Category: GlobeNewswire

MIL-OSI: BW Offshore: Invitation to Q4 2024 Presentation 27 February

Source: GlobeNewswire (MIL-OSI)

Invitation to Q4 2024 Presentation 27 February

BW Offshore will release its Q4 2024 results on Thursday 27 February at 07:30 CET.

A conference call followed by Q&A will be hosted by CEO Marco Beenen and CFO Ståle Andreassen the same day at 09:00 CET.

Conference call information:

You can follow the presentation via webcast with supporting slides and a Q&A module, available on:

BW Offshore Limited – Q4 Presentation Webcast

Please note that if you follow the webcast via the above URL, you will experience a 30 second delay compared to the main conference call. The web page works best in an updated browser – Chrome is recommended.

For further information, please contact:
Ståle Andreassen, CFO, +47 91 71 86 55

IR@bwoffshore.com or www.bwoffshore.com

About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has a fleet of 3 FPSOs with potential and ambition to grow. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets world-wide. BW Offshore has around 1,100 employees and is publicly listed on the Oslo stock exchange.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

The MIL Network –

February 21, 2025

MIL-OSI: Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):

Net premiums earned increased 4.6% to $236.6 million
Combined ratio of 92.9%, compared to 106.8%
Net income of $24.0 million, or 70 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share
Net investment gains (after tax) of $0.2 million, or 1 cent per diluted Class A share, compared to $1.8 million, or 5 cents per Class A share, are included in net income (loss)

Significant items for full year of 2024 (all comparisons to full year of 2023):

Net premiums earned increased 6.2% to $936.7 million
Combined ratio of 98.6%, compared to 104.4%
Net income of $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or 14 cents per diluted Class A share
Net investment gains (after tax) of $3.9 million, or 12 cents per diluted Class A share, compared to $2.5 million, or 8 cents per diluted Class A share, are included in net income
Book value per share of $15.36 at December 31, 2024, compared to $14.39 at year-end 2023

Financial Summary

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%
Investment income, net	12,050		10,710		12.5		44,918		40,853		10.0
Net investment gains	256		2,243		-88.6		4,981		3,173		57.0
Total revenues	249,954		239,468		4.4		989,605		927,338		6.7
Net income (loss)	24,003		(1,970)		NM²		50,862		4,426		NM
Non-GAAP operating income (loss)¹	23,801		(3,742)		NM		46,927		1,919		NM
Annualized return on average equity	18.1%		-1.7%		19.8 pts		9.9%		0.9%		9.0 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.70	$	(0.06)	NM		$	1.53	$	0.14	NM
Net income (loss) – Class B	0.64		(0.06)		NM		1.38		0.11		NM
Non-GAAP operating income (loss) – Class A (diluted)	0.69		(0.11)		NM		1.41		0.06		NM
Non-GAAP operating income (loss) – Class B	0.63		(0.11)		NM		1.27		0.04		NM
Book value	15.36		14.39		6.7	%	15.36		14.39		6.7	%

^¹_{The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).}^²_{Not meaningful.}

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.

“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.

“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”

Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,701	$	133,602	2.3	%	$	539,683	$	533,029	1.2	%
Personal lines	99,934		92,583		7.9		396,968		349,042		13.7
Total net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%

Net Premiums Written
Commercial lines:
Automobile	$	42,922	$	39,888	7.6	%	$	184,989	$	174,741	5.9	%
Workers’ compensation	20,934		22,283		-6.1		103,533		107,598		-3.8
Commercial multi-peril	50,431		48,010		5.0		213,959		195,632		9.4
Other	9,790		10,544		-7.2		45,439		50,458		-9.9
Total commercial lines	124,077		120,725		2.8		547,920		528,429		3.7
Personal lines:
Automobile	54,078		54,609		-1.0		243,036		215,957		12.5
Homeowners	30,958		34,653		-10.7		140,613		139,688		0.7
Other	2,329		2,706		-13.9		10,712		11,623		-7.8
Total personal lines	87,365		91,968		-5.0		394,361		367,268		7.4
Total net premiums written	$	211,442	$	212,693	-0.6%		$	942,281	$	895,697	5.2	%

Net Premiums Written

The 0.6% decrease in net premiums written¹ for the fourth quarter of 2024 compared to the fourth quarter of 2023, as shown in the table above, represents the combination of 2.8% growth in commercial lines net premiums written and a 5.0% decrease in personal lines net premiums written. The $1.3 million decrease in net premiums written for the fourth quarter of 2024 compared to the fourth quarter of 2023 included:

Commercial Lines: $3.3 million increase that we attribute primarily to solid premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in classes of business we have targeted for profit improvement.
Personal Lines: $4.6 million decrease that we attribute primarily to planned attrition due to non-renewal actions and lower new business writings, offset partially by a continuation of renewal premium rate increases and solid policy retention.

The $46.6 million increase in net premiums written for the full year of 2024 compared to the full year of 2023 included:

Commercial Lines: $19.5 million increase that we attribute primarily to strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states we exited or classes of business we have targeted for profit improvement.
Personal Lines: $27.1 million increase that we attribute primarily to a continuation of renewal premium rate increases and solid policy retention, offset partially by planned attrition due to non-renewal actions and lower new business writings.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three months and full years ended December 31, 2024 and 2023:

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

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses	52.3	%	61.8	%	54.0	%	57.5	%
Loss ratio – weather-related losses	3.3		5.9		7.2		8.3
Loss ratio – large fire losses	4.0		4.8		4.9		5.2
Loss ratio – net prior-year reserve development	-0.2		-0.4		-1.6		-1.9
Loss ratio	59.8		72.1		64.5		69.1
Expense ratio	32.8		34.1		33.7		34.7
Dividend ratio	0.3		0.6		0.4		0.6
Combined ratio	92.9	%	106.8	%	98.6	%	104.4	%

Statutory Combined Ratios
Commercial lines:
Automobile	115.7	%	104.8	%	102.6	%	97.3	%
Workers’ compensation	105.6		107.9		104.4		96.6
Commercial multi-peril	79.4		107.8		95.0		112.3
Other	84.7		95.0		80.0		85.5
Total commercial lines	97.3		105.8		98.2		101.6
Personal lines:
Automobile	96.5		119.7		97.4		109.7
Homeowners	76.2		101.3		99.6		108.6
Other	106.3		59.2		99.5		75.8
Total personal lines	89.5		111.1		98.3		108.2
Total lines	94.0	%	107.8	%	98.3	%	104.2	%

Loss Ratio – Fourth Quarter

For the fourth quarter of 2024, the loss ratio decreased to 59.8%, compared to 72.1% for the fourth quarter of 2023. The core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, was 52.3% for the fourth quarter of 2024, which improved significantly compared to 61.8% for the fourth quarter of 2023. For the commercial lines segment, the core loss ratio of 55.2% for the fourth quarter of 2024 improved from 59.6% for the fourth quarter of 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 48.4% for the fourth quarter of 2024 decreased significantly from 65.1% for the fourth quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses of $7.7 million, or 3.3 percentage points of the loss ratio, for the fourth quarter of 2024 decreased from $13.4 million, or 5.9 percentage points of the loss ratio, for the fourth quarter of 2023. Our insurance subsidiaries did not incur significant losses from any single weather event during the fourth quarters of 2024 or 2023. The impact of weather-related loss activity to the loss ratio for the fourth quarter of 2024 was lower than our previous five-year average of 5.2 percentage points for fourth quarter weather-related losses.

Large fire losses, which we define as individual fire losses in excess of $50,000, were $9.5 million, or 4.0 percentage points of the loss ratio, for the fourth quarter of 2024, compared to $10.8 million, or 4.8 percentage points of the loss ratio, for the fourth quarter of 2023. The modest decrease primarily reflected lower average severity in homeowner fire losses.

Net development of reserves for losses incurred in prior accident years had virtually no impact to the loss ratio for the fourth quarter of 2024 or 2023. For the fourth quarter of 2024, our insurance subsidiaries experienced unfavorable development primarily in personal automobile and commercial automobile losses that was offset by favorable development in commercial multi-peril losses and other lines of business. For the fourth quarter of 2023, our insurance subsidiaries experienced favorable development in personal automobile, workers’ compensation, homeowners and commercial automobile losses, offset partially by unfavorable development in commercial multi-peril and other commercial losses.

Loss Ratio – Full Year

For the full year of 2024, the loss ratio decreased to 64.5%, compared to 69.1% for the full year of 2023. The 2024 core loss ratio decreased by 3.5 percentage points to 54.0% from 57.5% for 2023. For the commercial lines segment, the core loss ratio of 54.4% for 2024 improved from 56.5% for 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 53.5% for 2024 decreased from 59.1% in 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses for the full year of 2024 were $67.7 million, or 7.2 percentage points of the loss ratio, compared to $72.9 million, or 8.3 percentage points of the loss ratio, for the full year of 2023. The loss ratio impact of weather-related losses for the full year of 2024 was in line with the previous five-year average of 7.0 percentage points of the loss ratio.

Large fire losses were $45.8 million, or 4.9 percentage points of the loss ratio, for the full year of 2024, relatively in line with $45.4 million, or 5.2 percentage points of the loss ratio, for the full year of 2023.

Net favorable development of reserves for losses incurred in prior accident years of $15.0 million reduced the loss ratio for the full year of 2024 by 1.6 percentage points. For the full year of 2024, our insurance subsidiaries experienced favorable development in losses primarily in the commercial multi-peril, personal automobile and homeowners lines of business, offset partially by unfavorable development in the workers’ compensation and commercial automobile lines of business. Net favorable development of reserves for losses incurred in prior accident years of $16.7 million reduced the loss ratio for the full year of 2023 by 1.9 percentage points. For the full year of 2023, our insurance subsidiaries experienced favorable development in losses primarily in the commercial automobile, personal automobile, workers’ compensation and homeowners lines of business.

Expense Ratio

The expense ratio was 32.8% for the fourth quarter of 2024, compared to 34.1% for the fourth quarter of 2023. The expense ratio was 33.7% for the full year of 2024, compared to 34.7% for the full year of 2023. The decrease in the expense ratios for the fourth quarter and full year of 2024 primarily reflected the impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. These impacts were offset partially by an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project peaked at approximately 1.3 percentage points of the expense ratio for the full year of 2024 and will subside gradually in 2025 and subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95.6% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at December 31, 2024.

	December 31, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies	$	170,423		12.3	%	$	176,991		13.3	%
Obligations of states and political subdivisions	409,560			29.5		415,280			31.3
Corporate securities	440,552			31.8		399,640			30.1
Mortgage-backed securities	304,459			22.0		278,260			21.0
Allowance for expected credit losses	(1,388		)	-0.1		(1,326		)	-0.1
Total fixed maturities	1,323,606			95.5		1,268,845			95.6
Equity securities, at fair value	36,808			2.7		25,903			2.0
Short-term investments, at cost	24,558			1.8		32,306			2.4
Total investments	$	1,384,972		100.0	%	$	1,327,054		100.0	%

Average investment yield	3.3%					3.1%
Average tax-equivalent investment yield	3.4%					3.2%
Average fixed-maturity duration (years)	5.2					4.3

Net investment income of $12.1 million for the fourth quarter of 2024 increased 12.5% compared to $10.7 million in net investment income for the fourth quarter of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior-year fourth quarter. Net investment income of $44.9 million for the full year of 2024 increased 10.0% compared to the full year of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior year.

Net investment gains were minimal for the fourth quarter of 2024, compared to $2.2 million for the fourth quarter of 2023. We attribute the gains to the quarterly increases in the market value of the equity securities held at the end of the respective periods.

Net investment gains were $5.0 million for the full year of 2024, compared to $3.2 million for the full year of 2023. We attribute the gains to the change in the market value of the equity securities held at the end of the respective periods.

Our book value per share was $15.36 at December 31, 2024, compared to $14.39 at December 31, 2023, as increases from net income and unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 were partially offset by the dividends we declared during the year.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024		2023		% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	236,635		$	226,185		4.6	%	$	936,651	$	882,071	6.2	%
Change in net unearned premiums	(25,193		)	(13,492		)	86.7		5,630		13,626		-58.7
Net premiums written	$	211,442		$	212,693		-0.6	%	$	942,281	$	895,697	5.2	%

The following table provides a reconciliation of net income (loss) to operating income (loss) for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024			2023			% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss)	$	24,003		$	(1,970	)	NM		$	50,862		$	4,426		NM
Investment gains (after tax)		(202	)		(1,772	)	-88.6	%		(3,935	)		(2,507	)	57.0	%
Non-GAAP operating income (loss)	$	23,801		$	(3,742	)	NM		$	46,927		$	1,919		NM

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss) – Class A (diluted)	$	0.70		$	(0.06	)	NM		$	1.53		$	0.14		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.12	)		(0.08	)	50.0	%
Non-GAAP operating income (loss) – Class A	$	0.69		$	(0.11	)	NM		$	1.41		$	0.06		NM

Net income (loss) – Class B	$	0.64		$	(0.06	)	NM		$	1.38		$	0.11		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.11	)		(0.07	)	57.1	%
Non-GAAP operating income (loss) – Class B	$	0.63		$	(0.11	)	NM		$	1.27		$	0.04		NM

The statutory combined ratio is a standard non-GAAP measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On December 19, 2024, we declared regular quarterly cash dividends of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which we paid on February 18, 2025 to stockholders of record as of the close of business on February 4, 2025.

Pre-Recorded Webcast

At approximately 8:30 am EDT on Thursday, February 20, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly and annual results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.
Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

	Quarter Ended December 31,
	2024		2023

Net premiums earned	$	236,635	$	226,185
Investment income, net of expenses	12,050		10,710
Net investment gains	256		2,243
Lease income	77		85
Installment payment fees	936		245
Total revenues	249,954		239,468

Net losses and loss expenses	141,435		163,154
Amortization of deferred acquisition costs	39,853		39,149
Other underwriting expenses	37,649		38,032
Policyholder dividends	826		1,225
Interest	269		156
Other expenses, net	255		233
Total expenses	220,287		241,949

Income (loss) before income tax expense (benefit)	29,667		(2,481		)
Income tax expense (benefit)	5,664		(511		)

Net income (loss)	$	24,003	$	(1,970	)

Net income (loss) per common share:
Class A – basic	$	0.71	$	(0.06	)
Class A – diluted	$	0.70	$	(0.24	)
Class B – basic and diluted	$	0.64	$	(0.06	)

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,979,432		27,702,646
Class A – diluted	29,224,696		27,726,318
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	211,442	$	212,693

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

	Year Ended December 31,
	2024		2023

Net premiums earned	$	936,651	$	882,071
Investment income, net of expenses	44,918		40,853
Net investment gains	4,981		3,173
Lease income	314		347
Installment payment fees	2,741		894
Total revenues	989,605		927,338

Net losses and loss expenses	604,118		609,178
Amortization of deferred acquisition costs	160,311		154,214
Other underwriting expenses	155,254		151,748
Policyholder dividends	4,073		5,313
Interest	946		620
Other expenses, net	2,564		1,201
Total expenses	927,266		922,274

Income before income tax expense	62,339		5,064
Income tax expense	11,477		638

Net income	$	50,862	$	4,426

Net income per common share:
Class A – basic and diluted	$	1.53	$	0.14
Class B – basic and diluted	$	1.38	$	0.11

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,155,276		27,469,250
Class A – diluted	28,245,356		27,562,785
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	942,281	$	895,697

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			December 31,		December 31,
			2024		2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	705,714	$	679,497
		Available for sale, at fair value	617,892		589,348
	Equity securities, at fair value		36,808		25,903
	Short-term investments, at cost		24,558		32,306
		Total investments	1,384,972		1,327,054
Cash			52,926		23,792
Premiums receivable			181,107		179,592
Reinsurance receivable			420,742		441,431
Deferred policy acquisition costs			73,347		75,043
Prepaid reinsurance premiums			176,162		168,724
Other assets			46,776		50,658
		Total assets	$	2,336,032	$	2,266,294

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Losses and loss expenses		$	1,120,985	$	1,126,157
	Unearned premiums		612,476		599,411
	Accrued expenses		2,917		3,947
	Borrowings under lines of credit		35,000		35,000
	Other liabilities		18,878		22,034
		Total liabilities	1,790,256		1,786,549
Stockholders’ equity:
	Class A common stock		329		308
	Class B common stock		56		56
	Additional paid-in capital		369,680		335,694
	Accumulated other comprehensive loss		(28,200)		(32,882)
	Retained earnings		245,137		217,795
	Treasury stock		(41,226)		(41,226)
		Total stockholders’ equity	545,776		479,745
		Total liabilities and stockholders’ equity	$	2,336,032	$	2,266,294

The MIL Network –

February 21, 2025

MIL-OSI: Black Gold Announces Commencement of Drilling in the Illinois Basin

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, B.C., Feb. 20, 2025 (GLOBE NEWSWIRE) — BGX – Black Gold Exploration Corp. (the “Company” or “BGX) (CSE: BGX) (FRE: P30) is pleased to announce that drilling has commenced on the Fritz 2-30 oil and gas well (the “Well”) in Clay County, Indiana. Earlier this month, BGX acquired a 10% working interest in the Well and an option to participate in any offset developmental wells in a 210-acre area of mutual interest from the operator, Adler Energy, LLC (the “Operator”).

This prospect offsets the Fritz 1 well, which was drilled approximately 17 years ago and discovered both oil and gas pay horizons, but never produced due to a variety of factors, including a drop in oil prices at the time. The Well is in a known productive oil zone known as the Terra Haute Reef Bank, in Southwestern Indiana.

“We believe that the drilling in this region is the Company’s most significant short-term milestone to date and we are delighted to have the opportunity to participate in the Well, which not only gives us the potential for early cash flow but is also aligned with our longer-term plan to expand our footprint in the Illinois Basin,” commented Francisco Gulisano, Chief Executive Officer of BGX.

The Illinois Basin has a history of producing 10 to 12 million barrels of oil annually.¹ The Operator has completed an 8 square mile 3D seismic evaluation of the area, including the Fritz 2-30, showing both shallow and deeper stacked pay horizons. The Well plans to test a minimum of ten potential oil pay zones. Deep seated fractures clearly visible on 3D seismic are demonstrating migratory pathways for oil into multiple zones with high porosity, including the Devonian, Trenton, St. Peter Sand, Black River and the Knox. These zones all show over 100 feet of closure, giving room for large reservoirs of oil.

“Based on the 3D seismic and other data we have complied, our experienced technical team could not be more excited about the Fritz 2-30 well and we are very happy to be working with BGX in discovering what we believe is tremendous untapped value,” commented John Miller, President of Adler Energy.

“Given the history of the Fritz wells, we are looking to take advantage of overlooked opportunities to hopefully not only jump start our cash flows but also unlock value in one of the oldest and most productive oil basins in North American history,” concluded Mr. Gulisano.

On behalf of the Company,
Francisco Gulisano
236-266-5174
Chief Executive Officer

About BGX

BGX – Black Gold Exploration Corp. (CSE: BGX) (FRE: P30) is an oil and gas exploration company dedicated to creating shareholder value through the acquisition, exploration and development of oil and gas projects. BGX currently has assets in Argentina and the United States of America. For more information visit https://www.bgxcorp.com.

Forward-Looking Statements

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward- looking statements in this news release include, but are not limited to statements respecting: (i) drilling of the Well and the purpose thereof; (ii) the potential for early cash flow; (iii) the Company’s plan to expand its footprint in the Illinois Basin and (iv) the Company’s hope to unlock value in one of the oldest and most productive oil basins in North American history. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise. For a comprehensive overview of all risks that may impact the Company, please see the Company’s continuous disclosure documents filed on SEDAR+.

¹ https://www.usgs.gov/publications/new-albany-shale-illinois-emerging-play-or-prolific-source

Neither the CSE nor the CSE’s Regulation Services Provider (as that term is defined in the policies of the CSE) accept responsibility for the accuracy of this release.

The MIL Network –

February 21, 2025
MIL-OSI: Collateralized Reinsurance Firm, Specialty Risk RE, Completes $50 Million Institutional Funding Round

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Feb. 20, 2025 (GLOBE NEWSWIRE) — Specialty Risk Re (“SRR”), a collateral reinsurance company founded in 2024, today announced the successful closing of its $50 million institutional funding round, led by private equity firm, NMS Capital Group. This initial investment strengthens SRR’s ability to address the growing shortfall in reinsurance capacity, providing a select group of program carriers and MGAs with a reliable, well-capitalized partner at a time when market demand for stable risk transfer solutions is rising.

With reinsurance markets facing capacity constraints and increasing volatility, SRR was established to serve as a strategic capital partner for MGAs and carriers. The firm specializes in quota share and excess-of-loss (XOL) reinsurance programs, working closely with a select group of program administrators to provide long-term, sustainable solutions for structured risk-sharing.

SRR President and CEO, Jonathan Collura stated “This funding marks a significant milestone in our vision to establish SRR as a trusted and well-capitalized partner in the reinsurance market. Our strategy is built on disciplined risk selection, allowing us to construct a well-diversified book of business without overexposure to any single class or region. By leveraging our strong capitalization and domestic presence, SRR is positioned to be the go-to reinsurance partner in today’s risk environment.”

As part of its underwriting strategy, SRR focuses on mid- to long-tail risks, leveraging a steady and systematic growth model to enhance long-term insurance and investment returns.

Investor interest in SRR has been exceptionally strong, reflecting confidence in its disciplined risk selection and capital management approach.

“The market response to our model has been highly positive,” Collura further commented. “Our investors have already committed access to additional capital as early as the end of Q1 2025, allowing us to scale in response to demand. This strategic flexibility ensures that SRR remains well-positioned to support our partners with stable, long-term capital solutions.”

About Specialty Risk RE
Founded in 2024, Specialty Risk RE (“SRR”) is a collateralized reinsurance firm and a dedicated capital partner, specializing in non-CAT Property and Casualty programs with established loss histories. By leveraging deep industry connections and lasting capital commitments, SRR provides customized, sustainable reinsurance solutions tailored to the needs of MGAs and carriers. With a disciplined underwriting approach and a focus on strategic partnerships, SRR delivers structured financial solutions that support long-term growth, risk diversification, and capital efficiency. For more information, visit www.specialtyriskre.com.

