Source: Reserve Bank of India
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Category: Finance
-
MIL-OSI Economics: Money Market Operations as on October 23, 2024
-
MIL-OSI Asia-Pac: Speech by SITI at Asia Health Innovation Summit of StartmeupHK Festival 2024 (English only)
Source: Hong Kong Government special administrative region
Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Asia Health Innovation Summit of StartmeupHK Festival 2024 today (October 24):
Distinguished guests, ladies and gentlemen,
Good morning. It is my pleasure to speak at the Asia Health Innovation Summit, one of the highlights in the five-day StartmeupHK Festival. First of all, thank you for InvestHK and Brinc for bringing us an unparalleled platform to address the pressing health challenges and to push the boundaries of what is possible in life and health technology.
Hong Kong is pressing ahead to become an international innovation and technology (I&T) centre, as well as a health and medical innovation hub. With the rapid advancement of technology, we have been entering unchartered grounds in the life and health field. With five world top-100 universities, two world top-40 medical schools, eight State Key Laboratories and 16 InnoHK research centres which are life and health-related, Hong Kong has world-class research and development (R&D) capability in life and health technology. Hong Kong is one of the world’s leading fundraising hubs for biotechnology companies, and our vibrant start-up scene was ranked first in Asia among the world’s top-100 emerging ecosystems according to the Global Startup Ecosystem Report 2024.
To enhance the local I&T ecosystem, the Hong Kong Special Administrative Region Government has been actively promoting interactive development of the upstream, midstream and downstream sectors. To further promote upstream basic R&D, we will launch a $6 billion worth of subsidy programme to provide funding subsidies for local universities to set up cross-institutional and multidisciplinary life and health technology research institute(s) in Hong Kong. We have also earmarked $3 billion for the implementation of the Frontier Technology Research Support Scheme to accelerate cross-disciplinary researches in various frontier technology fields such as clinical medicine and health as well as gene and biotechnology spearheaded by the eight local UGC (University Grants Committee)-funded universities and renowned scholars from around the world.
Furthermore, we have launched the $10 billion worth of Research, Academic and Industry Sectors One-plus Scheme (RAISe+) last year, to fund research teams from universities with good potential to become successful start-ups to transform and commercialise their outstanding R&D outcomes. Investors here with us today and around the world are welcome to collaborate with the universities in Hong Kong and invest in their RAISe+ projects.
To promote downstream industry development, further to the $10 billion worth of New Industrialisation Acceleration Scheme launched last month, the Chief Executive has announced in his 2024 Policy Address last week to set up another $10-billion I&T Industry-Oriented Fund to form a fund-of-funds to channel more market capital to invest in specified emerging and future industries of strategic importance, including life and health technology. We will also redeploy $1.5 billion under the Innovation and Technology Venture Fund to set up funds jointly with the market, on a matching basis, investing in start-ups of strategic industries to further enhance Hong Kong’s start-up ecosystem. By pooling together government resources and market investment, we hope to provide greater momentum to our burgeoning life and health technology industry.
By giving Hong Kong’s unique advantages full play, we are confident in pooling together global innovation resources to accelerate the development of life and health technology, constructing a more comprehensive and globally competitive I&T industry chain through concerted efforts. We envision a future where the technology seamlessly integrates with healthcare to improve quality of life for all. I look forward to many more collaborations with our neighbouring Asian cities on this front.
Thank you and have a great day. -
MIL-OSI Economics: Voting Set to Open for Next ADB President
Source: Asia Development Bank
News Release | 24 October 2024
Read time: 1 minSHARE THIS PAGE
MANILA, PHILIPPINES (24 October 2024) — The Asian Development Bank (ADB) has officially closed the nomination period for its next President, with voting by ADB’s Board of Governors set to begin on 28 October 2024.
ADB Presidents are nominated from among its regional members and elected by the Board of Governors. Nominations for this election were accepted from 24 September to 23 October 2024.
Mr. Masato Kanda, currently Special Advisor to Japan’s Prime Minister and Minister of Finance, is the sole candidate for the position. Read his vision statement.
Governors will be invited to cast their votes on Mr. Kanda’s candidacy by 27 November 2024. The outcome will be announced on 28 November 2024.
Read more about the election process.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
SHARE THIS PAGE
-
MIL-OSI Asia-Pac: Speech by SITI at Cyberport Venture Capital Forum 2024 (English only)
Source: Hong Kong Government special administrative region
Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Cyberport Venture Capital Forum 2024 today (October 24):Simon (Chairman of the Board of Directors of the Hong Kong Cyberport Management Company Limited, Mr Simon Chan), Hendrick (Chairman of the Cyberport Investors Network Steering Group and Chairman of the Committee of the Artificial Intelligence Subsidy Scheme, Mr Hendrick Sin), Duncan (Legislative Council Member, Mr Duncan Chiu), distinguished guests, ladies and gentlemen, Good morning. It is my great pleasure to join you at this year’s Cyberport Venture Capital Forum (CVCF). True to its name, CVCF has been “connecting visionaries and cultivating the future”. It gathers the brightest minds from the innovation and technology (I&T) and the venture fund worlds, to brainstorm fresh ideas and approaches on how to support our start-ups in generating more breakthroughs and new solutions. I&T is the pivotal force to unlock new pathways for economic growth and societal advancement of our country and Hong Kong. At the Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC Central Committee) held in July this year, the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization also placed emphasis on Chinese modernisation by supporting technological innovation and developing new quality productive forces. This resonates with our theme today, “Innovation Challenger: Building New Venture Visions”, highlighting the indispensable role of venture financing to our I&T development. Cyberport epitomises the importance of venture capital to start-up development. The Cyberport community has attracted over $41 billion of investment, with startups securing more than $3 billion of funding last year alone. The Cyberport Investors Network, which comprises over 200 investment units including venture capital funds, private equity funds and family offices, has been a booming powerhouse, driving over $2.59 billion investment for start-ups over years. Our work does not stop there. To inject impetus into our I&T ecosystem, the Chief Executive announced a series of new and exciting I&T initiatives in his Policy Address last week. Let me share with you some of the key highlights. We will set up a $10 billion I&T Industry-Oriented Fund to channel more market capital to invest in specified emerging and future industries of strategic importance, including but not limited to artificial intelligence, robotics and smart devices. We will also optimise the existing Innovation and Technology Venture Fund by redeploying $1.5 billion to set up funds jointly with the market on a matching basis to invest in Hong Kong’s start-up ecosystem. Besides, we will also launch the Pilot I&T Accelerator Scheme which aims to attract professional start-up service providers with proven track records from local and outside Hong Kong to set up accelerator bases in Hong Kong, thereby fostering the robust growth of start-ups. The close collaboration among the Government, industry, academia, research and investment sectors is the cornerstone of our I&T development which is poised to reach new heights. Let us join hands in turning a new chapter in the ever-evolving technology realm. In closing, may I take this opportunity to express my thanks to each and every one of you who brings so much food for thought to Cyberport and the dynamic technology landscape of Hong Kong. I wish everyone here today a most fulfilling exchange. Thank you very much.
-
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: Equinor third quarter 2024 results
Source: GlobeNewswire (MIL-OSI)
Equinor (OSE: EQNR, NYSE: EQNR) delivered adjusted operating income* of USD 6.89 billion and USD 2.04 billion after tax in the third quarter of 2024. Equinor reported net operating income of USD 6.91 billion and net income at USD 2.29 billion. Adjusted net income* was USD 2.19 billion, leading to adjusted earnings per share* of USD 0.79.
Financial and operational performance
- Solid financial results
- Effective execution of extensive turnaround programme
- Strong cash flow from operations
Strategic progress
- All-time high production from the Troll field in the gas year
- Northern Lights facility completed and ready to receive CO2
- Acquired a 9.8 percent stake in Ørsted in October
Capital distribution
- Third quarter ordinary cash dividend of USD 0.35 per share, extraordinary cash dividend of USD 0.35 per share and fourth tranche of share buy-back of up to USD 1.6 billion
- Total capital distribution for 2024 in line with announced level of around USD 14 billion
Anders Opedal, President and CEO of Equinor ASA:
“With solid operational performance and results, we are well on track to deliver strong cashflow from operations in line with what we said at the capital markets update in February.”
“Over time, we have upgraded the capacity in the gas value chain. This has contributed to an all-time high production from the Troll field in the gas year. In the quarter, the Johan Sverdrup field delivered a production record of more than 756 000 barrels of oil in one day and reached the milestone of one billion barrels produced since the start-up five years ago. This strengthens our position to deliver safe and reliable energy to Europe.”
“We continue to invest in renewables and develop low carbon value chains. In the quarter, the world’s first commercial storage facility, Northern Lights, was completed and is now ready to receive CO2 from customers.”
Operational performance
Equinor delivered a total equity production of 1,984 mboe per day in the third quarter, down from 2,007 mboe in the same quarter last year.
On the Norwegian continental shelf (NCS), production increased by 2 percent compared to the third quarter 2023. This was due to high gas production from the Troll field and positive contributions from Aasta Hansteen and Oseberg. The increase was partially offset by extensive turnarounds, natural decline and reduced ownership in the Statfjord area.
Internationally, new wells contributed positively to the production. However, the international production was negatively impacted by offshore turnarounds and hurricanes in the United States.
In the quarter, Equinor completed nine offshore exploration wells with one commercial discovery. Four wells were ongoing at the quarter end. Two wells were expensed.
Equinor produced 677 GWh from renewable assets in the third quarter, up 82 percent from the same quarter last year. The increase was driven by the addition of onshore power plants in 2024. The offshore wind parks Dudgeon, Sheringham Shoal and Arkona also contributed positively to the production.
The progress at Dogger Bank A is slower than expected. Based on this, the expected growth in power production from renewable assets in 2024 is adjusted to around 50 percent.
Strategic progress
Equinor continued to optimise the portfolio through projects and strategic business development in the quarter.
On the NCS, the Johan Castberg production vessel was securely anchored at the field in the Barents Sea and hook-up is on track for production start before year-end. In the quarter, Troll B and C became partly powered from shore, contributing to the company’s efforts to strengthen competitiveness and halve operated emissions by 2030.
The recent acquisition of a 9.8 percent stake in Ørsted, gives Equinor exposure to premium offshore wind assets in operation and a solid project pipeline. In the quarter, Equinor also won an offshore wind lease in the U.S. Atlantic Ocean at an attractive price, adding optionality of around 2 gigawatt capacity to its existing portfolio. Furthermore, the company started recalibrating its portfolio of early phase renewable projects to reduce cost and focus business development toward core markets.
Equinor continues to progress its low carbon solutions portfolio. The Northern Lights facility was completed on estimated time and budget. In the UK, two key partner-operated low-carbon solution projects secured funding from the government.
Solid financial results
Equinor delivered adjusted operating income* of USD 6.89 billion. USD 5.88 billion come from Exploration and Production Norway, USD 407 million from E&P International and USD 207 million from E&P USA. Marketing, Midstream & Processing delivered adjusted operating income* of USD 545 million, driven by LNG, power trading and geographical arbitrage for LPG. Adjusted operating income* from Renewables was negative USD 115 million, as the costs of project development exceeded the earnings from assets in operation.
Cash flow from operating activities before taxes paid and working capital items amounted to USD 9.23 billion for the third quarter. Cash flow from operations after taxes paid* was USD 6.25 billion for the quarter, and USD 14.0 billion year to date.
Equinor paid one NCS tax instalment of USD 2.87 billion in the quarter and total capital expenditures were USD 3.14 billion. Organic capital expenditure* was USD 3.08 billion for the quarter and USD 8.73 billion year to date. The organic capital expenditure* guiding for the year is adjusted to USD 12-13 billion. After taxes, capital distribution to shareholders and investments, net cash flow* ended at negative USD 3.42 billion in the third quarter. The Norwegian state’s share of the share buy-back programme of USD 4.02 billion in July impacted the net cash flow*.
Adjusted net debt to capital employed ratio* was negative 2.0 percent at the end of the third quarter, compared to negative 3.4 percent at the end of the second quarter of 2024.
Capital distribution
The board of directors has decided an ordinary cash dividend of USD 0.35 per share and an extraordinary cash dividend of USD 0.35 per share for the third quarter of 2024. This is in line with communication at the capital markets update in February.
The board has decided to initiate a fourth and final tranche of share buy-back for 2024 of up to USD 1.6 billion. The fourth tranche will commence on 25 October and end no later than 31 January 2025. This fourth tranche will complete the announced share buy-back programme of up to USD 6 billion for 2024. It will also conclude total capital distribution for 2024 of around USD 14 billion.
The third tranche of the share buy-back programme was completed on 16 October 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed by the Norwegian state.
—
* For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures.
—Further information from:
Investor relations
Bård Glad Pedersen, senior vice president Investor relations,
+47 918 01 791 (mobile)Press
Sissel Rinde, vice president Media relations,
+47 412 60 584 (mobile)This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act
Attachments
-
MIL-OSI: Equinor to commence fourth tranche of the share buy-back programme for 2024
Source: GlobeNewswire (MIL-OSI)
Equinor (OSE: EQNR, NYSE: EQNR) will on 25 October 2024 commence the fourth and final tranche of up to USD 1.6 billion of the share buy-back programme for 2024, as announced in relation with the third quarter results 24 October 2024.
In this fourth tranche, shares for up to USD 528 million will be purchased in the market, implying a total tranche of up to USD 1.6 billion including shares to be redeemed from the Norwegian State. The tranche will end no later than 31 January 2025.
Equinor announced at the Capital Market Update in February 2024 a two-year share buy-back programme of total USD 10-12 billion for 2024-2025, with up to USD 6 billion for 2024, including shares to be redeemed from the Norwegian State. The share buy-back programme will be subject to market outlook and balance sheet strength and be structured into tranches where Equinor will buy back shares for a certain value in USD over a defined period. For the fourth tranche for 2024, Equinor will be entering into a non-discretionary agreement with a third party who will execute repurchases of shares and make its trading decisions independently of the company.
Commencement of new share buy-back tranches after the fourth tranche for 2024 will be decided by the board of directors on a quarterly basis in line with the company’s dividend policy and will be subject to board authorisation for share buy-back from the company’s annual general meeting and agreement with the Norwegian State regarding share buy-back (as further described below).
The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares purchased as part of the fourth tranche for 2024 will thus be cancelled through a capital reduction at the annual general meeting of the company in May 2025.
Further information about the share buy-back programme and the fourth tranche:
The fourth tranche of the share buy-back programme for 2024 is based on an authorisation granted to the board of directors at the annual general meeting of the company held on 14 May 2024. According to the authorisation, the maximum number of shares to be purchased in the market is 92 million, of which 52,868,185 remain available per commencement of the fourth tranche for 2024 (buy-backs made under previous tranches in the authorisation period taken into account). The minimum price that can be paid per share is NOK 50, and the maximum price is NOK 1,000. The authorisation is valid until the earliest of 30 June 2025 and the annual general meeting of the company in 2025.
An agreement between Equinor and the Norwegian State regulates the State’s participation in the share buy-back: at the annual general meeting of the company in May 2025, the State will, as per proposal by the board of directors, vote for the cancellation of shares purchased in the market pursuant to the board authorisation, and the redemption and cancellation of a proportionate number of its shares in order to maintain its ownership share in the company at 67%. The price to be paid to the State for redemption of the State’s shares shall be the volume-weighted average of the price paid by Equinor for shares purchased in the market plus an interest rate compensation, adjusted for any dividends paid.
In the fourth tranche for 2024, shares will be purchased on the Oslo Stock Exchange and possibly other trading venues within the EEA. Transactions will be conducted in accordance with applicable safe harbour conditions, and as further set out in the Norwegian Securities Trading Act of 2007, EU Commission Regulation (EC) No 2016/1052 and the Oslo Stock Exchange’s Guidelines for buy-back programmes and price stabilisation from February 2021.
The board of directors will propose to the annual general meeting of the company to be held in May 2025, to cancel shares purchased in the market in this fourth tranche for 2024 and to redeem and cancel a proportionate number of the State’s shares per the agreement with the State. Based on renewal of this agreement, shares purchased under subsequent tranches of the two-year share buy-back programme for 2024-2025 and a proportionate number of the State’s shares will follow a similar process at the annual general meetings of the company in 2025 and 2026, respectively.
This is information that Equinor is obliged to make public pursuant to the EU Market Abuse Regulation and that is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
Further information from:
Investor relations
Bård Glad Pedersen, senior vice president Investor Relations,
+47 918 01 791Media
Sissel Rinde, vice president Media Relations,
+47 412 60 584 -
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 percentagesIFRS 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 percentagesNon-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
Dassault Systèmes Press Contacts
Corporate / France Arnaud MALHERBE
+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
-
MIL-OSI: WISeKey Launches its Enhanced INeS AI Security Broker Solution
Source: GlobeNewswire (MIL-OSI)
WISeKey Launches its Enhanced INeS AI Security Broker Solution
Geneva, Switzerland – October 24, 2024 – WISeKey International Holding (“WISeKey”, SIX: WIHN, NASDAQ: WKEY), a global leader in cybersecurity digital identity and Internet of Things (IoT) innovations operating as a holding company, today announced the launch of the enhanced INeS AI Security Broker solution. This innovative upgrade integrates Artificial Intelligence (AI) with Public Key Infrastructure (PKI) technologies, revolutionizing how credentials are remotely and securely verified. The new solution manages the activation, deactivation, revocation, renewal, and secure update of IoT devices and business applications with end-to-end protection.
As organizations increasingly incorporate AI-powered applications into their operations, the number of digital identities in circulation continues to rise, creating challenges not just in scale but also in security and management complexity. To address these evolving needs, WISeKey’s INeS AI Security Broker introduces a smarter, automated approach to managing digital certificates and identities across expanding IoT networks.
Key Features of the INeS AI Security Broker:
- Seamless Integration: Easily compatible with any IoT platform, the INeS AI Security Broker supports the secure issuance of digital certificates, lifecycle management, and rapid authentication for vast networks of devices.
- AI-Powered Insights: The integration of machine learning enables automatic pattern recognition and anomaly detection from sensor data, such as temperature, pressure, humidity, and vibration, providing real-time insights and enhanced security.
- Proactive Threat Management: AI-enhanced PKI solutions mitigate risks by automating security processes and preventing potential threats before they escalate. Predictive analytics allow organizations to pinpoint vulnerabilities and address misconfigurations swiftly.
The surge in digital identities and devices places significant strain on traditional PKI systems, increasing operational burdens for system administrators. Any disruption or mismanagement in digital identity management could result in severe security risks and operational downtime. To counter these challenges, WISeKey’s AI-powered PKI solutions streamline processes, enabling organizations to efficiently manage their digital certificates while significantly reducing the risk of breaches and operational failures.
Addressing Key Challenges in AI-PKI Integration:
While the advantages of integrating AI with PKI systems are clear, adoption remains low due to the technical complexity of these domains. WISeKey seeks to bridge this gap through strategic partnerships, offering organizations access to tailored AI and PKI solutions that meet their specific security needs.As AI continues to transform the cybersecurity landscape, its role in managing and securing digital identities will become indispensable. The combination of PKI and AI will help organizations protect their digital assets, ensure compliance with evolving regulations, and maintain resilient digital infrastructures.
