Category: Taxation

MIL-OSI Economics: Samsung Electronics Announces Results for Third Quarter of 2024

Source: Samsung

Samsung Electronics today reported financial results for the third quarter ended Sept. 30, 2024.

The Company posted KRW 79.1 trillion in consolidated revenue, an increase of 7% from the previous quarter, on the back of the launch effects of new smartphone models and increased sales of high-end memory products. Operating profit declined to KRW 9.18 trillion, largely due to one-off costs, including the provision of incentives in the Device Solutions (DS) Division.

The strength of the Korean won against the U.S. dollar resulted in a negative impact on company-wide operating profit of about KRW 0.5 trillion compared to the previous quarter.

In the fourth quarter, while memory demand for mobile and PC may encounter softness, growth in AI will keep demand at robust levels. Against this backdrop, the Company will concentrate on driving sales of High Bandwidth Memory (HBM) and high-density products. The Foundry Business aims to increase order volumes by enhancing advanced process technologies. Samsung Display Corporation (SDC) expects the demand of flagship products from major customers to continue, while maintaining a quite conservative outlook on its performance. The Device eXperience (DX) Division will continue to focus on premium products, but sales are expected to decline slightly compared to the previous quarter.

For 2025, the Company will remain focused on enhancing competitiveness in advanced technologies and strengthening leadership in premium products and AI capabilities amid ongoing macroeconomic uncertainties. The DS Division will address demand for differentiated products based on advanced technologies and high value-added products such as HBM and server SSDs. In addition, the Company plans to leverage the mass production on the 2 nanometer (nm) Gate-All-Around (GAA) process to win new clients. SDC will aim to maintain leadership in the high-end product category and broaden its product portfolio. The DX Division will continue to deliver exceptional customer experiences through enhanced AI features and product connectivity.

With over 500 million diverse products being delivered to consumers globally every year, the Company is tailoring its AI technology in each product to help lead the market. By leveraging the SmartThings platform with 360 million users and capabilities in product intelligence, spatial intelligence, and personalization, the Company plans to firmly establish itself in the home of the future, where AI will be widespread. In the AI era for the home, the Company will focus on the security of its products, convenience in device connectivity, intelligent technology to save energy and time, and the health and well-being of users and their families.

Memory Achieves Revenue Growth in Q3
The DS Division posted KRW 29.27 trillion in consolidated revenue and KRW 3.86 trillion in operating profit in the third quarter.

For the Memory Business, demand for AI and conventional servers was strong, as major datacenter and technology companies continued to invest. But mobile demand was relatively soft due to inventory adjustments by some customers, and the supply-demand situation was impacted somewhat by the increasing supply of legacy products in the China market.

The Company focused on actively responding to the demand for AI and server products while depleting aging inventories of legacy products to further improve the inventory level and mix. Therefore, compared to the previous quarter, the Company achieved significant revenue growth in HBM, DDR5 and Server SSD.

However, performance decreased due to a reduced reversal of inventory valuation loss compared to the previous quarter, one-off expenses such as the provision of incentives, and currency effects due to a weak dollar.

For the fourth quarter, the demand trends experienced in the previous quarter are expected to continue. The Company plans to accelerate the conversion of cutting-edge nodes in legacy lines and aims to strengthen its business fundamentals by completing the normalization of the inventory level and mix by the end of the year.

For DRAM, the Company plans to expand sales in line with the increase in HBM capacity, accelerate the transition to 1b nanometer1 for server DDR5 and actively expand the sales portion of high-density modules based on 32Gb DDR5. For NAND, the Company will expand sales of 8th generation (V8) based PCIe Gen5 and plans to mass-produce the 64TB product for the quad-level cell (QLC) market, which has high growth potential.

Looking ahead to 2025, datacenter and enterprise investments are likely to remain strong in association with AI, and build demand for conventional servers, in addition to AI servers, is expected to be steadily strong.

For DRAM, the Company plans to expand the sales of HBM3E and the portion of high-end products such as DDR5 modules with 128GB density or higher for servers and LPDDR5X for mobile, PC, servers, and so on. For NAND, the Company will proactively respond to the high-density trend based on QLC products — including 64TB and 128TB SSDs — and solidify leadership in the PCIe Gen5 market by accelerating the tech migration from V6 to V8.

The System LSI Business posted modest sales growth, but earnings declined due to increased one-off costs. System-on-chip (SoC) shipments increased as flagship products were adopted for new models by a major customer. Sales of image sensors were affected by H1’s inventory accumulation, resulting in some adjustments, while display driver IC (DDI) sales expanded with new model launches by key customers.

In the fourth quarter, supply of the Exynos 2400 will continue to expand with higher customer adoption, but weak demand for image sensors is expected to continue. For DDIs, the System LSI Business is focusing on growth areas, such as the expansion of IT-oriented OLED products.

Looking ahead to 2025, the momentum of on-device AI is expected to remain strong, and the Company will focus on capturing opportunities in areas such as SoCs and cameras. The System LSI Business plans to concentrate on supplying SoCs for flagship products of a major customer while preparing for next-generation 2nm products. Image sensors will aim to maximize new product supply through HDR, low-power and zoom features, while DDIs will seek to develop low-power products using advanced processes.

The Foundry Business saw its overall earnings decline compared to the previous quarter due to the impact of one-off costs. Still, the Foundry Business successfully met its order targets — particularly in sub-5nm technologies — and released the 2nm GAA process design kit (PDK), enabling customers to proceed with their product designs.

While mobile and PC demand may remain weak in the fourth quarter, high performance computing (HPC) and AI-related demand will continue to be robust. The Foundry Business will strive to acquire customers by improving the process maturity of its 2nm GAA technology, and it will continue to develop competitive technology and design infrastructure to expand additional business opportunities.

For 2025, the overall foundry market is expected to show double-digit growth, driven by HPC and AI applications in advanced technology nodes. The Foundry Business aims to expand revenue through ongoing yield improvements in advanced technology while securing major customers through successful 2nm mass production. In addition, integrating advanced process nodes and packaging solutions to further develop the HBM buffer die is expected to help acquire new customers in the AI and HPC sectors.

Mobile Display Records Solid Results; Will Maintain Leadership in the High-End Market
SDC posted KRW 8.0 trillion in consolidated revenue and KRW 1.51 trillion in operating profit for the third quarter.

For the mobile display business, SDC achieved sequential improvements in both sales and profits thanks to the flagship product launches of major customers. For the large display business, SDC reported a slight weakening in operating profit, but sales volume improved from the previous quarter, driven by the stable demand of TV and monitor products.

In the fourth quarter, SDC expects continued demand for flagship products from major customers, and sales growth of IT and automotive products. However, SDC’s performance outlook is quite conservative compared to the previous quarter, due to headwinds from rising competition among panel makers.

For the large display business, SDC will keep striving to expand sales by meeting the fourth quarter demand of major customers through improved production efficiency, and it aims to respond to the demand for new products in 2025 with timely supply.

In 2025, SDC will continue to maintain its leadership in the foldable and high-end smartphone markets, based on innovative OLED technologies optimized for AI devices and accelerate the expansion of IT and automotive products to further diversify its business portfolio.

For the large display business, SDC will continue to leverage the performance advantage of QD-OLED panels to strengthen its position in the premium TV market. And for monitors, SDC will broaden its lineup by adding high-resolution products and diverse refresh rate options, aiming not only to solidify its competitive edge in the gaming monitor market but also to actively enter the B2C monitor market.

MX Business To Achieve Double-Digit Annual Sales Growth in Flagships
The MX and Networks businesses posted KRW 30.52 trillion in consolidated revenue and KRW 2.82 trillion in operating profit for the third quarter.

Overall market demand for smartphones grew modestly as the residual effects of global inflation slowed the recovery in consumer spending.

The MX Business recorded sequential growth in both revenue and operating profit, bolstered by the launch of new smartphone, tablet and wearable products. Sales increased — with a focus on flagship models — and profitability neared double digits, despite rising material costs as product specifications improved to boost competitiveness.

In the fourth quarter, seasonal factors are expected to lead to sequential growth in the smartphone market. At the same time, competition in the mass market segment is expected to increase as a result of rising demand, particularly in emerging markets.

The MX Business will continue to maintain solid sales of its AI smartphones, such as foldables and the S24 series, with various sales promotions in anticipation of the holiday season, aiming for annual flagship sales growth of double digits. In addition, the MX Business will expand sales linked to year-end seasonality for tablets and wearables, especially on new premium products with significantly enhanced performance, to contribute to the MX Business’ sales and profits.

In 2025, the macroeconomic environment is expected to stabilize to a degree as a result of interest rate cuts, leading to slight growth in the smartphone market. The mass market segment is expected to grow, along with demand for ecosystem products, and the smartwatch and true wireless stereo (TWS) markets will expand with broader applications of AI capabilities.

The MX Business will drive sales growth and improve profitability with a focus on flagship products, including smartphones, foldables, tablets and wearables, based on further advancements of Galaxy AI.

Visual Display To Focus on Premium Models and Service Expansion
The Visual Display and Digital Appliances businesses posted KRW 14.14 trillion in consolidated revenue and KRW 0.53 trillion in operating profit in the third quarter.

The Visual Display Business saw improved profitability both from the previous quarter and a year earlier by prioritizing sales of strategic products such as Neo QLEDs, OLEDs, and big TVs. Additionally, service business sales increased.

In the fourth quarter, overall demand in the TV market is expected to recover due to year-end peak seasonality amid intensifying competition. The Visual Display Business plans to capture peak season demand by enhancing sales programs through strategic collaborations with major retail partners, and will focus on expanding sales and securing profitability by emphasizing the competitiveness of TVs in terms of security, design, and content.

In 2025, the overall TV market is expected to post modest growth, with strategic products like QLEDs, OLEDs, and big TVs continuing to gain market share. To solidify its leading position globally, the Visual Display Business will continue to differentiate AI functionalities and innovate its products centering on premium and Lifestyle screens.

By utilizing AI, the Company aims to enhance core TV features such as picture and sound quality, while also improving the overall user experience within the SmartThings ecosystem. The Company plans to drive sales of premium products centered on Neo QLED, OLED and super big TVs, and it will maintain leadership in the Lifestyle screen category by leveraging well-established competitive advantages.

Furthermore, by capitalizing on the extensive installed base that has been established through hardware leadership, the Visual Display Business will continue to expand the service platform business through advertisement and media such as Samsung TV Plus.

1 Refers to Samsung’s fifth-generation 10nm class DRAM

MIL OSI Economics –

January 25, 2025

MIL-OSI: Societe Generale: Third quarter 2024 earnings

Source: GlobeNewswire (MIL-OSI)

RESULTS AT 30 SEPTEMBER 2024

Press release
Paris, 31 October 2024

SOLID BUSINESS PERFORMANCE IN Q3 24,
GROUP NET INCOME OF EUR 1.4 BILLION

Revenues of EUR 6.8 billion, up +10.5% vs. Q3 23¹, driven notably by the strong rebound in net interest income in France, in line with end of year estimate, and by another solid performance of Global Banking and Investor Solutions, in particular in Equities and Transaction Banking

Strong positive jaws, control of operating expenses, down by -0.8% vs. Q3 23

Cost-to-income ratio at 63.3% in Q3 24, improved by 7.1 points vs. Q3 23

Stable cost of risk at 27 basis points in Q3 24

Profitability (ROTE) at 9.6% vs. 3.8% for Q3 23

9M 24 NET INCOME UP 53% VS. 9M 23 AT EUR 3.2 BILLION,
DRIVEN BY THE IMPROVEMENT IN OPERATING PERFORMANCE

Revenues of EUR 20.2 billion, up +5.3% vs. 9M 23

Stable operating expenses, +0.1% vs. 9M 23

Cost-to-income ratio at 68.8%, improved by 3.6 percentage points vs. 9M 23

Profitability (ROTE) at 7.1% vs. 5.0% for 9M 23

SOLID CAPITAL AND LIQUIDITY RATIOS

CET 1 ratio of 13.2%²at end of Q3 24, around 300 basis points above the regulatory requirement

Liquidity Coverage Ratio at 152% at end of Q3 24

Distribution provision of EUR 1.66³per share at end-September 2024

DECISIVE EXECUTION OF THE STRATEGIC PLAN

Capital build-up ahead of Capital Markets Day trajectory

Continuous improvement in efficiency and profitability

Reshaping of the business portfolio well underway

Slawomir Krupa, the Group’s Chief Executive Officer, commented:
“We are publishing solid quarterly results that continue to show strong improvement. It demonstrates that we are executing our strategic plan which is impacting our results in a positive and tangible way. Our revenues are up thanks to the solid performance of our businesses with a strong rebound of the net interest income in France and another remarkable contribution from Global Banking and Investor Solutions. Operating expenses are stable and cost of risk is contained. We are posting a clear improvement of cost-to-income ratio and profitability, and our capital ratio continues to strengthen.
For the past year we have been working relentlessly. Our teams are mobilized and we have made progress in three fundamental areas: capital build-up, improvement of profitability, and the reshaping of our business portfolio. We continue to implement our various strategic initiatives such as BoursoBank’s development, LeasePlan’s integration within Ayvens and the acceleration of our contribution to the energy transition. Our goal remains unchanged: a sustainable performance that will create long-term value.”

GROUP CONSOLIDATED RESULTS

In EURm	Q3 24	Q3 23	Change		9M 24	9M 23	Change
Net banking income	6,837	6,189	+10.5%	+11.8%*	20,167	19,147	+5.3%	+6.5%*
Operating expenses	(4,327)	(4,360)	-0.8%	-0.3%*	(13,877)	(13,858)	+0.1%	+0.5%*
Gross operating income	2,511	1,829	+37.3%	+41.0%*	6,290	5,289	+18.9%	+22.4%*
Net cost of risk	(406)	(316)	+28.4%	+30.5%*	(1,192)	(664)	+79.6%	+81.0%*
Operating income	2,105	1,513	+39.1%	+43.2%*	5,098	4,625	+10.2%	+13.9%*
Net profits or losses from other assets	21	6	x 3.5	x 3.4*	(67)	(92)	+27.5%	+27.3%*
Income tax	(535)	(624)	-14.3%	-12.7%*	(1,188)	(1,377)	-13.7%	-11.3%*
Net income	1,591	563	x 2.8	x 3.0*	3,856	2,836	+35.9%	+41.3%*
O.w. non-controlling interests	224	268	-16.5%	-16.1%*	696	774	-10.1%	-11.2%*
Reported Group net income	1,367	295	x 4.6	x 5.1*	3,160	2,062	+53.2%	+62.2%*
ROE	8.4%	0.9%			6.2%	3.6%	+0.0%	+0.0%*
ROTE	9.6%	3.8%			7.1%	5.0%	+0.0%	+0.0%*
Cost to income	63.3%	70.4%			68.8%	72.4%	+0.0%	+0.0%*

Societe Generale’s Board of Directors, which met on 30 October 2024 under the chairmanship of Lorenzo Bini Smaghi, examined Societe Generale Group’s results for Q3 24 and for the first nine months of 2024.

Net banking income

Net banking income stood at EUR 6.8 billion, up by +10.5% vs. Q3 23.

Revenues of French Retail, Private Banking and Insurance were up by +18.7% vs. Q3 23 and totalled EUR 2.3 billion in Q3 24. Net interest income continued its rebound in Q3 24 (+43% excluding PEL/CEL provision vs. Q3 23), in line with latest estimates, in the context of a still muted loan environment and the pursuit of increasing interest-bearing deposits. Assets under management in the Private Banking and Insurance businesses continued to rise, respectively recording a growth of +8% and +10% in Q3 24 vs. Q3 23. Last, BoursoBank continued its controlled client acquisition, onboarding once again more than 300,000 new clients over the quarter, reaching close to 6.8 million clients at end-September 2024. Likewise, assets under administration rose by over 14% vs. Q3 23. As in Q2 24, BoursoBank posted a positive contribution to Group net income in Q3 24.

Global Banking and Investor Solutions registered a +4.9% increase in revenues relative to Q3 23. Revenues totalled EUR 2.4 billion over the quarter, still driven by strong dynamics of Global Markets’ and Global Transaction & Payment Services’ activities, with revenues increasing by a respective +7.6% and +9.0% in Q3 24 vs. Q3 23. Within Global Markets, revenues of Equity businesses grew by +10.1%. This is the second best third quarter ever. Fixed income and Currencies also recorded a solid performance, with a +6.1% increase in revenues amid a falling interest rates. Financing and Advisory’s revenues totalled EUR 843 million, stable vs. Q3 23. The commercial momentum in the securitisation businesses remained very solid and the performance of financing activities continued to be good, albeit slower relative to an elevated Q3 23. Likewise, Global Transaction & Payment Services’ activities posted an +9.0% increase in revenues vs. Q3 23, driven by a favourable market environment and sustained commercial development in the cash management and correspondent banking activities.

Mobility, International Retail Banking and Financial Services’ revenues were down by -5.4% vs. Q3 23 mainly owing to base effects at Ayvens. International Retail Banking recorded a +1.4% increase in revenues vs. Q3 23 to EUR 1.1 billion, driven by favourable momentum across all regions. Mobility and Financial Services’ revenues contracted by -11.4% vs. Q3 23 owing to an unfavourable non-recurring base effect on Ayvens.

The Corporate Centre recorded revenues of EUR +54 million in Q3 24. They include the booking of exceptional proceeds of approximately EUR 0.3 billion⁴.

Over 9M 24, net banking income increased by +5.3% vs. 9M 23.

Operating expenses

Operating expenses came to EUR 4,327 million in Q3 24, down -0.8% vs. Q3 23.

The cost-to-income ratio stood at 63.3% in Q3 24, a sharp decrease vs. Q3 23 (70.4%) and Q2 24 (68.4%).

Over 9M 24, operating expenses were stable (+0.1% vs. 9M 23) and the cost-to-income ratio came to 68.8% (vs. 72.4% for 9M 23), which is lower than the 71% target set for FY 2024.

Cost of risk

The cost of risk was stable and contained over the quarter at 27 basis points, i.e., EUR 406 million. This comprises a EUR 400 million provision for doubtful loans (around 27 basis points) and a provision on performing loan outstandings for EUR +6 million.

At end-September 2024, the Group’s provisions on performing loans amounted to EUR 3,122 million, down by a slight EUR -56 million relative to 30 June 2024 notably as per the application of IFRS5 accounting standards on activities under disposal. The EUR -450 million contraction relative to 31 December 2023 is mainly owing to the application of IFRS 5 accounting standards for activities under disposal.

The gross non-performing loan ratio stood at 2.95%⁵^,⁶ at 30 September 2024, down vs. end of June 2024 (3.03%). The net coverage ratio on the Group’s non-performing loans stood at 84%⁷ at 30 September 2024 (after netting of guarantees and collateral).

Net profits from other assets

In Q3 24, the Group booked net profit of EUR 21 million driven, on the one hand, by the sale of the headquarters of KB in the Czech Republic and, on the other hand, by the accounting impacts mainly owing to the current sale of assets.

Group net income

Group net income stood at EUR 1,367 million in Q3 24, equating to a Return on Tangible Equity (ROTE) of 9.6%.

Over 9M 24, Group net income came to EUR 3,160 million, equating to a Return on Tangible Equity (ROTE) of 7.1%.

2. STRATEGIC PLAN FULLY ON TRACK

Since announcing its strategic plan in September 2023, the Group has made significant progress in its implementation, the benefits of which are starting to materialise, including on financials aspects. Fundamental milestones have notably been reached in three major areas: capital build-up, the continuous improvement in efficiency and profitability and the reshaping of the business portfolio.

Regarding the business portfolio, the Group has been proactive in recent months, announcing the disposal of several non-core and non-synergistic assets. These latest divestments not only contribute to simplifying the Group but will also reinforce the capital ratio by around 60 basis points, of which around 15 basis points are expected by year-end.

At the same time, the Group is preparing the future by investing in our core franchises, as demonstrated by the development of BoursoBank, the integration of LeasePlan in Ayvens, the creation of Bernstein, the partnership with Brookfield, the merger of our networks in France and the digitalization of our networks in the Czech Republic.

The rollout of our ESG roadmap is also progressing well, particularly on the alignment of our portfolio. The Group has already reduced by more than 50% its upstream Oil & Gas exposure at Q2 24 compared to 2019⁸.

Last quarter, the Group reached its EUR 300 billion sustainable finance target set between 2022-2025. Societe Generale announces today a new sustainable finance target to facilitate EUR 500 billion over the 2024-2030 period that breaks down as follows:
– EUR 400 billion in financing and EUR 100 billion in sustainable bonds⁹
– EUR 400 billion in environmental activities and EUR 100 billion in social

A major portion of financing will be for dedicated transactions in clean energy, sustainable real estate, low carbon mobility, and other industry and environmental transition topics.

3. THE GROUP’S FINANCIAL STRUCTURE

At 30 September 2024, the Group’s Common Equity Tier 1 ratio stood at 13.2%¹⁰, around 300 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well ahead of regulatory requirements at 152% at end-September 2024 (156% on average for the quarter), and the Net Stable Funding Ratio (NSFR) stood at 116% at end-September 2024.

All liquidity and solvency ratios are well above the regulatory requirements.

	30.09.2024	31.12.2023	Requirements
CET1⁽¹⁾	13.2%	13.1%	10.22%
CET1 fully loaded	13.2%	13.1%	10.22%
Tier 1 ratio ⁽¹⁾	15.5%	15.6%	12.15%
Total Capital⁽¹⁾	18.2%	18.2%	14.71%
Leverage ratio ⁽¹⁾	4.25%	4.25%	3.60%
TLAC (% RWA)⁽¹⁾	27.8%	31.9%	22.29%
TLAC (% leverage)⁽¹⁾	7.6%	8.7%	6.75%
MREL (% RWA)⁽¹⁾	32.2%	33.7%	27.56%
MREL (% leverage)⁽¹⁾	8.8%	9.2%	6.23%
End of period LCR	152%	160%	>100%
Period average LCR	156%	155%	>100%
NSFR	116%	119%	>100%

In EURbn	30.09.2024	31.12.2023
Total consolidated balance sheet	1,580	1,554
Group shareholders’ equity	67	66
Risk-weighted assets	392	389
O.w. credit risk	331	326
Total funded balance sheet	948	970
Customer loans	453	497
Customer deposits	608	618

At 11 October 2024, the parent company had issued a total of EUR 38.0 billion in medium/long-term debt, of which EUR 17.5 billion in vanilla notes. The 2024 long-term vanilla funding programme is completed. The subsidiaries had issued EUR 4.6 billion. In all, the Group has issued a total of EUR 42.6 billion.

The Group is rated by four rating agencies: (i) FitchRatings – long-term rating “A-”, stable outlook, senior preferred debt rating “A”, short-term rating “F1” (ii) Moody’s – long-term rating (senior preferred debt) “A1”, negative outlook, short-term rating “P-1” (iii) R&I – long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings – long-term rating (senior preferred debt) “A”, stable outlook, short-term rating “A-1”.
4. FRENCH RETAIL, PRIVATE BANKING AND INSURANCE

In EURm	Q3 24	Q3 23	Change	9M 24	9M 23	Change
Net banking income	2,254	1,900	+18.7%	6,390	6,090	+4.9%
Net banking income excl. PEL/CEL	2,259	1,895	+19.2%	6,392	6,090	+5.0%
Operating expenses	(1,585)	(1,608)	-1.4%	(4,962)	(5,073)	-2.2%
Gross operating income	669	292	x 2.3	1,428	1,017	+40.5%
Net cost of risk	(178)	(144)	+23.4%	(597)	(342)	+74.7%
Operating income	491	148	x 3.3	831	675	+23.1%
Net profits or losses from other assets	(1)	0	n/s	7	4	x 2.1
Reported Group net income	368	109	x 3.4	631	506	+24.8%
RONE	9.4%	2.8%		5.4%	4.4%
Cost to income	70.3%	84.7%		77.7%	83.3%

Commercial activity

SG Network, Private Banking and Insurance

Average outstanding deposits of the SG Network amounted to EUR 236 billion in Q3 24, up by +0.6% vs. the previous quarter (-1% vs. Q3 23), with a continued rise in interest-bearing deposits and financial savings.

The SG Network’s average loan outstandings contracted by -5% vs. Q3 23 to EUR 195 billion. Outstanding loans to corporate and professional clients were stable vs. Q3 23 (excluding government-guaranteed PGE loans), with the share of medium to long-term loans increasing relative to Q2 24. Home loan production continued its recovery (2.4x vs. Q3 23 and +15% vs. Q2 24).

The average loan to deposit ratio came to 82.5% in Q3 24, down by -3.3 percentage points relative to Q3 23.

Private Banking activities saw their assets under management¹¹ reach a new record of EUR 154 billion in Q3 24, up by +8% vs. Q3 23. Net gathering stood at EUR 5.9 billion in 9M 24, the net asset gathering pace (net new money divided by AuM) has risen by +5.5% since the start of the year. Net banking income stood at EUR 368 million over the quarter, stable vs. Q3 23. Over 9M 24, net banking income came to EUR 1,121 million, a +1% increase vs. 9M 23.

Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +10% vs. Q3 23 to reach a record EUR 145 billion at end-September 2024. The share of unit-linked products remained high at 40%. Gross life insurance savings inflows amounted to EUR 3.6 billion in Q3 24, up by +35% vs. Q3 23.

Personal protection and P&C premia were up by +5% vs. Q3 23.

BoursoBank

BoursoBank registered almost 6.8 million clients at end-September 2024, a +27% increase vs. Q3 23 (an increase of around 1.4 million clients year on year). The pace of new client acquisition (around 310,000 new clients in Q3 24) is fully in line with the target of 7 million clients by the end of 2024. BoursoBank can build on an active, loyal and high-quality client base. The brokerage activity registered two million transactions, up by +18% vs. Q3 23. Last, proof of the efficiency of the model and of the very high client satisfaction level, the churn rate has remained low at around 3% and below the market rate.

Average loan outstandings rose by +4,2% compared to Q3 23, at EUR 15 billion in Q3 24.

Average outstanding savings including deposits and financial savings were +13.8% higher vs. Q3 23 at EUR 63 billion. Deposits outstanding totalled EUR 38 billion at Q3 24, posting another sharp increase of +16.2% vs. Q3 23. Life insurance outstandings came to EUR 12 billion in Q3 24 and rose by +7.3% vs. Q3 23 (o/w 47% unit-linked products, a +3.3 percentage points increase vs. Q3 23). The activity continued to register strong gross inflows over the quarter (+55% vs. Q3 23, around 53% unit-linked products).

For the second quarter in a row, BoursoBank recorded a positive contribution to Group net income in Q3 24.

Net banking income

Over the quarter, revenues came to EUR 2,254 million, up +19% vs. Q3 23 and up +6% vs Q2 24. Net interest income grew by +43% vs. Q3 23 (excluding PEL/CEL) and +19% (EUR 169 million) vs. Q2 24. Fee income rose by +5.0% relative to Q3 23.

Over 9M 24 revenues came to EUR 6,390 million, up by +4.9% vs. 9M 23. Net interest income excluding PEL/CEL was up by +15.9% vs. 9M 23. Fee income increased by +1.7% relative to 9M 23.

Operating expenses

Over the quarter, operating expenses came to EUR 1,585 million, down -1.4% vs. Q3 23. Operating expenses for Q3 24 include EUR 12 million in transformation costs. The cost-to-income ratio stood at 70.3% for Q3 24, improving by more than +14 percentage points vs. Q3 23.

Over 9M 24, operating expenses came to EUR 4,962 million (-2.2% vs. 9M 23). The cost-to-income ratio stood at 77.7% and improved by +5.7 percentage points vs. 9M 23.

Cost of risk

In Q3 24, the cost of risk amounted to EUR 178 million or 30 basis points stable on Q2 24
(29 basis points).

Over 9M 24, the cost of risk totalled EUR 597 million or 34 basis points.

Group net income

Over the quarter, Group net income totalled EUR 368 million. RONE stood at 9.4% in Q3 24.

Over 9M 24, Group net income totalled EUR 631 million. RONE stood at 5.4% in 9M 24.
5. GLOBAL BANKING AND INVESTOR SOLUTIONS

In EUR m	Q3 24	Q3 23	Variation		9M 24	9M 23	Change
Net banking income	2,422	2,309	+4.9%	+5.2%*	7,666	7,457	+2.8%	+2.8%*
Operating expenses	(1,494)	(1,478)	+1.1%	+1.3%*	(4,898)	(5,187)	-5.6%	-5.5%*
Gross operating income	928	831	+11.6%	+12.0%*	2,768	2,270	+21.9%	+21.8%*
Net cost of risk	(27)	(14)	+95.3%	x 2.0*	(29)	8	n/s	n/s
Operating income	901	817	+10.2%	+10.5%*	2,739	2,278	+20.2%	+20.0%*
Reported Group net income	699	645	+8.2%	+8.5%*	2,160	1,814	+19.1%	+18.8%*
RONE	18.0%	16.8%	+0.0%	+0.0%*	19.0%	15.6%	+0.0%	+0.0%*
Cost to income	61.7%	64.0%	+0.0%	+0.0%*	63.9%	69.6%	+0.0%	+0.0%*

Net banking income

Global Banking and Investor Solutions continued to deliver very strong performances, posting revenues of EUR 2,422 million, up +4.9% versus Q3 23.

Over 9M 24, revenues climbed by +2.8% vs. 9M 23 (EUR 7,666 million vs. EUR 7,457 million).

Global Markets and Investor Services recorded a rise in revenues over the quarter vs. Q3 23 of +7.6% to EUR 1,579 million. Over 9M 24, revenues totalled EUR 5,063 million, i.e., a +3.1% increase vs. 9M 23. Growth was mainly driven by Global Markets which recorded revenues of EUR 1,410 million in Q3 24, up by +8.6% relative to Q3 23 amid a positive environment that was particularly conducive to Equities. Over 9M 24, revenues totalled EUR 4,553 million, up by +4.5% vs. 9M 23.

The Equities business again delivered a solid performance, recording revenues of EUR 880 million in Q3 24, up by a strong +10.1% vs. Q3 23, notably on the back of a very good performance from derivatives amid favourable market conditions. This is the second best third quarter ever. Over 9M 24, revenues increased sharply by +12.9% relative to 9M 23 to EUR 2,739 million.

Fixed Income and Currencies registered a +6.1% increase in revenues to EUR 530 million in Q3 24, notably owing to robust demand for rates and forex flow activities, particularly from US clients. Over 9M 24, revenues decreased by -6.0% to EUR 1,814 million.

Securities Services’ revenues were up +0.6% versus Q3 23 at EUR 169 million, but increased by +9.9% excluding the impact of equity participations. The business continued to reap the benefit of a positive fee generation trend and robust momentum in private market and fund distribution. Over 9M 24, revenues were down by -8.2%, but rose by +2.1% excluding equity participations. Assets under Custody and Assets under Administration amounted to EUR 4,975 billion and EUR 614 billion, respectively.

The Financing and Advisory business posted revenues of EUR 843 million, stable versus Q3 23. Over 9M 24, revenues totalled EUR 2,602 million, up by +2.3% vs. 9M 23.

The Global Banking and Advisory business posted a -3.2% decline in revenues relative to Q3 23. Securitised products again delivered a solid performance and momentum was strong in the distribution activity. Financing activities posted a good performance, albeit down on the high baseline in Q3 23. Investment banking activities turned in resilient performances. Over 9M 24, revenues dipped slightly by -0.3% relative to 9M 23.

Global Transaction & Payment Services again delivered a very robust performance compared with Q3 23, posting an +9.0% increase in revenues, driven by strong momentum in cash management and the correspondent banking activities. Over 9M 24, revenues grew by +10.1%.

Operating expenses

Operating expenses came to EUR 1,494 million over the quarter and included EUR 21 million in transformation costs. Operating expenses rose by +1.1% compared with Q3 23, equating to a cost-to-income ratio of 61.7% in Q3 24.

Over 9M 24, operating expenses decreased by -5.6% compared with 9M 23 and the cost-to-income ratio came to 63.9%.

Cost of risk

Over the quarter, the cost of risk was low at EUR 27 million, or 7 basis points vs. 3 basis points in Q3 23.

Over 9M 24, the cost of risk was EUR 29 million, or 2 basis points.

Group net income

Group net income increased by +8.2% vs. Q3 23 to EUR 699 million. Over 9M 24, Group net income rose sharply by +19.1% to EUR 2,160 million.

Global Banking and Investor Solutions reported high RONE of 18.0% for the quarter and RONE of 19.0% for 9M 24.

6. MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES

In EURm	Q3 24	Q3 23	Change		9M 24	9M 23	Change
Net banking income	2,108	2,228	-5.4%	-2.8%*	6,403	6,491	-1.4%	+1.8%*
Operating expenses	(1,221)	(1,239)	-1.4%	+0.3%*	(3,832)	(3,479)	+10.2%	+12.7%*
Gross operating income	887	989	-10.4%	-6.6%*	2,570	3,013	-14.7%	-10.9%*
Net cost of risk	(201)	(175)	+14.9%	+18.1%*	(572)	(349)	+63.7%	+65.9%*
Operating income	685	814	-15.8%	-12.0%*	1,998	2,663	-25.0%	-21.2%*
Net profits or losses from other assets	94	1	x 77.0	x 76.7*	98	0	x 375.7	x 304.1
Non-controlling interests	223	237	-6.1%	-3.6%*	623	674	-7.6%	-7.8%*
Reported Group net income	367	377	-2.4%	+3.1%*	956	1,325	-27.8%	-22.1%*
RONE	14.1%	14.9%			12.2%	18.6%
Cost to income	57.9%	55.6%			59.9%	53.6%

⁽¹²2⁾()

Commercial activity

International Retail Banking

International Retail Banking1 posted robust commercial momentum in Q3 24, with an increase in loan outstandings of +4.2%* vs. Q3 23 (+1.8%, outstandings of EUR 68 billion in Q3 24) and growth of +4.1%* vs. Q3 23 (+1.2%, outstandings of EUR 83 billion in Q3 24).

Activity in Europe was solid across client segments for both entities. Loan outstandings increased by +6.0%* vs. Q3 23 (+3.1% at current perimeter and exchange rates, outstandings of EUR 43 billion in Q3 24), driven by home loans and medium and long-term corporate loans in a lower rates environment. Deposit outstandings increased by +4.6%* vs. Q3 23 (+1.9% at current perimeter and exchange rates, outstandings of EUR 55 billion in Q3 24), mainly on interest-bearing products.

In Africa, Mediterranean Basin and French Overseas Territories, loan outstandings totalled EUR 25 billion in Q3 24 (+1.2%* vs. Q3 23, stable at current perimeter and exchange rates) on back of a +5.6%* rise vs. Q3 23 in sub-Saharan Africa (stable vs. Q3 23 at current perimeter and exchange rates). Deposit outstandings totalled EUR 27 billion at Q3 24. They increased by +3.0%* vs. Q3 23 (stable at current perimeter and exchange rates) across all client segments in Africa.

Mobility and Financial Services

Overall, Mobility and Financial Services maintained a good commercial performance.

Ayvens’ earning assets totalled EUR 53.1 billion at end-September 2024, a +5.8% increase vs. end-September 2023.

The Consumer Finance business posted loans outstanding of EUR 23 billion for Q3 24, down -4.5% vs. Q3 23 in a still uncertain environment.

Equipment Finance posted outstandings of EUR 15 billion in Q3 24, the same level as in Q3 23.

Net banking income

Over the quarter, Mobility, International Retail Banking and Financial Services’ revenues totalled EUR 2,108 million, a decrease of -2.8%* vs. Q3 23 (-5.4% at current perimeter and exchange rates).

Over 9M 24, revenues came to EUR 6,403 million, up slightly by +1.8%* vs. 9M 23 (-1.4% at current perimeter and exchange rates).

International Retail Banking recorded a solid performance over the quarter, with a net banking income of EUR 1,058 million, up by +5.1%* vs. Q3 23 (+1.4% at current perimeter and exchange rates). Over 9M 24, revenues totalled EUR 3,131 million, a +4.0%* increase vs. 9M 23 (stable at current perimeter and exchange rates).

Europe recorded revenues of EUR 506 million in Q3 24, an increase for both entities (+3.0%* vs. Q3 23, stable at current perimeter and exchange rates).

The Africa, Mediterranean Basin and French Overseas Territories region continued to post robust commercial momentum with revenues of EUR 552 million in Q3 24. These increased by +7.2%* vs. Q3 23 (+2.8% at current perimeter and exchange rates), driven by a significant rise in net interest income in Africa (+10.5%* vs. Q3 23).

In Q3 24, Mobility and Financial Services’ revenues decreased by -11.4% vs. Q3 23 to EUR 1,049 million. Over the first nine months of 2024, they contracted by -2.9% to EUR 3,271 million.

Ayvens’ net banking income stood at EUR 732 million, a decrease of -14,8% in Q3 24 vs. Q3 23 and of
-4,0% restated from non-recurring items¹³. The amount of underlying margins was stable vs. Q3 23 at around EUR 690 million¹. The average used car sale result per vehicle (UCS) continued to normalise but remained at a high level of EUR 1,420¹ per unit in Q3 24 vs. EUR 1,480¹ in Q2 24.

Consumer Finance activities, down by -3.5% vs. Q3 23, have stabilised since Q2 24 with the business posting net banking income of EUR 218 million in Q3 24. Equipment Finance revenues were also stable vs. Q3 23 (EUR 99 million in Q3 24).

Operating expenses

Over the quarter, operating expenses were stable (+0.3%* vs. Q3 23, -1.4%) at EUR 1,221 million and included EUR 29 million in transformation costs. The cost-to-income ratio came to 57.9% in Q3 24.

Over 9M 24, operating expenses totalled EUR 3,832 million, up +12.7%* vs. 9M 23 (+10.2% at current perimeter and exchange rates). They include around EUR 148 million of transformation charges.

In a context of a strong transformation, International Retail Banking costs rose by +3.4%* vs. Q3 23 (stable at current perimeter and exchange rates, EUR 567 million in Q3 24), notably due to the impact of a new banking tax in Romania which entered into force in January 2024.

The Mobility and Financial Services business recorded a decrease in operating expenses compared to Q3 23 (-2.4% vs. Q3 23, EUR 654 million in Q3 24).

Cost of risk

Over the quarter, the cost of risk normalised at 48 basis points (or EUR 201 million).

Over 9M 24, the cost of risk stood at 45 basis points vs. 32 basis points in 9M 23.

Group net income

Over the quarter, Group net income came to EUR 367 million, down -2.4% vs. Q3 23. RONE stood at 14.1% in Q3 24. RONE was 21.4% for International Retail Banking (positive impact on Group net income of around EUR 40 million related to the sale of KB head office premises), and 9.2% in Mobility and Financial Services in Q3 24.

Over 9M 24, Group net income came to EUR 956 million, down by -27.8% vs. 9M 23. RONE stood at 12.2% for 9M 24. RONE was 16.4% in International Retail Banking, and 9.5% in Mobility and Financial Services in 9M 24.
7. CORPORATE CENTRE

In EURm	Q3 24	Q3 23	Change		9M 24	9M 23	Change
Net banking income	54	(249)	n/s	n/s	(291)	(891)	+67.3%	+67.8%*
Operating expenses	(27)	(35)	-22.8%	-25.8%*	(185)	(119)	+55.2%	+48.2%*
Gross operating income	27	(283)	n/s	n/s	(476)	(1,010)	+52.9%	+54.2%*
Net cost of risk	1	17	+95.9%	+95.9%*	6	19	+70.6%	+70.6%*
Net profits or losses from other assets	(73)	4	n/s	n/s	(172)	(96)	-78.9%	-79.1%*
Income tax	(26)	(214)	-87.7%	-87.5%*	118	(85)	n/s	n/s
Reported Group net income	(67)	(836)	+92.0%	+92.2%*	(587)	(1,582)	+62.9%	+63.7%*

The Corporate Centre includes:

the property management of the Group’s head office,
the Group’s equity portfolio,
the Treasury function for the Group,
certain costs related to cross-functional projects, as well as several costs incurred by the Group that are not re-invoiced to the businesses.

Net banking income

Over the quarter, the Corporate Centre’s net banking income totalled EUR +54 million vs. EUR -249 million in Q3 23. It includes the booking of exceptional proceeds received of approximately EUR 0.3 billion¹⁴.

Operating expenses

Over the quarter, operating expenses totalled EUR 27 million vs. EUR 35 million in Q3 23.

Net losses from other assets

Pursuant notably to the application of IFRS 5, the Group booked in Q3 24 various impacts from ongoing disposals of assets.

Group net income

Over the quarter, the Corporate Centre’s Group net income totalled EUR -67 million vs. EUR -836 million in Q3 23.

8. 2024 AND 2025 FINANCIAL CALENDAR

2024 and 2025 Financial communication calendar

February 6^th, 2025 Fourth quarter and full year 2024 results
April 30^th, 2025 First quarter 2025 results
May 20^th, 2025 2024 Combined General Meeting

The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, cost of risk in basis points, ROE, ROTE, RONE, net assets and tangible net assets are presented in the methodology notes, as are the principles for the presentation of prudential ratios.

This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.

These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations.

These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to:

– anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

– evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.

Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives.

More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the section “Risk Factors” in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on https://investors.societegenerale.com/en).

Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal.

9. APPENDIX 1: FINANCIAL DATA

GROUP NET INCOME BY CORE BUSINESS

In EURm	Q3 24	Q3 23	Variation	9M 24	9M 23	Variation
French Retail, Private Banking and Insurance	368	109	x 3.4	631	506	+24.8%
Global Banking and Investor Solutions	699	645	+8.2%	2,160	1,814	+19.1%
Mobility, International Retail Banking & Financial Services	367	377	-2.4%	956	1,325	-27.8%
Core Businesses	1,434	1,131	+26.7%	3,747	3,644	+2.8%
Corporate Centre	(67)	(836)	+92.0%	(587)	(1,582)	+62.9%
Group	1,367	295	x 4.6	3,160	2,062	+53.2%

MAIN EXCEPTIONAL ITEMS

In EURm	Q3 24	Q3 23	9M 24	9M 23
Net Banking Income – Total exceptional items	287	0	287	(240)
One-off legacy items – Corporate Centre	0	0	0	(240)
Exceptional proceeds received – Corporate Centre	287	0	287	0

Operating expenses – Total one-off items and transformation charges	(62)	(145)	(538)	(662)
Transformation charges	(62)	(145)	(538)	(627)
Of which French Retail, Private Banking and Insurance	(12)	(46)	(139)	(330)
Of which Global Banking & Investor Solutions	(21)	(41)	(204)	(102)
Of which Mobility, International Retail Banking & Financial Services	(29)	(58)	(148)	(195)
Of which Corporate Centre	0	0	(47)	0
One-off items	0	0	0	(35)
Of which French Retail, Private Banking and Insurance	0	0	0	60
Of which Global Banking & Investor Solutions	0	0	0	(95)

Other one-off items – Total	13	(625)	13	(704)
Net profits or losses from other assets	13	(17)	13	(96)
Of which Mobility, International Retail Banking and Financial Services	86	0	86	0
Of which Corporate Centre	(73)	(17)	(73)	(96)
Goodwill impairment – Corporate Centre	0	(338)	0	(338)
Provision of Deferred Tax Assets – Corporate Centre	0	(270)	0	(270)

CONSOLIDATED BALANCE SHEET

In EUR m	30.09.2024	31.12.2023
Cash, due from central banks	199,140	223,048
Financial assets at fair value through profit or loss	528,259	495,882
Hedging derivatives	8,265	10,585
Financial assets at fair value through other comprehensive income	93,795	90,894
Securities at amortised cost	29,908	28,147
Due from banks at amortised cost	87,153	77,879
Customer loans at amortised cost	446,576	485,449
Revaluation differences on portfolios hedged against interest rate risk	(330)	(433)
Insurance and reinsurance contracts assets	438	459
Tax assets	4,535	4,717
Other assets	75,523	69,765
Non-current assets held for sale	39,940	1,763
Investments accounted for using the equity method	384	227
Tangible and intangible fixed assets	60,970	60,714
Goodwill	5,031	4,949
Total	1,579,587	1,554,045

In EUR m	30.09.2024	31.12.2023
Due to central banks	10,134	9,718
Financial liabilities at fair value through profit or loss	391,788	375,584
Hedging derivatives	14,621	18,708
Debt securities issued	162,997	160,506
Due to banks	105,320	117,847
Customer deposits	526,100	541,677
Revaluation differences on portfolios hedged against interest rate risk	(5,074)	(5,857)
Tax liabilities	2,516	2,402
Other liabilities	93,909	93,658
Non-current liabilities held for sale	29,802	1,703
Insurance contracts related liabilities	150,295	141,723
Provisions	3,954	4,235
Subordinated debts	15,985	15,894
Total liabilities	1,502,347	1,477,798
Shareholder’s equity	–	–
Shareholders’ equity, Group share	–	–
Issued common stocks and capital reserves	21,166	21,186
Other equity instruments	8,918	8,924
Retained earnings	34,074	32,891
Net income	3,160	2,493
Sub-total	67,318	65,494
Unrealised or deferred capital gains and losses	128	481
Sub-total equity, Group share	67,446	65,975
Non-controlling interests	9,794	10,272
Total equity	77,240	76,247
Total	1,579,587	1,554,045

10. APPENDIX 2: METHODOLOGY

1 –The financial information presented for the third quarter and nine-month 2024 was examined by the Board of Directors on October 30^th, 2024 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. This information has not been audited.

2 – Net banking income

The pillars’ net banking income is defined on page 42 of Societe Generale’s 2024 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.

3 – Operating expenses

Operating expenses correspond to the “Operating Expenses” as presented in note 5 to the Group’s consolidated financial statements as at December 31^st, 2023. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 42 of Societe Generale’s 2024 Universal Registration Document.

4 – Cost of risk in basis points, coverage ratio for doubtful outstandings

The cost of risk is defined on pages 43 and 770 of Societe Generale’s 2024 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars as a percentage of balance sheet loan commitments, including operating leases.

In EURm		Q3 24	Q3 23	9M 24	9M 23
French Retail, Private Banking and Insurance	Net Cost Of Risk	178	144	597	342
	Gross loan Outstandings	234,420	243,740	236,286	248,757
	Cost of Risk in bp	30	24	34	18
Global Banking and Investor Solutions	Net Cost Of Risk	27	14	29	(8)
	Gross loan Outstandings	163,160	167,057	163,482	170,165
	Cost of Risk in bp	7	3	2	(1)
Mobility, International Retail Banking & Financial Services	Net Cost Of Risk	201	175	572	349
	Gross loan Outstandings	168,182	162,873	167,680	145,227
	Cost of Risk in bp	48	43	45	32
Corporate Centre	Net Cost Of Risk	(1)	(17)	(6)	(19)
	Gross loan Outstandings	25,121	22,681	24,356	19,364
	Cost of Risk in bp	(1)	(31)	(3)	(13)
Societe Generale Group	Net Cost Of Risk	406	316	1,192	664
	Gross loan Outstandings	590,882	596,350	591,804	583,512
	Cost of Risk in bp	27	21	27	15

The gross coverage ratio for doubtful outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“doubtful”).

5 – ROE, ROTE, RONE

The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on pages 43 and 44 of Societe Generale’s 2024 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity.
RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 44 of Societe Generale’s 2024 Universal Registration Document.
Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders if deeply subordinated notes and undated subordinated notes, issue premium amortisation”. For ROTE, income is also restated for goodwill impairment.
Details of the corrections made to the accounting equity in order to calculate ROE and ROTE for the period are given in the table below:

ROTE calculation: calculation methodology

End of period (in EURm)	Q3 24	Q3 23	9M 24	9M 23
Shareholders’ equity Group share	67,446	68,077	67,446	68,077
Deeply subordinated and undated subordinated notes	(8,955)	(11,054)	(8,955)	(11,054)
Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(45)	(102)	(45)	(102)
OCI excluding conversion reserves	560	853	560	853
Distribution provision⁽²⁾	(1,319)	(1,059)	(1,319)	(1,059)
Distribution N-1 to be paid	–	–	–	–
ROE equity end-of-period	57,687	56,715	57,687	56,715
Average ROE equity	57,368	56,572	56,896	56,326
Average Goodwill⁽³⁾	(4,160)	(4,279)	(4,079)	(3,991)
Average Intangible Assets	(2,906)	(3,390)	(2,933)	(3,128)
Average ROTE equity	50,302	48,903	49,884	49,207

Group net Income	1,367	295	3,160	2,063
Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation	(165)	(165)	(521)	(544)
Cancellation of goodwill impairment	–	338	–	338
Adjusted Group net Income	1,202	468	2,639	1,858
ROTE	9.6%	3.8%	7.1%	5.0%

¹⁵¹⁶¹⁷

RONE calculation: Average capital allocated to Core Businesses (in EURm)

In EURm	Q3 24	Q3 23	Change	9M 24	9M 23	Change
French Retail , Private Banking and Insurance	15,695	15,564	+0.8%	15,602	15,457	+0.9%
Global Banking and Investor Solutions	15,490	15,324	+1.1%	15,149	15,485	-2.2%
Mobility, International Retail Banking & Financial Services	10,433	10,136	+2.9%	10,425	9,505	+9.7%
Core Businesses	41,618	41,024	+1.4%	41,177	40,448	+1.8%
Corporate Center	15,750	15,548	+1.3%	15,719	15,878	-1.0%
Group	57,368	56,572	+1.4%	56,896	56,326	+1.0%

6 – Net assets and tangible net assets

Net assets and tangible net assets are defined in the methodology, page 45 of the Group’s 2024 Universal Registration Document. The items used to calculate them are presented below:
¹⁸¹⁹

End of period (in EURm)	9M 24	H1 24	2023
Shareholders’ equity Group share	67,446	66,829	65,975
Deeply subordinated and undated subordinated notes	(8,955)	(9,747)	(9,095)
Interest of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(45)	(19)	(21)
Book value of own shares in trading portfolio	97	96	36
Net Asset Value	58,543	57,159	56,895
Goodwill⁽²⁾	(4,178)	(4,143)	(4,008)
Intangible Assets	(2,895)	(2,917)	(2,954)
Net Tangible Asset Value	51,471	50,099	49,933

Number of shares used to calculate NAPS⁽³⁾	796,498	787,442	796,244
Net Asset Value per Share	73.5	72.6	71.5
Net Tangible Asset Value per Share	64.6	63.6	62.7

7 – Calculation of Earnings Per Share (EPS)

The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see page 44 of Societe Generale’s 2024 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE.
The calculation of Earnings Per Share is described in the following table:

Average number of shares (thousands)	9M 24	H1 24	2023
Existing shares	802,314	802,980	818,008
Deductions
Shares allocated to cover stock option plans and free shares awarded to staff	4,548	4,791	6,802
Other own shares and treasury shares	2,930	3,907	11,891
Number of shares used to calculate EPS⁽⁴⁾	794,836	794,282	799,315
Group net Income (in EUR m)	3,160	1,793	2,493
Interest on deeply subordinated notes and undated subordinated notes (in EUR m)	(521)	(356)	(759)
Adjusted Group net income (in EUR m)	2,638	1,437	1,735
EPS (in EUR)	3.32	1.81	2.17

²⁰
8 – The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 rules. The fully loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise. When there is reference to phased-in ratios, these do not include the earnings for the current financial year, unless specified otherwise. The leverage ratio is also calculated according to applicable CRR2/CRD5 rules including the phased-in following the same rationale as solvency ratios.