Media Contact
Jessica Starman
media@elev8newmedia.com

The MIL Network –

February 21, 2025

MIL-OSI: Targa Resources Corp. Reports Record Fourth Quarter and Full Year 2024 Financial Results, Provides Growth Outlook for 2025 and Announces Refinancing of Badlands Preferred Equity

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported fourth quarter and full year 2024 results.

Fourth quarter 2024 net income attributable to Targa Resources Corp. was $351.0 million compared to $299.6 million for the fourth quarter of 2023. For the full year 2024, net income attributable to Targa Resources Corp. was $1,312.0 million compared to $1,345.9 million for 2023. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)⁽¹⁾ of $1,122.2 million for the fourth quarter of 2024 compared to $959.9 million for the fourth quarter of 2023. For the full year 2024, the Company reported adjusted EBITDA of $4,142.3 million compared to $3,530.0 million for 2023.

Highlights

Record full year 2024 adjusted EBITDA of $4.1 billion, a 17% increase over 2023
Record full year 2024 Permian, NGL transportation, fractionation, and LPG export volumes
Record full year 2024 common share repurchases of $755 million
Record fourth quarter 2024 adjusted EBITDA of $1.1 billion
Record fourth quarter 2024 Permian, NGL transportation, fractionation, and LPG export volumes
Completed its new 275 million cubic feet per day (“MMcf/d”) Greenwood II plant in Permian Midland and its new 120 thousand barrels per day (“MBbl/d”) Train 10 fractionator in Mont Belvieu
Recently commenced operations of its new 275 MMcf/d Bull Moose plant and 800 MMcf/d front-end treater in Permian Delaware
Announced a new intra-Delaware Basin expansion of Targa’s Grand Prix NGL Pipeline (“Delaware Express”)
Announced a new 150 MBbl/d fractionator in Mont Belvieu (“Train 12”)
Announced a new expansion of LPG export capabilities at Targa’s Galena Park Marine Terminal (“GPMT LPG Export Expansion”) which will increase capacity to approximately 19 million barrels per month (“MMBbl/month”)
Estimates 2025 net growth capital expenditures of $2.6 billion to $2.8 billion
Announced the refinancing of preferred equity in Targa Badlands LLC for $1.8 billion
Estimates record full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion, a 15% increase over 2024⁽²⁾

On January 16, 2025, the Company declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the fourth quarter of 2024. Total cash dividends of approximately $164 million were paid on February 14, 2025 on all outstanding shares of common stock to holders of record as of the close of business on January 31, 2025. Targa intends to recommend an annual common dividend of $4.00 per share for 2025 beginning with the first quarter payment in May of 2025.

Targa repurchased 610,683 shares of its common stock during the fourth quarter of 2024 at a weighted average per share price of $176.86 for a total net cost of $108.0 million. For the year ended December 31, 2024, Targa repurchased 5,933,050 shares of its common stock at a weighted average price of $127.20 for a total net cost of $754.7 million. As of December 31, 2024, there was $1,015.4 million remaining under the Company’s Share Repurchase Programs.

Fourth Quarter 2024 – Sequential Quarter over Quarter Commentary

Targa reported fourth quarter adjusted EBITDA of $1,122.2 million, representing a 5 percent increase compared to the third quarter of 2024. The sequential increase in adjusted EBITDA was attributable to higher volumes across Targa’s Gathering and Processing (“G&P”) and Logistics and Transportation (“L&T”) systems. In the G&P segment, higher sequential adjusted operating margin was attributable to record Permian natural gas inlet volumes and higher fees, partially offset by the expiration of a lower margin high pressure gathering and processing agreement in the Delaware Basin. In the L&T segment, record NGL pipeline transportation, fractionation, and LPG export volumes drove the sequential increase in segment adjusted operating margin, partially offset by lower sequential marketing margin. Targa’s completion of its Daytona NGL Pipeline late in the third quarter and its 120 MBbl/d Train 10 fractionator in the fourth quarter supported higher sequential NGL pipeline transportation and fractionation volumes from increasing supply volumes from Targa’s Permian G&P systems. LPG export volumes benefited from improved market conditions. Lower sequential marketing margin was attributable to decreased optimization opportunities.

Capitalization and Liquidity

The Company’s total consolidated debt as of December 31, 2024 was $14,174.6 million, net of $89.0 million of debt issuance costs and $29.4 million of unamortized discount, with $12,534.4 million of outstanding senior unsecured notes, $1,130.5 million outstanding under the Commercial Paper Program, $330.0 million outstanding under the Securitization Facility, and $298.1 million of finance lease liabilities.

Total consolidated liquidity as of December 31, 2024 was approximately $2.0 billion, including $1.6 billion available under the Existing TRGP Revolver (as defined below), $270.0 million under the Securitization Facility and $157.3 million of cash.

Financing Update

In February 2025, Targa entered into a new five-year revolving facility (the “New TRGP Revolver”) with aggregate capacity of $3.5 billion. The New TRGP Revolver replaces Targa’s $2.75 billion credit facility (“Existing TRGP Revolver”), scheduled to mature in February 2027. The additional capacity aligns with the Company’s increased scale and continued growth opportunities. Pro forma for the New TRGP Revolver, Targa’s liquidity as of December 31, 2024, was approximately $2.8 billion.

Refinancing of Badlands Preferred Equity

Targa announced today a definitive agreement to repurchase all of the outstanding preferred equity in Targa Badlands LLC (“Targa Badlands”) from funds managed by Blackstone for approximately $1.8 billion in cash (the “Repurchase”). The Repurchase represents a refinancing of higher cost preferred equity with Targa’s lower cost of debt capital, resulting in meaningful cash savings. Targa expects to close in the first quarter of 2025 with an effective date of January 1, 2025, and estimates its year-end 2025 debt to adjusted EBITDA leverage ratio will remain near the mid-point of the Company’s long-term target range.

Growth Projects Update

In Targa’s G&P segment, construction continues on its 275 MMcf/d Pembrook II, East Pembrook, and East Driver plants in Permian Midland and its 275 MMcf/d Bull Moose II and Falcon II plants in Permian Delaware. In Targa’s L&T segment, construction continues on its 150 MBbl/d Train 11 fractionator in Mont Belvieu. The Company remains on-track to complete these expansions as previously disclosed.

In February 2025, in response to increasing production and to meet the infrastructure needs of its customers, Targa announced:

Delaware Express, a 100-mile, 30-inch diameter pipeline expansion of its Grand Prix NGL Pipeline in the Permian Delaware;
Train 12, a new 150 MBbl/d fractionator in Mont Belvieu, TX; and
GPMT LPG Export Expansion, an expansion of Targa’s LPG export capabilities at its Galena Park Marine Terminal to approximately 19 MMBbl per month.

Delaware Express is expected to commence operations in the third quarter of 2026, Train 12 is expected to commence operations in the first quarter of 2027, and Targa’s GPMT LPG Export Expansion is expected to commence operations in the third quarter of 2027.

2025 Outlook and Capital Return Expectations

For 2025, Targa estimates full year adjusted EBITDA to be between $4.65 billion and $4.85 billion, with the midpoint of the range representing a 15 percent increase over full year 2024 adjusted EBITDA. Targa expects to continue to benefit from meaningful growth across its Permian G&P footprint, which is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to the records set in 2024.

Targa’s 2025 operational and financial expectations assume Waha natural gas prices average $1.55 per million British Thermal Units (“MMbtu”), natural gas liquids (“NGL”) composite barrel prices average $0.65 per gallon, and crude oil prices average $70 per barrel.

Targa’s estimate for 2025 net growth capital expenditures is between $2.6 billion to $2.8 billion and includes capital spending for the recently announced Delaware Express, Train 12, and GPMT LPG Export Expansion. Net maintenance capital expenditures for 2025 are estimated to be approximately $250 million.

For the first quarter of 2025, Targa intends to recommend to its Board of Directors an increase to its quarterly common dividend to $1.00 per common share or $4.00 per common share annualized. The recommended 33 percent common dividend per share increase, if approved, would be effective for the first quarter of 2025 and payable in May 2025. Going forward, Targa expects to be in position to continue to meaningfully increase the capital returned to shareholders through increasing common dividends per share and opportunistic repurchases of its common stock.

An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events.

Conference Call

The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on February 20, 2025 to discuss its fourth quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/qgzvcwi7. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.

^{(1) Adjusted EBITDA is a non-GAAP financial measure and is discussed under “Non-GAAP Financial Measures.”
(2) Year over year increase based on midpoint of estimated 2025 adjusted EBITDA range of $4.65 billion to $4.85 billion.}

Targa Resources Corp. – Consolidated Financial Results of Operations

	Three Months Ended December 31,												Year Ended December 31,
	2024			2023			2024 vs. 2023						2024			2023			2024 vs. 2023
	(In millions)
Revenues:
Sales of commodities	$	3,765.5		$	3,647.9		$	117.6			3	%	$	13,891.8		$	13,962.1		$	(70.3	)		(1	%)
Fees from midstream services		639.7			591.6			48.1			8	%		2,489.7			2,098.2			391.5			19	%
Total revenues		4,405.2			4,239.5			165.7			4	%		16,381.5			16,060.3			321.2			2	%
Product purchases and fuel		2,922.6			2,898.5			24.1			1	%		10,703.0			10,676.4			26.6			—
Operating expenses		305.8			269.5			36.3			13	%		1,175.6			1,077.9			97.7			9	%
Depreciation and amortization expense		378.5			341.4			37.1			11	%		1,423.0			1,329.6			93.4			7	%
General and administrative expense		97.5			95.3			2.2			2	%		384.9			348.7			36.2			10	%
Other operating (income) expense		0.2			(0.5	)		0.7		NM				(0.4	)		1.5			(1.9	)	NM
Income (loss) from operations		700.6			635.3			65.3			10	%		2,695.4			2,626.2			69.2			3	%
Interest expense, net		(177.7	)		(178.0	)		0.3			—			(767.2	)		(687.8	)		(79.4	)		12	%
Equity earnings (loss)		1.5			2.8			(1.3	)		(46	%)		9.4			9.0			0.4			4	%
Gain (loss) from financing activities		—			(2.1	)		2.1			100	%		(0.8	)		(2.1	)		1.3			62	%
Other, net		0.1			2.1			(2.0	)	NM				1.2			(2.8	)		4.0		NM
Income tax (expense) benefit		(110.5	)		(102.5	)		(8.0	)		8	%		(384.5	)		(363.2	)		(21.3	)		6	%
Net income (loss)		414.0			357.6			56.4			16	%		1,553.5			1,579.3			(25.8	)		(2	%)
Less: Net income (loss) attributable to noncontrolling interests		63.0			58.0			5.0			9	%		241.5			233.4			8.1			3	%
Net income (loss) attributable to Targa Resources Corp.		351.0			299.6			51.4			17	%		1,312.0			1,345.9			(33.9	)		(3	%)
Premium on repurchase of noncontrolling interests, net of tax		32.9			19.4			13.5			70	%		32.9			510.1			(477.2	)		(94	%)
Net income (loss) attributable to common shareholders	$	318.1		$	280.2		$	37.9			14	%	$	1,279.1		$	835.8		$	443.3			53	%
Financial data:
Adjusted EBITDA (1)	$	1,122.2		$	959.9		$	162.3			17	%	$	4,142.3		$	3,530.0		$	612.3			17	%
Adjusted cash flow from operations (1)		940.9			780.1			160.8			21	%		3,372.4			2,840.6			531.8			19	%
Adjusted free cash flow (1)		56.2			73.7			(17.5	)		(24	%)		140.1			392.7			(252.6	)		(64	%)

⁽¹⁾	^{Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}
^NM	^{Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in commodity sales reflects higher NGL, natural gas and condensate volumes ($242.4) and higher NGL prices ($199.5 million), partially offset by lower natural gas and condensate prices ($197.0 million) and the unfavorable impact of hedges ($127.3 million).

The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

The increase in operating expenses is primarily due to higher maintenance and labor costs as a result of increased activity and system expansions, partially offset by lower taxes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base that have been placed in service during 2024.

The increase in income tax expense is primarily due to an increase in pre-tax book income and the release of state valuation allowance in 2023 partially offset by the impact of statutory rate changes.

The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Commodity sales are relatively flat reflecting lower natural gas and condensate prices ($1,242.8 million) and the unfavorable impact of hedges ($686.5 million), offset by higher NGL, natural gas and condensate volumes ($1,607.2 million), and higher NGL prices ($251.6 million).

The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

The increase in operating expenses is primarily due to higher labor, maintenance, rental and chemical costs as a result of increased activity and system expansions, partially offset by lower taxes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base, partially offset by the shortening of depreciable lives of certain assets that were idled in 2023.

The increase in general and administrative expense is primarily due to higher compensation and benefits and professional fees.

The increase in interest expense, net, is due to recognition of cumulative interest on a 2024 legal ruling associated with the Splitter Agreement and higher borrowings, partially offset by higher capitalized interest. Higher capitalized interest is due to system expansions and higher interest rates.

The increase in income tax expense is primarily due to the release of state valuation allowance in 2023.

The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024 and the Grand Prix Transaction in 2023.

Review of Segment Performance

The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation.

Gathering and Processing Segment

The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended December 31,									Year Ended December 31,
	2024		2023		2024 vs. 2023					2024		2023		2024 vs. 2023
		(In millions, except operating statistics and price amounts)
Operating margin	$	598.9	$	536.3	$	62.6		12	%	$	2,312.4	$	2,082.2	$	230.2		11	%
Operating expenses		217.5		185.7		31.8		17	%		814.6		746.6		68.0		9	%
Adjusted operating margin	$	816.4	$	722.0	$	94.4		13	%	$	3,127.0	$	2,828.8	$	298.2		11	%
Operating statistics (1):
Plant natural gas inlet, MMcf/d (2) (3)
Permian Midland (4)		3,072.8		2,716.5		356.3		13	%		2,933.1		2,535.2		397.9		16	%
Permian Delaware		2,992.4		2,564.3		428.1		17	%		2,837.3		2,526.5		310.8		12	%
Total Permian		6,065.2		5,280.8		784.4		15	%		5,770.4		5,061.7		708.7		14	%

SouthTX		329.4		347.9		(18.5	)	(5	%)		325.9		367.4		(41.5	)	(11	%)
North Texas		187.4		207.7		(20.3	)	(10	%)		186.9		205.9		(19.0	)	(9	%)
SouthOK (5)		339.7		366.5		(26.8	)	(7	%)		351.7		385.0		(33.3	)	(9	%)
WestOK		210.5		207.1		3.4		2	%		212.8		207.1		5.7		3	%
Total Central		1,067.0		1,129.2		(62.2	)	(6	%)		1,077.3		1,165.4		(88.1	)	(8	%)

Badlands (5) (6)		128.8		131.2		(2.4	)	(2	%)		136.3		130.0		6.3		5	%
Total Field		7,261.0		6,541.2		719.8		11	%		6,984.0		6,357.1		626.9		10	%

Coastal		405.7		567.0		(161.3	)	(28	%)		449.6		541.1		(91.5	)	(17	%)

Total		7,666.7		7,108.2		558.5		8	%		7,433.6		6,898.2		535.4		8	%
NGL production, MBbl/d (3)
Permian Midland (4)		445.7		398.3		47.4		12	%		428.4		367.7		60.7		17	%
Permian Delaware		390.2		310.6		79.6		26	%		359.9		321.6		38.3		12	%
Total Permian		835.9		708.9		127.0		18	%		788.3		689.3		99.0		14	%

SouthTX (5)		29.3		37.3		(8.0	)	(21	%)		32.8		40.9		(8.1	)	(20	%)
North Texas		22.9		24.5		(1.6	)	(7	%)		22.6		24.0		(1.4	)	(6	%)
SouthOK (5)		40.1		40.0		0.1		—			35.0		43.1		(8.1	)	(19	%)
WestOK		16.3		12.1		4.2		35	%		15.1		12.5		2.6		21	%
Total Central		108.6		113.9		(5.3	)	(5	%)		105.5		120.5		(15.0	)	(12	%)

Badlands (5)		15.3		15.7		(0.4	)	(3	%)		16.6		15.5		1.1		7	%
Total Field		959.8		838.5		121.3		14	%		910.4		825.3		85.1		10	%

Coastal		36.0		43.2		(7.2	)	(17	%)		35.8		39.2		(3.4	)	(9	%)

Total		995.8		881.7		114.1		13	%		946.2		864.5		81.7		9	%
Crude oil, Badlands, MBbl/d		110.1		105.2		4.9		5	%		106.6		105.5		1.1		1	%
Crude oil, Permian, MBbl/d		29.5		27.5		2.0		7	%		27.9		27.4		0.5		2	%
Natural gas sales, BBtu/d (3)		2,784.3		2,737.3		47.0		2	%		2,780.5		2,685.8		94.7		4	%
NGL sales, MBbl/d (3)		582.0		520.6		61.4		12	%		558.2		495.8		62.4		13	%
Condensate sales, MBbl/d		19.8		17.8		2.0		11	%		19.3		18.5		0.8		4	%
Average realized prices (7):
Natural gas, $/MMBtu		1.04		1.83		(0.79	)	(43	%)		0.67		1.94		(1.27	)	(65	%)
NGL, $/gal		0.49		0.43		0.06		14	%		0.46		0.46		—		—
Condensate, $/Bbl		66.83		74.79		(7.96	)	(11	%)		73.35		74.35		(1.00	)	(1	%)

⁽¹⁾	^{Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
⁽²⁾	^{Plant natural gas inlet represents the Company’s undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands.}
⁽³⁾	^{Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.}
⁽⁴⁾	^{Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company’s reported financials.}
⁽⁵⁾	^{Operations include facilities that are not wholly owned by the Company.}
⁽⁶⁾	^{Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.}
⁽⁷⁾	^{Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company’s equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.}

The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment:

	Three Months Ended December 31, 2024						Three Months Ended December 31, 2023
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)		Gain (Loss)		Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		8.1	$	1.84	$	14.9		13.2	$	1.15		$	15.2
NGL (MMgal)		101.0		0.01		0.9		165.3		0.09			15.5
Crude oil (MBbl)		0.7		5.00		3.5		0.6		(6.17	)		(3.7	)
					$	19.3						$	27.0

	Year Ended December 31, 2024								Year Ended December 31, 2023
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)			Gain (Loss)			Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		43.7	$	1.92		$	84.1			63.2	$	1.22		$	77.4
NGL (MMgal)		449.8		0.04			15.8			680.3		0.07			49.9
Crude oil (MBbl)		2.1		(2.05	)		(4.3	)		2.4		(6.92	)		(16.6	)
						$	95.6							$	110.7

⁽¹⁾	^{The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, and higher NGL Prices, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Wildcat II plant during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes in the Permian and multiple plant additions in the Permian, partially offset by lower taxes in the Central region.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes was attributable to the addition of the Legacy II plant during the first quarter of 2023, the Midway plant during the second quarter of 2023, the Greenwood I and Wildcat II plants during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.

Logistics and Transportation Segment

The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Grand Prix NGL Pipeline, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024		2023		2024 vs. 2023				2024		2023		2024 vs. 2023
	(In millions, except operating statistics)
Operating margin	$	656.2	$	554.2	$	102.0	18	%	$	2,355.1	$	1,948.7	$	406.4	21	%
Operating expenses		88.7		84.4		4.3	5	%		362.3		332.0		30.3	9	%
Adjusted operating margin	$	744.9	$	638.6	$	106.3	17	%	$	2,717.4	$	2,280.7	$	436.7	19	%
Operating statistics MBbl/d (1):
NGL pipeline transportation volumes (2)		871.5		722.0		149.5	21	%		800.8		635.5		165.3	26	%
Fractionation volumes		1,089.5		844.8		244.7	29	%		936.1		798.1		138.0	17	%
Export volumes (3)		457.1		434.5		22.6	5	%		423.6		365.2		58.4	16	%
NGL sales		1,227.5		1,125.8		101.7	9	%		1,159.1		1,019.8		139.3	14	%

⁽¹⁾	^{Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
⁽²⁾	^{Represents the total quantity of mixed NGLs that earn a transportation margin.}
⁽³⁾	^{Export volumes represent the quantity of NGL products delivered to third-party customers at the Company’s Galena Park Marine Terminal that are destined for international markets.}

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin and higher marketing margin. LPG export margin was relatively flat. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities.

The increase in operating expenses was due to higher system volumes, higher taxes, higher compensation and benefits the in-service of the Daytona NGL Pipeline expansion during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024, partially offset by lower repairs and maintenance.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin, higher marketing margin, and higher LPG export margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the addition of Train 9 during the second quarter of 2024, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities. LPG export margin increased due to higher volumes as Targa benefited from the completion of the export expansion project during the third quarter of 2023 and the Houston Ship Channel allowing night-time vessel transits, partially offset by maintenance and required inspections.

The increase in operating expenses was due to higher system volumes, higher compensation and benefits, higher taxes, higher repairs and maintenance and the addition of two trains during 2024.

Other

	Three Months Ended December 31,									Year Ended December 31,
	2024			2023			2024 vs. 2023			2024			2023		2024 vs. 2023
	(In millions)
Operating margin	$	(78.3	)	$	(18.8	)	$	(59.5	)	$	(164.6	)	$	275.5	$	(440.1	)
Adjusted operating margin	$	(78.3	)	$	(18.8	)	$	(59.5	)	$	(164.6	)	$	275.5	$	(440.1	)

Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment.

About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

Targa is a FORTUNE 500 company and is included in the S&P 500.

For more information, please visit the Company’s website at www.targaresources.com.

Non-GAAP Financial Measures

This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.

Adjusted Operating Margin

The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program.

Gathering and Processing adjusted operating margin consists primarily of:

service fees related to natural gas and crude oil gathering, treating and processing; and
revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements.

Logistics and Transportation adjusted operating margin consists primarily of:

service fees (including the pass-through of energy costs included in certain fee rates);
system product gains and losses; and
NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change.

