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Category: Entertainment

  • MIL-OSI Economics: Samsung Onyx Enhances the Cinema Experience in One of the World’s Most Beautiful Cinemas, the Pathé Palace in Paris

    Source: Samsung

     
    Samsung Electronics today announced that six Samsung Onyx cinema LED displays have been successfully installed at the Pathé Palace theater in Paris, France. Together with The Wall, an 8K screen installed in the lobby and Smart Signage around the cinema, Samsung displays will raise the bar on the entire moviegoing experience.
     
    Completely renovated over five years, the Pathé Palace is a one-of-a-kind venue known as much for its architecture by Renzo Piano as it is for the quality of its unique services. To deliver a premium cinema experience, Pathé Palace is using six Samsung Onyx screens: four 4K Onyx screens that measure over 10m wide and two 2K Onyx screens that measure 5m wide — all of which provide a new level of image quality to the audience.
     
    “These six cutting-edge Samsung Onyx LED screens juxtapose brilliantly against the historic cinema, blending the classic with the modern to give moviegoers a truly unique experience,” said Menno van den Berg, President, Samsung Electronics France. “The stunning visual quality that these displays provide will engage the audience on another level and do full justice to each filmmakers’ vision.”
     

     
    Samsung Onyx is the world’s first Digital Cinema Initiatives (DCI)-certified cinema LED display for theatrical exhibition. The LED display provides exceptionally vivid color and detail-rich content, with a wide, vibrant color gamut providing consistent representation across the entire screen. Thanks to the self-lit LED Onyx screens, the HDR images they produce have clear blacks and contrasts. With luminance up to 300 nits, Onyx screens are more than six times brighter than typical film projectors.
     
    “Films are most powerful when they fully immerse us in their worlds, and technology plays a crucial role in that magic. Samsung Onyx screens elevate the theatrical experience with pristine blacks and exceptional clarity, making every frame feel startlingly real.” said Jacques Durand, Chief Information Officer, Pathé Group.
     
    Pathé Palace can also deliver exceptional 3D film experiences thanks to the 3D capabilities of the Onyx LED screens, which bring improved brightness and consistent color amplification for enhanced realism. When wearing active 3D glasses, a film’s subtitle text, images and even minor visual details gain unprecedented clarity, without shadowing and with less of the dizziness that can occur in traditional 3D movie theaters.
     
     
    Comprehensively Enhancing Pathé’s Operations
    Samsung has also installed The Wall (IWC model) in the main lobby of the Pathé Palace. Standing at 5.4m high and 9.6m wide, The Wall uses the MICRO AI Processor to analyze every second of footage instantly, upscaling up to 8K resolution and optimizing picture quality to have less visual noise. The Wall’s HDR technology makes the most out of color and highlights, enhancing contrast and making highlights look brighter. The screen uses MICRO LED technology, which individually controls pixels to provide precision and depth in the picture.
     

     
    In addition to the Onyx screens and The Wall, Samsung has equipped the cinema with its Smart Signage (QMC series) to display the theater schedules and movie trailers in the lobby, as well as in front of each theater room, bringing the posters to life with the over 1 billion colors available. At the entrance of each theater room, Samsung’s Stretched Display (SH37C model) greets moviegoers with a crisp, clean screen in a 16:4.5 ratio. The Pathé headquarters office has also recently installed about 200 5K ViewFinity S9 monitors and the boardroom takes advantage of the impressive size and video capabilities of The Wall (IWA model).
     
    Samsung Electronics has also previously equipped Pathé cinemas with its Onyx LED screens at Pathé Beaugrenelle in Paris and Pathé Bellecour in Lyon. This new installation at Pathé Palace represents a new milestone in the partnership between Samsung and Pathé, as they aim to continue innovating together in the future.

    MIL OSI Economics –

    January 25, 2025

  • MIL-OSI China: London gets Peking Opera with a twist

    Source: China State Council Information Office 3

    A production fusing traditional Chinese opera with Western classical music took place in London on Oct 17, with a performance inspired by the life of Cai Lun, the man credited with the invention of paper, at the Jerwood Hall.

    The performance, called Ein Heldenleben: Cai Lun, which translates as A Hero’s Life: Cai Lun, was conceived, written and directed by acclaimed Chinese theatrical figure Chen Xinyi, best known for having devised the performance style known as “symphony poetry drama”.

    The soundtrack, performed by the Fidelio Orchestra conducted by Raffaello Morales, was composed by Richard Strauss in the 19th century, in a style called a tone poem, a single continuous movement made up of sequences similar to chapters or verses, rather than stand-alone movements, as in a symphony.

    Although Cai Lun’s greatest contribution to civilization was his invention of paper, it was his life as an imperial court eunuch during the time of Emperor He of the Eastern Han Dynasty (25-220), and the court intrigues in which he found himself involved, that caught Chen’s imagination.

    “He’s a giant of China, whose invention changed civilization and advanced cultural progress. But he also experienced misfortune that evoked my sympathy — he is a super dramatic character,” she adds.

    With biographical details hard to come by, Chen says that the piece is “inspired by his life, not a portrait of it — it’s theater, not a history story”.

    Combining a story with music written hundreds of years ago and thousands of kilometers apart may seem unlikely, but Chen says that as soon as she heard Ein Heldenleben (A Hero’s Life) and understood what it was about, the pairing came together.

    The performance is divided into six segments that illustrate the hero’s journey through life and the triumphs and adversities he encountered along the way, which Chen says matched Cai’s story.

    “In 2019, I was rehearsing an opera at the National Theatre of China and at the end of the day, I was exhausted,” she says.

    “The orchestra manager came and said, ‘there’s a performance tonight of something called The Hero’s Life, you have to hear it’. I said no but he ended up pushing me there in a wheelchair.

    “When I got to the venue, I felt like sleeping but as soon as the music started, I began to get visions of Cai Lun, and then I read the program and saw the titles of the different sequences following the hero’s journey, and I could see how they fitted together.”

    Combining Chinese theater and Western music is a practice Chen has been exploring for the last 20 years, with eight of her symphony poetry dramas having been performed previously, but this was her first time performing in the United Kingdom — something she had long wanted to do.

    “This country is the home of William Shakespeare, who I admire greatly, and there is the connection between him and the great playwright Tang Xianzu, who emerged in China at the same time,” she explains. “Then, about 200 years ago, Europe saw the rise of symphonic music at the same time as China saw the rise of Peking Opera, which is a special art form that uses characters to express emotions in the same way that symphonic music does, so these are two great performance styles that I love to bring together, and London is a city where I particularly wanted to do it.”

    MIL OSI China News –

    January 25, 2025

  • MIL-OSI Australia: UPDATE: Call for information – Injuries – Alice Springs

    Source: Northern Territory Police and Fire Services

    Northern Territory Police are calling for information after a man suffered serious injuries in Alice Springs yesterday.

    Sometime in the late afternoon, the 67-year-old man returned home to his residence on the corner of Breaden Rd and Gap Rd, where he was later located with serious non-life-threatening injuries.

    He was conveyed to Alice Springs Hospital with injuries to his head and upper body.

    Initial reports suggested the man had been assaulted. After further investigations police now believe the man has fallen, causing his injuries.

    Investigations are still ongoing, and police urge anyone with information, including CCTV or dashcam footage, or who witnessed the incident to make contact on 131 444 and reference NTP2400107134.

    Anonymous reports can also be made through Crime Stoppers on 1800 333 000 or via https://crimestoppersnt.com.au/.

    MIL OSI News –

    January 25, 2025

  • MIL-OSI Translation: Meeting of the Council of Ministers on 24 October 2024

    MIL OSI Translation. Timor-Leste Portuguese to English –

    Presidency of the Council of Ministers

    Spokesperson for the Government of Timor-Leste
    ……………………………………………. ……………………………………………. …………………….

    Press release

    Council of Ministers meeting on 24 October 2024

    The Council of Ministers met at the Government Palace in Dili and approved the draft Decree-Law, presented by the Minister of the Presidency of the Council of Ministers, Agio Pereira, and by the Secretary of State for Social Communication, Expedito Dias Ximenes, for the first amendment to Decree-Law No. 42/2008, of 26 November, which transformed Radio and Television of Timor-Leste (RTTL, EP) into a public company.

    The proposed changes aim to adapt the Radio and Television of Timor-Leste (RTTL, EP) to the new technological and administrative requirements, with the introduction of digital terrestrial television. The new legislation allows RTTL, EP to broadcast and manage digital channels, allowing greater flexibility in the distribution of content and obtaining additional revenue. In addition to enabling the broadcast of free channels with a national and international context, it will also be possible to introduce post-paid and pre-paid services, thus strengthening its financial sustainability.

    The project also foresees the elimination of the Opinion Council, which has never been implemented since the creation of RTTL, EP, and the creation of the position of Executive Director, directly reporting to the President of the public company, who will support the administrative and financial management of the company, ensuring continuity and good governance. With these changes, the aim is to strengthen the competitiveness and quality of services provided to the public, ensuring a modern, efficient broadcaster aligned with sector standards.

    *******

    The Council of Ministers decided to grant a day off on October 31, 2024, considering that November 1 and 2 are All Saints’ Day and All Souls’ Day, dates of great importance for the Catholic community and provided for as national holidays by Law No. 10/2005, of August 10, amended by Law No. 3/2016, of May 25. This decision aims to facilitate the movement of the population to their homelands, allowing them to participate in religious celebrations. END

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

    MIL Translation OSI

    January 25, 2025

  • MIL-OSI Asia-Pac: Over 200 school bands and orchestras to perform at Hong Kong Youth Music Interflows

    Source: Hong Kong Government special administrative region

    Over 200 school bands and orchestras to perform at Hong Kong Youth Music Interflows
    Over 200 school bands and orchestras to perform at Hong Kong Youth Music Interflows
    ***********************************************************************************

         The 2024 Hong Kong Youth Music Interflows organised by the Music Office of the Leisure and Cultural Services Department (LCSD) will be held from November 21 to December 12. More than 200 orchestras and bands (String Orchestra, Symphony Orchestra, Symphonic Band and Chinese Orchestra) from local primary and secondary schools will participate in the interflows, exchanging through observing.      More than 50 orchestras will take part in the four classes of the String Orchestra Interflow at the Auditorium of the Yuen Long Theatre on November 21 and 22.     Over 40 orchestras will perform in the Symphony Orchestra Interflow, with four classes to be held at the Concert Hall of the Hong Kong Cultural Centre on November 25 and 26.     Over 70 bands will take part in the six classes of the Symphonic Band Interflow at the Arena of Queen Elizabeth Stadium from December 3 to 6. The top two Gold Award Winners of each class in the Symphonic Band Interflow (if awarded) will be invited to compete for the Tom Lee Cup in the primary and secondary school categories at the Symphonic Band Extravaganza on December 7. Renowned Hungarian trombone virtuoso Ádám Mester, together with the Hong Kong Youth Symphonic Band, will guest perform at the Symphonic Band Extravaganza.     Over 70 orchestras will participate in the six classes of the Chinese Orchestra Interflow at the Auditorium of Tuen Mun Town Hall from December 10 to 12.      Tickets for the String Orchestra Interflow are now available at URBTIX (www.urbtix.hk). Those for the Symphony Orchestra Interflow, the Symphonic Band Interflow and Extravaganza will be available from October 28 and November 5 onwards respectively, while those for the Chinese Orchestra Interflow will be available from November 12 onwards. Tickets for each performance are priced at $70. For the String Orchestra Interflow (primary school classes), each person can purchase a maximum of two tickets each time. For telephone bookings, please call 3166 1288. For programme enquiries, please call 2158 6467 (String Orchestra Interflow and Symphony Orchestra Interflow), 2596 0898 (Symphonic Band Interflow) or 2796 1003 (Chinese Orchestra Interflow) or visit www.lcsd.gov.hk/en/mo/activities/musicactivities/hkymi/2024hkymi.html.     The Chinese Orchestra Interflow under the 2024 Hong Kong Youth Music Interflows is one of the activities in the Chinese Culture Promotion Series. The LCSD has long been promoting Chinese history and culture through organising an array of programmes and activities to enable the public to learn more about the broad and profound Chinese culture. For more information, please visit www.lcsd.gov.hk/en/ccpo/index.html.

     
    Ends/Thursday, October 24, 2024Issued at HKT 12:30

    NNNN

    MIL OSI Asia Pacific News –

    January 25, 2025

  • MIL-OSI Australia: RadComms 2024 – Melbourne

    Source: Australian Ministers 1

    Good morning,

    Thank you Chair, Nerida O’Loughlin (PSM) for your introduction and inviting me to speak.
     
    Good morning to all the Authority Members & hardworking staff of the ACMA, and the industry here today.
     
    Some of you may be aware that ACMA Deputy Chair, Creina Chapman, who has expertly held the position since 2018, is retiring and not seeking reappointment.
     
    Creina, over the past six years, you have made an outstanding contribution to the ACMA and Australia’s communications and media landscape.
     
    You have contributed to reforms that have made a real difference to connectivity and consumer safety. And you have always conducted yourself with kindness and compassion.
     
    Thank you for brining your intellect & integrity to this very important role. You have made this regulator stronger.
     
    I am pleased to be here for RadComms 2024, which is exploring the contribution of the digital economy and spectrum to a better-connected Australia.
     
    I acknowledge the Traditional Owners – the Wurundjeri people of the Kulin Nation. I pay respect to elders past and present.
     
    I extend this to First Nations people in attendance, including Associate Professor Lyndon Ormond-Parker, Co-Chair of the First Nations Digital Inclusion Advisory Group, established by the Albanese Government.
     
    Dr Ormond-Parker and Co-Chair, Dot West (OAM), have expertly led the Advisory Group, engaging many First Nations communities – indeed many of you in this room.
     
    The Advisory Group’s initial report to Government is the culmination of this.

    It has been insightful as to how – in partnership with First Nations peoples – we can support digital inclusion.
     
    Our Government is delivering on key recommendations of the report, including  free community Wi-Fi in around 20 remote communities, to provide better opportunities for education and training, employment and jobs, and improved access to essential services and information.
     
    We have also established a digital support hub and network of digital mentors, and improving the national collection of data on First Nations digital inclusion.
     
    It is wonderful to address RadComms for a second time as Communications Minister.
     
    The theme of this year’s event is: Supporting the present, empowering the future.
     
    It is an opportunity to explore how spectrum can deliver the applications and technologies that will shape our future.
     
    Telecommunications, technology, broadcasting and the media is evolving fast.
     
    Our connectedness and economic prosperity as a country hinges on how we best manage this transition.
     
    Managing radiofrequency spectrum, and regulating services in this fast-changing environment presents some challenges.
     
    But by mitigating risks, embracing technological change, and supporting business certainty, we can foster the opportunities.
     
    At RadComms 2022, I spoke about the importance of stability and predictability around radiofrequency spectrum management.
     
    We allocated close to $28 million to support the ACMA’s delivery of a modernised spectrum management system and a new auction capability.
     
    Building on the theme of stability and predictability, today I will discuss how the Albanese Government’s approach is supporting industry and consumers.
     
    Labor’s vision is for Australia to become the most connected continent on earth. And we can’t do this without the efficient use of spectrum.
     
    Spectrum licences across a number of highly important bands are due to expire from 2028 to 2032.  Industry needs sufficient time to plan and deploy communications services using that spectrum.
     
    It is the role of Government to provide clarity to licensees, and potential licensees, through our policy objectives.
     
    This is why I issued a Ministerial Policy Statement on Expiring Spectrum Licences to the ACMA in April.
     
    This aims to provide the ACMA with a strategic direction in reaching its decisions throughout the expiring spectrum licence process, and ensuring outcomes are in the long-term public interest.
     
    The Statement sets out the Albanese Government’s key communications policy objectives, including capacity for sustained investment and innovation.
     
    For improved connectivity and investment in regional, rural and remote areas.
     
    And the key objective of better services in the long-term interests of consumers.
     
    The Albanese Government’s $1.1 billion Better Connectivity Plan for Regional and Rural Australia has made significant inroads into improving mobile coverage across the country. 
     
    More efficient spectrum use is central to the significant upgrades we are delivering across the National Broadband Network: from fibre to fixed-wireless and Sky Muster.
     
    In addition to our $2.4 billion investment in fibre to 1.5 million more premises, we have invested $480 million to deliver better, faster fixed wireless broadband to regional communities.
     
    This, in turn, is improving the customer experience for those on Sky Muster, which is now unmetered thanks to the Albanese Government.
     
    We are delivering the quality communications infrastructure Australians rightly expect and deserve across the technology mix. And we are doing this on time and on budget.
     
    A further development that is making a positive impact is the increasing role that tower infrastructure operators are playing in bringing innovations to the market, like spectrum-sharing projects in regional areas.
     
    Investments by industry in the expanding peri-urban areas will help keep pace with ever growing community demand for mobile connectivity.
     
    Our Peri-Urban Mobile Program – PUMP – and reforms to new housing estate deployments, demonstrates how Government and industry can work together to deliver on community connectivity expectations.     
     
    But there are still areas, and communities, that experience poor, inadequate or even no mobile service. We know that mobile connectivity is not widely available in many First Nations communities, for example, or even on the outskirts of major regional towns.
     
    We have received this feedback from the First Nations Digital Inclusion Advisory Group and the Regional Telecommunications Independent Review Committee. I look forward to receiving the Committee’s final report to Government later this year.
     
    When we talk about connectivity, we are also talking about the quality of service.
     
    I am hearing from people living and working in rural and regional areas that while their device may display reception bars, congestion and capacity issues often translate into slow connections and limited capability beyond basic text and voice functionality.
     
    In other words, their smart phones and devices are anything but.
     
    The Ministerial guidance I provided to the ACMA regarding the management of expiring spectrum licences was purposefully broad in scope.
     
    It encourages the ACMA to develop a considered view on the use of alternative licensing conditions in its expiring spectrum licence process. For example: 

    • rollout or deployment commitments;
    • harnessing spectrum and infrastructure-sharing efficiencies; and
    • innovative approaches to connecting the perpetually under-connected – First Nations, regional and remote communities.

    Today’s digital, technological and market environment is starkly different to that of 15 years ago, when expiring licences were first issued.
     
    And it continues to evolve.
     
    The Ministerial Guidance to the ACMA is ambitious, and it forms part of our broader objective to set Australia up to become the most connected continent.
     
    As we work towards this future, we must also consider what lies ahead for television broadcasting.
     
    I am on the record & I reiterate it here – I believe in the broadcasting platform.

    A central goal of our media reform program is to support the important role of free-to-air television broadcasting in Australian society.
     
    This is demonstrated through the prominence framework the Albanese Labor Government legislated and our reforms to the anti-siphoning scheme.
     
    Free-to-air television services are integral to our media ecosystem: 

    • they are the conduits for Australian stories;
    • they are the trusted source of news to millions; and
    • they provide the sporting moments that define our national psyche. 

    But there is significant uncertainty as to what television broadcasting will look like in 10, or 20 years.
     
    What we can be sure of, is that it will not be what it is now.
     
    Audience and technology trends are clear. There is an ongoing shift from linear content consumption to on-demand.
     
    But – that does not mean a ‘lights out’ moment for broadcasting. We know most Australians are hybrid users, utilising on-demand services alongside linear consumption.
     
    And terrestrial and satellite broadcasting networks can do things that are still not possible in the online environment in terms of reliability and service provision.
     
    There is an essential and ongoing role for broadcasters in our media future, but broadcasting must change.
     
    A sustainable future for broadcasting will require changes to the way in which broadcasters operate and the way they reach their audiences.
     
    Choices will need to be made now if we are to realise that future.

    Free-to-air television broadcasting is entering a period of unmanaged transition.
     
    Consumer consumption preferences and falling revenue are – despite deep cost cutting initiatives – putting some broadcasters in a position where they can’t keep the doors open, for certain services.
     
    We saw this with the closure of Mildura Digital Television in July.
     
    If we stay on this unmanaged pathway, these trends will continue: more service closures in remote and regional markets, where the financial pressures are greatest. These pressures may eventually manifest in the larger cities.
     
    Allowing a sector that delivers so much to Australian consumers to grind to a halt, for services to blink out, is not in the interests of local communities.
     
    For consumers, it will mean less diversity and less choice. It will mean some consumers get left behind.
     
    For industry, it will be increasingly difficult to raise the capital needed for much needed business transformation.
     
    For Government, it will mean that the achievement of key public policy outcomes will be diminished: an informed citizenry; a strong and vibrant democracy; and engaged and cohesive local communities.
     
    But an unmanaged transition is not the only way forward.
     
    There is no going back to the golden era of television that existed before the internet, and nor should we want to.
     
    Consumers have never had so much choice.
     
    The reality is that commercial television broadcasting cannot continue in the manner it has done over the past decades.
     
    This is simply not sustainable.
     
    The way the industry uses radiofrequency spectrum needs to be examined.
     
    Industry has been making enhancements. Many broadcasters have made, or are making, the transition to MPEG-4 which improves the efficiency and quality of services.
     
    We have seen certain broadcasters make changes to their spectrum use that would have been unthinkable only a few years ago.
     
    In South Australia, WIN Television has consolidated the services of two networks onto one television multiplex in two regional markets.
     
    WIN has realised cost savings without eroding services available to audiences.
     
    This is a portent for the future.
     
    A sustainable television broadcasting sector will necessitate some form of spectrum and infrastructure consolidation, and changes in the way content is delivered. 
     
    Achieving an efficient consolidation will be challenging, but it is a goal that the Albanese Government is committed to.
     
    We are supporting the sector under the existing regulatory framework.
     
    We have introduced the Regional Broadcasting Continuity Bill 2024 to remove impediments that would otherwise prevent WIN, or any other broadcaster, from consolidating services onto a single multiplex and operating their transmitters more efficiently.
     
    This won’t, of itself, guarantee financial sustainability for broadcasters. But it is an important initiative to enable them to seek out efficiencies where they can.     
     
    Another way we’ve provided stability to the sector is with the passage of legislation in March this year to repeal the 30 June expiry date for community television licences in Melbourne and Adelaide.
     
    This means that these broadcasters will continue to remain on-air and provide valuable services until there is an alternative use for the radiofrequency spectrum.
     
    The Government has also moved to promote stability by ensuring continuity of the Viewer Access Satellite Television (VAST) service over the next seven years. VAST is essential to over 1.5 million Australians who rely on it – either directly or indirectly – to access free-to-air television in remote Australia or those in areas with poor terrestrial reception. 
     
    We have otherwise been undertaking an audit of remote and regional television infrastructure.
     
    We know transmission and reception equipment is at, or beyond, end-of-life in many remote and regional areas, including the VAST services in First Nations communities.
     
    This undermines the ability of people in those communities to access the information they need to make informed choices about their lives.
     
    Television broadcasters have been working very productively with officials from my department to quantify those infrastructure deficiencies and gaps, and I thank them and encourage them to continue to do so
     
    The information stemming from the audit will be a key input to future consideration of the need for capital renewal and maintenance to support the provision of television services in remote and regional areas.  
     
    While the initiatives and processes I have just described will support the sustainability of commercial television services, there is a broader conversation to be had around longer-term reforms.

    The acceleration of declining revenues, and the pressure the sector is facing, makes considerations around the future of television broadcasting pressing.
     
    But this work can’t be done in isolation.
     
    Industry and Government need a shared understanding of what the future of television is to help align our goals and the coordination of public policy.
     
    To that end – the Albanese Government will work closely with industry on a plan to secure the future of free-to-air television, to position it to continue to inform, educate and entertain Australians.
     
    Our Government is seeking to explore the possibility of realising a digital dividend: options for the more efficient use of spectrum and infrastructure for television, which enables potential reallocation of spectrum to other uses.
     
    The first step will be the development of a discussion paper to support engagement with interested parties on this important initiative, to be released for consultation in early 2025.
     
    Spectrum requirements for television will depend on an assessment of the optimal mix of delivery mechanisms in 5, 10, and 20 years. They need to consider the role and capabilities of broadband infrastructure. And they need to be grounded by a view of what television should look like in the medium-term.
     
    The Government will engage right across the ecosystem: with broadcasters, infrastructure providers, mobile network operators, and consumers to ensure a shared understanding of what television in Australia should look like in a decade, and what is needed to get there.
     
    We want commercial television broadcasters to be able to continue to deliver content that is highly valued by Australian’s. But there is work to be done to get us on the right path and to avoid a costly and disruptive contraction of the sector.  
     
    But let me be very clear here, about what I am announcing, and what I am not announcing.
     
    I am announcing that the Government will explore pathways for the future of television, shaped by the possibility of realising a digital dividend.
     
    In doing so, I am putting, front and centre, the important question of what the future of television may be – because the television broadcasting is an essential platform in Australia, and we need a mature and measured discussion to plan its future.
     
    I am not announcing that the Government has identified, or decided to yield, a digital dividend. We have not.
     
    And I am not announcing any details on the issues or options or pathways today.
     
    I am announcing that Government will commence the process of exploring these pathways, in consultation with industry, and that this will commence in earnest, with a discussion paper, early next year.
     
    The process will consider the role and capabilities of broadband infrastructure, acknowledging the significant and growing reliance on telecommunications networks for television and video streaming. And it will consider the role of spectrum pricing as the Government assesses the future spectrum needs of broadcasting.
     
    Taking a long-term view of the future of television broadcasting will provide greater certainty for consumers and industry, ensuring Australians have continued access to valued free-to-air content – with the diversity, choice and social cohesion benefits that it brings.
     
    As I mentioned, the future of television must also consider the role of broadband.
     
    There is already a significant reliance on telecommunications networks for television and video streaming, and this is only going to grow.
     
    All possible television futures will require careful consideration of technological innovation and investment choices to manage the load on networks from television viewing.
     
    Broadband rollout and availability is only part of the picture.
     
    We know that availability doesn’t equate to take-up, and that there will remain a cohort of Australians unable to utilise online infrastructure due to a lack of financial means, skills, or interest.
     
    This is also part of the reason why free-to-air broadcasting remains such a critical delivery platform, with significant impacts for social inclusion and community cohesion. 
     
    For this reason and many others, the Albanese Government is improving connectivity for all Australians.
     
    Our significant investment in the National Broadband Network, for example, is delivering high-speed broadband services to households and businesses across the country, with a significant focus on regional and rural communities.
     
    We are positioning Australia as a test-bed for new and emerging tech, such as using Low Earth Orbit Satellites to support voice services. Trials in this space are underway.
     
    Our Universal Service Reform will deliver a modern, fit-for-purpose universal service framework with sustainable, long-term funding of services in rural and remote areas.
     
    In closing, Labor is a reformist Government; we are not afraid to make big reforms in the long-term public interest, even if they are difficult ones.  
     
    Our future connectedness and prosperity as a country will hinge on how we collectively manage the communications and media transition going forward.
     
    We must work together to ensure that the services people rely on remain relevant, efficient and accessible for consumers.
     
    Everyone in this room has a key role to play in determining this future success.

    Our Government will support you to play that role.
     
    As we work towards our vision for Australia to be the most connected continent.
     
    Thank you.

    MIL OSI News –

    January 25, 2025

  • MIL-OSI: Dassault Systèmes: European Energy Infrastructure Company Snam Embarks on Strategic Sustainable Project with Dassault Systèmes’ 3DEXPERIENCE Platform

    Source: GlobeNewswire (MIL-OSI)

    Press Release
    VELIZY-VILLACOUBLAY, France — October 24, 2024

    European Energy Infrastructure Company Snam Embarks on Strategic Sustainable Project with Dassault Systèmes’ 3DEXPERIENCE Platform

    • Snam deploys Dassault Systèmes’ 3DEXPERIENCE platform to digitally transform the management and optimization of its gas network as part of its innovation and sustainability strategy
    • Snam will rely on Dassault Systèmes’ solutions to create virtual twins of existing and future assets
    • Snam can manage and optimize asset operations collaboratively, improve structural safety, and reduce emissions

    Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today announced that Snam, the leading and pan-European gas infrastructure operator, is accelerating its digital transformation with the 3DEXPERIENCE platform at the core of a new asset management project to drive a sustainable energy transition.

