1.01.
Q4 Adjusted EBITDA up over 300% year-over-year to a record $613 million.

MENLO PARK, Calif., Feb. 12, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the fourth quarter and full year of 2024, which ended December 31, 2024.

“We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded UK and EU product suite, and much more,” said Vlad Tenev, CEO and Co-Founder of Robinhood. “We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood.”

“Q4 was a record-breaking quarter that caps off a record-setting year in 2024,” said Jason Warnick, Chief Financial Officer of Robinhood. “For both the quarter and full year, we reached new highs for Assets Under Custody, Net Deposits, Gold Subscribers, Revenues, Net Income, Adjusted EBITDA, and EPS. We’re entering 2025 with strong momentum as we remain focused on delivering another year of profitable growth.”

Fourth Quarter Results:

Total net revenues increased 115% year-over-year to $1.01 billion.
- Transaction-based revenues increased over 200% year-over-year to $672 million, primarily driven by cryptocurrencies revenue of $358 million, up over 700%, options revenue of $222 million, up 83%, and equities revenue of $61 million, up 144%.
- Net interest revenues increased 25% year-over-year to $296 million, primarily driven by growth in interest-earning assets, partially offset by a lower federal funds rate.
- Other revenues increased 31% year-over-year to $46 million, primarily due to increased Gold subscription revenues.
Net income increased over 10X year-over-year to $916 million, or diluted earnings per share (EPS) of $1.01, compared to $30 million, or diluted EPS of $0.03, in Q4 2023. Q4 2024 net income included:
- a $369 million deferred tax benefit ($0.41 of diluted EPS), primarily from the release of the Company’s valuation allowance on most of its net deferred tax assets.
- a $55 million benefit ($0.06 of diluted EPS) due to a reversal of an accrual as part of a regulatory settlement.
Total operating expenses increased 3% year-over-year to $458 million, including a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.
- Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 14% year-over-year to $508 million, which includes Adjusted Operating Expenses (non-GAAP) of $431 million and SBC of $77 million.
Adjusted EBITDA (non-GAAP) increased over 300% year-over-year to $613 million.
Funded Customers increased 8% year-over-year to 25.2 million.
- Investment Accounts increased by 10% year-over-year to 26.2 million.
Assets Under Custody (AUC) increased 88% year-over-year to $193 billion, driven by continued Net Deposits and higher equity and cryptocurrency valuations.
Net Deposits were $16.1 billion, an annualized growth rate of 42% relative to AUC at the end of Q3 2024. Over the past twelve months, Net Deposits were $50.5 billion, a growth rate of 49% relative to AUC at the end of Q4 2023.
Average Revenue Per User (ARPU) increased by 102% year-over-year to $164.
Gold Subscribers increased by 1.2 million, or 86%, year-over-year to 2.6 million.
Cash and cash equivalents totaled $4.3 billion compared with $4.8 billion at the end of Q4 2023.
Share repurchases were $160 million, representing 5.3 million shares of our Class A common stock at an average price per share of $29.79.

Full Year Results:

Total net revenues increased 58% year-over-year to $2.95 billion.
Net income increased $1.95 billion year-over-year to $1.41 billion, or diluted EPS of $1.56, compared to a net loss of $0.54 billion, or diluted EPS of -$0.61, in 2023.
- 2024 included a deferred tax benefit of $369 million, primarily from the release of the Company’s valuation allowance on most of its net deferred tax assets.
- 2023 included an expense of $485 million from the 2021 Founders Award Cancellation.
Total operating expenses decreased 21% year-over-year to $1.90 billion.
- Adjusted Operating Expenses and SBC decreased 16% year-over-year to $1.94 billion, which includes Adjusted Operating Expenses of $1.63 billion and SBC of $304 million.
- Adjusted Operating Expenses and SBC excluding the 2021 Founders Award Cancellation (non-GAAP) increased 7% year-over-year.
Adjusted EBITDA increased 167% year-over-year to $1.43 billion, compared to $536 million in 2023.
Share repurchases were $257 million, representing 10.4 million shares of our Class A common stock at an average price per share of $24.78 as we make progress on our $1 billion share repurchase program.

Highlights

Strong product momentum drove record growth in 2024 as Robinhood delivers on roadmap

Expanding Access to Crypto Across the U.S. and EU – Crypto notional volumes increased over 400 percent year-over-year, reaching $71 billion in Q4 2024. Since the start of Q4, Robinhood has also added seven crypto assets in the U.S. and launched Ethereum (ETH) staking in the EU. In June 2024, Robinhood entered into an agreement to acquire Bitstamp, the world’s longest running cryptocurrency exchange serving institutional and retail customers internationally. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025.

Establishing Ourselves as the #1 Platform for Active Traders – Last month, Robinhood made index options available to all customers and started to roll out futures trading directly in-app, allowing customers to trade stock indexes, energy, currency, metals and crypto. Additionally, since launching in October 2024, Robinhood Legend – the desktop trading platform built for active traders – has added nearly 30 additional indicators and rolled out crypto trading.

Robinhood Expands Global Ambitions – Robinhood announced plans to expand into the Asia-Pacific region in 2025, with Singapore serving as its local headquarters. Earlier this week, Robinhood also started to offer options trading to its UK customers.

Robinhood Gold Membership Continues to Climb – Robinhood Gold subscribers hit 2.6 million, with an adoption rate of over 10 percent in Q4. In addition, the Robinhood Gold Credit Card reached over 100 thousand cardholders and we have plans to continue expanding the cardholder base in 2025.

Stepping Into the Investment Advisory Space – In November 2024, Robinhood entered into an agreement to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors with over 25 years in the industry and over $40 billion in assets under administration at the time of signing. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025.

Additional Q4 2024 Operating Data

Retirement AUC increased over 600% year-over-year to $13.1 billion.
Cash Sweep increased 59% year-over-year to $26.1 billion.
Margin Book increased 126% year-over-year to $7.9 billion.
Equity Notional Trading Volumes increased 154% year-over-year to $423 billion.
Options Contracts Traded increased 61% year-over-year to 477 million.
Crypto Notional Trading Volumes increased over 400% year-over-year to $71.0 billion.

Conference Call and Livestream Information

Robinhood will host a video call to discuss its results at 2 p.m. PT / 5 p.m. ET today, February 12, 2025. The video call can be accessed at investors.robinhood.com, along with the earnings press release and accompanying slide presentation. The event will also be live streamed to YouTube and X.com via Robinhood’s official channels, @RobinhoodApp.

Following the call, a replay and transcript will also be available at investors.robinhood.com.

Financial Outlook

The paragraph below provides information on our 2025 expense plan and outlook. We are not providing a 2025 outlook for total operating expenses and have not reconciled our 2025 outlook for Adjusted Operating Expenses and SBC to the most directly comparable GAAP financial measure, total operating expenses, because we are unable to predict with reasonable certainty the impact of certain items without unreasonable effort. These items include, but are not limited to, provisions for credit losses and significant regulatory expenses which may be material and could have a significant impact on total operating expenses for 2025.

Our 2025 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses. Our outlook for combined Adjusted Operating Expenses and SBC for full-year 2025 is $2.0 billion to $2.1 billion. This expense outlook does not include provisions for credit losses, costs related to TradePMR or Bitstamp, potential significant regulatory matters, or other significant expenses (such as impairments, restructuring charges, and other business acquisition- or disposition-related expenses) that may arise or accruals we may determine in the future are required, as we are unable to accurately predict the size or timing of such matters, expenses or accruals at this time.

Actual results might differ materially from our outlook due to several factors, including the rate of growth in Funded Customers and our effectiveness to cross-sell products which affects variable marketing costs, the degree to which we are successful in managing credit losses and preventing fraud, and our ability to manage web-hosting expenses efficiently, among other factors. See “Non-GAAP Financial Measures” for more information on Adjusted Operating Expenses and SBC, including significant items that we believe are not indicative of our ongoing expenses that would be adjusted out of total operating expenses (GAAP) to get to Adjusted Operating Expenses and SBC (non-GAAP) should they occur.

About Robinhood

Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

“Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Contacts

Investors:
ir@robinhood.com

Press:
press@robinhood.com


ROBINHOOD MARKETS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	December 31,
(in millions, except share and per share data)		2023			2024
Assets
Current assets:
Cash and cash equivalents	$	4,835		$	4,332
Cash, cash equivalents, and securities segregated under federal and other regulations		4,448			4,724
Receivables from brokers, dealers, and clearing organizations		89			471
Receivables from users, net		3,495			8,239
Securities borrowed		1,602			3,236
Deposits with clearing organizations		338			489
User-held fractional shares		1,592			2,530
Held-to-maturity investments		413			398
Prepaid expenses		63			75
Deferred customer match incentives		11			100
Other current assets		196			509
Total current assets		17,082			25,103
Property, software, and equipment, net		120			139
Goodwill		175			179
Intangible assets, net		48			38
Non-current held-to-maturity investments		73			—
Non-current deferred customer match incentives		19			195
Other non-current assets, including non-current prepaid expenses of $4 as of December 31, 2023 and $17 as of December 31, 2024		107			533
Total assets	$	17,624		$	26,187
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	384		$	397
Payables to users		5,097			7,448
Securities loaned		3,547			7,463
Fractional shares repurchase obligation		1,592			2,530
Other current liabilities		217			266
Total current liabilities		10,837			18,104
Other non-current liabilities		91			111
Total liabilities		10,928			18,215
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value. 210,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and December 31, 2024.		—			—
Class A common stock, $0.0001 par value. 21,000,000,000 shares authorized, 745,401,862 shares issued and outstanding as of December 31, 2023; 21,000,000,000 shares authorized, 764,903,997 shares issued and outstanding as of December 31, 2024.		—			—
Class B common stock, $0.0001 par value. 700,000,000 shares authorized, 126,760,802 shares issued and outstanding as of December 31, 2023; 700,000,000 shares authorized, 119,588,986 shares issued and outstanding as of December 31, 2024.		—			—
Class C common stock, $0.0001 par value. 7,000,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and December 31, 2024.		—			—
Additional paid-in capital		12,145			12,008
Accumulated other comprehensive loss		(3	)		(1	)
Accumulated deficit		(5,446	)		(4,035	)
Total stockholders’ equity		6,696			7,972
Total liabilities and stockholders’ equity	$	17,624		$	26,187


ROBINHOOD MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except share, per share, and percentage data)	Three Months Ended December 31,						YOY% Change		Three Months Ended September 30,		QOQ% Change
		2023			2024		YOY% Change			2024	QOQ% Change
Revenues:
Transaction-based revenues	$	200		$	672		236	%	$	319	111	%
Net interest revenues		236			296		25	%		274	8	%
Other revenues		35			46		31	%		44	5	%
Total net revenues		471			1,014		115	%		637	59	%

Operating expenses⁽¹⁾⁽²⁾:
Brokerage and transaction		32			50		56	%		39	28	%
Technology and development		197			208		6	%		205	1	%
Operations		26			29		12	%		27	7	%
Provision for credit losses		14			19		36	%		23	(17)%
Marketing		43			82		91	%		59	39	%
General and administrative		133			70		(47)%			133	(47)%
Total operating expenses		445			458		3	%		486	(6)%

Other income, net		3			2		(33)%			2	—	%
Income before income taxes		29			558		NM			153	265	%
Provision for (benefit from) income taxes		(1	)		(358	)	NM			3	NM
Net income	$	30		$	916		NM		$	150	511	%
Net income attributable to common stockholders:
Basic	$	30		$	916				$	150
Diluted	$	30		$	916				$	150
Net income per share attributable to common stockholders:
Basic	$	0.03		$	1.04				$	0.17
Diluted	$	0.03		$	1.01				$	0.17
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		867,298,537			883,884,676					884,108,545
Diluted		883,227,967			907,767,796					905,544,750


	Year Ended December 31,						YOY% Change
(in millions, except share, per share, and percentage data)		2023			2024		YOY% Change
Revenues:
Transaction-based revenues	$	785		$	1,647		110	%
Net interest revenues		929			1,109		19	%
Other revenues		151			195		29	%
Total net revenues		1,865			2,951		58	%

Operating expenses⁽¹⁾⁽²⁾:
Brokerage and transaction		146			164		12	%
Technology and development		805			818		2	%
Operations		116			112		(3)%
Provision for credit losses		43			76		77	%
Marketing		122			272		123	%
General and administrative		1,169			455		(61)%
Total operating expenses		2,401			1,897		(21)%

Other income, net		3			10		233	%
Income (loss) before income taxes		(533	)		1,064		NM
Provision for (benefit from) income taxes		8			(347	)	NM
Net income (loss)		(541	)		1,411		NM
Net income (loss) attributable to common stockholders:
Basic	$	(541	)	$	1,411
Diluted	$	(541	)	$	1,411
Net income (loss) per share attributable to common stockholders:
Basic	$	(0.61	)	$	1.60
Diluted	$	(0.61	)	$	1.56
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic		890,857,659			881,113,156
Diluted		890,857,659			906,171,504

________________
⁽¹⁾ The following table presents operating expenses as a percent of total net revenues:

	Three Months Ended December 31,				Three Months Ended September 30,		Year Ended December 31,
	2023		2024		2024		2023		2024
Brokerage and transaction	7	%	5	%	6	%	8	%	5	%
Technology and development	42	%	20	%	32	%	43	%	28	%
Operations	6	%	3	%	4	%	6	%	4	%
Provision for credit losses	2	%	2	%	4	%	3	%	3	%
Marketing	9	%	8	%	9	%	7	%	9	%
General and administrative	28	%	7	%	21	%	63	%	15	%
Total operating expenses	94	%	45	%	76	%	130	%	64	%

⁽²⁾ The following table presents the SBC on our unaudited condensed consolidated statements of operations for the periods indicated:

	Three Months Ended December 31,						Three Months Ended September 30,		Year Ended December 31,
(in millions)		2023		2024				2024		2023		2024
Brokerage and transaction	$	1	$	2			$	2	$	7		9
Technology and development		50		48				48		211		192
Operations		2		2				1		8		7
Marketing		2		2				3		5		8
General and administrative		26		23				25		640		88
Total SBC	$	81	$	77	$	—	$	79	$	871	$	304


ROBINHOOD MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
(in millions)		2023			2024			2023			2024
Operating activities:
Net income (loss)	$	30		$	916		$	(541	)	$	1,411
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		17			22			71			77
Impairment of long-lived assets		4			—			5			2
Provision for credit losses		14			19			43			76
Deferred income taxes		—			(369	)		—			(369	)
Share-based compensation		81			77			871			304
Other		1			—			3			(2	)
Changes in operating assets and liabilities:
Securities segregated under federal and other regulations		—			(397	)		—			(397	)
Receivables from brokers, dealers, and clearing organizations		(26	)		(332	)		(13	)		(382	)
Receivables from users, net		204			(2,621	)		(298	)		(4,592	)
Securities borrowed		(398	)		468			(1,085	)		(1,634	)
Deposits with clearing organizations		(63	)		(25	)		(152	)		(151	)
Current and non-current prepaid expenses		11			16			37			(25	)
Current and non-current deferred customer match incentives		(20	)		(63	)		(30	)		(265	)
Other current and non-current assets		(19	)		(404	)		(18	)		(415	)
Accounts payable and accrued expenses		(11	)		(63	)		134			(35	)
Payables to users		772			1,184			396			2,351
Securities loaned		302			157			1,713			3,916
Other current and non-current liabilities		61			15			45			(27	)
Net cash provided by (used in) operating activities		960			(1,400	)		1,181			(157	)
Investing activities:
Purchases of property, software, and equipment		(1	)		(4	)		(2	)		(13	)
Capitalization of internally developed software		(5	)		(11	)		(19	)		(37	)
Business acquisition, net of cash and cash equivalents acquired		(3	)		—			(93	)		(6	)
Asset acquisition, net of cash acquired		—			—			—			(3	)
Purchases of held-to-maturity investments		(108	)		(87	)		(759	)		(556	)
Proceeds from maturities of held-to-maturity investments		115			219			282			658
Purchases of credit card receivables by Credit Card Funding Trust		—			(509	)		—			(748	)
Collections of purchased credit card receivables		—			426			—			556
Proceeds from sales and maturities of available-for-sale investments		—			—			10			—
Other		(1	)		—			(1	)		1
Net cash provided by (used in) investing activities		(3	)		34			(582	)		(148	)
Financing activities:
Proceeds from exercise of stock options, net of repurchases		3			8			5			18
Proceeds from issuance of common stock under the Employee Share Purchase Plan		5			6			14			16
Taxes paid related to net share settlement of equity awards		(3	)		(89	)		(12	)		(244	)
Repurchase of Class A common stock		—			(160	)		(608	)		(257	)
Draws on credit facilities		—			10			20			22
Repayments on credit facilities		—			(10	)		(20	)		(22	)
Borrowings by the Credit Card Funding Trust		—			37			—			132
Repayments on borrowings by the Credit Card Funding Trust		—			—			—			(1	)
Change in principal collected from customers due to Coastal Bank		4			21			1			6
Payments of debt issuance costs		—			(1	)		(10	)		(15	)
Net cash provided by (used in) financing activities		9			(178	)		(610	)		(345	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			(2	)		—			(1	)
Net increase (decrease) in cash, cash equivalents, segregated cash, and restricted cash		966			(1,546	)		(11	)		(651	)
Cash, cash equivalents, segregated cash, and restricted cash, beginning of the period		8,380			10,241			9,357			9,346
Cash, cash equivalents, segregated cash, and restricted cash, end of the period	$	9,346		$	8,695		$	9,346		$	8,695

Reconciliation of cash, cash equivalents, segregated cash and restricted cash, end of the period:
Cash and cash equivalents, end of the period	$	4,835		$	4,332		$	4,835		$	4,332
Segregated cash and cash equivalents, end of the period		4,448			4,327			4,448			4,327
Restricted cash in other current assets, end of the period		46			18			46			18
Restricted cash in other non-current assets, end of the period		17			18			17			18
Cash, cash equivalents, segregated cash and restricted cash, end of the period	$	9,346		$	8,695		$	9,346		$	8,695
Supplemental disclosures:
Cash paid for interest	$	4		$	4		$	12		$	16
Cash paid for income taxes, net of refund received	$	—		$	4		$	9		$	18


Reconciliation of GAAP to Non-GAAP Results (Unaudited)

	Three Months Ended December 31,						Three Months Ended September 30,			Year Ended December 31,
(in millions)		2023			2024			2024			2023			2024
Net income (loss)	$	30		$	916		$	150		$	(541	)	$	1,411
Net margin		6	%		90	%		24	%	(29)%				48	%
Add:
Interest expenses related to credit facilities		6			6			6			23			24
Provision for (benefit from) income taxes		(1	)		(358	)		3			8			(347	)
Depreciation and amortization		17			22			20			71			77
EBITDA (non-GAAP)		52			586			179			(439	)		1,165
Add: SBC
SBC Excluding 2021 Founders Award Cancellation		81			77			79			386			304
2021 Founders Award Cancellation		—			—			—			485			—
Significant legal and tax settlements and reserves⁽¹⁾		—			(50	)		10			104			(40	)
Adjusted EBITDA (non-GAAP)	$	133		$	613		$	268		$	536		$	1,429
Adjusted EBITDA margin (non-GAAP)		28	%		60	%		42	%		29	%		48	%

	Three Months Ended December 31,					Three Months Ended September 30,		Year Ended December 31,
(in millions)		2023		2024			2024		2023		2024
Total operating expenses (GAAP)	$	445	$	458		$	486	$	2,401	$	1,897
Less: SBC
SBC Excluding 2021 Founders Award Cancellation		81		77			79		386		304
2021 Founders Award Cancellation		—		—			—		485		—
Significant legal and tax settlements and reserves⁽¹⁾		—		(50	)		10		104		(40	)
Adjusted Operating Expenses (Non-GAAP)	$	364	$	431		$	397	$	1,426	$	1,633

	Three Months Ended December 31,					Year Ended December 31,
(in millions)		2023		2024			2023		2024
Total operating expenses (GAAP)	$	445	$	458		$	2,401	$	1,897
Less: SBC
SBC Excluding 2021 Founders Award Cancellation		81		77			386		304
2021 Founders Award Cancellation		—		—			485		—
Significant legal and tax settlements and reserves⁽¹⁾		—		(50	)		104		(40	)
Adjusted Operating Expenses (Non-GAAP)		364		431			1,426		1,633
Add: SBC
SBC Excluding 2021 Founders Award Cancellation		81		77			386		304
2021 Founders Award Cancellation		—		—			485		—
Adjusted Operating Expenses and SBC (Non-GAAP)		445		508			2,297		1,937
Less: 2021 Founders Award Cancellation		—		—			485		—
Adjusted Operating Expense and SBC excluding the 2021 Founders Award Cancellation (Non-GAAP)	$	445	$	508		$	1,812	$	1,937

________________

⁽¹⁾ Amounts for the three months and year ended December 31, 2024 included a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the expected financial performance of Robinhood Markets, Inc. and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”) and our strategic and operational plans, including (among others) statements regarding that we see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood; that we’re entering 2025 with strong momentum as we remain focused on delivering another year of profitable growth; that we plan to expand into the Asia-Pacific region in 2025, with Singapore serving as our local headquarters; that we plan to continue expanding the cardholder base for the Robinhood Gold Credit Card in 2025; that the acquisitions of Bitstamp and TradePMR are each expected to close in the first half of 2025; and all statements and information under the headings “Financial Outlook”. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Reported results should not be considered an indication of future performance. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: our rapid and continuing expansion, including continuing to introduce new products and services on our platforms as well as geographic expansion; the difficulty of managing our business effectively, including the size of our workforce, and the risk of declining or negative growth; the fluctuations in our financial results and key metrics from quarter to quarter; our reliance on transaction-based revenue, including payment for order flow (“PFOF”), the risk of new regulation or bans on PFOF and similar practices, and the addition of our new fee-based model for cryptocurrency; our exposure to fluctuations in interest rates and rapidly changing interest rate environments; the difficulty of raising additional capital (to provide liquidity needs and support business growth and objectives) on reasonable terms, if at all; the need to maintain capital levels required by regulators and self-regulatory organizations; the risk that we might mishandle the cash, securities, and cryptocurrencies we hold on behalf of customers, and our exposure to liability for processing, operational, or technical errors in clearing functions; the impact of negative publicity on our brand and reputation; the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; our dependence on key employees and a skilled workforce; the difficulty of complying with an extensive, complex, and changing regulatory environment and the need to adjust our business model in response to new or modified laws and regulations; the possibility of adverse developments in pending litigation and regulatory investigations; the effects of competition; our need to innovate and acquire or invest in new products, services, technologies, and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; the risk of cybersecurity incidents, theft, data breaches, and other online attacks; the difficulty of processing customer data in compliance with privacy laws; our need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures; the risks associated with incorporating artificial intelligence technologies into some of our products and processes; the volatility of cryptocurrency prices and trading volumes; the risk that our platforms and services could be exploited to facilitate illegal payments; and the risk that substantial future sales of Class A common stock in the public market, or the perception that they may occur, could cause the price of our stock to fall. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, February 12, 2025, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect. All fourth quarter and full year 2024 financial information in this press release is preliminary, based on our estimates and subject to completion of our financial closing procedures. Final results for the full year, which will be reported in our Annual Report on Form 10-K for the year ended December 31, 2024, may vary from the information in this press release. In particular, until our financial statements are issued in our Annual Report on Form 10-K, we may be required to recognize certain subsequent events (such as in connection with contingencies or the realization of assets) which could affect our final results.

Non-GAAP Financial Measures

We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income (loss), and other results under GAAP, we utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), Adjusted EBITDA Margin, Adjusted Operating Expenses, Adjusted Operating Expenses and SBC, Adjusted Operating Expenses and SBC excluding the 2021 Founders Award Cancellation, and SBC excluding the 2021 Founders Award Cancellation. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this press release.

Adjusted EBITDA

Adjusted EBITDA is defined as net income (loss), excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) SBC, (v) significant legal and tax settlements and reserves, and (vi) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted EBITDA Margin

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net revenues. The most directly comparable GAAP measure is net margin (calculated as net income (loss) divided by total net revenues). We believe Adjusted EBITDA Margin provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Adjusted EBITDA Margin is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted Operating Expenses

Adjusted Operating Expenses is defined as GAAP total operating expenses minus (i) SBC, (ii) significant legal and tax settlements and reserves, and (iii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. We believe Adjusted Operating Expenses provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses will no longer include provision for credit losses.

Adjusted Operating Expenses and SBC

Adjusted Operating Expenses and SBC is defined as GAAP total operating expenses minus (i) significant legal and tax settlements and reserves and (ii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses), that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. Unlike Adjusted Operating Expenses, Adjusted Operating Expenses and SBC does not adjust for SBC. We believe Adjusted Operating Expense and SBC provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses and SBC is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted Operating Expenses and SBC excluding the 2021 Founders Award Cancellation

Adjusted Operating Expenses and SBC excluding the 2021 Founders Award Cancellation is defined as GAAP total operating expenses minus (i) significant legal and tax settlements and reserves, (ii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses), and (iii) the 2021 Founders Award Cancellation, that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. We believe Adjusted Operating Expense and SBC excluding the 2021 Founders Award Cancellation provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses and SBC excluding the 2021 Founders Award Cancellation is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

SBC excluding the 2021 Founders Award Cancellation

We define SBC excluding the 2021 Founders Award Cancellation as GAAP SBC minus the impact of the 2021 Founders Award Cancellation, which we do not believe is indicative of our ongoing expenses. The amount and timing of the 2021 Founders Award Cancellation are not driven by core results of operations and renders comparisons with prior periods less meaningful. We believe SBC excluding the 2021 Founders Award Cancellation provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. SBC excluding the Founders Award Cancellation is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Key Performance Metrics

In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Funded Customers

We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer.

Assets Under Custody (“AUC”)

We define AUC as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in AUC in any given period.

Net Deposits

We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Gold subscription fees, and assets transferred off of our platforms for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash or assets earned in connection with Company promotions and prior to January 2024, Net Deposits did not include inflows from dividends and interest or outflows from Robinhood Gold subscription fees and margin interest, although we have not restated amounts in prior periods as the impact to those figures was immaterial.

Average Revenue Per User (“ARPU”)

We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period. Figures in this press release represent ARPU annualized for each three-month period presented.

Gold Subscribers

We define a Gold Subscriber as a unique person who has at least one account with a Robinhood entity and who, as of the end of the relevant period (a) is subscribed to Robinhood Gold and (b) has made at least one Robinhood Gold subscription fee payment.

Additional Operating Metrics

Retirement AUC

We define Retirement AUC as the total AUC in traditional IRAs and Roth IRAs.

Cash Sweep

We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks. This is an off-balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms.

Margin Book

We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts).

Notional Trading Volume

We define Notional Trading Volume or Notional Volume for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class over a specified period of time.

Options Contracts Traded

We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.

Glossary Terms

2021 Founders Award Cancellation

We define the 2021 Founders Award Cancellation as the cancellation in February 2023 of the 2021 pre-IPO market-based restricted stock units granted to our founders of 35.5 million unvested shares.

Investment Accounts

We define an Investment Account as a funded individual brokerage account, a funded joint investing account, or a funded individual retirement account (“IRA”). As of December 31, 2024, a Funded Customer can have up to four Investment Accounts – individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, and Roth IRA.

Gold Adoption Rate

We define the Gold adoption rate as end of period Gold Subscribers divided by end of period Funded Customers.

Growth Rate and Annualized Growth Rate with respect to Net Deposits

Growth rate is calculated as aggregate Net Deposits over a specified 12 month period, divided by AUC for the fiscal quarter that immediately precedes such 12 month period. Annualized growth rate is calculated as Net Deposits for a specified quarter multiplied by 4 and divided by AUC for the immediately preceding quarter.

The MIL Network –

February 13, 2025

MIL-OSI: Uni-Fuels Awarded International Sustainability and Carbon Certifications, Reinforcing Commitment to Sustainable Marine Fuel Trading

Source: GlobeNewswire (MIL-OSI)

SINGAPORE, Feb. 12, 2025 (GLOBE NEWSWIRE) — Uni-Fuels Holdings Limited (NASDAQ: UFG), (“Uni-Fuels” or the “Company”), a global provider of marine fuel solutions headquartered in Singapore, today announced that the Company’s wholly owned subsidiary, Uni-Fuels Pte Ltd (“Uni-Fuels Singapore”), has received both ISCC EU and ISCC PLUS certifications from the International Sustainability and Carbon Certification (ISCC), a globally recognized independent multi-stakeholder initiative and leading certification system supporting sustainable, fully traceable, deforestation-free and climate-friendly supply chains. These certifications highlight the Company’s commitment to sustainability and compliance with European Union (EU) regulations aimed at reducing greenhouse gas (GHG) emissions in the maritime industry.

The ISCC certifications ensure that the biofuels traded by Uni-Fuels Singapore meet the requirements of the EU’s Renewable Energy Directive (RED II), including the provision of Proof of Sustainability (PoS). This important documentation ensures biofuels are sustainably sourced and produced, enabling full traceability from feedstock to final product.

As the maritime sector moves toward greater decarbonization, it is essential for biofuel suppliers to demonstrate compliance with regulatory standards, including the EU Emissions Trading System (EU ETS) and FuelEU Maritime. PoS documentation ensures biofuels can be counted toward emissions reduction targets, as opposed to being treated as fossil fuels.

Uni-Fuels Vice President, Operations Tan Guan Kai commented, “Achieving ISCC certifications demonstrates our commitment to supporting the global transition to cleaner fuels. With Proof of Sustainability documentation, we provide our customers with the assurance that the biofuels they rely on are responsibly produced and fully compliant with evolving regulations.”

The PoS framework, combined with the ISCC EU and ISCC PLUS certifications, ensures customers that the biofuels they use are responsibly sourced, traceable, and produced with sustainability in mind. These certifications provide both regulatory compliance and enhanced transparency, helping to build trust in the biofuel market.

About Uni-Fuels Holdings Limited

Uni-Fuels is a fast-growing global provider of marine fuel solutions, helping shipping companies optimize fuel procurement across all markets and time zones. Founded in 2021, Uni-Fuels has evolved from modest beginnings into a dynamic, forward-thinking company. Backed by a passionate team and a growing presence across multiple locations, it has forged trusted partnerships with customers, supporting them in achieving their operational objectives with confidence, from shore to shore.

For more information, visit www.uni-fuels.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the completion and timing of closing of the offering and the intended use of the proceeds. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Uni-Fuels’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Contact Information

For Investor Relations:

Uni-Fuels Holdings Ltd
Email: investors@uni-fuels.com

Skyline Corporate Communications Group, LLC
Email: info@skylineccg.com

The MIL Network –

February 13, 2025

MIL-OSI: Gilat Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Q4 Revenue of $78.1 million, GAAP Operating Income of $12.8 million and Adjusted EBITDA of $12.1 million

2024 Revenue of $305.4 million, GAAP Operating Income of $27.7 million and a 25-year Record Adjusted EBITDA of $42.2 million

Expects 2025 Revenues to increase by 36%-50%

Announces New Reporting Segments

PETAH TIKVA, Israel, Feb. 12, 2025 (GLOBE NEWSWIRE) — Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its unaudited results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Revenue of $78.1 million, up 3% compared with $75.6 million in Q4 2023;
GAAP operating income of $12.8 million, compared with $2.9 million in Q4 2023;
Non-GAAP operating income of $9.7 million, compared with $6.1 million in Q4 2023;
GAAP net income of $11.8 million, or $0.21 per diluted share, compared with $3.4 million, or $0.06 per diluted share, in Q4 2023;
Non-GAAP net income of $8.5 million, or $0.15 per diluted share, compared with $6.5 million, or $0.11 per diluted share, in Q4 2023;
Adjusted EBITDA of $12.1 million, up 30% compared with $9.4 million in Q4 2023.

Full year 2024 Financial Highlights

Revenue of $305.4 million, up 15% compared with $266.1 million in 2023;
GAAP operating income of $27.7 million, compared with $28.1 million in 2023;
Non-GAAP operating income of $31.9 million, up 35% compared with $23.5 million in 2023;
GAAP net income of $24.8 million, or $0.44 per diluted share, compared with $23.5 million, or $0.41 per diluted share in 2023;
Non-GAAP net income of $28.2 million, or $0.49 per diluted share, compared with $19.9 million, or $0.35 per diluted share 2023;
Adjusted EBITDA was $42.2 million, up 16% compared with adjusted EBITDA of $36.4 million in 2023.

2025 Guidance

Management’s financial guidance for 2025 is for revenues of between $415 to $455 million, and Adjusted EBITDA is expected to be between $47 to $53 million¹.

Adi Sfadia, Gilat’s CEO, commented, “Gilat delivered strong results with profitability of Adjusted EBITDA of $12.1 million for the fourth quarter and $42.2 million for the entire year. These results alongside our strong generation of cash flow underscore the strength and resilience of our core business model, demonstrating both operating leverage and the positive impact of our current product revenue mix.”

“During the fourth quarter our Defense and In-Flight Connectivity business continued to experience strong momentum with increased orders and awards. The Defense segment, with a focus on the US DoD, represents a significant growth opportunity for Gilat. We are pleased with our progress in expanding opportunities to serve the specialized needs of government and military customers with our innovative satellite solutions,” Mr. Sfadia continued. “With the closing of the Stellar Blu acquisition, our Commercial business is poised for significant growth as we establish our leadership in the expanding Electronically Steerable Antenna (ESA) market. Our portfolio of IFC GEO, LEO and multi-orbit solutions will be instrumental in capitalizing on increasing demand for inflight connectivity by airlines and passengers.”

Mr. Sfadia concluded, “Looking ahead into 2025, given the significant potential we see in the defense market and our view of this as a strategic growth engine, we plan to increase our investment in R&D, Sales and Marketing of the Defense Segment. We believe that this targeted increase will allow us to take advantage of the opportunities we see quicker and more decisively to ensure a long term growth in this market. Coupled with our recent acquisitions and positioning in the Satcom market, Gilat has the resource base to scale the IFC and Defense businesses and our track record of profitable, cash generating growth, provides a strong foundation for Gilat’s continued success.”

Commencing January 1, 2025, the company has implemented a new organizational structure and reportable segments. The new organizational structure and segment reporting are designed to better target the diverse and attractive end markets the company serves and to provide investors with greater insight into Gilat’s business lines and strategic growth opportunities. The company will report financial results based on the following three divisions: Gilat Defense, Gilat Commercial and Gilat Peru.

Gilat Defense Division: provides secure, rapid-deployment solutions for military organizations, government agencies, and defense integrators, with a strong focus on the U.S. Department of Defense resulting from our strategic acquisition of DataPath Inc. By integrating technologies from Gilat, Gilat DataPath, and Gilat Wavestream, the division delivers resilient battlefield connectivity with multiple layers of communication redundancy for high availability.
Gilat Commercial Division: provides advanced broadband satellite communication networks for IFC, Enterprise and Cellular Backhaul, supporting HTS, VHTS, and NGSO constellations with turnkey solutions for service providers, satellite operators, and enterprises. Our acquisition of Stellar Blu serves as the cornerstone of this division, strengthening our position in the IFC market and enabling us to provide cutting-edge connectivity solutions that meet the demands of passengers, airlines, and service providers worldwide.

Gilat Peru Division: specializes in end-to-end telco solutions, including the operation and implementation of large-scale network projects. With expertise in terrestrial fiber optic, wireless, and satellite networks, Gilat Peru provides technology integration, managed networks and services, connectivity solutions, and reliable internet and voice access across the region.

Gilat has prepared unaudited illustrations of the company’s financial reports for Fiscal Years 2023 and 2024 to reflect the company’s results based on the new segment reporting, which can be found in the IR section on Gilat’s website. For additional information about Gilat’s new divisional structure, please click here: Link

Key Recent Announcements

Gilat Secures Over $18 Million Orders Addressing Demand for In-Flight Connectivity Solutions
Gilat Receives $9 Million in Orders for Multi-Orbit SkyEdge Platforms
Gilat Completes Acquisition of Stellar Blu Solutions LLC
Gilat and Hispasat Provided Immediate Satellite Communication to Support Disaster Recovery Efforts After Hurricane Helene
Gilat Receives Over $3 Million in Orders to Support LEO Constellations
Gilat Awarded Over $5 Million in orders to Support Critical Connectivity for Defense Forces
Gilat Receives $4M in Orders for Advanced Portable Terminals from Global Defense Customers

Conference Call Details

Gilat’s Management will discuss its fourth quarter and full year 2024 results and business achievements and participate in a question-and-answer session:

Date:	Wednesday, February 12, 2025
Start:	09:30 AM EST / 16:30 IST
Dial-in:	US: 1-888-407-2553
	International: +972-3-918-0609

A simultaneous webcast of the conference call will be available on the Gilat website at gilat.com and through this link: https://veidan.activetrail.biz/gilatq4-2024

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

Non-GAAP Measures

The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation expenses, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and income tax effect on the relevant adjustments.

Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company’s net income and adjusted EBITDA is presented in the attached summary financial statements.

Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Together with our wholly-owned subsidiaries—Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu—we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a cloud-based platform and modems; high-performance satellite terminals; advanced Satellite On-the-Move (SOTM) antennas and ESAs; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.

Gilat’s products and tailored solutions support multiple applications including government and defense, IFC and mobility, broadband access, cellular backhaul, enterprise, aerospace, broadcast, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: http://www.gilat.com

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the terrorist attacks by Hamas, and the hostilities between Israel and Hamas and Israel and Hezbollah. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:

Gilat Satellite Networks

Hagay Katz, Chief Product and Marketing Officer
hagayk@gilat.com

Alliance Advisors:

GilatIR@allianceadvisors.com
Phone: +1 212 838 3777

^{_________________
1} We do not provide forward-looking guidance on a GAAP basis because we are unable to reasonably provide forward-looking guidance for certain financial data, such as amortization of purchased intangibles and earnout-based expenses related to recent acquisitions. As a result, we are not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort.


GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except share and per share data)

		Twelve months ended						Three months ended
		December 31,						December 31,
			2024			2023			2024			2023
		Unaudited			Audited			Unaudited

Revenues		$	305,448		$	266,090		$	78,128		$	75,612
Cost of revenues			192,117			161,145			47,107			46,692

Gross profit			113,331			104,945			31,021			28,920

Research and development expenses, net			38,136			41,173			10,108			11,624
Selling and marketing expenses			27,381			25,243			6,657			7,119
General and administrative expenses			26,868			19,215			6,192			6,312
Other operating expenses (income), net			(6,751	)		(8,771	)		(4,706	)		986

Total operating expenses			85,634			76,860			18,251			26,041

Operating income			27,697			28,085			12,770			2,879

Financial income, net			1,504			109			63			1,196

Income before taxes on income			29,201			28,194			12,833			4,075

Taxes on income			(4,352	)		(4,690	)		(1,069	)		(628	)

Net income		$	24,849		$	23,504		$	11,764		$	3,447

Earnings per share (basic and diluted)		$	0.44		$	0.41		$	0.21		$	0.06

Weighted average number of shares used in
	computing earnings per share
	Basic		57,016,920			56,668,999			57,017,032			56,820,774
	Diluted		57,016,920			56,672,537			57,017,032			56,820,774


GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)

		Three months ended							Three months ended
		December 31, 2024							December 31, 2023
		GAAP		*Adjustments ()**			Non-GAAP		GAAP		*Adjustments ()**			Non-GAAP
		Unaudited							Unaudited

Gross profit		$	31,021	$	575		$	31,596	$	28,920	$	617		$	29,537
Operating expenses			18,251		3,680			21,931		26,041		(2,615	)		23,426
Operating income			12,770		(3,105	)		9,665		2,879		3,232			6,111
Income before taxes on income			12,833		(3,105	)		9,728		4,075		3,232			7,307
Net income		$	11,764	$	(3,252	)	$	8,512	$	3,447	$	3,097		$	6,544

Basic earnings per share		$	0.21	$	(0.06	)	$	0.15	$	0.06	$	0.06		$	0.12

Diluted earnings per share		$	0.21	$	(0.06	)	$	0.15	$	0.06	$	0.05		$	0.11


Weighted average number of shares used in
computing earnings per share
Basic			57,017,032					57,017,032		56,820,774					56,820,774
Diluted			57,017,032					57,024,316		56,820,774					56,987,939

(*)	Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income (expenses), net, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Three months ended							Three months ended
		December 31, 2024							December 31, 2023
				Unaudited							Unaudited

GAAP net income				$	11,764						$	3,447

Gross profit
Stock-based compensation expenses					133							129
Amortization of purchased intangibles					389							448
Other integration expenses					53							40
					575							617
Operating expenses
Stock-based compensation expenses					653							796
Stock-based compensation expenses related to business combination					140							662
Amortization of purchased intangibles					216							162
Other operating income (expenses), net and other integration expenses					(4,689	)						995
					(3,680	)						2,615

Taxes on income					(147	)						(135	)

Non-GAAP net income				$	8,512						$	6,544


GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)

		Twelve months ended							Twelve months ended
		December 31, 2024							December 31, 2023
		GAAP		*Adjustments ()**			Non-GAAP		GAAP		*Adjustments ()**			Non-GAAP
		Unaudited							Audited		Unaudited

Gross profit		$	113,331	$	3,673		$	117,004	$	104,945	$	895		$	105,840
Operating expenses			85,634		(500	)		85,134		76,860		5,434			82,294
Operating income			27,697		4,173			31,870		28,085		(4,539	)		23,546
Income before taxes on income			29,201		4,173			33,374		28,194		(4,539	)		23,655
Net income		$	24,849	$	3,376		$	28,225	$	23,504	$	(3,597	)	$	19,907

Basic earnings per share		$	0.44	$	0.06		$	0.50	$	0.41	$	(0.06	)	$	0.35

Diluted earnings per share		$	0.44	$	0.05		$	0.49	$	0.41	$	(0.06	)	$	0.35

Weighted average number of shares used in
computing earnings per share
Basic			57,016,920					57,016,920		56,668,999					56,668,999
Diluted			57,016,920					57,041,778		56,672,537					56,784,601

(*)	Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income, net, other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Twelve months ended							Twelve months ended
		December 31, 2024							December 31, 2023
				Unaudited							Unaudited

GAAP net income				$	24,849						$	23,504

Gross profit
Stock-based compensation expenses					518							407
Amortization of purchased intangibles					2,412							448
Other non-recurring expenses					466							–
Other integration expenses					277							40
					3,673							895
Operating expenses
Stock-based compensation expenses					2,771							2,354
Stock-based compensation expenses related to business combination					3,437							662
Amortization of purchased intangibles					988							312
Other operating income, net and other integration expenses					(6,696	)						(8,762	)
					500							(5,434	)

Taxes on income					(797	)						942

Non-GAAP net income				$	28,225						$	19,907

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands

ADJUSTED EBITDA:

	Twelve months ended						Three months ended
	December 31,						December 31,
		2024			2023			2024			2023
	Unaudited						Unaudited

GAAP net income	$	24,849		$	23,504		$	11,764		$	3,447
Adjustments:
Financial income, net		(1,504	)		(109	)		(63	)		(1,196	)
Taxes on income		4,352			4,690			1,069			628
Stock-based compensation expenses		3,289			2,761			786			925
Stock-based compensation expenses related to business combination		3,437			662			140			662
Depreciation and amortization (*)		13,777			13,627			3,068			3,862
Other operating expenses (income), net		(6,751	)		(8,771	)		(4,706	)		986
Other non-recurring expenses		466			–			–			–
Other integration expenses		332			49			70			49

Adjusted EBITDA	$	42,247		$	36,413		$	12,128		$	9,363

(*) Including amortization of lease incentive

SEGMENT REVENUES:
	Twelve months ended						Three months ended
	December 31,						December 31,
		2024			2023			2024			2023
	Unaudited			Audited			Unaudited

Satellite Networks	$	198,174		$	168,527		$	49,064		$	53,517
Integrated Solutions		54,925			46,133			17,257			9,503
Network Infrastructure and Services		52,349			51,430			11,807			12,592

Total revenues	$	305,448		$	266,090		$	78,128		$	75,612

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

	December 31,			December 31,
		2024			2023
	Unaudited			Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	119,384		$	103,961
Restricted cash		853			736
Trade receivables, net		53,554			44,725
Contract assets		20,987			28,327
Inventories		38,890			38,525
Other current assets		21,963			24,299

Total current assets		255,631			240,573

LONG-TERM ASSETS:
Restricted cash		12			54
Long-term contract assets		8,146			9,283
Severance pay funds		5,966			5,737
Deferred taxes		11,896			11,484
Operating lease right-of-use assets		6,556			5,105
Other long-term assets		5,288			9,544

Total long-term assets		37,864			41,207

PROPERTY AND EQUIPMENT, NET		70,834			74,315

INTANGIBLE ASSETS, NET		12,925			16,051

GOODWILL		52,494			54,740

TOTAL ASSETS	$	429,748		$	426,886

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands (except share data)

	December 31,			December 31,
		2024			2023
	Unaudited			Audited

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Short-term debt	$	–		$	7,453
Trade payables		17,107			13,873
Accrued expenses		45,368			51,906
Advances from customers and deferred revenues		18,587			34,495
Operating lease liabilities		2,557			2,426
Other current liabilities		17,817			16,431

Total current liabilities		101,436			126,584

LONG-TERM LIABILITIES:
Long-term loan		2,000			2,000
Accrued severance pay		6,677			6,537
Long-term advances from customers and deferred revenues		580			1,139
Operating lease liabilities		4,014			3,022
Other long-term liabilities		10,606			12,916

Total long-term liabilities		23,877			25,614

SHAREHOLDERS’ EQUITY:
Share capital – ordinary shares of NIS 0.2 par value		2,733			2,733
Additional paid-in capital		943,294			937,591
Accumulated other comprehensive loss		(6,120	)		(5,315	)
Accumulated deficit		(635,472	)		(660,321	)

Total shareholders’ equity		304,435			274,688

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	429,748		$	426,886


GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

		Twelve months ended						Three months ended
		December 31,						December 31,
			2024			2023			2024			2023
		Unaudited			Audited			Unaudited
Cash flows from operating activities:
Net income		$	24,849		$	23,504		$	11,764		$	3,447
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			13,554			13,402			3,012			3,805
Capital gain from sale of property			–			(2,084	)		–			–
Stock-based compensation *)			6,726			3,423			926			1,587
Accrued severance pay, net			(89	)		167			(72	)		12
Deferred taxes, net			1,834			2,662			298			(1,203	)
Decrease (increase) in trade receivables, net			(9,347	)		13,448			(2,328	)		9,561
Decrease (increase) in contract assets			8,519			(1,694	)		11,506			(7,804	)
Decrease (increase) in other assets and other adjustments (including
short-term, long-term and effect of exchange rate changes on cash and cash equivalents)			11,661			(351	)		8,590			(3,949	)
Decrease (increase) in inventories, net			(1,928	)		(2,387	)		544			3,798
Increase (decrease) in trade payables			3,196			(7,635	)		(1,884	)		(2,314	)
Increase (decrease) in accrued expenses			(5,906	)		735			(8,581	)		3,517
Increase (decrease) in advances from customers and deferred revenues			(16,390	)		803			(4,228	)		(1,843	)
Increase (decrease) in other liabilities			(5,010	)		(12,049	)		(3,265	)		1,343
Net cash provided by operating activities			31,669			31,944			16,282			9,957

Cash flows from investing activities:
Purchase of property and equipment			(6,610	)		(10,746	)		(2,515	)		(2,090	)
Acquisitions of subsidiary, net of cash acquired			–			(4,107	)		–			(4,107	)
Receipts from sale of property			–			2,168			–			–
Net cash used in investing activities			(6,610	)		(12,685	)		(2,515	)		(6,197	)

Cash flows from financing activities:
Repayment of credit facility, net			(7,453	)		(1,590	)		–			(1,590	)
Repayments of short-term debts			(7,836	)		–			(3,793	)		–
Proceeds from short-term debts			7,836			–			1,066			–
Costs associated with entering into a long-term debt			(654	)		–			(654	)		–
Net cash used in financing activities			(8,107	)		(1,590	)		(3,381	)		(1,590	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash			(1,454	)		(63	)		(896	)		2,288

Increase in cash, cash equivalents and restricted cash			15,498			17,606			9,490			4,458

Cash, cash equivalents and restricted cash at the beginning of the period			104,751			87,145			110,759			100,293

Cash, cash equivalents and restricted cash at the end of the period		$	120,249		$	104,751		$	120,249		$	104,751

*)	Stock-based compensation including expenses related to business combination in the amounts of $3,437 and $662 for the twelve months ended December 31, 2024 and 2023, respectively.
	Stock-based compensation including expenses related to business combination in the amounts of $140 and $662 for the three months ended December 31, 2024 and 2023, respectively.