The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other.

Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess:

the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;
the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and
the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities.

Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.”

Adjusted EBITDA

The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.

Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash taxes. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures (net of any reimbursements of project costs) and growth capital expenditures, net of contributions from noncontrolling interest and contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements.

The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated:

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
	(In millions)
Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow
Net income (loss) attributable to Targa Resources Corp.	$	351.0		$	299.6		$	1,312.0		$	1,345.9
Interest (income) expense, net		177.7			178.0			767.2			687.8
Income tax expense (benefit)		110.5			102.5			384.5			363.2
Depreciation and amortization expense		378.5			341.4			1,423.0			1,329.6
(Gain) loss on sale or disposition of assets		(0.4	)		(1.3	)		(3.1	)		(5.3	)
Write-down of assets		2.2			0.8			6.2			6.9
(Gain) loss from financing activities		—			2.1			0.8			2.1
Equity (earnings) loss		(1.5	)		(2.8	)		(9.4	)		(9.0	)
Distributions from unconsolidated affiliates		8.7			4.5			25.3			18.6
Compensation on equity grants		15.8			16.7			63.2			62.4
Risk management activities		78.2			18.8			164.6			(275.4	)
Noncontrolling interests adjustments (1)		1.5			(0.4	)		3.9			(3.7	)
Litigation expense (2)		—			—			4.1			6.9
Adjusted EBITDA	$	1,122.2		$	959.9		$	4,142.3		$	3,530.0
Interest expense on debt obligations (3)		(173.8	)		(174.9	)		(752.4	)		(675.8	)
Cash taxes		(7.5	)		(4.9	)		(17.5	)		(13.6	)
Adjusted Cash Flow from Operations	$	940.9		$	780.1		$	3,372.4		$	2,840.6
Maintenance capital expenditures, net (4)		(65.0	)		(70.4	)		(231.9	)		(223.4	)
Growth capital expenditures, net (4)		(819.7	)		(636.0	)		(3,000.4	)		(2,224.5	)
Adjusted Free Cash Flow	$	56.2		$	73.7		$	140.1		$	392.7

⁽¹⁾	^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.}
⁽²⁾	^{Litigation expense includes charges related to litigation resulting from the major winter storm in February 2021 that the Company considers outside the ordinary course of its business and/or not reflective of its ongoing core operations. The Company may incur such charges from time to time, and the Company believes it is useful to exclude such charges because it does not consider them reflective of its ongoing core operations and because of the generally singular nature of the claims underlying such litigation.}
⁽³⁾	^{Excludes amortization of interest expense. The year ended December 31, 2024 includes $55.8 million of interest expense associated with the Splitter Agreement ruling.}
⁽⁴⁾	^{Represents capital expenditures, net of contributions from noncontrolling interests and includes contributions to investments in unconsolidated affiliates.}

The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2025:

	2025E
	(In millions)
Reconciliation of Estimated Net Income Attributable to Targa Resources Corp. to
Estimated Adjusted EBITDA
Net income attributable to Targa Resources Corp.	$	1,765.0
Interest expense, net		875.0
Income tax expense		510.0
Depreciation and amortization expense		1,535.0
Equity earnings		(20.0	)
Distributions from unconsolidated affiliates		25.0
Compensation on equity grants		65.0
Noncontrolling interests adjustments (1)		(5.0	)
Estimated Adjusted EBITDA	$	4,750.0

⁽¹⁾	^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.}

Regulation FD Disclosures

The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Targa Investor Relations
InvestorRelations@targaresources.com
(713) 584-1133

The MIL Network –

February 21, 2025

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

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its fourth-quarter and full-year 2024 financial and operating results. In the quarter, the company generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow and $123 million of free funds flow. The Upstream business continued to deliver strong performance, with production of 816,000 barrels of oil equivalent per day (BOE/d)¹ in the quarter, including a new quarterly Oil Sands production record of 628,500 BOE/d. In the Downstream, total crude throughput increased by almost 24,000 barrels per day (bbls/d) from the previous quarter to 666,700 bbls/d, representing an aggregate utilization rate of 93%.

Highlights

Delivered quarterly Upstream production of 816,000 BOE/d, an increase of 6% relative to the previous quarter and 1% relative to the fourth quarter of 2023.
Highest-ever quarterly and annual Oil Sands production rates at 628,500 BOE/d and 610,700 BOE/d respectively, including record annual rates at both Foster Creek and the Lloydminster thermal assets.
Improving quarterly Downstream operating performance, with utilization of 97% in Canadian Refining and 92% in U.S. Refining. U.S. Refining operating expenses, excluding turnaround costs, of $10.89 per barrel were down 18% relative to the fourth quarter of 2023.
Achieved significant milestones on Cenovus’s major Upstream growth projects, including mechanical completion of the Narrows Lake pipeline, executing the SeaRose floating production, storage and offloading (FPSO) vessel life extension dry dock and reaching mechanical completion of both the concrete gravity structure (CGS) and topsides for the West White Rose project.
Returned $706 million to shareholders in the fourth quarter, including $108 million through share purchases, $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares on December 31, 2024.

“We delivered strong operating performance this quarter. Our industry leading Oil Sands assets set production records and our Downstream business continued to demonstrate improvements in reliability and unit costs,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “In 2025, we will build on this momentum, focusing on operational execution while advancing our key growth projects to deliver long-term value for shareholders.”

Financial summary

($ millions, except per share amounts)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Cash from (used in) operating activities	2,029	2,474	2,946	9,235	7,388
Adjusted funds flow²	1,601	1,960	2,062	8,164	8,803
Per share (diluted)²	0.87	1.05	1.08	4.38	4.54
Capital investment	1,478	1,346	1,170	5,015	4,298
Free funds flow²	123	614	892	3,149	4,505
Excess free funds flow²	(416)	146	471	1,297	2,466
Net earnings (loss)	146	820	743	3,142	4,109
Per share (diluted)	0.07	0.42	0.32	1.67	2.09
Long-term debt, including current portion	7,534	7,199	7,108	7,534	7,108
Net debt	4,614	4,196	5,060	4,614	5,060

Production and throughput

(before royalties, net to Cenovus)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Oil and NGLs (bbls/d)¹	670,600	630,500	662,600	653,800	640,000
Conventional natural gas (MMcf/d)	873.3	844.6	876.3	860.2	832.6
Total upstream production (BOE/d)¹	816,000	771,300	808,600	797,200	778,700
Total downstream throughput (bbls/d)	666,700	642,900	579,100	646,900	560,400

¹ See Advisory for production by product type.
² Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

Fourth-quarter results

Operating¹

Cenovus’s total revenues were $12.8 billion in the fourth quarter, down from $13.8 billion in the previous quarter, primarily due to lower commodity prices. Upstream revenues were $7.3 billion, flat from the third quarter, while Downstream revenues were $7.8 billion, down from $8.8 billion in the prior quarter.

Total operating margin³ was $2.3 billion, compared with $2.4 billion in the previous quarter. Upstream operating margin⁴ was $2.7 billion, consistent with the third quarter and benefiting from higher production volumes relative to the prior quarter, offset by lower benchmark oil prices and timing differences between production and sales. The company had a Downstream operating margin⁴ shortfall of $396 million in the fourth quarter due to weak refining crack spreads and a narrow heavy oil price differential, compared with a shortfall of $323 million in the previous quarter. Operating margin in the U.S. Refining segment included $45 million of first in, first out (FIFO) losses and $128 million of turnaround expenses incurred during the Lima Refinery turnaround.

Total Upstream production was 816,000 BOE/d in the fourth quarter, an increase of 44,700 BOE/d from the prior quarter, reflecting record quarterly production from the company’s Oil Sands segment of 628,500 BOE/d. Christina Lake production was 251,400 bbls/d, compared with 211,800 bbls/d in the third quarter, as a result of completing planned turnaround activity in September. Foster Creek production was 195,200 bbls/d compared with 198,000 bbls/d in the third quarter, while Sunrise production increased to 53,100 bbls/d from 50,400 bbls/d in the third quarter as production from new well pads continued to ramp up. Production from the Lloydminster thermal assets declined slightly to 108,900 bbls/d, while Lloydminster conventional heavy oil output increased to 18,000 bbls/d from 16,300 bbls/d in the prior quarter. Production in the Conventional segment was 117,800 BOE/d, a slight decrease from 118,100 BOE/d in the third quarter.

In the Offshore segment, production was 69,700 BOE/d compared with 65,500 BOE/d in the third quarter. In Asia Pacific, production volumes were 62,200 BOE/d, higher than the previous quarter partially due to increased production at the MAC field in Indonesia and planned maintenance at Liwan in the third quarter. In the Atlantic, production was 7,500 bbls/d, a decrease from 9,000 bbls/d in the prior quarter due to unplanned downtime at the non-operated Terra Nova field. The SeaRose FPSO is on station and reconnected to the White Rose field, with production expected to resume by the end of February.

Total refining throughput in the fourth quarter was 666,700 bbls/d, up from 642,900 bbls/d in the third quarter. Throughput in Canadian Refining was 104,400 bbls/d, representing a utilization rate of 97%, compared with 99,400 bbls/d in the previous quarter. The increase was primarily due to returning to full rates following completion of turnaround activity at the Lloydminster Upgrader early in the third quarter.

In U.S. Refining, crude throughput was 562,300 bbls/d, representing a utilization rate of 92%, compared with 543,500 bbls/d in the third quarter. Throughput increased primarily due to improved reliability, partially offset by economic run cuts as market crack spreads weakened through the quarter. U.S. Refining revenues were $6.6 billion relative to $7.2 billion in the prior quarter due to lower refined product pricing. Market capture⁵ in the U.S. improved to 45% relative to 35% in the previous quarter primarily due to reduced inventory timing impacts (FIFO). Market capture in the fourth quarter was negatively impacted by the Lima Refinery turnaround, narrower heavy crude oil differentials, and a quarterly FIFO loss of $45 million.

³ Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
⁴ Specified financial measure. See Advisory.
⁵ Contains a non-GAAP financial measure. See Advisory.

Financial

Cash from operating activities in the fourth quarter, which includes changes in non-cash working capital, was $2.0 billion, compared with $2.5 billion in the third quarter. Adjusted funds flow was $1.6 billion, compared with $2.0 billion in the prior quarter and there was a shortfall of excess free funds flow (EFFF) of $416 million, compared with $146 million in the prior quarter. Net earnings in the fourth quarter were $146 million, compared with $820 million in the previous quarter. Fourth-quarter financial results were impacted by lower benchmark prices relative to the third quarter including seasonally weak refining market crack spreads in the Chicago market.

Long-term debt, including the current portion, was $7.5 billion at December 31, 2024. Net debt increased from the prior quarter to $4.6 billion at December 31, 2024, primarily due to the shortfall in EFFF of $416 million and the redemption of $250 million of Cenovus Series 3 preferred shares on December 31, 2024, partially offset by a release of non-cash working capital. The company continues to steward toward net debt of $4.0 billion and returning 100% of EFFF to shareholders over time in accordance with its financial framework.

Growth projects and capital investments

In the Oil Sands segment, the Narrows Lake pipeline, which will connect the field to the Christina Lake processing facility, was mechanically completed in the fourth quarter. We plan to commence steam injection in the spring and the project remains on track for first oil mid-2025. At Sunrise, production continued to ramp up in the fourth quarter after the company brought two new well pads online in the third quarter. One additional well pad will be added in early 2025. The optimization project at Foster Creek is now 64% complete and remains on schedule for startup in 2026, with most modules and major pieces of equipment in place and pipe installation underway.

In the fourth quarter, the West White Rose project achieved mechanical completion of both the CGS and topsides, and work to prepare the seabed for installation of the CGS at the field location was also completed. The focus of the project in 2025 will be on the installation and commissioning of the platform. The West White Rose project is now approximately 88% complete and progressing on-schedule towards first oil in 2026.

Full-year results

In 2024, Cenovus’s total Upstream production averaged 797,200 BOE/d, compared with 778,700 BOE/d in 2023, including record annual volumes from the Oil Sands assets and a 5% increase in Offshore volumes. Oil Sands production was 610,700 BOE/d, including approximately 196,000 bbls/d at Foster Creek, a new annual high for the asset, and 234,200 bbls/d at Christina Lake, which successfully completed a turnaround in the third quarter. Full-year production from the Lloydminster thermal assets was also an annual record at 111,500 bbls/d, compared with 104,100 bbls/d in 2023, reflecting a successful redevelopment program and well optimization. Sunrise production was 49,600 bbls/d compared with 48,900 bbls/d in 2023 and Lloydminster conventional heavy oil production increased to 17,600 bbls/d from 16,700 bbls/d in the previous year. Conventional production was 119,900 BOE/d, in line with 2023. Offshore total production was approximately 66,600 BOE/d, compared with 63,400 BOE/d in the prior year, with 2023 impacted by a temporary disconnection of a subsea umbilical in Liwan by a third-party vessel.

Total Downstream throughput averaged 646,900 bbls/d in 2024, a 15% increase from 560,400 bbls/d in 2023. Canadian Refining crude oil throughput was 90,500 bbls/d, compared to 100,700 bbls/d in 2023, as the Lloydminster Upgrader completed the largest turnaround in the asset’s history early in the third quarter of 2024. U.S. Refining crude oil throughput increased to 556,400 bbls/d in 2024 compared with 459,700 bbls/d in 2023, reflecting the first full year of production from Superior and Toledo within the Cenovus portfolio.

Total revenues were $54.3 billion in 2024 and total operating margin was $10.8 billion compared with revenues of $52.2 billion and total operating margin of $11.0 billion in 2023. The year-over-year increase in total revenues was largely due to higher production and narrowing heavy Canadian crude differentials following the startup of the Trans Mountain pipeline expansion project. Operating margin was slightly reduced due to narrower downstream crack spreads, higher turnaround costs and increased transportation and blending costs.

Cash from operating activities was $9.2 billion for 2024 compared with $7.4 billion in 2023. Adjusted funds flow was $8.2 billion and free funds flow was $3.1 billion. Total capital investment for 2024 was $5.0 billion, primarily directed to sustaining production at the company’s Upstream assets, the construction of the major Upstream growth projects including West White Rose and refining reliability initiatives. Full-year net earnings for 2024 were $3.1 billion compared with $4.1 billion in 2023, primarily due to lower commodity prices, foreign exchange losses and higher depreciation, depletion, amortization and exploration expense.

Organizational updates

As part of Cenovus’s ongoing management succession plans, the company is announcing the following leadership changes effective March 1.

Andrew Dahlin, currently Executive Vice-President (EVP), Natural Gas & Technical Services, will assume the role of EVP & Chief Operating Officer. Andrew has more than 30 years of industry experience, including 13 years with Cenovus and its predecessor companies.

Eric Zimpfer, currently Senior Vice-President (SVP), U.S. Refining, will become Cenovus’s Head of Downstream, based in Dublin, Ohio and reporting directly to Jon McKenzie. Eric has more than 20 years of U.S. refining experience. He will play an integral role in continuing to improve the reliability and competitiveness of the Downstream business.

John Soini, currently SVP, Major & Capital Projects, will become EVP, Upstream – Thermal & Atlantic Offshore. John has more than 25 years of experience in the energy and power industries.

Susan Anderson, currently SVP, People Services, will become SVP, Legal, General Counsel & Corporate Secretary. Susan has more than 30 years of oil and gas industry experience, with 20 years at Husky Energy in various roles that included Vice-President, Legal.

Reserves

Cenovus’s proved and probable reserves are evaluated each year by independent qualified reserves evaluators. At the end of 2024, Cenovus’s total proved and total proved plus probable reserves were approximately 5.7 billion BOE and 8.5 billion BOE respectively, and total proved and total proved plus probable bitumen reserves were approximately 5.2 billion barrels and 7.7 billion barrels respectively. At year-end 2024, Cenovus had a proved reserves life index of approximately 19 years and a proved plus probable reserves life index of approximately 29 years.

More details about Cenovus’s reserves and other oil and gas information are available in the Advisory and the Management’s Discussion and Analysis (MD&A), Annual Information Form (AIF) and Annual Report on Form 40-F for the year ended December 31, 2024, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and Cenovus’s website at cenovus.com under Investors.

Cenovus year-end disclosure documents

Today, Cenovus is filing its interim and audited Consolidated Financial Statements, MD&A and AIF with Canadian securities regulatory authorities. The company is also filing its Annual Report on Form 40-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission. Copies of these documents will be available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and the company’s website at cenovus.com under Investors. They can also be requested free of charge by emailing investor.relations@cenovus.com.

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.180 per common share, payable on March 31, 2025 to shareholders of record as of March 14, 2025.

In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1, Series 2, Series 5 and Series 7 – payable on March 31, 2025 to shareholders of record as of March 14, 2025 as follows:

Preferred shares dividend summary

Share series	Rate (%)	Amount ($/share)
Series 1	2.577	0.16106
Series 2	5.211	0.32123
Series 5	4.591	0.28694
Series 7	3.935	0.24594

All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.

In the fourth quarter, the company returned $706 million to shareholders, composed of $108 million from its purchase of 4.6 million shares through its normal course issuer bid (NCIB), $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares. In 2024, Cenovus returned $3.2 billion to shareholders, including $1.4 billion of share purchases through its NCIB, $1.6 billion in common and preferred share dividends, and $250 million through the redemption of the Series 3 preferred shares.

2025 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets in 2025 and anticipated production or throughput impacts.

Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)

(MBOE/d or Mbbls/d)	Q1	Q2	Q3	Q4	Annualized impact
Upstream
Oil Sands	–	30 – 40	5 – 7	–	10 – 12
Offshore	–	–	4 – 6	–	1 – 2
Conventional	–	–	–	–	–
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	7 – 10	35 – 45	2 – 4	6 – 10	13 – 17

Potential turnaround expenses

($ millions)	Q1	Q2	Q3	Q4	Annualized impact
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	110 – 135	210 – 240	80 – 95	40 – 50	440 – 520

Conference call today

9 a.m. Mountain Time (11 a.m. Eastern Time)

Cenovus will host a conference call today, February 20, 2025, starting at 9 a.m. MT (11 a.m. ET).

To join the conference call, please dial 1-800-206-4400 (toll-free in North America) or 1-289-514-5005 to reach a live operator who will join you into the call. A live audio webcast will also be available and archived for approximately 30 days.

Advisory

Basis of Presentation

Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.

Barrels of Oil Equivalent

Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value.

Reserves Life Index

Reserves life index is calculated based on reserves for the applicable reserves category divided by annual production.

Product types

Product type by operating segment	Three months ended December 31, 2024	Full year ended December 31, 2024
Oil Sands
Bitumen (Mbbls/d)	608.6	591.3
Heavy crude oil (Mbbls/d)	18.0	17.6
Conventional natural gas (MMcf/d)	11.8	11.1
Total Oil Sands segment production (MBOE/d)	628.5	610.7
Conventional
Light crude oil (Mbbls/d)	4.8	4.9
Natural gas liquids (Mbbls/d)	19.7	21.0
Conventional natural gas (MMcf/d)	560.5	563.8
Total Conventional segment production (MBOE/d)	117.8	119.9
Offshore
Light crude oil (Mbbls/d)	7.5	8.0
Natural gas liquids (Mbbls/d)	12.0	11.0
Conventional natural gas (MMcf/d)	301.0	285.3
Total Offshore segment production (MBOE/d)	69.7	66.6
Total Upstream production (MBOE/d)	816.0	797.2

Forward‐looking Information

This news release contains certain forward‐looking statements and forward‐looking information (collectively referred to as “forward‐looking information”) within the meaning of applicable securities legislation about Cenovus’s current expectations, estimates and projections about the future of the company, based on certain assumptions made in light of the company’s experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward‐looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward‐looking information in this document is identified by words such as “anticipate”, “continue”, “deliver”, “focus”, “plan”, “progress”, “steward”, “target” and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: Net Debt; returning Excess Free Funds Flow to shareholders; growth plans and projects; delivering long-term shareholder value; production guidance; the optimization project at Foster Creek; steam injection and timing of production at Narrows Lake; production and timing of well pads at Sunrise; installation and commissioning of the Sea Rose FPSO and return of production at White Rose; the installation and commissioning of, and timing of first oil from, the West White Rose project; 2025 planned maintenance; and dividend payments.

Developing forward‐looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the allocation of free funds flow; commodity prices, inflation and supply chain constraints; Cenovus’s ability to produce on an unconstrained basis; Cenovus’s ability to access sufficient insurance coverage to pursue development plans; Cenovus’s ability to deliver safe and reliable operations and demonstrate strong governance; and the assumptions inherent in Cenovus’s 2025 corporate guidance available on c enovus.com.

The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: the accuracy of estimates regarding commodity production and operating expenses, inflation, taxes, royalties, capital costs and currency and interest rates; risks inherent in the operation of Cenovus’s business; and risks associated with climate change and Cenovus’s assumptions relating thereto and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 202 4.

Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the periods ended December 31, 202 4 , and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).

Specified Financial Measures

This news release contains references to certain specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to the Specified Financial Measures Advisory located in Cenovus’s MD&A for the period ended December 31, 2024 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus’s website at cenovus.com ) which is incorporated by reference into this news release.

Upstream Operating Margin and Downstream Operating Margin

Upstream Operating Margin and Downstream Operating Margin, and the individual components thereof, are included in Note 1 to the interim Consolidated Financial Statements.

Total Operating Margin

Total Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.

	Upstream ⁽⁶⁾			Downstream ⁽⁶⁾			Total
($ millions)	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023
Revenues
Gross Sales	8,240	8,259	7,797	7,837	8,798	8,404	16,077	17,057	16,201
Less: Royalties	(914)	(929)	(902)	—	—	—	(914)	(929)	(902)
	7,326	7,330	6,895	7,837	8,798	8,404	15,163	16,128	15,299
Expenses
Purchased Product	1,000	1,088	663	7,364	8,207	7,888	8,364	9,295	8,551
Transportation and Blending	2,816	2,661	2,894	—	—	—	2,816	2,661	2,894
Operating	842	860	864	866	918	826	1,708	1,778	1,690
Realized (Gain) Loss on Risk Management	(2)	(10)	19	3	(4)	(6)	1	(14)	13
Operating Margin	2,670	2,731	2,455	(396)	(323)	(304)	2,274	2,408	2,151

⁶Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. Revenues and purchased product for Q3 2024 Downstream operations were revised. See note 25 of our December 31, 2024, interim consolidated financial statements.