Strategic Implications for the Future:
The integration of AI into PKI not only enhances security but also builds trust by embracing cutting-edge approaches to digital identity management. WISeKey’s technology enables organizations to stay ahead of emerging threats, positioning them to manage the growing complexity of IoT networks while ensuring that their infrastructure is secure and compliant.WISeKey remains committed to advancing its technology platform and forming long-term relationships with strategic partners, enabling high-profile clients to leverage state-of-the-art solutions in cybersecurity, digital identity, AI, and IoT.
For more information on the INeS AI Security Broker and WISeKey’s suite of cybersecurity solutions, visithttps://www.wisekey.com/device-identity-lifecycle-management/. .
About WISeKey
WISeKey is a Swiss-based computer infrastructure company specializing in cybersecurity, digital identity, blockchain, Internet of Things (IoT) solutions, and post-quantum semiconductors. As a computer infrastructure company, WISeKey provides secure platforms for data and device management across industries like finance, healthcare, and government. It leverages its Public Key Infrastructure (PKI) to ensure encrypted communications and authentication, while also focusing on next-generation security through post-quantum cryptography.WISeKey’s work with post-quantum semiconductors is aimed at future-proofing its security solutions against the threats posed by quantum computing. These advanced semiconductors support encryption that can withstand the computational power of quantum computers, ensuring the long-term security of connected devices and critical infrastructure. Combined with its expertise in blockchain and IoT, WISeKey’s post-quantum technologies provide a robust foundation for secure digital ecosystems at the hardware, software, and network levels.
Disclaimer
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FinSa’s predecessor legislation or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.
Press and Investor Contacts
WISeKey International Holding Ltd
Company Contact: Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
info@wisekey.comWISeKey Investor Relations (US)
The Equity Group Inc.
Lena Cati
Tel: +1 212 836-9611 / lcati@equityny.com
Katie Murphy
Tel: +1 212 836-9612 / kmurphy@equityny.com -
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.eeAttachment
-
MIL-OSI Economics: Public Policies in Focus as APEC Pushes for Sustainable Finance Solutions Lima, Peru | 23 October 2024 APEC Finance Ministers’ Process
Source: APEC – Asia Pacific Economic Cooperation
The growing urgency to address climate change and environmental challenges has propelled sustainable finance into the spotlight as governments, businesses and investors increasingly prioritize sustainability considerations. This shift is transforming the financial landscape and driving capital toward projects that promote sustainability from renewable energy infrastructure to social impact initiatives.
Against this backdrop, APEC Finance Ministers from across the APEC region convened in Lima on Sunday to discuss strategies for promoting low-carbon, climate-resilient economies. Representatives from international organizations, business leaders, and experts also offered their views on transition to a sustainable economy and the potential for investment it may bring.
Opening the High-Level Event on Sustainable Finance: Public Policies in Action for Sustainable Development, José Arista Arbildo, Peru’s Minister of Economy and Finance, emphasized the importance of recognizing the interconnection between economic growth, environmental sustainability and social well-being.
“We are facing unprecedented global environmental challenges such as climate change, biodiversity loss and natural resource scarcity,” Minister Arista said. “These challenges not only pose a threat to the environment, but also have significant implications for economic stability and the well-being of the populations of our economies.”
Sustainable finance, a broad term that refers to investments aimed at generating both financial returns and positive environmental or social outcomes, has seen unprecedented growth. With the global economy increasingly focused on mitigating climate risks and achieving long-term sustainable development, financial institutions are responding by integrating sustainability criteria into their portfolios.
“The strengthening of economic and financial systems is necessary to ensure their efficient adaptation to new paradigms that will make it possible to promote environmental, social and economic sustainability,” he added. “In this context, public policies are a transformative tool for integrating sustainability into the financial framework of our economies.”
To successfully embed sustainability into the financial system, economies must embrace a strategic vision that shapes public policies promoting environmentally responsible practices.
“Strategic planning for this integration is not only an ethical imperative, but also an economic necessity,” Minister Arista explained. “Providing a predictable framework for sustainable finance is one such policy.”
During the panel discussion, experts called for holistic strategies that harmonize economic and financial activities to foster competitiveness and productivity. They stressed the importance of setting clear, long-term sustainability goals including the importance of governance frameworks and spaces for coordination; and fostering collaboration among stakeholders.
The conversation also tackled the practical challenges member economies face in implementing sustainable financial practices. It further underscored the critical role of public-private partnerships in overcoming obstacles such as limited funding and regulatory barriers.
APEC Business Advisory Council Chair, Julia Torreblanca, echoed the sentiment, highlighting the importance of business and public sector collaboration in driving sustainable development.
“Sustainable finance is a joint endeavor where the private sector plays a critical role,” Torreblanca said. “However, it needs a policy environment that fosters innovation, facilitates sustainable investments and nurtures public-private collaboration.”
According to experts, the transition to a sustainable economy presents significant investment opportunities despite the challenges. From renewable energy projects to sustainable agriculture, sectors aimed at reducing carbon emissions and promoting social equity are poised for growth. Experts also explored the potential for innovative economic instruments to support sustainability initiatives.
One key takeaway from the event was the importance of fostering partnerships between governments, businesses and financial institutions. Such collaborations are seen as essential for creating innovative financial instruments and policies that will enhance the implementation of sustainable finance initiatives across the APEC region.
“Being appropriately prepared to address emerging challenges and seize opportunities along the path to sustainable finance is essential,” Minister Arista concluded. “Public policies are thus a powerful tool that can guide us. If designed and implemented correctly, they can transform our economies and societies.”
For further details, please contact:
APEC Media at [email protected]
-
MIL-OSI United Kingdom: CMA launches programme of work to support growth mission
Source: United Kingdom – Executive Government & Departments
The CMA announces a new growth-focused work programme from its Microeconomics Unit alongside publication of its third State of Competition report.
To support the UK government’s growth mission and Industrial Strategy, the Competition and Markets Authority (CMA) has today announced the next programme of work to be conducted by economists in the CMA’s specialist Microeconomics Unit (MU).
In its recently published Industrial Strategy Green Paper, the UK government noted the importance of “competitive and innovative business ecosystems, particularly in industries with low market dynamism and high barriers to entry” and the need for “competitive markets to improve efficiency and improve the performance of interconnected value chains, ultimately benefiting consumers through better prices, quality, and choice”.
The CMA’s new MU Growth Programme will focus on critical drivers and blockers of growth including: how easily or not new technology spreads across the economy; the impact of upstream market power on economic performance and supply chain resilience; and how competition impacts investment.
This new work programme follows the CMA’s third State of Competition report, also published today.
Sarah Cardell, Chief Executive of the CMA, said:
At a time of tremendous opportunity for the UK, effective competition has a key role to play in driving economic growth, investment, and innovation. That’s why the CMA is launching the new MU Growth Programme to help inform the government’s growth mission and Industrial Strategy.
This follows our latest State of Competition Report, which indicates that levels of effective competition in the UK have weakened slightly over time, although by less than in other economies, and that levels of business dynamism have fallen. The report reinforces the important role of effective competition enforcement to drive greater business dynamism and sustained innovation, productivity, and growth across the economy.
The CMA’s third State of Competition report is the most comprehensive assessment to date of how competition is working in the UK. Today’s report reinforces the importance of continued action by the CMA and wider UK government to keep markets open, competitive, and dynamic.
Key findings of the CMA’s third State of Competition report include:
-
Indicators suggesting levels of competition across the economy have weakened slightly over time, but at a slower rate than some other advanced economies. Markups – the difference between the selling price of a good or service and the amount it costs to make have risen by around 10% in Great Britain over the past 25 years. And the increase in markups is greater among firms that already have higher markups.
-
Business dynamism has fallen across all measures, cementing concerns identified in the 2022 State of Competition report – as referenced in the UK government’s Industrial Strategy Green Paper. Competition between firms jostling for market share spurs growth, but firm entry and exit rates have declined across most sectors. At the top of most industries, the largest firms are more likely to keep their position over multiple years , while new entrants are less successful than they used to be in displacing them.
-
Technology plays an important role in markups. Investment in upfront fixed costs (like research and development, software, and branding) have become increasingly important for firms to compete effectively. As a result, markups in firms making these investments are higher, to cover upfront costs. But where investments in technology create barriers to entry, this can also lead to lower levels of effective competition.
-
In an environment where dynamism is falling, and technological change may be benefitting larger firms, effective competition policy – merger control and the enforcement of competition law – is critical to keep market power in check. Competition may be weaker in some ‘upstream’ sectors, where markups tend to be higher and trade contributes positively to competition – markups are lower in sectors exposed to international trade.
The CMA’s MU Growth Programme will focus analysis across a range of issues including:
- barriers to the spread of new technology and knowledge across the economy, recognised in the report as a potential barrier to dynamism and growth
- the role of competition in driving and directing productive investment
- the strength of competition along supply chains, and the impact of ‘upstream’ market power on downstream sectors – reflecting the importance of competitive markets for key inputs to UK economic performance and resilience
- pro-growth industrial policy interventions, and lessons from past experience and other countries, to help inform the UK government’s Invest 2035
Notes to editors
- The previous State of Competition Report was published in 2022.
- Recognising the importance of competition, in 2020 the then Chancellor and the Business Secretary asked the CMA to regularly publish a report assessing the state of competition in the UK economy over the last 25 years, which will continue under the new government.
- For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.
Updates to this page
Published 24 October 2024 -
-
MIL-OSI United Kingdom: The Maldives WTO Trade Policy Review: UK Statement, October 2024
Source: United Kingdom – Executive Government & Departments
The UK’s Permanent Representative to the World Trade Organization (WTO) and UN in Geneva, Simon Manley, gave a statement during The Maldives Trade Policy Review.
Chair, let me offer a warm welcome to the delegation from the Maldives led by the Minister of State. Let me also express my gratitude, both to him and his team for their report and to the WTO Secretariat, for their report. I also thank you Chair, for your very good introduction and let me also pay tribute to our Discussant, my very good friend, Ambassador Murdoch, for an intervention. If I may say, for those of us that are of a cricketing bent, Ambassador, combined the elegance and power of your good friend Sir Viv Richards with the intellectual rigour of my own hero Mike Brearley.
Reports analysis
-
Chair, the Maldives experience exemplifies the benefits of open trade to sustainable development. You spoke of it as a shining example, I would agree with that. That openness has clearly been a factor in enabling significant infrastructure development, an increasingly diverse tourism sector (in which so many of us aspire to be customers) and a highly sustainable fishing industry – to which both the Minister and Ambassador Murdoch paid tribute.
-
While the COVID-19 pandemic had a severe impact on the Maldives’ economy, as it did on ours and so many around this organisation, the tourism industry clearly drove forward a strong recovery. A tourism industry which is deeply appreciated by Brits, who come in such droves that the UK consistently features in the top four nationalities visiting your country. You may detect a theme here, Minister.
-
The reports also demonstrate the continued strength in the Maldives’ trade in services sector, which increased by 47% from 2017 to 2022, driven by a 64% increase in travel service exports. If I may say, yet another example of how trade in services can drive sustainable development in developing countries, which I think is a wider point for this organisation.
-
Redistribution of that revenue from trade has allowed Maldives, as others have said, to transform from an LDC to an upper middle-income country, classed as a high human development country according to the Human Development Index. So congratulations Minister, congratulations to you, your government and your team here.
Bilateral trade
-
Chair, as a fellow Commonwealth member, indeed you, the Maldives, and Ambassador Murdoch, we are coming together in Samoa for the Commonwealth Heads of Government meeting (CHOGM), the UK – Maldives relationship is marked by rich, historical and contemporary ties that are woven into every facet of the enduring friendship between our Governments, our businesses and our people.
-
We collaborate closely on governance, security, counter terrorism, climate change, environmental protection. And if I may venture out of this building for a second, also on Human Rights, where if I may say, Maldives has played such an important role here in Geneva, punching well above its weight, particularly in its support to fellow SIDS and LDCs, through its role as the co-chair of the Contact Group on HRC membership. And, of course, trade are key areas of collaboration between our two nations. And they are areas of partnership which we will both be seeking to strengthen in Samoa this week.
-
Protecting the Maldives’ thriving marine biodiversity, is a key objective in our relationship – not just for the enjoyment of the British tourists but also for the future and preservation of our planet. We have a shared interest in the entry to force of Fish I and the early conclusion of Fish II.
-
Our ties extend to our businesses as well. Total trade in goods and services between the UK and Maldives was worth over half a billion pounds in the four quarters to the end of Q1 2024, and we are proud to be the third largest market for the Maldives’ merchandise exports, those fisheries that Ambassador Murdoch referred to.
-
A British Business Group was launched in May 2024, as an opportunity to promote trade, and foster business and commercial partnerships and other links between our two nations.
Business environment and women in trade
-
Chair, let me encourage Maldives to continue its work to promote a business-friendly environment that supports economic diversification. And if I may add, with two hats, both as UK PR and co-chair on the working group on trade and gender we value its efforts in advancing women’s economic empowerment and its engagement on trade and gender equality at the WTO.
-
Equally, let me highlight the SME Development Financing Corporation, established by the Maldives in 2019 to support financial inclusion for MSMEs, women and youth, again very admirable initiatives.
UK support programmes [the Maldives Development Partnership]
-
As I previously alluded to, a key area of partnership between our two nations is through our mutual environmental objectives. Under the Blue Planet Fund, the Ocean Country Partnership Programme focuses extensive work on Marine Pollution and Biodiversity. Meanwhile the Climate Action for a Resilient Asia programme is funding a Climate Finance Network programme on transforming the Blue Economy with Maldives MSME Empowerment and Blended Finance.
-
This year, in these few weeks ahead of us, when we have the three Rio Convention COPs meeting in quick succession, it is essential that we work together to deliver on our commitments across all issues of environmental sustainability, an issue of such critical importance to the Maldives, as the Minister reminded us at the start.
WTO and multilateral institutions
-
The continued commitment Maldives has shown to the Multilateral Trading System, as a founding member of the WTO, and, more recently, Maldives’ engagement with discussions on environmentally sustainable trade practices is welcome. Others have suggested other areas where we could increase that participation here.
-
We have also been pleased to see the progress that Maldives have made on the ratification of the Trade Facilitation Agreement, supported, I might add by the UK’s Accelerate Trade Facilitation programme. Just this month British colleagues were in Maldives for the validation of their National Trade Facilitation roadmap. We look forward to working with the Maldives to implement further measures.
-
Fisheries, as we’ve reflected, is a huge pillar of the Maldivian economy, and the practice of pole and line fishing is one of the most sustainable methods for fishing. We urge Maldives to ratify Fish I, which will help us to deliver on SDG mandate 14.6. The UK is fully behind Maldives, and others, not least our distinguished permanent representative from Iceland, in securing agreement on the second phase of negotiations on Fisheries Subsidies at the very earliest possible opportunity.
Conclusion
-
In conclusion, Chair, let me thank you, the Discussant, and the whole delegation from the Maldives for your work on this Review and the accompanying Reports.
-
Chair, Maldives is known as a beautiful holiday destination – many newlyweds travel from far and wide to see the rare white sands beaches and diverse sea life. The story these reports tell of the Maldives’ trade and its coupling with the WTO, show a match made in heaven – a true case study for the story of free, fair and open trade that the multilateral system allows us to see.
Thank you very much indeed.
Updates to this page
Published 24 October 2024 -
-
MIL-OSI Asia-Pac: Opening keynote address by Permanent Secretary for Financial Services and the Treasury (Financial Services) at AIMA APAC Annual Forum 2024 (English only) (with photos)
Source: Hong Kong Government special administrative region
Following is the opening keynote address by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the AIMA (Alternative Investment Management Association) APAC (Asia-Pacific) Annual Forum 2024 today (October 24):
Jack (Chief Executive Officer of AIMA, Mr Jack Inglis), JiÅ™í (Deputy Chief Executive Officer and Global Head of Government Affairs, AIMA, Mr JiÅ™í Król), Murray (Chairman of AIMA Hong Kong Executive Committee, Mr Murray Steel), Michael (Managing Director and Co-Head of APAC, AIMA, Mr Michael Bugel), distinguished guests, ladies and gentlemen,
Good morning. It gives me great pleasure to address you all today at the 2024 APAC Annual Forum of the Alternative Investment Management Association (AIMA).
With more than 2 000 corporate members from over 60 locations over the world and significantly in the Asia-Pacific region, AIMA is a strong global voice of the alternative investment industry. The impressive congregation of the bright minds of alternative asset managers, financial regulators, legal and accounting professionals, fintech experts and many more here today speaks volumes about the keen interest of industry players to share views on the continued growth of the global financial markets. I can see that AIMA Hong Kong has done a fantastic job in organising the Forum and putting together a very rich agenda for us to ponder the challenges and opportunities in the evolving global environment.
For now, as a precursor to the discussions at the various panels later today, allow me to share with you how we see Hong Kong’s capital market landscape through the lens of “resilience”, “reform”, and “responsibility”.
Resilient market
The Hong Kong stock market as measured by the Hang Seng Index has registered a growth of over 20 per cent year-to-date. This puts us among the top performing international markets. Trading has been vibrant, with long-term institutional investors including fund managers and investment banks from the region and both sides of the Atlantic making up the majority of the buy side value over the recent period. And in September, the Hong Kong Exchanges and Clearing Limited (HKEX) welcomed in the second-largest initial public offering (IPO) globally this year so far, raising over US$4.5 billion. The derivatives market is equally active. An average of 1.5 million futures and option contracts were traded daily in the first nine months of 2024, an increase of 12 per cent year-on-year and a record high.
On the asset and wealth management front, Hong Kong managed about US$4 trillion of assets last year, over 10 times our GDP (Gross Domestic Product). Net fund inflows jumped 3.4 times year-on-year. With over 650 private equity and venture capital firms, Hong Kong hosts a fund pool of private equity capital under management of over US$230 billion, putting us at Asia’s second place following the Mainland. It is no coincidence that we are also Asia’s largest hedge fund hub and cross-boundary wealth management centre. Added to these, we are home to some 2 700 single family offices.
On fixed income, Hong Kong maintains its position as the primary location for arranging international bond issuances from Asian entities. Last year, close to US$90 billion worth of international bond issuances from the region were arranged in Hong Kong, equivalent to around a quarter of the market.
The strong economic support measures recently announced by the Mainland central authorities has no doubt played a key role in the market’s ongoing improvement. Weaving into the market resilience is the awareness and hard work to keep up the robustness of our trading and clearing systems buttressed with sound risk-management measures. Going hand-in-hand with such discipline is the focus on diversifying our financial platform so that market participants can play out their best and capture the opportunities when they arise.
In the public market, for example, we have introduced new listing avenues for pre-revenue biotech companies, innovative enterprises with weighted voting rights structures, and specialist tech companies, as well as a new concessionary route to secondary listings for overseas issuers. Overall, more than 300 new-economy companies have listed on the HKEX. They include 66 pre-revenue biotech companies, making Hong Kong one of the top fundraising hubs for healthcare companies.
To further attract listings of international and Mainland enterprises, the Securities and Futures Commission (SFC) and HKEX announced last week specific timelines in the vetting procedures of listing applications to provide greater certainty over the listing timeframe.
Turning to the private market, we introduced the limited partnership fund (LPF) structure in August 2020 to allow private funds to be registered in the form of limited partnerships. Since its introduction, the number of LPFs established in Hong Kong has seen an average 40 per cent annual growth and will soon hit the 1 000 mark.