    Snam will use the 3DEXPERIENCE platform to create virtual twins of its gas pipelines network, storage sites and liquefied natural gas (LNG) terminals in Italy, as well as the future assets it develops to diversify energy resources. Snam can manage and optimize asset operations, improve structural safety, and reduce emissions.

    Snam’s extensive ecosystem of assets and operators provides a stable supply of energy throughout Italy and internationally. With the ambition to develop energy infrastructure for a sustainable future, the company wanted to implement technology to manage existing and future assets in a more collaborative way, streamline engineering, and enhance the assets’ effectiveness, safety and reliability.

    The 3DEXPERIENCE platform will enable Snam to connect all stakeholders around virtual twins that simulate this complex asset network, and will integrate real-time data and information collected by sensors in the field seamlessly.

    “Operational efficiency and safety are imperatives for delivering affordable and accessible energy services. Our 3DEXPERIENCE platform enables utility companies like Snam to maintain assets throughout their life cycle, adapt them to ensure that energy systems work when they are needed most, and deliver new solutions,” said Remi Dornier, Vice President, Architecture, Engineering and Construction Industry, Dassault Systèmes.  

    ###

    FOR MORE INFORMATION

    Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

      

    ABOUT DASSAULT SYSTÈMES

    Dassault Systèmes is a catalyst for human progress. We provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 350,000 customers of all sizes, in all industries, in more than 150 countries. For more information, visit www.3ds.com

    © Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

    Dassault Systèmes Press Contacts
    Corporate / France        Arnaud MALHERBE        arnaud.malherbe@3ds.com        +33 (0)1 61 62 87 73
    North America        Natasha LEVANTI        natasha.levanti@3ds.com        +1 (508) 449 8097
    EMEA        Virginie BLINDENBERG        virginie.blindenberg@3ds.com        +33 (0) 1 61 62 84 21
    China        Grace MU        grace.mu@3ds.com        +86 10 6536 2288
    Japan        Reina YAMAGUCHI        reina.yamaguchi@3ds.com        +81 90 9325 2545
    Korea        Jeemin JEONG        jeemin.jeong@3ds.com         +82 2 3271 6653

    Attachment

    • European Energy Infrastructure Company Snam Embarks on Strategic Sustainable Project with Dassault Systèmes’ 3DEXPERIENCE Platform

    The MIL Network –

    January 25, 2025

  • MIL-OSI: TGS announces Q3 2024 results

    Source: GlobeNewswire (MIL-OSI)

    OSLO, Norway (24 October 2024) – TGS today reports interim financial results for Q3 2024.

    Financial highlights:

    • Merger with PGS completed on 1 July 2024 – Q3 2024 first quarter including PGS
    • Strong multi-client sales driven by a combination of solid pre-commitments for new investments and increased sales of existing data supported by material transfer fees
    • Record-high OBN contract activity – utilization of streamer fleet improving on high bid activity
    • Continued growth in New Energy Solutions 
    • Full-year pro-forma organic multi-client investments lowered to USD 425-450 million as certain projects have been deferred into 2025
    • Order inflow of USD 423 million during Q3 2024 – total produced backlog of USD 750 million
    • Significant upgrades of credit ratings by S&P and Moody’s
    • Robust balance sheet allows for continued dividend payment – USD 0.14 per share to be paid in Q4 2024

    “Q3 2024 was the first quarter after completion of the TGS-PGS merger, and I am pleased to report revenues of half a billion dollars. We have completed the merger reorganization process, and we are ahead of schedule in realizing annual synergies of between USD 110 and 130 million. Strong multi-client revenues in the quarter were driven by a combination of robust pre-commitments to ongoing programs and strong library sales supported by material transfer fees. Further, we achieved record high utilization of our OBN crews, and the business continues its strong performance among a production-oriented client base. Although the utilization of the 3D streamer fleet has been lower than expected so far this year, we are on a positive trend based on ongoing negotiations and tenders.  Finally, I’m pleased to see that our solid balance sheet and sound financial policy has prompted substantial upgrades to the credit ratings by both Moody’s and S&P which puts us in good position to refinance the debt structure at attractive terms,” says Kristian Johansen, CEO of TGS. 

    Management presentation
    CEO Kristian Johansen and CFO Sven Børre Larsen will present the results at 09:00 a.m. CEST at House of Oslo, Ruseløkkveien 34 in Oslo, Norway. The presentation is open to the public and will be webcasted live.

    Access and registration for webcast attendees are available by copying and pasting the link below into your browser, or use the link on the front page of www.tgs.com: https://channel.royalcast.com/landingpage/hegnarmedia/20241024_5/

    A recorded version of the entire presentation will be available on TGS.com (http://www.tgs.com) after the live event.

    For more information, visit TGS.com (http://www.tgs.com) or contact:

    Bård Stenberg
    Vice President IR & Communication
    Tel: +47 992 45 235
    E-mail: investor@tgs.com

    About TGS
    TGS provides advanced data and intelligence to companies active in the energy sector. With leading-edge technology and solutions spanning the entire energy value chain, TGS offers a comprehensive range of insights to help clients make better decisions. Our broad range of products and advanced data technologies, coupled with a global, extensive and diverse energy data library, make TGS a trusted partner in supporting the exploration and production of energy resources worldwide. For further information, please visit www.tgs.com (https://www.tgs.com/).

    Forward Looking Statement
    All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. These factors include volatile market conditions, investment opportunities in new and existing markets, demand for licensing of data within the energy industry, operational challenges, and reliance on a cyclical industry and principal customers. Actual results may differ materially from those expected or projected in the forward- looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.

    Attachments

    • Q3 2024 Earnings Release
    • Q3 2024 Presentation

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Dassault Systèmes: Third quarter results in-line – Anticipating top line acceleration in 4Q – Confirming full year EPS objective

    Source: GlobeNewswire (MIL-OSI)

    Press Release

    VELIZY-VILLACOUBLAY, France — October 24, 2024

    Dassault Systèmes: Third quarter results in-line

    Anticipating top line acceleration in 4Q

    Confirming full year EPS objective

    Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today reports its IFRS unaudited estimated financial results for the third quarter 2024 and nine months ended September 30, 2024. The Group’s Board of Directors approved these estimated results on October 23, 2024. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.

    Summary Highlights1  

    (unaudited, non-IFRS unless otherwise noted,
    all growth rates in constant currencies)

    • 3Q24: total revenue rose 4% to €1.46 billion driven by subscription revenue up 8%;
    • 3Q24: sequential improvement of MEDIDATA revenue;
    • 3Q24: operating margin of 29.6% and EPS at €0.29, in line with guidance;
    • YTD24: IFRS cash flow from operations up 6% as reported;
    • FY24: confirming diluted EPS objectives of €1.27 – €1.30, while updating total revenue growth from 6 – 8% to 5 – 7% to reflect the continued scrutiny and contraction of the automotive market. Anticipating total revenue growth acceleration at 8% mid-point in 4Q24.

    Dassault Systèmes’ Chief Executive Officer Commentary

    Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

    “As we enter the second half of the year, we have seen several end-markets gaining momentum. In Life Sciences, MEDIDATA is back to sequential growth improvement. At the same time, we had excellent performance in Consumer industries driven by CENTRIC PLM. SOLIDWORKS accelerated growth in revenue and seats. Importantly, Aerospace & Defense was resilient and delivered a solid performance this quarter.

    However, since late summer, automotive customers in Europe and the US have been impacted by a contraction in volumes. This accelerates the need for transformative decisions, while elongating decision-making in the short term. Momentum in Asia, and China in particular, remains strong.

    We are well-positioned to continue gaining market share in the industrial sector. We are confident that our data-centric platform will serve as a catalyst for transformation. In the age of AI, virtualizing industrial processes from design to manufacturing will be a prerequisite for OEMs and suppliers to compete successfully in this next decade.”  

      

    Dassault Systèmes’ Chief Financial Officer Commentary

    (revenue, operating margin and diluted EPS growth rates in constant currencies,
    data on a non-IFRS basis)

    Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

    “In the third quarter, our total revenue grew by 4%, while the operating margin remained resilient at 29.6% and EPS stood at €0.29, highlighting the operating efficiency of the company.

    For the full year, we are reconfirming our EPS target range of €1.27 – €1.30 while remaining disciplined to offset the effects of ongoing deal delays and contraction in automotive volumes. Accordingly, we are adjusting our total revenue growth expectations from 6 – 8% to 5 – 7%.

    This updated guidance reflects expected growth acceleration in the fourth quarter, driven by continued improvements at MEDIDATA and a robust 3DEXPERIENCE pipeline.”

    Financial Summary

    In millions of Euros,
    except per share data and percentages    		   IFRS   IFRS
      Q3 2024 Q3 2023 Change Change in constant currencies   YTD 2024 YTD 2023 Change Change in constant currencies
    Total Revenue   1,463.9 1,424.7 3% 4%   4,459.3 4,308.0 4% 4%
    Software Revenue   1,312.4 1,286.7 2% 3%   4,011.8 3,883.9 3% 4%
    Operating Margin   18.9% 21.2% (2.4)pts     19.6% 20.0% (0.3)pt  
    Diluted EPS   0.18 0.18 0%     0.61 0.54 12%  
    In millions of Euros,
    except per share data and percentages    		   Non-IFRS   Non-IFRS
      Q3 2024 Q3 2023 Change Change in constant currencies   YTD 2024 YTD 2023 Change Change in constant currencies
    Total Revenue   1,463.9 1,424.7 3% 4%   4,459.3 4,308.0 4% 4%
    Software Revenue   1,312.4 1,286.7 2% 3%   4,011.8 3,883.9 3% 4%
    Operating Margin   29.6% 31.0% (1.5)pt     30.2% 31.0% (0.8)pt  
    Diluted EPS   0.29 0.28 3% 4%   0.89 0.84 6% 8%

    Third Quarter 2024 Versus 2023 Financial Comparisons

    (unaudited, IFRS and non-IFRS unless otherwise noted,
    all revenue growth rates in constant currencies)

    • Total Revenue: Total revenue in the third quarter grew by 4% to €1.46 billion, and software revenue increased by 3% to €1.31 billion, both at the low end of the Company’s objectives. Subscription & support revenue rose 5%; recurring revenue represented 83% of software revenue, up 2 percentage points compared to last year. Licenses and other software revenue declined by 7% to €229 million. Services revenue increased by 10% to €151 million, during the quarter.
    • Software Revenue by Geography: Revenue in the Americas increased by 6% to represent 41% of software revenue, led by Home & Lifestyle from an Industry standpoint. Europe (36% of software revenue) declined by 4%, largely impacted by a strong comparison basis after a large transformation deal signed in the third quarter of 2023. In Asia, revenue increased by 9% with continued momentum across countries led by improvement in China, up double digits. Asia represented 23% of software revenue at the end of the third quarter.
    • Software Revenue by Product Line:
      • Industrial Innovation software revenue declined by 1% to €685 million, against a high comparison basis. The strong baseline effect combined with a weaker automotive market in Europe and the US weighed on the performance. Industrial Innovation software represented 52% of software revenue, during the period.
      • Life Sciences software revenue was flat, at €280 million, accounting for 21% of software revenue. Sequential growth improvement confirms MEDIDATA progressive recovery.
      • Mainstream Innovation software revenue increased by 15% to €348 million and represented 26% of software revenue. SOLIDWORKS had a good start in the second half of 2024, up mid-single digits in the quarter. CENTRIC PLM delivered another excellent quarter, due to competitive displacements and strong renewals.
    • Software Revenue by Industry: Home & Lifestyle, High-Tech, Aerospace & Defense and Marine & Offshore were among the best performers during the quarter.
    • Key Strategic Drivers: 3DEXPERIENCE software revenue was impacted by a tough comparison base due to the anniversary of a mega deal. Hence, we saw a temporary decline of 10%. However, the performance on a year-to-date basis was in line with objectives and, looking at the subscription growth, the trend was very strong at 41%. 3DEXPERIENCE software revenue represented 37% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 25% of software revenue during the period. Excluding MEDIDATA, Cloud software revenue increased by a strong 38%.
    • Operating Income and Margin: IFRS operating income declined by 9% at €276 million, as reported. Non-IFRS operating income declined by 1% in constant currencies at €433 million (2% as reported). The IFRS operating margin stood at 18.9% compared to 21.2% in the third quarter of 2023. The non-IFRS operating margin totaled 29.6% versus 31.0% during the same period last year.
    • Earnings per Share: IFRS diluted EPS was €0.18, flat as reported. Non-IFRS diluted EPS grew to €0.29, up 3% as reported, or 4% in constant currencies.

    Nine months ended 2024 Versus 2023 Financial Comparisons

    (unaudited, IFRS and non-IFRS unless otherwise noted,
    all revenue growth rates in constant currencies)

    • Total Revenue: Total revenue grew by 4% to €4.46 billion. Software revenue increased by 4% to €4.01 billion. Subscription and support revenue rose 5% to €3.29 billion; recurring revenue represented 82% of total software revenue. Licenses and other software revenue declined by 1% to €720 million. Services revenue rose 6% to €448 million.
    • Software Revenue by Geography: The Americas grew 3% and represented 40% of software revenue. Europe rose by 2% and represented 37% of software revenue. Asia increased by 9%, representing 23% of software revenue.
    • Software Revenue by Product Line:
      • Industrial Innovation software revenue rose by 4% to €2.12 billion and represented 53% of software revenue. ENOVIA, SIMULIA and DELMIA exhibited the strongest performance.
      • Life Sciences software revenue decreased by 2% to €847 million, representing 21% of software revenue.
      • Mainstream Innovation software revenue increased by 11% to €1.05 billion. Mainstream Innovation represented 26% of software revenue. SOLIDWORKS delivered mid-single digit growth while CENTRIC PLM continued to perform well with strong, double-digit growth.
    • Software Revenue by Industry: Home & Lifestyle, Aerospace and Defense, High-Tech and Consumer Packaged Good & Retail displayed some of the strongest performance.
    • Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 10%, representing 37% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 25% of software revenue. Excluding MEDIDATA, Cloud software revenue increased by more than 50% versus the same period last year.
    • Operating Income and Margin: IFRS operating income increased by 2%, to €876 million, as reported. Non-IFRS operating income increased by 1% as reported (2% in constant currencies) to €1.35 billion. IFRS operating margin totaled 19.6% compared to 20.0% for the same period in 2023. The non-IFRS operating margin was preserved, standing at 30.2% in the first nine months of 2024 compared to 31.0% in the same period last year, thanks to cost containment measures.
    • Earnings per Share: IFRS diluted EPS was €0.61 increasing 12% as reported. Non-IFRS diluted EPS grew by 6% to €0.89, as reported, up 8% in constant currencies.
    • Cash Flow from Operations (IFRS): Cash flow from operations totaled €1.35 billion, up 6% year over year, thanks to the increase in net income adjusted for non-cash items and positive cash tax effects in 2024.
    • Balance Sheet (IFRS): Dassault Systèmes’ net financial position totaled €1.07 billion as of September 30, 2024, an increase of €0.49 billion, compared to €0.58 billion for the year ending December 31, 2023. Cash and cash equivalents totaled €3.66 billion as of September 30, 2024. The movements of the quarter on cash and cash equivalents include the reimbursement for €700 million of the second Tranche of the Bond issued by the company in 2019.

    Financial Objectives for 2024

    Dassault Systèmes’ fourth quarter and 2024 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2024 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:

               
          Q4 2024 FY 2024  
      Total Revenue (billion) €1.696 – €1.816 €6.155 – €6.275  
      Growth 3 – 10% 3 – 5%  
      Growth ex FX 5 – 12% 5 – 7%  
               
      Software revenue growth * 5 – 13% 5 – 7%  
        Of which licenses and other software revenue growth * 0 – 20% (1) – 6%  
        Of which recurring revenue growth * 7 – 11% 6 – 7%  
     

    Services revenue growth *

    0 – 5%

    		 4 – 6%  
               
      Operating Margin 35.9% – 36.9% 31.8% – 32.2%  
               
      EPS Diluted €0.38 – €0.41 €1.27 – €1.30  
      Growth 4 – 12% 5 – 8%  
      Growth ex FX 5 – 13% 7 – 10%  
               
      US dollar $1.10 per Euro $1.09 per Euro  
      Japanese yen (before hedging) JPY 155.0 per Euro JPY 162.0 per Euro  
      * Growth in Constant Currencies      

    These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

    The 2024 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2024 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €232 million (these estimates do not include any new stock option or share grants issued after September 30, 2024); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €360 million, largely impacted by the acquisition of MEDIDATA; and lease incentives of acquired companies at approximately €2 million.

    The above objectives also do not include any impact from other operating income and expenses, a net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after September 30, 2024.

    Corporate Announcements

    Today’s Webcast and Conference Call Information

    Today, Thursday, October 24, 2024, Dassault Systèmes will host, from London, a webcasted presentation at 9:00 AM London Time / 10:00 AM Paris time, and will then host a conference call at 8:30 AM New York time / 1:30 PM London time / 2:30 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

    Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

    Investor Relations Events

    • Fourth Quarter 2024 Earnings Release: February 4, 2025
    • First Quarter 2025 Earnings Release: April 24, 2025
    • Second Quarter 2025 Earnings Release: July 24, 2025

    Forward-looking Information

    Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group’s non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.

    The Group’s actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2023 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 18, 2024, available on the Group’s website www.3ds.com.

    In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 1.9.1.1 of the 2023 Universal Registration Document set out below for ease of reference:

    “In light of the uncertainties regarding economic, business, social, health and geopolitical conditions at the global level, Dassault Systèmes’ revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:

    • the deployment of Dassault Systèmes’ solutions may represent a large portion of a customer’s investments in software technology. Decisions to make such an investment are impacted by the economic environment in which the customers operate. Uncertain global geopolitical, economic and health conditions and the lack of visibility or the lack of financial resources may cause some customers, e.g. within the automotive, aerospace, energy or natural resources industries, to reduce, postpone or terminate their investments, or to reduce or not renew ongoing paid maintenance for their installed base, which impact larger customers’ revenue with their respective sub-contractors;
    • the political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and impact Dassault Systèmes’ business, for example, due to stricter export compliance rules or the introduction of new customs tariffs;
    • continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
    • uncertainties regarding the extent and duration of inflation could adversely affect the financial position of Dassault Systèmes; and
    • the sales cycle of Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.

    The occurrence of crises – health and political in particular – could have consequences both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply capabilities of Dassault Systèmes’ existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or cease operations. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively impact Dassault Systèmes’ revenue, financial performance and market position.

    Dassault Systèmes makes every effort to take into consideration this uncertain macroeconomic outlook. Dassault Systèmes’ business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes’ products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results.

    In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the fourth quarter 2024. The Group has assumed an average US dollar to euro exchange rate of US$1.09 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY162.0 to €1.00, before hedging for the full year 2024. However, currency values fluctuate, and the Group’s results may be significantly affected by changes in exchange rates.   

    Non-IFRS Financial Information

    Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2023 Universal Registration Document filed with the AMF on March 18, 2024.

    In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

    FOR MORE INFORMATION

    Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

    ABOUT DASSAULT SYSTÈMES

    Dassault Systèmes is a catalyst for human progress. We provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 350,000 customers of all sizes, in all industries, in more than 150 countries. For more information, visit www.3ds.com

    Dassault Systèmes Investor Relations Team                        FTI Consulting

    Beatrix Martinez: +33 1 61 62 40 73                                Arnaud de Cheffontaines: +33 1 47 03 69 48

                                                                    Jamie Ricketts : +44 20 3727 1600

    investors@3ds.com

    Dassault Systèmes Press Contacts

    Corporate / France        Arnaud MALHERBE        

    arnaud.malherbe@3ds.com        

    +33 (0)1 61 62 87 73

    © Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

    APPENDIX TABLE OF CONTENTS

    Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.    

    Glossary of Definitions

    Non-IFRS Financial Information

    Acquisitions and Foreign Exchange Impact

    Condensed consolidated statements of income

    Condensed consolidated balance sheet

    Condensed consolidated cash flow statement

    IFRS – non-IFRS reconciliation

    DASSAULT SYSTÈMES – Glossary of Definitions

    Information in Constant Currencies

    Dassault Systèmes has followed a long-standing policy of measuring its revenue performance and setting its revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in its total revenue and software revenue by activity, industry, geography and product lines. The Group believes it is helpful to evaluate its growth exclusive of currency impacts, particularly to help understand revenue trends in its business. Therefore, the Group provides percentage increases or decreases in its revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

    While constant currency calculations are not considered to be an IFRS measure, the Group believes these measures are critical to understanding its global revenue results and to compare with many of its competitors who report their financial results in U.S. dollars. Therefore, Dassault Systèmes includes this calculation for comparing IFRS revenue figures as well non-IFRS revenue figures for comparable periods. All information at constant exchange rates is expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

    Information on Growth excluding acquisitions (“organic growth”)

    In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

    Information on Industrial Sectors

    The Group provides broad end-to-end software solutions and services: its platform-based virtual twin experiences combine modeling, simulation, data science and collaborative innovation to support companies in the three sectors it serves, namely Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities.

    These three sectors comprise twelve industries:

    • Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods – Retail. In Manufacturing Industries, Dassault Systèmes helps customers virtualize their operations, improve data sharing and collaboration across their organization, reduce costs and time-to-market, and become more sustainable;
    • Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, med practices, and Medtech;
    • Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Business Services; Cities & Public Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making its industries more efficient and sustainable, and creating desirable living environments.

    Information on Product Lines

    The Group’s product lines financial reporting include the following financial information:

    • Industrial Innovation software revenue, which includes CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
    • Life Sciences software revenue, which includes MEDIDATA and BIOVIA brands;
    • Mainstream Innovation software revenue which includes its CENTRIC PLM and 3DVIA brands, as well as its 3DEXPERIENCE WORKS family which includes the SOLIDWORKS brand.

    Starting from 2022, 3DS OUTSCALE became a brand of Dassault Systèmes. As the first sovereign and sustainable operator on the cloud, 3DS OUTSCALE enables governments and corporations from all sectors to achieve digital autonomy through a Cloud experience and with a world-class cyber governance.

    GEO’s

    Eleven GEOs are responsible for driving development of the Company’s business and implementing its customer‑centric engagement model. Teams leverage strong networks of local customers, users, partners, and influencers.

    These GEOs are structured into three groups:

    • the “Americas” group, made of two GEO’s;
    • the “Europe” group, comprising Europe, Middle East and Africa (EMEA) and made of four GEO’s;
    • the “Asia” group, comprising Asia and Oceania and made of five GEO’s.  

    3DEXPERIENCE Software Contribution

    To measure the relative share of 3DEXPERIENCE software in its revenues, Dassault Systèmes uses the following ratio: for software revenue, the Group calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS, MEDIDATA, CENTRIC PLM and other acquisitions (defined as “3DEXPERIENCE Eligible software revenue”).

    Cloud revenue

    Cloud revenues correspond to revenue generated through a catalog of cloud-based solutions, infrastructure as a service, cloud solution development and cloud managed services. They are delivered by Dassault Systèmes via a cloud infrastructure hosted by Dassault Systèmes, or by third party providers of cloud computing infrastructure services. These offerings are available through different deployment methods: Dedicated cloud, Sovereign cloud and International cloud. Cloud solutions are generally offered through subscriptions models or perpetual licenses with support and hosting services.

    DASSAULT SYSTÈMES

    NON-IFRS FINANCIAL INFORMATION

    (unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

    Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

    Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

    In millions of Euros, except per share data, percentages, headcount and exchange rates Non-IFRS reported
    Three months ended Nine months ended
    September 30,

    2024

    		 September 30,

    2023

    		 Change Change in constant currencies September 30,

    2024

    		 September 30,

    2023

    		 Change Change in constant currencies
    Total Revenue € 1,463.9 € 1,424.7 3% 4% € 4,459.3 € 4,308.0 4% 4%
                     
    Revenue breakdown by activity                
    Software revenue 1,312.4 1,286.7 2% 3% 4,011.8 3,883.9 3% 4%
    Of which licenses and other software revenue 229.5 246.0 (7)% (7)% 719.8 735.8 (2)% (1)%
    Of which subscription and support revenue 1,082.9 1,040.8 4% 5% 3,292.0 3,148.1 5% 5%
    Services revenue 151.5 138.0 10% 10% 447.6 424.1 6% 6%
                     
    Software revenue breakdown by product line                
    Industrial Innovation 684.6 698.8 (2)% (1)% 2,117.9 2,070.7 2% 4%
    Life Sciences 280.1 283.6 (1)% (0)% 846.6 863.8 (2)% (2)%
    Mainstream Innovation 347.7 304.2 14% 15% 1,047.4 949.5 10% 11%
                     
    Software Revenue breakdown by geography                
    Americas 540.6 513.6 5% 6% 1,619.7 1,575.2 3% 3%
    Europe 470.3 490.5 (4)% (4)% 1,465.4 1,426.3 3% 2%
    Asia 301.5 282.7 7% 9% 926.6 882.4 5% 9%
                     
    Operating income € 432.6 € 442.0 (2)%   € 1,347.0 € 1,335.7 1%  
    Operating margin 29.6% 31.0%     30.2% 31.0%    
                     
    Net income attributable to shareholders € 380.1 € 371.3 2%   € 1,174.4 € 1,110.7 6%  
    Diluted earnings per share € 0.29 € 0.28 3% 4% € 0.89 € 0.84 6% 8%
                     
    Closing headcount 25,996 25,377 2%   25,996 25,377 2%  
                     
    Average Rate USD per Euro 1.10 1.09 1%   1.09 1.08 0%  
    Average Rate JPY per Euro 163.95 157.25 4%   164.29 149.65 10%  

    DASSAULT SYSTÈMES

    ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

    (unaudited; in millions of Euros)

    In millions of Euros Non-IFRS reported o/w growth at constant rate and scope o/w change of scope impact at current year rate o/w FX impact on previous year figures
    September 30,

    2024

    		 September 30,

    2023

    		 Change
    Revenue QTD 1,463.9 1,424.7 39.2 49.8 1.3 (11.8)
    Revenue YTD 4,459.3 4,308.0 151.3 190.2 1.6 (40.4)

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (unaudited; in millions of Euros, except per share data and percentages)

    In millions of Euros, except per share data and percentages IFRS reported
    Three months ended Nine months ended
    September 30, September 30, September 30, September 30,
    2024 2023 2024 2023
    Licenses and other software revenue 229.5 246.0 719.8 735.8
    Subscription and Support revenue 1,082.9 1,040.8 3,292.0 3,148.1
    Software revenue 1,312.4 1,286.7 4,011.8 3,883.9
    Services revenue 151.5 138.0 447.6 424.1
    Total Revenue € 1,463.9 € 1,424.7 € 4,459.3 € 4,308.0
    Cost of software revenue (1) (127.6) (105.2) (364.4) (329.0)
    Cost of services revenue (125.3) (133.1) (385.0) (386.1)
    Research and development expenses (321.0) (299.2) (958.5) (910.8)
    Marketing and sales expenses (403.7) (381.0) (1,247.7) (1,195.2)
    General and administrative expenses (117.5) (103.2) (334.1) (325.9)
    Amortization of acquired intangible assets and of tangible assets revaluation (88.5) (93.4) (274.1) (284.0)
    Other operating income and expense, net (4.2) (7.1) (19.2) (16.7)
    Total Operating Expenses (1,187.7) (1,122.2) (3,583.1) (3,447.7)
    Operating Income € 276.2 € 302.5 € 876.2 € 860.3
    Financial income (loss), net 32.1 (4.3) 95.5 31.1
    Income before income taxes € 308.2 € 298.2 € 971.7 € 891.5
    Income tax expense (68.5) (54.9) (184.4) (171.5)
    Net Income € 239.8 € 243.3 € 787.2 € 719.9
    Non-controlling interest (0.0) 0.1 0.9 1.0
    Net Income attributable to equity holders of the parent € 239.7 € 243.5 € 788.2 € 720.9
    Basic earnings per share 0.18 0.18 0.60 0.55
    Diluted earnings per share € 0.18 € 0.18 € 0.61 € 0.54
    Basic weighted average shares outstanding (in millions) 1,313.3 1,316.1 1,313.4 1,315.2
    Diluted weighted average shares outstanding (in millions) 1,323.1 1,326.1 1,327.0 1,326.8

    (1) Excluding amortization of acquired intangible assets and of tangible assets revaluation.