($ millions)	Upstream ⁽⁶⁾				Downstream ⁽⁶⁾			Total
Year ended December 31,	2024		2023		2024		2023	2024		2023
Revenues
Gross Sales	33,078		31,082		33,618		32,626	66,696		63,708
Less: Royalties	(3,449	)	(3,270	)	—		—	(3,449	)	(3,270	)
	29,629		27,812		33,618		32,626	63,247		60,438
Expenses
Purchased Product	3,674		3,152		30,252		28,273	33,926		31,425
Transportation and Blending	11,331		11,088		—		—	11,331		11,088
Operating	3,489		3,690		3,670		3,201	7,159		6,891
Realized (Gain) Loss on Risk Management	14		12		8		—	22		12
Operating Margin	11,121		9,870		(312	)	1,152	10,809		11,022

Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow

The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.

	Three Months Ended			Twelve Months Ended
($ millions)	December 31, 2024	September 30, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Cash From (Used in) Operating Activities ⁽⁷⁾	2,029	2,474	2,946	9,235	7,388
(Add) Deduct:
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Net Change in Non-Cash Working Capital	492	588	949	1,305	(1,193)
Adjusted Funds Flow	1,601	1,960	2,062	8,164	8,803
Capital Investment	1,478	1,346	1,170	5,015	4,298
Free Funds Flow	123	614	892	3,149	4,505
Add (Deduct):
Base Dividends Paid on Common Shares	(330)	(329)	(261)	(1,255)	(990)
Purchase of Common Shares under Employee Benefit Plan	(43)	—	—	(43)	—
Dividends Paid on Preferred Shares	(18)	(9)	(9)	(45)	(36)
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Principal Repayment of Leases	(80)	(74)	(72)	(299)	(288)
Acquisitions, Net of Cash Acquired	(3)	(4)	(14)	(22)	(515)
Proceeds From Divestitures	(1)	22	—	46	12
Excess Free Funds Flow	(416)	146	471	1,297	2,466

⁷ Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements.

Market Capture

Market Capture contains a non-GAAP financial measure and is used in the company’s U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. We define Market Capture as Refining Margin divided by the weighted average 3-2-1 market benchmark crack, net of RINs, expressed as a percentage. The weighted average crack spread, net of RINs, is calculated on Cenovus’s operable capacity-weighted average of the Chicago and Group 3 3-2-1 benchmark market crack spreads, net of RINs.

($ millions)	Three months ended December 31, 2024	Three months ended September 30, 2024
Revenues⁽⁸⁾	6,574	7,218
Purchased Product⁽⁸⁾	6,296	6,854
Gross Margin	278	364
Total Processed Inputs (Mbbls/d)	588.4	568.0
Refining Margin ($/bbl)	5.14	6.97
Operable Capacity (Mbbls/d)	612.3	612.3
Operable Capacity by Regional Benchmark (percent)
Chicago 3-2-1 Crack Spread Weighting	81	81
Group 3 3-2-1 Crack Spread Weighting	19	19
Benchmark Prices and Exchange Rate
Chicago 3-2-1 Crack Spread (US$/bbl)	12.12	18.62
Group 3 3-2-1 Crack Spread (US$/bbl)	12.66	18.95
RINs (US$/bbl)	4.02	3.89
US$ per C$1 – Average	0.715	0.733
Weighted Average Crack Spread, Net of RINs ($/bbl)	11.47	20.18
Market Capture (percent)	45	35

⁸ Found in Note 1 of the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. For the three months ended September 30, 2024, amounts reflect certain revisions. See Note 25 of our December 31, 2024, interim consolidated financial statements.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.

Cenovus contacts

Investors
Investor Relations general line
403-766-7711

Media
Media Relations general line
403-766-7751

The MIL Network –

February 21, 2025

MIL-OSI: Elite Capital & Co. Limited Reinforces Financial Integrity with International Standards

Source: GlobeNewswire (MIL-OSI)

LONDON, Feb. 20, 2025 (GLOBE NEWSWIRE) — Mr. George Matharu, President and CEO of Elite Capital & Co. Limited, announced today that Elite Capital & Co. continues its financial integrity and operational excellence, through adherence to a suite of internationally recognised certifications, including ISO 37001 (Anti-Bribery Management Systems), ISO 27001 (Information Security Management), ISO 9001 (Quality Management Systems), AML Certification (Anti-Money Laundering), and an LEI Number (Legal Entity Identifier). These certifications are not merely accolades but a testament to Elite Capital’s unwavering commitment to fostering transparency, security, and ethical practices in the financial sector.

“At Elite Capital, we understand that trust is the foundation of every successful financial partnership. By embracing these globally recognised standards, we are not only setting a new benchmark for excellence but also empowering governments and institutions to operate with unparalleled confidence and credibility,” Mr. George Matharu said.

The significance of these certifications extends far beyond Elite Capital’s operations. For governments and their affiliated bodies, both locally and internationally, these standards represent a transformative step towards enhancing financial integrity and combating corruption. By partnering with Elite Capital, governments gain access to a financial management partner that prioritises transparency, accountability, and ethical practices, ensuring that public funds are managed with the utmost care and precision.

Dr. Faisal Khazaal, Chairman of Elite Capital & Co. Limited and the Head of Government Future Financing 2030 Program, added, “In today’s interconnected world, financial integrity is not just a regulatory requirement—it is a cornerstone of sustainable development. Elite Capital’s commitment to these global standards reflects our vision of fostering trust and collaboration on both a local and international scale. We are proud to lead by example and support governments and institutions in building resilient financial systems that drive sustainable growth and public trust.”

Elite Capital & Co. Limited is a Financial Management company that provides project-related services, including Management, Consultancy, and Funding, particularly for large infrastructure and mega commercial projects.

Elite Capital & Co. Limited offers a wealth of experience in Banking and Financial transactions and has a range of specialised advisory services for private clients, medium and large corporations as well as governments. It is also the exclusive manager of the Government Future Financing 2030 Program®.

Dr. Faisal Khazaal concluded his statement by saying: “Our mission is to redefine the future of financial management by combining innovation with integrity. As we move forward, we remain committed to delivering exceptional value to our clients, fostering trust, and setting new standards of excellence in the global financial landscape.”

Key Highlights for Governments and Institutions:

1. Enhanced Transparency and Accountability:

Elite Capital’s certifications, particularly ISO 37001 and AML Certification, ensure that all financial operations are conducted with the highest levels of transparency. This is critical for governments seeking to build public trust and demonstrate accountability in managing public funds.

2. Strengthened Financial Systems:

By adhering to ISO 9001 and ISO 27001 standards, Elite Capital helps governments and institutions strengthen their financial systems, ensuring efficiency, security, and resilience against emerging threats.

3. Global Compliance and Collaboration:

The LEI Number and AML Certification facilitate seamless compliance with international regulations, enabling governments to engage in cross-border transactions with confidence and ease.

4. Combating Corruption:

Elite Capital’s Anti-Bribery Management System (ISO 37001) provides governments with a robust framework to combat corruption, ensuring that financial operations are free from unethical practices.

5. Building Public Trust:

By aligning with Elite Capital, governments can reinforce their commitment to ethical practices, fostering trust among citizens, investors, and international partners.

Mr. George Matharu concluded his statement by saying: “This announcement underscores Elite Capital & Co. Limited’s pivotal role in shaping a more transparent, secure, and ethical financial future for governments and institutions worldwide. By setting new standards of excellence, Elite Capital continues to lead the way in redefining global financial integrity.”

Contact Details –

Elite Capital & Co. Limited

33 St. James Square

London, SW1Y4JS

United Kingdom

Telephone: +44 (0) 203 709 5060

SWIFT Code: ELCTGB21

LEI Code: 254900NNN237BBHG7S26

Website: ec.uk.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce9aba72-2c21-4cb1-a4f9-f7303987e0a5

The MIL Network –

February 21, 2025
MIL-OSI: Bitget’s Liquidity Depth Analysis Highlights Competitive Edge in Crypto Trading

Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Feb. 20, 2025 (GLOBE NEWSWIRE) — Bitget, the leading cryptocurrency exchange and Web3 company, has collaborated with CryptoRank to conduct an in-depth comparative analysis of liquidity depth among the top five global centralized cryptocurrency exchanges (CEXs): Binance, Bitget, Bybit, MEXC, and OKX. The research offers valuable insights into each platform’s ability to handle large market orders with minimal price impact, a critical factor for traders seeking efficient trade execution.

Top key findings of the report highlight Spot and Futures market liquidity. Bitget secured a second position among the top five global exchanges, showing substantial liquidity depth in major trading pairs such as BTC/USDT and ETH/USDT. This positions Bitget as a competitive choice for traders seeking efficient trade execution in high-volume markets.

In the futures market, Bitget ranked fourth with strong liquidity across key pairs, reflecting its growing presence and capability in the derivatives trading sector.

The analysis evaluated liquidity depth at around 2% price range from the mid-market price, a critical metric for assessing an exchange’s ability to handle large market orders with minimal slippage. Bitget’s performance in this area highlights its dedication to maintaining a liquid and stable trading environment for its users.

The study reveals significant variations in liquidity depth across major centralized crypto exchanges in both spot and futures markets. Binance’s dominance in the spot market and MEXC’s leadership in the futures market highlight the diverse strengths of these platforms. Bitget’s strong performance in both markets aligns with the exchange’s market performance, which has made it the fastest-growing CEX in the top 10. These insights assist investors in selecting the most suitable exchange for their trading activities, considering factors such as liquidity depth and market focus.

Recently, Forbes listed Bitget as one of the top most trusted crypto exchanges worldwide. In 2024, Bitget expanded its user base by 400%, from 20M in January to 100M in December. Spot trading surged from $160B in Q1 to $600B in Q4; daily volumes doubled to $20B. The high-paced updates and top performance amongst CEXs has pushed Bitget to the top #3 exchanges in derivatives trading while strengthening its positioning amongst the top #5 on Spot. Keeping the momentum going, Bitget continues to expand its offerings and improve platform features, maintaining high liquidity to support seamless trading for its vast user base.

For more information, please find the Cryptorank report here.

About Bitget

Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 100 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, token swap, NFT Marketplace, DApp browser, and more.

Bitget is at the forefront of driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM markets, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.

For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet

For media inquiries, please contact: media@bitget.com

Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ad78461a-18f9-42bb-8720-fab1af7d2f47

The MIL Network –

February 21, 2025
MIL-OSI: STMicroelectronics to enable higher-performance cloud optical interconnect in datacenters and AI clusters
Source: GlobeNewswire (MIL-OSI)

STMicroelectronics to enable higher-performance cloud optical interconnect in datacenters and AI clusters
- New silicon photonics and next-gen BiCMOS proprietary technologies bring better performance to address the coming 800Gb/s and 1.6Tb/s optical interconnects.
- Developing a roadmap with partners across the value chain for higher energy efficiency pluggable optics and to address the next generation of AI clusters GPU interconnects.
Geneva, Switzerland, February 20, 2025 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, is unveiling its next generation of proprietary technologies for higher-performing optical interconnect in datacenters and AI clusters. With the exponential growth of AI computing needs, challenges arise in performance and energy efficiency across computing, memory, power supply, and the interconnections linking them. ST is helping hyperscalers, and the leading optical module provider, overcome those challenges with new silicon photonics and next-gen BiCMOS technologies, scheduled to ramp up from the second half of 2025 for 800Gb/s and 1.6Tb/s optical modules.

At the heart of interconnections in a datacenter are thousands, or even hundreds of thousands, of optical transceivers. These devices convert optical into electrical signals and vice versa to allow data flow between graphics processing unit (GPU) computing resources, switches and storage. Inside these transceivers, ST’s new, proprietary silicon photonics (SiPho) technology will bring customers the ability to integrate multiple complex components into one single chip, while ST’s next-gen, proprietary BiCMOS technology brings ultra high-speed and low power optical connectivity, which are key to sustain the AI growth.

“AI demand is accelerating the adoption of high-speed communication technology within the datacenter ecosystem. This is the right time for ST to introduce new power efficient silicon photonics technology and complementing it with a new generation of BiCMOS for our customers to design the next wave of optical interconnect products, which will enable 800Gbps/1.6Tbps solutions for the hyperscalers,” said Remi El-Ouazzane, President, Microcontrollers, Digital ICs and RF products Group at STMicroelectronics. “Both technologies will be manufactured on 300mm processes in Europe, bringing customers an independent high-volume supply for two key components of their optical module development strategy. Today’s announcement represents the first step for our PIC product-family and, thanks to close collaboration with key partners across the entire value chain, our ambition is to become a key supplier of silicon photonics and BiCMOS wafers for the datacenter and AI cluster market, be it pluggable optics today or optical I/O tomorrow.”

“AWS is pleased to collaborate with STMicroelectronics to develop a new silicon photonics technology (SiPho), PIC100, that will enable interconnection between any workload including Artificial Intelligence (AI). AWS is working with STMicroelectronics based on their demonstrated capability to make PIC100 a leading SiPho technology for the optical and AI market. We are enthusiastic about the potential innovations this will unlock for SiPho,” said Nafea Bshara, Vice President and Distinguished Engineer at Amazon Web Services.

“The Pluggable Optics for Data Center Market is experiencing significant growth, valued at $7 billion in 2024,” said Dr. Vladimir Kozlov, CEO and Chief Analyst at LightCounting. “This market is expected to grow at a Compound Annual Growth Rate (CAGR) of 23% during 2025—2030 to exceed $24 billion at the end of this period. Market share of transceivers based on silicon photonics modulators will increase from 30% in 2024 to 60% by 2030.”

Additional information

ST’s SiPho technology combined with the ST BiCMOS technology are a unique 300mm silicon platform to serve the optical market. Both technologies are being industrialized and will be manufactured in ST’s Crolles (France/Europe) 300mm fab.

Additional technical information is available at ST.com on BiCMOS technology and Silicon Photonics.

You can also read our blogpost at https://blog.st.com/pic100/

About STMicroelectronics
At ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are committed to achieving our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027. Further information can be found at www.st.com.

INVESTOR RELATIONS
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41.22.929.59.20
jerome.ramel@st.com

MEDIA RELATIONS
Alexis Breton
Corporate External Communications
Tel: +33.6.59.16.79.08
alexis.breton@st.com

Attachments
- T4672S — Feb 20 2025 — Cloud Optical Interconnects__IMAGE 1
- T4672S — Feb 20 2025 — Cloud Optical Interconnects__FINAL FOR PUBLICATION
The MIL Network –
February 20, 2025
MIL-OSI: MEXC Launches PAIN (PAIN) Airdrop+ with Spot and Futures Trading, Offering 270,000 USDT in Bonuses
Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Feb. 20, 2025 (GLOBE NEWSWIRE) — MEXC, the world’s leading cryptocurrency trading platform, announced the listing of the PAIN (PAIN) on both spot and futures markets, scheduled for February 20, 2025, at 01:05 (UTC). The launch on MEXC will be accompanied by Airdrop+ rewards of 270,000 USDT.

Unleashes the Power of PAIN: The Meme That Took Over the Internet Goes Crypto

Inspired by the legendary “Hide the Pain Harold” meme, which has entertained the internet for over 14 years, PAIN represents more than just a token—it embodies resilience, humor, and the idea that what doesn’t kill you makes you stronger. PAIN’s meme identity is rooted in the viral images of András István Arató, a retired Hungarian electrical engineer whose iconic awkward yet polite smile became a universal symbol of concealed struggle. Over the years, Arató has embraced his internet fame, securing brand deals with Coca-Cola, starring in TV shows, and even hosting Hungary’s annual sports awards. Now, PAIN makes its mark in the crypto world, connecting its long-standing internet legacy with the rapidly growing meme coin sector.

As a global leader in digital asset trading, MEXC’s listing of PAIN highlights the growing influence of meme culture in Web3 and the expanding role of community-driven tokens. By offering strong liquidity, broad market access, and dedicated trading support, MEXC provides the perfect environment for PAIN to thrive.

To celebrate the listing, MEXC is also launching a $270,000 reward pool across two major activities, allowing users to engage with PAIN, explore the meme-powered economy, and be part of one of the most entertaining narratives in the digital asset space.

Celebrate the PAIN Launch with a prize pool of 270,000 USDT

In a significant show of support for PAIN and its expansive ecosystem, MEXC is set to list the new PAIN token. This move not only underscores MEXC’s commitment to pioneering blockchain projects but also connects users with a dynamic network that fuels cutting-edge initiatives.

MEXC, known for quickly listing trending tokens, expands its offerings with PAIN (PAIN). The PAIN/USDT trading market officially launched in the Innovation Zone on February 20, 2025, at 01:05 (UTC), followed by the introduction of the PAIN USDT perpetual futures at 01:23 (UTC), offering adjustable leverage from 1x to 50x with both cross and isolated margin modes.

To celebrate the listing of PAIN (PAIN) on MEXC Spot and Futures on February 20, MEXC is launching a series of exclusive activities starting on February 20, 2025, at 07:00 (UTC). Participants will have the chance to win USDT bonuses, and other exciting rewards, with opportunities available for both new and experienced users.

These activities include:
- Event 1: Airdrop+
Benefit 1: Deposit and share 200,000 USDT in Futures bonus (New user exclusive).
Benefit 2: Futures Challenge — Trade to share 50,000 USDT in Futures bonus (Open all users).
Benefit 3: Invite new users and share 20,000 USDT in Futures bonus (Open to all users).
- Event 2: Spread the Word and Win 1,000 USDT in Bonus.
Your Easiest Way to Trending Tokens

MEXC aims to become the go-to platform offering the widest range of valuable crypto assets. The platform has grown its user base to 30 million by providing a diverse selection of tokens, high-frequency airdrops, and simple participation processes. In 2024, MEXC launched a total of 2,376 new tokens, including 1,716 initial listings and 605 memecoins, with total airdrop rewards exceeding $136 million.

About MEXC

Founded in 2018, MEXC is committed to being “Your Easiest Way to Crypto”. Serving over 30 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, frequent airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.
MEXC Official Website｜ X ｜ Telegram ｜How to Sign Up on MEXC

Contact:
Lucia Hu
PR Manager
lucia.hu@mexc.com

Disclaimer: This content is provided by MEXC. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a0aa8f2-bfba-4145-9b11-4629db3d330c

The MIL Network –
February 20, 2025

MIL-OSI: Bilibili Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SHANGHAI, China, Feb. 20, 2025 (GLOBE NEWSWIRE) — Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter and Fiscal Year 2024 Highlights:

Total net revenues were RMB7.73 billion (US$1,059.6 million) in the fourth quarter and RMB26.83 billion (US$3,675.9 million) in 2024, representing increases of 22% and 19% year over year, respectively.
- Advertising revenues were RMB2.39 billion (US$327.2 million) in the fourth quarter and RMB8.19 billion (US$1,121.9 million) in 2024, representing increases of 24% and 28% year over year, respectively.
- Mobile games revenues were RMB1.80 billion (US$246.3 million) in the fourth quarter and RMB5.61 billion (US$768.6 million) in 2024, representing increases of 79% and 40% year over year, respectively.
Gross profit was RMB2.79 billion (US$382.0 million) in the fourth quarter and RMB8.77 billion (US$1,202.0 million) in 2024, representing increases of 68% and 61% year over year, respectively. Gross profit margin reached 36.1% in the fourth quarter and 32.7% in 2024, improving from 26.1% in the fourth quarter of 2023 and 24.2% in the year of 2023, respectively.
Net profit was RMB88.9 million (US$12.2 million) for the fourth quarter, compared with net loss of RMB1.30 billion in the same period last year. For 2024, net loss was RMB1.36 billion (US$186.8 million), narrowing by 72% year over year.
Adjusted net profit¹ was RMB452.0 million (US$61.9 million) for the fourth quarter, compared with an adjusted net loss of RMB555.8 million in the same period last year. For 2024, adjusted net loss was RMB39.0 million (US$5.3 million), narrowing by 99% year over year.
Operating cash flow was RMB1.40 billion (US$191.9 million) for the fourth quarter and RMB6.01 billion (US$824.0 million) for 2024, compared with RMB640.4 million in the fourth quarter of 2023 and RMB266.6 million in the year of 2023, respectively.
Average daily active users (DAUs) were 103.0 million in the fourth quarter, compared with 100.1 million in the same period last year.

“We closed 2024 on a strong note, achieving our first quarter of GAAP profitability—a milestone reflecting the value of our community and our relentless effort to enhance our commercialization efficiency,” said Mr. Rui Chen, chairman and chief executive officer of Bilibili. “In the fourth quarter, our DAUs and MAUs reached 103 million and 340 million, respectively, with users spending an average of 99 minutes daily on our platform. Throughout the year, we advanced our commercialization strategy and improved our products to meet users’ evolving content and consumption needs. For 2024, our total net revenues grew 19% year-over-year to RMB26.83 billion, driven by strong advertising and mobile games businesses, which saw revenue increases of 28% and 40%, both on year-over-year basis, respectively. We are also very encouraged by the emergence of new open-source AI models, making AI solutions accessible and cost-effective. Leveraging our high-quality and exclusive data assets, we expect to benefit even more from this remarkable revolution, unleashing greater value from our unique community.”

Mr. Sam Fan, chief financial officer of Bilibili, said, “Strong growth in our high-margin advertising and mobile games businesses drove total net revenues up by 22% year over year in the fourth quarter. Gross profit surged by 68% year-over-year in the fourth quarter, leading to a 10 percentage-point increase in our gross profit margin to 36.1%. Meanwhile, we generated RMB6.01 billion in operating cash flow for the full year 2024. We also enhanced shareholder returns by repurchasing outstanding ADSs and convertible senior notes totaling US$864.8 million during the year. Looking ahead, we are determined to further unlock the value embedded within our community with more efficient commercialization products and services to drive sustainable profitability over the long run.”