Hong Kong has over 4 000 start-ups. In addition, as a result of the good work of the Office for Attracting Strategic Enterprises (OASES), over 100 strategic innovation and technology international enterprises will set up or expand their businesses here, bringing in a total investment of more than HK$52 billion so far. Next month, OASES will announce a new batch of strategic enterprises including artificial intelligence and big data analytics companies from different parts of the world to have a presence in Hong Kong. All these will offer investment possibilities for the alternative investment industry.Continuous strategic reform
To seek continuous improvements, harness change and deliver results is the driving principle in furthering the development of our capital markets. Continuous strategic reform is indeed a key theme of the Policy Address delivered by the Chief Executive of the Hong Kong Special Administrative Region last Wednesday.
To enhance our international financial centre status and investment environment, the Policy Address has announced a number of reform proposals and I would like to highlight some of them here.
Notably, to support the development of the asset and wealth management industry, particularly privately offered funds, private equities and family offices, we will soon consult the industry on proposals to enhance the tax exemption arrangements for related entities through three main areas, first, expanding the definition of “fund” to cover pension funds and endowment funds so as to strengthen the development of “patient capital”; second, increasing the types of transactions eligible for tax concessions for funds and single family offices to cover emission derivatives or emission allowances, insurance-linked securities, loans and private credit investments, virtual assets, etc; and thirdly, removing the requirements for certification and hurdle rate for carried interest in seeking such tax exemption arrangements. We look forward to hearing your views when the details are available, which should be very soon.
On market infrastructure, we will upgrade the Central Moneymarkets Unit (CMU) to facilitate the settlement of assets denominated in different currencies by international investors. The fixed income market infrastructure will be enhanced by exploring the set-up of a central clearing system for RMB (Renminbi)-denominated bond repurchase (repo) transactions, making RMB sovereign bonds issued in Hong Kong a more popular choice of collateral in offshore markets.
We will also make good use of the currency swap agreement, and the Hong Kong Monetary Authority (HKMA) will expand the night-time, cross-boundary service capability of Hong Kong’s RMB Real Time Gross Settlement System to facilitate global settlement in offshore RMB markets, and explore the provision of more diversified channels for obtaining offshore RMB financing.
We will continue to enhance our market infrastructure to enrich the offshore RMB business ecosystem in Hong Kong. As you know, Hong Kong currently processes about 80 per cent of global offshore RMB payments and has the largest offshore RMB pool, reaching RMB1.1 trillion in end-August this year.
Looking beyond the Asia-Pacific region, we seek to establish connections with new and emerging markets, including the Middle East, to open up new capital sources and enable international investors to bolster their portfolio management through Hong Kong’s capital markets. Following the listing of Asia’s first ETF (exchange traded fund) tracking the Saudi Arabia market in Hong Kong in November 2023, we are glad to see the listing of two ETFs in the Middle East that track Hong Kong stock indices soon.
The Chief Executive’s Policy Address also announced that we will build an international gold trading market and commodity trading ecosystem, leveraging on our advantages as one of the world’s largest import and export markets for gold by volume, and foster the development of the related industry chain, ranging from investment transactions, financial trading, derivatives, insurance, storage, to trade and logistic services. We will set up a working group comprising experts and market players to work out the details.
One cannot actually leave the reform agenda without touching on the changes brought about by technology. Last year, we took the lead in introducing a virtual asset (VA) service provider regulatory regime that allow the operation of licensed VA exchanges. We will introduce a dedicated piece of legislation on the regulation of fiat-referenced stablecoins before year end. Then we will have another look at the VA over-the-counter landscape followed by public consultation, while hammering out a licensing regime for VA custodian service providers.
Renewed responsibility
This leads naturally to my third “R”, “Responsibility”. Introducing regulatory regimes for a digitally enabled financial medium to fulfil the twin objectives of fostering market development while protecting investor interests and managing risks is a responsible policy move.
We have, however, a heavier responsibility towards the Earth, our planet. Hong Kong takes our carbon emission net zero commitment seriously and we leverage our financial services platform to contribute to the green and sustainability global efforts. We are in a very good position to channel international capital to sustainable causes. This is best exemplified by over 230 ESG funds authorised by the SFC as of June this year, almost quadrupling the number of funds three years ago. Together, these funds manage close to US$170 billion of assets.
For the third year in a row, Hong Kong topped the Asian market in terms of the volume of green and sustainable bonds being arranged. In 2023 alone, the total green and sustainable debt issued in Hong Kong exceeded US$50 billion.
We will continue to incubate green and sustainable investment by fostering a conducive environment with transparent information. As the Policy Address makes clear, we will launch a roadmap on the full adoption of the ISSB (International Sustainability Standards Board) Standards (International Financial Reporting Standards – Sustainability Disclosure Standards) within this year, leading Hong Kong to be among the first jurisdictions to align its local requirements with ISSB Standards. On this, we have been making good progress, including the introduction of new climate-related disclosures requirements for listed companies by HKEX for implementation under a phased approach from 2025; as well as the development of the Exposure Drafts for Hong Kong’s sustainability reporting standards (Hong Kong Standards) in full alignment with ISSB Standards by the Hong Kong Institute of Certified Public Accountants (HKICPA). A public consultation on the Exposure Drafts is now underway. The roadmap will provide a transparent and well-defined pathway on sustainability reporting for listed companies and different sectors in the financial services industry, and support and assist businesses in making preparations for the implementation of the Hong Kong Standards.
A first edition of the Hong Kong Taxonomy for Sustainable Finance is already in the toolbox since May this year. It is now undergoing revision, and is in the next phase of development where the scope of sectors and economic activities to be covered will be expanded to include transition activities, etc.
As another piece of market infrastructure to connect capital with climate-related products and opportunities in Hong Kong, the Mainland, Asia and beyond, Core Climate, launched by HKEX, serves to facilitate effective and transparent trading of carbon credits and instruments to support the global transition to net zero. It offers quality carbon credits from internationally certified projects, covering forestry, solar, wind and biomass initiatives. It is currently the only carbon marketplace that offers Hong Kong dollar and RMB settlement for the trading of international voluntary carbon credits.
Closing
The IMF (International Monetary Fund) has just reconfirmed its forecast of world economic growth for 2024 to be 3.2 per cent. The same growth rate is forecast for 2025, slightly revised downward from its earlier forecast of 3.3 per cent but with a loud warning of instability and uncertainty in the horizon. As policy makers, we all have the responsibility to provide an enabling environment for businesses and individuals to thrive.
The Asia-Pacific region can provide a source of growth amidst the evolving global landscape despite the uncertainties. Hong Kong, with our unique combination of the China advantage and global strengths, will continue to sharpen our financial platform and capital markets through strategic reform and responsible development. On this note, I would like to exercise my privilege of being on the podium to add a fourth “R” and wish you a most rewarding day of discussions and networking at the Forum. Thank you.
-
MIL-OSI Australia: Investigations into lung cancer and into epigenetics recognised with 2 x $1.25 million CSL Centenary Fellowships
Source: CLS Limited
Investigations into lung cancer and into epigenetics recognised with 2 x $1.25 million CSL Centenary Fellowships
Why lung cancer is on the increase: Dr Clare Weeden, WEHI, Melbourne How understanding gene switching could lead to new drug classes: Dr Qi Zhang, South Australian immunoGENomics Cancer Institute (SAiGENCI), University of Adelaide
MELBOURNE – 24 October 2024 – Two Australian scientists have each been awarded CSL Centenary Fellowships, valued at $1.25 million over five years.
The Fellowships were presented at the Australian Academy of Health and Medical Sciences Annual Meeting on Thursday 24 October 2024 in Adelaide.
Lung cancer is now our deadliest cancer, despite the reduction of smoking in recent decades. Twenty-five per cent of people with lung cancer have never smoked.
Over the past 12 years, Dr Clare Weeden has investigated why lung cancer is on the rise in cities around the world. She has shown that we all have potentially cancerous cells in our lungs which can be activated by repeated exposure to cigarette smoke or urban pollution.
The $1.25 million CSL Centenary Fellowship has enabled Dr Weeden to return from the Crick Institute in London to establish her own research laboratory at WEHI in Melbourne. She plans to identify how the chromatin that packages up our DNA is changed by inflammation in lung cells. Then she will investigate how these cellular changes initiate cancers and how cells then become resistant to targeted therapies.
Dr Weeden’s ultimate career aim is to determine if abnormal lung cell states are reversible.
Dr Qi Zhang is investigating the fundamental processes by which our cells turn genes on and off as they change identities, for example as stem cells develop into mature cell types. She hopes to learn how these processes can break down and lead to cancer and other diseases.
Dr Zhang is a team leader at the South Australian immunoGENomics Cancer Institute (SAiGENCI), University of Adelaide.
“We want to know what’s happening with the packaging of our DNA in a healthy cell,” she says. “Then we want to know what is going wrong in a cancer cell – when it loses its identity.”
Using the CSL Centenary Fellowship, Dr Zhang hopes to generate fundamental knowledge that researchers around the world can use to develop new drugs to tackle epigenetic misregulation in cancers.
CSL Head of Research and Chief Scientific Officer Dr Andrew Nash said, “Dr Zhang and Dr Weeden are both making fundamental discoveries about how normal cells develop and how that development can go wrong leading to cancer and other diseases.”
“With the support of their CSL Centenary Fellowships, their research will open up paths to new kinds of treatment for cancer and developmental diseases,” he said.
“The CSL Centenary Fellowships aim to support leading mid-career Australian researchers like Qi and Clare by providing funding stability to enable the delivery of innovations that could transform medicine for patients living with rare and serious diseases and protect public health.”
About the CSL Centenary Fellowships
The Fellowships are competitively selected, high-value grants available to mid-career Australians who wish to continue a career in medical research in Australia.
They are open to medical researchers working on discovery or translational research with a focus on rare or serious diseases and are overseen by a selection committee comprising three independent members and two CSL representatives. The 2025 committee was chaired by Dr Andrew Nash.
The Fellowships were established to mark 100 years since the establishment of CSL in 1916. Two individual, five-year A$1.25 million fellowships are awarded each calendar year.
For further information, visit www.cslfellowships.com.au
About CSL
CSL (ASX:CSL; USOTC:CSLLY) is a leading global biotechnology company with a dynamic portfolio of lifesaving medicines, including those that treat haemophilia and immune deficiencies, vaccines to prevent influenza, and therapies in iron deficiency, dialysis and nephrology. Since our start in 1916, we have been driven by our promise to save lives using the latest technologies. Today, CSL – including our three businesses, CSL Behring, CSL Seqirus and CSL Vifor – provides lifesaving products to patients in more than 100 countries and employs 30,000 people. Our unique combination of commercial strength, R&D focus and operational excellence enables us to identify, develop and deliver innovations so our patients can live life to the fullest. For inspiring stories about the promise of biotechnology, visit CSLBehring.com/Vita and follow us on Twitter.com/CSL.
For more information about CSL, visit www.CSL.com.
# # #
Media Contact
Name: Kim O’Donohue
Mobile: +61 449 884 603
Email: Kim.O’Donohue@csl.com.au
-
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 USA: Venezuelan Television News Network Owner Charged in Alleged $1.2B Money Laundering Scheme
Source: US State of North Dakota
A federal grand jury in the Southern District of Florida returned an indictment today charging a Venezuelan television news network owner for his role in a $1.2 billion scheme to launder funds corruptly obtained from Venezuela’s state-owned and state-controlled energy company, Petróleos de Venezuela S.A. (PDVSA), in exchange for hundreds of millions in bribe payments to Venezuelan officials.
According to court documents, between 2014 and 2018, Raul Gorrin Belisario (Gorrin), 56, of Venezuela, conspired with others to launder the proceeds of an illegal bribery scheme using the U.S. financial system as well as various bank accounts located abroad. Gorrin and his co-conspirators paid millions of dollars in bribes to high-level Venezuelan officials to obtain foreign currency exchange loan contracts with PDVSA. Gorrin and his co-conspirators subsequently directed the laundering of the illicit proceeds, in part, in the Southern District of Florida, where they purchased real estate, yachts, and other luxury items. To conceal the movement of the bribe payments and illicit funds, Gorrin and his co-conspirators used a series of shell companies and offshore bank accounts.
“According to the indictment, Gorrin and his co-conspirators paid millions of dollars in bribes to high-ranking foreign officials to secure over $1 billion in ill-gotten gains, which Gorrin and his co-conspirators used to purchase yachts and other luxury items in the United States,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Gorrin’s alleged conduct enriched corrupt government officials and exploited the U.S. financial system to facilitate these crimes. Together with our partners, the Criminal Division remains committed to ensuring that the United States is not a safe haven for carrying out money laundering schemes or hiding criminal proceeds.”
“This case represents the Southern District of Florida’s continued commitment to combating foreign corruption and holding those who subvert the integrity of the U.S. financial system responsible for their crimes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Our office will continue to partner with the Organized Crime Drug Enforcement Task Forces (OCDETF) to identify, disrupt and prosecute those who launder money to facilitate corruption and carry out their nefarious schemes.”
“This action by Homeland Security Investigations (HSI), working against global illegal activities with our international and domestic partners, significantly upholds the rule of law,” said Executive Associate Director Katrina W. Berger of HSI. “This case demonstrates HSI’s global footprint and our commitment to curbing the flow of illicit funds while enforcing U.S. sanctions. It also serves as a stark reminder that crime and corruption will not be tolerated.”
Gorrin is charged with one count of conspiracy to commit money laundering. If convicted, Gorrin faces a maximum penalty of 20 years in prison. Gorrin, who is a fugitive in a separately charged matter, remains at large.
HSI Miami’s El Dorado Task Force is investigating the case. The Justice Department’s Office of International Affairs and authorities in the United Kingdom, Spain, Switzerland, Portugal, and Malta provided assistance.
Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nalina Sombuntham for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Joshua Paster for the Southern District of Florida is handling asset forfeiture.
This effort is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
-
MIL-OSI Security: Principal Associate Deputy Attorney General Marshall Miller Delivers Remarks at the New York City Bar Association Compliance Institute
Source: United States Attorneys General 7
Remarks as Prepared for Delivery
Thank you for that generous introduction. It’s great to be home in New York.
The leaves are changing. The Yankees are in the World Series. And we’re here to talk about corporate criminal enforcement.
It doesn’t get any better than this.
Today, I’m honored to be here to take stock of the Department’s programmatic overhaul of corporate criminal enforcement in recent years, to discuss how that overhaul is designed to empower compliance programs and professionals, and to take a look around the corner to what’s ahead.
There’s an old adage, laced with irony and sometimes attributed to an ancient Chinese curse: “May you live in interesting times.” Over the past few years, we at the Justice Department — indeed, all of us in America — have been on the receiving end of that adage. We all, truly, are living in interesting times.
The volatility and rate of change in the geopolitical landscape and the world economy can be head-spinning: here a regional armed conflict, there a natural disaster, and everywhere transformative leaps in technology.
Perhaps the opportunities seem greater than ever — but so, certainly, do the risks.
And one key area where risks have spread and morphed is in the field of corporate crime.
Corporate crime, of course, is not new. But it’s constantly evolving. So, we must skate to where the puck is going, not to where it’s been.
To meet the moment, over the past few years, the Department has engaged in an overhaul of our corporate criminal enforcement program by modernizing and adapting.
We’ve done that by emphasizing clarity, consistency, and transparency in our policies.
We’ve done that by increasing the consequences for bad actors — whether individual or corporate — and by providing new incentives for good corporate citizenship and investments in compliance.
And we’ve done that by recalibrating and surging resources to address today’s corporate crime threats — and tomorrow’s.
In doing so, we’ve created a clear roadmap of the Department’s expectations for every CEO, General Counsel, Board Member, and Chief Compliance Officer who’s navigating a fast-changing world and must mitigate risk and stay on the right side of the law.
* * *
Let me start with the balance of consequences and incentives — where we’ve increased punishment for bad actors and enhanced incentives for ethical corporate behavior.
To be clear, when it comes to corporate criminal enforcement, Job #1 is individual accountability.
Corporate crime hurts real people — and corporate crimes are committed by real people.
So the Department’s top priority in corporate criminal enforcement is holding individuals accountable.
Accountability not only promotes fairness, it also drives deterrence.
We’ve empowered our prosecutors to focus on the worst offenders committing the biggest crimes, no matter how high they rank on the corporate org chart — no matter how challenging and time-consuming the case.
This approach is resource intensive. Prosecuting the most important cases against the most sophisticated wrongdoers requires breaking down complex criminal schemes, understanding cutting-edge markets and technology, and analyzing terabytes of data.
So we’ve adapted enforcement policies to promote swift individual prosecutions.
We’ve given good actors more avenues to help us go after the bad guys — through innovative whistleblower programs and consistent, transparent, and predictable voluntary self-disclosure policies.
And we’ve made clearer than ever before what we expect from companies cooperating with government investigations to accelerate investigations of wrongdoers.
This updated approach has generated real returns, with timely convictions of: the CEOs of the world’s two largest cryptocurrency platforms — FTX and Binance; the CEO and the COO of Theranos;
Prosecuting the most culpable individuals is not only the right thing to do, it has the greatest deterrent impact by changing behavior and preventing misconduct.
To increase accountability and deterrence, we’ve also clarified the rules of the road for corporate enforcement.
In prior years, a disjointed, patchwork Department approach to key tools like whistleblowing, voluntary self-disclosure, and monitor selection limited their effectiveness.
When corporate misconduct was detected, the benefits of whistleblowing or self-reporting to the Justice Department were often opaque and unpredictable.
The Department’s response seemed to depend on which office or even which prosecutor was assigned to the case.
Without written, public policies across most of the Department, self-reporting seemed like a roll of the dice without even a sense for the odds.
It was time for change.
Over the past few years, we’ve moved methodically to establish a very different paradigm –— one with consistent, transparent, and predictable rules of the road.
For the first time, every Justice Department component has a published Voluntary Self-Disclosure policy that sets forth exactly what a company needs to do to self-report misconduct — and what a company can expect if they do so.
For the first time, incentive compensation systems are assessed and upgraded as part of every Criminal Division resolution, because compensation systems can either promote compliance or reward risky — sometimes criminal — behavior.
And companies that claw back compensation from executives involved in wrongdoing can reduce penalties by the amount of those clawbacks, providing new incentives to make wrongdoers — not innocent shareholders — pay the price.
For the first time, all independent compliance monitors across the Department must be chosen under consistent, published selection processes and based on the application of public and transparent factors.
And for the first time, the Justice Department instituted a Department-led whistleblower program with clear incentives for dropping a dime on corporate crime.
Today, individuals and companies know when, where, and how to “do the right thing,” to borrow a phrase from my fellow Brooklynite Spike Lee.
We’ve also broadened the gap between the benefits an ethical company can access and the penalties a compliance-flouting company faces.
Investing in compliance and practicing good corporate citizenship should be the clear product of basic arithmetic — not some complex calculus problem with too many unknown variables to solve.
We aim to empower General Counsels and Chief Compliance Officers to make a simple and powerful business case to boards and C-suites: the case for investing in compliance programs, for calibrating compensation plans to promote compliance and deter wrongdoing, and for swiftly reporting detected misconduct to Justice Department.
As Deputy Attorney General Lisa Monaco put it in connection with the ground-breaking prosecution of TD Bank earlier this month: “If the business case for compliance wasn’t clear before — it should be now.”
* * *
Let me take a few minutes to delve deeper into the Department’s new whistleblowing and voluntary self-disclosure paradigm.