    IFRS reported

     

    		 Three months ended September 30, 2024 Nine months ended September 30, 2024
    Change (2) Change in constant currencies Change (2) Change in constant currencies
    Total Revenue 3% 4% 4% 4%
    Revenue by activity        
    Software revenue 2% 3% 3% 4%
    Services revenue 10% 10% 6% 6%
    Software Revenue by product line        
    Industrial Innovation (2)% (1)% 2% 4%
    Life Sciences (1)% (0)% (2)% (2)%
    Mainstream Innovation 14% 15% 10% 11%
    Software Revenue by geography        
    Americas 5% 6% 3% 3%
    Europe (4)% (4)% 3% 2%
    Asia 7% 9% 5% 9%

    (2) Variation compared to the same period in the prior year.

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED BALANCE SHEET

    (unaudited; in millions of Euros)

    In millions of Euros IFRS reported
    September 30, December 31,
    2024 2023
    ASSETS    
    Cash and cash equivalents 3,657.7 3,568.3
    Trade accounts receivable, net 1,359.8 1,707.9
    Contract assets 45.1 26.8
    Other current assets 495.1 477.1
    Total current assets 5,557.7 5,780.1
    Property and equipment, net 946.2 882.8
    Goodwill and Intangible assets, net 7,301.4 7,647.0
    Other non-current assets 253.2 312.5
    Total non-current assets 8,500.7 8,842.3
    Total Assets € 14,058.4 € 14,622.5
    LIABILITIES    
    Trade accounts payable 181.2 230.5
    Contract liabilities 1,376.7 1,479.3
    Borrowings, current 548.8 950.1
    Other current liabilities 768.6 901.0
    Total current liabilities 2,875.4 3,561.0
    Borrowings, non-current 2,042.8 2,040.6
    Other non-current liabilities 1,137.7 1,174.8
    Total non-current liabilities 3,180.5 3,215.4
    Non-controlling interests 13.8 11.9
    Parent shareholders’ equity 7,988.7 7,834.1
    Total Liabilities € 14,058.4 € 14,622.5

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED CASH FLOW STATEMENT

    (unaudited; in millions of Euros)

    In millions of Euros IFRS reported
    Three months ended Nine months ended
    September 30, September 30, Change September 30, September 30, Change
    2024 2023 2024 2023
    Net income attributable to equity holders of the parent 239.7 243.5 (3.7) 788.2 720.9 67.3
    Non-controlling interest 0.0 (0.1) 0.1 (0.9) (1.0) 0.0
    Net income 239.8 243.3 (3.6) 787.2 719.9 67.3
    Depreciation of property and equipment 49.4 47.3 2.1 142.1 138.4 3.7
    Amortization of intangible assets 90.3 95.2 (5.0) 279.7 290.3 (10.6)
    Adjustments for other non-cash items 39.3 65.4 (26.1) 113.6 123.5 (10.0)
    Changes in working capital (201.1) (205.3) 4.2 25.2 (0.4) 25.6
    Net Cash From Operating Activities € 217.6 € 246.0 € (28.4) € 1,347.8 € 1,271.7 € 76.0
                 
    Additions to property, equipment and intangibles assets (36.5) (35.1) (1.4) (144.3) (102.8) (41.5)
    Payment for acquisition of businesses, net of cash acquired (2.6) (14.8) 12.2 (18.3) (15.6) (2.6)
    Other 0.7 4.5 (3.8) 23.9 (0.4) 24.2
    Net Cash Provided by (Used in) Investing Activities € (38.3) € (45.3) €7.0 € (138.7) € (118.8) € (19.9)
                 
    Proceeds from exercise of stock options 8.8 11.6 (2.7) 44.0 38.5 5.5
    Cash dividends paid – (0.0) 0.0 (302.7) (276.3) (26.4)
    Repurchase and sale of treasury stock (65.8) (218.6) 152.8 (373.5) (386.0) 12.5
    Capital increase (0.0) 0.0 (0.0) – 146.1 (146.1)
    Acquisition of non-controlling interests (0.7) 0.0 (0.7) (3.3) (0.8) (2.5)
    Proceeds from borrowings 300.0 (0.3) 300.3 300.0 20.3 279.7
    Repayment of borrowings (700.5) (0.9) (699.6) (700.7) (28.2) (672.5)
    Repayment of lease liabilities (18.7) (21.1) 2.4 (61.0) (63.0) 2.1
    Net Cash Provided by (Used in) Financing Activities € (476.9) € (229.4) € (247.5) € (1,097.1) € (549.4) €( 547.7)
                 
    Effect of exchange rate changes on cash and cash equivalents (76.2) 51.7 (127.9) (22.6) (4.4) (18.2)
                 
    Increase (decrease) in cash and cash equivalents € (373.8) €22.7 € (396.5) € 89.4 € 599.2 € (509.8)
                 
    Cash and cash equivalents at beginning of period € 4,031.5 € 3,345.4   € 3,568.3 € 2,769.0  
    Cash and cash equivalents at end of period € 3,657.7 € 3,368.1   € 3,657.7 € 3,368.1  

    DASSAULT SYSTÈMES
    SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
    IFRS – NON-IFRS RECONCILIATION
    (unaudited; in millions of Euros, except per share data and percentages)

    Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

    In millions of Euros, except per share data and percentages Three months ended September 30, Change
    2024 Adjustment(1) 2024 2023 Adjustment(1) 2023 IFRS Non-IFRS(2)
    IFRS Non-IFRS IFRS Non-IFRS
    Total Revenue € 1,463.9 – € 1,463.9 € 1,424.7 – € 1,424.7 3% 3%
    Revenue breakdown by activity                
    Software revenue 1,312.4 – 1,312.4 1,286.7 – 1,286.7 2% 2%
    Licenses and other software revenue 229.5 – 229.5 246.0 – 246.0 (7)% (7)%
    Subscription and Support revenue 1,082.9 – 1,082.9 1,040.8 – 1,040.8 4% 4%
    Recurring portion of Software revenue 83%   83% 81%   81%    
    Services revenue 151.5 – 151.5 138.0 – 138.0 10% 10%
    Software Revenue breakdown by product line                
    Industrial Innovation 684.6 – 684.6 698.8 – 698.8 (2)% (2)%
    Life Sciences 280.1 – 280.1 283.6 – 283.6 (1)% (1)%
    Mainstream Innovation 347.7 – 347.7 304.2 – 304.2 14% 14%
    Software Revenue breakdown by geography                
    Americas 540.6 – 540.6 513.6 – 513.6 5% 5%
    Europe 470.3 – 470.3 490.5 – 490.5 (4)% (4)%
    Asia 301.5 – 301.5 282.7 – 282.7 7% 7%
    Total Operating Expenses € (1,187.7) € 156.5 € (1,031.2) € (1,122.2) € 139.5 € (982.7) 6% 5%
    Share-based compensation expense and related social charges (63.4) 63.4 – (38.4) 38.4 –    
    Amortization of acquired intangible assets and of tangible assets revaluation (88.5) 88.5 – (93.4) 93.4 –    
    Lease incentives of acquired companies (0.4) 0.4 – (0.7) 0.7 –    
    Other operating income and expense, net (4.2) 4.2 – (7.1) 7.1 –    
    Operating Income € 276.2 € 156.5 € 432.6 € 302.5 € 139.5 € 442.0 (9)% (2)%
    Operating Margin 18.9%   29.6% 21.2%   31.0%    
    Financial income (loss), net 32.1 0.6 32.6 (4.3) 26.8 22.5 N/A 45%
    Income tax expense (68.5) (15.8) (84.3) (54.9) (38.1) (93.0) 25% (9)%
    Non-controlling interest (0.0) (0.9) (0.9) 0.1 (0.4) (0.3) (117)% 229%
    Net Income attributable to shareholders € 239.7 € 140.3 € 380.1 € 243.5 € 127.8 € 371.3 (2)% 2%
    Diluted Earnings Per Share (3) € 0.18 € 0.10 € 0.29 € 0.18 € 0.10 € 0.28 0% 3%

    (1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

    In millions of Euros, except percentages Three months ended September 30, Change
    2024

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2024

    Non-IFRS

    		 2023

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2023

    Non-IFRS

    		 IFRS Non-

    IFRS
    Cost of revenue (252.9) 3.3 0.1 (249.5) (238.2) 2.1 0.2 (236.0) 6% 6%
    Research and development expenses (321.0) 20.4 0.2 (300.4) (299.2) 14.9 0.3 (284.1) 7% 6%
    Marketing and sales expenses (403.7) 18.9 0.0 (384.8) (381.0) 11.1 0.1 (369.8) 6% 4%
    General and administrative expenses (117.5) 20.8 0.0 (96.6) (103.2) 10.3 0.0 (92.9) 14% 4%
    Total   € 63.4 € 0.4     € 38.4 € 0.7      

    (2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
    (3) Based on a weighted average 1,323.1 million diluted shares for Q3 2024 and 1,326.1 million diluted shares for Q3 2023, and, for IFRS only, a diluted net income attributable to the sharehorlders of € 243.2 million for Q3 2024 (€ 243.5 million for Q3 2023). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

    DASSAULT SYSTÈMES
    SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
    IFRS – NON-IFRS RECONCILIATION
    (unaudited; in millions of Euros, except per share data and percentages)

    Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

    In millions of Euros, except per share data and percentages Nine months ended September 30, Change
    2024 Adjustment(1) 2024 2023 Adjustment(1) 2023 IFRS Non-IFRS(2)
    IFRS Non-IFRS IFRS Non-IFRS
    Total Revenue € 4,459.3   € 4,459.3 € 4,308.0 – € 4,308.0 4% 4%
    Revenue breakdown by activity                
    Software revenue 4,011.8   4,011.8 3,883.9 – 3,883.9 3% 3%
    Licenses and other software revenue 719.8 – 719.8 735.8 – 735.8 (2)% (2)%
    Subscription and Support revenue 3,292.0   3,292.0 3,148.1 – 3,148.1 5% 5%
    Recurring portion of Software revenue 82%   82% 81%   81%    
    Services revenue 447.6 – 447.6 424.1 – 424.1 6% 6%
    Software Revenue breakdown by product line                
    Industrial Innovation 2,117.9 – 2,117.9 2,070.7 – 2,070.7 2% 2%
    Life Sciences 846.6 – 846.6 863.8 – 863.8 (2)% (2)%
    Mainstream Innovation 1,047.4 – 1,047.4 949.5 – 949.5 10% 10%
    Software Revenue breakdown by geography                
    Americas 1,619.7   1,619.7 1,575.2 – 1,575.2 3% 3%
    Europe 1,465.4 – 1,465.4 1,426.3 – 1,426.3 3% 3%
    Asia 926.6 – 926.6 882.4 – 882.4 5% 5%
    Total Operating Expenses € (3,583.1) € 470.8 € (3,112.4) € (3,447.7) € 475.4 € (2,972.3) 4% 5%
    Share-based compensation expense and related social charges (175.9) 175.9 – (172.6) 172.6 –    
    Amortization of acquired intangible assets and of tangible assets revaluation (274.1) 274.1 – (284.0) 284.0 –    
    Lease incentives of acquired companies (1.5) 1.5 – (2.1) 2.1 –    
    Other operating income and expense, net (19.2) 19.2 – (16.7) 16.7 –    
    Operating Income € 876.2 € 470.8 € 1,347.0 € 860.3 € 475.4 € 1,335.7 2% 1%
    Operating Margin 19.6%   30.2% 20.0%   31.0%    
    Financial income (loss), net 95.5 2.1 97.6 31.1 28.3 59.4 207% 64%
    Income tax expense (184.4) (83.8) (268.2) (171.5) (112.8) (284.3) 8% (6)%
    Non-controlling interest 0.9 (2.8) (1.9) 1.0 (1.2) (0.2) (3)% N/A
    Net Income attributable to shareholders € 788.2 € 386.2 € 1,174.4 € 720.9 € 389.7 € 1,110.7 9% 6%
    Diluted Earnings Per Share (3) € 0.61 € 0.28 € 0.89 € 0.54 € 0.29 € 0.84 12% 6%

    (1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

    In millions of Euros, except percentages Nine months ended September 30, Change
    2024

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2024

    Non-IFRS

    		 2023

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2023

    Non-IFRS

    		 IFRS Non-

    IFRS
    Cost of revenue (749.4) 11.2 0.4 (737.8) (715.1) 12.1 0.6 (702.3) 5% 5%
    Research and development expenses (958.5) 58.7 0.7 (899.1) (910.8) 65.9 0.9 (844.0) 5% 7%
    Marketing and sales expenses (1,247.7) 55.7 0.2 (1,191.8) (1,195.2) 52.7 0.4 (1,142.2) 4% 4%
    General and administrative expenses (334.1) 50.3 0.1 (283.7) (325.9) 42.0 0.1 (283.8) 3% (0)%
    Total   € 175.9 € 1.5     € 172.6 € 2.1      

    (2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
    (3) Based on a weighted average 1,327.0 million diluted shares for YTD 2024 and 1,326.8 million diluted shares for YTD 2023, and, for IFRS only, a diluted net income attributable to the shareholders of € 805.5 million for YTD 2024 (€ 720.9 million for YTD 2023). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

    1 IFRS figures for 3Q24: total revenue at €1.46 billion, operating margin of 18.9% and diluted EPS at €0.18; IFRS figures for YTD24: total revenue at €4.46 billion, operating margin of 19.6% and diluted EPS at €0.61.  

    Attachment

    • Dassault Systemes Third quarter results in-line Anticipating top line acceleration in 4Q Confirming full year EPS objective

    The MIL Network –

    January 25, 2025

  • MIL-OSI: EfTEN Real Estate Fund AS unaudited results for 3rd quarter and nine months of 2024

    Source: GlobeNewswire (MIL-OSI)

    The decrease in euro interest rates is quietly increasing transaction activity on the Baltic real estate market and has a positive effect on the financial results of EfTEN Real Estate Fund AS. Thus, in the third quarter of 2024, the fund’s consolidated interest expense decreased by more than 60 thousand euros compared to the previous quarter. From the transactions perspective, the third quarter was the most active in recent years – the Fund’s subsidiary EfTEN Tähesaju tee OÜ sold the Tähesaju Hortes property, and the fund established two new 100% subsidiaries to acquire the logistics centers Paemurru and Härgmäe respectively in Tallinn and Harjumaa. The acquisition cost of the two new properties will be almost 15 million euros upon their final completion. In the third quarter of this year, the construction work was completed and the ERM elderly care home was also opened next to Tartu.

    A further decline in interest rates is expected. This has already had a positive effect on listed share and bond prices of real estate sector companies on the Scandinavian stock exchange. In the wake of these developments, banks with Nordic owners operating in the Baltics are again looking more positively at financing the real estate sector. According to the fund manager, this creates a good basis for overcoming the decline of the past few years in the Baltic commercial real estate market. However, since local major real estate investors lack capital at the moment and there is no sign of foreign investors entering the local market, the recovery will not be quick. The market still remains a so-called buyer’s market, where it is possible to acquire high-quality property at a good price level. For this reason, the fund announced its intention to launch a new share issue in the fall of 2024, with the aim of raising additional equity of up to a maximum of EUR 30 million. At the extraordinary general meeting held on 16 October 2024, the shareholders granted the supervisory board and management the necessary authorizations to organize the share issue.

    Financial overview

    The consolidated sales revenue of EfTEN Real Estate Fund AS for the third quarter of 2024 was 8.006 million euros (2023 third quarter: 7.965 million euros). The consolidated sales revenue of EfTEN Real Estate Fund AS for the 9 months of 2024 was 23.924 million euros (2023: 23.714 million euros). The Group’s net rental income in the 9 months of 2024 was a total of 22.203 million euros (2023: 22.201 million euros). The group’s net profit in the same period was 10.104 million euros (2023: 6.880 million euros).

    The consolidated net rental income margin was 93% (2023: 94%) in the 9 months of 2024, so costs directly related to property management (including land tax, insurance, maintenance and improvement costs) and distribution costs constituted 7% (2023: 6%) of sales revenue.

    The volume of the Group’s assets as of 30.09.2024 was 377,723 million euros (31.12.2023: 380.944 million euros), of what the fair value of investment properties made up 96% (31.12.2023: 94%). 

    Investment portfolio

    As of the end of September 2024, the Group owns 34 (31 December 2023: 35) commercial investment properties, with a fair value of EUR 358.577 million as of the balance sheet date (31 December 2023: EUR 357.916 million) and an acquisition cost of EUR 356.156 million (31 December 2023: EUR 354.408 million). In addition, in September 2024, the Group entered into purchase agreements for the Härgmäe and Paemurru logistics centers, making advance payments under the agreements totaling EUR 2.173 million. After the balance sheet date, in October 2024, the Group’s subsidiary signed a real rights contract for the Härgmäe property, paying an additional EUR 8.3 million for the investment property on top of the previously made advance payment (a total of EUR 8.8 million).

    In September 2024, the Group sold the Tähesaju Hortese property for EUR 4.675 million.

    In addition to the investment properties held by the subsidiaries of the fund, the Group also holds a 50% stake in the joint venture that owns the Palace Hotel in Tallinn, with a fair value of EUR 8.543 million as of 30 September 2024 (31 December 2023: EUR 9.0 million).

    In the 9 months of 2024, the group earned a total of 23.043 million euros in rental income, which is 1% more than at the same time in 2023. Rental income increased the most in shopping centers. In the office segment, rental income decreased mainly due to the expiration of the lease agreement with the anchor tenant in the Menulio 11 office building in Vilnius.

    As of 30.09.2024, the vacancy of investment properties belonging to the Group was 3.2% (31.12.2023: 2.6%). The largest vacancy is in the office segment (13.1%), where it takes longer than before to fill vacant rental premises.

    Financing

    During the 9 months of 2024, the Fund’s subsidiaries EfTEN Autokeskus OÜ and EfTEN Jurkalne SIA extended their loan agreements. In the next 12 months, the loan agreements of two subsidiaries of the Group will expire, the balance of which as of 30.09.2024 is 8,025 thousand euros in total. The LTV of the expiring loan agreements is 28.3% and 46.5%, and both investment property have a stable rental cash flow, therefore, according to the management of the Group, there are no obstacles to the extension of the loan agreements.

    The weighted average interest rate of the Group’s loan agreements is 5.35% as of 30.09.2024 (31.12.2023: 5.91%) and the LTV (Loan to Value) is 41% (31.12.2023: 42%). All loan agreements of the Fund’s subsidiaries are linked to a floating interest rate.

    After the balance sheet date, in October 2024, the Group entered into two loan agreements related to the purchase of the Härgmäe logistics center, with a total amount of EUR 7.3 million. This includes a loan agreement for EUR 2.8 million with an interest rate of 2.5% + 6-month EURIBOR, maturing on 31 December 2024, and a loan agreement for EUR 4.5 million with an interest rate of 1.8% + 6-month EURIBOR, maturing on 27 September 2029.

    Information on shares

    The net value of the share of EfTEN Real Estate Fund AS as of 30.09.2024 was 20.15 euros (31.12.2023: 20.21 euros). The net value of the share of EfTEN Real Estate Fund AS decreased by 0.3% in the 9 months of 2024. In April 2024, the Fund paid dividends in the total amount of 10.82 million euros. Without profit distribution, the net value of EfTEN Real Estate AS shares would have increased by 4.6% during the nine months of the year.

    As of 30.09.2024, the Fund has 10,819,796 shares.

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

      III quarter 9 months
      2024 2023 2024 2023
    € thousands        
    Revenue 8,006 7,965 23,924 23,714
    Cost of services sold -473 -363 -1,232 -1,120
    Gross profit 7,533 7,602 22,692 22,594
             
    Marketing costs -111 -105 -489 -393
    General and administrative expenses -860 -841 -2,679 -2,568
    Profit / loss from the change in the fair value of investment property -415 0 -1,869 -6,182
    Other operating income and expense -41 10 45 23
    Operating profit 6,106 6,666 17,700 13,474
             
    Profit / loss from joint ventures 83 84 -171 -25
    Interest income 51 77 216 97
    Other finance income and expense -2,171 -2,156 -6,644 -5,693
    Profit before income tax 4,069 4,671 11,101 7,853
             
    Income tax expense -215 -236 -997 -973
    Net profit for the reporting period 3,854 4,435 10,104 6,880
    Total consolidated profit for the reporting period 3,854 4,435 10,104 6,880
    Earnings per share        
    – basic 0.36 0.41 0.93 0.64
    – diluted 0.36 0.41 0.93 0.64

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

      30.09.2024 31.12.2023
    € thousands    
    ASSETS    
    Cash and cash equivalents 10,637 14,712
    Current deposits 2,142 3,400
    Receivables and accrued income 1,603 2,360
    Prepaid expenses 200 106
    Total current assets 14,582 20,578
         
    Non-current receivables 355 214
    Shares in joint ventures 1,907 2,078
    Investment property 360,750 357,916
    Property, plant, and equipment 129 158
    Total non-current assets 363,141 360,366
    TOTAL ASSETS 377,723 380,944
         
    LIABILITIES AND EQUITY    
    Borrowings 13,809 16,907
    Payables and prepayments 3,110 3,417
    Total current liabilities 16,919 20,324
         
    Borrowings 132,094 130,849
    Other non-current liabilities 1,832 1,790
    Deferred income tax liability 8,896 9,283
    Total non-current liabilities 142,822 141,922
    Total liabilities 159,741 162,246
         
    Share capital 108,198 108,198
    Share premium 84,721 84,721
    Statutory reserve capital 2,799 2,749
    Retained earnings 22,264 23,030
    TOTAL EQUITY 217,982 218,698
    TOTAL LIABILITIES AND EQUITY 377,723 380,944

    Marilin Hein
    CFO
    Phone +372 6559 515
    E-mail: marilin.hein@eften.ee

    Attachment

    • EREF_9kuud_vahearuanne_2024eng

    The MIL Network –

    January 25, 2025

  • MIL-OSI Economics: Expanding automotive cyber security innovations with VERZEUSE(TM) series

    Source: Panasonic

    Headline: Expanding automotive cyber security innovations with VERZEUSE(TM) series

    Yokohama, Japan, October 24, 2024 – Panasonic Automotive Systems Co., Ltd. has further expanded its series of VERZEUSE , automotive cyber security innovations, to accommodate the security needs in each phase (design, implementation, evaluation, production, and operation) of the entire vehicle lifecycle, from the development to operation (after vehicle shipment).
    This expansion offers efficiency and high quality standardization for security measures throughout the entire vehicle lifecycle by introducing tools to automate cyber security work which has been often performed manually, and to link input and output information in each phase.VERZEUSE for Virtualization Extensions Type-3, a containerized virtualization security innovation to combat cyber attacks on in-vehicle software, has been evaluated highly by car manufacturers as a unique innovation, and has been newly adopted for in-vehicle deployment.
    This newly announced system in the VERZEUSE series will be exhibited at EdgeTech+ 2024*1 to be held from November 20 to 22, 2024.

    ＜Development background＞

    In recent years, the risk of security threats, including cyber attacks targeting cars, has constantly been on the rise alongside the evolution of software-defined vehicles (SDVs) whose functions are enhanced with software and the increase in the number of vehicles connected to networks, known as connected cars. In January 2021, UN Regulation UN-R155 has come into effect, and it has been applied to new vehicles*2 in Japan and Europe since July 2022. In order to comply with UN-R155, there is an urgent need to establish a cyber security system in accordance with ISO/SAE 21434.
    In this environment, the company foresees future demand for implementation of even more comprehensive security measures in each phase of vehicle lifecycle from development to shipment (design, implementation, evaluation, production, and operation) and streamlining of the enormous amount of work needed for vulnerability countermeasures.

    ＜VERZEUSE series features＞

    1. Provides solutions for each phase of the vehicle lifecycle from development to shipment (design, implementation, evaluation, production, and operation).Supports further streamlining and high quality standardization for security measures by linking input/output information in each phase.

    2. VERZEUSE for TARA(Threat Analysis and Risk Assessment): ISO/SAE 21434 compliant threat analysis innovations contributing to substantial reduction of workload by automating threat analysis in the development and design phase.

    3. VERZEUSE for Virtualization Extensions Type-3: Attack detection and protection solution adapting to container technology for in-vehicle software, adopted by car manufactures.

    ＜VERZEUSE series features in detail＞

    1. Provides solutions for each phase of the vehicle lifecycle from development to shipment (design, implementation, evaluation, production, and operation).Supports further streamlining and high quality standardization for security measures by linking input/output information in each phase.

    The VERZEUSE series provides innovative systems for each phase of the entire vehicle lifecycle (design, implementation, evaluation, production, and operation) from development to shipment. The input and output information of each phase can be linked through the Panasonic Group’s database of Threat Intelligence which collects threat information from various industries such as factory automation, home appliances, and IoT devices.
    For example, the analysis result information output from the design phase (1) VERZEUSE for TARA is referenced as input information in the evaluation phase (4) VERZEUSE for Threat Evaluation and Security Test Assistance toolkit and the post-shipment phase (6) VERZEUSE for SIRT. Likewise, the vulnerability assessment results output from the evaluation phase (4) VERZEUSE for Threat Evaluation and Security Test Assistance toolkit is referenced as input information in the post-shipment phase (5) VERZEUSE for SIRT.
    This linkage between phases not only further streamlines security measures, but also helps to consistently manage security information throughout the entire vehicle lifecycle and to maintain security risk management to a high standard.

    2. VERZEUSE for TARA: ISO/SAE 21434 compliant threat analysis innovations contributing to substantial reduction of workload by automating threat analysis in the development and design phase.

    During the early stages of vehicle development, even developers who are not security experts can simply answer a few questionnaires to determine countermeasure requirements based on the characteristics of in-vehicle devices from Panasonic Automotive Systems’ Threat Intelligence, which collates threats, vulnerabilities, and security controls.
    This innovative system has been applied to more than 80 of the company’s in-vehicle products. For example, compared to the conventional manual process of threat analysis, this system has been proven to reduce workload by up to 90%*3 for large-scale products such as navigation systems. Car manufacturers that have used the system have highly evaluated its usefulness, and we have been commissioned to provide multiple consulting projects for risk assessment. For details, please refer to the press release*4.

    3. VERZEUSE for Virtualization Extensions Type-3: Attack detection and protection solution adapting to container technology for in-vehicle software, adopted by car manufactures.

    This in-vehicle software innovation meets the security requirements*5 of next-generation cockpit systems that utilize a virtualization environment and monitors the communication between the software area which has a high risk of being targeted by attackers via the external network connection (e.g. externally connected virtual machine) and the software area which implements essential functions of the vehicle controls and software update functions (e.g., cluster containers). The monitoring function placed in an isolated container can check communications from the secure area to block abnormal communications, protecting critical functions of the vehicle from attacks and improving vehicle safety.
    It is also possible to import optional monitoring function as a plug-in via the security interface. The plug-in management function enables to select the appropriate monitoring function according to the characteristics of the communication. Since there is no need to change the application side when importing, this in-vehicle software can be introduced at low cost, and car manufacturers have decided to adopt it for in-vehicle deployment.

    Supplementary explanation

    VERZEUSE for Threat Evaluation and Security Test Assistance toolkit: Enabling high-quality, efficient security evaluation by users without security expertise.