The MIL Network –

February 13, 2025

MIL-OSI Europe: Minutes – Tuesday, 11 February 2025 – Strasbourg – Final edition

Source: European Parliament 2

PV-10-2025-02-11

EN

iPlPv_Sit

Minutes
Tuesday, 11 February 2025 – Strasbourg

IN THE CHAIR: Christel SCHALDEMOSE
Vice-President

1. Opening of the sitting

The sitting opened at 09:00.

2. Preparedness for a new trade era: multilateral cooperation or tariffs (debate)

Council and Commission statements: Preparedness for a new trade era: multilateral cooperation or tariffs (2025/2551(RSP))

Adam Szłapka (President-in-Office of the Council) and Maroš Šefčovič (Member of the Commission) made the statements.

The following spoke: Jörgen Warborn, on behalf of the PPE Group, Iratxe García Pérez, on behalf of the S&D Group, Klara Dostalova, on behalf of the PfE Group, Daniele Polato, on behalf of the ECR Group, Karin Karlsbro, on behalf of the Renew Group, Anna Cavazzini, on behalf of the Verts/ALE Group, Manon Aubry, on behalf of The Left Group, René Aust, on behalf of the ESN Group, Michał Szczerba, Kathleen Van Brempt, Christophe Bay, Stephen Nikola Bartulica, Marie-Pierre Vedrenne, who also answered a blue-card question from Manon Aubry, Diana Riba i Giner, Lynn Boylan, Fabio De Masi, Juan Ignacio Zoido Álvarez, who also answered a blue-card question from Petras Gražulis, Yannis Maniatis, Anna Bryłka, Svenja Hahn, who also answered a blue-card question from Damian Boeselager, Majdouline Sbai, Rudi Kennes, Lídia Pereira, who also answered a blue-card question from João Oliveira, Bernd Lange, Jorge Buxadé Villalba, who also answered a blue-card question from Cristina Maestre, Sophie Wilmès, Virginijus Sinkevičius, Željana Zovko, Stefano Bonaccini, András László, who also answered a blue-card question from Radan Kanev, Barry Cowen, Luděk Niedermayer, who also answered a blue-card question from Maria Grapini, Raphaël Glucksmann, Ľubica Karvašová, Sebastião Bugalho, Javier Moreno Sánchez, Nicolás Pascual de la Parte, Loucas Fourlas, Dirk Gotink and Salvatore De Meo.

The following spoke under the catch-the-eye procedure: Vytenis Povilas Andriukaitis, Sebastian Tynkkynen and Billy Kelleher.

IN THE CHAIR: Roberts ZĪLE
Vice-President

The following spoke under the catch-the-eye procedure: Lukas Sieper.

The following spoke: Maria Grapini on the organisation of the debate.

The following spoke: Maroš Šefčovič and Adam Szłapka.

The debate closed.

3. Continuing the unwavering EU support for Ukraine, after three years of Russia’s war of aggression (debate)

Council and Commission statements: Continuing the unwavering EU support for Ukraine, after three years of Russia’s war of aggression (2025/2528(RSP))

Adam Szłapka (President-in-Office of the Council) and Marta Kos (Member of the Commission) made the statements.

The following spoke: Michael Gahler, on behalf of the PPE Group, Yannis Maniatis, on behalf of the S&D Group, Csaba Dömötör, on behalf of the PfE Group, Adam Bielan, on behalf of the ECR Group, Petras Auštrevičius, on behalf of the Renew Group, Villy Søvndal, on behalf of the Verts/ALE Group, Danilo Della Valle, on behalf of The Left Group, Petras Gražulis, on behalf of the ESN Group, Rasa Juknevičienė, Kathleen Van Brempt, Pierre-Romain Thionnet, Reinis Pozņaks, Marie-Agnes Strack-Zimmermann, who also answered a blue-card question from Alexander Sell, Mārtiņš Staķis, Jonas Sjöstedt, Petar Volgin, Ľuboš Blaha, Sandra Kalniete, Sven Mikser, Viktória Ferenc, Alberico Gambino, Hilde Vautmans, Sergey Lagodinsky, Hans Neuhoff, Fabio De Masi, Michał Szczerba, Thijs Reuten, Petra Steger, Jaak Madison, Bernard Guetta, Markéta Gregorová, Zsuzsanna Borvendég, Pekka Toveri, Pina Picierno, Michał Dworczyk, Helmut Brandstätter, Nicolás Pascual de la Parte, Raphaël Glucksmann, Sebastian Tynkkynen, Davor Ivo Stier, Marcos Ros Sempere, Arkadiusz Mularczyk, Reinhold Lopatka, who also answered a blue-card question from Alexander Jungbluth, Tonino Picula, Mika Aaltola, who also answered a blue-card question from Merja Kyllönen, Tobias Cremer, Riho Terras and Ana Miguel Pedro.

The following spoke under the catch-the-eye procedure: Hélder Sousa Silva, Juan Fernando López Aguilar, Dainius Žalimas, Siegbert Frank Droese and Ondřej Dostál.

The following spoke: Marta Kos and Adam Szłapka.

Motions for resolutions to be tabled under Rule 136(2) would be announced at a later stage.

The debate closed.

Vote: next part-session.

(The sitting was suspended for a few moments.)

IN THE CHAIR: Roberta METSOLA
President

4. Resumption of the sitting

The sitting resumed at 12:22.

5. Formal sitting – Address by Ruslan Stefanchuk, Speaker of the Verkhovna Rada

The President made an address to welcome Ruslan Stefanchuk, Speaker of the Verkhovna Rada.

Ruslan Stefanchuk addressed the House.

(The sitting was suspended for a few moments.)

6. Resumption of the sitting

The sitting resumed at 12:42.

7. Voting time

For detailed results of the votes, see also ‘Results of votes’ and ‘Results of roll-call votes’.

7.1. Conclusion of an agreement between the European Union and the government of the People’s Republic of Bangladesh on certain aspects of air services *** (vote)

Recommendation on the draft Council decision on the conclusion of the Agreement between the European Union and the People’s Republic of Bangladesh on certain aspects of air services [10844/2024 – C10-0111/2024 – 2015/0188(NLE)] – Committee on Transport and Tourism. Rapporteur: Tomas Tobé (A10-0005/2025)

(Majority of the votes cast)

DRAFT COUNCIL DECISION

Approved (P10_TA(2025)0008)

Parliament consented to the conclusion of the agreement.

(‘Results of votes’, item 1)

7.2. Conclusion, on behalf of the Union, of the Protocol (2024-2029) implementing the Fisheries Partnership Agreement between the European Community and the Republic of Cabo Verde *** (vote)

Recommendation on the draft Council decision on the conclusion, on behalf of the European Union, of the Protocol (2024-2029) implementing the Fisheries Partnership Agreement between the European Community and the Republic of Cabo Verde [11267/2024 – C10-0087/2024 – 2024/0133(NLE)] – Committee on Fisheries. Rapporteur: Paulo Do Nascimento Cabral (A10-0004/2025)

(Majority of the votes cast)

DRAFT COUNCIL DECISION

Approved (P10_TA(2025)0009)

Parliament consented to the conclusion of the agreement.

(‘Results of votes’, item 2)

7.3. Renewal of the Agreement on cooperation in science and technology between the European Community and Ukraine *** (vote)

Recommendation on the draft Council decision on the renewal of the Agreement on cooperation in science and technology between the European Community and Ukraine [14848/2024 – C10-0196/2024 – 2024/0240(NLE)] – Committee on Industry, Research and Energy. Rapporteur: Borys Budka (A10-0007/2025)

(Majority of the votes cast)

DRAFT COUNCIL DECISION

Approved (P10_TA(2025)0010)

Parliament consented to the renewal of the agreement.

(‘Results of votes’, item 3)

7.4. European Central Bank – annual report 2024 (vote)

Report on European Central Bank – annual report 2024 [2024/2054(INI)] – Committee on Economic and Monetary Affairs. Rapporteur: Anouk Van Brug (A10-0003/2025)

The debate had taken place on 10 February 2025 (minutes of 10.2.2025, item 13).

(Majority of the votes cast)

MOTION FOR A RESOLUTION

Adopted (P10_TA(2025)0011)

(‘Results of votes’, item 4)

(The sitting was suspended at 12:53.)

IN THE CHAIR: Javi LÓPEZ
Vice-President

8. Resumption of the sitting

The sitting resumed at 12:58.

9. Approval of the minutes of the previous sitting

The minutes of the previous sitting were approved.

10. The need to address urgent labour shortages and ensure quality jobs in the health care sector (debate)

Commission statement: The need to address urgent labour shortages and ensure quality jobs in the health care sector (2025/2529(RSP))

Roxana Mînzatu (Executive Vice-President of the Commission) made the statement.

The following spoke: Dennis Radtke, on behalf of the PPE Group, Gabriele Bischoff, on behalf of the S&D Group, Gerald Hauser, on behalf of the PfE Group, Ruggero Razza, on behalf of the ECR Group, Vlad Vasile-Voiculescu, on behalf of the Renew Group, Maria Ohisalo, on behalf of the Verts/ALE Group, Leila Chaibi, on behalf of The Left Group, Tomislav Sokol, Estelle Ceulemans, Marie-Luce Brasier-Clain, Aurelijus Veryga, Brigitte van den Berg, Tilly Metz, Catarina Martins, Jan-Peter Warnke, Liesbet Sommen, Vytenis Povilas Andriukaitis, Pál Szekeres, Adrian-George Axinia, Olivier Chastel, Pernando Barrena Arza, Maria Zacharia, András Tivadar Kulja, Marianne Vind, Margarita de la Pisa Carrión, Michele Picaro, Kathleen Funchion, Adam Jarubas, Nicolás González Casares, Marie Dauchy, Beatrice Timgren, Elena Nevado del Campo, Johan Danielsson, Valérie Deloge, Mariateresa Vivaldini, Romana Tomc, who also answered a blue-card question from João Oliveira, and Alessandra Moretti.

IN THE CHAIR: Roberts ZĪLE
Vice-President

The following spoke: Philippe Olivier, Claudiu-Richard Târziu, Marit Maij, Malika Sorel, Francesco Ventola, Victor Negrescu and Evelyn Regner.

The following spoke under the catch-the-eye procedure: Sérgio Humberto, Maria Grapini, Oihane Agirregoitia Martínez, Ana Miranda Paz, João Oliveira, Lefteris Nikolaou-Alavanos, Dennis Radtke, Idoia Mendia and Rudi Kennes.

The following spoke: Roxana Mînzatu.

The debate closed.

11. Boosting vocational education and training in times of labour market transitions (debate)

Council and Commission statements: Boosting vocational education and training in times of labour market transitions (2025/2530(RSP))

Adam Szłapka (President-in-Office of the Council) and Roxana Mînzatu (Executive Vice-President of the Commission) made the statements.

The following spoke: Dennis Radtke, on behalf of the PPE Group, Romana Jerković, on behalf of the S&D Group, Catherine Griset, on behalf of the PfE Group, Chiara Gemma, on behalf of the ECR Group, Brigitte van den Berg, on behalf of the Renew Group, Li Andersson, on behalf of The Left Group, Marcin Sypniewski, on behalf of the ESN Group, Maravillas Abadía Jover, Hannes Heide and Pál Szekeres.

IN THE CHAIR: Pina PICIERNO
Vice-President

The following spoke: Georgiana Teodorescu, Laurence Farreng, Nikos Pappas, Fidias Panayiotou, Gheorghe Falcă, Idoia Mendia, Elisabeth Dieringer, Marlena Maląg, Anna-Maja Henriksson, Andrzej Buła, Marc Angel, Mélanie Disdier, Ivaylo Valchev, Sérgio Humberto, who also answered a blue-card question from João Oliveira, Sabrina Repp, Annamária Vicsek, Elena Donazzan, Eleonora Meleti, Isilda Gomes, Juan Carlos Girauta Vidal, Vilija Blinkevičiūtė and Marie Dauchy.

The following spoke under the catch-the-eye procedure: Nina Carberry, Nikolina Brnjac, Marcos Ros Sempere, Alicia Homs Ginel, Kateřina Konečná and Lukas Sieper.

The following spoke: Glenn Micallef (Member of the Commission) and Adam Szłapka.

The debate closed.

12. Wider comprehensive EU-Middle East strategy (debate)

Council and Commission statements: Wider comprehensive EU-Middle East strategy (2024/3015(RSP))

Adam Szłapka (President-in-Office of the Council) and Dubravka Šuica (Member of the Commission) made the statements.

The following spoke: David McAllister, on behalf of the PPE Group, Yannis Maniatis, on behalf of the S&D Group, Jorge Martín Frías, on behalf of the PfE Group, Ana Miranda Paz, on certain remarks made by the previous speaker, Rihards Kols, on behalf of the ECR Group, Hilde Vautmans, on behalf of the Renew Group, Hannah Neumann, on behalf of the Verts/ALE Group, Lynn Boylan, on behalf of The Left Group, Petras Gražulis, on behalf of the ESN Group, Antonio López-Istúriz White, Hana Jalloul Muro, António Tânger Corrêa, Joachim Stanisław Brudziński, Urmas Paet, Villy Søvndal, João Oliveira, who also answered a blue-card question from Ana Miranda Paz, Alexander Sell, Nikolaos Anadiotis, Hildegard Bentele, Francisco Assis, György Hölvényi, Marion Maréchal, Irena Joveva and Martin Schirdewan.

IN THE CHAIR: Nicolae ŞTEFĂNUȚĂ
Vice-President

The following spoke: Ruth Firmenich, Ingeborg Ter Laak, Lucia Annunziata, Cristian Terheş, Abir Al-Sahlani, Elena Yoncheva, Andrey Kovatchev, Evin Incir, Emmanouil Fragkos, Billy Kelleher, Alice Teodorescu Måwe, Davor Ivo Stier, Michał Szczerba, Wouter Beke, Nicolás Pascual de la Parte and Reinhold Lopatka.

The following spoke under the catch-the-eye procedure: Vytenis Povilas Andriukaitis, Sebastian Tynkkynen, Ana Miranda Paz, Marc Botenga and Diana Iovanovici Şoşoacă.

The following spoke: Dubravka Šuica and Adam Szłapka.

The debate closed.

13. Escalation of violence in the eastern Democratic Republic of the Congo (debate)

Council and Commission statements: Escalation of violence in the eastern Democratic Republic of the Congo (2025/2553(RSP))

Adam Szłapka (President-in-Office of the Council) and Dubravka Šuica (Member of the Commission) made the statements.

The following spoke: Ingeborg Ter Laak, on behalf of the PPE Group, Marit Maij, on behalf of the S&D Group, Thierry Mariani, on behalf of the PfE Group, Alberico Gambino, on behalf of the ECR Group, Hilde Vautmans, on behalf of the Renew Group, Sara Matthieu, on behalf of the Verts/ALE Group, Marc Botenga, on behalf of The Left Group, Petras Gražulis, on behalf of the ESN Group, Wouter Beke, Francisco Assis, György Hölvényi, Charles Goerens, Majdouline Sbai, Marcin Sypniewski, Lukas Mandl, Laura Ballarín Cereza, Jan-Christoph Oetjen, Saskia Bricmont, Hildegard Bentele, Murielle Laurent, Yvan Verougstraete, Giorgio Gori and Udo Bullmann, who also declined to take a blue-card question from Lukas Sieper.

The following spoke under the catch-the-eye procedure: Juan Fernando López Aguilar.

The following spoke: Dubravka Šuica and Adam Szłapka.

The following spoke: Hilde Vautmans, again on the subject of the debate.

Motions for resolutions tabled under Rule 136(2) to wind up the debate: minutes of 13.2.2025, item I.

The debate closed.

Vote: 13 February 2025.

14. Welcome

On behalf of Parliament, the President welcomed a delegation from the National Assembly of the Republic of Serbia, who had taken a seat in the distinguished visitors’ gallery.

15. Political crisis in Serbia (debate)

Council and Commission statements: Political crisis in Serbia (2025/2554(RSP))

Adam Szłapka (President-in-Office of the Council) made the statement on behalf of the Council.

IN THE CHAIR: Katarina BARLEY
Vice-President

Marta Kos (Member of the Commission) made the statement on behalf of the Commission.

The following spoke: Davor Ivo Stier, on behalf of the PPE Group, Tonino Picula, on behalf of the S&D Group, Annamária Vicsek, on behalf of the PfE Group, Alessandro Ciriani, on behalf of the ECR Group, Helmut Brandstätter, on behalf of the Renew Group, Vladimir Prebilič, on behalf of the Verts/ALE Group, Konstantinos Arvanitis, on behalf of The Left Group, Petr Bystron, on behalf of the ESN Group, Loucas Fourlas, Alessandra Moretti, Thierry Mariani, Şerban Dimitrie Sturdza, Eugen Tomac, Gordan Bosanac, Kostas Papadakis, Reinhold Lopatka, Thijs Reuten, Ilhan Kyuchyuk, Rasmus Nordqvist, Zoltán Tarr, Matjaž Nemec, Irena Joveva (The President explained how the interpreting system worked), Matej Tonin, Andreas Schieder, Dan Barna and Tomislav Sokol.

The following spoke under the catch-the-eye procedure: Seán Kelly, Nikos Papandreou, Sebastian Tynkkynen, Lukas Sieper and Diana Iovanovici Şoşoacă.

The following spoke: Marta Kos and Adam Szłapka.

The debate closed.

16. US AI chip export restrictions: a challenge to European AI development and economic resilience (debate)

Question for oral answer O-000001/2025 by Borys Budka, on behalf of the ITRE Committee, to the Commission: US AI chip export restrictions: a challenge to European AI development and economic resilience (B10-0002/2025) (2025/2539(RSP))

Borys Budka moved the question.

Henna Virkkunen (Executive Vice-President of the Commission) answered the question.

The following spoke: Wouter Beke, on behalf of the PPE Group, Matthias Ecke, on behalf of the S&D Group, Kris Van Dijck, on behalf of the ECR Group, Bart Groothuis, on behalf of the Renew Group, András László, on behalf of the PfE Group, Virginijus Sinkevičius, on behalf of the Verts/ALE Group, Dario Tamburrano, on behalf of The Left Group, Eszter Lakos, who also answered a blue-card question from András László, Lina Gálvez and Barbara Bonte.

IN THE CHAIR: Ewa KOPACZ
Vice-President

The following spoke: Francesco Torselli, Michał Kobosko, Alexandra Geese, Aura Salla, Maria Grapini, Paulius Saudargas, Elisabeth Grossmann, Mirosława Nykiel, Brando Benifei, Paulo Cunha and Oliver Schenk.

The following spoke under the catch-the-eye procedure: Kamila Gasiuk-Pihowicz, Marc Botenga, Kateřina Konečná, Seán Kelly and Lukas Sieper.

The following spoke: Henna Virkkunen.

The debate closed.

17. Protecting the system of international justice and its institutions, in particular the International Criminal Court and the International Court of Justice (debate)

Council and Commission statements: Protecting the system of international justice and its institutions, in particular the International Criminal Court and the International Court of Justice (2025/2555(RSP))

Adam Szłapka (President-in-Office of the Council) and Michael McGrath (Member of the Commission) made the statements.

The following spoke: Alice Teodorescu Måwe, on behalf of the PPE Group, Francisco Assis, on behalf of the S&D Group, András László, on behalf of the PfE Group, Małgorzata Gosiewska, on behalf of the ECR Group, Raquel García Hermida-Van Der Walle, on behalf of the Renew Group, Mounir Satouri, on behalf of the Verts/ALE Group, Mimmo Lucano, on behalf of The Left Group, Hana Jalloul Muro, Alessandro Ciriani, who also answered a blue-card question from Raquel García Hermida-Van Der Walle, Catarina Vieira, Gaetano Pedulla’, Brando Benifei, Jaume Asens Llodrà, who also answered a blue-card question from João Oliveira, Rima Hassan (the President reminded the speaker of the rules on conduct), Chloé Ridel, Benedetta Scuderi, Alessandro Zan and Ana Miranda Paz.

The following spoke under the catch-the-eye procedure: Juan Fernando López Aguilar, Billy Kelleher, Tineke Strik, João Oliveira, Lukas Sieper and Vytenis Povilas Andriukaitis.

The following spoke: Michael McGrath and Adam Szłapka.

The following spoke: Raquel García Hermida-Van Der Walle, concerning the last intervention by the Council (the President gave explanations).

The debate closed.

18. Explanations of vote

Written explanations of vote

Explanations of vote submitted in writing under Rule 201 appear on the Members’ pages on Parliament’s website.

19. Agenda of the next sitting

The next sitting would be held the following day, 12 February 2025, starting at 09:00. The agenda was available on Parliament’s website.

20. Approval of the minutes of the sitting

In accordance with Rule 208(3), the minutes of the sitting would be put to the House for approval at the beginning of the afternoon of the next sitting.

21. Closure of the sitting

The sitting closed at 20:52.

ATTENDANCE REGISTER

Present:

Aaltola Mika, Abadía Jover Maravillas, Adamowicz Magdalena, Aftias Georgios, Agirregoitia Martínez Oihane, Agius Peter, Agius Saliba Alex, Alexandraki Galato, Allione Grégory, Al-Sahlani Abir, Anadiotis Nikolaos, Anderson Christine, Andersson Li, Andresen Rasmus, Andriukaitis Vytenis Povilas, Androuët Mathilde, Angel Marc, Annemans Gerolf, Annunziata Lucia, Antoci Giuseppe, Arias Echeverría Pablo, Arimont Pascal, Arłukowicz Bartosz, Arnaoutoglou Sakis, Arndt Anja, Arvanitis Konstantinos, Asens Llodrà Jaume, Assis Francisco, Attard Daniel, Aubry Manon, Auštrevičius Petras, Axinia Adrian-George, Azmani Malik, Bajada Thomas, Baljeu Jeannette, Ballarín Cereza Laura, Bardella Jordan, Barley Katarina, Barna Dan, Barrena Arza Pernando, Bartulica Stephen Nikola, Bartůšek Nikola, Bay Nicolas, Bay Christophe, Beke Wouter, Beleris Fredis, Bellamy François-Xavier, Benea Adrian-Dragoş, Benifei Brando, Benjumea Benjumea Isabel, Beňová Monika, Bentele Hildegard, Berendsen Tom, Berger Stefan, Berg Sibylle, Berlato Sergio, Bernhuber Alexander, Biedroń Robert, Bielan Adam, Bischoff Gabriele, Blaha Ľuboš, Blinkevičiūtė Vilija, Blom Rachel, Bloss Michael, Bocheński Tobiasz, Bogdan Ioan-Rareş, Bonaccini Stefano, Bonte Barbara, Borchia Paolo, Borrás Pabón Mireia, Borvendég Zsuzsanna, Borzan Biljana, Bosanac Gordan, Bosse Stine, Botenga Marc, Boyer Gilles, Boylan Lynn, Brandstätter Helmut, Brasier-Clain Marie-Luce, Braun Grzegorz, Brejza Krzysztof, Bricmont Saskia, Brnjac Nikolina, Brudziński Joachim Stanisław, Bryłka Anna, Buchheit Markus, Buczek Tomasz, Buda Daniel, Buda Waldemar, Budka Borys, Bugalho Sebastião, Buła Andrzej, Bullmann Udo, Burkhardt Delara, Buxadé Villalba Jorge, Bystron Petr, Bžoch Jaroslav, Camara Mélissa, Canfin Pascal, Carberry Nina, Cârciu Gheorghe, Carême Damien, Casa David, Caspary Daniel, Cassart Benoit, Castillo Laurent, del Castillo Vera Pilar, Cavazzini Anna, Cavedagna Stefano, Ceccardi Susanna, Ceulemans Estelle, Chahim Mohammed, Chaibi Leila, Chastel Olivier, Chinnici Caterina, Cifrová Ostrihoňová Veronika, Ciriani Alessandro, Cisint Anna Maria, Clausen Per, Cormand David, Corrado Annalisa, Costanzo Vivien, Cotrim De Figueiredo João, Cowen Barry, Cremer Tobias, Crespo Díaz Carmen, Cristea Andi, Crosetto Giovanni, Cunha Paulo, Dahl Henrik, Danielsson Johan, Dauchy Marie, Dávid Dóra, David Ivan, Decaro Antonio, de la Hoz Quintano Raúl, Della Valle Danilo, Deloge Valérie, De Masi Fabio, De Meo Salvatore, Deutsch Tamás, Dibrani Adnan, Diepeveen Ton, Dieringer Elisabeth, Dîncu Vasile, Disdier Mélanie, Dobrev Klára, Doherty Regina, Doleschal Christian, Dömötör Csaba, Do Nascimento Cabral Paulo, Donazzan Elena, Dorfmann Herbert, Dostalova Klara, Dostál Ondřej, Droese Siegbert Frank, Düpont Lena, Dworczyk Michał, Ecke Matthias, Ehler Christian, Ehlers Marieke, Eriksson Sofie, Erixon Dick, Eroglu Engin, Estaràs Ferragut Rosa, Ezcurra Almansa Alma, Falcă Gheorghe, Farantouris Nikolas, Farreng Laurence, Farský Jan, Ferber Markus, Ferenc Viktória, Fernández Jonás, Fidanza Carlo, Firea Gabriela, Firmenich Ruth, Fita Claire, Flanagan Luke Ming, Fourlas Loucas, Fourreau Emma, Fragkos Emmanouil, Freund Daniel, Frigout Anne-Sophie, Friis Sigrid, Fritzon Heléne, Froelich Tomasz, Funchion Kathleen, Furet Angéline, Furore Mario, Gahler Michael, Gál Kinga, Gálvez Lina, Gambino Alberico, García Hermida-Van Der Walle Raquel, Garraud Jean-Paul, Gasiuk-Pihowicz Kamila, Geadi Geadis, Geese Alexandra, Geier Jens, Geisel Thomas, Gemma Chiara, Georgiou Giorgos, Gerbrandy Gerben-Jan, Germain Jean-Marc, Gerzsenyi Gabriella, Geuking Niels, Gieseke Jens, Giménez Larraz Borja, Girauta Vidal Juan Carlos, Glavak Sunčana, Glück Andreas, Glucksmann Raphaël, Goerens Charles, Gomart Christophe, Gomes Isilda, Gómez López Sandra, Gonçalves Bruno, Gonçalves Sérgio, González Casares Nicolás, González Pons Esteban, Gori Giorgio, Gosiewska Małgorzata, Gotink Dirk, Gozi Sandro, Grapini Maria, Gražulis Petras, Gregorová Markéta, Grims Branko, Griset Catherine, Gronkiewicz-Waltz Hanna, Groothuis Bart, Grossmann Elisabeth, Grudler Christophe, Gualmini Elisabetta, Guarda Cristina, Guetta Bernard, Guzenina Maria, Hadjipantela Michalis, Hahn Svenja, Haider Roman, Halicki Andrzej, Hansen Niels Flemming, Hassan Rima, Hauser Gerald, Häusling Martin, Hava Mircea-Gheorghe, Hazekamp Anja, Heide Hannes, Heinäluoma Eero, Henriksson Anna-Maja, Herbst Niclas, Herranz García Esther, Hetman Krzysztof, Hohlmeier Monika, Hojsík Martin, Holmgren Pär, Hölvényi György, Homs Ginel Alicia, Humberto Sérgio, Ijabs Ivars, Imart Céline, Incir Evin, Inselvini Paolo, Iovanovici Şoşoacă Diana, Jalloul Muro Hana, Jamet France, Jarubas Adam, Jerković Romana, Joński Dariusz, Joron Virginie, Jouvet Pierre, Joveva Irena, Juknevičienė Rasa, Jungbluth Alexander, Kabilov Taner, Kalfon François, Kaliňák Erik, Kaljurand Marina, Kalniete Sandra, Kamiński Mariusz, Kanev Radan, Kanko Assita, Karlsbro Karin, Kartheiser Fernand, Karvašová Ľubica, Katainen Elsi, Kefalogiannis Emmanouil, Kelleher Billy, Keller Fabienne, Kelly Seán, Kemp Martine, Kennes Rudi, Kircher Sophia, Knafo Sarah, Knotek Ondřej, Kobosko Michał, Köhler Stefan, Kohut Łukasz, Kokalari Arba, Kolář Ondřej, Kollár Kinga, Kols Rihards, Konečná Kateřina, Kopacz Ewa, Körner Moritz, Kountoura Elena, Kovatchev Andrey, Krah Maximilian, Krištopans Vilis, Kruis Sebastian, Krutílek Ondřej, Kubín Tomáš, Kuhnke Alice, Kulja András Tivadar, Kulmuni Katri, Kyllönen Merja, Kyuchyuk Ilhan, Lagodinsky Sergey, Lakos Eszter, Lalucq Aurore, Lange Bernd, Langensiepen Katrin, Laššáková Judita, László András, Latinopoulou Afroditi, Laurent Murielle, Laureti Camilla, Laykova Rada, Lazarov Ilia, Lazarus Luis-Vicențiu, Le Callennec Isabelle, Leggeri Fabrice, Lenaers Jeroen, Lewandowski Janusz, Lexmann Miriam, Liese Peter, Lins Norbert, Løkkegaard Morten, Lopatka Reinhold, López Javi, López Aguilar Juan Fernando, López-Istúriz White Antonio, Lövin Isabella, Lucano Mimmo, Luena César, Lupo Giuseppe, McAllister David, Madison Jaak, Maestre Cristina, Magoni Lara, Maij Marit, Maląg Marlena, Manda Claudiu, Mandl Lukas, Maniatis Yannis, Maran Pierfrancesco, Marczułajtis-Walczak Jagna, Maréchal Marion, Mariani Thierry, Marino Ignazio Roberto, Marquardt Erik, Martín Frías Jorge, Martins Catarina, Marzà Ibáñez Vicent, Matthieu Sara, Mavrides Costas, Mayer Georg, Mazurek Milan, Mažylis Liudas, Mebarek Nora, Mehnert Alexandra, Meimarakis Vangelis, Meleti Eleonora, Mendes Ana Catarina, Mendia Idoia, Mertens Verena, Mesure Marina, Metsola Roberta, Metz Tilly, Mikser Sven, Milazzo Giuseppe, Minchev Nikola, Miranda Paz Ana, Montero Irene, Montserrat Dolors, Morace Carolina, Moreira de Sá Tiago, Moreno Sánchez Javier, Moretti Alessandra, Motreanu Dan-Ştefan, Mularczyk Arkadiusz, Müller Piotr, Mureşan Siegfried, Nagyová Jana, Nardella Dario, Navarrete Rojas Fernando, Negrescu Victor, Nemec Matjaž, Nesci Denis, Neuhoff Hans, Neumann Hannah, Nevado del Campo Elena, Nica Dan, Niebler Angelika, Niedermayer Luděk, Niinistö Ville, Nikolaou-Alavanos Lefteris, Nikolic Aleksandar, Ní Mhurchú Cynthia, Noichl Maria, Nordqvist Rasmus, Novakov Andrey, Nykiel Mirosława, Obajtek Daniel, Ódor Ľudovít, Oetjen Jan-Christoph, Ohisalo Maria, Oliveira João, Olivier Philippe, Omarjee Younous, Ó Ríordáin Aodhán, Ozdoba Jacek, Paet Urmas, Pajín Leire, Palmisano Valentina, Panayiotou Fidias, Papadakis Kostas, Papandreou Nikos, Pappas Nikos, Pascual de la Parte Nicolás, Patriciello Aldo, Paulus Jutta, Pedro Ana Miguel, Pedulla’ Gaetano, Pellerin-Carlin Thomas, Peltier Guillaume, Penkova Tsvetelina, Pennelle Gilles, Pereira Lídia, Pérez Alvise, Peter-Hansen Kira Marie, Petrov Hristo, Picaro Michele, Picierno Pina, Picula Tonino, Piera Pascale, Pimpie Pierre, Piperea Gheorghe, de la Pisa Carrión Margarita, Pokorná Jermanová Jaroslava, Polato Daniele, Polfjärd Jessica, Popescu Virgil-Daniel, Pozņaks Reinis, Prebilič Vladimir, Princi Giusi, Pürner Friedrich, Rackete Carola, Radev Emil, Radtke Dennis, Rafowicz Emma, Ratas Jüri, Razza Ruggero, Rechagneux Julie, Regner Evelyn, Repasi René, Repp Sabrina, Ressler Karlo, Reuten Thijs, Riba i Giner Diana, Ricci Matteo, Ridel Chloé, Riehl Nela, Ripa Manuela, Ros Sempere Marcos, Roth Neveďalová Katarína, Rougé André, Ruissen Bert-Jan, Ruotolo Sandro, Rzońca Bogdan, Saeidi Arash, Salini Massimiliano, Salis Ilaria, Salla Aura, Sanchez Julien, Sancho Murillo Elena, Saramo Jussi, Sardone Silvia, Šarec Marjan, Sargiacomo Eric, Satouri Mounir, Saudargas Paulius, Sbai Majdouline, Sberna Antonella, Schaldemose Christel, Schenk Oliver, Scheuring-Wielgus Joanna, Schieder Andreas, Schilling Lena, Schwab Andreas, Scuderi Benedetta, Seekatz Ralf, Sell Alexander, Serrano Sierra Rosa, Serra Sánchez Isabel, Sidl Günther, Sienkiewicz Bartłomiej, Sieper Lukas, Simon Sven, Singer Christine, Sinkevičius Virginijus, Sippel Birgit, Sjöstedt Jonas, Śmiszek Krzysztof, Smith Anthony, Smit Sander, Sokol Tomislav, Solier Diego, Solís Pérez Susana, Sommen Liesbet, Sonneborn Martin, Sorel Malika, Sousa Silva Hélder, Søvndal Villy, Staķis Mārtiņš, Stancanelli Raffaele, Ştefănuță Nicolae, Steger Petra, Stier Davor Ivo, Storm Kristoffer, Stöteler Sebastiaan, Stoyanov Stanislav, Strack-Zimmermann Marie-Agnes, Streit Joachim, Strik Tineke, Strolenberg Anna, Sturdza Şerban Dimitrie, Stürgkh Anna, Sypniewski Marcin, Szczerba Michał, Szekeres Pál, Szydło Beata, Tamburrano Dario, Tânger Corrêa António, Tarczyński Dominik, Tarquinio Marco, Tarr Zoltán, Târziu Claudiu-Richard, Tavares Carla, Tegethoff Kai, Teodorescu Georgiana, Teodorescu Måwe Alice, Terheş Cristian, Ter Laak Ingeborg, Terras Riho, Tertsch Hermann, Thionnet Pierre-Romain, Timgren Beatrice, Tinagli Irene, Tobé Tomas, Tolassy Rody, Tomac Eugen, Tomašič Zala, Tomaszewski Waldemar, Tomc Romana, Tonin Matej, Topo Raffaele, Torselli Francesco, Tosi Flavio, Toussaint Marie, Tovaglieri Isabella, Toveri Pekka, Tridico Pasquale, Trochu Laurence, Tsiodras Dimitris, Tudose Mihai, Turek Filip, Tynkkynen Sebastian, Uhrík Milan, Vaidere Inese, Valchev Ivaylo, Vălean Adina, Van Brempt Kathleen, Van Brug Anouk, van den Berg Brigitte, Vandendriessche Tom, Van Dijck Kris, Van Lanschot Reinier, Van Leeuwen Jessika, Vannacci Roberto, Van Overtveldt Johan, Van Sparrentak Kim, Varaut Alexandre, Vasconcelos Ana, Vasile-Voiculescu Vlad, Vautmans Hilde, Vedrenne Marie-Pierre, Ventola Francesco, Verougstraete Yvan, Veryga Aurelijus, Vešligaj Marko, Vicsek Annamária, Vieira Catarina, Vilimsky Harald, Vincze Loránt, Vind Marianne, Vistisen Anders, Vivaldini Mariateresa, Volgin Petar, von der Schulenburg Michael, Vondra Alexandr, Voss Axel, Vozemberg-Vrionidi Elissavet, Vrecionová Veronika, Vázquez Lázara Adrián, Waitz Thomas, Walsh Maria, Walsmann Marion, Warborn Jörgen, Warnke Jan-Peter, Wąsik Maciej, Wawrykiewicz Michał, Wcisło Marta, Wechsler Andrea, Weimers Charlie, Werbrouck Séverine, Wiesner Emma, Wiezik Michal, Wilmès Sophie, Winkler Iuliu, Winzig Angelika, Wiseler-Lima Isabel, Wiśniewska Jadwiga, Wölken Tiemo, Wolters Lara, Yar Lucia, Yoncheva Elena, Zacharia Maria, Zalewska Anna, Žalimas Dainius, Zan Alessandro, Zarzalejos Javier, Zdechovský Tomáš, Zdrojewski Bogdan Andrzej, Zijlstra Auke, Zīle Roberts, Zingaretti Nicola, Złotowski Kosma, Zoido Álvarez Juan Ignacio, Zovko Željana, Zver Milan

Excused:

Andrews Barry, Di Rupo Elio, Strada Cecilia, Temido Marta

MIL OSI Europe News –

February 12, 2025

MIL-OSI Europe: Debates – Monday, 10 February 2025 – Strasbourg – Revised edition

Source: European Parliament

Verbatim report of proceedings

403k

Monday, 10 February 2025 – Strasbourg

IN THE CHAIR: ROBERTA METSOLA
President

1. Resumption of the session

President. – I declare resumed the session of the European Parliament adjourned on 29 January 2025.

2. Opening of the sitting

(The sitting opened at 17:03)

3. Statements by the President

President. – First of all, regarding what happened on 29 January 2025, on behalf of this House, I want to extend my deepest apologies for the incident that took place on 29 January during the European Parliament’s solemn session on International Holocaust Remembrance Day.

The interruptions during our guest’s speech, 92-year-old Corrie Hermann, and during the minute of silence for Holocaust victims were disgraceful. The gravity of such behaviour cannot be overstated. It is a dark and stark reminder of why remembrance is not just a symbolic act, but a fundamental duty that this Parliament – that we all – must uphold.

The appropriate consequences shall be drawn after the relevant procedures are followed. I thank the services for their assistance in this regard, and I thank all of you for being present that day.

Dear colleagues, this month marks three years since Russia launched its unprovoked, unjustified and illegal full-scale invasion of Ukraine. Three years on, Ukraine remains resilient and this Parliament stands with Ukraine. Tomorrow, we are honoured to welcome Chairman Ruslan Stefanchuk of the Verkhovna Rada to mark this sombre anniversary. I ask you all to be present.

Also, dear colleagues, last Tuesday we were devastated to hear of the horrific mass shooting at Risbergska school in Örebro, the worst in Sweden’s history. This was a senseless act of violence that claimed innocent lives, shattering families and scarring communities. Europe mourns with those who have been lost and our thoughts are with their loved ones, with all those who have been injured and with the people of Sweden in this moment of profound sorrow.

Hatred and violence have no place in Europe. The values that unites us – peace, democracy and the dignity of human life – will always prevail.

I now invite you to join me in observing one minute of silence in memory of the victims.

(The House rose and observed a minute’s silence)

4. Approval of the minutes of the previous sittings

President. – The minutes and the texts adopted of the sittings of 23 January and 29 January are available.

Are there any comments? I see that is not the case.

Then the minutes are approved.

5. Penalties

President. – First of all, pursuant to Rules 10 and 183 of the Rules of Procedure, and after taking into account the observations of the Member concerned, I have decided to impose a penalty on Grzegorz Braun.

At the sitting of 27 November 2024, Mr Brown repeatedly used offensive and discriminatory language in the framework of the debate of the recent legislation targeting LGBTQI persons.

This penalty consists of the forfeiture of his entitlement to the daily subsistence allowance for a period of two days, as well as a temporary suspension from participation in all the activities of Parliament for a period of two days on which Parliament meets, starting from today, 10 February 2025, without prejudice to his right to vote in plenary and subject to strict compliance with the Members’ standards of conduct.

The Member concerned has been notified of these decisions and has not launched an internal appeal with the Bureau pursuant to Rule 184. The penalties are therefore final.

6. Composition of committees and delegations

President. – The ECR, Greens/EFA and ESN groups and non-attached Members have notified me of decisions relating to changes to appointments within committees and delegations.

These decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

7. Negotiations ahead of Parliament’s first reading (Rule 72)

President. – The AFET and BUDG Committees have jointly decided to enter into interinstitutional negotiations, pursuant to Rule 72(1) of the Rules of Procedure.

The report, which constitutes the mandate for the negotiations, is available on the plenary webpage and its title will be published in the minutes of the sitting.

Pursuant to Rule 72(2), Members or political groups reaching at least the medium threshold may request in writing by tomorrow, Tuesday 11 February, at midnight that the decision be put to the vote.

If no request for a vote in Parliament is made within the deadline, the committees may start the negotiations.

8. Negotiations ahead of Council’s first reading (Rule 73)

President. – The IMCO Committee has decided to enter into interinstitutional negotiations ahead of the Council’s first reading, pursuant to Rule 73 of the Rules of Procedure.

The position adopted by Parliament at first reading which constitutes the mandate for those negotiations is available on the plenary webpage, and its title will be published in the minutes of the sitting.

9. Signature of acts adopted in accordance with the ordinary legislative procedure (Rule 81)

President. – I would like to inform you that, together with the President of the Council, I shall, on Tuesday, sign one act adopted under the ordinary legislative procedure, in accordance with Rule 81 of Parliament’s Rules of Procedure.

The title of the act will be published in the minutes of this sitting.

⁂

I would also like to inform the House that I have received three requests for points of order.

I will give the floor in the order that we have received them, first with Petras Auštrevičius. Please quote the rule under which you are making the point of order.

Petras Auštrevičius (Renew). – Madam President, dear colleagues, taking the floor under Rule 164, and while appreciating our Wednesday debate on the need for targeted support to EU regions bordering Russia, Belarus and Ukraine, let me draw your attention to the great action which happened last weekend once the Lithuanian, Latvian and Estonian energy was finally synchronised with the European continental energy ring.