9 – Funded balance sheet, loan to deposit ratio

The funded balance sheet is based on the Group financial statements. It is obtained in two steps:

A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:

Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
Wholesale funding: Includes interbank liabilities and debt securities issued. Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.

A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.

The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.

NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
(2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website www.societegenerale.com in the “Investor” section.

Societe Generale

Societe Generale is a top tier European Bank with more than 126,000 employees serving about 25 million clients in 65 countries across the world. We have been supporting the development of our economies for nearly 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com. or visit our website societegenerale.com.

Asterisks* in the document refer to data at constant perimeter and exchange rates
1 +5.8% excluding exceptional proceeds recorded in Corporate Centre (~EUR 0.3bn)
2 Including IFRS 9 phasing, proforma including Q3 24 results
3 Based on a pay-out ratio of 50% of the Group net income, at the high-end of the 40%-50% pay-out ratio, as per regulation, restated from non-cash items and after deduction of interest on deeply subordinated notes and undated subordinated notes
4 As stated in Q2 24 results press release
5 Ratio calculated according to European Banking Authority (EBA) methodology published on 16 July 2019
⁶ Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5
⁷ Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
8 Target: -80% upstream exposure reduction by 2030 vs. 2019, with an intermediary step in 2025 at -50% vs. 2019
9 Only the Societe Generale participation is taken into account
10 Including IFRS 9 phasing, proforma including Q3 24 results
11 France and International, including Switzerland and United Kingdom
1 Including entities reported under IFRS 5
1 Excluding non-recurring items on either margins or UCS (mainly linked to fleet revaluation at EUR 114m in Q3 23 vs EUR 0m in Q3 24, the net impact related to prospective depreciation and Purchase Price Allocation for ~EUR 35m vs. Q3 23, hyperinflation in Turkey at EUR 46m in Q3 23 vs. EUR 10m in Q3 24 and MtM of derivatives at EUR -82m in Q3 23 vs. EUR -55m in Q3 24)
14 As stated in Q2 24 results press release
15 Interest net of tax
16 The dividend to be paid is calculated based on a pay-out ratio of 50%, restated from non-cash items and after deduction of interest on deeply subordinated notes and on undated subordinated notes
17 Excluding goodwill arising from non-controlling interests
18 Interest net of tax
19 Excluding goodwill arising from non-controlling interests
20 The number of shares considered is the number of ordinary shares outstanding at end of period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)
4 The number of shares considered is the average number of ordinary shares outstanding during the period, excluding treasury shares and buybacks, but including the trading shares held by the Group.

Attachment

Societe-Generale-Q3-2024-Financial-Results-Press-release-en

The MIL Network –

January 25, 2025

MIL-OSI: Šiaulių Bankas results for 9M 2024

Source: GlobeNewswire (MIL-OSI)

Profit. Šiaulių Bankas earned a net profit of €63.6 million
Return on capital. Achieved a return on equity (RoE) of 15.4%
Loan portfolio. New loan financing contract volumes grew by 8%, with the loan portfolio exceeding €3.4 billion
Asset quality. The quality of the loan portfolio remains strong – the cost of risk (CoR) of the loan portfolio was 0.31%
Net fee and commission income. Net fee and commission income amounted to €21.0 million, an increase of 44% compared to the same period last year
Capital and liquidity. Two successful bond issues of €300 million and €50 million in the international capital markets strengthened the bank’s capital and liquidity position
New dividend policy. Šiaulių Bankas commits to pay out at least 50% of the previous year’s net profit

“Šiaulių Bankas continues to maintain stable growth. We expanded our market share across all financing segments: the corporate financing portfolio grew, more new contracts were signed, and growth in the mortgage segment gained even stronger momentum. Net fee and commission income also increased, and we made a significant contribution to capital markets by issuing more bonds in the first three quarters than initially planned for the entire year.

We are focusing on another key area – capital efficiency. Šiaulių Bankas made its international debut with substantial bond issues, strengthening our capital and liquidity position. We have introduced a new dividend policy and are continuing our share buyback program, committed to increasing returns to shareholders while meeting the capital requirements outlined in our strategy,” says Vytautas Sinius, CEO of Šiaulių Bankas.

Šiaulių Bankas Group earned an unaudited net profit of €63.6 million in in the first three quarters of 2024, which is 3% less than in the corresponding period of 2023. Operating profit before impairment and income tax amounted to €85.4 million, an 8% decrease compared to operating profit of €93.1 million in the first three quarters of 2023.

Net interest income in the first three quarters of 2024 grew by 4% compared to the corresponding period of 2023 to €121.1 million, while net fee and commission income grew by 44% to €21.0 million.

All loan book segments grew in the first three quarters of the year, with the total loan portfolio increasing by 17% (€498 million) to €3.43 billion (growth of 8% or €241 million in Q3 alone). New credit agreements worth €1.3 billion were signed during the three quarters of the year, 29% more than in the corresponding period of 2023 (€1.0 billion).

The quality of the loan portfolio remains strong with provisions of €7.3 million made in the first three quarters of the year due to the strong portfolio growth and model adjustment, compared to provisions of €8.4 million in corresponding period of 2023. The cost of risk (CoR) of the loan portfolio for three quarters of 2024 was 0.31% (0.41% in corresponding period of 2023).

The deposit portfolio grew by 8% (€240 million) over the three quarter period and exceeded €3.4 billion at the end of September (growth of 2% or €78 million in Q3 alone). The bank’s funding structure was reinforced by a €300 million bond issue on the international market. After the quarter, in October, the bank issued an additional Tier 1 bond of €50 million, which strengthened its funding structure as well as capital structure. This will allow the bank to continue its rapid and sustainable growth and to implement its new dividend policy.

Šiaulių Bankas maintained a high level of operational efficiency – the group’s cost-to-income ratio in the three quarters of this year reaching 45.6%¹ (34.4%¹ in the corresponding period of 2023) and the return on equity of 15.4% achieved (18.9% in the three quarters of 2023). The capital and liquidity position remained strong and prudential ratios were met by a wide margin. The capital adequacy ratio (CAR) stood at 21.22%² and the liquidity coverage ratio (LCR) at 156.0%².

Income Statement (€’m)	2024 9M YTD		2023 9M YTD	% ∆

Net Interest Income	121.1	116.1		4%
Net Fee and Commission Income	21.0	14.6		44%
Other Income	24.9	13.6		84%
Total Revenue	167.0	144.3		*16%*

Salaries and Related Expenses	(35.4)	(25.5)		39%
Other Operating Expenses	(46.2)	(25.6)		80%
Total Operating Expenses	(81.6)	(51.1)		*59%*

Operating Profit	85.4	93.1		*(8%)*
Provisions	(6.9)	(8.5)		(18%)
Income Tax Expense	(14.9)	(19.0)		(22%)

Net Profit	63.6	65.7		*(3%)*

Balance Sheet Metrics (€’m)	2024-09-30	2023-12-31		% ∆

Loan Portfolio	3,429	2,932		17%
Total Assets	4,944	4,809		3%
Deposits	3,419	3,178		8%
Equity	577	543		6%

Assets under Management³	1,870	1,556		20%
Assets under Custody	1,862	1,943		-4%

KPIs	2024 9M YTD	2023 9M YTD		∆

Net Interest Margin (NIM)	3.6%	4.3%		-73bps
Cost-to-Income Ratio (C/I)¹	45.6%	34.4%		+1125bps
Return on Equity (RoE)	15.4%	18.9%		-357bps
Cost of Risk (CoR)	0.3%	0.4%		-10bps
Capital Adequacy Ratio (CAR)²	21.22%	21.34%		-12bps

Overview of Business Segments

Corporate Client Segment

The business loan portfolio grew by 24% year-on-year, driven by an increase in new lending volumes in the first 9 months of the year to €854 million, or 45% compared to the corresponding period last year. In the Q3 alone, the total amounted to €393 million. Since the beginning of the year, the portfolio has grown by €0.3 billion to over €1.8 billion.

This underlines the favourable business environment in key strategic sectors including energy, manufacturing and retail. Šiaulių Bankas also further strengthens its commitment to green projects by financing a 29.5 MWh wind farm in western Lithuania, boosting the region’s economic growth and further diversifying its loan portfolio.

Private Client Segment

Lending activity in the retail segment increased significantly. New mortgage loans signed in the first nine months of 2024 amounted to €187 million and increased by 39% compared to the same period last year. Since the beginning of the year, the total portfolio of housing loans has grown by 16% (€127 million) to over €0.9 billion.

New consumer loans totaling €191 million were issued in the first nine months of the year, up 12% compared to the same period last year. Since the beginning of the year, the consumer loan portfolio has grown by 21% (€61 million), reaching €0.35 billion.

Šiaulių Bankas continues to prepare for a growth phase in retail banking segment. Along with implementing new core banking platform, preparations are being made for an active sales promotion phase: the number of direct marketing consents is growing, a new CRM system is being implemented, sales processes are being optimised and the competences of employees are being strengthened.

Investment Client Segment

In the first nine months of 2024, the volume of new bond issues reached €185 million, up 16% year-on-year, reflecting consistent investor interest and growing confidence in the bank’s financial products. In the third quarter of the year alone, due to the seasonality of the capital markets, new bond issues amounted to € 31 million.

In Q3, the Bank also introduced a new option for investors to buy bonds through the Bank’s securities platform. This is an opportunity for customers to acquire bonds conveniently and quickly on their own online.

Assets managed by SB Asset Management, the asset management company of Šiaulių Bankas Group, reached €1.38 billion at the end of Q3 2024 and increased by almost €200 million this year. Most of this increase was driven by the return on investment of the funds under management, which generated a profit of €142 million for clients.

Pension funds managed by SB Asset Management maintain competitive performance in both the short and long term. In the Q3 of the year alone, the returns of Tier II pension funds were the highest in 7 out of 8 life cycle funds, and the 4-year performance of the funds was the best in 6 out of 8 life cycle funds, compared to other managers’ funds in the same age group.

¹ eliminating the impact of the client portfolio if SB draudimas
² preliminary data
³includes Asset Management and Modernisation Funds AuM

Šiaulių Bankas invites shareholders, investors, analysts and all interested parties to a webinar presentation of the financial results and highlights for the second quarter of 2024. The webinar will start on 31 October 2024 at 8.30 am (EET). The webinar will be held in English. Please register here. Please find attached the information that will be presented at the webinar.

If you would like to receive Šiaulių Bankas’ news for investors directly to your inbox, subscribe to our newsletter.

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

Attachments

The MIL Network –

January 25, 2025

MIL-OSI: STMicroelectronics Reports 2024 Third Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

PR No: C3290C

STMicroelectronics Reports 2024 Third Quarter Financial Results

Q3 net revenues $3.25 billion; gross margin 37.8%; operating margin 11.7%; net income $351 million
YTD net revenues $9.95 billion; gross margin 39.9%; operating margin 13.1%; net income $1.22 billion
Business outlook at mid-point: Q4 net revenues of $3.32 billion and gross margin of 38%
Launch of a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm Silicon and 200mm Silicon Carbide and resizing our global cost base

Geneva, October 31, 2024 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the third quarter ended September 28, 2024. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported third quarter net revenues of $3.25 billion, gross margin of 37.8%, operating margin of 11.7%, and net income of $351 million or $0.37 diluted earnings per share.

Jean-Marc Chery, ST President & CEO, commented:

“Q3 net revenues were in line with the midpoint of our business outlook range. Our revenues, compared to our expectations, were higher in Personal Electronics, declined less in Industrial and were lower in Automotive. Q3 gross margin of 37.8% was broadly in line with the mid-point of our business outlook range.”
“First nine months net revenues decreased 23.5% year-over-year across all reportable segments, particularly in Microcontrollers, which is impacted by a continuing weakness in the Industrial market. Operating margin was 13.1% and net income was $1.22 billion.”
“Our fourth quarter business outlook, at the mid-point, is for net revenues of $3.32 billion, decreasing year-over-year by 22.4% and increasing sequentially by 2.2%; gross margin is expected to be about 38%, impacted by about 400 basis points of unused capacity charges.”
“The midpoint of this outlook translates into full year 2024 revenues of about $13.27 billion, representing a 23.2% year-over-year decrease, in the low-end of the range indicated in the previous quarter, and a gross margin slightly below that provided in such indication.”
“Based on our current customer order backlog and demand visibility, we anticipate a revenue decline between Q4 2024 and Q1 2025 well above normal seasonality.”
“We are launching a new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capacity to 300mm Silicon (Agrate and Crolles) and 200mm Silicon Carbide (Catania) and resizing our global cost base. This program should result in strengthening our capability to grow our revenues with an improved operating efficiency resulting in annual cost savings in the high triple-digit million-dollar range exiting 2027.”

Quarterly Financial Summary (U.S. GAAP)

(US$ m, except per share data)	Q3 2024	Q2 2024	Q3 2023	Q/Q	Y/Y
Net Revenues	$3,251	$3,232	$4,431	0.6%	-26.6%
Gross Profit	$1,228	$1,296	$2,109	-5.2%	-41.8%
Gross Margin	37.8%	40.1%	47.6%	-230 bps	-980 bps
Operating Income	$381	$375	$1,241	1.8%	-69.3%
Operating Margin	11.7%	11.6%	28.0%	10 bps	-1,630 bps
Net Income	$351	$353	$1,090	-0.6%	-67.8%
Diluted Earnings Per Share	$0.37	$0.38	$1.16	-2.6%	-68.1%

Third Quarter 2024 Summary Review

Reminder: On January 10, 2024, ST announced a new organization which implied a change in segment reporting starting Q1 2024. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.

Net Revenues by Reportable Segment (US$ m)	Q3 2024	Q2 2024	Q3 2023	Q/Q	Y/Y
Analog products, MEMS and Sensors (AM&S) segment	1,185	1,165	1,367	1.7%	-13.3%
Power and discrete products (P&D) segment	807	747	989	7.9%	-18.4%
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group	1,992	1,912	2,356	4.2%	-15.5%
Microcontrollers (MCU) segment	829	800	1,466	3.6%	-43.4%
Digital ICs and RF Products (D&RF) segment	426	516	605	-17.4%	-29.7%
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group	1,255	1,316	2,071	-4.6%	-39.4%
Others	4	4	4	–	–
Total Net Revenues	3,251	3,232	4,431	0.6%	-26.6%

Net revenues totaled $3.25 billion, representing a year-over-year decrease of 26.6%. Year-over-year net sales to OEMs and Distribution decreased 17.5% and 45.4%, respectively. On a sequential basis, net revenues increased 0.6%, in line with the mid-point of ST’s guidance.

Gross profit totaled $1.23 billion, representing a year-over-year decrease of 41.8%. Gross margin of 37.8%, 20 basis points below the mid-point of ST’s guidance, decreased 980 basis points year-over-year, mainly due to product mix and, to a lesser extent, to sales price and higher unused capacity charges.

Operating income decreased 69.3% to $381 million, compared to $1.24 billion in the year-ago quarter. ST’s operating margin decreased 1,630 basis points on a year-over-year basis to 11.7% of net revenues, compared to 28.0% in the third quarter of 2023.

By reportable segment¹, compared with the year-ago quarter:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:

Analog products, MEMS and Sensors (AM&S) segment:

Revenue decreased 13.3% mainly due to decreases in Imaging and in Analog.
Operating profit decreased by 41.2% to $175 million. Operating margin was 14.8% compared to 21.8%.

Power and Discrete products (P&D) segment:

Revenue decreased 18.4%.
Operating profit decreased by 54.0% to $121 million. Operating margin was 15.0% compared to 26.5%.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

Microcontrollers (MCU) segment:

Revenue decreased 43.4% mainly due to a decrease in GP MCU.
Operating profit decreased by 78.2% to $116 million. Operating margin was 14.0% compared to 36.4%.

Digital ICs and RF products (D&RF) segment:

Revenue decreased 29.7% mainly due to a decrease in ADAS (automotive ADAS and infotainment).
Operating profit decreased by 49.5% to $114 million. Operating margin was 26.8% compared to 37.3%.

Net income and diluted Earnings Per Share decreased to $351 million and $0.37 respectively compared to $1.09 billion and $1.16 respectively in the year-ago quarter.

Cash Flow and Balance Sheet Highlights

				Trailing 12 Months
(US$ m)	Q3 2024	Q2 2024	Q3 2023	Q3 2024	Q3 2023	TTM Change
Net cash from operating activities	723	702	1,881	3,764	6,062	-37.9%
Free cash flow (non-U.S. GAAP)²	136	159	707	813	1,725	-52.9%

Net cash from operating activities was $723 million in the third quarter compared to $1.88 billion in the year-ago quarter.

Net Capex (non-U.S. GAAP) was $565 million in the third quarter compared to $1.15 billion in the year-ago quarter.

Free cash flow (non-U.S. GAAP) was $136 million in the third quarter, compared to $707 million in the year-ago quarter.

Inventory at the end of the third quarter was $2.88 billion, compared to $2.81 billion in the previous quarter and $2.87 billion in the year-ago quarter. Days sales of inventory at quarter-end was 130 days, similar to the previous quarter, and compared to 114 days in the year-ago quarter.

In the third quarter, ST paid cash dividends to its stockholders totaling $80 million and executed a $92 million share buy-back, as part of its current share repurchase program.

ST’s net financial position (non-U.S. GAAP) was $3.18 billion as of September 28, 2024, compared to $3.20 billion as of June 29, 2024 and reflected total liquidity of $6.30 billion and total financial debt of $3.12 billion. Adjusted net financial position (non-U.S. GAAP), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.82 billion as of September 28, 2024.

Corporate developments

Since the beginning of 2024, ST has made significant changes in the way it is structured and operates, including the re-organization of its Product Groups. Since October 1, 2024, Lorenzo Grandi, President and CFO, has taken additional responsibilities, with a perimeter now also covering Supply Chain, Corporate Development and Integrated External Communication in addition to Finance, Global Procurement, Digital Transformation and Information Technology, Enterprise Risk Management and Resilience. ST’s Executive Committee remains unchanged and continues to report to Jean-Marc Chery, ST President and CEO.

Business Outlook

ST’s guidance, at the mid-point, for the 2024 fourth quarter is:

Net revenues are expected to be $3.32 billion, an increase of 2.2% sequentially, plus or minus 350 basis points.
Gross margin of 38%, plus or minus 200 basis points.
This outlook is based on an assumed effective currency exchange rate of approximately $1.11 = €1.00 for the 2024 fourth quarter and includes the impact of existing hedging contracts.
The fourth quarter will close on December 31, 2024.

Conference Call and Webcast Information

ST will conduct a conference call with analysts, investors and reporters to discuss its third quarter 2024 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 4:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST’s website, https://investors.st.com, and will be available for replay until November 15, 2024.

2024 Capital Markets Day

ST will conduct a live webcast of its 2024 Capital Markets Day meeting from Paris, France, on Wednesday, November 20, 2024, from 9:00 a.m. to 1:15 p.m. Central European Time (CET) / 3:00 a.m. to 7:15 a.m. U.S. Eastern Time (ET). The live webcast featuring video, audio and presentation slides will be accessible at ST’s website, https://investors.st.com. Copies of the presentations and a recording of the event will be made available at https://investors.st.com.

Use of Supplemental Non-U.S. GAAP Financial Information

This press release contains supplemental non-U.S. GAAP financial information.

Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST’s consolidated financial statements prepared in accordance with U.S. GAAP.

See the Appendix of this press release for a reconciliation of ST’s non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.

Forward-looking Information

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:

changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products;
uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;
customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all;
the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macroeconomic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities;
unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;
financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;
availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);
the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;
theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;
the impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate;
increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral by 2027 on scope 1 and 2 and partially scope 3;
epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results;
industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; and
the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations.

Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2023 as filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our Securities and Exchange Commission (“SEC”) filings, could have a material adverse effect on our business and/or financial condition.

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.

For further information, please contact:

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

STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))

	Three months ended
	September 28,	September 30,
	2024	2023
	(Unaudited)	(Unaudited)

Net sales	3,245	4,416
Other revenues	6	15
NET REVENUES	3,251	4,431
Cost of sales	(2,023)	(2,322)
GROSS PROFIT	1,228	2,109
Selling, general and administrative expenses	(385)	(407)
Research and development expenses	(492)	(519)
Other income and expenses, net	30	58
Total operating expenses	(847)	(868)
OPERATING INCOME	381	1,241
Interest income, net	55	44
Other components of pension benefit costs	(4)	(5)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST	432	1,280
Income tax expense	(71)	(188)
NET INCOME	361	1,092
Net income attributable to noncontrolling interest	(10)	(2)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	351	1,090

EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.39	1.20
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.37	1.16

NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS	938.6	943.8

STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))

	Nine months ended
	September 28,	September 30,
	2024	2023
	(Unaudited)	(Unaudited)

Net sales	9,915	12,977
Other revenues	32	27
NET REVENUES	9,947	13,004
Cost of sales	(5,980)	(6,666)
GROSS PROFIT	3,967	6,338
Selling, general and administrative expenses	(1,229)	(1,215)
Research and development expenses	(1,554)	(1,579)
Other income and expenses, net	123	44
Total operating expenses	(2,660)	(2,750)
OPERATING INCOME	1,307	3,588
Interest income, net	166	114
Other components of pension benefit costs	(12)	(14)
Loss on financial instruments, net	(1)	–
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST	1,460	3,688
Income tax expense	(231)	(547)
NET INCOME	1,229	3,141
Net income attributable to noncontrolling interest	(13)	(6)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	1,216	3,135

EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	1.35	3.47
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	1.29	3.32

NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS	940.2	944.7


STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at	September 28,	June 29,	December 31,
In millions of U.S. dollars	2024	2024	2023
	(Unaudited)	(Unaudited)	(Audited)
ASSETS
Current assets:
Cash and cash equivalents	3,077	3,092	3,222
Short-term deposits	977	975	1,226
Marketable securities	2,242	2,218	1,635
Trade accounts receivable, net	1,730	1,708	1,731
Inventories	2,875	2,810	2,698
Other current assets	1,062	1,066	1,295
Total current assets	11,963	11,869	11,807
Goodwill	303	296	303
Other intangible assets, net	354	353	367
Property, plant and equipment, net	11,258	10,869	10,554
Non-current deferred tax assets	547	575	592
Long-term investments	20	20	22
Other non-current assets	1,071	924	808
	13,553	13,037	12,646
Total assets	25,516	24,906	24,453

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	1,003	236	217
Trade accounts payable	1,585	1,577	1,856
Other payables and accrued liabilities	1,327	1,344	1,525
Dividends payable to stockholders	177	257	54
Accrued income tax	116	131	78
Total current liabilities	4,208	3,545	3,730
Long-term debt	2,112	2,850	2,710
Post-employment benefit obligations	397	375	372
Long-term deferred tax liabilities	60	37	54
Other long-term liabilities	935	951	735
	3,504	4,213	3,871
Total liabilities	7,712	7,758	7,601
Commitment and contingencies
Equity
Parent company stockholders’ equity
Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized, 911,281,920 shares issued, 901,550,639 shares outstanding as of September 28, 2024)	1,157	1,157	1,157
Additional Paid-in Capital	3,032	2,985	2,866
Retained earnings	13,118	12,813	12,470
Accumulated other comprehensive income	657	421	613
Treasury stock	(400)	(354)	(377)
Total parent company stockholders’ equity	17,564	17,022	16,729
Noncontrolling interest	240	126	123
Total equity	17,804	17,148	16,852
Total liabilities and equity	25,516	24,906	24,453


STMicroelectronics N.V.

SELECTED CASH FLOW DATA

Cash Flow Data (in US$ millions)	Q3 2024	Q2 2024	Q3 2023

Net Cash from operating activities	723	702	1,881
Net Cash used in investing activities	(601)	(628)	(1,756)
Net Cash from (used in) financing activities	(142)	(112)	(223)
Net Cash decrease	(15)	(41)	(100)

Selected Cash Flow Data (in US$ millions)	Q3 2024	Q2 2024	Q3 2023

Depreciation & amortization	440	439	396
Net payment for Capital expenditures	(601)	(546)	(1,152)
Dividends paid to stockholders	(80)	(73)	(58)
Change in inventories, net	(17)	(136)	147

Appendix
ST
New organization

On January 10, 2024, ST announced a new organization to deliver enhanced product development innovation and efficiency, time-to-market as well as customer focus by end market. This new organization implies a change in segment reporting which is applied from January 1, 2024.

ST moved from three reportable segments (ADG, AMS and MDG) to four reportable segments as follows:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
- Analog products, MEMS and Sensors (AM&S) segment, comprised of ST analog products, MEMS sensors and actuators, and optical sensing solutions.
- Power and Discrete products (P&D) segment comprised of discrete and power transistor products.

In this Press Release, “Analog” refers to ST analog products, “MEMS” to MEMS sensors and actuators and “Imaging” to optical sensing solutions.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
- Microcontrollers (MCU) segment, comprised of general-purpose and automotive microcontrollers, microprocessors and connected security products (including EEPROM).
- Digital ICs and RF Products (D&RF) segment, comprised of automotive ADAS, infotainment, RF and communications products.

In this Press release, “Auto MCU” refers to Automotive microcontrollers and microprocessors, “GP MCU” to general purpose microcontrollers and microprocessors, “Connected Security” to connected security products (including EEPROM), “ADAS” to automotive ADAS and infotainment, “RF Communications” to RF and communications products.

Prior year quarters comparative information has been adjusted accordingly.

(Appendix – continued)
ST
Supplemental Financial Information

	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023
Net Revenues By Market Channel (%)
Total OEM	76%	73%	70%	70%	67%
Distribution	24%	27%	30%	30%	33%

€/$ Effective Rate	1.08	1.08	1.09	1.08	1.09

Reportable Segment Data (US$ m)
Analog products, MEMS and Sensors (AM&S) segment
– Net Revenues	1,185	1,165	1,217	1,418	1,367
– Operating Income	175	144	185	300	298
Power and Discrete products (P&D) segment
– Net Revenues	807	747	820	965	989
– Operating Income	121	110	138	245	262
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group
– Net Revenues	1,992	1,912	2,037	2,383	2,356
– Operating Income	296	254	323	545	560
Microcontrollers (MCU) segment
– Net Revenues	829	800	950	1,272	1,466
– Operating Income	116	72	185	378	534
Digital ICs and RF Products (D&RF) segment
– Net Revenues	426	516	475	623	605
– Operating Income	114	150	150	223	226
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group
– Net Revenues	1,255	1,316	1,425	1,895	2,071
– Operating Income	230	222	335	601	760
Others ^(a)
– Net Revenues	4	4	3	4	4
– Operating Income (Loss)	(145)	(101)	(107)	(123)	(79)
Total
– Net Revenues	3,251	3,232	3,465	4,282	4,431
– Operating Income	381	375	551	1,023	1,241

^(a)Net revenues of Others include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment and restructuring charges, management reorganization costs, start-up and phase out costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, as well as operating earnings of other products. Others includes:

(US$ m)	*Q3 2024*	*Q2 2024*	*Q1 2024*	*Q4 2023*	*Q3 2023*
*Unused capacity charges*	*104*	84	63	57	46

(Appendix – continued)
ST
Supplemental Non-U.S. GAAP Financial Information
U.S. GAAP – Non-U.S. GAAP Reconciliation

The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.

ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST’s U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST’s on-going operating results, (ii) the ability to better identify trends in ST’s business and perform related trend analysis, and (iii) to facilitate a comparison of ST’s results of operations against investor and analyst financial models and valuations, which may exclude these items.

Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)

Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. Starting Q4 2023, ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet. Reporting periods prior to Q4 2023 are not impacted.

ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.

(US$ m)	Sep 28 2024	June 29 2024	Mar 30 2024	Dec 31 2023	Sep 30 2023
Cash and cash equivalents	3,077	3,092	3,133	3,222	3,011
Short term deposits	977	975	1,226	1,226	506
Marketable securities	2,242	2,218	1,880	1,635	1,537
Total liquidity	6,296	6,285	6,239	6,083	5,054
Short-term debt	(1,003)	(236)	(238)	(217)	(173)
Long-term debt ^(a)	(2,112)	(2,850)	(2,875)	(2,710)	(2,418)
Total financial debt	(3,115)	(3,086)	(3,113)	(2,927)	(2,591)
Net Financial Position	3,181	3,199	3,126	3,156	2,463
Advances received on capital grants	(366)	(402)	(351)	(152)	–
Adjusted Net Financial Position	2,815	2,797	2,775	3,004	2,463

^(a)Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $701 million equivalent, are currently undrawn.

(Appendix – continued)

Net Capex and Free Cash Flow (non-U.S. GAAP measures)

ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-US GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period.

Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period.

ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies.

(US$ m)	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023
Payment for purchase of tangible assets, as reported	(669)	(690)	(1,145)	(1,076)	(1,158)
Proceeds from sale of tangible assets, as reported	2	1	2	–	1
Proceeds from capital grants and other contributions, as reported	66	143	149	278	5
Advances from capital grants allocated to property, plant and equipment	36	18	27	–	–
Net Capex	(565)	(528)	(967)	(798)	(1,152)

Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.

ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.

Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies.

(US$ m)	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023
Net cash from operating activities	723	702	859	1,480	1,881
Net Capex	(565)	(528)	(967)	(798)	(1,152)
Payment for purchase of intangible assets, net of proceeds from sale	(20)	(15)	(26)	(28)	(22)
Payment for purchase of financial assets, net of proceeds from sale	(2)	–	–	(2)	–
Free Cash Flow	136	159	(134)	652	707

¹See Appendix for the definition of reportable segments.

²Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why ST believes these measures are important.

Attachment

C3290C – Q324 Earnings PR – Oct 30 2024

The MIL Network –

January 25, 2025

MIL-OSI: Flow Traders 3Q 2024 Trading Update

Source: GlobeNewswire (MIL-OSI)

Flow Traders 3Q 2024 Trading Update

Amsterdam, the Netherlands – Flow Traders Ltd. (Euronext: FLOW) announces its unaudited 3Q 2024 trading update.

Highlights

Flow Traders recorded Net Trading Income of €107.3m and Total Income of €114.6m in 3Q24, compared to €67.6m and €67.7m, respectively, in 3Q23.
Flow Traders’ ETP Value Traded increased 9% in 3Q24 when compared to the same period last year.
Total Operating Expenses were €64.0m in 3Q24, compared to €55.3m in 3Q23, with Fixed Operating Expenses of €45.3m in the quarter, compared to €47.6m in 3Q23 (including one-off expenses).
EBITDA was €50.5m in 3Q24, generating an EBITDA margin of 44%, compared to €12.4m and 18%, respectively, in 3Q23.
Net Profit was €37.5m in 3Q24, yielding a basic EPS of €0.87, compared to a Net Profit of €6.3m and EPS of €0.15 in 3Q23.
Trading capital stood at €668m at the end of 3Q24 and generated a 58% return on trading capital¹, compared to €624m and 56% in 2Q24.
Shareholders’ equity was €666m at the end of 3Q24, compared to €638m at the end of 2Q24.
Flow Traders employed 646 FTEs at the end of 3Q24, compared to 635 at the end of 2Q24.

Financial Overview

€million	3Q24	3Q23	Change	YTD24	YTD23	Change
Net trading income	107.3	67.6	59%	313.9	227.6	38%
Other income	7.2	0.1		6.4	2.0
Total income	114.6	67.7	69%	320.4	229.6	40%
Revenue by region²
Europe	70.2	33.6	109%	187.2	125.2	50%
Americas	20.8	22.0	(5%)	75.5	64.1	18%
Asia	23.6	12.1	96%	57.7	40.3	43%
Employee expenses
Fixed employee expenses	20.4	19.3	6%	61.5	58.5	5%
Variable employee expenses	18.8	7.7	143%	53.7	35.8	50%
Technology expenses	17.2	15.8	8%	49.7	49.1	1%
Other expenses	7.7	11.5	(33%)	22.4	26.0	(14%)
One-off expenses³	0.0	1.0	(100%)	0.0	4.3	(100%)
Total operating expenses	64.0	55.3	16%	187.4	173.8	8%
EBITDA	50.5	12.4	309%	133.0	55.8	138%
Interest Expense	0.5	0.0		0.6	0.0
Depreciation & amortisation	4.1	4.5	(8%)	12.8	14.1	(9%)
Profit/(loss) on equity-accounted investments	(1.3)	0.2	(614%)	(1.9)	(4.4)	(57%)
Profit before tax	44.7	8.1	450%	117.7	37.2	216%
Tax expense	7.1	1.8	294%	21.2	7.9	170%
Net profit	37.5	6.3	495%	96.4	29.3	228%
Basic EPS⁴ (€)	0.87	0.15	498%	2.23	0.68	228%
Fully diluted EPS⁵ (€)	0.85	0.14	507%	2.18	0.65	236%
EBITDA margin	44%	18%		42%	24%

Revenue by Region

€million	1Q23	2Q23	3Q23	4Q23	1Q24	2Q24	3Q24
Europe	58.5	33.1	33.6	42.6	68.4	48.6	70.2
Americas	32.8	9.3	22.0	18.1	41.3	13.4	20.8
Asia	19.2	9.0	12.1	13.6	19.9	14.2	23.6

Value Traded Overview

€billion	3Q24	3Q23	Change	YTD24	YTD23	Change
Flow Traders ETP Value Traded	365	334	9%	1,121	1,089	3%
Europe	161	127	26%	460	467	(1%)
Americas	177	181	(2%)	583	551	6%
Asia	28	26	8%	78	71	9%
Flow Traders non-ETP Value Traded	1,192	994	20%	3,470	3,041	14%
Flow Traders Value Traded	1,557	1,328	17%	4,591	4,130	11%
Equity	835	723	15%	2,408	2,248	7%
Fixed income	225	253	(11%)	706	865	(18%)
Currency, Crypto, Commodity	440	303	45%	1,327	890	49%
Other	57	49	18%	150	127	18%
Market ETP Value Traded⁶	11,748	10,146	16%	34,741	31,367	11%
Europe	612	446	37%	1,790	1,482	21%
Americas	9,536	8,301	15%	28,590	25,997	10%
Asia	1,600	1,399	14%	4,361	3,888	12%
Asia ex China	555	457	22%	1,438	1,195	20%

Trading Capital

	4Q22	1Q23	2Q23	3Q23	4Q23	1Q24	2Q24	3Q24
Trading Capital (€m)	651	647	574	585	584	609	624	668
Return on Trading Capital¹	71%	65%	67%	59%	51%	52%	56%	58%
Average VIX⁷	25.4	21.0	16.7	15.1	15.4	13.9	14.2	17.1

Market Environment

Europe

Equity trading volumes in the quarter increased when compared to the same period a year ago but declined when compared to last quarter. Market volatility, on average, was roughly flat compared to the same period a year ago and increased compared to last quarter.

Fixed Income trading volumes increased compared to the same period a year ago but declined compared to last quarter.

Americas

Equity trading volumes in the U.S. increased when compared to the same period a year ago but declined when compared to last quarter. Market volatility in the U.S. increased when compared to the same period a year ago as well as last quarter.

Fixed Income trading volumes in the U.S. increased both when compared to the same period a year ago as well as last quarter. Volatility declined when compared to the same period a year ago but increased when compared to last quarter.

Asia

Equity trading volumes in Asia increased across the region (Japan, Hong Kong, and China) both when compared to the same period a year ago as well as last quarter. Market volatility was mixed across the region as volatility increased both year-on-year and quarter-on-quarter in Japan but declined both year-on-year and quarter-on-quarter in Hong Kong and China.

Digital Assets

Within Digital Assets, which trades across regions on a 24/7 basis, trading volumes in Bitcoin (the barometer of the industry) declined when compared to the same period a year ago but increased compared to last quarter. Volatility, as indicated by the BitVol index, remains higher than the same period a year ago but declined when compared to last quarter.

Trading Capital Expansion Plan

In recent years, Flow Traders has successfully diversified its core trading model across different asset classes and geographies, which resulted in increased optionality for the business. The Board sees a range of emerging opportunities to accelerate growth for the firm by systematically expanding its trading capital base.

At the last results update, the Board declared a suspension of the dividend and announced a €25 million bank term loan as the first steps in boosting the firm’s trading capital. The additional capital immediately helped increase the capacity of the firm to capture the opportunities that arose during early August given the significant spike in volatility and dislocation across financial markets around the world. Looking ahead, the Board will look for the most economical debt financing options to further expand the firm’s trading capital to accelerate the firm’s growth.

Completion of Share Buyback Program

€2.2m worth of shares were repurchased during the quarter. This completes the €15m share buyback extension program originally announced on 27 October 2022, of which the period of execution was announced on 28 July 2023 to be extended by 12 months to 26 October 2024. The total number of shares purchased under the program was 850,882 shares, with an average price of €17.63, and represents 1.9% of total outstanding shares.

Outlook

Fixed operating expenses guidance for the year remains unchanged and is expected to be in the same range as FY23 as headcount is expected to be roughly flat for the year, offset by continued technology investments and inflationary pressures.

CEO Statement

Mike Kuehnel, CEO
“Following the strategic decision to accelerate the expansion of our trading capital base last quarter, we successfully demonstrated the validity of our growth and diversification strategy and capital expansion plan by delivering another triple-digit NTI quarter. This is the second time this year and the best third quarter result in the company’s 20-year history. The additional capital, following the suspension of the firm’s dividend payments and the addition of a bank term loan, coupled with the increase in volatility, enabled us to deliver a 58% return on trading capital in the quarter. The ability to effectively capture the opportunities that arose during the sudden, but short-lived, spike in volatility in early August across financial markets globally demonstrated the continued robustness of our trading strategies and further validates our growth and diversification strategy.

During the third quarter, market trading volumes increased when compared to the same period a year ago but were flat-to-down when compared to the second quarter. However, volatility levels increased given the macroeconomic uncertainties, the geopolitical turmoil around the world and the unexpected changes in central bank interest rate policies, which resulted in sudden and unexpected asset rotations. The quick but widespread nature of these asset movements resulted in temporary price dislocations that we were able to capture, while continuing to provide stability and liquidity to the financial markets we operate in. With pockets of opportunities coming from different segments of the market throughout the year so far (e.g. Digital Assets in 1Q, EMEA Equities in 2Q, and EMEA and APAC Equities in 3Q), the strategic investments we made over the years to diversify our business across different regions and asset classes continue to yield strong results.

As we continue to invest in new trading capabilities, we will also look to leverage these capabilities by enhancing our proprietary technology stack. With Owain, our new CTO, on board, we are excited about advancements in our technological capabilities, particularly around the quantitative insights to be gained from the treasure trove of data available to us. These new technological initiatives can help us with further improving our pricing and hedging competence to capture more opportunities across the markets we trade in. They are on top of the firm-wide streamlining and automation work that continues in the background to systematically improve efficiency and strengthen our core operations as the firm continues to grow and scale.

We believe this is a pivotal time for Flow Traders. With a unique combination of our trading talent and technology infrastructure, the opportunity set we see across all financial markets globally, and our recently announced trading capital expansion plan, we are excited about driving the company into the next phase of its growth.”

Preliminary Financial Calendar

13 February 2025 Release of 4Q24 and FY24 financial results

Analyst Conference Call and Webcast

The 3Q24 results analyst conference call will be held at 10:00 am CET on Thursday 31 October 2024. The presentation can be downloaded at https://www.flowtraders.com/investors/results-centre and the conference call can be followed via a listen-only audio webcast. A replay of the conference call will be available on the company website for at least 90 days.

Contact Details

Flow Traders Ltd.

Investors
Eric Pan
Phone: +31 20 7996799
Email: investor.relations@flowtraders.com

Media
Laura Peijs
Phone: +31 20 7996799
Email: press@flowtraders.com

About Flow Traders

Flow Traders is a leading trading firm providing liquidity in multiple asset classes, covering all major exchanges. Founded in 2004, Flow Traders is a leading global ETP market marker and has leveraged its expertise in trading ETPs to expand into fixed income, commodities, digital assets and FX. Flow Traders’ role in financial markets is to ensure the availability of liquidity and enabling investors to continue to buy or sell financial instruments under all market circumstances, thereby ensuring markets remain resilient and continue to function in an orderly manner. In addition to its trading activities, Flow Traders has established a strategic investment unit focused on fostering market innovation and aligned with our mission to bring greater transparency and efficiency to the financial ecosystem. With nearly two decades of experience, we have built a team of over 600 talented professionals, located globally, contributing to the firm’s entrepreneurial culture and delivering the company’s mission.

Notes

Return on trading capital defined as LTM NTI divided by end of period trading capital.
Revenue by region includes NTI, Other Income, and inter-company revenue.
One-off expenses related to the completed corporate holding structure update and capital structure review work.
Weighted average shares outstanding: 3Q24 – 43,095,744; 2Q24 – 43,270,311; 3Q23 – 43,293,467.
Determined by adjusting the basic EPS for the effects of all dilutive share-based payments to employees.
Source – Flow Traders analysis.
Starting in 3Q24, average VIX is calculated as the average of VIX daily closing prices.

Important Legal Information

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Efficiencies are net, before tax and on a run-rate basis, i.e. taking into account the full-year impact of any measure to be undertaken before the end of the period mentioned. The expected operating efficiencies and cost savings were prepared on the basis of a number of assumptions, projections and estimates, many of which depend on factors that are beyond Flow Traders’ control. These assumptions, projections and estimates are inherently subject to significant uncertainties and actual results may differ, perhaps materially, from those projected. Flow Traders cannot provide any assurance that these assumptions are correct and that these projections and estimates will reflect Flow Traders’ actual results of operations.

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Market Abuse Regulation

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Attachment

3Q24 Trading Update Press Release

The MIL Network –

January 25, 2025

MIL-OSI: SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Source: GlobeNewswire (MIL-OSI)

SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS



SUMMARY OF UNAUDITED RESULTS
Quarters				$ million		Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		Reference	2024	2023	%
4,291	3,517	7,044	+22	Income/(loss) attributable to Shell plc shareholders		15,166	18,887	-20
6,028	6,293	6,224	-4	Adjusted Earnings	A	20,055	20,944	-4
16,005	16,806	16,336	-5	Adjusted EBITDA	A	51,523	52,204	-1
14,684	13,508	12,332	+9	Cash flow from operating activities		41,522	41,622	—
(3,857)	(3,338)	(4,827)		Cash flow from investing activities		(10,723)	(12,080)
10,827	10,170	7,505		Free cash flow	G	30,799	29,542
4,950	4,719	5,649		Cash capital expenditure	C	14,161	17,280
9,570	8,950	10,097	+7	Operating expenses	F	27,517	29,062	-5
8,864	8,651	9,735	+2	Underlying operating expenses	F	26,569	28,635	-7
12.8%	12.8%	13.9%		ROACE2	D	12.8%	13.9%
76,613	75,468	82,147		Total debt	E	76,613	82,147
35,234	38,314	40,470		Net debt	E	35,234	40,470
15.7%	17.0%	17.3%		Gearing	E	15.7%	17.3%
2,801	2,817	2,706	-1	Oil and gas production available for sale (thousand boe/d)		2,843	2,779	+2
0.69	0.55	1.06	+25	Basic earnings per share ($)		2.39	2.78	-14
0.96	0.99	0.93	-3	Adjusted Earnings per share ($)	B	3.16	3.08	+3
0.3440	0.3440	0.3310	—	Dividend per share ($)		1.0320	0.9495	+9

1.Q3 on Q2 change

2.Effective first quarter 2024, the definition has been amended and comparative information has been revised. See Reference D.

Quarter Analysis1

Income attributable to Shell plc shareholders, compared with the second quarter 2024, reflected lower refining margins, lower realised oil prices and higher operating expenses partly offset by favourable tax movements, and higher Integrated Gas volumes.

Third quarter 2024 income attributable to Shell plc shareholders also included unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, charges related to redundancy and restructuring, and net impairment charges and reversals. These items are included in identified items amounting to a net loss of $1.3 billion in the quarter. This compares with identified items in the second quarter 2024 which amounted to a net loss of $2.7 billion.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items and the cost of supplies adjustment of positive $0.5 billion.

Cash flow from operating activities for the third quarter 2024 was $14.7 billion, and primarily driven by Adjusted EBITDA, and working capital inflows of $2.7 billion partly offset by tax payments of $3.0 billion. The working capital inflow mainly reflected inventory movements due to lower oil prices and lower volumes.

Cash flow from investing activities for the quarter was an outflow of $3.9 billion, and included cash capital expenditure of $4.9 billion.

Net debt and Gearing: At the end of the third quarter 2024, net debt was $35.2 billion, compared with $38.3 billion at the end of the second quarter 2024, mainly reflecting free cash flow, partly offset by share buybacks, cash dividends paid to Shell plc shareholders, lease additions and interest payments. Gearing was 15.7% at the end of the third quarter 2024, compared with 17.0% at the end of the second quarter 2024, mainly driven by lower net debt.



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Shareholder distributions

Total shareholder distributions in the quarter amounted to $5.7 billion comprising repurchases of shares of $3.5 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the third quarter 2024 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the second quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the fourth quarter 2024 results announcement.

Nine Months Analysis1

Income attributable to Shell plc shareholders, compared with the first nine months 2023, reflected lower refining margins, lower LNG trading and optimisation margins, lower realised LNG and gas prices as well as lower trading and optimisation margins of power and pipeline gas in Renewables and Energy Solutions, partly offset by lower operating expenses, higher Marketing margins and volumes, higher realised Chemicals margins, and higher Integrated Gas and Upstream volumes.

First nine months 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals, reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures, unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, and charges related to redundancy and restructuring, partly offset by favourable differences in exchange rates and inflationary adjustments on deferred tax. These charges, reclassifications and movements are included in identified items amounting to a net loss of $4.6 billion. This compares with identified items in the first nine months 2023 which amounted to a net loss of $2.2 billion.

Adjusted Earnings and Adjusted EBITDA2 for the first nine months 2024 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items and the cost of supplies adjustment of positive $0.3 billion.

Cash flow from operating activities for the first nine months 2024 was $41.5 billion, and primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $1.2 billion and cash inflows relating to commodity derivatives of $1.2 billion, partly offset by tax payments of $9.1 billion, and working capital outflow of $0.3 billion.

Cash flow from investing activities for the first nine months 2024 was an outflow of $10.7 billion and included cash capital expenditure of $14.2 billion, partly offset by divestment proceeds of $2.0 billion, and interest received of $1.8 billion.

This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 3 .

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

3.Not incorporated by reference.

THIRD QUARTER 2024 PORTFOLIO DEVELOPMENTS

Integrated Gas

In July 2024, we announced the final investment decision (FID) on the Manatee project, an undeveloped gas field in the East Coast Marine Area (ECMA) in Trinidad and Tobago.

In July 2024, we signed an agreement to invest in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais LNG project in Abu Dhabi through a 10% participating interest. The Ruwais LNG project will consist of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.

In August 2024, Arrow Energy, an incorporated joint venture between Shell (50%) and PetroChina (50%), announced plans to develop Phase 2 of Arrow Energy’s Surat Gas Project in Queensland, Australia. The gas from the project will flow to the Shell-operated QCLNG LNG (joint venture between Shell (73.75%), CNOOC (25%) and MidOcean Energy (1.25%)) facility on Curtis Island, near Gladstone.

Upstream

In July 2024, the operator of the Jerun field in Malaysia, SapuraOMV Upstream Sdn Bhd, announced that first gas has been achieved. Jerun is operated by SapuraOMV Upstream (40%) in partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%).

In August 2024, we announced the FID on a ‘waterflood’ project at our Vito asset in the US Gulf of Mexico. Water will be injected into the reservoir formation to displace additional oil.

Page 2



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Marketing

In July 2024, we announced that we are temporarily pausing on-site construction work at our 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands to address project delivery and ensure future competitiveness given current market conditions.

Renewables and Energy Solutions

In October 2024, we signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC (RISEC), which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA. The transaction is subject to regulatory approvals and is expected to close in the first quarter 2025.

Page 2



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

PERFORMANCE BY SEGMENT



INTEGRATED GAS
Quarters				$ million		Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		Reference	2024	2023	%
2,631	2,454	2,156	+7	Segment earnings		7,846	5,325	+47
(240)	(220)	(375)		Of which: Identified items	A	(1,379)	(4,625)
2,871	2,675	2,531	+7	Adjusted Earnings	A	9,225	9,951	-7
5,234	5,039	4,874	+4	Adjusted EBITDA	A	16,410	17,189	-5
3,623	4,183	4,009	-13	Cash flow from operating activities	A	12,518	13,923	-10
1,236	1,151	1,099		Cash capital expenditure	C	3,429	3,000
136	137	122	-1	Liquids production available for sale (thousand b/d)		137	134	+2
4,669	4,885	4,517	-4	Natural gas production available for sale (million scf/d)		4,835	4,744	+2
941	980	900	-4	Total production available for sale (thousand boe/d)		971	952	+2
7.50	6.95	6.88	+8	LNG liquefaction volumes (million tonnes)		22.03	21.23	+4
17.04	16.41	16.01	+4	LNG sales volumes (million tonnes)		50.32	49.01	+3

1.Q3 on Q2 change

Integrated Gas includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. Integrated Gas also includes the marketing, trading and optimisation of LNG.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected higher LNG liquefaction volumes (increase of $237 million).

Third quarter 2024 segment earnings also included unfavourable movements of $213 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the second quarter 2024 which included a charge of $122 million due to unrecoverable indirect tax receivables, and unfavourable movements of $98 million due to the fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $814 million, net cash outflows related to derivatives of $373 million and working capital outflows of $247 million.

Total oil and gas production, compared with the second quarter 2024, decreased by 4% mainly due to production-sharing contract effects, and higher maintenance in Trinidad and Tobago. LNG liquefaction volumes increased by 8% mainly due to higher feedgas supply in Nigeria, and Trinidad and Tobago.

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected the combined effect of lower contributions from trading and optimisation and lower realised prices (decrease of $1,787 million), partly offset by higher volumes (increase of $513 million), lower operating expenses (decrease of $171 million), and favourable deferred tax movements ($168 million).

First nine months 2024 segment earnings also included unfavourable movements of $1,198 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the first nine months 2023 which included unfavourable movements of $2,821 million due to the fair value accounting of commodity derivatives, and net impairment charges and reversals of $1,700 million. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Page 3



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,320 million and net cash outflows related to derivatives of $1,586 million.

Total oil and gas production, compared with the first nine months 2023, increased by 2% mainly due to ramp-up of fields in Oman and Australia, and lower maintenance in Australia. LNG liquefaction volumes increased by 4% mainly due to lower unplanned maintenance in Australia.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Page 4



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



UPSTREAM
Quarters				$ million		Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		Reference	2024	2023	%
2,289	2,179	1,999	+5	Segment earnings		6,741	6,388	+6
(153)	(157)	(238)		Of which: Identified items	A	28	(357)
2,443	2,336	2,237	+5	Adjusted Earnings	A	6,712	6,746	—
7,871	7,829	7,433	+1	Adjusted EBITDA	A	23,588	22,750	+4
5,268	5,739	5,336	-8	Cash flow from operating activities	A	16,734	15,663	+7
1,974	1,829	2,007		Cash capital expenditure	C	5,813	5,906
1,321	1,297	1,311	+2	Liquids production available for sale (thousand b/d)		1,316	1,313	—
2,844	2,818	2,564	+1	Natural gas production available for sale (million scf/d)		2,933	2,687	+9
1,811	1,783	1,753	+2	Total production available for sale (thousand boe/d)		1,822	1,776	+3

1.Q3 on Q2 change

The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected lower well write-offs (decrease of $139 million), favourable tax movements ($96 million), lower operating expenses (decrease of $63 million), and lower depreciation charges (decrease of $57 million), partly offset by lower realised liquids prices (decrease of $304 million).

