Category: Trade

MIL-OSI: Societe Generale: Fourth quarter & 2024 full year results

Source: GlobeNewswire (MIL-OSI)

RESULTS AT 31 DECEMBER 2024

Press release
Paris, 6 February 2025

2024 RESULTS ABOVE ALL GROUP TARGETS
GROUP NET INCOME OF EUR 4.2 BILLION, +69% vs. 2023

Annual revenues of EUR 26.8 billion, up by +6.7% vs. 2023, above the ≥+5% target set for 2024, driven in particular by the strong rebound in net interest income in France and by an excellent performance in Global Banking and Investor Solutions with revenues above EUR 10 billion

Cost-to-income ratio of 69.0%, below the target of <71% set for 2024, thanks to tight control of costs, which are stable vs. 2023

Cost of risk at 26 basis points, at the lower end of the 2024 guidance range

Profitability (ROTE) of 6.9%, above the target of >6% expected for 2024

CET1 ratio of 13.3% at end-2024, around 310 basis points above regulatory requirement

+75% INCREASE IN DISTRIBUTION TO SHAREHOLDERS VS. 2023

Proposed distribution of EUR 1,740 million¹, equivalent to EUR 2.18 per share¹, composed of:

a cash dividend of EUR 1.09 per share to be proposed to the General Meeting

a share buyback programme of EUR 872 million, equivalent to EUR 1.09 per share¹. ECB approval has been obtained to launch the programme, due to start on 10 February 2025
Increase of the payout ratio to 50% of net income²

2025 FINANCIAL TARGETS, STRONG CAPITAL, EXECUTION DISCIPLINE

Revenue growth of more than +3%³ vs. 2024

Decrease in costs above -1%³ vs. 2024

Improvement of the cost-to-income ratio, less than 66% in 2025

Cost of risk between 25 and 30 basis points in 2025

Increase of the ROTE, more than 8% in 2025

CET1 ratio above 13% post Basel IV throughout the year 2025

With a solid CET1 ratio ahead of the capital trajectory, we are proposing to improve the distribution policy with:

an overall distribution payout ratio of 50% of net income²
a balanced distribution between cash dividends and share buybacks

Slawomir Krupa, the Group’s Chief Executive Officer, commented:
“In 2024, our performance improves materially. All our targets are exceeded and ahead of plan. Strong capital build-up, strong and sustainable business growth, strong cost control and risk management, and a material progress in our integration projects led to the doubling of the earnings per share. Against this strong backdrop, we are improving both the 2024 distribution and our distribution policy. I would like to thank the entire Societe Generale team for their dedication and remarkable commitment, every single day, to serving our clients and our Bank.
We will continue to focus in 2025 on the relentless execution of our strategy, improving our performance even further.”

GROUP CONSOLIDATED RESULTS

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	6,621	5,957	+11.1%	+12.5%*	26,788	25,104	+6.7%	+5.7%*
Operating expenses	(4,595)	(4,666)	-1.5%	-0.7%*	(18,472)	(18,524)	-0.3%	-1.6%*
Gross operating income	2,026	1,291	+57.0%	+61.3%*	8,316	6,580	+26.4%	+26.6%*
Net cost of risk	(338)	(361)	-6.4%	-4.9%*	(1,530)	(1,025)	+49.3%	+48.6%*
Operating income	1,688	930	+81.6%	+87.4%*	6,786	5,555	+22.2%	+22.5%*
Net income/expense from other assets	(11)	(21)	+48.9%	+45.2%*	(77)	(113)	+31.4%	+26.3%*
Income tax	(413)	(302)	+36.6%	+40.5%*	(1,601)	(1,679)	-4.7%	-4.9%*
Net income	1,273	612	x 2.1	x 2.1*	5,129	3,449	+48.7%	+49.6%*
O.w. non-controlling interests	233	183	+27.0%	+33.6%*	929	957	-3.0%	-9.3%*
Group net income	1,041	429	x 2.4	x 2.5*	4,200	2,492	+68.6%	+73.2%*
ROE	5.8%	1.5%			6.1%	3.1%	+0.0%	+0.0%*
ROTE	6.6%	1.7%			6.9%	4.2%	+0.0%	+0.0%*
Cost to income	69.4%	78.3%			69.0%	73.8%	+0.0%	+0.0%*

Asterisks* in the document refer to data at constant perimeter and exchange rates

The Board of Directors of Societe Generale, which met on 5 February 2025 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for Q4 24 and endorsed the 2024 financial statements.

Net banking income

Net banking income stood at EUR 6.6 billion, up by +11.1% vs. Q4 23.

Revenues of French Retail, Private Banking and Insurance were up by +15.5% vs. Q4 23 and totalled EUR 2.3 billion in Q4 24. Net interest income increased in Q4 24 (+36% vs. Q4 23), in line with the latest estimates. Assets under management in Private Banking and Insurance increased by +7% each in Q4 24 vs. Q4 23. Lastly, BoursoBank showed strong growth momentum with more than 460,000 new clients in the quarter, allowing to reach a client base of 7.2 million clients at end-December 2024, above the target of 7 million clients set for end-2024. In addition, BoursoBank posted a positive contribution to Group net income in 2024 for the second year in a row.

Global Banking and Investor Solutions registered a +12.4% increase in revenues relative to Q4 23. Revenues amounted to EUR 2.5 billion for the quarter, driven by strong momentum across all businesses. Global Markets grew by 9.8% in Q4 24 vs. Q4 23. Revenues from the Equities business were up by +10%, reaching a record level for a fourth quarter. They were driven by favourable market conditions, particularly after the result of the presidential elections in the United States. Fixed Income and Currencies were up by +9% owing to solid commercial activity in financing and intermediation across all asset classes. In Financing and Advisory, solid commercial momentum was recorded in structured finance and the performance of M&A and advisory continued to rebound. Likewise, Global Transaction & Payment Services posted a +26% increase in revenues vs. Q4 23, driven by a sustained commercial development across all businesses, particularly in correspondent banking.

Mobility, International Retail Banking and Financial Services’ revenues were up by +2.0% vs. Q4 23, mainly due to an increase in margins at Ayvens. International Retail Banking recorded a -3.6% fall in revenues vs. Q4 23 at EUR 1.0 billion, due to a scope effect related to the asset disposals finalised in Africa (Morocco, Chad, Congo, Madagascar). Revenues were up +3.4% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were up by +8.3% vs. Q4 23 mainly due to non-recuring items in Q4 23 and improved margins at Ayvens.

The Corporate Centre recorded revenues of EUR -159 million in Q4 24.

Over 2024, net banking income increased by +6.7% vs. 2023.

Operating expenses

Operating expenses came out to EUR 4,595 million in Q4 24, down by -1.5% vs. Q4 23.
They include a scope effect of around EUR 46 million related to the integration of Bernstein’s cash equity operations and a decrease in transformation costs of EUR 26 million. Excluding these items, operating expenses were down by nearly -2% in Q4 24 vs. Q4-23 owing to the effect of the cost saving measures implemented across all business lines.

The cost-to-income ratio stood at 69.4% in Q4 24, significantly lower than in Q4 23 (78.3%).

Over 2024, operating expenses remained relatively stable (-0.3% vs. 2023), thanks from rigorous cost management. The cost-to-income ratio stood at 69.0% (vs. 73.8% in 2023), a level below the target of 71% for 2024.

Cost of risk

The cost of risk fell to 23 basis points over the quarter (or EUR 338 million). This includes a EUR 386 million provision for non-performing loans (around 26 basis points) and a reversal of a provision on performing loans for EUR -48 million.

At end-December, the Group’s provisions on performing loans amounted to EUR 3,119 million, stable relative to 30 September 2024. The EUR -453 million contraction relative to 31 December 2023 is mainly owing to the application of IFRS 5.

The gross non-performing loan ratio stood at 2.81%⁴^,⁵ at 31 December 2024, significantly down vs. end of September 2024 (2.95%). The net coverage ratio on the Group’s non-performing loans stood at 81%⁶ at 31 December 2024 (after taking into account guarantees and collateral).

Net profits from other assets

The Group recorded a net loss of EUR -11 million in Q4 24, mainly related to the accounting impacts of finalised asset sales, such as the disposals of our activities in Morocco and Madagascar.

Group net income

Group net income stood at EUR 1,041 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 6.6%.

Over the year, Group net income stood at EUR 4,200 million, equating to a Return on Tangible Equity (ROTE) of 6.9%.

Shareholder distribution

The Board of Directors approved the distribution policy for the 2024 fiscal year, aiming to distribute EUR 2.18 per share, equivalent to EUR 1,740 million, of which EUR 872 million in share buyback⁷. A cash dividend of EUR 1.09 per share will be proposed at the General Meeting of Shareholders on 20 May 2025. The dividend will be detached on 26 May 2025 and paid out on 28 May 2025.

AN ESTABLISHED ESG STRATEGY FROM WHICH TO STEP FORWARD

In 2024, Societe Generale accelerated the execution of its ESG roadmap, particularly with respect to the contribution to the environmental transition:

The Group now covers ~70% of companies’⁸ financed emissions, with 10 alignment targets for the carbon-intensive sectors. It has already reduced its oil and gas upstream exposure by more than 50% since the end of 2019⁹
In Q2 24 and ahead of schedule, the Group reached its target of EUR 300 billion for sustainable finance planned for the period 2022-2025. A new target of EUR 500 billion, complementing the work carried out as part of the portfolio alignment, was announced for the period 2024-2030. This will help increase the orientation of financial flows towards decarbonization activities.

The Group has broadened the scope of actions to prepare for a sustainable future by supporting new players and new technologies:

The EUR 1 billion investment for the transition, announced during the Capital Markets Day, has entered its operationalization phase
A new partnership with the EIB to unlock up to EUR 8 billion in the wind industry supply chain in Europe was signed in Q4 24.

At the same time, ESG risk management continues to be strengthened, enhancing forward-looking assessments of environmental risk materiality and further integrating environmental, social and governance risks into the risk framework.
Lastly, the Group is moving forward with its ambitions as a responsible employer: at the end of 2024, the “Group Leaders Circle” (Top 250) had ~30% women executives¹⁰ and ~30% international members. As announced during the Capital Markets Day, the EUR 100 million envelope commitment to reduce the gender pay gap was launched in 2023.

THE GROUP’S FINANCIAL STRUCTURE

At 31 December 2024, the Group’s Common Equity Tier 1 ratio stood at 13.3%¹¹, around 310 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well ahead of regulatory requirements at 156% at end-December 2024 (145% on average for the quarter), and the Net Stable Funding Ratio (NSFR) stood at 117% at end-December 2024.

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

	31/12/2024	31/12/2023	Requirements
CET1⁽¹⁾	13.3%	13.1%	10.24%
Fully-loaded CET1	13.3%	13.1%	10.24%
Tier 1 ratio ⁽¹⁾	16.1%	15.6%	12.17%
Total Capital⁽¹⁾	18.9%	18.2%	14.73%
Leverage ratio⁽¹⁾	4.34%	4.25%	3.60%
TLAC (% RWA)⁽¹⁾	29.7%	31.9%	22.31%
TLAC (% leverage)⁽¹⁾	8.0%	8.7%	6.75%
MREL (% RWA)⁽¹⁾	34.2%	33.7%	27.58%
MREL (% leverage)⁽¹⁾	9.2%	9.2%	6.23%
End of period LCR	156%	160%	>100%
Period average LCR	145%	155%	>100%
NSFR	117%	119%	>100%

In EURbn	31/12/2024	31/12/2023
Total consolidated balance sheet	1,574	1,554
Shareholders’ equity (IFRS), Group share	70	66
Risk-weighted assets	390	389
O.w. credit risk	327	326
Total funded balance sheet	952	970
Customer loans	463	497
Customer deposits	614	618

At 31 December 2024, the parent company had issued EUR 43.2 billion in medium/long-term debt under its 2024 funding program. The subsidiaries had issued EUR 4.7 billion. In all, the Group has issued a total of EUR 47.9 billion.