And this is the way we have to go and streamline, cutting down our decades‑long dependencies with eastern countries and synchronising into the single market, whatever it takes, economic, energy or whatever. So, our talk on Wednesday will be about this, about achievements and what we can do together.

Stefano Cavedagna (ECR). – Signora Presidente, onorevoli colleghi, ho un richiamo al regolamento ai sensi dell’articolo 202 del nostro regolamento del Parlamento europeo.

Infatti oggi è il 10 febbraio e in Italia, dalla legge 92 del 2004, celebriamo il Giorno del ricordo, che tutela l’onore dei martiri delle foibe e degli esuli di Istria, Fiume e Dalmazia, condannati a morte ed esiliati per colpa delle brigate comuniste del dittatore Tito jugoslavo. Se vogliamo pacificare, dobbiamo ricordare tutte le vittime del comunismo e anche queste, che hanno toccato in particolare il mio paese, e ricordare i martiri delle foibe.

Per la prima volta ci sarà una esposizione qui a Strasburgo.

10. Order of business

President. – We now come to the order of business. The final draft agenda, as adopted by the Conference of Presidents on 5 February pursuant to Rule 163, has been distributed.

With the agreement of the political groups, I wish to put to the House the following proposals for changes to the final draft agenda.

For today, Monday, Parliament statement on the situation in Sweden in the midst of the recent mass shooting in Örebro, with one round of political group speakers, is added as the first point.

For tomorrow, a formal sitting with an address by Ruslan Stefanchuk, Speaker of the Verkhovna Rada of Ukraine, is added at 12:00. As a result, the voting session will start at 12:30.

For Thursday, the order of debates will change as follows. The debate on ‘EU-Mercosur trade agreement’ will be taken as the first point on the agenda, whereas the debate on ‘Threats to EU sovereignty through strategic dependencies and communication infrastructure’ will be the second point.

If there are no objections, then these changes are approved.

We will move now to a change requested by a political group. For Wednesday, the ESN Group has requested that a Commission statement on ‘Condemning all politically motivated violence, in particular the slingshot attack in Germany and other violent attacks in Europe’ be added as the third point in the afternoon. As a consequence, the sitting would be extended to 23:00.

I give the floor to Christine Anderson to move the request on behalf of the ESN Group.

Christine Anderson, im Namen der ESN-Fraktion. – (Beginn des Redebeitrags bei ausgeschaltetem Mikrofon) … die Tagesordnung gerne um einen Punkt erweitern, unter dem sich dieses Haus geeint gegen jedwede politische Gewalt aussprechen kann. Anlass ist ein Angriff auf einen unserer Wahlkämpfer am Samstag, der mittels einer Zwille mit einer Stahlkugel beschossen wurde. In Hannover haben 250 Angreifer einen Wahlstand umzingelt. Nur mühsam konnte die Polizei mit Schutzschilden die Menge noch in Schach halten. Später zog der Mob dann weiter und bedrohte einen Stand der CDU. Ein Mitglied der CDU berichtete, er habe Angst um seine Parteimitglieder gehabt.

Liebe Kollegen, Gewalt im Wahlkampf dürfen wir nicht tolerieren. Lassen Sie uns also mit einer Debatte gemeinsam ein Zeichen gegen jede Form von Gewalt setzen! Das sind wir unserer Demokratie schuldig. Lassen Sie uns demonstrieren, dass dieses Haus vereint gegen jede Form politischer Gewalt steht, egal, von wem sie ausgeht, und egal, gegen wen sie sich richtet! Vielen herzlichen Dank!

(The sitting was briefly suspended)

PRÉSIDENCE: YOUNOUS OMARJEE
Vice-Président

11. Resumption of the sitting

(La séance est reprise à 17h19)

12. Situation in Sweden in the midst of the recent mass shooting in Örebro (debate)

Heléne Fritzon, för S&D gruppen. – Herr talman! En vanlig tisdag på en vanlig skola i Sverige, ett utbildningscenter för vuxna. Så förvandlas denna vanliga dag till en av de mörkaste dagarna i Sveriges historia. En svensk ung man skjuter besinningslöst inne på en skola. Han dödar tio människor, flera av dem med utländsk bakgrund.

I dag, efter detta massmord, är det många med annan bakgrund i Sverige som känner rädsla och otrygghet. Och det är ett misslyckande för vårt samhälle, i Sverige, i Europa och i världen, när våld och splittring släcker människors liv. Eller som vår drottning i Sverige, drottning Silvia, uttryckte det när hon var i Örebro. Vart tog det fina Sverige vägen?

Ord spelar roll. Det måste vi veta, inte minst i den offentliga debatten. Vi har alla ett ansvar. Hat och hot hör inte hemma här. För en skola, en helt vanlig dag, det ska vara en plats som är trygg. En plats som möjliggör människors drömmar om framtiden.

Våra tankar finns i dag med alla de drabbade. Hos mamman i Örebro som inte kom hem till sina barn. Våra tankar finns med alla dem som stängdes in på skolan i skräck och hörde och såg skjutningar och blod. Och hos alla dem som gjorde en fantastisk insats med att rädda människors liv. Nu är vi i en tid när vi behöver komma samman. Så stort tack till alla er som står tillsammans med oss i Sverige i vår sorg.

Sebastiaan Stöteler, on behalf of the PfE Group. – Mr President, dear colleagues, the recent tragic mass shooting in Örebro, Sweden has left us all in mourning. Eleven lives taken in an act of senseless violence that left many others injured remind us of the fragility of peace in our societies.

This incident is not just a Swedish issue: it’s a European one. It underscores the urgent need for comprehensive security measures, vigilant community involvement and a reassessment of our policies on public safety. We must stand with Sweden, offering our solidarity and support, but also demand accountability and action.

Tomorrow, we call upon European leaders to prioritise the safety of our citizens. We need policies that protect our schools, our public spaces and our communities from such tragedies. We need a Europe where our children can learn in safety, where our citizens can live without fear. But today, Mr President, our thoughts are with the victims, their families and the entire Swedish community. Today, we mourn with Sweden.

Abir Al-Sahlani, för Renew gruppen. – Herr talman! Mitt Sverige är i sorg och i chock. Förra veckan hände den värsta masskjutningen i svensk historia. Tio människor fick sätta livet till. En lärare, vars dröm var att hjälpa andra uppnå sina drömmar. En mamma, som aldrig kom hem till sina fyra barn, och en personlig assistent, som var älskad och som skulle gifta sig nu till sommaren.

Den gemensamma nämnaren mellan dessa är att de hade sina rötter någon annanstans än i Sverige. Varje människa hade drömmar, en historia de kom ifrån och en framtid som togs ifrån dem.

Jag besökte Örebro i fredags för att hedra offren, för att lägga ljus och blommor utanför skolan och för att visa att även Europa står tillsammans med örebroarna och hela Sverige i vår sorg. Jag möttes av en bottenlös sorg, av ilska, av många frågor, men framför allt också av oro. Många föräldrar undrar hur de kan släppa iväg sina barn till skolan. De undrar själva om de kan få vara utanför. Många känner sig inklämda mellan rasismen och våldsbrotten.

Många är frågorna och därför är det otroligt viktigt att polisen får gå till botten med vad som låg bakom. För vi behöver få riktiga svar.

Jag möttes också av ett enat civilsamhälle i Örebro. Moskéerna och kyrkorna hade öppnat sina portar och var en varm famn för de som sökte stöd. Rädda barnen, Röda korset, socialtjänsten och ungdomsgårdarna var alla öppna där och fanns som stöd och hjälp för alla de som sökte. Jag vill rikta ett innerligt och varmt tack till polis, räddningstjänst och vårdpersonal som var där på plats och som fortfarande är där och hanterar situationen.

Jag är ganska omskakad själv, för det här kunde ha varit mina föräldrar som hade varit där på plats. Det är exakt de här människorna det här våldet berör. Vi har en utmanande och svår tid framför oss i Sverige, men vi kan använda den för att tillsammans bygga Sverige. Ett Sverige för alla.

René Aust, im Namen der ESN-Fraktion. – Herr Präsident! Meine sehr geehrten Damen und Herren! Ich möchte in dieser schwierigen Stunde den Angehörigen mein Beileid ausdrücken und garantieren und versichern, dass wir in dieser schwierigen Stunde an der Seite des schwedischen Volkes stehen und ihm unsere Solidarität aussprechen möchten. Wir möchten dankbar sein für diejenigen, die in den ersten Minuten mutig waren, als Polizisten in diese Schule gegangen sind und versucht haben, Schlimmeres zu verhindern. Und natürlich den Rettungskräften, die unmittelbar den Verletzten geholfen haben, damit es nicht noch mehr Opfer gab.

Ich kann nur hoffen, dass alle Hintergründe dieser Tat aufgeklärt werden und dass mögliche Mitwisser auch dafür bestraft werden, falls es welche geben sollte. Ich möchte Schweden eines wünschen: Sie waren lange Jahrzehnte dafür bekannt, dass Sie eines der sichersten Länder dieser Erde sind, und ich hoffe, dass Schweden auf diesen Weg wieder zurückfindet. In diesem Sinne: Alles Gute den Hinterbliebenen, und dem schwedischen Volk unsere Solidarität!

Le Président. – Je remercie l’ensemble des collègues pour la très grande dignité de cette discussion et la charge émotionnelle très forte qui dit combien nous sommes solidaires avec tout le peuple suédois.

13. European Central Bank – annual report 2024 (debate)

Anouk Van Brug, rapporteur. – Voorzitter, mevrouw Lagarde, Europa was ooit een continent van stabiliteit, waar hard werken werd beloond, waar je spaargeld groeide en waar je plannen kon maken voor de toekomst. Je kon iedere maand een deel van je salaris opzijzetten voor een groter doel — een huis, een pensioen of een welverdiende vakantie. Dankzij een fatsoenlijke rente kwam dat doel stap voor stap dichterbij.

Maar die zekerheid is verdwenen. Steeds meer mensen kunnen niet meer rondkomen. Niet omdat ze niet hard werken, maar omdat het leven onbetaalbaar wordt. Sparen voelt als luxe, terwijl het voorheen een vanzelfsprekendheid was. Geld dat opzij werd gezet, verdampt. Want terwijl lonen achterblijven, stijgen de prijzen van boodschappen, energie en woningen tot onhoudbare hoogten.

De Europese Centrale Bank had als belangrijkste taak de prijsstabiliteit te bewaken. Maar toch werden we de afgelopen jaren verrast door torenhoge inflaties. Hoe kon dit gebeuren? Wat ging er mis? Ja, de Russische invasie in Oekraïne heeft een grote rol gespeeld. Opeens werden energieprijzen onvoorspelbaar, raakten toeleveringsketens verstoord en schoten voedselprijzen omhoog. Maar deze crisis was niet de eerste schok voor onze economie. En zij zal ook niet de laatste zijn.

Ik zeg niet dat de ECB stil heeft gezeten, maar de vraag is: waren we wel voorbereid? Terwijl de ECB druk bezig was met het onderzoek naar klimaat en duurzaamheid — belangrijke thema’s, zonder twijfel — werden andere risico’s onderschat, vooral geopolitiek. Oorlog en conflict.

Mevrouw Lagarde, waarom had de ECB geen scenario’s klaarliggen voor een geopolitieke schok als deze? Waarom stonden we niet paraat om de gevolgen voor de inflatie en de economie te verzachten? Dit is namelijk geen hypothetische discussie. Vandaag is het de oorlog in Oekraïne die de economie onder druk zet. Maar wat is het morgen? Morgen kan het zomaar iets anders zijn. Want wat als de spanningen rond Taiwan escaleren en de wereldwijde chipleveranties opdrogen? Of wat als de Verenigde Staten binnenkort nieuwe handelsbeperkingen opleggen aan Europese bedrijven? Wat als de energieprijzen opnieuw omhoogschieten door geopolitieke instabiliteit in het Midden‑Oosten?

De ECB moet niet alleen reageren op crises, maar moet ze voor zijn. We kunnen het ons niet veroorloven om keer op keer verrast te worden, terwijl de inflatie opnieuw door het dak schiet en miljoenen Europeanen daar de prijs voor betalen. Want laten we niet vergeten wie de uiteindelijke rekening betaalt. Dat zijn de gewone mensen thuis: de hardwerkende Nederlander, de jonge Europeanen die hun eerste huis proberen te kopen of de gepensioneerden die hun spaargeld langzaam zien verdampen. Zij verwachten leiderschap. Zij verwachten dat wij, als beleidsmakers, en u, vanuit de ECB, vooruitdenken en niet achter de feiten aan lopen.

Dus ik vraag u, mevrouw Lagarde, om geopolitieke risico’s net zo serieus te nemen als klimaatverandering, om scenario’s te ontwikkelen, om voorbereid te zijn op de volgende economische schok, zodat we niet opnieuw verrast worden, zodat we niet opnieuw onze koopkracht laten wegslippen. Want uiteindelijk gaat dit niet over cijfers, rentepercentages of inflaties. Dit gaat over mensen, dit gaat over hun dromen en dit gaat over hun toekomst.

Europa moet weer een continent worden waar mensen vol vertrouwen vooruit kunnen kijken, waar hard werken weer loont, waar sparen opnieuw mogelijk is en waar je plannen kunt maken en die ook echt kunt waarmaken. Dat is de opdracht. Dat is de verantwoordelijkheid, en de tijd om die verantwoordelijkheid te nemen, die is nu.

Christine Lagarde, President of the European Central Bank. – Honourable Vice-President of the European Parliament, Commissioner Albuquerque, honourable Members of the European Parliament, Madam rapporteur, all of you, good afternoon, it’s an absolute pleasure to be back here, in the European Parliament, to discuss your draft resolution on the ECB’s annual report.

At the ECB, we are deeply committed to dialogue, transparency and accountability. In particular, we are very keen on how we communicate with the people of Europe, who we consider very highly and we treat very seriously in their aspirations. Also, obviously, because you are representatives of the European people, we are very keen to make sure that we communicate with all of you as much as possible. In fact, in the last parliamentary term – for those of you who were Members of Parliament in the last parliamentary term – we interacted with this Parliament more frequently than in previous terms, the record shows.

At the same time, it’s not just about us being accountable to you, it’s also the opportunity to hear your views and, through you, the views of European members and European people. Your debate and resolution are an important pillar of the ECB’s accountability framework and a key channel for you to share your views with us – and I can assure you that we listen and we pay great attention. For instance, next week will mark the 10th anniversary since the ECB started publishing the accounts of the Governing Council’s monetary policy meetings, and that was a major step in order to enhance our monetary policy communication and one that you, Parliament, had advocated for ten years ago. We have done that ever since, and we were followed through by other central banks around the world as a result.

This year’s draft resolution covers key issues that are central to the ECB’s mandate and the future of the euro area, including our response to inflation, the digital euro and the ECB’s role in supporting the EU’s broader economic policies. It also reflects the dynamic challenges we face in Europe today, and I look forward to hearing you thoughts on all of these issues and having a constructive dialogue with you.

But, before we do that, let me first outline our view on the current economic situation, explain what our monetary policy stance is and also address the broader economic challenges we are facing and what implications they have for our monetary policy.

When I look at the euro area economy today, I can attest that it grew – but it grew modestly – in 2024. While output stagnated in the fourth quarter of 2024, it was still 0.9 % higher than in the last quarter of 2023. Surveys indicate that manufacturing continues to contract while services activity is expanding. Consumer confidence – you will hear more about that – is still fragile and, despite rising real incomes, households are hesitant to spend more.

And yet, the conditions for a recovery remain in place. A solid job market and higher incomes should strengthen consumer confidence and allow spending to rise and consumer consumption to be a driver of growth. More affordable credit should boost consumption and investment over time. Exports should also allow and support the recovery as global demand rises, although in that respect it’s obviously conditional upon changes and developments that we will observe in international trade policies.

Inflation stood at 2.5 % in January and has recently developed broadly in line with staff projections. Core inflation – that is, taking out energy and food – has remained at 2.7 % in recent months, reflecting a sideways movement in both services and goods inflation. Wage growth is moderating as expected, although it remains elevated, while at the same time profits are partially buffering the impact of wage increases on inflation.

Inflation is set to return to our 2 % medium-term target in the course of 2025, this year, with risks on both the upside and the downside. It’s clear that greater friction in global trade would make the euro area inflation outlook more uncertain.

In total, the ECB has lowered interest rates by 125 basis points since last June, and the deposit facility rate, which is the rate through which we steer the monetary policy stance, now stands at 2.75 %. At our last meeting in January, we decided to lower our key interest rates by another 25 basis points, based on an updated assessment of the inflation outlook, the underlying inflation and its dynamics, as well as the strength of monetary policy transmission. In particular, the disinflation process in the euro area is well on track. Most measures of underlying inflation suggest that inflation will settle at around our targets on a sustained basis. And while financing conditions continue to be tight, our recent interest rate cuts – 125 basis points – are gradually making borrowing less onerous for both corporates and households.

We are determined to ensure that inflation stabilises at our 2 % medium-term target. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance, and we are not pre-committing to any particular path.

So let me now turn to the broader economic environment and its implications for monetary policy. Europe has faced – and you know that – a series of unprecedented challenges in recent years, each with its own far reaching impact, and probably more far reaching than we could all anticipate when they hit our radar screen. From the COVID-19 pandemic to surging energy prices and the geopolitical upheaval caused by Russia’s unjustifiable invasion of Ukraine, we have navigated our way through a storm of supply shocks, predominantly. Is that it? Probably not, because as we look ahead, notably because of geopolitical developments, the frequency of these shocks is likely to remain high.

While we have weathered these crises, the past few years have also revealed missed opportunities and underinvestment in areas such as the digital transformation and the green transition, and the uncertainty surrounding trade and economic policy continues to weigh on consumption and on investment. As a result, and as was very well highlighted by the respective reports of Enrico Letta and Mario Draghi, Europe finds itself lagging behind international competitors in both productivity and growth.

In a world driven by shifting global dynamics and rapid technological change, Europe must strike that delicate balance between achieving strategic autonomy and preserving its openness to the global economy. As President von der Leyen and I highlighted in a recent article, Europe’s response to these challenges must be bold and strategic. While the outlook may seem daunting, the prospects are more promising than they might appear.

One of Europe’s first priorities should be to deepen the internal market. By removing the very barriers that we impose upon ourselves – barriers that actually operate almost like internal tariffs – we can unlock economies of scale, encourage innovation and reduced costs for consumers and producers alike. We are already home to a wealth of ideas and innovators. Our challenge is to transform these ideas into technologies that effectively fuel economic growth. To do so, we need to reduce unnecessary administrative burdens and foster an innovation-friendly environment.

Another critical area is enhancing Europe’s autonomy in payments, which form the backbone of our economy and our single currency. At present, a few foreign – foreign – providers dominate Europe’s payments landscape. Yes, there are a few Member States that have their own respective payment system, but overall it is dominated by foreign players, leaving us vulnerable to external pressures. As we face an increasingly digital future, we must prepare the ground for a digital euro. This will ensure the resilience and public good nature of our payment systems. It will also provide a platform for private innovation in digital payments – private innovation that banks can take the initiative of.

With substantial substantial savings at its disposal, Europe must channel more resources into private investment and scale up financing to support its innovators. A genuine capital market union designed for citizens and businesses alike will be instrumental in that respect. I have advocated that for years and so have you. But we need to make sure that it comes through as a reality, not as an aspiration.

More broadly, investment must be the cornerstone of Europe’s economic transformation. The focus must be on investing in physical and digital infrastructure, research and development, and green technologies. These are not optional but essential investments required to drive productivity and guarantee Europe’s competitiveness on the global stage. In addition, they will address our energy dependence and help us meet our climate goal – both pressing imperatives.

In this regard, we welcome the European Commission’s Competitiveness Compass as a concrete roadmap for action, which will also support the ECB in maintaining price stability by reducing Europe’s susceptibility to supply shocks.

Having said that, the European Central Bank is not standing still. We are committed to learning from the experiences of recent years. As part of the ongoing assessment of our monetary policy strategy, we are preparing for the risk of an increasingly volatile future. We are taking stock of a changed inflation environment and economic context. We are also focusing on the implications for monetary policy, our experiences with our evolving policy toolkit, our reaction function and how to better deal with risk and uncertainty in policy setting and communication. While the ECB continuously evaluates and adapts its economic models – a topic raised in your resolution, I know that – assessing new analytical needs will be one component of this assessment.

So, in conclusion, the challenges facing Europe are immense, but solutions are within our reach. Our opportunity lies in more and better Europe.

As Konrad Adenauer said 70 years ago, ‘European unity was the dream of a few. It became the hope for many. Today it is a necessity for all of us’. This sentiment, and I quoted him, rings true today more than ever.

To jointly tackle Europe’s challenges, I’m counting on Parliament’s commitment. Within its mandate, the ECB will play its part. Ever since the introduction of the euro, the ECB has continuously adapted to changing economic environments to fulfil its mandate. And we will remain fully committed to delivering on this very mandate. We are equally committed to maintaining our active and meaningful dialogue with all of you, as Members of the European Parliament, and I thank you for your attention.

Maria Luís Albuquerque, Member of the Commission. – Mr President, President Lagarde, honourable Members, it is a pleasure to discuss the draft report on the ECB Annual Report prepared by the Committee on Economic and Monetary Affairs. I would like to thank the rapporteur Ms Anouk Van Brug and the members of the Committee.

The assessment of the ECB’s activities by the European Parliament is an important part of the democratic accountability of the ECB. The Commission welcomes the ECB’s monetary policy measures, which have helped to keep inflation expectations anchored, and have contributed to the disinflationary processes over the last two years. The Commission acknowledges the ECB’s strong commitment and decisive action to ensuring price stability.

Last year, the EU economy resumed moderate growth amidst a further abatement of inflationary pressures; unemployment remained very low, and employment reached record levels. Overall, the EU economy has shown remarkable resilience amidst the series of severe shocks. This is in no small measure thanks to our collective policy actions, including those of the ECB. Looking ahead, and in line with the ECB, the Commission expects inflation to return to around 2 % in the course of the year. GDP growth is set to pick up as private consumption gains strength and investment recovers from a weak performance in 2024.

At the same time, the European economy suffers from a series of structural breaks on its competitiveness, holding back our growth and threatening our future prosperity. As the world has entered an era of harsh geostrategic competition, boosting our competitiveness and productivity has become even more urgent. This requires urgent action on several fronts.

To steer the work, two weeks ago, the Commission proposed a competitiveness compass. It is centered on three transformational imperatives: closing the innovation gap, a joint roadmap for decarbonisation and competitiveness, and reducing excessive dependencies and increasing security. These enablers are complemented by action on horizontal enablers, such as completion of the single market, simplification, promotion of skills and quality jobs, better coordination of policies and financing. Over the next weeks and months, the Commission will roll out a series of policy initiatives to implement the strategy. The Commission looks forward to working closely with Parliament to deliver on them.

A key foundation for a competitive economy is economic stability. Therefore, in line with the calls in your report to ensure sound fiscal policies, we have proceeded swiftly with the implementation of the new economic governance framework. We approved the medium‑term plans for 21 Member States. Those plans contain commitments for prudent fiscal policies, as well as reforms and investments in line with our EU priorities. Now, the time for delivery has come to bring deficits and debt down where they are too high.

Overall, the implementation of the EU Member States’ plans will result into a slightly contractionary fiscal stance in 2025, which is appropriate following a long period of expansion.

Honourable Members, our challenges are numerous. The actions we need to take are ambitious and urgent. Together with the support of this House and underpinned by the crucial policies of the ECB, we will be able to improve our competitiveness, secure our social market economy and build our future prosperity.

Markus Ferber, im Namen der PPE-Fraktion. – Herr Präsident! Frau Kommissarin! Frau Präsidentin, liebe Christine Lagarde! In der Vergangenheit war der Jahresbericht zur Europäischen Zentralbank oft ein hartes Stück Arbeit. Und in schwierigen Verhandlungen ist manchmal auch die klare Linie abhandengekommen. Dieses Mal ist es anders. Und dafür möchte ich auch im Namen unseres Verhandlungsführers Marco Falcone, der Berichterstatterin und dem gesamten Verhandlungsteam ganz herzlich danken.

Der Bericht gibt ein klares Bekenntnis zum Ziel der Preisstabilität, das immer der Fixstern des Handelns für die EZB sein sollte. Daraus folgen die Kernprinzipien wie das der monetären Dominanz und der Marktneutralität. Der Aspekt der Marktneutralität ist für uns als EVP-Fraktion von ganz besonderer Bedeutung. Denn für uns ist entscheidend, dass die Europäische Zentralbank in ihren geldpolitischen Entscheidungen den Wettbewerb und die Marktmechanismen nicht verzerrt. Das mag hier in diesem Haus nicht jedem gefallen, denn so mancher will die EZB gern für politische Ziele einspannen. Aber das ist nicht ihre Aufgabe. Im Sinne eines fairen Wettbewerbs und einer effizienten Kapitalallokation sollten wir deswegen der Versuchung widerstehen. Deswegen ist das Prinzip der Marktneutralität so entscheidend. Ich freue mich, dass wir dieses Mal endlich einen Text gefunden haben, der hoffentlich alle Seiten entsprechend berücksichtigt.

Neben der Geldpolitik haben wir uns auch mit dem digitalen Euro beschäftigt. Hier liegen zwar Vorschläge auf dem Tisch, aber diese Vorschläge lassen noch viele Fragen offen. Und auf die müssen wir im Gesetzgebungsverfahren Antworten finden. Wir sollten auch in diesem Jahresbericht keine Vorfestlegungen treffen. Das gilt aber auch für die Europäische Zentralbank, die akzeptieren muss, dass momentan der Gesetzgeber der Herr des Verfahrens ist und nicht die Europäische Zentralbank. Es handelt sich nämlich nicht nur um eine reine geldpolitische Entscheidung, sondern um eine politische Entscheidung von großer Tragweite. Und das sollten wir in aller Ruhe hier in diesem Haus miteinander diskutieren. Ich bitte Sie wirklich, diesen Passus sehr intensiv zu lesen, auch Ihrem Stellvertreter mitzugeben, der sich hier besonders engagiert. Dann sind wir auf dem richtigen Weg.

Evelyn Regner, im Namen der S&D-Fraktion. – Herr Präsident! Sehr geehrte Frau Präsidentin Lagarde! Sehr geehrte Frau Kommissarin Albuquerque! Die Europäische Zentralbank ist viel mehr als nur eine Bank: Sie ist das Rückgrat unserer Wirtschaftspolitik, Stütze der Europäischen Union. Ihre Geldpolitik bestimmt unsere wirtschaftliche Zukunft, und wer ihr die Hände bindet, blockiert den Fortschritt, gefährdet den sozialen Frieden und stellt sich gegen die gemeinsame Verantwortung.

Preisstabilität ist der Kern, um nicht zu sagen die heilige Kuh der Geldpolitik. Doch Geldpolitik geht weit über die bloße Preisstabilität hinaus. Daher hat die Europäische Zentralbank auch zwei Mandate, und das zweite Mandat umfasst die Verantwortung für den Wohlstand der Menschen, für Arbeitsplätze, Innovation und auch für Chancengleichheit. In einer Zeit, in der der Klimawandel und soziale Ungleichheit immer mehr auf die Menschen niederprasseln, ist das zweite Mandat der Europäischen Zentralbank dadurch dringlicher denn je.

Wir Sozialdemokratinnen und Sozialdemokraten stehen fest an der Seite der EZB, denn ihre Rolle ist unverzichtbar – auch im Kampf gegen den Klimawandel. Tatsächlich: Preisstabilität und Klimaschutz sind untrennbar miteinander verbunden. Denn die Klimakrise bedroht Menschen, bedroht unseren Planeten und die Wirtschaft gleichermaßen, und wer das nicht begreift, der lebt in einer Illusion. Leider gibt es noch immer Kräfte in diesem Haus, die die EZB auf eine marktneutrale Linie zwingen wollen, als ob dies ein unantastbares Dogma wäre. Aber wir wissen: Marktneutralität ist kein Naturgesetz, sondern maximal ein von Menschen erdachtes Konzept, das uns im Klimakampf im Stich lässt. Diese Politik der Marktneutralität würde die Probleme der Menschen und des Planeten verschärfen, statt Lösungen zu bringen.

Die Erkenntnis also, dass Klimawandel, soziale Gerechtigkeit und Preisstabilität eng miteinander verknüpft sind, muss uns den Leitfaden geben, wie Geldpolitik zu gestalten ist. Denn nur eine nachhaltige und gerechte Wirtschaft kann langfristige Stabilität für uns alle gewährleisten.

Sebastiaan Stöteler, namens de PfE-Fractie. – Voorzitter, mevrouw Lagarde, ik spreek vandaag ten behoeve van mijn delegatiegenoot Zijlstra, die schaduwrapporteur op dit dossier was en helaas vandaag wegens ziekte niet kan spreken.

Toen de Europese Centrale Bank op 1 juni 1998 door Wim Duisenberg boven het doopvont van het Verdrag van Maastricht werd gehouden, dachten we allemaal dat we een centrale bank zouden hebben die tot doel had het prijspeil stabiel te houden. Zo staat het ook nog steeds in het mandaat.

Bijna dertig jaar later blijkt daar echter weinig van over te zijn. Volgens cijfers van het CBS bedraagt de Nederlandse inflatie sinds 2020 ongeveer 20 %. Gevolg: bijna nergens in de EU is alles zo snel zo duur geworden als in Nederland. De mensen komen steeds moeilijker rond. Door de hoge inflatie van afgelopen jaren verdampte ongeveer 30 miljard EUR aan Nederlands spaargeld, maar konden failliete eurolanden wel hun staatsschuld weginflateren.

Dit perverse systeem moet gestopt worden. De Nederlandse spaarder, gepensioneerde en ondernemer worden belazerd door een centrale bank die enkel oog heeft voor de belangen van ministers die hun overheden onverantwoord geleid hebben en begrotingen niet op orde krijgen. Het wordt tijd dat de Europese Centrale Bank de mensen die sparen, werken en ondernemen weer in het vizier heeft en niet langer straft, maar beloont. Dat zo’n koerswijziging wellicht het faillissement van een of meerdere eurolanden betekent, is een spijtige zaak, maar het mag geen argument zijn om de Nederlander verder financieel uit te roken.

Denis Nesci, a nome del gruppo ECR. – Signor Presidente, onorevoli colleghi, signora Presidente Lagarde, oggi ci troviamo a discutere il rapporto annuale della BCE, un documento che fornisce una panoramica sulle politiche monetarie adottate, sull’attività di vigilanza e sulle altre funzioni svolte dal Sistema europeo di banche centrali.

In qualità di relatore ombra del gruppo ECR, ho lavorato affinché il testo mantenesse un approccio pratico, bilanciando l’indipendenza della BCE con la necessità di garantire una politica monetaria efficace.

Il rapporto affronta temi come la politica monetaria, l’euro digitale, gli obiettivi secondari della BCE e il rafforzamento del ruolo internazionale dell’euro e sottolinea l’importanza della stabilità dei prezzi nella lotta all’inflazione, fondamentale per un ambiente favorevole a investimenti, crescita e occupazione.

Riguardo all’euro digitale, si chiarisce che dovrà affiancare il contante senza sostituirlo, garantendo la privacy ai cittadini. Si evidenzia inoltre la necessità di maggiore trasparenza nella gestione delle obbligazioni societarie e di un approccio equilibrato nella decarbonizzazione.

Infine, chiediamo alla BCE di intensificare il dialogo con i parlamenti nazionali e di collaborare strettamente con gli Stati membri su un programma di educazione finanziaria, strumenti fondamentali per aumentare la consapevolezza e la preparazione di consumatori e imprese.

È cruciale che la BCE adotti un approccio più pragmatico e improntato al buon senso, sempre con l’obiettivo di salvaguardare le famiglie, le imprese e i consumatori. Solo con politiche che riflettono una comprensione concreta delle sfide quotidiane, la BCE potrà rafforzare ulteriormente la fiducia nell’euro e migliorare l’efficacia delle sue azioni, promuovendo un equilibrio tra la stabilità economica e il benessere dei nostri cittadini.

Gilles Boyer, au nom du groupe Renew. – Monsieur le Président, Madame la Commissaire, Madame la rapporteure, Madame la Présidente Lagarde – merci pour votre présence et pour vos propos –, nous pensons que la Banque centrale européenne doit pouvoir réagir avec la souplesse nécessaire, en respectant évidemment le mandat établi par les traités, pour assurer la stabilité monétaire au sein de notre Union.

Le principe de neutralité de marché a donc toute sa place dans la politique monétaire de la Banque centrale européenne, mais nous devons l’appliquer avec intelligence et avec flexibilité, comme tout ce que nous faisons. Il faut permettre à la Banque centrale européenne de réagir aux changements économiques et sociétaux, a fortiori lorsqu’ils sont systémiques, comme c’est souvent le cas en ce moment.

La réalité s’impose à nous. Je prends l’exemple des accords internationaux que nous avons pu conclure, tels que l’accord de Bâle sur la régulation du système bancaire. Lorsque nos partenaires dans les autres juridictions décident de ne pas appliquer les règles mondiales décidées en commun et créent une situation de concurrence déloyale, nous devons pouvoir réévaluer nos positions pour nous assurer que nos banques soient toujours en mesure de financer nos PME, les ménages européens et les transitions vertes et numériques qui sont si essentielles. Le tout, évidemment, dans le cadre d’un système financier sécurisé.

Ce sera un des enjeux de ce mandat européen, ici. Notre Union européenne s’est beaucoup tournée vers elle-même, et à juste titre, par le passé. Elle doit à présent regarder davantage vers l’extérieur.

Rasmus Andresen, im Namen der Verts/ALE-Fraktion. – Herr Präsident! Die geldpolitische Debatte in diesem Haus ist in Teilen unehrlich und auch durch Widersprüche geprägt. Finanzstabilität ist 2025 etwas anderes als in den 90er- oder in den 2000er-Jahren. Deshalb muss sich auch die Arbeit der Zentralbanken weiterentwickeln. Wer zum Beispiel möchte, dass die Inflation sinkt und dass die Preise bezahlbar werden, muss sich mit den Ursachen auseinandersetzen. Und die Ursachen für die hohe Inflation in den letzten Jahren – zumindest in der Europäischen Union, im Euro-Währungsgebiet – sind die hohen Energiepreise und zum Teil auch die Profitgier. Denn einige Konzerne haben die Energiepreisexplosionen ausgenutzt und – während wir über Sanktionen gegenüber Russland beraten haben – ganz gut Kasse gemacht.

Wer möchte, dass unsere Währung und unsere Wirtschaft stabil bleiben, der kann die Augen nicht vor der Klimakrise verschließen. Und wer möchte, dass wir in moderne Infrastruktur investieren, kann nicht ignorieren, dass auch hohe Zinssätze darauf einen Effekt haben. Es ist sehr schade, dass der aktuelle EZB-Bericht, über den wir morgen abstimmen, alle diese Fragen nicht befriedigend beantwortet, sondern – im Gegenteil – vor einem Großteil der Probleme die Augen verschließt. Es ist gut, dass die EZB in diesen Fragen viel weiter ist als einige Abgeordnete hier im Haus, denn es ist dringend notwendig. Und es wäre auch notwendig, sich damit auseinanderzusetzen, welche Rolle eigentlich die USA auch für die Geldpolitik in den nächsten Jahren spielen werden. Trump macht Geldpolitik, die vor allem im Interesse von Krypto-Milliardären ist. Das sollten wir nicht auch tun.

Deshalb ist es wichtig, dass wir eine eigene Geldpolitik formulieren und dass wir uns über diese Fragen auseinandersetzen. Dazu sind wir Grüne bereit. Und wir freuen uns, Frau Lagarde, dass wir das auch in den nächsten Jahren mit Ihnen und Ihrem Team weiter tun werden.

Jussi Saramo, The Left-ryhmän puolesta. – Arvoisa puhemies, jokaisesta ostoksestani menee siivu amerikkalaiselle kartellille. Suurin osa korttiostoksista – kännykälläkin tehdyistä – tehdään Visan ja Mastercardin kautta. Oikeaa kilpailua ei ole, vaikka yksityinen monopoli tai kartelli on kaikkein huonoin tapa järjestää pakolliset asiat.

Miksi eurooppalaiset yrittäjät joutuvat tilittämään osan myynnistään yhdysvaltalaiselle duopolille, joka sanelee hinnat? Samalla Trump uhkaa meitä tulleilla, veronkierrolla, jopa sotilaallisella hyökkäyksellä. Yhteiskunnan perusjärjestelmät eivät voi olla arvaamattoman valtion hybridisodan uhan alla. Nyt on laitettava tavallisten eurooppalaisten kuluttajien ja pienyrittäjien etu pankkien ja Yhdysvaltain suurvaltapolitiikan edelle.

Digieuro, oikein tehtynä, lisäisi Euroopan itsenäisyyttä parantamalla maksujärjestelmämme kestävyyttä ja palauttamalla julkisen vaihtoehdon maksamiseen. Vastustan käteisestä luopumista, mutta jos ja kun kauppiaat, pankit ja markkinat ajavat käteisen alas, on meillä oltava tulevaisuudessakin julkinen rahan muoto. Kuluttajien lisäksi digieurosta hyötyisivät erityisesti kauppiaat, joiden neuvotteluasema suhteessa maksunvälittäjiin paranisi lisävaihtoehtojen myötä. Oikein tehtynä digieuro myös vapauttaisi tavalliset pienituloiset ihmiset pankkien pakkoasiakkuudesta. Tähän ei tunnu olevan vielä poliittista tahtoa, mutta tulevaisuudessa digieuro voisi olla paljon, paljon enemmän kuin mihin konservatiivit ovat olleet valmiina.

Tämänvuotinen mietintö Euroopan keskuspankin toimista on valitettavasti puutteellinen muutenkin kuin digieuron osalta. Siinä ei oteta riittävässä määrin huomioon, että keskuspankin asettama korkotaso on edelleen liian korkea monelle euroalueen jäsenvaltiolle, kuten omalle kotimaalleni Suomelle. Mietintö on pettymys myös ilmastotoimien ja vihreän siirtymän suhteen. Se jopa vaatii EKP:ta jarruttelemaan ilmastonmuutoksen vastaisissa toimissa. Modernilla keskuspankilla on oltava muitakin tavoitteita kuin hintavakaus. Keskuspankit voivat – ja niiden täytyy – tukea työllisyyttä ja siirtymää kohti kestävää taloutta.

René Aust, im Namen der ESN-Fraktion. – Herr Präsident! Meine sehr geehrten Damen und Herren, unsere Währung muss sicher sein! Denn nur eine stabile Währung sichert den Wohlstand unserer Bürger. Eine stabile Währung schützt Wohlstand und Kaufkraft. Sie sorgt dafür, dass Preise berechenbar bleiben, dass sich Arbeit lohnt und jeder auch morgen noch genauso viel oder mehr für sein Geld bekommt wie bisher.

Die Europäische Zentralbank hätte den Auftrag, genau das zu gewährleisten. Doch seit Jahren verfolgt sie andere Ziele: Finanzierung von Staatsschulden; sie griff in die Wirtschafts- und Sozialpolitik von Nationalstaaten in den Zeiten der Troika ein; und jetzt macht sie sogar Klimapolitik. Die Folgen spüren wir alle: Ersparnisse schrumpfen, Investitionen gehen zurück.

Landsleute und Bürger Europas! Wir brauchen keine Experimente der EZB mit unserem Geld. Wir brauchen Verlässlichkeit! Deshalb ist jetzt ein klarer Kurs nötig: Das Eurosystem muss reformiert werden; die Stimmgewichte im EZB-Rat müssen sich an der Kapitalbeteiligung orientieren, Deutschland hat heute eine Stimme wie auch Malta – das muss verändert werden; TARGET2-Salden müssen jährlich mit Werten wie Gold, Bitcoin oder handelbaren Wertpapieren ausgeglichen werden; keine Schuldenpolitik durch die Hintertür, die EZB darf weder direkt noch indirekt Schulden der Staaten finanzieren.

Das Mandat der EZB muss wieder gelten, und zwar wortgetreu! Eine solide Geldpolitik schützt Einkommen und Vermögen, sie gibt den Menschen Sicherheit, sie hält unsere Wirtschaft stark. Es braucht klare Regeln und eine Zentralbank, die sich an ihren Auftrag hält! Dafür ist Präsidentin Lagarde die Falsche.

Fernando Navarrete Rojas (PPE). – Mr President, Commissioner, President Lagarde, I want to begin by recognising the successful job the ECB has done under your leadership in ensuring price stability amid major shocks. A soft landing is now within reach – well done.

Dear colleagues, this recognition, however, should not blur our judgement on the digital euro initiative. We all agree on the need to digitally proof the single currency, but does this require giving citizens a direct access to the ECB balance sheet, thus facilitating bank runs? Can untested safeguards like holding limits withstand political and financial stress? Should an innovation be led by the private sector? Is a digital euro based on central bank money the best solution to our dependencies in the payment area?

Regardless of our answers, the potential issuance of a digital euro would be one of the most consequential decisions in financial policy. It will have far‑reaching consequences beyond monetary policy in areas like financial stability, innovation in payments and citizens’ privacy, just to name a few.

Dear colleagues, regardless of our standing on the substance, the only thing we cannot do as parliamentarians is to relinquish our duty by a massive delegation of power in these domains. Don’t you think it is for us, co‑legislators, to co‑decide if and when the conditions for the issuance of a digital euro are met? I do think so, not least because I truly believe in central bank independence when conducting monetary policy.

Jonás Fernández (S&D). – Señor presidente, señora comisaria, señora presidenta, un placer tenerla aquí y aprovechar este debate que tenemos cada año no solamente para discutir los detalles del informe que votamos mañana, sino para hablar de política monetaria y de la actividad del Banco Central Europeo.

Y yo creo que, a la vista de los indicadores, de las estimaciones, de los datos que conocemos, hay aún margen para reducir los tipos de interés, y creemos que por ahí debemos ir porque las tasas de crecimiento además están muy muy apagadas en el conjunto de la Unión Europea.

Pero créanme que en ese margen para reducir tipos de interés hay una notable incertidumbre —hablaba usted de ella previamente—, y no es otra que el nuevo Gobierno de Donald Trump en Estados Unidos y la guerra arancelaria que parece que hemos iniciado. Yo creo que es importante ser contundente: creo que es importante que Europa refuerce su autonomía estratégica y responda con fuerza, y hay instrumentos para hacerlo que pueden no entrar en colisión con el objetivo de estabilidad de precios, y hay muchos.

Pero, hablando de autonomía estratégica, yo quiero decir también a la Comisión y al BCE que mi Grupo, el Grupo de Socialistas y Demócratas, está preparado para negociar el euro digital y esperamos avanzar en los próximos meses, y que, además, si queremos mejorar la autonomía estratégica, tenemos que garantizar la seguridad de nuestro sistema bancario europeo. Y cuando otras jurisdicciones como la estadounidense parece que retrasan sine die la implementación de Basilea, yo creo que en Europa tenemos que empezar a hablar de revisar los regímenes de equivalencia de los bancos estadounidenses: no podemos compartir una carrera de reducción de la regulación en la supervisión.

Pierre Pimpie (PfE). – Monsieur le Président, chers collègues, je vous le dis, le mal est fait. La BCE a déversé sur les marchés des milliers de milliards d’euros. C’était le fameux assouplissement quantitatif. Tel un dealer, elle a pendant des années donné le goût de l’argent gratuit, de la facilité, de l’absence d’efforts, pour mieux ferrer ses clients.

Des pays comme la France sont devenus drogués, dans l’incapacité de se passer du roulement de la dette. Ils ont renoncé à leur souveraineté financière en contrepartie de doses d’argent de plus en plus létales.

Désormais, la BCE cesse d’acheter les dettes souveraines sur le marché secondaire. Le sevrage risque de s’avérer critique. Le piège se referme. Les États sont devenus dépendants de la BCE. L’argent gratuit est devenu très cher et la crise financière s’annonce plausible, sinon probable, dans les prochains mois. J’augure que le drogué suppliera son dealer de lui fournir une injection redoublée.

Quel cynisme de la part de l’Europe de Francfort, qui appelle à la rigueur budgétaire après avoir prôné la relance à toute berzingue! Comme tout dealer responsable de l’addiction de ses clients, la BCE devra rendre des comptes.

Engin Eroglu (Renew). – Herr Präsident! Sehr geehrte Frau Präsidentin Lagarde! Sehr geehrte Frau Kommissarin! Vielen Dank, Frau Lagarde, dass Sie wieder bei uns im Haus sind. Ich freue mich sehr, immer wieder mit Ihnen hier oder im Ausschuss diskutieren zu können. Denn ich denke, der Austausch in so schwierigen Zeiten ist wirklich von Bedeutung und wichtig.

Frau Lagarde, ich möchte auf den aktuellen Bericht eingehen – aber das bezogen auf ein Interview von Ihnen, das ich am 31. Januar in der Financial Times lesen durfte. Herzlichen Glückwunsch zu diesem tollen Interview! Sie haben es gemeinsam mit Frau von der Leyen geschrieben oder gegeben.