Fourth Quarter 2024 Financial Results

Total net revenues. Total net revenues were RMB7.73 billion (US$1,059.6 million), representing an increase of 22% from the same period of 2023.

Advertising. Revenues from advertising were RMB2.39 billion (US$327.2 million), representing an increase of 24% from the same period of 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB1.80 billion (US$246.3 million), representing an increase of 79% from the same period of 2023, mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia launched in 2024.

Value-added services (VAS). Revenues from VAS were RMB3.08 billion (US$422.4 million), representing an increase of 8% from the same period of 2023, led by increases in revenues from other value-added services and premium membership.

IP derivatives and others. Revenues from IP derivatives and others were RMB464.9 million (US$63.7 million), representing a decrease of 16% from the same period of 2023.

Cost of revenues. Cost of revenues was RMB4.95 billion (US$677.6 million), representing an increase of 5% from the same period of 2023. The increase was mainly due to higher revenue-sharing costs and was partially offset by lower content costs. Revenue-sharing costs, a key component of cost of revenues, were RMB3.17 billion (US$434.2 million), representing an increase of 12% from the same period of 2023, mainly due to the increase of mobile games-related revenue-sharing costs.

Gross profit. Gross profit was RMB2.79 billion (US$382.0 million), representing an increase of 68% from the same period of 2023, mainly attributable to the growth in total net revenues and the decrease in costs related to platform operations, as the Company enhanced its monetization efficiency.

Total operating expenses. Total operating expenses were RMB2.66 billion (US$364.7 million), representing a decrease of 10% from the same period of 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB1.24 billion (US$169.4 million), representing a 10% increase from the same period of 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB505.9 million (US$69.3 million), remaining flat compared with the same period of 2023.

Research and development expenses. Research and development expenses were RMB919.3 million (US$125.9 million), representing a 31% decrease from the same period of 2023. The decrease was mainly attributable to the one-off termination expenses of certain game projects that occurred in the fourth quarter of 2023.

Profit/(loss) from operations. Profit from operations was RMB126.4 million (US$17.3 million), compared with a loss of RMB1.30 billion from the same period of 2023.

Adjusted profit/(loss) from operations¹. Adjusted profit from operations was RMB463.1 million (US$63.4 million), compared with an adjusted loss from operations of RMB635.1 million from the same period of 2023.

Total other (expenses)/income, net. Total other expenses were RMB61.0 million (US$8.4 million), compared with total other income of RMB13.1 million in the same period of 2023.

Income tax benefit/(expense). Income tax benefit was RMB23.5 million (US$3.2 million), compared with income tax expense of RMB5.1 million in the same period of 2023.

Net profit/(loss). Net profit was RMB88.9 million (US$12.2 million), compared with net loss of RMB1.30 billion from the same period of 2023.

Adjusted net profit/(loss)¹. Adjusted net profit was RMB452.0 million (US$61.9 million), compared with an adjusted net loss of RMB555.8 million in the same period of 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net profit per share were RMB0.22 (US$0.03) and RMB0.21 (US$0.03) each, compared with basic and diluted net loss per share of RMB3.13 each in the same period of 2023. Adjusted basic and diluted net profit per share were RMB1.08 (US$0.15) and RMB1.07 (US$0.15) each, compared with an adjusted basic and diluted net loss per share of RMB1.34 each in the same period of 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB1.40 billion (US$191.9 million), compared with net cash provided by operating activities of RMB640.4 million in the same period of 2023.

Fiscal Year 2024 Financial Results

Total net revenues. Total net revenues were RMB26.83 billion (US$3.68 billion), representing an increase of 19% from 2023.

Advertising. Revenues from advertising were RMB8.19 billion (US$1,121.9 million), representing an increase of 28% from 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB5.61 billion (US$768.6 million), representing an increase of 40% from 2023. The increase was mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia.

Value-added services (VAS). Revenues from VAS were RMB11.00 billion (US$1.51 billion), representing an increase of 11% from 2023, led by an increase in revenues from live broadcasting and other value-added services.

IP derivatives and others. Revenues from IP derivatives and others were RMB2.03 billion (US$278.5 million), representing a decrease of 7% from 2023.

Cost of revenues. Cost of revenues was RMB18.06 billion (US$2.47 billion), representing an increase of 6% from 2023. The increase was mainly due to increased revenue sharing costs and server and bandwidth costs. Revenue-sharing costs, a key component of cost of revenues, were RMB10.80 billion (US$1.48 billion), representing an increase of 14% from 2023.

Gross profit. Gross profit was RMB8.77 billion (US$1,202.0 million), representing an increase of 61% from 2023, primarily as a result of the growth in total net revenues and the decrease in costs related to platform operations, as the Company enhanced its monetization efficiency.

Total operating expenses. Total operating expenses were RMB10.12 billion (US$1.39 billion), representing a decrease of 4% from 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB4.40 billion (US$603.0 million), representing a 12% increase from 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB2.03 billion (US$278.3 million), representing a 4% decrease from 2023. The decrease was primarily attributable to a decrease in general and administrative personnel headcount in 2024.

Research and development expenses. Research and development expenses were RMB3.69 billion (US$504.9 million), representing an 18% decrease from 2023. The decrease was mainly attributable to a decrease in research and development personnel headcount in 2024 and the one-off termination expenses of certain game projects that occurred in the fourth quarter of 2023.

Loss from operations. Loss from operations was RMB1.34 billion (US$184.1 million), narrowing by 73% from 2023.

Adjusted loss from operations¹. Adjusted loss from operations was RMB60.8 million (US$8.3 million), narrowing by 98% from 2023.

Total other (expenses)/income, net. Total other expenses were RMB56.2 million (US$7.7 million), compared with total other income of RMB331.2 million in 2023. The change was primarily attributable to losses of RMB38.6 million from the repurchase of convertible senior notes in 2024, compared with gains of RMB292.2 million in 2023.

Income tax benefit/(expense). Income tax benefit was RMB36.5 million (US$5.0 million), compared with income tax expense of RMB78.7 million in 2023.

Net loss. Net loss was RMB1.36 billion (US$186.8 million), narrowing by 72% from 2023.

Adjusted net loss¹. Adjusted net loss was RMB39.0 million (US$5.3 million), narrowing by 99% from 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net loss per share were RMB3.23 (US$0.44) each, compared with RMB11.67 each in 2023. Adjusted basic and diluted net loss per share were RMB0.05 (US$0.01) each, compared with RMB8.29 each in 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB6.01 billion (US$824.0 million), compared with net cash provided by operating activities of RMB266.6 million for 2023.

Cash and cash equivalents, time deposits and short-term investments. As of December 31, 2024, the Company had cash and cash equivalents, time deposits and short-term investments of RMB16.54 billion (US$2.27 billion).

Share Repurchase Program

On November 14, 2024, the Company announced that its board of directors had approved a share repurchase program of up to US$200 million of its publicly traded securities over a 24-month period. As of December 31, 2024, the Company had repurchased a total of approximately 0.84 million ADSs under this authorized program for a total cost of US$16.4 million.

Repurchase of Convertible Senior Notes

In November 2024, the Company completed the repurchase right offer for its 0.50% Convertible Senior Notes due 2026 (the “December 2026 Notes”). An aggregate principal amount of US$419.1 million (RMB3.01 billion) of the December 2026 Notes was validly surrendered and repurchased with an aggregate cash consideration of US$419.1 million (RMB3.01 billion). After completion of this transaction, the aggregate outstanding principal amount of the April 2026 Notes, the 2027 Notes and the December 2026 Notes was US$13.4 million (RMB96.4 million).

_¹ _{Adjusted profit/(loss) from operations, adjusted net profit/(loss), and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”}

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on February 20, 2025 (8:00 PM Beijing/Hong Kong Time on February 20, 2025). Details for the conference call are as follows:

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.

Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com, and a replay of the webcast will be available following the session.

About Bilibili Inc.

Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.

For more information, please visit: http://ir.bilibili.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as adjusted profit/(loss) from operations, adjusted net profit/(loss), adjusted net profit/(loss) per share and per ADS, basic and diluted and adjusted net profit/(loss) attributable to the Bilibili Inc.’s shareholders in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisitions, gain/loss on fair value change in investments in publicly traded companies, gain/loss on repurchase of convertible senior notes, and termination expenses of certain game projects. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred to could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com

BILIBILI INC. Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data)

	For the Three Months Ended						For the Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2024		2024		2023		2024
	RMB		RMB		RMB		RMB		RMB

Net revenues:
Value-added services (VAS)	2,857,079		2,821,269		3,083,071		9,910,080		10,999,137
Advertising	1,929,164		2,094,427		2,388,673		6,412,040		8,189,175
Mobile games	1,006,858		1,822,609		1,797,537		4,021,137		5,610,323
IP derivatives and others	555,995		567,315		464,880		2,184,730		2,032,890
Total net revenues	6,349,096		7,305,620		7,734,161		22,527,987		26,831,525
Cost of revenues	(4,689,114	)	(4,758,434	)	(4,945,945	)	(17,086,122	)	(18,057,562	)
Gross profit	1,659,982		2,547,186		2,788,216		5,441,865		8,773,963

Operating expenses:
Sales and marketing expenses	(1,125,464	)	(1,202,407	)	(1,236,593	)	(3,916,150	)	(4,401,655	)
General and administrative expenses	(511,906	)	(505,386	)	(505,861	)	(2,122,432	)	(2,031,063	)
Research and development expenses	(1,327,282	)	(906,072	)	(919,321	)	(4,467,470	)	(3,685,214	)
Total operating expenses	(2,964,652	)	(2,613,865	)	(2,661,775	)	(10,506,052	)	(10,117,932	)
(Loss)/profit from operations	(1,304,670	)	(66,679	)	126,441		(5,064,187	)	(1,343,969	)

Other income/(expenses):
Investment loss, net (including impairments)	(199,004	)	(70,957	)	(283,191	)	(435,644	)	(470,081	)
Interest income	126,450		91,279		110,150		542,472		434,980
Interest expense	(29,181	)	(17,824	)	(19,986	)	(164,927	)	(89,193	)
Exchange gains/(losses)	4,848		(5,909	)	10,529		(35,575	)	(68,715	)
Debt extinguishment (loss)/gain	–		–		(17,649	)	292,213		(38,629	)
Others, net	110,007		(18,134	)	139,107		132,640		175,412
Total other income/(expenses), net	13,120		(21,545	)	(61,040	)	331,179		(56,226	)
(Loss)/profit before income tax	(1,291,550	)	(88,224	)	65,401		(4,733,008	)	(1,400,195	)
Income tax (expense)/benefit	(5,140	)	8,419		23,533		(78,705	)	36,544
Net (loss)/profit	(1,296,690	)	(79,805	)	88,934		(4,811,713	)	(1,363,651	)
Net loss/(profit) attributable to noncontrolling interests	206		290		1,026		(10,608	)	16,851
Net (loss)/profit attributable to the Bilibili Inc.’s shareholders	(1,296,484	)	(79,515	)	89,960		(4,822,321	)	(1,346,800	)
Net (loss)/profit per share, basic	(3.13	)	(0.19	)	0.22		(11.67	)	(3.23	)
Net (loss)/profit per ADS, basic	(3.13	)	(0.19	)	0.22		(11.67	)	(3.23	)
Net (loss)/profit per share, diluted	(3.13	)	(0.19	)	0.21		(11.67	)	(3.23	)
Net (loss)/profit per ADS, diluted	(3.13	)	(0.19	)	0.21		(11.67	)	(3.23	)
Weighted average number of ordinary shares, basic	414,793,013		417,849,446		417,829,038		413,210,271		416,470,256
Weighted average number of ADS, basic	414,793,013		417,849,446		417,829,038		413,210,271		416,470,256
Weighted average number of ordinary shares, diluted	414,793,013		417,849,446		424,208,294		413,210,271		416,470,256
Weighted average number of ADS, diluted	414,793,013		417,849,446		424,208,294		413,210,271		416,470,256

The accompanying notes are an integral part of this press release.

BILIBILI INC. Notes to Unaudited Condensed Financial Information (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Year Ended
	December 31,	September 30,	December 31,		December 31,	December 31,
	2023	2024	2024		2023	2024
	RMB	RMB	RMB		RMB	RMB


Share-based compensation expenses included in:
Cost of revenues	15,014	26,781	25,350		63,724	84,178
Sales and marketing expenses	13,960	16,015	18,524		56,649	60,460
General and administrative expenses	150,226	133,825	137,513		596,950	568,194
Research and development expenses	87,859	120,490	113,649		415,321	403,380
Total	267,059	297,111	295,036		1,132,644	1,116,212

BILIBILI INC. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per share data)
	December 31,	December 31,
	2023	2024
	RMB	RMB

Assets
Current assets:
Cash and cash equivalents	7,191,821	10,249,382
Time deposits	5,194,891	3,588,475
Restricted cash	50,000	50,000
Accounts receivable, net	1,573,900	1,226,875
Prepayments and other current assets	2,063,362	1,934,788
Short-term investments	2,653,065	2,706,535
Total current assets	18,727,039	19,756,055
Non-current assets:
Property and equipment, net	714,734	589,227
Production cost, net	2,066,066	1,851,207
Intangible assets, net	3,627,533	3,201,012
Goodwill	2,725,130	2,725,130
Long-term investments, net	4,366,632	3,911,592
Other long-term assets	931,933	664,277
Total non-current assets	14,432,028	12,942,445
Total assets	33,159,067	32,698,500
Liabilities
Current liabilities:
Accounts payable	4,333,730	4,801,416
Salary and welfare payables	1,219,355	1,599,482
Taxes payable	345,250	428,932
Short-term loan and current portion of long-term debt	7,455,753	1,571,836
Deferred revenue	2,954,088	3,802,307
Accrued liabilities and other payables	1,795,519	2,558,830
Total current liabilities	18,103,695	14,762,803
Non-current liabilities:
Long-term debt	646	3,264,153
Other long-term liabilities	650,459	567,631
Total non-current liabilities	651,105	3,831,784
Total liabilities	18,754,800	18,594,587

Total Bilibili Inc.’s shareholders’ equity	14,391,900	14,108,397
Noncontrolling interests	12,367	(4,484	)
Total shareholders’ equity	14,404,267	14,103,913

Total liabilities and shareholders’ equity	33,159,067	32,698,500

BILIBILI INC. Unaudited Selected Condensed Consolidated Cash Flows Data (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Year Ended
	December 31,	September 30,	December 31,	December 31,	December 31,
	2023	2024	2024	2023	2024
	RMB	RMB	RMB	RMB	RMB

Net cash provided by operating activities	640,396	2,225,629	1,400,988	266,622	6,014,854

BILIBILI INC. Unaudited Reconciliations of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data)

	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2023			2024			2024			2023			2024
	RMB			RMB			RMB			RMB			RMB

(Loss)/Profit from operations		(1,304,670	)		(66,679	)		126,441			(5,064,187	)		(1,343,969	)
Add:
Share-based compensation expenses		267,059			297,111			295,036			1,132,644			1,116,212
Amortization expense related to intangible assets acquired through business acquisitions		47,734			41,776			41,581			191,770			166,909
Termination expenses of certain game projects		354,811			–			–			354,811			–
Adjusted (loss)/profit from operations		(635,066	)		272,208			463,058			(3,384,962	)		(60,848	)

Net (loss)/profit		(1,296,690	)		(79,805	)		88,934			(4,811,713	)		(1,363,651	)
Add:
Share-based compensation expenses		267,059			297,111			295,036			1,132,644			1,116,212
Amortization expense related to intangible assets acquired through business acquisitions		47,734			41,776			41,581			191,770			166,909
Income tax related to intangible assets acquired through business acquisitions		(5,563	)		(5,406	)		(5,358	)		(22,376	)		(21,578	)
Loss/(Gain) on fair value change in investments in publicly traded companies		76,839			(17,778	)		14,177			32,964			24,524
Loss/(Gain) on repurchase of convertible senior notes		–			–			17,649			(292,213	)		38,629
Termination expenses of certain game projects		354,811			–			–			354,811			–
Adjusted net (loss)/profit		(555,810	)		235,898			452,019			(3,414,113	)		(38,955	)
Net loss/(profit) attributable to noncontrolling interests		206			290			1,026			(10,608	)		16,851
Adjusted net (loss)/profit attributable to the Bilibili Inc.’s shareholders		(555,604	)		236,188			453,045			(3,424,721	)		(22,104	)
Adjusted net (loss)/profit per share, basic		(1.34	)		0.57			1.08			(8.29	)		(0.05	)
Adjusted net (loss)/profit per ADS, basic		(1.34	)		0.57			1.08			(8.29	)		(0.05	)
Adjusted net (loss)/profit per share, diluted		(1.34	)		0.57			1.07			(8.29	)		(0.05	)
Adjusted net (loss)/profit per ADS, diluted		(1.34	)		0.57			1.07			(8.29	)		(0.05	)
Weighted average number of ordinary shares, basic		414,793,013			417,849,446			417,829,038			413,210,271			416,470,256
Weighted average number of ADS, basic		414,793,013			417,849,446			417,829,038			413,210,271			416,470,256
Weighted average number of ordinary shares, diluted		414,793,013			417,849,446			424,208,294			413,210,271			416,470,256
Weighted average number of ADS, diluted		414,793,013			417,849,446			424,208,294			413,210,271			416,470,256

The MIL Network –

February 20, 2025

MIL-OSI: Aurora Mobile Integrates DeepSeek into Adpub to Redefine App Monetization
Source: GlobeNewswire (MIL-OSI)

SHENZHEN, China, Feb. 20, 2025 (GLOBE NEWSWIRE) — Aurora Mobile Limited (NASDAQ: JG) (“Aurora Mobile” or the “Company”), a leading provider of customer engagement and marketing technology services in China, today announced that it has integrated DeepSeek, an advanced large language model (LLM), into its Adpub platform. This strategic enhancement aims to revolutionize app monetization by leveraging DeepSeek’s lightweight architecture and domain-specific optimizations, delivering unmatched efficiency, scalability, and precision.

Smarter Monetization Tools for Developers

Adpub, Aurora Mobile’s app monetization platform, has already established itself as a trusted solution for developers to maximize advertising revenue. By aggregating SDKs from over ten major advertising platforms, Adpub simplifies access to multiple networks through a single integration. Its advanced real-time bidding system ensures that the highest-paying ads are displayed, boosting overall revenue by an average of 20%.

The integration of DeepSeek elevates Adpub’s capabilities further. With its cutting-edge natural language processing and data analysis features, DeepSeek enables Adpub to better understand user behavior and preferences. This empowers the platform to deliver highly relevant ads to the right audiences, significantly improving click-through rates (CTR) and overall ad performance.

Transformative Benefits with DeepSeek

The addition of DeepSeek unlocks a range of new possibilities for Adpub users, including:
- Enhanced Ad Targeting: DeepSeek analyzes vast amounts of user data to deliver personalized ad experiences, ensuring “the right ads reach the right people.”
- Improved Efficiency: Its lightweight architecture reduces computational overhead, enabling faster and more efficient data processing.
- Scalable Monetization: DeepSeek’s domain-specific optimizations make it easier for developers to scale monetization across diverse app categories and user demographics.
Developer-Centric Experience

Adpub remains committed to developer convenience by offering a comprehensive suite of tools, including head bidding, waterfall ad layering, traffic segmentation, and A/B testing. With DeepSeek’s integration, these features are further enhanced through deeper insights and more precise analytics, all accessible via a unified dashboard.

Pioneering Innovation in App Monetization

“We are thrilled to integrate DeepSeek into Adpub, marking a pivotal step in empowering developers with smarter monetization tools,” said Chris Lo, CEO of Aurora Mobile. “This integration not only strengthens Adpub’s leadership in app monetization but also sets a new benchmark for innovation in the industry.”

By focusing on scalable, efficient, and user-centric solutions, Aurora Mobile continues to lead the app monetization and developer services space. The integration of DeepSeek underscores the company’s commitment to leveraging cutting-edge technology to create value for its users.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile (NASDAQ: JG) is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises’ digital transformation.

For more information, please visit https://ir.jiguang.cn/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

Aurora Mobile Limited
E-mail: ir@jiguang.cn

Christensen

In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

The MIL Network –
February 20, 2025
MIL-OSI: Šiaulių Bankas Invitation to Q4 and FY 2024 Investor Webinar

Source: GlobeNewswire (MIL-OSI)

AB Šiaulių Bankas invites shareholders, investors, analysts and other stakeholders to join the Investor Webinar on 27 February, 2025 at 8:30 am (EET). The webinar will cover Q4 and FY2024 earnings results and key business highlights. The presentation will be held online in English.

Vytautas Sinius (CEO), Tomas Varenbergas (Head of Investment Management Division), and Tautvydas Mėdžius (Strategy Partner) will host the event. They will present the financial results, discuss recent developments, and address participant questions.

Please feel free to submit your questions in advance to investors@sb.lt

How to join the webinar?

To join the webinar, please register via following link https://sb.zoomtv.lt. After successful registration You will be provided with the webinar link.

Additional information:
Tomas Varenbergas
Head of Investment Management & Treasury
tomas.varenbergas@sb.lt

The MIL Network –

February 20, 2025
MIL-OSI: JD.com to Report Fourth Quarter and Full Year 2024 Financial Results on March 6, 2025

Source: GlobeNewswire (MIL-OSI)

BEIJING, Feb. 20, 2025 (GLOBE NEWSWIRE) — JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced that it plans to release its unaudited fourth quarter and full year 2024 financial results on Thursday, March 6, 2025, before the U.S. market opens.

JD.com’s management will hold a conference call at 7:00 am, Eastern Time on March 6, 2025, (8:00 pm, Beijing/Hong Kong Time on March 6, 2025) to discuss the fourth quarter and full year 2024 financial results.

Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10044957-x2nu4z.html

CONFERENCE ID: 10044957

A telephone replay will be available for one week until March 13, 2025. The dial-in details are as follows:

US: +1-855-883-1031

International:
Hong Kong:
Mainland China:
Passcode: +61-7-3107-6325
800-930-639
400-120-9216
10044957

Additionally, a live and archived webcast of the conference call will also be available on JD.com’s investor relations website at http://ir.jd.com.