At 10 January 2025, the parent company 2025 funding program was executed at 47% for vanilla notes.

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”.

FRENCH RETAIL, PRIVATE BANKING AND INSURANCE

In EURm	Q4 24	Q4 23	Change	2024	2023	Change
Net banking income	2,267	1,963	+15.5%	8,657	8,053	+7.5%
Of which net interest income	1,091	801	+36.2%	3,868	3,199	+20.9%
Of which fees	1,028	948	+8.5%	4,108	3,975	+3.3%
Operating expenses	(1,672)	(1,683)	-0.7%	(6,634)	(6,756)	-1.8%
Gross operating income	596	280	x 2.1	2,024	1,297	+56.0%
Net cost of risk	(115)	(163)	-29.6%	(712)	(505)	+41.0%
Operating income	481	118	x 4.1	1,312	792	+65.6%
Net profits or losses from other assets	(2)	5	n/s	6	9	-35.1%
Group net income	360	90	x 4.0	991	596	+66.2%
RONE	9.1%	2.3%		6.3%	3.9%
Cost to income	73.7%	85.7%		76.6%	83.9%

Commercial activity

SG Network, Private Banking and Insurance

The SG Network’s average outstanding deposits amounted to EUR 232 billion in Q4 24, down by -1% on Q4 23, with strong shift of inflows into investment products and savings life insurance.

The SG Network’s average loan outstandings contracted by -4% vs. Q4 23 to EUR 194 billion, but -2.5% excluding PGE (state guaranteed loans). Outstanding loans to corporate and professional clients grew vs. Q3 24 excluding state guaranteed PGE loans, and individual clients lending experienced an increased commercial momentum.

The average loan to deposit ratio came to 83.6% in Q4 24, down by 2.6 percentage points relative to Q4 23.

Private Banking activities saw their assets under management¹² maintain a record level of EUR 154 billion in Q4 24, up by +7% vs. Q4 23. Net gathering stood at EUR 6.3 billion in 2024, the annual net asset gathering pace (net new money divided by AuM) being at +4% in 2024. Net banking income came to EUR 348 million over the quarter, a decrease of -2% vs. Q4 23. It stands at EUR 1,469 million for 2024, unchanged from 2023.

Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +7% vs. Q4 23 to reach a record EUR 146 billion at end-December 2024. The share of unit-linked products remained high at 40%. Savings Life insurance gross inflows amounted to EUR 3.4 billion in Q4 24, and EUR 18.3 billion for 2024, up by +42% vs. 2023.

Personal protection and P&C premia were up by +3% vs. Q4 23 (+5% at constant perimeter).

BoursoBank

BoursoBank’s growth momentum continued with more than 460K new clients in the fourth quarter of 2024. BoursoBank reached almost 7.2 million clients in December 2024, above 2024 target.

Thanks notably to its comprehensive banking offer and recognized among the “Digital Leaders”¹³, the Bank has a low attrition rate (~3% in 2024), still down vs. 2023.

BoursoBank continued its profitable growth trajectory in 2024 with a cost per client down by -17.0% vs. 2023 with an expanding client base, more than 1.3 million net clients over 12 months (+22.4% vs. 2023).

Loans outstanding improved by +5.4% relative to Q4 23, at EUR 16 billion in Q4 24.

Average outstanding in savings including deposits and financial savings were +15.5% higher vs. Q4 23 at EUR 64 billion. Deposits outstanding totalled EUR 39 billion in Q4 24, posting another strong increase of +15.4% vs. Q4 23, driven by interest-bearing savings. Average life insurance outstandings, at EUR 13 billion in Q4 24, rose by +10.2% vs. Q4 23 (o/w 48% in unit-lined products, +3.8 percentage points vs. Q4 23). The activity continued to register strong gross inflows over the quarter (+50.4% vs. Q4 23, 65% unit-linked products).

For the second year in a row, BoursoBank recorded a positive contribution to Group net income in 2024.

At end of 2025, BoursoBank aims to exceed 8 million clients.

Net banking income

Over the quarter, revenues amounted to EUR 2,267 million (including PEL/CEL provision), up by +15% compared with Q4 23 and up by +1% compared with Q3 24. Net interest income grew by +36% vs. Q4 23 and +3% vs. Q3 24. Fee income rose by +9% relative to Q4 23.

Over the year, revenues reached EUR 8,657 million, up by +8% compared with 2023 (including PEL/CEL provision). Net interest income was up by +21% vs. 2023. Fees increased by +3% relative to 2023.

Operating expenses

Over the quarter, operating expenses came to EUR 1,672 million, down -1% compared to Q4 23. The cost-to-income ratio reached 73.7% in Q4 24 and improved by 12 percentage points vs. Q4 23.

Over the year, operating expenses totalled EUR 6,634 million, decreasing by -2% vs. 2023. The cost-to-income ratio stood at 76.6% and improved by 7.3 percentage points compared with 2023.

Cost of risk

Over the quarter, the cost of risk amounted to EUR 115 million, or 20 basis points, down compared with Q3 24 (30 basis points).

Over the year, the cost of risk totalled EUR 712 million, or 30 basis points.

Group net income

Over the quarter, Group net income totalled EUR 360 million. RONE stood at 9.1% in Q4 24.

Over the year, Group net income totalled EUR 991 million. RONE stood at 6.3% for the year.

GLOBAL BANKING AND INVESTOR SOLUTIONS

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	2,457	2,185	+12.4%	+11.6%*	10,122	9,642	+5.0%	+4.8%*
Operating expenses	(1,644)	(1,601)	+2.7%	+2.0%*	(6,542)	(6,788)	-3.6%	-3.7%*
Gross operating income	812	584	+39.0%	+37.9%*	3,580	2,854	+25.4%	+25.0%*
Net cost of risk	(97)	(38)	x 2.5	x 2.5*	(126)	(30)	x 4.2	x 4.3*
Operating income	715	546	+31.0%	+30.1%*	3,455	2,824	+22.3%	+21.9%*
Group net income	627	467	+34.4%	+33.0%*	2,788	2,280	+22.2%	+21.7%*
RONE	16.6%	12.2%	+0.0%	+0.0%*	18.4%	14.8%	+0.0%	+0.0%*
Cost to income	66.9%	73.3%	+0.0%	+0.0%*	64.6%	70.4%	+0.0%	+0.0%*

Net banking income

Global Banking & Investor Solutions delivered an excellent fourth quarter, with revenues up by +12.4% compared with Q4 23, at EUR 2,457 million.

Over 2024, revenues reached a record¹⁴ level of EUR 10,122 million, up by +5.0% vs. FY23, owing to excellent momentum across all business lines.

Global Markets and Investor Services recorded a sharp rise in revenues over the quarter vs Q4 23 of +9.8% to EUR 1,493 million. Over 2024, they totalled EUR 6,557 million, up by +4.5% vs. FY 2023. This growth is the result of solid performance across all activities.

Global Markets posted both a record fourth quarter and a record¹ year with revenues, respectively, of EUR 1,332 million, up +9.5% vs. Q4 23, and EUR 5,884 million, up +5.6% vs. 2023, in a market environment that remains conducive.

The Equities business delivered an excellent performance, with both a record year and fourth quarter. In Q4 24, revenues amounted to EUR 831 million, a steady increase of +10.0% vs. Q4 23, benefiting from a strong commercial dynamic post US elections especially in flow, listed products and financing activities. Over 2024, revenues increased sharply by +12.2% versus 2023 to EUR 3,569 million.

Fixed Income and Currencies grew by +8.8% to EUR 501 million in Q4 24, thanks to a solid performance across all products, with an increased client engagement across Corporates and Financial Institutions following the impact of the US elections on rates and currencies. In addition, European rates and currencies franchise outperformed, together with solid secured financing opportunities in the Americas. Over 2024, revenues decreased slightly by -3.2% to EUR 2,315 million.

Securities Services’ revenues were sharply up by +12.4% versus Q4 23 at EUR 162 million but increased by +4.8% excluding the impact of equity participations. The business continued to reap the benefit of a positive fee generation trend and robust momentum in fund distribution, especially in France and Italy. Over 2024, revenues were down by -4.0%, but up by +2.8% excluding equity participations. Assets under Custody and Assets under Administration amounted to EUR 4,921 billion and EUR 623 billion, respectively.

The Financing and Advisory business posted revenues of EUR 964 million, up by +16.7% vs. Q4 23. Over 2024, revenues totalled EUR 3,566 million, up by +5.8% vs. 2023.

The Global Banking & Advisory business grew steadily by +13.7% compared with Q4 23 with a double digit increase in fees vs. Q4 23 driven by strong origination and distribution volumes in Fund Financing and Structured Finance. The rebound in M&A and Advisory continued in the fourth quarter with a strong increase in revenues. This is the second best quarter ever in terms of revenues, close to record Q4 22. Over 2024, revenues grew by +3.2% vs. 2023.

The Global Transaction & Payment Services business once again delivered an excellent performance compared with Q4 23. The sharp increase in revenues of +26.1% was driven by solid commercial momentum in all activities, as well as a high level of fee generation, led by a strong performance in correspondent banking. Over 2024, revenues saw a steady increase of +13.9%. This represents a record year and fourth quarter.

Operating expenses

Operating expenses came out to EUR 1,644 million for the quarter, including around EUR 32 million in transformation costs. They are up by +2.7% relative to Q4 23. The cost-to-income ratio came to 66.9% in Q4 24.

Over 2024, operating expenses decreased by -3.6% compared with 2023 and the cost-to-income ratio came to 64.6%.

Cost of risk

Over the quarter, the cost of risk was EUR 97 million, or 24 basis points vs. 9 basis points in Q4 23.

Over 2024, the cost of risk was EUR 126 million, or 8 basis points.

Group net income

Group net income recorded strong growth, up by +34.4% vs. Q4 23 to EUR 627 million. Over 2024, Group net income rose sharply by +22.2% to EUR 2,788 million.

Global Banking and Investor Solutions reported significant RONE of 16.6% over the quarter and 18.4% over 2024.

MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	2,056	2,016	+2.0%	+6.7%*	8,458	8,507	-0.6%	-3.8%*
Operating expenses	(1,240)	(1,281)	-3.2%	+0.8%*	(5,072)	(4,760)	+6.6%	+1.7%*
Gross operating income	816	734	+11.1%	+17.0%*	3,386	3,747	-9.6%	-10.9%*
Net cost of risk	(133)	(137)	-2.5%	+2.2%*	(705)	(486)	+45.1%	+43.5%*
Operating income	682	598	+14.2%	+20.4%*	2,681	3,261	-17.8%	-19.1%*
Net income/expense from other assets	(2)	(12)	+86.1%	+84.3%*	96	(11)	n/s	n/s
Non-controlling interests	203	152	+33.1%	+39.6%*	826	826	-0.1%	-7.1%*
Group net income	314	284	+10.5%	+16.1%*	1,270	1,609	-21.1%	-20.0%*
RONE	12.0%	11.0%			12.2%	16.6%
Cost to income	60.3%	63.6%			60.0%	56.0%

⁽²⁾()

Commercial activity

International Retail Banking

International Retail Banking¹⁵ activity remained strong in Q4 24 with outstanding loans at EUR 59 billion, up by +3.4%* vs. Q4 23 and deposits at EUR 74 billion, up by +3.9%* vs. Q4 23.

Europe continues to post good commercial performance for both entities in individual and corporate client segments. With EUR 43 billion in Q4 24, outstanding loans increased by 4.9%* vs. Q4 23, across segments in Romania and more particularly in home loans in the Czech Republic. Outstanding deposits totalled EUR 55 billion in Q4 24, up by +3.8%* vs. Q4 23, mostly driven by Romania.