Da ist genau das Problem, Frau Lagarde, Sie hören es hier von vielen Kollegen: die Marktneutralität, die Preisstabilität. Viele unserer Kollegen im Haus, die wirkliche Experten für Finanzen sind, haben das Gefühl, dass irgendwo die Neutralität unserer EZB verloren gegangen ist – und dass Sie eine gefährliche Nähe zur Kommission und zu Staatschefs haben. Deswegen halte ich es wirklich für schwierig, dann ein gemeinsames Interview zu lesen, obwohl Sie, und da möchte ich Sie ausdrücklich loben, Frau Lagarde – die Punkte, die Sie in dem Interview benannt haben, sind genau richtig. Sie haben gesagt, wir müssen die Überregulierung im Bankensektor abbauen. Die Antwort ist sehr simpel. Hier in diesem Haus der große Fehler: Taxonomie und ESG – eine völlige Überregulierung des Bankensystems. Dann haben Sie zu Recht bemängelt, dass die Unternehmen nicht ausreichend Finanzmittel zur Finanzierung unserer Unternehmen herausgeben. Ja, harte Eigenkapitalquote runter, das ist die Antwort darauf. Dann ein anderer Punkt: die Energiepreise. Natürlich sind die Energiepreise viel zu hoch. Die Antwort darauf: Wir brauchen mehr fossiles Gas von so vielen Anbietern wie möglich.

Frau Lagarde, meine inständige Bitte: Kommen Sie zur Neutralität zurück und hören Sie nicht auf den linken Teil dieses Hauses. Eine Marktneutralität infrage zu stellen bedeutet, den Euro kaputt zu machen und damit unsere Demokratie an die Wand zu fahren.

João Oliveira (The Left). – Senhor Presidente, Senhora Lagarde, a sua política de combate à inflação a partir do Banco Central Europeu é errada, é injusta e tem de ser alterada. É errada porque quer combater a inflação, esmagando o poder de compra do povo em vez de intervir nos preços. É injusta porque arruína a vida dos trabalhadores e das pequenas e médias empresas, mas garante lucros escandalosos aos bancos e aos grupos económicos. A rapidez da subida das taxas de juro não foi a mesma na descida, e a situação é insustentável. As famílias continuam sufocadas com os custos do crédito à habitação. As pequenas e médias empresas enfrentam dificuldades com o aumento dos custos do crédito, mas o custo de vida não para de aumentar porque os grupos económicos continuam a fixar os preços «à Lagardère» como bem querem e lhes apetece. Os lucros dos bancos em 2024 renderam aos seus acionistas 123 mil milhões de EUR de dividendos. Só em Portugal, em 2024, os maiores grupos económicos e financeiros tiveram 32 milhões de lucros por dia. Senhora Lagarde, mude de política porque com esta política arruína a vida do povo. O caminho certo e justo é o da rápida descida das taxas de juro para aliviar as famílias e as pequenas e médias empresas. O caminho certo e justo é o do combate à inflação, com medidas de controlo, fixação ou tabelamento de preços, sobretudo de bens essenciais, cujos preços aumentaram de forma especulativa nos últimos anos. É esse o desafio que lhe fazemos.

Rada Laykova (ESN). – Mr President, the term inflation originates from price inflation or monetary inflation, the latter referring to an increase in the money supply. Price inflation inevitably follows monetary inflation. Yet, this report does not mention monetary inflation, not even once. Instead, it falsely attributes price increases solely to external factors, such as energy markets and the war in Ukraine. But inflation in the Eurozone is fundamentally driven by monetary policy, and the only institution controlling the money supply is the ECB.

In the ECON Committee, we have observed continued support from some political groups for expansionist monetary policies, primarily to finance deficit spending. Instead of ensuring price stability, the ECB is now expected to counterbalance consequences of unsustainable EU economic policies by printing more money. This approach not only contradicts the ECB statute but also risks worsening the economic situation.

The ECB was created with a single mandate: price stability. Yet today, it has expanded its role to include climate change, economic redistribution and even global peace efforts. Can an institution struggling to fulfil its core responsibility effectively take on such additional tasks?

Rather than relying on continuously monetary expansion, the EU should focus on addressing its economic policy failures, excessive regulations and the unintended consequences of self‑sanctioning. Europeans are increasingly aware of these issues, and they’re questioning the policies that have led to economic uncertainty and the declining value of the euro. They understand exactly where the responsibility lies – within the ECB and this very institution.

Lídia Pereira (PPE). – Senhor Presidente, as taxas de juro estão a descer, mas, mais do que anúncios e notícias, as famílias precisam de sentir um alívio real no custo de vida. Há dois anos, com taxas de inflação acima dos 10 %, só podíamos estar apreensivos. Hoje, esse tempo parece longínquo, mas temos de evitar triunfalismos. A inflação estabilizou, sim, mas ainda está acima do objetivo de médio prazo; e, numa Europa que queremos que cresça em conjunto, não podemos ter taxas de inflação de 1 % num país e de 5 % noutro. Temos de crescer juntos e para isso também temos de agir juntos.

O que também me parece longínquo, mas que recordamos bem, foi o alinhamento da extrema‑esquerda e da extrema‑direita contra decisões de política monetária do Banco Central Europeu. E também nos recordamos bem da cedência dos socialistas a essa pressão mediática. Como sempre, as eleições estiveram à frente do sentido de responsabilidade. Já nós, estamos onde sempre estivemos, no respeito pela independência do Banco Central. Com opiniões, é certo, mas sem ceder à tentação de mentir às pessoas sobre os poderes de umas e outras instituições europeias. A minha opinião não é de agora: a política monetária tem de se normalizar, mas os efeitos das descidas têm de chegar mais rapidamente ao bolso das famílias. E, por outro lado, não podemos esperar tudo do Banco Central Europeu e não fazer a nossa parte, assumindo reformas que teimam em não sair dos relatórios. As pessoas já não precisam de mais anúncios, precisam das consequências desses anúncios. Do BCE espera‑se independência e deste Parlamento espera‑se ação.

Aurore Lalucq (S&D). – Monsieur le Président, Madame la Présidente, Madame la Commissaire, les moments de crise sont de vrais révélateurs: révélateurs de la qualité des personnes, de leur courage, de leur intégrité, de leur fiabilité ou non, révélateurs des lignes politiques et des valeurs profondes qui nous animent, des moments où les masques tombent. Et nous sommes exactement dans l’un de ces moments.

Si les démocrates critiquent, parfois débattent, se débattent, les populistes attaquent toujours. Ils attaquent à la fois la démocratie, les institutions et in fine la souveraineté. Notre monnaie, notre banque centrale n’y échapperont pas. Or, c’est bien sur la Banque centrale européenne que nous avons pu compter à chaque crise. C’est bien la Banque centrale européenne qui anticipe les crises. Et nous, allons-nous les anticiper un jour?

Nous devons défendre la Banque centrale européenne et notre monnaie, nos piliers institutionnels de souveraineté en leur donnant deux outils. Le premier outil est l’euro numérique – je ne comprends pas ce que nous attendons, chers collègues –, le second, le budget pour prendre le relais de la politique monétaire.

J’attends de nous que nous soyons responsables, que nous ne soyons pas populistes. Faisons bien attention à ce que nous disons sur la Banque centrale européenne et l’euro dans le moment actuel.

Angéline Furet (PfE). – Monsieur le Président, Madame Lagarde, le rapport 2024 de la Banque centrale européenne confirme une réalité alarmante: sous prétexte de résilience et de stabilité, la BCE a continué d’imposer des politiques monétaires qui étouffent nos économies nationales. Elle a persisté à maintenir des taux directeurs élevés, pénalisant nos PME et nos agriculteurs, déjà fragilisés par des réglementations environnementales absurdes et un marché unique asphyxiant.

Pire, ce rapport ignore l’essentiel: la souveraineté des États. La BCE, inféodée à la vision fédéraliste, instrumentalise la politique monétaire pour renforcer le pouvoir bruxellois au détriment des nations. Quand elle évoque une approche fondée sur les données, elle oublie les données humaines: chômage, désindustrialisation et détresse rurale qui frappent la France. Au nom de la transition verte, elle encourage des investissements pharaoniques dans des technologies inaccessibles à nos territoires, tandis que nos paysans croulent sous les normes et les coûts énergétiques.

La compétitivité de l’Europe? Un leurre, quand nos entreprises sont étouffées par des prix de l’énergie structurellement plus élevés qu’ailleurs. Nous devons refuser cette fuite en avant technocratique. La France a besoin de retrouver le contrôle de sa politique économique, de sa monnaie et de son destin.

Plutôt que de suivre aveuglément les dogmes de Francfort, exigeons une BCE au service des peuples, pas des idéologies.

Bogdan Rzońca (ECR). – Panie Przewodniczący! Pani Prezes! W imieniu ECR chciałem bardzo jednoznacznie powiedzieć, że ten dokument, który przygotował Parlament, jest lepszy niż dokumenty z poprzednich lat.

Jako ECR uważamy, że Europejski Bank Centralny powinien przede wszystkim brać pod uwagę podstawowe parametry gospodarcze poszczególnych państw. Wtedy jego interwencje będą bardziej wiarygodne. I jeśli jest coś nadzwyczajnego, to oczywiście tak, EBC powinien pomagać. Europejski Bank Centralny musi być odporny na ideologię – absolutnie się z tym zgadzamy. Tak zwany zdrowy rozsądek naprawdę jest bardzo, bardzo potrzebny w działaniach tego banku. Nie powinno być preferencji żadnych firm, żadnych branż. Tylko czysta gospodarka i czyste interwencje banku właśnie w obszary kryzysowe.

Jeśli chodzi o cyfrowe euro, to tu potrzeba więcej informacji, więcej rozmów, więcej debat na ten temat, ale prawdziwa wolność gospodarcza jest zawsze przy użyciu wolnych środków, żywej gotówki – i tego nie możemy blokować. Nie wolno bać się Stanów Zjednoczonych, należy brać stamtąd najlepsze rozwiązania. Wtedy Unia Europejska też będzie lepsza.

Alexander Jungbluth (ESN). – Herr Präsident! Wenn man die Ausführungen heute hört, dann klingt das so ein bisschen, als hätte man ein Meisterwerk der Preisstabilität im EU-Währungsgebiet geschaffen. Aber ist es das wirklich? Nein, es ist ein Blendwerk, das die eigentlichen Versäumnisse dieser Institution verschleiern soll.

Die EZB agiert längst als politischer Akteur und nicht als unabhängiger Hüter der Preisstabilität. Man möge sich fragen, wie das Ziel der Inflationsbekämpfung bei 2 % gelingen soll, wenn die EZB Märkte durch endlose Anleihenkäufe manipuliert. Damit wird keineswegs die Inflation gezähmt, sondern das Prinzip der Marktwirtschaft mit Füßen getreten. Wer zahlt am Ende die Zeche? Es sind unsere Sparer, es sind unsere Rentner.

Ein weiteres Kapitel in diesem Trauerspiel ist der digitale Euro, angeblich eine Ergänzung zum Bargeld, doch in Wahrheit der perfekte Hebel zur totalen Überwachung und Kontrolle. Es ist nichts weiter als eine neue Dimension des staatlichen Eingriffs in das selbstbestimmte Leben der Bürger der Europäischen Union.

Darüber hinaus verstrickt sich die EZB in zweifelhafte Projekte, die wie green bonds daherkommen. Man spricht von Klimaschutz, doch was steckt wirklich dahinter? Ein versteckter Umverteilungsmechanismus, bei dem unsere Bürger die Kosten für unhaltbare Schulden anderer Länder tragen sollen! Es ist ein Bruch europäischer Verträge, und es ist eine klare Beugung des geltenden Rechts.

Dirk Gotink (PPE). – Voorzitter, president, commissaris, de afgelopen jaren hebben mensen in heel Europa koopkracht ingeleverd door de ongekende inflatie. Covid, de Russische invasie, het hakt er allemaal heel hard in, in het spaargeld, de pensioenen en in de algemene bestaanszekerheid. Dat merken mensen iedere dag door de hoge energieprijzen en de voedselprijzen. Deze inflatie in de eurozone is hardnekkig.

Tegelijkertijd zie ik een Europese economie die niet vooruit te branden is door een tekort aan innovatie en een overschot aan detailwetgeving. U noemde het al: de barrières op de interne markt zijn nog veel te groot. Denk aan de territoriale leveringsbeperkingen waardoor onze boodschappen iedere dag te duur zijn in de supermarkten.

Daarbij komt vergrijzing. Hoe gaan wij de zorgkosten en pensioenen financieren in de komende jaren, zeker in landen waar de pensioenen worden betaald uit de lopende begroting? Hoe houdbaar is dat op de lange termijn?

En als klap op de vuurpijl hebben we Trump die op het punt staat om een waanzinnige handelsoorlog te ontketenen waardoor het dagelijks leven van honderden miljoenen mensen duurder kan worden. Dat zijn gewoon ordinaire Trump‑belastingen.

In deze cocktail van onzekerheid heeft de ECB een sleutelrol om de inflatie te beteugelen en de randvoorwaarden te scheppen voor stabiele economische groei. Dat is haar oorspronkelijke mandaat. Ik zou dan ook de ECB en ook de Commissie willen oproepen om aan dat oorspronkelijke mandaat te hechten. Ook wil ik graag collega van Brug complimenteren voor het degelijke verslag dat zij hierover heeft geschreven.

Matthias Ecke (S&D). – Herr Präsident! Frau Präsidentin Lagarde! Liebe Kolleginnen und Kollegen! Die Inflationsraten im Euro-Währungsgebiet sind gesunken, von einem Rekordhoch von 10,6 % auf nun nahe 2 %. Das ist erst einmal ein wichtiges Signal der Stabilität in Europa und eine gute Nachricht für Millionen von Menschen. Denn gerade wer ein kleines oder mittleres Einkommen hat, der musste unter der Kostenexplosion der letzten Jahre besonders leiden. Inflation ist nicht nur eine ökonomische Frage, sondern auch eine soziale Frage. Und deswegen ist es richtig, den Kampf gegen die Inflation nicht allein der EZB zu überlassen.

Die von Olaf Scholz geführte deutsche Bundesregierung zum Beispiel hat das erkannt und hat mehr gegen steigende Preise unternommen als alle anderen Regierungen in der EU – mit Energiepreisbremsen, Entlastungspaketen und einem günstigen Deutschlandticket. Das war klug und richtig. Als Sozialdemokraten sagen wir auch deutlich: Preisstabilität ist wichtig, aber reicht allein nicht aus. Die EZB muss auch zur wirtschaftlichen und sozialen Entwicklung der EU beitragen. Umso mehr freue ich mich, dass unsere diesbezüglichen Forderungen jetzt Gehör gefunden haben und der Bericht entsprechend angepasst wurde, was den Bereich secondary mandate angeht. Mit Trumps Politik der Willkür-Zölle drohen uns nun allerdings neue Preissteigerungen und Krisen. Wir erwarten, dass die EZB ihrer Verantwortung für Europas wirtschaftliche Entwicklung auch dabei gerecht wird.

Γεάδης Γεάδη (ECR). – Κύριε Πρόεδρε, την τελευταία τετραετία στην Ευρωπαϊκή Ένωση καταγράφηκαν εξαιρετικά υψηλά επίπεδα πληθωρισμού, με αποτέλεσμα να μειωθεί η αγοραστική δύναμη των σταθερών εισοδημάτων, των αποταμιεύσεων και των συντάξεων, στρεβλώνοντας την αποτελεσματική κατανομή των πόρων με αρνητικό αντίκτυπο στην οικονομική σταθερότητα. Μπορεί ο πληθωρισμός, σύμφωνα με την έκθεση να έχει υποχωρήσει, όμως οι επιπτώσεις ακόμα παραμένουν βαθιά χαραγμένες στους πολίτες.

Παραδείγματα: πρώτον, η αύξηση των τιμών ενέργειας με αλυσιδωτές επιπτώσεις στην οικονομία. Δεύτερον, τα υψηλά επίπεδα πληθωρισμού επηρεάζουν δυσανάλογα τα νοικοκυριά με χαμηλότερα εισοδήματα, τα οποία ξοδεύουν μεγαλύτερο ποσοστό του προϋπολογισμού τους σε είδη πρώτης ανάγκης, δημιουργώντας αναπόφευκτα συνθήκες δυσπραγίας, φτώχειας και κοινωνικού αποκλεισμού.

Ως εκ τούτου, επιβάλλεται προσοχή και καλός σχεδιασμός για το μέλλον, με πολιτικές που δεν θα θυσιάζουν τους πολίτες στον βωμό των συμφερόντων των τραπεζών, όπως το 2013 που από άλλη θέση κλέψατε τα χρήματα των καταθέσεων των Κυπρίων πολιτών. Τέλος, αναφορικά με το ψηφιακό ευρώ, υπογραμμίζω τη θέση μας ότι πρέπει να χρησιμοποιηθεί ως συμπλήρωμα του χαρτονομίσματος και σε καμία περίπτωση ως αντικατάστασή του.

Kinga Kollár (PPE). – Tisztelt Elnök Úr! Örömmel olvasom az EKB-jelentésben, hogy Európa visszatért az alacsony infláció világába. Így lehetőség nyílik a kamatok csökkentésére, ami olcsóbb lakás- és vállalati hiteleket jelent.

Ez jó hír Európának. Azonban ki kell jelenteni, hogy Magyarországon a különutas gazdaságpolitika kudarcot vallott a vásárlók kezelésében. Ennek az árát pedig az emberek fizették meg. Öt év alatt 81%-kal emelkedett az élelmiszerek ára, az inflációt csak 13%-os rekord alapkamattal sikerült valamelyest megfékezni.

Miközben az állam évek óta rekordmagas hiány mellett működik, tollvonással töröltek kritikus állami beruházásokat. Nem jut elég forrás kórházakra, az iskolákra, az utakra és vasútfejlesztésre.

Az Orbán-rezsim kegyeltjeinek persze továbbra is nyitva vannak az állami pénzcsapok, így jutott például méregdrága irodaházakra. És a választási költekezés még csak most fog kezdődni Magyarországon.

Pedig a túlköltekezés hatalmas kamatteherrel párosul. Csak tavaly a kormány 4000 milliárd forintot költött kamatokra, többet mint a teljes egészségügyre.

Ezért minden magyar ember érdekében és nevében felszólítom a magyar kormányt, hogy ne gyermekeink és unokáink terhére próbálják megtartani hatalmukat.

Megalázó szavazatvásárlás helyett a Tisza hazahozza az uniós forrásokat, és magyarok millióival együtt épít egy modern, békés és élhető Magyarországot.

Carla Tavares (S&D). – Senhor Presidente, Senhora Presidente Lagarde, Senhora Comissária Maria Luís Albuquerque, no artigo que assinou há duas semanas no Financial Times, com a Presidente Ursula von der Leyen, assegurou que está pronta para fazer tudo o que seja necessário para trazer a Europa de volta. Essa foi a atitude que salvou o euro em 2010 e evitou uma crise financeira durante a COVID. Nessas crises, o BCE soube apoiar as políticas gerais da União, tal como está escrito no seu mandato secundário. É preciso desistir dos dogmas. Não podemos combater a inflação de forma cega ou deixar que a neutralidade de mercado seja um princípio escrito na pedra. Precisamos de ação e resultados. Por exemplo, ter uma coordenação mais próxima da política monetária e orçamental da União ou usar o mandato secundário para sermos mais ambiciosos nas políticas e instrumentos monetários. O atual clima de incerteza nos Estados Unidos abre também uma oportunidade para reforçarmos a promoção internacional do euro como uma alternativa credível ao dólar e avançarmos mais rapidamente no euro digital. Como refere no seu texto no Financial Times, em que me revejo, há muito em jogo. Não podemos mais desperdiçar as nossas forças com desvantagens autoimpostas.

Regina Doherty (PPE). – Mr President, Commissioner, President Lagarde, we are here today discussing the ECB annual report. At times of enormous uncertainty, following on from Canada, Mexico and China, President Trump is threatening the EU with steep new tariffs. Billions of euros of investments and thousands of jobs depend on the trade between Europe and the United States. I have heard the concerns from people and businesses in Dublin about how America may soon be closed for business.

European Member States, including my own, have strong historic, cultural and huge economic links with the United States, and we need to do everything we can to preserve this, and ensure that EU‑US relationships remain functional. Yet there are those who would have us turn away from one of our closest historic allies. And this literally would be the definition of cutting off your own nose to spite your face.

President Lagarde, I want to welcome your words in the Financial Times recently with President von der Leyen, where you highlighted the need for Europe to be better at helping businesses to grow and thrive. We need to see the reforms to boost competitiveness and innovation.

I also want to welcome the work that has taken place to bring down inflation by the ECB. This is why the ECB can now reduce our interest rates, which is very welcome. But for this to continue, all the Member States must be prudent. The time for talk is over and the time for action absolutely is now.

Angelika Winzig (PPE). – Herr Präsident! Frau Kommissarin! Frau Präsidentin Lagarde! Krieg, Energiekrise, unzuverlässige Lieferketten und steigende Lebensmittelpreise haben in den letzten drei Jahren für die Europäerinnen und Europäer zu einem massiven Kaufkraftverlust geführt. Und eines darf man auch nicht außer Acht lassen: Sie haben in einigen Mitgliedstaaten auch zu politischen Veränderungen geführt.

Während die US-Notenbank frühzeitig gehandelt hat, hatte man den Eindruck, die EZB hat zu lange gezögert – mit spürbaren Folgen für die europäische Wirtschaft und für die Bürgerinnen und Bürger. Eine Währung ist nur so stark wie die Wirtschaft, die hinter ihr steht. Daher muss Europa seine Wettbewerbsfähigkeit steigern, um den Euro langfristig abzusichern. Weniger Bürokratie, mehr Innovationen, gezielte Investitionen für Wirtschaft und Banken braucht es jetzt dringend, um nachhaltiges Wachstum zu sichern.

Auch Sie, Frau Präsidentin, werden dazu einen entscheidenden Beitrag leisten. Nur mit echten Reformen sichern wir Europas wirtschaftliche Zukunft und sorgen dafür, dass Wohlstand nicht nur ein Versprechen bleibt, sondern für alle Europäerinnen und Europäer auch spürbar ist.

Interventions à la demande

Maria Grapini (S&D). – Domnule președinte, doamnă comisară, doamna Lagarde, am văzut că ați fost felicitată de colegi și am fost foarte atentă la ce ați spus dumneavoastră. Între altele, ați criticat gospodăriile că nu cheltuie mai mult. Doamna Lagarde, știți câți oameni sunt în sărăcie? Cum să cheltuiască mai mult când nu știu ce se întâmplă, când n-au suficienți bani, decât să-și plătească lumina, curentul?

Din punctul meu de vedere, BCE n-a făcut cât ar trebui să facă, din punctul de vedere al politicii monetare, din punctul de vedere al presiunii care e suportată de cei mai săraci, de fapt, inflația, dobânzile. Știți cât e dobânda în țara mea, în România? Cum? IMM-urile sunt spulberate.

Deci, din punctul meu de vedere, dumneavoastră sunteți responsabili. Ați spus că veniți la întâlniri cu noi. Foarte bine, dar aveți niște specialiști pe salarii foarte mari acolo. Ei trebuie să facă politica monetară. Ei trebuie să ne asigure existența și rezistența în piața internă a economiei, până la urmă, pentru a putea să fim în competiție globală.

Vytenis Povilas Andriukaitis (S&D). – Posėdžio pirmininke, gerbiama Europos Centrinio Banko pirmininke ponia Lagarde, komisare. Suprantama, didelis pasiekimas, kad suvaldyta infliacija, be galo didelis pasiekimas, kad garantuotas euro stabilumas. Be galo svarbu toliau atkreipti mums visiems dėmesį į be galo sudėtingą tarptautinę aplinką. Jungtinių Amerikos Valstijų dabartinė administracija grasins tarifais. Komisija Jean’o-Claude’o Junkerio laikais jau turėjome patirtį, kaip atremti Trumpo tarifų karą. Dabar taip pat reikia galvoti apie tai. Reikia būtinai galvoti apie kuo didesnes pastangas kurti bankų sąjungą Europos Sąjungoje. Priešingu atveju mes labai nesuvaldysime bankų nesąžiningos veiklos. Reikia paskatinti skaitmeninio euro įvedimą, ir tai reikia daryti ypatingai greitai, nes šiuo atveju mes turime atremti mums gresiančias tikrai tarifų karų, kainų karų situacijas. O tuo tarpu bendros pastangos Europos Centrinio Banko ir nacionalinių bankų turi būti stiprinamos.

Siegbert Frank Droese (ESN). – Herr Präsident! Madame Lagarde, ich hatte Ihrem Bericht gelauscht, und ich muss ehrlich sagen, ich hatte Mühe, nicht einzuschlafen.

Wenn wir zu unserem wichtigsten Partner, den USA, schauen: Dort gibt es Aufbruch, dort wird aufgeräumt, dort wird gerade das goldene Zeitalter ausgerufen. Die USA bereiten gerade ihren Platz in der neuen Welt des 21. Jahrhunderts. Lagardes Bericht fehlt jede positive Vision für die Zukunft Europas: kein Wort zum Ende des Green Deals durch Donald Trump, kein Wort dazu, dass BlackRock, Vanguard – große Investoren – in Zukunft nicht mehr in grünen Klimairrsinn investieren werden.

Ein bisschen Resilienzgedöns, ein bisschen Digitalisierungsblabla und Wettbewerbsappelle sind zu wenig. Madame Lagardes Rede war blutleer und hoffnungslos. Es kann einem damit nur angst und bange werden um die Zukunft Europas.

Lukas Sieper (NI). – Herr Präsident! Liebe Menschen Europas, heute haben wir hier über die Europäische Zentralbank gesprochen. Und ja, auch im Namen der Partei des Fortschritts muss ich sagen: Kritik ist berechtigt. Die EZB beeinflusst das Leben von Millionen von Menschen und muss sich auch solch einer Debatte stellen. Aber während ich hier aus der politischen Mitte dieses Hauses von den Moderaten konstruktive Vorschläge wahrgenommen habe, höre ich von den Extremen, die EZB sei voreingenommen, politisch motiviert gesteuert. Diese Behauptung ist nicht nur falsch, sie ist gefährlich. Aber diese Rhetorik passt ja zu Ihnen: Ja, alle sind miteinander verschworen, wollen es dem kleinen Mann schwer machen und erlauben sich auch noch, das Klima retten zu wollen.

Ich sage Ihnen: Wer seine ganze Politik darauf aufbaut, das Vertrauen in die demokratischen Institutionen zu untergraben, ist kein Demokrat. Frau Lagarde, ich habe 26 meiner 27 Lebensjahre mit der EZB gelebt. Sie wissen, da ist immer noch Luft nach oben. Aber weiter so!

(Fin des interventions à la demande)

Maria Luís Albuquerque, Member of the Commission. – Mr President, honourable Members, I am pleased to see that there is a significant convergence in the views of our three institutions on many aspects of the report. As already mentioned in my introductory remarks, the EU has high ambitions and urgently needs to regain competitiveness. This requires massive investments and, hence, financing.

Open, deeper and more integrated capital markets will be key to improve the competitiveness of the EU economy. This is why we will present a savings and investments union strategy in the coming weeks. The savings and investments union will leverage the enormous wealth of European savers to create growth in Europe. Fundamentally, greater liquidity pools and the EU markets operating at a greater scale are absolutely necessary if we want to see stronger economic growth, compete internationally and finance our political ambitions. There is simply no other way.

As a last point, let me also recall the importance of making progress on the digital euro, given the challenges we face in terms of innovation and global competition. Today, Europeans increasingly pay digitally, and this trend will continue, reflecting the digitalisation of our societies. But, at this moment, we don’t have a European offer that allows for digital payments across the EU and for all the use cases. In fact, Europeans mainly rely on a few non-European providers, as was mentioned here today.

The Commission stands ready to support efforts to accelerate the negotiations. It is equally important to progress on the proposal for the legal tender of cash. These regulations will safeguard the acceptance and availability of cash for our citizens. Also here, the Commission stands ready to support the ongoing discussions on this, so that we can make swift progress.

Christine Lagarde, Présidente de la Banque centrale européenne. – Madame la Commissaire, en ayant pris note de vos observations…

Let me now move back to English, but I thought a little bit of French would not hurt, because you are still around, Mr Vice-President, although you’re leaving – that’s okay.

So let me tackle three points that I would like to address in response to your many, many questions, and with gratitude for some of your candid points, some of your documented points, but certainly some that you have expressed with great passion. And I’m very attentive and very sensitive to it.

Let me just make a few points about the mandate under which we operate, so a little bit about how we took the fight against inflation and finished with the digital euro – and I think that I will have tried to focus on those areas where you have really yourself tried to target your questions.

So, on my first point, I am constantly reminded of the mandate that we have under Article 127 of the Treaty we know – at the European Central Bank at all levels of the institution – that our primary objective is price stability. There is no debate about that. We also know that there is a second paragraph, which refers to secondary objectives, which have to do with your economic objectives and how we can support those objectives. But this second article is very specific and starts with ‘without prejudice to price stability’. So it goes without saying that price stability is the driving force, and that alternative options have to be without prejudice to that driving force of our action. Price stability is what is guiding us.

Now, I would like to just mention, because this has been also raised and many of you have actually raised it, this issue of market neutrality. And you, Madam rapporteur, focused some of the remarks and some of the points in the resolution on this aspect, and I am delighted that you could reach a consensus as to exactly what the report would say.

But I just want to mention the fact that market neutrality has not always been absorbed invariably, and there have been moments in the history of the ECB, prior to my time, when market neutrality was derived from because it was necessary and appropriate in order to deliver on price stability. What we are doing when we pay attention in particular to the externality of the risk of climate change, is that we are looking after and securing the balance sheet of the ECB to make sure that the risks, which are not otherwise reflected by market mechanisms, can actually be embedded into our management of the portfolio. Now, this, in many ways, is a story of the past because, as you know, we are no longer in the business of purchasing assets and in particular not purchasing corporate assets anymore.

A few points about the fight against inflation, because many of you have actually mentioned this – one of you actually said that we had done a good job and, you know, those are moments when you enjoy the minute and a half that was given to I think it was Mr Navarrete, who actually said that he was satisfied with the work that we had done. And yes, we did take the fight against inflation and, as your resolution report indicates, we could have started earlier. We started effectively signalling that we were going to take action in December 2021 and then we took very vigorous action by actually raising interest rates by 450 basis points in a fast, robust way, and more so than any time before. And we have now seen the result of it. One of you mentioned that we went from a high of 10.6 % in October 2022, which was the highest reading that we had on an average basis, not on a per country basis, I know, because some Member States have much higher and have had much higher inflation, but on average we went from that 10.6 % in October 2022 to 2.5 % now in January. So I’m not saying that the fight is over because we need to get to the target that we have, but we have closed the gap significantly by taking robust and rapid measures.

And you cannot compare one central bank to the other. The circumstances are different. The fundamentals of the economy are different. The rates of inflation suffered by different countries are different. And the tools that are available are different as well. But, you know, I don’t take huge satisfaction about what we have done, but I think that for all European compatriots, certainly there has been a difference. Does it mean to say that prices have gone down? No. And the level of prices is something that is very different from inflation. Prices have gone up, their level has stayed high. And the inflation that we are now trying to keep under control, hopefully at 2 % in the course of 2025, that is the measure by which the level continues to go up in a relatively modest way and the one that we have defined as our price stability objectives.

Let me now touch on a point that many of you have addressed, and that is the issue of the digital euro. Let me preface that with the fact that the digital euro is not intended to replace cash – absolutely not. Cash is around, will be around, no question about it. So much so that we are currently – as you may have seen – working on the new face of our European banknotes so that the euro will have a more relatable aspect to it, so that a European – and non-European for that matter – using the euro will actually appreciate the aspects that embody Europe, whether it is by way of reference to culture or by way of reference to nature. The jury is still out as to what it will end up being, but certainly cash will be around.

Some of you have mentioned that the digital euro is a tool of our European sovereignty, and I would beg you to keep that in the back of your mind when you have that debate in Parliament. Many of you have called for that debate. I heard honourable Member of Parliament Ferber mention that. I have heard an honourable Member Navarrete referring to the debate and calling for it, actually. I have heard many other Members ask for that debate to take place. So please, as quickly as is possible, let us have that debate, because the digital euro is a necessary tool of this sovereignty. It’s not the only one. It needs to operate at retail level, at wholesale level, and it needs to be combined so that we have solidity of payment infrastructure, as well as the tools that will enable us to effect payment on a cross-border basis.

The issues that have been referred to as issues to be debated – financial stability, innovation, privacy, threshold – all of that needs to be debated. Do not assume that it is something that the European Central Bank will decide from the main building sitting on the River of Main in Frankfurt. No, we are waiting for you and the ball is in your camp. I very much hope that the honourable rapporteur will actually mandate as many of goodwill around the table as possible in order to move that debate. I would very much dislike to see myself in this position in a year’s time, still arguing that the digital euro is an instrument of our sovereignty. A lot of things are going to happen between now and a year from now. We should not underestimate the geopolitical movements, fractures, cracks and divides that we might be seeing in the future.

For that, we should be equipped with the digital currency that will help the defence of our sovereignty – and I turn to you who didn’t find me very passionate about the future, but you’re not listening to me really. Doesn’t matter. I passionately believe that we have, internally in Europe, barriers that we have imposed upon ourselves that we can remove, whether it is in the goods circulation equivalent of 40 % custom duties that we impose on ourselves, as opposed to 15 % inside the United States, or 110 % equivalent of custom duties that we impose on ourselves on services. We have the tools at hand to be more productive, which will lead to better competitiveness. So I’m very passionate about that. But my real passion is to deliver on our mandate, which is price stability for all our citizens.

IN THE CHAIR: SOPHIE WILMÈS
Vice-President

Anouk Van Brug, rapporteur. – Voorzitter, vandaag spreekt de Europese politiek met een duidelijke stem. De ECB toont een sterke ambitie op het gebied van klimaatverandering, maar lijkt de impact van geopolitieke spanningen op inflatie te onderschatten. Wij roepen u daarom op: neem geopolitiek serieus.

De wereld verandert snel. Oorlog en conflict hebben de afgelopen jaren keer op keer laten zien hoe ze inflatie kunnen aanwakkeren en onze economie kunnen ontwrichten. De energiecrisis die volgde op de Russische invasie in Oekraïne was geen incident, maar een waarschuwing. Geopolitieke instabiliteit zal de komende jaren een grote rol blijven spelen in de economie.

Daarom is het essentieel dat de ECB scenario’s ontwikkelt en voorbereid is op toekomstige crises. Want wanneer je hard werkt in Nederland, moet je leuk kunnen leven en je geen zorgen hoeven maken over een nieuwe rekening of een wasmachine die kapotgaat. Het is tijd om de geldzorgen van de mensen thuis serieus te nemen. Dit is mogelijk wanneer de ECB geopolitieke risico’s serieus neemt, maar ook haar eigen rol scherp bewaakt.

Echte onafhankelijkheid betekent: geen politiek bedrijven. De ECB heeft één taak: prijsstabiliteit handhaven. Dit vereist strikt marktneutraal beleid zonder dat de ECB politieke keuzes maakt in haar opkoopprogramma’s en andere instrumenten. De ECB mag zich niet laten leiden door politieke druk of ideologische agenda’s — dat ondermijnt haar geloofwaardigheid en effectiviteit.

Wij vragen u dan ook: behoud de neutrale rol van de ECB. Laat de financiële markten functioneren zonder onnodige verstoringen en zorg ervoor dat de ECB onafhankelijk blijft in daden, niet alleen in naam. Alleen zo kunnen we inflatie effectief bestrijden en de koopkracht van ons allemaal beschermen.

President. – The debate is closed.

The vote will be held tomorrow.

14. Escalation of gang violence in Sweden and strengthening the fight against organised crime (debate)

Maria Luís Albuquerque, Member of the Commission. – Madam President, honourable Members, the horrendous attack in Örebro – one of the worst attacks in Swedish history – has shocked as all to the core. And I would like to express my heartfelt condolences to the families and friends who lost their loved ones. Such attacks have no place in Europe.

The first thing European citizens expect from us is protection. That is also true when it comes to the topic of today’s debate: gang violence. Gang violence is not only a big threat to life and security; it is a huge threat to democracy and society too, and it is part of the bigger structures of organised crime infiltrating our legal economies and processes.

As outlined by President von der Leyen at the beginning of this mandate, there can be no hiding place for organised crime in Europe, either offline or online. The threat to our internal security by organised crime networks is unprecedented and increasingly visible. And it is not only an impression that we get following the news – the figures speak for themselves. Last year, Europol identified 821 high-risk criminal networks active in the EU. Nearly 90 % of them have infiltrated the legal economy, running businesses, investing in real estate. They are strong and operate freely across borders, including online. They are active in drug trafficking, fraud, property crime, migrant smuggling, and trafficking in human beings. To avoid prosecution, these groups are increasingly recruiting young people to perpetrate even violent crimes.

Most of this violence is directly linked to organised crime and drug trafficking. Drug-related violence has spread from secluded port areas to the streets of Swedish cities, as criminal organisations fight for control over distribution networks. Innocent bystanders are often caught in this violence, underscoring the urgency of action.

We see similar patterns across Europe: drug markets in Brussel’s streets, gang wars in Germany and France, threats to port workers in the Netherlands, drug-related killings in Spain and the Western Balkans. This is a global phenomenon that needs to be tackled through stronger cross-border cooperation within the EU and with third countries. Drugs are now Europe’s most lucrative criminal market, worth EUR 31 billion annually, and 70 % of organised crime groups use corruption to enable their crimes.

The Commission will put forward an EU strategy against corruption. Money is the lifeblood that drives and sustains all these criminal activities. Our response to organised crime must be clear: disrupt their finances, take down their bankers and brokers, tackle the infiltration in the legal economy and disrupt their corrupt networks.

Since last spring, we have new confiscation rules to eliminate the profits of criminal groups. We need to follow the money to get to those who are behind the crimes. Any investigation should pursue arrests and asset recovery as two sides of the same coin. With Eurojust we need to enhance judicial cooperation within the Union and beyond its borders. The rapid transposition of the new Asset Recovery Directive will provide stronger tools to confiscate illicit profits. It will also strengthen the asset recovery offices to identify, trace and freeze criminal assets.

The Commission will step up the fight against serious and organised crime with the forthcoming European internal security strategy. The strategy will cover all forms of organised crime online and offline. We plan to involve all stakeholders in a ‘whole of society’ approach to be more effective in dismantling high-risk criminal networks and their ringleaders. We will propose to revise the rules to fight organised crime, starting with an updated definition of ‘organised crime’ and strong investigative tools. The strategy will build on the serious and organised crime threat assessment that Europol will present in the spring. We will enhance Europol support to Member State investigations, especially in areas where the authorities need it the most. We will strengthen Frontex to ensure it can protect our borders in all circumstances.

As regards the online dimension, online service providers have a duty to protect their users online. We will continue to strongly enforce the Digital Services Act, which establishes effective measures for tackling illegal content and mitigating societal risks online. And we will continue to step up our efforts in disrupting the recruitment of young people online by organised criminal gangs. Next year we will also set out the framework for an EU critical communication system to strengthen internal security and preparedness.

We know that many of the threats to our internal security originate from outside the EU. Security within the Union cannot be achieved without targeted and comprehensive external action through third country partnerships that also benefit our security. The strategy will also address cross-cutting security challenges and hybrid threats such as border management, the weaponisation of migration, and countering sabotage and espionage.

Honourable Members, as one of the first deliverables of the new internal security strategy, the Commission will launch a new EU action plan against firearms trafficking with more pressure on criminal markets and safeguarding the illicit market. Illicit firearms feed organised crime within the EU, and are regularly used by lone actors. The EU already has rules on the illegal possession and acquisition of firearms and rules on the legal import, export and transit of firearms. However, there are no EU rules on the definition of criminal offences and penalties on firearms-related crimes. This has to change.

The fight against drug trafficking must also remain a top priority. For this, it is paramount to tackle the constant inflow of drugs to our continent, mainly through our ports. Over 90 million containers are processed yearly in EU ports. Only a small percentage are inspected, leaving room for criminal exploitation. Sweden, as a major maritime destination and transit country is not immune to this threat. We will build on the work set out in the EU roadmap and the EU Ports Alliance to dismantle criminal business models and to shut down supply routes. Currently, 33 ports, including Helsingborg, Gothenburg and Stockholm are members, and the list is growing.

The challenges facing the Union are increasingly complex, interconnected and transnational. This means that we need to approach security in an integrated way, taking all relevant threats, including hybrid ones, into consideration. Internal security is our shared responsibility, and we want the forthcoming strategy to be also the Parliament’s strategy. We count on your cooperation to make rapid progress on our common agenda.

Evin Incir, on behalf of the S&D Group. – Madam President, politics must join forces across party lines to break the cycle of violence. This painful reality is the reason why I decided to engage in politics 25 years ago. Since then, the situation has unfortunately only worsened. More children have become both victims and perpetrators to violence.

Last year alone, 44 people lost their lives to shootings, and, alarmingly, the number of children under 15 suspected of involvement in murder cases surged by 200 % in comparison to the year before in Sweden. Just in the first month of this year, we witnessed 33 bombings. The perpetrators are nowadays so young that the term ‘child soldiers’ has become a buzzword. Gang violence is creeping down in age, instilling fear in our neighbourhoods and robbing children of their childhood. No one should wake up to a sound of a bomb, instead of a gentle ring of a clock. And let’s be clear – no one is born a child soldier.

Our actions as lawmakers matter. The current Swedish right‑wing and far‑right Government looks to Denmark’s hard gang laws – like visitation zones and harsh penalties – but neglects the essential ingredient of Denmark’s success: social investments in schools and communities. A school that provides every child with the opportunity to succeed is our most powerful weapon against gang recruitment. It is also absurd that criminals in 2025 can start businesses and exploit the Swedish welfare system, while the parties in government and their supporters in Sweden Democrats are watching.

Where is the crisis commission that we have asked for? Also, the EU has an important role in putting an end to the cross‑border gang crime, which poses a serious threat to all our Member States. According to Europol, 70 % of gangs in the EU operate in at least three countries simultaneously. I’m glad that the conservative EPP Group has woken up and realised the importance of acting, but yet they have only presented what they call ‘European security pact against organised crime’, which is more or less a copy paste of former Commissioner Ylva Johansson’s ‘EU roadmap to fight organised crime and drug trafficking’.

Instead of creating new titles on existing measures, we social democrats demand a specific strategy against recruitment, with a coordinator working alongside European authorities such as Europol and Eurojust to prevent children and young people from falling into the claws of the gangs. Politics must unite across party lines, and so must other parts of the society, such as the social media platforms.

We therefore need an EU anti‑organised crime law, including addressing the social media platforms responsibilities. It is unacceptable that these platforms are exploited for recruiting child soldiers. Tech giants must be held accountable. Their platforms are today’s modern streets and squares. It is about time for the society to get as organised as organised crime. The society must always be stronger than organised crime.

Fabrice Leggeri, au nom du groupe PfE. – Madame la Présidente, la Suède, autrefois un modèle de sécurité en Europe, est aujourd’hui gangrenée par la violence de gangs. Fusillades en pleine rue, explosions criminelles, quartiers entiers sous l’emprise de mafias: ce chaos est le résultat direct d’années de laxisme migratoire et d’un aveuglement idéologique coupable.

Les chiffres parlent d’eux-mêmes. En 2023, la Suède a enregistré 53 homicides liés aux guerres de gangs, un taux parmi les plus élevés d’Europe. 76 % des membres des principaux gangs sont des immigrés ou des enfants d’immigrés. Cette criminalité, alimentée par l’immigration massive et l’échec total de l’intégration, transforme des pans entiers du pays en zones de non-droit.

Même le ministre suédois de la justice reconnaît aujourd’hui que cette violence prendra plus d’une décennie à éradiquer. Après des années de laxisme, le gouvernement suédois tente désormais de sauver les meubles en envisageant l’expulsion des criminels étrangers. Car la responsabilité de ce fiasco sécuritaire est politique.

Il faut rappeler que c’est la famille politique d’Ylva Johansson, ancienne commissaire européenne aux affaires intérieures, qui a gouverné la Suède en appliquant cette politique d’ouverture migratoire sans contrôle. Cette même commissaire, qui expliquait, il y a encore quelques mois, que l’Europe n’a pas de problème d’immigration, porte une lourde responsabilité dans cette catastrophe sécuritaire.

Nous devons tirer les leçons de cet échec suédois et être fermes. Ce qu’il faut à présent, c’est une impunité zéro pour les criminels étrangers et une expulsion immédiate. Il nous faut un véritable réarmement juridique et matériel des forces de l’ordre. L’Union européenne n’a plus le choix, elle doit mettre fin à l’immigration massive qui nourrit l’échec de l’intégration et alimente cette violence.

La Suède est un avertissement. Si nous n’agissons pas maintenant, la France, par exemple, connaîtra le même destin. Ce que nous attendons aujourd’hui, c’est une Europe qui protège ses peuples, pas une Europe du chaos migratoire et du laxisme sécuritaire.

Charlie Weimers, on behalf of the ECR Group. – Madam President, broken shards of glass hang like jagged teeth from a shattered window, the frame barely holds. Inside colourful children’s posters decorate the walls. A criminal threw an explosive device into a child’s bedroom. One man was injured. This isn’t fake news – this is a daily occurrence. This is last night in Sweden.

Gang criminals have vowed in secret chats to make 2025 the worst year ever for bombings. Only Albania has more gun deaths than Sweden. Albania!