Third quarter 2024 segment earnings also included charges of $138 million related to redundancy and restructuring and charges of $104 million related to decommissioning provisions. These charges are part of identified items, and compare with the second quarter 2024 which included a loss of $143 million related to the impact of the weakening Brazilian real on a deferred tax position, and a loss of $122 million related to a tax settlement in Brazil, partly offset by a gain of $139 million related to the impact of inflationary adjustments in Argentina on a deferred tax position.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,074 million.

Total production, compared with the second quarter 2024, increased mainly due to new oil production.

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected unfavourable tax movements ($351 million), higher well write-offs (increase of $327 million) and the net impact of lower realised gas and higher realised liquids prices (decrease of $278 million), partly offset by the comparative favourable impact of $910 million mainly relating to gas storage effects.

First nine months 2024 segment earnings also included gains of $676 million related to the impact of inflationary adjustments in Argentina on a deferred tax position, partly offset by charges of $179 million related to redundancy and restructuring, net impairment charges and reversals of $171 million and a loss of $164 million related to the impact of the weakening Brazilian real on a deferred tax position. These gains and charges are part of identified items, and compare with the first nine months 2023 which included charges of $188 million from impairments, legal provisions of $169 million and deferred tax charges of $132 million due to amendments to IAS 12, partly offset by favourable movements of $106 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $5,832 million.

Total production, compared with the first nine months 2023, increased mainly due to new oil production, partly offset by field decline.

Page 5



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Page 6



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



MARKETING
Quarters				$ million		Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		Reference	2024	2023	%
760	257	629	+196	Segment earnings2		1,791	2,832	-37
(422)	(825)	(12)		Of which: Identified items2	A	(1,255)	314
1,182	1,082	641	+9	Adjusted Earnings2	A	3,046	2,518	+21
2,081	1,999	1,453	+4	Adjusted EBITDA2	A	5,767	4,837	+19
2,722	1,958	397	+39	Cash flow from operating activities2	A	5,999	3,794	+58
525	644	959		Cash capital expenditure2	C	1,634	4,406
2,945	2,868	3,138	+3	Marketing sales volumes (thousand b/d)2		2,859	3,062	-7

1.Q3 on Q2 change

2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.

The Marketing segment comprises the Mobility, Lubricants, and Sectors and Decarbonisation businesses. The Mobility business operates Shell’s retail network including electric vehicle charging services and the Wholesale commercial fuels business which provides fuels for transport, industry and heating. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors and Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, marine, and agricultural sectors.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected higher Marketing margins (increase of $139 million) mainly driven by improved Mobility unit margins and impact of seasonally higher volumes partly offset by lower lubricants and Sectors and Decarbonisation margins. Segment earnings also reflected favourable tax movements ($55 million). These were partly offset by higher operating expenses (increase of $63 million).

Third quarter 2024 segment earnings also included impairment charges of $179 million, charges of $98 million related to redundancy and restructuring, and net losses of $84 million related to sale of assets. These charges and unfavourable movements are part of identified items, and compare with the second quarter 2024 impairment charges of $783 million mainly relating to an asset in the Netherlands, and charges of $50 million related to redundancy and restructuring.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, working capital inflows of $792 million, and the timing impact of payments relating to emission certificates and biofuel programmes of $427 million. These inflows were partly offset by non-cash cost of supplies adjustment of $334 million and tax payments of $241 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the second quarter 2024, increased mainly due to seasonality.

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected higher Marketing margins (increase of $582 million) including higher unit margins in Mobility, Lubricants and higher Sectors and Decarbonisation margins. Segment earnings also reflected lower operating expenses (decrease of $170 million). These were partly offset by higher depreciation charges (increase of $128 million) mainly due to asset acquisitions, and unfavourable tax movements ($94 million).

First nine months 2024 segment earnings also included impairment charges of $965 million mainly relating to an asset in the Netherlands, charges of $163 million related to redundancy and restructuring, and net losses of $140 million related to the sale of assets. These charges are part of identified items and compare with the first nine months 2023 which included gains of $298 million related to indirect tax credits, and favourable movements of $60 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Page 7



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $966 million, and working capital inflows of $153 million. These inflows were partly offset by tax payments of $432 million, and non-cash cost of supplies adjustment of $256 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first nine months 2023, decreased mainly in Mobility including increased focus on value over volume.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



CHEMICALS AND PRODUCTS
Quarters				$ million		Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		Reference	2024	2023	%
341	587	1,250	-42	Segment earnings2		2,085	3,310	-37
(122)	(499)	(213)		Of which: Identified items2	A	(1,078)	(278)
463	1,085	1,463	-57	Adjusted Earnings2	A	3,163	3,588	-12
1,240	2,242	2,661	-45	Adjusted EBITDA2	A	6,308	6,819	-7
3,321	2,249	2,862	+48	Cash flow from operating activities2	A	5,221	6,364	-18
761	638	837		Cash capital expenditure2	C	1,898	2,027
1,305	1,429	1,334	-9	Refinery processing intake (thousand b/d)		1,388	1,360	+2
3,015	3,052	2,998	-1	Chemicals sales volumes (thousand tonnes)		8,950	8,656	+3

1.Q3 on Q2 change

The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected lower Products margins (decrease of $492 million) mainly driven by lower refining margins and lower margins from trading and optimisation. Segment earnings also reflected lower Chemicals margins (decrease of $189 million) mainly due to lower utilisation and lower realised prices. In addition, the third quarter 2024 reflected higher operating expenses (increase of $88 million). These were partly offset by favourable tax movements ($133 million).

Third quarter 2024 segment earnings also included charges of $101 million related to redundancy and restructuring, and net impairment charges and reversals of $92 million, partly offset by favourable movements of $95 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and favourable movements are part of identified items, and compare with the second quarter 2024 which included net impairment charges and reversals of $708 million mainly relating to assets in Singapore, partly offset by favourable movements of $156 million due to the fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the third quarter 2024, Chemicals had negative Adjusted Earnings of $111 million and Products had positive Adjusted Earnings of $573 million.

Cash flow from operating activities for the quarter was primarily driven by working capital inflows of $2,131 million, Adjusted EBITDA, cash inflows relating to commodity derivatives of $88 million and dividends (net of profits) from joint ventures and associates of $63 million. These inflows were partly offset by non-cash cost of supplies adjustment of $331 million.

Chemicals manufacturing plant utilisation was 76% compared with 80% in the second quarter 2024, due to higher planned and unplanned maintenance.

Refinery utilisation was 81% compared with 92% in the second quarter 2024, due to higher planned and unplanned maintenance.

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected lower Products margins (decrease of $1,458 million) mainly driven by lower refining margins and lower margins from trading and optimisation. Segment earnings also included unfavourable tax movements ($106 million). These were partly offset by higher Chemicals margins (increase of $516 million) due to higher realised prices and higher utilisation. In addition, the first nine months 2024 reflected lower operating expenses (decrease of $658 million).

First nine months 2024 segment earnings also included net impairment charges and reversals of $952 million mainly relating to assets in Singapore, charges of $139 million related to redundancy and restructuring, and unfavourable

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

movements of $69 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and unfavourable movements are part of identified items, and compare with the first nine months 2023 which included losses of $227 million from net impairments and reversals, legal provisions of $74 million and favourable movements of $75 million related to the fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the first nine months 2024, Chemicals had negative Adjusted Earnings of $174 million and Products had positive Adjusted Earnings of $3,337 million.

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $257 million, and dividends (net of profits) from joint ventures and associates of $165 million. These inflows were partly offset by working capital outflows of $869 million, cash outflows relating to legal provisions of $203 million, tax payments of $182 million, and non-cash cost of supplies adjustment of $182 million.

Chemicals manufacturing plant utilisation was 77% compared with 70% in the first nine months 2023, mainly due to economic optimisation in the first nine months 2023. The increase was also driven by ramp-up of Shell Polymers Monaca and lower unplanned maintenance in the first nine months 2024.

Refinery utilisation was 88% compared with 87% in the first nine months 2023.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



RENEWABLES AND ENERGY SOLUTIONS
Quarters				$ million		Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		Reference	2024	2023	%
(481)	(75)	616	-538	Segment earnings		(3)	3,361	-100
(319)	112	667		Of which: Identified items	A	183	2,778
(162)	(187)	(51)	+13	Adjusted Earnings	A	(186)	583	-132
(75)	(91)	101	+18	Adjusted EBITDA	A	101	1,229	-92
(364)	847	(34)	-143	Cash flow from operating activities	A	2,948	4,249	-31
409	425	659		Cash capital expenditure	C	1,272	1,655
79	74	76	+7	External power sales (terawatt hours)2		230	211	+9
148	148	170	0	Sales of pipeline gas to end-use customers (terawatt hours)3		487	563	-14

1.Q3 on Q2 change

2.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.

3.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.

Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected lower margins (decrease of $86 million) mainly due to lower trading and optimisation in the Americas, partly offset by slightly higher trading and optimisation in Europe.

Third quarter 2024 segment earnings also included unfavourable movements of $279 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the second quarter 2024 which included favourable movements of $223 million due to the fair value accounting of commodity derivatives and impairment charges of $155 million. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by working capital outflows of $136 million, net cash outflows related to derivatives of $107 million, and Adjusted EBITDA.

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected lower margins (decrease of $1,236 million) mainly from trading and optimisation primarily in Europe due to lower volatility and lower prices, partly offset by lower operating expenses (decrease of $427 million).

First nine months 2024 segment earnings also included favourable movements of $250 million relating to an accounting mismatch due to fair value accounting of commodity derivatives, partly offset by net impairment charges and reversals of $89 million. These favourable movements and charges are part of identified items and compare with the first nine months 2023 which included favourable movements of $2,632 million due to the fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Most Renewables and Energy Solutions activities were loss-making for the first nine months 2024, which was partly offset by positive Adjusted Earnings from trading and optimisation.

Cash flow from operating activities for the first nine months 2024 was primarily driven by net cash inflows related to derivatives of $2,479 million, working capital inflows of $570 million, and Adjusted EBITDA, partly offset by tax payments of $415 million.

1.All earnings amounts are shown post-tax, unless stated otherwise.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

2.Adjusted EBITDA is without taxation.

Additional Growth Measures


Quarters					Nine months
Q3 2024	Q2 2024	Q3 2023	%¹		2024	2023	%
				Renewable power generation capacity (gigawatt):
3.4	3.3	2.5	+2	– In operation2	3.4	2.5	+37
3.9	3.8	4.9	+3	– Under construction and/or committed for sale3	3.9	4.9	-20

1.Q3 on Q2 change

2.Shell’s equity share of renewable generation capacity post commercial operation date. It excludes Shell’s equity share of associates where information cannot be obtained.

3.Shell’s equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA). It excludes Shell’s equity share of associates where information cannot be obtained.



CORPORATE
Quarters			$ million		Nine months
Q3 2024	Q2 2024	Q3 2023		Reference	2024	2023
(647)	(1,656)	(497)	Segment earnings1		(2,656)	(2,315)
(3)	(1,080)	22	Of which: Identified items	A	(1,069)	(50)
(643)	(576)	(519)	Adjusted Earnings1	A	(1,588)	(2,266)
(346)	(213)	(186)	Adjusted EBITDA1	A	(650)	(619)
115	(1,468)	(238)	Cash flow from operating activities	A	(1,898)	(2,372)

1.From the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.

The Corporate segment covers the non-operating activities supporting Shell. It comprises Shell’s holdings and treasury organisation, headquarters and central functions, self-insurance activities and centrally managed longer-term innovation portfolio. All finance expense, income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected unfavourable movements in currency exchange rate effects, partly offset by favourable tax movements.

Second quarter 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These currency translation differences were previously recognised in other comprehensive income and accumulated in equity as part of accumulated other comprehensive income. This non-cash reclassification is part of identified items.

Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects and higher operating expenses.

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, were primarily driven by favourable tax movements and favourable net interest movements.

First nine months 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These reclassifications are included in identified items.

Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects.

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

OUTLOOK FOR THE FOURTH QUARTER 2024

For Full year 2023 cash capital expenditure was $24 billion. Cash capital expenditure for full year 2024 is expected to be below $22 billion.

Integrated Gas production is expected to be approximately 900 – 960 thousand boe/d. Fourth quarter 2024 outlook reflects scheduled maintenance at Pearl GTL in Qatar. LNG liquefaction volumes are expected to be approximately 6.9 – 7.5 million tonnes.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Upstream production is expected to be approximately 1,750 – 1,950 thousand boe/d.

Marketing sales volumes are expected to be approximately 2,550 – 3,050 thousand b/d.

Refinery utilisation is expected to be approximately 75% – 83%. Chemicals manufacturing plant utilisation is expected to be approximately 72% – 80%.

In the fourth quarter 2023, Corporate Adjusted Earnings were a net expense of $609 million1. Corporate Adjusted Earnings2 are expected to be a net expense of approximately $600 – $800 million in the fourth quarter 2024.

2.For the definition of Adjusted Earnings and the most comparable GAAP measure please see reference A.

FORTHCOMING EVENTS



Date			Event
January 30, 2025			Fourth quarter 2024 results and dividends
March 13, 2025			Publication of Annual Report and Accounts and filing of Form 20-F for the year ended December 31, 2024
May 2, 2025			First quarter 2025 results and dividends
July 31, 2025			Second quarter 2025 results and dividends
October 30, 2025			Third quarter 2025 results and dividends

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS



CONSOLIDATED STATEMENT OF INCOME
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
71,089	74,463	76,350	Revenue1	218,031	237,888
933	898	747	Share of profit/(loss) of joint ventures and associates	3,150	2,957
440	(305)	913	Interest and other income/(expenses)2	1,042	2,207
72,462	75,057	78,011	Total revenue and other income/(expenses)	222,222	243,052
48,225	49,417	49,144	Purchases	144,509	158,138
6,138	5,593	6,384	Production and manufacturing expenses	17,541	18,433
3,139	3,094	3,447	Selling, distribution and administrative expenses	9,208	9,811
294	263	267	Research and development	768	817
305	496	436	Exploration	1,551	1,283
5,916	7,555	5,911	Depreciation, depletion and amortisation2	19,352	20,069
1,174	1,235	1,131	Interest expense	3,573	3,507
65,190	67,653	66,720	Total expenditure	196,502	212,058
7,270	7,404	11,291	Income/(loss) before taxation	25,717	30,993
2,879	3,754	4,115	Taxation charge/(credit)2	10,237	11,891
4,391	3,650	7,176	Income/(loss) for the period	15,480	19,102
100	133	132	Income/(loss) attributable to non-controlling interest	314	215
4,291	3,517	7,044	Income/(loss) attributable to Shell plc shareholders	15,166	18,887
0.69	0.55	1.06	Basic earnings per share ($)3	2.39	2.78
0.68	0.55	1.05	Diluted earnings per share ($)3	2.36	2.75

1.See Note 2 “Segment information”.

2.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

3.See Note 4 “Earnings per share”.



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
4,391	3,650	7,176	Income/(loss) for the period	15,480	19,102
			Other comprehensive income/(loss) net of tax:
			Items that may be reclassified to income in later periods:
2,947	698	(1,460)	– Currency translation differences1	1,651	(1,174)
35	(12)	1	– Debt instruments remeasurements	16	13
(75)	14	141	– Cash flow hedging gains/(losses)	(7)	61
—	—	—	– Net investment hedging gains/(losses)	—	(44)
(2)	(6)	(39)	– Deferred cost of hedging	(22)	(94)
35	(50)	(72)	– Share of other comprehensive income/(loss) of joint ventures and associates	(27)	(118)
2,940	644	(1,429)	Total	1,610	(1,357)
			Items that are not reclassified to income in later periods:
419	310	180	– Retirement benefits remeasurements	1,169	125
80	(81)	(38)	– Equity instruments remeasurements	77	(15)
(53)	44	17	– Share of other comprehensive income/(loss) of joint ventures and associates	1	(15)
446	273	159	Total	1,247	95
3,386	917	(1,270)	Other comprehensive income/(loss) for the period	2,857	(1,262)
7,777	4,567	5,906	Comprehensive income/(loss) for the period	18,337	17,840
177	123	149	Comprehensive income/(loss) attributable to non-controlling interest	357	217
7,600	4,443	5,757	Comprehensive income/(loss) attributable to Shell plc shareholders	17,981	17,622

1.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



CONDENSED CONSOLIDATED BALANCE SHEET
$ million
	September 30, 2024	December 31, 2023
Assets
Non-current assets
Goodwill	16,600	16,660
Other intangible assets	8,188	10,253
Property, plant and equipment	191,721	194,835
Joint ventures and associates	25,764	24,457
Investments in securities	3,062	3,246
Deferred tax	6,114	6,454
Retirement benefits1	10,564	9,151
Trade and other receivables	6,883	6,298
Derivative financial instruments²	498	801
	269,394	272,155
Current assets
Inventories	24,143	26,019
Trade and other receivables	46,782	53,273
Derivative financial instruments²	10,233	15,098
Cash and cash equivalents	42,252	38,774
	123,411	133,164
Assets classified as held for sale1	2,144	951
	125,555	134,115
Total assets	394,949	406,270
Liabilities
Non-current liabilities
Debt	64,597	71,610
Trade and other payables	3,864	3,103
Derivative financial instruments²	1,749	2,301
Deferred tax	15,487	15,347
Retirement benefits1	7,110	7,549
Decommissioning and other provisions	22,979	22,531
	115,786	122,441
Current liabilities
Debt	12,015	9,931
Trade and other payables	61,076	68,237
Derivative financial instruments²	6,775	9,529
Income taxes payable	4,289	3,422
Decommissioning and other provisions	4,171	4,041
	88,327	95,160
Liabilities directly associated with assets classified as held for sale1	1,298	307
	89,625	95,467
Total liabilities	205,411	217,908
Equity attributable to Shell plc shareholders	187,673	186,607
Non-controlling interest	1,865	1,755
Total equity	189,538	188,362
Total liabilities and equity	394,949	406,270

1. See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

2. See Note 7 “Derivative financial instruments and debt excluding lease liabilities”.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	Equity attributable to Shell plc shareholders
$ million	Share capital1	Shares held in trust	Other reserves²	Retained earnings	Total	Non-controlling interest	Total equity
At January 1, 2024	544	(997)	21,145	165,915	186,607	1,755	188,362
Comprehensive income/(loss) for the period	—	—	2,815	15,166	17,981	357	18,337
Transfer from other comprehensive income	—	—	166	(166)	—	—	—
Dividends³	—	—	—	(6,556)	(6,556)	(242)	(6,798)
Repurchases of shares4	(25)	—	25	(10,536)	(10,536)	—	(10,536)
Share-based compensation	—	542	(24)	(400)	119	—	119
Other changes	—	—	—	60	60	(5)	55
At September 30, 2024	519	(456)	24,127	163,482	187,673	1,865	189,538
At January 1, 2023	584	(726)	21,132	169,482	190,472	2,125	192,597
Comprehensive income/(loss) for the period	—	—	(1,263)	18,886	17,622	217	17,840
Transfer from other comprehensive income	—	—	(111)	111	—	—	—
Dividends3	—	—	—	(6,193)	(6,193)	(636)	(6,829)
Repurchases of shares4	(30)	—	30	(11,058)	(11,058)	—	(11,058)
Share-based compensation	—	466	(18)	(100)	349	—	349
Other changes	—	—	—	8	8	37	45
At September 30, 2023	555	(261)	19,769	171,136	191,199	1,745	192,943

1. See Note 5 “Share capital”.

2. See Note 6 “Other reserves”.

3. The amount charged to retained earnings is based on prevailing exchange rates on payment date.

4. Includes shares committed to repurchase under an irrevocable contract and repurchases subject to settlement at the end of the quarter.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
7,270	7,404	11,291	Income before taxation for the period	25,717	30,993
			Adjustment for:
554	619	513	– Interest expense (net)	1,749	1,789
5,916	7,555	5,911	– Depreciation, depletion and amortisation1	19,352	20,069
150	269	186	– Exploration well write-offs	973	626
154	(143)	74	– Net (gains)/losses on sale and revaluation of non-current assets and businesses	—	(24)
(933)	(898)	(747)	– Share of (profit)/loss of joint ventures and associates	(3,150)	(2,957)
860	792	749	– Dividends received from joint ventures and associates	2,390	2,529
2,705	(954)	(3,151)	– (Increase)/decrease in inventories	1,143	2,237
4,057	1,965	(1,126)	– (Increase)/decrease in current receivables	5,827	13,105
(4,096)	(1,269)	4,498	– Increase/(decrease) in current payables2	(7,314)	(10,881)
735	253	(2,807)	– Derivative financial instruments	2,373	(6,050)
125	(332)	1	– Retirement benefits	(267)	31
359	(332)	282	– Decommissioning and other provisions2	(572)	(210)
(144)	2,027	(150)	– Other1	2,392	474
(3,028)	(3,448)	(3,191)	Tax paid	(9,092)	(10,108)
14,684	13,508	12,332	Cash flow from operating activities	41,522	41,622
(4,690)	(4,445)	(5,259)	Capital expenditure	(13,114)	(16,033)
(222)	(261)	(350)	Investments in joint ventures and associates	(983)	(1,093)
(38)	(13)	(40)	Investments in equity securities	(63)	(154)
(4,950)	(4,719)	(5,649)	Cash capital expenditure	(14,161)	(17,280)
94	710	184	Proceeds from sale of property, plant and equipment and businesses	1,128	2,024
94	57	68	Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans	284	425
6	2	7	Proceeds from sale of equity securities	576	28
593	648	586	Interest received	1,818	1,555
1,074	883	701	Other investing cash inflows	2,814	3,308
(769)	(920)	(724)	Other investing cash outflows	(3,183)	(2,141)
(3,857)	(3,338)	(4,827)	Cash flow from investing activities	(10,723)	(12,080)
(89)	(179)	88	Net increase/(decrease) in debt with maturity period within three months	(375)	(185)
			Other debt:
78	132	187	– New borrowings	377	964
(1,322)	(4,154)	(3,368)	– Repayments	(7,008)	(6,596)
(979)	(1,287)	(1,049)	Interest paid	(3,177)	(3,076)
652	(115)	(26)	Derivative financial instruments	239	22
—	(1)	6	Change in non-controlling interest	(5)	(22)
			Cash dividends paid to:
(2,167)	(2,177)	(2,179)	– Shell plc shareholders	(6,554)	(6,192)
(92)	(82)	(51)	– Non-controlling interest	(242)	(636)
(3,537)	(3,958)	(2,725)	Repurchases of shares	(10,319)	(10,640)
6	(24)	(30)	Shares held in trust: net sales/(purchases) and dividends received	(480)	(176)
(7,452)	(11,846)	(9,147)	Cash flow from financing activities	(27,545)	(26,535)
729	(126)	(421)	Effects of exchange rate changes on cash and cash equivalents	224	(222)
4,105	(1,801)	(2,063)	Increase/(decrease) in cash and cash equivalents	3,478	2,785
38,148	39,949	45,094	Cash and cash equivalents at beginning of period	38,774	40,246
42,252	38,148	43,031	Cash and cash equivalents at end of period	42,252	43,031

1.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

2.To further enhance consistency between working capital and the Balance Sheet and the Statement of Cash Flows, from January 1, 2024, onwards movements in current other provisions are recognised in ‘Decommissioning and other provisions’ instead of ‘Increase/(decrease) in current payables’. Comparatives for the third quarter 2023 and the nine months 2023 have been reclassified accordingly by $212 million and $40 million respectively to conform with current period presentation.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. Basis of preparation

These unaudited Condensed Consolidated Interim Financial Statements of Shell plc (“the Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”) and adopted by the UK, and on the basis of the same accounting principles as those used in the Company’s Annual Report and Accounts (pages 244 to 316) for the year ended December 31, 2023, as filed with the Registrar of Companies for England and Wales and as filed with the Autoriteit Financiële Markten (the Netherlands) and Form 20-F (pages 217 to 290) for the year ended December 31, 2023 as filed with the US Securities and Exchange Commission, and should be read in conjunction with these filings.

The financial information presented in the unaudited Condensed Consolidated Interim Financial Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2023, were published in Shell’s Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell’s Form 20-F. The auditor’s report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.

2. Segment information

Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.

From the first quarter 2024, Wholesale commercial fuels forms part of Mobility with inclusion in the Marketing segment (previously Chemicals and Products segment). The change in segmentation reflects the increasing alignment between the economic characteristics of wholesale commercial fuels and other Mobility businesses, and is consistent with changes in the information provided to the Chief Operating Decision Maker. Prior period comparatives have been revised to conform with current year presentation with an offsetting impact between the Marketing and the Chemicals and Products segment (see below). Also, from the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments (see below).

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



REVENUE AND CCS EARNINGS BY SEGMENT
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
			Third-party revenue
9,748	9,052	8,338	Integrated Gas	27,996	27,208
1,605	1,590	1,617	Upstream	4,954	5,212
30,519	32,005	35,236	Marketing2	92,564	98,799
22,608	24,583	22,119	Chemicals and Products2	70,926	72,121
6,599	7,222	9,032	Renewables and Energy Solutions	21,558	34,517
10	11	7	Corporate	33	31
71,089	74,463	76,350	Total third-party revenue1	218,031	237,888
			Inter-segment revenue
2,131	2,157	2,472	Integrated Gas	6,691	8,946
9,618	10,102	10,277	Upstream	30,008	30,282
1,235	1,363	1,456	Marketing2	3,953	4,056
9,564	9,849	11,942	Chemicals and Products2	29,725	32,653
1,131	957	894	Renewables and Energy Solutions	3,093	3,140
—	—	—	Corporate	—	—
			CCS earnings
2,631	2,454	2,156	Integrated Gas	7,846	5,325
2,289	2,179	1,999	Upstream	6,741	6,388
760	257	629	Marketing2	1,791	2,832
341	587	1,250	Chemicals and Products2	2,085	3,310
(481)	(75)	616	Renewables and Energy Solutions	(3)	3,361
(647)	(1,656)	(497)	Corporate3	(2,656)	(2,315)
4,894	3,747	6,152	Total CCS earnings4	15,804	18,901

1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives.

2.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the third quarter 2023 and the nine months 2023 have been reclassified accordingly, by $5,659 million and $16,369 million respectively for Third-party revenue and by $(73) million and $22 million respectively for CCS earnings to conform with current period presentation. For Inter-segment revenue the reallocation and revision of comparative figures for the third quarter 2023 and the nine months 2023 led to an increase in inter-segment revenue in the Marketing segment of $1,302 million and $3,616 million respectively and an increase in the Chemicals and Products segment of $11,373 million and $31,011 million respectively.

3.From January 1, 2024, onwards costs for Shell’s centrally managed longer-term innovation portfolio are reported as part of the Corporate segment. Prior period comparatives for Corporate for the third quarter 2023 and the nine months 2023 have been revised by $37 million and $91 million respectively, with a net offsetting impact in all other segments to conform with current period presentation.

4.See Note 3 “Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt”.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.



CASH CAPITAL EXPENDITURE BY SEGMENT
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
			Capital expenditure
1,090	1,024	958	Integrated Gas	2,971	2,458
1,998	1,769	2,013	Upstream	5,533	5,701
488	644	935	Marketing1	1,559	4,358
748	601	761	Chemicals and Products1	1,822	1,944
327	377	523	Renewables and Energy Solutions	1,124	1,382
39	30	68	Corporate	104	190
4,690	4,445	5,259	Total capital expenditure	13,114	16,033
			Add: Investments in joint ventures and associates
147	127	141	Integrated Gas	457	543
(37)	60	(6)	Upstream	268	205
37	—	25	Marketing	75	48
13	37	76	Chemicals and Products	76	81
59	35	114	Renewables and Energy Solutions	103	205
3	1	1	Corporate	5	11
222	261	350	Total investments in joint ventures and associates	983	1,093
			Add: Investments in equity securities
—	—	—	Integrated Gas	—	—
12	—	—	Upstream	12	—
—	—	—	Marketing	—	—
—	—	—	Chemicals and Products	—	2
23	13	21	Renewables and Energy Solutions	45	68
3	—	19	Corporate	6	84
38	13	40	Total investments in equity securities	63	154
			Cash capital expenditure
1,236	1,151	1,099	Integrated Gas	3,429	3,000
1,974	1,829	2,007	Upstream	5,813	5,906
525	644	959	Marketing1	1,634	4,406
761	638	837	Chemicals and Products1	1,898	2,027
409	425	659	Renewables and Energy Solutions	1,272	1,655
45	32	87	Corporate	114	285
4,950	4,719	5,649	Total Cash capital expenditure	14,161	17,280

1.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the third quarter 2023 and the nine months 2023 have been reclassified accordingly by $42 million and $133 million respectively for capital expenditure and cash capital expenditure to conform with current period presentation.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

3. Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt



RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
4,291	3,517	7,044	Income/(loss) attributable to Shell plc shareholders	15,166	18,887
100	133	132	Income/(loss) attributable to non-controlling interest	314	215
4,391	3,650	7,176	Income/(loss) for the period	15,480	19,102
			Current cost of supplies adjustment:
668	137	(1,304)	Purchases	473	(275)
(162)	(36)	327	Taxation	(114)	60
(2)	(5)	(47)	Share of profit/(loss) of joint ventures and associates	(35)	14
503	97	(1,024)	Current cost of supplies adjustment	324	(201)
			Of which:
477	89	(969)	Attributable to Shell plc shareholders	302	(162)
26	7	(55)	Attributable to non-controlling interest	22	(39)
4,894	3,747	6,152	CCS earnings	15,804	18,901
			Of which:
4,768	3,606	6,075	CCS earnings attributable to Shell plc shareholders	15,468	18,725
126	140	77	CCS earnings attributable to non-controlling interest	336	176



RECONCILIATION OF OPERATING EXPENSES
Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
6,138	5,593	6,384	Production and manufacturing expenses	17,541	18,433
3,139	3,094	3,447	Selling, distribution and administrative expenses	9,208	9,811
294	263	267	Research and development	768	817
9,570	8,950	10,097	Operating expenses	27,517	29,062

RECONCILIATION OF TOTAL DEBT

Quarters

$ million

Nine months

Q3 2024

Q2 2024

Q3 2023

2024

2023

September 30, 2024

June 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

12,015

10,849

10,119

Current debt

12,015

10,119

64,597

64,619

72,028

Non-current debt

64,597

72,028

76,613

75,468

82,147

Total debt

76,613

82,147

4. Earnings per share



EARNINGS PER SHARE
Quarters				Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
4,291	3,517	7,044	Income/(loss) attributable to Shell plc shareholders ($ million)	15,166	18,887

			Weighted average number of shares used as the basis for determining:
6,256.5	6,355.4	6,668.1	Basic earnings per share (million)	6,350.3	6,792.5
6,320.9	6,417.6	6,736.7	Diluted earnings per share (million)	6,414.0	6,856.7

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

5. Share capital

ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH

Number of shares

Nominal value
($ million)

At January 1, 2024

6,524,109,049

544

Repurchases of shares

(299,830,201)

(25)

At September 30, 2024

6,224,278,848

519

At January 1, 2023

7,003,503,393

584

Repurchases of shares

(357,368,014)

(30)

At September 30, 2023

6,646,135,379

555

At Shell plc’s Annual General Meeting on May 21, 2024, the Board was authorised to allot ordinary shares in Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Shell plc, up to an aggregate nominal amount of approximately €150 million (representing approximately 2,147 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 20, 2025, or the end of the Annual General Meeting to be held in 2025, unless previously renewed, revoked or varied by Shell plc in a general meeting.

6. Other reserves



OTHER RESERVES
$ million	Merger reserve	Share premium reserve	Capital redemption reserve	Share plan reserve	Accumulated other comprehensive income	Total
At January 1, 2024	37,298	154	236	1,308	(17,851)	21,145
Other comprehensive income/(loss) attributable to Shell plc shareholders	—	—	—	—	2,815	2,815
Transfer from other comprehensive income	—	—	—	—	166	166
Repurchases of shares	—	—	25	—	—	25
Share-based compensation	—	—	—	(24)	—	(24)
At September 30, 2024	37,298	154	261	1,284	(14,870)	24,127
At January 1, 2023	37,298	154	196	1,140	(17,656)	21,132
Other comprehensive income/(loss) attributable to Shell plc shareholders	—	—	—	—	(1,263)	(1,263)
Transfer from other comprehensive income	—	—	—	—	(111)	(111)
Repurchases of shares	—	—	30	—	—	30
Share-based compensation	—	—	—	(18)	—	(18)
At September 30, 2023	37,298	154	227	1,121	(19,029)	19,769

The merger reserve and share premium reserve were established as a consequence of Shell plc (formerly Royal Dutch Shell plc) becoming the single parent company of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.

7. Derivative financial instruments and debt excluding lease liabilities

As disclosed in the Consolidated Financial Statements for the year ended December 31, 2023, presented in the Annual Report and Accounts and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at September 30, 2024, are consistent with those used in the year ended December 31, 2023, though the carrying amounts of derivative financial instruments have changed since that

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

date. The movement of the derivative financial instruments between December 31, 2023 and September 30, 2024 is a decrease of $4,865 million for the current assets and a decrease of $2,754 million for the current liabilities.

The table below provides the comparison of the fair value with the carrying amount of debt excluding lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.



DEBT EXCLUDING LEASE LIABILITIES
$ million	September 30, 2024	December 31, 2023
Carrying amount	51,022	53,832
Fair value¹	48,489	50,866

1. Mainly determined from the prices quoted for these securities.

8. Other notes to the unaudited Condensed Consolidated Interim Financial Statements

Consolidated Statement of Income

Interest and other income



Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
440	(305)	913	Interest and other income/(expenses)	1,042	2,207
			Of which:
619	616	618	Interest income	1,824	1,718
4	30	7	Dividend income (from investments in equity securities)	58	36
(154)	143	(75)	Net gains/(losses) on sales and revaluation of non-current assets and businesses	0	35
(189)	(1,169)	168	Net foreign exchange gains/(losses) on financing activities	(1,292)	(60)
159	74	195	Other	452	478

Net foreign exchange gains/(losses) on financing activities in the second quarter 2024 includes a loss of $1,104 million related to cumulative currency translation differences that were reclassified to profit and loss. The reclassification of these cumulative currency translation differences was principally triggered by changes in the funding structure of some of Shell’s businesses in the United Kingdom. These currency translation differences were previously directly recognised in equity as part of accumulated other comprehensive income.

Depreciation, depletion and amortisation



Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
5,916	7,555	5,911	Depreciation, depletion and amortisation	19,352	20,069
			Of which:
5,578	5,642	5,716	Depreciation	16,874	17,120
340	1,984	359	Impairments	2,706	3,438
(2)	(71)	(163)	Impairment reversals	(228)	(489)

Impairments recognised in the third quarter 2024 of $340 million pre-tax ($290 million post-tax) mainly relate to various assets in Marketing and Chemicals and Products. Impairments recognised in the second quarter 2024 of $1,984 million pre-tax ($1,778 million post-tax) mainly relate to Marketing ($1,055 million), Chemicals and Products ($690 million) and Renewables and Energy Solutions ($141 million). The impairment in Marketing principally relates to a biofuels facility located in the Netherlands, triggered by a temporary pause of on-site construction work. The impairment in Chemicals and Products relates to an Energy and Chemicals Park located in Singapore, due to remeasurement of the fair value less costs of disposal triggered by a sales agreement reached. Impairments recognised in the third quarter 2023 of $359 million pre-tax ($299 million post-tax) mainly relate to various assets in Renewables and Energy Solutions and Chemicals and Products.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Taxation charge/credit

Quarters

$ million

Nine months

Q3 2024

Q2 2024

Q3 2023

2024

2023

2,879

3,754

4,115

Taxation charge/(credit)

10,237

11,891

Of which:

2,834

3,666

4,115

Income tax excluding Pillar Two income tax

10,026

11,891

—

Income tax related to Pillar Two income tax

212

—

On June 20, 2023, the UK substantively enacted Pillar Two Model Rules, effective as from January 1, 2024.

As required by IAS 12 Income Taxes, Shell has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

Consolidated Statement of Comprehensive Income

Currency translation differences

Quarters

$ million

Nine months

Q3 2024

Q2 2024

Q3 2023

2024

2023

2,947

698

(1,460)

Currency translation differences

1,651

(1,174)

Of which:

2,912

(406)

(1,469)

Recognised in Other comprehensive income

524

(1,181)

1,104

(Gain)/loss reclassified to profit or loss

1,127

Amounts reclassified to profit and loss in the second quarter 2024 relate to cumulative currency translation differences that were reclassified to income (refer to Interest and other income above).

Condensed Consolidated Balance Sheet

Retirement benefits



$ million
	September 30, 2024	December 31, 2023
Non-current assets
Retirement benefits	10,564	9,151
Non-current liabilities
Retirement benefits	7,110	7,549
Surplus/(deficit)	3,454	1,602

Amounts recognised in the Balance Sheet in relation to defined benefit plans include both plan assets and obligations that are presented on a net basis on a plan-by-plan basis. The change in the net retirement benefit asset as at September 30, 2024, is mainly driven by an increase of the market yield on high-quality corporate bonds in the USA, the UK and Eurozone since December 31, 2023, partly offset by losses on plan assets.

Assets classified as held for sale



$ million
	September 30, 2024	December 31, 2023
Assets classified as held for sale	2,144	951
Liabilities directly associated with assets classified as held for sale	1,298	307

Assets classified as held for sale and associated liabilities at September 30, 2024 relate to an energy and chemicals park asset in Chemicals and Products in Singapore and various smaller assets. The major classes of assets and liabilities classified as held for sale at September 30, 2024, are Inventories ($1,273 million; December 31, 2023: $463 million), Property, plant and equipment ($544 million; December 31, 2023: $250 million), Decommissioning and other provisions ($634 million; December 31, 2023: $75 million) and Debt ($425 million; December 31, 2023: $84 million).

Page 24



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Consolidated Statement of Cash Flows

Cash flow from operating activities – Other

Quarters

$ million

Nine months

Q3 2024

Q2 2024

Q3 2023

2024

2023

(144)

2,027

(150)

Other

2,392

474

‘Cash flow from operating activities – Other’ for the third quarter 2024 includes $432 million of net inflows (second quarter 2024: $620 million net inflows; third quarter 2023: $630 million net outflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America and $539 million in relation to reversal of currency exchange gains on Cash and cash equivalents (second quarter 2024: $96 million losses; third quarter 2023: $336 million losses). For the second quarter 2024 ‘Cash flow from operating activities – Other’ also includes $1,104 million inflow representing reversal of the non-cash recycling of currency translation losses from other comprehensive income (refer to Interest and other income above).

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES

A.Adjusted Earnings, Adjusted earnings before interest, taxes, depreciation and amortisation (“Adjusted EBITDA”) and Cash flow from operating activities

The “Adjusted Earnings” measure aims to facilitate a comparative understanding of Shell’s financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. These items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shell’s financial results from period to period. This measure excludes earnings attributable to non-controlling interest.

We define “Adjusted EBITDA” as “Income/(loss) for the period” adjusted for current cost of supplies; identified items; tax charge/(credit); depreciation, amortisation and depletion; exploration well write-offs and net interest expense. All items include the non-controlling interest component. Management uses this measure to evaluate Shell’s performance in the period and over time.



Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
4,291	3,517	7,044	Income/(loss) attributable to Shell plc shareholders	15,166	18,887
100	133	132	Income/(loss) attributable to non-controlling interest	314	215
477	89	(969)	Add: Current cost of supplies adjustment attributable to Shell plc shareholders	302	(162)
26	7	(55)	Add: Current cost of supplies adjustment attributable to non-controlling interest	22	(39)
4,894	3,747	6,152	CCS earnings	15,804	18,901



Q3 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
CCS earnings	4,894	2,631	2,289	760	341	(481)	(647)
Less: Identified items	(1,259)	(240)	(153)	(422)	(122)	(319)	(3)
Less: CCS earnings attributable to non-controlling interest	126
Add: Identified items attributable to non-controlling interest	—
Adjusted Earnings	6,028
Add: Non-controlling interest	126
Adjusted Earnings plus non-controlling interest	6,153	2,871	2,443	1,182	463	(162)	(643)
Add: Taxation charge/(credit) excluding tax impact of identified items	3,571	949	2,413	322	(73)	(1)	(39)
Add: Depreciation, depletion and amortisation excluding impairments	5,578	1,369	2,691	564	862	86	6
Add: Exploration well write-offs	150	2	148
Add: Interest expense excluding identified items	1,173	49	183	13	14	2	912
Less: Interest income	619	5	8	—	25	—	581
Adjusted EBITDA	16,005	5,234	7,871	2,081	1,240	(75)	(346)
Less: Current cost of supplies adjustment before taxation	665			334	331
Joint ventures and associates (dividends received less profit)	(62)	(146)	(90)	51	63	61	—
Derivative financial instruments	133	(373)	47	98	88	(106)	380
Taxation paid	(3,028)	(814)	(2,074)	(241)	23	(33)	112
Other	(365)	(32)	(406)	275	107	(75)	(234)
(Increase)/decrease in working capital	2,665	(247)	(78)	792	2,131	(136)	204
Cash flow from operating activities	14,684	3,623	5,268	2,722	3,321	(364)	115

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Q2 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
CCS earnings	3,747	2,454	2,179	257	587	(75)	(1,656)
Less: Identified items	(2,669)	(220)	(157)	(825)	(499)	112	(1,080)
Less: CCS earnings attributable to non-controlling interest	140
Add: Identified items attributable to non-controlling interest	18
Adjusted Earnings	6,293
Add: Non-controlling interest	122
Adjusted Earnings plus non-controlling interest	6,415	2,675	2,336	1,082	1,085	(187)	(576)
Add: Taxation charge/(credit) excluding tax impact of identified items	3,947	940	2,312	359	297	(10)	49
Add: Depreciation, depletion and amortisation excluding impairments	5,642	1,375	2,750	548	867	95	6
Add: Exploration well write-offs	269	5	264	—	—	—	—
Add: Interest expense excluding identified items	1,149	44	166	10	23	1	904
Less: Interest income	616	—	(1)	—	30	(9)	595
Adjusted EBITDA	16,806	5,039	7,829	1,999	2,242	(91)	(213)
Less: Current cost of supplies adjustment before taxation	133			74	59
Joint ventures and associates (dividends received less profit)	(135)	96	(288)	(54)	46	64	—
Derivative financial instruments	713	(133)	9	7	304	607	(79)
Taxation paid	(3,448)	(1,039)	(1,955)	(17)	(186)	(138)	(113)
Other	(38)	(104)	(341)	(57)	263	180	20
(Increase)/decrease in working capital	(258)	324	484	153	(361)	225	(1,083)
Cash flow from operating activities	13,508	4,183	5,739	1,958	2,249	847	(1,468)



Q3 2023	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
CCS earnings	6,152	2,156	1,999	629	1,250	616	(497)
Less: Identified items	(149)	(375)	(238)	(12)	(213)	667	22
Less: CCS earnings attributable to non-controlling interest	77
Add: Identified items attributable to non-controlling interest	—
Adjusted Earnings	6,224
Add: Non-controlling interest	77
Adjusted Earnings plus non-controlling interest	6,302	2,531	2,237	641	1,463	(51)	(519)
Add: Taxation charge/(credit) excluding tax impact of identified items	3,621	845	2,160	269	253	70	24
Add: Depreciation, depletion and amortisation excluding impairments	5,716	1,413	2,771	528	918	82	4
Add: Exploration well write-offs	186	35	151	—	—	—	—
Add: Interest expense excluding identified items	1,130	51	119	23	41	1	895
Less: Interest income	618	1	5	8	13	1	590
Adjusted EBITDA	16,336	4,874	7,433	1,453	2,661	101	(186)
Less: Current cost of supplies adjustment before taxation	(1,351)			(624)	(727)
Joint ventures and associates (dividends received less profit)	(13)	(40)	43	(19)	(19)	21	—
Derivative financial instruments	(2,549)	(454)	(20)	10	(375)	(1,407)	(304)
Taxation paid	(3,191)	(679)	(2,090)	(226)	54	(258)	8
Other	177	(44)	(57)	(485)	167	327	269
(Increase)/decrease in working capital	221	352	28	(960)	(354)	1,182	(27)
Cash flow from operating activities	12,332	4,009	5,336	397	2,862	(34)	(238)

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Nine months 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
CCS earnings	15,804	7,846	6,741	1,791	2,085	(3)	(2,656)
Less: Identified items	(4,569)	(1,379)	28	(1,255)	(1,078)	183	(1,069)
Less: CCS earnings attributable to non-controlling interest	336
Add: Identified items attributable to non-controlling interest	18
Adjusted Earnings	20,055
Add: Non-controlling interest	318
Adjusted Earnings plus non-controlling interest	20,373	9,225	6,712	3,046	3,163	(186)	(1,588)
Add: Taxation charge/(credit) excluding tax impact of identified items	11,642	2,885	7,247	1,039	562	(10)	(81)
Add: Depreciation, depletion and amortisation excluding impairments	16,874	4,154	8,169	1,647	2,599	287	18
Add: Exploration well write-offs	973	14	959
Add: Interest expense excluding identified items	3,485	136	518	35	54	4	2,737
Less: Interest income	1,824	5	17	1	69	(5)	1,736
Adjusted EBITDA	51,523	16,410	23,588	5,767	6,308	101	(650)
Less: Current cost of supplies adjustment before taxation	438			256	182
Joint ventures and associates (dividends received less profit)	(779)	(247)	(924)	89	165	138	—
Derivative financial instruments	1,153	(1,586)	53	66	(10)	2,479	152
Taxation paid	(9,092)	(2,320)	(5,832)	(432)	(182)	(415)	89
Other	(500)	(90)	(978)	612	(8)	75	(111)
(Increase)/decrease in working capital	(344)	352	827	153	(869)	570	(1,377)
Cash flow from operating activities	41,522	12,518	16,734	5,999	5,221	2,948	(1,898)



Nine months 2023	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
CCS earnings	18,901	5,325	6,388	2,832	3,310	3,361	(2,315)
Less: Identified items	(2,219)	(4,625)	(357)	314	(278)	2,778	(50)
Less: CCS earnings attributable to non-controlling interest	176
Add: Identified items attributable to non-controlling interest	—
Adjusted Earnings	20,944
Add: Non-controlling interest	176
Adjusted Earnings plus non-controlling interest	21,120	9,951	6,746	2,518	3,588	583	(2,266)
Add: Taxation charge/(credit) excluding tax impact of identified items	11,553	2,773	6,720	808	558	345	349
Add: Depreciation, depletion and amortisation excluding impairments	17,120	4,300	8,358	1,479	2,667	303	13
Add: Exploration well write-offs	625	59	566	—	—	—	—
Add: Interest expense excluding identified items	3,504	110	372	40	39	3	2,941
Less: Interest income	1,718	2	13	8	33	5	1,657
Adjusted EBITDA	52,204	17,189	22,750	4,837	6,819	1,229	(619)
Less: Current cost of supplies adjustment before taxation	(261)			(94)	(167)
Joint ventures and associates (dividends received less profit)	(167)	32	(443)	85	85	72	2
Derivative financial instruments	(5,112)	(3,071)	—	(18)	225	(1,719)	(528)
Taxation paid	(10,108)	(2,843)	(6,455)	(478)	(197)	(350)	214
Other	82	(84)	(530)	23	284	304	85
(Increase)/decrease in working capital	4,462	2,700	342	(748)	(1,019)	4,713	(1,526)
Cash flow from operating activities	41,622	13,923	15,663	3,794	6,364	4,249	(2,372)

Identified Items

Identified items comprise: divestment gains and losses, impairments, redundancy and restructuring, provisions for onerous contracts, fair value accounting of commodity derivatives and certain gas contracts and the impact of exchange rate movements and inflationary adjustments on certain deferred tax balances, and other items. Identified items in the tables below are presented on a net basis.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Q3 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)	(154)	1	(2)	(110)	(19)	(20)	(3)
Impairment reversals/(impairments)	(338)	(6)	(3)	(195)	(120)	(14)	—
Redundancy and restructuring	(552)	(69)	(189)	(136)	(141)	(26)	10
Provisions for onerous contracts	(7)	—	—	(7)	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	(602)	(252)	(13)	(78)	126	(385)	—
Other	(136)	—	(141)	(1)	(11)	16	—
Total identified items included in Income/(loss) before taxation	(1,789)	(327)	(348)	(526)	(165)	(430)	7
Less: total identified items included in Taxation charge/(credit)	(530)	(87)	(195)	(104)	(43)	(111)	10
Identified items included in Income/(loss) for the period
Divestment gains/(losses)	(129)	1	(6)	(84)	(15)	(23)	(2)
Impairment reversals/(impairments)	(288)	(4)	(2)	(179)	(92)	(10)	—
Redundancy and restructuring	(397)	(48)	(138)	(98)	(101)	(19)	7
Provisions for onerous contracts	(5)	—	—	(5)	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	(456)	(213)	(3)	(56)	95	(279)	—
Impact of exchange rate movements and inflationary adjustments on tax balances	120	24	104	—	—	—	(8)
Other	(105)	—	(108)	—	(8)	12	—
Impact on CCS earnings	(1,259)	(240)	(153)	(422)	(122)	(319)	(3)
Impact on CCS earnings attributable to non-controlling interest	—	—	—	—	—	—	—
Impact on CCS earnings attributable to Shell plc shareholders	(1,259)	(240)	(153)	(422)	(122)	(319)	(3)

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Q2 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)	143	2	131	(60)	(8)	79	—
Impairment reversals/(impairments)	(1,932)	(18)	(80)	(1,055)	(619)	(161)	—
Redundancy and restructuring	(211)	(9)	(56)	(69)	(30)	(45)	(2)
Provisions for onerous contracts	(17)	(3)	(14)	—	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	461	(102)	(29)	63	211	318	—
Other1	(1,271)	(130)	(168)	10	113	7	(1,103)
Total identified items included in Income/(loss) before taxation	(2,826)	(260)	(215)	(1,111)	(333)	198	(1,105)
Less: total identified items included in Taxation charge/(credit)	(157)	(40)	(58)	(286)	165	87	(25)
Identified items included in Income/(loss) for the period
Divestment gains/(losses)	135	1	114	(45)	(6)	71	—
Impairment reversals/(impairments)	(1,728)	(15)	(67)	(783)	(708)	(155)	—
Redundancy and restructuring	(147)	(6)	(33)	(50)	(23)	(33)	(1)
Provisions for onerous contracts	(14)	(3)	(11)	—	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	319	(98)	(7)	45	156	223	—
Impact of exchange rate movements and inflationary adjustments on tax balances	49	10	(4)	—	—	—	43
Other1	(1,284)	(111)	(148)	7	83	5	(1,122)
Impact on CCS earnings	(2,669)	(220)	(157)	(825)	(499)	112	(1,080)
Impact on CCS earnings attributable to non-controlling interest	18	—	—	—	18	—	—
Impact on CCS earnings attributable to Shell plc shareholders	(2,687)	(220)	(157)	(825)	(517)	112	(1,080)

1.Corporate includes reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These currency translation differences were previously recognised in other comprehensive income and accumulated in equity as part of accumulated other comprehensive income.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Q3 2023	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)	(75)	6	23	(10)	3	(98)	—
Impairment reversals/(impairments)	(196)	—	(15)	(2)	(103)	(76)	—
Redundancy and restructuring	(20)	(3)	(4)	(5)	(4)	(2)	(3)
Provisions for onerous contracts	—	—	—	—	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	258	(350)	38	(2)	(88)	659	—
Other	50	(25)	(236)	—	(97)	408	—
Total identified items included in Income/(loss) before taxation	17	(371)	(194)	(18)	(288)	891	(3)
Less: total identified items included in Taxation charge/(credit)	166	4	44	(6)	(75)	225	(25)
Identified items included in Income/(loss) for the period
Divestment gains/(losses)	(68)	4	8	(7)	2	(76)	—
Impairment reversals/(impairments)	(167)	—	(12)	(1)	(79)	(75)	—
Redundancy and restructuring	(14)	(2)	(2)	(4)	(3)	(1)	(2)
Provisions for onerous contracts	—	—	—	—	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	121	(340)	13	—	(59)	506	—
Impact of exchange rate movements and inflationary adjustments on tax balances	(51)	(13)	(62)	—	—	—	24
Other	29	(25)	(184)	—	(74)	312	—
Impact on CCS earnings	(149)	(375)	(238)	(12)	(213)	667	22
Impact on CCS earnings attributable to non-controlling interest	—	—	—	—	—	—	—
Impact on CCS earnings attributable to Shell plc shareholders	(149)	(375)	(238)	(12)	(213)	667	22

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Nine months 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)	—	—	155	(185)	(35)	68	(3)
Impairment reversals/(impairments)	(2,498)	(32)	(179)	(1,254)	(917)	(116)	—
Redundancy and restructuring	(837)	(79)	(258)	(226)	(190)	(86)	3
Provisions for onerous contracts	(24)	(3)	(14)	(7)	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	(1,221)	(1,421)	(44)	(9)	(79)	332	—
Other1	(1,281)	(126)	(271)	32	148	39	(1,103)
Total identified items included in Income/(loss) before taxation	(5,859)	(1,663)	(609)	(1,649)	(1,073)	238	(1,104)
Less: total identified items included in Taxation charge/(credit)	(1,290)	(284)	(638)	(394)	5	55	(35)
Identified items included in Income/(loss) for the period
Divestment gains/(losses)	2	—	118	(140)	(28)	54	(2)
Impairment reversals/(impairments)	(2,201)	(24)	(171)	(965)	(952)	(89)	—
Redundancy and restructuring	(597)	(55)	(179)	(163)	(139)	(63)	2
Provisions for onerous contracts	(19)	(3)	(11)	(5)	—	—	—
Fair value accounting of commodity derivatives and certain gas contracts	(1,032)	(1,198)	(11)	(6)	(69)	250	—
Impact of exchange rate movements and inflationary adjustments on tax balances	573	8	512	—	—	—	53
Other1	(1,293)	(107)	(228)	24	110	30	(1,122)
Impact on CCS earnings	(4,569)	(1,379)	28	(1,255)	(1,078)	183	(1,069)
Impact on CCS earnings attributable to non-controlling interest	18	—	—	—	18	—	—
Impact on CCS earnings attributable to Shell plc shareholders	(4,587)	(1,379)	28	(1,255)	(1,096)	183	(1,069)

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Nine months 2023	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)	35	(1)	76	32	(12)	(59)	—
Impairment reversals/(impairments)	(2,952)	(2,274)	(199)	(49)	(300)	(130)	—
Redundancy and restructuring	(54)	—	(10)	(22)	(4)	(1)	(16)
Provisions for onerous contracts	(24)	—	—	—	(24)	—	—
Fair value accounting of commodity derivatives and certain gas contracts	939	(3,047)	387	66	77	3,455	—
Other	116	(25)	(445)	298	(119)	408	—
Total identified items included in Income/(loss) before taxation	(1,941)	(5,347)	(192)	324	(382)	3,672	(16)
Less: total identified items included in Taxation charge/(credit)	278	(722)	165	11	(104)	894	34
Identified items included in Income/(loss) for the period
Divestment gains/(losses)	50	—	80	24	(9)	(45)	—
Impairment reversals/(impairments)	(2,284)	(1,700)	(188)	(50)	(227)	(119)	—
Redundancy and restructuring	(35)	—	(3)	(17)	(3)	(1)	(11)
Provisions for onerous contracts	(18)	—	—	—	(18)	—	—
Fair value accounting of commodity derivatives and certain gas contracts	52	(2,821)	106	60	75	2,632	—
Impact of exchange rate movements and inflationary adjustments on tax balances	8	(31)	78	—	—	—	(39)
Other	7	(74)	(431)	297	(96)	312	—
Impact on CCS earnings	(2,219)	(4,625)	(357)	314	(278)	2,778	(50)
Impact on CCS earnings attributable to non-controlling interest	—	—	—	—	—	—	—
Impact on CCS earnings attributable to Shell plc shareholders	(2,219)	(4,625)	(357)	314	(278)	2,778	(50)

The identified items categories above may include after-tax impacts of identified items of joint ventures and associates which are fully reported within “Share of profit/(loss) of joint ventures and associates” in the Consolidated Statement of Income, and fully reported as identified items included in Income/(loss) before taxation in the table above. Identified items related to subsidiaries are consolidated and reported across appropriate lines of the Consolidated Statement of Income. Only pre-tax identified items reported by subsidiaries are taken into account in the calculation of underlying operating expenses (Reference F).