In the Africa, Mediterranean Basin and Overseas France network, outstanding loans were stable* vs. Q4 23, with EUR 16 billion in Q4 24, on the back of the good performance in retail. Outstanding deposits of EUR 20 billion in Q4 24 increased by 4.0%* vs. Q4 23, mainly driven by sight deposits in retail.

Mobility and Financial Services

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

Ayvens’ earning assets totalled EUR 53.6 billion at end-December 2024, a +2.9% increase vs. end-December 2023.

Consumer Finance posted outstandings of EUR 23 billion in Q4 24, still down by -4.0% vs. Q4 23.

With EUR 15 billion in Q4 24, Equipment Finance outstandings slightly decreased by -1.4% vs. Q4 23.

Net banking income

Over the quarter, Mobility, International Retail Banking and Financial Services’ revenues rose by +2.0% vs. Q4 23 to EUR 2,056 million in Q4 24.

Over the year, revenues were stable compared with 2023 at EUR 8,458 million.

International Retail Banking revenues reached EUR 1,029 million, up by +3.4%* vs. Q4 23. Over 2024, revenues amounted to EUR 4,161 million, up by 3.8%* vs. 2023.

Revenues in Europe, which amounted to EUR 539 million in Q4 24, rose by +6.4%* vs. Q4 23, driven by the +3.5%* increase in net interest income for both KB in Czech Republic and BRD in Romania. Fee income increased strongly over the quarter in the Czech Republic, up by +29.5%* vs. Q4 23. Over 2024, revenues improved by +2.8%* vs. 2023 at EUR 2,028 million.

The Africa, Mediterranean Basin and French Overseas network maintained a sustained level of revenues in Q4 24 of EUR 490 million, stable* vs. Q4 23, mainly driven by fee growth. Over 2024, revenues improved by +4.8%* vs. 2023 at EUR 2,133 million.

Overall, revenues from Mobility and Financial Services were up by 8.3% vs. Q4 23 at EUR 1,026 million. They remained stable vs. 2023, at EUR 4,298 million in 2024.

At Ayvens, net banking income stood at EUR 707 million in Q4 24, a sharp increase of +16,3% vs. Q4 23 as reported, and of +2.0% adjusted for non-recurring items¹⁶. The amount of margins stood at 541 basis points, generating revenues up +12%¹ vs. T4-23. The used car sales markets are gradually normalising, as expected, with an average Used Car Sale (UCS) result per unit of EUR 1,267¹ per unit this quarter, vs. EUR 1,420¹ in Q3 24 and EUR 1,706¹ in Q4 23. In 2024, Ayvens posted an increase in revenues of +1.2% vs. 2023 (at EUR 3,015 million), with an increase in underlying margins.

The Consumer Finance entities posted revenues of EUR 216 million in Q4 24, still down by -4.2% vs. Q4 23. These are stabilizing from Q3 24, with an improvement in the margin for new production. Revenues from the Equipment Finance business was down this quarter by -9.3% vs. Q4 23, with EUR 103 million in Q4 24. In 2024, overall revenues for both businesses decreased by -4.0% vs. 2023.

Operating expenses

Over the quarter, operating expenses remained contained at EUR 1,240 million (-3.2% vs. Q4 23, stable* at constant perimeter and exchange rates). The cost-to-income ratio stood at 60.3% in Q4 24 vs. 63.6% in Q4 23.

Over the year, operating expenses came to EUR 5,072 million, up by +6.6% vs. 2023. They include transformation costs of around EUR 200 million.

International Retail Banking recorded an increase in costs of +4.8%* vs. Q4 23 (down by -2.1% at current perimeter and exchange rates, to EUR 577 million in Q4 24), still including the new bank tax in Romania, implemented since January 2024.

Mobility and Financial Services costs reached EUR 663 million in Q4 24, down by -4.2% vs. Q4 23.

Cost of risk

Over the quarter, the cost of risk amounted to EUR 133 million or 32 basis points, which was considerably lower than in Q3 24 (48 basis points).

Over the year, the cost of risk normalised to a level of 42 basis points, compared with 32 basis points in 2023.

Group net income

Over the quarter, Group net income came out to EUR 314 million, up by +10.5% vs. Q4 23. RONE stood at 12.0% in Q4 24. RONE was 16.3% in International Retail Banking, and 9.1% in Mobility and Financial Services in Q4 24.

Over 2024, Group net income came out to EUR 1,270 million, down by -21.1% vs. 2023. RONE stood at 12.2% in 2024. RONE was 16.4% in International Retail Banking, and 9.4% in Mobility and Financial Services in 2024.

CORPORATE CENTRE

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	(159)	(207)	+23.4%	+24.4%*	(450)	(1,098)	+59.0%	+59.6%*
Operating expenses	(39)	(101)	-61.8%	-61.8%*	(224)	(220)	+1.6%	+1.4%*
Gross operating income	(197)	(308)	+36.0%	+36.5%*	(674)	(1,318)	+48.9%	+49.5%*
Net cost of risk	7	(23)	n/s	n/s	12	(4)	n/s	n/s
Net income/expense from other assets	(7)	(15)	+51.3%	+51.3%*	(179)	(111)	-61.3%	-61.4%*
Income tax	(37)	(45)	-17.9%	-16.6%*	81	(130)	n/s	n/s
Group net income	(261)	(412)	+36.7%	+37.0%*	(848)	(1,994)	+57.5%	+57.8%*

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 -159 million, vs. EUR – 207 million in Q4 23.

Over the year, the Corporate Centre’s net banking income totalled EUR -450 million, vs. EUR – 1,098 million in 2023. It includes the booking in Q3 24 of exceptional proceeds received of approximately EUR 0.3 billion¹⁷.

Operating expenses

Over the quarter, operating expenses totalled EUR -39 million, vs. EUR -101 million in Q4 23.

Over the year, operating expenses totalled EUR -224 million, vs. EUR -220 million in 2023.

Net losses from other assets

Pursuant notably to the application of IFRS 5, the Group booked in Q4 24 various impacts from ongoing disposals of assets.

Group net income

Over the quarter, the Corporate Centre’s Group net income totalled EUR -261 million, vs. EUR -412 million in Q4 23.

Over the year, the Corporate Centre’s Group net income totalled EUR -848 million, vs. EUR -1,994 million in 2023.

To be noted that starting from 2025, normative return to businesses will be based on a 13% capital allocation.

8. 2024 AND 2025 FINANCIAL CALENDAR

2025 Financial communication calendar

April 30, 2025 First quarter 2025 results
May 20, 2025 2024 Combined General Meeting
May 26, 2025 Dividend detachment
May 28, 2025 Dividend payment
July 31, 2025 Second quarter and first half 2025 results
October 30, 2025 Third quarter and nine months 2025 results

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	Q4 24	Q4 23	Variation	2024	2023	Variation
French Retail, Private Banking and Insurance	360	90	x 4.0	991	596	+66.2%
Global Banking and Investor Solutions	627	467	+34.4%	2,788	2,280	+22.2%
Mobility, International Retail Banking & Financial Services	314	284	+10.5%	1,270	1,609	-21.1%
Core Businesses	1,301	841	+54.7%	5,048	4,486	+12.5%
Corporate Centre	(261)	(412)	+36.7%	(848)	(1,994)	+57.5%
Group	1,041	429	x 2.4	4,200	2,492	+68.6%

MAIN EXCEPTIONAL ITEMS

In EURm	Q4 24	Q4 23	12M24	12M23
Net Banking Income – Total exceptional items	0	41	287	(199)
One-off legacy items – Corporate Centre	0	41	0	(199)
Exceptional proceeds received – Corporate Centre	0	0	287	0

Operating expenses – Total one-off items and transformation charges	(76)	(102)	(613)	(765)
Transformation charges	(76)	(102)	(613)	(730)
Of which French Retail, Private Banking and Insurance	7	18	(132)	(312)
Of which Global Banking & Investor Solutions	(32)	(64)	(236)	(167)
Of which Mobility, International Retail Banking & Financial Services	(51)	(56)	(199)	(251)
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	(7)	(115)	(74)	(820)
Net profits or losses from other assets	(7)	(15)	(74)	(112)
Of which Mobility, International Retail Banking and Financial Services	0	0	86	0
Of which Corporate Centre	(7)	(15)	(160)	(112)
Goodwill impairment – Corporate Centre	0	0	0	(338)
Provision of Deferred Tax Assets – Corporate Centre	0	(100)	0	(370)

CONSOLIDATED BALANCE SHEET

In EUR m	31/12/2024	31/12/2023
Cash, due from central banks	201,680	223,048
Financial assets at fair value through profit or loss	526,048	495,882
Hedging derivatives	9,233	10,585
Financial assets at fair value through other comprehensive income	96,024	90,894
Securities at amortised cost	32,655	28,147
Due from banks at amortised cost	84,051	77,879
Customer loans at amortised cost	454,622	485,449
Revaluation differences on portfolios hedged against interest rate risk	(292)	(433)
Insurance and reinsurance contracts assets	615	459
Tax assets	4,687	4,717
Other assets	70,903	69,765
Non-current assets held for sale	26,426	1,763
Investments accounted for using the equity method	398	227
Tangible and intangible fixed assets	61,409	60,714
Goodwill	5,086	4,949
Total	1,573,545	1,554,045

In EUR m	31/12/2024	31/12/2023
Due to central banks	11,364	9,718
Financial liabilities at fair value through profit or loss	396,614	375,584
Hedging derivatives	15,750	18,708
Debt securities issued	162,200	160,506
Due to banks	99,744	117,847
Customer deposits	531,675	541,677
Revaluation differences on portfolios hedged against interest rate risk	(5,277)	(5,857)
Tax liabilities	2,237	2,402
Other liabilities	90,786	93,658
Non-current liabilities held for sale	17,079	1,703
Insurance and reinsurance contracts liabilities	150,691	141,723
Provisions	4,085	4,235
Subordinated debts	17,009	15,894
Total liabilities	1,493,957	1,477,798
Shareholder’s equity	–	–
Shareholders’ equity, Group share	–	–
Issued common stocks and capital reserves	21,281	21,186
Other equity instruments	9,873	8,924
Retained earnings	33,863	32,891
Net income	4,200	2,493
Sub-total	69,217	65,494
Unrealised or deferred capital gains and losses	1,039	481
Sub-total equity, Group share	70,256	65,975
Non-controlling interests	9,332	10,272
Total equity	79,588	76,247
Total	1,573,545	1,554,045

10. APPENDIX 2: METHODOLOGY

1 –The financial information presented for the fourth quarter and full year 2024 was examined by the Board of Directors on February 5^th, 2025 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress.

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 non-performing loan 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		Q4 24	Q4 23	2024	2023
French Retail, Private Banking and Insurance	Net Cost Of Risk	115	163	712	505
	Gross loan Outstandings	233,298	240,533	235,539	246,701
	Cost of Risk in bp	20	27	30	20
Global Banking and Investor Solutions	Net Cost Of Risk	97	38	126	30
	Gross loan Outstandings	160,551	168,799	162,749	169,823
	Cost of Risk in bp	24	9	8	2
Mobility, International Retail Banking & Financial Services	Net Cost Of Risk	133	137	705	486
	Gross loan Outstandings	167,911	164,965	167,738	150,161
	Cost of Risk in bp	32	33	42	32
Corporate Centre	Net Cost Of Risk	(7)	23	(12)	4
	Gross loan Outstandings	25,730	23,075	24,700	20,291
	Cost of Risk in bp	(11)	40	(5)	2
Societe Generale Group	Net Cost Of Risk	338	361	1,530	1,025
	Gross loan Outstandings	587,490	597,371	590,725	586,977
	Cost of Risk in bp	23	24	26	17

The gross coverage ratio for non-performing loan 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 (“non-performing loans”).