A few years ago, Sweden’s former security chief admitted: ‘We are in a low‑intensity civil war’. Yet Swedish media still plays word games. ‘Gate explodes in Nacka’. Did the gate self-destruct? ‘Missed shooting in Växjö’: a miss because the bullet hit the wrong innocent?

Meanwhile, the Swedish Social Democrats are criticising the tough measures that we in the liberal conservative majority in Sweden are taking against criminality, like visitation zones. Well, go have a debate with your own party that suggested that half of Stockholm was to be done a visitation zone. ‘Flip‑flop’ is what it’s called.

Now, this is what the EU must do. Acknowledge that this is the result of uncontrolled immigration. Accept that we must secure the border. And yes, as the EPP finally has joined our stance, to limit free movement of criminals under Schengen. Act decisively to deport the illegals, fake asylum seekers and terrorist sympathisers. It must be done today. It should have been done yesterday.

Alexander Sell, im Namen der ESN-Fraktion. – Frau Präsidentin! Schießereien, Vergewaltigungen, Bombenterror: Wer das Ergebnis linker Politik sehen möchte, muss nach Schweden schauen – jeden Tag Bombenanschläge durch afrikanische Banden, jedes Jahr 10 000 schwedische Frauen vergewaltigt, Malmö gefährlicher als Bagdad.

Die Gewalt in Schweden ist das Ergebnis linker Migrationspolitik. Das haben die Wähler dort begriffen und unsere Kollegen von den Schwedendemokraten in die Regierung gewählt – trotz jahrelanger Beschimpfungen durch Politik und Medien. Die Propaganda wirkt nicht mehr. Die schwedischen Wähler haben den Ernst der Lage erkannt. Aus Schaden wird man klug.

In der Regierung setzen die Schwedendemokraten jetzt das Programm um, für das in Deutschland nur die AfD steht: Grenzkontrollen, Sachleistungen, Remigration. Und zwar in Koalition mit den Christdemokraten. Wir müssen von den Schweden lernen. Auch in Berlin, Hamburg oder Duisburg gibt es Stadtteile, die von kriminellen Banden beherrscht werden: jeden Tag zwei Gruppenvergewaltigungen, allein in Berlin zehn Messerstechereien täglich.

Wir müssen das ändern. Wir brauchen den Mut der Schweden in deutschen Wahllokalen. Am 23. Februar gilt: Schluss mit Feigheit und Brandmauer. Es ist allerhöchste Zeit.

Lena Düpont (PPE). – Frau Präsidentin! Frau Kommissarin! Über 70 % der kriminellen Netze arbeiten grenzüberschreitend. Sie verdingen sich in Menschenhandel, Drogenhandel, Geldwäsche – zunehmend gewaltbereiter und brutal. Sieben der zehn gefährlichsten Netzwerke in Europa – im Übrigen 55 insgesamt an der Zahl – umfassen mehrere Nationalitäten. Acht von zehn arbeiten unter dem Deckmantel legaler Unternehmen. Organisierte Kriminalität war und ist immer eine immense Gefahr für unsere Ordnung, unseren Rechtsstaat, für unsere Wirtschaft, unsere Gesellschaft.

Genauso wie diese Netzwerke jedes Schlupfloch, jede Möglichkeit nutzen, müssen auch wir das tun. Unsere Antwort muss koordiniert, unmissverständlich und vor allen Dingen unnachgiebig sein. Entziehen wir ihnen über die Arbeit der AMLA mit der Beweislastumkehr und der Konfiszierung von Vermögen endlich die finanzielle Grundlage. Unsere Sicherheitsbehörden müssen alle verfügbaren Instrumente zur effizienten Datenanalyse und -verknüpfung an die Hand bekommen. Zoll, Polizei, Dienste, Justiz, unsere Joint Investigation Teams brauchen Zugang zu allen für sie relevanten Informationen und Datenbanken. Sie sind nicht nur integraler Bestandteil einer Sicherheitsunion, sie stehen zugleich an vorderster Stelle, um unser Leben und unser Eigentum zu schützen. Wir müssen ihnen im Gegenzug Schutz gewährleisten. Das allein wird aber nicht reichen. Mit der Internal Security Strategy, mit der Preparedness Strategy, dem Whitepaper on Defence werden wir die nächsten Schritte gehen müssen, um diese, unsere Europäische Union gegen Bedrohungen und hybride Attacken von innen und außen abzusichern. Eine widerstandsfähige Demokratie wartet nicht auf Angriffe. Sie antizipiert sie, passt sich an und antwortet entschlossen. Das und nicht weniger müssen wir leisten.

Ein letzter Kommentar zu meinem Vorredner: Am 23.2. wird jede Stimme für die AfD in Deutschland eine verlorene Stimme sein. Es wird keine Koalition geben.

Sandro Ruotolo (S&D). – Signora Presidente, onorevoli colleghi, nello scorso mese in Svezia c’è stata in media un’esplosione al giorno. Ma non è un caso isolato, è un campanello d’allarme per tutta l’Europa.

Io penso che lo Stato debba intervenire prima, sottraendo i nostri ragazzi alla manovalanza del crimine, alla morte civile. Ci sono poi i social network, moltiplicatori del disagio. Pensiamo all’omicidio di Salwan Momika, famoso per aver bruciato una copia del Corano in pubblico e ucciso a gennaio durante una diretta su TikTok.

Lo Stato deve esserci prima, l’Europa deve esserci prima della violenza e noi dobbiamo esserci prima che sia troppo tardi. Servono investimenti nelle nostre periferie economiche, sociali, culturali.

András László (PfE). – Madam President, ‘that we do not have control over the wave of violence is quite obvious’. This is a quote from the Swedish Prime Minister and a damning confession. Migrant gang wars have been plaguing Sweden for years now, and bomb attacks surged to a level comparable only to failed states. Citizens are scared and outraged for a reason.

Who is to blame? The current government’s responsibility is limited in this mess. This is the fault of left‑wing elites who allowed mass immigration and adhered to the open borders ideology of George Soros. The EU’s migration policy is madness. More and more countries refuse to apply the rules. They bring chaos, violence, death and the breakdown of rule of law.

Even in Sweden, even if you are one of the wealthiest and most respected nations on earth: Swedes, this may happen. Swedes simply deserve better. Yet the European Commission is still looking to punish those who defend our common external borders, like my country, Hungary.

We need zero tolerance regarding illegal immigration. We need to support all the countries that defend our external borders, and we need to remove all illegals from the EU, and we need to severely punish all violent criminals. Gang warfare in European cities is un‑European. The European Commission’s weakness on border protection is anti-European. We need to make Europe great again. We need to make European borders secure again.

Nicolas Bay (ECR). – Madame la Présidente, les gangs criminels ravagent la Suède. Après des décennies d’irresponsabilité et de laxisme migratoire, la population suédoise paie aujourd’hui le prix du sang avec deux tristes records: le premier, c’est celui d’être le premier pays en termes de mortalité par arme à feu de toute l’Europe, le second, c’est d’avoir 20 % de sa population qui est étrangère, soit deux millions d’immigrés sur dix millions d’habitants.

La Suède a récemment essayé de changer de cap sous l’impulsion de la droite conservatrice et des démocrates suédois. On a enfin un changement de cap et, désormais, on a le plus faible nombre de demandeurs d’asile depuis quarante ans en Suède. Mais, évidemment, la situation est dramatique, et la situation de la France n’est d’ailleurs pas meilleure que celle de la Suède.

Aujourd’hui, au Parlement européen, le ministre de l’Intérieur, Bruno Retailleau, vient parler de la directive retour. La directive retour ne sera réellement utile et efficace pour les Européens, pour nos nations et pour nos peuples que si elle permet la simplification, la fluidification et la rapidité des expulsions: faire en sorte que tous ceux qui sont entrés par ruse, par effraction ou grâce au laxisme en Europe n’aient qu’une seule certitude, celle d’être tôt ou tard expulsés d’Europe, avec l’impossibilité d’y revenir.

Abir Al-Sahlani (Renew). – Fru talman! Sverige skakas av det brutala gängvåldet. Barn som agerar drogkurirer, tonåringar som agerar torpeder och giriga gängledare vars hänsynslöshet och brutalitet inte har några gränser och som styr sina olagliga verksamheter utanför Sveriges gränser. Detta är sannerligen ett europeiskt problem.

Från 1 januari till i dag har det skett 33 detonationer och sprängningar runt om i Sverige. Vi har en regering i Sverige som i valrörelsen lovade ett paradigmskifte. Vi kan tyvärr inget annat än konstatera att den nuvarande regeringens politik inte har lyckats.

Det finns många saker som borde ha gjorts annorlunda, som borde ha gjorts tidigare. Inte minst borde politiken fokusera mer på att strypa nyrekryteringen till gängen. Vår första försvarslinje här är föräldrar, lärare, skolpersonal, socialsekreterare och fältassistenter. Det är skolan och det är vårt förebyggande arbete som kommer att avgöra om dessa gäng finns kvar i framtiden.

Än så länge är de digitala plattformarna, där mycket av rekryteringen av dessa ungdomar sker, inte tvingade av lagen att ta bort innehåll som annonser där man rekryterar barn.

Pratar man med tullen i Sverige så ser man ganska snabbt att de är underbemannade. De är i dag 200 personer. De skulle egentligen behöva vara 400 personer, och EU:s hamnallians har kritiserat Sverige just för detta underskott. Men i stället för att satsa mer på skolan och ge ungdomar ett alternativ, i stället för att satsa på att ha bättre tullarbete, mer personal och bättre maskiner, så har politiken kokats ner till en tävling i hårdare straff och hårdare tag mot invandrare. Migrationspolitiken är inte verktyget för att lösa gängvåldet.

Och en fråga: Hur vet du att det är afrikanska gäng som håller på i Sverige? När var du senast i Bagdad? Vad är det här för skitsnack?

(Talaren godtog en fråga (“blått kort”).)

Saskia Bricmont (Verts/ALE). – Règlements de comptes, fusillades, assassinats se multiplient dans les rues européennes, de Stockholm à Bruxelles. Des scènes inimaginables qui font peur pour notre sécurité et celle de nos enfants. Le crime organisé affecte les communautés en profondeur. Il présente aussi un risque bien plus large pour nos démocraties et l’État de droit, tant par ses effets directs que par les réponses liberticides qui sont actuellement apportées.

Aucun discours simpliste, belliciste ou xénophobe n’apportera les réponses qu’attendent légitimement nos concitoyens. Oui, nous devons être exemplaires, agir de manière coordonnée et systémique avec des moyens allant de la prévention à la répression, de nos communes à l’Union européenne.

Poursuivons le travail de réseau ici, au niveau européen: renforçons la lutte contre la corruption en élargissant les compétences du Parquet européen. Montrons de l’ambition pour la directive anticorruption, Madame la Commissaire, et assurons des moyens, du niveau local au niveau européen. Développons également la coopération judiciaire internationale en faisant pression sur les États, comme Dubaï, qui accueillent les narcotrafiquants, en permettant aussi que soient conclus rapidement des accords de coopération entre Eurojust et les pays d’Amérique latine. Enfin, harmonisons la réponse européenne face au crime organisé par une réponse législative pénale européenne.

Alvise Pérez (NI). – Señora presidenta, ¡anda!, pero si hoy toca hablar de la criminalidad récord en Suecia, ese Disneyland progresista que han convertido desde la Comisión Europea y desde el propio Gobierno en un polvorín de casi ciento cincuenta atentados terroristas en solo diez años.

Antes este país exportaba muebles y pop depresivos y ahora exporta bombas terroristas y narcotraficantes, algunos a mi país, a España. ¡Qué cosas! Aunque en realidad no mintieron a nadie, nos vendieron el cuento de la integración, de la convivencia y de la prosperidad, y lo han cumplido: integración del crimen, convivencia con el miedo y prosperidad para las mafias y para algunos políticos que se aprovechan de eso. Pero, bueno, no hay problema, porque en Suecia —lo han anunciado hace poco— han encontrado la solución mágica, que es pagar hasta treinta mil euros a los inmigrantes para que se larguen de su país. Es decir, primero los trajeron a Europa con cheques y ayudas, luego les concedieron barrios enteros y ahora les pagan para irse. Suecia, más que un país, parece una agencia de viajes para criminales. ¿El siguiente paso cuál es? ¿Repartir vales de avión para la vuelta a Kabul? ¿Un todo incluido en Somalia con dinero de los europeos?

Y mientras tanto la Unión Europea sigue con su plan maestro, que es importar más problemas, prohibir que se hable de ellos y subvencionar a las ONG que los alimentan. Esta no es la Europa que a los españoles nos prometieron y no queremos formar parte de ella.

Ana Miguel Pedro (PPE). – Senhora Presidente, Senhora Comissária, de Estocolmo a Paris, de Berlim a Bruxelas, assistimos à ascensão de cartéis de crime organizado que operam como verdadeiros grupos terroristas. E, perante isto, a Europa tem sido, demasiadas vezes, lenta e hesitante. A liberdade de circulação, um dos pilares fundamentais da União Europeia, tem sido instrumentalizada para facilitar o tráfico de seres humanos, narcotráfico, contrabando e lavagem de dinheiro. Sabemos que mais de 70 % das redes criminosas operam além-fronteiras e que sete em cada dez das mais perigosas envolvem cidadãos de múltiplas nacionalidades. Em primeiro lugar, estas organizações devem ser reconhecidas como uma ameaça direta à segurança nacional e combatidas com as mesmas medidas aplicadas ao terrorismo. Segundo, precisamos de reforçar a cooperação europeia. O crime não conhece fronteiras, e a nossa resposta também não pode conhecer. Nenhum criminoso pode encontrar refúgio apenas porque mudou de país. Defendemos o alargamento de poderes para a confiscação de ativos e a restrição da circulação de grupos criminosos, incluindo a imposição de proibições de entrada e limitações para cidadãos condenados por crimes graves. É igualmente urgente reforçar o mandado de detenção europeu e reforçar o combate ao tráfico ilegal de armas que alimenta esta escalada de violência. A Europa assenta na liberdade e no Estado de direito. Sem segurança, a liberdade é apenas um conceito vazio, esmagado pelo medo e pela violência. Não podemos aceitar que a nossa resposta seja tímida quando os criminosos agem sem medo.

(A oradora aceita responder a uma pergunta «cartão azul»)

Juan Fernando López Aguilar (S&D). – Señora presidenta, debatimos en esta sesión plenaria el incremento de la criminalidad organizada en Suecia, pero, en realidad, estamos hablando de un síndrome que recorre toda Europa: en primer lugar, la criminalidad organizada es la criminalidad de nuestro tiempo. En segundo lugar, sube el número de adolescentes —menores de edad— en la comisión de esos delitos, reclutados por las mafias. Y, en tercer lugar, la técnica de reclutamiento consiste en Instagram y en las redes sociales.

No está pasando eso en todos los Estados miembros de la Unión Europea, no cabe ninguna demagogia —como la que utilizó, por cierto, la derecha contra el Gobierno socialdemócrata sueco— cuando lo cierto es que, bajo el Gobierno de la derecha sueca apoyado por la extrema derecha, esa criminalidad no ha hecho sino incrementarse.

Por tanto, la receta está a la vista: el incremento de la cooperación policial y judicial especializada. En segundo lugar, aprovechar todo el caudal de experiencia de Eurojust y de Europol para confiscar no solamente las armas de fuego, sino también los beneficios ilícitamente obtenidos y su blanqueo. Y, en tercer lugar, la especialización digital en la lucha contra esta criminalidad: pruebas digitales y, por tanto, incremento de la tecnología en la eficacia contra el delito.

Y —no puedo evitar mencionarlo— hay que combatir también la segregación, la exclusión de la que proviene la desigualdad, de la que proviene el incremento de la criminalidad.

Mathilde Androuët (PfE). – Madame la Présidente, la Suède, autrefois l’un des pays les plus sûrs d’Europe, est aujourd’hui ravagée par la violence des gangs issus de l’immigration. En 2023, la Suède a recensé 363 fusillades liées à des règlements de comptes, causant 53 morts. Le taux d’homicides par arme à feu y atteint quatre tués par million d’habitants, contre 1,6 en moyenne en Europe. Aucun autre pays du continent européen n’a connu une hausse aussi vertigineuse. De la violence criminelle, fusillades, attentats à l’explosif, corruption, fraude sociale et proxénétisme, toute la panoplie du crime est assurée avec des exécutants recrutés parfois dès l’âge de douze ans.

Les autorités suédoises l’admettent elles-mêmes: cette explosion criminelle est le fruit de décennies d’aveuglement migratoire et de communautarisme majoritairement islamiste. En vingt ans, la population étrangère est passée de 2 % à 15 %. Un bouleversement qui a favorisé la montée de bandes ethniques comme Foxtrot, Asir ou le réseau syrien, gangrenant jusqu’aux tribunaux et étendant leur menace jusqu’au Danemark, la Norvège ou la Finlande. Une situation comparable à bien d’autres pays européens, dont la France avec sa DZ mafia, où la loi du crime remplace la loi du droit et de la justice.

Face à cette menace, la Suède amorce enfin un tournant avec l’expulsion de criminels étrangers, la déchéance de nationalité pour les délinquants binationaux ou encore le durcissement de l’asile.

L’Europe doit prendre exemple de ce réveil politique post-traumatique. Appliquons un contrôle strict des frontières nationales comme européennes, ayons une double frontière, et amorçons la fin du laxisme généralisé, la tolérance zéro face à la délinquance. Ne laissons plus les mafias s’emparer des institutions, de vies humaines. Agissons avant qu’il ne soit trop tard.

(L’oratrice accepte une question carton bleu)

Mathilde Androuët (PfE), réponse carton bleu. – Je suis quelque peu désarçonnée par votre réponse politique qui consiste donc à investir dans les écoles, ce qui est une réalité éducative, mais qui n’enraiera aucunement la violence importée. Parce que je pense qu’on parle d’un des pays où le niveau d’investissement et de soins apportés à la croissance des enfants est important – c’est le cas, je pense, en Suède. En l’occurrence, tous les chiffres parlent d’eux-mêmes et montrent – pas uniquement en Suède d’ailleurs, mais partout en Europe – que, oui, cette violence est largement importée, ne vous en déplaise. Je sais.

Paolo Inselvini (ECR). – Signora Presidente, onorevoli colleghi, qualcuno evidentemente ha bisogno di occhiali nuovi, perché ciò che sta accadendo in Svezia, come ciò che sta accadendo nelle città di tutta Europa, ha reso chiaro come le lenti ad alta gradazione ideologica della sinistra facciano vedere una realtà che non esiste.

La realtà è che le gang, le violenze, gli stupri e lo spaccio di droga sono ormai all’ordine del giorno in tutta Europa, e questo a causa del perbenismo, del buonismo e dell’immigrazionismo della sinistra.

È arrivato il momento, quindi, di mettersi gli occhiali della verità. Bisogna bloccare l’immigrazione incontrollata, combattere ogni droga e sostenere le forze dell’ordine, una strada, infatti, che il governo Meloni in Italia sta cercando di seguire da tempo.

Infatti, tutti gli europei chiedono la libertà di poter vivere le proprie città, la libertà di essere sicuri.

Raquel García Hermida-Van Der Walle (Renew). – Madam President, Madam Commissioner, let me begin by expressing my deepest condolences with the families and friends of the shooting in Sweden and, of course, to the Swedish people as a whole.

The far right of this Chamber has only one solution for fighting organised crime: let’s close our borders and take back our country. But here comes a reality check. Criminals are laughing at your obsession with closing borders. For them, it’s just a line. It’s the point where they can shake off the national police. They operate extremely efficiently across borders, using bribes, laundering money through your beloved cryptocurrency, trafficking in weapons and recruiting new – very often very young – members for their gangs.

Stop misleading Europeans with your naive idea of sovereignty and invest instead in our EU police and justice cooperation. At the beginning of the 20th century, when the American government was fighting their own criminal gangs, the Mafia, they tried closing state borders in and demonising migrants. You know, Mr Inselvini, those Italians, they were really bad. And to the colleagues from PiS: the Poles? Very bad. No good.

Well, that did not work. But you know what worked? Founding the FBI. That did the trick. What Europe needs is a truly operational Europol. A European FBI with reinforced means, with oversight and with accountability. Also, Eurojust and the European Public Prosecutor’s Office urgently need more competences, as they have shown to be extremely effective and instrumental in fighting organised crime.

Commission, absent Council, step up to the challenge. Give our common security the priority it needs. And to my colleagues, if you are really serious about fighting crime, then you will support every single effort in this House at European level. And if you’re not, then you’re just interested in creating clickbait for your socials and I suggest you sit this one out.

(The speaker agreed to take a blue-card question)

Lukas Sieper (NI). – Madam President, the people of Europe, the title of this debate is, in my humble opinion, all wrong. As many colleagues have pointed out, the problem that we are facing is not a Swedish one – it is European, with a strong worldwide aspect to it.

Just last week, the Ambassador of Ecuador told us that it’s the Albanian mafia being in control of the cocaine shipping out of the port of Guayaquil in Ecuador. Albanian mafia in Ecuador. Let that sink in for a moment. It is always drug-trafficking gangs that enact the worst violence, and these gangs do not fight about the market of Sweden, of Italy or of Luxembourg – they fight about Europe. And so there can only be a European solution.

We need to strengthen Europol and let it take over some responsibilities from the national police forces. We need to expand funding for the European Union Drugs Agency, and we need to legalise or criminalise the same drugs in the same countries all over Europe. Only if we start tackling this European issue as such, we will stand a chance.

Alice Teodorescu Måwe (PPE). – Fru talman! “Låt oss spränga och skjuta, grabbar!” “Vi gör 2025 till historiens bästa med sprängningar!” Det skriver gängkriminella i kanaler där morduppdrag läggs ut på entreprenad till köande barnsoldater. Under 28 januaridagar utsattes Sverige för 32 sprängningar, utöver de 18 skjutningarna som också ägde rum.

Det som nu sker saknar motstycke i västvärlden, och det liknar närmast ett inbördeskrig som ingjuter skräck och skadar tilliten till staten och mellan människor. Friheten för den skötsamma majoriteten kan bara återerövras genom att den kringskärs för den kriminella minoriteten. EPP-gruppens Stockholmsdeklaration pekar ut vägen: stärk Frontex, Europol och den europeiska åklagarmyndigheten. Skärp penningtvättslagstiftningen och underlätta möjligheten att beslagta kriminellas tillgångar. Begränsa, också preventivt, den fria rörligheten för gängmedlemmar.

Gängkriminaliteten har inte uppstått i ett vakuum. Den är konsekvensen av politiskt pådrivna samhällsförändringar, oftast från vänster, av värderingskonflikter och kravlös integrationspolitik. Det är politikens uppgift att vid sidan av repressiva åtgärder adressera att varje samhälle behöver en grundläggande uppsättning värderingar, ett etiskt minimum. Dessa grundläggande, icke valbara, värderingar är förutsättningen för att människor ska vilja, och välja att, skapa – i stället för att spränga – det samhälle som de har fått till låns. Den som drivs av andra ambitioner har inget i Sverige att göra.

Maria Grapini (S&D). – Doamnă președintă, doamnă comisară, stimați colegi, discutăm un lucru trist și nu e prima dată. Vreau să transmit condoleanțe celor care și-au pierdut copiii, nu numai în Suedia. Să ne amintim ce a fost de Crăciun în Germania, ce a fost recent în Bruxelles. Doamnă comisară, cred că trebuie să ne asumăm să spunem adevărul: nu s-a gestionat bine democrația. Democrația nu înseamnă să renunțăm la securitate. Din contră, cred că securitatea trebuie să sporească.

Atunci, haideți să vedem ce facem, pentru că sunt state care au legiferat, de exemplu, consumul de droguri. Toate au legătură: drogurile, armele. Am reglementat aici regimul armelor. Și? Ce s-a întâmplat? Toată lumea are armă acasă, toată lumea scoate arma și trage în copii, la școală sau pe stradă. Deci, dacă nu ne asumăm să schimbăm regulile – democrația nu înseamnă haos, democrația înseamnă ordine, democrația înseamnă și responsabilități, nu numai drepturi.

Nu avem curajul să spunem acest lucru, de teamă să nu ne spună cumva cetățenii că, vezi Doamne, nu suntem democratici. Eu așa înțeleg democrația: să sporească securitatea, dreptul omului de a fi singur în casa lui, pe stradă, în orașul lui.

Pascale Piera (PfE). – Madame la Présidente, une criminalité organisée hors de contrôle, des fusillades, du racket, des activités criminelles en tout genre, partout, sans qu’aucune part du territoire ne soit désormais épargnée. C’est une véritable descente aux enfers pour la Suède, alors que la moyenne européenne des tués par balle est de 1,6 par million d’habitants, elle est de quatre tués en Suède. 363 fusillades en 2023, dix morts en une seule fusillade, il y a six jours.

Le Premier ministre suédois a le courage de regarder les choses en face. Cette situation est la lourde rançon que paie la Suède à une politique d’ouverture migratoire irresponsable.

Aujourd’hui, c’est 200 gangs issus de l’immigration qui font la loi, de l’Afrique subsaharienne, des Turcs, des Kurdes, un réseau syrien, partout c’est la loi de la mafia qui s’installe, s’introduisant dans toutes les sphères de la société. Les méthodes de recrutement sont vertigineuses: les garçons de 15 à 20 ans cherchent eux-mêmes des mineurs de 12 à 15 ans, les filles sont séduites avant d’être prostituées. Il est temps de regarder les choses en face.

Ces vingt dernières années, la Suède a vu la part de sa population non occidentale passer de 2 % à 15 %. Voici le fruit d’une politique migratoire aveugle et pour finir criminelle.

Le gouvernement suédois se donne dix ans pour gagner la bataille. Et nous, en France ou ailleurs, partout où la criminalité est omniprésente, où en serons-nous dans dix ans?

Joachim Stanisław Brudziński (ECR). – Szanowni Państwo! Kiedy w 2015 roku Angela Merkel włączała piąty bieg w ramach realizacji tej idiotycznej polityki multi-kulti, ogłaszając Herzlich Willkommen i otwierając szeroko granice europejskie, ówczesny lider opozycji w Polsce, szef mojej partii Jarosław Kaczyński przestrzegał Europę, odwołując się do przykładów właśnie w Sztokholmie, kiedy powiedział o ponad 50 strefach szariatu, do których to stref nie ma wejścia szwedzka policja i szwedzkie prawo, rozległ się krzyk od Sztokholmu, bo interweniował ówczesny ambasador Szwecji w Polsce, przez Strasburg po Brukselę. A nieodrodny uczeń Angeli Merkel, ówczesny szef Rady Europejskiej Donald Tusk straszył tych, którzy nie będą przyjmować nielegalnych imigrantów karami.

Proszę państwa, dzisiaj wszyscy jesteśmy z ofiarami tych zbrodni, jesteśmy z obywatelami Szwecji. Chcemy, aby nasze dzieci bezpiecznie wracały ze szkół do swoich domów. Ale nie wygramy z tym przestępstwem, jeżeli będziemy nadal sparaliżowani polityczną poprawnością i strachem przed nazywaniem rzeczy po imieniu. Nawet w tym, co powiedziała Pani Komisarz, nie sposób się z nią nie zgodzić, tak, wzmacniajmy prawo. Ale co zrobiliśmy z policją? Pamiętacie obrazki brytyjskich policjantów klękających przed osiłkami, którzy dewastowali ulice Londynu? Zwolniliście szefa Frontexu za to, że wspierał rząd polski przed wpuszczaniem nielegalnych imigrantów do Polski. Hipokryci o was powiedzieć to mało.

Loránt Vincze (PPE). – Madam President, Commissioner, reality cannot be ignored anymore. From France, all the way up to Sweden, there are more and more terrorist street shootings linked to drug and human trafficking and gang-related assassinations. More and more innocent victims and ruined lives. These are criminal acts, predominantly involving individuals and groups with a migration background.

How did we get there? We know the answer: the pretence that cultural differences are irrelevant, the illusion of an inclusive society, procedures granting fast track citizenship, the tolerance of illegal migration.

In reality, tens of thousands of second-generation EU citizens of migrant backgrounds have become socially marginalised and pushed to the periphery. From there, for many of them, it was only a short step towards religious radicalisation or organised crime.

We do not have years to correct the mistakes of past decades. The safety of citizens in Sweden, in Belgium, in France must be ensured today. Law enforcement must be strengthened both in numbers and weaponry. Investigative procedures must be accelerated. Criminal gangs must be dismantled. Migrants in irregular situations must be returned, and the EU can and shall assist through coordination.

(The speaker agreed to take a blue-card question)

Loránt Vincze (PPE), blue-card answer. – Well, I believe that for the EU it is important to find the right way for coordination, institutional and financial support, for cross-border law enforcement.

Yes, education is important, but it’s equally important the environment in which those children live. We know, unfortunately, in many western European societies, parallel societies, parallel neighbourhoods grew up. That made it impossible for children to be integrated in those societies and they went on the road of radicalisation and they were reached out by criminal gangs.

This is something we need to tackle and it will not be easy. National efforts and coordination, both are extremely important.

Silvia Sardone (PfE). – Signora Presidente, onorevoli colleghi, non avete il coraggio di dire che è l’immigrazione irregolare ad aver causato la diffusione di gang criminali sempre più pericolose in Europa.

Svezia, Germania, Belgio, Francia, Italia: ci troviamo sempre più reti di delinquenza, che spesso coinvolgono giovanissimi che sono protagonisti di risse, spaccio, vandalismi e persino omicidi e attentati.

Questa criminalità è figlia di anni di buonismo, di accoglienza indiscriminata, di finta integrazione, di porte aperte. Sono i danni collaterali delle politiche della sinistra, che ancora nega l’evidente correlazione tra immigrazione irregolare e criminalità. Periferie che diventano ghetti di degrado e insicurezza, territori che perdiamo e dove la polizia fa fatica ad entrare, zone in cui le leggi e le regole non esistono più.

Quando capirete che chi spinge per più immigrazione mette a rischio la sicurezza dei cittadini europei?

(L’oratrice accetta di rispondere a una domanda “cartellino blu”)

Lukas Sieper (NI), Frage nach dem Verfahren der „blauen Karte“. – Illegale Migration führt zu Kriminalität. Man muss nicht mutig sein, um das zu sagen. Das bestreitet ja auch keiner. Aber glauben Sie nicht, dass, wenn man Menschen mit Migrationshintergrund, wenn man Geflüchtete nicht ghettoisiert hätte, in die Armut gedrängt hätte, in schlechte Stadtviertel gedrängt hätte, wenn man ihnen eine Arbeitserlaubnis gegeben hätte, wenn man sie als gleichwertige Mitglieder unserer Gesellschaft behandelt hätte, glauben Sie nicht, dass es dann weniger Kriminalität aus diesem Teil der Bevölkerung geben würde?

Silvia Sardone (PfE), risposta a una domanda “cartellino blu”. – Guardi, io le dico quello che succede nel mio paese. Nel mio paese, chi arriva, chiunque arrivi come immigrato in regola, ha tutti i diritti che hanno i cittadini italiani. Quindi, non c’è una spinta da parte dello Stato a portare questa gente alla delinquenza.

Però le faccio una domanda: se fosse vero quello che dice Lei, e quindi se avesse ragione la sinistra, perché in in Svezia, che è lo Stato del quale stiamo parlando, ha vinto il centro-destra, di fatto certificando il fallimento di anni di sinistra? Probabilmente perché i comunisti hanno sbagliato anche stavolta.

Sebastian Tynkkynen (ECR). – Arvoisa puhemies, Ruotsi on ollut maa, jota monet katsoivat ihailevin silmin. Sittemmin tämä onnellinen ja vauras kansankoti on menty turmelemaan sellaiseksi, ettei sitä enää tunnista entisekseen. Täysin rajoittamattoman muuttoliikkeen on annettu pyyhkäistä Ruotsin yli hyökyaallon lailla. Se on turmellut naapurustoja no go -alueeksi, tehnyt katuja turvattomiksi sekä aikaansaanut räjähdysten ja ammuskelujen värittämän jengirikollisuusepidemian, joka ei Ruotsin hallituksen mukaan ole enää edes hallinnassa. Kuvitelkaa missä kaaoksessa maan pitää olla, että pääministeri joutuu toteamaan näin: “Tilanne ei ole enää hallinnassa”. Mutta alkavat ne silmät avautua nyt Ruotsissakin. Nimittäin, pääministerin mukaan, tiukennetun maahanmuuttopolitiikan linjan täytyy jatkua, jotta Ruotsi voi selviytyä. Siinäpä on ohje koko Euroopalle. Älkäämme toistako Ruotsin hirveää ihmiskoetta, vaan tiukentakaamme maahanmuuttolinjaa, jotta Eurooppa voi selviytyä.

Verena Mertens (PPE). – Frau Präsidentin! Liebe Kolleginnen und Kollegen! Die massive Bandengewalt, die wir seit einigen Jahren in Schweden erleben, ist alarmierend. Auch in anderen EU-Staaten nimmt die Waffengewalt zu, wie auch jüngst die Schüsse in Brüssel gezeigt haben.

Diese Herausforderungen können wir nur europäisch lösen, denn organisierte Kriminalität macht nicht an Grenzen halt. Die Täter profitieren von der Freizügigkeit, weil unsere Strafverfolgungsbehörden an Grenzen und Nationalstaaten gebunden sind. Deshalb müssen wir die Strafverfolgungsbehörden in Europa besser vernetzen – untereinander, und mit Europol und Eurojust und der Europäischen Staatsanwaltschaft, die mehr Kompetenzen braucht.

Die guten Projekte, die es schon gibt, müssen mehr werden, und viel größer. Denn nur mit Nadelstichen können wir nicht gegen die großen Krebsgeschwüre ankommen, die unser Europa krank machen. Die Strafverfolgungsbehörden müssen effizienter und endlich schlagkräftiger bei Ermittlungen werden, aber auch in der Justiz. Ein digitaler Durchsuchungsbeschluss ist essenziell, um die Drahtzieher zu fassen und Netzwerke zu zerschlagen. Wir brauchen mehr Zugang zu digitalen Daten, um die Hintermänner überführen zu können. In der Justiz brauchen wir effizientere Strafprozesse europaweit. Hier können wir die best practice voneinander lernen.

Europa muss handlungsfähig bleiben. Unsere Freiheit darf nicht zur Schwäche werden. Sie muss unsere Stärke sein.

France Jamet (PfE). – Madame la Présidente, la guerre des gangs qui ensanglante la Suède semble émouvoir aujourd’hui l’Union européenne. Ce qui surprend la classe politique, en fait, c’est que la Suède est un pays prospère, avec l’un des taux de criminalité les plus bas du monde. Mais c’est l’angélisme des Suédois qui les a conduits à une politique migratoire complètement folle, qui a fait exploser la criminalité organisée.

Alors, on pourrait considérer ça comme un avertissement, comme à Bruxelles, à Dijon, à Berlin, en Italie, à Marseille, en Seine-Saint-Denis, à Montpellier: la liste est longue. Le temps de réaction aussi, d’ailleurs.

Parce que, face à cela, nos gouvernants, sous la férule de l’Union européenne, ont pris le parti des criminels et des délinquants. Sclérosés par le politiquement correct, pétrifiés face aux juridictions européennes, ils ont pris le parti de regarder ailleurs. C’est le dévoiement de l’État de droit par l’Union européenne qui a sapé notre souveraineté dans nos territoires, nos prétoires, nos frontières, nos prisons, notre quotidien. Ce sont les dealers et les caïds qui imposent aujourd’hui leurs lois à coups de kalachnikov dans nos rues et jusque devant nos écoles.

Alors oui, il est temps d’y mettre fin. Il est temps de défendre enfin la sécurité de nos compatriotes et leurs intérêts, avant ceux des criminels, des clandestins, en commençant par soutenir nos forces de police.

Małgorzata Gosiewska (ECR). – Pani Przewodnicząca! Strzelaniny, zamachy, gwałty, gangi terroryzujące mieszkańców to codzienność Szwecji – jeszcze tak niedawno bezpiecznego kraju. To skutek polityki otwartych drzwi, którą przez lata prowadzili lewicowi politycy. Wszystkim, którzy sprzeciwiali się ówczesnej polityce imigracyjnej Unii Europejskiej, w tym mojemu ugrupowaniu, zarzucano ksenofobię. Przez osiem lat rządów Prawa i Sprawiedliwości skutecznie broniliśmy Polskę przed napływem uchodźców, w tym także tych ze wschodu ściąganych przez Łukaszenkę. Wtedy to obecny premier Donald Tusk, wasz pupil, straszył Polaków karami za nieprzyjęcie migrantów, a jego partyjni koledzy atakowali polską straż graniczną. To wszystko, aby uzyskać wasze wsparcie w wyborach, za które płaci teraz bezpieczeństwem Polski.

Dziś biurokracja europejska przymusza mój kraj do przyjęcia migrantów. Tusk udaje, że nie ma na to jego zgody, ale wszyscy wiemy, że to zwyczajne oszustwo na potrzeby kampanii prezydenckiej. Wkrótce Polacy, podobnie jak Szwedzi, Niemcy, Francuzi, zaczną mierzyć się ze skutkami waszych szkodliwych decyzji. Chcecie rządzić światem, a ciągniecie Europę na dno.

Lukas Mandl (PPE). – Frau Präsidentin! Liebe Kolleginnen und Kollegen! In Schweden gibt es eine Explosion der Bandenkriminalität unvorstellbaren Ausmaßes. Ich danke ausdrücklich Tomas Tobé und den anderen schwedischen Kolleginnen und Kollegen dafür, dass sie das auf die Tagesordnung des Europäischen Parlaments bringen.

Schweden ist exakt gleich lang Mitgliedstaat der Europäischen Union, wie mein Heimatland Österreich das ist. Wir wissen in diesen 30 Jahren: Grenzüberschreitende Herausforderungen können wir nur gemeinsam europäisch lösen. Deshalb ist dieses Parlament der richtige Ort, an dem das diskutiert gehört. Das ist der europäische Familientisch, an dem das diskutiert, bearbeitet und selbstverständlich auch gelöst gehört.

Ich möchte drei Kerben einschlagen für die Lösung. Erstens, den Problemen ins Auge zu sehen. Auch in dieser parlamentarischen Debatte haben wir die einen gehört, die die Bandenkriminalität ausschließlich auf die Migration zurückführen. Und wir haben die anderen gehört, die ausdrücklich gesagt haben, das hat mit Migration nichts zu tun. Selbstverständlich ist beides falsch. Mit illegaler Migration hat die Bandenkriminalität zu tun, und die Sanktion ist wichtig. Die über die Grenzen hinausgehende Zusammenarbeit der Polizei- und Strafverfolgungsbehörden ist wichtig.

Aber nicht nur die Sanktion ist wichtig, auch die Prävention ist wichtig. Hier geht es um Werte, um zivilisatorische Werte, um Menschenwürde und Freiheitsrechte. Darum, dass jeder Mensch gleich viel wert ist und dass es nicht nur die Freiheit von einem Zwang gibt, sondern auch die Freiheit, um etwas zu tun und zu unternehmen im Leben.

Zur Freiheit gehört auch die Verantwortung. Und das ist es, was sowohl Migrantinnen und Migranten als auch Ansässigen vermittelt werden muss.

Nikola Bartůšek (PfE). – Paní předsedající, dámy a pánové, jedna bomba denně. Ano, tak taková je bilance útoků ve Švédsku za poslední měsíc. Převaděči, drogové gangy, organizovaný zločin zaplavili švédská města. Švédsko bývalo kdysi symbolem evropské prosperity. Idylická, bezpečná země s nízkou kriminalitou, proslulá svou spravedlivou politikou a rovností. To už ale neplatí. Švédsko se stalo obětí vlastní naivity a má druhou nejvyšší míru úmrtí způsobených střelnými zbraněmi.

Toto je obrovské varování před tím, abychom zaplavili pracovní trh levnou pracovní silou, rádoby v dobré víře, a přitom to nazývali humanitární pomocí. S touto masovou levnou pracovní silou přichází k nám domů kriminalita a terorismus. Místo toho, aby Švédsko zůstalo nejbezpečnější zemí v Evropě, zažívá nejvíce teroristických útoků. Vždyť ani nevíme, kdo se nám po Evropě pohybuje. Je čas čelit pravdě. Tento experiment založený na masové migraci selhal. Buďme chytří a poučme se z chyb, než bude příliš pozdě. Společně musíme přestat zavírat oči, zavést přísnější tresty za násilné trestné činy, tvrdší opatření proti praní špinavých peněz a tvrdý zásah proti drogovým gangům. Vždy jde o bezpečnost našich občanů.

PRESIDE: JAVI LÓPEZ
Vicepresidente

Tomislav Sokol (PPE). – Poštovani predsjedavajući, Švedska, nekada poznata po svojoj sigurnosti, posljednjih godina suočava se s alarmantnim porastom nasilja i kriminala. Eksplozije, pucnjave i ubojstva postale su uobičajena pojava na ulicama Stockholma, Göteborga i Malmöa. Posebno zabrinjava porast broja mladih koji su počinitelji teških kaznenih djela. Broj počinitelja teških kaznenih djela sa smrtnim ishodom u dobnoj skupini od 15 do 20 godina gotovo se učetverostručio od 2014. E, sada, što se promijenilo u švedskom društvu unutar zadnjih deset godina, a što bi moglo biti uzrok ovakvog stanja? Možda, samo možda, sve skupa ima veze s velikim porastom imigracije u istom razdoblju. Hoćemo li zbog političke korektnosti izbjegavati raspravu o pravim problemima i nastaviti živjeti u oblacima? Kolegice i kolege, potreban je žestok odgovor na povećano nasilje koji mora uključivati zaustavljanje masovne imigracije, uvođenje strožih kazni za počinitelje kaznenih djela, jačanje policijskih ovlasti, ali i deportaciju ilegalnih migranata bez milosti. Trenutna švedska vlada djeluje u pravom smjeru, a mi trebamo postupati mnogo oštrije prema imigraciji i na razini EU-a. Dame i gospodo, ovo je pitanje opstanka Europe.

Solicitudes incidentales de uso de la palabra («catch the eye»)

Dariusz Joński (PPE). – Panie Przewodniczący! Tematem debaty jest sytuacja w Szwecji, tymczasem politycy partii Kaczyńskiego z Polski wpadli na pomysł, aby po raz kolejny kłamać na tej sali. Dlaczego to robią? Bo w Polsce są wybory i myślą, że po raz kolejny mogą bezkarnie tutaj kłamać. Otóż tak na dobrą sprawę, jeśli ktokolwiek odpowiada za handlowanie bezpieczeństwem w Polsce, to byli politycy właśnie partii Kaczyńskiego. Jeden z ministrów spraw zagranicznych, który odpowiadał za politykę wizową, został złapany przez Centralne Biuro Antykorupcyjne. W tej sprawie jest komisja śledcza w polskim Sejmie i działa prokuratura, bo ktoś handlował wizami. Można było kupić tanio wizę między innymi z krajów afrykańskich, azjatyckich.

Otóż to trzeba głośno mówić, bo mam dość tych kłamstw polityków partii Kaczyńskiego. I żeby przeciąć jakiekolwiek spekulacje. Donald Tusk razem z Urszulą von der Leyen w zeszłym tygodniu powiedzieli, że Polska nie będzie implementować paktu migracyjnego. Koniec, kropka. I wszyscy w Polsce i nie tylko w Polsce wiedzą dlaczego? Przyjęliśmy 2 miliony uchodźców z Ukrainy. Pomagamy jak mało kto. I dlatego Polska nie będzie implementować paktu migracyjnego.

Diana Iovanovici Şoşoacă (NI). – Domnule președinte, v-am auzit aici dând vina de la stânga la dreapta și de la dreapta la stânga. Cu tot respectul, au murit niște oameni, mor copii, mor tineri. Cred că singurul lucru care ne lipsește în toată Europa aceasta, ca și în întreaga lume, este educația, educația care lasă de dorit! Și cred că ar trebui să ascultați psihologii care nu sunt plătiți de dumneavoastră să vă spună cum copiii au nevoie de autoritate, au nevoie de reguli, au nevoie să fie și pedepsiți. Nu omorâți în bătaie, dar pedepsiți, cum am fost și noi. Au nevoie să li se traseze niște reguli, pentru că devin niște abuzatori când cresc.

Aveți arme la liber? Da, migrația este foarte gravă, e o problemă gravă! V-ați gândit câte arme vin din Ucraina? Știți că prin Portul Constanța vin cele mai multe cantități de droguri, de când ați permis ucrainenilor să vină în Europa? Este raportul Organizației Națiunilor Unite, nu al meu! Cred că ar trebui să vă treziți și să începeți să schimbați învățământul, să opriți inclusiv ucrainenii să mai plece din Ucraina, să opriți finanțarea războiului și să încetați cu Interpolul și cu forțele de violență.

(Fin de las intervenciones con arreglo al procedimiento de solicitud incidental de uso de la palabra («catch the eye»))

Maria Luís Albuquerque, Member of the Commission. – Mr President, honourable Members, having listened to this debate, I think we all agree that we need to do a lot and fast. That is why, next month, the Commission will propose a comprehensive internal security strategy. It will be a strategic blueprint for the Commission’s security priorities. This long‑term planning will shape our approach to research, innovation, procurement and operational deployment, improving our joint fight against organised crime and drug trafficking. We will put all our energy into ensuring a stronger, more effective and better coordinated EU‑wide response to organised crime.