    This innovative toolkit allows users to efficiently carry out high-quality threat evaluation and security testing, which previously has been often performed manually during the evaluation phase, even without security expertise.The procedures and standards for conducting various security evaluations, such as fuzz testing*10, vulnerability testing, and penetration testing*11, can be comprehensively defined with this toolkit. The defined procedures and standards can be flexibly customized according to evaluation items required for in-vehicle ECU development. In addition, its automated evaluation tool allows for efficient vulnerability assessment.

    *1 EdgeTech+ 2024 https://www.jasa.or.jp/expo/english/*2 In Japan, it applies only to vehicles supporting OTA (Over The Air: a process of updating and changing the software of devices such as smartphones and cars using wireless communication such as data communication).*3 When the company analyzed its navigation system (220 resources, 1250 threat scenarios, and 3230 countermeasure requirements), it reduced the workload from 30 to 3 person-months*4 October 24, 2024, Development of ISO/SAE 21434 compliant threat analysis innovations: VERZEUSE for TARA. https://news.panasonic.com/global/press/en241024-4*5 ST-CSP-18: Requirements Definitions Document for In-vehicle Security Functions Using Software Isolation Technology Ver.1.01 (JASPAR(Japan Automotive Software Platform and Architecture), 2023).*6 January 16, 2023, Virtualization Security Solution Developing VERZEUSE for Virtualization Extensions: Contributing to the Cybersecurity of Next-generation Cockpit Systems https://news.panasonic.com/global/press/en230116-2*7 December 11, 2023, Cyber Security Robustness Innovations, Developed VERZEUSE for Runtime Integrity Checker, Strengthen In-Vehicle Cyber Security Measures https://news.panasonic.com/global/press/en231211-2*8 March 23, 2021, Panasonic and McAfee agree to jointly start building Vehicle SOC for commercialization of Vehicle Security Monitoring Services https://news.panasonic.com/global/press/en210323-2*9 September 9, 2024, Development of Vulnerability Analysis Innovations, VERZEUSE for SIRT https://news.panasonic.com/global/press/en240909-4*10 Fuzzing test: A software testing technique that injects invalid, unexpected, or random data called fuzz into a target product or system to intentionally cause exceptions and detect potential bugs and vulnerabilities.*11 Penetration test: A testing technique that checks for vulnerabilities of computer system connected to a network with hacking attempts using known technologies. It is also called pentest or intrusion testing.

    About VERZEUSE
    Panasonic Automotive Systems Co., Ltd. markets VERZEUSE (https://automotive.panasonic.com/en/technology/cyber-security)*12 cybersecurity technology and services globally. Engineers at Panasonic Automotive Systems who worked together in the development of security technologies in various Panasonic Group products, including TVs, recorders, mobile phones, smartphones, payment terminals, and semiconductors, have turned their expertise toward developing cyber security technologies since 2014, drawing on their individual strengths to apply these technologies to automotive products. Panasonic Automotive Systems helps to ensure the safety and security of automated driving functions and network services to benefit society with technologies underpinned by a wealth of knowledge and experience.

    *12 VERZEUSE was coined by combining the Spanish word “ver” meaning “look” and the god Zeus. The name is meant to inspire the feeling of a protective god of the sky watching over the safety of society.

    Media Contact:

    Corporate Communications Office, Corporate Planning Center, Panasonic Automotive Systems Co., Ltd.e-mail: press-pas@ml.jp.panasonic.com

    MIL OSI Economics –

    January 25, 2025

  • MIL-OSI Australia: $44 million convention and performing arts centre nearing completion

    Source: Australian Ministers 1

    A world-class Convention and Performing Arts Centre in Busselton, Western Australia is a step closer to becoming a reality, with construction set to be complete in mid-2025. 

    Once completed, the centre, to be named ‘Saltwater’ will be a multi-purpose facility used for a variety of creative, cultural, community and business events. 

    Key features of the venue include a 640-seat tiered theatre that can be transformed into an open space with a 1000-person standing capacity, perfect for large trade shows and conventions. 

    Equipped with high performance light and sound equipment, the venue is also ideal for concerts and other musical performances. 

    Significant progress on construction has been made to the façade and interior spaces including the foyer, the Saltwater Gallery, the auditorium and back of house areas. 

    Window frames have been installed and glazing is almost complete. Ceilings, internal wall frames and doors are being progressively installed.

    The $44.5 million project is jointly funded, with the Australian Government committing $12.2 million, the City of Busselton Council providing over $30.2 million, Lottery West providing $1.8 million and RIO Tinto contributing the remaining $250,000 toward the project. 

    Saltwater has been named after the Wadandi (Saltwater People), the Traditional Owners of the land (Undalup) on which this new venue is located. 

    The project supported 377 jobs during construction and will create another 15.1 ongoing jobs. 

    For more information visit: www.saltwaterbusselton.com.au  

    Quotes attributable to Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

    “Through our funding for the Saltwater precinct, the Australian Government is investing in new community facilities including a multi-purpose hall for large performances, convention centres and business events.

    “This will result in a fantastic new space for world-class entertainment, national conferences and exhibitions, breathing new life into the Busselton’s cultural landscape.”

    Quotes attributable to Senator for Western Australia Louise Pratt:

    “Saltwater will allow an increase in the amount of live music performances and concerts held in the region, which will boost visitation during both the peak and off-peak tourism periods. 

    “It will bring more visitors to Busselton and will be the jewel in the crown of the Busselton Cultural Precinct.” 

    Quotes attributable to Mayor of Busselton Phill Cronin:

    “Saltwater is nearing completion and the countdown to opening has well and truly commenced.

    “Considerable progress has been made and construction is approximately 70 per cent complete.

    “Looking at the construction site from Queen Street, you can see the venue is really starting to take shape now.

    “Window frames have been installed and glazing is almost complete, which contributes to the sense of anticipation that the venue is rapidly moving into the final stage of construction.

    “When I toured the site recently, I could see that significant progress has been made with internal fit out and finishing in key areas including the multi-functional auditorium.

    “You can imagine yourself sitting in the spacious tiered-seat theatre for a show or visualise the area converted to a flat-floor space for a concert.

    “The auditorium will diversify the range of events we can host in Busselton, as it will provide a large enough venue to attract some of Australia’s finest touring theatre productions and concerts to region for the first time in history.

    “Not only has the City secured a diverse range of exciting shows for Saltwater’s first few years of operation, the venue has also been booked for some large national conferences during the off-peak tourism season.

    “On the second floor, you can picture the conference suite set up for a range of different business events and delegates will enjoy beautiful views of the Foreshore Precinct from the alfresco balcony.”

    MIL OSI News –

    January 25, 2025

  • MIL-OSI China: 2024 Silk Road Rediscovery Tour of Beijing launched

    Source: China State Council Information Office 2

    The 2024 Silk Road Rediscovery Tour of Beijing kicked off in the capital city of China on the evening of October 21. The event, themed “Explore a Modernized City of Opportunities”, welcomed prominent international influencers from Albania, Brazil, Ethiopia, Kazakhstan, Malaysia, Russia, Serbia, Tajikistan, Thailand, Türkiye, the United States, and Uzbekistan, to embark on a journey of discovery in Beijing.

    Foreign influencers and other attendees launching the event together
    Since 2016, ten consecutive sessions of the Silk Road Rediscovery Tour of Beijing have been held, participated by a total of 125 international influencers from 51 Belt and Road partner countries so far.

    Mukhammad Obidov, Chief Editor of Uzbekistan National News Agency and Chairman of the Fergana Journalists’ Association, delivered a speech as the representative of all the participating influencers.
    Mukhammad Obidov, Chief Editor of Uzbekistan National News Agency and Chairman of the Fergana Journalists’ Association, spoke of the increasing interest of Uzbek people towards their neighboring countries, especially China, and suggested creating an alliance of Central Asian and Chinese journalists as well as a unified information platform to help deepen understanding among the members of this proposed alliance.

    Kanat Sakhariyanov, Director of Kazakhstan’s Atameken TV, delivered a speech.
    Kanat Sakhariyanov, Director of Kazakhstan’s Atameken TV, said in his speech that Beijing is a city marked by the convergence of ancient history and cutting-edge technologies, and that the residents of Beijing are good at living with each other in harmony through tolerance and mutual respect. Since 2019, Atameken TV has aired more than 20 documentaries about China along with regular news programs such as “On the Silk Road” and “China News”, as part of efforts to strengthen understanding between the two countries.

    Lucas Eleuterio Fernandes, a Brazilian influencer, delivered a speech.
    Lucas Eleuterio Fernandes, a journalist and presenter of TV Globo and a social media influencer from Brazil, is also a popular social media influencer with 2.1 million followers on Instagram. He began his world tour from China in 2010 and returned here 14 years later to find “astounding Chinese development and transformation”. According to Fernandes, “Many people still have misconceptions about this country, but I want to say that China is a place everyone should visit at least once in their lifetime.”
    This year’s Silk Road Rediscovery Tour of Beijing will run from October 21 to 25, and the participating influencers will experience Beijing’s unique urban charm blending ancient heritage and modern achievements from multiple angles and through a number of landmarks, including the three major cultural venues in Beijing Municipal Administrative Center, ZGC E-Town International Robot Industrial Park, GTVerse Center, the Palace Museum, the Olympic Tower, the No. 3 Blast Furnace and the Big Air Shougang in Shougang Park, etc.

    MIL OSI China News –

    January 25, 2025

  • MIL-OSI Australia: Press Conference Apia, Samoa

    Source: Australian Government – Minister of Foreign Affairs

    Penny Wong, Foreign Minister: Look, can I say how wonderful it is to be here in Samoa as it hosts its first ever Commonwealth Heads of Government Meeting, the first time this has been held in a Pacific Island country. And Australia has been really pleased to partner with Samoa, and we are really pleased – I’m really pleased to be here, and I know the Prime Minister is very pleased to be able to join us this evening.

    I want to thank a woman for whom I have such great regard, Prime Minister Fiamē, for her leadership, for her hospitality, for her thoughtful hosting of this meeting and, the way in which she has sought to elevate Pacific priorities and voices on the international stage.

    It’s certainly been a busy day today. It kicked off with a meeting about investment, finance and investment, hosted by David Lammy, the UK Foreign Secretary. And we recognise that economic integration and investment are central to development, are central to alleviating poverty and enabling opportunity. And we’re partnering with the United Kingdom to develop a new Commonwealth Investment Network to support Commonwealth members, particularly smaller states who often have challenges accessing finance, accessing investment, to do just that – to attract and access investment.

    I’ve also been at the first session of the Commonwealth Foreign Affairs Ministers Meeting. Obviously, that’s in preparation for the Leaders’ Meeting tomorrow. Top of the agenda is, as you would expect here in Pacific, climate. And as you would have heard me say from the first day I was – I stood in the Pacific as Foreign Minister, and I’ve consistently recognised this as I have travelled throughout the Pacific, climate change is an existential threat. It is the number one national security threat, it is the number one economic threat to the peoples of the Pacific and to many members of the Commonwealth.

    We heard today from a number of African countries, including Zambia, about the escalating impacts of climate change, the effects on food insecurity. And I’m really pleased that we are able to announce a new Africa-Australia partnership for climate responsive agriculture. This is to be developed by the Australian Centre for International Agriculture Research, and it will address food insecurity in the region.

    Can I talk about what this means? One of the things Australia is good at is agriculture in very dry climates – for obvious reason. It is one of the areas we have an expertise, and this – I’m very excited about this partnership because it leverages a particular Australian expertise into a continent for which food insecurity is an ongoing and rising challenge. It’s another example of our commitment as a government to helping partners around the world in the fight against climate change. It’s about shaping the world for the better.

    I’ve also spoken to Pacific leaders about the ways in which Australia is transitioning our entire economy. It’s a big task, started later than it should have, but we are committed to making the very large change.

    I’ve had productive meetings with counterparts from Malta and Solomon Islands, and I’ve just returned from an event hosted by Samoa attended by Her Majesty the Queen, advocating for women and girls in the Commonwealth where we talked about the challenges facing women and girls, including violence against women, and we spoke about Australia’s progress in tackling cervical cancer.

    I’m looking forward to the rest of the program, and happy to take your questions shortly.

    I just want to make one comment about another matter, which is the deeply troubling news about North Korea’s contribution to Russia’s illegal and immoral war in Ukraine. This is a deeply concerning development to see not only Russia continue its illegal and immoral war but to see a state such as North Korea be invited by President Putin, encouraged by President Putin, to join or to support this illegal war. And Australia stands with the remained of the international community not only against Russia’s war but against North Korea’s involvement in what is an illegal and immoral and disruptive war.

    Happy to take questions.

    Journalist: My name is Deidre from TV1, a local reporter. I just wanted to ask, first question is: what kind of support has Australia provided for Samoa for CHOGM, aside from providing assistance in terms of police officers who have come and helped?

    Foreign Minister: Sure, yes, well, obviously that’s the more – most visible recent assistance, which I have to be really clear about is not just Australia. This is a multi-country initiative. It’s obviously contributions from many Pacific Island countries. When we announced the Pacific Policing Initiative at the Pacific Islands Forum I think the Prime Minister and certainly I’ve made the comment, you know, this is Pacific led. And that’s the approach we’ve seen in Samoa. So, it’s good to see these police cooperating on the ground.

    But the behind-the-scenes assistance or contribution obviously was primarily towards the arrangement of CHOGM and supporting – providing support at a diplomatic level. I can – we can talk to you about that in more detail.

    I want to say, though, to you, your country has done an extraordinary job. For a country of this size to be able to host a conference like this, you really all should be very proud. And I’ve no doubt knowing the Pacific and Samoa, this is a whole-of-nation effort, isn’t it? Like everybody steps up. I was talking to Prime Minister Fiamē, and she spoke about everybody stepping forward. And that’s what you see. And your diplomatic influence, your diplomatic standing, is far bigger than your population in terms of the proportion of the world. I see that at the UN when your Prime Minister speaks and your diplomats speak, and I see that in this conference.

    So, my congratulations to my very good friend Prime Minister Fiamē, but also to the people of Samoa for what has been a fantastic CHOGM, and I hope tomorrow goes as well. I’m sure it will.

    Journalist: Foreign Minister, just on the Falepili Union, Feleti Teo has said this morning that he believes that Australia does have a commitment or at least an implied commitment under the text of the Falepili Union to take a hard look at fossil fuel exports, not just Australia’s own internal commitments. What’s your response? Is there any sort of implied commitment in the Falepili Union towards fossil fuel exports? Do you disagree with that analysis?

    Foreign Minister: I think whether it’s the PIF declarations or the public statements we have made, I think we all understand the existential threat that climate change poses to the peoples of the Pacific. I think we all understand the effects of climate change in Australia which we have seen. We’re not a government like Mr Abbott’s and Mr Morrison’s or that has the views Mr Dutton has demonstrated where the science of climate change isn’t accepted, and the experience of Pacific peoples is diminished. Do you remember him saying – talking about making jokes about water lapping at the door?

    So, we understand the extent of this. I’ve spoken at length to the Prime Minister of Tuvalu about the transition in the Australian economy, and it is a very big transition. And I wish we had – you know, when we came to government, we had seen not just 30 per cent renewables but much more because we have to get to in excess of 80 per cent by the end of the decade. But that’s the transition we’re in and we will engage in it.

    On the broader issue of fossil fuel usage, not just in Australia but globally, of course we all have to, we all have to peak our emissions and reduce them, and Australia’s emissions peaked in 2005. We know that there are countries which are still increasing their supply, their coal-fired power stations. Of course, we all know that the whole world has to respond.

    The point I’ve made previously is that there are two emerging economies in the world which, you know, account for 40 per cent of global emissions – India and China. And in order for us to have a chance at restraining global temperature rise, we all have to commit to reducing emissions and to transitioning to cleaner energy. So, we’re up for that. It will take longer than I would have liked because, you know, obviously nothing was done for 10 years.

    Journalist: But can Australia shrug its shoulders in terms of those exports and simply say there is no problem with Australia expanding fossil fuel projects if there’s an appetite for it? The point that I think that Prime Minister Teo is making is that on the one hand Australia points to its own record, on the other hand, you’ve got countries like India and China continuing to expand fossil fuels. He doesn’t perhaps care who takes responsibility; the cycle has to be brought to a close.

    Foreign Minister: Yeah, I think we all have to take responsibility, which is why you also see Australia partnering with other countries to try and work with others to transition the global energy supply to renewable energy. You would have seen I work with Singapore; you’d see that we’re working with Germany. You know, Chris Bowen has spoken at length about the work that he is doing internationally.

    I wish we were – you know, when I was Climate Minister between 2007 and 2010, including the famous Copenhagen conference, I wish that what we were trying to get agreed then had been agreed and you and I would be having a very different conversation. But that isn’t what happened globally. That isn’t what happened in Australia, and we went backwards as a country. We know we have a lot of work to do. And I’ve been upfront with every partner in the Pacific. Of course, I listen, I hear what they say. And I think they also see in us a partner who wants to make this transition. And we will. We will.

    Journalist: Foreign Minister, in terms of Pacific Engagement Visa, I know our government does not want to participate in the first wave. So, my question is: have you received or has the government of Australia received any update from our government? And if the government did not, is Australia – will Australia be pushing for the Samoan government to support the visa?

    Foreign Minister: Yeah, Mr Dziedzic asked me those “if” questions, and I usually tell him off for doing that. But look, as a matter of principle, the Pacific Engagement Visa responds to a longstanding call from Pacific Island nations about wanting a different relationship with Australia. And you would have seen the fact demonstrated by the number of people who have sought to come to Australia in those countries where we have those arrangements. It’s been massive low oversubscribed and, you know, I understand that.

    I’ve also been very clear from the beginning, just like PALM, this is a question for the sending country. If people want it, we will work with whichever country, whichever Pacific Island nation, to set up the arrangements in ways they feel comfortable with. If countries don’t wish to go down this path, it’s not a compulsory path for us.

    We responded. A number of countries have very enthusiastically taken it up. It’s entirely a matter for others whether they choose to or not and, if they do, how they want it to work.

    Journalist: Just to follow up on that, if our government does not want to support it, is Australia willing to reconsider if individuals want to participate?

    Foreign Minister: No, we want this to be something – it’s a government-to-government arrangement for the process of it and the arrangements associated with it, so we wouldn’t want to see that. But, you know, we’re also – we’re not – there’s no deadline for – in the sense that we’re not saying, ‘unless you – you have to do it by this year or never at all.’ It’s a policy that’s in place. I anticipate that countries may work through some of the issues and then may decide that they want to be part of this in time to come. But that’s entirely a matter for them.

    Journalist: Just finally, if I might, Foreign Minister, on the question of Australia’s broader Pacific policy, can you give us a sense, when the Falepili Union was signed the Prime Minister and others made it clear that Australia was looking at if not signing similar agreements, then perhaps integrating more closely with the Pacific. There have been murmurs, obviously, about similar agreements with countries like Nauru and others. Can you give us a sense of where that program is up to and how Australia envisions this?

    Foreign Minister: That’s a good question. And it’s one that the whole country and both parties of government need to be part of. And unfortunately, we’ve not had an opposition that’s been willing, for example, to understand the importance of the Pacific Engagement Visa.

    Your question goes to the – is the right one though – how do you envisage the relationship? And we envisage the relationship as family, as close as we are able to be, recognising the sovereignty of all nations. And we see the benefit in different types of integration with the countries of the Pacific. Now, they’ll not always be the same. So, we have obviously a particular set of arrangements with some countries which are simply PALM or the Pacific Engagement Visa. With Tuvalu, we have a much deeper integration where there is much more that we have put on the table and that Tuvalu has put on the table as well.

    So obviously it will not be the same approach for each country. Countries will make their own decisions. But we see real benefit in responding to Pacific countries’, I suppose, aspirations for the relationship.

    Journalist: What are your expectations for the conference tomorrow? Regarding the continued fighting of the Pacific Islands towards climate change? What are your expectations of the outcome?

    Foreign Minister: Well, I hope that the leader’s communique or statement will be forward leaning on climate. I hope it will be collective in the sense that we recognise – I’ve seen a lot of things over the years – and it really goes to the question Mr Dziedzic asked earlier where we point the finger at each other but actually all of us have to respond on climate, all major economies, in particular. And I hope also that some of the progress that the Pacific has made in relation to sovereignty in the face of sea level rise, which we have backed in, I hope there is progress on that as well in terms of Leaders’ discussion. I know it’s a big step, but I think the Pacific has done a lot of quite innovative international legal work in ensuring that countries can retain sovereignty and retain their, you know, sovereignty over their EEZ, even in the face of sea level rise and that whatever we can do with the Pacific to continue to broaden that out I think is a good thing. And you would have seen that we’ve done that at the PIF and we’ve done that in the Falepili treaty.

    Journalist: One more question please –

    Foreign Minister: Last one.

    Journalist: What are your thoughts on Samoa’s government’s concerns of brain drain for RSE program and also – last one – have you visited one of the villages that is representing Australia in the rural area?

    Foreign Minister: No, no, I haven’t done – I haven’t been out of Apia, I’m afraid, on this visit. Some of the concerns that countries who are considering whether how to handle labour mobility programs, there are a range of concerns. You named one of them. What I have said at the PIF and privately and in meetings is we want these programs to work for you. So, we don’t offer access to the labour market because we are demanding labour; we see this as a partnership and as an economic development opportunity. So, we want the programs to work for you. So, however countries wish to have those programs designed within the limits of the program, we’ve sought to facilitate that. So, that’s how we do it. Okay? Thanks, everybody.

    MIL OSI News –

    January 25, 2025

  • MIL-OSI: Prospera Energy Inc. Corporate Update: Three Years of Strategic Restructuring, Recovery, and Future Growth

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 24, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“PEI”) (TSX.V: PEI, OTC: GXRFF, FRA: OF6B)

    The 2024 Prospera corporate update outlines the company’s restructuring efforts since 2021, highlighting key milestones achieved, challenges faced, and the strategic path forward to achieve production stability and profitability.

    Preamble:
    By the end of 2020 Prospera faced a litany of financial challenges, including low production, high operating costs, and the global impacts of the Covid pandemic. The company’s liability was in excess of $24MM ($12MM ARO, $11MM AP arrears, & $1.5MM in Credit Facilities) mainly towards secured mezzanine capital, CRA, mineral royalties, municipality property tax, landowners lease payments, numerous local service providers, and high asset retirement obligations. Adding to the problems, Prospera had in excess of 400+ non-compliance infractions with spills, dysfunctional monitoring devices, and facilities that had been neglected and orphaned. Consequently, Prospera Energy Inc. was in a terminal position. In Q1 2021, the municipality and secured debt holder exercised their rights, taking control of payments from the limited revenue and production that remained. The then-CEO and directors were fleeing from the company’s obligations, especially to the CRA.

    Towards the end of 2020, PEI’s continuing operations had become difficult due to high and long-term liabilities, a situation further amplified by the pandemic and drastic reduction in produced volumes (less than 200 bpd Gross).

    At the time, Mr. Samuel David was leading a private company developing medium-light oil around the Brooks area and as a result of his association with the late Burkhart Franz, founder of Prospera Energy Inc. (formerly Georox Resources), Mr. David accepted a role as an advisor to help rescue the company from entering into CCA.

    Prospera Energy Restructure:
    Prospera Energy Inc’s restructuring commenced in Q1, 2021, with the appointment of Mr. David as President, CEO & Director. Mr. David observed legacy heavy (13-17API) oil fields were developed with numerous vertical wells on reduced spacing. These wells were in primary depletion without any patterned pressure support. Produced water was randomly disposed resulting in water recycling. Reserves were estimated on the decline of the small number of low producing wells and their economies were burdened by high surface lease costs and their high number of standing wells. Unprocessed 3-D seismic coverage was available over the entire reservoir of each asset, each of which has a facility processing capacity to handle large volumes of produced fluid, and the wells were tied into these central facilities. Clean oils were trucked out to a nearby terminal. Produced water was reinjected by central pumps at the facility to injectors throughout the field. These infrastructures had previously been neglected and not maintained.

    Mr. David recognized the recovery to date was low with respect to volumetric estimation of oil in place, and a significant amount of oil remains within adequate infrastructure. The recovery has been from an under pressured solution gas drive reservoir with low active edge water and exploited by vertical well technology only. However, high AP arrears, ARO and neglected infrastructure were significant obstacles. Overcoming poor technical conduct and neglect required sufficient capital to exploit the remaining reserves effectively and profitably. To rectify these issues, Samuel devised a development plan in phases to capture the significant remaining reserves.

    The Prospera development plan is comprised of three phases:

    1. Phase one was to bring operations to safe operating conditions and optimize low hanging opportunities to increase production.
    2. Phase two was to transition to horizontal wells and abandon depleted vertical wells along the path. This reduces the environmental footprint and the corresponding fixed operating cost. It would also diversify product mix by adding higher API oil assets.
    3. The third and final phase is to implement improved and enhanced recovery methods tailored to the reservoir conditions, aiming to reduce decline for sustained long-term production. This approach, combined with a reduced footprint and lower operating costs, is designed to yield higher margins.

    At the time, the minimum allowed for a private placement was five cents, while PEI stock was trading at one cent and at risk of being halted. Fortunately, a one-time, two-cents private placement offering opportunity, that was only offered during extraordinary circumstances such as the pandemic, was permitted. Utilizing this opportunity and the proposed engineering solutions, capital was raised with the assistance of Kurt Soost, who played a key role in connecting credible investors such as Peter Lacey, Dave Richardson, and others to the seed capital provided by the management group, which included Mr. David and Jaz Dhaliwal. They participated in the initial and subsequent private placement offerings, helping Prospera secure a financial lifeline.

    This realigned the PEI board, which requested Mr. David amalgamate his private company assets into Prospera at an equal interest, to avoid any perception of bias towards his assets and to ensure focus on Prospera’s asset development going forward. As a result, Prospera acquired a 50% working interest in a medium-light oil property with operatorship from Mr. David on favorable terms, with no upfront cash consideration and delayed consideration on a success basis. These terms were released on December 7th, 2022, and the transaction consideration was based on third-party evaluations, TSX approval, and independent scrutiny and approval resolution by the directors.

    Restructuring Efforts Resulted In:
    Oil in Place Validated – Prospera Oil in place and remaining reserves were authenticated by geological delineation, well control & production performance, 3D seismic confirmation, and by 3rd party evaluation

    • Total OOIP = 396.7 MMbbl
    • Produced = 34.2 MMbbl
    • Recovered = 8.6%

    NPV Appreciation – Net Present value of the reserves was steadily substantiated by PEI’s optimization and development. As a result:

    • Before Tax PDP reserves increased 508% from $4.4MM$ to $27.1MM$ in 2023 at a 10% discount rate
    • Before tax 2P reserves increased by $60.8m from $72.5m to $133.3MM$ in 2023 at a 10% discount rate
    • Total proved and probable reserves increased by 25% from 4,306 to 5,403 Mboe
    • Reserve life index increased by 6% from 28.4 to 30.0 years

    Increased Ownership – In the three core heavy oil properties from an average of 35% to 95% by settling out joint venture receivables.

    Regulator License Liability Rating – Asset to liability ratio was elevated by PEI restructured efforts

    • The Saskatchewan regulator assessed the company’s asset value 18MM$ higher due to the changes implemented
    • The asset to liability ratio has increased from 0.47 to 1.44 in Saskatchewan
    • The asset to liability ratio has increased from 0.90 to 2.60 in Alberta

    Diversify Production Mix – Acquired a 50% interest in Medium-oil development play and successfully perforated two existing wells with favorable results. In 2023, the first well was drilled, with initial production (IP) rates exceeding expectations. This led to attractive investment returns, with a payout achieved in just seven months.

    In 2024, four development wells were drilled, encountering pay, structure, and oil shows as anticipated. The first medium-oil horizontal well encountered 800 meters of porous reservoirs with oil shown in the lateral section. The well test demonstrated strong inflow, producing over 50 m³/d of fluid at 50% oil cuts. The oil quality is 26–30-degrees API. This well is now online and delivering consistent rates as it is stabilizing.