About JD.com, Inc.

JD.com is a leading supply chain-based technology and service provider. The Company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

For investor and media inquiries, please contact:

Investor Relations
Sean Zhang
+86 (10) 8912-6804
IR@JD.com

Media Relations
+86 (10) 8911-6155
Press@JD.com

The MIL Network –

February 20, 2025
MIL-OSI: Axi Select Celebrates Top Milestone: Trader Secures $1,000,000 in Capital Funding

Source: GlobeNewswire (MIL-OSI)

SYDNEY, Feb. 20, 2025 (GLOBE NEWSWIRE) — Axi, a leading global provider of online trading services, has proudly announced that trader Francisco Quesada Godines has reached the top milestone in its innovative capital allocation program, Axi Select, securing $1million in capital funding. This incredible achievement is a testament to the broker’s commitment to provide its Axi Select traders with a real opportunity to maximise their trading potential.

According to Greg Rubin, Head of Axi Select, “Francisco, has demonstrated exceptional talent and commitment to the program. This milestone extends far beyond receiving $1million in funding. It not only highlights what traders can achieve when they trade consistently and can seize market opportunities to their advantage, but it also underscores the power of an all-inclusive, trader-centric program designed to unlock traders’ full potential.”

“We are incredibly excited for this milestone–a testament to the hard work and dedication of our traders” said Rajesh Yohannan, CEO of Axi, as he shares his pride in their unique program. “When we launched Axi Select in 2023, our aim was clear: we wanted to change the narrative by creating a model that meets traders’ demands; when traders are free from upfront costs, restrictive trading conditions, and other barriers, they can focus exclusively on sharpening their trading performance. Indeed, our experience over the past year has demonstrated that, when a program is geared towards harnessing traders’ full potential, they can achieve remarkable results.”

Axi Select offers ambitious traders a pathway to access capital funding up to $1,000,000 USD and earn up to 90% of their profits, as well as the advantage to join the program with zero registration or monthly fees*. Moreover, Axi Select uses a Standard or a Pro live account, unrestrictive trading conditions, and a suite of tools to nurture traders’ success and growth.

*Standard trading fees apply.

The Axi Select program is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available to AU, NZ, EU and UK residents. For more information, refer to our Terms of Service.

For more information contact : mediaenquiries@axi.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e3372dba-9460-4833-8180-ff68d3c17652

The MIL Network –

February 20, 2025
MIL-OSI: UnitedLex Bolsters European Footprint with Key Strategic Hires in IP and Legal Ops

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) — UnitedLex, a leading tech-enabled legal services company specializing in litigation, intellectual property, contracts, legal operations, and incident response, has strengthened its presence in Europe with the addition of two key hires in its London office: Thanasi Marinides as Vice President of IP Services and Solutions and Nicholas Robinson Cronjager as Vice President of Business Development, Legal Solutions.

These appointments underscore UnitedLex’s continued investment in EMEA markets, expanding its ability to deliver high-impact, tech-enabled legal services that help clients mitigate risk, drive revenue, and optimize business investment.

Marinides brings nearly 20 years of experience helping corporations and law firms optimize processes, reduce costs, and enhance the value of their intellectual property. As the founder of AI patent licensing platform Cintian, he is a recognized thought leader in AI’s impact on legal workflows, advising multinational clients on IP operations and monetization. Previously, he served as Regional Director, EMEA, at CPA Global and Sales and Marketing Director at Novagraaf, where he supported corporate development and built teams to support IP services. At UnitedLex, Marinides will lead initiatives to improve client outcomes through innovative, collaborative solutions.

Robinson Cronjager, a recognized leader in legal technology, cybersecurity, and AI solutions, joins UnitedLex as Vice President of Business Development, Legal Solutions, with a focus on driving strategic initiatives and solutions across litigation, contracts, outside counsel management, insider risk, and legal operations. Prior to joining UnitedLex, he was Global Director of Legal Solutions at SessionGuardian, where he led global go-to-market strategy. He has also held EMEA leadership and solutions roles at Onit, Thomson Reuters and Mitratech, driving new client growth, securing major enterprise clients and delivering complex legal solutions across the UK, Europe, and Middle East.

Their arrivals follow the recent addition of Lesley Hobbs as Director of Client Account Management in the company’s London office. Widely regarded as one of the leading client relationship professionals in both the APAC and UK in-house legal community, Hobbs will be instrumental in expanding UnitedLex’s relationships with corporate legal teams and driving client engagement in the region.

“The expansion of our European team with these key hires reflects our deep commitment to client service and forming lasting partnerships that help clients tackle today’s legal challenges with confidence,” said Raj Boer, Chief Client Officer at UnitedLex. “Thanasi, Nicholas, and Lesley bring exceptional expertise and leadership that will not only strengthen our capabilities but also enhance the way we collaborate with clients—delivering innovative solutions that drive meaningful business impact.”

UnitedLex continues to enhance its global capabilities through strategic hires and collaborative solutions that achieve value and drive momentum—empowering legal teams to deliver bottom-line growth.

About UnitedLex
UnitedLex is the preeminent business partner for legal delivering services that achieve value and drive growth for corporate legal departments and law firms in the areas of litigation and investigations, intellectual property, legal operations, and incident response.

Founded in 2006, we co-create solutions that mitigate risk, drive revenue, and optimize business investment—transforming the legal function into a catalyst for success. Our team of 3,000+ legal and business professionals, data analysts, technologists, and engineers supports our clients from operational centers around the world.

Press Inquiries:
Susan Hammann
Director, Strategic Communications
press@unitedlex.com

The MIL Network –

February 20, 2025
MIL-OSI: cBrain reports EBT of 32% and raises payout ratio to 20%

Source: GlobeNewswire (MIL-OSI)

Company Announcement no. 03/2025

cBrain reports EBT of 32% and raises payout ratio to 20%

Copenhagen, February 20, 2025

cBrain (NASDAQ: CBRAIN) reports revenue grew by +12% to DKK 268m in 2024, up from DKK 239m in 2023, aligning with the expected revenue growth range of 12-13%.

Software revenue is 78% of total revenue, while implementation and support services account for 22% of total revenue. Software subscriptions, the majority based on long-term contracts with Danish government customers, account for more than 50 % of the total revenue.

Earnings before tax (EBT) grew to DKK 86m in 2024, up from DKK 81m in 2023, thereby reaching an EBT margin of 32%. EBT is therefore at the expected EBT margin of 30-32%.

Due to faster-than-expected global industry changes as well as market uncertainties in the US and Germany, cBrain has held back some of the planned market investments in 2024. This has resulted in costs being lower than expected.

The results show a strong positive cash flow from operating activities. This enables an increase in dividends and investments in the growth of the company and at the same time reduces long-term loans on cBrain-owned buildings.

cBrain does not have a share buyback program. However, due to solid earnings, cBrain proposes to raise dividends to DKK 0,64 per share (2023: DKK 0,28 per share) corresponding to a payout ratio of approx. 20% of profit for the year.

Executing the growth plan
In 2022, cBrain announced its 2023-2025 growth plan with the goal of consolidating the business model and preparing for long-term growth by positioning itself as a supplier of climate software for government and developing a partner model.

During the past two years, cBrain has executed this plan and during 2023 and 2024, cBrain has grown, initiated partnerships, and delivered solid results, growing revenue by +42% and growing EBT by +76%.

The growth plan assumes that government organizations over time will switch from relying on custom-built solutions and best-of-breed architectures to using standard software. The government IT industry is massive and dominated by large suppliers who benefit from consultancy fees and billable hours. This creates significant entry barriers as the classic vendors defend their business, and the growth plan therefore anticipates a long and slow transition to standard software.

The COTS for government seem to emerge faster than anticipated
Contrary to these assumptions, cBrain now sees indications that industry shifts toward standard software and platforms are occurring faster than anticipated. Fueled by a lack of skilled IT resources and a growing demand for fast delivery, cBrain sees a rapidly emerging IT industry, referred to as Commercial Off-The-Shelf (COTS) for government. For cBrain, this presents new strategic opportunities.

COTS for government, leveraging new technologies and platforms such as the F2 Digital Platform, enables digital transformation at higher speed and lower costs that outperform traditional IT modernization.

For example, cBrain delivered a complete end-to-end digital platform for two new Danish ministries within just three weeks during the autumn of 2024, and in 2025 cBrain has just announced a third new Danish ministry, following a similar fast-track implementation schedule. Traditionally, projects of this nature take years and often fail. The Danish ministerial cases thereby exemplify the power of the COTS for government approach.

cBrain has a first-mover advantage
The long-term cBrain growth strategy is founded on a vision and a business case to provide standard software for government. Over the past 15 years, cBrain has invested more than 450,000 hours in developing the F2 platform. Danish ministries and a total of more than 75 Danish authorities use F2 as their digital platform. Internationally cBrain has delivered F2 for government organizations across five continents.

With a solid first-mover advantage and a strong customer base, cBrain is well-positioned to become a leading international software provider of COTS for government solutions.

During the year 2024, the accelerated market shift and the power of the COTS for government approaches have opened new opportunities for cBrain. This is exemplified by the recent collaboration between cBrain and UNDP in Africa to support the UNDP Digital Offer for Africa strategy, and larger orders in Romania helping to modernize traditional mainframe-type solutions.

Reiterating the international growth strategy
The faster-than-expected market shift, with government looking toward IT modernization and digitization based on the alternative COTS for government approach, clearly represents an incredibly positive development for cBrain.

cBrain wants to fully take advantage of this, and a solid business with strong cash flow and earnings offer strategic flexibility. Consequently, cBrain is now reiterating and potentially adjusting its international growth strategy.

This includes evaluating organizational readiness, as well as market and product development strategies, to leverage and maximize the benefits of accelerated industry changes. With the goal of being an internationally leading vendor in the emerging COTS for government industry, cBrain will execute several changes to the growth plan during the spring of 2025.

Driving international expansion
With the current Danish customer base, cBrain has a strong home market position. Internationally this is an important reference position, and cBrain intends to maintain and develop a strong position on the Danish market.

However, to be a leader in the COTS for government industry and fully deploy the potential of the new emerging industry, cBrain will direct more resources into its international business.

cBrain has built its international business based on organic growth, building the business by addressing international customers directly or in collaboration with local partners. This strategy is maintained, but with an increased focus on working with international partners.

As of today, over one-third of the total revenue is export. cBrain is currently reiterating and potentially adjusting its international growth strategy with a goal, that within a few years, the international revenue will be significantly larger than the Danish revenue.

Lifting the business
During the past two years, cBrain has built a pipeline of potential customers, which are significantly larger than the average Danish customer. This includes projects in Germany and the US, as well as projects in the Emirates, India, Kenya, and Romania.

For cBrain to be a leader in the COTS for government industry, it is key to building an international business. Backed by a solid financial position, cBrain is therefore shifting a focus to international opportunities. This shift involves changes across the cBrain internal organization, from marketing and sales to delivery and R&D.

cBrain announced the growth plan in 2022 with an ambition to reach a revenue of 350 million in the year 2025. cBrain continues to execute its growth plan. However, reaching the revenue ambition requires winning and delivering some of the large international contracts cBrain is currently working on.

cBrain guides continued growth in revenue and solid earnings for 2025
With limited visibility, cBrain forecasts expected revenue growth in 2025 of 10-15% and earnings before tax (EBT) of 18-23%.

The earnings forecast is based on solid market development investments into international growth, across the African region, USA, Germany, and India, as well as investments into developing the F2-for-Partners concept.

Best regards

Per Tejs Knudsen, CEO

Inquiries regarding this Company Announcement may be directed to

Ejvind Jørgensen, CFO & Head of Investor Relations, cBrain A/S, ir@cbrain.com, +45 2594 4973

Attachments

The MIL Network –

February 20, 2025

MIL-OSI: BE Semiconductor Industries N.V. Announces Q4-24 and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Q4-24 Revenue of € 153.4 Million and Net Income of € 59.3 Million. Operating Results Within Prior Guidance

FY-24 Revenue of € 607.5 Million and Net Income of € 182.0 Million Up 4.9% and 2.8%, Respectively, vs. FY-23. Orders of € 586.7 Million Up 7.0% vs. FY-23

Proposed Dividend of € 2.18 per Share for Fiscal 2024. 95% Pay-Out Ratio

DUIVEN, the Netherlands, Feb. 20, 2025 (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 fourth quarter and year ended December 31, 2024.

Key Highlights Q4-24

Revenue of € 153.4 million down 2.0% vs. Q3-24 and 3.9% vs. Q4-23 primarily due to lower demand for automotive applications partially offset by increased hybrid bonding shipments
Orders of € 121.9 million down 19.7% vs. Q3-24 and 26.7% vs. Q4-23 due primarily to decreased bookings for high performance computing and mainstream assembly applications
Gross margin of 64.0% decreased by 0.7 points vs. Q3-24 and 1.1 points vs. Q4-23 primarily due to adverse net forex influences
Net income of € 59.3 million increased 26.7% vs. Q3-24 and 8.0% vs. Q4-23 due to € 18.2 million of net tax benefits realized. As a result, net margin rose to 38.6% vs. 29.9% in Q3-24 and 34.4% in Q4-23
Cash and deposits of € 672.3 million at year-end increased 62.6% versus year-end 2023. Net cash of € 143.8 million increased € 33.1 million (29.9%) vs. Q3-24 and € 30.8 million (27.3%) vs. Q4-23

Key Highlights FY 2024

Revenue of € 607.5 million increased 4.9% vs. 2023 principally due to higher demand by computing end-user markets, particularly for hybrid bonding and photonics applications, partially offset by weakness in mobile, automotive and Chinese end-user markets
Orders of € 586.7 million rose 7.0% due to strength in 2.5D and 3D AI-related applications
Gross margin of 65.2% rose by 0.3 points due to more favorable advanced packaging product mix
Net income of € 182.0 million grew 2.8% as higher revenue, gross margin and net tax benefits were partially offset by higher R&D spending and share-based compensation expense. Besi’s net margin decreased slightly to 30.0% vs. 30.6% in 2023
Proposed dividend of € 2.18 per share. Represents pay-out ratio of 95%

Q1-25 Outlook

Revenue expected to decrease 0-10% vs. the € 153.4 million reported in Q4-24
Gross margin expected to range between 63-65% vs. the 64.0% realized in Q4-24
Operating expenses expected to grow 10-20% vs. the € 47.6 million reported in Q4-24

(€ millions, except EPS)	Q4-2024	Q3-2024	Δ		Q4-2023	Δ		FY-2024	FY-2023	Δ
Revenue	153.4	156.6	-2.0	%	159.6	-3.9	%	607.5	578.9	+4.9	%
Orders	121.9	151.8	-19.7	%	166.4	-26.7	%	586.7	548.3	+7.0	%
Gross Margin	64.0%	64.7%	-0.7		65.1%	-1.1		65.2%	64.9%	+0.3
Operating Income	50.6	55.1	-8.2	%	66.1	-23.4	%	195.6	213.4	-8.3	%
EBITDA	58.0	62.4	-7.1	%	72.7	-20.2	%	224.2	239.1	-6.2	%
Net Income*	59.3	46.8	+26.7	%	54.9	+8.0	%	182.0	177.1	+2.8	%
Net Margin*	38.6%	29.9%	+8.7		34.4%	+4.2		30.0%	30.6%	-0.6
EPS (basic)	0.75	0.59	+27.1	%	0.71	+5.6	%	2.31	2.28	+1.3	%
EPS (diluted)	0.74	0.59	+25.4	%	0.68	+8.8	%	2.30	2.23	+3.1	%
Net Cash and Deposits	143.8	110.7	+29.9	%	113.0	+27.3	%	143.8	113.0	+27.3	%

* Includes net tax benefit of € 18.2 million in Q4-24 versus a tax charge of € 2.3 million in Q4-23.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:

“Besi’s business development in 2024 reflected contrasting growth trends for AI and mainstream assembly equipment markets. For the year, revenue grew by approximately 5% to reach € 607.5 million due to significantly higher demand by computing end-user markets, particularly for AI-related hybrid bonding and photonics applications. Similarly, orders of € 586.7 million increased by 7.0%. As a result, orders for AI applications grew to represent approximately 50% of our total orders in 2024. Strong order growth from computing end-user markets this year was partly offset by unfavorable market conditions for mainstream applications related to an industry downturn more than two years in duration.

“We continue to navigate an extended downturn at industry leading levels of profitability. Besi achieved gross, operating and net margins of 65.2%, 32.2% and 30.0%, respectively, in 2024. Gross margins increased slightly versus 2023 due to a more favorable advanced packaging product mix which were partially offset by unfavorable net forex effects, particularly in the second half of the year. Net income rose 2.8% versus 2023 primarily due to higher revenue and gross margins realized and a net tax benefit of € 18.2 million. Such favorable influences were partially offset by a significant increase in development spending and higher share-based compensation expense. Given profits earned in 2024 and our solid liquidity position, we will propose a cash dividend of € 2.18 per share for approval at Besi’s 2025 AGM which represents a pay-out ratio relative to net income of 95%.

“Investments in Besi’s future growth continued in 2024 as reflected in higher development spending and a planned expansion of our advanced packaging production capacity in 2025. We increased R&D spending by 31.7% this year to offer customers leading edge assembly solutions for next generation 2.5D and 3D architectures. In addition, progress continued on our hybrid bonding agenda as revenue approximately tripled versus 2023 and orders more than doubled. In addition, adoption increased from nine to fifteen customers. During Q4-24, some notable hybrid bonding bookings included a first order from a Japanese semiconductor producer focused on 2nm advanced logic semiconductors and from a Korean IDM for advanced logic applications.

“Besi’s fourth quarter results were adversely affected by ongoing weakness in mainstream assembly markets, seasonal influences and lower demand for hybrid bonding and photonics applications as customers digested capacity added in 2024. Revenue of € 153.4 million was down 2.0% vs. Q3-24 and 3.9% vs. Q4-23 primarily due to lower demand for automotive applications partially offset by increased hybrid bonding shipments. Orders of € 121.9 million decreased by 19.7% vs. Q3-24 and 26.7% vs. Q4-23 due to lower bookings for hybrid bonding, photonics and mainstream assembly applications. Hybrid bonding and photonics orders have fluctuated on a quarterly basis due to the timing by customers of new device introductions and related capacity additions for these emerging applications. Our operating income in Q4-24 decreased by 8.2% versus Q3-24 primarily due to lower revenue and a 0.7 point gross margin decrease from adverse forex movements. Q4-24 net income of € 59.3 million increased 26.7% vs. Q3-24 and 8.0% vs. Q4-23 due to net tax benefits realized from an upward revaluation of deferred tax assets.

“We enter the year 2025 with cautious optimism based on strong momentum in our advanced die placement solutions for AI applications partially offset by ongoing weakness in mainstream automotive, smart phone, industrial and Chinese end-user markets. We believe that the pace of innovation is increasing as the pandemic and generative AI have accelerated society’s move to a digital world with AI technology adoption increasing significantly in our daily lives. We believe that the commercial viability of hybrid bonding process technology has now been confirmed by some of the industry’s leading players and research institutes. Significant incremental adoption is anticipated to occur over the next three years as the technology is increasingly used in HBM 4/5 memory stacks, ASIC logic devices, silicon photonics, co-packaged optics and consumer mobile/computing applications. As such, we estimate that hybrid bonding adoption and deployment is still in its very early stages.

“The timing and trajectory of a new mainstream assembly upturn is difficult to predict at present. The assembly market still suffers from post-pandemic excess capacity which has taken more than two years to approach equilibrium levels. Semiconductor unit growth and capacity utilization rates have improved since 2022 but at a less rapid rate than previously anticipated by analysts. That being said, we believe it likely that a mainstream assembly recovery will begin in the second half of 2025. Its trajectory will depend on demand trends in each of our end markets and the ultimate course of global trade restrictions. For Q1-25, we forecast that revenue will decrease by 0-10% versus Q4-24 and for gross margins to remain in a range of 63-65% based on our projected product mix. Aggregate operating expenses are forecast to rise 10-20% versus Q4-24 primarily due to higher strategic consulting costs.”

Share Repurchase Activity

During the quarter, Besi repurchased approximately 0.2 million of its ordinary shares at an average price of € 112.84 per share or a total of € 22.4 million. For the year, Besi repurchased approximately 0.6 million shares at an average price of € 125.53 per share for a total of € 79.8 million. At year end, Besi held approximately 1.8 million shares in treasury equal to 2.3% 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 EST). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com.

Important Dates

Publication Annual Report 2024

Publication Q1 results

Annual General Meeting of Shareholders

Publication Q2/semi-annual results

Publication Q3/nine-month results

Publication Q4/full year results

February 28, 2025

April 23, 2025

July 24, 2025

October 23, 2025

February 2026

Dividend Information*

Proposed ex-dividend date

Proposed record date

Proposed payment of 2024 dividend

April 25, 2025

April 28, 2025

Starting May 2, 2025

* Subject to approval at Besi’s AGM on 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 2024 Annual Report, which will be available on www.besi.com as of February 28, 2025.

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 coordinator
Tel. (31) 26 319 4500
investor.relations@besi.com

About Besi
Besi is a leading manufacturer of assembly equipment supplying a broad portfolio of advanced packaging solutions to the semiconductor and electronics industries. We offer customers high levels of accuracy, reliability and throughput at a lower cost of ownership with a principal focus on wafer level and substrate assembly solutions. Customers are primarily leading semiconductor manufacturers, foundries, 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.

Statement of Compliance
The accounting policies applied in the condensed consolidated financial statements included in this press release are the same as those applied in the Annual Report 2024 and were authorized for issuance by the Board of Management and Supervisory Board on February 19, 2025. In accordance with Article 393, Title 9, Book 2 of the Netherlands Civil Code, EY Accountants BV has issued an unqualified auditor’s opinion on the Annual Report 2024. The Annual Report 2024 will be published on our website on February 28, 2025 and proposed for adoption by the Annual General Meeting on April 23, 2025. The condensed financial statements included in this press release have been prepared in accordance with IFRS Accounting Standards, as adopted by the European Union but do not include all of the information required for a complete set of IFRS financial statements.