We must put an end to this escalating threat and restore the control over our communities and our borders to protect the safety of citizens in Sweden and across the EU.

El presidente. – Se cierra el debate.

15. The Universal Declaration of Human Rights: the need for the European Union to contribute to resolving the humanitarian crisis of persons missing in wars and conflicts (debate)

Lukas Mandl, on behalf of the PPE Group. – Mr President, when a person goes missing and remains missing, not only is this person affected in one way or another, but many people around; friends and family, parents and children would be affected by that. It is a pity that we have to say today the absolute rule to avoid persons going missing also in armed conflict is not respected anymore. There are more and more missing persons. Particularly Ukraine is suffering; Ukrainian children, men and women are suffering. Especially, as we all know, children from Ukraine in a large number would be brought to Russia and maybe other places. We don’t know about their whereabouts. They go missing.

The International Red Cross documents that more and more persons go missing. This is why, in the European Parliament, we time and again have to underline and emphasise the importance of human rights, of humanitarian law, and among humanitarian law rules, avoiding persons going missing is a major rule.

Of course, also the migration routes which are caused by human trafficking, by smugglers, by organised crime, are places where persons go missing: 60 000 and more in Ukraine, 40 000 were documented by the Red Cross, nearly 30 000 only in the last years in the Mediterranean when it’s about illegal migration routes. There are also regimes on this planet who purposely use persons going missing against their own population. This is something that happens in North Korea. This is something that happens in the Iranian mullah regime. And this is something that’s also used against Europe when it comes to illegal migration, many times purposely. This is why it is so important to emphasise this issue and to bring it to the table of this very European Parliament.

Costas Mavrides, on behalf of the S&D Group. – Mr President, in 2001, the European Court of Human Rights found Turkey guilty for a continued violation of a number of conventions and articles, specifically with regard to the whereabouts and faith of Greek Cypriot missing persons during the Turkish invasion of 1974. Since then, as the European Parliament, we condemn Turkey for its actions, specifically for the intentional removal of human remains in its efforts to cover up its regional crimes committed by the Turkish Army under state orders. Despite court decisions, Turkey refuses still today to provide crucial information, such as access to military archives and access to so-called military zones. This behaviour is simply an extension of the original crime 50 years ago, and this country remains in the accession process.

Γεάδης Γεάδη, εξ ονόματος της ομάδας ECR. – Κύριε Πρόεδρε, άρθρο 3 της Οικουμενικής Διακήρυξης Ανθρωπίνων Δικαιωμάτων: «Κάθε άνθρωπος έχει δικαίωμα στη ζωή, στην ελευθερία και την προσωπική του ασφάλεια». Δυστυχώς όμως, η φρικαλεότητα του πολέμου δεν κάνει διακρίσεις. Χιλιάδες αγνοούμενοι μετά τη ρωσική εισβολή στην Ουκρανία, εκατοντάδες αγνοούμενοι και μετά την τρομοκρατική επίθεση της Χαμάς στο Ισραήλ.

Στον μαύρο κατάλογο και η Κύπρος, που εδώ και 50 χρόνια βιώνει τις συνέπειες της τουρκικής εισβολής και της συνεχιζόμενης παράνομης κατοχής. Η τουρκική βαρβαρότητα άφησε πίσω της 1.619 αγνοούμενους σε ένα μικρό νησί όπως η Κύπρος. Άμαχοι, γυναίκες, γέροντες και μικρά παιδιά συμπεριλαμβάνονται στον μακρύ αυτόν κατάλογο των απαχθέντων.

Η Τουρκία δεν συνεργάζεται. Κωφεύει στις διεθνείς εκκλήσεις, περιφρονεί την απόφαση του Ευρωπαϊκού Δικαστηρίου, αγνοεί το ψήφισμα 34/50 των Ηνωμένων Εθνών και αντ’ αυτού οργανωμένα μετακινεί οστά από τους ομαδικούς τάφους. Και γιατί να το πράξει άλλωστε, όταν υψηλόβαθμοι αξιωματούχοι της Ευρωπαϊκής Ένωσης, αντί να τη θέσουν ενώπιον των ευθυνών της με αυστηρότατες κυρώσεις, την χρηματοδοτούν αποκαλώντας της στρατηγικό εταίρο;

Έχουμε χρέος απέναντι στις τραγικές φιγούρες, τις μάνες των αγνοουμένων που έφυγαν χωρίς να ξέρουν την τύχη του δικού τους ανθρώπου. Μόνο τότε θα μπορούμε να κοιτάζουμε στα μάτια τα τότε κοριτσάκια που σήμερα έγιναν μητέρες, γιαγιάδες και ακόμα ψάχνουν τι απέγινε ο δικός τους πατέρας.

Mounir Satouri, au nom du groupe Verts/ALE. – Monsieur le Président, chers collègues, derrière chaque disparition, il y a des familles et des communautés qui souffrent de l’incertitude quant au sort de leurs proches. Cependant, selon l’endroit où cela se passe dans le monde, le problème peut devenir secondaire pour la communauté internationale.

Ces disparitions sont pourtant monnaie courante dans tous les conflits: c’est le cas des enfants ukrainiens arrachés à leur famille par le régime russe. C’est le cas des otages israéliens capturés par le Hamas. Mais c’est aussi le cas des milliers de civils palestiniens tués anonymement ou emprisonnés dans le secret. C’est le cas des familles séparées par la guerre ou des enfants enrôlés de force en RDC ou au Soudan. C’est le cas des fosses communes retrouvées en Ukraine, à Gaza, en RDC ou en Syrie.

Notre indignation ne doit pas être sélective. Toutes ces horreurs sont proscrites par le droit international humanitaire. Les belligérants sont obligés d’empêcher les disparitions et de fournir des informations sur la mort ou la détention des personnes. Pourtant, c’est l’impunité qui règne et les familles des disparus continuent d’être dévastées.

Peut-on espérer la paix si nous ne garantissons pas l’application du droit international par la justice?

J’appelle donc à protéger les outils de justice internationale, au premier rang desquels la Cour pénale internationale, qui enquête en RDC comme au Soudan, qui a engagé des poursuites contre Vladimir Poutine, contre Benyamin Netanyahou ou les cadres du Hamas pour leurs crimes contre l’humanité. Les familles des disparus ont droit à la justice. C’est le seul chemin viable vers la paix.

Γιώργος Γεωργίου, εξ ονόματος της ομάδας The Left. – Κύριε Πρόεδρε, μου κάνει εντύπωση που κάποιοι βλέπουν αγνοούμενους μόνο στην Ουκρανία. Και για την Γάζα πάλι μιλάνε, αλλά δεν μας λένε ότι εκεί στη Γάζα οι αγνοούμενοι είναι μόνον οι Παλαιστίνιοι. Ούτε μας λένε για τους δεκάδες χιλιάδες αγνοούμενους που προέκυψαν από τα φασιστικά δικτατορικά καθεστώτα στην Ευρώπη.

Είναι βέβαια και οι αγνοούμενοι στην Κύπρο. Δυστυχώς, για πολλές δεκαετίες το ζήτημα των αγνοουμένων της Κύπρου, ίσως η πιο τραγική πτυχή αυτού του προβλήματος, συνεχίζεται. Ο κατάλογος βέβαια είναι εμπλουτισμένος από Ελληνοκύπριους και Τουρκοκύπριους αγνοούμενους και ο πόνος για τις μανάδες, τα αδέλφια, τους συγγενείς είναι κοινός.

Στηρίζεται βέβαια η Διερευνητική Επιτροπή των Αγνοουμένων από την Ευρωπαϊκή Ένωση, όμως αυτή η στήριξη δεν είναι αρκετή, διότι η Τουρκία συνεχίζει να προβάλλει εμπόδια, να δυσκολεύει και να παραπληροφορεί. Έτσι, οι ευθύνες της Ευρωπαϊκής Ένωσης και της διεθνούς κοινότητας είναι σήμερα ακόμα πιο σημαντική προς την κατεύθυνση να πιεστεί η Τουρκία, να αναγκαστεί να ανοίξει τα στρατιωτικά της αρχεία, να δώσει πληροφορίες και στοιχεία για τους αγνοούμενους.

Αναφέρομαι χαρακτηριστικά στην περίπτωση των αγνοουμένων της Άσσιας, του χωριού μου. Εκεί, ο τουρκικός στρατός εκτέλεσε εν ψυχρώ 70 ανθρώπους και τους έριξε σε ένα πηγάδι. Το ’96 τους μετακίνησαν σε ένα σκυβαλότοπο στο Δίκωμο. Εκεί βρίσκεται και ένας θείος μου, ο θείος μου Κλεάνθης. Θέλουμε πίσω τα οστά τους, να τους θάψουμε όπως αρμόζει στους νεκρούς. Δεν ζητάμε πολλά. Θέλουμε να δράσουμε τώρα. Το οφείλουμε στη μνήμη των θυμάτων. Το οφείλουμε στις οικογένειές τους που πρέπει να μάθουν την αλήθεια.

Željana Zovko (PPE). – Poštovani predsjedavajući, govorit ću danas o univerzalnoj deklaraciji o ljudskim pravima u kontekstu rata, sukoba i geopolitičkih napetosti. Podsjećamo se da je nastala upravo u takvim okolnostima, kao odgovor na nepravdu, patnju i kršenje temeljnih prava.

Agresija na Republiku Hrvatsku 91. godine donijela je nezamislivu patnju. Tisuće hrvatskih branitelja i civila bili su zatočeni, nestali ili nasilno odvedeni. Unatoč svim naporima i mjerama, i dalje se suočavamo s najtežim posljedicama rata. 1782 osobe i dalje se vode kao nestale. Nažalost, u Bosni i Hercegovini još se uvijek traga za 7608 osoba. Ova pitanja ne smiju ostati otvorena. Pravda za nestale ne može biti prepuštena zaboravu.

Pozivam Srbiju i Crnu Goru da konačno preuzmu odgovornost, otvore arhive, podijele informacije i omoguće rješavanje sudbina onih koji su nepravedno nestali. Europska unija mora iskoristiti svoju pregovaračku moć i osigurati da se ovo pitanje stavi visoko na dnevni red pretpristupnih pregovora. Pristup Europskoj uniji podrazumijeva vrijednost istine, pravde i ljudskih prava i u tome ne može i ne smije biti kompromisa. Dok obitelji s neizmjernom boli još uvijek tragaju za svojim najmilijima, a njihovi domovi odzvanjaju najglasnijom tišinom, mi imamo odgovornost. Neprihvatljivo je da oni koji imaju informacije o nestalima i dalje šute. Otvorite arhive, bez toga nema zaključavanja pregovora.

Antonella Sberna (ECR). – Signor Presidente, onorevoli colleghi, oggi, 10 febbraio, in Italia celebriamo il Giorno del ricordo, una giornata dedicata alla memoria delle vittime italiane delle foibe e delle centinaia di migliaia di persone costrette all’esodo dalle terre giuliano-dalmate, una ferita ancora aperta, perché molti di loro restano senza nome e molte famiglie senza una verità.

Ma il dolore dei dispersi non è solo un ricordo del passato. Ancora oggi, in troppi conflitti, migliaia di persone scompaiono senza lasciare traccia. A Cipro, a cinquant’anni dall’invasione turca, oltre 2 000 persone risultano ancora disperse. Nei Balcani, durante le guerre degli anni ’90, sono molti i casi irrisolti, così come in Ucraina migliaia di bambini sono stati deportati, separati dalle loro famiglie, vittime di un’ingiustizia che segnerà intere generazioni.

La tecnologia, a questo punto, può essere un alleato prezioso nella ricerca delle persone scomparse. L’uso del telerilevamento satellitare e della tecnologia LiDAR può aiutare a individuare fosse comuni e raccogliere prove fondamentali per identificare le vittime e restituire loro la dignità.

L’Unione europea deve investire in queste tecnologie, ma oltre alla tecnologia serve la volontà politica. L’Unione europea deve farsi promotrice di meccanismi vincolanti per la ricerca delle persone scomparse, affinché nessun paese possa ostacolare la verità.

Cari colleghi, il diritto alla verità non ha scadenza. Le famiglie di chi è scomparso continuano a cercare, senza scelta e senza tempo. È nostro dovere stare al loro fianco, trasformando i valori dell’Europa in azioni concrete.

Hannah Neumann (Verts/ALE). – Mr President, ‘Bring out the dead dogs’. That’s how prison guards ordered inmates to carry out the bodies of those who died overnight in Sednaya Prison in Syria. What happened to those bodies? Nobody knows. For decades, the Assad regime has used forced disappearances as a tool of repression. More than 100 000 people have disappeared under his rule. Over 100 000 remain missing today. Now, for the first time in decades, there is a real chance to uncover the truth. Syrian experts are already on the ground, documenting crimes, exhuming mass graves, protecting evidence. But they need our support, financially and politically, to fund Syrian civil society working for truth, justice and reconciliation, to press Syria’s new rulers to make transitional justice a priority, to strengthen the UN mechanism on missing people, to ensure independent investigations. Because this is the only way to hold perpetrators accountable, to help families find out what happened to their loved ones, and to support Syrians rebuilding a country that heals its wounds and will be a free country for everyone.

Fidias Panayiotou (NI). – Mr President, my uncle has been missing since the Turkish invasion of my country, Cyprus, in 1974. This had a huge impact on my family. My father was seven years old when he witnessed a suicide attempt by my grandmother because she couldn’t handle it. My uncle is one of the 2 000 Greek Cypriots and Turkish Cypriots who had disappeared, mainly during the Turkish invasion in 1974 and the intercommunal fighting of 1964. The remains of these communities’ people are being searched for by communal committee, and by today half of them have been identified and returned to their relatives, who, unlike my grandmother, were lucky enough to live until that day of relief.

I want to thank the European Union because it is the biggest funder of this committee, giving so far EUR 35 million. Please continue to fund this project, which not only brings peace to families like mine, but also encourages cooperation between the two communities of the island, increasing the chance of a potential solution to the Cyprus problem.

Φρέντης Μπελέρης (PPE). – Κύριε Πρόεδρε, η Οικουμενική Διακήρυξη για τα Ανθρώπινα Δικαιώματα ξεκαθαρίζει πως όλοι έχουν το δικαίωμα στην αξιοπρέπεια και τη δικαιοσύνη. Αλλά ποια αξιοπρέπεια, ποια δικαιοσύνη υπάρχει για εκείνους των οποίων η μοίρα παραμένει άγνωστη;

Θέλω να επικεντρωθώ σε δύο κράτη, την Κύπρο, όπου πενήντα χρόνια μετά την τουρκική εισβολή, χιλιάδες οικογένειες αναζητούν τους οικείους τους, και την Αλβανία, όπου εξακολουθούν να αγνοούνται περίπου 6.000 άνθρωποι που χάθηκαν κατά τη διάρκεια της κομμουνιστικής θηριωδίας. Το ίδιο φαινόμενο έχει παρατηρηθεί και σε άλλες χώρες. Έχουμε λοιπόν την ηθική και πολιτική ευθύνη να βοηθήσουμε στην αποκατάσταση αυτής της αδικίας.

Το Ευρωπαϊκό Κοινοβούλιο το 2015 έκανε το πρώτο βήμα, εγκρίνοντας ψήφισμα σχετικά με ομαδικούς τάφους αγνοουμένων στο χωριό Ορνίθι, στο κατεχόμενο τμήμα της Κύπρου. Ήρθε η ώρα να το ξανακάνουμε. Γιατί πίσω από κάθε αγνοούμενο υπάρχει μια οικογένεια, μια ιστορία και ατελείωτος πόνος. Πίσω από κάθε αλήθεια που δεν έρχεται στο φως υπάρχουν οι δικές μας ευθύνες.

Leire Pajín (S&D). – (inicio de la intervención fuera de micrófono) … aquí este debate, pero les invito a que sea un debate sincero, fuera hipocresías.

Porque la Declaración Universal de Derechos Humanos es una declaración de paz para que todas las personas vivan libres e iguales en dignidad y derechos, y hay grupos en esta Cámara que diferencian las crisis humanitarias y también las víctimas: solo hay que ver lo que dicen o cómo responden a las víctimas de Gaza o de otras crisis; tampoco lo hacen en mi país donde tiempo después, mucho tiempo después de esa declaración, todavía sufríamos una larga dictadura llena de desapariciones y de muertes.

Señorías, una Europa sin memoria es una Europa que no puede mirar al futuro ni a la convivencia en paz; una Europa sin memoria es aquella donde los jóvenes no saben lo que pasó ni lo que fue la conquista de la libertad. Por eso queremos una Unión Europea que garantice el derecho a la memoria, a la reparación y a la justicia en todo el mundo, también en España, y que impida la derogación de leyes de la memoria que condena a las víctimas a seguir en las cunetas.

Por eso, dejémonos de hipocresía y luchemos por la memoria y la dignidad de todas las víctimas en el mundo, también en Europa y en España.

Sebastian Everding (The Left). – Herr Präsident! Liebe Kolleginnen und Kollegen! Wie soll an vielen Stellen auf der Welt ein dauerhafter Frieden vermittelt werden, wenn Familien keine Antwort auf das Schicksal ihrer Angehörigen haben? Dies stellt eines der größten Hindernisse für die Heilung, Versöhnung und den Wiederaufbau von Gesellschaften dar.

Die Zahlen sind dabei mehr als erschreckend, denn mehr als 71 000 Menschen in Afrika gelten als vermisst und rund 42 000 Menschen in der Ukraine. Dabei sind es wohlgemerkt nicht nur Soldaten, sondern auch viele Zivilisten. Aber wir müssen gar nicht so weit wegschauen, denn auch in Zentraleuropa werden rund 10 000 Menschen vermisst, deren sterbliche Überreste nach dem gewaltsamen Zerfall Jugoslawiens nie gefunden wurden.

Die internationale Gemeinschaft und auch die EU müssen dringend Schritte ergreifen, um einen wirksamen Weg zur Klärung des Schicksals und Verbleibs vermisster Menschen zu finden. Denn ohne Fortschritte kann es aufgrund der Schmerzen, des Verlustes und der empfundenen Ungerechtigkeit keinen dauerhaften Frieden in vielen Regionen geben.

Ich schließe mit den Worten von George Bernard Shaw, der sagt: Krieg ist ein Zustand, bei dem Menschen aufeinander schießen, die sich nicht kennen, auf Befehl von Menschen, die sich zwar kennen, aber nicht aufeinander schießen.

Ana Catarina Mendes (S&D). – Senhor Presidente, caros colegas, acabo de chegar de uma difícil missão a Palestina e a Israel, onde pude testemunhar a destruição, o desespero e as condições precárias nas quais tentam sobreviver milhares de pessoas, das quais muitas crianças. Gaza é uma das regiões com maior densidade populacional no mundo, que enfrenta há anos desafios diários devido às restrições sistémicas e aos recursos limitados. Desde o terrível ataque de 7 de outubro de 2023 que as condições pioraram ainda mais. Todas as guerras e conflitos, e este não é exceção, deixam também as marcas dos desaparecidos. As mães da Praça de Maio, na Argentina, as Mães de Sábado, na Turquia, livros e filmes como o recente Ainda Estou Aqui, sobre Rubens Paiva, no Brasil, mostram a desumanidade dos desaparecimentos e a apneia da procura de respostas em que os seus familiares mergulham durante décadas. Juntemos a isto a Síria, Chipre, a Ucrânia. Nos dias de hoje, a Declaração Universal dos Direitos Humanos pretende garantir que os seus apelos por verdade, justiça e pela não repetição da história sejam ouvidos. Lutemos pela memória para continuarmos a viver em liberdade, com respeito pelos direitos humanos.

(A oradora aceita responder a uma pergunta «cartão azul»)

François-Xavier Bellamy (PPE). – Monsieur le Président, Madame la Commissaire, 50 ans après l’invasion de Chypre par la Turquie, des centaines de Chypriotes sont encore aujourd’hui formellement portés disparus. Leurs familles n’ont pas seulement perdu ceux qu’elles aimaient, elles ont été privées de la vérité et, sans cette vérité, elles ne peuvent pas faire leur deuil. Ce n’est pas une abstraction. Notre collègue Fidias Panayiotou vient de nous donner un exemple très concret de ce que peuvent signifier dans une vie, dans la vie d’une famille, ces personnes qui manquent à l’appel.

Chers collègues, je parlais moi-même avec un ami chypriote, il y a quelques semaines de cela, qui me disait: «Bien sûr, la guerre a été terrible, mais plus terrible encore, peut-être, aura été, après la guerre, d’être privés de savoir où sont ceux que nous avons perdus.»

Aujourd’hui, nous avons un devoir, tous ensemble, et comme rapporteur de ce Parlement pour cette mission qui nous réunit, je veux travailler avec toutes les forces politiques de cet hémicycle, parce que si une question doit dépasser les clivages, c’est bien celle-là.

Notre devoir, c’est de faire en sorte qu’enfin la Turquie coopère et qu’elle dise la vérité. Que nous puissions savoir enfin offrir à ces familles endeuillées la vérité à laquelle elles ont droit, parce que le temps passe et le temps court et, ce temps qui court, c’est celui des générations qui vont bientôt nous quitter et qui ont le droit de connaître le sort de ceux qu’elles ont aimés avant de partir.

Cette urgence absolue, la Cour européenne des droits de l’homme l’a rappelée à de très nombreuses reprises. C’est à notre Parlement aujourd’hui de faire en sorte que la Turquie puisse enfin rentrer dans cette coopération dont nous avons tellement besoin, parce que la justice en dépend, la vérité en dépend, ainsi que le salut de ces familles dont nous parlons, qui est la cause qui nous réunit.

Murielle Laurent (S&D). – Monsieur le Président, Madame la Commissaire, chers collègues, en 2024, le Comité international de la Croix-Rouge a annoncé que, pour le seul continent africain, plus de 71 000 personnes étaient portées disparues en raison des conflits armés, de la violence et du contexte migratoire, soit 75 % de plus qu’en 2019.

Ces disparitions sont l’une des conséquences humanitaires les plus désastreuses et durables des conflits. Souvenons-nous que, derrière chaque personne disparue, beaucoup d’autres souffrent de l’incertitude et c’est inconcevable. Si cela avait lieu en Europe, il serait inimaginable de ne pas chercher les disparus, et en particulier les enfants.

Il est urgent de parler de ces personnes, de reconnaître la souffrance, le désespoir des familles et d’attirer l’attention de l’Union européenne, de prévenir et de résoudre les disparitions des personnes, quelles que soient les circonstances.

Enfin, je souhaite rappeler que de nombreux migrants disparaissent au cours de leur déplacement, trop souvent périlleux, vers l’Europe, ou une fois arrivés.

Il est essentiel que l’Union européenne évalue l’impact de ses politiques migratoires sur le risque de disparition des migrants et facilite les opérations de secours en mer afin d’éviter les tragédies, qui font trop souvent la une de nos journaux.

Maria Guzenina (S&D). – Mr President, right now, as we speak, thousands of Ukrainian children have been ripped from their homes, torn from the arms of their families, forcefully deported to Russia and Belarus, detained in Russian prisons, forced into adoption, stripped of their identities. These children are being erased. A grave violation of international law.

Even in this room, I have heard Russian propaganda attempting to twist this horror into something it is not. Let me say this plainly: this is not a topic for propaganda. This is a moral line that demands the united will of the entire European Parliament. We must act. We must act now. The EU must impose sanctions against those responsible for these atrocities. And more than that, we must demand that these children, these stolen lives, are returned to their homes, to their families, to their loved ones. These children are not just numbers in a report; they are lives stolen. And we cannot, we must not let them be forgotten. So bring them home.

Solicitudes incidentales de uso de la palabra («catch the eye»)

Sebastian Tynkkynen (ECR). – Arvoisa puhemies, kun terroristijärjestö Hamas otti viattomia israelilaissiviilejä panttivangiksi, omaisten tuskan voi vain kuvitella. Ajattele, jos joutuisit itse miettimään taukoamatta, tuleeko itselle rakas ihminen koskaan takaisin, ja jos tulee, millaisia kauheuksia kokeneena. Samaa joutuvat miettimään lukuisat ja lukuisat perheet parhaillaan Ukrainassa. Käveleekö oma poikani enää koskaan tuosta kotiovesta? Jos ei kävele, millaiset mahtavat olla hänen viimeiset hetkensä?

Kun me vahvistamme Euroopan turvallisuutta, oli kyse sitten puolustuksen ylösajosta tai terrorismin kitkemisestä, kyse ei ole vain poliittisista päätöksistä. Kyse on eurooppalaisten perheiden suojelusta. Kun Euroopalta tällaisten uhkakuvien edessä vaaditaan kovaa linjaa, vasemmisto yhä edelleen vastustaa. En voi käsittää, ja siksi kysyn, mikä teidän arvoissanne on oikein vialla?

Diana Iovanovici Şoşoacă (NI). – Domnule președinte, vorbiți de drepturile omului și sunteți instituția care le încalcă cel mai mult. Începând cu plandemia, ați distrus tot ceea ce înseamnă drepturile omului. Vorbiți de Israel, le luați apărarea, dar nu vedeți că au murit peste 45 000 de femei și copii.

Vorbiți de Ucraina, dar de ce nu vorbiți, vă rog, de românii din Ucraina, peste un milion care sunt supuși exterminării de Zelensky, pe care dumneavoastră îl luați în brațe? Nu vedeți nici măcar că Ursula von der Leyen l-a sprijinit pe Președintele României, domnul Klaus Werner Iohannis, care are dosare pentru vânzare de copii.

Vă anunț că astăzi, domnul Klaus Werner Iohannis, la presiunea politică, inclusiv a partidului meu, pe care îl conduc, S.O.S. România, și-a dat demisia. Ați încălcat dumneavoastră și ați permis încălcarea drepturilor omului, ați omorât oameni în pandemie, omorâți oameni, trimițând arme în Ucraina și vă bateți joc de tot ceea ce înseamnă, din Fâșia Gaza, palestinienii. Nu așa se face politică! Cu tot respectul, învățați să (…)

(Președintele a retras cuvântul vorbitoarei)

Γεώργιος Αυτιάς (PPE). – Κύριε Πρόεδρε, πρέπει να κινηθούμε αποφασιστικά, με μέτρα κοινωνικά, γιατί χωρίς τον άνθρωπο, οι κοινωνίες δεν μπορούν να προχωρήσουν. Μισθοί, συντάξεις, ασφαλιστικό, ακρίβεια, στέγαση. Όλα αυτά, λοιπόν, απαιτούν από εμάς άμεση δράση, άμεση κινητοποίηση. Καμία κοινωνία δεν μπορεί να στηριχθεί, αν δεν έχει τον άνθρωπο μπροστά σε όλες τις δραστηριότητες.

Παράλληλα, θα πρέπει να στηρίξουμε τους ανθρώπους οι οποίοι απειλούνται από την τεχνητή νοημοσύνη. Είναι οι συγγραφείς, είναι οι δημιουργοί, είναι οι καλλιτέχνες. Ζουν μια ανηλεή αντιγραφή στα έργα τους. Άπειρη προσοχή, λοιπόν, να κινηθούμε προς αυτή την κατεύθυνση. Να στηρίξουμε ανθρώπους, να στηρίξουμε τη γνώση, γιατί η κοινωνία δεν μπορεί να περιμένει άλλο.

Carola Rackete (The Left). – Herr Präsident! Ich muss sagen, diese Debatte erfüllt mich auch mit wahnsinnig viel Wut, denn es gibt Tausende von Opfern, deren Überreste auf dem Boden des Mittelmeers liegen. Menschen auf der Flucht, die von der EU sterben gelassen wurden und die niemand gerettet hat, als sie noch gelebt haben.

Diese Krise ist das Resultat der Abschottungspolitik, die in diesen Sälen entschieden wird. Eine Schande! Ich selber habe, als ich auf dem Schiff gearbeitet habe, doch wirklich so häufig der Küstenwache die Leichen gemeldet, und nie haben sie eigentlich Lust, die Leichen aufzunehmen, die DNA zu nehmen, die Leute zu identifizieren oder einfach die Leichen dann ordentlich zu beerdigen.

Es gibt Tausende und Abertausende von Familien in Afrika, die ihre Verwandten suchen. Diese Leute hätten alle – alle – lebend gerettet werden können, wenn die EU sich zu einer vernünftigen Seenotrettungsmission, staatlich finanziert, entscheiden würde.

Bedanken möchte ich mich hier wirklich und sehr ernsthaft bei den Hunderten und Tausenden von Freiwilligen des Roten Halbmonds in Tunesien und Libyen, die sich um die Leichen kümmern, die dort angeschwemmt werden.

Κώστας Παπαδάκης (NI). – Κύριε Πρόεδρε, μόνο στην Ουκρανία βλέπετε αγνοούμενους. Για τους χιλιάδες Παλαιστινίους στη Γάζα ούτε κουβέντα. Πενήντα ένα χρόνια, όμως, μετά από την τουρκική εισβολή και κατοχή στην Κύπρο, που και αυτή οδήγησε σε χιλιάδες νεκρούς, αγνοούμενους και εκτοπισμένους.

Είναι απαράδεκτο μετά από τόσα χρόνια οικογένειες αγνοουμένων με τους συλλόγους τους σε Κύπρο και Ελλάδα να επωμίζονται το βάρος, όχι μόνο της απουσίας και απώλειας των ανθρώπων τους, αλλά να αναλαμβάνουν ευθύνες που βαρύνουν κράτη και κυβερνήσεις για τη συγκέντρωση στοιχείων, τη διακρίβωση της τύχης των αγνοουμένων πολιτών και στρατιωτών, παράλληλα με τη Διερευνητική Επιτροπή Αγνοουμένων.

Η έρευνα αυτή υπονομεύεται από τη στάση του κράτους της Τουρκίας, που κρατά κλειστά τα στρατιωτικά αρχεία για τους χώρους ομαδικής ταφής των αγνοουμένων με αλλοιώσεις τόπων ταφής, μετακίνηση λειψάνων, εμποδίζοντας τις έρευνες. Να ανοίξει τώρα η τουρκική κυβέρνηση τα κρατικά και στρατιωτικά αρχεία. Να γίνει αποτελεσματική έρευνα στα κατεχόμενα για την ταυτοποίηση και απόδοση των λειψάνων, την αποζημίωση και στήριξη των οικογενειών των αγνοουμένων, μέχρι να διακριβωθεί και ο τελευταίος αγνοούμενος.

(Fin de las intervenciones con arreglo al procedimiento de solicitud incidental de uso de la palabra («catch the eye»))

El presidente. – Se cierra el debate.

16. One-minute speeches on matters of political importance

Branko Grims (PPE). – Gospod predsednik! V Sloveniji se že ves čas njenega članstva v Evropski uniji očitno zlorablja pravosodje za onemogočanje opozicije, zlasti SDS in njenega predsednika Janeza Janše. Najprej je bil to kafkovski proces Patria, potem sedaj absurdni proces Trenta, nekaj, za kar se je zgodilo pred dvajsetimi leti. Vedno to oživi pred naslednjimi volitvami. Sodnik Radonjić, ki je razgalil pritiske globoke države, je bil zaradi tega sam obtožen, privlečen v lisicah na sodišče in obsojen, čeprav je imel potrdilo zdravnika, da zaradi hude bolezni ni sposoben obrambe na sodišču. Evropsko komisijo sem obširno in argumentirano seznanil z vsemi temi očitnimi kršitvami človekovih pravic v pismih in intervjujih. Vendar Evropska komisija molči, in v pravu velja “Kdor molči, se strinja”. Zato jo pozivam, da pojasni, kako bo ukrepala, da bo tudi v Sloveniji zagotovljen pravni red in da bo vsakomur zagotovljeno pošteno sojenje. Bog vas živi, Bog živi Evropo, Bog živi Slovenijo!

Philippe Olivier (PfE). – Monsieur le Président, les carburants alternatifs sont l’illustration d’une certaine inconséquence de l’Union européenne. Vous édictez des règles, les imposez à nos filières, en l’occurrence l’aérien et le maritime, puis vous laissez le marché décider. Le résultat, ce sont des filières qui ne savent pas à quels procédés techniques se vouer, des infrastructures, par exemple dans les aéroports, dont vous ne vous préoccupez pas, mais surtout des filières de production qui profitent aux Chinois, comme par exemple la phase d’électrolyse pour certains carburants.

Que dire des distorsions de subventions? Quand les USA subventionnent à 3 tout le secteur, vous, vous subventionnez à 0,5 en étant exagérément sélectifs.

L’Europe doit rapidement sortir de sa naïveté et protéger ses industries émergentes en mettant en œuvre une protection économique. Sans cela, la révolution des nouveaux carburants surviendra, certes, mais hors de l’Europe, et surtout à son détriment.

Ana Miranda Paz (Verts/ALE). – Señor presidente, ¿saben qué significa la palabra facha? Se lo explico. Vean los vídeos y fotografías del cónclave de fachas que se celebró en Madrid el fin de semana pasado: Abascal, Orbán, Le Pen, Wilders, Salvini, André Ventura. Lo peor de cada casa pagado por el Grupo Patriotas por Europa del Parlamento Europeo. Teorías conspiranoicas, negacionismo climático, discursos de odio contra la democracia y la Europa de los pueblos, contra los colectivos más vulnerables, contra el colectivo LGBTIQ+, contra nosotras, las mujeres. En definitiva, una exaltación y un ataque fascista y a la democracia. Fascismo que campa a sus anchas, que ya controla y marca la agenda en algunos Estados miembros de la Unión Europea. ¿Cuándo va Europa a despertar y parar este monstruo de fanatismo contra los derechos y libertades?

En 2018 fui ponente de este Parlamento para la Resolución sobre el auge de la violencia neofascista en Europa, para pararles los pies y resistir contra esta nueva embestida. Esa Resolución decía claramente que no se debía exaltar el neofascismo. Poco ha hecho Europa para pararles; les lava la cara, sobre todo el PP español, que permite y blanquea esos cónclaves fachas.

Recuerden la palabra, señores de allí: fachas. Que no se les olvide. Una peste para Europa.

Hélder Sousa Silva (PPE). – Senhor Presidente, a segurança e a defesa finalmente tornaram‑se prioridades da nossa União. A segurança e a defesa, depois da alimentação e da água, estão na base da pirâmide das necessidades humanas. Sem segurança e defesa não há direitos sociais. E o investimento na defesa não é apenas uma despesa, tem um efeito multiplicador na economia, tal como a criação de emprego, na investigação científica e no desenvolvimento social. O reforço da defesa pode e deve ser financiado sem sacrificar o modelo social europeu, por exemplo, através de empréstimos europeus tipo PRR de maior envolvimento do Banco Europeu de Investimento, assim como de maior liberdade fiscal para os Estados-Membros. A diplomacia só é eficaz quando está apoiada numa capacidade de defesa credível. Países que não têm meios militares próprios tornam‑se dependentes da boa vontade de outros. Portanto, a Comissão Europeia não pode esperar até 2028 para agir, porque isso seria perder mais três anos e dar vantagem competitiva aos nossos adversários.

Séverine Werbrouck (PfE). – Monsieur le Président, en ce moment même, plus de 450 navires de pêche sont bloqués à quai à cause de la brutale et irrationnelle reconduction de l’interdiction de pêche dans le golfe de Gascogne.

En plus de pénaliser les pêcheurs qui ont déjà consenti à d’importants efforts, cette mesure a entraîné des pertes considérables pour l’ensemble des métiers à terre. Il est essentiel de rappeler qu’un emploi en mer génère trois à quatre emplois à terre: mareyeurs, mécaniciens, électriciens, forgerons maritimes, poissonniers dépendent directement de l’activité des bateaux. Sans indemnisation, ces professions subissent de lourdes pertes économiques avec des baisses de chiffre d’affaires sans aucune compensation.

Les pêcheurs sont nos paysans de la mer. Ils ne demandent pas à vivre de subventions, mais à vivre de leur travail artisanal, à assurer leur rôle essentiel pour la souveraineté alimentaire et à transmettre leur savoir-faire aux générations futures. Ils appellent à des solutions pérennes, conciliant protection de la biodiversité et survie économique, plutôt qu’à des fermetures récurrentes et inefficaces qui mettent en péril de manière irréversible une filière qui fait notre fierté.

Waldemar Buda (ECR). – Szanowni Państwo, wczoraj kanclerz Olaf Scholz przyznał w debacie z Friedrichem Merzem, że po prostu łamie prawo, to znaczy odsyła imigrantów, przewozi z własnego kraju do sąsiadów, w tym do Polski. W 2024 r. to było już kilkanaście tysięcy osób. To jest jawne i oczywiste łamanie przepisów, również europejskich. Dlatego z tego miejsca żądam reakcji Komisji Europejskiej.

Dzisiaj pakt migracyjny jeszcze nie obowiązuje, w związku z tym nie można robić tego typu zabiegów w celu ratowania własnych obywateli, ponieważ my jako Polacy się z tym nie zgadzamy. Informacja o tym, że polski premier Donald Tusk wyraził na to zgodę, jest skandaliczna. I chciałbym państwa poinformować, że Donald Tusk nie ma zgody obywateli na tego typu działania, nie ma zgody na podpisanie paktu migracyjnego, czego już dokonał. I przygotowujemy w Polsce referendum, które pokaże sprzeciw wobec was, wobec Komisji Europejskiej, Niemców i wobec tego nierządu, który dzisiaj mamy w Polsce.

Hannah Neumann (Verts/ALE). – Mr President, even loving your parents is a crime under the brutal rule of the Iranian regime. Nima was three years old when his mother, Sakharov laureate Nasrin Sotoudeh, was thrown into prison. Her crime? Defending women’s rights. Nima grew up visiting her through glass barriers. His father, Reza, held the family together while the regime tried everything to tear it apart. And now they have come for Reza to punish Nasrin for not wearing hijab. Nima, now 17, wanted to see his father in prison. But in Iran even that is a battle. When he protested the sudden cancellation of an in-person visit, they beat him up, smashed his head against the stairwell, ripped out his earring, left him handcuffed and bleeding. Nasrin screamed until she lost her voice. For years, Nasrin and Reza have tried to shield their children from the horrors of the regime, but in that moment it all collapsed. Yet Nasrin’s message is clear: she will not surrender. She will keep fighting for a future beyond this darkness. And we will stand with her. We will stand with Nima, with Reza, with the countless families shattered by this regime. Until the mullahs open the doors of Evin. Until no child goes up into the shadows of prison walls anymore. (The speaker concluded in a non-official language.)

Victor Negrescu (S&D). – Domnule președinte, să cumpărăm local, să susținem producătorii și fermierii – asta spuneam în urmă cu câțiva ani, tot aici, în Parlamentul European. Între timp, am promovat o petiție aprobată de legislativul european, am interpelat comisia, am amendat legislația, am obținut fonduri europene suplimentare pentru fermierii și producătorii români și am îmbunătățit drepturile lucrătorilor din supermarketuri și ale celor care lucrează pentru platformele online.

Extremiștii din România tăceau atunci și făceau cumpărături în magazine de lux. Nici acum nu vin cu vreo soluție viabilă, copiind și suindu-se pe un trend european pe care nici măcar nu îl înțeleg. Dincolo de gălăgia eurosugativelor suveraniste, avem responsabilitatea să ne concentrăm pe soluții: mai puțini intermediari, accesul micilor producători în supermarketuri, fără taxe de raft, susținerea brandurilor locale, mai puțină birocrație și subvenții mai mari pentru fermieri.

Doar prin măsuri comune la nivel european putem să sprijinim micii fermieri. Să nu abordăm acest subiect cu populism! Să ne concentrăm pe soluții reale pentru oameni!

Rody Tolassy (PfE). – Monsieur le Président, chers collègues, Haïti sombre dans le chaos absolu. Cinq mille morts en un an, des corps mutilés, brûlés, des massacres ciblés, un État en ruine, livré aux gangs, qui contrôlent 80 % de Port-au-Prince. Et pourtant, des milliards d’euros ont été investis pendant des décennies de coopération. Pour quel résultat? Éducation en lambeaux, insécurité alimentaire, dignité humaine piétinée. L’échec total.

Ce chaos déborde. Une bombe migratoire menace nos territoires et tout le bassin caribéen. La pression devient insoutenable. L’Union européenne peut-elle cautionner, continuer de se cacher derrière des discours creux et des programmes inefficaces? Où sont les résultats? Quelles actions concrètes allons-nous prendre pour garantir la sécurité et la survie du peuple haïtien?

Nous devons rompre avec cette logique d’échec. Exigeons des résultats immédiats de la mission multinationale et agissons. Une mission de codéveloppement immédiate est indispensable pour stabiliser Haïti et lui offrir un avenir.

L’heure est à l’action, pas au constat.

Jaume Asens Llodrà (Verts/ALE). – Señor presidente, este fin de semana en Madrid ha habido un cónclave de ultras, lo mejor de cada casa de la internacional reaccionaria. También se ha emitido una serie documental de una periodista, Mònica Terribas, sobre el Opus Dei, organización a la que muchos de ellos pertenecen. ¿Y qué relación tiene una cosa con la otra? Pues que mientras en su particular cruzada religiosa contra las comunidades musulmanas han puesto otra vez el grito en el cielo contra estas, en cambio, han callado, no han dicho nada, frente a los abusos que ese documental ha puesto sobre la mesa: amenazas, coacciones, secuestros, explotación laboral y sexista, privación de la libertad, etcétera.

Ese es el modus operandi de una organización que actúa en más de sesenta países como una secta peligrosa, como una organización criminal, y desde Europa no podemos quedarnos callados: debemos actuar y dar protección a las víctimas, que puedan ejercer su derecho a la verdad, a la reparación y a la justicia, como hicieron los menores abusados sexualmente por la Iglesia católica.

Carola Rackete (The Left). – Herr Präsident! Vor sieben Monaten hat das Berliner Kammergericht eine Person, Maja T., nach Ungarn ausgeliefert, und letzte Woche hat dann das Bundesverfassungsgericht Majas Beschwerde darüber stattgegeben und festgehalten, dass die Auslieferung ein schwerwiegender Eingriff in Majas Grundrecht ist, der immer noch andauert. Explizit genannt wurde in der Begründung die unmenschliche Behandlung in Ungarn, die gegen die EU-Grundrechtecharta verstößt. Frankreich und Italien haben sich in ähnlichen Fällen gegen Auslieferungen nach Ungarn entschieden.

Maja T. ist seit sieben Monaten in Isolationshaft, und schon 15 Tage sind laut UN Folter. In der Zelle gibt es Kakerlaken und Bettwanzen. Die Dokumente für das Gerichtsverfahren wurden nicht übersetzt. Ich selbst habe Maja schon zweimal besucht, und auch die Justizbeamten haben mir gesagt, dass die Haftbedingungen von oben angeordnet wurden – und zwar, denke ich, weil Maja eine antifaschistisch motivierte Tat vorgeworfen wird. Die Forderung von 24 Jahren Haft ist ebenfalls politisch.

Ich fordere alle europäischen Mitgliedstaaten auf, keine Menschen mehr nach Ungarn auszuliefern, denn wir wissen ja, wie die Haftbedingungen dort sind. Die deutsche Bundesregierung fordere ich auf, Maja T. so schnell wie möglich zurückzuholen.

Δημήτρης Τσιόδρας (PPE). – Κύριε Πρόεδρε, όλοι αναγνωρίζουμε ότι ζούμε σε ένα καινούργιο γεωπολιτικό και οικονομικό περιβάλλον. Επίσης, συζητάμε για τις μεγάλες προκλήσεις. Παράλληλα, όμως, θα πρέπει να δούμε και τις ευκαιρίες. Η Ευρώπη πορεύτηκε πάντα μέσα από δυσκολίες.

Είναι ευκαιρία, λοιπόν, για κοινές πολιτικές. Να δώσουμε απαντήσεις στα ερωτήματα των πολιτών. Γιατί, όσο δεν δίνουν αυτές τις απαντήσεις οι φιλοευρωπαϊκές δυνάμεις, δίνουμε τον χώρο σε ακραίες φωνές, οι οποίες θέλουν επιστροφή στο παρελθόν.

Πρέπει να δούμε πρώτα από όλα το ζήτημα της ασφάλειας και της άμυνας. Πρέπει οι Ευρωπαίοι πολίτες να αισθάνονται ασφαλείς. Πρέπει να νιώθουν ότι υπάρχουν κοινά ευρωπαϊκά σύνορα, τα οποία προστατεύονται. Πρέπει να υπάρχει κοινή δέσμευση στην άμυνα και παράλληλα να νιώθουν ότι, με τις πολιτικές που εφαρμόζονται σε ευρωπαϊκό επίπεδο, εξασφαλίζεται ένα καλύτερο μέλλον για αυτούς και τα παιδιά τους. Οι καιροί δεν περιμένουν και είναι η ώρα να δράσουμε αποφασιστικά τώρα.

Maria Grapini (S&D). – Domnule președinte, doamnă comisară, politica energetică pe care a făcut-o Comisia Europeană – nu dumneavoastră, cea care a fost – este dezastruoasă. Efectele asupra competitivității, mai ales pentru întreprinderile mici și mijlocii, se văd acum. Doamna comisară, vă propun să discutați în Colegiul comisarilor, să faceți o adevărată politică energetică.

Nu se poate să închidem întâi producerea de energie, înainte de a avea alternativă. Și este clar că s-a intrat în criză. Atât timp cât întreprinderile din Uniunea Europeană plătesc de trei, patru ori mai mult prețul energiei decât cele din Statele Unite sau din Asia, evident că nu mai sunt competitive, evident că sunt într-o competiție inegală, evident că sunt scoase din piață.