Provisions for onerous contracts: Provisions for onerous contracts that relate to businesses that Shell has exited or to redundant assets or assets that cannot be used.

Fair value accounting of commodity derivatives and certain gas contracts: In the ordinary course of business, Shell enters into contracts to supply or purchase oil and gas products, as well as power and environmental products. Shell also enters into contracts for tolling, pipeline and storage capacity. Derivative contracts are entered into for mitigation of resulting economic exposures (generally price exposure) and these derivative contracts are carried at period-end market price (fair value), with movements in fair value recognised in income for the period. Supply and purchase contracts entered into for operational purposes, as well as contracts for tolling, pipeline and storage capacity, are, by contrast, recognised when the transaction occurs; furthermore, inventory is carried at historical cost or net realisable value, whichever is lower. As a consequence, accounting mismatches occur because: (a) the supply or purchase transaction is recognised in a different period, or (b) the inventory is measured on a different basis. In addition, certain contracts are, due to pricing or delivery conditions, deemed to contain embedded derivatives or written options and are also required to be carried at fair value even though they are entered into for operational purposes. The accounting impacts are reported as identified items.

Impact of exchange rate movements and inflationary adjustments on tax balances represents the impact on tax balances of exchange rate movements and inflationary adjustments arising on (a) the conversion to dollars of the local currency tax base of non-monetary assets and liabilities, as well as losses (this primarily impacts the Upstream and Integrated Gas segments) and (b) the conversion of dollar-denominated inter-segment loans to local currency, leading to taxable exchange rate gains or losses (this primarily impacts the Corporate segment).

Other identified items represent other credits or charges that based on Shell management’s assessment hinder the comparative understanding of Shell’s financial results from period to period.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

B. Adjusted Earnings per share

Adjusted Earnings per share is calculated as Adjusted Earnings (see Reference A), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 4).

C. Cash capital expenditure

Cash capital expenditure represents cash spent on maintaining and developing assets as well as on investments in the period. Management regularly monitors this measure as a key lever to delivering sustainable cash flows. Cash capital expenditure is the sum of the following lines from the Consolidated Statement of Cash Flows: Capital expenditure, Investments in joint ventures and associates and Investments in equity securities.

See Note 2 “Segment information” for the reconciliation of cash capital expenditure.

D. Capital employed and Return on average capital employed

Return on average capital employed (“ROACE”) measures the efficiency of Shell’s utilisation of the capital that it employs. Effective first quarter 2024, the definition of capital employed has been amended to reflect the deduction of cash and cash equivalents. In addition, the numerator applied to ROACE on an Adjusted Earnings plus non-controlling interest basis has been amended to remove interest on cash and cash equivalents for consistency with the revised capital employed definition. Comparative information has been revised to reflect the updated definition. Also, the presentation of ROACE on a net income basis has been discontinued, as this measure is not routinely used by management in assessing the efficiency of capital employed.

The measure refers to Capital employed which consists of total equity, current debt, and non-current debt reduced by cash and cash equivalents.

Management believes that the updated methodology better reflects Shell’s approach to managing capital employed, including the management of cash and cash equivalents alongside total debt and equity as part of the financial framework.

In this calculation, the sum of Adjusted Earnings (see Reference A) plus non-controlling interest (NCI) excluding identified items for the current and previous three quarters, adjusted for after-tax interest expense and after-tax interest income, is expressed as a percentage of the average capital employed excluding cash and cash equivalents for the same period.



$ million	Quarters
	Q3 2024	Q2 2024	Q3 2023
Current debt	10,119	12,114	8,046
Non-current debt	72,028	72,252	73,944
Total equity	192,943	192,094	190,237
Less: Cash and cash equivalents	(43,031)	(45,094)	(35,978)
Capital employed – opening	232,059	231,366	236,250
Current debt	12,015	10,849	10,119
Non-current debt	64,597	64,619	72,028
Total equity	189,538	187,190	192,943
Less: Cash and cash equivalents	(42,252)	(38,148)	(43,031)
Capital employed – closing	223,898	224,511	232,059
Capital employed – average	227,979	227,939	234,154

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



$ million	Quarters
	Q3 2024	Q2 2024	Q3 2023
Adjusted Earnings – current and previous three quarters (Reference A)	27,361	27,558	30,758
Add: Income/(loss) attributable to NCI – current and previous three quarters	376	409	275
Add: Current cost of supplies adjustment attributable to NCI – current and previous three quarters	56	(25)	(12)
Less: Identified items attributable to NCI (Reference A) – current and previous three quarters	7	7	13
Adjusted Earnings plus NCI excluding identified items – current and previous three quarters	27,787	27,935	31,008
Add: Interest expense after tax – current and previous three quarters	2,698	2,650	2,685
Less: Interest income after tax on cash and cash equivalents – current and previous three quarters	1,392	1,395	1,179
Adjusted Earnings plus NCI excluding identified items before interest expense and interest income – current and previous three quarters	29,093	29,190	32,514
Capital employed – average	227,979	227,939	234,154
ROACE on an Adjusted Earnings plus NCI basis	12.8%	12.8%	13.9%

E. Net debt and gearing

Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risk relating to debt, and associated collateral balances. Management considers this adjustment useful because it reduces the volatility of net debt caused by fluctuations in foreign exchange and interest rates, and eliminates the potential impact of related collateral payments or receipts. Debt-related derivative financial instruments are a subset of the derivative financial instrument assets and liabilities presented on the balance sheet. Collateral balances are reported under “Trade and other receivables” or “Trade and other payables” as appropriate.

Gearing is a measure of Shell’s capital structure and is defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity).



$ million
	September 30, 2024		June 30, 2024		September 30, 2023
Current debt	12,015		10,849		10,119
Non-current debt	64,597		64,619		72,028
Total debt	76,613		75,468		82,147
Of which lease liabilities	25,590		25,600		27,854
Add: Debt-related derivative financial instruments: net liability/(asset)	1,694		2,460		3,116
Add: Collateral on debt-related derivatives: net liability/(asset)	(821)		(1,466)		(1,762)
Less: Cash and cash equivalents	(42,252)		(38,148)		(43,031)
Net debt	35,234		38,314		40,470
Total equity	189,538		187,190		192,943
Total capital	224,772		225,505		233,414
Gearing	15.7	%	17.0	%	17.3	%

F. Operating expenses and Underlying operating expenses

Operating expenses

Operating expenses is a measure of Shell’s cost management performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS



Q3 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Production and manufacturing expenses	6,138	1,164	2,394	367	1,766	453	(6)
Selling, distribution and administrative expenses	3,139	(1)	(39)	2,408	453	209	110
Research and development	294	27	75	55	34	22	81
Operating expenses	9,570	1,190	2,430	2,830	2,253	684	185



Q2 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Production and manufacturing expenses	5,593	1,050	2,219	320	1,573	422	10
Selling, distribution and administrative expenses	3,094	64	62	2,295	293	279	101
Research and development	263	32	61	47	37	24	62
Operating expenses	8,950	1,146	2,341	2,662	1,902	725	173



Q3 2023	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Production and manufacturing expenses	6,384	1,125	2,266	335	1,900	760	(1)
Selling, distribution and administrative expenses1	3,447	50	42	2,448	501	286	121
Research and development1	267	30	77	60	44	(26)	81
Operating expenses	10,097	1,204	2,384	2,843	2,444	1,021	201



Nine months 2024	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Production and manufacturing expenses	17,541	3,170	6,881	1,052	4,973	1,454	10
Selling, distribution and administrative expenses	9,208	125	80	6,891	1,166	646	300
Research and development	768	85	194	136	104	58	192
Operating expenses	27,517	3,380	7,156	8,079	6,243	2,158	501



Nine months 2023	$ million
	Total	Integrated Gas	Upstream	Marketing	Chemicals and Products	Renewables and Energy Solutions	Corporate
Production and manufacturing expenses	18,433	3,341	6,591	1,030	5,579	1,878	14
Selling, distribution and administrative expenses1	9,811	114	217	6,906	1,494	787	293
Research and development1	817	84	216	184	129	2	202
Operating expenses	29,062	3,540	7,024	8,120	7,201	2,667	509

1.From the first quarter 2024, Wholesale commercial fuels forms part of Mobility with inclusion in the Marketing segment (previously Chemicals and Products segment). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact between Marketing and Chemicals and Products segments (see Note 2). Also, from the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments (see Note 2).

Underlying operating expenses

Underlying operating expenses is a measure aimed at facilitating a comparative understanding of performance from period to period by removing the effects of identified items, which, either individually or collectively, can cause volatility, in some cases driven by external factors.

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SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

Quarters

$ million

Nine months

Q3 2024

Q2 2024

Q3 2023

2024

2023

9,570

8,950

10,097

Operating expenses

27,517

29,062

(552)

(210)

(19)

Redundancy and restructuring (charges)/reversal

(834)

(51)

(154)

(212)

(343)

(Provisions)/reversal

(366)

(376)

—

123

—

Other

252

—

(706)

(299)

(362)

Total identified items

(948)

(426)

8,864

8,651

9,735

Underlying operating expenses

26,569

28,635

G. Free cash flow and Organic free cash flow

Free cash flow is used to evaluate cash available for financing activities, including dividend payments and debt servicing, after investment in maintaining and growing the business. It is defined as the sum of “Cash flow from operating activities” and “Cash flow from investing activities”.

Cash flows from acquisition and divestment activities are removed from Free cash flow to arrive at the Organic free cash flow, a measure used by management to evaluate the generation of free cash flow without these activities.



Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
14,684	13,508	12,332	Cash flow from operating activities	41,522	41,622
(3,857)	(3,338)	(4,827)	Cash flow from investing activities	(10,723)	(12,080)
10,827	10,170	7,505	Free cash flow	30,799	29,542
194	769	259	Less: Divestment proceeds (Reference I)	1,988	2,477
—	—	(3)	Add: Tax paid on divestments (reported under “Other investing cash outflows”)	—	—
—	189	3	Add: Cash outflows related to inorganic capital expenditure1	251	2,316
10,633	9,590	7,246	Organic free cash flow2	29,062	29,381

1.Cash outflows related to inorganic capital expenditure includes portfolio actions which expand Shell’s activities through acquisitions and restructuring activities as reported in capital expenditure lines in the Consolidated Statement of Cash Flows.

2.Free cash flow less divestment proceeds, adding back outflows related to inorganic expenditure.

H. Cash flow from operating activities and cash flow from operating activities excluding working capital movements

Working capital movements are defined as the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables.

Cash flow from operating activities excluding working capital movements is a measure used by Shell to analyse its operating cash generation over time excluding the timing effects of changes in inventories and operating receivables and payables from period to period.

Quarters

$ million

Nine months

Q3 2024

Q2 2024

Q3 2023

2024

2023

14,684

13,508

12,332

Cash flow from operating activities

41,522

41,622

2,705

(954)

(3,151)

(Increase)/decrease in inventories

1,143

2,237

4,057

1,965

(1,126)

(Increase)/decrease in current receivables

5,827

13,105

(4,096)

(1,269)

4,498

Increase/(decrease) in current payables1

(7,314)

(10,881)

2,665

(258)

221

(Increase)/decrease in working capital

(344)

4,462

12,019

13,766

12,111

Cash flow from operating activities excluding working capital movements

41,867

37,160

1.To further enhance consistency between working capital and the Balance Sheet and the Statement of Cash Flows, from January 1, 2024, onwards movements in current other provisions are recognised in ‘Decommissioning and other provisions’ instead of ‘Increase/(decrease) in current payables’. Comparatives for the third quarter 2023 and the nine months 2023 have been reclassified accordingly by $212 million and $40 million respectively to conform with current period presentation.

Page 37



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

I. Divestment proceeds

Divestment proceeds represent cash received from divestment activities in the period. Management regularly monitors this measure as a key lever to deliver free cash flow.



Quarters			$ million	Nine months
Q3 2024	Q2 2024	Q3 2023		2024	2023
94	710	184	Proceeds from sale of property, plant and equipment and businesses	1,128	2,024
94	57	68	Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans	284	425
6	2	7	Proceeds from sale of equity securities	576	28
194	769	259	Divestment proceeds	1,988	2,477

Page 38



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

CAUTIONARY STATEMENT

All amounts shown throughout this Unaudited Condensed Interim Financial Report are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production. The numbers presented throughout this Unaudited Condensed Interim Financial Report may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this Unaudited Condensed Interim Financial Report, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this Unaudited Condensed Interim Financial Report, refer to entities over which Shell plc either directly or indirectly has control. The term “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This Unaudited Condensed Interim Financial Report contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations 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 these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’; ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Unaudited Condensed Interim Financial Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cybersecurity breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this Unaudited Condensed Interim Financial Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2023 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this Unaudited Condensed Interim Financial Report and should be considered by the reader. Each forward-looking statement speaks only as of the date of this Unaudited Condensed Interim Financial Report, October 31, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Unaudited Condensed Interim Financial Report.

Shell’s Net Carbon Intensity

Also, in this Unaudited Condensed Interim Financial Report we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s Net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-Looking Non-GAAP measures

This Unaudited Condensed Interim Financial Report may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this Unaudited Condensed Interim Financial Report do not form part of this Unaudited Condensed Interim Financial Report.

We may have used certain terms, such as resources, in this Unaudited Condensed Interim Financial Report that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

This Unaudited Condensed Interim Financial Report contains inside information.

Page 39



SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS

October 31, 2024


The information in this Unaudited Condensed Interim Financial Report reflects the unaudited consolidated interim financial position and results of Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.

Contacts:

– Sean Ashley, Company Secretary

– Media: International +44 (0) 207 934 5550; USA +1 832 337 4355

LEI number of Shell plc: 21380068P1DRHMJ8KU70

Classification: Inside Information

Page 40

The MIL Network –

January 25, 2025

MIL-OSI: LanzaTech and Eramet announce plans for first-of-a-kind integrated Carbon Capture, Utilization and Storage (CCUS) project in Norway

Source: GlobeNewswire (MIL-OSI)

CHICAGO, Oct. 31, 2024 (GLOBE NEWSWIRE) — LanzaTech Global, Inc. (NASDAQ: LNZA) (“LanzaTech”), the carbon recycling company transforming above-ground carbon into sustainable fuels, chemicals, materials, and proteins, today announced plans to develop a commercial-scale Carbon Capture and Utilization (“CCU”) facility (the “facility”, “plant”, or “project”) at Herøya Industrial Park in Porsgrunn, Norway. The plant will produce ethanol and is expected to begin operations in 2028. Eramet will supply furnace gas as feedstock to the facility from the Porsgrunn Manganese Alloys smelter but will not participate in its financing.

To unlock further emissions reductions, the two companies also intend to build upon the CCU infrastructure and, if demonstrated to be feasible, integrate Carbon Capture and Storage (“CCS”) technology as part of a second phase of the project. The integration of LanzaTech’s CCU technology with CCS, two commercially proven carbon management solutions, is expected to establish a first-of-a-kind, integrated facility that drives leading-edge carbon abatement metrics.

The new plant at Herøya will complement the six other commercial scale plants already using LanzaTech’s carbon recycling technology to produce ethanol and the first for which LanzaTech will manage the full scope of project design, construction, and operations. The project’s Front-end Engineering Design (FEED) phase was completed with global engineering firm Fluor Corporation, which brings deep experience and expertise across the project scope and has partnered with LanzaTech in creating a baseline plant design that can be replicated for projects around the world. The project is also being supported by Sweco Group, which brings best-in-class sustainability expertise and design acumen. From a project financing standpoint, LanzaTech’s infrastructure investment partner Brookfield Asset Management will have right of first refusal for financing and owning the project, with a Final Investment Decision (FID) expected within the next six months.

LanzaTech’s proprietary technology is a fermentation process that biologically converts carbon-rich gases into sustainable raw materials, such as ethanol, for use in clothing, personal care products, packaging, fuel, and more. The facility’s maximum production capacity is expected to be 24 kilotons per annum of fuel-grade ethanol. Demand markets for this ethanol are wide ranging and include chemicals and sustainable aviation fuel. Given LanzaTech’s growing ethanol product sales business, the company intends to market the produced ethanol through its existing and emerging sales channels.

Eramet Norway’s Porsgrunn smelter has two closed furnaces producing manganese alloys. Manganese smelting falls into the category of hard-to-abate, as carbon is necessary for the chemical reduction of manganese ore. Eramet Group, headquartered in France, is engaged in an ambitious decarbonization pathway, with a target of a 40% reduction of its scope 1 & 2 emissions by 2035 set by the company’s “Act for positive mining” CSR roadmap. CCUS has been identified by Eramet as a major lever of decarbonization for its metallurgical assets. Since metallurgy represents ~90% of Eramet’s scope 1 & 2 emissions, this project makes an important contribution to the validation of a path to Near Zero CO₂-emission Manganese Alloys.

The planned integration of LanzaTech’s CCU process with CCS technology demonstrates the ability of LanzaTech’s carbon recycling platform to partner with and enable other carbon management technologies to further reduce carbon footprints. Residual output from LanzaTech’s gas fermentation process at this facility will take the form of highly concentrated CO₂, suitable for CCS, which reduces further operating and capital costs compared to a standalone CCS project.

“We are thrilled to announce plans for Norway’s first commercial carbon recycling facility using LanzaTech’s technology,” said Dr. Jennifer Holmgren, CEO of LanzaTech. “Carbon is an incredibly important resource that requires a wide range of solutions to manage responsibly. By recycling above-ground carbon with our CCU process, this groundbreaking project gets us another step closer to realizing an enduring global circular carbon economy.”

The facility in Porsgrunn would allow the Eramet Norway Porsgrunn smelter to achieve a significant reduction in its CO₂ emissions. The potential inclusion of CCS in the project is pending results of a feasibility study and financing, though the companies remain optimistic about its implementation as further support of Norway’s position as a frontrunner in the deployment of CCUS.

In addition to CO₂ emissions reductions, the LanzaTech-Eramet collaboration will positively impact the local community by creating new jobs in the thriving industrial region of Grenland, and furthers the municipality’s reputation for technological innovation.

Geoff Streeton, Chief Development Officer, in charge of strategy, innovation and business development at Eramet, stated (to be quoted for the global version), ‘Eramet is pleased to be collaborating with LanzaTech on this first-of-its-kind decarbonization project of our manganese smelters. Firstly, to ensure optimal circular value creation in the use our energy-rich furnace gas. Secondly, this creates an attractive option to further liquefy and ultimately sequester the remaining CO₂streams. On a combined basis these CCU & CCS projects at Porsgrunn could bring a reduction of the company’s CO₂emissions by ~200 kt of Eramet’s Scope 1 & 2 emissions. This project brings Eramet closer towards its target of producing and offering a Zero CO₂manganese alloy product for the benefit of decarbonizing the value chain of steel.’

About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) is the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein for everyday products. Using its biorecycling technology, LanzaTech captures carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives that captured carbon a new life as a clean replacement for virgin fossil carbon in everything from household cleaners and clothing fibers to packaging and fuels. By partnering with companies across the global supply chain like ArcelorMittal, Zara, H&M Move, Coty, On, and LanzaJet, LanzaTech is paving the way for a circular carbon economy. For more information about LanzaTech, visit https://lanzatech.com.

About Eramet
Eramet transforms the Earth’s mineral resources to provide sustainable and responsible solutions to the growth of the industry and to the challenges of the energy transition. Its employees are committed to this through their civic and contributory approach in all the countries where the mining and metallurgical group is present. Manganese, nickel, mineral sands, and lithium: Eramet recovers and develops metals that are essential to the construction of a more sustainable world. As a privileged partner of its industrial clients, the Group contributes to making robust and resistant infrastructures and constructions, more efficient means of mobility, safer health tools and more efficient telecommunications devices. Fully committed to the era of metals, Eramet’s ambition is to become a reference for the responsible transformation of the Earth’s mineral resources for living well together.
www.eramet.com

Eramet Norway
Operating manganese smelters in Porsgrunn, Sauda and Kvinesdal, Eramet Norway AS is fully owned by the French mining and metallurgical group Eramet SA and part of the Group’s manganese alloy business unit.
Eramet Norway AS has a world leading market position on refined manganese alloys with one of the industry’s lowest carbon footprints, and is ambitiously pursuing the ultimate target of producing Zero CO₂ manganese alloys for the benefit of decarbonizing the value chain of steel.
www.eramet.no

Forward Looking Statements
This press release includes forward-looking statements regarding, among other things, the plans, strategies, and prospects, both business and financial, of LanzaTech. These statements are based on the beliefs, assumptions, projections and conclusions of LanzaTech’s management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions, many of which are outside LanzaTech’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. LanzaTech cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are not guarantees of future performance, conditions or results, and you should not rely on forward-looking statements.

Generally, statements that are not historical facts, including those concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or similar expressions. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (a) timing delays in the advancement of projects to the final investment decision stage or into construction; (b) failure by customers to adopt new technologies and platforms; (c) fluctuations in the availability and cost of feedstocks and other process inputs; (d) the availability and continuation of government funding and support; (e) broader economic conditions, including inflation, interest rates, supply chain disruptions, employment conditions, and competitive pressures; (f) unforeseen technical, regulatory, or commercial challenges in scaling proprietary technologies, business functions or operational disruptions; and (g) other economic, business, or competitive factors, and other risks and uncertainties, including the risk factors and other information contained in LanzaTech’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, as well as other existing and future filings with the U.S. Securities and Exchange Commission.

Any forward-looking statement herein is based only on information currently available to LanzaTech and speaks only as of the date on which it is made. LanzaTech undertakes no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media contact LanzaTech:
LanzaTech Global, Inc.
Investor Relations
Kate Walsh
VP, Investor Relations & Tax
Investor.Relations@lanzatech.com

Media Relations
Kit McDonnell
Director of Communications
press@lanzatech.com

Media contact Eramet:
Fanny Mounier
Media Manager
fanny.mounier@eramet.com
+33 145383732

Media contact Eramet Norway:
Kåre Bjarte Bjelland
Director Public Affairs
kare.bjarte.bjelland@eramet.com
+47 91636493

The MIL Network –

January 25, 2025

MIL-OSI: Shell plc Third Quarter 2024 Interim Dividend

Source: GlobeNewswire (MIL-OSI)

Shell plc Third Quarter 2024 Interim Dividend

London, October 31, 2024 − The Board of Shell plc (the “Company”) (XLON: SHEL, XNYS: SHEL, XAMS: SHELL) today announced an interim dividend in respect of the third quarter of 2024 of US$ 0.344 per ordinary share.

Details relating to the third quarter 2024 interim dividend

Per ordinary share (GB00BP6MXD84)	Q3 2024
Shell Shares (US$)	0.344

Shareholders will be able to elect to receive their dividends in US dollars, euros or pounds sterling.

Absent any valid election to the contrary, persons holding their ordinary shares through Euroclear Nederland will receive their dividends in euros.

Absent any valid election to the contrary, shareholders (both holding in certificated and uncertificated form (CREST members)) and persons holding their shares through the Shell Corporate Nominee will receive their dividends in pounds sterling.

The pound sterling and euro equivalent dividend payments will be announced on December 9, 2024.

Per ADS (US7802593050)	Q3 2024
Shell ADSs (US$)	0.688

Cash dividends on American Depositary Shares (“ADSs”) will be paid, by default, in US dollars.

Each ADS represents two ordinary shares. ADSs are evidenced by an American Depositary Receipt (“ADR”) certificate. In many cases the terms ADR and ADS are used interchangeably.

Dividend timetable for the third quarter 2024 interim dividend

Event	Date
Announcement date	October 31, 2024
Ex- Dividend Date for ADSs	November 15, 2024
Ex- Dividend Date for ordinary shares	November 14, 2024
Record date	November 15, 2024
Closing of currency election date (see Note below)	November 29, 2024
Pound sterling and euro equivalents announcement date	December 9, 2024
Payment date	December 19, 2024

Note

A different currency election date may apply to shareholders holding shares in a securities account with a bank or financial institution ultimately holding through Euroclear Nederland. This may also apply to other shareholders who do not hold their shares either directly on the Register of Members or in the corporate sponsored nominee arrangement. Shareholders can contact their broker, financial intermediary, bank or financial institution for the election deadline that applies.

Taxation – cash dividends

If you are uncertain as to the tax treatment of any dividends you should consult your tax advisor.

Dividend Reinvestment Programmes (“DRIP”)

The following organisations offer Dividend Reinvestment Plans (“DRIPs”) which enable the Company’s shareholders to elect to have their dividend payments used to purchase the Company’s shares:

Equiniti Financial Services Limited (“EFSL”), for those holding shares (a) directly on the register as certificate holder or as CREST Member and (b) via the Shell Corporate Nominee;
ABN-AMRO NV (“ABN”) for Financial Intermediaries holding shares via Euroclear Nederland;
JPMorgan Chase Bank, N.A. (“JPM”) for holders of ADSs; and
Other DRIPs may also be available from the intermediary through which investors hold their shares and ADSs.

These DRIP offerors provide their DRIPs fully on their account and not on behalf of the Company. Interested parties should contact the relevant DRIP offeror directly.

More information can be found at https://www.shell.com/drip

To be eligible to participate in the DRIPs for the next dividend, shareholders must make a valid dividend reinvestment election before the published date for the close of elections.

Enquiries
Media International: +44 207 934 5550
Media Americas: +1 832 337 4355

Cautionary Note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The term “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements
This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations 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 these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’; ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cybersecurity breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2023 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, October 31, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s Net Carbon Intensity
Also, in this announcement we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-zero emissions target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-Looking non-GAAP measures
This announcement may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this announcement do not form part of this announcement.

We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Additional regulated information required to be disclosed under the laws of a Member State

The MIL Network –

January 25, 2025

MIL-OSI Security: Defense Contractor, Former Executive Indicted for Bribing Government Employee

Source: Office of United States Attorneys

SAN DIEGO – A federal grand jury has returned an indictment charging Cask Technologies, LLC and former company executive Mark Larsen with bribing a government employee to win lucrative government contracts.

According to court records, Larsen and his subordinates at Cask gave former Naval Information Warfare Center employee James Soriano various things of value, including expensive meals, golf outings, and full-time jobs for Soriano’s close family friend and immediate family member. At the time of the conspiracy, Larsen was the director, and later the managing director, vice president, and executive vice president of Cask with offices in San Diego and Stafford, Virginia.

In return, Soriano took official action to benefit Cask, such as steering non-competitive small business contracts to Cask and its “family” of companies; allowing Larsen and other Cask employees to draft procurement documents for various contracting efforts, including competitive procurements; and allowing Larsen and others to “ghost write” emails, official government correspondence, and performance evaluations for Soriano’s signature, all to benefit Cask and others in its “family” of companies.

Soriano also agreed in an email exchange to “create & award” a $50 million supposedly competitive contract for services to Cask. Soriano then allowed Cask to draft the contract requirements and the price the government was expected to pay, and took other actions to ensure that Cask was awarded the “competitive” contract.

To conceal their activities, Larsen, Cask and Soriano failed to disclose organizational conflicts of interest in relation to their contracting efforts and that Cask was affiliated to other companies in its “family” of companies, including two Native Hawaiian 8(a) companies that were subcontracting millions of dollars of work on 8(a) contracts to Cask.

Soriano has already pleaded guilty to multiple bribery schemes, including facts related to his relationship with Larsen and Cask. He is scheduled to be sentenced in May 2025.

“Defense contracts support our military, and as such play an important role in keeping us all safe,” said U.S. Attorney Tara K. McGrath. “Allowing bribery and corruption to dictate who obtains those important contracts undermines the system and dishonors our defense operations.”

“This newest indictment is another constructive step toward accountability in this ongoing multi-year investigation,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “Mr. Larsen and Cask Technologies are accused of feeding their own greed by knowingly corrupting the government’s acquisition process and some government officials at the expense of our nation’s warfighters and taxpayers.”

“The allegations in this case highlight the serious repercussions of undermining the integrity of the Department of the Navy’s procurement process. By prioritizing personal gain over fair competition, such actions can compromise the readiness and, potentially, the safety of our warfighters,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “We, alongside our investigative partners, are committed to exposing unlawful activity and restoring public trust in the systems designed to protect our nation’s security.”

“This case demonstrates our commitment to working with our law enforcement partners to root out fraud and corruption in government contracting,” said Weston King, SBA OIG Western Region Special Agent in Charge. “These defendants are accused of working together to exploit the 8(a) program, actions that would defraud the government but also compromise the integrity of the program designed to uplift deserving entrepreneurs. I would like to thank the U.S. Attorney’s Office and law enforcement partners for their continued pursuit of justice and holding accountable those who engage in fraudulent schemes.”

“This indictment demonstrates IRS CI’s commitment to leaving no stone unturned when we investigate DOD contract fraud,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Those who undermine the DOD contracting process put our warfighters at risk, and we will not rest on a case until we find all complicit parties and the evidence necessary to bring them to court.”

This case is being prosecuted by Assistant U.S. Attorneys Patrick Swan and Katherine McGrath.

DEFENDANTS                                 Case Number 24cr2111-TWR

Mark Larsen                                        Age: 46                                   San Diego, CA

Cask Technologies, LLC Stafford, VA

SUMMARY OF CHARGES

Conspiracy to Commit Bribery – Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison; $250,000 fine

Bribery – Title 18, U.S.C., Section 201

Maximum penalty: Fifteen years in prison; $250,000 fine for an individual or $500,000 for an organization, or three times the monetary equivalent of the thing of value, whichever is greater.

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration – Office of Inspector General

Internal Revenue Service Criminal Investigation

Department of Health and Human Services – Office of Inspector General

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.



MIL Security OSI –

January 25, 2025
MIL-OSI United Kingdom: More than 400,000 customers use SLC’s digital refund service in first six months
Source: United Kingdom – Executive Government & Departments

Student Loans Company improves online customer experience with introduction of new digital refund service.
A new digital refund service has been used by 418,000 customers in the first six months. As it continues to improve its customer experience, and in response to customer feedback, in May 2024, SLC introduced a new service into the online account for repayment customers.

The simple, digital service is an easy way for customers to self-serve, requesting a below threshold refund, which is then paid directly into their bank account.

The figure has been announced today (31 October 2024) as SLC’s issues a new statistical publication – Student loan repayments via PAYE eligible for refund – Tax Year 2023/24. The ad hoc statistical release provides more information on the total number of customers who have made repayments under the four refund scenarios, the total amount repaid, as well as the total refunds provided to customers in 23/24 tax year.

Under the Education (Student Loans) (Repayment) Regulations, there are four refund scenarios, which the publication covers. These are:

· Below Threshold Refunds – a correct repayment may be taken if a customer’s earnings are above the pay period threshold (e.g. due to overtime or bonus) but their total income for the year is below the annual threshold. SLC must wait until HMRC provides the customer’s annual earnings information at the end of the tax year, before a refund can be provided to eligible customers.

· Over-repayment refunds – when a customer had paid off their loan, but an additional repayment is taken, due to the timing of pay dates and the request to stop deductions being processed at the employer side. If SLC has up-to-date bank details, a refund will be paid automatically to the customer.

· Early repayment refunds – a customer has a repayment taken before they are required to begin repaying (a statutory date that generally occurs in April after they finish or leave their course and commence employment).

· Wrong plan type refunds – the employer places the customer on the wrong plan type for their loan.

Since May, £61.6m has been successfully refunded to 248,000 customers, in the below threshold refund scenario, as a result of the new refund service. To support the introduction of the new service, SLC has proactively contacted customers who are eligible for a below threshold refund* in the 23/24 tax year. From the almost 700,000 customers that have been contacted (by the end of October 2024), 75% of customers have opened the email and a third have requested a refund, after considering their own personal and financial circumstances.

Annual earnings information is received from HMRC throughout the year, and SLC will continue to proactively communicate with customers as eligible refunds are identified.

SLC cannot provide financial advice, and customers are urged to consider their own personal circumstances before requesting a refund. Any refund provided will be added back onto the customer’s student loan balance.

Steven Darling, Customer Experience Director, at SLC, said: “At SLC, we want to provide the best possible customer experience, and from the feedback we receive from customers, they want to be able to self-serve in their online account.

“With a below threshold refund being the most common reason why a customer might be eligible for a refund, we’ve made it quick and easy to request a refund through the online account. The figures in our latest report demonstrate the value of these improvements, with £61.6m being paid to 248,000 customers since May 2024.

“I would encourage customers to keep their contact and bank details up to date in their online account to ensure they don’t miss any key communication regarding refunds.”

Customers can read all of SLC’s guidance and refund information here, which also includes a step by step video guide of how to request a refund through their online account.

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Updates to this page

Published 31 October 2024
MIL OSI United Kingdom –
January 25, 2025

MIL-OSI: Radware Reports Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Third Quarter 2024 Financial Results and Highlights

Revenue of $69.5 million, an increase of 13% year–over–year
Cloud ARR of $71.6 million, an increase of 15% year-over-year
Non-GAAP diluted EPS of $0.23 vs. $0.07 in Q3 2023; GAAP diluted EPS of $0.07 vs. $(0.16) in Q3 2023
Cash flow from operations of $14.7 million and $58.9 million year-to-date

TEL AVIV, Israel, Oct. 31, 2024 (GLOBE NEWSWIRE) — Radware^® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the third quarter ended September 30, 2024.

“We are pleased to report solid third-quarter results, highlighted by 13% year-over-year revenue growth and a significant improvement in profitability and cash flow from operations,” said Roy Zisapel, Radware’s President and CEO. “Our results reflect double-digit growth in subscription revenue, strong sales of software subscriptions, and the ongoing success of DefensePro X, which carries with it more subscription revenue. We are excited about the momentum we’ve built and our future growth prospects.”

Financial Highlights for the Third Quarter 2024
Revenue for the third quarter of 2024 totaled $69.5 million:

Revenue in the Americas region was $27.7 million for the third quarter of 2024, an increase of 11% from $24.9 million in the third quarter of 2023.
Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $25.2 million for the third quarter of 2024, an increase of 30% from $19.3 million in the third quarter of 2023.
Revenue in the Asia-Pacific (“APAC”) region was $16.6 million for the third quarter of 2024, a decrease of 5% from $17.4 million in the third quarter of 2023.

GAAP net income for the third quarter of 2024 was $3.1 million, or $0.07 per diluted share, compared to GAAP net loss of $6.9 million, or $(0.16) per diluted share, for the third quarter of 2023.

Non-GAAP net income for the third quarter of 2024 was $10.2 million, or $0.23 per diluted share, compared to non-GAAP net income of $2.9 million, or $0.07 per diluted share, for the third quarter of 2023.

As of September 30, 2024, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $411.7 million. Cash flow from operations was $14.7 million in the third quarter of 2024.

Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company’s non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release.

Conference Call
Radware management will host a call today, October 31, 2024, at 8:30 a.m. EDT to discuss its third quarter 2024 results and fourth quarter 2024 outlook. To participate on the call, please use the following numbers:
U.S. participants call toll free: 888-510-2008
International participants call: 1 646-960-0306
Conference ID: 1864701

A replay will be available for two days, starting two hours after the end of the call, on telephone number +1-609-800-9099 or (US toll-free) 800-770-2030. Passcode 1864701.

The call will be webcast live on the Company’s website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months.

Use of Non-GAAP Financial Information and Key Performance Indicators
In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax–related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware’s management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware’s ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors.

Annual recurring revenue (“ARR”) is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business.

Safe Harbor Statement

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware’s plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.” Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware’s current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, and the tensions between China and Taiwan; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; a shortage of components or manufacturing capacity could cause a delay in our ability to fulfill orders or increase our manufacturing costs; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia’s military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cyber security and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors, or by a critical system failure; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns, such as the COVID-19 pandemic; our net losses in the past two years and possibility we may incur losses in the future; a slowdown in the growth of the cyber security and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com.

About Radware
Radware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware’s solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website.

Radware encourages you to join our community and follow us on: Facebook, LinkedIn, Radware Blog, X, YouTube, and Radware Mobile for iOS.

©2024 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.

Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

CONTACTS
Investor Relations:
Yisca Erez, +972-72-3917211, ir@radware.com

Media Contact:
Gerri Dyrek, gerri.dyrek@radware.com

Radware Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)

	September 30,	December 31,
	2024	2023
	(Unaudited)	(Unaudited)
Assets

Current assets
Cash and cash equivalents	115,416	70,538
Marketable securities	94,809	86,372
Short-term bank deposits	111,998	173,678
Trade receivables, net	19,963	20,267
Other receivables and prepaid expenses	9,891	9,529
Inventories	13,543	15,544
	365,620	375,928

Long-term investments
Marketable securities	30,991	33,131
Long-term bank deposits	58,468	–
Other assets	2,104	2,166
	91,563	35,297


Property and equipment, net	16,499	18,221
Intangible assets, net	12,742	15,718
Other long-term assets	35,312	37,967
Operating lease right-of-use assets	18,433	20,777
Goodwill	68,008	68,008
Total assets	608,177	571,916

Liabilities and equity

Current liabilities
Trade payables	6,551	4,298
Deferred revenues	109,924	105,012
Operating lease liabilities	4,333	4,684
Other payables and accrued expenses	46,427	41,021
	167,235	155,015

Long-term liabilities
Deferred revenues	65,916	60,499
Operating lease liabilities	13,658	16,020
Other long-term liabilities	14,173	17,108
	93,747	93,627

Equity
Radware Ltd. equity
Share capital	749	742
Additional paid-in capital	548,240	529,209
Accumulated other comprehensive income	593	77
Treasury stock, at cost	(366,588)	(365,749)
Retained earnings	123,398	119,812
Total Radware Ltd. shareholder’s equity	306,392	284,091

Non–controlling interest	40,803	39,183

Total equity	347,195	323,274

Total liabilities and equity	608,177	571,916

Radware Ltd. Condensed Consolidated Statements of Income (Loss) (U.S Dollars in thousands, except share and per share data)

	For the three months ended		For the nine months ended
	September 30,		September 30,
	2024	2023	2024	2023
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)

Revenues	69,488	61,612	201,849	196,260
Cost of revenues	13,392	12,838	39,260	38,886
Gross profit	56,096	48,774	162,589	157,374

Operating expenses, net:
Research and development, net	18,654	20,614	56,251	62,905
Selling and marketing	30,500	30,532	89,945	94,368
General and administrative	6,948	7,824	21,271	24,378
Total operating expenses, net	56,102	58,970	167,467	181,651

Operating loss	(6)	(10,196)	(4,878)	(24,277)
Financial income, net	4,957	3,778	12,982	10,688
Income (loss) before taxes on income	4,951	(6,418)	8,104	(13,589)
Taxes on income	1,807	433	4,518	2,151
Net income (loss)	3,144	(6,851)	3,586	(15,740)

Basic net income (loss) per share attributed to Radware Ltd.’s shareholders	0.07	(0.16)	0.09	(0.36)

Weighted average number of shares used to compute basic net income (loss) per share	41,956,001	42,261,637	41,854,984	43,232,405

Diluted net income (loss) per share attributed to Radware Ltd.’s shareholders	0.07	(0.16)	0.08	(0.36)

Weighted average number of shares used to compute diluted net income (loss) per share	43,573,161	42,261,637	43,199,279	43,232,405

	Radware Ltd. Reconciliation of GAAP to Non-GAAP Financial Information (U.S Dollars in thousands, except share and per share data)

		For the three months ended		For the nine months ended
		September 30,		September 30,
		2024	2023	2024	2023
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
GAAP gross profit		56,096	48,774	162,589	157,374
	Share-based compensation	81	177	240	403
	Amortization of intangible assets	992	992	2,976	2,976
Non-GAAP gross profit		57,169	49,943	165,805	160,753

GAAP research and development, net		18,654	20,614	56,251	62,905
	Share-based compensation	1,421	2,064	4,679	6,200
Non-GAAP Research and development, net		17,233	18,550	51,572	56,705

GAAP selling and marketing		30,500	30,532	89,945	94,368
	Share-based compensation	2,548	2,134	7,708	9,065
	Restructuring costs	–	1,273	–	1,273
Non-GAAP selling and marketing		27,952	27,125	82,237	84,030

GAAP general and administrative		6,948	7,824	21,271	24,378
	Share-based compensation	2,008	2,884	6,480	9,483
	Acquisition costs	159	211	571	769
Non-GAAP general and administrative		4,781	4,729	14,220	14,126

GAAP total operating expenses, net		56,102	58,970	167,467	181,651
	Share-based compensation	5,977	7,082	18,867	24,748
	Acquisition costs	159	211	571	769
	Restructuring costs	–	1,273	–	1,273
Non-GAAP total operating expenses, net		49,966	50,404	148,029	154,861

GAAP operating loss		(6)	(10,196)	(4,878)	(24,277)
	Share-based compensation	6,058	7,259	19,107	25,151
	Amortization of intangible assets	992	992	2,976	2,976
	Acquisition costs	159	211	571	769
	Restructuring costs	–	1,273	–	1,273
Non-GAAP operating income (loss)		7,203	(461)	17,776	5,892

GAAP financial income, net		4,957	3,778	12,982	10,688
	Exchange rate differences, net on balance sheet items included in financial income, net	(86)	37	(231)	(770)
Non-GAAP financial income, net		4,871	3,815	12,751	9,918

GAAP income (loss) before taxes on income		4,951	(6,418)	8,104	(13,589)
	Share-based compensation	6,058	7,259	19,107	25,151
	Amortization of intangible assets	992	992	2,976	2,976
	Acquisition costs	159	211	571	769
	Restructuring costs	–	1,273	–	1,273
	Exchange rate differences, net on balance sheet items included in financial income, net	(86)	37	(231)	(770)
Non-GAAP income before taxes on income		12,074	3,354	30,527	15,810

GAAP taxes on income		1,807	433	4,518	2,151
	Tax related adjustments	62	62	185	185
Non-GAAP taxes on income		1,869	495	4,703	2,336

GAAP net income (loss)		3,144	(6,851)	3,586	(15,740)
	Share-based compensation	6,058	7,259	19,107	25,151
	Amortization of intangible assets	992	992	2,976	2,976
	Acquisition costs	159	211	571	769
	Restructuring costs	–	1,273	–	1,273
	Exchange rate differences, net on balance sheet items included in financial income, net	(86)	37	(231)	(770)
	Tax related adjustments	(62)	(62)	(185)	(185)
Non-GAAP net income		10,205	2,859	25,824	13,474

GAAP diluted net income (loss) per share		0.07	(0.16)	0.08	(0.36)
	Share-based compensation	0.14	0.17	0.45	0.57
	Amortization of intangible assets	0.02	0.03	0.07	0.07
	Acquisition costs	0.00	0.00	0.01	0.02
	Restructuring costs	0.00	0.03	0.00	0.03
	Exchange rate differences, net on balance sheet items included in financial income, net	(0.00)	0.00	(0.01)	(0.02)
	Tax related adjustments	(0.00)	(0.00)	(0.00)	0.00
Non-GAAP diluted net earnings per share		0.23	0.07	0.60	0.31


Weighted average number of shares used to compute non-GAAP diluted net earnings per share		43,573,161	43,163,159	43,199,279	44,058,549

Radware Ltd. Condensed Consolidated Statements of Cash Flow (U.S. Dollars in thousands)

	For the three months ended		For the nine months ended
	September 30,		September 30,
	2024	2023	2024	2023
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Cash flow from operating activities:

Net income (loss)	3,144	(6,851)	3,586	(15,740)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,947	3,025	8,918	9,216
Share-based compensation	6,058	7,259	19,107	25,151
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net	(234)	161	(227)	1,116
Loss related to securities, net	–	–	–	244
Increase (decrease) in accrued interest on bank deposits	(814)	(2,289)	4,645	(3,814)
Increase (decrease) in accrued severance pay, net	147	(401)	106	(506)
Decrease in trade receivables, net	5,536	4,448	304	5,380
Decrease (increase) in other receivables and prepaid expenses and other long-term assets	749	(215)	1,155	(2,541)
Decrease (increase) in inventories	253	(671)	2,001	(1,566)
Increase (decrease) in trade payables	2,474	(1,778)	2,253	(395)
Increase (decrease) in deferred revenues	(6,059)	(12,311)	10,329	(11,095)
Increase (decrease) in other payables and accrued expenses	259	644	7,052	(10,798)
Operating lease liabilities, net	248	(804)	(369)	(805)
Net cash provided by (used in) operating activities	14,708	(9,783)	58,860	(6,153)

Cash flows from investing activities:

Purchase of property and equipment	(1,412)	(1,130)	(4,220)	(4,493)
Proceeds from other long-term assets, net	46	29	40	77
Proceeds from (investment in) bank deposits, net	9,731	21,145	(1,433)	51,345
Investment in, redemption of and purchase of marketable securities, net	5,541	2,228	(4,456)	347
Net cash provided by (used in) investing activities	13,906	22,272	(10,069)	47,276

Cash flows from financing activities:

Proceeds from exercise of share options	–	–	3	308
Repurchase of shares	–	(20,648)	(839)	(53,131)
Payment of contingent consideration related to acquisition	–	(2,063)	(3,077)	(2,063)
Net cash used in financing activities	–	(22,711)	(3,913)	(54,886)

Increase (decrease) in cash and cash equivalents	28,614	(10,222)	44,878	(13,763)
Cash and cash equivalents at the beginning of the period	86,802	42,644	70,538	46,185
Cash and cash equivalents at the end of the period	115,416	32,422	115,416	32,422

	Radware Ltd. RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (U.S Dollars in thousands)

		For the three months ended		For the nine months ended
		September 30,		September 30,
		2024	2023	2024	2023
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
GAAP net income (loss)		3,144	(6,851)	3,586	(15,740)
	Exclude: Financial income, net	(4,957)	(3,778)	(12,982)	(10,688)
	Exclude: Depreciation and amortization expense	2,947	3,025	8,918	9,216
	Exclude: Taxes on income	1,807	433	4,518	2,151
EBITDA		2,941	(7,171)	4,040	(15,061)

	Share-based compensation	6,058	7,259	19,107	25,151
	Restructuring costs	–	1,273	–	1,273
	Acquisition costs	159	211	571	769
Adjusted EBITDA		9,158	1,572	23,718	12,132


		For the three months ended		For the nine months ended
		September 30,		September 30,
		2024	2023	2024	2023
	Amortization of intangible assets	992	992	2,976	2,976
	Depreciation	1,955	2,033	5,942	6,240
		2,947	3,025	8,918	9,216

The MIL Network –

January 25, 2025

MIL-OSI: Cenovus announces third quarter 2024 results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Oct. 31, 2024 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its financial and operating results for the third quarter of 2024. The company generated nearly $2.5 billion in cash from operating activities, $2.0 billion of adjusted funds flow and $614 million of free funds flow in the quarter. Upstream production of more than 771,000 barrels of oil equivalent per day (BOE/d)¹ was slightly lower compared with the second quarter primarily because of turnaround activity at the Christina Lake oil sands facility. Turnaround impacts to production were lower than forecast, as Christina Lake completed its turnaround ahead of schedule. In the downstream, total throughput increased by about 20,000 barrels per day (bbls/d) from the second quarter to almost 643,000 bbls/d, and a major turnaround was successfully completed at the Lima Refinery.