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)	Q4 24	Q4 23	2024	2023
Shareholders’ equity Group share	70,256	65,975	70,256	65,975
Deeply subordinated and undated subordinated notes	(10,526)	(9,095)	(10,526)	(9,095)
Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(25)	(21)	(25)	(21)
OCI excluding conversion reserves	757	636	757	636
Distribution provision⁽²⁾	(1,740)	(995)	(1,740)	(995)
Distribution N-1 to be paid	–	–	–	–
Equity end-of-period for ROE	58,722	56,500	58,722	56,500
Average equity for ROE	58,204	56,607	57,223	56,396
Average Goodwill⁽³⁾	(4,192)	(4,068)	(4,108)	(4,011)
Average Intangible Assets	(2,883)	(3,188)	(2,921)	(3,143)
Average equity for ROTE	51,129	49,351	50,194	49,242

Group net Income	1,041	430	4,200	2,493
Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation	(199)	(215)	(720)	(759)
Cancellation of goodwill impairment	–	–	–	338
Adjusted Group net Income	842	215	3,480	2,073
ROTE	6.6%	1.7%	6.9%	4.2%

¹⁸¹⁹²⁰

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

In EURm	Q4 24	Q4 23	Change	2024	2023	Change
French Retail , Private Banking and Insurance	15,731	15,445	+1.9%	15,634	15,454	+1.2%
Global Banking and Investor Solutions	15,129	15,247	-0.8%	15,147	15,426	-1.8%
Mobility, International Retail Banking & Financial Services	10,460	10,313	+1.4%	10,433	9,707	+7.5%
Core Businesses	41,320	41,006	+0.8%	41,214	40,587	+1.5%
Corporate Center	16,884	15,601	+8.2%	16,009	15,809	+1.3%
Group	58,204	56,607	+2.8%	57,223	56,396	+1.5%

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:
²¹²²

End of period (in EURm)	2024	2023	2022
Shareholders’ equity Group share	70,256	65,975	66,970
Deeply subordinated and undated subordinated notes	(10,526)	(9,095)	(10,017)
Interest of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(25)	(21)	(24)
Book value of own shares in trading portfolio	8	36	67
Net Asset Value	59,713	56,895	56,996
Goodwill⁽²⁾	(4,207)	(4,008)	(3,652)
Intangible Assets	(2,871)	(2,954)	(2,875)
Net Tangible Asset Value	52,635	49,933	50,469

Number of shares used to calculate NAPS⁽³⁾	796,498	796,244	801,147
Net Asset Value per Share	75.0	71.5	71.1
Net Tangible Asset Value per Share	66.1	62.7	63.0

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)	2024	2023	2022
Existing shares	801,915	818,008	845,478
Deductions
Shares allocated to cover stock option plans and free shares awarded to staff	4,402	6,802	6,252
Other own shares and treasury shares	2,344	11,891	16,788
Number of shares used to calculate EPS⁽⁴⁾	795,169	799,315	822,437
Group net Income (in EUR m)	4,200	2,493	1,825
Interest on deeply subordinated notes and undated subordinated notes (in EUR m)	(720)	(759)	(596)
Adjusted Group net income (in EUR m)	3,480	1,735	1,230
EPS (in EUR)	4.38	2.17	1.50

²³²⁴
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 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.

¹ Based on the number of shares in circulation at 31 December 2024 excluding own shares, subject to usual approvals from the General Meeting
² Reported Group net income, after deduction of interest on deeply subordinated notes and undated subordinated notes, restated from non-cash items that have no impact on CET1 ratio
³ Excluding assets sold
⁴ Ratio calculated according to EBA methodology published on 16 July 2019
⁵ Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5 (in particular Société Générale Equipment Finance, SG Marocaine de Banques and La Marocaine Vie)
⁶ Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
⁷ The share buyback programme and the subsequent capital reduction, aim also, and in priority, at fully offsetting the dilutive impact of the future capital increase as part of the next Group Employee Share Ownership Plan, the principle of which was adopted by the Board of Directors on February 5, 2025
⁸ Scopes 1 & 2 of corporate clients’ financed emissions
⁹Target: -80% upstream exposure reduction by 2030 vs. 2019, with an intermediary step in 2025 at -50% vs. 2019
¹⁰ The target is to have at least 35% of women executives by 2026
¹¹Including IFRS 9 phasing
¹²France and International (including Switzerland and the United Kingdom)
¹³ Banking App #1 in France and #2 worldwide based on Sia Partners International Mobile Banking Benchmark in October 2024
¹⁴ At comparable business model in the post Global Financial Crisis (GFC) regulatory regime

¹⁵ Including entities reported under IFRS 5, excluding entities sold in Morocco and Madagascar in December 2024
¹⁶ Excluding non-recurring items on either margins or UCS (mainly linked to fleet revaluation at EUR 107m in Q4 23 vs. EUR 0m in Q4 24, prospective depreciation at EUR -191m in Q4 23 vs. EUR -87m in Q4 24, hyperinflation in Turkey at EUR -27m in Q4 23 vs. EUR -40m in Q4 24 and MtM of derivatives at EUR -137m in Q4 23 vs. EUR -2m in Q4 24)

¹⁷ As stated in Q2 24 results press release
¹⁸ Interest net of tax
¹⁹ Based on the 2024 proposed distribution, subject to usual approvals of the General Meeting
²⁰ Excluding goodwill arising from non-controlling interests
²¹ Interest net of tax
²² Excluding goodwill arising from non-controlling interests
²³ The number of shares considered is the number of ordinary shares outstanding at the end of the period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)
²⁴ 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-Q4-2024-Financial-Results-Press-release-en

The MIL Network –

February 6, 2025

MIL-OSI Video: Tariffs, globalization, and democracy, with Harvard economist Dani Rodrik

Source: World Economic Forum (video statements)

Dani Rodrik has long argued against unfettered globalization and supports countries’ use of industrial policy to pursue economic development.

The Harvard economist joins us to talk about the usefulness and limitations of trade tariffs, economic nationalism, and the impact of global economics on democracy.

Catch up on all the action from the Annual Meeting 2025 at wef.ch/wef25 (http://wef.ch/wef25) and across social media using the hashtag #WEF25.

Links:

World Economic Forum Centre for Regions, Trade and Geopolitics (https://centres.weforum.org/centre-for-regions-trade-and-geopolitics/home) : https://centres.weforum.org/centre-for-regions-trade-and-geopolitics/home From Blind Spots to Insights: Enhancing Geopolitical Radar to Guide Global Business: https://www.weforum.org/publications/from-blind-spots-to-insights-enhancing-geopolitical-radar-to-guide-global-business/ Related podcasts:

What just happened in Davos, and how is the world different now? (https://www.weforum.org/podcasts/radio-davos/episodes/davos-2025-what-just-happened/) The global economy ‘at a crossroads’ ahead of Davos: Chief Economists Outlook (https://www.weforum.org/podcasts/radio-davos/episodes/chief-economists-outlook-ralph-ossa-wto/)

Global Risks Report: the big issues facing the world at Davos 2025 (https://www.weforum.org/podcasts/radio-davos/episodes/global-risks-report-2025/)

IMF’s Gita Gopinath: What’s ahead for economic growth in 2025 (https://www.weforum.org/podcasts/meet-the-leader/episodes/gita-gopinath-imf-economic-outlook/)

Check out all our podcasts on wef.ch/podcasts (http://wef.ch/podcasts) :

YouTube: (https://www.youtube.com/@wef/podcasts) – https://www.youtube.com/@wef/podcasts

Radio Davos (https://www.weforum.org/podcasts/radio-davos) – subscribe (https://pod.link/1504682164) : https://pod.link/1504682164

Meet the Leader (https://www.weforum.org/podcasts/meet-the-leader) – subscribe (https://pod.link/1534915560) : https://pod.link/1534915560

Agenda Dialogues (https://www.weforum.org/podcasts/agenda-dialogues) – subscribe (https://pod.link/1574956552) : https://pod.link/1574956552

Join the World Economic Forum Podcast Club (https://www.facebook.com/groups/wefpodcastclub) : https://www.facebook.com/groups/wefpodcastclub

https://www.youtube.com/watch?v=w_Mj61EUEFg

MIL OSI Video –

February 6, 2025
MIL-OSI Economics: Regarding some media reports on the use of the Panasonic name and brand

Source: Panasonic

Headline: Regarding some media reports on the use of the Panasonic name and brand

Panasonic Holdings Corporation held a briefing on February 4 for the mass media, institutional investors and analysts regarding Group Management’s Planned Reform of Panasonic Group.
Unfortunately, this has generated some misleading press coverage regarding the use of the Panasonic name and brand. The information announced on February 4 concerned the reorganization of “Panasonic Corporation,” which provides home appliances, housing equipment, and products and services for stores and offices under the umbrella of Panasonic Holdings Corporation. Importantly, the Panasonic Group will not be dissolved.
Furthermore, the Panasonic brand is a vital asset for the group, and the Panasonic Group will continue to transform itself into a corporate structure that contributes to customers and society in the future under this important brand.

The content in this website is accurate at the time of publication but may be subject to change without notice.Please note therefore that these documents may not always contain the most up-to-date information.Please note that German, French and Chinese versions are machine translations, so the quality and accuracy may vary.

MIL OSI Economics –

February 6, 2025
MIL-OSI Australia: Address to OECD International Workshop on Rigorous Impact Evaluation Approaches including Randomised Controlled Trials

Source: Australian Treasurer

As is customary in Australia, I acknowledge the Ngunnawal people, on whose lands I am recording these remarks, and all First Nations people joining this international workshop.

Thank you to our OECD Public Management and budgeting colleagues, Jon Blondal, Andrew Blazey and the team for helping to coordinate this event and offering me the opportunity to provide this opening address. This event is being run by the OECD in collaboration with the Australian Centre for Evaluation in the Department of the Treasury. The Australian Government is delighted to be contributing to global efforts to advocate for better evidence. And we are keen to connect with international endeavours that promote its generation, synthesis and sharing in public policy.

Today, I want to discuss how countries can collaborate to better create and use evidence. This is a substantial reform. Indeed, I argue that randomised trials and better use of evidence isn’t just another worthy public policy tweak. It’s bigger than that. Much bigger. Effectively using evidence to make policy decisions is a public administration reform on par with the biggest changes in good government that humanity has put into place. It is the seventh phase of good government.

Let’s take a quick moment to run through the major milestones in the history of public administration.

Six big reforms in the history of public administration

Throughout history, there have been 6 big reforms in public administration.

The first was the rise of bureaucracy and professionalised governance. It was during the 18th and 19th centuries that public administration shifted from patronage and informal systems to emphasising impartiality, specialisation, and accountability. Democratic institutions and a robust civil society provided the conditions for an independent and accountable civil service.

The second big reform occurred in the early 20th century. The efficiency revolution – scientific management of public administration that focused on efficiency and rational organisation – was inspired by industrial principles.

In response to economic crises and post‑WWII recovery, we saw the rise of the third big reform – the welfare state and the expansion of government responsibilities in social welfare, healthcare and economic planning.

The fourth big reform in public administration in the late 20th century was market‑oriented governance. We saw governments adopt private‑sector practices like outsourcing, performance metrics, and competition.

Concerns about accountability also carried through to the fifth big historic reform – the era of digital transformation and e‑governance. The early 21st century saw technology revolutionise public administration. It enabled data‑driven decision‑making and citizen engagement.

Building on the lessons learnt during the digital transformation, the past decade has seen the move towards adaptive governance – the sixth big reform in public administration. Top‑down processes were swapped out for more flexible, collaborative and cross‑sector approaches that embrace ‘long‑term systems thinking’ to address interconnected crises such as climate change (Brunner and Lynch 2017).