First, whistleblowing. We know it works. Whistleblower reports to the government lead to prosecutions and civil enforcement actions. Internal reports help companies address misconduct before it gets out of hand.
But gaps in whistleblower reporting opportunities left whole areas of corporate criminal misconduct unaddressed, with potential whistleblowers lacking a clear reporting path and a clear reason to blow the whistle.
So this year, the Justice Department launched a two-part whistleblower program — with different rules and incentives for whistleblowers not involved in the criminal activity they’re reporting and for those who were.
For whistleblowers not involved in the reported misconduct, Deputy Attorney General Monaco launched the first-ever Department whistleblower awards program — aimed at building on successful programs at the Securities and Exchange Commission and Commodity Futures Trading Commission.
The awards program is based on a simple premise: if an individual helps the Department discover corporate misconduct — otherwise unknown to us — then that person would qualify to receive a percentage of the resulting forfeiture.
This program not only incentivizes individuals to step forward, it puts pressure on companies to do the same – because a company can still qualify for voluntary self-disclosure credit if it reports the conduct within 120 days of the whistleblower report to the Department.
Now, by its very terms, this awards program doesn’t apply to individuals who were meaningfully involved in the criminal conduct itself. For that, we’ve launched whistleblower non-prosecution pilots in the Criminal Division and many of our most active U.S. Attorneys’ Offices.
Those offices are offering non-prosecution agreements to certain individuals involved in misconduct who report previously undiscovered wrongdoing.
In the same way a company could receive a declination, individuals with knowledge of misconduct can do the same — by stepping up, owning up, and helping us prosecute the most serious wrongdoers.
All this fits seamlessly with the newly clear, transparent, and cross-Department approach to voluntary self-disclosures by companies, instituted at Deputy Attorney General Monaco’s direction.
Voluntary self-disclosures drive successful criminal prosecutions of culpable individuals. They speed money back to victims and disgorge ill-gotten gains. They bring misconduct to a halt and tighten compliance programs with added government oversight.
So, where a company voluntarily self-discloses misconduct previously unknown to the Department — absent aggravating circumstances and after remediation, disgorgement, and victim compensation — it can avoid a guilty plea or indictment.
And such a voluntary self-disclosure to the Criminal Division can also qualify a company for the presumption of a declination of prosecution.
Early signs indicate these newly consistent and transparent programs are working.
Corporate voluntary self-disclosures to the Criminal Division are increasing every year, with more than twice as many last year as compared to 2021.
In the first few months of the Justice Department’s whistleblower awards program, we’ve already received more than 200 tips.
And U.S. Attorneys’ Offices report that individual voluntary self-disclosures have resulted in promising ongoing investigations.
Notably, the programs complement each other, setting up a virtuous cycle.
As the Deputy Attorney General has said, “when everybody wants to be first in the door, no one wants to be second” — regardless of whether you’re an innocent whistleblower, a potential defendant looking to minimize criminal exposure, or an audit committee chair at a company where the misconduct took place.
Our approach also involves increasing punishment for companies that are repeat bad actors or who flout compliance.
Calibrating a successful program of incentives and consequences requires increasing the penalties for corporate entities that aren’t getting the message.
And we’ve moved out on that as well.
Egregious corporate conduct demands a stiff punitive response.
So multinational companies like LaFarge, TD Bank, and Binance have pleaded guilty to egregious crimes involving material support for terrorism, money laundering conspiracy, and sanctions violations, respectively — with combined penalties of almost $7 billion.
Penalties also are levied to deter future misconduct. So, when a company breaks the law a second time or violates the terms of a prior resolution, we’ve made sure they pay a far steeper price.
Powerful companies like Boeing and Ericsson have experienced that approach in action — pleading guilty to charges that stemmed from recidivist conduct or violations of deferred prosecution agreements.
Corporate criminal charges and guilty pleas are no longer “specials” for certain customers —they’re now on the main, everyday menu.
Today’s overhauled corporate enforcement program at the Justice Department means clearer and more transparent policies; predictable benefits for whistleblowers and incentives for companies that voluntarily self-disclose; and a far bigger gulf between the criminal outcomes for good and bad actors.
All of it adds up to a clear business case for investing early and often in compliance.
* * *
I also want to highlight our surge of resources to address the dramatic expansion of corporate crime risks related to national security and emerging technology.
In returning to government some two and a half years ago, I was struck by how often our corporate criminal investigations now implicate the country’s national security interests.
The crimes vary — from sanctions violations to money laundering to material support for terrorism.
The corporate defendants range across industry – from construction and shipping to agriculture and telecommunications.
And the national security risks run the gamut – from money laundering for Russian interests to trafficking in Iranian crude oil to sanctions evasion to support the North Korean nuclear program.
To meet the moment, the Department has surged resources to address the challenge.
We’ve surged prosecutors into the Criminal Division’s Bank Integrity Unit, which prosecutes violations of the Bank Secrecy Act — including the recent, groundbreaking conviction of TD Bank.
We’ve added more than 25 white collar prosecutors and a Chief Counsel for Corporate Criminal Enforcement to our National Security Division to inject energy and expertise in corporate enforcement.
We’ve launched extraordinarily successful enforcement initiatives, involving Main Justice components, U.S. Attorneys’ Offices, and partner law enforcement agencies, to address particularly dangerous national security threats: initiatives like Task Force KleptoCapture, which has brought criminal charges against 100 individuals and entities who violated Russia-related sanctions or export controls — and seized, restrained, or obtained forfeiture orders against more than $650 million in assets. And initiatives like the Disruptive Technology Strike Force, which is laser focused on keeping the most sensitive technologies out of the world’s most dangerous hands, charging two dozen complex and high-impact cases since its launch last year.
Every company’s legal and compliance functions should sit up and take note: national security risks are not only here — they’re accelerating.
And they’re being supercharged by emerging technologies like artificial intelligence.
* * *
Now you might ask: what should compliance professionals be doing today to prepare for tomorrow?
As you may know, we recently updated the Criminal Division’s guidance on evaluating corporate compliance programs — known as the ECCP — in part to ensure that companies are focused on mitigating risks associated with the use and misuse of AI and other emerging technologies.
Now, the ECCP doesn’t tell companies how to design and implement their compliance programs. Instead, the guidance poses questions that companies should be asking themselves throughout the compliance program life cycle — from design to execution.
The Justice Department’s overhauled corporate criminal enforcement program places a particular premium on certain questions that executives and board members need to be asking:
- Have we empowered our compliance leaders and invested sufficiently in our compliance program, given our risk profile and today’s geopolitical landscape?
- Do we have effective internal detection and reporting systems and robust internal investigative capabilities — so we can avail ourselves of voluntary self-disclosure opportunities?
- Have we designed compensation systems that promote compliance and enable clawbacks or escrowing of incentive comp?
- Have we assessed risks associated with national security and emerging technologies and taken appropriate steps to mitigate them?
- If a company finds itself on the wrong side of a Department investigation tomorrow, the company’s posture may well depend on how its leadership answers those questions today.
I want to close by speaking directly to the compliance leaders here today.
Thank you for the work you do every day to promote compliance in companies across America and around the globe.
It’s not always easy to be the voice of compliance in the room.
But when you do your jobs effectively, you not only serve your clients well, you protect our nation.
At the Justice Department, our overhaul of corporate enforcement should empower you — along with other compliance-promoting corporate leaders — with stronger tools and greater sway to advocate for investment in compliance; to advance ethical behavior; to detect, deter, and report corporate misconduct; to defend against emerging national security and AI-related threats; and ultimately to promote good corporate citizenship.
We look forward to continuing our work with all of you on this important effort.
Thank you, once again, for being here today.
-
MIL-OSI Security: Venezuelan Television News Network Owner Charged in Alleged $1.2B Money Laundering Scheme
Source: United States Attorneys General 7
A federal grand jury in the Southern District of Florida returned an indictment today charging a Venezuelan television news network owner for his role in a $1.2 billion scheme to launder funds corruptly obtained from Venezuela’s state-owned and state-controlled energy company, Petróleos de Venezuela S.A. (PDVSA), in exchange for hundreds of millions in bribe payments to Venezuelan officials.
According to court documents, between 2014 and 2018, Raul Gorrin Belisario (Gorrin), 56, of Venezuela, conspired with others to launder the proceeds of an illegal bribery scheme using the U.S. financial system as well as various bank accounts located abroad. Gorrin and his co-conspirators paid millions of dollars in bribes to high-level Venezuelan officials to obtain foreign currency exchange loan contracts with PDVSA. Gorrin and his co-conspirators subsequently directed the laundering of the illicit proceeds, in part, in the Southern District of Florida, where they purchased real estate, yachts, and other luxury items. To conceal the movement of the bribe payments and illicit funds, Gorrin and his co-conspirators used a series of shell companies and offshore bank accounts.
“According to the indictment, Gorrin and his co-conspirators paid millions of dollars in bribes to high-ranking foreign officials to secure over $1 billion in ill-gotten gains, which Gorrin and his co-conspirators used to purchase yachts and other luxury items in the United States,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Gorrin’s alleged conduct enriched corrupt government officials and exploited the U.S. financial system to facilitate these crimes. Together with our partners, the Criminal Division remains committed to ensuring that the United States is not a safe haven for carrying out money laundering schemes or hiding criminal proceeds.”
“This case represents the Southern District of Florida’s continued commitment to combating foreign corruption and holding those who subvert the integrity of the U.S. financial system responsible for their crimes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Our office will continue to partner with the Organized Crime Drug Enforcement Task Forces (OCDETF) to identify, disrupt and prosecute those who launder money to facilitate corruption and carry out their nefarious schemes.”
“This action by Homeland Security Investigations (HSI), working against global illegal activities with our international and domestic partners, significantly upholds the rule of law,” said Executive Associate Director Katrina W. Berger of HSI. “This case demonstrates HSI’s global footprint and our commitment to curbing the flow of illicit funds while enforcing U.S. sanctions. It also serves as a stark reminder that crime and corruption will not be tolerated.”
Gorrin is charged with one count of conspiracy to commit money laundering. If convicted, Gorrin faces a maximum penalty of 20 years in prison. Gorrin, who is a fugitive in a separately charged matter, remains at large.
HSI Miami’s El Dorado Task Force is investigating the case. The Justice Department’s Office of International Affairs and authorities in the United Kingdom, Spain, Switzerland, Portugal, and Malta provided assistance.
Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nalina Sombuntham for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Joshua Paster for the Southern District of Florida is handling asset forfeiture.
This effort is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
-
MIL-OSI: TRAINERS’ HOUSE GROUP INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2024
Source: GlobeNewswire (MIL-OSI)
TRAINERS’ HOUSE GROUP, STOCK EXCHANGE RELEASE, 24 OCTOBER 2024 at 8:30
January-September 2024 in brief- net sales EUR 5.9 million (EUR 6.5 million), change of -9.7 % compared to the corresponding period of the previous year
- operating result EUR 0.1 million (EUR 0.1 million), 1.1 % of net sales (1.0 %)
- cash flow from operations EUR 0.1 million (EUR 0.1 million)
- earnings per share EUR 0.03 (EUR 0.04)
July-September 2024 in brief
- net sales EUR 1.6 million (EUR 1.6 million), change of -1.2 % compared to the corresponding period of the previous year
- operating result EUR -0.1 million (EUR -0.1 million), -9.4 % of net sales (-6.7 %)
- cash flow from operations EUR -0.3 million (EUR -0.2 million)
- earnings per share EUR -0.07 (EUR -0.05)
Key figures at the end of third quarter of 2024
- cash and cash equivalents EUR 1.1 million (EUR 1.5 million)
- interest-bearing liabilities of EUR 0.7 million (EUR 0.3 million) and interest-bearing net debt of EUR -0.4 million (EUR -1.3 million).
- equity ratio 65.2 % (65.3 %)
OUTLOOK FOR 2024
The company estimates the operating profit for 2024 to be negative.
CEO ARTO HEIMONEN
Despite the challenging market conditions, the company’s year-to-date result is slightly profitable at the end of the third quarter.
Due to the holiday season, the third quarter of Trainers’ House is actually two months long from the point of view of revenue accumulation.
Customer activity and customer satisfaction remained at a high level. Acquiring new assignments succeeded moderately. The productivity of encounter marketing business increased.
Healthy cash flow and profitability are the company’s most important business goals in 2024 as well.
The purpose of Trainers’ House is to help people forward. This is possible by touching people, electrifying management and producing verifiable results.
Thanks to customers, employees, and partners.
More information:
Arto Heimonen, CEO, +358 404 123 456
Saku Keskitalo, CFO, +358 404 111 111OPERATIONAL REVIEW
During the review period, the company focused on serving its customers.
FINANCIAL PERFORMANCE
Net sales for the reporting period were EUR 5.9 million (EUR 6.5 million). Operating result was EUR 0.1 million, 1.1 % of net sales (EUR 0.1 million, 1.0 %). The result for the period was EUR 0.1 million, 1.1 % of net sales (EUR 0.1 million, 1.2 %).
The breakdown of the Group’s figures (unit thousand euros) is presented in the following table:
Group’s main figures (kEUR) 1-9/2024 1-9/2023 Net sales 5 907 6 541 Expenses: Expenses arising from employee benefits -3 947 -4 339 Other expenses -1 635 -1 729 EBITDA 325 473 Depreciation and impairment losses -259 -405 EBIT 66 68 EBIT, % of net sales 1.1 1.0 Financial income and expenses -15 8 Result before taxes 51 76 Income taxes 14 4 Result of the period 65 80 Result, % of net sales 1.1 1.2 LONG-TERM OBJECTIVES
The company’s long-term goal is profitable growth.
FINANCING, INVESTMENTS AND SOLVENCY
Cash flow and key financing figures (unit million euros) 1-9/2024 1-9/2023 Cash flow from operations before financial items 0.2 0.1 Cash flow from operations 0.1 0.1 Cash flow from investments 0.0 0.1 Cash flow from financing -0.2 -0.9 Total cash flow -0.1 -0.7 9/2024 9/2023 Cash 1.1 1.5 Interest-bearing debt 0.7 0.3 Equity ratio % 65.2 65.3 MAJOR RISKS AND UNCERTAINTIES
Trainers’ House’s business is sensitive to economic fluctuations.
The general economic situation internationally and in Finland contains significant risks. The war in Europe and Middle East, the tense world political situation and the possible expansion of the crisis can cause rapid changes in the operating environment.
Possible world trade restrictions and changes in the world political situation affect the exports of Finnish companies, which is reflected in the demand of the domestic market. The demand in domestic market will also diminish due to public cost-cuttings and tax increases. The change in domestic market demand directly affects Trainers’ House’s business.
Compared to the level of the last decade, the high interest rate has a negative effect on economic activity. Inflation can also accelerate due to, for example, escalation of world political crises.
The constant competition for the best employees affects recruitment and the commitment of key personnel. From the company’s point of view, the labor market situation has eased over the past year.
The above-mentioned risks, when realized alone or together, have a significant impact on the company’s operations.
The company divides the risk factors affecting business, earnings, and market capitalization into five main categories: market and business risks, personnel-related risks, technology and information security risks, financial risks, and legal risks.
Trainers’ House has sought to hedge against the adverse effects of other risks with comprehensive insurance policies. These include statutory insurance, liability and property insurance and legal expenses insurance. Insurance coverage, insurance values and deductibles are reviewed annually together with the insurance company.
The Management Team reports to the Board on a monthly basis on key business-related risks and, where necessary, risk management measures.
The Group has the reporting systems required for effective business monitoring. Internal control is linked to the company’s vision, strategic goals and the business goals set on the basis of them.
The realization of business objectives and the Group’s financial development are monitored on a monthly basis through the Group’s corporate governance system. As an essential part of the control system, actual data and up-to-date forecasts are reviewed monthly by the Group Management Team. The control system includes, among other things, sales reporting, an income statement, a rolling revenue and profit forecast, and key figures that are important to operations.
Trainers’ House is an expert organization. The magnitude of market and business risks is difficult to determine. Typical risks in this area are related to, for example, general economic development, customer distribution, technology choices, the development of competition and the management of personnel costs.
Risks are managed through the planning and regular monitoring of sales, human resources, and operating expenses, which enables rapid action when circumstances change. The risks of trade receivables have been taken into account by the recognition of expenses based on the age of the receivables and individual risk analyzes.
The goal of Trainers’ House’s financial risk management is to secure the availability of equity and debt financing on competitive terms and to reduce the impact of adverse market movements on the company’s operations.
Financial risks are divided into four categories, which are liquidity, interest rate risks, currency risks and credit risks. Each risk is monitored separately. Liquidity and interest rate risks are reduced with sufficient cash resources and efficient collection of receivables. Currency risks are low as Trainers’ House operates primarily in the euro market. In financial risk management, the focus is on liquidity.
The success of Trainers’ House as an expert organization depends on its ability to attract and retain skilled staff. In addition to a competitive salary, personnel risks are managed through incentive schemes and investments in personnel training, career opportunities and general well-being.
Technology is a key part of Trainers’ House’s business. Technology risks include, but are not limited to, supplier risk, risks related to internal systems, challenges posed by technological change, and security risks. Risks are protected against long-term cooperation with technology suppliers, appropriate security systems, staff training and regular security audits.
Trainers’ House’s legal risks are mainly focused on the contractual relationship between the company and customers or service providers. At their most typical, they relate to delivery responsibility and the management of intellectual property rights. In order to manage the risks related to contracts and intellectual property rights, the company has internal guidelines for contractual procedures. In the company’s view, the contractual risks are not unusual.
At the end of the review period, goodwill and other intangible assets recognized in the balance sheet have been tested in the normal way. The test did not reveal any need for impairment.
The consolidated balance sheet of Trainers’ House has goodwill of EUR 2.1 million. The balance sheet value of other intangible assets is EUR 1.0 million. If the Group’s profitability does not develop as forecasted or other external factors independent of the Group’s operations, such as interest rates, change significantly, it is possible that goodwill and other intangible assets will have to be written off. Recognition of an impairment loss would have no effect on the Group’s cash flow.
Due to the project nature of the operations, the order backlog is short, and predictability is therefore challenging.
The description of potential risks is not comprehensive. Trainers’ House conducts continuous risk assessment in connection with its operations and strives to hedge against identified risks.
Investors have also been informed about the risks in the company’s annual review and on the website at www.trainershouse.fi.
PERSONNEL
At the end of the review period, the Group had 107 (111) employees. As before, the company reports the number of employees converted to full-time employees.
DECISIONS REACHED AT THE ANNUAL GENERAL MEETING
The annual general meeting of Trainers’ House Plc was held on 27 March 2024 in Helsinki.
The annual general meeting confirmed the financial statements and discharged CEO and the members of the Board of Directors from liability for the fiscal year 1 January – 31 December 2023. The annual general meeting also decided to adopt the remuneration policy of the governing bodies.
The annual general meeting decided, in accordance with the board’s proposal, that the company does not distribute a dividend from 2023.
Aarne Aktan, Jari Sarasvuo, Jarmo Hyökyvaara, Elma Palsila and Emilia Tauriainen were re-elected as members of the Board of Directors. In the board meeting held after the annual general meeting, the Board of Directors elected Jari Sarasvuo as the chairperson of the board.
The annual general meeting decided that the board member’s remuneration shall be EUR 1,500 per month and the chairperson’s remuneration will be EUR 3,500 per month.