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, 2024 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 December 31, (unaudited)			Year Ended December 31, (audited)
	2024		2023	2024	2023

Revenue	153,413		159,635	607,473	578,862
Cost of sales	55,253		55,700	211,529	203,074

Gross profit	98,160		103,935	395,944	375,788

Selling, general and administrative expenses	28,575		24,277	126,048	105,956
Research and development expenses	19,009		13,533	74,305	56,440

Total operating expenses	47,584		37,810	200,353	162,396

Operating income	50,576		66,125	195,591	213,392

Financial expense, net	3,877		729	7,071	5,703

Income before taxes	46,699		65,396	188,520	207,689

Income tax expense (benefit)	(12,595	)	10,501	6,528	30,605

Net income	59,294		54,895	181,992	177,084

Net income per share – basic	0.75		0.71	2.31	2.28
Net income per share – diluted	0.74		0.68	2.30	2.23

Number of shares used in computing per share amounts: – basic – diluted ¹	79,402,192 81,628,947		77,070,082 82,091,299	78,877,471 81,889,907	77,508,722 82,800,279
¹⁾ The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding

Consolidated Balance Sheets
(€ thousands)	December 31, 2024 (audited)	September 30, 2024 (unaudited)	June 30, 2024 (unaudited)	March 31, 2024 (unaudited)	December 31, 2023 (audited)
ASSETS

Cash and cash equivalents	342,319	307,448	127,234	232,053	188,477
Deposits	330,000	330,000	130,000	215,000	225,000
Trade receivables	181,862	169,266	174,601	150,192	143,218
Inventories	103,285	104,103	99,291	99,384	92,505
Other current assets	40,927	44,731	36,346	34,756	39,092

Total current assets	998,393	955,548	567,472	731,385	688,292

Property, plant and equipment	44,773	44,220	43,571	41,328	37,516
Right of use assets	15,726	16,419	16,821	16,901	18,242
Goodwill	46,010	45,278	45,710	45,613	45,402
Other intangible assets	96,677	94,855	92,627	90,241	93,668
Deferred tax assets	31,567	8,610	9,517	11,444	12,217
Other non-current assets	1,330	1,316	1,239	1,252	1,216

Total non-current assets	236,083	210,698	209,485	206,779	208,261

Total assets	1,234,476	1,166,246	776,957	938,164	896,553



Bank overdraft	776	–	–	–	–
Current portion of long-term debt	2,042	2,241	3,033	984	3,144
Trade payables	52,630	49,211	51,620	52,382	46,889
Other current liabilities	111,531	87,739	73,023	100,606	87,200

Total current liabilities	166,979	139,191	127,676	153,972	137,233

Long-term debt	525,653	524,527	179,801	265,142	297,353
Lease liabilities	12,350	13,033	13,448	13,625	14,924
Deferred tax liabilities	10,320	11,619	10,396	12,136	12,959
Other non-current liabilities	17,910	12,449	11,352	12,914	12,671

Total non-current liabilities	566,233	561,628	214,997	303,817	337,907

Total equity	501,264	465,427	434,284	480,375	421,413

Total liabilities and equity	1,234,476	1,166,246	776,957	938,164	896,553

Consolidated Cash Flow Statements
(€ thousands)	Three Months Ended December 31, (unaudited)				Year Ended December 31, (audited)
	2024		2023		2024		2023

Cash flows from operating activities:
Income before income tax	46,699		65,396		188,520		207,689

Depreciation and amortization	7,420		6,577		28,601		25,732
Share based payment expense	2,851		2,807		30,067		19,107
Financial expense, net	3,877		729		7,071		5,703

Changes in working capital	4,819		(24,238	)	(39,095	)	(26,819	)
Interest (paid) received	1,965		1,647		9,183		4,722
Income tax (paid) received	(3,751	)	386		(23,264	)	(27,562	)

Net cash provided by operating activities	63,880		53,304		201,083		208,572

Cash flows from investing activities:
Capital expenditures	(1,074	)	(1,451	)	(12,039	)	(6,899	)
Capitalized development expenses	(5,447	)	(5,780	)	(19,437	)	(21,121	)
Repayments of (investments in) deposits	–		(39,659	)	(105,000	)	(44,927	)

Net cash provided by (used in) investing activities	(6,521	)	(46,890	)	(136,476	)	(72,947	)

Cash flows from financing activities:
Proceeds from bank lines of credit	776		–		776		–
Proceeds from notes	–		–		350,000		–
Transaction costs related to notes	(29	)	–		(6,424	)	–
Payments of lease liabilities	(1,128	)	(1,100	)	(4,314	)	(4,307	)
Purchase of treasury shares	(22,415	)	(23,123	)	(79,833	)	(213,387	)
Dividends paid to shareholders	–		–		(171,534	)	(222,109	)

Net cash used in financing activities	(22,796	)	(24,223	)	88,671		(439,803	)

Net increase (decrease) in cash and cash equivalents	34,563		(17,809	)	153,278		(304,178	)
Effect of changes in exchange rates on cash and cash equivalents	308		1,261		564		969
Cash and cash equivalents at beginning of the period	307,448		205,025		188,477		491,686

Cash and cash equivalents at end of the period	342,319		188,477		342,319		188,477

Supplemental Information (unaudited) (€ millions, unless stated otherwise)

REVENUE	Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023				Q1-2023

Per geography:
China	42.8		28	%	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)	53.5		35	%	51.6		33	%	54.1		36	%	43.6		30	%	57.9		36	%	42.3		34	%	59.2		36	%	58.2		44	%
EU / USA / Other	57.1		37	%	59.5		38	%	39.6		26	%	44.2		30	%	39.7		25	%	40.2		33	%	38.4		24	%	37.6		28	%

Total	153.4		100	%	156.6		100	%	151.2		100	%	146.3		100	%	159.6		100	%	123.3		100	%	162.5		100	%	133.4		100	%

ORDERS	Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023				Q1-2023

Per geography:
China	40.4		33	%	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)	38.8		32	%	69.3		46	%	72.0		39	%	45.0		35	%	36.6		22	%	40.9		32	%	33.2		29	%	71.3		50	%
EU / USA / Other	42.7		35	%	37.1		24	%	69.9		38	%	31.6		25	%	58.7		35	%	40.4		32	%	28.0		25	%	35.2		25	%

Total	121.9		100	%	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	61.2		50	%	84.5		56	%	122.4		66	%	53.5		42	%	82.7		50	%	70.5		55	%	60.5		54	%	74.0		52	%
Foundries/Subcontractors*	60.7		50	%	67.3		44	%	62.8		34	%	74.2		58	%	83.7		50	%	56.8		45	%	52.1		46	%	68.0		48	%

Total	121.9		100	%	151.8		100	%	185.2		100	%	127.7		100	%	166.4		100	%	127.3		100	%	112.6		100	%	142.0		100	%
* Includes foundries as of financial year 2024

HEADCOUNT	Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Jun 30, 2023				Mar 31, 2023

Fixed staff (FTE)	1,812		93	%	1,807		87	%	1,783		86	%	1,760		88	%	1,736		93	%	1,725		87	%	1,689		86	%	1,682		84	%
Temporary staff (FTE)	134		7	%	271		13	%	279		14	%	236		12	%	134		7	%	248		13	%	279		14	%	312		16	%

Total	1,946		100	%	2,078		100	%	2,062		100	%	1,996		100	%	1,870		100	%	1,973		100	%	1,968		100	%	1,994		100	%

OTHER FINANCIAL DATA	Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023				Q1-2023

Gross profit	98.2		64.0	%	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	28.6		18.6	%	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	-2.9		-1.8	%	(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	25.7		16.8	%	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	19.0		12.4	%	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	5.4		3.5	%	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	%	(3.9	)	-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	20.5		13.4	%	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	-5.1				(5.2	)			(3.0	)			(4.0	)			(3.6	)			(2.9	)			(3.1	)			(2.6	)
Interest expense	6.1				5.7				2.1				2.8				3.0				2.8				2.9				2.9
Net cost of hedging	2.0				1.9				1.4				1.6				1.7				1.7				2.0				1.6
Foreign exchange effects, net	0.9				(0.8	)			0.5				0.2				(0.4	)			0.2				(0.1	)			(0.4	)

Total	3.9				1.6				1.0				0.6				0.7				1.8				1.7				1.5

Gross cash	672.3				637.4				257.2				447.1				413.5				391.2				378.3				644.9


Operating income (as % of net sales)	50.6		33.0	%	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)	58.0		37.8	%	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)	59.3		38.6	%	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	-27.0	%			12.6	%			13.0	%			15.3	%			16.1	%			14.4	%			14.0	%			14.0	%


Income per share
Basic	0.75				0.59				0.53				0.44				0.71				0.45				0.68				0.44
Diluted	0.74				0.59				0.53				0.44				0.68				0.45				0.66				0.44

Average shares outstanding (basic)	79,402,192				79,630,787				79,281,533				77,181,326				77,070,082				77,374,933				77,634,197				77,946,873

Shares repurchased
Amount	22.4				27.8				14.8				14.8				23.1				45.5				66.9				77.7
Number of shares	198,450				230,807				105,042				101,049				226,572				447,829				761,937				1,120,327

The MIL Network –

February 20, 2025

MIL-OSI: Municipality Finance issues RON 108 million notes under its MTN programme

Source: GlobeNewswire (MIL-OSI)

Municipality Finance Plc
Stock exchange release
20 February 2025 at 10:00 am (EET)

Municipality Finance issues RON 108 million notes under its MTN programme

Municipality Finance Plc issues RON 108 million notes on 21 February 2025. The maturity date of the notes is 21 February 2028. The notes bear interest at a fixed rate of 6.36% per annum.
The notes are issued under MuniFin’s EUR 50 billion programme for the issuance of debt instruments. The offering circular, the supplemental offering circular and the final terms of the notes are available in English on the company’s website at https://www.kuntarahoitus.fi/en/for-investors.

MuniFin has applied for the notes to be admitted to trading on the Helsinki Stock Exchange maintained by Nasdaq Helsinki. The public trading is expected to commence on 21 February 2025.

Société Générale acts as the dealer for the issue of the notes.

MUNICIPALITY FINANCE PLC

Further information:

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability
tel. +358 50 444 3638

MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the State of Finland. The Group’s balance sheet is over EUR 53 billion.

MuniFin’s customers include municipalities, joint municipal authorities, wellbeing services counties, joint county authorities, corporate entities under the control of the above-mentioned organisations, and affordable social housing. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.

MuniFin’s customers are domestic, but the company operates in a completely global business environment. The company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.

Read more: https://www.kuntarahoitus.fi/en/

Important Information

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into any such country or jurisdiction or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities or other financial instruments in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

This communication does not constitute an offer of securities for sale in the United States. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

The MIL Network –

February 20, 2025
MIL-OSI: Municipality Finance issues SEK 1 billion notes under its MTN programme

Source: GlobeNewswire (MIL-OSI)

Municipality Finance Plc
Stock exchange release
20 February 2025 at 10.00 am (EET)

Municipality Finance issues SEK 1 billion notes under its MTN programme

Municipality Finance Plc issues SEK 1 billion notes on 21 February 2025. The maturity date of the notes is 21 February 2028. The notes bear interest at a floating rate equal to 3-month Stibor plus 150 bps per annum.

The notes are issued under MuniFin’s EUR 50 billion programme for the issuance of debt instruments. The offering circular, the supplemental offering circular and the final terms of the notes are available in English on the company’s website at https://www.kuntarahoitus.fi/en/for-investors.

MuniFin has applied for the notes to be admitted to trading on the Helsinki Stock Exchange maintained by Nasdaq Helsinki. The public trading is expected to commence on 21 February 2025.

Danske Bank A/S act as the Dealer for the issue of the notes.

MUNICIPALITY FINANCE PLC

Further information:

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability
tel. +358 50 444 3638

MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the State of Finland. The Group’s balance sheet is over EUR 53 billion.

MuniFin’s customers include municipalities, joint municipal authorities, wellbeing services counties, joint county authorities, corporate entities under the control of the above-mentioned organisations, and affordable social housing. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.

MuniFin’s customers are domestic, but the company operates in a completely global business environment. The company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.

Read more: www.munifin.fi

Important Information

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into any such country or jurisdiction or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities or other financial instruments in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

This communication does not constitute an offer of securities for sale in the United States. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

The MIL Network –

February 20, 2025
MIL-OSI: Ganda Business Solutions and Danforth Advisors Align to Streamline Growth and Market Access for Biotechs Operating in Switzerland and the United States

Source: GlobeNewswire (MIL-OSI)

BASEL, Switzerland and WALTHAM, Mass., Feb. 20, 2025 (GLOBE NEWSWIRE) — Ganda Business Solutions Ltd. and Danforth Advisors LLC today announced an exclusive partnership to support the business and clinical operations of Swiss biotech companies. Working jointly with localized expertise, the firms will provide integrated services to help Swiss companies scale with efficiency, expand to the US, and leverage flexible support in the areas of finance and accounting, human resources, investor relations, clinical operations, and regulatory strategy.

The combined team encompasses more than 400 consultants specializing in life science business operations, asset development support, and commercial readiness. The firms’ breadth of experience spans 500+ active clients and more than 60 IPO and reverse merger transactions.

“Our shared philosophy towards efficient capital allocation is reflected through our focus on providing variable and fractional support. We know that risk and uncertainty are inherent in biotech and organizational agility allows companies to remain flexible. This allows management to focus on the development activities knowing that strategic advice is on hand to help navigate the road ahead. For a majority of Swiss biotech companies, this road leads to the US, and by aligning with Danforth we can deliver both strategic guidance and well-managed operational execution,” said Christoph Rentsch, Managing Partner of Ganda Business Solutions.

The partnership also combines both teams’ deep relationships with investors, bankers, attorneys, CROs, and other pillars of the Swiss and US ecosystems, enabling them to seamlessly support clients as they scale their operations, advance clinical programs, and launch new products.

“Establishing a US nexus is often integral to Swiss biotechs’ strategy – whether through access to patients and payers via FDA approvals, financing from private and public investors, recruiting cohorts for clinical trials, or leveraging specialist capabilities from world leading physicians and experienced management teams. Our collaboration with Ganda gives Swiss clients assurance that they can navigate the US landscape with our well-developed strategies to de-risk execution as their operations advance,” said Michael Cunniffe, Managing Director of Danforth’s UK and European operations.

Having supported hundreds of biotech companies over two decades, Danforth and Ganda bring unmatched experience drawn from hands-on operational management and strategic advisory at executive and board levels.

“For a sustainable biotech growth story, the right talent and team composition play a key role, and must be aligned with the company’s vision and development goals. This talent is highly sought after and not always readily available,” said Catherine Ammann, Managing Partner of Ganda Business Solutions. “Through our partnership with Danforth, we can provide access to valuable skill sets where full time roles might be cost-prohibitive or difficult to fill.”

About Ganda Solutions
Ganda is a Professional Service Provider covering all General and Administration (G&A) tasks in the life science field. Ganda’s team of professionals has extensive industry experience at various leadership levels both in strategic and operational matters – within small and large organizations. Ganda operates from its Basel base and offers full support in English, German and French. Additional information is available at www.ganda-solutions.com.

About Danforth Advisors
Danforth is the life science industry’s trusted partner for strategic and operational support across business, clinical, and commercial functions. The company advises and executes in the areas of finance and accounting, strategic communications, human resources, risk management, clinical and regulatory, market research, and commercial readiness and launch. Founded in 2011, Danforth has partnered with more than 1,500 life science companies, private and public, across all stages of the corporate lifecycle. The company serves clients around the globe from its base in Waltham, Massachusetts and regional operations in New York, Pennsylvania, New Jersey, Maryland, California, and London. Additional information is available at www.danforthadvisors.com.

The MIL Network –

February 20, 2025
MIL-OSI: Nokia’s Corteca Cloud for device and Wi-Fi management adds hundreds of legacy broadband devices #MWC25
Source: GlobeNewswire (MIL-OSI)

Press Release
Nokia’s Corteca Cloud for device and Wi-Fi management adds hundreds of legacy broadband devices #MWC25
- Nokia Corteca Cloud now supports over 400 legacy broadband devices from over 30 manufacturers, providing CSPs with a single pane of glass that simplifies in-home Wi-Fi and device management.
- Both the traditional TR-069 and the new TR-369 industry standard protocols are supported by the Nokia Corteca Cloud, providing a smooth transition path for CSPs.
- For the past 20 years, TR-069 has been the industry standard for managing, provisioning, and troubleshooting over 1 billion broadband devices.
20 February 2025
Espoo, Finland – Nokia today announced that it is adding support for 415 legacy TR-069-based broadband devices to its Corteca Cloud. Supporting both the legacy TR-069 and new TR-369 protocols, Nokia’s Corteca Cloud provides CSPs with a single pane of glass for legacy and new broadband devices, simplifying in-home Wi-Fi connectivity and device management.

For the past 20 years, the TR-069 protocol has been used to manage approximately 1 billion broadband devices worldwide, enabling CSPs to remotely provision and maintain customer-premises equipment (CPE). The new TR-369 protocol introduces significant new capabilities for new devices, but transitioning away from TR-069 will take years. By supporting both protocols, Nokia’s Corteca Cloud allows CSPs to manage devices efficiently today while adapting for the future.

Key benefits of Nokia’s Corteca Cloud for CSPs:
- Smooth transition from TR-069 to TR-369 – A single pane of glass supports both TR-069 and TR-369, allowing CSPs to transition at their own pace.
- Scalability & efficiency – Simplifies management of multiple customer devices, including third-party hardware, and reduces operational complexity.
- Remote operations – Enables CSPs to configure, troubleshoot, and upgrade devices remotely, minimizing the need for on-site visits.
- Reduced support costs – Automates Wi-Fi monitoring to proactively resolve issues, lowering customer support calls.
Justin Doucette, Head of WiFi and Software, Fixed Networks at Nokia, said: “Service providers need a practical path to the future, not a forced transition. By supporting both TR-069 and TR-369, Nokia Corteca Cloud gives operators the flexibility to manage today’s networks while preparing for what’s next— without disruption. Our solution provides a smooth evolution path and a single pane of glass for seamless visibility and control.”

Resources and additional information
Product page: Nokia Corteca Home Controller

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

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs, which is celebrating 100 years of innovation.

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

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

Follow us on social media
LinkedIn X Instagram Facebook YouTube

The MIL Network –
February 20, 2025
MIL-OSI: Cactus Custody Achieves SOC 1 Type 1 Certification with Deloitte’s Audit, Strengthening Trust in Digital Asset Custody

Source: GlobeNewswire (MIL-OSI)

SINGAPORE, Feb. 20, 2025 (GLOBE NEWSWIRE) — Cactus Custody, a leading institutional digital asset custody provider, has earned SOC 1 Type 1 certification through an independent audit by Deloitte. This certification highlights Cactus Custody’s commitment to high operational control standards and secure, compliant custody solutions.

Deloitte thoroughly assessed Cactus Custody, reviewing client account onboarding, fiat and crypto transactions, and internal system operations. The audit also validated its financial processing capabilities, including settlement, reconciliation, account management, fee processing, asset valuation, reporting, and securing cryptographic keys throughout their lifecycle across various custody storage methods.

Wendy Jiang, General Manager of Cactus Custody, stated: “Achieving SOC 1 Type 1 certification underscores our commitment to robust governance, precise financial management, and secure custody. We prioritize the security of our clients’ assets and maintain strict internal controls to deliver top-tier service. Moving forward, we will promote compliance and transparency, striving to set higher benchmarks in the evolving crypto asset space to enhance trust and satisfaction among our clients.”

Cactus Custody previously achieved SOC 2 Type 1 certification with Deloitte and is progressing toward SOC 1 Type 2 reporting this year. Through regular audits, the company continues to enhance custody standards, drive industry compliance, and provide transparent, secure custodial services.

About Cactus Custody

A trusted institutional digital asset custodian, Cactus Custody is ISO-certified, holds a Hong Kong license (TC006789), and has received a temporary exemption from the Monetary Authority of Singapore (MAS). It adheres to strict capital reserve requirements and AML and CTF regulations. Committed to “Security First, Integrity Always,” Cactus Custody simplifies crypto asset management professionally and confidently.

Visit the official Cactus Custody website for more details.

Media Contact: press@mycactus.com

Cactus Custody PR Team

Disclaimer: This content is provided by Cactus Custody. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities .Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/31c3118b-8922-4820-ba03-d9578673f3ad

The MIL Network –

February 20, 2025
MIL-OSI: cBrain intends to take lead in COTS for government industry
Source: GlobeNewswire (MIL-OSI)

Company Announcement no. 02/2025

cBrain intends to take lead in COTS for government industry

Copenhagen, February 20, 2025

cBrain (NASDAQ: CBRAIN) revenue grew by +12% to DKK 268m in 2024, up from DKK 239m in 2023. Earnings before tax (EBT) grew to DKK 86m in 2024, up from DKK 81m in 2023, thereby reaching an EBT margin of 32%.

Results are in line with expectations, forecasting a revenue growth range of 12-13% and EBT margin of 30-32%.

Strong positive cash flow from operating activities enables an increase in dividends, investments in the growth of the company, and it reduces long-term loans on cBrain-owned buildings.

cBrain does not have a share buyback program. However, due to solid earnings, cBrain proposes to raise dividends to DKK 0,64 per share (2023: DKK 0,28 per share) corresponding to a payout ratio of approx. 20% of profit for the year.

Fueled by a lack of skilled IT resources and a growing demand for fast delivery, cBrain sees a rapidly emerging IT industry, referred to as Commercial Off-The-Shelf (COTS) for government. COTS for government, leveraging new technologies and platforms such as the F2 Digital Platform, enables digital transformation at higher speed and lower costs that outperform traditional IT modernization.

For cBrain the accelerated market shift represents new strategic opportunities. cBrain wants to fully take advantage of this, and cBrain is therefore currently in the process of evaluating and potentially adjusting its international growth strategy.