    Financial Position Appreciation – Netbook value (Total assets) has increased from $5.5 million in 2020 to approximately $59.0 million by the end of Q3 2024. This growth was driven by capital raised ($35MM) and cash flow from operations ($7MM), both of which were deployed for optimization and development. Additional value appreciation resulted from an impairment reversal, supported by the substantiation of remaining reserve value ($8 million) and the capitalization of a working interest acquisition ($3 million). Since 2021, the total asset value has been appreciated by $53+ million. 

    Due to capital deployed for optimization, non-compliance elimination, infrastructure upgrades and development aimed at increasing production and recoveries, the company is beginning to see operational profitability. 2022 saw production increased and, if not for the lower commodity prices in 2023, the company would have been profitable in 2022. Nonetheless, 2022 was a rebound year, generating $2.3 million in operating income compared to a substantial loss the previous year. With ongoing production optimization and development, Prospera has achieved approximately $2.6 million in cash operating income as of Q3, 2024.

    The restructuring efforts have transformed the company into cash-flow-positive operation. Prospera’s bare bones break-even operating expenses are $1.1 million per month (500 boe/d @ $75/boe CAD). Any cash flow above this break-even amount is allocated to servicing debt, addressing legacy arrears and further funding, optimization and development initiatives.

    With current production levels around 900 boe/d, the company has generated $2.6 million year to date Q3, 2024.

    Production Appreciation & Challenges – PEI’s restructuring efforts successfully optimized production from 80 boepd to 800 boepd during the phase one execution. By the end of 2023, peak production rates reach 1,800 boepd driven by horizontal development and medium oil development.

    While the restructuring yielded positive results, Prospera production progress and forecast were impacted by operational set-back and by severe cold weather conditions. These issues hindered expected production rates, preventing the company from achieving its short-term production and financial targets.

    PEI has continually implemented measures to address operational constraints, and restore and maintain peak production rates. These include failure analysis, calibrated equipment, revised operational procedures, and accountability for accurate and timely data to maximize run time with experienced personnel. As a result, Cuthbert operations are starting to stabilize while challenges are being addressed. Approximately 70+ m3/d of production is currently behind pipe at Cuthbert, and PEI is focused on capturing this additional volume.

    Revised 2024 Prospera Forecast
    Following a challenging recalibration, Prospera has expressed optimism going forward, however, PEI has faced a series of challenges including cold weather conditions, infrastructure breakdown, water recycling issues, legacy arrears, non-participating JV partners, and lower commodity prices. These factors have unexpectedly delayed the company’s timeline for attaining the initially projected targets.

    The legacy reservoirs are now in the final stages of primary pressure depletion and require additional energy in-situ to increase the mobility of the viscous oil. Enhanced recovery methods suited to the specific reservoir conditions must be applied gradually and methodically to maximize oil recovery, which will take time. PEI has initiated horizontal transformation while testing the recovery methods to be applied to the future horizontal wells while modifying necessary infrastructure adjustments. With the benefit of new information, extensive data, and a revised plan, Prospera has reassessed and incorporated the challenges and setback into the company’s updated forecast moving forward.

    Prospera has achieved many technical and financial successes, these accomplishments have been overshadowed by production shortfalls set out by optimistic early targets. Moving forward, PEI’s primary focus is on efficient operations to ensure sustained, stable production and production growth.  

    Conclusion
    Prospera Energy Inc. has come a long way since the brink of bankruptcy in Q1, 2021. Through a successful restructuring, PEI has eliminated the risk of insolvency, addressed critical regulatory non-compliances, and raised regulator license liability ratings by increasing production through optimization and development. The company has also substantiated the large amount of remaining reserves and substantially increased the proven asset value of the company. By improving cash flow from operations well above break-even, PEI has remained operational while deploying capital to address legacy accounts payable arrears and implement proven technical applications. Additionally, the acquisition of medium-oil assets has reduced dependency on heavy-oil differentials.

    In short, Prospera have made significant progress in positioning the company for future growth. However, PEI achievements have been overshadowed by production short fall set out by optimistic targets by optimization and drilling success. Prospera acknowledges these challenges encountered and has incorporated them into the revised 2024 forecast, to allocate sufficient time and resources to improve operational efficiencies, optimize well run times, and implement reservoir management applications while adhering to safety & regulatory guidelines. These proactive measures are being implemented in Q4 2024 and Q1 2025 to stabilize and support robust, sustained growth throughout Q2 and Q3 of 2025.

    While the company is revising the year-end production target down to 1,250 barrels, it is important to emphasize that the fundamentals of Prospera Energy’s assets remain strong. The significant recovery potential remains within reach, and PEI continues to execute on our long-term development plan to capitalize on these opportunities. The reduction in short-term targets does not diminish the company’s confidence in the strategic path forward. Prospera remains focused on optimizing production, improving efficiency, and unlocking the full value of PEI’s resources. As Prospera moves ahead, the company is committed to increasing production through optimization, horizontal transformation, and enhanced oil recovery.

    About Prospera
    Prospera is a publicly traded energy company based in Western Canada, specializing in the exploration, development, and production of crude oil and natural gas. Prospera is primarily focused on optimizing hydrocarbon recovery from legacy fields through environmentally safe and efficient reservoir development methods and production practices. Prospera was restructured in the first quarter of 2021 to become profitable and in compliance with regulatory, environmental, municipal, landowner, and service stakeholders.

    The company is in the midst of a three-stage restructuring process aimed at prioritizing cost effective operations while appreciating production capacity and reducing liabilities. Prospera has completed the first phase by optimizing low hanging opportunities, attaining free cash flow, while bringing operation to safe operating condition, all while remaining compliant. Currently, Prospera is executing phase II of the restructuring process, the horizontal transformation intended to accelerate growth and capture the significant oil in place (400 million bbls). These horizontal wells allow PEI to reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase III of Prospera’s corporate redevelopment strategy is to optimize recovery through EOR applications. Furthermore, Prospera will pursue its acquisition strategy to diversify its product mix and expand its core area. Its goal is to attain 50% light oil, 40% heavy oil and 10% gas.

    The Corporation continues to apply efforts to minimize its environmental footprint. Also, efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.

    For Further Information:
    Shawn Mehler, PR
    Email: investors@prosperaenergy.com
    Website: www.prosperaenergy.com

    FORWARD-LOOKING STATEMENTS
    This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “anticipate,” “expects” and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

    Although Prospera believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prospera can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

    The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Prospera. As a result, Prospera cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward- looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Prospera does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

    Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

    Photos accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/0b193b58-7798-4139-b69d-1f8aec58a8f7
    https://www.globenewswire.com/NewsRoom/AttachmentNg/46e266dc-9f3f-43b1-a3f7-1f71bb526cce
    https://www.globenewswire.com/NewsRoom/AttachmentNg/2d404ae6-c38e-40c3-910a-403f9376549f
    https://www.globenewswire.com/NewsRoom/AttachmentNg/506b134d-3ce3-4639-9a61-f0caa42b633e
    https://www.globenewswire.com/NewsRoom/AttachmentNg/b0ac6d1d-5ea5-4c86-b5b4-d49a72936f7b
    https://www.globenewswire.com/NewsRoom/AttachmentNg/e14fb81b-462a-456d-99fa-e4a54a549e7d
    https://www.globenewswire.com/NewsRoom/AttachmentNg/100176cb-60ba-45e8-9311-e94604dcd117
    https://www.globenewswire.com/NewsRoom/AttachmentNg/8fc83e60-6686-4b8f-93e8-84598ec586a0
    https://www.globenewswire.com/NewsRoom/AttachmentNg/6c20cd2d-ef07-41b7-9149-5d80f7288b16
    https://www.globenewswire.com/NewsRoom/AttachmentNg/fb37dc99-2c7f-4db1-bcab-a3807af55016

    The MIL Network –

    January 25, 2025

  • MIL-OSI China: 4 dead in terrorist attack at Turkish aerospace company

    Source: China State Council Information Office 3

    Four people were killed and 14 others wounded on Wednesday in a terrorist attack at the production facility of Turkish Aerospace Industries Inc. (TUSAS) in Ankara, Interior Minister Ali Yerlikaya said.

    Three of the injured were in critical condition, the minister told reporters on the site of the attack.

    Yerlikaya noted that two terrorists, a man and a woman, had been “neutralized” by security forces immediately after the attack targeting the key defense complex in the outskirts of Ankara.

    Turkish authorities often use the term “neutralize” in their statements to imply the alleged terrorists have either surrendered, been killed, or been captured.

    “We’re working to identify the terrorists,” he said, adding the information of the terrorists would be revealed once they are identified.

    “I condemn this heinous attack. Our fight will continue with determination until the last terrorist is neutralized,” the minister said.

    According to footage published by the NTV, “several terrorists” came to the central gate of the complex on board a taxi and began shooting at the guards with machine guns.

    Television images showed a damaged gate and a nearby clash in a parking lot.

    The report said that security forces, firefighters, and paramedics were dispatched to the complex located in the Kahramankazan district of the capital, and the wounded have been transported to two different hospitals.

    TUSAS is an important defense and aviation company in Türkiye. It produces KAAN, the country’s first national combat aircraft, among other defense projects.

    The outlawed Kurdistan Workers’ Party (PKK) has claimed responsibility for similar actions in the past.

    The PKK, listed as a terrorist organization by Türkiye, the United States, and the European Union, has rebelled against the Turkish government for more than three decades.

    MIL OSI China News –

    January 25, 2025

  • MIL-OSI China: Hezbollah confirms attack on Israeli military company

    Source: China State Council Information Office 3

    Hezbollah said it attacked on Wednesday night the Israel Military Industries Ltd., also referred to as Ta’a, in the suburbs of Tel Aviv with missiles.

    Hezbollah, in a statement, said the strike “hit its targets accurately.”

    The Israel Defense Forces (IDF) said earlier in the day that four projectiles were launched on Wednesday evening from Lebanon towards central Israel, adding two of them were intercepted and two others fell, with no casualties reported.

    Meanwhile, Israel’s state-owned Kan TV news, citing Palestinian sources, reported that one projectile fell near Qalqilya city in the West Bank, slightly injuring a man and damaging a car.

    Since Sept. 23, the Israeli army has been launching intensive airstrikes on Lebanon in a dangerous escalation with Hezbollah. In early October, Israel also launched a ground operation near the southern Lebanese border, allegedly to further cripple Hezbollah’s capabilities.

    MIL OSI China News –

    January 25, 2025

  • MIL-OSI United Kingdom: British High Commission celebrates King’s birthday, 2024

    Source: United Kingdom – Executive Government & Departments

    The British High Commission will today (23 October) host the King’s Birthday Party, its annual celebration to mark the British Monarch’s birthday.

    British High Commissioner to India, Lindy Cameron with P Kumaran, Secretary of Economic Relations and Development Partnership Administration, Ministry of External Affairs

    The gala event pays tribute to His Majesty King Charles III as the UK’s Head of State.

    In addition to his official and ceremonial duties in the UK and overseas, His Majesty has championed a wide range of causes relating to the environment and sustainable development, the arts, healthcare and education for decades.

    A wide range of dignitaries from the Government of India, representatives from Commonwealth nations, business leaders, and eminent personalities from the fields of diplomacy, arts, education, research, business, and sports are expected to attend. The celebration will also highlight the vibrant business links that exist between our countries.

    The event reflects the modern partnership between the UK and India with a specially designed food menu of British Indian cuisine from Ambassador for the GREAT Britain & Northern Ireland campaign Chef Vineet Bhatia MBE, music by DJ Lush Lata, and interactive displays from some of the UK’s leading businesses operating in India.

    Lindy Cameron, British High Commissioner to India, said:

    His Majesty The King has an enduring interest in promoting a modern partnership with India and its people. It is such a privilege to celebrate His Majesty’s birthday with friends in India who have been so generous to me since I arrived. I can think of no more interesting country to live in, no better time to be here.

    I also extend my heartfelt thanks to everyone joining the celebration in Delhi; it is the people that make the UK-India partnership come to life, and the deep economic connections through companies like HSBC India that make it thrive.”   

    This year’s King’s Birthday Party celebrations in Delhi were made possible by the gracious support of HSBC India, Reliance Industries Ltd, OMA living – A Hero Motors Company, The Body Shop, bp, Airbus, BAE Systems, Shell India, British Airways, UK India Business Council, Aston Martin New Delhi, Truefitt & Hill, Diageo India, William Grant and Sons, Beam Suntory, Colliers Cheese and Fortune Gourmet Specialities, Nimkish Enterprises.

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    • free-to-use high resolution images from the event will be uploaded to Flickr
    • the King’s Birthday Party is celebrated by British Embassies and High Commissions around the world
    • the King’s Birthday falls on 14 November, but his official Birthday in 2024 was marked on 15 June, when The King’s Birthday Parade (also known as Trooping the Colour) was held in London
    • His Majesty has undertaken 10 official visits to India, most recently in November 2019 when he visited New Delhi and Mumbai to celebrate British-India connections with a focus on sustainable markets, climate change and social finance
    • His Majesty King Charles III was born in 1948 and became heir apparent on the accession of Queen Elizabeth II in 1952

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    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

    January 25, 2025

  • MIL-OSI: Southside Bancshares, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    • Third quarter net income of $20.5 million;
    • Third quarter earnings per diluted common share of $0.68;
    • Annualized return on third quarter average assets of 0.98%;
    • Annualized return on third quarter average tangible common equity of 13.69%(1); and
    • Nonperforming assets remain low at 0.09% of total assets. 

    TYLER, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ: SBSI) today reported its financial results for the quarter ended September 30, 2024. Southside reported net income of $20.5 million for the three months ended September 30, 2024, an increase of $2.1 million, or 11.2%, compared to $18.4 million for the same period in 2023. Earnings per diluted common share increased $0.08, or 13.3%, to $0.68 for the three months ended September 30, 2024, from $0.60 for the same period in 2023. The annualized return on average shareholders’ equity for the three months ended September 30, 2024, was 10.13%, compared to 9.50% for the same period in 2023. The annualized return on average assets was 0.98% for the three months ended September 30, 2024, compared to 0.93% for the same period in 2023. 

    “Third quarter financial results were highlighted by a linked quarter $1.86 million increase in net interest income, a linked quarter eight basis point increase in our net interest margin to 2.95%, earnings per share of $0.68, a 13.69% return on average tangible equity(1), and continued strong asset quality,” stated Lee R. Gibson, Chief Executive Officer of Southside. “During the quarter we sold $28 million of lower yielding municipal securities, unwound the related fair value swaps and recorded a loss of $1.9 million. The proceeds were reinvested in higher yielding agency mortgage-backed securities. In addition, we recorded an impairment charge of $868,000 on the sale of approximately $10 million of available for sale (“AFS”) municipal securities and the unwind of the related fair value swaps on October 1.” 

    Operating Results for the Three Months Ended September 30, 2024 

    Net income was $20.5 million for the three months ended September 30, 2024, compared to $18.4 million for the same period in 2023, an increase of $2.1 million, or 11.2%. Earnings per diluted common share were $0.68 and $0.60 for the three months ended September 30, 2024 and 2023, respectively. The increase in net income was a result of the increase in net interest income and the decrease in provision for credit losses, partially offset by the decrease in noninterest income and increases in noninterest expense and income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended September 30, 2024 were 0.98% and 10.13%, respectively, compared to 0.93% and 9.50%, respectively, for the three months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 53.94% and 51.90%, respectively, for the three months ended September 30, 2024, compared to 54.86% and 52.29%, respectively, for the three months ended September 30, 2023, and 54.90% and 52.71%, respectively, for the three months ended June 30, 2024. 

    Net interest income for the three months ended September 30, 2024 was $55.5 million, an increase of $2.2 million, or 4.1%, from the same period in 2023. The increase in net interest income was due to the increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities. Linked quarter, net interest income increased $1.9 million, or 3.5%, compared to $53.6 million during the three months ended June 30, 2024, largely due to the increase in the average yield on our interest earning assets and the decrease in the average rate paid on our interest bearing liabilities, partially offset by the decrease in the average balance of interest earning assets. 

    Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.82% and 2.95%, respectively, for the three months ended September 30, 2024, compared to 2.85% and 3.02%, respectively, for the same period in 2023. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.74% and 2.87%, respectively for the three months ended June 30, 2024. 

    Noninterest income was $8.2 million for the three months ended September 30, 2024, a decrease of $2.7 million, or 24.6%, compared to $10.8 million for the same period in 2023. The decrease was due to a net loss on sale of securities AFS and decreases in other noninterest income and deposit services income, partially offset by an increase in brokerage services income. On a linked quarter basis, noninterest income decreased $3.4 million, or 29.3%, compared to the three months ended June 30, 2024. The decrease was primarily due to an increase in net loss on sale of securities AFS and decreases in other noninterest income and bank owned life insurance income related to a $1.0 million death benefit realized in the second quarter of 2024. The decrease in other noninterest income for both periods was primarily due to an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1. 

    Noninterest expense increased $0.8 million, or 2.2%, to $36.3 million for the three months ended September 30, 2024, compared to $35.6 million for the same period in 2023, due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in advertising, travel and entertainment expense, professional fees, net occupancy expense and amortization of intangibles. On a linked quarter basis, noninterest expense increased by $0.6 million, or 1.6%, compared to the three months ended June 30, 2024, due to increases in other noninterest expense, salaries and employee benefits expense and professional fees. 

    Income tax expense increased $1.3 million, or 40.7%, for the three months ended September 30, 2024, compared to the same period in 2023. On a linked quarter basis, income tax expense decreased $0.8 million, or 15.8%. Our effective tax rate (“ETR”) increased to 17.6% for the three months ended September 30, 2024, compared to 14.5% for the three months ended September 30, 2023, and increased slightly from 17.4% for the three months ended June 30, 2024. The higher ETR for the three months ended September 30, 2024 compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income. 

    Operating Results for the Nine Months Ended September 30, 2024 

    Net income was $66.7 million for the nine months ended September 30, 2024, compared to $69.4 million for the same period in 2023, a decrease of $2.7 million, or 3.8%. Earnings per diluted common share were $2.20 for the nine months ended September 30, 2024, compared to $2.24 for the same period in 2023, a decrease of 1.8%. The decrease in net income was primarily a result of the decrease in noninterest income and increases in noninterest expense and income tax expense, partially offset by the decrease in provision for credit losses and the increase in net interest income. Returns on average assets and average shareholders’ equity for the nine months ended September 30, 2024 were 1.06% and 11.19%, respectively, compared to 1.20% and 12.21%, respectively, for the nine months ended September 30, 2023. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.56% and 53.35%, respectively, for the nine months ended September 30, 2024, compared to 53.99% and 51.44%, respectively, for the nine months ended September 30, 2023. 

    Net interest income was $162.4 million for the nine months ended September 30, 2024, compared to $160.5 million for the same period in 2023, an increase of $1.9 million, or 1.2%, due to increases in the average balance and the average yield of interest earning assets, partially offset by increases in the average rate paid on our interest bearing liabilities and average balance of our interest bearing liabilities. 

    Our net interest margin and tax-equivalent net interest margin(1) were 2.76% and 2.90%, respectively, for the nine months ended September 30, 2024, compared to 2.95% and 3.13%, respectively, for the same period in 2023. 

    Noninterest income was $29.5 million for the nine months ended September 30, 2024, a decrease of $3.9 million, or 11.6%, compared to $33.3 million for the same period in 2023. The decrease was due to decreases in the net gain on sale of equity securities, other noninterest income and deposit services income and a loss on sale of loans, partially offset by a decrease in net loss on sale of securities AFS and an increase in brokerage services income. The decrease in other noninterest income was primarily due to an impairment charge of $868,000 on the sale of approximately $10 million of AFS municipal securities and the unwind of the related fair value swaps on October 1. 

    Noninterest expense was $109.0 million for the nine months ended September 30, 2024, compared to $105.4 million for the same period in 2023, an increase of $3.6 million, or 3.4%. The increase was primarily due to increases in salaries and employee benefits and software and data processing expense, partially offset by decreases in professional fees, net occupancy expense, advertising, travel and entertainment expense, and amortization of intangibles. 

    Income tax expense increased $2.0 million, or 16.3%, for the nine months ended September 30, 2024, compared to the same period in 2023. Our ETR was approximately 17.6% and 15.0% for the nine months ended September 30, 2024 and 2023, respectively. The higher ETR for the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily due to a decrease in tax-exempt income as a percentage of pre-tax income. 

    Balance Sheet Data 

    At September 30, 2024, Southside had $8.36 billion in total assets, compared to $8.28 billion at December 31, 2023 and $7.97 billion at September 30, 2023. 

    Loans at September 30, 2024 were $4.58 billion, an increase of $157.4 million, or 3.6%, compared to $4.42 billion at September 30, 2023. Linked quarter, loans decreased $11.3 million, or 0.2%, due to decreases of $50.2 million in commercial real estate loans, $14.9 million in municipal loans, $2.4 million in loans to individuals and $1.0 million in commercial loans. These decreases were partially offset by increases of $39.8 million in construction loans and $17.4 million in 1-4 family residential loans. 

    Securities at September 30, 2024 were $2.70 billion, an increase of $53.4 million, or 2.0%, compared to $2.64 billion at September 30, 2023. Linked quarter, securities decreased $15.1 million, or 0.6%, from $2.71 billion at June 30, 2024. 

    Deposits at September 30, 2024 were $6.44 billion, an increase of $86.1 million, or 1.4%, compared to $6.35 billion at September 30, 2023. Linked quarter, deposits decreased $60.2 million, or 0.9%, from $6.50 billion at June 30, 2024. 

    At September 30, 2024, we had 179,214 total deposit accounts with an average balance of $32,000. Our estimated uninsured deposits were 35.9% as of September 30, 2024. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 19.2% as of September 30, 2024. Our noninterest bearing deposits represent approximately 21.4% of total deposits. Linked quarter, our cost of interest bearing deposits remained consistent at 3.01%. Linked quarter, our cost of total deposits decreased one basis point from 2.39% in the prior quarter to 2.38%. 

    Our cost of interest bearing deposits increased 83 basis points, from 2.16% for the nine months ended September 30, 2023, to 2.99% for the nine months ended September 30, 2024. Our cost of total deposits increased 75 basis points, from 1.62% for the nine months ended September 30, 2023, to 2.37% for the nine months ended September 30, 2024. 

    Capital Resources and Liquidity 

    Our capital ratios and contingent liquidity sources remain solid. During the third quarter ended September 30, 2024, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. We have not purchased any common stock pursuant to the Stock Repurchase Plan subsequent to September 30, 2024. 

    As of September 30, 2024, our total available contingent liquidity, net of current outstanding borrowings, was $2.23 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit. 

    Asset Quality 

    Nonperforming assets at September 30, 2024 were $7.7 million, or 0.09% of total assets, an increase of $3.3 million, or 74.8%, compared to $4.4 million, or 0.05% of total assets, at September 30, 2023. Linked quarter, nonperforming assets increased $0.7 million, or 10.7%, from $6.9 million at June 30, 2024 due primarily to an increase of $1.1 million, or 18.7%, in nonaccrual loans, partially offset by decreases of $0.1 million in restructured loans and $0.3 million in other real estate owned. 

    The allowance for loan losses totaled $44.3 million, or 0.97% of total loans, at September 30, 2024, compared to $42.4 million, or 0.92% of total loans, at June 30, 2024. The increase in the allowance as a percentage of total assets was primarily due to the increased economic concerns forecasted in the CECL model specific to office and multifamily markets in metro areas. The allowance for loan losses was $41.8 million, or 0.94% of total loans, at September 30, 2023. 

    For the three months ended September 30, 2024, we recorded a provision for credit losses for loans of $2.3 million, compared to a provision of $6.3 million for the three months ended September 30, 2023, and a reversal of provision of $0.9 million for the three months ended June 30, 2024. Net charge-offs were $0.4 million for the three months ended September 30, 2024, compared to net charge-offs of $0.9 million and $0.3 million for the three months ended September 30, 2023 and June 30, 2024, respectively. Net charge-offs were $1.0 million for the nine months ended September 30, 2024, compared to net charge-offs of $1.5 million for the nine months ended September 30, 2023. 

    We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.1 million for the three months ended September 30, 2024, compared to $0.6 million and $0.4 million for the three months ended September 30, 2023 and June 30, 2024, respectively. We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of $0.6 million for the nine months ended September 30, 2024, compared to a provision for credit losses on off-balance-sheet credit exposures of $0.2 million for the nine months ended September 30, 2023. The balance of the allowance for off-balance-sheet credit exposures was $3.3 million and $3.9 million at September 30, 2024 and 2023, respectively, and is included in other liabilities. 

    Dividend 

    Southside Bancshares, Inc. declared a third quarter cash dividend of $0.36 per share on August 8, 2024, which was paid on September 5, 2024, to all shareholders of record as of August 22, 2024. 

    _______________ 

    (1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. 

    Conference Call 

    Southside’s management team will host a conference call to discuss its third quarter ended September 30, 2024 financial results on Thursday, October 24, 2024 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events. 

    Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BIe280e5ecbf444a68a5836f1e27caa8a9 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process. 

    For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call. 

    Non-GAAP Financial Measures 

    Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. 

    Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe this measure to be the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread. 

    Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio. 

    These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure. 

    Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables. 

    A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables. 

    About Southside Bancshares, Inc. 

    Southside Bancshares, Inc. is a bank holding company with approximately $8.36 billion in assets as of September 30, 2024, that owns 100% of Southside Bank. Southside Bank currently has 54 branches in Texas and operates a network of 73 ATMs/ITMs. 

    To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com. 

    Forward-Looking Statements 

    Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from the results discussed in the forward-looking statements. For example, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company’s ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate increases, tax reform, inflation, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, labor shortages and changes in interest rates by the Federal Reserve. 

    Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under “Part I – Item 1. Forward Looking Information” and “Part I – Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments. 