Grant Thornton Oy was elected as the company’s auditor. The remuneration to the auditor is paid according to the auditor’s reasonable invoice.
SHARES AND SHARE CAPITAL
The company’s share is listed on Nasdaq Helsinki Ltd under the name Trainers’ House Plc (TRH1V).
At the end of the reporting period, Trainers’ House Plc had 2,147,826 shares and a registered share capital of EUR 880,743.59. The company does not hold any of its own shares. There have been no changes in the share capital during the period.
Share performance and trading
1-9/2024 1-9/2023 Traded shares, pcs 203 608 213 827 Average number of all company shares, % 9.5 10.0 Traded shares, EUR 576 890 1 013 869 Highest share quotation 4.88 6.12 Lowest share quotation 2.07 3.38 Closing price 2.27 3.73 Weighted average price 2.83 4.74 Market capitalization 4.9 mil. 8.0 mil. SUMMARY OF FINANCIAL STATEMENTS AND NOTES
The report has been prepared in accordance with IAS 34 standard. The report has been prepared in accordance with IFRS standards and interpretations that have been approved for application in the EU and are in force on 1 January 2024.
In this interim report Trainers’ House has followed the same accounting policies and calculation methods as in the 2023 annual financial statements.
The figures given in the interim report are unaudited.
INCOME STATEMENT IFRS (kEUR) 1-9/2024 1-9/2023 1-12/2023 NET SALES 5 907 6 541 8 437 Expenses: Materials and services -286 -308 -391 Personnel-related expenses -3 947 -4 339 -5 691 Depreciation and impairment losses -259 -405 -531 Other operating expenses -1 348 -1 420 -1 925 Total expenses -5 841 -6 473 -8 538 Operating result 66 68 -101 Financial income and expenses -15 8 6 Result before taxes 51 76 -95 Income taxes 14 4 4 RESULT OF THE PERIOD 65 80 -91 Result attributable to owners of the parent company 65 80 -91 Earnings per share, EUR 0.03 0.04 -0.04 Earnings per share attributable to owners of the parent company, EUR 0.03 0.04 -0.04 BALANCE SHEET IFRS (kEUR) 9/2024 9/2023 12/2023 ASSETS Non-current assets Tangible assets 704 430 961 Goodwill 2 129 2 129 2 129 Other intangible assets 1 013 1 025 1 013 Long-term receivables Other receivables, long-term 105 138 138 Deferred tax receivables 218 204 202 Total long-term receivables 324 342 341 Total non-current assets 4 170 3 926 4 443 Current assets Account receivables and other receivables 1 002 942 783 Cash and cash equivalents 1 120 1 533 1 175 Total current assets 2 122 2 475 1 958 TOTAL ASSETS 6 292 6 400 6 401 SHAREHOLDERS’ EQUITY AND LIABILITIES 9/2024 9/2023 12/2023 Equity attributable to the owners of the parent company Share capital 881 881 881 Distributable non-restricted equity fund 37 37 37 Retained earnings 3 021 3 111 3 111 Result of the period 65 80 -91 Total shareholders’ equity 4 004 4 109 3 939 Long-term liabilities Deferred tax liabilities 203 205 203 Long-term financial liabilities 420 58 631 Total long-term liabilities 622 263 833 Short-term liabilities Short-term financial liabilities 280 216 197 Accounts payable and other liabilities 1 386 1 812 1 432 Total short-term liabilities 1 666 2 028 1 629 Total liabilities 2 288 2 291 2 462 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 6 292 6 400 6 401 CASH FLOW STATEMENT IFRS (kEUR) 1-9/2024 1-9/2023 1-12/2023 CASH FLOW FROM OPERATIONS Result of the period 65 80 -91 Adjustments 263 435 570 Changes in working capital -169 -398 -257 Cash flow from operations before financial items and taxes 158 117 222 Financial items and taxes paid -22 -13 -16 CASH FLOW FROM OPERATIONS 137 104 206 CASH FLOW FROM INVESTMENTS Investments in tangible and intangible assets -3 -12 -12 Repayment of loan receivables 17 42 42 Interests received 5 21 21 CASH FLOW FROM INVESTMENTS 18 51 51 CASH FLOW FROM FINANCING Repayment of lease liabilities -128 -272 -363 Dividends paid -82 -597 -966 CASH FLOW FROM FINANCING -210 -869 -1 329 TOTAL CASH FLOW -55 -714 -1 072 CHANGE IN CASH AND CASH EQUIVALENTS Opening balance of cash and cash equivalents 1 175 2 247 2 247 Closing balance of cash and cash equivalents 1 120 1 533 1 175 CHANGE IN CASH AND CASH EQUIVALENTS -55 -714 -1 072 CHANGE IN SHAREHOLDERS’ EQUITY (kEUR)
Equity attributable to owners of the parent companyCHANGE IN SHAREHOLDERS’ EQUITY (kEUR) Share capital Distributable non-restricted equity fund Retained earnings Total Equity 1 January 2023 881 37 4 121 5 039 Other comprehensive income 80 80 Dividends -1 009 -1 009 Equity 30 September 2023 881 37 3 191 4 109 Equity 1 January 2024 881 37 3 021 3 939 Other comprehensive income 65 65 Dividends 0 0 Equity 30 September 2024 881 37 3 086 4 004 RELATED PARTY TRANSACTIONS
During the period under review, Trainers’ House had transactions with Causa Prima Ltd, a company controlled by Jari Sarasvuo, the Chairperson of the Board of Directors, and Pro Vividus Ltd and Anorin Liekki Ltd, which are related to the company.
The following transactions took place with related parties:
RELATED PARTY TRANSACTIONS (kEUR) 1-9/2024 1-9/2023 1-12/2023 Purchases during the period 272 131 168 Liabilities at the end of the period 95 31 39 PERSONNEL 1-9/2024 1-9/2023 1-12/2023 Average number of personnel 108 115 113 Personnel at the end of the period 107 111 96 COMMITMENTS AND CONTINGENT LIABILITIES 9/2024 9/2023 12/2023 Collaterals and contingent liabilities given for own commitments(kEUR) 120 120 120 OTHER KEY FIGURES 9/2024 9/2023 12/2023 Equity ratio (%) 65.2 65.3 63.5 Shareholders’ equity/share (EUR) 1.86 1.91 1.83 Calculation formulas for key figures
Earnings per share = Result of the period attributable to owners of the parent company
Average number of shares adjusted for share issue in financial periodInterest-bearing net debt = Interest-bearing liabilities – cash and cash equivalents
Equity ratio (%) = Equity x 100
Balance sheet total – advances receivedEquity / share = Equity
Number of shares adjusted for share issue at the
end of financial periodItems affecting the calculation of key figures 9/2024 9/2023 12/2023 Advances received (kEUR) 154 107 198 Interest-bearing liabilities (kEUR) 700 274 828 Average number of shares adjusted for share issue in financial period (unit thousand shares) 2 148 2 148 2 148 Number of shares adjusted for share issue at the end of the financial period (unit thousand shares) 2 148 2 148 2 148 In Helsinki 24 October 2024
TRAINERS’ HOUSE PLC
BOARD OF DIRECTORS
Information:
Arto Heimonen, CEO, +358 404 123 456
Saku Keskitalo, CFO, +358 404 111 111DISTRIBUTION
Nasdaq Helsinki
Main media
www.trainershouse.fi – For investorsAttachment
-
MIL-OSI: Atos reports third quarter 2024 revenue
Source: GlobeNewswire (MIL-OSI)
Press Release
Third quarter 2024 revenue in line with September 2ndBusiness Plan
Cash position in line with September 2ndbusiness plan & FY2024 outlook
Q3 2024 revenue of €2,305m, down -4.4% organically, consistent with September 2ndbusiness plan communicated on September 2nd, 2024
- Eviden down -6.4% organically due to continued market softness in the Americas and Central Europe and previously-established contract scope reductions
- Tech Foundations down -2.6% organically, reflecting lower scope of work and previously-established contract completions and terminations
- Q4 and FY2024 outlook in line with September 2nd business plan1
Q3 order entry of €1.5bn, with stronger commercial activity and improved order entry expected in Q4
- Eviden book-to-bill at 73%, compared with 80% in prior year. Solid commercial activity in BDS with several High-Performance Computing contracts signed. Eviden Q4 book-to-bill expected to be close to Q4 20232
- Tech Foundations book-to-bill at 60%, consistent with previous years3. Q4 book-to-bill expected to be close to historical average4 thanks to anticipated return of multi-year contracts with existing customers
- Group Q3 book-to-bill at 66% (84% in prior year), in line with Q3 2023 book-to-bill excluding large exceptional deals5. Group Q4 2024 book-to-bill expected in line with prior year6
Cash position of €1.1bn as at September 30, 2024
- Net debt position of €4.6bn, including a €1.6bn reduction of working capital optimization compared with December 2023
- Q3 cash consumption of €-3m excluding change in working capital optimization for €232m
- Full year free cash flow before normalization of working capital optimization expected in line with September 2nd business plan
Atos focused on its industrial turnaround and growth:
- Decision from the Court on pre-arranged financial restructuring plan expected today
- Financial restructuring plan expected to close in December 2024 or early January 2025
- New governance in place with Philippe Salle named chairman and becoming CEO on February 1st.
Paris, France – October 24, 2024 – Atos, a global leader in digital transformation, high-performance computing and information technology infrastructure, today announces its revenue for the third quarter of 2024.
Jean Pierre Mustier, Atos Chief Executive Officer, declared:
“With our financial restructuring plan and our new governance in place, Atos can confidently focus on its industrial turnaround and growth under the leadership of Philippe Salle. He is the best person to lead our transformation journey and restore confidence in Atos.
I have seen a positive change of perception with our clients, who have taken note of our restructuring, and are looking to resume a normalized interaction with us. I expect stronger commercial activity in the coming months, with the anticipated return of multi-year strategic contracts with existing customers.
I would like to take this opportunity to sincerely thank our employees for their ongoing commitment, and our customers and partners for their continued support.”
Revenue by Businesses
In € million Q3 2024
RevenueQ3 2023
revenueQ3 2023
revenue*Organic variation* Eviden 1,093 1,202 1,167 -6.4% Tech Foundations 1,212 1,373 1,244 -2.6% Total 2,305 2,575 2,412 -4.4% *at constant scope and average exchange rates Group revenue was €2,305 million in Q3 2024, down -4.4% organically compared with Q3 2023 as expected. Overall, Group revenue in the third quarter reflects softer market conditions and is consistent with the business plan communicated on Sept 2nd.
Eviden revenue was €1,093 million, down -6.4% organically.
- Digital activities decreased high single-digit. The business was impacted by the general market slowdown in Americas and Central Europe and previously-established contract scope reductions.
- Big Data & Security (BDS) revenue was roughly stable organically. In Advanced Computing, stronger activity in Denmark and France was offset by a high comparison basis in the prior year. Revenue in Digital Security slightly decreased, despite the growth of Mission Critical Systems, notably in Central Europe.
Tech Foundations revenue was €1,212 million, down -2.6% organically.
- Core revenue (excluding BPO and value-added resale (“VAR”)) decreased low single-digit. Stronger contributions related to the Paris Olympic & Paralympic games were offset by contract terminations in Americas and previously-established contract scope and volume reduction in Northern Europe & APAC.
- Non-core revenue declined high single-digit during the quarter as expected, reflecting contract completion in BPO activities in the UK.
Revenue by Regional Business Unit
In € million Q3 2024
RevenueQ3 2023
revenueQ3 2023
revenue*Organic variation* Americas 500 606 558 -10.5% Northern Europe & APAC 707 769 757 -6.6% Central Europe 544 627 546 -0.4% Southern Europe 477 501 480 -0.7% Others & Global Structures 76 73 69 +10.1% Total 2,305 2,575 2,412 -4.4% *at constant scope and average exchange rates Americas revenue decreased by -10.5% on an organic basis, reflecting the current general slowdown in market conditions and previously-established contract terminations and completions.
- Eviden was down double-digit, impacted by contract terminations and volume decline in Healthcare, Finance, and Transport & Logistics. BDS declined high single-digit due to volume reductions.
- Tech Foundations revenue declined mid single-digit due to contract completions and terminations as well as scope reductions with select customers.
Northern Europe & Asia-Pacific revenue decreased by -6.6% on an organic basis.
- Eviden revenue declined mid-single-digit. A revenue increase at BDS due to new business in Advanced Computing with an innovation center in Denmark was offset by the decline of Digital revenue, reflecting a lower demand from Public Sector customers in the UK.
- Revenue in Tech Foundations was down high single-digit, with contract completions and volume decline in Public Sector BPO.
Central Europe revenue was nearly stable at -0.4% on an organic basis.
- Eviden revenue declined low single-digit, impacted by volume reductions in Digital from Manufacturing and Public Sector customers.
- Tech Foundations revenue grew mid-single-digit, with strong demand for hardware products.
Southern Europe revenue was down -0.7% organically.
- Eviden revenue was roughly flat. Growth in Digital, which benefitting from a contract win with a major European utility company, was offset by lower revenue in BDS compared to Q3 2023, when a supercomputer project was delivered in Spain.
- Tech Foundations revenue declined low single-digit due to volume reductions with select customers.
Revenue in Others and Global Structures, which encompass Middle East, Africa, Major Events as well as the Group’s global delivery centers and global structures, grew double-digit reflecting stronger contributions from the Paris Olympic & Paralympic Games and the positive performance of Africa.
Commercial activity
Order entry for the Group was €1,526 million. Eviden order entry was €794 million and Tech Foundations order entry was €733 million.
Book-to-bill ratio for the Group was 66% in Q3 2024, down from 84% in Q3 2023, reflecting softer market conditions and delays in contract awards as clients await the final resolution of the Group’s refinancing plan. This ratio is in line with the book-to-bill ratio for Q3 2023, excluding exceptionally large contract7.
Book-to-bill ratio at Eviden was 73%. Main contracts signatures during the third quarter included the supply of an HPC to a leading player in the Aerospace sector, another HPC contract signed with a major French utility provider, together with control room utility solutions.
Book-to-bill ratio at Tech Foundations was 60%, consistent with the seasonality observed in previous years, in particular in Q3 2021 (54%) and in Q3 2022 (58%). Main contracts signatures in the third quarter included several renewals to provide Hybrid Cloud & Infrastructure services in Financial Services, Public Sector, and Manufacturing industries.
Stronger commercial activity is expected in the coming months in both Eviden and Tech Foundation, which would lead to a significant improvement of the Group book-to-bill ratio in the fourth quarter, as confidence in the Group’s financial sustainability has been restored.
At the end of September 2024, the full backlog was €14.7 billion representing 1.4 years of revenue. The full qualified pipeline amounted to €5.7 billion at the end of September 2024.
Human resources
The total headcount was 82,211 at the end of September 2024, decreasing by -10.3% since the end of June 2024. Following contract completions in Americas and the UK, the Group transferred circa 4,900 employees to the new providers. Excluding these transfers, headcount has decreased by circa -5%.
During the third quarter, the Group hired 1,839 staff (of which 91% were Direct employees), while attrition rate increased compared with Q2. The attrition rate over the past 9 months is in line with normal historical levels.
Q3 cash position
As of September 30, 2024, cash & cash equivalents was €1.1 billion, down €1.2 billion compared with December 31, 2023 primarily reflecting €1.6 billion lower working capital actions compared with the end of fiscal 2023 and €1.1 billion of new borrowings.
As of September 30, 2024, net debt was €4.6 billion compared with €2.2 billion at the end of last year, reflecting primarily the reduction of working capital optimization down to €265 million.
Cash consumption was €-3 million in the third quarter, excluding change in working capital optimization of €232 million.
Full year 2024 outlook
The Group expects for the full year 2024:
- Mid-single-digit organic revenue decrease, corresponding to revenue of circa €9.7 billion
- Operating margin of circa €238 million excluding additional provisions to be booked for some underperforming contracts8
- Change in cash before debt repayment of circa €-783 million excluding the full unwind of the working capital optimization of circa €1.8 billion as of December 31, 2023.
Financial restructuring process
Atos expected to receive today the decision from the Court on its pre-arranged financial restructuring plan.
Assuming the plan is accepted by the court, the next steps of the financial restructuring process would be as follows:
November 12 – 22: - €233 million rights issue with preferred subscription rights
Mid to end December: - Execution of concomitant reserved capital increases
End of December 2024 or early 2025 - Receipt of €1.5bn to €1.7bn of new money debt
- Closing of the restructuring process
Asset disposal processes
The discussions with Alten regarding the sale of the Worldgrid business are progressing well and are on track.
Following the communication issued on October 7, discussions related to the potential acquisition by the French state of the Advanced Computing, Mission-Critical Systems and Cybersecurity Products businesses of BDS are continuing based on a new proposal compatible with the financial restructuring plan of the Company.
Governance
As communicated on October 15, 2024, Philippe Salle has been appointed as Chairman of the Board of Directors of the Company with immediate effect and as Chairman and Chief Executive Officer with effect from February 1, 2025.
Conference call
Atos’ Management invites you to a conference call on the Group revenue for the third quarter of 2024, on Thursday, October 24, 2024 at 08:00 am (CET – Paris).
You can join the webcast of the conference:
- via the following link: https://edge.media-server.com/mmc/p/bkriazto
- by telephone by dial-in, 10 minutes prior the starting time. Please note that if you want to join the webcast by telephone, you must register in advance of the conference using the following link:
https://register.vevent.com/register/BI8dc47a058ab84cb88b1ba638c295b440
Upon registration, you will be provided with Participant Dial In Numbers, a Direct Event Passcode and a unique Registrant ID. Call reminders will also be sent via email the day prior to the event.
During the 10 minutes prior to the beginning of the call, you will need to use the conference access information provided in the email received upon registration.After the conference, a replay of the webcast will be available on atos.net, in the Investors section.
APPENDIX
9-month organic revenue evolution by RBUs and business lines
In € million 9-month 2024
Revenue9 month 2023
revenue*Organic variation* Americas 1,608 1,748 -8.0% Northern Europe & APAC 2,249 2,320 -3.0% Central Europe 1,621 1,673 -3.1% Southern Europe 1,561 1,564 -0.2% Others & Global Structures 230 211 +9.1% Total 7,268 7,516 -3.3% *at constant scope and average exchange rates In € million 9-month 2024
Revenue9-month2023
revenue*Organic variation* Eviden 3,478 3,658 -4.9% Tech Foundations 3,790 3,858 -1.8% Total 7,268 7,516 -3.3% *at constant scope and average exchange rates Q3 2023 Revenue at constant scope and exchange rates reconciliation
For the analysis of the Group’s performance, revenue is compared with Q3 2023 revenue at constant scope and foreign exchange rates. Reconciliation between the Q3 2023 reported revenue and the Q3 2023 revenue at constant scope and foreign exchange rates is presented below.
In 2023, the Group reviewed the accounting treatment of certain third-party standard software resale transactions following the decision published by ESMA in October 2023 that illustrated the IFRS IC decision and enacted a restrictive position on the assessment of Principal vs. Agent under IFRS 15 for such transactions. The Q3 2023 revenue is therefore restated by €-15 million. The restatement impacted Eviden in the Americas RBU without impacting the operating margin.