Each of these 6 big reforms from the past 3 centuries has helped to reshape government and improve citizens’ lives.

The seventh big reform in public administration: randomised trials

Today I want to argue that we are on the cusp of a seventh big reform in public administration.

It will involve the widespread adoption of randomised trials as a means of testing policies by providing a counterfactual.

This reform should include the synthesis of quality evidence about what works, and what doesn’t, to provide public administrators with irrefutable knowledge that can improve people’s lives.

Let’s consider a couple of examples to see how this might work in practice.

Eye care is often a neglected field of public health in developing economies.

In rural Bangladesh, a randomised trial of providing free reading glasses involved more than 800 adults with jobs requiring close attention to detail, such as tea pickers, weavers, and seamstresses (Jacobs 2024). The study found that when workers were given free reading glasses, they earned 33 per cent more than those who were not given glasses (Sehrin et al. 2024).

Speaking to The New York Times, Dr Nathan Congdon, one of the authors of the study findings, said that ‘…what makes the results especially exciting is the potential to convince governments that vision care interventions are as inexpensive, cost‑effective and life‑changing as anything else that we can offer in healthcare’ (Jacobs 2024).

As well as garnering evidence on what does work, the widespread adoption of randomised trials must also include quality evidence about what doesn’t work.

In 2014, the US state of Massachusetts launched a 4‑year intervention program called the Juvenile Justice Pay for Success Initiative (Patrick DL 2014). The program aimed to reduce recidivism and improve employment outcomes in young men who were at high risk of re‑offending (Third Sector 2024).

The initiative involved an experimental financial contract called ‘Pay For Success’ – also known as a social impact bond. Funders assumed the US$27 million up‑front financial risk. And the government would only refund the cost of the program if a third‑party evaluator and validator determined that the initiative achieved a reduction in the number of days the young men spent in jail, and improvements in their employment and job readiness (Patrick DL 2014).

At the end of the 4‑year program, a randomised trial found no discernible effects on reincarceration or employment (Coalition for Evidence‑Based Policy 2025). Neither the recidivism nor employment outcomes were sizable enough to trigger the repayment under the pay‑for‑success contract (Roca et al. 2025).

Why randomised trials should be prioritised over other forms of evaluation

When the evaluation of a social program does not produce the hoped‑for results, it’s difficult to avoid feelings of disappointment.

But this has been the reality for some time.

We know from the history of large, well‑conducted randomised trial evaluations that only a small percentage find that the intervention being evaluated produces a meaningful improvement over the status quo.

As Peter Rossi attested in his 1987 Iron Law of Evaluation, ‘The expected value of any net impact assessment of any large‑scale social program is zero’ (Arnold Ventures 2018a).

But here’s the light on the hill.

The ‘iron law’ applies to most fields of research. That includes medicine, where 50–80 per cent of positive results from initial clinical studies are overturned by a subsequent randomised trial (Arnold Ventures 2018a).

In medicine, the move towards randomised trials continues to save lives and stop unnecessary interventions.

For every new treatment such as AIDS drugs, the HPV vaccine and genetic testing – medicine has discarded old ones, like bloodletting, gastric freezing and tonsillectomy (Leigh 2018).

The willingness to test cures against placebos, or the best available alternative, is how we make progress. In public policy, we can do the same. If it works, we use it; if not, it’s back to the lab.

The central goal of evaluation: finding interventions that work

The key is having a big, ambitious goal to strive towards.

I propose the primary goal of government evaluation should be to find interventions that work.

More specifically – to build a body of programs backed by strong, replicated randomised trial evidence of important, lasting improvements in people’s lives.

In other words, evidence that provides policymakers with confidence that if another jurisdiction were to implement the program faithfully in a similar population, it would improve people’s lives in a meaningful way.

Imagine being able to confidently draw from a codified body of social programs and interventions that your jurisdiction could test, deploy and regulate.

In the United States, the Coalition for Evidence‑Based Policy points towards Saga Education, a high‑dosage mathematics tutoring program for year 9 and 10 students in low‑income US schools that underwent 3 rigorous randomised trials. This program produced sizable, statistically significant effects on students’ maths scores on the district tests at the end of the tutoring year (Arnold Ventures 2024a). I’ll come back to this program a bit later.

Similarly, the Coalition for Evidence‑Based Policy points to 2 job‑training programs for low‑income adults that were both shown to increase long‑term earnings by 20 to 40 per cent. These programs focused on the fast‑growing IT and financial services sectors, where jobs are well paid, and employees are in high demand (Arnold Ventures 2022a and 2022b).

Finding interventions that work should be evaluators’ central goal. It is the only plausible path by which rigorous evaluations will improve the human condition. If we don’t allocate spending based on rigorous evidence, it is hard to see how governments can make progress on critical social problems.

Here in Australia, a think tank study examined a sample of 20 Australian Government programs conducted between 2015 and 2022 (Winzar et al. 2023).

Their report concluded that 95 per cent of the programs, which had a total expenditure of over A$200 billion, were not properly evaluated. And its analysis of Australian state and territory government evaluations reported similar results.

The researchers noted that the problems with evaluation started from the outset of program and policy design. They also estimated that fewer than 1.5 per cent of government evaluations use a randomised design (Winzar et al. 2023).

This finding echoes the Australian Productivity Commission’s 2020 report into the evaluation of Indigenous programs (Productivity Commission 2020).

This report concluded that ‘both the quality and usefulness of evaluations of policies and programs affecting Aboriginal and Torres Strait Islander people are lacking’, and that ‘Evaluation is often an afterthought rather than built into policy design’ (Productivity Commission 2020).

Finding what works: using strong signals from prior research

If we accept that the central goal of evaluation is to find interventions that work, there are important implications for researchers and research funders.

It means that it makes sense to evaluate an intervention, using a large randomised trial, only if there is a strong signal in prior research.

Examples of prior research could include a pilot randomised trial, a high‑quality quasi‑experiment, or a randomised trial of a related program.

This is the approach that Arnold Ventures is taking in the US via the Coalition for Evidence‑Based Policy, the US nonprofit relaunched under the leadership of Jon Baron (Coalition for Evidence‑Based Policy n.d.).

Rigorous testing enabled Arnold Ventures to create a growing body of proven interventions in education and training (Coalition for Evidence‑Based Policy n.d.). It’s an approach also being used by the US Department of Education in its Investing in Innovation Fund, which was recently renamed the Education Innovation and Research Program. It has yielded a much higher success rate in identifying interventions with true effectiveness. In 2019, robust evidence standards used by the Fund (as it was at the time) resulted in positive impacts for 40 to 50 per cent of its larger grants.

Compare this to the US Department of Health and Human Services’ Teen Pregnancy Prevention Program, which had a much lower hit rate of success – just 17 per cent – for its larger grants (Arnold Ventures 2019).

Arnold Ventures (2018b) proposes a strategy for policy and researchers that involves 3 tiers of evidence – top, middle and low.

Expand the implementation of programs backed by strong (‘top tier’) evidence of sizable, sustained effects on important life outcomes.

Fund and/or conduct rigorous evaluations of programs backed by highly promising (‘middle tier’) evidence, to hopefully move them into the top tier.

Build the pipeline of promising programs through modest investments in the development and initial testing of many diverse approaches (as part of a ‘lower tier’).

This is about systematising our use of evidence: a familiar approach in medicine, but one that has not been standard practice for all policymakers.

It is about producing tangible proof that randomised policy trials improve lives, in that way that we already have tangible proof that randomised medical trials save lives.

As a specific example of this kind of approach, in the US state of Maryland, a partnership between Arnold Ventures and the state government is already scaling‑up proven programs.

In August last year, the high‑dosage maths tutoring program for 9th and 10th graders I mentioned earlier (Saga Education) and ASSISTments – an educational tool for mathematics – received scale‑up funding under the US$20 million Maryland Partnership for Proven Programs with Arnold Ventures (Arnold Ventures 2024b).

In the UK, the development of the What Works Network is a world‑leading achievement which owes credit to the network of evidence‑based policymakers. That includes the extraordinary David Halpern, who will be speaking on the panel shortly (for an excellent snapshot of his recommendations for the coming decade, see Halpern 2023).

Across health and housing, education and employment, hundreds of UK randomised trials have been conducted. For a practitioner, policymaker or curious member of the British public, it is now easier than ever to see what we know, and what we do not (Leigh 2024a).

For example, the Education Endowment Foundation has run literally hundreds of randomised trials in the education sector. It uses these findings, alongside rigorous evaluations conducted outside the UK, to advocate for evidence‑based education policies (Education Endowment Foundation n.d.).

The Education Endowment Foundation has commissioned 316 research projects (208 of which are randomised trials). Sixty per cent of schools in England have taken part in a randomised trial funded by the Foundation. Seventy per cent of school leaders use the Education Endowment Foundation’s teaching and learning toolkit when making their funding decisions on spending for pupils from disadvantaged backgrounds.

Here in Australia, we are committed to taking a stronger approach towards evidence‑based policymaking.

In July 2023 we established the Australian Centre for Evaluation in the Department of the Treasury.

The main role of the centre is to collaborate with other Australian Government departments to conduct rigorous evaluations, including randomised trials. Such agreements have already been forged with federal agencies responsible for employment, health, education and social services.

Led by Eleanor Williams, armed with a modest budget of A$2 million per year and just over a dozen staff, the Centre operates on smarts and gentle persuasion, not mandates or orders (Leigh 2024b).

No agency is forced to use the services of the Australian Centre for Evaluation, but all are encouraged to do so. This reflects the reality that evaluation, unlike audit, isn’t something that can be done as an afterthought. A high‑quality impact evaluation needs to be built into the design of a program from the outset (Leigh 2024b).

The centre takes an active role in considering aspects that are relevant to all evaluations, such as rigorous ethical review and access to administrative microdata. The Australian Bureau of Statistics is playing a pivotal role in brokering access to administrative data for policy experiments.

Collaboration with evaluation researchers outside of government is critical, too. Thanks to a joint initiative by the Centre and the Australian Education Research Organisation, we now have the Impact Evaluation Practitioners Network, which is bringing together government and external impact evaluators.

The centre has several randomised trials currently underway, and I await the results with interest.

In the next month, the centre will release a Randomised Controlled Trial Showcase Report, featuring examples of public policy‑related trials in Australia.

Another organisation doing extraordinarily thorough research across the whole of social policy and the social sciences is the nonprofit Campbell Collaboration.

For example, the Campbell Countering Violent Extremism evidence synthesis program is a global research initiative that is attracting attention here in Australia. The program originated from a 5‑country partnership of Australia, Canada, New Zealand, the UK and the US (Campbell Collaboration n.d.). Professor Lorraine Mazerolle from the University of Queensland is one of the principal investigators on the program (Campbell Collaboration n.d.).

Creating an experimenting society

Bringing a ‘what works’ philosophy to social policy is vital to helping the most vulnerable.

And it is by no means a new idea. It follows the path forged by the prominent social scientist Donald Campbell.

He is of course, the ‘Campbell’ in the Campbell Collaboration, which was named after him to honour his substantial contributions to social science and methodology.

Over 50 years ago, Dr Campbell wrote Methods for the Experimenting Society, outlining his vision for helping governments to produce better‑informed policies and social interventions via research and evaluation (Campbell 1991).^[1]

In this paper, Campbell forewarns policymakers of the ‘over‑advocacy trap’, where advocates of a new social program or policy make exaggerated claims about its effectiveness in order to get it adopted (Campbell 1991). He effectively highlights the tension between the need for strong advocacy to get social programs funded and adopted, and the need for rigorous evaluation to determine their true effectiveness (Campbell 1991).

Thirty years after Dr Campbell wrote Methods for the Experimenting Society, the US Department of Education was allocating over a billion US dollars each year to an after‑school program called the 21st Century Community Learning Center initiative.