     
    Southside Bancshares, Inc.
    Consolidated Financial Summary (Unaudited)
    (Dollars in thousands)
     
      As of
        2024       2023  
      Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
    ASSETS                  
    Cash and due from banks $ 130,147     $ 114,283     $ 96,744     $ 122,021     $ 105,601  
    Interest earning deposits   333,825       272,469       307,257       391,719       106,094  
    Federal funds sold   22,325       65,244       65,372       46,770       114,128  
    Securities available for sale, at estimated fair value   1,408,437       1,405,944       1,405,221       1,296,294       1,335,560  
    Securities held to maturity, at net carrying value   1,288,403       1,305,975       1,306,898       1,307,053       1,307,886  
    Total securities   2,696,840       2,711,919       2,712,119       2,603,347       2,643,446  
    Federal Home Loan Bank stock, at cost   40,291       32,991       27,958       11,936       12,778  
    Loans held for sale   768       1,352       756       10,894       1,382  
    Loans   4,578,048       4,589,365       4,577,368       4,524,510       4,420,633  
    Less: Allowance for loan losses   (44,276 )     (42,407 )     (43,557 )     (42,674 )     (41,760 )
    Net loans   4,533,772       4,546,958       4,533,811       4,481,836       4,378,873  
    Premises & equipment, net   138,811       138,489       139,491       138,950       139,473  
    Goodwill   201,116       201,116       201,116       201,116       201,116  
    Other intangible assets, net   2,003       2,281       2,588       2,925       3,295  
    Bank owned life insurance   137,489       136,903       136,604       136,330       135,737  
    Other assets   124,876       133,697       130,047       137,070       130,545  
    Total assets $ 8,362,263     $ 8,357,702     $ 8,353,863     $ 8,284,914     $ 7,972,468  
                       
    LIABILITIES AND SHAREHOLDERS’ EQUITY                  
    Noninterest bearing deposits $ 1,377,022     $ 1,366,924     $ 1,358,827     $ 1,390,407     $ 1,431,285  
    Interest bearing deposits   5,058,680       5,129,008       5,186,933       5,159,274       4,918,286  
    Total deposits   6,435,702       6,495,932       6,545,760       6,549,681       6,349,571  
    Other borrowings and Federal Home Loan Bank borrowings   865,856       763,700       770,151       722,468       608,038  
    Subordinated notes, net of unamortized debt
    issuance costs    		   92,006       91,970       93,913       93,877       93,838  
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,273       60,272       60,271       60,270       60,269  
    Other liabilities   103,172       144,858       95,846       85,330       132,157  
    Total liabilities   7,557,009       7,556,732       7,565,941       7,511,626       7,243,873  
    Shareholders’ equity   805,254       800,970       787,922       773,288       728,595  
    Total liabilities and shareholders’ equity $ 8,362,263     $ 8,357,702     $ 8,353,863     $ 8,284,914     $ 7,972,468  
     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars and shares in thousands, except per share data)
     
      Three Months Ended
        2024       2023  
      Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
    Income Statement:                  
    Total interest income $ 105,703     $ 104,186     $ 102,758     $ 98,939     $ 93,078  
    Total interest expense   50,239       50,578       49,410       44,454       39,805  
    Net interest income   55,464       53,608       53,348       54,485       53,273  
    Provision for (reversal of) credit losses   2,389       (485 )     58       2,281       6,987  
    Net interest income after provision for (reversal of) credit losses   53,075       54,093       53,290       52,204       46,286  
    Noninterest income                  
    Deposit services   6,199       6,157       5,985       6,305       6,479  
    Net gain (loss) on sale of securities available for sale   (1,929 )     (563 )     (18 )     (10,386 )     11  
    Gain (loss) on sale of loans   115       220       (436 )     178       96  
    Trust fees   1,628       1,456       1,336       1,431       1,522  
    Bank owned life insurance   857       1,767       784       2,602       790  
    Brokerage services   1,068       1,081       1,014       944       760  
    Other   233       1,439       1,059       1,427       1,178  
    Total noninterest income   8,171       11,557       9,724       2,501       10,836  
    Noninterest expense                  
    Salaries and employee benefits   22,233       21,984       23,113       21,152       21,241  
    Net occupancy   3,613       3,750       3,362       3,474       3,796  
    Advertising, travel & entertainment   734       795       950       1,127       1,062  
    ATM expense   412       368       325       318       358  
    Professional fees   1,206       1,075       1,154       1,315       1,472  
    Software and data processing   2,951       2,860       2,856       2,644       2,432  
    Communications   423       410       449       435       359  
    FDIC insurance   939       977       943       892       902  
    Amortization of intangibles   278       307       337       370       407  
    Other   3,543       3,239       3,392       3,456       3,524  
    Total noninterest expense   36,332       35,765       36,881       35,183       35,553  
    Income before income tax expense   24,914       29,885       26,133       19,522       21,569  
    Income tax expense   4,390       5,212       4,622       2,206       3,120  
    Net income $ 20,524     $ 24,673     $ 21,511     $ 17,316     $ 18,449  
                       
    Common Share Data:      
    Weighted-average basic shares outstanding   30,286       30,280       30,262       30,235       30,502  
    Weighted-average diluted shares outstanding   30,370       30,312       30,305       30,276       30,543  
    Common shares outstanding end of period   30,308       30,261       30,284       30,249       30,338  
    Earnings per common share                  
    Basic $ 0.68     $ 0.81     $ 0.71     $ 0.57     $ 0.60  
    Diluted   0.68       0.81       0.71       0.57       0.60  
    Book value per common share   26.57       26.47       26.02       25.56       24.02  
    Tangible book value per common share   19.87       19.75       19.29       18.82       17.28  
    Cash dividends paid per common share   0.36       0.36       0.36       0.37       0.35  
                       
    Selected Performance Ratios:                  
    Return on average assets   0.98 %     1.19 %     1.03 %     0.85 %     0.93 %
    Return on average shareholders’ equity   10.13       12.46       11.02       9.31       9.50  
    Return on average tangible common equity (1)   13.69       16.90       15.07       13.10       13.17  
    Average yield on earning assets (FTE) (1)   5.51       5.45       5.38       5.30       5.15  
    Average rate on interest bearing liabilities   3.28       3.32       3.22       3.04       2.84  
    Net interest margin (FTE) (1)   2.95       2.87       2.86       2.99       3.02  
    Net interest spread (FTE) (1)   2.23       2.13       2.16       2.26       2.31  
    Average earning assets to average interest bearing liabilities   128.51       128.62       127.71       131.65       133.24  
    Noninterest expense to average total assets   1.73       1.72       1.77       1.73       1.79  
    Efficiency ratio (FTE) (1)   51.90       52.71       55.54       50.86       52.29  

    (1)  Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. 

     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
        2024       2023  
      Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
    Nonperforming Assets: $ 7,656     $ 6,918     $ 7,979     $ 4,001     $ 4,381  
    Nonaccrual loans   7,254       6,110       7,709       3,889       4,316  
    Accruing loans past due more than 90 days   —       —       —       —       —  
    Restructured loans   —       145       151       13       15  
    Other real estate owned   388       648       119       99       50  
    Repossessed assets   14       15       —       —       —  
                       
    Asset Quality Ratios:                  
    Ratio of nonaccruing loans to:                  
    Total loans   0.16 %     0.13 %     0.17 %     0.09 %     0.10 %
    Ratio of nonperforming assets to:                  
    Total assets   0.09       0.08       0.10       0.05       0.05  
    Total loans   0.17       0.15       0.17       0.09       0.10  
    Total loans and OREO   0.17       0.15       0.17       0.09       0.10  
    Ratio of allowance for loan losses to:                  
    Nonaccruing loans   610.37       694.06       565.01       1,097.30       967.56  
    Nonperforming assets   578.32       613.00       545.90       1,066.58       953.21  
    Total loans   0.97       0.92       0.95       0.94       0.94  
    Net charge-offs (recoveries) to average loans outstanding   0.04       0.02       0.03       0.11       0.08  
                       
    Capital Ratios:                  
    Shareholders’ equity to total assets   9.63       9.58       9.43       9.33       9.14  
    Common equity tier 1 capital   13.07       12.72       12.43       12.28       12.27  
    Tier 1 risk-based capital   14.12       13.76       13.47       13.32       13.31  
    Total risk-based capital   16.59       16.16       15.92       15.73       15.71  
    Tier 1 leverage capital   9.61       9.40       9.22       9.39       9.61  
    Period end tangible equity to period end tangible assets (1)   7.38       7.33       7.17       7.04       6.75  
    Average shareholders’ equity to average total assets   9.67       9.52       9.35       9.13       9.76  

    (1)  Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. 

     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
        2024       2023  
    Loan Portfolio Composition Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
    Real Estate Loans:                  
    Construction $ 585,817     $ 546,040     $ 599,464     $ 789,744     $ 720,515  
    1-4 Family Residential   755,406       738,037       720,508       696,738       689,492  
    Commercial   2,422,612       2,472,771       2,413,345       2,168,451       2,117,306  
    Commercial Loans   358,854       359,807       358,053       366,893       385,816  
    Municipal Loans   402,041       416,986       427,225       441,168       441,512  
    Loans to Individuals   53,318       55,724       58,773       61,516       65,992  
    Total Loans $ 4,578,048     $ 4,589,365     $ 4,577,368     $ 4,524,510     $ 4,420,633  
                       
    Summary of Changes in Allowances:                  
    Allowance for Loan Losses                  
    Balance at beginning of period $ 42,407     $ 43,557     $ 42,674     $ 41,760     $ 36,303  
    Loans charged-off   (773 )     (721 )     (634 )     (1,572 )     (1,262 )
    Recoveries of loans charged-off   365       444       347       284       378  
    Net loans (charged-off) recovered   (408 )     (277 )     (287 )     (1,288 )     (884 )
    Provision for (reversal of) loan losses   2,277       (873 )     1,170       2,202       6,341  
    Balance at end of period $ 44,276     $ 42,407     $ 43,557     $ 42,674     $ 41,760  
                       
    Allowance for Off-Balance-Sheet Credit Exposures                  
    Balance at beginning of period $ 3,208     $ 2,820     $ 3,932     $ 3,853     $ 3,207  
    Provision for (reversal of) off-balance-sheet credit exposures   112       388       (1,112 )     79       646  
    Balance at end of period $ 3,320     $ 3,208     $ 2,820     $ 3,932     $ 3,853  
    Total Allowance for Credit Losses $ 47,596     $ 45,615     $ 46,377     $ 46,606     $ 45,613  
     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Nine Months Ended
      September 30,
        2024       2023  
    Income Statement:      
    Total interest income $ 312,647     $ 260,802  
    Total interest expense   150,227       100,260  
    Net interest income   162,420       160,542  
    Provision for (reversal of) credit losses   1,962       6,873  
    Net interest income after provision for (reversal of) credit losses   160,458       153,669  
    Noninterest income      
    Deposit services   18,341       19,192  
    Net gain (loss) on sale of securities available for sale   (2,510 )     (5,590 )
    Net gain on sale of equity securities   —       5,058  
    Gain (loss) on sale of loans   (101 )     385  
    Trust fees   4,420       4,479  
    Bank owned life insurance   3,408       3,221  
    Brokerage services   3,163       2,361  
    Other   2,731       4,227  
    Total noninterest income   29,452       33,333  
    Noninterest expense      
    Salaries and employee benefits   67,330       64,473  
    Net occupancy   10,725       11,220  
    Advertising, travel & entertainment   2,479       2,966  
    ATM expense   1,105       1,033  
    Professional fees   3,435       4,036  
    Software and data processing   8,667       6,751  
    Communications   1,282       1,034  
    FDIC insurance   2,859       2,666  
    Amortization of intangibles   922       1,327  
    Other   10,174       9,889  
    Total noninterest expense   108,978       105,395  
    Income before income tax expense   80,932       81,607  
    Income tax expense   14,224       12,231  
    Net income $ 66,708     $ 69,376  
    Common Share Data:      
    Weighted-average basic shares outstanding   30,276       30,862  
    Weighted-average diluted shares outstanding   30,332       30,916  
    Common shares outstanding end of period   30,308       30,338  
    Earnings per common share      
    Basic $ 2.20     $ 2.25  
    Diluted   2.20       2.24  
    Book value per common share   26.57       24.02  
    Tangible book value per common share   19.87       17.28  
    Cash dividends paid per common share   1.08       1.05  
           
    Selected Performance Ratios:      
    Return on average assets   1.06 %     1.20 %
    Return on average shareholders’ equity   11.19       12.21  
    Return on average tangible common equity (1)   15.20       16.98  
    Average yield on earning assets (FTE) (1)   5.45       4.97  
    Average rate on interest bearing liabilities   3.27       2.49  
    Net interest margin (FTE) (1)   2.90       3.13  
    Net interest spread (FTE) (1)   2.18       2.48  
    Average earning assets to average interest bearing liabilities   128.28       134.94  
    Noninterest expense to average total assets   1.74       1.84  
    Efficiency ratio (FTE) (1)   53.35       51.44  

    (1)  Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. 

     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Nine Months Ended
      September 30,
        2024       2023  
    Nonperforming Assets: $ 7,656     $ 4,381  
    Nonaccrual loans   7,254       4,316  
    Accruing loans past due more than 90 days   —       —  
    Restructured loans   —       15  
    Other real estate owned   388       50  
    Repossessed assets   14       —  
           
    Asset Quality Ratios:      
    Ratio of nonaccruing loans to:      
    Total loans   0.16 %     0.10 %
    Ratio of nonperforming assets to:      
    Total assets   0.09       0.05  
    Total loans   0.17       0.10  
    Total loans and OREO   0.17       0.10  
    Ratio of allowance for loan losses to:      
    Nonaccruing loans   610.37       967.56  
    Nonperforming assets   578.32       953.21  
    Total loans   0.97       0.94  
    Net charge-offs (recoveries) to average loans outstanding   0.03       0.05  
           
    Capital Ratios:      
    Shareholders’ equity to total assets   9.63       9.14  
    Common equity tier 1 capital   13.07       12.27  
    Tier 1 risk-based capital   14.12       13.31  
    Total risk-based capital   16.59       15.71  
    Tier 1 leverage capital   9.61       9.61  
    Period end tangible equity to period end tangible assets (1)   7.38       6.75  
    Average shareholders’ equity to average total assets   9.51       9.81  

    (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. 

     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Nine Months Ended
      September 30,
    Loan Portfolio Composition   2024       2023  
    Real Estate Loans:      
    Construction $ 585,817     $ 720,515  
    1-4 Family Residential   755,406       689,492  
    Commercial   2,422,612       2,117,306  
    Commercial Loans   358,854       385,816  
    Municipal Loans   402,041       441,512  
    Loans to Individuals   53,318       65,992  
    Total Loans $ 4,578,048     $ 4,420,633  
           
    Summary of Changes in Allowances:      
    Allowance for Loan Losses      
    Balance at beginning of period $ 42,674     $ 36,515  
    Loans charged-off   (2,128 )     (2,632 )
    Recoveries of loans charged-off   1,156       1,170  
    Net loans (charged-off) recovered   (972 )     (1,462 )
    Provision for (reversal of) loan losses   2,574       6,707  
    Balance at end of period $ 44,276     $ 41,760  
           
    Allowance for Off-Balance-Sheet Credit Exposures      
    Balance at beginning of period $ 3,932     $ 3,687  
    Provision for (reversal of) off-balance-sheet credit exposures   (612 )     166  
    Balance at end of period $ 3,320     $ 3,853  
    Total Allowance for Credit Losses $ 47,596     $ 45,613  

    The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.  

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      September 30, 2024   June 30, 2024
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    ASSETS                      
    Loans (1) $ 4,613,028     $ 72,493   6.25 %   $ 4,595,980     $ 70,293   6.15 %
    Loans held for sale   871       11   5.02 %     1,489       24   6.48 %
    Securities:                      
    Taxable investment securities (2)   791,914       7,150   3.59 %     783,856       7,009   3.60 %
    Tax-exempt investment securities (2)   1,174,445       11,825   4.01 %     1,254,097       12,761   4.09 %
    Mortgage-backed and related securities (2)   886,325       11,976   5.38 %     830,504       11,084   5.37 %
    Total securities   2,852,684       30,951   4.32 %     2,868,457       30,854   4.33 %
    Federal Home Loan Bank stock, at cost, and equity investments   41,159       582   5.63 %     40,467       573   5.69 %
    Interest earning deposits   281,313       3,798   5.37 %     300,047       4,105   5.50 %
    Federal funds sold   33,971       488   5.71 %     75,479       1,021   5.44 %
    Total earning assets   7,823,026       108,323   5.51 %     7,881,919       106,870   5.45 %
    Cash and due from banks   100,578               110,102          
    Accrued interest and other assets   455,091               424,323          
    Less: Allowance for loan losses   (42,581 )             (43,738 )        
    Total assets $ 8,336,114             $ 8,372,606          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $ 598,116       1,490   0.99 %   $ 604,753       1,454   0.97 %
    Certificates of deposit   1,087,613       12,647   4.63 %     1,020,099       11,630   4.59 %
    Interest bearing demand accounts   3,409,911       24,395   2.85 %     3,513,068       25,382   2.91 %
    Total interest bearing deposits   5,095,640       38,532   3.01 %     5,137,920       38,466   3.01 %
    Federal Home Loan Bank borrowings   618,708       6,488   4.17 %     606,851       6,455   4.28 %
    Subordinated notes, net of unamortized debt issuance costs   91,988       937   4.05 %     92,017       936   4.09 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,273       1,180   7.79 %     60,271       1,171   7.81 %
    Repurchase agreements   83,297       899   4.29 %     88,007       955   4.36 %
    Other borrowings   137,482       2,203   6.37 %     143,169       2,595   7.29 %
    Total interest bearing liabilities   6,087,388       50,239   3.28 %     6,128,235       50,578   3.32 %
    Noninterest bearing deposits   1,344,165               1,346,274          
    Accrued expenses and other liabilities   98,331               101,399          
    Total liabilities   7,529,884               7,575,908          
    Shareholders’ equity   806,230               796,698          
    Total liabilities and shareholders’ equity $ 8,336,114             $ 8,372,606          
    Net interest income (FTE)     $ 58,084           $ 56,292    
    Net interest margin (FTE)         2.95 %           2.87 %
    Net interest spread (FTE)         2.23 %           2.13 %

    (1)  Interest on loans includes net fees on loans that are not material in amount.
    (2)  For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. 

    Note: As of September 30, 2024 and June 30, 2024, loans totaling $7.3 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. 

     
    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      March 31, 2024   December 31, 2023
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    ASSETS                      
    Loans (1) $ 4,559,602     $ 68,849   6.07 %   $ 4,473,618     $ 67,886   6.02 %
    Loans held for sale   8,834       18   0.82 %     1,858       27   5.77 %
    Securities:                      
    Taxable investment securities (2)   780,423       6,967   3.59 %     852,023       7,970   3.71 %
    Tax-exempt investment securities (2)   1,285,922       13,168   4.12 %     1,456,187       15,688   4.27 %
    Mortgage-backed and related securities (2)   764,713       10,119   5.32 %     581,548       6,865   4.68 %
    Total securities   2,831,058       30,254   4.30 %     2,889,758       30,523   4.19 %
    Federal Home Loan Bank stock, at cost, and equity investments   40,063       333   3.34 %     24,674       296   4.76 %
    Interest earning deposits   380,181       5,202   5.50 %     150,763       2,054   5.41 %
    Federal funds sold   62,599       838   5.38 %     93,149       1,286   5.48 %
    Total earning assets   7,882,337       105,494   5.38 %     7,633,820       102,072   5.30 %
    Cash and due from banks   114,379               110,380          
    Accrued interest and other assets   441,783               374,120          
    Less: Allowance for loan losses   (42,973 )             (41,822 )        
    Total assets $ 8,395,526             $ 8,076,498          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $ 604,529       1,424   0.95 %   $ 610,453       1,432   0.93 %
    Certificates of deposit   941,947       10,341   4.42 %     910,759       9,691   4.22 %
    Interest bearing demand accounts   3,634,936       26,433   2.92 %     3,469,120       24,498   2.80 %
    Total interest bearing deposits   5,181,412       38,198   2.97 %     4,990,332       35,621   2.83 %
    Federal Home Loan Bank borrowings   607,033       5,950   3.94 %     262,709       1,430   2.16 %
    Subordinated notes, net of unamortized debt issuance costs   93,895       956   4.10 %     93,859       965   4.08 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,270       1,175   7.84 %     60,269       1,195   7.87 %
    Repurchase agreements   92,177       967   4.22 %     96,622       1,008   4.14 %
    Other borrowings   137,287       2,164   6.34 %     294,683       4,235   5.70 %
    Total interest bearing liabilities   6,172,074       49,410   3.22 %     5,798,474       44,454   3.04 %
    Noninterest bearing deposits   1,338,384               1,424,961          
    Accrued expenses and other liabilities   100,014               115,388          
    Total liabilities   7,610,472               7,338,823          
    Shareholders’ equity   785,054               737,675          
    Total liabilities and shareholders’ equity $ 8,395,526             $ 8,076,498          
    Net interest income (FTE)     $ 56,084           $ 57,618    
    Net interest margin (FTE)         2.86 %           2.99 %
    Net interest spread (FTE)         2.16 %           2.26 %

    (1)   Interest on loans includes net fees on loans that are not material in amount.
    (2)   For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. 

    Note: As of March 31, 2024 and December 31, 2023, loans totaling $7.7 million and $3.9 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. 

     
    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      September 30, 2023
      Average Balance   Interest   Average Yield/Rate
    ASSETS          
    Loans (1) $ 4,396,184     $ 64,758   5.84 %
    Loans held for sale   1,537       26   6.71 %
    Securities:          
    Taxable investment securities (2)   912,789       8,731   3.79 %
    Tax-exempt investment securities (2)   1,510,044       16,232   4.26 %
    Mortgage-backed and related securities (2)   442,908       4,426   3.96 %
    Total securities   2,865,741       29,389   4.07 %
    Federal Home Loan Bank stock, at cost, and equity investments   22,363       265   4.70 %
    Interest earning deposits   37,891       535   5.60 %
    Federal funds sold   94,441       1,253   5.26 %
    Total earning assets   7,418,157       96,226   5.15 %
    Cash and due from banks   106,348          
    Accrued interest and other assets   400,850          
    Less: Allowance for loan losses   (36,493 )        
    Total assets $ 7,888,862          
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Savings accounts $ 622,246       1,458   0.93 %
    Certificates of deposit   949,894       9,443   3.94 %
    Interest bearing demand accounts   3,189,048       20,050   2.49 %
    Total interest bearing deposits   4,761,188       30,951   2.58 %
    Federal Home Loan Bank borrowings   230,184       1,174   2.02 %
    Subordinated notes, net of unamortized debt issuance costs   93,817       962   4.07 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,268       1,178   7.75 %
    Repurchase agreements   104,070       1,048   4.00 %
    Other borrowings   317,913       4,492   5.61 %
    Total interest bearing liabilities   5,567,440       39,805   2.84 %
    Noninterest bearing deposits   1,441,738          
    Accrued expenses and other liabilities   109,490          
    Total liabilities   7,118,668          
    Shareholders’ equity   770,194          
    Total liabilities and shareholders’ equity $ 7,888,862          
    Net interest income (FTE)     $ 56,421    
    Net interest margin (FTE)         3.02 %
    Net interest spread (FTE)         2.31 %

    (1)   Interest on loans includes net fees on loans that are not material in amount.
    (2)   For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. 

    Note: As of September 30, 2023, loans totaling $4.3 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. 

     
    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Nine Months Ended
      September 30, 2024   September 30, 2023
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    ASSETS                      
    Loans (1) $ 4,589,621     $ 211,635   6.16 %   $ 4,241,676     $ 179,545   5.66 %
    Loans held for sale   3,721       53   1.90 %     1,620       69   5.69 %
    Securities:                      
    Taxable investment securities (2)   785,422       21,126   3.59 %     843,846       23,216   3.68 %
    Tax-exempt investment securities (2)   1,237,884       37,754   4.07 %     1,587,656       48,880   4.12 %
    Mortgage-backed and related securities (2)   827,396       33,179   5.36 %     433,335       12,585   3.88 %
    Total securities   2,850,702       92,059   4.31 %     2,864,837       84,681   3.95 %
    Federal Home Loan Bank stock, at cost, and equity investments   40,565       1,488   4.90 %     25,071       889   4.74 %
    Interest earning deposits   320,371       13,105   5.46 %     60,623       2,310   5.09 %
    Federal funds sold   57,265       2,347   5.47 %     75,499       2,838   5.03 %
    Total earning assets   7,862,245       320,687   5.45 %     7,269,326       270,332   4.97 %
    Cash and due from banks   108,325               105,885          
    Accrued interest and other assets   440,340               406,160          
    Less: Allowance for loan losses   (43,096 )             (36,564 )        
    Total assets $ 8,367,814             $ 7,744,807          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $ 602,450       4,368   0.97 %   $ 645,415       4,201   0.87 %
    Certificates of deposit   1,016,812       34,618   4.55 %     845,851       21,215   3.35 %
    Interest bearing demand accounts   3,518,906       76,210   2.89 %     3,005,449       47,120   2.10 %
    Total interest bearing deposits   5,138,168       115,196   2.99 %     4,496,715       72,536   2.16 %
    Federal Home Loan Bank borrowings   610,893       18,893   4.13 %     281,260       5,347   2.54 %
    Subordinated notes, net of unamortized debt issuance costs   92,631       2,829   4.08 %     96,753       2,955   4.08 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,271       3,526   7.81 %     60,266       3,309   7.34 %
    Repurchase agreements   87,811       2,821   4.29 %     89,282       2,423   3.63 %
    Other borrowings   139,306       6,962   6.68 %     362,684       13,690   5.05 %
    Total interest bearing liabilities   6,129,080       150,227   3.27 %     5,386,960       100,260   2.49 %
    Noninterest bearing deposits   1,342,945               1,506,431          
    Accrued expenses and other liabilities   99,758               91,784          
    Total liabilities   7,571,783               6,985,175          
    Shareholders’ equity   796,031               759,632          
    Total liabilities and shareholders’ equity $ 8,367,814             $ 7,744,807          
    Net interest income (FTE)     $ 170,460           $ 170,072    
    Net interest margin (FTE)         2.90 %           3.13 %
    Net interest spread (FTE)         2.18 %           2.48 %

    (1)   Interest on loans includes net fees on loans that are not material in amount.
    (2)   For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. 

    Note: As of September 30, 2024 and 2023, loans totaling $7.3 million and $4.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. 

    The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented. 

     
    Southside Bancshares, Inc.
    Non-GAAP Reconciliation (Unaudited)
    (Dollars and shares in thousands, except per share data)
     
        Three Months Ended   Nine Months Ended
          2024       2023       2024       2023  
        Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Sep 30,   Sep 30,
    Reconciliation of return on average common equity to return on average tangible common equity:                            
    Net income   $ 20,524     $ 24,673     $ 21,511     $ 17,316     $ 18,449     $ 66,708     $ 69,376  
    After-tax amortization expense     220       243       266       292       322       728       1,048  
    Adjusted net income available to common shareholders   $ 20,744     $ 24,916     $ 21,777     $ 17,608     $ 18,771     $ 67,436     $ 70,424  
                                 
    Average shareholders’ equity   $ 806,230     $ 796,698     $ 785,054     $ 737,675     $ 770,194     $ 796,031     $ 759,632  
    Less: Average intangibles for the period     (203,288 )     (203,581 )     (203,910 )     (204,267 )     (204,658 )     (203,592 )     (205,096 )
    Average tangible shareholders’ equity   $ 602,942     $ 593,117     $ 581,144     $ 533,408     $ 565,536     $ 592,439     $ 554,536  
                                 
    Return on average tangible common equity     13.69 %     16.90 %     15.07 %     13.10 %     13.17 %     15.20 %     16.98 %
                                 
    Reconciliation of book value per share to tangible book value per share:                            
    Common equity at end of period   $ 805,254     $ 800,970     $ 787,922     $ 773,288     $ 728,595     $ 805,254     $ 728,595  
    Less: Intangible assets at end of period     (203,119 )     (203,397 )     (203,704 )     (204,041 )     (204,411 )     (203,119 )     (204,411 )
    Tangible common shareholders’ equity at end of period   $ 602,135     $ 597,573     $ 584,218     $ 569,247     $ 524,184     $ 602,135     $ 524,184  
                                 
    Total assets at end of period   $ 8,362,263     $ 8,357,702     $ 8,353,863     $ 8,284,914     $ 7,972,468     $ 8,362,263     $ 7,972,468  
    Less: Intangible assets at end of period     (203,119 )     (203,397 )     (203,704 )     (204,041 )     (204,411 )     (203,119 )     (204,411 )
    Tangible assets at end of period   $ 8,159,144     $ 8,154,305     $ 8,150,159     $ 8,080,873     $ 7,768,057     $ 8,159,144     $ 7,768,057  
                                 
    Period end tangible equity to period end tangible assets     7.38 %     7.33 %     7.17 %     7.04 %     6.75 %     7.38 %     6.75 %
                                 
    Common shares outstanding end of period     30,308       30,261       30,284       30,249       30,338       30,308       30,338  
    Tangible book value per common share   $ 19.87     $ 19.75     $ 19.29     $ 18.82     $ 17.28     $ 19.87     $ 17.28  
                                 
    Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):                            
    Net interest income (GAAP)   $ 55,464     $ 53,608     $ 53,348     $ 54,485     $ 53,273     $ 162,420     $ 160,542  
    Tax-equivalent adjustments:                            
    Loans     608       633       656       680       674       1,897       2,044  
    Tax-exempt investment securities     2,012       2,051       2,080       2,453       2,474       6,143       7,486  
    Net interest income (FTE) (1)     58,084       56,292       56,084       57,618       56,421       170,460       170,072  
    Noninterest income     8,171       11,557       9,724       2,501       10,836       29,452       33,333  
    Nonrecurring income (2)     2,797       (576 )     18       8,376       (11 )     2,239       (1,006 )
    Total revenue   $ 69,052     $ 67,273     $ 65,826     $ 68,495     $ 67,246     $ 202,151     $ 202,399  
                                                             
    Noninterest expense   $ 36,332     $ 35,765     $ 36,881     $ 35,183     $ 35,553     $ 108,978     $ 105,395  
    Pre-tax amortization expense     (278 )     (307 )     (337 )     (370 )     (407 )     (922 )     (1,327 )
    Nonrecurring expense (3)     (219 )     2       17       22       17       (200 )     56  
    Adjusted noninterest expense   $ 35,835     $ 35,460     $ 36,561     $ 34,835     $ 35,163     $ 107,856     $ 104,124  
                                                             
    Efficiency ratio     53.94 %     54.90 %     57.95 %     53.30 %     54.86 %     55.56 %     53.99 %
    Efficiency ratio (FTE) (1)     51.90 %     52.71 %     55.54 %     50.86 %     52.29 %     53.35 %     51.44 %
                                                             
    Average earning assets   $ 7,823,026     $ 7,881,919     $ 7,882,337     $ 7,633,820     $ 7,418,157     $ 7,862,245     $ 7,269,326  
                                                             
    Net interest margin     2.82 %     2.74 %     2.72 %     2.83 %     2.85 %     2.76 %     2.95 %
    Net interest margin (FTE) (1)     2.95 %     2.87 %     2.86 %     2.99 %     3.02 %     2.90 %     3.13 %
                                                             
    Net interest spread     2.10 %     2.00 %     2.02 %     2.10 %     2.14 %     2.04 %     2.31 %
    Net interest spread (FTE) (1)     2.23 %     2.13 %     2.16 %     2.26 %     2.31 %     2.18 %     2.48 %

    (1)   These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
    (2)   These adjustments may include net gain or loss on sale of securities available for sale, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
    (3)   These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.