Q3 2023 revenue
In € millionQ3 2023 published Restatement Q3 2023 restated Internal transfers Scope effects Exchange rates effects Q3 2023* Eviden 1,217 -15 1,202 -3 -31 -1 1,167 Tech Foundations 1,373 0 1,373 3 -122 -9 1,244 Total 2,590 -15 2,575 0 -154 -10 2,412 Q3 2023 revenue
In € millionQ3 2023 published Restatement Q3 2023 restated Internal transfers Scope effects Exchange rates effects Q3 2023* Americas 621 -15 606 0 -34 -13 558 Norther Europe & APAC 769 0 769 0 -18 7 757 Central Europe 627 0 627 0 -81 0 546 Southern Europe 501 0 501 0 -21 0 480 Others & Global structures 73 0 73 0 0 -3 69 Total 2,590 -15 2,575 0 -154 -10 2,412 *: At constant scope and foreign exchange rates
Scope effects on revenue amounted to €-154 million. They mainly related to the divesture of UCC across all regions, EcoAct in Americas, Southern Europe and Northern Europe & Asia-Pacific, State Street JV in Americas and Elexo in Southern Europe.
Currency effects negatively contributed to revenue for €-10 million. They mostly came from the depreciation of the American dollar, Argentinian peso, Brazilian real, and Turkish lira, not offset by the appreciation of the British pound.
***
Disclaimer
This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group’s expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors’ behaviors. Any forward-looking statements made in this document are statements about Atos’s beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos’s plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2023 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on May 24, 2024 under the registration number D.24-0429 and the half-year report filed with the Autorité des Marchés Financiers (AMF) on August 6, 2024. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.
This document does not contain or constitute an offer of Atos’s shares for sale or an invitation or inducement to invest in Atos’s shares in France, the United States of America or any other jurisdiction. This document includes information on specific transactions that shall be considered as projects only. In particular, any decision relating to the information or projects mentioned in this document and their terms and conditions will only be made after the ongoing in-depth analysis considering tax, legal, operational, finance, HR and all other relevant aspects have been completed and will be subject to general market conditions and other customary conditions, including governance bodies and shareholders’ approval as well as appropriate processes with the relevant employee representative bodies in accordance with applicable laws .About Atos
Atos is a global leader in digital transformation with circa 82,000 employees and annual revenue of circa €10 billion. European number one in cybersecurity, cloud and high-performance computing, the Group provides tailored end-to-end solutions for all industries in 69 countries. A pioneer in decarbonization services and products, Atos is committed to a secure and decarbonized digital for its clients. Atos is a SE (Societas Europaea) and listed on Euronext Paris.
The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.
Contacts
Investor relations:
David Pierre-Kahn | investors@atos.net | +33 6 28 51 45 96
Sofiane El Amri | investors@atos.net | +33 6 29 34 85 67Individual shareholders: 0805 65 00 75
Press contact: globalprteam@atos.net
1 Eviden Q4 organic revenue evolution expected slightly negative and Tech Foundations Q4 revenue expected to decrease double digit on previously established contract completions and terminations
2 Q4 2023 Eviden book-to-bill of 100%
3 2021 (54%), 2022 (58%) and 2023 (84% including one large exceptional deal)
4 Q4 2021-2023 book-to-bill average of 98%
5 Q3 2023 book-to-bill of 65% excluding one large exceptional deal in Eviden and another one in Tech Foundations
6 108%
7 Book-to-bill ratio of 65% in Q3 2023, excluding an exceptionally large contract at Eviden and another at Tech Foundations.
8 Negotiations are in progress with customers, which could lead to a low double digit % reduction of the operating marginAttachment
-
MIL-OSI: Sampo plc’s share buybacks 23 October 2024
Source: GlobeNewswire (MIL-OSI)
Sampo plc, stock exchange release, 24 October 2024 at 8:30 am EEST
Sampo plc’s share buybacks 23 October 2024
On 23 October 2024, Sampo plc (business code 0142213-3, LEI 743700UF3RL386WIDA22) has acquired its own A shares (ISIN code FI4000552500) as follows:
Sampo plc’s share buybacks Aggregated daily volume (in number of shares) Daily weighted average price of the purchased shares* Market (MIC Code) – – AQEU – – CEUX – – TQEX 93,245 40.47 XHEL TOTAL 93,245 40.47 *rounded to two decimals
On 17 June 2024, Sampo announced a share buyback programme of up to a maximum of EUR 400 million in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. On 16 September 2024, the Board of Directors of Sampo plc resolved to increase the share buyback programme to EUR 475 million. The programme, which started on 18 June 2024, is based on the authorisation granted by Sampo’s Annual General Meeting on 25 April 2024.
After the disclosed transactions, the company owns in total 9,227,711 Sampo A shares representing 1.68 per cent of the total number of shares in Sampo plc, taking the issuance of shares on 16 September 2024 into account.
Details of each transaction are included as an appendix of this announcement.
On behalf of Sampo plc,
Morgan StanleyFor further information, please contact:
Sami Taipalus
Head of Investor Relations
tel. +358 10 516 0030Distribution:
Nasdaq Helsinki
Nasdaq Stockholm
Nasdaq Copenhagen
London Stock Exchange
The principal media
FIN-FSA
DEN-FSA
www.sampo.comAttachment
-
MIL-OSI: Decisive new step in the completion of the financial restructuring: Atos’ accelerated safeguard plan approved by the specialized Commercial Court of Nanterre
Source: GlobeNewswire (MIL-OSI)
Paris, France – October 24, 2024 – Atos SE (“Atos” or the “Company”) announces today that, by judgment dated October 24, 2024, the specialized Commercial Court of Nanterre (the “Court”), after having acknowledged, pursuant to the provisions of article L. 626-31 of the French Code de commerce, that all legal conditions had been satisfied, has approved the accelerated safeguard plan of Atos (the “Plan”), presented at the hearing of October 15, 2024.
Philippe Salle, Chairman of the Board of Directors of Atos, said: “The approval of Atos’ accelerated safeguard plan by the Nanterre Specialized Commercial Court is a decisive step in our financial restructuring process and I would like to thank the entire management team for the remarkable work they have accomplished over the last few months. This important step guarantees the continuity of Atos’ activities in the best interests of our employees and customers, and allows us to project the Group confidently towards a new page in its history.”
Jean Pierre Mustier, Chief Executive Officer of Atos, said: “Our Group has reached a decisive step, providing sufficient financial resources to successfully complete a new period of industrial development under the leadership of Philippe Salle, with a strong focus of all our teams to provide the best possible service to our customers through innovation and quality of service.”
The Court has appointed, as practitioner in charge of supervising the implementation of the Plan (commissaire à l’exécution du plan), SELARL AJRS, represented by Maître Thibaut Martinat, for the duration of the Plan.
In the absence of a suspensory appeal against the judgment approving the Plan, it is envisaged that all the financial restructuring transactions provided for in the Plan will be executed between November 2024 and December 2024/January 20251, subject in particular to the approval by the Autorité des Marchés Financiers (AMF) of the prospectuses relating to the various securities issues provided for in the Plan.
As a reminder, the transactions provided under the Plan should lead to, in particular:
- the equitization of €2.9 billion of financial debt; and
- the provision to Atos of €1.5 to €1.675 billion of new money debt and the new money equity resulting from the rights issue (up to €233 million) already backstopped in cash by participating bondholders for €75 million and by the creditors participating in the new financings by set off against a portion of their debts for €100 million, as previously communicated and, as the case may be, from the potential voluntary additional subscription in cash by the participating creditors of up to €75 million as part of the Potential Capital Increase as provided in the Plan.
The main characteristics of the share capital transactions to be implemented as part of the Plan are described in the document entitled “Main terms and conditions of the share capital transactions carried out as part of the Company’s financial restructuring plan” (Principales modalités des opérations sur le capital mises en œuvre dans le cadre du plan de restructuration financière de la Société) published on the Company’s website (section “Financial Restructuring”) on September 6, 2024 and updated on September 16, 2024. These share capital transactions will be covered by prospectuses submitted to the Autorité des Marchés Financiers (AMF) for approval.
The Company will continue to inform the market in due course of the next steps of its financial restructuring.
***
Disclaimer
This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group’s expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors’ behaviors. Any forward-looking statements made in this document are statements about Atos’s beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos’s plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2023 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on May 24, 2024 under the registration number D.24-0429 and the half-year report filed with the Autorité des Marchés Financiers (AMF) on August 6, 2024. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.
This document does not contain or constitute an offer of Atos’s shares for sale or an invitation or inducement to invest in Atos’s shares in France, the United States of America or any other jurisdiction. This document includes information on specific transactions that shall be considered as projects only. In particular, any decision relating to the information or projects mentioned in this document and their terms and conditions will only be made after the ongoing in-depth analysis considering tax, legal, operational, finance, HR and all other relevant aspects have been completed and will be subject to general market conditions and other customary conditions, including governance bodies and shareholders’ approval as well as appropriate processes with the relevant employee representative bodies in accordance with applicable laws .About Atos
Atos is a global leader in digital transformation with circa 82,000 employees and annual revenue of circa €10 billion. European number one in cybersecurity, cloud and high-performance computing, the Group provides tailored end-to-end solutions for all industries in 69 countries. A pioneer in decarbonization services and products, Atos is committed to a secure and decarbonized digital for its clients. Atos is a SE (Societas Europaea) and listed on Euronext Paris.
The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.
Contacts
Investor relations:
David Pierre-Kahn | investors@atos.net | +33 6 28 51 45 96
Sofiane El Amri | investors@atos.net | +33 6 29 34 85 67Individual shareholders: 0805 65 00 75
Press contact: globalprteam@atos.net
1 Subject to the required regulatory approvals.
Attachment
-
MIL-OSI: Portfolio Update: Alliance Witan completes portfolio transition, brings in EdgePoint for Black Creek
Source: GlobeNewswire (MIL-OSI)
Alliance Witan PLC (the “Company”)
LEI: 213800SZZD4E21OZ9W55
Portfolio Update: Alliance Witan completes portfolio transition, brings in EdgePoint for Black Creek
Alliance Witan’s investment manager, Willis Towers Watson (“WTW”), is pleased to announce the completion of the transition of assets from Witan Investment Trust (“Witan”) to Alliance Witan following shareholder approval for the combination of Alliance Trust and Witan on 9 October.
Blackrock Inc. has helped to manage the transition and keep the costs to a minimum. While Blackrock was completing the transition of assets, WTW took the opportunity to also make a manager change, replacing Black Creek Investment Management (“Black Creek”) with EdgePoint Wealth Management (“EdgePoint”).
The appointment of EdgePoint follows that of Jennison Associates, previously one of Witan’s investment managers, which was announced at the start of the transition just over two weeks ago.
EdgePoint, based in Toronto, is an employee-owned business, founded in 2008. It manages $25bn of client assets, as of 30 June 2024, and seeks to buy good, undervalued business and hold them until the market fully realises their potential.
With the portfolio realignment now completed, the new manager allocations are as follows:
Manager Allocations ARGA 8.0% Dalton 5.5% EdgePoint 7.0% GQG Global 13.5% GQG EM 6.0% Jennison 6.0% Lyrical 6.5% Metropolis 9.5% Sands 4.5% SGA 10.5% Veritas 13.5% Vulcan 7.0% Other assets 2.5% The resulting risk profile of the portfolio is largely unchanged, with no excessive exposure relative to the benchmark to regions, sectors or styles, and most of the added value is expected to come from stock selection.
The direct costs of the portfolio transition and manager changes, including BlackRock’s fee, trading commissions, tax and bid/offer spreads, will be less than 0.04% of the Alliance Witan portfolio, representing fair value for shareholders.
Craig Baker, Chief Investment Officer of WTW and Chair of the Alliance Witan Investment Committee, said: “We would like to express our appreciation to the team at Black Creek for their contribution to the Company since their appointment in 2017. While we continue to rate Black Creek highly, a senior member of the team left in the last 12 months on health grounds, and we have been evaluating succession planning for some time. While Bill Kanko has no specific retirement date in mind and there are other experienced investors at the firm, we have taken the opportunity to switch to a manager in which we have high conviction, and which brings a fresh perspective to the new, combined portfolio.
Baker added: “Now that Witan’s assets are fully invested, it is business as usual. We will be using the same proven investment approach we have always used for Alliance Witan, although we will be retaining a small number of Witan’s discounted investment trust holdings, which represent less than 3% of the portfolio, until such time that they can be sold at an attractive price for shareholders.”
Ends
About Alliance Witan (ALW)
Alliance Witan aims to deliver long-term capital growth and rising income from investing in global equities at a competitive cost. Our investment manager blends the top stock selections of some of the world’s best active managers into a single diversified portfolio designed to outperform the market while carefully managing risk and volatility. Alliance Trust is an AIC Dividend Hero with 57 consecutive years of rising dividends
For more information, please contact:
Mark Atkinson
Senior Director
Client Management, Wealth & Retail
Willis Towers Watson
Tel: 07918 724303
mark.atkinson@wtwco.comSarah Gibbons-Cook
Quill PR
Tel: 020 7466 5050 -
MIL-OSI: BE Semiconductor Industries N.V. Announces Q3-24 Results
Source: GlobeNewswire (MIL-OSI)
Q3-24 Revenue of € 156.6 Million and Net Income of € 46.8 Million Up 27.0% and 33.7%, Respectively, vs. Q3-23
Orders of € 151.8 Million Up 19.2% vs. Q3-23. Hybrid Bonding Adoption ContinuesYTD-24 Revenue of € 454.1 Million and Net Income of € 122.7 Million
Orders of € 464.8 Million Up 21.7% vs. YTD-23DUIVEN, the Netherlands, Oct. 24, 2024 (GLOBE NEWSWIRE) — BE Semiconductor Industries N.V. (the “Company” or “Besi”) (Euronext Amsterdam: BESI; OTC markets: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the third quarter and nine months ended September 30, 2024.
Key Highlights Q3-24
- Revenue of € 156.6 million up 3.6% vs. Q2-24 and 27.0% vs. Q3-23 due to increased demand by computing end user markets for hybrid bonding, photonics and other AI applications partially offset by ongoing weakness in automotive and Chinese end user markets
- Orders of € 151.8 million up 19.2% vs. Q3-23 due to increased hybrid bonding orders. Down 18.0% vs. Q2-24 due primarily to fluctuations in hybrid bonding order patterns by customers
- Gross margin of 64.7% decreased by 0.3 points vs. Q2-24 but was up 0.1 point vs. Q3-23. Gross margin development in the comparable periods was adversely affected by net forex influences
- Net income of € 46.8 million increased 11.7% vs. Q2-24 and 33.7% vs. Q3-23 primarily due to higher revenue levels and cost control efforts which limited baseline operating expense growth. Q3-24 net margin rose to 29.9% vs. 27.7% in Q2-24 and 28.4% reported in Q3-23
- Net cash of € 110.7 million at quarter-end increased by € 36.3 million (48.8%) vs. Q2-24 and € 20.5 million (22.7%) vs. Q3-23
Key Highlights YTD-24
- Revenue of € 454.1 million increased 8.3% vs. YTD-23 principally due to higher demand by computing end user markets, particularly for hybrid bonding and photonics applications and by Taiwanese and Korean subcontractors partially offset by weakness in mobile and automotive markets
- Orders of € 464.8 million increased 21.7% vs. YTD-23 due to increased demand for hybrid bonding and photonics applications partially offset by lower bookings for automotive and, to a lesser extent, mobile applications and ongoing weakness in Chinese end user markets
- Gross margin of 65.6% increased by 0.8 points vs. YTD-23 due to more favorable AI advanced packaging product mix
- Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins were offset by higher R&D spending and share-based compensation expense. Besi’s net margin decreased to 27.0% vs. 29.1% in YTD-23
Q4-24 Outlook
- Revenue expected to be flat plus or minus 10% vs. the € 156.6 million reported in Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24
- Gross margin expected to range between 63-65% vs. the 64.7% realized in Q3-24
- Operating expenses expected to be flat to up 5% vs. the € 46.2 million reported in Q3-24
(€ millions, except EPS) Q3-
2024Q2-
2024Δ Q3-
2023Δ YTD-
2024YTD-
2023Δ Revenue 156.6 151.2 +3.6% 123.3 +27.0% 454.1 419.2 +8.3% Orders 151.8 185.2 -18.0% 127.3 +19.2% 464.8 381.9 +21.7% Gross Margin 64.7% 65.0% -0.3 64.6% +0.1 65.6% 64.8% +0.8 Operating Income 55.1 49.3 +11.8% 42.7 +29.0% 145.0 147.3 -1.6% EBITDA 62.4 56.2 +11.0% 48.9 +27.6% 166.2 166.4 -0.1% Net Income* 46.8 41.9 +11.7% 35.0 +33.7% 122.7 122.2 +0.4% Net Margin* 29.9% 27.7% +2.2 28.4% +1.5 27.0% 29.1% -2.1 EPS (basic) 0.59 0.53 +11.3% 0.45 +31.1% 1.56 1.57 -0.6% EPS (diluted) 0.59 0.53 +11.3% 0.45 +31.1% 1.55 1.54 +0.6% Net Cash and Deposits 110.7 74.4 +48.8% 90.2 +22.7% 110.7 90.2 +22.7% * Excluding share-based compensation expense, net income (net margin) would have been € 50.2 million (32.1%), € 48.5 million (32.1%) and € 36.6 million (29.7%) in Q3-24, Q2-24 and Q3-23, respectively and € 148.8 million (32.8%) in YTD-24 vs. € 137.6 million (32.8%) in YTD-23
Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“Besi reported significant growth in revenue, orders and net income in Q3-24 versus the comparable quarter of last year as we continue to benefit from strength in our advanced packaging product portfolio for AI applications despite continued headwinds in mainstream and Chinese assembly equipment markets. For the quarter, revenue of € 156.6 million and orders of € 151.8 million grew by 27.0% and 19.2%, respectively, versus Q3-23 due primarily to strong growth by computing end user markets including hybrid bonding, photonics and other AI applications. Such growth was partially offset by weakness in automotive and Chinese end user markets continuing trends we have experienced this year. Net income of € 46.8 million grew by € 11.8 million, or 33.7%, reflecting a number of favorable trends including increased advanced packaging system revenue, increased gross margins related thereto and better than forecast operating expense levels despite continued growth in R&D spending for next generation hybrid bonding and TCB systems.
For the first nine months of 2024, revenue of € 454.1 million and orders of € 464.8 million increased by 8.3% and 21.7%, respectively. Growth was due to significantly higher demand by computing end user markets, particularly for AI-related hybrid bonding and photonics applications and from Taiwanese and Korean subcontractors. Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins this year were offset by higher R&D spending in support of wafer level assembly development and share-based compensation expense.
Our financial position improved as well in Q3-24 with net cash increasing to € 110.7 million at quarter-end, an improvement of € 36.3 million (+48.8%) versus Q2-24 and € 20.5 million (+22.7%) versus Q3-23 despite increased share buy-back activity. Total cash and deposits at quarter end grew to € 637.4 million including net proceeds from our Senior Note offering in July 2024 which positions us favorably for anticipated growth in the next market upcycle.
During Q3-24, Besi continued to receive substantial orders for hybrid bonding systems from existing and new customers. At quarter-end, total revenue producing hybrid bonding orders since 2021 exceeded 100 systems highlighting the importance of this new technology for 3-D AI-related assembly applications. We anticipate additional orders in Q4-24 from a variety of customers as adoption continues to expand globally. We have also received increased interest for Besi’s TCB Next system from leading logic and memory customers which positions us favorably for anticipated growth in next generation 2.5D and HBM applications.