The program, which was initiated in 1998, saw children attending the centres for up to 4 hours of after‑school programs, where they partook in everything from tutoring to drama to sports. It attracted high‑profile advocates, including the former Californian governor and Mr Universe, Arnold Schwarzenegger.

It’s no wonder then, that a randomised trial by Mathematica in 2003 startled everyone with its findings (Haskins 2009). Attending the after‑school program raised a child’s likelihood of being suspended from school (Leigh 2018). And there was no evidence that the after‑school program improved academic outcomes.

The program’s prominent advocates had fallen head‑first into the over‑advocacy trap.

Overcoming denial with collaboration and momentum

American political scientist Ron Haskins commented on how easy it was for Schwarzenegger to flex his celebrity muscle to overcome a negative evaluation. ‘The lesson here, yet again, is that good evidence does not speak for itself in the policy process and is only one – sometimes a rather puny – element in a policy debate’ (Haskins 2009).

Overcoming denial in the face of irrefutable evidence requires continuous collaboration and sustained momentum. In 2025 and beyond, we will need both to reach the tipping point on the widespread use of rigorous impact evaluation across public policy. It will be harder to run roughshod over good evidence if OECD nations continue to collaborate – both internally with non‑profit researchers outside of government, and externally with other nations.

Philanthropic foundations in the UK, US and other OECD nations have a strong track record in supporting randomised policy trials. Initiatives such as the Maryland Partnership for Proven Programs and Arnold Ventures, which I mentioned earlier, demonstrate that the ‘what works’ philosophy in social policy is gaining traction.

Here in Australia, the Paul Ramsay Foundation launched a A$2.1 million open grant round in 2024. Its structure is similar to a successful model that the Laura and John Arnold Foundation has deployed in the United States over the past decade (Leigh 2024c).

The grants, which last for 3 years and are valued at up to A$300,000 each, will support up to 7 experimental evaluations conducted by non‑profits with a social impact mission. For example, improving education outcomes for young people with disabilities, reducing domestic and family violence, or helping jobless people find work (Paul Ramsay Foundation 2024).

The Australian Centre for Evaluation supported the open grant round, and is helping to connect grantees with administrative data relevant to the evaluation, and I am excited to see what we learn from these studies (Leigh 2024b).

One of the most appealing advantages of well‑conducted randomised trials is that they resonate well with 3 democratic principles: non‑arbitrariness, revisability and public justification (Tanasoca and Leigh 2023).

This gives us good democratic reasons to seek out such evidence for policymaking. Indeed, the more democratic a regime is, the more likely it is to conduct randomised trials (Tanasoca and Leigh 2023).

Recall the first big public administration reform – the growth of a professionalised civil service – rested on the development of democratic institutions. Nobel laureates Daron Acemoglu and James Robinson call this the ‘red queen effect’, in which societies offering more public goods also need to offer more democratic social power (Acemoglu and Robinson 2019).

The seventh reform – randomised trials and evidence‑based policymaking – takes us further along the corridor. Things are not true simply because politicians assert them. Policies must be backed by evidence, and citizens must be able to test and trust that evidence.

Democracies are on this journey together, and international collaboration is vital to reaching the tipping point.

This is not about the performative use of words like ‘evaluation’ and ‘evidence’. It is about raising the quality and quantity of evidence, which is one reason that I keep referring to randomised trials. I acknowledge the work of the OECD towards achieving the goal of institutionalising rigorous evaluation across public policy areas, as per the OECD Recommendation of the Council on Public Policy Evaluation (OECD 2022).

The second annual update of the Global Commission on Evidence also confirms the many signs of momentum towards the Commission’s 3 implementation priorities to formalise and strengthen domestic evidence‑support systems, enhance and leverage the global evidence architecture, and put evidence at the centre of everyday life (Global Commission on Evidence 2024).

Conclusion

We’re here because we care about good government. And because we understand that evaluation and evidence science are not fields in their infancy.

Just as we don’t put homeopathy on the same level as science‑based medicine, it is a mistake to think that evidence‑free policy is on a par with evidence‑based policy.

OECD governments have decades of experience about how to identify evidence gaps, put policies to the test, and implement the most effective programs (Leigh 2024a).

Policymaking by focus groups and gut‑feel alone is the modern‑day equivalent of bloodletting and lobotomies in medicine (Leigh 2024a). Which is why the seventh big reform to public administration must focus on finding interventions that work. And on building a body of programs backed by strong, replicated randomised trial evidence of important, lasting improvements in people’s lives.

This goal requires OECD nations to get behind the momentum of the Global Commission on Evidence.

This will have massive benefits. It will save lives. It will save dollars. And it will make government work better.

So let’s make it happen.

My thanks to officials in the Australian Centre for Evaluation for valuable drafting assistance, and to Jon Baron, President and CEO of the Coalition for Evidence‑Based Policy, and David Halpern CBE, President Emeritus at the Behavioural Insights Team, for valuable discussions that helped shape this speech.

References

Acemoglu D and Robinson JA (2019) The Narrow Corridor: States, Societies, and the Fate of Liberty, Penguin, New York.

Arnold Ventures (21 March 2018a) ‘How to solve U.S. social problems when most rigorous program evaluations find disappointing effects (part one in a series)’, Straight Talk on Evidence, accessed 15 January 2025.

Arnold Ventures (13 April 2018b) ‘How to solve U.S. social problems when most rigorous program evaluations find disappointing effects (part 2 – a proposed solution)’, Straight Talk on Evidence, accessed 15 January 2025.

Arnold Ventures (18 June 2019) ‘Evidence‑Based Policy ‘Lite’ Won’t Solve U.S. Social Problems: The Case of HHS’s Teen Pregnancy Prevention Program’, Straight Talk on Evidence, accessed 15 January 2025.

Arnold Ventures (26 October 2022a) ‘Year Up’, Social Programs That Work, accessed 15 January 2025.

Arnold Ventures (21 March 2022b) ‘Per Scholas Employment/Training Program for Low-Income Workers’, Social Programs That Work, accessed 15 January 2025.

Arnold Ventures (11 July 2024a) ‘Saga Math Tutoring’, Social Programs That Work, accessed 15 January 2025.

Arnold Ventures (28 August 2024b) Governor Moore Announces $20 Million in Grants for Education Programs, First Awards Under Maryland Partnership for Proven Programs with Arnold Ventures [media release], Arnold Ventures, accessed 16 January 2025.

Australian Education Research Organisation (n.d.), About us, Australian Education Research Organisation website, accessed 22 January 2025.

Brunner R and Lynch A (2017) ‘Adaptive Governance’, Oxford Research Encyclopedia of Climate Science, doi:10.1093/acrefore/9780190228620.013.601.

Campbell Collaboration (n.d.) Our work, Campbell Collaboration website, accessed 16 January 2025.

Campbell Collaboration (n.d.) About the CVE programme, Campbell Collaboration website, accessed 21 January 2025.

Campbell DT (1991) ‘Methods for the Experimenting Society’, Evaluation Practice, 12(3):223–260.

Education Endowment Foundation (n.d.) How we work, Education Endowment Foundation website, accessed 22 January 2025.

Global Commission on Evidence to Address Societal Challenges (2024), ‘Global Evidence Commission update 2024: Building momentum in strengthening domestic evidence‑support systems, enhancing the global evidence architecture, and putting evidence at the centre of everyday life’ [PDF 5MB], McMaster Health Forum, Hamilton, accessed 17 January 2025.

Halpern D (2023) ‘Foreword’, in Sanders M and Breckon J (eds) The What Works Centres: Lessons and Insights from an Evidence Movement, Bristol University Press, Bristol.

Haskins R (17–18 August 2009) ‘Chapter 3 With a scope so wide: using evidence to innovate, improve, manage, budget’ [roundtablee presentation] Strengthening Evidence‑based Policy in the Australian Federation, Session 1 Evidence‑based policy: Its principles and development Canberra, accessed 16 January 2025.

Jacobs A (4 April 2024) ‘Glasses Improve Income, Not Just Eyesight’, The New York Times, accessed 15 January 2025.

Leigh A (2018) Randomistas: How Radical Researchers Changed Our World, Black Inc, Melbourne.

Leigh A (3 October 2024a) ‘Address to the UK Evaluation Task Force, 9 Downing Street, London’ [presentation], London, accessed 15 January 2025.

Leigh A (17 June 2024) ‘Address to the Australian Evaluation Showcase, Canberra’ [presentation], Australian Evaluation Showcase, Canberra, accessed 15 January 2025.

Leigh A (28 November 2024c) ‘Address to 10th Annual Social Impact Measurement Network Australia Awards’ [presentation], 10th Annual Social Impact Measurement Network Australia Awards, Virtual, accessed 17 January 2025.

OECD (Organisation for Economic Co‑operation and Development) (2022) Recommendation of the Council on Public Policy Evaluation, Adopted on 06/07/2022, OECD Legal Instruments, OECD/LEGAL/0478, accessed 17 January 2025.

Patrick DL (29 January 2014) Massachusetts Launches Landmark Initiative to Reduce Recidivism Among At‑Risk Youth [media release], Commonwealth of Massachusetts, accessed 14 January 2025.

Paul Ramsay Foundation (17 June 2024) ‘Experimental evaluation open grant round’, Paul Ramsay Foundation, accessed 17 January 2025.

Productivity Commission (2020) Indigenous Evaluation Strategy: Background Paper, Australian Government.

Roca Inc., Commonwealth of Massachusetts, and Third Sector Capital Partners (30 August 2024) Final Report: the Massachusetts Juvenile Justice Pay for Success project, accessed 14 January 2025.

Sehrin F, Jin L, Naher K, Chandra Das N, Chan VF, Li DF, Bergson S, Gudwin E, Clarke M, Stephan T and Congdon N (2024) ‘The effect on income of providing near vision correction to workers in Bangladesh: The THRIVE (Tradespeople and Hand‑workers Rural Initiative for a Vision‑enhanced Economy) randomized controlled trial’, PLOS ONE, 19(4):e0296115, doi:10.1371/journal.pone.0296115.

Tanasoca A and Leigh A (2024) ‘The Democratic Virtues of Randomized Trials’, Moral Philosophy and Politics, 22(1):113–140, doi:10.1515/mopp‑2022–0039.

Winzar C, Tofts‑Len S, Corpu E (2023) Disrupting disadvantage 3: Finding what works, Committee for Economic Development of Australia, Melbourne, accessed 16 January 2025.

Footnotes

^[1] Campbell’s paper was written around 1971 and used in presentations to the Eastern Psychological Association and the American Psychological Association. It was revised and first published in 1988 (see Campbell 1991).

MIL OSI News –

February 6, 2025
MIL-OSI Australia: MEDIA RELEASE: Unions till the soil for more extreme IR changes

Source: Australian Mines and Metals Association – AMMA

Resource sector employers are concerned trade union leaders are building the case for more extreme anti-business industrial relations changes ahead of this year’s federal election.

The Australian today reports the Australian Council of Trade Unions (ACTU) is lobbying the Albanese Government to ban employers from taking lockout action in response to industrial action by employees.

“The right to lock out striking employees is very rarely used as it ultimately hurts the business as well as penalises the workforce,” said AREEA Chief Executive Steve Knott AM.

“But when faced with extreme demands and damaging strikes, it may be the last response action left available to employers within Australia’s IR system.

“Employers are still reeling from three substantial packages of egregiously pro-union changes to Australia’s IR legislation passed during the Albanese Government’s first term.

“Unions can now force bargaining on employers without requiring the majority support of the workforce.

“They are incentivised to draw out disputes beyond nine months so they can get their enterprise agreement terms arbitrated by the Fair Work Commission; and they can threaten and organise strikes in support of multi-employer bargaining campaigns.