    The MIL Network –

    January 25, 2025

  • MIL-OSI USA: Governor Hochul Participates in Axios Fireside Chat

    Source: US State of New York

    Earlier today, Governor Kathy Hochul participated in Axios’ Fireside Chat with Dan Primack. Axios is an American news website based in Arlington, VA. It was founded in 2014 and launched the following year by former Politico journalists Jim VandeHei, Mike Allen and Roy Schwartz. Axios’ BFD is a half-day event where reporters will convene industry leaders to unpack their hyper-relevant news and trends. This event offers attendees an inside track into some of the biggest topics on investors’ minds.

    VIDEO of the event is available on YouTube here and available in TV quality (h.264. mp4) format here.

    AUDIO of the Governor’s remarks is available here.

    PHOTOS of the event are available on the Governor’s Flickr page.

    A rush transcript of the Governor’s remarks is available below:

    Dan Primack, Axios: As I’ve said a couple of times from this stage, we are a couple of weeks away from an election, so it felt apropos that we should have an actual politician on stage — not just somebody talking about politics. So please welcome the Governor of New York, Governor Kathy Hochul.

    Governor Hochul: An actual politician?

    Dan Primack, Axios: An actual politician. Sorry, is that offensive?

    Governor Hochul: I prefer an elected official. It sounds a little nicer, but if you have to call me a politician, I’ve been called worse.

    Dan Primack, Axios: Alright. So, governor, you’ve said — Governor’s Office says — but you’ve said you want to make New York the most business friendly state in the country. How do you gauge that? What’s your metric for that?

    Governor Hochul: Well, sometimes it’s not what you do, it’s what you stop from happening. Like a major tax increase on high net worth people that I was able to, you know, stop in its tracks last year. Because I’m not in the business of driving successful people out of our state, I want to bring them back to the State. And so, it’s also, it’s economic policies, it’s also saying that, you know, “We’re going to break down some barriers for you and we’ll be there with financial incentives.” And we’ll talk about Micron, I presume, but there’s no way Micron was going to build the nation’s largest semiconductor facility — $100 billion of investment, the largest in our history, with 50,000 jobs — if there weren’t incentives from the Biden-Harris Administration. But that just meant that all 50 states could compete. I had to win that war and put $10 billion on the table for that entire industry. So you have to have incentives in place, you have to go after the businesses you want, and now I’m going after the whole supply chain to support Micron and others who are coming. So, it’s very intentional. You don’t say, “We’re in New York. Everybody’s going to come,” because we’re in a competitive race and I’m a very competitive person. So I don’t want to lose that and I’ll do whatever I have to do to make sure people know that we are the place, and I’ll be judged by how many jobs we create. I’m starting off with 50,000 right there, so I’m already ahead of the game.

    We’ve also created more manufacturing jobs, stopping a 30 year decline in manufacturing. Now we’re talking about advanced manufacturing. So, we have the evidence to show that in the three years I’ve been governor, really putting the focus on this, we’re seeing results already.

    Dan Primack, Axios: How do you, you know — a big part of what you’re working on, and we’ve heard a bunch today about this Empire AI Initiative. And as part of this, you got about $275 million from the State and there’s another $150 million from the private sector. It’s an enormous amount of money. However, it’s also less than 10 percent, say of what OpenAI, a California company, raised in the private sector on its own just two weeks ago. Can companies in New York compete with what’s happening in Silicon Valley when you see — in AI — when you see the enormous amounts of money going into these companies?

    Governor Hochul: I’m not competing with the private sector to own AI. My view is — as I announced in my State of the State last January — that whoever owns this next chapter of AI for public good will own everything. So what we have —

    Dan Primack, Axios: What does that mean for public good?

    Governor Hochul: I will be very happy to tell you. I was just at the University of Buffalo two weeks ago with Marilyn Simons and Tom Secunda — the individuals who helped us innovate this, which no other state in the nation has entertained. I can tell you that Microsoft and OpenAI — they have amazing supercomputers dedicated to AI for their own profit; for the private sector. But we said, “We want to democratize AI, make it available to solve society’s problems, innovate new cancer therapies, help us predict weather better than we have been, so I know when that storm is coming and what I can do to prepare for it,” and all kinds of social problems that we can solve by being creative. So what I decided to do is put $275 million with the Legislature’s support — and that’s not always the easiest thing to do — then convince them to let go of that money and really take a leap of faith with me. But then the private sector raised $150 million — but we have university partners. This is what sets us apart. I have Cornell and NYU and RPI and Flight Iron Institute, Columbia, CUNY and SUNY schools all have bought into this, so they get a piece of the action. Their researchers, their students can use the power that I’ve created at a place called Buffalo, New York — where I’m from — and that is going to power the whole state’s research. And so nobody else touched this.

    Dan Primack, Axios: Are you — and you mentioned Buffalo, New York, and we were talking backstage — are you concerned about the power needs for this supercomputer and other AI projects in the State?

    Governor Hochul: Well, I picked Buffalo for a variety of reasons — and we just announced another supercomputer at the University of Albany — but because power is less expensive Upstate, It’s more plentiful; space is less expensive. So it’s all being used across the State. But as far as its home — I have Niagara Falls, which has been powering our state since since the original Tesla. So, we’ve been doing this since the turn of the last century.

    So, I’m always concerned about capacity though as we’re attracting more and more, you know, large data centers and the supply chain companies that are now rushing to New York. I mean, I’ve been bringing companies from all over the world to Upstate New York now because of this whole innovation ecosystem we’re creating. But I have to focus on — not just our wind and solar and hydro and geothermal — but we’re going to have to look at other sources as well and be real aggressive about it because the states that are leaning into the energy sources are the ones that’ll win the race and we cannot lose that.

    Dan Primack, Axios: From your perspective, what is the biggest mistake businesses make when dealing with New York State government?

    Governor Hochul: When they’re dealing with our state government they have to have more skin in the game, and I want them to be fostering our social goals. And let me explain why Micron was so attractive to us: I’m a mom. I used to work on Capitol Hill for Senator Moynihan a long time ago. When my kids were born, I had no child care, had to leave the workforce for a while. We talk to companies like Micron and we say, “We want a number of things from you. We’ll help you. We want you to provide child care on site.” A lot of companies would say, “I’m not sure.” I said, “Do you want to diversify your workforce? Would you like to get more women? Would you like to get young women? Would you like to have it be a family friendly place?” Guess what they’re building right now? A child care center on site. We want them to draw from the neighbors, the neighboring communities that are underserved — the City of Syracuse. We want you to put in workforce development programs. We’re literally changing the curriculum in nine counties around where Micron will go, working with our teachers union, to say, “We’re going to teach young people coding and other computer science skills while they’re still in grade school and high school.”

    So when Micron says, “Why would we come to Upstate New York?” You’re asking me to do all these things to further your social goal. But this is for your workforce. You’ll have a workforce that is not transitional. You’re not always going to have to be hiring someone. They’re not going to leave you after 18 months. They will stay. And that is part of the culture of Upstate New York, where I’m from, with the legacy industries, like the Bethlehem Steels — where my dad and grandpa worked — and Kodak and Bausch and Lomb. I say to them, “One of the drivers of why people should be coming to New York State is that we have a workforce that is brilliant. But also, they’ll stay with the company unlike what happens in other parts of the United States.”

    Dan Primack, Axios: Let me tie two things together. You talked about skin in the game and you’ve talked about Buffalo and Upstate New York. One of the biggest deals I guess you’ve done as Governor is getting the stadium financing deal done for your Buffalo Bills. I will say your Buffalo Bills.

    Governor Hochul: No, no. The only team that plays in New York.

    Dan Primack, Axios: Fair enough. The only team that plays in New York.

    Governor Hochul: Okay, and I love my other teams too, but just —

    Dan Primack, Axios: Fair. Look, I’m from Boston, I — good, yeah, slam the Jets and the Giants, I’m good with this.

    Governor Hochul: You want to go there? Okay. How are the Red Sox doing? How are the Red Sox doing?

    Dan Primack, Axios: We don’t waste our money. Okay, so we — let me just ask though — when you talked about skin in the game, the package for the new Bills stadium is the most public financing ever for a football stadium in the U.S. Why don’t the taxpayers of New York get some skin in the game themselves? Why was there talk about negotiating some actual equity for the State of New York in this team?

    Governor Hochul: Here’s what I’m going to explain to you: Look at the more recent data. This is not the largest subsidy for a team.

    Dan Primack, Axios: But it’s huge. Let’s just stipulate very big.

    Governor Hochul: Well, in proportion to the cost. And I was very smart when I negotiated this because I said, “There’s no cost escalation for the State.” So we’re in for $650 million of what’ll be well over a $2 billion stadium. The State of Tennessee kicked in a billion for their stadium. So we’re not in that league. But also, what happened was it wasn’t just waking up one day and — oh, let’s do a new stadium. They had a lease that expired. Other states were looking to recruit them. I know this for a fact. It’s a small market, the Buffalo Bills, there’s companies, states and cities that were luring them. I had to close the deal, because this is part of the identity of most of Upstate New York. Most of Upstate New York affiliates with this team, and this is important — an economic driver as well. We get a return on investment. After 17 years, I will have paid back that $650 million just in the income tax on salaries from the players.

    Dan Primack, Axios: In that amount of time, the value of the team could be five times what it is now, and it’s the owner of the team who’s going to get to benefit the most.

    Governor Hochul: Well, I’ve made sure that they are a Buffalo Bills team, not one of the other five cities that I was in competition with. Remember, I don’t lose anything — we don’t lose. This is an economic decision and the money will be paid back in 17 years, or perhaps sooner the way the salaries are going.

    Dan Primack, Axios: Let me ask something else about balancing because you’ve talked about balancing, which is obviously the New York City congestion tax, or the congestion fee, rather, which you decided to kill shortly before it went into impact. How do you balance economic needs of the City and of the State with your climate goal?

    Governor Hochul: Again, I’m going to correct a word here — kill versus pause.

    Dan Primack, Axios: Okay, indefinitely pause. Is that indefinite going to come off?

    Governor Hochul: I never used the word indefinitely. Those are people who are criticizing my decision to say that at this point — when we are dealing with escalating inflation, which was not even a factor — this is the first time in four years that inflation has really been a real burden for New Yorkers.

    Fifteen dollars to start out of the blue. All of a sudden, turn it on — it didn’t take into consideration how New Yorkers are struggling right now. So, I said we’re going to put this on a pause for now, because I also have many other energy goals and climate goals that I’m focused on, but that does not mean it is dead. I know how to kill something. I did not kill it.

    Dan Primack, Axios: You’ve said there’d be — I think you said, and correct me if I’m wrong — there’d be a replacement plan by year-end. Is that still on target?

    Governor Hochul: Yes. We have until the year-end.

    Dan Primack, Axios: You have until year-end. Do you expect that by year-end, there will be a replacement plan?

    Governor Hochul: I will have revealed, to the world, the strategy that we’ve been working on for a long time with the Legislature, which is also involved. I want to be clear on that. The Legislature is not in session right now, but that was a decision that was based on the fact that $15 is too much for New Yorkers right now. And, even London — that people tout and look at what they did in London — they started at €8 at the time and gradually, over time, went up to that, so there’s not a shock to the system.

    And, also, I’m focused on bringing the City back. People can work remotely, right? This wasn’t even an option when this congestion pricing was put in place in 2019. It wasn’t even an option. Of course you’re going to come to work. And it’s $3,800 more a year at $15.

    That’s a lot for a teacher, or a health care worker, or a delivery person coming in from Queens or a plumber coming into town. So, I’m just the kind of Governor that’s going to look at the impacts of decisions — who’s being hurt by this? Can they defend themselves? Do they have lobbyists? Do they have access to the editorial boards? No, these folks don’t. I was their voice, but I’m also saying, I am so vested in making sure that we achieve our climate goals because I believe in them.

    I grew up in a toxic environmental dump. The air was orange when I was growing up because of the smoke billowing out of the steel plant, which created 20,000 jobs, but nobody cared about the environmental impact. So, I’m going to make sure that New York continues to be nation leading and achieving our energy goals, our climate goals.

    Dan Primack, Axios: Do you feel the remote work or the hybrid work revolution — call it post-COVID — do you feel that’s changed Manhattan permanently?

    Governor Hochul: Yes. Yes, it has. But we can always reimagine Manhattan just like we did after 9/11 — and, I give Mayor Bloomberg a lot of credit for what he did during that era. When you look at this place, people did not live in lower Manhattan, they worked there but they never lived there. Now, it is a thriving 24/7 community.

    We can do that in Midtown as well, and I’m convinced of this — that we can take with the laws I had to change because you couldn’t convert commercial into residential without a change in the law that I was able to secure just a few months ago. Now developers can look at a commercial building in Midtown and say, “You know what? It’s only 30 percent full. I’m not sure people are coming back. Let’s convert it into housing.”

    Now I’ve got more affordability because I’ve created supply, which is everything.

    Dan Primack, Axios: You mentioned Mayor Bloomberg. Let me ask about a more recent, current mayor. Business people talk all the time about wanting certainty. They often do it for their own purposes. How is it problematic for New York City’s business particularly, to have a mayor who is under indictment?

    Governor Hochul: I speak to business leaders all day long, including this morning over a breakfast meeting. Some significant leaders. And I asked them that question: How are you feeling? And the answer was, “Well, three weeks ago, it was a hair on fire moment.” And I’ve stepped in to offer the stability to say, we’ll work with the Mayor to get through this because I come from a business family. I know uncertainty is paralyzing, but they are expressing to me that they now have confidence, there’s been changes in the administration.

    They know that I’m keeping an eye on this situation because I want the City — and I represent 8.3 million New York City residents as well. These are my constituents. We will make sure that their services are provided. They will not see a disruption in what they’re accustomed to getting because they deserve to have the best. And I’m watching all this.

    Dan Primack, Axios: You obviously originally were running mates, or you served under former Governor Cuomo. There’s lots of talk about him possibly running for mayor here. I’m not asking, obviously, who you would endorse. I’m asking, should voters consider him as a viable candidate if he chooses to run, given what happened in the past and some of the things you’ve said about what he did in the past?

    Governor Hochul: I’m not here to pass judgment on people right now. But I will say this: New Yorkers deserve people with integrity and accomplishments and who do things for the right reasons. Who will do it for the benefit of the people and not their own self-serving reasons. So I will be looking for people like that.

    Right now we have a mayor — we have an elected mayor of the City of New York. Everything could change or everything may not change. But we do know we have an election two weeks from now. Two weeks from now. And that is the one that we’re focused on, as well as my intensive, intensive work — not just for Kamala Harris.

    I just got back from seeing her in Michigan and we were in Pennsylvania, but here in New York, we have the opportunity to give President Kamala Harris a Democratic House Representatives. And I am laser focused on making sure Hakeem Jeffries, our very own New Yorker who knows our community and its needs and knows I’m going to need money for the MTA for example. Give me more money for public transit. That’s my number one ask. I have to make sure we pick up some seats in the Hudson Valley. And in Long Island, I just came in from Long Island just a little short time ago. And, you know, the polls are showing that areas that were written off, are now in place. So the world is going to change in two weeks.

    Dan Primack, Axios: Let me ask one quick final question because we are out of time. You have said you are, I think the term was “Not going anywhere.” Plan to run for reelection here. If Kamala Harris wins the White House and she calls you up, says, “Governor Hochul, we would like you to come down to D.C. and serve as secretary of X.” Are you going?

    Governor Hochul: I’m going to say this and you can quote me 1,000 times: “President Harris, I’m honored that you’d consider me to join your brand new administration — historic. I’m so excited about you, but I’m going to do better for you continuing as the Governor of New York because you’re going to need allies in our state houses to make sure that we continue the great partnership that I’ve had with the Biden Administration. And I’m not going anywhere.”

    Dan Primack, Axios: Governor. Thank you. Appreciate it

    MIL OSI USA News –

    January 25, 2025

  • MIL-OSI: AppFolio Unveils FolioSpace™ to Transform the Resident Experience and Help Customers Build Thriving Communities, Acquires LiveEasy to Accelerate its Vision

    Source: GlobeNewswire (MIL-OSI)

    FolioSpace gives AppFolio property management customers new ways to deliver exceptional value and experiences to their residents

    AppFolio acquires LiveEasy to integrate convenient moving and home services into FolioSpace

    SANTA BARBARA, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) — AppFolio (NASDAQ: APPF), the technology leader powering the future of the real estate industry, today unveiled FolioSpace™, a next-generation resident experience that redefines how property managers and renters connect throughout the entire resident journey. FolioSpace will enable AppFolio’s 20,000 property management customers to create a unified and elevated experience for the millions of residents they serve — from application through renewal.

    To accelerate its resident vision, on October 22, 2024 AppFolio acquired all of the outstanding shares of LiveEasy, a concierge platform providing moving and home services. By vertically integrating LiveEasy and offering its services as part of FolioSpace Resident Onboarding, AppFolio will reduce the stress of moving, deliver increased convenience, and save renters time and money.

    FolioSpace: Reimagining How Property Managers Engage with Residents

    A recent AppFolio survey reveals residents expect timely communication, on-demand digital experiences, and support during the move-in process. However, traditional resident management approaches often fall short, limiting operational efficiency and resident satisfaction. Meeting these expectations is critical for property managers to gain an edge in an increasingly competitive market.

    FolioSpace reimagines how property managers engage with residents by bringing the entire resident journey into one application. By streamlining tasks and communication, FolioSpace replaces traditional manual processes with intuitive digital workflows, including:

    • Resident Application & Screening: A seamless application and approval process for applicants while providing property managers the data they need to select trusted residents and protect themselves from fraud.
    • Resident Onboarding: A configurable digital checklist to streamline leasing and welcome new residents, plus with LiveEasy, access to savings and dedicated support in setting up their utilities, internet and cable, and moving services.
    • Resident Services Marketplace: A collection of essential services to improve residents’ living experience, while also creating value for property managers.
    • Resident Inbox: A reimagined inbox gives residents a central location to communicate with their property managers for everything from maintenance requests to leasing questions. Property managers can use AppFolio Realm-X Messages, which leverages the power of genAI, to help them sort through, act on, and respond to routine resident communications.

    “We envision a world where living in communities feels magical and effortless, freeing people to thrive,” said Chris Womack, Chief Growth Officer of AppFolio. “By welcoming LiveEasy and enhancing AppFolio’s one powerful platform through FolioSpace, we are taking an important step on our journey of delivering exceptional value and experiences to our property management customers and the residents they serve.”

    “LiveEasy’s mission is to provide surprisingly simple moving and living experiences that combine technology and human touch for renters and homeowners,” said Venkatesh Ganapathy, CEO of LiveEasy. “With AppFolio’s commitment to innovation and expansive footprint, we believe this combination will propel that mission and enable us to exceed the expectations of both current and new customers.”

    For More Information

    • Learn more about FolioSpace
    • Register for FUTURE Conference next week in San Diego to attend sessions focused on the resident experience:
      • “The Resident Experience Revolution: Leveraging Tech to Enhance Engagement and Retention”
      • “First Impressions Count: Revolutionizing Resident Onboarding with Digital Excellence”
      • “Stand Out from the Competition: 2024 Renter Preferences Research Insights”
    • Watch the FUTURE opening mainstage event broadcast on LinkedIn Live on Tuesday, October 29 at 9:00am PT.

    The transition to FolioSpace will be seamless for existing users of AppFolio’s current Resident Portal, requiring no new download or account creation. AppFolio will proactively work with customers to jointly bring the new experience to residents.

    Additional Acquisition Information

    LiveEasy is the trade name of Move EZ, Inc., which AppFolio acquired via merger for approximately $80 million, subject to customary adjustments.

    About AppFolio

    AppFolio is the technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit appfolio.com.

    About LiveEasy

    LiveEasy is the country’s most comprehensive home services platform. LiveEasy partners with a range of businesses, including property management, brokerage, mortgage, home inspection, insurance, and more. Its turnkey solution enables businesses to customize, brand, and embed home services solutions into their workflows so they can offer a true end-to-end moving and home services solution to renters and homeowners. For more information about LiveEasy, visit liveeasy.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “future,” “predicts,” “projects,” “target,” “seeks,” “contemplates,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release include statements relating to the potential benefits and effect of the FolioSpace resident application and the acquisition of LiveEasy and their impact on AppFolio’s plans, objectives, expectations and capabilities.

    Forward-looking statements represent AppFolio’s current beliefs and expectations based on information currently available and speak only as of the date the statement is made. Forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors that may cause AppFolio’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. The risks, uncertainties and other factors that may cause actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include AppFolio’s ability to successfully launch the FolioSpace resident application and integrate the LiveEasy business, AppFolio’s ability to implement its plans, objectives and expectations with respect to the FolioSpace resident application and the LiveEasy business, negative effects of the announcement of the FolioSpace resident application and/or the Live Easy acquisition on AppFolio’s business operations, operating results or share price, and unknown liabilities associated with the acquisition as well as those risks, uncertainties and other factors described in the section entitled “Risk Factors” in AppFolio’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 1, 2024, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in AppFolio’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in its other filings with the SEC. You should read this press release with the understanding that AppFolio’s actual future results may be materially different from the results expressed or implied by these forward-looking statements.

    AppFolio undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ca49f9fd-edcc-4d48-b939-91518d73ceee

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Usio to Host Third Quarter Fiscal 2024 Conference Call to Discuss Results and Provide Company Update on November 6, 2024

    Source: GlobeNewswire (MIL-OSI)

    SAN ANTONIO, Oct. 23, 2024 (GLOBE NEWSWIRE) — Usio, Inc. (Nasdaq:USIO), a leading FinTech that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced it will release third quarter fiscal 2024 financial results for the period ended September 30, 2024, after the market closes on Wednesday, November 6, 2024.

    Usio’s management will host a conference call the same day, November 6, 2024, beginning at 4:30 p.m. Eastern time to review financial results and provide a business update. Following management’s formal remarks, there will be a question-and-answer session.

    To listen to the conference call, interested parties within the U.S. should call 1-844-883-3890. International callers should call 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s website at https://usio.com/events-2/.

    A replay of the call will be available approximately one hour after the end of the call through November 20, 2024. The replay can be accessed via the Company’s website or by dialing 1-877-344-7529 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is: 7062327.

    About Usio, Inc.

    Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services clients through its unique payment facilitation platform as a service. The company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas.

    Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

    FORWARD-LOOKING STATEMENTS DISCLAIMER
    Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management’s intent, belief, and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as “believe,” “intend,” “look forward,” “anticipate,” “schedule,” and “expect” among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks related to an economic downturn as a result of the COVID-19 pandemic, the realization of opportunities from the IMS acquisition, the management of the Company’s growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2023. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

    Contact

    Paul Manley
    Senior Vice President, Investor Relations
    paul.manley@usio.com
    612-834-1804

    The MIL Network –

    January 25, 2025

  • MIL-OSI: ibex Ranked #2 in Forbes America’s Best Employers for Tech Workers List

    Source: GlobeNewswire (MIL-OSI)

    WASHINGTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — ibex (NASDAQ: IBEX), a leading global provider of business process outsourcing (BPO) and customer engagement technology solutions, today announced it has been ranked at No. 2 on the 2024 Forbes list of America’s Best Employers for Tech Workers, placing it ahead of global tech industry giants.

    To create the list, Forbes surveyed more than 25,000 tech workers in the United States employed at companies across all sectors with at least 1,000 people. Survey respondents were asked how likely they would be to recommend their current employer, their previous employer, and companies they knew through peers in their industry, or through friends or family who worked there. Respondents assessed their companies’ general work environment and topics like career development, salary, image, diversity, openness and technological prowess.

    “We are thrilled to be recognized by Forbes as one of America’s top employers for tech workers,” said ibex Chief Technology Officer Andy Wilkens. “This ranking is a testament to our tech-led strategy combined with an unwavering commitment to employee success and well-being. ibex has been a pioneer in leveraging technology and AI to enable our global team to deliver the best CX for our clients. We recently introduced the ibex Wave iX solutions suite, which harnesses the power of Gen AI to deliver next-generation customer experiences for top global brands.”

    ibex Wave iX seamlessly integrates innovative AI-powered solutions with ibex’s industry-best talent to facilitate advanced, hyper-personalized, and intelligent interactions that cultivate stronger connections between brands and their customers.

    “From comprehensive benefits and career growth opportunities to our innovative employee engagement programs, we strive to create an environment where top tech talent can thrive and make a real impact,” said ibex Chief People Officer Paul Inson. “ibex is deeply committed to providing cutting-edge technology, tools and training to support career growth and development. We are proud that 85 percent of our frontline leaders began their careers as agents within the company, demonstrating the opportunity for career advancement across the organization.”

    Another key aspect of ibex’s outstanding workplace is the company’s commitment to listening to employee feedback. ibex conducts its annual iVoice employee survey to gather input from its workforce, and more importantly, takes concrete actions based on that feedback. ibex also conducts quarterly employee pulse surveys, ensuring that the company remains closely attuned to its team’s evolving needs and expectations.

    For more information about ibex and career opportunities, visit www.ibex.co.

    About ibex
    ibex delivers innovative business process outsourcing (BPO), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage and retain valuable customers. Today, ibex operates a global CX delivery center model consisting of approximately 30 operations facilities around the world, while deploying next generation technology to drive superior customer experiences for many of the world’s leading companies across retail, e-commerce, healthcare, fintech, utilities and logistics.

    ibex leverages its diverse global team of over 30,000 employees together with industry-leading technology, including the AI-powered ibex Wave iX solutions suite, to manage nearly 175 million critical customer interactions, adding over $2.2B in lifetime customer revenue each year and driving a truly differentiated customer experience. To learn more, visit our website at ibex.co and connect with us on LinkedIn.

    ibex Media Contact:
    Dan Burris
    daniel.burris@ibex.co

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e704c285-850f-4151-afdc-753676638fd8

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Fortinet Report Finds Nearly 70% of Organizations Say Their Employees Lack Fundamental Security Awareness

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) —

    John Maddison, Chief Marketing Officer at Fortinet
    “As threat actors harness new technologies like AI to augment the sophistication of their attacks, it’s increasingly crucial that employees serve as a robust first line of defense. Fortinet’s new research underscores the importance of creating a culture of cybersecurity and the need to deploy organization-wide security awareness and training. These findings reinforce the importance of our award-winning Security Awareness and Training service for enterprises, including the free educational version available at no cost to primary and secondary schools around the world, and its role in strengthening cyber resilience.”