As such, we have taken steps recently to expand our advanced packaging production capacity in anticipation of future growth. In 2025, we intend to approximately double the cleanroom capacity of our Malaysian production facilities and increase R&D and process development for our hybrid bonding and thermo compression bonding capabilities and customer support at our Singapore facility.
Looking forward to Q4-24, we expect expanded adoption for hybrid bonding applications to be mitigated by ongoing weakness in mainstream assembly markets. For Q4-24, we forecast that revenue will be flat plus or minus 10% versus Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24. In addition, gross margins are anticipated to range between 63-65% based on our projected product mix. Aggregate operating expenses are forecast to be flat to up 5% versus Q3-24.”
Share Repurchase Activity
During the quarter, Besi repurchased approximately 230,000 of its ordinary shares at an average price of € 120.45 per share or a total of € 27.8 million. In August 2024, Besi completed its prior € 60 million share repurchase program and initiated a new € 100 million share repurchase program with an anticipated completion date of October 2025. Cumulatively, as of September 30, 2024, a total of € 7.0 million has been purchased under the new share repurchase program at an average price of € 110.55 per share. As of September 30, 2024, Besi held approximately 1.6 million shares in treasury equal to 2.0% of its shares outstanding.
Investor and media conference call A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EDT). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com. Important Dates • Publication Q4/Full year 2024 results February 20, 2025 • Publication Q1-2025 results April 23, 2025 • Besi’s 2025 AGM April 23, 2025 Basis of Presentation
The accompanying Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2023 Annual Report, which is available on www.besi.com.
Contacts:
Richard W. Blickman, President & CEO
Andrea Kopp-Battaglia, Senior Vice President Finance
Claudia Vissers, Executive Secretary/IR coordinator
Edmond Franco, VP Corporate Development/US IR coordinatorTel. (31) 26 319 4500
investor.relations@besi.comAbout Besi
Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.
Caution Concerning Forward-Looking Statements
This press release contains statements about management’s future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The financial guidance set forth under the heading “Outlook” contains such forward-looking statements. While these forward-looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 and other global pandemics and the associated adverse impacts on the global economy, financial markets, global supply chains and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers; those additional risk factors set forth in Besi’s annual report for the year ended December 31, 2023 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
Consolidated Statements of Operations
(€ thousands, except share and per share data) Three Months Ended
September 30,
(unaudited)Nine Months Ended
September 30,
(unaudited)2024 2023 2024 2023 Revenue 156,570 123,320 454,060 419,227 Cost of sales 55,325 43,709 156,276 147,374 Gross profit 101,245 79,611 297,784 271,853 Selling, general and administrative expenses 27,318 23,310 97,473 81,679 Research and development expenses 18,874 13,614 55,296 42,907 Total operating expenses 46,192 36,924 152,769 124,586 Operating income 55,053 42,687 145,015 147,267 Financial expense, net 1,560 1,758 3,194 4,974 Income before taxes 53,493 40,929 141,821 142,293 Income tax expense 6,719 5,889 19,123 20,104 Net income 46,774 35,040 122,698 122,189 Net income per share – basic 0.59 0.45 1.56 1.57 Net income per share – diluted 0.59 0.45 1.55 1.54 Number of shares used in computing per share amounts: – basic 79,630,787 77,374,933 78,701,287 77,656,542 – diluted1 81,876,505 82,444,358 81,978,112 83,038,212 ______________________
1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstandingConsolidated Balance Sheets
(€ thousands) September
30, 2024
(unaudited)June
30, 2024
(unaudited)March
31, 2024
(unaudited)December
31, 2023
(audited)ASSETS Cash and cash equivalents 307,448 127,234 232,053 188,477 Deposits 330,000 130,000 215,000 225,000 Trade receivables 169,266 174,601 150,192 143,218 Inventories 104,103 99,291 99,384 92,505 Other current assets 44,731 36,346 34,756 39,092 Total current assets 955,548 567,472 731,385 688,292 Property, plant and equipment 44,220 43,571 41,328 37,516 Right of use assets 16,419 16,821 16,901 18,242 Goodwill 45,278 45,710 45,613 45,402 Other intangible assets 94,855 92,627 90,241 93,668 Deferred tax assets 8,610 9,517 11,444 12,217 Other non-current assets 1,316 1,239 1,252 1,216 Total non-current assets 210,698 209,485 206,779 208,261 Total assets 1,166,246 776,957 938,164 896,553 Current portion of long-term debt 2,241 3,033 984 3,144 Trade payables 49,211 51,620 52,382 46,889 Other current liabilities 87,739 73,023 100,606 87,200 Total current liabilities 139,191 127,676 153,972 137,233 Long-term debt 524,527 179,801 265,142 297,353 Lease liabilities 13,033 13,448 13,625 14,924 Deferred tax liabilities 11,619 10,396 12,136 12,959 Other non-current liabilities 12,449 11,352 12,914 12,671 Total non-current liabilities 561,628 214,997 303,817 337,907 Total equity 465,427 434,284 480,375 421,413 Total liabilities and equity 1,166,246 776,957 938,164 896,553 Consolidated Cash Flow Statements
(€ thousands) Three Months Ended
September 30,
(unaudited)Nine Months Ended
September 30,
(unaudited)2024 2023 2024 2023 Cash flows from operating activities: Income before income tax 53,493 40,929 141,821 142,293 Depreciation and amortization 7,388 6,248 21,181 19,155 Share based payment expense 3,400 1,575 27,216 16,300 Financial expense, net 1,560 1,758 3,194 4,974 Changes in working capital 6,031 15,697 (43,914) (2,581) Interest (paid) received (1,996) (2,649) (19,513) (27,948) Income tax paid 2,156 1,582 7,218 3,075 Net cash provided by operating activities 72,032 65,140 137,203 155,268 Cash flows from investing activities: Capital expenditures (2,099) (1,990) (10,965) (5,448) Capitalized development expenses (4,415) (4,700) (13,990) (15,341) Repayments of (investments in) deposits (200,000) – (105,000) (5,268) Net cash provided by (used in) investing activities (206,514) (6,690) (129,955) (26,057) Cash flows from financing activities: Proceeds from notes 350,000 – 350,000 – Transaction costs related to notes (6,395) – (6,395) – Payments of lease liabilities (1,080) (995) (3,186) (3,207) Purchase of treasury shares (27,829) (45,537) (57,418) (190,264) Dividends paid to shareholders – – (171,534) (222,109) Net cash used in financing activities 314,696 (46,532) 111,467 (415,580) Net increase (decrease) in cash and cash equivalents 180,214 11,918 118,715 (286,369) Effect of changes in exchange rates on cash and
cash equivalents– 130 256 (292) Cash and cash equivalents at beginning of the
period127,234 192,977 188,477 491,686 Cash and cash equivalents at end of the period 307,448 205,025 307,448 205,025 Supplemental Information (unaudited)
(€ millions, unless stated otherwise)REVENUE Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023 Per geography: China 45.5 29% 57.5 38% 58.5 40% 62.0 39% 40.8 33% 64.9 40% 37.6 28% Asia Pacific (excl. China) 51.6 33% 54.1 36% 43.6 30% 57.9 36% 42.3 34% 59.2 36% 58.2 44% EU / USA / Other 59.5 38% 39.6 26% 44.2 30% 39.7 25% 40.2 33% 38.4 24% 37.6 28% Total 156.6 100% 151.2 100% 146.3 100% 159.6 100% 123.3 100% 162.5 100% 133.4 100% ORDERS Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023 Per geography: China 45.4 30% 43.3 23% 51.1 40% 71.1 43% 46.0 36% 51.4 46% 35.5 25% Asia Pacific (excl. China) 69.3 46% 72.0 39% 45.0 35% 36.6 22% 40.9 32% 33.2 29% 71.3 50% EU / USA / Other 37.1 24% 69.9 38% 31.6 25% 58.7 35% 40.4 32% 28.0 25% 35.2 25% Total 151.8 100% 185.2 100% 127.7 100% 166.4 100% 127.3 100% 112.6 100% 142.0 100% Per customer type: IDM 84.5 56% 122.4 66% 53.5 42% 82.7 50% 70.5 55% 60.5 54% 74.0 52% Subcontractors 67.3 44% 62.8 34% 74.2 58% 83.7 50% 56.8 45% 52.1 46% 68.0 48% Total 151.8 100% 185.2 100% 127.7 100% 166.4 100% 127.3 100% 112.6 100% 142.0 100% HEADCOUNT Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Fixed staff (FTE) 1,807 87% 1,783 86% 1,760 88% 1,736 93% 1,725 87% 1,689 86% 1,682 84% Temporary staff (FTE) 271 13% 279 14% 236 12% 134 7% 248 13% 279 14% 312 16% Total 2,078 100% 2,062 100% 1,996 100% 1,870 100% 1,973 100% 1,968 100% 1,994 100% OTHER FINANCIAL DATA Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023 Gross profit 101.2 64.7% 98.3 65.0% 98.3 67.2% 103.9 65.1% 79.6 64.6% 106.6 65.6% 85.7 64.2% Selling, general and admin expenses: As reported 27.3 17.4% 30.5 20.2% 39.6 27.1% 24.3 15.2% 23.3 18.9% 29.4 18.1% 29.0 21.7% Share-based compensation expense (3.4) -2.1% (6.9) -4.6% (16.9) -11.6% (2.8) -1.7% (1.6) -1.3% (5.5) -3.4% (9.3) -7.0% SG&A expenses as adjusted 23.9 15.3% 23.6 15.6% 22.7 15.5% 21.5 13.5% 21.7 17.6% 23.9 14.7% 19.7 14.8% Research and development expenses: As reported 18.9 12.1% 18.5 12.2% 17.9 12.2% 13.5 8.5% 13.6 11.0% 14.3 8.8% 15.0 11.2% Capitalization of R&D charges 4.4 2.8% 4.9 3.2% 4.7 3.2% 5.7 3.6% 4.7 3.8% 5.3 3.3% 5.4 4.0% Amortization of intangibles (3.9) -2.5% (3.6) -2.3% (3.6) -2.4% (3.3) -2.1% (3.3) -2.6% (3.5) -2.2% (3.5) -2.6% R&D expenses as adjusted 19.4 12.4% 19.8 13.1% 19.0 13.0% 15.9 10.0% 15.0 12.2% 16.1 9.9% 16.9 12.7% Financial expense (income), net: Interest income (5.2) (3.0) (4.0) (3.6) (2.9) (3.1) (2.6) Interest expense 5.7 2.1 2.8 3.0 2.8 2.9 2.9 Net cost of hedging 1.9 1.4 1.6 1.7 1.7 2.0 1.6 Foreign exchange effects, net (0.8) 0.5 0.2 (0.4) 0.2 (0.1) (0.4) Total 1.6 1.0 0.6 0.7 1.8 1.7 1.5 Gross cash 637.4 257.2 447.1 413.5 391.2 378.3 644.9 Operating income (as % of net sales) 55.1 35.2% 49.3 32.6% 40.7 27.8% 66.1 41.4% 42.7 34.6% 62.9 38.7% 41.7 31.3% EBITDA (as % of net sales) 62.4 39.8% 56.2 37.2% 47.5 32.5% 72.7 45.6% 48.9 39.7% 69.3 42.6% 48.2 36.1% Net income (as % of net sales) 46.8 29.9% 41.9 27.7% 34.0 23.2% 54.9 34.4% 35.0 28.4% 52.6 32.4% 34.5 25.9% Effective tax rate 12.6% 13.0% 15.3% 16.1% 14.4% 14.0% 14.0% Income per share Basic 0.59 0.53 0.44 0.71 0.45 0.68 0.44 Diluted 0.59 0.53 0.44 0.68 0.45 0.66 0.44 Average shares outstanding (basic) 79,630,787 79,281,533 77,181,326 77,070,082 77,374,933 77,634,197 77,946,873 Shares repurchased Amount 27.8 14.8 14.8 23.1 45.5 66.9 77.7 Number of shares 230,807 105,042 101,049 226,572 447,829 761,937 1,120,327 -
MIL-OSI: eQ Community Properties Fund renewed loans in excess of EUR 400 million – Deutsche Bank as a new lender
Source: GlobeNewswire (MIL-OSI)
Press release
24 October 2024 10:30 ameQ Community Properties Fund (AIF) has entered into a EUR 154 million senior secured loan arrangement with Deutsche Bank AG. The collateral portfolio consists of community and healthcare assets in the Helsinki Metropolitan Area and Tampere.
In June, the fund also extended a EUR 253 million senior secured loan facility with its current lenders Nordea Bank, Danske Bank, Swedbank and Aktia.
Through the recent successful arrangements, the Fund has broadened and strengthened its lender base, secured a long-term financing as well as extended its loan maturities and fixed interest periods.
Head of Real Estate Investments at eQ, Tero Estovirta says: “We are very pleased to have an international and prominent financier, Deutsche Bank, as a new lender in eQ Community Properties Fund. We have worked for a long time and systematically to obtain international debt financing and Deutsche Bank has been one of the most interesting ones already for a while. It is great to have now initiated our cooperation. Generally, financiers have shown strong interest and trust towards Finnish real estate and open-ended funds. Access to debt has clearly improved as interest rate levels decrease. It is possible to reach cost-effective and sustainable financing solutions. All the lenders of eQ Community Properties Fund are leading players in the market and together with our latest addition, Deutsche Bank, they facilitate a strong financing platform for the future. We thank all our lenders for pragmatic and solution-orientated processes.”
eQ Community Properties Fund (AIF) was established in 2012. The market value of the fund’s property portfolio is EUR 1.75 billion as per September 2024. The fund is the largest community properties investor and developer in Finland. The assets are located in the Helsinki Metropolitan Area and selected growth centres in Finland.
Helsinki 24 October 2024
eQ Asset Management Ltd
Further information:
Tero Estovirta, Head of Real Estate Investments, eQ Asset Management Ltd
+358 50 593 6194 / tero.estovirta@eQ.fieQ Group is a group of companies that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 13.3 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website www.eQ.fi.
-
MIL-OSI: MKS Instruments Breaks Ground on Super Center Factory in Malaysia
Source: GlobeNewswire (MIL-OSI)
ANDOVER, Mass., United States and KUALA LUMPUR, Malaysia, Oct. 24, 2024 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that transform the world, the Malaysian Investment Development Authority (MIDA) and InvestPenang today announced that MKS celebrated the groundbreaking ceremony of its super center factory in Penang, Malaysia to support the growing needs of semiconductor equipment for wafer fabrication in the region and globally. The state-of-the-art facility will be located on a 17-acre plot, spanning approximately 500,000 square feet. and will employ approximately 1,000 people. The new factory will be built in multiple phases, with the first phase scheduled for completion in the first half of 2026.
ADUN Bukit Tambun and Director of InvestPenang, YB Goh Choon Aik stated, “Penang, renowned as the Silicon Valley of the East, has cemented its position as a preferred global destination for electronics and electrical investments in Southeast Asia. With a legacy of five decades of industrialisation and a reputation for innovation and technological excellence, the state offers a thriving industrial ecosystem that naturally attracts investors. MKS Instruments’ expansion into Penang is a testament to the state’s appeal as a preferred investment destination, supported by its robust ecosystem.”
YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), welcomed MKS Instruments to Malaysia, stating, “This groundbreaking super center factory is a resounding affirmation of our government’s commitment to expediting investors’ projects with the able assistance of agencies like MIDA. More importantly, this aligns with our New Industrial Master Plan 2030, which aims to enhance our economic complexity, fostering symbiotic relationships between global companies and local SMEs, and creating high-skilled, high-paying jobs in cutting-edge sectors like engineering and technical fields, for the benefit of Malaysians. I’m confident that these initiatives will catapult our semiconductor sector to the pinnacle of the global value chain, a true ‘tour de force’ in the world of industry.”
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid stated “This momentous occasion presents a golden opportunity for our machinery and equipment (M&E) companies to showcase their prowess in producing high-value products and integrated services that meet the exacting standards of multinational corporations (MNCs). MIDA remains steadfast in its commitment to supporting and facilitating investments that enhance operational capabilities, ultimately catalysing the meteoric rise of Malaysia’s manufacturing sector, a true ‘industrial powerhouse’ in the making.”
“Penang offers an attractive and rapidly growing semiconductor ecosystem, and building a significant presence here is part of our strategic and long-term capital planning,” said Dr. John T.C. Lee, President and Chief Executive Officer of MKS. “Adding Penang to our global footprint puts us closer to our customers, suppliers and a robust technology infrastructure, including a deep and talented labor pool, as we continue to spur innovation and enhance our capabilities as a leader across a broad array of semiconductor manufacturing applications.”
MIDA reports that for the first half of 2024 (1H2024), the Machinery and Equipment (M&E) sector saw promising growth, with a total of 64 projects approved, amounting to investments valued at RM2.8 billion. These projects are anticipated to create significant opportunities, generating over 3,500 new jobs and contributing to the sector’s continued development and expansion in Malaysia.
About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.
About InvestPenang
InvestPenang is the Penang State Government’s principal agency for the promotion of investments. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy). For more information, please visit https://investpenang.gov.my.
About MKS Instruments
MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.
For more information, please contact:
MIDA InvestPenang MKS Instruments Ms. Zakiah Sajidan
Director, Machinery and Metal
Technology Division
Email: zakiah@mida.gov.my
Tel.: +603 22676769Ms. Elaine Cheah
Communications & Business
Intelligence
Email: elaine@investpenang.gov.my
Tel.: +604 6468833Mr. Bill Casey
Senior Director, Marketing
Communications
Email: press@mksinst.com
Tel.: +1 630 995 6384Ms. Kerry Kelly
Partner, Kekst CNC
Email: kerry.kelly@kekstcnc.comSafe Harbor for Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, regarding MKS’ construction of a factory in Malaysia and the projected timeline. Any statements that are not statements of historical fact should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein, including as a result of the factors described in MKS’ Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. -
MIL-OSI Economics: Pink October: A Call to Action for Breast Cancer Awareness in Africa
Source: African Development Bank Group
Every October, the world unites in a vibrant global campaign aimed at eradicating breast cancer. Known as “Pink October”, this campaign is dedicated to raising awareness about breast cancer, promoting early detection, and supporting research for better treatment options. For the African Development Bank (the Bank), the month serves as a crucial reminder of the ongoing health challenges faced by people, particularly women, across the continent. Gender perspectives reveal that women encounter unique obstacles, be they social, cultural, economic, policy related. This makes Pink October an even more pressing call for action to improve health outcomes and the quality of life of the people of Africa.
The Rising Challenge of Breast Cancer in Africa
Breast cancer is now the most common form of cancer among women globally, causing over 670,000 deaths in 2022[i]. In sub-Saharan Africa, an alarmingly, 60 percent to 70 percent of women are diagnosed with advanced stage disease presented at Stage 3 and 4. Accessible infrastructure, quality training, preventive care, and supportive policies are essential for timely and adequate treatment, which significantly impacts survival rates. Currently, only 50 percent of women in Sub-Saharan Africa survive five years post-diagnosis compared to over 90 percent in high-income countries with affordable health care[ii].
The Bank’s Response: Strategic Initiatives
The Bank is making meaningful strides in addressing critical health challenges and empowering communities, particularly women in regional member countries. A few examples include the:
- Uganda Oncology Project (East Africa Centre of Excellence Project): Approved in December 2023, this project aims to enhance cancer management in Uganda and the East African Community region by addressing critical shortages in oncology professionals. The project focuses on improving infrastructure and education at the Uganda Cancer Institute. Additionally, the project seeks to support regional integration in higher education, ensuring that training and services meet the growing demand for specialized oncology care to address the pressing shortage of skilled oncology professionals in Uganda and the East African Community. Key outputs include:
- Building research and training capacity in cancer diagnosis and treatment.