“We are efficiently and effectively progressing our major projects and our growth plan is on track to deliver increased production that will enhance shareholder returns for the long term,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “With planned upstream and downstream maintenance activities behind us, we’re well positioned to deliver strong operations for the balance of the year and into 2025.”

Recent highlights

Returned $1.1 billion of cash to shareholders in the third quarter, including $732 million in share purchases and base dividends of $329 million.
Completed the Christina Lake turnaround safely and well ahead of schedule, resulting in production from the asset exceeding the company’s forecast by 15,000 bbls/d to 20,000 bbls/d in the quarter.
Completed a major turnaround at the Lima Refinery on schedule, with pipeline connections to the Toledo Refinery enabling Lima crude runs to continue at a reduced rate, avoiding a full shutdown.
Began production from two new well pads at Sunrise which will ramp up in the fourth quarter, which are part of the Sunrise growth program.
Completed the SeaRose floating production, storage and offloading (FPSO) vessel asset life extension work with resumed volumes around year end, achieving a critical milestone for the West White Rose project.
All major projects remain on track to deliver significant growth with West White Rose, Foster Creek optimization, Sunrise growth program and Narrows Lake pipeline progressing as expected.

Third-quarter results

Financial summary

($ millions, except per share amounts)	2024 Q3	2024 Q2	2023 Q3
Cash from (used in) operating activities	2,474	2,807	2,738
Adjusted funds flow²	1,960	2,361	3,447
Per share (diluted)²	1.05	1.26	1.81
Capital investment	1,346	1,155	1,025
Free funds flow²	614	1,206	2,422
Excess free funds flow²	146	735	1,989
Net earnings (loss)	820	1,000	1,864
Per share (diluted)	0.42	0.53	0.97
Long-term debt, including current portion	7,199	7,275	7,224
Net debt	4,196	4,258	5,976

Production and throughput

(before royalties, net to Cenovus)	2024 Q3	2024 Q2	2023 Q3
Oil and NGLs (bbls/d)¹	630,500	656,300	652,400
Conventional natural gas (MMcf/d)	844.6	867.2	867.4
Total upstream production (BOE/d)¹	771,300	800,800	797,000
Total downstream throughput (bbls/d)	642,900	622,700	664,300

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

Operating results¹

Cenovus’s total revenues were approximately $14.2 billion in the third quarter, down from $14.9 billion in the prior quarter, primarily due to lower commodity prices, which impacted both upstream and downstream results. Planned turnaround activities reduced production, primarily at the Christina Lake oil sands facility and Rainbow Lake conventional operations, as well as in the Atlantic region due to the SeaRose FPSO asset life extension, and reduced throughput at the Lima Refinery.

Upstream revenues were about $7.3 billion, down from $7.9 billion in the second quarter, while downstream revenues were approximately $9.2 billion, up from $9.1 billion in the prior quarter. Total operating margin³ was about $2.4 billion, compared with $2.9 billion in the previous quarter. Upstream operating margin⁴ was approximately $2.7 billion, down from $3.1 billion in the second quarter. The company had a downstream operating margin⁴ shortfall of $323 million in the third quarter as the Lima Refinery underwent a major planned turnaround, compared with a shortfall of $153 million in the previous quarter. In the third quarter, operating margin in U.S. Refining included approximately $209 million of first in, first out (FIFO) losses and about $100 million of turnaround expenses and improvement projects executed during the Lima turnaround.

Total upstream production was 771,300 BOE/d in the third quarter, a decrease of 29,500 BOE/d from the prior quarter due to turnarounds at Christina Lake, Rainbow Lake and other Conventional facilities. Christina Lake production was 211,800 bbls/d, compared to 237,100 bbls/d in the second quarter, as a result of the planned turnaround activity. Production impacted by the Christina Lake turnaround was restored ahead of schedule. Foster Creek and Sunrise production increased quarter-over-quarter, with 198,000 bbls/d at Foster Creek compared with 195,000 bbls/d in the second quarter and Sunrise production of 50,400 bbls/d compared with 46,100 bbls/d in the second quarter. Production from the Lloydminster thermal and Lloydminster conventional heavy assets was 109,400 bbls/d and 16,300 bbls/d respectively, both slightly below the prior quarter.

Production in the Conventional segment was 118,100 BOE/d in the third quarter, a slight decrease from 123,100 BOE/d in the second quarter, as turnaround activities were safely completed at Rainbow Lake and other Conventional facilities.

In the Offshore segment, production was 65,500 BOE/d compared with 66,200 BOE/d in the second quarter. In Asia Pacific, sales volumes were 56,500 BOE/d, slightly lower than the previous quarter due to the completion of planned maintenance on the Liwan offshore platform and at the onshore Gaolan gas plant. In the Atlantic, production was 9,000 bbls/d, up from 8,400 bbls/d in the prior quarter as the non-operated Terra Nova field continues to ramp up to full rates. Planned maintenance work on the SeaRose FPSO was completed at the dry dock in Belfast and the vessel is returning to the White Rose field, with production expected to resume by year end.

Refining throughput in the third quarter was 642,900 bbls/d, an increase from 622,700 bbls/d in the second quarter, primarily due to reduced maintenance activity. Crude throughput in Canadian Refining was 99,400 bbls/d in the third quarter, compared with 53,800 bbls/d in the previous quarter, with the increase primarily due to a major turnaround at the Lloydminster Upgrader which impacted second quarter throughput.

In U.S. Refining, crude throughput was 543,500 bbls/d in the third quarter, compared with 568,900 bbls/d in the second quarter. Throughput decreased primarily due to a major turnaround at the Lima Refinery that commenced in September, which resulted in the plant running at reduced crude throughput rates. Market capture in the U.S. was lower than the previous quarter primarily due to inventory timing impacts, the Lima Refinery turnaround and unplanned outages in secondary units at the operated and non-operated refineries. Subsequent to the quarter, the turnaround at Lima was safely and successfully completed in October.

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

Financial results

Cash from operating activities in the third quarter, which includes changes in non-cash working capital, was about $2.5 billion, compared with $2.8 billion in the second quarter. Adjusted funds flow was approximately $2.0 billion, compared with $2.4 billion in the prior period and excess free funds flow (EFFF) was $146 million, compared with $735 million in the previous quarter. Third-quarter financial results were impacted by lower benchmark prices, planned turnaround activity, unplanned outages, and a FIFO loss in the U.S. Refining segment. Net earnings in the third quarter were $820 million, compared with $1.0 billion in the previous quarter.

Long-term debt, including the current portion, was $7.2 billion at September 30, 2024. Net debt decreased slightly from the prior quarter to approximately $4.2 billion at September 30, 2024, primarily due to free funds flow of $614 million and a release of non-cash working capital, offset by shareholder returns of $1.1 billion. Following the achievement of the net debt target in July 2024, the company continues to steward toward a net debt level near $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 company continues to progress the tie-back of Narrows Lake, building a 17-kilometre pipeline connecting the reservoir to the Christina Lake processing facility, which will add between 20,000 bbls/d and 30,000 bbls/d of production. The project is approximately 93% constructed, as critical tie-ins to the Narrows Lake pipeline were completed during the Christina Lake turnaround. The project remains on track for first production mid-2025. At Sunrise, as part of the growth program, the company brought two new well pads online in the third quarter, which will continue to ramp up into the fourth quarter. One additional well pad will come online in early 2025. The optimization project at Foster Creek remains on schedule for startup by the middle of 2026, with most modules and major pieces of equipment in place and pipe installation underway. At the Lloydminster conventional heavy oil assets, 20 new production wells were drilled in the third quarter, positioning the company for growth from this business in 2025.

The West White Rose project reached a significant milestone with the completion of the SeaRose FPSO asset life extension work at the dry dock in Belfast. The vessel is now sailing back to the White Rose field where reconnection and commissioning will take place to enable the existing field to resume production by year end. The West White Rose project is now approximately 85% complete and progressing on-schedule.

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.180 per common share, payable on December 31, 2024 to shareholders of record as of December 13, 2024.

In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1, Series 2, Series 3, Series 5 and Series 7 – payable on December 31, 2024 to shareholders of record as of December 13, 2024 as follows:

Preferred shares dividend summary

Share series	Rate (%)	Amount ($/share)
Series 1	2.577	0.16106
Series 2	5.935	0.37296
Series 3	4.689	0.29306
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 third quarter, the company returned approximately $1.1 billion to common shareholders, composed of $732 million from its purchase of 28.4 million shares through its normal course issuer bid (NCIB) and $329 million through base dividends.

Since the share buyback program began in November 2021, as at October 28, Cenovus has purchased approximately 227 million common shares, delivering $5.3 billion in returns to shareholders. The current NCIB will expire on November 8, 2024. Cenovus has received approval from the Board of Directors to apply for another NCIB program. Cenovus will apply for approval to repurchase up to approximately 127 million of the company’s common shares, representing approximately 10% of its public float, as defined by the TSX.

2024 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets through 2024 and anticipated production or throughput impacts.

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

	Q4	Annualized impact
Upstream
Oil Sands	0-3	7-10
Atlantic	6-9	7-10
Conventional	—	2-4
Downstream
Canadian Refining	—	12-14
U.S. Refining	5-10	9-12

Sustainability

Cenovus’s 2023 Corporate Social Responsibility report was issued in August, highlighting the company’s progress and performance related to safety, Indigenous reconciliation, and inclusion & diversity as well as its approach to governance. Cenovus remains committed to delivering on its environmental projects and performance, however recent changes to Canada’s Competition Act has created uncertainty and risk around the company’s ability to speak publicly about its actions.

Conference call today
8 a.m. Mountain Time (10 a.m. Eastern Time)

Cenovus will host a conference call today, October 31, 2024, starting at 8 a.m. MT (10 a.m. ET).

To join the conference call, please dial 888-307-2440 (toll-free in North America) or 647-694-2812 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.

Product types

Product type by operating segment	Three months ended September 30, 2024
Oil Sands
Bitumen (Mbbls/d)	569.6
Heavy crude oil (Mbbls/d)	16.3
Conventional natural gas (MMcf/d)	10.4
Total Oil Sands segment production (MBOE/d)	587.7
Conventional
Light crude oil (Mbbls/d)	4.6
Natural gas liquids (Mbbls/d)	21.1
Conventional natural gas (MMcf/d)	554.8
Total Conventional segment production (MBOE/d)	118.1
Offshore
Light crude oil (Mbbls/d)	9.0
Natural gas liquids (Mbbls/d)	9.9
Conventional natural gas (MMcf/d)	279.4
Total Offshore segment production (MBOE/d)	65.5
Total upstream production (MBOE/d)	771.3

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”, “expect”, “focus”, “plan”, “progress”, “steward”, “target” and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: returning Excess Free Funds Flow to shareholders; shareholder returns, including renewing the company’s normal course issuer bid; safety; growth plans and projects; Net Debt; production guidance; the optimization project at Foster Creek; the tie-back of Narrows Lake to Christina Lake; amount and timing of production at Narrows Lake; production and timing of well pads at Sunrise; drilling activity and production at the Conventional Heavy Oil assets; return of the Sea Rose FPSO to the White Rose Field and return of production; the construction of the West White Rose project; 2024 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 2024 corporate guidance available on cenovus.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, 2023.

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, 2023 and September 30, 2024, 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 September 30, 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 ⁽⁵⁾						Downstream ⁽⁵⁾					Total
($ millions)	Q3 2024		Q2 2024		Q3 2023		Q3 2024		Q2 2024		Q3 2023	Q3 2024		Q2 2024		Q3 2023
Revenues
Gross Sales	8,259		8,715		8,783		9,228		9,053		9,658	17,487		17,768		18,441
Less: Royalties	(929	)	(859	)	(1,135	)	—		—		—	(929	)	(859	)	(1,135	)
	7,330		7,856		7,648		9,228		9,053		9,658	16,558		16,909		17,306
Expenses
Purchased Product	1,088		815		900		8,637		8,099		7,947	9,725		8,914		8,847
Transportation and Blending	2,661		3,043		2,397		—		—		—	2,661		3,043		2,397
Operating	860		889		914		918		1,099		778	1,778		1,988		1,692
Realized (Gain) Loss on Risk Management	(10	)	20		(10	)	(4	)	8		11	(14	)	28		1
Operating Margin	2,731		3,089		3,447		(323	)	(153	)	922	2,408		2,936		4,369

⁵Found in the September 30, 2024, or the June 30, 2024, interim Consolidated Financial Statements.

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
($ millions)	September 30, 2024	June 30, 2024	September 30, 2023
Cash From (Used in) Operating Activities ⁽⁵⁾	2,474	2,807	2,738
(Add) Deduct:
Settlement of Decommissioning Liabilities	(74)	(48)	(68)
Net Change in Non-Cash Working Capital	588	494	(641)
Adjusted Funds Flow	1,960	2,361	3,447
Capital Investment	1,346	1,155	1,025
Free Funds Flow	614	1,206	2,422
Add (Deduct):
Base Dividends Paid on Common Shares	(329)	(334)	(264)
Dividends Paid on Preferred Shares	(9)	(9)	—
Settlement of Decommissioning Liabilities	(74)	(48)	(68)
Principal Repayment of Leases	(74)	(75)	(70)
Acquisitions, Net of Cash Acquired	(4)	(5)	(32)
Proceeds From Divestitures	22	—	1
Excess Free Funds Flow	146	735	1,989

⁵Found in the September, 30, 2024, or the June 30, 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, X, 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 –

January 25, 2025

MIL-OSI: WTW Reports Third Quarter 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

Revenue¹ increased 6% to $2.3 billion for the quarter with organic growth of 6% for the quarter
Diluted Loss² per Share was $16.44 for the quarter
Adjusted Diluted Earnings per Share were $2.93 for the quarter, up 31% from prior year
Operating Margin² was (33.5)% for the quarter
Adjusted Operating Margin was 18.1% for the quarter, up 190 basis points from prior year

LONDON, Oct. 31, 2024 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the third quarter ended September 30, 2024.

“We had another strong quarter fueled by revenue growth, operating leverage and the success of our Transformation program. Our revenue growth of 6% for the quarter is evidence that our value proposition is continuing to resonate in the market and that our investments in talent and technology are succeeding. We are also making ongoing progress on our commitment to improve cash flow. Given our strong performance and momentum, we are entering the fourth quarter with confidence in our ability to deliver on our targets for the year and drive sustainable, profitable growth going forward.”

Consolidated Results

As reported, USD millions, except %

Key Metrics	Q3-24	Q3-23	Y/Y Change
Revenue¹	$2,289	$2,166	Reported 6% \| CC 6% \| Organic 6%
(Loss)/Income from Operations²	$(766)	$159	NM
Operating Margin² %	(33.5)%	7.3%	NM
Adjusted Operating Income	$414	$351	18%
Adjusted Operating Margin %	18.1%	16.2%	190 bps
Net (Loss)/Income²	$(1,672)	$139	NM
Adjusted Net Income	$299	$236	27%
Diluted EPS²	$(16.44)	$1.29	NM
Adjusted Diluted EPS	$2.93	$2.24	31%

¹	The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. This excludes reinsurance revenue which is reported in discontinued operations. The segment discussion is on an organic basis.
²	Loss from Operations, Operating Margin, Net Loss and Diluted EPS for the third quarter of 2024 include pre-tax non-cash losses and impairment charges of over $1.0 billion each related to the pending sale of TRANZACT.
^NM	Not meaningful.

Revenue was $2.29 billion for the third quarter of 2024, an increase of 6% as compared to $2.17 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue increased 6%. On an organic basis, revenue increased 6%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

Net Loss for the third quarter of 2024 was $1.67 billion compared to Net Income of $139 million in the prior-year third quarter. Loss from Operations, Operating Margin, Net Loss and Diluted EPS for the third quarter of 2024 include pre-tax non-cash losses and impairment charges of over $1.0 billion each related to the pending sale of TRANZACT. Adjusted EBITDA for the third quarter was $501 million, or 21.9% of revenue, an increase of 15%, compared to Adjusted EBITDA of $436 million, or 20.1% of revenue, in the prior-year third quarter. The U.S. GAAP tax rate for the third quarter was 16.1%, and the adjusted income tax rate for the third quarter used in calculating adjusted diluted earnings per share was 19.7%.

Cash Flow and Capital Allocation

Cash flows from operating activities were $913 million for the nine months ended September 30, 2024, compared to $823 million for the prior year. Free cash flow for the nine months ended September 30, 2024 and 2023 was $807 million and $707 million, respectively, an increase of $100 million, primarily driven by operating margin expansion, partially offset by cash outflows related to transformation and discretionary compensation payments. During the quarter ended September 30, 2024, the Company repurchased $205 million of WTW outstanding shares.

Third Quarter 2024 Segment Highlights

Health, Wealth & Career (“HWC”)

As reported, USD millions, except %

Health, Wealth & Career	Q3-24	Q3-23	Y/Y Change
Total Revenue	$1,328	$1,282	Reported 4% \| CC 3% \| Organic 4%
Operating Income	$329	$305	8%
Operating Margin %	24.7%	23.8%	90 bps

The HWC segment had revenue of $1.33 billion in the third quarter of 2024, an increase of 4% (3% increase constant currency and 4% organic) from $1.28 billion in the prior year. Health had organic revenue growth driven by strong client retention, new local appointments and the continued expansion of our Global Benefits Management client portfolio in International and Europe, along with increased brokerage income in North America. Wealth generated organic revenue growth from higher levels of Retirement work in Europe, an increase in our Investments business due to capital market improvements and growth from our LifeSight solution. Career had organic revenue growth from increased compensation survey sales and advisory services in Work & Rewards and product revenue in Employee Experience. Benefits Delivery & Outsourcing (BD&O) had an organic revenue decline for the quarter primarily as a result of deliberately moderating growth in Individual Marketplace and a stronger comparable in Outsourcing.

Operating margins in the HWC segment increased 90 basis points from the prior-year third quarter to 24.7%, primarily from Transformation savings. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

Risk & Broking (“R&B”)

As reported, USD millions, except %

Risk & Broking	Q3-24	Q3-23	Y/Y Change
Total Revenue	$940	$855	Reported 10% \| CC 10% \| Organic 10%
Operating Income	$170	$134	27%
Operating Margin %	18.1%	15.7%	240 bps

The R&B segment had revenue of $940 million in the third quarter of 2024, an increase of 10% (10% increase constant currency and organic) from $855 million in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention. Insurance Consulting and Technology (ICT) had organic revenue growth for the quarter primarily due to strong software sales in Technology, partially offset by tempered demand for discretionary services in Consulting.

Operating margins in the R&B segment increased 240 basis points from the prior-year third quarter to 18.1%, primarily due to operating leverage driven by organic revenue growth and disciplined expense management, as well as Transformation savings.

2024 Outlook

Based on current and anticipated market conditions, the Company’s full-year targets for 2024, consistent with those targets that have been previously provided, are as follows. Refer to the Supplemental Slides for additional detail.

Expect to deliver revenue of $9.9 billion or greater and mid-single digit organic revenue growth for the full year 2024
Expect to deliver adjusted operating margin of 23.0% – 23.5% for the full year 2024
Expect to deliver adjusted diluted earnings per share of $16.00 – $17.00 for the full year 2024
Expect approximately $88 million in non-cash pension income for the full year 2024
Expect a foreign currency headwind on adjusted earnings per share of approximately $0.06 for the full year 2024 at today’s rates, down from $0.10 previously
Expect to deliver approximately $450 million of cumulative run-rate savings from the Transformation program by the end of 2024 with total program costs of $1.175 billion.

Outlook includes Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained below.

In addition, WTW will host an Investor Day on Tuesday, December 3, 2024 beginning at approximately 9:00 a.m. Eastern Time. A live webcast presentation will be available at www.wtwco.com and a replay of the webcast will be available on the Company’s website following the event.

Conference Call

The Company will host a live webcast and conference call to discuss the financial results for the third quarter 2024. It will be held on Thursday, October 31, 2024, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

WTW Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
Impairment – Adjustment to remove the non-cash goodwill impairment associated with our Benefits, Delivery and Administration reporting unit related to the pending divestiture of our TRANZACT business.
Provisions for specified litigation matters – We will include provisions for litigation matters which we believe are not representative of our core business operations. Among other things, we determine this by reference to the amount of the loss (net of insurance and other recovery receivables) and by reference to whether the matter relates to an unusual and complex scenario that is not expected to be repeated as part of our ongoing, ordinary business. These amounts are presented net of insurance and other recovery receivables. See the footnotes to the respective reconciliation tables below for more specificity on the litigation matter excluded from adjusted results.
Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
Tax effect of significant adjustments – Relates to the incremental tax expense or benefit resulting from significant or unusual events including significant statutory tax rate changes enacted in material jurisdictions in which we operate, internal reorganizations of ownership of certain businesses that reduced the investment held by our U.S.-controlled subsidiaries and the recovery of certain refunds or payment of taxes related to businesses in which we no longer participate.

We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Our non-GAAP measures and their accompanying definitions are presented as follows:

Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

Adjusted Operating Income/Margin – (Loss)/Income from operations adjusted for impairment, amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted EBITDA/Margin – Net (Loss)/Income adjusted for provision for income taxes, interest expense, impairment, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

Adjusted Net Income – Net (Loss)/Income Attributable to WTW adjusted for impairment, amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted Income Before Taxes – (Loss)/Income from operations before income taxes adjusted for impairment, amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

Adjusted Income Taxes/Tax Rate – Benefit from/(provision for) income taxes adjusted for taxes on certain items of impairment, amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, the tax effects of internal reorganizations, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software for internal use. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations.

Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

WTW Forward-Looking Statements

This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events, or developments that we expect or anticipate may occur in the future, including such things as our outlook, plans and references to future performance, including our future financial and operating results (including our revenue, costs, or margins), short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to organic revenue growth, free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share; future share repurchases; demand for our services and competitive strengths; strategic goals; existing and evolving business strategies including those related to acquisition and disposition activity; the benefits of new initiatives; the growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational, and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives including our multi-year operational transformation program; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; the impact of changes to tax laws on our financial results; and our recognition of future impairment charges or write-off of receivables, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to make divestitures, including the pending sale of our TRANZACT business (inclusive of all the legal entities that comprise such business), or acquisitions, including our ability to integrate or manage acquired businesses or de-integrate businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to consummate the pending sale of TRANZACT, and related incremental risks associated therewith including our ability to obtain approval (or for applicable waiting periods to expire) under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976; our ability to successfully manage ongoing organizational changes, including as part of our multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities, including the pending sale of TRANZACT, and related to changes in leadership in any of our businesses; risks relating to changes in our management structures and in senior leadership; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates and changes in trade policies; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including inflation, changes in interest rates and trade policies, as well as political events, war, such as the Russia-Ukraine and Middle East conflicts, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, which could have a material adverse effect on our business, financial condition, results of operations, and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity, and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our previously-completed sale of Willis Re to Arthur J. Gallagher & Co.; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, any legislative actions from the current U.S. Congress, the recent Final Rule from the Centers for Medicare & Medicaid Services for contract year 2025 and any judicial claims, rulings and appeals related thereto, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our Medicare benefits businesses such as TRANZACT; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of non-cash pre-tax losses and related impairment charges in connection with our pending sale of TRANZACT and other future impairment charges or write-offs of receivables; risks relating to or arising from environmental, social and governance practices; fluctuation in revenue against our relatively fixed or higher than expected expenses; the risk that investment levels, including cash spending, to achieve additional expected savings under our multi-year operational transformation program; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at www.sec.gov or www.wtwco.com.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

Our forward-looking statements speak only as of the date made, and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

Contact

INVESTORS

Claudia De La Hoz | Claudia.Delahoz@wtwco.com

WTW Supplemental Segment Information (In millions of U.S. dollars) (Unaudited)
REVENUE
							Components of Revenue Change⁽ⁱ⁾
							Less:				Less:
	Three Months Ended September 30,				As Reported		Currency		Constant Currency		Acquisitions/		Organic
	2024		2023		% Change		Impact		Change		Divestitures		Change

Health, Wealth & Career
Revenue excluding interest income	$	1,320	$	1,275	4	%	0	%	3	%	0	%	4	%
Interest income		8		7
Total		1,328		1,282	4	%	0	%	3	%	0	%	4	%

Risk & Broking
Revenue excluding interest income	$	911	$	830	10	%	0	%	10	%	0	%	10	%
Interest income		29		25
Total		940		855	10	%	0	%	10	%	0	%	10	%

Segment Revenue	$	2,268	$	2,137	6	%	0	%	6	%	0	%	6	%
Reimbursable expenses and other		15		22
Interest income		6		7
Revenue	$	2,289	$	2,166	6	%	0	%	6	%	0	%	6%⁽ⁱⁱ⁾

							Components of Revenue Change⁽ⁱ⁾
							Less:				Less:
	Nine Months Ended September 30,				As Reported		Currency		Constant Currency		Acquisitions/		Organic
	2024		2023		% Change		Impact		Change		Divestitures		Change

Health, Wealth & Career
Revenue excluding interest income	$	3,898	$	3,766	4	%	0	%	4	%	0	%	4	%
Interest income		26		18
Total		3,924		3,784	4	%	0	%	4	%	0	%	4	%

Risk & Broking
Revenue excluding interest income	$	2,811	$	2,607	8	%	0	%	8	%	0	%	8	%
Interest income		86		52
Total		2,897		2,659	9	%	0	%	9	%	0	%	9	%

Segment Revenue	$	6,821	$	6,443	6	%	0	%	6	%	0	%	6	%
Reimbursable expenses and other		56		90
Interest income		18		36
Revenue	$	6,895	$	6,569	5	%	0	%	5	%	0	%	5%⁽ⁱⁱ⁾

⁽ⁱ⁾ Components of revenue change may not add due to rounding.
⁽ⁱⁱ⁾ Interest income did not contribute to organic change for the three and nine months ended September 30, 2024.

BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

	Three Months Ended September 30,
	HWC				R&B				Corporate				Total
	2024		2023		2024		2023		2024		2023		2024		2023
Book-of-business settlements	$	3	$	—	$	4	$	1	$	—	$	—	$	7	$	1
Interest income		8		7		29		25		6		7		43		39
Total	$	11	$	7	$	33	$	26	$	6	$	7	$	50	$	40

	Nine Months Ended September 30,
	HWC				R&B				Corporate				Total
	2024		2023		2024		2023		2024		2023		2024		2023
Book-of-business settlements	$	3	$	—	$	8	$	11	$	—	$	—	$	11	$	11
Interest income		26		18		86		52		18		36		130		106
Total	$	29	$	18	$	94	$	63	$	18	$	36	$	141	$	117

SEGMENT OPERATING INCOME ⁽ⁱ⁾

	Three Months Ended September 30,





	2024		2023











Health, Wealth & Career	$	329	$	305





Risk & Broking		170		134





Segment Operating Income	$	499	$	439

	Nine Months Ended September 30,
	2024		2023

Health, Wealth & Career	$	941	$	836
Risk & Broking		575		459
Segment Operating Income	$	1,516	$	1,295

⁽ⁱ⁾ Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.

SEGMENT OPERATING MARGINS

	Three Months Ended September 30,
	2024	2023
Health, Wealth & Career	24.7%	23.8%
Risk & Broking	18.1%	15.7%

	Nine Months Ended September 30,
	2024	2023
Health, Wealth & Career	24.0%	22.1%
Risk & Broking	19.8%	17.3%

RECONCILIATIONS OF SEGMENT OPERATING INCOME TO (LOSS)/INCOME FROM OPERATIONS BEFORE INCOME TAXES

	Three Months Ended September 30,
	2024			2023

Segment Operating Income	$	499		$	439
Impairment⁽ⁱ⁾		(1,042	)		—
Amortization		(56	)		(62	)
Restructuring costs		(8	)		(17	)
Transaction and transformation⁽ⁱⁱ⁾		(74	)		(113	)
Unallocated, net⁽ⁱⁱⁱ⁾		(85	)		(88	)
(Loss)/Income from Operations		(766	)		159
Interest expense		(65	)		(61	)
Other (loss)/income, net		(1,163	)		66
(Loss)/income from operations before income taxes	$	(1,994	)	$	164

	Nine Months Ended September 30,
	2024			2023

Segment Operating Income	$	1,516		$	1,295
Impairment⁽ⁱ⁾		(1,042	)		—
Amortization		(176	)		(203	)
Restructuring costs		(29	)		(30	)
Transaction and transformation⁽ⁱⁱ⁾		(296	)		(265	)
Unallocated, net⁽ⁱⁱⁱ⁾		(247	)		(211	)
(Loss)/Income from Operations		(274	)		586
Interest expense		(197	)		(172	)
Other (loss)/income, net		(1,113	)		126
(Loss)/income from operations before income taxes	$	(1,584	)	$	540

⁽ⁱ⁾ Represents the non-cash goodwill impairment associated with our BDA reporting unit related to the pending divestiture of our TRANZACT business.
⁽ⁱⁱ⁾ In 2024 and 2023, in addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
⁽ⁱⁱⁱ⁾ Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.

WTW
Reconciliations of Non-GAAP Measures
(In millions of U.S. dollars, except per share data)
(Unaudited)

RECONCILIATIONS OF NET (LOSS)/INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE

	Three Months Ended September 30,
	2024			2023

Net (loss)/income attributable to WTW	$	(1,675	)	$	136
Adjusted for certain items:
Impairment		1,042			—
Amortization		56			62
Restructuring costs		8			17
Transaction and transformation		74			113
Loss/(gain) on disposal of operations		1,190			(41	)
Tax effect on certain items listed above⁽ⁱⁱ⁾		(396	)		(51	)
Adjusted Net Income	$	299		$	236

Weighted-average ordinary shares, diluted		102			105

Diluted (Loss)/Earnings Per Share	$	(16.44	)	$	1.29
Adjusted for certain items:⁽ⁱⁱⁱ⁾
Impairment		10.23			—
Amortization		0.55			0.59
Restructuring costs		0.08			0.16
Transaction and transformation		0.73			1.07
Loss/(gain) on disposal of operations		11.68			(0.39	)
Tax effect on certain items listed above⁽ⁱⁱ⁾		(3.89	)		(0.48	)
Adjusted Diluted Earnings Per Share⁽ⁱⁱⁱ⁾	$	2.93		$	2.24

	Nine Months Ended September 30,
	2024			2023

Net (loss)/income attributable to WTW	$	(1,344	)	$	433
Adjusted for certain items:
Impairment		1,042			—
Amortization		176			203
Restructuring costs		29			30
Transaction and transformation		296			265
Provision for specified litigation matter⁽ⁱ⁾		13			—
Loss/(gain) on disposal of operations		1,190			(44	)
Tax effect on certain items listed above⁽ⁱⁱ⁾		(492	)		(128	)
Tax effect of significant adjustments		(7	)		2
Adjusted Net Income	$	903		$	761

Weighted-average ordinary shares, diluted		103			107

Diluted (Loss)/Earnings Per Share	$	(13.11	)	$	4.06
Adjusted for certain items:⁽ⁱⁱⁱ⁾
Impairment		10.17			—
Amortization		1.72			1.90
Restructuring costs		0.28			0.28
Transaction and transformation		2.89			2.48
Provision for specified litigation matter⁽ⁱ⁾		0.13			—
Loss/(gain) on disposal of operations		11.61			(0.41	)
Tax effect on certain items listed above⁽ⁱⁱ⁾		(4.80	)		(1.20	)
Tax effect of significant adjustments		(0.07	)		0.02
Adjusted Diluted Earnings Per Share⁽ⁱⁱⁱ⁾	$	8.81		$	7.13

⁽ⁱ⁾ Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.
⁽ⁱⁱ⁾ The tax effect was calculated using an effective tax rate for each item.
⁽ⁱⁱⁱ⁾ Per share values and totals may differ due to rounding.

RECONCILIATIONS OF NET (LOSS)/INCOME TO ADJUSTED EBITDA

	Three Months Ended September 30,
	2024					2023

Net (Loss)/Income	$	(1,672	)	(73.0	)%	$	139		6.4	%
Provision for income taxes		(322	)				25
Interest expense		65					61
Impairment		1,042					—
Depreciation		60					60
Amortization		56					62
Restructuring costs		8					17
Transaction and transformation		74					113
Loss/(gain) on disposal of operations		1,190					(41	)
Adjusted EBITDA and Adjusted EBITDA Margin	$	501		21.9	%	$	436		20.1	%

	Nine Months Ended September 30,
	2024					2023

Net (Loss)/Income	$	(1,336	)	(19.4	)%	$	441		6.7	%
Provision for income taxes		(248	)				99
Interest expense		197					172
Impairment		1,042					—
Depreciation		176					184
Amortization		176					203
Restructuring costs		29					30
Transaction and transformation		296					265
Provision for specified litigation matter⁽ⁱ⁾		13					—
Loss/(gain) on disposal of operations		1,190					(44	)
Adjusted EBITDA and Adjusted EBITDA Margin	$	1,535		22.3	%	$	1,350		20.6	%

RECONCILIATIONS OF (LOSS)/INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

	Three Months Ended September 30,
	2024					2023

(Loss)/Income from operations and Operating margin	$	(766	)	(33.5	)%	$	159	7.3	%
Adjusted for certain items:
Impairment		1,042					—
Amortization		56					62
Restructuring costs		8					17
Transaction and transformation		74					113
Adjusted operating income and Adjusted operating income margin	$	414		18.1	%	$	351	16.2	%

	Nine Months Ended September 30,
	2024					2023

(Loss)/Income from operations and Operating margin	$	(274	)	(4.0	)%	$	586	8.9	%
Adjusted for certain items:
Impairment		1,042					—
Amortization		176					203
Restructuring costs		29					30
Transaction and transformation		296					265
Provision for specified litigation matter⁽ⁱ⁾		13					—
Adjusted operating income and Adjusted operating income margin	$	1,282		18.6	%	$	1,084	16.5	%

RECONCILIATIONS OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

	Three Months Ended September 30,
	2024			2023

(Loss)/income from operations before income taxes	$	(1,994	)	$	164

Adjusted for certain items:
Impairment		1,042			—
Amortization		56			62
Restructuring costs		8			17
Transaction and transformation		74			113
Loss/(gain) on disposal of operations		1,190			(41	)
Adjusted income before taxes	$	376		$	315

(Benefit from)/provision for income taxes	$	(322	)	$	25
Tax effect on certain items listed above⁽ⁱⁱ⁾		396			51
Adjusted income taxes	$	74		$	76

U.S. GAAP tax rate		16.1	%		15.5	%
Adjusted income tax rate		19.7	%		24.3	%

	Nine Months Ended September 30,
	2024			2023

(Loss)/income from operations before income taxes	$	(1,584	)	$	540

Adjusted for certain items:
Impairment		1,042			—
Amortization		176			203
Restructuring costs		29			30
Transaction and transformation		296			265
Provision for specified litigation matter⁽ⁱ⁾		13			—
Loss/(gain) on disposal of operations		1,190			(44	)
Adjusted income before taxes	$	1,162		$	994

(Benefit from)/provision for income taxes	$	(248	)	$	99
Tax effect on certain items listed above⁽ⁱⁱ⁾		492			128
Tax effect of significant adjustments		7			(2	)
Adjusted income taxes	$	251		$	225

U.S. GAAP tax rate		15.6	%		18.3	%
Adjusted income tax rate		21.6	%		22.6	%

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

	Nine Months Ended September 30,
	2024			2023

Cash flows from operating activities	$	913		$	823
Less: Additions to fixed assets and software for internal use		(106	)		(116	)
Free Cash Flow	$	807		$	707

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Income (In millions of U.S. dollars, except per share data) (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenue	$	2,289		$	2,166		$	6,895		$	6,569

Costs of providing services
Salaries and benefits		1,396			1,359			4,135			4,019
Other operating expenses		419			396			1,315			1,282
Impairment		1,042			—			1,042			—
Depreciation		60			60			176			184
Amortization		56			62			176			203
Restructuring costs		8			17			29			30
Transaction and transformation		74			113			296			265
Total costs of providing services		3,055			2,007			7,169			5,983

(Loss)/income from operations		(766	)		159			(274	)		586

Interest expense		(65	)		(61	)		(197	)		(172	)
Other (loss)/income, net		(1,163	)		66			(1,113	)		126

(LOSS)/INCOME FROM OPERATIONS BEFORE INCOME TAXES		(1,994	)		164			(1,584	)		540

Benefit from/(provision for) income taxes		322			(25	)		248			(99	)

NET (LOSS)/INCOME		(1,672	)		139			(1,336	)		441

Income attributable to non-controlling interests		(3	)		(3	)		(8	)		(8	)

NET (LOSS)/INCOME ATTRIBUTABLE TO WTW	$	(1,675	)	$	136		$	(1,344	)	$	433

(LOSS)/EARNINGS PER SHARE
Basic (loss)/earnings per share	$	(16.44	)	$	1.30		$	(13.11	)	$	4.08
Diluted (loss)/earnings per share	$	(16.44	)	$	1.29		$	(13.11	)	$	4.06

Weighted-average ordinary shares, basic		102			105			103			106
Weighted-average ordinary shares, diluted		102			105			103			107

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Balance Sheets (In millions of U.S. dollars, except share data) (Unaudited)
	September 30,			December 31,
	2024			2023
ASSETS
Cash and cash equivalents	$	1,372		$	1,424
Fiduciary assets		9,176			9,073
Accounts receivable, net		2,118			2,572
Prepaid and other current assets		558			364
Current assets held for sale		1,089			—
Total current assets		14,313			13,433
Fixed assets, net		710			720
Goodwill		8,882			10,195
Other intangible assets, net		1,360			2,016
Right-of-use assets		539			565
Pension benefits assets		632			588
Other non-current assets		732			1,573
Total non-current assets		12,855			15,657
TOTAL ASSETS	$	27,168		$	29,090
LIABILITIES AND EQUITY
Fiduciary liabilities	$	9,176		$	9,073
Deferred revenue and accrued expenses		2,027			2,104
Current debt		—			650
Current lease liabilities		122			125
Other current liabilities		735			678
Current liabilities held for sale		475			—
Total current liabilities		12,535			12,630
Long-term debt		5,308			4,567
Liability for pension benefits		487			563
Deferred tax liabilities		94			542
Provision for liabilities		416			365
Long-term lease liabilities		556			592
Other non-current liabilities		202			238
Total non-current liabilities		7,063			6,867
TOTAL LIABILITIES		19,598			19,497
COMMITMENTS AND CONTINGENCIES
EQUITY⁽ⁱ⁾
Additional paid-in capital		10,957			10,910
(Accumulated deficit)/retained earnings		(650	)		1,466
Accumulated other comprehensive loss, net of tax		(2,810	)		(2,856	)
Treasury shares, at cost, 15,574 shares in 2024		(5	)		—
Total WTW shareholders’ equity		7,492			9,520
Non-controlling interests		78			73
Total Equity		7,570			9,593
TOTAL LIABILITIES AND EQUITY	$	27,168		$	29,090

(i) Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 100,887,015 (2024) and 102,538,072 (2023); Outstanding 100,871,441 (2024) and 102,538,072 (2023) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2024 and 2023.

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Cash Flows (In millions of U.S. dollars) (Unaudited)
	Nine Months Ended September 30,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
NET (LOSS)/INCOME	$	(1,336	)	$	441
Adjustments to reconcile net income to total net cash from operating activities:
Depreciation		176			184
Amortization		176			203
Impairment		1,042			—
Non-cash restructuring charges		17			19
Non-cash lease expense		76			83
Net periodic benefit of defined benefit pension plans		(15	)		(20	)
Provision for doubtful receivables from clients		13			8
Benefit from deferred income taxes		(379	)		(58	)
Share-based compensation		85			87
Net loss/(gain) on disposal of operations		1,190			(44	)
Non-cash foreign exchange (gain)/loss		(25	)		1
Other, net		32			21
Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:
Accounts receivable		271			261
Other assets		(299	)		(175	)
Other liabilities		(159	)		(191	)
Provisions		48			3
Net cash from operating activities		913			823

CASH FLOWS USED IN INVESTING ACTIVITIES
Additions to fixed assets and software for internal use		(106	)		(116	)
Capitalized software costs		(83	)		(66	)
Acquisitions of operations, net of cash acquired		(28	)		(6	)
Proceeds from sale of operations		—			86
Cash and fiduciary funds transferred in sale of operations		—			(922	)
Purchase of investments		(13	)		(6	)
Net cash used in investing activities		(230	)		(1,030	)

CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
Senior notes issued		746			748
Debt issuance costs		(9	)		(7	)
Repayments of debt		(653	)		(253	)
Repurchase of shares		(506	)		(804	)
Net proceeds/(payments) from fiduciary funds held for clients		934			(71	)
Payments of deferred and contingent consideration related to acquisitions		(2	)		(8	)
Cash paid for employee taxes on withholding shares		(30	)		(21	)
Dividends paid		(265	)		(265	)
Acquisitions of and dividends paid to non-controlling interests		(10	)		(47	)
Net cash from/(used in) financing activities		205			(728	)

INCREASE/(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		888			(935	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		32			(54	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽ⁱ⁾		3,792			4,721
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD ⁽ⁱ⁾	$	4,712		$	3,732

(i) The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosures of Cash Flow Information section.

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

	Nine Months Ended September 30,
	2024			2023

Supplemental disclosures of cash flow information:
Cash and cash equivalents	$	1,372		$	1,247
Fiduciary funds (included in fiduciary assets)		3,340			2,485
Total cash, cash equivalents and restricted cash	$	4,712		$	3,732

(Decrease)/increase in cash, cash equivalents and other restricted cash	$	(54	)	$	5
Increase/(decrease) in fiduciary funds		942			(940	)
Total ⁽ⁱ⁾	$	888		$	(935	)

⁽ⁱ⁾ Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.

The MIL Network –

January 25, 2025

MIL-OSI: Cipher Mining Provides Third Quarter 2024 Business Update

Source: GlobeNewswire (MIL-OSI)

Completed acquisition of Barber Lake data center site, which includes 250 acres of land in West Texas, a newly constructed high-to-mid voltage substation, approvals for 300 MW, and agreements necessary to participate in the ERCOT market

Completed acquisition of Reveille data center site, which includes approvals for 70 MW and potential to expand to 200 MW, with energization targeted for 2027

Signed option agreements to purchase or lease three sites in Texas with targeted power capacity of 500 MW each, suitable for HPC or bitcoin mining

Third Quarter 2024 Net Loss of $87m, and Adjusted Loss of $3m

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced results for its third quarter ended September 30, 2024, with an update on its operations and business strategy.

“We had a very busy third quarter, especially on the corporate and business development side,” said Tyler Page, CEO. “We were delighted to close our acquisition of the Barber Lake site, which has 300 MW immediately available for energization, and more recently, we also closed on our acquisition of the Reveille site, which is approved for 70 MW and has potential to scale to 200 MW. Looking to the future, we also created a pathway to become one of the largest data center developers in the world by finalizing the purchase of options to acquire three new sites with a total cumulative power capacity of up to 1.5 GW. Cipher’s active portfolio and options for development now total 2.5 GW across 10 sites.”

“We have made great progress in our discussions with hyperscalers in recent weeks as we seek our first HPC tenants while also continuing to build-out our bitcoin operations with the upgrade of our miner fleet at Odessa. Our operations and construction teams have extensive experience building tier 3 data centers, and we look forward to leveraging their broad skill sets as we expand our scope to bring on our first HPC tenants in the future.”

“Despite the headwind of record low hashprices for the bitcoin mining industry in the third quarter, our team delivered another set of solid results. The value of our Odessa power purchase agreement took a significant markdown given the passage of time and the drop in forward market prices for electricity, which contributed to the headline net loss this quarter. On an adjusted basis, our adjusted loss was nearly flat quarter-over-quarter, which we see as a testament to our low-cost unit economics given the known challenges presented to the entire industry in the first full quarter after the bitcoin halving. With our fleet upgrade at Odessa in the fourth quarter, we will be powering an extremely efficient fleet of rigs with industry-low costs for electricity, so we should be well-positioned for brighter bitcoin mining conditions going forward,” said Mr. Page.

Finance and Operations Highlights

Completed acquisition of 300 MW Barber Lake data center site
Completed acquisition of 70 MW Reveille data center site, which may be expanded to 200 MW and is well-suited for both HPC or bitcoin mining data centers
Signed options to acquire up to 1.5 GW of new sites in Texas that are also suitable for both HPC or bitcoin mining data centers
Upgrade of Odessa site bringing total self-mining hashrate to ~13.5 EH/s remains on track for Q4 2024
Construction of the 300 MW data center at Black Pearl progressing well, with expected energization in Q2 2025
Q3 2024 net loss of $87 million, or $0.26 per diluted share, and adjusted loss of $3 million, or $0.01 per diluted share

Business Update Call and Webcast

The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at https://investors.ciphermining.com. To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

About Cipher

Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about our beliefs and expectations regarding our future results of operations and financial position, planned business model and strategy, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operations of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and our management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of our business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in the Company’s other filings with the SEC, including without limitation, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

This press release includes supplemental financial measures, including Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case , which exclude the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability. These supplemental financial measures are not a measurement of financial performance under accounting principles generally accepted in the United Stated (“GAAP”) and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe the use of these non-GAAP financial measures can also facilitate comparison of our operating results to those of our competitors.

Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. For example, we expect that share-based compensation expense, which is excluded from the non-GAAP financial measures, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers and directors. Similarly, we expect that depreciation and amortization will continue to be an expense over the term of the useful life of the related assets. Our non-GAAP financial measures are not meant to be considered in isolation and should be read only in conjunction with our financial statements prepared in accordance with GAAP. We rely primarily on such financial statements to understand, manage and evaluate our business performance and use the non-GAAP financial measures only supplementally.

Contacts:
Investor Contact:
Josh Kane
Head of Investor Relations at Cipher Mining
josh.kane@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com


CIPHER MINING INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except for share and per share amounts) (unaudited)

	September 30, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	25,342		$	86,105
Accounts receivable		226			622
Receivables, related party		59			245
Prepaid expenses and other current assets		3,488			3,670
Bitcoin		95,459			32,978
Derivative asset		27,185			31,878
Total current assets		151,759			155,498
Restricted cash		14,392			–
Property and equipment, net		310,699			243,815
Deposits on equipment		144,573			30,812
Intangible assets, net		25,742			8,109
Investment in equity investees		54,973			35,258
Derivative asset		47,225			61,713
Operating lease right-of-use asset		10,564			7,077
Security deposits		15,301			23,855
Other noncurrent assets		210			–
Total assets	$	775,438		$	566,137
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	13,154		$	4,980
Accounts payable, related party		–			1,554
Accrued expenses and other current liabilities		40,764			22,439
Finance lease liability, current portion		3,695			3,404
Operating lease liability, current portion		1,479			1,166
Warrant liability		–			250
Total current liabilities		59,092			33,793
Asset retirement obligation		19,810			18,394
Finance lease liability		8,319			11,128
Operating lease liability		9,662			6,280
Deferred tax liability		6,564			5,206
Total liabilities		103,447			74,801
Commitments and contingencies (Note 13)
Stockholders’ equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of September 30, 2024, and December 31, 2023		–			–
Common stock, $0.001 par value, 500,000,000 shares authorized, 355,771,238 and 296,276,536 shares issued as of September 30, 2024 and December 31, 2023, respectively, and 347,800,186 and 290,957,862 shares outstanding as of September 30, 2024, and December 31, 2023, respectively		356			296
Additional paid-in capital		870,565			627,822
Accumulated deficit		(198,922	)		(136,777	)
Treasury stock, at par, 7,971,052 and 5,318,674 shares at September 30, 2024 and December 31, 2023, respectively		(8	)		(5	)
Total stockholders’ equity		671,991			491,336
Total liabilities and stockholders’ equity	$	775,438		$	566,137


CIPHER MINING INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for share and per share amounts) (unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Revenue – bitcoin mining	$	24,102		$	30,304		$	109,047		$	83,423
Costs and operating expenses (income)
Cost of revenue		15,063			13,008			44,164			37,017
Compensation and benefits		14,738			17,071			44,058			41,676
General and administrative		8,919			6,827			23,362			20,977
Depreciation and amortization		28,636			16,217			66,131			42,284
Change in fair value of derivative asset		48,520			(4,744	)		19,181			(13,294	)
Power sales		(1,444	)		(2,720	)		(3,726	)		(8,469	)
Equity in (income) losses of equity investees		(847	)		1,998			(1,008	)		4,179
Losses (gains) on fair value of bitcoin		1,911			1,848			(22,336	)		(3,276	)
Other gains		–			(95	)		–			(2,355	)
Total costs and operating expenses		115,496			49,410			169,826			118,739
Operating loss		(91,394	)		(19,106	)		(60,779	)		(35,316	)
Other income (expense)
Interest income		1,188			11			3,027			112
Interest expense		(346	)		(627	)		(1,118	)		(1,513	)
Change in fair value of warrant liability		–			10			250			(49	)
Other expense		(4	)		(6	)		(1,235	)		(18	)
Total other income (expense)		838			(612	)		924			(1,468	)
Loss before taxes		(90,556	)		(19,718	)		(59,855	)		(36,784	)
Current income tax expense		(211	)		(95	)		(932	)		(143	)
Deferred income tax benefit (expense)		4,013			1,192			(1,358	)		555
Total income tax benefit (expense)		3,802			1,097			(2,290	)		412
Net loss	$	(86,754	)	$	(18,621	)	$	(62,145	)	$	(36,372	)
Loss per share – basic and diluted	$	(0.26	)	$	(0.07	)	$	(0.20	)	$	(0.15	)
Weighted average shares outstanding – basic		332,680,037			251,789,350			314,820,110			249,858,033
Weighted average shares outstanding – diluted		332,680,037			251,789,350			314,820,110			249,858,033


CIPHER MINING INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)

	Nine Months Ended September 30,
		2024			2023
Cash flows from operating activities
Net loss	$	(62,145	)	$	(36,372	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		65,661			42,284
Amortization of intangible assets		470			–
Amortization of operating right-of-use asset		888			688
Share-based compensation		31,865			28,687
Equity in losses (gains) of equity investees		(1,008	)		4,179
Non-cash lease expense		429			1,477
Other		(1,235	)		–
Deferred income taxes		1,358			(555	)
Bitcoin received as payment for services		(109,443	)		(83,161	)
Change in fair value of derivative asset		19,181			(13,294	)
Change in fair value of warrant liability		(250	)		49
Gains on fair value of bitcoin		(22,336	)		(3,276	)
Changes in assets and liabilities:
Accounts receivable		396			(262	)
Receivables, related party		186			(958	)
Prepaid expenses and other current assets		182			3,238
Security deposits		16,851			144
Other non-current assets		(210	)		–
Accounts payable		565			2,366
Accounts payable, related party		–			(1,529	)
Accrued expenses and other current liabilities		62			10,732
Lease liabilities		–			(762	)
Net cash used in operating activities		(58,533	)		(46,325	)
Cash flows from investing activities
Proceeds from sale of bitcoin		79,786			78,729
Deposits on equipment		(135,263	)		(4,533	)
Purchases of property and equipment		(92,373	)		(32,980	)
Purchases and development of software		(1,059	)		–
Purchase of strategic contracts		(17,044	)		–
Capital distributions from equity investees		–			3,807
Investment in equity investees		(29,194	)		(3,545	)
Prepayments on financing lease		–			(3,676	)
Net cash (used in) provided by investing activities		(195,147	)		37,802
Cash flows from financing activities
Proceeds from the issuance of common stock		225,181			11,644
Offering costs paid for the issuance of common stock		(3,487	)		(298	)
Repurchase of common shares to pay employee withholding taxes		(10,760	)		(3,224	)
Principal payments on financing lease		(3,625	)		(8,184	)
Net cash provided by (used in) financing activities		207,309			(62	)
Net decrease in cash, cash equivalents, and restricted cash		(46,371	)		(8,585	)
Cash, cash equivalents, and restricted cash, beginning of the period		86,105			11,927
Cash and cash equivalents, and restricted cash, end of the period	$	39,734		$	3,342

	Nine Months Ended September 30,
		2024		2023
Supplemental disclosure of noncash investing and financing activities
Reclassification of deposits on equipment to property and equipment	$	21,502	$	74,186
Property and equipment purchases in accounts payable and accrued expenses	$	17,422	$	–
Bitcoin received from equity investees	$	10,487	$	317
Settlement of related party payable related to master services and supply agreement	$	1,554	$	–
Right-of-use asset obtained in exchange for finance lease liability	$	4,375	$	14,212
Sales tax accrual on machine purchases	$	1,388	$	1,837
Equity method investment acquired for non-cash consideration	$	–	$	1,926
Finance lease cost in accrued expenses	$	–	$	2,060

The following table provides a reconciliation of Cash and cash equivalents together with Restricted cash as reported within the Condensed Consolidated Balance Sheets to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.