With the goal of being an internationally leading vendor in the emerging COTS for government industry, the strategy process includes evaluating organizational readiness, market and product development strategies.

As a result of the strategy process, cBrain expects to implement a number of changes to the growth plan during the spring of 2025. Consequently, cBrain forecasts expected revenue growth in 2025 of 10-15% and earnings before tax (EBT) of 18-23%.

The revenue forecast takes into account that e.g. developing new channel strategies may shortly delay revenue. The earnings forecast is based on significantly increased investments into international growth, across the African region, USA, Germany, and India, as well as increased investments into developing the F2-for-Partners concept.

Best regards

Per Tejs Knudsen, CEO

Inquiries regarding this Company Announcement may be directed to

Ejvind Jørgensen, CFO & Head of Investor Relations, cBrain A/S, ir@cbrain.com, +45 2594 4973

Attachment
- Company Announcement no. 2025-02 (Årsregnskab – Guidance, dividende, justering af plan)
The MIL Network –
February 20, 2025
MIL-OSI: IDEX Biometrics receives IDEX Pay order for VISA biometric cards in MEA

Source: GlobeNewswire (MIL-OSI)

Oslo, Norway – 20 February 2025 – A leading smart card technology, security and ID company based in MEA (Middle-East & Africa) has placed a production order of 10,000 units with IDEX Biometrics. The order supports Visa biometric bank card programs in one of the fastest growing payment markets in the region, and marks the first Visa program in market on the IDEX Pay biometric technology solution. The IDEX Biometrics partner serves over 500 banks, governments, and corporations worldwide.

‘The innovation pace of our card manufacturing partners in bringing biometric smart cards to market is accelerating; certifications allow them to move to industrialized production and commercialization. Ultimately bringing more secure payments, access and identity control to more consumers around the world’, comments Catharina Eklof, Chief Executive Office at IDEX Biometrics.

For further information contact:
Marianne Bøe, Head of Investor Relations, +47 91800186
Kristian Flaten, CFO, +47 95092322
E-mail:ir@idexbiometrics.com

About IDEX Biometrics
IDEX Biometrics ASA (OSE: IDEX) is a global technology leader in fingerprint biometrics, offering authentication solutions across payments, access control, and digital identity. The company’s solutions provide convenience, security, peace of mind, and seamless user experiences worldwide. Built on patented and proprietary sensor technologies, integrated circuit designs, and software, IDEX Biometrics’ biometric solutions target card-based applications for payments and digital authentication. As an industry enabler, the company partners with leading card manufacturers and technology companies to bring its solutions to market.

For more information, please visit www.idexbiometrics.com.

Trademark Statement
IDEX, IDEX Biometrics and the IDEX logo are trademarks owned by IDEX Biometrics ASA. All other brands or product names are the property of their respective holders.

About this notice:
This notice was issued by Marianne Bøe, Head of Investor Relations, on 20 February 2025 at 08:30 CET on behalf of IDEX Biometrics ASA.

The MIL Network –

February 20, 2025
MIL-OSI: Equinor ASA: Announcement of cash dividend per share in NOK for third quarter 2024

Source: GlobeNewswire (MIL-OSI)

Equinor ASA (OSE: EQNR, NYSE: EQNR) announced on 24 October 2024 an ordinary cash dividend per share of USD 0.35 and an extraordinary cash dividend per share of USD 0.35 for third quarter 2024.

The NOK cash dividend per share is based on average USDNOK fixing rate from Norges Bank in the period plus/minus three business days from record date 14 February 2025, in total seven business days.

Average Norges Bank fixing rate for this period was 11.1820. Total cash dividend for third quarter 2024 of USD 0.70 per share is consequently NOK 7.8274 per share.

On 28 February 2025, the cash dividend will be paid to relevant shareholders on Oslo Børs (Oslo Stock Exchange) and to holders of American Depositary Receipts (“ADRs”) on New York Stock Exchange.

This information is published in accordance with the requirements of the Continuing Obligations and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

The MIL Network –

February 20, 2025
MIL-OSI: ING to redeem Perpetual Capital Securities
Source: GlobeNewswire (MIL-OSI)

ING to redeem Perpetual Capital Securities

ING announced today it will redeem USD 1,250 million of 6.500% Perpetual Additional Tier 1 Contingent Convertible Capital Securities (the “Perpetual Capital Securities”) on the call date of 16 April 2025, in line with ING’s goal to continuously optimise its capital structure.

The Perpetual Capital Securities (CUSIP 456837AF0/ISIN US456837AF06) will be redeemed in full in accordance with their terms, with payment to be made on 16 April 2025. The redemption price will be the principal amount of the Perpetual Capital Securities. Accrued and unpaid interest due on the redemption date will be paid in the usual manner to holders of record as of 15 April 2025. The paying agent for the Perpetual Capital Securities is The Bank of New York Mellon, London Branch 160 Queen Victoria Street London EC4V 4LA United Kingdom.

Any future decisions by ING as to whether it will exercise (or cause to be exercised) calls in respect of debt securities will be made on an economic basis, taking into account the interests of all stakeholders. Other factors that ING will consider include prevailing market conditions, regulatory approval and capital requirements.

Note for editors

For more on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via X @ING_news feed. Photos of ING operations, buildings and its executives are available for download at Flickr.

ING PROFILE
ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 40 countries.

ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of December 2023, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. Our current ESG Risk Rating, is 17.2 (Low Risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell. Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. Follow our progress on ing.com/climate.

Important legal information

Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/2014 (‘Market Abuse Regulation’).

ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are applied as in the 2023 ING Group consolidated annual accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to diﬀer materially from those expressed or implied in such statements. Actual results, performance or events may diﬀer materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures (2) changes affecting interest rate levels (3) any default of a major market participant and related market disruption (4) changes in performance of financial markets, including in Europe and developing markets (5) fiscal uncertainty in Europe and the United States (6) discontinuation of or changes in ‘benchmark’ indices (7) inflation and deflation in our principal markets (8) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (9) failures of banks falling under the scope of state compensation schemes (10) non-compliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the interpretation and application thereof (11) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the invasion of Russia into Ukraine and the related international response measures (12) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks (13) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the group) (14) ING’s ability to meet minimum capital and other prudential regulatory requirements (15) changes in regulation of US commodities and derivatives businesses of ING and its customers (16) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (17) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct issues (18) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (19) operational and IT risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business and including any risks as a result of incomplete, inaccurate, or otherwise flawed outputs from the algorithms and data sets utilized in artificial intelligence (20) risks and challenges related to cybercrime including the eﬀects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy, including such risks and challenges as a consequence of the use of emerging technologies, such as advanced forms of artificial intelligence and quantum computing (21) changes in general competitive factors, including ability to increase or maintain market share (22) inability to protect our intellectual property and infringement claims by third parties (23) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (24) changes in credit ratings (25) business, operational, regulatory, reputation, transition and other risks and challenges in connection with climate change and ESG-related matters, including data gathering and reporting (26) inability to attract and retain key personnel (27) future liabilities under defined benefit retirement plans (28) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines (29) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (30) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com.

This document may contain ESG-related material that has been prepared by ING on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. ING has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information.

Materiality, as used in the context of ESG, is distinct from, and should not be confused with, such term as defined in the Market Abuse Regulation or as defined for Securities and Exchange Commission (‘SEC’) reporting purposes. Any issues identified as material for purposes of ESG in this document are therefore not necessarily material as defined in the Market Abuse Regulation or for SEC reporting purposes. In addition, there is currently no single, globally recognized set of accepted definitions in assessing whether activities are “green” or “sustainable.” Without limiting any of the statements contained herein, we make no representation or warranty as to whether any of our securities constitutes a green or sustainable security or conforms to present or future investor expectations or objectives for green or sustainable investing. For information on characteristics of a security, use of proceeds, a description of applicable project(s) and/or any other relevant information, please reference the offering documents for such security.

This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this document. ING does not make any representation or warranty with respect to the accuracy or completeness of, or take any responsibility for, any information found at any websites operated by third parties. ING specifically disclaims any liability with respect to any information found at websites operated by third parties. ING cannot guarantee that websites operated by third parties remain available following the publication of this document, or that any information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control.

Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

This document does not constitute an oﬀer to sell, or a solicitation of an oﬀer to purchase, any securities in the United States or any other jurisdiction.

Attachment
- ING to redeem Perpetual Capital Securities
The MIL Network –
February 20, 2025
MIL-OSI: Viridien and Matnex partner to accelerate AI-powered materials discovery
Source: GlobeNewswire (MIL-OSI)

Paris, France – February 20, 2025

Viridien, an advanced technology and digital company, and Materials Nexus Ltd. (trading as Matnex), a leader in AI-driven materials discovery, are partnering to rapidly scale Matnex’s computational capacity for the discovery and production of groundbreaking materials.

The partnership between Viridien and Matnex reflects a shared goal to accelerate innovation and reduce the environmental impact of technologies critical to the net-zero transition in areas such as energy generation, energy storage, transport and sustainable computing.

This expansion of computational resources, powered by Viridien’s Outcome-as-a-Service model, represents a paradigm shift in materials discovery. By leveraging AI/HPC and optimization expertise, Viridien will industrialize Matnex’s innovation pipeline. This partnership is set to deliver the highest throughput of new material discoveries globally, unlocking unprecedented commercial opportunities and industry-wide transformation.

Dr. Jonathan Bean, CEO of Matnex, said: “This project marks a major leap forward in materials science. By harnessing AI at this scale, we can tackle complex challenges that have previously been beyond reach. This partnership with Viridien provides us with computational power that is not only unrivalled but transformative for the field of materials discovery.”

Chris Page, EVP, New Business Development, Viridien, said: “This agreement is another exciting example of how Viridien’s HPC & Cloud Solutions teams are collaborating with high HPC baseload scientific companies to achieve faster, more accurate results with lower and more predictable R&D and operating costs enabling them to accelerate scientific discoveries and push innovative products to the market more quickly and economically. We are particularly delighted to be supporting Matnex’s research into next-generation materials for the HPC industry. This fits well with our corporate commitment to help catalyze technology innovations for a more sustainable future for society.”

About Viridien:

Viridien (www.viridiengroup.com) is an advanced technology, digital and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With our ingenuity, drive and deep curiosity we discover new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resource, digital, energy transition and infrastructure challenges. Viridien employs around 3,500 people worldwide and is listed as VIRI on the Euronext Paris SA (ISIN: FR001400PVN6).

Contacts

Attachment
- PR Viridien Matnex HPC agreement
The MIL Network –
February 20, 2025

MIL-OSI: CLIQ Reports Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Tougher market conditions: €243m sales (-26%) and €21m EBITDA (-58%)
Transformation programme: €11m special items on EBITDA level
-€4.75 EPS resulting from -€28m net loss (-188%)
€12m net cash position per year-end vs. €16m at end of 2023
Share buyback programme successfully completed and €0.04 dividend per share proposed
2025 outlook: €180-220m sales, €10-15m EBITDA, €50-75m customer acquisition costs

DÜSSELDORF, 20 February 2025 – The CLIQ Group publishes today its audited 2024 financial statements. The Annual Report 2024 is available on the Group’s website at https://cliqdigital.com/investors/financialreporting.

Performance

in millions of €	FY 2024	FY 2023	Δ	4Q 2024	4Q 2023	Δ
North America	168	197	-15%	34	54	-37%
Europe	52	109	-52%	9	25	-64%
Latin America	14	13	10%	4	3	11%
ROW	9	8	20%	1	5	-29%
Sales	243	326	-26%	48	84	-43%
Expected average LTV¹ (in €)	77	85	-10%	70	87	-19%
Total CAC²	-75	-135	-45%	-11	-35	-68%
EBITDA (before special items³)	21	50	-58%	5	12	-59%
EBITDA margin³	9%	15%		10%	14%
Profit/loss for the period	-28	32	-187%	-29	7	n/a
EPS (basic, in €)	-4.75	4.90	n/a	-4.99	1.07	n/a

Sales: In 2024, Group sales declined by 26% year-on-year to €243 million (2023: €326 million) mainly due to less customers. 97% of Group sales in 2024 were generated with bundled-content services and in line with the Management decision to focus on profitability, revenue in North America declined by 15% and in Europe by 52% in 2024. In Latin America and in the region Rest of the World, sales increased by 10% and 20%. However, the quarter-on-quarter Group sales decrease decelerated notably from -21% in 3Q 2024 to -11% in the fourth quarter.
Total customer acquisition costs: The total customer acquisition costs in 2024 amounted to €75 million (2023: €135 million). The 45% lower total customer acquisition costs reflected the Group’s decision to strategically increase its focus on profitability and the subsequent lowering of the target cost per acquisition (CPA).
EBITDA: In 2024, EBITDA before special items decreased by 58% to €21 million (2023: €50 million) and the corresponding EBITDA margin was accordingly lower at 9% (2023: 15%) predominantly as a result of the lower sales development and despite reduced cost of sales and operating expenses. Reported EBITDA amounted to €10 million and included therein were €11 million special items relating mostly to the Group’s transformation programme “Fit For Future”. The reported EBITDA margin was 4%.
Loss for the period: In 2024, the result for the year amounted to a loss of €28 million (2023: €32 million profit). Resulting from the annual impairment test performed on the goodwill, CLIQ corrected its goodwill and recognised an impairment loss of €27 million. This goodwill impairment was primarily attributable to the challenging market conditions going forward as well as to the significant decline in 2024 in the Group’s market value as determined by the stock market capitalisation.
Earnings per share: In 2024, the loss per share (basic EPS) was -€4.75 (2023: €4.90) and the diluted loss (EPS) totalled -€4.71 (2023: €4.82).
Cash flow: In 2024, the operating free cash flow decreased to €3.4 million (2023: €19 million). The cash inflow from operating activities during 2024 amounted to €9 million (2023: €30 million) and the decrease was mainly due to the drop in sales and margin contraction. The 2024 cash outflow from investing activities was €5 million (2023: €12 million) and largely related to payments for licensed content as well as for investments in platform and technical developments. The cash flow from financing activities during 2024 was an outflow of €7 million (2023: €13 million) and included €5.5 million cash outflow for the share buyback programme and €0.3 million dividend distribution.
Liquidity: Due to the lower operating free cash flow, the net cash position decreased to €12 million at the year-end close (31/12/2023: €16 million).

Operational indicators

Lifetime value of a customer: In 2024, the expected average lifetime value of a customer (LTV) was down 10% to €77 (2023: €85). The year-on-year decrease was due to the higher churn rates against 2023 resulting from new customer care tools in place at the card scheme companies, which consequently resulted in shorter average customer loyalty durations.
Customers: The number of unique paying customers for the Group’s bundled- and single-content streaming services decreased to 0.7 million per 31 December 2024 (31/12/2023: 1.2 million). The decrease resulted from the Group’s stronger focus on profitability than on sales growth. Whereby the CPA was brought more in line with the lower expected average lifetime value (LTV) of the customers, which led to less new customer acquisitions.
Lifetime value of Customer Base: As at 31 December 2024, the lifetime value of the customer base (LTVCB) dropped by €70 million to €94 million compared to prior year-end (31/12/2023: €164 million). The lower LTVCB was the result of the decrease in the number of customers as well as the lower expected average lifetime value of a customer. The LTVCB represents the expected sales to be generated from paying customers as at reporting date over their estimated individual remaining lifetime.

Capital return

CLIQ successfully completed its share buyback programme ahead of schedule on 3 January 2025 and acquired in total nearly 647k own shares for just under €5.5 million at an average price of around €8.50 per share. As part of its capital return strategy, CLIQ’s Management Board decides on a yearly basis to what extent and how capital will be returned to shareholders. Despite the poor operating performance, CLIQ’s Management Board and Supervisory Board propose to distribute a dividend for the financial year 2024 of €0.04 per share.

Outlook

In 2025, CLIQ expects to generate an EBITDA of between €10 and 15 million on the back of Group sales expected to range between €180 and 220 million and after €50 to 75 million total customer acquisition costs forecast.

Management Board statement

“CLIQ and our shareholders faced significant challenges in 2024 as our business encountered tougher market conditions and our new sales growth initiatives advanced more slowly than anticipated,” said CEO Luc Voncken. “While market conditions in 2025 remain uncertain, we have strengthened our business foundations and must now move forward with a renewed entrepreneurial spirit and a clear vision to seize the growth opportunities ahead.“

Earnings call

A live audio webcast conducted in English will be held today at 2.00 p.m. CET with presentations from Luc Voncken, CEO, and Ben Bos, member of the Management Board.

Questions submitted before 12.00 p.m. CET via email to investors@cliqdigital.com will be answered after the presentations.

Please click on the link below to register for this webcast:

https://cliqdigital.zoom.us/webinar/register/WN_UManLyZkSvyaKCEkPZeQmg

ZOOM details will be sent to you via email post registration and a replay of the webcast will be available shortly after the call at: https://cliqdigital.com/investors/financials/financial-reporting.

Contacts

Investor Relations:
Sebastian McCoskrie, s.mccoskrie@cliqdigital.com, +49 151 52043659

Media Relations:
Daniela Münster, daniela.muenster@h-advisors.global, +49 174 3358111

Financial calendar

Annual General Meeting 2025	Friday	11 April 2025
Financial report 1Q 2025 & earnings call	Thursday	8 May 2025
Half-year financial report 2025 & earnings call	Thursday	7 August 2025
Financial report 3Q/9M 2025 and earnings call	Thursday	6 November 2025

About CLIQ

The CLIQ Group is a data-driven online performance marketing company that sells bundled subscription-based digital products to consumers worldwide. The Group licenses content from partners, bundles it to digital products, and sells them via performance marketing. CLIQ is expert in turning consumer interest into sales by monetising online traffic using an omnichannel approach.

The Group operated in 40 countries and employed 132 staff from 33 different nationalities as at 31 December 2024. The company is headquartered in Düsseldorf and has offices in Amsterdam and Paris. CLIQ Digital is listed in the Scale segment of the Frankfurt Stock Exchange (ISIN: DE000A35JS40, GSIN/WKN: A35JS4) and is a constituent of the MSCI World Micro Cap Index.

Visit our website https://cliqdigital.com/investors. Here you will find all publications and further information about CLIQ. You can also follow us on LinkedIn.

¹ Lifetime value of a customer
² Customer acquisition costs
³ 2024 numbers are before special items

The MIL Network –

February 20, 2025

MIL-OSI: Bitget Wallet Maximizes Pi Airdrop Utility with Full Mainnet Support

Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Feb. 20, 2025 (GLOBE NEWSWIRE) — Bitget Wallet, a leading Web3 non-custodial wallet, has announced full support for the Pi airdrop as its mainnet launches on February 20 at 8:00 (UTC), 2025. As one of the first multi-chain wallets to integrate Pi’s mainnet, Bitget Wallet offers a secure platform for users to claim, store, and swap Pi tokens, ensuring seamless participation in its expanding ecosystem.

Pi Network (PI) is a cryptocurrency project focused on accessibility, allowing users to mine tokens directly from their mobile devices without expensive hardware. Pi Network has attracted over 100 million participants with its mobile-first mining model, highlighting the potential of community-driven adoption. Its mainnet launch represents a pivotal transition from a closed system to an open blockchain infrastructure, where the viability of Pi’s ecosystem will be tested through real-world use cases and network scalability.

Beyond simple transactions, Pi tokens can be used for peer-to-peer transfers, payments in merchant marketplaces, and staking for network security and governance. These functions provide practical applications for users looking to maximize the value of their Pi holdings. However, as Pi transitions to an open blockchain, its mainnet launch will serve as the first real test of whether these utilities can be fully realized at scale. The success of Pi’s ecosystem will depend on how well it supports active transactions, sustainable incentives, and broader adoption beyond speculation.

Bitget Wallet enhances Pi holders’ ability to utilize their tokens efficiently. Users can securely store and trade Pi, stake tokens for passive income, and make real-world payments. The wallet’s low transaction fees, instant swaps with no slippage, and ability to trade without mainnet gas fees create a seamless user experience. Additionally, Bitget Wallet’s bank-grade security, including multi-signature cold storage and 2FA verification, ensures asset protection. Multi-chain support allows users to swap Pi across networks, including Solana, BSC, Ethereum and more.

To drive adoption, Bitget Wallet is launching dedicated campaigns to enhance liquidity and encourage broader participation. As part of its initiatives, Bitget Wallet will host an X Space AMA session “PI Launches: What’s Next for PI?“, inviting the community to discuss Pi’s future while offering users a chance to win rewards. Participants who drop screenshots of their Pi holdings in Bitget Wallet will be eligible to share a $314 USDT prize pool. With Pi’s momentum continuing to grow, Bitget Wallet is positioning itself as the go-to platform for Pi holders looking to maximize their assets and expand their onchain activities.

“Pi Network’s mainnet launch is a defining moment—not just for Pi, but for the broader Web3 movement,” said Alvin Kan, COO of Bitget Wallet. “While its limited market supply and strong network effects may drive early interest, its long-term success will depend on real-world utility beyond speculation. The challenge is building an ecosystem where users hold, transact, and find lasting value. At Bitget Wallet, we are committed to equipping users with the right tools to navigate this evolving landscape.”

For more details, please visit Bitget Wallet blog.

About Bitget Wallet
Bitget Wallet is the home of Web3, uniting endless possibilities in one non-custodial wallet. With over 60 million users, it offers comprehensive onchain services, including asset management, instant swaps, rewards, staking, trading tools, live market data, a DApp browser, an NFT marketplace and crypto payment. Supporting over 100 blockchains, 20,000+ DApps, and 500,000+ tokens, Bitget Wallet enables seamless multi-chain trading across hundreds of DEXs and cross-chain bridges, along with a $300+ million protection fund to ensure safety of users’ assets. Experience Bitget Wallet Lite to start a Web3 journey.

For more information, visit: X | Telegram | Instagram | YouTube | LinkedIn | TikTok | Discord | Facebook
For media inquiries, please contact media.web3@bitget.com

The MIL Network –

February 20, 2025

US:	+1-855-883-1031
International: Hong Kong: Mainland China: Passcode:	+61-7-3107-6325 800-930-639 400-120-9216 10044957