- Providing advanced cancer treatment facilities notably breast cancer.
- Offering scholarships for 60 postgraduate candidates in oncology, with at least 30 percent reserved for women to help reduce the traditionally male-dominated Oncology field.
- Increase 40 percent of early-stage breast cancer diagnoses and other forms of cancers by 2026.
- Partnership with HealthTech Hub Africa, to develop a pan-African blueprint aimed at accelerating health tech innovations across the continent. This collaboration addresses the urgent demand for solutions to close health infrastructure gaps and extend affordable services to underserved communities by promoting advanced technologies like telemedicine and AI-powered diagnostics. HealthTech Hub Africa has supported 68 organizations in 17 countries, impacting over 2.35 million beneficiaries and creating more than 830 jobs. The agreement was announced at the HealthTech Africa Investor Summit on October 16, 2023.
“By creating a pan-African blueprint for health tech innovations, we aim to address critical infrastructure needs and extend affordable services to underserved communities. This collaboration will empower innovators and enhance healthcare delivery for millions, ultimately improving outcomes for women and men affected by breast cancer,”
states Martha T.M. Phiri, Director of Human Capital, Youth and Skills Development.
Institutional Initiatives At an institutional level, the Bank launches several initiatives every year to raise awareness about breast cancer and support the staff. This year for instance, an inaugural conference will be held on October 25, featuring expert discussions on breast cancer awareness and prevention. Additionally, screenings will be provided on October 29-31, ensuring access to essential health services. Regional Directorate Generals (RDGs) will spearhead communication efforts in their areas, promoting the importance of prevention and screening. Furthermore, the Bank’s medical plan will cover 100 percent of periodic medical check-ups, including mammograms and breast ultrasounds conducted. To enhance support, the Bank will also assist with treatments, medical follow-ups, and psychological support for employees affected by breast cancer.
“Breast cancer awareness is not just a campaign; it’s a commitment to the health and well-being of our employees and their families. By promoting early detection and providing essential support, we aim to create a culture where health takes priority, and everyone feels empowered to take charge of their wellness.”
Ali Ramzi Mohammed, Director staff welfare services, compensation and employment policy.
A Collective Commitment
As we observe Pink October, let us reaffirm our commitment to fighting breast cancer in Africa. The African Development Bank prioritizes internal efforts, fostering a supportive environment for its employees through awareness campaigns and health initiatives. By investing in health systems, supporting research, and advocating for universal access to care, we can reduce the burden of breast cancer and empower women everywhere.
As we highlight these initiatives, it is important to remember the real impact of our efforts through the voices of those directly affected. A colleague and cancer survivor shared her experience, emphasizing the critical role of awareness and support in the journey through breast cancer:
“Surviving breast cancer has shown me the power of community and the importance of early detection. I am grateful for the support around me including the Bank and hope my journey inspires others to prioritize their health and seek the care they deserve.”
Zeneb Touré, Manager of the Civil Society Engagement Division.
Let’s wear pink not just this October, but every day, as a symbol of hope, solidarity, and our shared commitment to fight breast cancer. Together, we can create a healthier future for women and men across Africa.
- Uganda Oncology Project (East Africa Centre of Excellence Project): Approved in December 2023, this project aims to enhance cancer management in Uganda and the East African Community region by addressing critical shortages in oncology professionals. The project focuses on improving infrastructure and education at the Uganda Cancer Institute. Additionally, the project seeks to support regional integration in higher education, ensuring that training and services meet the growing demand for specialized oncology care to address the pressing shortage of skilled oncology professionals in Uganda and the East African Community. Key outputs include:
-
MIL-OSI USA: FACT SHEET: Biden- Harris Administration Strengthens Standards to Protect Millions from Exposure to Lead Paint Dust, Announces New Actions to Address Toxic Lead Exposure
US Senate News:
Source: The White House
Today’s announcement is expected to reduce the lead exposure of up to 1.2 million people every year and represents one of over 100 actions taken by the Administration in 2024 to reduce lead poisoning
President Biden and Vice President Harris have been clear that all Americans deserve to live free from fear of toxic lead exposure. Since Day One, the Biden-Harris Administration has marshalled a whole of government effort to reduce all sources of lead exposure, issuing a comprehensive Lead Pipe and Paint Action Plan that guides federal action to achieve a lead-free future.
Today, as we continue to mark National Lead Poisoning Prevention Week, the Biden-Harris Administration is taking action to further reduce lead exposure by issuing a final Environmental Protection Agency (EPA) rule to strengthen requirements for the removal of lead paint dust in pre-1978 housing and child care facilities.
Lead is a neurotoxin that can irreversibly harm brain development in children, lower IQ, cause behavioral problems, and lead to life-long health effects. There is no safe level of lead exposure. Yet, due to decades of inequitable infrastructure development and underinvestment, lead poisoning disproportionately affects low-income communities and communities of color.
Today’s final rule sets new standards for lead abatement activities that will better protect children and communities from the harmful effects of exposure to dust generated from lead paint. The rule will help protect people in communities across the country from these harms, and is expected to reduce the lead exposures of up to nearly 1.2 million people every year, providing public health and economic benefits up to 30 times greater than the costs. Although the United States banned lead-based paint in residences in 1978, an estimated 31 million houses built before 1978 still contain lead-based paint, and 3.8 million are home to one or more child under the age of six, putting them at risk of lead exposure.
Since the announcement of the Biden-Harris Lead Pipe and Paint Action Plan, the Administration has taken hundreds of actions across more than 10 agencies to reduce the risk of lead poisoning in drinking water, paint, soil, food and household products, the workplace, and to combat lead exposure internationally – including more than 100 actions in the past year alone. Some of the actions since the latest Action Plan progress update in November 2023 include:
Reducing Exposure to Lead from Paint and Dust in the Home – Lead in household dust originates from indoor sources such as deteriorated, lead-based paint on surfaces. In the last year, the Administration has worked diligently to identify, help tackle, and eliminate these exposures in several ways:
Earlier this month, the Department of Housing and Urban Development (HUD) announced more than $420 million in awards to remove lead hazards from homes, including HUD-assisted homes, ensuring the safety of children, residents, and families. This includes $2 million to remove other housing-related hazards from homes in conjunction with weatherization efforts, and nearly $10 million to facilitate research on better identifying and controlling lead and other housing-related hazards. These awards are part of President Biden’s Justice40 Initiative, which seeks to ensure that 40 percent of the overall benefits of certain Federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
In August 2024, the Department of Health and Human Services (HHS) issued a new final rule updating the Head Start Program Performance Standards. This rule requires Head Start programs to protect children from exposure to lead in water and paint through regular testing and inspection and remediate lead in Head Start facilities where lead exists.
In 2024, EPA conducted approximately 1,400 compliance monitoring activities for lead-based paint in over 190 communities, more than a third of which were communities with environmental justice concerns. Additionally, EPA’s Federal Facilities Enforcement Office conducted compliance monitoring activities at 18 military installations in 2024. This work protects our service members and their families from exposure to lead-based paint in their homes at military bases.
Reducing Exposure to Lead from Drinking Water – Millions of buildings still receive their water through a lead pipe. The Biden-Harris Administration has taken historic steps to meet President Biden’s commitment to replace every lead pipe in the country within a decade:
Earlier this month President Biden traveled to Milwaukee, Wisconsin, to announce a final rule that requires drinking water systems nationwide to replace lead service lines within 10 years. This rule will protect children from brain damage, prevent up to 900,000 infants being born with low birth weight, and protect 1,100 adults from premature death from heart disease every year.
President Biden secured a historic $15 billion in funding through the Bipartisan Infrastructure Law specifically dedicated for replacing lead service lines, and provided an additional $2.6 billion from his Bipartisan Infrastructure Law for drinking water upgrades and lead pipe replacements, along with an additional $11.7 billion in general-purpose funding through the Drinking Water State Revolving Fund which can also be used for lead pipe replacement. To date, EPA has announced over $18 billion of this funding across every state. Nearly half of this funding is required to flow to disadvantaged communities, in the form of grants and zero-interest loans.
Thanks to the Biden-Harris Administration’s actions, cities across the country are already making progress in replacing lead pipes. Cities with some of the highest numbers of lead pipes, like Milwaukee, Detroit, Pittsburgh, St. Paul, and Denver, have received funding from the Administration and are now on track to replace all lead pipes within 10 years or less. Under this Administration, over 367,000 lead pipes have been replaced nationwide, benefitting nearly 1 million people.
Funding from the American Rescue Plan’s $350 billion State and Local Fiscal Recovery Fund can be used by states and communities to replace lead service lines and remediate lead paint. To date, well over $20 billion nationwide has been invested in water infrastructure projects.
During this Administration, the EPA has also used its Water Infrastructure Finance and Innovation Act (WIFIA) program to provide well over $350 million in financing to communities for lead pipe replacement.
Since launching in November 2023, EPA’s Get the Lead Out Initiative has provided technical assistance to public water systems nationwide to identify lead pipes and accelerate their replacement. Prioritizing disadvantaged and underserved communities, the initiative is providing assistance to a growing list of public water systems, including in Michigan, Ohio, and Illinois, and facilitates access to funding from the Bipartisan Infrastructure Law. This initiative builds on the partnership between EPA, the Department of Labor (DOL), and 40 underserved communities to support lead pipe replacement.
In January 2023, the White House Summit on Accelerating Lead Pipe Replacement hosted by Vice President Harris, announced new actions and progress to deliver clean drinking water, replace lead pipes, and remediate lead paint to protect children and communities across America, including the Biden-Harris Get the Lead Out Partnership comprised of state and local officials, water utilities, labor unions, and other nongovernmental organizations who committed to advance and accelerate lead pipe replacement. This White House Partnership spurred the creation of a the Great Lakes Lead Pipes Partnership, a first-of-its kind, mayor-led effort to accelerate lead pipe replacement in cities with the heaviest lead burdens.
In August 2024, EPA announced $26 million in grant funding to protect children from lead in drinking water at schools and childcare facilities across the country. These grants will be used by 55 States and territories to reduce lead exposure where children learn and play.
The Department of the Interior conducted more than 330 water system assessments at all Indian Affairs-owned sites, including schools, offices and detention centers, among others. Beyond service lines, assessments collected lead/copper samples to identify lead sources in water distribution systems and where lead levels affected drinking points DOI coordinated immediate remediation strategies and implemented actions including alternative water sourcing and confirmatory sampling.
Reducing Exposure to Lead from Air – Major sources of lead in the air include emissions from manufacturing, waste and metals processing, and aircraft operating on leaded aviation fuel. To tackle these emissions, the Biden-Harris Administration has taken the following actions:
In January 2024, EPA released the Integrated Science Assessment for Lead as part of its review of the lead National Ambient Air Quality Standards. This technical document, along with additional technical and policy assessments, will provide the scientific foundation for EPA’s decisions as it regulates air lead exposure.
In October 2023, EPA issued a final determination that emissions of lead from aircraft engines that operate on leaded fuel cause or contribute to air pollution which may reasonably be anticipated to endanger public health and welfare. With this final determination, EPA and Federal Aviation Administration (FAA) have begun work to consider regulatory options to address lead emissions from aircrafts.
Reducing Exposure to Lead from Soil – Lead contamination at legacy pollution sites from past industrial operations, like lead mining and smelting, can accumulate in soil and poses a threat to human health and the environment. Reducing lead levels in soils can reduce exposure risks.
The Bipartisan Infrastructure Law invests $5 billion to clean up legacy pollution, including lead contamination, at Superfund and Brownfields sites. In Fiscal Year 2024, EPA completed 63 Superfund cleanup projects that addressed lead contamination in soil to protect families and children from the harmful impacts of lead. In addition, lead is the environmental contaminant most commonly reported by EPA Brownfields cleanup grant recipients. In fiscal year 2024, Brownfields grant recipients completed 63 brownfields cleanups that addressed lead contamination.
In January 2024, after years of research and advanced understanding of the latest science on lead, EPA issued new guidance to improve screenings for lead in residential soils at Superfund and other contaminated sites. This new guidance cuts in half the recommended screening levels issued 30 years ago and takes into account the potential for cumulative impacts by recommending even more stringent levels in areas where there may be additional sources of lead exposure, such as lead in drinking water or lead paint in homes.
Reducing Exposure to Lead from Food and Household Products – Lead may be present in food when it is in the environment where foods are grown, raised, or processed. To reduce the risk to children of ingesting lead in food, the Administration is working to addressed lead hazards in processed foods.
In September 2024, the Food and Drug Administration (FDA) published a new study on dietary exposure from lead in infants and young children. This action is part of the agency’s Closer to Zero effort, which sets forth the FDA’s science-based approach to continually reduce exposure to lead, arsenic, cadmium, mercury and other contaminants to the lowest levels possible in foods eaten by babies and young children.
Protecting People from Lead Exposure in the Workplace – Workers can be exposed to lead as a result of the production, use, maintenance, recycling, and disposal of lead material and products. In 2024, the Administration sought to protect workers through a number of actions.
In April 2024, the National Institute for Occupational Safety and Health (NIOSH) released Trends in Workplace Lead Exposure, monitoring workplace lead exposure trends through the Adult Blood Lead Epidemiology and Surveillance program.
In March 2024, at the direction of President Biden, the Department of Veterans Affairs (VA) announced that all veterans exposed to toxins and other hazards during military service—including lead—are now eligible for VA health care.
Accelerating Innovations to Improve Blood Lead Testing – Testing blood is the best way to determine if a person has had lead exposure, as there are often no immediate symptoms when someone is exposed to lead. Based on blood lead test results, healthcare providers can recommend follow-up actions and care.
In March 2024, the Centers for Disease Control and Prevention (CDC) announced Phase 2 of the Lead Detect Prize on challenge.gov, inviting selected Phase 1 participants to develop their winning concepts into detailed designs. This challenge provides a $1 million prize pool to accelerate the development of next-generation point-of-care blood lead testing technology. National Aeronautics and Space Administration (NASA) and the FDA support the challenge, and it spotlights the urgent need to identify and foster new or existing breakthrough solutions and products for optimal lead testing in children.
Establishing Domestic Partnerships to Reduce All Lead Exposure – The Administration is engaging stakeholders in a number of ways to reduce community exposure to lead in the United States.
In July 2024, the President’s Task Force on Environmental Health Risks and Safety Risks to Children published the Progress Report on the Federal Lead Action Plan, a comprehensive update on the government’s progress since 2018 toward reducing childhood lead exposures. HUD, EPA, and HHS, as co-leading members of the Task Force’s Lead Subcommittee, are leading aggressive actions to combat lead exposure. The Federal Lead Action Plan promotes a vision that the United States will become a place where children, especially those in communities with environmental justice concerns, can live, learn and play and remain safe from lead exposure and its harmful effects.
In June 2024, the CDC published the Childhood Lead Poisoning Prevention National Classroom program. This program features multiple training methods and outreach strategies, including slide presentations, training videos, webinars, podcasts, and materials posted online to engage a broad range of audiences, including public health professionals, other physicians, general audiences, and high school students, through social media platforms and many other outlets.
In February 2024, the EPA in collaboration with HUD and CDC/ASTDR published A U.S. Lead Exposures Hotspot Analysis, which identifies states and counties with the highest potential lead exposure risk from old housing sources of lead. This analysis applied science-based methods based on available data, continuing the agencies’ commitment to advancing whole of government efforts to focus lead actions in disproportionately impacted locations.
EPA continues to establish and lead U.S. whole-of-government partnerships to develop and apply a science-based blueprint to identify communities with high lead exposures and improve their health outcomes in support of EPA’s Lead Strategy and priority activities of the President’s Task Force on Environmental Health Risks and Safety Risks to Children.
Spearheading an International Effort to Reduce Global Lead Exposure – Amidst historic actions taken domestically to combat lead exposure in the United States, the Administration has built an unprecedented global coalition to tackle lead exposure in low- and middle-income countries, where one in two children has elevated levels of lead in their blood.
In September 2024, the U.S. Agency for International Development (USAID) joined UNICEF and over 60 partners and 26 countries to launch the Partnership for a Lead-Free Future, the first-ever public-private partnership dedicated to tackling lead exposure in low- and middle-income countries. The Partnership committed $150 million toward this effort—at least 10 times the average estimated annual investment to combat lead exposure internationally over the past five years.
Earlier this year, USAID, through its Enterprises for Development, Growth, and Empowerment (EDGE) Fund, provided $5 million to the Lead Exposure Elimination Project (LEEP) to accelerate the global transition to lead-free paint. Spanning over 30 countries in Africa, Asia, Latin America, Central Asia, and Europe, the LEEP partnership will support governments in introducing lead paint regulations and demonstrate how the private sector can reduce lead exposure, saving lives and protecting communities. -
MIL-OSI Economics: 23 October 2024 Regions with the best exhibitions at the Far East Street announced At the meeting of the Far Eastern Federal District Council held under the leadership of Yury Trutnev, Deputy Prime Minister of the Russian Federation and Plenipotentiary Representative of the President of the Russian Federation in the Far Eastern Federal District (FEFD), the Far Eastern regions that presented the best expositions at the Far East Street exhibition in September this year were announced.
Source: Eastern Economic Forum
Participant Package
- participation at all business and cultural programme events at the Forum (excluding invitation only events);
- access to EEF 2021 exhibitions;
- access to networking areas at the Forum venue (excluding invitation only event locations).
EUR 3,924 (inc. VAT 20%)*
USD 4,392 (inc. VAT 20%)*STANDARD PACKAGE
- All events on the business programme (except the plenary session and invitation-only events)
- Excludes opportunity to attend the plenary session
- Access to the business networking areas at the Forum venue (except the plenary session area in the run-up to and during the plenary session and invitation-only networking areas)
EUR 2,352 (inc. VAT 20%)*
USD 2,640 (inc. VAT 20%)*If you received an invitation or your application to attend a Roscongress Foundation event in 2020 (Russia House in Davos, Russian Investment Forum, St. Petersburg International Economic Forum) was approved by the relevant Organizing Committee, you can simply submit an application to participate in EEF 2020 through your Roscongress personal account, as your personal account has already been created. For more information, visit the Roscongress personal account section.
Your personal account login and password information, were previously sent to you by the email specified during registration. You can restore access to your account by calling the Forum information centre at: +7 (499) 7000 111.
Start off by accessing the ‘Events’ section of your account. In the ‘Upcoming’ section, select the Eastern Economic Forum from the list of events and then select the ‘Registration’ section. The application will automatically insert the data from your account profile.
Please review the passport data in your participation application carefully. If any of your data has changed since you have registered your account, please update those data points in your participation application. Please complete any empty fields and press the ‘Save’ button.
To edit the data in the general settings of your account, please contact our information centre at: +7 (499) 7000 111.
If you have not submitted an application to attend a Roscongress Foundation event in 2020 (Russia House in Davos, Russian Investment Forum, St. Petersburg International Economic Forum), you must apply through the participation application on the EEF 2020 website. Sometime after you have submitted your application, an email containing your login and password information for your Roscongress personal account will be sent to the email you provided in the application. For more information, visit the Roscongress personal account section.