Așadar, politica energetică a Uniunii Europene trebuie făcută în sensul susținerii producției industriale. Avem un program de reindustrializare a Uniunii Europene. Cum să-l facem cu aceste costuri? Cel care face producție știe că inputurile sunt importante pentru prețul final. Sper, de la această Comisie, că într-adevăr – din păcate, avem același dirijor, pe același președinte al Comisiei – dar sper să puneți, într-adevăr, o strategie energetică pentru a crește competitivitatea Uniunii Europene.

Isabella Tovaglieri (PfE). – Signor Presidente, onorevoli colleghi, l’industria dell’auto sta morendo sotto i colpi dell’estremismo green della Commissione europea e i responsabili sono seduti qui in quest’Aula.

Invece di fare marcia indietro, però, vi siete inventati il dialogo strategico sull’automotive, che altro non è che fumo negli occhi e voi ne siete i primi ad essere consapevoli. Riunioni avvolte nella nebbia, lontane da occhi indiscreti, nessuna agenda pubblica, nessun obiettivo preciso. E come finirà? Ve lo dico io: in chiacchiere da bar, che servono solo a pulirvi la coscienza, più che a dare risposte concrete a uno dei settori più strategici dell’industria europea, che voi avete messo in ginocchio.

Invece di tante inutili conferenze e riunioni segrete, fate l’unica cosa che vi chiedono i cittadini europei: cancellate lo stop ai motori tradizionali al 2035, mettete fine alla stagione dell’ideologia green e diamo inizio a quella del pragmatismo.

Andi Cristea (S&D). – Domnule președinte, tehnologia informațională accelerează până la derapaje toate procesele sociale, politice, economice, cu care noi suntem obișnuiți. Ăsta este motivul pentru care astăzi, în același timp, lucrurile sunt mult mai bune decât erau în trecut, dar și mult mai rele.

Domnule președinte, avem nevoie să echipăm cetățenii europeni cu modele mentale, cu instrumente cognitive care să le ofere posibilitatea să navigheze cu succes acest nou mediu informațional.

Propunerea mea pentru Comisia Europeană și îndemnul meu este să folosim bani europeni, pentru programe europene de alfabetizare digitală, alfabetizare tehnologică și alfabetizare media – sunt singurele modalități prin care vom avea cetățeni pregătiți pentru ziua de mâine. Acesta este apelul meu și vă îndemn să acționați!

Virginie Joron (PfE). – Monsieur le Président, chers collègues, grâce à Donald Trump, nous apprenons que la BBC est financée par les Américains, mais aussi par Bruxelles: 1,3 million de livres en 2023. Un chiffre invisible dans le système de transparence financière de la Commission, qui indique 39 millions d’euros payés à la chaîne anglaise depuis 2014.

Pourquoi Bruxelles finance des médias? Est-ce que Reactive, un média europhile, peut critiquer la Commission s’il reçoit 36 millions d’euros de la part de la Commission?

Pourquoi financer des médias étrangers?

Pourquoi financer Internews, dont personne n’a jamais entendu parler, qui reçoit de l’argent de M. Soros ou de lobbys des vaccins? À Paris, leur bureau rue Jeanne d’Arc est désert. Pourtant, Bruxelles leur aurait versé 72 millions d’euros et les Américains, via USAID, près d’un demi-milliard de dollars. Sa présidente gagnerait près de 400 000 dollars par an et, l’année dernière, à Davos, elle a recommandé de démonétiser des sites d’information en développant des listes d’exclusion de publicités.

La Commission doit nous expliquer et surtout doit cesser ces subventions occultes de contrôle des médias et de corruption potentielle.

Juan Fernando López Aguilar (S&D). – Señor presidente, cada semana que transcurre continúan llegando a Canarias esas embarcaciones frágiles, repletas de personas desesperadas que provienen del continente africano. Canarias es Unión Europea, pero continúan llegando también al Caribe las embarcaciones repletas de cadáveres de aquellos desdichados que no lo consiguieron.

Y la lección de tanta tragedia es imperativa: urge que la Comisión acelere la plena aplicación de todas las leyes obligatorias para los Estados miembros que componen el Pacto sobre Migración y Asilo y, particularmente, que acelere la puesta en marcha del coordinador de la UE para la solidaridad, que permita una redistribución ordenada, justa, equitativa y solidaria de aquellas personas en situación muy vulnerable: mujeres con menores, mujeres víctimas de trata y de explotación de personas, y menores no acompañados, que requieren también en España solidaridad, impedida hasta la fecha por la oposición de la derecha.

Urge una reforma legal que la haga posible, pero sobre todo urge que la Comisión exija a todos los Estados miembros el cumplimiento de sus obligaciones con el Pacto y diga con claridad que no es admisible que un jefe de Gobierno —como hemos oído esta semana a Donald Tusk en Polonia— diga que no va a aplicar el Pacto sobre Migración y Asilo, como si ignorase que el Derecho europeo es obligatorio en su primacía y en su eficacia directa para todos los Estados miembros.

Valérie Deloge (PfE). – Monsieur le Président, un nouveau scandale éclabousse les institutions européennes. La Commission européenne a financé des ONG dites environnementales pour faire pression en faveur du pacte vert. Ce green deal, symbole de l’écologie punitive, veut imposer plus de normes, restreindre les agriculteurs et les entreprises et interdire les moteurs thermiques en 2035.

Des millions d’euros d’argent public ont été utilisés via le programme LIFE et distribués à des lobbies. Objectif: influencer les décisions du Parlement européen et les députés, manipuler les débats et durcir la législation verte.

Le commissaire à l’agriculture, M. Hansen, incarne cette dérive. Chargé de préparer une vision sur l’agriculture et l’alimentation, il consulte Greenpeace, WWF, BirdLife. Mais où sont les agriculteurs? Qui écoute ceux qui nous nourrissent?

Pendant que ces groupes dictent la politique agricole, les vrais acteurs de terrain sont méprisés, ignorés. L’Europe n’a pas à être gouvernée par des lobbies qui ne produisent rien, mais qui veulent tout contrôler. Les amis de Mme Von Der Leyen, qui n’ont jamais semé un grain de blé, ni produit un litre de lait, n’ont pas à nous imposer leur utopie.

Ce scandale rappelle d’autres affaires, comme le Qatargate ou les financements troubles d’associations islamistes proches des Frères musulmans. Stop, Bruxelles doit rendre des comptes! Le Parquet européen ainsi que les autorités antifraude doivent faire toute la lumière sur ces affaires. Nous ne lâcherons rien.

Gabriela Firea (S&D). – Domnule președinte, dragi colegi, în România este cutremur politic. Președintele României și-a dat demisia și avem mai bine de trei luni de când agenda publică este ocupată doar de incertitudine. Însă nu trebuie să uităm adevăratul cutremur, mișcare telurică, ce ne poate lovi oricând.

Nu vreau să induc panică, dar este un avertisment al specialiștilor: 7 din 10 români trăiesc în zone cu pericol seismic. Sunt copii care învață în școli nesigure, familii care dorm în blocuri fragile, pacienți care merg să se trateze în spitale pericol public. Și totuși, în ultimii 5 ani, în România și în București, unul dintre cele mai expuse orașe, aproape nimic nu s-a consolidat. În martie se împlinesc 48 de ani de la ultimul mare cutremur.

Da, există un miliard de euro alocat, dar acești bani acoperă doar 55 de clădiri, adică doar 5 % din necesar. Birocrația sufocă măsuri vitale. Fondurile europene sunt insuficient folosite. Și să nu uităm cel mai important lucru: acești bani nu sunt pentru beton și pentru pereți, sunt pentru a proteja oamenii, sunt pentru viață.

De aceea, fac un apel clar: Europa, care și-a asumat protecția cetățenilor săi, trebuie să acționeze acum: fonduri suplimentare, mecanisme simple, prevenție reală, iar autoritățile locale să folosească la maximum resursele financiare ale Uniunii Europene!

17. Agenda of the next sitting

El presidente. – La próxima sesión tendrá lugar mañana, martes 11 de febrero de 2025, a las 9.00 horas.

El orden del día se ha publicado y está disponible en el sitio web del Parlamento Europeo.

18. Approval of the minutes of the sitting

El presidente. – El Acta de la presente sesión se someterá a la aprobación del Parlamento mañana al comienzo de la tarde.

19. Closure of the sitting

(Se levanta la sesión a las 22.08 horas).

MIL OSI Europe News –

February 12, 2025

MIL-OSI: Anterix Inc. Reports Third Quarter Fiscal Year 2025 Results

Source: GlobeNewswire (MIL-OSI)

WOODLAND PARK, N.J., Feb. 11, 2025 (GLOBE NEWSWIRE) — Anterix (NASDAQ: ATEX) today announced its third quarter fiscal 2025 results and filed its Form 10-Q for the three and nine months ended December 31, 2024. The Company also issued an update on its Demonstrated Intent metric which can be found on Anterix’s website at https://investors.anterix.com/Q32025.

Financial and Operational Highlights

Tom Kuhn appointed as Executive Chairman of the Board following the retirement of Morgan O’Brien
Industry engagement initiative announced in February 2025 to accelerate private wireless broadband opportunity
Strategic review process initiated in February 2025 after receiving inbound interest in the Company
Cash and cash equivalents of $28.8 million as of December 31, 2024
Approximately $147 million of contracted proceeds outstanding with $1.0 million received from Ameren Corporation in October 2024 and $34.0 million received from Oncor Electric Delivery Company in January 2025
Projected operating expenses run rate reduction of approximately 20% planned for fiscal 2026
Approximately $3 billion pipeline of prospective contract opportunities across 60+ potential customers

Liquidity and Balance Sheet

At December 31, 2024, the Company had no debt and cash and cash equivalents of $28.8 million. In addition, the Company had a restricted cash balance of $7.6 million in escrow deposits.

The Company has an authorized share repurchase program for up to $250.0 million of the Company’s common stock on or before September 21, 2026. In the fiscal third quarter of 2025, Anterix had share repurchase activity of $4.4 million and approximately $229.6 million remains under the current share repurchase program as of December 31, 2024.

Conference Call Information

Anterix senior management will hold an analyst and investor conference call to provide a business update at 9:00 A.M. ET on Wednesday February 12, 2025. Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain a dial-in number and unique PIN. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast live and will be accessible on the Investor Relations section of Anterix’s website at https://investors.anterix.com/events-presentations. Following the event, a replay of the call will also be available on the Anterix website.

About Anterix Inc.

At Anterix, we partner with leading utilities and technology companies to harness the power of 900 MHz broadband for modernized grid solutions. Leading an ecosystem of more than 100 members, we offer utility-first solutions to modernize the grid and solve the challenges that utilities are facing today. As the largest holder of licensed spectrum in the 900 MHz band (896-901/935-940 MHz) throughout the contiguous United States, plus Alaska, Hawaii, and Puerto Rico, we are uniquely positioned to enable private wireless broadband solutions that support cutting-edge advanced communications capabilities for a cleaner, safer, and more secure energy future. To learn more and join the 900 MHz movement, please visit www.anterix.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events or achievements such as statements in this press release related to Anterix’s business or financial results or outlook. Actual events or results may differ materially from those contemplated in this press release. Forward-looking statements speak only as of the date they are made and readers are cautioned not to put undue reliance on such statements, as they are subject to a number of risks and uncertainties that could cause Anterix’s actual future results to differ materially from results indicated in the forward-looking statement. Such statements are based on assumptions that could cause actual results to differ materially from those in the forward-looking statements, including: (i) the timing of payments under customer agreements; (ii) Anterix’s ability to clear the 900 MHz Broadband Spectrum on a timely basis and on commercially reasonable terms; (iii) Anterix’s ability to qualify for and timely secure broadband licenses; (iv) Anterix’s ability to execute on its industry engagement initiatives; (v) the timing and outcome of Anterix’s strategic review process; (vi) whether Anterix will be able to identify, develop or execute on any actions as a result of its strategic review process and (vii) competition in the market for spectrum and spectrum solutions offered by Anterix. Actual events or results may differ materially from those contemplated in this press release. Anterix’s filings with the Securities and Exchange Commission (“SEC”), which you may obtain for free at the SEC’s website at http://www.sec.gov, discuss some of the important risk factors that may affect the Company’s financial outlook, business, results of operations and financial condition. Anterix undertakes no obligation to update publicly or revise any forward-looking statements contained herein.

Shareholder Contact

Natasha Vecchiarelli
Vice President, Investor Relations & Corporate Communications
Anterix
973-531-4397
nvecchiarelli@anterix.com


Anterix Inc. Earnings Release Tables Consolidated Balance Sheets (in thousands, except share and per share data)

	December 31, 2024			March 31, 2024
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	28,797		$	60,578
Spectrum receivable		8,147			8,521
Escrow deposits		198			—
Prepaid expenses and other current assets		3,139			3,912
Total current assets		40,281			73,011
Escrow deposits		7,433			7,546
Property and equipment, net		1,579			2,062
Right of use assets, net		4,717			4,432
Intangible assets		246,215			216,743
Deferred broadband costs		25,976			19,772
Other assets		478			1,328
Total assets	$	326,679		$	324,894
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and other accrued expenses	$	9,009		$	8,631
Accrued severance and other related charges		2,290			—
Operating lease liabilities		1,745			1,850
Contingent liability		5,397			1,000
Deferred revenue		5,962			6,470
Total current liabilities		24,403			17,951
Operating lease liabilities		3,609			3,446
Contingent liability		22,033			15,000
Deferred revenue		120,099			115,742
Deferred gain on sale of intangible assets		4,911			4,911
Deferred income tax		6,736			6,281
Other liabilities		143			531
Total liabilities		181,934			163,862
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at December 31, 2024 and March 31, 2024		—			—
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,586,786 shares issued and outstanding at December 31, 2024 and 18,452,892 shares issued and outstanding at March 31, 2024		2			2
Additional paid-in capital		543,939			533,203
Accumulated deficit		(399,196	)		(372,173	)
Total stockholders’ equity		144,745			161,032
Total liabilities and stockholders’ equity	$	326,679		$	324,894


Anterix Inc. Earnings Release Tables Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data)

	Three months ended December 31,						Nine months ended December 31,
		2024			2023			2024			2023
Spectrum revenue	$	1,566		$	1,271		$	4,642		$	2,931
Operating expenses
General and administrative		9,203			11,252			33,451			34,830
Sales and support		1,309			1,380			4,516			3,965
Product development		1,120			1,238			4,646			3,454
Severance and other related charges		3,513			—			3,513			—
Depreciation and amortization		142			198			472			653
Operating expenses		15,287			14,068			46,598			42,902
Gain on disposal of intangible assets, net		(20,753	)		(13,737	)		(20,846	)		(33,035	)
Gain on sale of intangible assets, net		—			(32	)		—			(7,364	)
Loss from disposal of long-lived assets, net		—			3			—			39
Gain (loss) from operations		7,032			969			(21,110	)		389
Interest income		434			666			1,713			1,448
Other income		10			31			35			189
Income (loss) before income taxes		7,476			1,666			(19,362	)		2,026
Income tax (benefit) expense		(234	)		1,338			1,218			1,743
Net income (loss)	$	7,710		$	328		$	(20,580	)	$	283
Net income (loss) per common share basic	$	0.41		$	0.02		$	(1.11	)	$	0.02
Net income (loss) per common share diluted	$	0.41		$	0.02		$	(1.11	)	$	0.01
Weighted-average common shares used to compute basic net income (loss) per share		18,609,736			18,704,400			18,557,453			18,858,472
Weighted-average common shares used to compute diluted net income (loss) per share		18,783,445			18,916,246			18,557,453			19,082,867


Anterix Inc. Earnings Release Tables Consolidated Statements of Cash Flows (Unaudited, in thousands)

	Three months ended December 31,						Nine months ended December 31,
		2024			2023			2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	7,710		$	328		$	(20,580	)	$	283
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
Depreciation and amortization		142			198			472			653
Stock compensation expense		2,865			3,921			10,619			12,024
Deferred income taxes		(934	)		519			455			892
Right of use assets		394			(1,803	)		1,226			(1,258	)
Gain on disposal of intangible assets, net		(20,753	)		(13,737	)		(20,846	)		(33,035	)
Gain on sale of intangible assets, net		—			(32	)		—			(7,364	)
Loss from disposal of long-lived assets, net		—			3			—			39
Changes in operating assets and liabilities
Prepaid expenses and other assets		(260	)		(466	)		1,265			322
Accounts payable and accrued expenses		1,920			1,214			383			1,588
Accrued severance and other related charges		2,290			—			2,290			—
Due to related parties		—			—			—			(533	)
Operating lease liabilities		(421	)		1,700			(1,453	)		941
Contingent liability		—			15,000			10,000			15,000
Deferred revenue		(566	)		26,795			3,849			46,301
Other liabilities		(86	)		—			(388	)		—
Net cash (used in) provided by operating activities		(7,699	)		33,640			(12,708	)		35,853
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible assets, including refundable deposits, retuning costs and swaps		(1,717	)		(4,732	)		(12,621	)		(14,809	)
Proceeds from sale of spectrum		—			249			—			25,427
Purchases of equipment		—			(55	)		(41	)		(267	)
Net cash (used in) provided by investing activities		(1,717	)		(4,538	)		(12,662	)		10,351
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises		—			—			1,960			7
Repurchases of common stock		(4,416	)		(7,971	)		(6,443	)		(18,706	)
Payments of withholding tax on net issuance of restricted stock		(477	)		(115	)		(1,843	)		(1,137	)
Net cash used in financing activities		(4,893	)		(8,086	)		(6,326	)		(19,836	)
Net change in cash and cash equivalents and restricted cash		(14,309	)		21,016			(31,696	)		26,368
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents and restricted cash at beginning of the period		50,737			48,534			68,124			43,182
Cash and cash equivalents and restricted cash at end of the period	$	36,428		$	69,550		$	36,428		$	69,550

	Three months ended December 31,				Nine months ended December 31,
		2024		2023		2024		2023
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period:
Taxes paid, including excise tax	$	173	$	—	$	1,058	$	1
Operating leases paid	$	533	$	580	$	1,732	$	1,732
Non-cash investing activity:
Network equipment provided in exchange for wireless licenses	$	—	$	48	$	47	$	616
Narrowband spectrum licenses received in connection with the LCRA Agreement	$	1,430	$	—	$	1,430	$	—
Deferred gain on sale of intangible assets	$	—	$	22	$	—	$	4,911
Derecognition of contingent liability related to sale of intangible assets	$	—	$	409	$	—	$	19,249
Right of use assets new leases	$	—	$	333	$	290	$	439
Right of use assets modifications and renewals	$	124	$	1,830	$	1,221	$	1,885

The following tables provide a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:
	December 31, 2024		September 30, 2024		March 31, 2024
Cash and cash equivalents	$	28,797	$	43,129	$	60,578
Escrow deposits		7,631		7,608		7,546
Total cash and cash equivalents and restricted cash	$	36,428	$	50,737	$	68,124

	December 31, 2023		September 30, 2023		March 31, 2023
Cash and cash equivalents	$	62,033	$	48,534	$	43,182
Escrow deposits		7,517		—		—
Total cash and cash equivalents and restricted cash	$	69,550	$	48,534	$	43,182


Anterix Inc. Earnings Release Tables Other Financial Information (Unaudited, in thousands except per share data)

	Three months ended December 31,				Nine months ended December 31,
		2024		2023		2024		2023
Number of shares repurchased and retired		132		230		195		563
Average price paid per share*	$	33.59	$	34.77	$	32.83	$	33.62
Total cost to repurchase	$	4,416	$	7,971	$	6,443	$	18,706

* Average price paid per share includes costs associated with the repurchases.

As of December 31, 2024, $229.6 million is remaining under the share repurchase program.

The MIL Network –

February 12, 2025

MIL-OSI: Artisan Partners Asset Management Inc. Reports January 2025 Assets Under Management

Source: GlobeNewswire (MIL-OSI)

MILWAUKEE, Feb. 11, 2025 (GLOBE NEWSWIRE) — Artisan Partners Asset Management Inc. (NYSE: APAM) today reported that its preliminary assets under management (“AUM”) as of January 31, 2025 totaled $168.4 billion. Artisan Funds and Artisan Global Funds accounted for $80.8 billion of total firm AUM, while separate accounts and other AUM¹ accounted for $87.6 billion.

PRELIMINARY ASSETS UNDER MANAGEMENT BY STRATEGY²

As of January 31, 2025 – ($ Millions)
Growth Team
Global Opportunities	$ 21,585
Global Discovery		1,951
U.S. Mid-Cap Growth		13,691
U.S. Small-Cap Growth		3,233
Global Equity Team
Global Equity		361
Non-U.S. Growth		13,037
China Post-Venture		177
U.S. Value Team
Value Equity		5,077
U.S. Mid-Cap Value		2,703
Value Income		16
International Value Team
International Value		45,484
International Explorer		436
Global Value Team
Global Value		30,291
Select Equity		335
Sustainable Emerging Markets Team
Sustainable Emerging Markets		1,600
Credit Team
High Income		11,806
Credit Opportunities		280
Floating Rate		77
Developing World Team
Developing World		4,292
Antero Peak Group
Antero Peak		2,086
Antero Peak Hedge		250
International Small-Mid Team
Non-U.S. Small-Mid Growth		6,602
EMsights Capital Group
Global Unconstrained		745
Emerging Markets Debt Opportunities		1,017
Emerging Markets Local Opportunities		1,223

Total Firm Assets Under Management (“AUM”)	$ 168,355

¹ Separate account and other AUM consists of the assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds. Separate account and other AUM includes assets we manage in traditional separate accounts, as well as assets we manage in Artisan-branded collective investment trusts, and in our own private funds.
² AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $104.6 million in aggregate for which Artisan Partners provides investment models to managed account sponsors (reported on a lag not exceeding one quarter).

ABOUT ARTISAN PARTNERS
Artisan Partners is a global investment management firm that provides a broad range of high value-added investment strategies to sophisticated clients around the world. Since 1994, the firm has been committed to attracting experienced, disciplined investment professionals to manage client assets. Artisan Partners’ autonomous investment teams oversee a diverse range of investment strategies across multiple asset classes. Strategies are offered through various investment vehicles to accommodate a broad range of client mandates.

Investor Relations Inquiries: 866.632.1770 or ir@artisanpartners.com
Source: Artisan Partners Asset Management Inc.

The MIL Network –

February 12, 2025

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

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Feb. 11, 2025 (GLOBE NEWSWIRE) — BlackLine, Inc. (Nasdaq: BL), today announced financial results for the fourth quarter and full year ended December 31, 2024.

“We believe our recent user conference and accelerating innovation are creating momentum for BlackLine,” said Owen Ryan, Co-CEO of BlackLine. “We’re making progress on our key Investor Day initiatives, including the rollout of Studio360, advancement of our public sector opportunity, and expansion of our industry-specific strategy. While we recognize the work ahead to achieve our full vision, our strategic investments are building a solid foundation for future growth.”

“By focusing our innovation on the evolving needs of the Office of the CFO, we continue to unlock new market opportunities and enhance our strategic position,” said Therese Tucker, Co-CEO of BlackLine. “Through our Studio360 platform along with AI-powered solutions and capabilities, we’re delivering customer-focused innovation that we believe drive both our company’s financial performance and our customers’ ability to achieve greater operational efficiency across their finance and accounting organizations.”

Fourth Quarter 2024 Financial Highlights

Total GAAP revenues of $169.5 million, an increase of 9% compared to the fourth quarter of 2023.
GAAP operating margin of 3.7%, compared to 8.2% in the fourth quarter of 2023.
Non-GAAP operating margin of 18.1%, compared to 24.8% in the fourth quarter of 2023.
GAAP net income attributable to BlackLine of $56.4 million, or $0.79 per diluted share compared to GAAP net income attributable to BlackLine of $22.1 million, or $0.32 per diluted share in the fourth quarter of 2023.
Non-GAAP net income attributable to BlackLine of $34.6 million, or $0.47 per diluted share compared to non-GAAP net income attributable to BlackLine of $51.5 million, or $0.69 per diluted share in the fourth quarter of 2023.
Operating cash flow of $43.8 million, compared to $42.2 million in the fourth quarter of 2023.
Free cash flow of $36.5 million, compared to $35.3 million in the fourth quarter of 2023.

Full Year 2024 Financial Highlights

Total GAAP revenues of $653.3 million, an increase of 11% from 2023.
GAAP operating margin of 2.8%, compared to 2.4% in 2023.
Non-GAAP operating margin of 19.4%, compared to 16.5% in 2023.
GAAP net income attributable to BlackLine of $161.2 million, or $1.45 per diluted share compared to GAAP net income attributable to BlackLine of $52.8 million, or $0.81 per diluted share in 2023.
Non-GAAP net income attributable to BlackLine of $162.1 million, or $2.18 per diluted share compared to non-GAAP net income attributable to BlackLine of $145.2 million, or $1.96 per diluted share in 2023.
Operating cash flow of $190.8 million, compared to $126.6 million from 2023.
Free cash flow of $164.0 million, compared to $99.0 million from 2023.

Fourth Quarter Key Metrics and Recent Business Highlights

BlackLine had a total of 4,443 customers at December 31, 2024.
Expanded the Company’s user base to 397,477 users at December 31, 2024.
Achieved a dollar-based net revenue retention rate of 102% at December 31, 2024.
Launched Studio360 Platform to drive future-ready financial operations for the Office of the CFO.
Recognized as a Leader in the 2024 IDC MarketScape for Worldwide Accounts Receivable Automation Applications for the Enterprise.
Recognized as Most Innovative FinTech Solution by the 2024 Tech Ascension Awards.
Appointed Stuart Van Houten as Chief Commercial Officer.
Welcomed Philippe Omer-Decugis as Senior Vice President and General Manager for Europe.
Announced 2024 Modern Accounting Award Winners at BeyondTheBlack.
Announced the planned retirement of BlackLine’s Chief Financial Officer and named successor.

The financial results included in this press release are preliminary and subject to final review. Financial results will not be final until BlackLine files its Annual Report on Form 10-K for the period. Information about BlackLine’s use of non-GAAP financial measures is provided below under “Use of Non-GAAP Financial Measures.”

Financial Outlook

First Quarter 2025

Total GAAP revenue is expected to be in the range of $166 million to $168 million.
Non-GAAP operating margin is expected to be in the range of 16.5% to 17.5%.
Non-GAAP net income attributable to BlackLine is expected to be in the range of $28 million to $30 million, or $0.36 to $0.39 per share on 77.7 million diluted weighted average shares outstanding.

Full Year 2025

Total GAAP revenue is expected to be in the range of $699 million to $705 million.
Non-GAAP operating margin is expected to be in the range of 21.0% to 22.0%.
Non-GAAP net income attributable to BlackLine is expected to be in the range of $155 million to $165 million, or $1.97 to $2.10 per share on 78.5 million diluted weighted average shares outstanding.

Guidance for non-GAAP operating margin, non-GAAP net income attributable to BlackLine, and non-GAAP net income attributable to BlackLine per share excludes specified items from the corresponding GAAP financial measures as outlined below under “Use of Non-GAAP Financial Measures” and as detailed in the reconciliations of non-GAAP measures for historical periods. Reconciliations of non-GAAP operating margin, non-GAAP net income attributable to BlackLine, and non-GAAP net income attributable to BlackLine per share guidance to the most directly comparable U.S. GAAP measures are not available on a forward-looking basis without unreasonable efforts due to the unpredictability and complexity of the charges excluded from these non-GAAP financial measures. The Company expects the variability of the above items could have a significant, and potentially unpredictable, impact on its future GAAP operating margin, net income attributable to BlackLine, and net income attributable to BlackLine per share.

Quarterly Conference Call

BlackLine will hold a conference call to discuss its fourth quarter and full year 2024 results at 2:00 p.m. Pacific time on Tuesday, February 11, 2025. A live audio webcast will be accessible on BlackLine’s investor relations website at https://investors.blackline.com. Participants can preregister for the conference call. A replay of the webcast will be available at https://investors.blackline.com for 12 months. BlackLine has used, and intends to continue to use, its Investor Relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About BlackLine

BlackLine (Nasdaq: BL), the future-ready platform for the Office of the CFO, drives digital finance transformation by empowering organizations with accurate, efficient, and intelligent financial operations.

BlackLine’s comprehensive platform addresses mission-critical processes, including record-to-report and invoice-to-cash, enabling unified and accurate data, streamlined and optimized processes, and real-time insight through visibility, automation, and AI. BlackLine’s proven, collaborative approach ensures continuous transformation, delivering immediate impact and sustained value. With a proven track record of innovation, industry-leading R&D investment, and world-class security practices, more than 4,400 customers across multiple industries partner with BlackLine to lead their organizations into the future.

For more information, please visit blackline.com.

Forward-looking Statements

This release and the conference call referenced above contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “would,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. Forward-looking statements in this release and quarterly conference call include, but are not limited to, statements regarding BlackLine’s future financial and operational performance, including, without limitation, GAAP and non-GAAP guidance for the first quarter and full year of 2025, the impact of progress against certain key initiatives, our expectations for our business, including the demand environment, BlackLine’s addressable market, market position and pipeline, our international growth, and our relationships with our customers and partners, including opportunities to expand those relationships.

Any forward-looking statements contained in this press release or the quarterly conference call are based upon BlackLine’s historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good-faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties. If any of these risks or uncertainties materialize or if any assumptions prove incorrect, actual performance or results may differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to risks related to the Company’s ability to attract new customers and expand sales to existing customers; the extent to which customers renew their subscription agreements or increase the number of users; the impact of current and future economic uncertainty and other unfavorable conditions in the Company’s industry or the global economy, the Company’s ability to manage growth and scale effectively, including entry into new geographies; the Company’s ability to provide successful enhancements, new features and modifications to its software solutions; the Company’s ability to develop new products and software solutions and the success of any new product and service introductions; the Company’s ability to effectively incorporate artificial intelligence and machine learning technologies (AI/ML) into its platform and business and the potential reputational harm or legal liability that may result from the use of AI/ML solutions and features; the success of the Company’s strategic relationships with technology vendors and business process outsourcers, channel partners and alliance partners; any breaches of the Company’s security measures; a disruption in the Company’s hosting network infrastructure; costs and reputational harm that could result from defects in the Company’s solutions; the loss of any key employees; continued strong demand for the Company’s software in the United States, Europe, Asia Pacific, and Latin America; the Company’s ability to compete as the financial close management provider for organizations of all sizes; the timing and success of solutions offered by competitors; including competitors’ ability to incorporate AI/ML into products and offerings more quickly or successfully; changes in the proportion of the Company’s customer base that is comprised of enterprise or mid-sized organizations; the Company’s ability to expand and effectively manage its sales teams and their performance and productivity; fluctuations in our financial results due to long and increasingly variable sales cycles, failure to protect the Company’s intellectual property; the Company’s ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such transactions; unpredictable and uncertain macro and regional economic conditions; seasonality; changes in current tax or accounting rules; cyber attacks and the risk that the Company’s security measures may not be sufficient to secure its customer or confidential data adequately; acts of terrorism or other vandalism, war or natural disasters including the effects of climate change; the impact of any determination of deficiencies or weaknesses in our internal controls and processes; and other risks and uncertainties described in the other filings we make with the Securities and Exchange Commission from time to time, including the risks described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the Securities and Exchange Commission on November 8, 2024. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2024. Forward-looking statements should not be read as a guarantee of future performance or results, and you should not place undue reliance on such statements. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. All of the information in this press release is subject to completion of our quarterly review process.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, BlackLine has provided in this release and the quarterly conference call held on February 11, 2025, certain financial measures that have not been prepared in accordance with GAAP defined as “non-GAAP financial measures,” which include (i) non-GAAP gross profit and non-GAAP gross margin, (ii) non-GAAP operating expenses, (iii) non-GAAP operating income (loss) and non-GAAP operating margin, (iv) non-GAAP net income (loss) attributable to BlackLine, Inc., (v) diluted non-GAAP net income (loss) attributable to BlackLine, Inc. per share, and (vi) free cash flow.

BlackLine’s management uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to the corresponding GAAP measures, in evaluating BlackLine’s ongoing operational performance and trends and in comparing its financial measures with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items BlackLine excludes from, or includes in, its non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures has been provided in the tables included as part of this press release.

Non-GAAP Gross Profit and Non-GAAP Gross Margin. Non-GAAP gross profit is defined as GAAP revenues less GAAP cost of revenue adjusted for amortization of acquired developed technology, stock-based compensation, and transaction-related costs (including, but not limited to, accounting, legal, and advisory fees related to the transaction, as well as transaction-related retention bonuses). Non-GAAP gross margin is defined as non-GAAP gross profit divided by GAAP revenues. BlackLine believes that presenting non-GAAP gross profit and non-GAAP gross margin is useful to investors as it eliminates the impact of certain non-cash expenses and allows a direct comparison between periods.

Non-GAAP Operating Expenses. Non-GAAP operating expenses include (a) non-GAAP sales and marketing expense, (b) non-GAAP research and development expense, and (c) non-GAAP general and administrative expense. Non-GAAP sales and marketing expense is defined as GAAP sales and marketing expense adjusted for amortization of intangible assets, stock-based compensation, and transaction-related costs. Non-GAAP research and development expense is defined as GAAP research and development expense adjusted for stock-based compensation and transaction-related costs. Non-GAAP general and administrative expense is defined as GAAP general and administrative expense adjusted for amortization of intangible assets, stock-based compensation, change in fair value of contingent consideration, transaction-related costs, and legal settlement gains or costs. BlackLine believes that presenting each of the non-GAAP operating expenses is useful to investors as it eliminates the impact of certain cash and non-cash expenses and allows a direct comparison of operating expenses between periods.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations adjusted for amortization of intangible assets, stock-based compensation, change in fair value of contingent consideration, transaction-related costs, legal settlement gains or costs, and restructuring costs. Non-GAAP operating margin is defined as non-GAAP income (loss) from operations divided by GAAP revenues. BlackLine believes that presenting non-GAAP income (loss) from operations and non-GAAP operating margin is useful to investors as it eliminates the impact of items that have been impacted by the Company’s acquisitions and other related costs in order to allow a direct comparison of income (loss) from operations between all periods presented.

Non-GAAP Net Income (Loss) Attributable to BlackLine and Diluted Non-GAAP Net Income (Loss) Attributable to BlackLine, Inc. Per Share. Non-GAAP net income (loss) attributable to BlackLine is defined as GAAP net income (loss) attributable to BlackLine adjusted for the impact of the provision for (benefit from) income taxes related to acquisitions, amortization of intangible assets, stock-based compensation, amortization of debt issuance costs from our convertible senior notes, change in fair value of contingent consideration, transaction-related costs, legal settlement gains or costs, restructuring costs, adjustment to the redeemable non-controlling interest to the redemption amount, and gain on extinguishment of convertible senior notes. Diluted non-GAAP net income (loss) attributable to BlackLine, Inc. per share includes the adjustment for shares resulting from the elimination of stock-based compensation. BlackLine believes that presenting non-GAAP net income (loss) attributable to BlackLine is useful to investors as it eliminates the impact of items that have been impacted by the Company’s acquisitions and other related costs to allow a direct comparison of net income (loss) between all periods presented.

Free Cash Flow. Free cash flow is defined as cash flows provided by (used in) operating activities less cash flows used to purchase property and equipment, financed and otherwise, capitalized software development, and intangible assets. BlackLine believes that presenting free cash flow is useful to investors as it provides a measure of the Company’s liquidity used by management to evaluate the amount of cash generated by the Company’s business including the impact of purchases of property and equipment and cost of capitalized software development.

Use of Operating Metrics

BlackLine has provided in this release and the quarterly conference call held on February 11, 2025 certain operating metrics, including (i) number of customers, (ii) number of users, and (iii) dollar-based net revenue retention rate, which BlackLine uses to evaluate its business, measure its performance, identify trends affecting its business, formulate financial projections and make strategic decisions. These operating metrics exclude the impact of certain Runbook licensed customers and users who are on perpetual license agreements and did not have an active subscription agreement with BlackLine as of December 31, 2024.

Dollar-based Net Revenue Retention Rate. Dollar-based net revenue retention rate is calculated as the implied monthly subscription and support revenue at the end of a period for the base set of customers from which the Company generated subscription revenue in the year prior to the calculation, divided by the implied monthly subscription and support revenue one year prior to the date of calculation for that same customer base. This calculation does not reflect implied monthly subscription and support revenue for new customers added during the one-year period but does include the effect of customers who terminated during the period. Implied monthly subscription and support revenue is defined as the total amount of minimum subscription and support revenue contractually committed to, under each of BlackLine’s customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. BlackLine believes that dollar-based net revenue retention rate is an important metric to measure the long-term value of customer agreements and the Company’s ability to retain and grow its relationships with existing customers over time.

Number of Customers. A customer is defined as a company that contributes to our subscription and support revenue as of the measurement date. In situations where an organization has multiple subsidiaries or divisions, each entity that is invoiced as a separate entity is treated as a separate customer. In an instance where an existing customer requests its invoice be divided for the sole purpose of restructuring its internal billing arrangement without any incremental increase in revenue, such customer continues to be treated as a single customer. BlackLine believes that its ability to expand its customer base is an indicator of the Company’s market penetration and the growth of its business.

Number of Users. Historically, BlackLine’s products were priced based on the number of users of its platform. Over time, the Company has begun to sell an increasing number of non-user based products with fixed or transaction-based pricing. For this reason, we believe the growth in the number of total users is less correlated to the growth of the business overall.

Media Contact:
Samantha Darilek
samantha.darilek@blackline.com

Investor Relations Contact:
Matt Humphries, CFA
matt.humphries@blackline.com

BlackLine, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)

	December 31, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	885,915		$	271,117
Marketable securities		—			933,355
Accounts receivable, net of allowances		178,141			171,608
Prepaid expenses and other current assets		28,348			31,244
Total current assets		1,092,404			1,407,324
Capitalized software development costs, net		45,448			37,828
Property and equipment, net		11,840			14,867
Intangible assets, net		59,520			79,056
Goodwill		448,965			448,965
Operating lease right-of-use assets		22,772			19,173
Deferred tax assets, net		53,208			145
Other assets		90,879			93,407
Total assets	$	1,825,036		$	2,100,765
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,463		$	8,623
Accrued expenses and other current liabilities		71,574			59,690
Deferred revenue, current		338,615			320,133
Finance lease liabilities, current		66			778
Operating lease liabilities, current		3,525			4,108
Convertible senior notes, net, current		—			249,233
Total current liabilities		422,243			642,565
Finance lease liabilities, noncurrent		53			4
Operating lease liabilities, noncurrent		20,283			15,738
Convertible senior notes, net, noncurrent		892,675			1,140,608
Deferred tax liabilities, net		4,532			6,394
Deferred revenue, noncurrent		1,390			904
Other long-term liabilities		708			3,608
Total liabilities		1,341,884			1,809,821
Commitments and contingencies
Redeemable non-controlling interest		36,483			30,063
Stockholders’ equity:
Common stock		628			615
Additional paid-in capital		495,391			474,863
Accumulated other comprehensive income (loss)		(361	)		205
Accumulated deficit		(48,989	)		(214,802	)
Total stockholders’ equity		446,669			260,881
Total liabilities, redeemable non-controlling interest, and stockholders’ equity	$	1,825,036		$	2,100,765

BlackLine, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

	Quarter Ended						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Revenues
Subscription and support	$	160,988		$	147,155		$	619,287		$	555,516
Professional services		8,472			8,575			34,049			34,480
Total revenues		169,460			155,730			653,336			589,996
Cost of revenues
Subscription and support		34,833			31,373			135,308			121,308
Professional services		6,581			6,239			26,657			25,485
Total cost of revenues		41,414			37,612			161,965			146,793
Gross profit		128,046			118,118			491,371			443,203
Operating expenses
Sales and marketing		64,769			56,898			248,347			243,154
Research and development		24,588			22,578			100,973			103,207
General and administrative		32,480			24,676			121,795			71,530
Restructuring costs		(8	)		1,151			1,720			10,964
Total operating expenses		121,829			105,303			472,835			428,855
Income from operations		6,217			12,815			18,536			14,348
Other income (expense)
Interest income		9,399			14,822			49,808			52,059
Interest expense		(2,523	)		(1,484	)		(8,758	)		(5,898	)
Gain on extinguishment of convertible senior notes		—			—			65,112			—
Other income, net		6,876			13,338			106,162			46,161
Income before income taxes		13,093			26,153			124,698			60,509
Provision for (benefit from) income taxes		(50,374	)		1,901			(43,067	)		1,450
Net income		63,467			24,252			167,765			59,059
Net income attributable to redeemable non-controlling interest		670			293			1,952			892
Adjustment attributable to redeemable non-controlling interest		6,380			1,890			4,639			5,334
Net income attributable to BlackLine, Inc.	$	56,417		$	22,069		$	161,174		$	52,833
Basic net income attributable to BlackLine, Inc. per share	$	0.90		$	0.36		$	2.59		$	0.87
Shares used to calculate basic net income per share		62,640			61,391			62,129			60,849
Diluted net income attributable to BlackLine, Inc. per share	$	0.79		$	0.32		$	1.45		$	0.81
Shares used to calculate diluted net income per share		74,610			72,470			73,503			72,045

BlackLine, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Quarter Ended						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Cash flows from operating activities
Net income attributable to BlackLine, Inc.	$	56,417		$	22,069		$	161,174		$	52,833
Net income and adjustment attributable to redeemable non-controlling interest		7,050			2,183			6,591			6,226
Net income		63,467			24,252			167,765			59,059
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,120			12,825			50,345			50,099
Change in fair value of contingent consideration		—			—			—			(33,549	)
Amortization of debt issuance costs		849			1,398			4,486			5,535
Stock-based compensation		19,340			17,505			83,251			77,970
Gain on extinguishment of convertible senior notes		—			—			(65,112	)		—
Noncash lease expense		1,611			1,728			6,221			6,453
Accretion of purchase discounts on marketable securities, net		(326	)		(8,885	)		(18,441	)		(33,884	)
Net foreign currency (gains) losses		(81	)		(29	)		279			853
Deferred income taxes		(53,323	)		281			(54,802	)		(1,525	)
Provision for (benefit from) credit losses		70			(1	)		84			(18	)
Changes in operating assets and liabilities:
Accounts receivable		(43,317	)		(41,300	)		(7,552	)		(20,855	)
Prepaid expenses and other current assets		(1,609	)		(4,449	)		2,742			(6,599	)
Other assets		298			(1,947	)		2,505			(595	)
Accounts payable		4,333			4,341			(1,123	)		(5,104	)
Accrued expenses and other current liabilities		3,968			(2,111	)		7,087			(924	)
Deferred revenue		37,819			42,536			18,968			41,271
Contingent consideration paid in excess of original estimates		—			(2,393	)		—			(2,393	)
Operating lease liabilities		(1,563	)		(1,936	)		(5,963	)		(7,171	)
Lease incentive receipts		—			—			—			240
Other long-term liabilities		138			354			96			(2,250	)
Net cash provided by operating activities		43,794			42,169			190,836			126,613
Cash flows from investing activities
Purchases of marketable securities		—			(360,866	)		(396,104	)		(1,343,331	)
Proceeds from maturities of marketable securities		121,289			363,521			1,023,286			1,319,821
Proceeds from sales of marketable securities		—			—			324,098			—
Capitalized software development costs		(6,513	)		(4,807	)		(24,714	)		(21,644	)
Purchases of property and equipment		(756	)		(2,026	)		(2,126	)		(5,953	)
Acquisition, net of cash acquired		—			(9	)		—			(11,376	)
Net cash provided by (used in) investing activities		114,020			(4,187	)		924,440			(62,483	)
Cash flows from financing activities
Proceeds from issuance of convertible senior notes, net of issuance costs		—			—			661,979			—
Partial repurchase of convertible senior notes		—			—			(848,519	)		—
Repayment of convertible senior notes		—			—			(250,000	)		—
Purchase of capped calls related to convertible senior notes		—			—			(59,738	)		—
Principal payments under finance lease obligations		(228	)		(255	)		(999	)		(990	)
Proceeds from exercises of stock options		4,553			775			7,591			19,762
Proceeds from employee stock purchase plan		2,757			2,719			7,006			8,010
Acquisition of common stock for tax withholding obligations		(3,861	)		(885	)		(17,465	)		(15,029	)
Payment of contingent consideration		—			(5,607	)		—			(5,607	)
Net cash provided by (used in) financing activities		3,221			(3,253	)		(500,145	)		6,146
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash		(403	)		151			(347	)		(120	)
Net increase in cash, cash equivalents, and restricted cash		160,632			34,880			614,784			70,156
Cash, cash equivalents, and restricted cash, beginning of period		725,515			236,483			271,363			201,207
Cash, cash equivalents, and restricted cash, end of period	$	886,147		$	271,363		$	886,147		$	271,363

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents at end of period	$	885,915		$	271,117		$	885,915		$	271,117
Restricted cash included within other assets at end of period		232			246			232			246
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows	$	886,147		$	271,363		$	886,147		$	271,363

BlackLine, Inc.
Calculation of Diluted Net Income Per Share
(in thousands, except per share data)
(unaudited)

	Quarter Ended							Year Ended
	December 31,							December 31,
			2024			2023			2024			2023
Diluted Net Income per Share
Numerator:
Net income attributable to BlackLine, Inc.		$	56,417		$	22,069		$	161,174		$	52,833
Interest expense, net of taxes			2,305			1,458			7,804			5,716
Gain on extinguishment of convertible senior notes, net of taxes			—			—			(62,147	)		—
Net income attributable to BlackLine, Inc. for diluted calculation		$	58,722		$	23,527		$	106,831		$	58,549
Denominator:
Shares used to calculate diluted net income per share			74,610			72,470			73,503			72,045
Diluted net income attributable to BlackLine, Inc. per share		$	0.79		$	0.32		$	1.45		$	0.81

BlackLine, Inc.
Reconciliations of Non-GAAP Financial Measures
(in thousands, except percentages and per share data)
(unaudited)

		Quarter Ended						Year Ended
		December 31,						December 31,
			2024			2023			2024			2023
Non-GAAP Gross Profit:
Gross profit		$	128,046		$	118,118		$	491,371		$	443,203
Amortization of acquired developed technology			3,243			3,419			13,370			12,438
Stock-based compensation			3,561			3,121			13,347			12,440
Transaction-related costs			25			132			151			478
Total non-GAAP gross profit		$	134,875		$	124,790		$	518,239		$	468,559
Gross margin			75.6	%		75.8	%		75.2	%		75.1	%
Non-GAAP gross margin			79.6	%		80.1	%		79.3	%		79.4	%

Non-GAAP Operating Income:
Operating income		$	6,217		$	12,815		$	18,536		$	14,348
Amortization of intangible assets			4,305			5,249			19,886			20,608
Stock-based compensation			20,138			18,101			86,097			80,068
Change in fair value of contingent consideration			—			—			—			(33,549	)
Transaction-related costs			—			1,246			568			5,078
Restructuring costs			(8	)		1,151			1,720			10,964
Total non-GAAP operating income		$	30,652		$	38,562		$	126,807		$	97,517
GAAP operating margin			3.7	%		8.2	%		2.8	%		2.4	%
Non-GAAP operating margin			18.1	%		24.8	%		19.4	%		16.5	%

Non-GAAP Net Income Attributable to BlackLine, Inc.:
Net income attributable to BlackLine, Inc.		$	56,417		$	22,069		$	161,174		$	52,833
Provision for (benefit from) income taxes			(53,351	)		526			(50,948	)		(1,196	)
Amortization of intangible assets			4,305			5,249			19,886			20,608
Stock-based compensation			20,044			17,981			85,654			79,588
Amortization of debt issuance costs			849			1,398			4,486			5,535
Change in fair value of contingent consideration			—			—			—			(33,549	)
Transaction-related costs			—			1,246			568			5,078
Restructuring costs			(8	)		1,151			1,720			10,964
Adjustment to redeemable non-controlling interest			6,380			1,890			4,639			5,334
Gain on extinguishment of convertible senior notes			—			—			(65,112	)		—
Total non-GAAP net income attributable to BlackLine, Inc.		$	34,636		$	51,510		$	162,067		$	145,195

Basic Non-GAAP Net Income Attributable to BlackLine, Inc. per share
Basic non-GAAP net income attributable to BlackLine, Inc. per share		$	0.55		$	0.84		$	2.61		$	2.39
Shares used to calculate basic non-GAAP net income per share			62,640			61,391			62,129			60,849

Diluted Non-GAAP Net Income Attributable to BlackLine, Inc. per share
Numerator:
Non-GAAP net income attributable to BlackLine, Inc.		$	34,636		$	51,510		$	162,067		$	145,195
Interest expense, net of taxes			1,539			77			3,909			306
Non-GAAP net income attributable to BlackLine, Inc. for diluted calculation		$	36,175		$	51,587		$	165,976		$	145,501
Denominator:
Shares used to calculate diluted non-GAAP net income per share			77,324			74,603			76,124			74,382
Diluted non-GAAP net income attributable to BlackLine, Inc. per share		$	0.47		$	0.69		$	2.18		$	1.96

Non-GAAP Sales and Marketing Expense:
Sales and marketing expense		$	64,769		$	56,898		$	248,347		$	243,154
Amortization of intangible assets			(983	)		(1,751	)		(6,201	)		(6,791	)
Stock-based compensation			(6,260	)		(5,364	)		(25,428	)		(24,152	)
Transaction-related costs			(136	)		(110	)		(320	)		(397	)
Total non-GAAP sales and marketing expense		$	57,390		$	49,673		$	216,398		$	211,814

Non-GAAP Research and Development Expense:
Research and development expense		$	24,588		$	22,578		$	100,973		$	103,207
Stock-based compensation			(3,390	)		(1,813	)		(13,345	)		(13,095	)
Transaction-related costs			170			(833	)		(46	)		(2,857	)
Total non-GAAP research and development expense		$	21,368		$	19,932		$	87,582		$	87,255

Non-GAAP General and Administrative Expense:
General and administrative expense		$	32,480		$	24,676		$	121,795		$	71,530
Amortization of intangible assets			(79	)		(79	)		(315	)		(1,379	)
Stock-based compensation			(6,927	)		(7,803	)		(33,977	)		(30,381	)
Change in fair value of contingent consideration			—			—			—			33,549
Transaction-related costs			(9	)		(171	)		(51	)		(1,346	)
Total non-GAAP general and administrative expense		$	25,465		$	16,623		$	87,452		$	71,973

Total Non-GAAP Operating Expenses		$	104,223		$	86,228		$	391,432		$	371,042

Free Cash Flow
Net cash provided by operating activities		$	43,794		$	42,169		$	190,836		$	126,613
Capitalized software development costs			(6,513	)		(4,807	)		(24,714	)		(21,644	)
Purchases of property and equipment			(756	)		(2,026	)		(2,126	)		(5,953	)
Free cash flow		$	36,525		$	35,336		$	163,996		$	99,016

The MIL Network –

February 12, 2025

MIL-OSI: Kentucky First Federal Bancorp Reports Earnings

Source: GlobeNewswire (MIL-OSI)

HAZARD, Ky. and FRANKFORT, Ky. and DANVILLE, Ky. and LANCASTER, Ky., Feb. 11, 2025 (GLOBE NEWSWIRE) — Kentucky First Federal Bancorp (Nasdaq: KFFB), the holding company (the “Company”) for First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky, Frankfort, Kentucky, announced net income of $13,000 or $0.00 diluted earnings per share for the three months ended December 31, 2024, compared to a net loss of $361,000 or $(0.05) diluted earnings per share for the three months ended December 31, 2023, an increase of $374,000 or 103.6%. A net loss of $2,000 or $(0.00) diluted earnings per share was announced for the six months ended December 31, 2024 compared to a net loss of $536,000 or $(0.07) diluted earnings per share for the six months ended December 31, 2023, an increase of $534,000 or 99.6%.