	Nine Months Ended September 30,
		2024		2023
Cash and cash equivalents	$	25,342	$	3,342
Restricted cash	$	14,392	$	–
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	39,734	$	3,342

Non-GAAP Financial Measures

The following are reconciliations of our Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case excluding the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability, to the most directly comparable GAAP measures for the periods indicated (in thousands, except for per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Reconciliation of Adjusted Earnings:
Net loss	$	(86,754	)	$	(18,621	)	$	(62,145	)	$	(36,372	)
Change in fair value of derivative asset		48,520			(4,744	)		19,181			(13,294	)
Share-based compensation expense		10,211			10,699			31,865			17,988
Depreciation and amortization		28,636			16,217			66,131			42,284
Deferred income tax expense		(4,013	)		(1,192	)		1,358			(555	)
Other gains – nonrecurring		–			(95	)		–			(2,355	)
Change in fair value of warrant liability		–			(10	)		(250	)		49
Adjusted (loss) earnings	$	(3,400	)	$	2,254		$	56,140		$	7,745


Reconciliation of Adjusted Earnings per share – diluted:
Net loss per share – diluted	$	(0.26	)	$	(0.07	)	$	(0.20	)	$	(0.15	)
Change in fair value of derivative asset per diluted share		0.14			(0.02	)		0.07			(0.05	)
Share-based compensation expense per diluted share		0.03			0.04			0.10			0.07
Depreciation and amortization per diluted share		0.09			0.06			0.21			0.17
Deferred income tax expense per diluted share		(0.01	)		—			—			—
Other gains – nonrecurring per diluted share		—			—			—			(0.01	)
Change in fair value of warrant liability per diluted share		—			—			—			—
Adjusted (loss) earnings per diluted share	$	(0.01	)	$	0.01		$	0.18		$	0.03

The MIL Network –

January 25, 2025

MIL-OSI: Allegro MicroSystems Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

MANCHESTER, N.H., Oct. 31, 2024 (GLOBE NEWSWIRE) — Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its second quarter ended September 27, 2024.

“We delivered results in-line with our commitments. Second quarter sales were $187 million, with sequential growth in both Automotive and Industrial and Other end markets. Non-GAAP EPS was $0.08, at the high end of our outlook,” said Vineet Nargolwala, President and CEO of Allegro. “We are encouraged by the continued demand for our differentiated solutions and the progress made by our customers and partners to rebalance their inventories. We continue to invest for growth to extend our market leadership. The accelerating pace of our new product introductions, as evidenced by our latest product releases, sets the stage for significant growth momentum in the near future.”

Second Quarter Financial Highlights:

In thousands, except per share data	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net Sales
Automotive	$	141,893		$	131,184		$	197,321		$	273,077		$	382,751
Industrial and other		45,498			35,735			78,188			81,233			171,051
Total net sales	$	187,391		$	166,919		$	275,509		$	354,310		$	553,802
GAAP Financial Measures
Gross margin %		45.7	%		44.8	%		57.9	%		45.3	%		57.3	%
Operating margin %		2.2	%		(6.4	)%		26.5	%		(1.9	)%		25.9	%
Diluted EPS	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.65
Non-GAAP Financial Measures
Gross margin %		48.8	%		48.8	%		58.3	%		48.8	%		58.1	%
Operating margin %		11.7	%		6.0	%		31.3	%		9.0	%		31.0	%
Diluted EPS	$	0.08		$	0.03		$	0.40		$	0.11		$	0.79

Business Outlook

For the third quarter of fiscal year 2025 ending December 27, 2024, the Company expects net sales to be in the range of $170 million to $180 million. This outlook comprehends continued progress toward vehicle electrification and ongoing inventory rebalancing as reflected in the latest third-party estimates, as well as typical December quarter seasonality. The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 49% and 51%,

The Company made a voluntary $25 million payment on its term loan facility on October 31, 2024 and now expects Interest Expense to be approximately $6 million, and

Diluted Earnings per Share are expected to be between $0.04 and $0.08.

Allegro has not provided a reconciliation of its third fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, October 31, 2024 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and clean energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in 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, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholders has substantial control over us; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited)

	Three-Month Period Ended					Six-Month Period Ended
	September 27, 2024			September 29, 2023		September 27, 2024			September 29, 2023
Net sales	$	187,391		$	275,509	$	354,310		$	553,802
Cost of goods sold		101,729			116,006		193,877			236,349
Gross profit		85,662			159,503		160,433			317,453
Operating expenses:
Research and development		43,510			43,428		88,714			86,403
Selling, general and administrative		38,085			43,160		78,282			87,389
Total operating expenses		81,595			86,588		166,996			173,792
Operating income (loss)		4,067			72,915		(6,563	)		143,661
Interest and other (expense) income		(12,398	)		156		(18,341	)		(2,486	)
Loss on change in fair value of forward repurchase contract		(34,752	)		—		(34,752	)		—
(Loss) income before income taxes		(43,083	)		73,071		(59,656	)		141,175
Income tax (benefit) provision		(9,470	)		7,400		(8,430	)		14,615
Net (loss) income		(33,613	)		65,671		(51,226	)		126,560
Net income attributable to non-controlling interests		62			54		124			93
Net (loss) income attributable to Allegro MicroSystems, Inc.	$	(33,675	)	$	65,617	$	(51,350	)	$	126,467
Net (loss) income per common share attributable to Allegro MicroSystems, Inc.:
Basic	$	(0.18	)	$	0.34	$	(0.27	)	$	0.66
Diluted	$	(0.18	)	$	0.34	$	(0.27	)	$	0.65
Weighted average shares outstanding:
Basic		189,182,850			192,431,094		191,324,281			192,214,210
Diluted		189,182,850			195,100,855		191,324,281			195,055,495

Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

	Three-Month Period Ended				Change						Six-Month Period Ended				Change
	September 27, 2024		September 29, 2023		Amount			%			September 27, 2024		September 29, 2023		Amount			%
	(Dollars in thousands)										(Dollars in thousands)
Automotive	$	141,893	$	197,321	$	(55,428	)		(28	)%	$	273,077	$	382,751	$	(109,674	)		(29	)%
Industrial and other		45,498		78,188		(32,690	)		(42	)%		81,233		171,051		(89,818	)		(53	)%
Total net sales	$	187,391	$	275,509	$	(88,118	)		(32	)%	$	354,310	$	553,802	$	(199,492	)		(36	)%


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

	September 27, 2024			March 29, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	188,751		$	212,143
Restricted cash		10,287			10,018
Trade accounts receivable, net		76,985			118,508
Inventories		176,648			162,302
Prepaid income taxes		38,636			31,908
Prepaid expenses and other current assets		32,253			33,584
Current portion of related party notes receivable		—			3,750
Total current assets		523,560			572,213
Property, plant and equipment, net		325,051			321,175
Deferred income tax assets		61,839			54,496
Goodwill		203,151			202,425
Intangible assets, net		266,753			276,854
Related party notes receivable, less current portion		—			4,688
Equity investment in related party		30,186			26,727
Other assets		81,577			72,025
Total assets	$	1,492,117		$	1,530,603
Liabilities, Non-Controlling Interests and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	50,245		$	35,964
Amounts due to related party		5,546			1,626
Accrued expenses and other current liabilities		62,742			76,389
Current portion of long-term debt		5,475			3,929
Total current liabilities		124,008			117,908
Long-term debt		396,056			249,611
Other long-term liabilities		33,345			31,368
Total liabilities		553,409			398,887
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—			—
Common stock		1,840			1,932
Additional paid-in capital		993,988			694,332
(Accumulated deficit) retained earnings		(31,931	)		463,012
Accumulated other comprehensive loss		(26,583	)		(28,841	)
Equity attributable to Allegro MicroSystems, Inc.		937,314			1,130,435
Non-controlling interests		1,394			1,281
Total stockholders’ equity		938,708			1,131,716
Total liabilities, non-controlling interests and stockholders’ equity	$	1,492,117		$	1,530,603


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)

	Three-Month Period Ended						Six-Month Period Ended
	September 27, 2024			September 29, 2023			September 27, 2024			September 29, 2023
Cash flows from operating activities:
Net (loss) income	$	(33,613	)	$	65,671		$	(51,226	)	$	126,560
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		15,997			15,080			32,455			29,353
Amortization of deferred financing costs		306			73			1,087			107
Deferred income taxes		(2,796	)		(9,772	)		(7,795	)		(18,134	)
Stock-based compensation		11,545			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			34,752			—
Provisions for inventory and expected credit losses		2,111			4,239			4,488			9,422
Change in fair value of marketable securities		—			(72	)		—			3,579
Other non-cash reconciling items		6,563			43			6,577			43
Changes in operating assets and liabilities:
Trade accounts receivable		(13,717	)		2,676			41,417			(7,645	)
Inventories		(2,845	)		(3,274	)		(18,831	)		(31,221	)
Prepaid expenses and other assets		(14,093	)		(6,253	)		(15,808	)		(16,453	)
Trade accounts payable		13,470			(15,736	)		13,670			2,695
Due to and from related parties		695			(3,990	)		4,132			6,112
Accrued expenses and other current and long-term liabilities		(2,828	)		(12,832	)		(16,838	)		(29,944	)
Net cash provided by operating activities		15,547			46,730			49,743			96,393
Cash flows from investing activities:
Purchases of property, plant and equipment		(9,972	)		(31,191	)		(20,949	)		(76,101	)
Sales of marketable securities		—			6,204			—			16,175
Net cash used in investing activities		(9,972	)		(24,987	)		(20,949	)		(59,926	)
Cash flows from financing activities:
Loan made to affiliate		—			(4,000	)		—			(4,000	)
Net proceeds from Refinanced 2023 Term Loan Facility		193,483			—			193,483			—
Payment of borrowings under 2023 Term Loan Facility		—			—			(50,000	)		—
Finance lease payments		(240	)		—			(385	)		—
Receipts on related party notes receivable		937			937			1,875			1,875
Payments for taxes related to net share settlement of equity awards		(1,126	)		(1,669	)		(12,297	)		(14,091	)
Proceeds from issuance of common stock under employee stock purchase plan		1,987			—			1,987			1,899
Repurchases of common stock		(853,805	)		—			(853,805	)		—
Net proceeds from issuance of common stock		665,850			—			665,850			—
Payment of debt issuance costs		—			—			—			(1,450	)
Net cash provided by (used in) financing activities		7,086			(4,732	)		(53,292	)		(15,767	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		2,200			(901	)		1,375			(974	)
Net increase (decrease) in cash and cash equivalents and restricted cash		14,861			16,110			(23,123	)		19,726
Cash and cash equivalents and restricted cash at beginning of period		184,177			362,321			222,161			358,705
Cash and cash equivalents and restricted cash at end of period:	$	199,038		$	378,431		$	199,038		$	378,431

Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP Financial Measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP Financial Measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related party activities and other non-operational costs.

Non-GAAP Income Tax Provision

In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision:

Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.


*Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Gross Profit	$	85,662		$	74,771		$	159,503		$	160,433		$	317,453
GAAP Gross Margin (% of net sales)		45.7	%		44.8	%		57.9	%		45.3	%		57.3	%

Non-GAAP adjustments
Transaction-related costs		10			(1	)		—			9			—
Purchased intangible amortization		4,875			4,875			273			9,750			675
Restructuring costs		16			1,200			—			1,216			—
Stock-based compensation		817			561			946			1,378			3,552
Total Non-GAAP Adjustments	$	5,718		$	6,635		$	1,219		$	12,353		$	4,227

Non-GAAP Gross Profit	$	91,380		$	81,406		$	160,722		$	172,786		$	321,680
Non-GAAP Gross Margin (% of net sales)		48.8	%		48.8	%		58.3	%		48.8	%		58.1	%


*Reconciliation of Non-GAAP Operating Expenses*

	Three-Month Period Ended							Six-Month Period Ended
	September 27, 2024			June 28, 2024		September 29, 2023		September 27, 2024			September 29, 2023
	(Dollars in thousands)							(Dollars in thousands)
GAAP Operating Expenses	$	81,595		$	85,401	$	86,588	$	166,996		$	173,792

Research and Development Expenses
GAAP Research and Development Expenses		43,510			45,204		43,428		88,714			86,403
Non-GAAP adjustments
Transaction-related costs		206			1,029		2		1,235			9
Restructuring costs		260			169		—		429			—
Stock-based compensation		3,523			3,735		3,602		7,258			6,470
Other costs⁽¹⁾		3			—		—		3			—
Non-GAAP Research and Development Expenses		39,518			40,271		39,824		79,789			79,924

Selling, General and Administrative Expenses
GAAP Selling, General and Administrative Expenses		38,085			40,197		43,160		78,282			87,389
Non-GAAP adjustments
Transaction-related costs		275			814		1,804		1,089			4,876
Purchased intangible amortization		535			535		357		1,070			715
Restructuring costs		2,046			1,045		—		3,091			—
Stock-based compensation		7,205			5,822		6,329		13,027			11,897
Other costs⁽¹⁾		(1,820	)		811		100		(1,009	)		100
Non-GAAP Selling, General and Administrative Expenses		29,844			31,170		34,570		61,014			69,801

Total Non-GAAP Adjustments		12,233			13,960		12,194		26,193			24,067

Non-GAAP Operating Expenses	$	69,362		$	71,441	$	74,394	$	140,803		$	149,725

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.


*Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Income (Loss)	$	4,067		$	(10,630	)	$	72,915		$	(6,563	)	$	143,661
GAAP Operating Margin (% of net sales)		2.2	%		(6.4	)%		26.5	%		(1.9	)%		25.9	%

Transaction-related costs		491			1,842			1,806			2,333			4,885
Purchased intangible amortization		5,410			5,410			630			10,820			1,390
Restructuring costs		2,322			2,414			—			4,736			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Other costs⁽¹⁾		(1,817	)		811			100			(1,006	)		100
Total Non-GAAP Adjustments	$	17,951		$	20,595		$	13,413		$	38,546		$	28,294

Non-GAAP Operating Income	$	22,018		$	9,965		$	86,328		$	31,983		$	171,955
Non-GAAP Operating Margin (% of net sales)		11.7	%		6.0	%		31.3	%		9.0	%		31.0	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.


*Reconciliation of EBITDA and Adjusted EBITDA*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income	$	(33,613	)	$	(17,613	)	$	65,671		$	(51,226	)	$	126,560
GAAP Net (Loss) Income Margin (% of net sales)		(17.9	)%		(10.6	)%		23.8	%		(14.5	)%		22.9	%

Interest expense		10,353			5,377			758			15,730			1,527
Interest income		(420	)		(494	)		(850	)		(914	)		(1,693	)
Income tax (benefit) provision		(9,470	)		1,040			7,400			(8,430	)		14,615
Depreciation & amortization		15,997			16,458			15,145			32,455			29,418
EBITDA	$	(17,153	)	$	4,768		$	88,124		$	(12,385	)	$	170,427

Transaction-related costs		3,295			1,842			1,806			5,137			4,885
Restructuring costs		2,067			2,414			—			4,481			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—			34,752			—
Other costs⁽¹⁾		(2,195	)		2,807			1,301			612			5,890
Adjusted EBITDA	$	32,311		$	21,949		$	102,108		$	54,260		$	203,121
Adjusted EBITDA Margin (% of net sales)		17.2	%		13.1	%		37.1	%		15.3	%		36.7	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.


*Reconciliation of Non-GAAP Profit before Tax*

	Three-Month Period Ended								Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023		September 27, 2024			September 29, 2023
	(Dollars in thousands)								(Dollars in thousands)
GAAP (Loss) Income before Income Taxes	$	(43,083	)	$	(16,573	)	$	73,071	$	(59,656	)	$	141,175

Transaction-related costs		3,295			1,842			1,806		5,137			4,885
Transaction-related interest		141			709			—		850			—
Purchased intangible amortization		5,410			5,410			630		10,820			1,390
Restructuring costs		2,067			2,414			—		4,481			—
Stock-based compensation		11,545			10,118			10,877		21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—		34,752			—
Other costs⁽¹⁾		1,428			2,807			1,301		4,235			5,890
Total Non-GAAP Adjustments	$	58,638		$	23,300		$	14,614	$	81,938		$	34,084

Non-GAAP Profit before Tax	$	15,555		$	6,727		$	87,685	$	22,282		$	175,259

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.


*Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Income Tax (Benefit) Provision	$	(9,470	)	$	1,040		$	7,400		$	(8,430	)	$	14,615
GAAP effective tax rate		22.0	%		(6.3	)%		10.1	%		14.1	%		10.4	%

Tax effect of adjustments to GAAP results		10,071			(395	)		2,554			9,676			6,380

Non-GAAP Income Tax Provision	$	601		$	645		$	9,954		$	1,246		$	20,995
Non-GAAP effective tax rate		3.9	%		9.6	%		11.4	%		5.6	%		12.0	%


*Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.⁽¹⁾	$	(33,675	)	$	(17,675	)	$	65,617		$	(51,350	)	$	126,467
GAAP Basic weighted average common shares		189,182,850			193,465,708			192,431,094			191,324,281			192,214,210
GAAP Diluted weighted average common shares		189,182,850			193,465,708			195,100,855			191,324,281			195,055,495
GAAP Basic (Loss) Earnings per Share	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.66
GAAP Diluted (Loss) Earnings per Share	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.65

Transaction-related costs		3,295			1,842			1,806			5,137			4,885
Transaction-related interest		141			709			—			850			—
Purchased intangible amortization		5,410			5,410			630			10,820			1,390
Restructuring costs		2,067			2,414			—			4,481			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—			34,752			—
Other costs⁽²⁾		1,428			2,807			1,301			4,235			5,890
Total Non-GAAP Adjustments		58,638			23,300			14,614			81,938			34,084
Tax effect of adjustments to GAAP results⁽³⁾		(10,071	)		395			(2,554	)		(9,676	)		(6,380	)
Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.	$	14,892		$	6,020		$	77,677		$	20,912		$	154,171
Basic weighted average common shares		189,182,850			193,465,708			192,431,094			191,324,281			192,214,210
Diluted weighted average common shares		189,710,595			194,705,716			195,100,855			192,154,185			195,055,495
Non-GAAP Basic Earnings per Share	$	0.08		$	0.03		$	0.40		$	0.11		$	0.80
Non-GAAP Diluted Earnings per Share	$	0.08		$	0.03		$	0.40		$	0.11		$	0.79

(1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.
(3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual Non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.


*Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Cash Flow	$	15,547		$	34,196		$	46,730		$	49,743		$	96,393
GAAP Operating Cash Flow (% of net sales)		8.3	%		20.5	%		17.0	%		14.0	%		17.4	%
Non-GAAP adjustments
Purchases of property, plant and equipment		(9,972	)		(10,977	)		(31,191	)		(20,949	)		(76,101	)

Non-GAAP Free Cash Flow	$	5,575		$	23,219		$	15,539		$	28,794		$	20,292
Non-GAAP Free Cash Flow (% of net sales)		3.0	%		13.9	%		5.6	%		8.1	%		3.7	%

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com

The MIL Network –

January 25, 2025

MIL-OSI United Kingdom: Ten-year ban for director who promoted tax avoidance scheme costing HMRC more than £2.5m
Source: United Kingdom – Executive Government & Departments

Director disqualified for operating tax avoidance scheme without notifying authorities
Alastair Lunt was the director of Peak PAYE Ltd which operated a tax avoidance scheme which resulted in more than £2.5 million of unpaid tax

The scheme, which had around 250 users, promised to help its customers avoid paying income tax and National Insurance

Lunt has been disqualified as a company director until September 2034

A director who promoted a tax avoidance scheme which deprived HM Revenue and Customs (HMRC) of more than £2.5 million in unpaid tax has been disqualified.

Alastair Lunt was the director of Peak PAYE Ltd when it caused losses of at least £2.64 million to HMRC between October 2020 and February 2022.

Lunt had failed to notify HMRC of the scheme, which had around 250 users, as he was required to by law.

The 36-year-old, who now lives in southern California, was banned as a company director for 10 years.

Claire Entwistle, Assistant Director of Operations at the Insolvency Service, said:

Tax avoidance schemes are marketed as ways for people to pay less tax but do not always work as advertised, landing customers instead with a big tax bill.

Our public services also rely on everyone paying their taxes and schemes such as this deprive the UK of the revenue it needs to invest in our hospitals, schools and roads.

Peak PAYE’s director, Alastair Lunt, was required to notify HMRC of the scheme. He failed to do so, causing substantial losses to the public purse.

We will continue to work closely with our partners at HMRC to disrupt and clamp down on scheme promoters such as Peak PAYE.

Peak PAYE operated its tax avoidance scheme by paying contractors the National Minimum Wage, and then paying the remainder of their wages disguised as a financial option or as a salary advance.

The company, which had a registered office in Manchester, promised users they could avoid paying National Insurance and income tax as a result.

Promoters of tax avoidance schemes are required to inform HMRC. Peak PAYE did not do this between October 2020 and February 2022.

The company was ordered by HMRC to stop running the scheme in November 2022 and entered liquidation the following month.

Lunt moved to his current address of 16th Place, Costa Mesa, Orange County after his involvement with Peak PAYE.

The Secretary of State for Business and Trade accepted a disqualification undertaking from Lunt, and his ban started on Monday 30 September.

It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

Alastair Lunt is of 16th Place, Costa Mesa, Orange County, California. His date of birth is 23 March 1988

Peak PAYE Ltd (company number 11762908)

Individuals subject to a disqualification order or undertaking are bound by a range of restrictions

Further information about the work of the Insolvency Service, and how to complain about financial misconduct

Information about the published tax avoidance schemes and promoters

Information about HMRC’s ‘Don’t Get Caught Out’ campaign and the support available for customers who believe they are involved in a tax avoidance scheme

Visit GOV.UK to report tax avoidance schemes and those offering you the schemes

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Updates to this page

Published 31 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI United Kingdom: Three ways the Budget will put more money in working people’s pockets
Source: United Kingdom – Executive Government & Departments

We are raising the living wage, expanding the Help to Save scheme and limiting reductions to Universal Credit awards.
Working people are the lifeblood of our economy. The government is not increasing the basic, higher or additional rates of Income Tax, National Insurance, or VAT.

Here are just some of the measures announced at the Autumn Budget 2024 that will help put more money into your pocket.

1. Savings boost from the government for low earners

The Help to Save scheme has been extended and widened. The scheme offers lower earners a savings account where they can save a maximum of £50 a month for 4 years and receive a 50% government boost at the end of year 2 and year 4. This helps workers kickstart a lifelong savings habit and offers up to £1,200 over the 4 years.

The scheme was due to end in April 2025 but has been extended by 2 years until April 2027. Eligibility for the scheme will widen from April 2025. It will be open to all working Universal Credit claimants earning at least £1 a month.

2. Increased National Living Wage

In her statement, the Chancellor announced that from 1 April 2025, the National Living Wage will increase from £11.44 to £12.21 an hour for employees aged 21 and over. That’s an increase of 6.7% from 2024.

For 18 to 20 year olds, it will increase by £1.40 an hour, to £10.00 an hour. This is the first step towards the government’s plan to remove discriminatory age bands and deliver a genuine living wage that all adults can benefit from.

3. Capping how much Universal Credit can be taken for debt repayment

The government is creating a new Fair Repayment Rate which caps deductions made through Universal Credit at 15% of the standard allowance. Before this Budget, it was 25%.

This means approximately 1.2 million households will keep more of their Universal Credit payment each month, with households expected to be better off by an average of over £420 a year.

Other financial support available

These are just some of the ways the government is protecting working people. The Autumn Budget 2024 also includes further support for pensioners, those in crisis and those struggling most with the cost of essentials. Read the Budget in full to find out more.

Answer a few questions to find out what support you might be able to get to help with living costs. Check benefits and financial support you can get.

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Published 30 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI United Kingdom: Autumn Budget 2024 speech

Source: United Kingdom – Executive Government & Departments

Autumn Budget 2024 speech as delivered by Chancellor Rachel Reeves.

Delivered on:

30 October 2024 (Transcript of the speech, exactly as it was delivered)

Madam Deputy Speaker…

[redacted political content]

This government was given a mandate.

To restore stability to our economy…

… and to begin a decade of national renewal.

To fix the foundations…

… and deliver change.

Through responsible leadership in the national interest.

That is our task.

And I know that we can achieve it.

My belief in Britain burns brighter than ever.

And the prize on offer is immense.

As my Right Honourable Friend the Prime Minister said on Monday – change must be felt.

More pounds in people’s pockets.

An NHS that is there when you need it.

An economy that is growing, creating wealth and opportunity for all…

… because that is the only way to improve living standards.

And the only way to drive economic growth…

… is to invest, invest, invest.

There are no shortcuts.

And to deliver that investment…

… we must restore economic stability…

[redacted political content]

INHERITANCE

[redacted political content]

… it is the first Budget in our country’s history to be delivered by a woman.

I am deeply proud to be Britain’s first ever female Chancellor of the Exchequer.

To girls and young women everywhere, I say:

Let there be no ceiling on your ambition, your hopes and your dreams.

And along with the pride that I feel standing here today…

… there is also a responsibility…

… to pass on a fairer society and a stronger economy to the next

generation of women.

[redacted political content]

A black hole in the public finances…

Public services on their knees….

A decade of low growth.

And the worst parliament on record for living standards.

Let me begin with the public finances.

In July, I exposed a £22bn black hole

[redacted political content]

The Treasury’s reserve, set aside for genuine emergencies…

… spent three times over…

… just three months into the financial year.

Today, on top of the detailed document that I have provided to the House in July…

… the government is publishing a line by line breakdown of the £22bn black hole that we inherited…

It shows hundreds of unfunded pressures on the public finances…

… this year, and into the future too.

The Office for Budget Responsibility have published their own review of the circumstances around the Spring Budget forecast.

They say that the previous government – and I quote – “did not provide the OBR with all the [available] information to them”…

… and – had they known about these “undisclosed spending pressures that have since come to light”…

… then their Spring Budget forecast for spending would have been, and I quote again: “materially different”.

Let me be clear: that means any comparison between today’s forecast and the OBR’s March forecast is false…

… because the party opposite hid the reality of their public spending plans.

Yet at the very same budget…

… they made another ten billion pounds worth of cuts to National Insurance.

[redacted political content]

That’s why today, I can confirm that we will implement in full…

… the 10 recommendations from the independent Office for Budget Responsibility’s review.

But, the country has inherited not just broken public finances…

… but broken public services too.

The British people can see and feel that in their everyday lives.

NHS waiting lists at record levels.

Children in portacabins as school roofs crumble.

Trains that do not arrive.

Rivers filled with polluted waste.

Prisons overflowing.

Crimes which are not investigated…

… and criminals who are not punished.

That is the country’s inheritance

Since 2021, there had been no detailed plans for departmental spending set out beyond this year.

And [redacted political content] plans relied on a baseline for spending this year which we now know was wrong…

… because it did not take into account the £22bn black hole.

The previous government also failed to budget for costs which they knew would materialise.

That includes funding for vital compensation schemes…

… for victims of two terrible injustices…

[redacted political content]

… the infected blood scandal…

… and the Post Office Horizon scandal.

The Leader of the Opposition rightly made an unequivocal apology for the injustice of the infected blood scandal on behalf of the British state…

… but he did not budget for the costs of compensation.

Today, for the very first time, we will provide specific funding to compensate those infected and those affected, in full…

… with £11.8bn in this budget.

And I am also today setting aside £1.8bn to compensate victims of the Post Office Horizon scandal…

… redress that is long overdue for the pain and injustice that they have suffered.

[redacted political content]

… and we will restore stability to our country again.

The scale and seriousness of the situation that we have inherited cannot be underestimated.

Together, the hole in our public finances this year, which recurs every year…

… the compensation schemes that they did not fund…

… and their failure to assess the scale of the challenges facing our public services…

… means this budget raises taxes by £40bn.

Any Chancellor standing here today would have to face this reality.

And any responsible Chancellor would take action.

That is why today, I am restoring stability to our public finances…

… and rebuilding our public services.

FISCAL RULES / OBR FORECASTS

Economy forecast/growth

As a former economist at the Bank of England, I know what it means to respect our economic institutions.

I want to put on record my thanks to the Governor of the Bank, Andrew Bailey…

… and to the independent Monetary Policy Committee.

Today, I can confirm that we will maintain the MPC’s target of two per cent inflation, as measured by the 12-month increase in the Consumer Prices Index.

I want to thank James Bowler, the Permanent Secretary to the Treasury, and my team of officials.

Madam Deputy Speaker, I would also like to thank my predecessors as Chancellor of the Exchequer…

… for their wise counsel as I have prepared for this Budget.

[redacted political content]

Finally, I want to thank Richard Hughes and his team at the Office for Budget Responsibility for their work in preparing today’s economic and fiscal outlook.

Let me now take the House through that forecast.

The cost of living crisis under the last government stretched household finances to their limit, with inflation hitting a peak of above 11%.

Today, the OBR say that CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2.0% in 2029.

Next, I move on to economic growth.

Today’s budget marks an end to short-termism.

So I am pleased, that for the first time, the OBR have published not only five year growth forecasts…

… but a detailed assessment of the growth impacts of our policies over the next decade, too…

… and the new Charter for Budget Responsibility, which I am publishing today, confirms that this will become a permanent feature of our framework.

The OBR forecast that real GDP growth will be 1.1% in 2024, 2.0% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028 and 1.6% in 2029.

And the OBR are clear: this Budget will permanently increase the supply capacity of the economy…

[redacted political content]

… boosting long-term growth.

Every Budget I deliver will be focused on our mission to grow the economy.

And underpinning that mission are the seven key pillars of our growth strategy…

… developed and delivered alongside business…

… all driven forward by our Financial Secretary to the Treasury.

First, and most important, is to restore economic stability. That is my focus today.

Second, increasing investment and building new infrastructure is vital for productivity, so we are catalysing £70bn of investment through our National Wealth Fund…

… and we are transforming our planning rules to get Britain building again.

Third, to ensure that all parts of the UK can realise their potential…

… we are working with the devolved governments…

… and partnering with our Mayors to develop local growth plans.

Fourth, to improve employment prospects and skills we are creating Skills England, delivering our plans to Make Work Pay and tackling economic inactivity.

Fifth, we are launching our long-term modern industrial strategy and expanding opportunities for our small and medium sized businesses to grow.

Sixth, to drive innovation we are protecting record funding for research and development to harness the full potential of the UK’s science base.

And finally, to maximise the growth benefits of our clean energy mission, we have confirmed key investments such as Carbon Capture and Storage to create jobs in our industrial heartlands.

Our approach is already having an impact.

Just two weeks ago – we delivered an International Investment Summit which saw businesses commit £63.5bn of investment into this country…

… creating nearly 40,000 jobs across the United Kingdom.

[redacted political content]

Economic growth will be our mission for the duration of this parliament.

Stability rule

Madam Deputy Speaker, in our manifesto, we set out the fiscal rules that would guide this government.

I am confirming those today…

Our stability rule…

And our investment rule…

The “stability rule” means that we will bring the current budget into balance…

… so that we do not borrow to fund day to day spending.

We will meet this rule in 2029-30, until that becomes the third year of the forecast.

From then on, we will balance the current budget in the third year of every budget, held annually each autumn.

That will provide a tougher constraint on day to day spending…

… so difficult decisions cannot be constantly delayed or deferred.

The OBR say that the current budget will be in deficit by £26.2bn in 2025-26 and £5.2bn in 2026-27…

… before moving into surplus of £10.9bn in 2027-28, £9.3bn in 2028-29 and £9.9bn in 2029-30…

… meeting our stability rule…

… two years early.

Monthly public sector finances data shows that government borrowing in the first six months of this year…

… was already running significantly higher than the OBR’s March forecast.

And so the OBR confirmed today, that borrowing in this financial year is now £127bn…

[redacted political content]

The increase in the net cash requirement in 24-25 is lower than the increase in borrowing, at £22.3bn higher than the spring forecast.

Because of the action that we are taking…

… borrowing falls from 4.5% of GDP this year to 2.1% of GDP by the end of the forecast.

Public sector net borrowing will be £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-2930.

FIXING THE FOUNDATIONS

Spending

Madam Deputy Speaker, before I come to tax…

… it is vital that we are driving efficiency and reducing wasteful spending.

In July, to begin delivering, and dealing with our inheritance…

… I made £5.5bn of savings this year.

Today we are setting a 2% productivity, efficiency and savings target for all departments to meet next year…

… by using technology more effectively and joining up services across government

As set out in our manifesto, I will shortly be appointing our Covid Corruption Commissioner, they will lead our work to uncover those companies that used a national emergency to line their own pockets.

Because that money belongs in our public services. And taxpayers want that money back.

And I can confirm today that David Goldstone has been appointed as the Chair of the new Office for Value for Money…

… to help us realise the benefits from every pound of public spending.

Welfare

Today, I am also taking three steps to ensure that welfare spending is more sustainable.

First, we inherited [redacted political content] plans to reform the Work Capability Assessment.

We will deliver those savings…

…as part of our fundamental reforms to the health and disability benefits system that my Right Honourable Friend the Work and Pensions Secretary will bring forward.

Second, I can today announce a crackdown on fraud in our welfare system…

… often the work of criminal gangs.

We will expand DWP’s counter-fraud teams..

… using innovative new methods to prevent illegal activity…

… and provide new legal powers to crackdown on fraudsters…

… including direct access to bank accounts to recover debt.

This package saves £4.3bn a year by the end of the forecast.

Third, the government will shortly be publishing the “Get Britain Working” white paper…

… tackling the root causes of inactivity with an integrated approach across health, education and welfare.

… and we will provide £240m for 16 trailblazer projects…

… targeted at those who are economically inactive and most at risk of being out of education, employment or training…

… to get people into work and reduce the benefits bill.

Tax avoidance

Before a government could consider any change to a tax rate or threshold…

… it must ensure that people pay what they already owe.

So we will invest to modernise HMRC’s systems using the very best technology…

… and recruit additional HMRC compliance and debt staff.

We will clamp down on those umbrella companies who exploit workers…

… increase the interest rate on unpaid tax debt to ensure that people pay on time…

… and go after promoters of tax avoidance schemes.

These measures to reduce the tax gap raise £6.5bn by the end of the forecast…

… and I want to thank the Exchequer Secretary for his outstanding work on this agenda.

PROTECTING WORKING PEOPLE

Madam Deputy Speaker, I know that for working people up and down our country…

… family finances are stretched…

… and pay checks don’t go as far as they once did.

So today, I am taking steps to support people with the cost of living.

Cost of living

[redacted political content]

As promised in our manifesto, we asked the Low Pay Commission to take account of the cost of living for the first time.

I can confirm that we will accept the Low Pay Commission recommendation to increase the National Living Wage by 6.7% to £12.21 an hour…

… worth up to £1,400 a year for a full-time worker.

And for the first time, we will move towards a single adult rate…

… phased in over time…

… by initially increasing the National Minimum Wage for 18-20 year olds by 16.3% as recommended by the Low Pay Commission…

… taking it to £10 an hour.

[redacted political content]

Second, I have heard representations from colleagues across this house about the Carer’s Allowance…

… and the impact of the current policy on carers looking to increase the hours they work…

… including from the Honourable member for Shipley, the Honourable member for Scarborough and Whitby and the Rt Hon Member for Kingston and Surbiton, too.

Carer’s allowance currently provides up to £81.90 per week to help those with additional caring responsibilities.

Today, I can confirm that we are increasing the weekly earnings limit to the equivalent of 16 hours at the National Living Wage per week…

… the largest increase in Carer’s Allowance since it was introduced in 1976.

That means a carer can now earn over £10,000 a year while receiving Carer’s Allowance…

… allowing them to increase their hours where they want to…

… and keep more of their money.

I am also concerned about the cliff-edge in the current system and the issue of overpayments.

My Right Honourable Friend the Work and Pensions Secretary has announced an independent review to look at the issue of overpayments, and we will work across this house to develop the right solutions.

Third, we will provide £1bn from next year to extend the Household Support Fund and Discretionary Housing Payments, to help those facing financial hardship with the cost of essentials.

Fourth, having heard representations from the Joseph Rowntree Foundation, Trussell and others…

… to reduce the level of debt repayments that can be taken from a household’s Universal Credit payment each month…

… by reducing it from 25% to 15% of their standard allowance.

This means that 1.2 million of the poorest households will keep more of their award each month…

… lifting children out of poverty…

… and those who benefit will gain an average of £420 a year.

Madam Deputy Speaker, our Plan to Make Work Pay will also protect working people.

[redacted political content]

It is right that we protect those who have worked their whole lives.

In our manifesto, we promised to transfer the Investment Reserve Fund in the Mineworkers’ Pension Scheme to members…

… and I have listened closely to my Honourable Friends for Easington, Doncaster Central, Blaenau Gwent, and Ayr, Carrick and Cumnock on this issue.

Today we are keeping our promise…

… so that working people who powered our country receive the fair pension that they are owed.

Our manifesto committed to the Triple Lock…

… meaning spending on the State Pension is forecast to rise by over £31bn by 2029-30…

… to ensure that our pensioners are protected in their retirement.

This commitment means that while working age benefits will be uprated in line with CPI, at 1.7%…

… the basic and new State Pension…

… will be uprated by 4.1% in 2025-26.

This means that over 12 million pensioners will gain up to £470 next year…

… up to £275 more than if uprated by inflation.

The Pension Credit Standard Minimum Guarantee will also rise by 4.1%…

… from around £11,400 per year to around £11,850 for a single pensioner.

Fuel duty

While I have sought to protect working people with measures to reduce the cost of living…

… I have had to take some very difficult decisions on tax.

I want to set out my approach to fuel duty.

Baked into the numbers that I inherited from the previous government…

… is an assumption that fuel duty will rise by RPI next year…

… and that the temporary 5p cut will be reversed.

To retain the 5p cut…

… and to freeze fuel duty again…

… would cost over £3bn next year.

At a time when the fiscal position is so difficult…

… I have to be frank with the House that this is a substantial commitment to make.

I have concluded…

… that in these difficult circumstances…

… while the cost of living remains high…

… and with a backdrop of global uncertainty…

… increasing fuel duty next year…

… would be the wrong choice for working people.

It would mean fuel duty rising by 7p per litre.

So, I have today decided to freeze fuel duty next year…

… and I will maintain the existing 5p cut for another year, too.

There will be no higher taxes at the petrol pumps next year.

Madam Deputy Speaker, the last government made cuts of £20bn to employees’ and self-employed national insurance in their final two budgets.

[redacted political content]

Because we now know they were based on a forecast which the OBR say would have been “materially different”…

… had they known the true extent of the last government’s cover-up.

Since July, I have been urged on multiple occasions to reconsider these cuts.

To increase the taxes that working people pay and see in their payslips.

But I have made an important choice today:

To keep every single commitment that we made on tax in our manifesto.

So I say to working people:

I will not increase your National Insurance…

…I will not increase your VAT…

…And I will not increase your income tax.

Working people will not see higher taxes in their payslips as a result of the choices I make today.

That is a promise made – and a promise fulfilled.

TAX

But any responsible Chancellor would need to take difficult decisions today.

To raise the revenues required to fund our public services.

And to restore economic stability.

So in today’s Budget, I am announcing an increase in Employers’ National Insurance Contributions.

We will increase the rate of Employers’ National Insurance by 1.2 percentage points, to 15%, from April 2025.

And we will reduce the Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – from £9,100 per year to £5,000.

This will raise £25bn per year by the end of the forecast period.

I know that this is a difficult choice.

I do not take this decision lightly.

We are asking business to contribute more…

… and I know that there will be impacts of this measure felt beyond businesses, too…

… as the OBR have set out today.

But in the circumstances that I have inherited, it is the right choice to make.

Successful businesses depend on successful schools.

Healthy businesses depend on a healthy NHS.

And a strong economy depends on strong public finances.

[redacted political content]

That is the choice our country faces too.

As I make this choice, I know it is particularly important to protect our smallest companies.

So having heard representations from the Federation of Small Businesses and others…

… I am today increasing the Employment Allowance from £5,000 to £10,500.

This means 865,000 employers won’t pay any National Insurance at all next year…

… and over 1 million will pay the same or less than they did previously.

This will allow a small business to employ the equivalent of 4 full time workers on the National Living Wage…

… without paying any National Insurance on their wages.

Madam Deputy Speaker, let me come now to capital gains tax.

We need to drive growth, promote entrepreneurship, and support wealth creation…

… while raising the revenue required to fund our public services…

… and restore our public finances.

Today, we will increase the lower rate of Capital Gains Tax from 10% to 18%, and the Higher Rate from 20% to 24%…

… while maintaining the rates of capital gains tax on residential property at 18% and 24%, too.

This means the UK will still have the lowest Capital Gains Tax rate of any European G7 economy.

Alongside these changes to the headline rates of Capital Gains Tax…

… we are maintaining the lifetime limit for Business Asset Disposal Relief at £1m…

… to encourage entrepreneurs to invest in their businesses.

Business Asset Disposal Relief will remain at 10% this year…

… before rising to 14% in April 2025…

… and 18% from 2026-27…

… maintaining a significant gap compared to the higher rate of Capital Gains Tax.

Together, the OBR say these measures will raise £2.5bn by the end of the forecast.

In a sign of this government’s commitment to supporting growth and entrepreneurship…

…we have already extended the Enterprise Investment Scheme and Venture Capital Trust schemes to 2035…

… and we will continue to work with leading entrepreneurs and venture capital firms…

… to ensure our policies support a positive environment for entrepreneurship in the UK.

Next, inheritance tax.

Only 6% of estates will pay inheritance tax this year.

I understand the strongly held desire to pass down savings to children and grandchildren.

So I am taking a balanced approach in my package today.

First, the previous government froze inheritance tax thresholds until 2028. I will extend that freeze for a further two years, until 2030.

That means the first £325,000 of any estate can be inherited tax-free…

… rising to £500,000 if the estate includes a residence passed to direct descendants….

… and £1m when a tax free allowance is passed to a surviving spouse or civil partner.

Second, we will close the loophole created by the previous government…

… made even bigger when the Lifetime Allowance was abolished…

… by bringing inherited pensions into inheritance tax from April 2027.

Finally, we will reform Agricultural Property Relief and Business Property Relief.

From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all…

… but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.

This will ensure we continue to protect small family farms…

… and three-quarters of claims will be unaffected by these changes.

I can also announce that we will apply a 50% relief, in all circumstances, on inheritance tax for shares on the Alternative Investment Market (AIM) and other similar markets…

… setting the effective rate of tax at 20%.

Taken together, these measures raise over £2bn in the final year of the forecast.

Next, I can confirm that the government will renew the Tobacco Duty escalator for the remainder of this Parliament at RPI+2%…

… increase duty by a further 10% on hand-rolling tobacco this year…

… introduce a flat rate duty on all vaping liquid from October 2026…

… alongside an additional one off- increase in tobacco duty to maintain the incentive to give up smoking.

And we will increase the Soft Drinks Industry Levy to account for inflation since it was introduced…

… as well as increasing the duty in line with CPI each year going forward.

These measures will raise nearly £1bn per year by the end of the forecast period.

Madame Deputy Speaker, we want to support the take-up of electric vehicles.

So I will maintain incentives for electric vehicles in Company Car Tax from 2028…

… and increase the differential between fully electric and other vehicles in the first year rates of Vehicle Excise Duty from April 2025.

These measures will raise around £400m by the end of the forecast period.

Madam Deputy Speaker let me update the House on our plans for Air Passenger Duty…

[redacted political content]

Air Passenger Duty has not kept up with inflation in recent years…

… so we are introducing an adjustment…

… meaning an increase of no more than £2 for an economy class short-haul flight.

But I am taking a different approach when it comes to private jets…

… increasing the rate of Air Passenger Duty by a further 50%.

[redacted political content]

These measures will raise over £700m by the end of the forecast period.

Madam Deputy Speaker, let me turn now to our high street businesses.

I know that for them, a major source of concern is business rates.

From 2026-27, we intend to introduce two permanently lower tax rates for retail, hospitality and leisure properties which make up the backbone of high streets across the country…

… and it is our intention that is paid for by a higher multiplier for the most valuable properties.

[redacted political content]

So I will today provide 40% relief on business rates for the retail, hospitality and leisure industry in 2025-26…

… up to a cap of £110,000 per business.

Alongside this, the small business tax multiplier will be frozen next year.

Next, I can confirm that alcohol duty rates on non-draught products will increase in line with RPI from February next year…

… but nearly two-thirds of alcoholic drinks sold in pubs are served on draught.

So today, instead of uprating these products in line with inflation…

… I am cutting draught duty by 1.7%…

… which means a penny off a pint in the pub.

Alongside the changes I am making today, I am publishing a Corporate Tax Roadmap..

… providing the business certainty called for by the CBI, British Chambers of Commerce and the Institute for Directors.

This confirms our commitment to cap the rate of Corporation Tax at 25% – the lowest in the G7 – for the duration of this parliament….

… while maintaining full expensing and the £1 million Annual Investment Allowance…

…and keeping the current rates of research and development reliefs, to drive innovation.

Manifesto

Madam Deputy Speaker, in our manifesto we made a number of commitments to raise funding for our public services.

First, I have always said that if you make Britain your home, you should pay your tax here.

So today, I can confirm…

… we will abolish the non-dom tax regime…

… and remove the outdated concept of domicile from the tax system from April 2025.

We will introduce a new, residence based scheme…

… with internationally competitive arrangements for those coming to the UK on a temporary basis…

… while closing the loopholes in the scheme designed by the party opposite.

To further encourage investment into the UK, we will also extend the Temporary Repatriation Relief to three years and expand its scope…

… bringing billions of pounds of new funds into Britain.

The independent Office for Budget Responsibility say that this package of measures will raise £12.7bn over the next five years.

Next, the fund management industry provides a vital contribution to our economy…

… but as our manifesto set out, there needs to be a fairer approach to the way carried interest is taxed.

So we will increase the Capital Gains Tax rates on carried interest to 32% from April 2025…

… and – from April 2026 – we will deliver further reforms to ensure that the specific rules for carried interest are simpler, fairer and better targeted.

In our manifesto we committed to reforming stamp duty land tax to raise revenue while supporting those buying their first home.

We are increasing the stamp-duty land tax surcharge for second-homes…

…known as the “Higher Rate for Additional Dwellings”…

… by 2 percentage points, to 5%, which will come into effect from tomorrow.

This will support over 130,000 additional transactions from people buying their first home, or moving home over, the next five years.

Next, we committed to reform the Energy Profits Levy on oil and gas companies.

I can confirm today that we will increase the rate of the levy to 38%, which will now expire in March 2030…

… and we will remove the 29% investment allowance.

To ensure the oil and gas industry can protect jobs and support our energy security…

… we will maintain the 100% first year allowances and the decarbonisation allowances too.

Finally, 94% of children in the UK attend state schools.

To provide the highest quality of support and teaching that they deserve…

… we will introduce VAT on private school fees from January 2025…

… and we will shortly introduce legislation to remove their business rates relief from April 2025, too.

We said in our manifesto that these changes…

… alongside our measures to tackle tax avoidance…

… would bring in £8.5bn by the final year of the forecast.

I can confirm today that they will in fact raise over £9bn…

… to support our public services and restore our public finances.

That is a promise made – and a promise fulfilled.

Madam Deputy Speaker, I have one final decision to take on tax today.

The previous government froze income tax and National Insurance thresholds in 2021…

… and then they did so again after the mini-budget.

Extending their threshold freeze for a further two years raises billions of pounds.

Money to deal with the black hole in our public finances…

… and repair our public services.

Having considered this issue closely…

… I have come to the conclusion…

… that extending the threshold freeze…

… would hurt working people.

It would take more money out of their payslips.

I am keeping every single promise on tax that I made in our manifesto.

So there will be no extension of the freeze in income tax and National Insurance thresholds beyond the decisions of the previous government.

From 2028-29, personal tax thresholds will be uprated in line with inflation once again.

When it comes to choices on tax, this government chooses to protect working people every single time.

SPENDING

Madam Deputy Speaker, these are the choices I have made.

To restore economic stability.

And to protect working people.

The next choice I make is to begin to repair our public services.