    News Summary
    Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today released its annual 2024 Security Awareness and Training Global Research Report, highlighting the crucial role a cyber-aware workforce plays in managing and mitigating organizational risk.

    Key findings from the global report include:

    • As malicious actors use AI to increase the volume and velocity of their attacks, leaders believe these threats will be harder for their employees to spot. More than 60% of respondents expect more employees to fall victim to attacks in which cybercriminals use AI. However, the good news is that most respondents (80%) also say enterprise-wide knowledge of AI-augmented attacks has made their organizations more open to implementing security awareness and training.
    • Employees can be an organization’s first line of defense, but leaders are increasingly worried that their employees lack security awareness. Nearly 70% of those surveyed believe their employees lack critical cybersecurity knowledge, up from 56% in 2023.
    • Leaders recognize the importance of security awareness training but believe specific attributes make some training programs more effective than others. Three-quarters of leaders say they plan their security awareness campaigns, delivering content monthly (34%) or quarterly (47%). Executives also point to high-quality content playing a leading role in the success or failure of the program.

    The Latest Threats That Employees Must Battle
    One prominent way cybercriminals use AI is to make phishing schemes more believable and harder to detect. Because phishing targets individual users directly, organizations are heavily focused on teaching employees how to recognize and avoid falling victim to these attacks.

    • End-users remain attractive targets. More than 80% of organizations faced attacks last year, such as malware, phishing, and password attacks that directly targeted individuals.
    • As attacks evolve, security awareness and training will only become more vital. Nearly all (96%) of those surveyed say their leadership team supports employee security awareness training.
    • Nearly all respondents (98%) say phishing prevention is a component of their training programs and plans. Other top training priorities include data security (48%) and privacy (41%).

    Employees Can Serve as a Strong First Line of Defense against Attacks
    While security and IT teams are crucial to safeguarding organizations against cyberthreats, an enterprise’s employees also play an important role in preventing breaches.

    • Employees are open to cybersecurity awareness and training opportunities. Most leaders (86%) say their employees positively view security awareness and training.
    • Organizations see positive results when they implement security and awareness training programs. An overwhelming majority of leaders (89%) say their organization saw at least some improvement in its security posture after security awareness and training were implemented. Not a single respondent claimed to see no improvement.

    Cyber Awareness Training Is Vital, but Not All Programs Are Created Equal
    Most organizations are motivated to introduce security awareness and training based on their experience of being breached or knowledge of threats in their industry or sector. Almost all decision-makers (96%) say their leadership team supports implementing training to raise employees’ cybersecurity awareness.

    According to this year’s survey, 97% of leaders think increased employee awareness would strengthen the organization’s cybersecurity posture. Yet respondents also agree that there are key attributes of training programs that are important for effectiveness.

    • Engaging content is paramount. While 86% of decision-makers say they are satisfied with their current security awareness and training solution, the biggest complaint was a lack of engaging content among those not satisfied.
    • Consider the time commitment required. Avoid training fatigue by considering the amount of time required from learners. Demanding too much time from employees can overburden them. Between 1.1 and 2.0 hours is the most common time proposed, with three hours as the average.

    Develop a Cyber-Aware Workforce with the Fortinet Security Awareness and Training Service  
    One breach incident alone has significant repercussions for a business. It is vital to build a three-pronged defense strategy that includes security awareness and training for all employees, technical cybersecurity skills for IT and security staff, and advanced security solutions for the network.

    Beyond teaching individuals what to do when they encounter threats, awareness and training lay the foundation for creating a culture of cybersecurity throughout the organization. Fortinet offers its Security Awareness and Training service to businesses that want to develop a cyber-aware workforce. Designed by the Fortinet Training Institute’s world-class trainers, this service covers a broad range of topics, offers content customization opportunities, and reinforces learnings with periodic reminders and checks. Organizations using the service also have access to a variety of dashboards to track learner progress and reporting to address cyber insurance and compliance needs.

    About the Fortinet Cyber Awareness Survey:

    • The survey was conducted among more than 1,850 executive-level and management-level professionals from 29 different countries at organizations with security awareness and training.
    • Survey respondents came from a range of industries, including manufacturing (17%), financial services (13%), and technology and professional services (11%).

    Additional Resources

    • Learn more about Fortinet’s free cybersecurity training, which includes broad cyber awareness and product training. As part of the Fortinet Training Advancement Agenda (TAA), the Fortinet Training Institute also provides training and certification through the Network Security Expert (NSE) Certification, Academic Partner, and Education Outreach programs.
    • Visit fortinet.com/trust to learn more about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products. 
    • Learn more about Fortinet’s commitment to product security and integrity, including its responsible product development and vulnerability disclosure approach and policies. 
    • Learn more about FortiGuard Labs threat intelligence and research and Outbreak Alerts, which provide timely steps to mitigate breaking cybersecurity attacks.
    • Learn more about Fortinet’s FortiGuard Security Services portfolio.
    • Read about how Fortinet customers are securing their organizations.
    • Follow Fortinet on X, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube.

    About Fortinet
    Fortinet (NASDAQ: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere you need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including CERTs, government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs. 

    Copyright © 2024 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortDAST, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPoint, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiStack, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    The MIL Network –

    January 25, 2025

  • MIL-OSI: White & Associates Insurance Selects Tarmika to Simplify Commercial Lines Remarketing

    Source: GlobeNewswire (MIL-OSI)

    Chicago, IL., Oct. 23, 2024 (GLOBE NEWSWIRE) — Applied Systems® today announced that White & Associates Insurance has selected Tarmika, the industry’s leading commercial lines quoting tool, to remain competitive amid challenging market conditions. Tarmika will provide White & Associates Insurance’s agents with a snapshot of carrier appetites for standard commercial lines in one place to help agents stay on top of rapid appetite changes and remove the friction of rekeying data and switching between multiple carrier platforms, allowing for more accounts to be remarketed more quickly.

    “Constantly changing carrier appetites due to today’s hard market have made it imperative for our agents to remarket nearly all our commercial lines clients annually, which has increased the pressure on our staff,” said Cate Robertson, Vice President, Marketing & Training, White & Associates Insurance. “We chose Tarmika because its single-entry capabilities will speed up the commercial quoting process, empowering our people to successfully provide clients with the attention they deserve during renewals regardless of market conditions.”

    Tarmika is a single-entry commercial lines quoting application that enables agencies to simultaneously quote multiple small commercial markets, through their Direct and Market Access carrier appointments. Directly integrated with Applied Epic and EZLynx, agents can easily pass key risk data points between applications to streamline the quoting process in Tarmika while tracking activities and important quoting details directly in the management system. By enabling agents to collect and store data, find in-appetite markets, quote and submit to multiple insurers or MGAs in a single workflow, agents create a simpler, more connected commercial lines quoting experience that improves productivity and speed to market.

    “The insurance industry is entering a new normal where rates are accelerating at a decelerate rate, leaving agencies looking for smarter ways to approach remarketing,” Raghav Tanna, Senior Vice President, Product Management, Commercial Lines, Applied Systems. “By selecting Tarmika, White & Associates Insurance will be able to streamline risk data entry for quicker access to markets, saving staff time and freeing up resources to focus on more strategic initiatives.”  

    # # #

     

    The Applied products and logos are trademarks of Applied Systems, Inc., registered in the U.S.

     

    About Applied Systems
    Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.

    About White & Associates Insurance
    Established in 1976, White & Associates Insurance is a locally owned and operated insurance agency with 12 locations in West Tennessee, Missouri and Arkansas. White & Associates strives to provide a “doing more” approach to all aspects of operation, including enhancing employee job satisfaction, providing clients with innovative insurance packages and improving the communities in which they serve.

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Alation Launches Season 3 of Data Radicals Podcast to Spotlight Data and AI’s Impact on Business and Society

    Source: GlobeNewswire (MIL-OSI)

    REDWOOD CITY, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) — Alation Inc., the data intelligence company, today announced the launch of Season 3 of the Data Radicals podcast. The new season, hosted by Satyen Sangani, Alation’s CEO and co-founder, focuses on AI’s transformative power to unlock business value, featuring firsthand accounts and practical insights from leaders and practitioners implementing AI in their organizations. This season will explore how organizations leverage trusted data and AI to drive innovation and realize new business opportunities.

    Data Radicals has become a go-to resource for business leaders seeking insights into AI, data governance, and building data-driven cultures. Available on Apple Podcasts, Spotify, and Alation.com/podcast, Season 3 delivers in-depth conversations with industry visionaries tackling the most pressing data problems in business today. This season’s guests include Dr. Geraldine Wong (CDO of GXS Bank), Stewart Bond (Research VP of IDC), Jeremy Kahn (AI Editor at Fortune), Chris Wiggins (Chief Data Scientist at the New York Times), Dr. Raza Habib (CEO and co-founder of Humanloop), and Tom Davenport (author of All-in on AI), who explore how AI use cases drive smarter decision-making, maximize business value from data initiatives, and reshape industries while creating societal change.

    “AI has unlocked extraordinary potential for organizations to reimagine how they use data,” said Satyen Sangani, host of Data Radicals and CEO of Alation. “This season, we explore how AI enables businesses to innovate and disrupt industries and the critical role of trusted data in fueling AI. We’re thrilled to hear from leaders driving AI’s accessibility, trust, and transformative impact. Season 3 will cover the most cutting-edge topics in data and AI, from practical applications like AI-powered chatbots and fraud detection in banking to realizing tangible value from AI initiatives.”

    “I applaud Data Radicals for helping to highlight both the opportunities and the risks AI presents,” said Jeremy Kahn, AI Editor at Fortune and author of the book Mastering AI: A Survival Guide to Our Superpowered Future. “We desperately need public education and discussions like those Data Radicals if we are to hope to avoid AI’s dangers and realize its positive potential. It was a pleasure to be on the podcast to help advance this vital conversation.”

    “Being a guest on Data Radicals was truly enjoyable,” said Wendy Batchelder, Senior Vice President and Chief Data Officer at Centene. “As a leader who has navigated many of the same data and AI challenges other executives face, it was an honor to discuss the critical role of trusted data in driving organizational innovation. We explored the importance of breaking down silos, understanding organizational dynamics, and the pivotal role data governance and DE&I play in creating impactful business outcomes.”

    Upcoming guests for season three of Data Radicals include: 

    • Dr. Geraldine Wong, Chief Data Officer at GXS Bank 
    • Stewart Bond, Senior Vice President, Data Integration and Intelligence Software Research at IDC
    • Jeremy Kahn, AI Editor at Fortune
    • Chris Wiggins, Chief Data Scientist at The New York Times
    • Dr. Raza Habib, CEO and co-founder of Humanloop
    • Tom Davenport, Distinguished Professor of Information Technology and Management at Babson College, author of All-in on AI, and contributor to Harvard Business Review

    Tune into Data Radicals to stay at the forefront of data and AI innovation and discover how these technologies drive business value and reshape the world. Episode one of Season 3, featuring Dr. Geraldine Wong, Chief Data Officer at GXS Bank, is available today anywhere you listen to podcasts. 

    Sign up for the Data Radicals newsletter here. 

    See new episodes at alation.com/podcast.

    About Alation
    Alation is the data intelligence company. Nearly 600 global enterprises — including 40% of the Fortune 100 — rely on Alation to realize value from their data and AI initiatives. Customers such as Cisco, DocuSign, Nasdaq, Pfizer, and Samsung trust Alation’s platform for self-service analytics, cloud transformation, data governance, and AI-ready data, fostering data-driven innovation at scale. Headquartered in Redwood City, California, Alation has been recognized five times by Inc. Magazine as one of the Best Workplaces. To learn more, visit www.alation.com. 

    Media Contact
    Lauren Lloyd
    Director, Corporate Communications
    541-490-6115
    lauren.lloyd@alation.com

    The MIL Network –

    January 25, 2025

  • MIL-OSI Economics: The new iPad mini is available today

    Source: Apple

    Headline: The new iPad mini is available today

    QUICK READ October 23, 2024

    Beginning today, the ultraportable new iPad mini, powered by the A17 Pro chip and built for Apple Intelligence, is now available. Starting at just $499 with double the storage of the previous generation, the new iPad mini delivers incredible value and the full iPad experience in an ultraportable design.

    A17 Pro delivers a huge performance boost for iPad mini, unlocking entirely new experiences — including pro apps used by designers, pilots, doctors, and others — and making it faster than ever for users to edit photos, dive into more immersive AR applications, and more. A17 Pro also brings support for Apple Intelligence, the easy-to-use personal intelligence system that understands personal context to deliver intelligence that is helpful and relevant while protecting user privacy. Deeply integrated into iPadOS 18, Apple Intelligence harnesses the power of Apple silicon and Apple-built generative models to understand and create language and images, take action across apps, and draw from personal context to simplify and accelerate everyday tasks. The first set of Apple Intelligence features will be available in U.S. English as a free software update this month with iPadOS 18.1 on the new iPad mini, with more features rolling out in the coming months.1

    With faster connectivity, users can do even more on iPad mini while on the go. The new iPad mini supports Wi-Fi 6E, so users can download files, play games online, and stream movies even faster, and the USB-C port delivers 2x faster wired connections than the previous generation, with data transfers up to 10Gbps.

    The 12MP wide back camera on the new iPad mini now supports Smart HDR 4 and uses machine learning to detect and scan documents right in the Camera app.

    The versatility and advanced capabilities of the new iPad mini are taken to a whole new level with support for Apple Pencil Pro, and iPadOS 18 brings powerful features that enhance the iPad experience.
    Available in blue, purple, starlight, and space gray, the new iPad mini starts at $499 (U.S.) for the Wi-Fi model, and $649 (U.S.) for the Wi-Fi + Cellular model. The new iPad mini starts with 128GB of storage — double the storage of the previous generation. The new iPad mini is also available in 256GB and 512GB configurations. For full details, visit apple.com/shop/buy-ipad.

    MIL OSI Economics –

    January 25, 2025

  • MIL-OSI Global: California’s governor blocked landmark AI safety laws. Here’s why it’s such a key ruling for the future of AI worldwide

    Source: The Conversation – UK – By Irfan Mehmood, Associate Professor in Business Analytics and AI, University of Bradford

    Anggalih Prasetya / Shutterstock

    In a world where artificial intelligence is rapidly shaping the future, California has found itself at a critical juncture. The US state’s governor, Gavin Newsom, recently blocked a key AI safety bill aimed at tightening regulations on generative AI development.

    The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB 1047) was seen by many as a necessary safeguard on the technology’s development. Generative AI covers systems that produce new content in text, video, images and music – often in response to questions, or “prompts”, by a user.

    But Newsom said the bill risked “curtailing the very innovation
    that fuels advancement in favour of the public good”. While agreeing the public needs to be protected from threats posed by the technology, he argued that SB 1047 was not “the best approach”.

    What happens in California is so important because it is the home of Silicon Valley. Of the world’s top 50 AI companies, 32 are currently headquartered within the state. California’s legislature therefore has a unique role in efforts to ensure the safety of AI-based technology.

    But Newsom’s decision also reflects a deeper question: can innovation and safety truly coexist, or do we have to sacrifice one to advance the other?

    California’s tech industry contributes billions of dollars to the state’s economy and generates thousands of jobs. Newsom, along with prominent tech investors such as Marc Andreessen, believes too many regulations could slow down AI’s growth. Andreessen praised the veto, saying it supports “economic growth and freedom” over excessive caution.

    However, rapidly advancing AI technologies could bring serious risks, from spreading disinformation to enabling sophisticated cyberattacks that could harm society.
    One of the significant challenges is understanding just how powerful today’s AI systems have become.

    Generative AI models, like OpenAI’s GPT-4, are capable of complex reasoning and can produce human-like text. AI can also create incredibly realistic fake images and videos, known as deepfakes, which have the potential to undermine trust in the media and disrupt elections. For example, deepfake videos of public figures could be used to spread disinformation, leading to confusion and mistrust.

    AI-generated misinformation could also be used to manipulate financial markets or incite social unrest. The unsettling part is that no one knows exactly what’s coming next. These technologies open doors for innovation – but without proper regulation, AI tools could be misused in ways that are difficult to predict or control.

    Gavin Newsom said the bill could stifle innovation.
    Sheila Fitzgerald / Shutterstock

    Traditional methods of testing and regulating software fall short when it comes to generative AI tools that can create artificial images or video. These systems evolve in ways that even their creators can’t fully anticipate, especially after being trained on vast amounts of data from interactions with millions of people, such as ChatGPT.

    SB 1047 sought to address this concern by requiring companies to implement “kill switches” in their AI software that can deactivate the technology in the even of a problem. The law would also have required them to create detailed safety plans for any AI project with a budget over US$100 million (£77.2m).

    Critics said the bill was too broad, meaning it could affect even lower-risk projects. But its main goal was to set up basic protections in an industry that’s arguably moving faster than lawmakers can keep up with.

    California as a global leader

    What California decides could affect the world. As a global tech leader, the state’s approach to regulating AI could set a standard for other countries, as it has done in the past. For example, California’s leadership in setting stringent vehicle emissions standards through the California Consumer Privacy Act (CCPA), and its early regulation of self-driving cars, have influenced other states and countries to adopt similar measures.

    But by vetoing SB 1047, California may have sent a message that it’s not ready to lead the way in AI regulation. This could leave room for other countries to step in – countries that may not care as much as the US about ethics and public safety.

    Tesla’s CEO, Elon Musk, had cautiously supported the bill, acknowledging that while it was a “tough call”, it was probably a good idea. His stance shows that even tech insiders recognise the risks AI poses. This might be a sign the industry is ready to work with policymakers on how best to regulate this new breed of technology.

    The notion that regulation automatically stifles innovation is misleading. Effective laws can create a framework that not only protects people, but allows AI to grow sustainably. For example, regulations can help ensure that AI systems are developed responsibly, with considerations for privacy, fairness and transparency. This can build public trust, which is essential for the widespread adoption of AI technologies.

    The future of AI doesn’t have to be a choice between innovation and safety. By implementing reasonable safeguards, we can unlock the full potential of AI while keeping society safe. Public engagement is crucial in this process. People need to be informed about AI’s capabilities and risks to participate in shaping policies that reflect society’s values.

    The stakes are high and AI is advancing rapidly. It’s time for proactive action to ensure we reap the benefits of AI without compromising our safety. But California’s killing of the AI bill also raises a wider question on the increasing power and influence of tech companies, given they raised objections that subsequently led to its veto.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. California’s governor blocked landmark AI safety laws. Here’s why it’s such a key ruling for the future of AI worldwide – https://theconversation.com/californias-governor-blocked-landmark-ai-safety-laws-heres-why-its-such-a-key-ruling-for-the-future-of-ai-worldwide-240182

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI United Kingdom: City service for children in care and care leavers funds vital opportunities through music

    Source: City of Stoke-on-Trent

    Published: Wednesday, 23rd October 2024

    A Stoke-on-Trent service which supports looked after children has funded vital music opportunities for children in care.

    Stoke-on-Trent’s Virtual School helps children and young people in care and previously in care to do as well as they possibly can in their education. They offer information and advice to parents, carers and schools for children previously in care who attend schools in the city.

    The lessons are for children in care are for school years 4, 5, 6 to receive vocal or instrumental lessons through the city council run City Music Service. 

    Councillor Sarah Hill, cabinet member for children’s services said: “This is an amazing offer from our Virtual School. For many pupils this is more than just a music lesson, it’s targeted early intervention.

    “Both the Virtual School and the City Music Service have done some fantastic work supporting children in the city through this scheme. This is a chance for these pupils to shine and have fun alongside building their confidence and communication skills. The lessons involve fun alongside lessons and we’ve had some great feedback from schools where pupils have developed their confidence as a result of these lessons.”

    The City Music Service was established in 2002 to give children and young people the chance to learn songs and musical skills in a fun environment and to perform together at public concerts. Songbirds progress to the City Youth Choir which promotes singing for 11 to 19-year-olds. The City Music Service works in partnership with Stoke-on-Trent schools to offer a wide variety of musical opportunities for over 8000 young people aged 2–18 each week.

    Councillor Sarah Jane Colclough, cabinet member for education: “I’d like to thank the Virtual School and the City Music Service for all their hard work supporting children in the city.”

    “The City Music Service is always very popular and it’s a great way to celebrate the fantastic musical talent of young people in our city. These music lessons funded by the Virtual School will be incredibly beneficial to our children in care, giving them opportunities they might otherwise not have.”

    For more information on the Virtual School, residents can visit www.stoke.gov.uk/virtualschool. Anyone who wants to find out more about the City Music Service can go to https://stokecms.org.uk/

    MIL OSI United Kingdom –

    January 25, 2025

  • MIL-OSI Economics: Messi’s MLS Cup Playoffs debut to stream free on MLS Season Pass on Apple TV

    Source: Apple

    Headline: Messi’s MLS Cup Playoffs debut to stream free on MLS Season Pass on Apple TV

    October 23, 2024

    UPDATE

    Lionel Messi’s historic MLS Cup Playoffs debut to stream free on MLS Season Pass on Apple TV

    Round One of the Audi 2024 MLS Cup Playoffs kicks off this Friday on MLS Season Pass, on apple.com, in Apple Store locations around the world, and on TikTok

    Lionel Messi makes his historic MLS Cup Playoffs debut this Friday, October 25, as the playoffs return to MLS Season Pass on Apple TV for a free primetime match. The top-seeded Inter Miami CF kicks off against Atlanta United FC at 8:30 p.m. EDT for the Round One Best-of-3 Series.

    After joining Inter Miami CF last season and leading the club to claim the Supporters’ Shield and single-season points record earlier this month, Messi is aiming to reach yet another milestone in his legendary career with a record 47th trophy.

    Fans can tune in on Apple TV to enjoy the match in its entirety, and have an incredible breadth of options to watch live, including through the Apple TV app on Apple devices, smart TVs and streaming devices, set-top boxes, and game consoles, and on the web at tv.apple.com.

    Additionally, top-ranked clubs — including defending MLS Cup and Leagues Cup champions Columbus Crew, Lamar Hunt U.S. Open Cup winners Los Angeles FC, and more — are vying to claim the 29th MLS Cup. MLS Season Pass on Apple TV is the only place fans can watch every playoff match with no blackouts, culminating with the MLS Cup final on December 7.

    “We’re offering Friday’s match to fans worldwide on MLS Season Pass at no cost to celebrate an amazing season and Messi making his first-ever appearance in the MLS Cup Playoffs,” said Eddy Cue, Apple’s senior vice president of Services. “This is a historic moment, and we’re thrilled that viewers have such an extensive array of ways to watch.”

    “Our partnership with Apple has brought MLS to global audiences in innovative ways, and making this opening playoff match between Inter Miami and Atlanta United available at no cost is another example of our commitment to connect with fans,” said Don Garber, MLS’s commissioner. “The Audi 2024 MLS Cup Playoffs are going to be intense from start to finish, so we’re excited to kick things off on Apple TV with this matchup of two great clubs featuring some of our sport’s biggest stars.”

    “The history books could be rewritten with the MLS Cup Playoffs, when you consider Inter Miami winning the Supporters’ Shield, breaking the record for most points in a season, and ultimately vying for the MLS Cup,” said Taylor Twellman, MLS Season Pass’s lead analyst. “The attention on the playoffs will be unlike anything we’ve seen, because with every trophy Messi wins, he becomes more and more the greatest of all time. And the best part is everyone is coming to try to knock him off the mantle. It’s going to be fun to watch it all unfold.”

    “Following 38 matchdays of fantastic regular-season soccer, we’re coming to the most beautiful time of the season,” said Sammy Sadovnik, MLS Season Pass’s Spanish-language play-by-play announcer. “Miami’s success will depend on both their ability to maintain the consistency they’ve displayed in the regular season and the talents of Leo Messi, the best player in the world.”

    More Ways to Watch

    In addition to broadcasting free on MLS Season Pass on Apple TV, Friday night’s match will also stream live on apple.com and in Apple Store locations across the world, including Apple Fifth Avenue in New York City, Apple Union Square in San Francisco, and Apple The Grove in Los Angeles, in addition to Apple Store locations in Australia, Brazil, Canada, Japan, Korea, and Mexico.

    Fans on TikTok can enjoy a special “Player Spotlight: Messi” presentation of Friday’s match where the camera will be trained on Messi as he lights up the pitch. The stream will broadcast live on the @MLS TikTok profile and be simulcast on the @InterMiamiCF TikTok profile, beginning five minutes before kickoff. This will mark the first time TikTok has streamed an entire live soccer match with a single-player focus. Fans can register on TikTok to stream the live event.

    The match will be provided at no additional cost to all DIRECTV residential satellite customers on channel 622 and all DIRECTV FOR BUSINESS customers on channel 9475.

    Round One Best-of-3 Series: Game One Schedule

    Friday, October 25
     Inter Miami CF vs. Atlanta United FC
    8:30 p.m. EDT

    Saturday, October 26
     LA Galaxy vs. Colorado Rapids
    11 p.m. EDT

    Sunday, October 27
     Orlando City SC vs. Charlotte FC
    7:30 p.m. EDT

    LAFC vs. TBD (winner of today’s Vancouver Whitecaps FC vs. Portland Timbers wild card match)
     9:45 p.m. EDT

    Monday, October 28
     FC Cincinnati vs. New York City FC
    6:45 p.m. EDT

    Seattle Sounders FC vs. Houston Dynamo FC
    9 p.m. EDT

    Tuesday, October 29
     Columbus Crew vs. New York Red Bulls
    6:45 p.m. EDT

    Real Salt Lake vs. Minnesota United FC
    9 p.m. EDT

    How to Watch on MLS Season Pass on Apple TV

    MLS Season Pass will broadcast every match of the postseason, including the MLS Cup final presented by Audi. MLS Season Pass is available through the Apple TV app on Apple devices, smart TVs, streaming devices, set-top boxes, and game consoles, as well as on the web at tv.apple.com. Fans can also access MLS Season Pass from the Apple TV app on Apple Vision Pro, where they can watch games alongside other apps in their physical space; within an Environment, so the screen feels 100 feet wide; and in Spatial Audio for an even more immersive viewing experience.

    Fans in more than 100 countries and regions can sign up for MLS Season Pass for $9.99 for the remainder of the season. Existing Apple TV+ subscribers can sign up for a subscription to MLS Season Pass for free for the remainder of the 2024 season. For more information, and to subscribe to MLS Season Pass, visit apple.co/_MLS_.

    Follow the MLS Cup Playoffs with the Apple Sports App

    The free Apple Sports app for iPhone is the best way for fans to stay up to date on scores, stats, standings, and their favorite clubs throughout the MLS Cup Playoffs.1 Users can easily navigate between scores and upcoming games, explore play-by-play information, team stats, lineup details, live betting odds, and tap to watch matches on MLS Season Pass in the Apple TV app.2 Apple Sports also seamlessly syncs with favorites selected within the My Sports experience, including in the Apple TV app and Apple News. With iOS 18 and watchOS 11, the Apple Sports app now offers Live Activities for all teams and leagues available in the app for the first time ever, delivering live scores and play-by-play info at a quick glance to a user’s iPhone and Apple Watch Lock Screens.3

    1. Available in the U.S., the U.K., and Canada.
    2. A subscription is required.
    3. Live Activities require iOS 18 and watchOS 11 or later.

    Press Contacts

    Sam Citron

    Apple

    citron@apple.com

    Hayden Zelson

    Apple

    h_zelson@apple.com

    Apple Media Helpline

    media.help@apple.com

    MIL OSI Economics –

    January 25, 2025
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