The increase in net earnings for the quarter ended December 31, 2024 was primarily attributable to higher net interest income. Net interest income increased $381,000 or 23.0% to $2.0 million due primarily to interest income increasing more than interest expense increased period to period. Interest income increased $857,000 or 21.8% to $4.8 million, while interest expense increased $476,000 or 21.0% to $2.7 million for the recently-ended quarter. While the rising interest rate environment has slowed and market rates have even decreased, the repricing level of our assets has begun to outpace the increase in expenses paid on liabilities.

The average rate earned on interest-earning assets increased 80 basis points to 5.28% and was the primary reason for the increase in interest income, although average interest-earning assets also increased $11.5 million or 3.3% to $362.3 million for the recently-ended quarterly period. The average rate paid on interest-bearing liabilities increased 44 basis points to 3.53% and was the primary reason for the increase in interest expense, although average interest-bearing liabilities also increased $17.3 million or 5.9%.

Non-interest income increased $125,000 or 271.7% and totaled $171,000 for the three months ended December 31, 2024, almost entirely due to net gains on sales of loans increasing $74,000 compared to December 31, 2023. This was due to the increase in demand for fixed -rate secondary market loans.

Non-interest expense also increased $54,000 period to period primarily due to other non-interest expense increasing $123,000, with the majority of this due to increased professional fees. This increase was partially offset by employee compensation and benefits decreasing $62,000 or 4.9% for the three months ended December 31, 2024 compared to December 31, 2023.

At December 31, 2024, assets totaled $374.2 million, a decrease of $760,000 or 0.2%, from $375.0 million at June 30, 2024, due primarily to the decrease in loans, net, of $2.8 million or 0.8%, as well as a decrease in investment securities of $1.0 million or 10.6% primarily because of principal repayments and prepayments. Cash and cash equivalents totaled $21.0 million, an increase of $2.7 million or 14.7% compared to June 30, 2024. Total liabilities decreased $818,000 or 0.3% to $326.2 million at December 31, 2024, as consistent with our efforts to reduce our reliance on higher cost funding sources, FHLB advances decreased $7.2 million or 10.4% to $61.8 million. Partially offsetting the decrease in FHLB advances was an increase in total deposits of $6.9 million or 2.7% at December 31, 2024. Savings account deposits increased $1.6 million or 3.4%, and certificates of deposit increased $10.3 million or 5.9%.

At December 31, 2024, the Company reported its book value per share as $5.94. Shareholders’ equity increased $58,000 or 0.1% to $48.1 million at December 31, 2024 compared to June 30, 2024. The increase in shareholders’ equity was primarily associated with accumulated other comprehensive loss decreasing $60,000 at December 31, 2024 compared to June 30, 2024 as the unrealized losses on our investment portfolio decrease.

Forward-Looking Statements

This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend” and “potential,” or words of similar meaning, or future or conditional verbs such as “should,” “could,” or “may.” Forward-looking statements include statements of our goals, intentions and expectations; statements regarding our ability to fully and timely address the deficiencies that resulted in the Agreement that First Federal Savings Bank of Kentucky has entered into with the Office of the Comptroller of the Currency (“OCC”); First Federal Savings Bank of Kentucky’s ability to satisfy the Individual Minimum Capital Requirements imposed by the OCC; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. Kentucky First Federal Bancorp’s actual results, performance or achievements may materially differ from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, general economic conditions; prices for real estate in the Company’s market areas; the interest rate environment and the impact of the interest rate environment on our business, financial condition and results of operations; our ability to successfully execute our strategy to increase earnings, increase core deposits, reduce reliance on higher cost funding sources and shift more of our loan portfolio towards higher-earning loans; our ability to pay future dividends and if so at what level; our ability to receive any required regulatory approval or non-objection for the payment of dividends from First Federal Savings and Loan Association of Hazard and First Federal Savings Bank of Kentucky to the Company or from the Company to shareholders; the ability of First Federal MHC to receive approval of its members to waive the payment of any Company dividends to First Federal MHC; competitive conditions in the financial services industry; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the outcome of pending or threatened litigation, or of matters before regulatory agencies; changes in law, governmental policies and regulations, rapidly changing technology affecting financial services, and the other matters mentioned in Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2024. Except as required by applicable law or regulation, the Company does not undertake the responsibility, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

About Kentucky First Federal Bancorp

Kentucky First Federal Bancorp is the parent company of First Federal Savings and Loan Association of Hazard, which operates one banking office in Hazard, Kentucky, and First Federal Savings Bank of Kentucky, which operates three banking offices in Frankfort, Kentucky, two banking offices in Danville, Kentucky and one banking office in Lancaster, Kentucky. Kentucky First Federal Bancorp shares are traded on the Nasdaq National Market under the symbol KFFB. At December 31, 2024, the Company had approximately 8,086,715 shares outstanding of which approximately 58.5% was held by First Federal MHC.

SUMMARY OF FINANCIAL HIGHLIGHTS
Condensed Consolidated Balance Sheets
(In thousands, except share data)								December 31,				June 30,
									2024 (Unaudited)			2024
ASSETS
Cash and cash equivalents							$		20,976		$	18,287
Investment Securities									8,818			9,861
Loans available-for sale									116			110
Loans, net									330,234			333,025
Real estate acquired through foreclosure									10			10
Other Assets									14,054			13,675
Total Assets							$		374,208		$	374,968
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits							$		263,055		$	256,139
FHLB Advances									61,792			68,988
Other Liabilities									1,306			1,844
Total liabilities									326,153			326,971
Shareholders’ Equity									48,055			47,997
Total liabilities and shareholders’ equity							$		374,208		$	374,968
Book value per share							$		5.94		$	5.94
Tangible book value per share							$		5.94		$	5.94

Condensed Consolidated Statements of Income (Loss)
(In thousands, except share data)

	Six months ended December 31,						Three months ended December 31,
		2024 (Unaudited)			2023				2024 (Unaudited)			2023
Interest Income	$	9,403		$	7,661		$		4,784		$	3,927
Interest Expense		5,496			4,333				2,746			2,270
Net Interest Income		3,907			3,328				2,038			1,657
Provision for Credit Losses		15			15				–			9
Non-interest Income		308			121				171			46
Non-interest Expense		4,215			4,132				2,203			2,149
Income (Loss) Before Income Taxes		(15	)		(698	)			6			(455	)
Income Taxes		(13	)		(162	)			(7	)		(94	)
Net Income (Loss)	$	(2	)	$	(536	)	$		13		$	(361	)
Earnings per share:
Basic and Diluted	$	(0.00	)	$	(0.07	)	$		0.00		$	(0.05	)
Weighted average outstanding shares:
Basic and Diluted		8,098,715			8,098,715				8,098,715			8,098,715

Contact: Don Jennings, President, or Tyler Eades, Vice President
(502) 223-1638
216 West Main Street
P.O. Box 535
Frankfort, KY 40602

The MIL Network –

February 12, 2025

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Restores Section 232 Tariffs

Source: The White House

COUNTERING TRADE PRACTICES THAT UNDERMINE NATIONAL SECURITY: Yesterday, President Donald J. Trump signed proclamations to close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminum.

President Trump is taking action to protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.

President Trump is reinstating the full 25% tariff on steel imports and increasing tariffs on aluminum imports to 25%.
- Key reforms include eliminating all alternative agreements, applying strict “melted and poured” standards, expanding tariffs to include key downstream products, terminating all general approved exclusions, and cracking down on tariff misclassification and duty evasion schemes.
The countries of Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom had received exemptions, which prevented the tariffs from being effective.
- By granting exemptions to certain countries, the United States inadvertently created loopholes that were exploited by China and others with excess steel and aluminum capacity, undermining the purpose of these exemptions.
The President is exercising his authority under Section 232 of the Trade Expansion Act of 1962 to adjust imports of steel and aluminum to protect our national security.
- This statute provides the President with authority to adjust imports being brought into the United States in quantities or under circumstances that threaten to impair national security.
- In March 2018, President Trump invoked authority under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862) to impose 25% tariffs on steel imports and 10% tariffs on aluminum. These measures were remarkably effective in supporting recovery and reinvestment in the American steel industry and saved the domestic primary aluminum industry from total collapse. But exemptions and loopholes have permitted evasion of the tariffs and weakened the effectiveness of the program.
- The reinvigorated Section 232 tariffs on steel and aluminum will support the program’s original objective of revitalizing the domestic steel and aluminum industries and achieving sustainable capacity utilization of at least 80%.

RESTORING FAIRNESS TO STEEL AND ALUMINUM MARKETS: President Trump is taking action to end unfair trade practices and the global dumping of steel and aluminum.

Foreign nations have been flooding the United States market with cheap steel and aluminum, often subsidized by their governments.
A report from the first Trump Administration found that steel import levels and global excess were weakening our domestic economy and threatening to impair national security.
- The report found that excess production and capacity, particularly in China, has been a major factor in the decline of domestic aluminum production.
While the domestic steel industry briefly achieved 80% utilization in 2021, subsequent trade pressure following the COVID-19 pandemic has depressed domestic production. In 2022 and 2023, capacity utilization fell to 77.3% and 75.3%, respectively. High import volumes from sources exempt from Section 232 tariffs are a major factor in depressing domestic production volumes.
For aluminum, there was an increase in the capacity utilization rate between 2017 and 2019, from 40% to 61% during that period. But since 2019, the aluminum capacity utilization has once again seen a steady decline, falling from 61% to 55% between 2019 and 2023.
The United States does not want to be in a position where it would be unable to meet demand for national defense and critical infrastructure in a national emergency.

STRENGTHENING AMERICA’S MANUFACTURING INDUSTRY: President Trump’s decision to close existing loopholes and exemptions will strengthen United States’ steel and aluminum industries.

In his first term, President Trump imposed Section 232 tariffs to protect the American steel and aluminum industries from unfair foreign competition.
The steel tariffs that President Trump implemented led to thousands of jobs gained and higher wages in the metals industry.
- These tariffs were hailed as a “boon” for Minnesota’s iron ore industry, with state officials crediting tariffs for bolstering the local economy.
- Steel and aluminum imports drastically decreased under President Trump, falling by nearly a third from 2016 to 2020.
- The tariffs led to a wave in investment across the United States, with more than $10 billion committed to build new mills.
It was recently announced that Hyundai Steel is actively considering building a steel plant in the United States.
U.S. steelmakers, including the American Iron and Steel Institute and the Steel Manufacturers Association, have praised President Trump’s America First trade policy.

TARIFFS WORK: Studies have repeatedly shown that contrary to public rhetoric, tariffs can be an effective tool for achieving economic and strategic objectives.

A 2024 study on the effects of President Trump’s tariffs in his first Administration found that they “strengthened the U.S. economy,” and “led to significant reshoring” in industries like manufacturing and steel production.
A 2023 report by the U.S. International Trade Commission that analyzed the effects of Section 232 and 301 tariffs on more than $300 billion of U.S. imports found that the tariffs reduced imports from China, effectively stimulated more U.S. production of the tariffed goods, with very minor effects on prices.
According to the Economic Policy Institute, the tariffs implemented by President Trump during his first Administration “clearly show[ed] no correlation with inflation” and only had a temporary effect on overall price levels.
An analysis from the Atlantic Council found that “tariffs would create new incentives for US consumers to buy US-made products.”
Former Biden Treasury Secretary Janet Yellen affirmed last year that tariffs do not raise prices: “I don’t believe that American consumers will see any meaningful increase in the prices that they face.”

A 2024 economic analysis found that a global tariff of 10% would grow the economy by $728 billion, create 2.8 million jobs, and increase real household incomes by 5.7%.

MIL OSI USA News –

February 12, 2025

MIL-OSI Asia-Pac: VACCINATION TARGETS UNDER LIVESTOCK

Source: Government of India

Ministry of Fisheries, Animal Husbandry & Dairying

VACCINATION TARGETS UNDER LIVESTOCK

Posted On: 11 FEB 2025 5:34PM by PIB Delhi

The following actions taken by Department of Animal Husbandry and Dairying(DAHD), Ministry of Fisheries & AHD Government of India to streamlined the vaccination programs against FMD, Brucellosis, PPR and CSF;.

Vaccination against Foot and Mouth Disease (FMD), Brucellosis, Peste des Petits Ruminants (PPR) and Classical Swine Fever (CSF) is covered under 100% central assistance under Livestock Health And Disease Control Programme (LHDCP) for all States and Union Territories.
1. As gathered from States/UTs, cumulative vaccination till date (January, 2025), 107.34 crore, 4.39 crore, 20,40 crore, 0.67 crore vaccine hasbeen done against FMD, Brucellosis, PPR and CSF respectively. The last FMD-Round IV vaccination completed has covered more than 96% vaccination coverage (24.84 crore). Further, FMD Rounds V and VI are ongoing in various States with nearly 14.89 Crores and 2.29 Crores vaccinations done respectively.
1. The coverage percentage of vaccination program has increased, and the gaps have been narrowed down by ensuring timely supply of quality tested vaccines for FMD, Brucellosis, PPR and CSF along with awareness generation among stakeholders

1. Assistance to States for Control of Animal Disease (ASCAD) for control of state prioritized exotic, emergent and zoonotic animal diseases with funding pattern of 60:40 between Central and State; 90:10 for hilly and North East States and 100% for UTs. Total more than 27.21 crore cattle have been vaccinated/re-vaccinated upto January, 2025 against Lumpy Skin Disease in the country.
1. Financial support is provided to Indian Council of Agricultural Research(ICAR)- National Institute of Foot and Mouth Disease (NIFMD)-Bhubaneswar, ICAR- Indian Veterinary Research Institutes (IVRI)-Bareilly, ICAR-IVRI-Bengaluru, ICAR-National Institute of Veterinary Epidemiology and Disease Informatics (NIVEDI)-Bengaluru and Chaudhary Charan Singh National Institute of Animal Health-Baghpat for FMD related activities
1. Data related to registration of livestock using ear-tags and vaccination is uploaded on Bharat Pashudhan portal

Total vaccination performance reducing the gap under the programmeare at Annexure-I

ANNEXURE-I

Animals Vaccinated in FMD Round IV

Animals Vaccinated in FMD Round V

(ongoing)

Animals Vaccinated in FMD Round VI

(ongoing)

Animals Vaccinated against Brucellosis

Animals Vaccinated against PPR Round I

Animals Vaccinated against PPR Round II

Animals Vaccinated against CSF Round I

Animals Vaccinated against CSF Round II

Progress of vaccination mentioned in 4th report of standing committee on agriculture, animal husbandry and food processing

21,13,30,176

5,35,73,039

Not mentioned

4,23,46,856

15,19,38,427

2,17,66,205

49,05,771

10,85,612

Present status

24,84,36,177

14,88,63,831

2,29,21,706

4,38,86,128

16,57,04,186

3,82,66,375

51,41,962

15,08,624

This information was given by the Minister of Fisheries, Animal Husbandry and Dairying Shri Rajiv Ranjan Singh alias Lalan Singh, in a written reply in Lok Sabha today.

*****

AA

(Release ID: 2101852)

MIL OSI Asia Pacific News –

February 12, 2025

MIL-OSI Russia: HSE scientists have taken an important step towards developing 6G communication technologies

Translartion. Region: Russians Fedetion –

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

Researchers MIEM HSE University has demonstrated the efficient operation of a 6G wireless communication channel at sub-terahertz frequencies for the first time in Russia. The device transmits data at a speed of 12 Gbit/s and maintains signal stability, automatically switching when blocked. The indicators correspond to international 6G standards. A description of some elements of the system is presented in article, published in the electronic press archive arXiv.

Scientists from MIEM HSE have demonstrated the efficient operation of a sixth-generation (6G) data transmission system for the first time in Russia. The experiment confirmed that the system can operate in laboratory conditions while maintaining high data transfer rates and communication stability. The demonstrator used frequencies of 141–148.5 and 151.5–164 GHz, and the data transfer rate reached 12 Gbit/s. These indicators correspond to international standards for communication channels of sixth-generation (6G) and IMT-2030 networks, in particular ETSI GR THz 002 V1.1.1 (March 2024) and the International Telecommunication Union (ITU) ITU-R M.2160.

The main feature of the system is the control of signal distribution in real time. If the signal is blocked, the system automatically switches to another antenna. This makes the connection stable even in difficult conditions. Some of the system components were developed at MIEM HSE and Moscow State Pedagogical University. For example, this is the RIS panel (compliant with ITU-R M.2541-0, May 2024), or frequency-selective surface, which controls the direction of signal transmission, as well as diode detectors that allow the system to operate at subterahertz frequencies.

Currently, the system’s range is limited by the size of the room, but this can be changed by replacing the antennas. The technology can be useful in high-speed communication networks, Internet of Things systems. Scientists plan to use machine learning to improve signal distribution and protection against interference.

“We have shown that the 6G system can reliably transmit data at the required frequencies and speeds. This is an important step for the development of communication technologies. In the future, we will work to make the system even more resilient using machine learning. For example, we plan to teach it to automatically control the signal beam so that the connection remains stable even when users are moving,” the director comments. Research Institute of Telecommunications MIEM HSE Professor Evgeny Kucheryavy.

The development has attracted the interest of telecommunications companies. Options for creating commercial devices that can compete with foreign analogues are already being discussed.

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

MIL OSI Russia News –

February 12, 2025

MIL-OSI New Zealand: Police urge parents and young people to be alert when online on Safer Internet Day

Source: New Zealand Police (National News)

New Zealand Police is urging parents to be alert to the potential risks facing children and young people online.

Today is Safter Internet Day – a global event to promote safe and positive online experiences.

To ensure a collaborative approach to internet safety, Police works closely with our partner agencies, including the Department of Internal Affairs, Netsafe, and New Zealand Customs.

Detective Senior Sergeant Kepal Richards, officer in charge of New Zealand Police Online Child Exploitation Across New Zealand Team (OCEANZ), says supervising children and young people online is the best way to keep them safe.

“The internet opens up a world of opportunity but there are offenders online looking to exploit people, and they target the most vulnerable.

“In the worst-case scenario, we see online extortion groups trying to persuade children and young people to record self-harm and sexually explicit acts, alongside other violent crimes.

“The footage is then circulated among members of the extortion group to gain notoriety and further extort victims.

“Offenders may also threaten to share these videos or images online or with the victim’s family and friends.

“While we’re not seeing a large number of this type of offending here in New Zealand at this time, we know this is having a significant impact overseas.

“We want parents to be alert to the possible risks, but not alarmed.”

Police urge parents and caregivers to educate themselves on this topic and have conversations with their young people about the dangers of having an online presence.

“Having open and regular conversations is the most important tip we can give any parent or caregiver,” Detective Senior Sergeant Richards says.

“This ensures their young children feel comfortable to come forward about any online issues that may arise.”

For parents and caregivers:

Supervision is essential. This means knowing what your children are doing online, who they are interacting with, and what platforms, apps, or games they are using.
Check privacy settings. We recommend parents and caregivers research and understand app settings, including privacy settings. This can include turning off location settings, setting profiles to private, or turning off chat functions.
Long term impact. Offenders will often use tactics such as fear or shame to manipulate young people, and make them feel alienated or trapped, like they cannot escape the situation. These situations can be very distressing and can have long term impacts and need to be addressed appropriately.
Report suspicious behaviour. Make a report and seek help and support.

For victims:

Stop talking to the offender and avoid sending any more images or videos – even if they are threatening you. Once you have complied with their demands, there is nothing preventing them from targeting you again.
Save all the online chat, immediately take screenshots. This is important for making a report to the Police, we need all the evidence that you can gather.
Report the content and person’s profile to the platform and request the content is removed.
Block the profile.

Where to report offending:

To report any offending to Police, please call 111 in an emergency, and for non-emergencies, online at 105.police.govt.nz, clicking “Make a Report” or by calling 105.

If you have seen content online that you wish to report, make a report to the Department of Internal Affairs HERE.

If you would like advice and support from Netsafe, text ‘Netsafe’ to 4282 or call for free on 0508 NETSAFE (0508 638 723). You can also report online at netsafe.org.nz/report or by email at help@netsafe.org.nz.

Click HERE to read the Virtual Global Taskforce Safer Internet Day’s media release issued by the Australian Federal Police.

ENDS

Issued by Police Media Centre

MIL OSI New Zealand News –

February 11, 2025

MIL-OSI: Prospect Capital Announces Financial Results for Fiscal December 2024 Quarter

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended December 31, 2024.

FINANCIAL RESULTS

All amounts in $000’s except per share amounts (on weighted average basis for period numbers)	Quarter Ended	Quarter Ended	Quarter Ended
	December 31, 2024	September 30, 2024	December 31, 2023

Net Investment Income (“NII”)	$86,431	$89,877	$96,927
NII per Common Share	$0.20	$0.21	$0.24
Interest as % of Total Investment Income	91.0%	94.0%	92.3%

Net Income (Loss) Applicable to Common Shareholders	$(30,993)	$(165,069)	$(51,436)
Net Income (Loss) per Common Share	$(0.07)	$(0.38)	$(0.13)

Distributions to Common Shareholders	$65,554	$77,358	$74,056
Distributions per Common Share	$0.15	$0.18	$0.18
Cumulative Paid and Declared Distributions to Common Shareholders⁽¹⁾	$4,445,060	$4,384,924	$4,162,509
Cumulative Paid and Declared Distributions per Common Share⁽¹⁾	$21.39	$21.25	$20.76
Multiple of Net Asset Value (“NAV”) per Common Share⁽¹⁾	2.7x	2.6x	2.3x

Total Assets	$7,234,855	$7,592,705	$7,781,214
Total Liabilities	$2,164,305	$2,469,590	$2,596,824
Preferred Stock	$1,630,514	$1,612,302	$1,500,741
Net Asset Value (“NAV”) to Common Shareholders	$3,440,036	$3,510,813	$3,683,649
NAV per Common Share	$7.84	$8.10	$8.92

Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments	$1,879,738	$1,631,291	$1,187,740

Net of Cash Debt to Total Assets	28.1%	29.7%	31.2%
Net of Cash Debt to Equity Ratio⁽²⁾	39.8%	43.7%	46.2%
Net of Cash Asset Coverage of Debt Ratio⁽²⁾	351%	329%	316%

Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity	91.9%	86.0%	78.4%
Unsecured and Non-Recourse Debt as % of Total Debt	100.0%	100.0%	100.0%

⁽¹⁾	Declared dividends are through the April 2025 distribution. February through April 2025 distributions are estimated based on shares outstanding as of 2/7/2025.
⁽²⁾	Including our preferred stock as equity.

CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

Prospect is declaring distributions to common shareholders as follows:

Monthly Cash Common Shareholder Distribution	Record Date	Payment Date	Amount ($ per share)
February 2025	2/26/2025	3/20/2025	$0.0450
March 2025	3/27/2025	4/17/2025	$0.0450
April 2025	4/28/2025	5/20/2025	$0.0450

Prospect expects to declare May 2025, June 2025, July 2025, and August 2025 distributions to common shareholders in May 2025.

Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.39 per share to original common shareholders, representing 2.7 times December 2024 common NAV per share, aggregating $4.4 billion in cumulative distributions to all common shareholders.

Since Prospect’s initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

Drivers focused on optimizing our business include: (1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans, including sometimes with selected equity investments, (2) continued amortization of our subordinated structured notes portfolio, (3) prudent exits of equity linked assets (including real estate properties and corporate investments), (4) enhancement of portfolio company operating performance, and (5) greater utilization of our cost efficient revolving floating rate credit facility.

In our middle market lending strategy, we recently provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC (“Taos Footwear”), aggregating $65 million, in collaboration with Taos Footwear’s founder and leadership team. Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. Taos Footwear is renowned for its supportive footbed that has reshaped the lifestyle footwear industry over the past 20 years.

Examples of similar recent investments in our middle market lending strategy with both first lien senior secured debt and equity linked investments include Druid City Infusion, LLC (an infusion therapy services company with multiple locations across the South and Mountain West regions of the United States), Discovery Point Retreat, LLC (a rapidly growing detox and rehabilitation provider in North Texas), The RK Logistics Group, Inc. (a logistics service provider of turnkey inventory management and transportation services focused on technology and other sectors), and iQor Holdings, Inc. (a provider of customer experience services and business process outsourcing services).

Our subordinated structured notes portfolio as of December 31, 2024 represented 5.8% of our investment portfolio, a reduction of 210 basis points from 7.9% as of December 31, 2023. Since the inception of this strategy in 2011 and through December 31, 2024, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times. The remaining subordinated structured notes portfolio had a trailing twelve month average cash yield of 24.4% and an annualized GAAP yield of 3.9% (in each case as of December 31, 2024, based on fair value, and excluding investments being redeemed), with the difference between cash yield and GAAP yield representing amortization of our cost basis.

In our real estate property portfolio at National Property REIT Corp. (“NPRC”), since the inception of this strategy in 2012 and through December 31, 2024, we have exited 51 property investments (including two exits in the December 2024 quarter) that have earned an unlevered investment-level gross cash IRR of 24.3% and cash on cash multiple of 2.5 times. The remaining real estate property portfolio included 59 properties and paid us an income yield of 6.9% for the quarter ended December 31, 2024. Our aggregate investments in the related portfolio company had a $522 million unrealized gain as of December 31, 2024.

Our senior management team and employees own 28.7% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or approximately $1.0 billion of our common equity as measured at NAV.

PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

All amounts in $000’s except per unit amounts	As of	As of	As of
All amounts in $000’s except per unit amounts	December 31, 2024	September 30, 2024	December 31, 2023

Total Investments (at fair value)	$7,132,928	$7,476,641	$7,631,846
Number of Portfolio Companies	114	117	126
Number of Industries	33	33	36

First Lien Debt	64.9%	64.9%	58.7%
Second Lien Debt	10.2%	11.1%	15.5%
Subordinated Structured Notes	5.8%	6.2%	7.9%
Unsecured Debt	0.1%	0.1%	0.1%
Equity Investments	19.0%	17.7%	17.8%
Mix of Investments with Underlying Collateral Security	80.9%	82.2%	82.1%

Annualized Current Yield – All Investments	9.1%	9.7%	10.1%
Annualized Current Yield – Performing Interest Bearing Investments	11.2%	11.8%	12.3%

Non-Accrual Loans as % of Total Assets ⁽¹⁾	0.4%	0.5%	0.2%

Middle-Market Loan Portfolio Company Weighted Average EBITDA⁽²⁾	$101,644	$104,682	$109,719
Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio⁽²⁾	6.1x	5.7x	5.4x

⁽¹⁾	Calculated at fair value.
⁽²⁾	For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.

During the March 2025 (to date), December 2024, and September 2024 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

All amounts in $000’s	Quarter Ended	Quarter Ended	Quarter Ended
All amounts in $000’s	March 31, 2025 (to date)	December 31, 2024	September 30, 2024

Total Originations	$110,724	$134,956	$290,639

Middle-Market Lending	86.4%	67.7%	85.8%
Middle-Market Lending / Buyouts	—%	14.5%	6.1%
Real Estate	13.6%	17.8%	7.8%
Subordinated Structured Notes	—%	—%	—%

Total Repayments and Sales	$19,480	$383,363	$282,328

Originations, Net of Repayments and Sales	$91,244	$(248,407)	$8,311

For additional disclosure see “Primary Origination Strategies” at the end of this release.

CAPITAL AND LIQUIDITY

Our multi-year, long-term laddered and diversified historical funding profile has included a $2.1 billion revolving credit facility (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, after we retire our upcoming $156.2 million convertible bond maturity due March 2025 (utilizing existing liquidity on hand), will have just $3.9 million remaining of debt maturing during calendar year 2025.

On June 28, 2024, we completed an extension and upsizing of our Revolving Credit Facility (the “Revolving Credit Facility”), which extended the term of the Facility five years and the revolving period to four years from such date. The Facility includes a revolving period that extends through June 28, 2028, followed by an additional one-year amortization period. The interest rate for amounts drawn under the Facility remained unchanged from prior to the extension and upsizing and is one-month SOFR plus 2.05%.

Our total unfunded eligible commitments to portfolio companies totals approximately $62 million, of which $29 million are considered at our sole discretion, representing 0.9% and 0.4% of our total assets as of December 31, 2024, respectively.

	As of	As of
All amounts in $000’s	December 31, 2024	September 30, 2024
Net of Cash Debt to Total Assets Ratio	28.1%	29.7%
Net of Cash Debt to Equity Ratio⁽¹⁾	39.8%	43.7%
% of Interest-Bearing Assets at Floating Rates	79.8%	81.0%
Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity	91.9%	86.0%

Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments	$1,879,738	$1,631,291

Unencumbered Assets	$4,763,601	$4,852,971
% of Total Assets	65.8%	63.9%

⁽¹⁾	Including our preferred stock as equity.

The below table summarizes our December 2024 quarter term debt issuance and repurchase/repayment activity:

All amounts in $000’s	Principal	Coupon	Maturity
Debt Issuances
Prospect Capital InterNotes®	$41,759	6.625% – 7.75%	January 2027 – December 2034
Total Debt Issuances	$41,759

Debt Repurchases/Repayments
Prospect Capital InterNotes®	$1,187	2.25% – 6.63%	May 2026 – December 2051
2026 Notes	$11,443	3.706%	January 2026
Total Debt Repurchases/Repayments	$12,630

Net Debt Repurchases/Repayments	$29,129

We currently have four separate unsecured debt issuances aggregating approximately $1.1 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At December 31, 2024, $644 million of program notes were outstanding with laddered maturities through March 2052.

At December 31, 2024 our weighted average cost of unsecured debt financing was 4.49%, an increase of 0.07% from September 30, 2024, and an increase of 0.34% from December 31, 2023.

We have raised significant capital from our existing $2.25 billion perpetual preferred stock offering programs. The preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled maturity risk due to the perpetual term of multiple preferred tranches.

DIVIDEND REINVESTMENT PLAN

We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.

HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

Shares held with a broker or financial institution

Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the “Prospect Capital Corporation DRIP through DTC” that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker’s own “synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.

Shares registered directly with our transfer agent

If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

EARNINGS CONFERENCE CALL

Prospect will host an earnings call on Tuesday, February 11, 2025 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after February 11, 2025 visit www.prospectstreet.com or call 877-344-7529 with passcode 2146236.

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data)

	December 31, 2024		June 30, 2024
	(Unaudited)		(Audited)
Assets
Investments at fair value:
Control investments (amortized cost of $3,323,998 and $3,280,415, respectively)	$	3,772,329	$	3,872,575
Affiliate investments (amortized cost of $11,735 and $11,594, respectively)	20,212		18,069
Non-control/non-affiliate investments (amortized cost of $3,689,972 and $4,155,165, respectively)	3,340,387		3,827,599
Total investments at fair value (amortized cost of $7,025,705 and $7,447,174, respectively)	7,132,928		7,718,243
Cash and cash equivalents (restricted cash of $1,508 and $3,974, respectively)	59,760		85,872
Receivables for:
Interest, net	18,428		26,936
Other	1,914		1,091
Deferred financing costs on Revolving Credit Facility	21,180		22,975
Prepaid expenses	641		1,162
Due from broker	—		734
Due from Affiliate	4		79
Total Assets	7,234,855		7,857,092
Liabilities
Revolving Credit Facility	301,522		794,796
Public Notes (less unamortized discount and debt issuance costs of $10,075 and $12,433, respectively)	966,197		987,567
Prospect Capital InterNotes® (less unamortized debt issuance costs of $9,299 and $7,999, respectively)	634,535		496,029
Convertible Notes (less unamortized debt issuance costs of $166 and $649, respectively)	156,002		155,519
Due to Prospect Capital Management	50,700		58,624
Interest payable	23,214		21,294
Dividends payable	20,076		25,804
Due to Prospect Administration	5,070		5,433
Accrued expenses	4,028		3,591
Due to broker	2,762		10,272
Other liabilities	199		242
Total Liabilities	2,164,305		2,559,171
Commitments and Contingencies
Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of December 31, 2024 and June 30, 2024; 27,968,443 and 28,932,457 Series A1 shares issued and outstanding, 1,309,907 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,476,826 and 24,810,648 Series A3 shares issued and outstanding, 2,732,317 and 3,351,101 Series M3 shares issued and outstanding, 2,192,884 and 1,401,747 Series M4 shares issued and outstanding, 7,012,458 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 0 and 0 Series A5 issued and outstanding, and 0 and 0 Series M5 issued and outstanding as of December 31, 2024 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends	1,630,514		1,586,188
Net Assets Applicable to Common Shares	$	3,440,036	$	3,711,733
Components of Net Assets Applicable to Common Shares and Net Assets, respectively
Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 438,851,578 and 424,846,963 issued and outstanding, respectively)	439		425
Paid-in capital in excess of par	4,267,636		4,208,607
Total distributable (loss)	(828,039)		(497,299)
Net Assets Applicable to Common Shares	$	3,440,036	$	3,711,733
Net Asset Value Per Common Share	$	7.84	$	8.74

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited)

	Three Months Ended December 31,				Six Months Ended December 31,
	2024		2023		2024		2023
Investment Income
Interest income (excluding payment-in-kind (“PIK”) interest income):
Control investments	$	57,386	$	41,690	$	109,768	$	90,816
Non-control/non-affiliate investments	87,159		105,749		182,069		212,105
Structured credit securities	4,054		8,882		8,233		25,569
Total interest income (excluding PIK interest income)	148,599		156,321		300,070		328,490
PIK interest income:
Control investments	13,884		26,834		33,594		50,951
Non-control/non-affiliate investments	6,315		11,476		19,749		17,637
Total PIK Interest Income	20,199		38,310		53,343		68,588
Total interest income	168,798		194,631		353,413		397,078
Dividend income:
Control investments	4,387		—		4,387		227
Affiliate investments	—		—		141		1,307
Non-control/non-affiliate investments	2,574		1,340		4,843		2,865
Total dividend income	6,961		1,340		9,371		4,399
Other income:
Control investments	8,416		11,616		15,383		41,361
Non-control/non-affiliate investments	1,291		3,355		3,607		4,349
Total other income	9,707		14,971		18,990		45,710
Total Investment Income	185,466		210,942		381,774		447,187
Operating Expenses
Base management fee	37,069		39,087		75,675		78,376
Income incentive fee	13,632		18,325		29,312		43,942
Interest and credit facility expenses	37,979		40,044		77,739		80,637
Allocation of overhead from Prospect Administration	5,708		12,252		11,416		14,365
Audit, compliance and tax related fees	80		479		1,800		1,496
Directors’ fees	150		131		300		266
Other general and administrative expenses	4,417		3,697		9,224		5,566
Total Operating Expenses	99,035		114,015		205,466		224,648
Net Investment Income	86,431		96,927		176,308		222,539
Net Realized and Net Change in Unrealized Gains (Losses) from Investments
Net realized gains (losses)
Control investments	3		—		6,370		(147)
Non-control/non-affiliate investments	(46,656)		123		(153,393)		(207,219)
Net realized gains (losses)	(46,653)		123		(147,023)		(207,366)
Net change in unrealized gains (losses)
Control investments	30,419		(99,441)		(143,829)		(117,235)
Affiliate investments	(1,446)		1,751		2,002		2,588
Non-control/non-affiliate investments	(69,053)		(27,051)		(22,020)		188,535
Net change in unrealized gains (losses)	(40,080)		(124,741)		(163,847)		73,888
Net Realized and Net Change in Unrealized Gains (Losses) from Investments	(86,733)		(124,618)		(310,870)		(133,478)
Net realized gains (losses) on extinguishment of debt	236		(53)		484		(144)
Net Increase (Decrease) in Net Assets Resulting from Operations	(66)		(27,744)		(134,078)		88,917
Preferred Stock dividends	(26,228)		(24,070)		(53,385)		(47,221)
Net gain (loss) on redemptions of Preferred Stock	(906)		378		1,398		879
Gain (loss) on Accretion to Redemption Value of Preferred Stock	(3,793)		—		(9,997)		—
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders	$	(30,993)	$	(51,436)	$	(196,062)	$	42,575

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE (in actual dollars)

	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
Per Share Data
Net asset value per common share at beginning of period	$	8.10		$	9.25		$	8.74		$	9.24
Net investment income⁽¹⁾	0.20			0.24			0.41			0.54
Net realized and change in unrealized gains (losses)⁽¹⁾	(0.21)			(0.30)			(0.74)			(0.33)
Net increase (decrease) from operations	(0.01)			(0.06)			(0.33)			0.21
Distributions of net investment income to preferred stockholders	(0.06)		₍₄₎	(0.07)		₍₃₎	(0.12)		₍₄₎	(0.12)		₍₃₎
Distributions of capital gains to preferred stockholders	—		₍₄₎	—		₍₃₎	—		₍₄₎	—		₍₃₎
Total distributions to preferred stockholders	(0.06)			(0.07)			(0.12)			(0.12)
Net increase (decrease) from operations applicable to common stockholders	(0.07)			(0.13)			(0.45)			0.10		₍₇₎
Distributions of net investment income to common stockholders	(0.15)		₍₄₎	(0.18)		₍₃₎	(0.33)		₍₄₎	(0.34)		₍₃₎
Return of capital to common stockholders	—		₍₄₎	—		₍₃₎	—		₍₄₎	(0.02)		₍₃₎₍₆₎
Total distributions to common stockholders	(0.15)			(0.18)			(0.33)			(0.36)
Common stock transactions⁽²⁾	(0.04)			(0.02)			(0.13)			(0.06)
Net asset value per common share at end of period	$	7.84		$	8.92		$	7.84	₍₇₎	$	8.92	₍₇₎

⁽¹⁾	Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.

⁽²⁾	Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.

⁽³⁾	Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.

⁽⁴⁾	Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.

⁽⁵⁾	Diluted net decrease from operations applicable to common stockholders was $0.07 for the three months ended December 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.13 for the three months ended December 31, 2023. Diluted net decrease from operations applicable to common stockholders was $0.45 for the six months ended December 31, 2024. Diluted net increase from operations applicable to common stockholders was $0.10 for the six months ended December 31, 2023.

⁽⁶⁾	The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for December 31, 2023. Certain reclassifications have been made in the presentation of prior period amounts.

⁽⁷⁾	Does not foot due to rounding.

MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA, NET LEVERAGE AND INTERNAL RATE OF RETURN

Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal.

Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC’s middle-market loan portfolio.

These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.

Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.

Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

PRIMARY ORIGINATION STRATEGIES

Lending to Companies – We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

Lending to Companies and Purchasing Controlling Equity Positions in Such Companies – This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers and the opportunity for management to continue on in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

Purchasing Controlling Equity Positions and Lending to Real Estate Companies – We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

Investing in Structured Credit – We make investments in structured credit, often taking a significant position in subordinated structured notes (equity). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

About Prospect Capital Corporation

Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For additional information, contact:

Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702

The MIL Network –

February 11, 2025

Category: Emissions Trading