“These are all new features of the IR system that were not announced prior to the Government’s election in 2022 and were passed into law with very limited justification or consultation.

“We are already seeing a notable increase in industrial disputes. ABS data shows during the Albanese Government’s first term the average number of industrial disputes is up 25% and the average number of working days lost is up 53%, compared to the prior nine years of Coalition Government.

“Australian employers are facing greater employment costs and complexity than ever before and unprecedented third-party interference in the management of their workforces.

“Should the Government cede to the ACTU’s demands to limit or reduce lockouts – sometimes the last line of defence for besieged employers – it may as well ask businesses to hand over a blank cheque to militant unions to write their own terms and conditions.”

Despite the Government’s assurances of no further substantial legislative IR changes, Mr Knott said employers suspected a pipeline of further union demands should the ALP win a second term.

“Union wish-list items are likely to include non-member union bargaining fees and unfettered rights to strike at any time,” Mr Knott said.

“It’s also curious the ACTU would go public with this particular IR policy demand just days before the Government is set to be handed its report on the impacts of its first IR legislation amendment package – which included significant overhaul of Australia’s enterprise bargaining laws.

“These developments have employers very nervous about what the ACTU is planning for a potential second term of the Albanese Government.

“The Government should take this opportunity to categorically rule out any change to lockout provisions and restate its position on no additional amendments to IR laws.”

MIL OSI News –

February 6, 2025
MIL-OSI China: Experts: US curb against China to disrupt intl trade order

Source: China State Council Information Office

The United States government’s latest move to eliminate a “de minimis” tariff exemption for small packages and low-value items imported from China will disrupt the normal international trade order, wreak havoc in the fast-growing cross-border e-commerce industry, and ultimately hurt the interests of US consumers, said experts and industry insiders on Wednesday.

They added that in order to mitigate the negative impacts of escalating trade protectionism, China’s cross-border online retailers should strengthen the establishment of overseas warehouses, accelerate the localization of supply chains and operations, and diversify their business layouts in emerging markets.

Their comments came on the heels of the US decision to halt a trade exemption, known as “de minimis”, that allows exporters to ship packages worth less than $800 into the US duty-free. The decision came as part of the announcement of the imposition of an additional 10 percent tariff on goods from China.

The US Postal Service said on Tuesday that it had temporarily stopped accepting packages from the Chinese mainland and the Hong Kong Special Administrative Region, a move that may block or delay parcels from Chinese cross-border e-commerce platforms including Shein and PDD Holdings’ Temu, as well as some from Amazon, from entering the US.

However, the agency said later in a notice that it will resume accepting packages from the Chinese mainland and Hong Kong starting on Wednesday.

Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, said the US protectionist measures against China will not only increase the costs of cross-border transactions and hinder technological advancement and innovation in the global e-commerce landscape, but will also damage the interests of US consumers, especially low-income groups.

“The elimination of a small-package tax exemption will pose challenges to Chinese cross-border online marketplaces, and force these platforms to adjust pricing strategies and establish more local warehousing and logistics facilities in overseas markets, in order to reduce dependence on cross-border transportation and lower international logistics costs,” Hong said.

In response to the US Postal Service’s temporary suspension of the acceptance of incoming international parcels from the Chinese mainland and Hong Kong, Foreign Ministry spokesman Lin Jian said at a news conference on Wednesday that the US should stop politicizing and instrumentalizing trade and cracking down on Chinese companies.

Lin said China will continue to take necessary measures to safeguard the legitimate interests of Chinese enterprises.

Both Shein and Temu have gained popularity among US consumers, as they offer a wide selection of merchandise, including apparel, consumer electronics, jewelry, shoes, bags and accessories at competitive prices. Most of the products are shipped directly from factories or warehouses in China.

Zhu Keli, founding director of the China Institute of New Economy, said the US move to contain the rise of Chinese cross-border online retailers will have an adverse impact on the healthy development of the global e-commerce industry, create barriers to the free flow of commodities and services, and violate the basic principles of the market economy, thus “impeding technological progress and industrial upgrading and stunting global economic growth”.

The “de minimis” provision has existed since the 1930s in the US, but the threshold has increased and its use has come under increasing scrutiny in recent years. The number of shipments entering the US under the exemption has surged more than 600 percent in the past 10 years, according to US Customs and Border Protection.

Moreover, media reports said that the European Union will increase customs checks on goods shipped directly by e-commerce retailers like Temu and Shein to EU consumers. The new customs guidelines would require these online marketplaces to disclose more information on EU-bound packages in order to track and inspect them more efficiently.

Zhu said it is of great importance for Chinese cross-border e-commerce platforms to accelerate steps to expand their presence in more diverse markets, while improving the added value of products and the service level, as well as enhancing brand competitiveness globally, amid increasing cost pressures caused by tariff hikes in the US and mounting regulatory challenges in Europe.

MIL OSI China News –

February 6, 2025
MIL-OSI China: Action plan 8.0 to inject more vitality into Shanghai

Source: China State Council Information Office 3

This aerial photo taken on Sept. 10, 2023 shows a view of Zhangjiang area of the China (Shanghai) Pilot Free Trade Zone in east China’s Shanghai. [Photo/Xinhua]

The latest business environment improvement action plan released in Shanghai on Wednesday will help the city better address market entities’ needs and inject more vitality into the city’s economic growth, said officials and market experts.

Their comments were made on Wednesday when the Shanghai municipal government held the business environment improvement work conference for the eighth consecutive year. The latest action plan, which is now in its eighth edition, was released during the conference.

The plan aims to enhance the sense of gain among enterprises by coming up with 58 detailed measures which are more substantial and down-to-earth, according to Lu Aiguo, head of the business environment construction division at the Shanghai Municipal Development and Reform Commission.

One focus of the new plan is deepening the reform by aligning with the standards specified in World Bank’s Business Ready evaluation system, said Lu. Ten related reform measures have been rolled out, covering market entry, operational venues, infrastructure, utilities, international trade and market competition, among others.

As to international trade, Shanghai will expand the benefit scope for controlled and inspected high-tech goods. The import pilot program for research and development as well as testing items should be further optimized. Customs clearance facilitation services will be improved by better implementing reform measures such as multi-modal transport and the application of electronic certificates, according to the new action plan.

Another 24 measures have been included in action plan 8.0 to optimize the all-round services rendered to companies. On the one hand, more innovative financing products should be introduced, providing continued financing support to small and medium-sized enterprises.

On the other, more efforts should be made to facilitate the outbound reaches of domestic companies while further opening up the local market. Professional service providers will be supported to set up branches in the markets involved in the Belt and Road Initiative.

Meanwhile, visas as well as entry and exit services for foreign talent will be more convenient. More foreign-invested projects should be introduced in the city and major foreign-invested projects should be settled at a faster pace, according to the new action plan.

Japanese carmaker Toyota announced on Wednesday that it has entered into an agreement with the Shanghai government to establish a new wholly-owned company in Jinshan district of Shanghai for the development and production of Lexus electric vehicles and batteries.

The advanced and mature industrial chains, logistics networks, talent supply and market size in Shanghai and the neighboring cities are the major reasons to land this new project, according to Toyota.

To improve services provided to companies, efforts will be made to promulgate a negative list for cross-border data flow within the China (Shanghai) Pilot Free Trade Zone, according to the new action plan.

Companies will be better guided to conduct data export activities in accordance with laws and regulations. This is conducive to companies’ international competitiveness, said Huang Lina, an official from the internet security division at Shanghai Cyberspace Administration.

The new action plan also includes 14 measures to optimize supervision over companies.

According to Wu Beibei, deputy director of the laws and regulations division at Shanghai Administration for Market Regulation, the targets, frequency and content of on-site inspections will be reduced to lower the impact on companies. The goal is to lower the number of planned administrative on-site inspections in the next two to three years, she said.

MIL OSI China News –

February 6, 2025
MIL-OSI Australia: 32-2025: Scheduled Outage: Saturday 08 February to Sunday 09 February 2025 – Multiple Systems

Source: Australia Government Statements – Agriculture

06 February 2025

Who does this notice affect?

Approved arrangements operators who will be required to view and/or update details of their Approved Arrangement via the Approved Arrangement Management Product (AAMP).

All clients required to use the Biosecurity Import Conditions System (BICON) during this planned maintenance period.

All clients required to use the Export / Next Export Documentation (EXDOC/NEXDOC) systems during this planned maintenance period.

…

MIL OSI News –

February 6, 2025
MIL-Evening Report: Unambitious and undermined: why NZ’s latest climate pledge lacks the crucial ‘good faith’ factor

Source: The Conversation (Au and NZ) – By Nathan Cooper, Associate Professor of Law, University of Waikato

New Zealand’s Climate Change Minister Simon Watts speaking during the the recent climate summit in Azerbaijan. Sean Gallup/Getty Images

The announcement of New Zealand’s new climate pledge under the Paris Agreement was met with sharp criticism last week.

The agreement commits nations to provide a new pledge, known as a Nationally Determined Contribution (NDC) every five years. But it also requires each pledge to be a “progression beyond” the previous one.

Climate Change Minister Simon Watts announced New Zealand would commit to reducing emissions by 51-55% below 2005 levels by 2035, which is only 1-5% above the current NDC of a 50% cut by 2030.

Technically, the new NDC represents a progression, albeit the smallest possible one. It was criticised as underwhelming and unambitious to combat climate change, raising the question whether the coalition government has done enough to comply with its international obligations.

The commitments of each member nation should align with the Paris Agreement’s purpose to hold global average temperature rise well below 2°C above pre-industrial levels and to pursue efforts to keep it at 1.5°C.

But the agreement also requires that each country’s NDC reflects its “highest possible ambition, reflecting its common but differentiated responsibilities and respective capabilities, in light of different national circumstances”.

Does the government’s announcement to step up emissions cuts by as little as 1% really represent New Zealand’s highest possible ambition in present circumstances?

In October last year, looking specifically at New Zealand’s potential domestic contribution to the new NDC, the Climate Change Commission advised that emissions cuts of 66% could be achieved without shrinking the economy.

This excludes potential additional cuts achieved through offshore mitigation – paying for overseas carbon credits or funding other countries to reduce their greenhouse emissions.

Clearly, deeper cuts are possible and there is room for significantly greater ambition.

The goal of the Paris Agreement is to limit climate change impacts by holding temperature rise well below 2°C.
Fiona Goodall/Getty Images

Bare minimum commitment

Even if the new NDC meets a minimal requirement for compliance, it is difficult to see how it adheres to the purpose of the Paris Agreement and the level of ambition required.

New Zealand’s NDC falls short of the commitments offered by other comparable countries and even some developing nations, including the oil and gas producer Brazil, which pledged to cut its emissions by 59-67% by 2035.

International law has long been guided by the principle of pacta sunt servanda, which translates to “agreements must be kept”. The principle reminds parties to any agreement or convention that all international obligations should be fulfilled in good faith.

Viewing New Zealand’s new NDC in the context of other recent decisions, it seems the coalition government may be pursuing policies that could undermine climate action while pledging the bare minimum internationally. This would be difficult to characterise as a party acting in good faith.

Immediately following the new NDC announcement, Resources Minister Shane Jones unveiled New Zealand’s national minerals strategy, along with a list of critical minerals.
These documents support the government’s goal to double exports from the mineral sector by 2035.

Despite reassurance in the strategy that minerals production will not come at the expense of our environment, it includes plans to scale up exports of metallurgical coal. But mining more of this coal, then burning it (usually in the process of steelmaking), will add to greenhouse gas emissions.

Wider concerns about the likely environmental damage and biodiversity loss linked with fast-tracked mining operations continue to be raised.

Meeting trade obligations

Last year’s decision to postpone the entry of agriculture into New Zealand’s Emissions Trading Scheme without a robust alternative means that agricultural emissions continue to avoid effective regulation.