In recent months, we have conducted the first phase of the Spending Review…

… to set departmental budgets for 2024-25 and 2025-26…

… and I want to thank my Right Honourable Friend the Chief Secretary to the Treasury for his tireless work with colleagues from across government.

Because I have taken difficult decisions on tax today…

… I am able to provide an injection of immediate funding over the next two years…

… to stabilise and to support our public services.

The next phase of the Spending Review will report in late Spring, and I have set the overall envelope today.

Day to day spending from 2024-25 onwards will grow by 1.5% in real terms…

… and total departmental spending, including capital spending, will grow by 1.7% in real terms.

At the election we promised there would be no return to austerity.

Today we deliver on that promise.

But given the scale of the challenges that are facing our public services…

… that means there will still be difficult choices in the next phase of the Spending Review.

Just as we cannot tax and spend our way to prosperity…

… nor can we simply spend our way to better public services.

So we will deliver a new approach to public service reform…

… using technology to improve public services…

… and taking a zero-based approach…

… so that taxpayers’ money is spent as effectively as possible…

… and so that we focus on delivering our key priorities.

Spending Review: Phase 1

In the first phase of the Spending Review…

… I have prioritised day-to-day funding to deliver on our manifesto commitments.

I want every child to have the best start in life…

… and the best possible start to the school day, too…

… and I know my Right Honourable Friend the Education Secretary shares my ambition.

So I am today tripling investment in breakfast clubs to fund them in thousands of schools.

I am increasing the core schools budget by £2.3bn next year…

… to support our pledge to hire thousands more teachers into key subjects.

So that our young people can develop the skills that they need for the future…

… I am providing an additional £300m for further education.

And finally, this government is committed to reforming special educational needs provision…

… to improve outcomes for our most vulnerable children and ensure the system is financially sustainable.

To support that work, I am today providing a £1bn uplift in funding, a 6% real terms increase from this year.

There is no more important job for government than to keep our country safe, and we are conducting a Strategic Defence Review to be published next year.

And as set out in our manifesto, we will set a path to spending 2.5% of GDP on defence at a future fiscal event.

Today, I am announcing a total increase to the Ministry of Defence’s Budget of £2.9bn next year…

… ensuring the UK comfortably exceeds our NATO commitments…

… and providing guaranteed military support to Ukraine of £3bn per year, for as long as it takes.

Last week, alongside my Right Honourable Friend the Defence Secretary, I announced, in addition to this, further support to Ukraine – on top of our NATO commitment…

… through our £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration agreement…

… repaid using profits from immobilised Russian sovereign assets.

And as we approach Remembrance Sunday…

… it is vital that we take time to remember those who have served our country so bravely.

So I am today announcing funding to commemorate the 80th anniversary of VE and VJ day next year…

… to honour those who have served at home and abroad.

We must also remember those who experienced the atrocities of the Nazi regime first hand.

I would like to pay tribute to Lily Ebert, the Holocaust Survivor and educator who passed away aged 100 earlier this month.

I am today committing a further £2m to holocaust education next year…

… so that charities like the Holocaust Educational Trust, can continue their work to ensure these vital testimonies are not lost and are preserved for the future.

Madam Deputy Speaker, to repair our public services we also need to work alongside our mayors and our local leaders.

We will deliver a significant real-terms funding increase for local government next year…

… including £1.3bn of additional grant funding to deliver essential services…

… with at least £600m in grant funding for social care…

… and £230m to tackle homelessness and rough sleeping

We are today confirming that Greater Manchester and the West Midlands will be the first mayoral authorities to receive integrated settlements from next year…

… giving Mayors meaningful control of the funding for their local areas.

*

And to support our local high streets…

… we are taking action to deal with the sharp rise in shoplifting we have seen in recent years.

We will scrap the effective immunity for low-value shoplifting introduced by the party opposite.

And having listened closely to organisations like the British Retail Consortium and USDAW…

… I am providing additional funding to crack down on the organised gangs which target retailers…

… and to provide more training to our police officers and retailers to help stop shoplifting in its tracks.

Finally, I am today providing funding to support public services and drive growth across Scotland, Wales and Northern Ireland.

Having discussed the matter with the First Minister of Wales, Eluned Morgan, and my HFs for Llanelli and Pontypridd…

… I am providing a £25m to the Welsh Government next year for the maintenance of coal tips to ensure we keep our communities safe.

And to support growth, including in our rural areas, we will proceed with City and Growth Deals in Northern Ireland…

… in Causeway Coast and Glens; and Mid-South West.

And we will drive growth in Scotland [redacted political content] including a City and growth Deal in Argyll and Bute.

This budget provides the devolved governments with the largest real-terms funding settlement since devolution…

… delivering an additional £3.4 billion for the Scottish Government through the Barnett formula…

… funding which must now be spent effectively to improve public services in Scotland.

This budget also provides £1.7 billion to the Welsh Government…

… and £1.5 billion to the Northern Ireland Executive in 2025-26.

I said there would be no return to austerity, and that is the choice I have made today.

REBUILDING BRITAIN

Madam Deputy Speaker, to rebuild our country we need to increase investment.

The UK lags behind every other G7 country when it comes to business investment as a share of our economy.

That matters.

It means the UK has fallen behind in the race for new jobs…

… new industries…

… and new technology.

By restoring economic stability…

… and by establishing the National Wealth Fund to catalyse private funding…

… we have begun to create the conditions that businesses need to invest.

But there is also a significant role for public investment.

Hospitals without the equipment they need.

School buildings not fit for our children.

A desperate lack of affordable housing.

Economic growth held back at every turn.

Under the plans I inherited…

… public investment was set to fall from 2.5% to 1.7% of GDP.

But in Washington last week, the International Monetary Fund were clear:

More public investment is badly needed in the UK.

So today, having listened to the case made by the former Governor of the Bank of England, Mark Carney…

… former Treasury Minister, Jim O’Neill…

… and the former Cabinet Secretary, Gus O’Donnell…

… among others…

… I am confirming our investment rule.

As set out in our manifesto, we will target debt falling as a share of the economy.

Debt will be defined as Public Sector net Financial Liabilities, or “net financial debt”, for short…

… a metric that has been measured by the Office for National Statistics since 2016…

… and forecast by the Office for Budget Responsibility since that date too.

“Net financial debt” recognises that government investment delivers returns for taxpayers…

… by counting not just the liabilities on a government’s balance sheet, but the financial assets too.

This means that we count the benefits of investment, not just the costs…

And we free up our institutions to invest…

… just as they do in Germany, France and Japan.

Like our stability rule, our investment rule will apply in 2029-2030…

… until that becomes the third year of the forecast.

From that point onwards, net financial debt will fall in the third year of every forecast.

Today, the OBR say that we are already meeting our target two years early…

… with “net financial debt” falling by 2027-28…

… with £15.7bn of headroom in the final year.

So that we drive the right incentives in government investments…

… we will introduce four key guardrails to ensure capital spending is good value for money and drives growth in our economy.

First, our portfolio of new financial investments will be delivered by expert bodies like the National Wealth Fund which must, by default, earn a rate of return at least as large as that on gilts.

Second, we will strengthen the role of institutions to improve infrastructure delivery.

Third, we will improve certainty, setting capital budgets for five years and extending them at every spending review every two years.

Finally, we will ensure there is greater transparency for capital spending, with robust annual reporting of financial investments…

… based on accounts audited by the National Audit Office…

… and made available to the Office for Budget Responsibility at every forecast.

Taken together with our stability rule…

…these fiscal rules will ensure that our public finances are on a firm footing…

… while enabling us to invest prudently alongside business.

Growth projects

The capital plans I now set out…

… to drive growth across our country…

… and repair the fabric of our nation…

… are only possible because of our investment rule.

Let me set out those investment plans.

Industrial strategy

Today we are confirming our plans to capitalise the National Wealth Fund…

… to invest in the industries of the future…

… from gigafactories, to ports to green hydrogen.

Building on these investments, my Right Honourable Friend the Business Secretary is driving forward our modern industrial strategy…

… working with businesses and organisations like Make UK…

… to set out the sectors with the biggest growth potential.

Today, we are confirming multi-year funding commitments for these areas of our economy, including…

… nearly £1bn for the aerospace sector to fund vital research and development, building on our industry in the East Midlands, the South-West and Scotland…

… over £2 billion for the automotive sector…

… to support our electric vehicle industry and develop our manufacturing base…

… building on our strengths in the North East and the West Midlands…

And up to £520m for a new Life Sciences Innovative Manufacturing Fund.

For our world-leading creative industries…

… we will legislate to provide additional tax relief for visual effect costs in TV and film…

.. and we are providing £25m for the North East Combined Authority…

… which they plan to use to remediate the Crown Works Studio site in Sunderland…

… creating 8,000 new jobs.

Research & Development

To unlock these growth industries of the future, we will protect government investment in research and development with more than £20bn worth of funding.

This includes at least £6.1bn to protect core research funding for areas like engineering, biotechnology and medical science…

…through Research England, other research councils, and the National Academies.

We will extend the Innovation Accelerators programme in Glasgow, in Manchester and in the West Midlands.

And with over £500m of funding next year, my Right Honourable Friend the Science, Technology and Innovation Secretary, will continue to drive progress in improving reliable, fast broadband and mobile coverage across our country, including in rural areas.

Housing

We committed in our manifesto to build 1.5 million homes over the course of this parliament…

… and my Right Honourable Friend the Deputy Prime Minister is driving that work forward across government.

Today, I am providing over £5bn of government investment to deliver our plans on housing next year.

We will increase the Affordable Homes Programme to £3.1bn…

… delivering thousands of new homes.

We will provide £3bn of support in guarantees…

… to boost the supply of homes and support our small housebuilders.

And we will provide investment to renovate sites across our country…

… including at Liverpool Central Docks…

… where we will deliver 2,000 new homes…

… and funding to help Cambridge realise its full growth potential.

Alongside this investment, we will put the right policies in place to increase the supply of affordable housing.

Having heard representations from local authorities, social housing providers and from Shelter…

… I can today confirm that the government will reduce Right to Buy Discounts…

… and local authorities will be able to retain the full receipts from any sales of social housing…

… to reinvest back into the housing stock, and into new supply..

… so that we give more people a safe, secure and affordable place to live.

We will provide stability to social housing providers, with a social housing rent settlement of CPI+1 percent for the next five years.

And we will deliver on our manifesto commitment to hire hundreds of new planning officers, to get Britain building again.

We will also make progress on our commitment to accelerate the remediation of homes following the findings of the Grenfell Inquiry…

… with £1bn of investment to remove dangerous cladding next year.

Transport

Working with my Right Honourable Friend the Transport Secretary, I am changing that.

We are today securing the delivery of the Trans-Pennine upgrade to connect York, Leeds, Huddersfield and Manchester…

… delivering fully electric local and regional services between Manchester and Stalybridge by the end of this year…

… with a further electrification of services between Church Fenton and York by 2026.…

… to help grow our economy across the North of England…

… with faster and more reliable services.

We will deliver East-West Rail to drive growth between Oxford, Milton Keynes and Cambridge…

… with the first services running between Oxford, Bletchley and Milton Keynes next year…

… and trains between Oxford and Bedford running from 2030.

We are delivering railway schemes which improve journeys for people across our country…

… including upgrades at Bradford Forster Square…

… improving capacity at Manchester Victoria…

… and electrifying the Wigan-Bolton line.

My Right Honourable Friend the Transport Secretary has also set out a plan for how to get a grip of HS2.

Today, we are securing delivery of the project between Old Oak Common and Birmingham…

… and we are committing the funding required to begin tunnelling work to London Euston station…

… This will catalyse private investment into the local area.

I am also funding significant improvements to our roads network.

For too long, potholes have been an all too visible reminder of our failure to invest as a nation.

Today, that changes…

… with a £500m increase in road maintenance budgets next year…

… more than delivering on our manifesto commitment to fix an additional one million potholes each year.

We will provide over £650m of local transport funding to improve connections across our country…

… in our towns like Crewe and Grimsby…

… and in our villages and rural areas, from Cornwall to Cumbria.

… we understand how important bus services are for our communities…

…so we will extend the cap for a further year, setting it at £3 until December 2025.

Finally we will deliver £1.3bn of funding to improve connectivity in our city regions, funding projects like…

… the Brierley Hill Metro extension in the West Midlands…

… the renewal of the Sheffield Supertram…

… and West Yorkshire Mass Transit, including in Bradford and Leeds.

Energy

Madam Deputy Speaker, to bring new jobs to Britain and drive growth across our country…

… we are delivering our mission to make Britain a clean energy superpower, led by my Right Honourable Friend the Energy Secretary.

Earlier this month, we announced a significant multi-year investment between government and business into Carbon Capture and Storage…

… creating 4,000 jobs across Merseyside and Teesside.

Today, I am providing funding for 11 new green hydrogen projects across England, Scotland and Wales – they will be among the first commercial scale projects anywhere in the world…

… including in Bridgend, East Renfrewshire and in Barrow-in-Furness

We are kickstarting the Warm Homes Plan by confirming an initial £3.4bn over the next three years…

… to transform 350,000 homes…

… including a quarter of a million low-income and social homes.

And we will establish GB Energy…

… providing funding next year to set up GB Energy at its new home in Aberdeen.

Overall, we will invest an additional £100bn over the next five years in capital spending…

… only possible because of our investment rule.

The OBR say today that this will drive growth across our country in the next five years…

… and in the longer term increase GDP by up to 1.4%.

It will crowd in private investment…

… meaning more jobs, and more opportunities…

… in every corner of the UK.

That is the choice that I have made.

To invest in our country…

… and to grow our economy.

Today, I am setting out two final areas in which investment is so badly needed…

… to repair the fabric of our nation.

Schools

[redacted political content]

… schools roofs are crumbling….

… and millions of children are facing the very same backdrop as I did.

I will be the Chancellor that changes that.

So today, I am providing £6.7bn of capital investment to the Department for Education next year…

… a 19% real-terms increase on this year.

That includes £1.4bn to rebuild over 500 schools in the greatest need…

… including St Helen’s Primary School in Hartlepool, and Mercia Academy in Derby…

… and so many more across our country.

And we will provide a further £2.1bn to improve school maintenance, £300m more than this year…

… ensuring that all our children can learn somewhere safe…

… including dealing with RAAC affected schools in the constituencies of my HFs the members for Watford, Stourbridge, Hyndburn, and beyond.

Alongside investment in new teachers…

… and funding for thousands of new breakfast clubs…

… this government is giving our children and young people the opportunities that they deserve.

NHS

Madam Deputy Speaker, I come to our most cherished public service of all: our NHS.

[redacted political content]

In our first week in office, he commissioned an independent report into the state of our health service by Lord Darzi.

Its conclusions were damning.

While our NHS staff do a remarkable job, and we thank them for it…

… it is clear that, that in so many areas…

… we are moving in the wrong direction.

100,000 infants waited over 6 hours in A&E last year.

350,000 people are waiting a year for mental health support.

Cancer deaths here are higher than in other countries.

It is simply unforgiveable.

In the Spring, we will publish a 10 year plan for the NHS…

… to deliver a shift from hospital to community…

… from analogue to digital…

… and from sickness to prevention.

Today, we are announcing a downpayment on that plan…

… to enable the NHS to deliver 2% productivity growth next year.

These reforms are vital.

But we should be honest.

The state of the NHS we inherited…

… after – and I quote Lord Darzi – “the most austere decade since the NHS was founded” –

… means reform must come alongside investment.

So today…

… because of the difficult decision that I have taken on tax, welfare and spending…

… I can announce…

… that I am providing a £22.6bn increase in the day to-day health budget…

… and a £3.1bn increase in the capital budget…

… over this year and next year.

This is the largest real-terms growth in day to day NHS spending outside of Covid since 2010.

Let me set out what this funding is delivering.

Many NHS buildings have been left in a state of disrepair.

So we will provide £1 billion of health capital investment next year to address the backlog of repairs and upgrades across the NHS.

To increase capacity for tens of thousands more procedures next year…

… we will provide a further £1.5bn…

… for new beds in hospitals across the country…

… new capacity for over a million additional diagnostic tests…

… and new surgical hubs and diagnostic centres …

… so that those people waiting for their treatment can get it as quickly as possible.

My Right Honourable Friend the Health Secretary will be announcing the details of his review into the New Hospital Programme in the coming weeks…

… and publishing in the new year…

… but I can tell the House today…

… that work will continue at pace to deliver those seven hospitals affected including…

… West Suffolk Hospital in Bury St Edmunds…

… and Leighton Hospital in Crewe.

And finally…

… because of this record injection of funding…

… because of the thousands of additional beds that we have secured…

… and because of the reforms that we are delivering in our NHS…

… we can now begin to bring waiting lists down more quickly…

… and move towards our target for waiting times no longer than 18 weeks…

… by delivering our manifesto commitment for 40,000 extra hospital appointments a week.

[redacted political content]

CLOSING

Madam Deputy Speaker, the choices that I have made today are the right choices for our country.

To restore stability to our public finances.

To protect working people.

To fix our NHS.

And to rebuild Britain.

That doesn’t mean these choices are easy.

But they are responsible.

[redacted political content]

This is a moment of fundamental choice for Britain.

I have made my choices.

The responsible choices.

To restore stability to our country.

To protect working people.

More teachers in our schools.

More appointments in our NHS.

More homes being built.

Fixing the foundations of our economy.

Investing in our future.

Delivering change.

Rebuilding Britain.

We on these benches commend those choices…

… and I commend this Statement to the House.

Updates to this page

Published 30 October 2024

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI USA: Remarks by President Trump During Hurricane Helene Briefing

US Senate News:

Source: The White House
For Immediate Release                       January 24, 2025
REMARKS BY PRESIDENT TRUMPDURING HURRICANE HELENE BRIEFING Airport Fire and Rescue FacilityFletcher, North Carolina
   11:34 A.M. EST
     THE PRESIDENT: Well, thank you very much. It’s a little cold outside, but you’re getting used to the cold.
And one of the things that are very important to me and one of the reasons I’m happy that we won so convincingly is to help North Carolina get fixed up. They supported us in record numbers, and I’m supporting them in record numbers too.
And they had me set — I wanted to go to Los Angeles and see what was going on with California, why they aren’t releasing the water. Millions and millions of gallons of water, they’re sending it out to the Pacific. Someday, somebody’s going — going to explain that one. In the meantime, they have no water in Los Angeles, where they had the problems. But — so, we’re going there. But I said, “Well, what about North Carolina?” “Well, you could do that la-” — “no, I can’t.” I said, “We’re stopping in North Carolina first, and then we’re going to Los Angeles.” And we just appreciate the outpouring of love that we’ve had here.  Lara was, as you know, very instrumental in the campaign, and she lived here and is loved, and we appreciate it.  And Michael Whatley has been incredible — wherever Michael is — hello, Michael. Michael Whatley has been great.  And your congressmen have been great.  And what we thought we’d do is take a quick look around. First, we wanted to do this.  I — I want to say that we’re very disappointed in FEMA. Your new governor, it’s not his fault. He’s brand-new to the whole situation. But we’re going to work together with the governor. We’re going to work together with the — your senators, but, really, we’re going to work a lot with your congressman, especially the three that are in the area, and Michael Whatley. And I’d like to put Michael in charge of making sure everything goes well.  And Franklin Graham has been unbelievable. We’ve made a big contribution to Franklin, and we’ll continue to do so. But I — I’ve been hearing nothing but praise for the job that Samaritan’s Purse has done with Franklin, and we appreciate it.  Where is Franklin? He’s around here someplace. (Laughter.) And — that good-looking guy. He’s always been a good-looking guy.  His father was a good-looking guy, too, I’ll tell you. We loved his father, right? I saw his father in the latter years, and I said, “Well, he — he doesn’t have long to go.” He was having a hard time, and he lived about three, four years after that, right?  REVEREND GRAHAM: That’s right. THE PRESIDENT: He — he was — they call — they say he was “good stock.” He had the ultimate good stock.  But I want to thank you, Franklin. You were — you’ve been fantastic here. And everywhere he goes, he — he’s always — he’s always the first one I see.  Does — people don’t realize it, how — how good it is. A lot of people, they go, “Well, maybe it’s for the people that he’s got.” And you guys know, because you’re here, but the people that he’s got have done amazing work.  So, I just want to thank everybody. We’re going to get over and take a look. We’ll say a few words. I want to just — I do want to introduce some of the people that we have.  And our first lady — we’ll start with our first lady. She wanted to be here because of North Carolina. And then I said, “Well, you can do that, but you’re going to have to come to California too.” (Laughter.)  THE FIRST LADY: That’s okay. THE PRESIDENT: And she said, “That’s okay.” (Laughter.) And we got to fix that one up too. That’s — who — do you ever see anything like that one? It’s — who would have — who would have thought that could have happened.  So, Governor Josh Stein, thank you very much. We appreciate it. And we’re going to have a — a very long and good relationship.  Representatives — maybe stand up, if you would, so we — the press can see. Representatives Chuck Edwards — Chuck, thank you. Thank you, Chuck. Tim Moore. Virginia. You know Virginia Foxx, a legend — she is such a powerful woman. Pat Harrigan. Pat, thank you very much.  Your agriculture commissioner, who I hear is excellent, Steve Troxler — Steve, thank you very much. Good job, Steve. You’ve got plenty to do, right? MR. TROXLER: (Inaudible.) THE PRESIDENT: (Laughs.) More than you ever thought.  North Carolina Speaker Destin Hall. Thank you, Destin. Thanks, Destin. Very good.  House Majority Leader Brenden Jones. Brenden, thank you very much. We’re making progress, Brenden.  State Representatives Dudley Greene, Karl Gillespie, thank you very much, fellas. Good, good. Thank you very much.  State Senators Kevin Corbin, Warren Daniel, thank you. Thank you very much, Kevin, Warren.  And County Commissioner Jennifer Best, thank you. Jennifer, thank you. So, Hurricane Helene was one of the worst natural disasters in American history. It was far worse than it was even billed. I have never seen such water damage. It was largely water damage — wind damage, but water damage nobody has ever seen.  I’ve been here, as you know, numerous times, but now I’m here in a position where we can do something, meaning I’ve been in — in office for four days. And I wanted to come sooner, but actually, they had a little problem with getting, logistically, in here, but I would have been ev- — here even sooner. One oh four — a hundred and four North Carolinians have — at least — have lost their lives. Is that now a fairly firm number, or are they still finding people? You know? Is — what do you think? They’re still finding people? Pretty much, okay? It’s a lot of people.  A hundred and four people lost their lives. Seventy-three thousand homes were severely damaged or destroyed.  And I’ll tell you, I’ve been to a lot of them, and this was a — this was like lots of hurricanes in one. I’ve never seen such damage done by water. And the — the water came, it was violent, and it left, and there was, like, nothing left. It’s really pretty amazing.  At one point, half of the emergency calls to FEMA went unanswered. That’s real bad. FEMA was not doing their job. The city of Asheville went without running water for two months.  A whistleblower testified that some FEMA employees refused to help people who displayed Trump signs on their properties. I think that’s true, isn’t it? I read that. That’s not nice. That’s not too nice, is it? But whoever those property people were, thank you very much.  Michael, is that true? MR. WHATLEY: (Inaudible.) THE PRESIDENT: That’s not good — huh? — about the property owners. You put a Trump sign on it, they wouldn’t help — FEMA.  Earlier this year, FEMA kicked 2,000 North Carolinians out of their temporary housing into below-freezing temperatures. What was that all about? Is that — do you know about that? What happened? Tell me. STATE SPEAKER HALL: We had an incompetent administration under Biden. And we had a disaster, and then we call it “the disaster after the disaster” — that was the FEMA response. THE PRESIDENT: You had nothing but disaster since then. I — it doesn’t matter at this point. Biden did a bad job.  Some residents still don’t have hot water, drinking water, or anything else. And m- — many of them don’t have quarters. They don’t have anything. They got a stipend for what they lost, and we’re going to take care of it.  This is totally unacceptable, and I’ll be taking strong action to get North Carolina the support that you need to quickly recover and rebuild. We’re working on it very hard. And I think if Michael Whatley does half as good a job for North Carolina as he did for my campaign, we’ll be very happy. (Laughter.) Him and Lara were a very powerful team.  So, you think you can handle it, Michael? I don’t know. I’m not sure, Michael. (Laughter.) I think this is maybe, in many ways, easier. Okay? Maybe easier. But you’re going to lead the team.  Do you want to say who the — who the congressmen are that you want to appoint? Do you want to introduce them? MR. WHATLEY: So, we — we have Virginia Foxx and Chuck Edwards and Tim Moore — THE PRESIDENT: And — MR. WHATLEY: — whose districts encompass the area (inaudible) — THE PRESIDENT: And they are the districts that were most severely impacted, right? You were — you were affected, then, Virginia? REPRESENTATIVE FOXX: Yes, sir. Lost my own property. THE PRESIDENT: Really?  Well, I’ll also be signing an executive order to begin the process of fundamentally reforming and overhauling FEMA or maybe getting rid of FEMA. I think, frankly, FEMA is not good.  I think when you have a problem like this, I think you want to go and — whether it’s a Democrat or a Republican governor, you want to use your state to fix it and not waste time calling FEMA. And then FEMA gets here, and they don’t know the area, they’ve never been to the area, and they want to give you rules that you’ve never heard about, they want to bring people that aren’t as good as the people you already have.  And FEMA has turned out to be a — a disaster. And you could go back a long way. You could go back to Louisiana. You could go back to some of the things that took place in Texas. It — it turns out to be the state that ends up doing the work. It just complicates it.  I think we’re going to recommend that FEMA go away and we pay directly — we pay a percentage to the state. But the state should fix this. If the state did this from the beginning, it would have been a lot better situation.  I think you guys agree with that, right? So, I just want to tell that Ash- — say that Asheville — I know it well. It’s a great place, and we’re going to have it be a great place again. That was the one that was most severely affected. But North Carolina is going to come back bigger, better, stronger than ever before, and you’re going to be very thankful.  And you’ve already seen — I know that it really began four days ago, but you’ve already seen more action than you have in the last three months. And we’re going to get it together.  We’re informing the Army Corps of Engineers to get going, because you have a lot of river breaks and a lot of areas that you’re going to need some pretty big work. And they’re on their way. They’re going to be working very — much harder than they’ve been working in the past. And we’re going to take care of it.  Any questions from the press of any of the congressmen, governor, anybody? Q    Sir, are you going to sign an executive order on FEMA — getting rid of it? Can you explain more about signing the executive order to get rid of FEMA, please? THE PRESIDENT: FEMA has been a very big disappointment. They cost a tremendous amount of money. It’s very bureaucratic, and it’s very slow.  Other than that, we’re very happy with them. Okay? (Laughter.) And I think it’s — I think when there’s a — when there’s a problem with the state, I think that that problem should be taken care of by the state. That’s what we have states for; they take care of problems. And a governor can handle something very quickly. You know, one of the things I’ve noticed, because I’ve been doing this for a while, and we had a pretty good FEMA. But I also noticed that when they come, they end up in arguments of — they’re fighting all the time over who does what. It’s a — just a — it’s just not a good system. This system is so beautifully designed over 250 years, approximately, you know, and we’ll soon be celebrating the 250th year. It’s going to be a very big celebration. But it’s been designed very well, and we’re going to leave it that way. When North Carolina, South Carolina, Florida, Tennessee, when — everybody knows the governor of Tennessee, I think — everybody. Do you — do you know everybody here, pretty much? He’s o- — GOVERNOR LEE: I — I’ve introduced myself.   THE PRESIDENT: I never thought of it, but you’re right over the ridge, right? GOVERNOR LEE: Right over the hi- — right over the hillside. THE PRESIDENT: So — so, you’re here to help. That’s great. GOVERNOR LEE: These here, thi- — the people in this region, including Tennessee — the people of Appalachia are grateful that you are here and that you haven’t forgotten them.  THE PRESIDENT: Yeah. GOVERNOR LEE: And that there are other disasters, but this one was enormous for both North Carolina and Tennessee. So, thank you. THE PRESIDENT: You know, I’ve seen a lot of disasters, and this — when I came — I came here right after, the day after. And when I came here, I couldn’t believe it, actually. I couldn’t believe the damage. I — and I’ve seen a lot of them. This was — this was more like a tornado than it was — what we witnessed.  So, we’re going to get it very much — very much taken care of. Good job. That’s nice that you came. GOVERNOR LEE: Thank you, sir. THE PRESIDENT: And so, you call it right — you’re right over the ridge, right? Tennessee. GOVERNOR LEE: Right over the ridge, yes, sir. THE PRESIDENT: I like Tennessee, too. Let’s see. Where did I get more votes — Tennessee or North Carolina? I hate — (laughter) — I hate to tell you, North Carolina, it was Tennessee.  GOVERNOR LEE: There’s one of the counties in this disaster that had 88 percent for you. So (inaudible) — THE PRESIDENT: Eighty-eight percent, yeah? That’s — the people are just incredible people. GOVERNOR LEE: Yeah. THE PRESIDENT: So, do you have any questions, press? Q    Yes, Mr. President, you talked about conditions being placed on aid to California — voter ID and the like. Are there any conditions that you’re going to put on aid to North Carolina? THE PRESIDENT: Oh, we’re going to do a lot for North Carolina. You know, they’ve been very slow. I don’t know why it’s been so bad. This has been one of the worst I’ve seen.  Katrina, of course, you know, was somebo- — something that — obviously, that was a long time ago — that was not good. But this has been very slow. I don’t know if that was for political reasons because they lost the state. You know, Biden lost the state. Maybe he felt — he doesn’t care. Maybe there were other reasons. I don’t know. But this has been very slow. By any standard, this has been very slow. And we’re going to — we’re going to make up for lost time. Q    But no conditions you’re going to push for aid, just full stop? THE PRESIDENT: Well, in California, I have a condition. In California, we want them to have voter ID so the people have a voice, because right now, the people don’t have a voice because you don’t know who’s voting and it’s very corrupt.  And we also want them to release the water. If they release the water, they wouldn’t have had a problem. If they released the water when I told them to — because I told them to do it seven years ago — if they would have done it, you wouldn’t have had the problem that you had. You might have — you might not have even had a fire. So — but here, I don’t have that. It’s a different thing. You got hit by a storm. The people are incredible. They worked really well. Franklin was fantastic, and other groups — by the way, other groups came in that were also fantastic. And other states came in; Tennessee and a couple of others came in, and they really helped. That’s the way it’s supposed to be. No, this is a different kind of a thing. Q    Mr. President, have you decided how much funding you would allocate for disaster relief in North Carolina? THE PRESIDENT: About what? Q    Have you decided how much funding you would allocate for disaster relief? THE PRESIDENT: I haven’t de- — I have to see what it is. Q    Mr. President — Q    Are — are — are you disappointed that Senator Schiff hasn’t joined you on this trip? It’s reported that you invited Senator Schiff to join you on this trip, and he was too busy. Are you disappointed by that? THE PRESIDENT: I don’t know, I — I was told that Schiff was going to travel with us to California. I wasn’t thrilled, to be honest with you. (Laughter.)  And I saw him last night on television. It looks like he got hit with a baseball bat or something. What happened to him? Something happened to him. Q    Are you still — THE PRESIDENT: It was a little — it looked like he got hit. It looked like he got beat around, but — Q    So, did — did you invite him or — THE PRESIDENT: But I’ll ask Karoline to find out what happened to him.  No, if he wanted to come out, I would have done that. But I don’t know. I — somebody said that he wanted to come on the plane, but I think he’s staying back for the votes. There’s some pretty good votes going on. Yeah. Q    Mr. President, what is your timeline for getting rid of FEMA? THE PRESIDENT: I — I woul- — for the — for this one? For this one? Well — Q    For — you just talked about possibly getting rid of FEMA. What timeline are you looking at, and how would you do that? THE PRESIDENT: Well, we’re looking here — here, you’re talking about. To start — we’re going to start immediately — timeline.   And to finish, it’s going to be a period of time.  You know, people are also rebuilding their houses. How long does it take to build a house, right? It takes a time. And I want them to build houses bigger, better, nicer than they had before, so they can have — at least they get something out of this disaster. This was a real disaster. No, timeline will be fast. In terms of infrastructure, I think very fast.  I want to thank Elon, because Elon was able to get us communication systems, as you know — Starlink. We had no communication. The first day I got here, I was asked by one of the people, one of the really great representatives, professionals that — “Is there any way you could get Starlink here,” because they had no communication whatsoever. And I called up Elon Musk, and he had, you know, hundreds of units brought here — like, brought immediately. And it’s hard to get; they couldn’t get them before. And that made a lot of difference. I think it saved a lot of lives, actually. Yeah.  Infrastructure-wise, we’ll do it quickly. Q    Sir, can you just talk about how long you might — do you think it might take to get rid of FEMA? What’s the timeline on that if you’re going to roll it back? THE PRESIDENT: Yeah. I would say, look, as far as I’m concerned, I’m not really thinking about FEMA right now here. I’m thinking about Michael Whatley, and I’m thinking about the three congresspeople that you just heard from and also the other people in Congress. And they’ll be working with the governor. They’ll be working with the governor. So, that’s what I see. Q    Change of subject real quickly. The Laken Riley Act was signed by Mike — Speaker Johnson yesterday. When do you — THE PRESIDENT: Yeah. Q    — when do you anticipate to put — to sign that in the Oval Office?
THE PRESIDENT: Well, we’re honored by that. Laken Riley — I was there at the time, and we had a big meeting with the parents right after that horrible thing took place.  And we have a — an act. You all know what that act represents. And it was a bipartisan bill. Many Democrats signed — signed on to it. That’s something that is a tribute to Laken, a beautiful young lady who was killed viciously by an illegal alien. And we passed a very powerful bill, and it was just approved. And we’ll have a ceremony sometime very shortly. I’ll be signing it. In other words, if you’re asking, I will definitely be signing it. Okay? Yeah. Q    Mr. President, the security detail for Anthony Fauci was terminated last night, and I’m wondering if you have any comment on that? THE PRESIDENT: About what? Q    The security detail for Anthony Fauci was terminated last night, sir. Do you have a comment? THE PRESIDENT: No, I think, you know, when you work for govern- — government, at some point, your security detail comes off. And, you know, you can’t have them forever. So, I think it’s very standard. If it would be for somebody else, you wouldn’t be asking the question.  The question is very fair, but, you know, you work for government — we took some off other people too — but you can’t have a security detail for the rest of your life because you worked for government. Q    Did you ask for it to be taken off, sir? THE PRESIDENT: Well, we’ll see what happens. Q    Would you feel partially responsible if something were to happen to, say, Dr. Fauci — THE PRESIDENT: No. Q    — or John Bolton? THE PRESIDENT: No.  You know, they all made a lot of money. They can hire their own security too. All the people you’re talking about, they can go out — I can give them some good numbers of very good security people. They can hire their own security. They all made a lot of money. Fauci made a lot of money. They all did.  So, if they, you know, felt that strongly, I — I think that — certainly, I would not take responsibility. Q    North Carolina is a state that relies on trade and manufacturing. Are you going to have an announcement on new tariffs coming soon? Is there a timeline now? THE PRESIDENT: Yeah, the tariffs are going to make our country rich. We’re going to be a rich, rich country very soon. Tariffs are going to make it rich. And competence — we have common sense, competence, and tariffs.  The word “tariff” is one of the most beautiful words in the dictionary.  Q    Jonathan Reynolds, the — the business secretary of the United Kingdom, said that there’s an even trade between the U.S. and — and the UK, so they shouldn’t have tariffs. Does trade imbalances or a balanced trade affect tariffs and your decisions? THE PRESIDENT: Yeah, ba- — unbalance and balance, and also deficits, like with Canada. We lose $200 billion a year with Canada. That’s because we allow them to make cars. We allow them to take lumber. We don’t need their cars. We don’t need their lumber. We don’t need their food products because we make the same products right on the other side of the border. It’s sort of crazy. So, we’ve just allowed that — you know, bad management has allowed it, over the last four years, in particular, to become very imbalanced.  And I said to — I call him “Governor Trudeau,” but he’s Prime Minister Trudeau — when he was prime minister, I asked him, “Why would we do that? Why?” And he was unable to give me an answer. He said, “I don’t know.” And I said, “Do you think it’s fair that we’re paying $200 billion to keep Canada going?” “And what would happen” — I said — I asked him, “What would happen if we didn’t do that, if we didn’t subsidize Canada?” He said, “We’d be a failed nation.” And I said, “Then you should be a state,” because why are we paying all of that money to Canada when, you know, we — we could use it ourselves, right? So, we take care of their military. You know, we ordered — we’re going to order about 40 Coast Guard big icebreakers. Big ones. And all of a sudden, Canada wants a piece of the deal. I say, “Why are we doing that?” I mean, I like doing that if they’re a state, but I don’t like doing that if they’re a nation. Also, they’ve been very nasty to us on trade. Historically, Canada has been very, very bad to us, very unfair to us on trade. So, we’ll see how it all works out. Q    So, the United Kingdom — THE PRESIDENT: I would — Q    — might be in a better spot? THE PRESIDENT: I would love to see Canada be the 51st state. The Canadian citizens, if that happened, would get a very big tax cut — tremendous tax cut — because they’re very high- — highly taxed. And you wouldn’t have to worry about military. You wouldn’t have to worry about many of the things. You’d have better health coverage. You’d have much better health coverage.  So, I think the people of Canada would like it, you know, if it’s explained.   But I — just to start off, they’d have a very — they’d have a massive tax cut, and they’d have a lot more business, because then we’d let business go to Canada routinely. And there’d be no tariffs. You know, if we did that, there’d be no tariffs. Q    So, the United Kingdom might be in a better spot, then? Q    Can you talk about Samaritan’s Purse? Reverend Franklin Graham has been a great asset to this state. Talk a little bit about the way the Samaritan Purse has helped North Carolinians. THE PRESIDENT: Yeah, say it once again. The first — Q    Reverend Franklin Graham has been a big part of Samaritan Purse and their aid to North Carolina. I just want to get your thoughts on that.
THE PRESIDENT: Yeah. Well, Franklin Graham has been a big asset to the state. His father was a big asset to the state, to the country — both of them. I just think this: I think Franklin and — and other people that are doing what Franklin have done — but I — you know, I’ve known Franklin so long. He was at the inauguration. He made a speech, beautiful speech; beautiful prayer. He just — he does a great job.  And we gave — we made a big donation, and it was — it was money well spent. Sometimes you make donations, it’s not well spent. He’s done a great job here. He’s done a really great job. So, I want to thank you. We’re going to the site now, and — one of the sites — and we’ll — I think you’ll — for those that haven’t seen it, you won’t even believe it, but not enough work was done. We’ll get it done fast.  And I can speak for the Republican congressmen, we’re going to knock it out, right? We’re going to knock it out. And I think we take it very personally, because it was — North Carolina was very unfairly treated — very, very unfairly treated. And it was obvious. It was too obvious. And we’re going to make up for lost time.  So, thank you to the people of North Carolina.
Thank you, everybody.
END                11:57 A.M. EST

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: President Trump Announces Appointments to the White House Offices of Communications, Public Liaison, and Cabinet Affairs

US Senate News:

Source: The White House
President Trump announced key appointments to the White House Office of Communications, Public Liaison, and Cabinet Affairs, which will be overseen by Deputy Chief of Staff for Communications and Public Liaison, and Cabinet Secretary Taylor Budowich.
COMMUNICATIONS
President Trump previously announced the appointments of Assistant to the President and White House Communications Director Steven Cheung and Assistant to the President and Press Secretary Karoline Leavitt. Today’s announcements include: Alex Pfeiffer will join the White House as a Deputy Assistant to the President and Principal Deputy Communications Director after previously serving as a Communications Adviser for the Trump-Vance 2024 Campaign and Communications Director for MAGA Inc. Pfeiffer previously served as an Investigative and Editorial Producer for Fox News’ Tucker Carlson Tonight. Kaelan Dorr will return to the White House as a Deputy Assistant to the President and Deputy Communications Director after serving as Senior Strategist and Spokesperson for MAGA Inc. Dorr previously served as Senior Advisor for Public Affairs at the Department of Treasury, Congressional Communications Director and Strategic Communications Advisor in the Executive Office of the President in the Trump Administration, Global Head of Marketing and Engagement for GETTR, Vice President of Communications for America First Policy Institute, and Chief Marketing Officer for Donald J. Trump for President. Harrison Fields will return to the White House as Special Assistant to the President and Principal Deputy Press Secretary, having previously served as Assistant Press Secretary in the Trump Administration. Fields has also served as Senior Advisor to Congressman Byron Donalds and Assistant Director of Media and Public Relations at The Heritage Foundation. Anna Kelly will join the White House as a Deputy Press Secretary after serving as National Press Secretary for the Republican National Committee. Previously, Kelly was Communications Director for Congressman Derrick Van Orden, Michels for Governor, and the Republican Party of Wisconsin. Kush Desai will serve as a Deputy Press Secretary after serving as Deputy Battleground States & Pennsylvania Communications Director at the Republican National Committee. Desai also served as Deputy Communications Director for the 2024 Republican National Convention and Communications Director for the Republican Party of Iowa. Ian Kelley will join the White House as Special Assistant to the President and War Room Director after serving as War Room Director for the Trump-Vance 2024 Campaign. Previously, Ian worked as Rapid Response Manager for the social media platform GETTR. Dylan Johnson will join the White House as Special Assistant to the President and Assistant Communications Director for Special Projects after serving as a Deputy Director of Communications for the Trump-Vance 2024 Campaign. Johnson previously served as the Campaign Manager for the Greitens for U.S. Senate campaign and was an Executive Producer for Just The News. Sonny Joy Nelson will join the White House as Special Assistant to the President and Media Affairs Director, after serving as Director of Media Affairs and Surrogates for the Trump-Vance 2024 Campaign. Previously, Nelson served as Director of Media Affairs for the social media platform GETTR, Booking Producer for Real America’s Voice, Director of Media Affairs for the Republican National Committee, and Associate Director of Strategic Communications for Donald J. Trump for President, Inc. Dan Boyle will join the White House as the White House Director of Research after serving as a Research Consultant on the Trump-Vance 2024 Campaign, and previously as Director of Research for MAGA Inc. Boyle previously served as the Research Director for Citizens United and as a Research Analyst for the Government Accountability Institute. Johanna Persing will join the White House as Cabinet Communications Director after playing an integral role in the Trump-Vance 2024 campaign’s surrogate operation, including leading the media booking operation at the 2024 Republican Convention in Milwaukee. Persing previously served as the Deputy Communications Director for the Republican National Committee and as Communications Director for Congressman Ryan Costello. Charyssa Parent will join the White House as Congressional Communications Director after serving as the Communications Director for Senator Roger Marshall. Parent previously served as the Deputy Director of Communications for the House Republican Conference and as the Director of Broadcast Media for the Republican National Committee. Jacki Kotkiewicz will join the White House as Policy Communications Director after working as a Vice President at Argus Insight. Kotkiewicz previously served as the Director of Policy Research at the Republican National Committee and was a Research Analyst on the Trump 2020 campaign. Jake Schneider will join the White House as Rapid Response Director after serving as Rapid Response Director for the Trump-Vance Campaign. Schneider previously served as the Deputy Director of Rapid Response for the 2020 Trump campaign and as Communications Director and Press Secretary for Congresswoman Michelle Fischbach.
OFFICE OF PUBLIC LIAISON Jim Goyer will return to the White House as Deputy Assistant to the President and Director of the Office of Public Liaison. Goyer served President Donald J. Trump in his first Administration as Special Assistant to the President and Deputy Director of the Office of Public Liaison. Goyer previously served as Political Coordinator at the National Republican Senatorial Committee. Goyer is joining from Goldman Sachs, where he served as an Associate of Asset and Wealth Management.
Lynne Patton will serve as Deputy Assistant to the President and Director of Minority Outreach, where she will be charged with ensuring that President Trump continues to build upon his historic Election Day support from Blacks, Latinos and Women. Patton served as Senior Advisor on the Trump Campaign and has been one of the Trump family’s longest serving and most trusted aides. Prior to joining the Trump campaign, Patton was the Regional Administrator for Federal Region II at the U.S. Department of Housing and Urban Development and Senior Advisor to Secretary Ben Carson. At HUD, Lynne worked tirelessly to bring accountability, reform and results to some of the most challenging housing issues facing our country. From championing the rights of underserved communities to exposing corruption and mismanagement within public housing systems, Lynne consistently fought for fairness and opportunity, earning her the bipartisan respect of industry peers and local elected officials alike. Lynne’s deep connection to the issues affecting minority communities combined with her remarkable interpersonal skills, makes her the ideal person to lead this critical outreach effort. She holds a B.S. from the University of Miami and attended Quinnipiac University, School of Law. Brette Powell will return to the White House as Special Assistant to the President and Deputy Director of the Office of Public Liaison, having previously served for three years in the White House Management Office and the Advance Office in the Trump Administration. Powell previously served the President for four years through his Save America PAC and the Trump-Vance 2024 campaign as the Director of Strategic Political Stakeholder Engagement. Hailey Borden will return to the White House as Special Assistant to the President and Director of Business Outreach in the Office of Public Liaison, having previously served as Associate Director of the Office of Public Liaison in the Trump Administration. Borden previously was Director of Coalitions and Member Services on the House Committee on Small Business and is currently the Director of Business Coalitions for House Majority Whip Tom Emmer. Alex Flemister will return to the White House as Director of Strategic Initiatives in the Office of Public Liaison, having previously served as Associate Director in the Office of Public Liaison in the Trump Administration. Flemister previously worked for Governor Sarah Huckabee Sanders on her campaign as Advisor and Director of Operations and worked in her official governor’s office as the Director of Office Appointments. Flemister is currently the Founder and President of The Flemister Group. CABINET AFFAIRS Lea Bardon will join the White House as a Special Assistant to the President and Director of Cabinet Affairs. Bardon previously served as Director of Development Operations at the America First Policy Institute. Bardon also served on President Trump’s reelection campaign in 2020 and as Executive Roundtable Manager at the Republican Attorneys General Association. Thomas Bradbury will join the White House as Associate Director for Policy. Bradbury is currently the Director of Advocacy and Policy at American Conservative Union (CPAC). Cami Connor will return to the White House as Associate Director for Agency Outreach, having previously served as Associate Director of Agency Outreach in the first Trump Administration. Connor currently serves on the Government Operations team at The Boeing Company.

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: Red Deer — Red Deer RCMP Crime Reduction Team conducts Targeted Response to Auto Theft operation
Source: Royal Canadian Mounted Police

In the month of August, Red Deer RCMP Crime Reduction Team (CRT) completed a Targeted Response to Auto Theft (TRAP) operation.

Red Deer RCMP CRT led this TRAP operation, which was focused on recovering stolen vehicles and apprehending those responsible for the thefts. The initiative was successful with the assistance of Red Deer RCMP General Investigation Section, General Duty members, Traffic Services, Police Dog Services, Emergency Response Team, Integrated Gang Enforcement Team and RCMP Air Services.

As a result of the operation:
- 2 stolen vehicles were recovered
- 4 vehicles seized/towed
- 18 new Criminal Code charges laid
- 6 new CDSA possession for the purpose of trafficking charges laid
- 3 new CDSA possession charges laid
- 4 TSA charges
- 1 Tobacco Tax Act charge
- 2 arrested for outstanding warrants
- Seizure of methamphetamine, fentanyl, cocaine and illegally obtained prescription pills
- 1 knife seized
- 1 extendable baton seized
- 2 bear spray seized
- 1 shotgun seized
- Ammunition seized
- Canadian currency seized
Red Deer RCMP CRT is committed to the safety of Red Deer. By using an intelligence-led strategy, CRT is able to focus on identifying repeat offenders and conduct targeted enforcement initiatives such as TRAP, in an effort to reduce crime within Red Deer.

Red Deer RCMP remind the public that crime prevention is a shared responsibility. Members of the community are reminded of their role in preventing criminal activity:
- Lock up houses, sheds, vehicles and any other property that is easily accessible.
- Never leave running vehicles unlocked. Nearly half of the vehicle thefts in Alberta over the past year have had the keys left inside.
- Take photos and record serial numbers of property.
If you have any information regarding criminal activity in Red Deer, please contact Red Deer RCMP at 403-406-2200, call 911, or contact your local Police Service. If you wish to remain anonymous, you can contact Crime Stoppers at 1-800-222-8477 (TIPS), online at www.P3Tips.com or by using the “P3 Tips” app available through the Apple App or Google Play Store.

MIL Security OSI –
January 25, 2025

MIL-OSI Economics: Fiscal Affairs Department’s 60th Anniversary Conference: “60 Years of FAD: The Fiscal Affair Continues”

Source: International Monetary Fund

The Fiscal Affairs Department (FAD) of the IMF will celebrate 60 years since it was formed in 1964 with a one-day conference, “60 Years of FAD: The Fiscal Affair Continues,“ on November 4, 2024, in Washington D.C., USA.

Even as prospects for a global soft landing have improved, fiscal policy continues to struggle with legacies of high debt and deficits, while facing new challenges. Risks to public finances are acute, reflecting the pressures of aging societies, industrial policies, geopolitical tensions, the needs of a greener and more equitable society and now, the threat to labor from AI technologies. Lower medium-term growth prospects have worsened debt dynamics and compounded the risks to fiscal sustainability. Fiscal policy challenges are especially acute in low-income countries, where financing is scarce and limits the ability of governments to support economic and human development.

In this context, the conference will bring together fiscal policy experts, senior policy makers, and former and current IMF staff. They will look back at the contributions of FAD to the global fiscal policy discourse and its service to the membership. They will discuss the likely evolution of sovereign debt market and the role that public policy can play in making AI beneficial for workers and growth. And they will look ahead to the challenges that will emerge for fiscal policy in the future, and the choices fiscal policymakers will face, especially in low-income and fragile countries. The conference will also be an occasion to celebrate the evolution and impact of FAD’s capacity development (CD) from serving a small section of the membership to covering nearly every corner of the world.

Agenda

8:30 A.M.	Coffee and refreshments
9:00 A.M.	Opening remarks. Gita Gopinath, First Deputy Managing Director of the IMF, introduced by Vítor Gaspar, Director, Fiscal Affairs Department, IMF.
9:15 – 10:30 A.M.	Sovereign Debt Moderator: Ceyla Pazarbasioglu, Director, Strategy, Policy and Review Department, IMF Panelists: S. Ali Abbas (Deputy Director, Fiscal Affairs Department, IMF) S. Ali Abbas is a deputy director in the IMF’s Fiscal Affairs Department where he supervises the sovereign debt and governance workstreams, and oversees the department’s review of Fund programs in emerging and developing economies, with a focus on Sub-Saharan Africa. He was previously IMF mission chief for the United Kingdom and Jordan, and deputy chief of the Debt Policy Division in the IMF’s Strategy Policy and Review Department. He has been closely involved in several complex Fund programs, and has led reforms to the IMF’s exceptional access lending and debt sustainability frameworks. In 2019, he co-edited Sovereign Debt: A Guide for Economists and Practitioners (OUP), with Alex Pienkowski and Kenneth Rogoff, adding to his earlier published work on post-GFC fiscal policy, the euro area sovereign debt crisis, international tax competition, state contingent debt instruments, fiscal policy and the current account, and government securities markets. Ali is a Rhodes scholar from Pakistan and holds a doctorate in economics from Oxford. He also served as an Overseas Development Institute fellow to the Tanzanian Treasury during 2000–02. Carlo Cottarelli (Former Director Fiscal Affairs Department, IMF) Carlo Cottarelli, a citizen of Italy, after receiving degrees in economics from the University of Siena and the London School of Economics, worked at the Bank of Italy, ENI and the IMF. He was FAD Director in 2008-13, Commissioner for Public Spending in Italy in 2013-14, IMF Executive Director in 2014-17. He taught at Bocconi University and he is currently Director of the Observatory on the Italian Public Accounts of the Catholic University of Milan, where he also teaches a course of Fiscal Macroeconomics In 2021 he was awarded the honor of First Class Knight Grand Cross of the Order of Merit of the Italian Republic. Christoph Trebesch (Professor, Kiel University) Christoph Trebesch is a professor at the Kiel Institute for the World Economy and the University of Kiel. His research focuses on international finance and macroeconomics as well as political economy and geopolitics. His research has been published in leading economic journals such as the American Economic Review, the Quarterly Journal of Economics, and the Journal of Political Economy, and is regularly cited in international media, including the New York Times, the Financial Times, and the Wall Street Journal. He directs the CEPR Policy Network on “International Lending and Sovereign Debt” and co-directs the CEPR Network on “Geoeconomics”, for which he organizes an annual high-level conference on geopolitics and economics. He is also the creator of the widely referenced “Ukraine Support Tracker” on military and financial aid flows to Ukraine. In 2023, he was awarded an ERC Consolidator Grant, one of the most prestigious research recognitions in Europe.





10:30 – 11:00 AM	The Surge in FAD’s Capacity Development Delivery (A/V) Moderators: Katherine Baer (Deputy Director, Fiscal Affairs Department, IMF) Katherine Baer is a Deputy Director in the IMF’s Fiscal Affairs Department (FAD). She oversees FAD’s work in the areas of taxation and public financial management, supervises Capacity Development (CD) delivery in all fiscal areas to countries in the Middle East, North Africa and Centra Asia, oversees FAD’s strategy to strengthen fiscal policies and institutions in the Fragile and Conflict-Affected States, and manages the department’s work on fiscal issues from a gender perspective. Her career at the IMF has focused on strengthening fiscal policies and institutions in member countries across all regions and income levels, and in countries experiencing economic crises. She has been an economist in the U.S. Treasury and an assistant commissioner in the Mexican Tax Administration. She also worked at the World Bank on public finance reforms in Latin America and the Caribbean at the height of the region’s debt crisis in the 1980s. Ms. Baer has many publications relating to public finance and holds a Ph.D. from Cornell University. Juan Toro (Deputy Director, Fiscal Affairs Department, IMF) Juan Toro is Deputy Director of the IMF’s Fiscal Affairs Department (FAD), in charge of: managing FAD budget, relationship with development partners, overseeing governance and operations of FAD’s capacity development (CD), coordinating FAD’s CD to Europe, and coordinating FAD TA on sustainable development goals. He previously was Assistant Director in charge of the IMF’s revenue administration CD to Europe, Asia, Middle East, and Central Asia. He has led and participated in IMF TA missions in taxation in more than 40 countries and has authored and contributed to several analytical papers in taxation. Before joining the IMF in 2007, he was the Commissioner of the Chilean Tax Administration (Servicio de Impuestos Internos, SII) from 2002 to 2006.



11.00 – 11:30 A.M.	Coffee break
11:30 A.M. – 12:45 P.M.	FAD in the Global Discourse Moderator: Ruud De Mooij , Deputy Director, Fiscal Affairs Department, IMF Panelists: Zainab Ahmed (Alternate Executive Director, World Bank) Alternate Executive Director from Nigeria from July 2023 to October 2024. A Nigerian national representing – Angola, Nigeria, and South Africa (EDS25). Prior to joining the WBG, Ms. Ahmed has served a:- Minister of Finance, Budget and National Planning (2018- 2023); Minister of State, Ministry of Budget and National Planning (2015 – 2018); Chair of the board of Trustees of the African Union Peace Fund (2019 – 2023). Member of the International Board, Extractive Industries Transparency Initiative (EITI) (2016 – 2019); Executive Secretary and National Coordinator, Nigeria Extractive Industries Transparency Initiative (NEITI) (2010 – 2015); and Managing Director, Kaduna Investment Company Ltd (2009 – 2010). Abdulelah Alrasheedy (Deputy Minister of Macro-Fiscal Policies, Ministry of Finance, Saudi Arabia) Dr. Abdulelah AlRasheedy is the Deputy Minister for Macro-Fiscal Policies at Ministry of Finance (MOF). Before being named Deputy Minister in March 2024, Dr. AlRasheedy was Assistant Deputy Minister for Macroeconomic Policies Analysis and Acting as General Supervisor of Policy and Consultation Assistant Deputyship. Prior to joining Ministry of Finance, Dr. Abdulelah spent 12 years with Saudi Central Bank (SAMA) most recently as Manager of Economic Modeling Division and was SAMA Representative at The International Financial Architecture Working Group. Dr. Abdulelah earned a Ph.D.  in economics and statistics from University of Missouri, where he was a Research Scholar at the Global Institute for Sustainable Prosperity. In addition to being a Deputy Minister, he is a board member of King Abdullah City for Atomic and Renewable Energy. Also a Ministry of Finance Representative for Financial Sustainability Board.  Adam Posen (President, Peterson Institute of International Economics) Mark Sobel (U.S. Chairman, OMFIF) Mark Sobel is currently US Chair at OMFIF.  He served  nearly four decades at the US Treasury, including as Deputy Assistant Secretary for International and Monetary Affairs from 2000-2015, a position in which he led the Department’s work in preparing G7 and G20 Finance Minister and Central Bank Governor meetings, formulating US positions in the IMF, and coordinating the work of Treasury and regulatory agencies in the Financial Stability Board.  He was also chief US financial negotiator in the G20 from 2008-2015, including for the 2009 London Economic Summit.  From 2015 through early 2018, he was US representative at the IMF.






12:45 – 1:00 P.M.	FAD Montage (A/V) A look back at FAD through the decades.
12:45 – 1:00 P.M.
1:00 – 2:15 P.M.	Lunch (by invitation)
2:15 – 3:30 P.M.	Public Policy for AI Moderator: Era Dabla-Norris, Deputy Director, Fiscal Affairs Department, IMF Panelists: Simon Johnson (Professor, MIT Sloan School of Management & 2024 Nobel Prize Winner in Economics ) Simon Johnson is the Ronald A. Kurtz (1954) Professor of Entrepreneurship the MIT Sloan School of Management, where he is head of the Global Economics and Management group. At MIT, he is also co-director of the Shaping the Future of Work Initiative and a Research Affiliate at Blueprint Labs. In 2007-08, Johnson was chief economist and director of the Research Department at the International Monetary Fund. He currently co-chairs the CFA Institute Systemic Risk Council with Erkki Liikanen. In February 2021, Johnson joined the board of directors of Fannie Mae, where he is vice chair of the audit committee and a member of the risk and capital committee. Johnson’s most recent book, with Daron Acemoglu, Power and Progress: Our 1000-Year Struggle Over Technology and Prosperity, explores the history and economics of major technological transformations up to and including the latest developments in Artificial Intelligence. 2024 Nobel prize laureate in economic sciences “for studies of how institutions are formed and affect prosperity” Branko Milanovic (Professor, City University of New York) Research professor at the Graduate Center, City University of New York and senior scholar at The Stone Center on Socio-economic Inequality; Visiting Professor at the Institute for International Inequalities at LSE; was lead economist in World Bank Research Department for almost 20 years and senior associate at the Carnegie Endowment for International Peace in Washington. Milanovic’s main area of work is income inequality, in individual countries and globally, as well as historically among pre-industrial societies. His most recent books are Global inequality: a new approach for the age of globalization which deals with economic and political issues of globalization, and Capitalism, Alone that contrasts inequality and class formation in societies of liberal and political capitalism. In October 2023, he published Visions of Inequality that looks at how income distribution was studied by the most famous economists over the past 200 years. Milanovic was awarded (jointly with Mariana Mazzucato) the 2018 Leontieff Prize. Christine Qiang (Global Director, Digital Transformation Global Department, World Bank)





3.30 – 4:00 P.M.	Coffee break
4:00 – 5:15 P.M.	The Future of Fiscal Policy Moderator: Vítor Gaspar Director, Fiscal Affairs Department, IMF Panelists: Jason Furman (Professor, Kennedy School of Government, Harvard University) Jason Furman is the Aetna Professor of the Practice of Economic Policy jointly at Harvard Kennedy School (HKS) and the Department of Economics at Harvard University. Furman engages in public policy through research, writing and teaching in a wide range of areas including U.S. and international macroeconomics, fiscal policy, labor markets and competition policy. Previously Furman served eight years as a top economic adviser to President Obama, including serving as the 28th Chairman of the Council of Economic Advisers from August 2013 to January 2017, acting as both President Obama’s chief economist and a member of the cabinet. In addition to articles in scholarly journals and periodicals, Furman is a regular contributor to the Wall Street Journal and Project Syndicate and the editor of two books on economic policy. Furman holds a Ph.D. in economics from Harvard University. Ilan Goldfajn (President, Inter-American Development Bank) He was elected president of the IDB in November 2022, after serving as director of the Western Hemisphere Department at the International Monetary Fund. Previously, he was governor of the Banco Central do Brasil (2016-2019), where he led several modernization reforms, including promoting financial inclusion through Brazil’s fast digital payment system. He has also held several academic positions and high-ranking roles in Brazil’s financial sector.  In 2017, he was elected Central Banker of the Year by The Banker magazine.  Mr. Goldfajn holds a doctorate in economics from MIT, and master’s degree in economics from the Pontificia Universidade and has taught economics at universities in Brazil and the U.S. He is fluent in four languages. Mick Keen (Professor, Tokyo University) Michael Keen was formerly Deputy Director of the Fiscal Affairs Department at the International Monetary Fund. He is now Ushioda Fellow at the University of Tokyo. Michael was President of the International Institute of Public Finance from 2003 to 2006, awarded the CESifo Musgrave Prize in 2010, and in 2018 received from the National Tax Association of the United States its most prestigious award, the Daniel M. Holland Medal for distinguished lifetime contributions to the study and practice of public finance. His most recent book, Rebellion, Rascals and Revenues (with Joel Slemrod), aims to use history and humor to convey basic tax principles to a wider audience.





5:15 P.M.	Closing remarks Vítor Gaspar (Director, Fiscal Affairs Department )
6:00 P.M.	Adjourn

Conference Organizing Committee: Katherine Baer (Deputy Director, FAD), Mitali Das (Advisor, FAD), and Andrew Okello (Deputy Division Chief, FAD).

Conference Coordinators: Agnese de Leo (Administrative Coordinator), Harsha Padaruth (Administrative Coordinator), Luciana Marcelino (Administrative Coordinator) Martha Gaytan Frettlohr (Administrative Coordinator), Sahara De la Torre (Administrative Coordinator), and Sheetal Prasad (Senior Administrative Coordinator) – all FAD.

The conference (which is in-person only) is open to all Fund employees and invited external guests (registration is required of external guests who will all receive a link to the registration form). Please note that the deadline for registration for this conference is October 25th, 2024. Registered external guests will be required to present photo identification on entering the IMF at 1900 Pennsylvania Avenue, N.W., Washington D.C. For questions regarding the conference, please email FAD_60th_anniversary@imf.org

MIL OSI Economics –

January 25, 2025

MIL-OSI: LECTRA: First nine months of 2024: revenues and EBITDA continued to grow, despite the degraded environment

Source: GlobeNewswire (MIL-OSI)

First nine months of 2024: revenues and EBITDA continued to grow, despite the degraded environment

Revenues: 394.2 million euros (+10%)*
EBITDA before non-recurring items: 68.5 million euros (+16%)*

*At actual exchange rates


In millions of euros	July 1 – September 30		January 1 – September 30
	2024⁽¹⁾	2023	2024⁽¹⁾	2023
Revenues	131.9	118.7	394.2	358.3
Change at actual exchange rates (in %)	11%		10%
EBITDA before non-recurring items⁽²⁾	26.2	23.9	68.5	59.2
Change at actual exchange rates (in %)	10%		16%
EBITDA margin before non-recurring items (in % of revenues)	19.9%	20.1%	17.4%	16.5%
Income from operations before non-recurring items ⁽²⁾	15.7	16.4	37.3	36.7
Change at actual exchange rates (in %)	-5%		2%
Net income⁽³⁾	10.1	11.0	21.2	24.9
Free cash flow before non-recurring items ⁽²⁾	21.6	15.5	49.9	32.1

(1)  The 2024 amounts include Launchmetrics since January 23, 2024
(2)  The definition for performance indicators appears in the September 30, 2024 Financial Report
(3)  In 2023, net income included the impact of non-recurring income of 2.6 million euros

Paris, October 30, 2024. Today, Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the third quarter and the first nine months of 2024, which have not been reviewed by the Statutory Auditors. To facilitate the analysis of the Group’s results in its new scope, the accounts of Lectra excluding Launchmetrics (the “Lectra 2023 scope”) and those of Launchmetrics are analyzed separately.

The detailed 2024 vs 2023 comparisons are based on actual exchange rates, except for the Lectra 2023 scope stated on a like-for-like basis.

Q3 2024

The macroeconomic and geopolitical environment experienced further degradation in the third quarter but with heterogeneous situations across different geographical markets and market sectors.

This situation resulted in a cautious position on the part of the Group’s customers in their investment decisions, resulting in a negative effect, particularly on orders for new systems.

However, driven by both the integration of Launchmetrics and the improvement in the Group’s fundamentals –growth in recurring revenues, higher gross profit, growth in EBITDA before non-recurring items and near-coverage of all fixed costs through recurring activity– Q3 2024 revenues (131.9 million euros) and EBITDA before non-recurring items (26.2 million euros) increased significantly (by 11% and 10%, respectively). The EBITDA margin before non-recurring items stood at 19.9%.

Lectra 2023 scope

Orders for perpetual software licenses, equipment and accompanying software, and non-recurring services (32.2 million euros) were stable compared to Q3 2023.

The annual value of new subscriptions for software came to 2.6 million euros, up 17% compared to Q3 2023.

Q3 2024 revenues came to 120.8 million euros, up 3% compared Q3 2023. EBITDA before non-recurring items was 23.5 million euros and EBITDA margin before non-recurring items stood at 19.5% (-0.5 percentage point).

FIRST NINE MONTHS OF 2024

Revenues for the first nine months of 2024 were 394.2 million euros, up 10%, with the following breakdown: 111.3 million euros in revenus from new systems (28% of total revenues, down 5%) and 282.9 million euros in recurring revenues (72% of total revenues, up 18%), including 56.4 million euros in SaaS revenue (14% of total revenues, multiplied by 2.6)

Gross profit came to 281.6 million euros, up 13% compared to the first nine months of 2023, and the gross profit margin came to 71.4%, up 1.7 percentage points.

EBITDA before non-recurring items totalled 68.5 million euros, up 16%, and the EBITDA margin before non-recurring items rose to 17.4%, up 0.9 percentage point.

Consolidated income from operations before non-recurring items amounted to 37.3 million euros, up 2%. This included a 16.8 million euros charge for amortization of intangible assets arising from acquisitions made since 2021, including 7.4 million euros for Launchmetrics.

Considering this amortization, the increase in financial expenses and an income tax charge of 10.0 million euros, net income totalled 21.2 million euros. Net income for the first nine months of 2023 (24.9 million euros) included the impact of a non-recurring income of 2.6 million euros in Q3 2023.

Free cash flow before non-recurring items came to 49.9 million euros, up sharply from 32.1 million euros in the first nine months of 2023.

As of September 30, 2024, the Group has a particularly robust balance sheet, with consolidated shareholders’ equity of 332.7 million euros, a negative working capital requirement of 8.7 million euros and net financial debt of 41.0 million euros after payment of the first tranche of the acquisition of Launchmetrics, i.e., 77.0 million euros.

Lectra 2023 scope

In the first nine months of 2024, orders for perpetual software licenses, equipment and accompanying software, and non-recurring services (106.3 million euros) were stable compared to the same period in 2023. The annual value of new software subscription orders came to 8.0 million euros, up 4% compared to the first nine months of 2023.

Revenues amounted to 364.0 million euros, up 2% compared to the first nine months of 2023.

EBITDA before non-recurring items was 63.2 million euros, up 8%, and the EBITDA margin before non-recurring items came to 17.4%, up 1.0 percentage point compared to 2023.

BUSINESS TRENDS AND OUTLOOK

In its financial report on the fourth quarter and full year 2023, published on February 14, 2024, Lectra reiterated its long-term vision, as well as the objectives of its 2023-2025 strategic roadmap and its ambitions for 2025: revenues of 600 million euros, of which 400 million euros in recurring revenues, including 90 million euros in SaaS revenues, and an EBITDA margin before non-recurring items exceeding 20%.

The Group also stated that while the substantial improvement in the fundamentals of the Group’s business model in 2023 would have a positive impact on 2024 results, persistent macroeconomic and geopolitical uncertainties could continue to weigh on investment decisions by its customers.

On February 14, the Group reported its objectives for 2024, before including the Launchmetrics acquisition (i.e., for the Lectra 2023 scope): to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The Group also reported that Launchmetrics revenues (for the consolidation period from January 23 to December 31, 2024) were projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15%.

These scenarios were prepared based on the closing exchange rates on December 29, 2023, and particularly $1.10/€1.

Given the results for the first nine months of 2024, full year revenues and EBITDA before non-recurring items are expected to reach the lower end of the indicated ranges.

The 2024 Annual Financial Report, as well as the Management Discussion and Analysis of Financial Conditions and Results of Operations and the financial statements for the first nine months of 2024 are available on lectra.com. Q3 and the first nine months of 2024 earnings will be published on October 30, 2024.

About Lectra

A major player in the fashion, automotive and furniture markets, Lectra contributes to the development of Industry 4.0 with boldness and passion, fully integrating Corporate Social Responsibility (CSR) into its global strategy.The Group offers industrial intelligence solutions – software, cutting equipment, data analysis solutions and associated services – that facilitate the digital transformation of the companies it serves. In doing so, Lectra helps its customers push boundaries and unlock their potential. The Group is proud to state that its 3,000 employees are driven by three core values: being open-minded thinkers, trusted partners and passionate innovators. Founded in 1973, Lectra reported revenues of 478 million euros in 2023. The company is listed on Euronext, where it is included in the following indices: CAC All Shares, CAC Technology, EN Tech Leaders and ENT PEA-PME 150. For more information, visit lectra.com.

Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris • France
Tel. +33 (0)1 53 64 42 00 – www.lectra.com
A French Société Anonyme with capital of €37,832,965 • RCS Paris B 300 702 305

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The MIL Network –

January 25, 2025

MIL-OSI United Kingdom: A Budget to fix the foundations and deliver change for Wales
Source: United Kingdom – Executive Government & Departments

Chancellor takes long-term decisions to restore stability, rebuild Britain and protect working people across Wales.
HM Treasury

Chancellor takes long-term decisions to restore stability, rebuild Britain and protect working people across Wales.

No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.

Record £21 billion for the Welsh Government in 2025/26 includes £1.7 billion through the Barnett formula.

Funding for freeports, City and Growth Deals and coal tips to fire up growth and deliver good jobs across Wales.

The Chancellor has delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation. She set out plans to rebuild Britain, while ensuring working people across Wales don’t face higher taxes in their payslips. The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.

This Budget takes difficult decisions to restore economic and fiscal stability, so that the UK Government can invest in the economic future of Wales and lay the foundations for growth across the UK as its number one mission.

The Chancellor announced that the Welsh Government will be provided with a £21 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £1.7 billion top-up through the Barnett formula, with £1.5 billion for day-to-day spending and £250 million for capital investment.

Secretary of State for Wales Jo Stevens said:

This Budget has delivered for Wales for the first time in a generation.

The biggest settlement since devolution will provide a record boost to spending for the Welsh Government to support public services like the NHS while thousands of working people across Wales will benefit from today’s increases to their wages.

Little more than a week after the anniversary of Aberfan disaster it is fitting that we have committed £25m to make coal tips safe. It is testament to the new relationship between the UK and Welsh government, based on cooperation, respect and delivery.

We will also drive economic growth and support our world-leading Welsh industries with Investment Zones, Freeports and funding for communities across Wales.

We have prioritised money to support our steel communities, with nearly £100m to support workers and businesses.

This Budget delivers on what’s important to the people of Wales, and shows the difference we can make when two governments work together for the benefit of all.

Protecting working people and living standards

While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Wales, meaning they will not see higher taxes in their payslip.

The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.

The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.

Working people will benefit from these increases, with there estimated to be over 70,000 minimum wage workers in Wales in 2023.

The Chancellor has made the decision to protect working people in Wales from being dragged into higher tax brackets by confirming that National Insurance Contributions thresholds will be unfrozen from 2028-29 onwards.

The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 2.1 million people in Wales, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.

To support Welsh pubs and smaller brewers in Wales, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.

Over 600,000 Welsh pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.

Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 80,000 pensioners in Wales.

Around 1.1 million families in in Wales will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.

Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Welsh family by over £420 a year on average.

The weekly earnings limit for Carer’s Allowance will be increased by £45 a week from April next year, expanding support to more carers in Wales and helping them balance work and caring responsibilities. This is the largest ever increase to the earnings limit and provides certainty for carers with a commitment that the earnings limit will increase with the National Living Wage in the future.

Rebuilding Britain

This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Wales. This includes £160 million of targeted funding for the Welsh Government, of which £150 million is in capital investment.

The UK Government will deliver £88 million for City and Growth Deals, unlocking growth and investment across Wales.

The government also confirms £80 million funding for the Port Talbot / Tata Steel Transition Board, with work already underway to support workers and businesses affected by decarbonisation at Tata Steel.

£29 million of funding will be provided to the Welsh Government for the necessary build costs of border facilities in Holyhead and Pembrokeshire.

Essential work being undertaken by the Welsh Government to keep disused coal tips maintained and safe will be supported by £25 million of funding in 2025/26.

The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including the Celtic Freeport where tax sites will be operational from next month.

The Chancellor committed the UK Government to working closely with the Welsh Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.

Under-served parts of Wales will benefit from the rollout of digital infrastructure enabled by over £500 million of UK-wide investment in Project Gigabit and the Shared Rural Network.

A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation.

The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Wales’ thriving cultural sector.

Repairing public finances

The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.

The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.

The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Welsh firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.

Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.

To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.

The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.

The OBR say changes to CGT will raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.

Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.

From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.

From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%.

The Budget also announced a package of measures that disincentivise activities that cause ill health, by:

Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%). 

Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking.

To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.

The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.

The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:

A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.

Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.

The planned 50% reduction for foreign income in the first year of the new regime will be removed.

Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.

The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.

The UK Government will also introduce 20% VAT on education and boarding services provided for a charge by private schools from 1 January 2025.

The Chancellor also doubled down on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.

One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Welsh Government greater clarity for in its own budget-setting. A Fiscal Lock will also ensure no future government can sideline the OBR again.

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Published 30 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI USA: Kustoff Helps Introduce Bipartisan Farmer Assistance and Revenue Mitigation Act

Source: United States House of Representatives – Representative David Kustoff (TN-08)

WASHINGTON, D.C. — Congressman David Kustoff (R-TN) joined Congressman Trent Kelly (R-MS) to introduce the bipartisan Farmer Assistance and Revenue Mitigation Act of 2024 (FARM Act) in the House of Representatives. This legislation will provide emergency assistance to farmers of eligible commodities for which the expected revenue in crop year 2024 is below the projected per-acre cost of production.

As Congress continues to debate an updated Farm Bill, this legislation will provide immediate relief by helping farmers pay down debt relative to the 2024 crop and help obtain financing for the 2025 crop year.

“Our farmers produce the food, fuel, and fiber used around the world,” said Congressman Kustoff. “Recently, our farmers have been forced to grapple with many circumstances out of their control, such as natural disasters, high inflation, and drought. That is why I am pleased to join Congressman Kelly to introduce this vital legislation that will provide our farmers with the assistance they need to keep up production. Farmers are the backbone of our economy, and I am working to ensure they have the resources they need from Washington.”

This legislation has been supported by the American Farm Bureau Federation, Tennessee Farm Bureau, Mississippi Farm Bureau, American Soybean Association, National Association of Wheat Growers, National Barley Growers Association, National Cotton Council, National Sorghum Producers, National Sunflower Association, U.S. Canola Association, U.S. Peanut Federation, USA Dry Pea & Lentil Council, USA Rice, and the Western Peanut Growers Association.

###

MIL OSI USA News –

January 25, 2025
MIL-OSI Global: What Labour’s first budget means for wages, taxes, business, the NHS and plans to grow the economy – experts explain

Source: The Conversation – UK – By Linda Yueh, Fellow in Economics/Adjunct Professor of Economics, University of Oxford

For the first time in 14 years, it was a Labour chancellor who delivered the UK budget. And for the first time ever, that chancellor was a woman. But Rachel Reeves faces an almighty task: plugging a £40 billion spending gap in the knowledge that pre-election promises not to raise the main taxes are still fresh in people’s memories.

Growth was the buzzword of the election campaign – Reeves now had to lay her cards on the table. So here’s what our panel of experts made of the plans:

More challenges for employers and small businesses

Shampa Roy-Mukherjee, Associate Professor in Economics, University of East London

The budget introduces £40 billion in tax hikes and, in some areas, spending cuts that will put pressure on the economy and business in particular. But it also reflects the government’s focus on economic growth, with policies intended to stabilise finances while addressing some of the concerns of small businesses.

The chancellor has retained her commitment to preserve the rates of income tax, employee national insurance and VAT. But a notable change is the increase in employers’ national insurance contributions (NICs) from 13.8% to 15%.

There was also a reduction in the secondary threshold, which is the amount at which the employer starts paying NI on each employee, from £9,100 to £5,000. Altogether this will raise £25 billion annually but will significantly impact many businesses that will now face higher wage bills.

The national living wage is also rising by 6.7% to £12.21 per hour in April 2025, boosting incomes for about three million workers but again increasing costs for many businesses. These rising taxes and wage increases, alongside incoming employment regulations, will strain businesses, particularly in sectors with high labour demands.

To offset some of these pressures, the employment allowance, which allows some smaller employers to reduce their NICs, has been raised from £5,000 to £10,500. The chancellor said that over 1 million employers will not see their NICs bill rise as a result.

Small businesses in retail, hospitality and leisure, where profits have been hit as consumers struggle with the cost of living, will benefit from a 40% business rate relief on properties up to £110,000. Other supportive measures include a continued freeze on fuel duty, which will aid logistics and transport costs. Corporation tax remains fixed at 25%.

At the next stop they’re putting up bus fares.
Mistervlad/Shutterstock

Higher wages for three million, but it could cost more to get the bus to work

Rachel Scarfe, Lecturer in Economics, University of Stirling

The biggest change for those on low incomes was an increase in the national minimum wage (for 18 to 20-year-olds) of 16.3%, from £8.60 to £10 an hour, and an increase in the national living wage (for employees aged 21 and over) of 6.7%, from £11.44 to £12.21, from April 2025. This will lead to a pay rise for more than 3 million workers.

Business associations warn that this will cause job losses, particularly in hospitality and the care sector, where many employees earn the minimum wage. But a large body of research has not found a negative effect of minimum wages on employment.

There is some evidence that earlier minimum wage rises caused an increase in the number of zero-hours contracts in social care, as firms tried other ways to reduce wages. However, the new employment rights bill introduced earlier in October would limit the use of zero-hours contracts in this scenario.

The budget could have an indirect effect on pay packets though. The effect of the change to employer NICs will be greater in sectors with more low-paid workers, such as hospitality, and employer associations have warned that it will risk jobs. There is also some evidence that in the long term, firms pass some of these costs on to employees by reducing their wages.

However, the minimum wage increase will reduce the capacity for firms to reduce wages. And any long-term effect would also be offset by lower income taxes that will come after 2028 when the chancellor has said she will increase the threshold at which people starting paying tax.

So if wages and profits fall because of increased contributions, then the amount Reeves raises will be lower than expected, because income and corporation tax receipts will be hit.

Another indirect factor affecting incomes is the cost of getting to work. The fuel duty freeze will continue, but the bus fare cap will increase from £2 to £3. Lower-paid workers and jobseekers are much more likely to use the bus than those with higher incomes, who are more likely to drive, but the cost of bus travel increased much more than the cost of train travel or petrol over the last parliament.

The fare cap reversed some of this increase, and some evidence shows that it led to more people travelling by bus. But the new £3 cap will only last until the end of 2025, which may be too soon to see much effect.

Second thoughts about that second home?
Andrew Roland/Shutterstock

Taxing times for the wealthy

Jonquil Lowe, Senior Lecturer in Economics and Personal Finance, The Open University

As expected, the budget targeted several wealth taxes, including capital gains tax (CGT), which is charged on profits you make when you “dispose of” (sell or give away) an asset. The first slice of such profits (£3,000 in 2024-25) is tax-free. Profit above that is added to your income to determine what rate will apply: a lower rate for profit covered by the basic income tax rate band and a higher rate on anything more.

Reeves announced that CGT rates on financial assets – things like shares – will immediately increase from 10% to 18% (for the lower rate) and from 18% to 24% (for the higher rate). Financial assets account for around 85% of all disposals within the scope of CGT, but only around 350,000 people a year pay the tax.

This brings the rates on financial assets into line with residential property, such as a second home. (There is no CGT when you sell or give away your only or main home.) But this still leaves wealth taxed less heavily than income.

The government says it is committed to tackling the UK’s housing shortage. So to deter multiple home ownership, it has raised stamp duty for people buying a second (or third or fourth) home. Purchases completed will now incur an extra 5% tax (currently 3%) over and above the normal stamp duty rates.

There were also changes to inheritance tax (IHT). Pension savings left unused at death have in recent years been passed on tax free. But from April 2027, the savings will count as part of the estate and be subject to IHT at a rate of up to 40%.

The first slice of the estate a person leaves, called the nil-rate band, is IHT-free, and that band has been frozen at £325,000 since 2010. Reeves extended the freeze until April 2030.

As a result of these changes, the government expects almost 6% of estates to pay IHT this year, up from fewer than 5% in recent years. People in London and the south east are more likely to be IHT-payers, largely due to higher property values in those areas.

A downpayment on growth – but probably not quickly

Linda Yueh, Adjunct Professor of Economics, University of Oxford

The chancellor declared that the government will “invest, invest, invest”. This is an important enabler of economic growth.

But, the country’s creditors need reassuring, so Reeves also announced two new fiscal rules that aim to achieve that balance of allowing the government to borrow to invest (and generate growth), but not to pay for day-to-day spending.

Specifically, the investment rule permits borrowing to invest and the stability rule requires day-to-day spending to be paid for by taxes. Both rules support the government’s growth aims while trying to reassure the country’s creditors that the borrowing will pay off by generating future growth – and also higher tax receipts with which to repay that borrowing.

But spending watchdog the Office for Budget Responsibility (OBR) has downgraded the UK’s GDP growth outlook from 2% to 1.8% in 2026, and to 1.5% in 2027 and 2028. The OBR’s forecast of slower growth highlights the impact of the £40 billion of tax increases, which dampens economic activity.

This underscores the government’s challenge of investing to grow while at the same having to raise taxes to balance the books when it comes to its daily spending. In particular, the OBR’s assessment of slowing growth towards the middle of this parliament raises questions about how long it will take for the investment-fuelled growth to materialise.

It may be that five years is still too short a period. Many physical investments require planning and those reforms could also take a while. Moreover, getting investment projects under way requires scoping, and private investors will want time to assess before joining the government in energy projects.

But this budget is certainly a start on a much-needed growth strategy.

Clean energy boost?
StudioFI/Shutterstock

Good news on public investment – emerging industries could benefit

Phil Tomlinson, Professor of Industrial Strategy, University of Bath

The key budget change related to the chancellor’s fiscal rules. By redefining how public debt is calculated, Reeves has been able to increase public investment by around £100 billion. The new fiscal rules have gone not as far as some economists have advocated – but they are a welcome step in the right direction.

Investment was the core focus of the budget. For decades, the UK has suffered from low investment and weak productivity compared to other leading economies. Since 1990, the UK’s investment gap with the average across rich countries in the Organisation for Economic Co-operation and Development (OECD) has been around £35 billion a year – the UK now ranks 28th of 31 OECD countries on business investment. British workers are using outdated kit and so are less productive. This has meant a stagnant economy and lower living standards.

So, the budget’s plans to boost investment in the UK’s crumbling infrastructure and public services and to support the new industrial strategy are a positive move. The latter should see additional funding to support emerging tech industries, such as artificial intelligence, cyber and clean energy. And this public investment should “crowd in” additional private investment.

In the long run, these investments should pay for themselves. For instance, the Office for Budget Responsibility estimates that a sustained increase in public investment of 1% of GDP increases that GDP by 0.5% after five years and more than 2% after ten to 15 years.

The rise in employer national insurance contributions will increase business’s operating costs, especially those in the care and hospitality sectors. But paradoxically, in the long run, it may encourage some businesses (in sectors where it is feasible) to invest in new labour-saving capital equipment.

Read more:
Rachel Reeves is the UK’s first female chancellor. Here’s why that’s so significant

The NHS gets a cash injection – but it may not go that far

Karen Bloor, Professor of Health Economics and Policy, University of York

Amid all the gloomy pre-budget talk of tough choices and economic problems, would the government’s plans to improve the NHS cheer up the country (England, at least)? Not entirely.

On the plus side, the chancellor promised a generous spending increase of £22.6 billion in the year 2025 to 2026, with £3.1 billion on capital investment. But solving the problems of the NHS is not just about money, and there will be difficult decisions to come.

Meanwhile, increases in employers’ national insurance contributions, while raising funds, will also have a big impact on the NHS, which employs over 1.5 million people. So the additional spending may be less than it appears.

The new government has said it has three main priorities for healthcare in England: moving care from hospitals to the community, moving resources from treatment to prevention, and changing systems from analogue to digital. None of these ideas are new, and there are good reasons why they haven’t happened already.

Expanding primary and community care often does not translate into reduced demand for hospital services – in fact, it can do the opposite, by uncovering previously unmet needs. And successive governments have failed to address long-standing problems in social care, which is crucial to addressing pressures on the NHS. A successful NHS means people living longer, but often with long-term health problems.

Returns on investment in preventing illness can be substantial, but they vary widely, and can be difficult to achieve. This is particularly true when it comes to interventions needing individual behaviour change, such as increasing exercise or cutting down on alcohol. Even when clearly positive, they take a very long time to generate cost savings.

And there are other aspects of the chancellor’s plans which could arguably harm public health. Abolition of winter fuel payments for example, could affect the health of older people on low incomes.

Rising bus fares could affect people’s ability to attend appointments, and the controversial two-child benefit cap, which can affect child health remains in place.

Finally, while technology should improve the efficiency of services, people need care from people. Capital investment – in scanners, radiotherapy machines and diagnostics – will need to be matched by the cost of the professionals who operate them and interpret their findings.

Karen Bloor receives funding from the NIHR policy research programme to conduct responsive analysis for the Department of Health and Social Care,

Phil Tomlinson receives funding from the Engineering and Physical Sciences Research Council (EPSRC) for Made Smarter Innovation: Centre for People-Led Digitalisation.

Rachel Scarfe is a member of the Labour Party.

Jonquil Lowe, Linda Yueh, and Shampa Roy-Mukherjee do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. What Labour’s first budget means for wages, taxes, business, the NHS and plans to grow the economy – experts explain – https://theconversation.com/what-labours-first-budget-means-for-wages-taxes-business-the-nhs-and-plans-to-grow-the-economy-experts-explain-242509

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI USA: New Affordable Homes in Sunset Park

Source: US State of New York

Governor Kathy Hochul today celebrated the completion of Sunset Ridge, an 84-unit, affordable housing development for seniors and older adults in Sunset Park, Brooklyn. The energy-efficient development, which also houses a new education space, will preserve historic decorative elements from a church that used to be on the site and is the first affordable older adult housing built in Sunset Park in over 15 years.

“Sunset Ridge is the embodiment of a multi-generational and community-centered development — one that incorporates the neighborhood’s history with the need for growth and sustainability,” Governor Hochul said. “By investing in new mixed-use projects, we are unlocking a future that is more affordable and more livable, opening up new opportunities for communities to thrive.”

The entire $65 million development is reserved for persons aged 62 and older earning up to 50 percent of the Area Median Income. All units are supported by project-based vouchers, ensuring tenants pay no more than 30 percent of their income on rent. Reflecting a strong commitment to address housing insecurity among the city’s most vulnerable, 26 apartments are set aside for formerly homeless seniors who will receive social services including emergency assistance, recreational activities, case management, wellness support and benefits assistance.

The ground floor and first floor of the new building includes a community facility space for five pre-kindergarten classrooms that will be constructed by the New York City Schools Construction Authority starting in 2025, enhancing access to early childhood education for local families.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Sunset Ridge is giving 84 senior households affordable and modern homes where they can age in place, while also prioritizing the needs of families with a new education space. This $65 million investment will help residents decrease their carbon footprint and provide support for tenants who need it most. We are grateful to Governor Hochul for her vision, as well as to Commissioner Carrion and all our partners for bringing this project to fruition.”

The project included the demolition of the Zion Lutheran Church and the construction of a new nine-story building, as well as the complete rehabilitation of two pre-existing townhouses which were combined into one building. Decorative elements of the original church were preserved and reused within the new building.

Both buildings feature energy-efficiency measures including all-electric heating and cooking. Additionally, a 19.8kW solar array was installed on the roof, underscoring the project’s commitment to sustainability.

In the past five years, New York State Homes and Community Renewal has created or preserved nearly 7,700 affordable homes in Brooklyn. Sunset Ridge continues this effort and complements Governor Hochul’s $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.

Fifth Avenue Committee, a nonprofit comprehensive community development corporation, is the project sponsor, developer and manager. Bay Ridge Center provides on-site social services to the formerly homeless tenants. Metropolitan New York Synod is the owner of the Community Facility on the ground floor and first floor.

Sunset Ridge is supported by HCR’s Federal Low-Income Housing Tax Credit program that generated approximately $18.3 million in equity and its State Low-Income Housing Tax Credit program that generated approximately $3.4 million in equity. All of the units benefit from a project-based Section 8 rental assistance vouchers. The New York State Energy Research and Development Authority provided more than $100,000 in funding with $31,700 in tax incentives through NY-Sun, along with $73,600 in combined incentives through the Low-Rise New Construction and the Multifamily New Construction programs. The New York City Department of Housing Preservation and Development provided $11.7 million through its Senior Affordable Rental Apartments program and $1.3 million in accrued interest. The project also received a $6 million discretionary capital grant from the Brooklyn Borough President in Fiscal Year 2017 and Fiscal Year 2020 administered by HPD.

The project was guaranteed by Fifth Avenue Committee and Moodna Creek, LLC. Chase Community Development Banking provided a $28 million construction loan. Tax credit syndicator Hudson Housing Capital and the Tax Oriented Investments unit of J.P. Morgan invested $23 million in tax credit equity to support the development. Freddie Mac through Greystone provided $15 million in permanent loan financing.

NYSERDA President and CEO Doreen M. Harris said, “Sunset Ridge shows how sustainable new construction practices and retrofitting existing structures can uplift historically underserved communities by providing affordable, healthy and comfortable housing and community spaces. This all-electric, multi-use development powered by rooftop solar will ensure New Yorkers living in Sunset Park benefit from clean energy while advancing Governor Hochul’s commitment to tackling the housing shortage.

Senate Majority Leader Charles Schumer said, “Everyone deserves a safe and affordable place to call home. I’m proud that the federal Low-Income Housing Tax Credit and project-based Section 8 rental assistance vouchers that I worked hard to protect and expand has delivered millions to help build senior housing in Sunset Park, which will provide more seniors with an affordable, supportive and energy-efficient place to live. I applaud Governor Hochul’s efforts to create and preserve affordable homes across the state, and I will continue working to deliver the federal resources needed for more affordable homes in Brooklyn.”

New York City Schools Construction Authority President and CEO Nina Kubota said, “The SCA is excited to partner with the Fifth Avenue Committee, HCR, HPD, and Metropolitan New York Synod to leverage this high-quality opportunity to provide access to early childhood education for Sunset Park and Bay Ridge parents. We will begin work on this 13,314 square foot pre-kindergarten facility in early 2025 that will bring 90 new seats and an exterior play yard to this community. Thinking outside of the box by maximizing space in multi-use sites is part of the strategy we have been deploying to expand early childhood education throughout the City. Access to pre-k improves cognitive and social development, reduces achievement gaps, and supports working parents, providing them with affordable, reliable childcare. Today is a day to celebrate this truly unique partnership.”

Representative Dan Goldman said, “As housing costs in New York City rise to unprecedented levels, our seniors have been left behind. The Fifth Avenue Committee’s new affordable housing complex in Sunset Park is a crucial step toward providing our older New Yorkers with the homes they deserve, and I applaud the city, state, and Fifth Avenue Committee for ensuring that this vital project is completed. I look forward to continuing to work alongside FAC to ensure every New Yorker can access high-quality, stable, and affordable housing.”

State Senator Andrew Gounardes said, “If we want Brooklyn to be a place where everyone can succeed, we need to create resources for everyone from young children to seniors. The Sunset Ridge development is exactly the kind of resource our communities need: affordable housing for seniors along with universal pre-k classrooms so families can more easily access childcare and education. Thank you to Fifth Avenue Committee for taking the opportunity to support working families and a thriving future for all Brooklynites.”

Assemblymember Marcela Mitaynes said, “Fifth Avenue Committee and its partners have brought much-needed affordable senior housing to Sunset Park. Sunset Ridge is an example of how the intentional construction of housing can address the gaps that exist in New York State communities. AD51 needs more affordable units in environmentally friendly and community-oriented buildings under strong tenant protections.”

Brooklyn Borough President Antonio Reynoso said, “As we work to address housing insecurity in Brooklyn, it is critical that we consider the particular vulnerabilities faced by older adults in our community. Sunset Ridge confronts this disparity directly, and by combining affordable senior housing with universal pre-k, the project creates an intergenerational community resource and gathering place. I applaud NYS Homes and Community Renewal and NYC Department of Housing Preservation and Development as well as the Fifth Avenue Committee for investing in the well-being of both the oldest and youngest members of the Sunset Park community, and I look forward to seeing residents and students thrive in their new space.”

New York City Councilmember Alexa Aviles said, “I applaud the Fifth Avenue Committee for bringing to fruition Sunset Ridge Apartments, a development that will deliver truly affordable housing for our older adults. Housing insecurity is the number one issue in my office with frequent visits from so many older adults who are facing displacement as a result of gentrification and unscrupulous landlords. Today however, we celebrate a move towards solutions, and am proud to have played a role in bringing this much needed housing to our community. I thank Fifth Avenue Committee under the leadership of Michelle de la Uz for their work in providing affordable housing to our district seniors.”

Fifth Avenue Committee Executive Director Michelle de la Uz said, “FAC is thrilled to be cutting the ribbon at Sunset Ridge, the first new affordable housing for seniors in the community in over 15 years and FAC’s 2nd new affordable housing project in Sunset Park to be completed in 2 years. Access to quality, affordable housing is crucial to our health and well-being, especially as we age. The project is especially gratifying because it will also have 90-Universal Pre-K seats in the future, representing an important intergenerational resource for the local community. We broke ground on the project just before the pandemic hit, so we never celebrated its start, making today’s ribbon cutting with our project partners and tenants all the more meaningful. On behalf of our tenants and the local community, thank you to the Metropolitan New York Synod, NYS HCR and NYC HPD and everyone who helped make this critical project possible.”

Bay Ridge Center Executive Director Todd Fliedner said, “At Bay Ridge Center, we are dedicated to enhancing the lives of adults 60 and older in our vibrant community, through a variety of enriching programs and essential services, we strive to support our members in living active fulfilling lives.”

Chase Community Development Banking Head of East Region Dave Walsh said, “We are proud to support the redevelopment of Sunset Ridge, a project delivering essential affordable senior housing in Brooklyn. Providing housing with essential services not only fosters a sense of belonging but is vital to ensure our most vulnerable senior residents have the resources they need to flourish.”

Hudson Housing Capital Managing Director Sam Ganeshan said, “Hudson Housing Capital is proud to partner with Fifth Avenue Committee to finance high-quality, affordable housing for seniors at Sunset Ridge. This property will provide some of the City’s most vulnerable residents with a safe place to live independently and age in-place. We thank and commend all those involved in making this day possible, including our investor J.P. Morgan, and look forward to seeing this impactful housing development thrive for many years to come.”

Governor Hochul’s Housing Agenda

Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 45,000 homes have been created or preserved to date.

The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. To date, more than 160 communities have been certified, including the City of New York.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Wittman’s Office Secures Over $3.6 Million in Federal Benefits For Constituents

Source: United States House of Representatives – Congressman Rob Wittman (VA-01)

WASHINGTON – Today, Congressman Rob Wittman (VA-01) announced that his office has secured over $3.6 million in federal casework funds for residents of Virginia’s First District since May 2023.

Casework dollars are secured by advocating for constituents facing backlogs and bureaucratic delays with a federal agency, program, or benefit. The Office of Congressman Rob Wittman works to resolve issues ranging from Social Security and Medicare benefits to U.S. Department of Veterans Affairs (VA) claims and IRS tax refunds.

“I am committed to delivering real results for the people of Virginia’s First District, whether that be through working with my colleagues in Congress, federal agencies, or localities,” said Rep. Wittman. “Whether you need assistance with a VA claim, renewing your passport, or checking on your Social Security benefits, please do not hesitate to contact my team. I am proud of the quality constituent services my office provides — we will always be happy to assist you.”

Since the beginning of the 118th Congress, the Office of Congressman Rob Wittman has closed over 4,000 cases for Virginia’s First District residents.

Below are testimonials from constituents who contacted Congressman Wittman’s office for assistance with an issue involving the federal government:

“Congressman Wittman, my wife and I would like to thank you for your assistance in getting things straightened out concerning our cases with the USCIS. Your assistance could not have been faster or more efficient. Our cases were resolved within two weeks, instead of two years. Thank you!” – Ray, Poquoson

“In April 2024, SSA committed an enrollment error and canceled my Medicare benefits. After numerous attempts to resolve this issue on my own, I contacted Congressman Wittman’s office to seek intervention on my behalf with the SSA. What a blessing that Ms. Gale was the individual assigned to my case!

“She continued to stay in contact to keep me abreast of her progress with SSA and never seemed bothered by my continued ‘pestering.’ Needless to say, SSA is a frustrating bureaucratic agency to deal with and Ms. Gale kept me sane throughout the process while remaining caring and professional at all times.” – Marie, Williamsburg

“Looks like I’ll be going before the review board after all! Rob Wittman’s office has helped me so much in pursuing my dream of becoming an officer in the Air Force. I appreciate the support.” – Tallie, Yorktown

For assistance with a federal agency inquiry, constituents can contact Congressman Wittman’s casework team here or by calling one of his offices:

Washington, D.C. Office: (202) 225-4261
Glen Allen Office: (804) 401-4120
Yorktown Office: (757) 527-6270
Tappahannock Office: (804) 443-0668

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MIL OSI USA News –

January 25, 2025
MIL-OSI Canada: Taxpayers’ Ombudsperson is pleased that the Canada Revenue Agency is exempting bare trustees from the 2024 filing requirement

Source: Government of Canada News (2)

The Taxpayers’ Ombudsperson, Mr. François Boileau, is pleased that the Canada Revenue Agency (CRA) has proactively waived the 2024 filing requirement for bare trusts, unless it makes a direct request.

OTTAWA, October 30, 2024 – The Taxpayers’ Ombudsperson, Mr. François Boileau, is pleased that the Canada Revenue Agency (CRA) has proactively waived the 2024 filing requirement for bare trusts, unless it makes a direct request.

In July 2024, the Taxpayers’ Ombudsperson announced that our Office was opening a systemic examination into whether the CRA had respected taxpayers’ rights in its administration of bare trust filing requirements for the 2023 tax year.

In carrying out the examination, we heard from stakeholders that the bare trust information the CRA provided for the 2023 tax year had value, but like the 2023 exemption, it came too late. Many tax preparers complete their hiring and training in the fall for each upcoming tax season. Therefore, announcing relief or an exemption beyond November is not timely.

In August and September 2024, the Department of Finance Canada consulted with Canadians on technical amendments clarifying the trust reporting rules. It indicated that the legislative proposal would seek to reduce the administrative burden and to exempt bare trustees from the 2024 bare trust filing requirement.

The CRA’s role is to administer the tax legislation in a manner that is fair and reasonable for taxpayers. It appears unlikely that a bill reflecting the proposed amendments would receive royal assent before many tax preparation firms begin planning for the 2025 tax-filing season. Therefore, it was important that the CRA proactively communicate this exemption, which it did this week.

We are currently in the final stages of drafting our report on our examination into the CRA’s administration of the 2023 bare trust filing requirements. We have met with stakeholders, examined complaints we received, and sought answers from the CRA. We plan to publish the report in early 2025.

Background information

The Office of the Taxpayers’ Ombudsperson works independently from the CRA. Canadians can submit complaints to the Office if they feel they are not receiving the appropriate service from the CRA. Our main objective is to improve the service the CRA provides to taxpayers and benefit recipients by reviewing individual service complaints and service issues that affect more than one person or a segment of the population.

The Taxpayers’ Ombudsperson assists, advises and informs the Minister of National Revenue about matters relating to services provided by the CRA. The Ombudsperson ensures, in particular, that the CRA respects eight of the service rights outlined in the Taxpayer Bill of Rights.

MIL OSI Canada News –

January 25, 2025
MIL-OSI Asia-Pac: Monthly review of accounts of Government of India upto September, 2024 (FY2024-25)

Source: Government of India (2)

Posted On: 30 OCT 2024 6:16PM by PIB Delhi

The Monthly Account of the Government of India upto the month of September, 2024 has been consolidated and reports published. The highlights are given below: –

The Government of India has received ₹16,36,974 crore (51.0% of corresponding BE 2024-25 of Total Receipts upto September, 2024) comprising ₹12,65,159 crore Tax Revenue (Net to Centre), ₹3,57,214 crore of Non-Tax Revenue and ₹14,601 crore of Non-Debt Capital Receipts. ₹5,44,803 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India upto this period which is ₹89,359 crore higher than the previous year.

Total Expenditure incurred by the Government of India is ₹21,11,494 crore (43.8% of corresponding BE 2024-25), out of which ₹16,96,528 crore is on Revenue Account and ₹4,14,966 crore is on Capital Account. Out of the Total Revenue Expenditure, ₹5,15,010 crore is on account of Interest Payments and ₹2,14,658 crore is on account of Major Subsidies.

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MIL OSI Asia Pacific News –

January 25, 2025

Category: Taxation

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1. Savings boost from the government for low earners

2. Increased National Living Wage

3. Capping how much Universal Credit can be taken for debt repayment

Other financial support available

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Agenda

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More challenges for employers and small businesses

Higher wages for three million, but it could cost more to get the bus to work

Taxing times for the wealthy

A downpayment on growth – but probably not quickly

Good news on public investment – emerging industries could benefit

The NHS gets a cash injection – but it may not go that far