Even recent measures to allow increased road speed limits have been criticised for increasing greenhouse gas emissions as well as worsening air quality and reducing road safety.

Despite Prime Minister Christopher Luxon’s claim to be “all about yes” even on climate change, such decisions are difficult to square with a responsible party to the Paris Agreement acting in good faith.

The Paris Agreement is clear that emissions pledges are not imposed but are to be determined nationally. The agreement itself lacks an enforcement mechanism, but recently agreed trade deals with the European Union and with the United Kingdom both contain binding and enforceable commitments to the agreement.

This is a reminder that trading partners are already monitoring New Zealand’s climate actions. Consumer attitudes and trade obligations might become a more powerful lever for climate action in the future. No government should ignore this.

As the US administration begins to withdraw from the Paris Agreement, now more than ever is the time for other countries to stay focused on its purpose and to match national commitments accordingly.

Without an NDC in line with the Paris goal, New Zealand’s government is not sending the right message to New Zealanders or to our trading partners and neighbours. It is failing to show international and regional leadership at a time when many Pacific nations are on the frontline of climate-related risk and damage.

Nathan Cooper does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Unambitious and undermined: why NZ’s latest climate pledge lacks the crucial ‘good faith’ factor – https://theconversation.com/unambitious-and-undermined-why-nzs-latest-climate-pledge-lacks-the-crucial-good-faith-factor-248877

MIL OSI Analysis – EveningReport.nz –

February 6, 2025
MIL-OSI Australia: Wollongong businesses encouraged to pursue growth opportunities in South East Asia

Source: New South Wales Government 2

Headline: Wollongong businesses encouraged to pursue growth opportunities in South East Asia

Published: 6 February 2025

Released by: Minister for the Illawarra and the South Coast, Minister for Industry and Trade

The huge trade potential of Wollongong and the wider Illawarra area will be the focus of the latest NSW Government ASEAN Market Update for NSW Businesses series being held in Wollongong today.

The updates provide local businesses with information about trends and export opportunities across Southeast Asian markets.

The ASEAN bloc is NSW’s second-largest trading partner, with two-way trade in goods growing by more than nine per cent in the past year. Continued rapid growth is expected in sectors where NSW businesses excel, such as food and beverage, health, and the digital economy.

Held in partnership with Asialink Business, today’s session will bring together around 80 participants, including Wollongong businesses, industry groups, and diplomatic representatives from Southeast Asian nations, at iAccelerate within the University of Wollongong’s Innovation Campus.

Speakers at the forum include NSW exporters who have already utilised Investment NSW’s export support services to build connections and drive export sales across Southeast Asia.

The NSW Government is focussed on promoting ASEAN market opportunities to NSW businesses, with the region expected to become the world’s fourth largest economy by 2040.

The ASEAN Market Updates series, is supported by other initiatives led by Investment NSW to help small and medium businesses pursue international growth objectives in Southeast Asia and other important export markets around the globe.

In 2024/25, these include supporting cleantech companies to export to Malaysia and Singapore, and wine to be exported to Vietnam.

The ASEAN Market Updates series began with a session in Western Sydney last October and will continue in the coming months with events in the Northern Rivers, the Hunter and Wagga Wagga.

For more information on how the NSW Government supports business to export, visit Investment NSW: https://www.investment.nsw.gov.au/export/

Minister for Industry and Trade Anoulack Chanthivong said:

“The ASEAN region is entering a golden age, propelled by a young population, industrialisation and technological advances, which present significant opportunities for NSW exporters.

“ASEAN nations are actively pursuing economic growth, with an increasing focus on sustainable development, food and health resilience, the digital economy and skills.

“My ASEAN Market Updates series is all about unlocking the potential of NSW businesses to export and partner with Southeast Asia, where our two-way trade is worth $33.6 billion and continuing to grow.

“The attendance of so many senior ranking diplomats, including Ambassadors and Consuls General shows the international attractiveness of the NSW economy and is a big vote of confidence in the Illawarra region.”

Minister for the Illawarra and the South Coast Ryan Park said:

“The Illawarra is home to innovative businesses with enormous export potential, and Southeast Asia presents a golden opportunity for growth.

“The NSW Government is here to support Wollongong businesses every step of the way to ensure they can compete and thrive on the global stage.”

Member for Wollongong Paul Scully said:

“I’m more than willing to take any opportunity to help sell Wollongong to the world.

“Wollongong has strong connections with the ASEAN region, but there remains enormous potential to take our trade and investment relationship to the next level.

“The University of Wollongong has opened three campuses across Malaysia and has several research partnerships, which is just one example of how we’re cultivating deeper connections with the ASEAN region.

“Today’s ASEAN Market Updates series is an important opportunity for our local businesses to learn more about this dynamic region and how exporting their products and services could turbocharge their growth.”

MIL OSI News –

February 6, 2025
MIL-OSI China: China’s top legislator holds talks with ROK official

Source: China State Council Information Office

Zhao Leji, chairman of the National People’s Congress (NPC) Standing Committee, holds talks with Woo Won-shik, National Assembly Speaker of the Republic of Korea (ROK), at the Great Hall of the People in Beijing, capital of China, Feb. 5, 2025. [Photo/Xinhua]

China’s top legislator Zhao Leji held talks with Woo Won-shik, National Assembly Speaker of the Republic of Korea (ROK), in Beijing on Wednesday.

Zhao, chairman of the National People’s Congress (NPC) Standing Committee, said China and the ROK are close in geography and culture, and enjoy convenient conditions for exchanges and cooperation in various fields.

Since the establishment of diplomatic ties, China-ROK relations have developed rapidly and achieved fruitful results, which has brought benefits to both sides and their peoples and also promoted regional stability and development, he said.

China is willing to work with the ROK to strengthen high-level exchanges and strategic communication, make good use of the dialogue and communication mechanisms between government and political parties of the two countries, and enhance mutual understanding and trust, Zhao added.

“Taking the 10th anniversary of the entry into force of their Free Trade Agreement (FTA) as an opportunity, the two countries will speed up the second phase of negotiations on the FTA and strive to reach an agreement at an early date,” Zhao said.

Zhao noted that the legislative bodies of China and the ROK have maintained close exchanges and cooperation for a long time, playing an important role in promoting the development of bilateral relations.

He said the NPC of China is willing to work with the ROK National Assembly to uphold the tradition of friendship and make good use of regular exchange mechanisms and other platforms to enhance communication and exchanges between high-level legislative bodies, special committees, friendship groups, NPC deputies and parliamentarians, so as to create a sound policy and legal environment for bilateral cooperation in various fields.

“We will encourage more young people to participate in bilateral exchanges and build strength for China-ROK friendship from generation to generation,” Zhao added.

Woo Won-shik said that since the establishment of diplomatic ties, the two countries have made remarkable cooperative achievements in political, economic, cultural and other fields. The ROK and China will host the APEC Economic Leaders’ Meeting this year and next year respectively. He expressed hope that the two sides will support each other and further deepen bilateral cooperation.

Adhering to the one-China principle, the ROK hopes to expand bilateral cooperation in such fields as economy and trade, enterprise investment, biomedicine and artificial intelligence, maintain the stability of industrial and supply chains, expand cultural exchanges and continuously enhance the friendly feelings between the two peoples, Woo Won-shik added.

MIL OSI China News –

February 6, 2025
MIL-OSI USA: Gillibrand, Bipartisan Group Of Senators Introduce Legislation To Establish Stablecoin Regulatory Framework
US Senate News:
Source: United States Senator for New York Kirsten Gillibrand

Today, U.S. Senator Kirsten Gillibrand, together with Senators Bill Hagerty (R-TN), Tim Scott (R-SC), and Cynthia Lummis (R-WY), introduced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, legislation to establish a clear regulatory framework for payment stablecoins.

“The bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins Act protects consumers by requiring stablecoin issuers to maintain one-to-one reserves, prohibiting algorithmic stablecoins, and requiring issuers to comply with U.S. anti-money-laundering and sanctions rules,” said Senator Gillibrand. “Importantly, it will empower responsible innovation, maintain U.S. leadership in digital assets and blockchain technology, and keep crypto companies and jobs onshore. The future of stablecoins and cryptocurrency has strong bipartisan support. I’m proud to introduce this bill with Senators Hagerty, Lummis and Scott, and I look forward to working together to pass this important legislation.”

Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar. They can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries.

The GENIUS Act:
1. Defines a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value;
2. Establishes clear procedures for institutions seeking licenses to issue stablecoins;
3. Implements reserve requirements and light-touch, tailored regulatory standards for stablecoin issuers;
4. For issuers of more than $10 billion of stablecoins, applies the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers;
5. Allows for state regulation of issuers under $10 billion in market capitalization and provides a waiver process for issuers exceeding the threshold to remain state-regulated; and
6. Establishes supervisory, examination, and enforcement regimes with clear limitations.
Full text of the GENIUS Act can be found here.
MIL OSI USA News –
February 6, 2025
MIL-OSI Australia: ACCC denies authorisation for industry code on marketing of infant formula

Source: Australian Competition and Consumer Commission

The ACCC has denied authorisation sought by the Infant Nutrition Council for an industry code which seeks to restrict the advertising and promotion of infant formula.

The Infant Nutrition Council sought authorisation to continue to implement the Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement (MAIF Agreement) and its associated guidelines for a further five years.

The ACCC considers that the effectiveness of the MAIF Agreement is being undermined by several factors including its voluntary nature, its limited scope, and restrictions on its ability to capture the breadth of modern digital marketing methods.

As such, the ACCC considers that the claimed public benefits are unlikely to arise, or are likely to occur with or without the MAIF Agreement. Further, the ACCC considers the conduct is likely to result in some competitive detriment.

“We are not satisfied in all the circumstances that the MAIF Agreement is likely to result in public benefits that would outweigh the public detriments likely to result from it,” ACCC Acting Chair Mick Keogh said.

MAIF Agreement

The MAIF Agreement, initially established in 1992, has formed part of Australia’s response to its obligations as a signatory to the World Health Organisation’s International Code of Marketing Breast Milk Substitutes.

The MAIF Agreement is a voluntary, self-regulatory code of conduct which aims to restrict those manufacturers and importers of infant formula who opt in to the agreement from advertising and promoting formula for infants up to 12 months of age. Its implementation requires ACCC authorisation as it forms an agreement between competitors not to market their infant formula products.

“While the link between breastfeeding and improved health outcomes for mothers and children is undisputed, we are concerned there are several factors that undermine the effectiveness of the MAIF Agreement in protecting breastfeeding rates,” Mr Keogh said.

“We are not satisfied that the MAIF Agreement and associated guidelines are likely to result in a net public benefit to justify authorisation and consider that they are likely to result in some public detriment through reduced competition between infant formula manufacturers and importers, compared to the future without the conduct.”

Further information on the final determination is available on the ACCC’s public register at Infant Nutrition Council.

Note to editors

ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act.

Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Background

The Infant Nutrition Council represents the majority of manufacturers and importers of infant formula in Australia.

The Council applied for revocation of the existing authorisation and the substitution of a new one to continue to make and give effect to the MAIF Agreement and its associated guidelines for a further five years to ensure a framework remains in place while the Government prepares and implements its response to the independent review of the MAIF Agreement.

In September 2024, the ACCC announced it was proposing to deny this authorisation and sought feedback from interested parties which raised broader health policy issues including whether restrictions on marketing of infant formula should extend to breastmilk substitutes for children over 12 months of age and to retailers.

These issues go beyond the scope of the ACCC’s assessment of this application under competition law and are a matter for the Australian Government.

The Department of Health and Aged Care commissioned an independent review of the MAIF Agreement which found that it is no longer fit for purpose and recommended that it be replaced with a stronger regulatory framework in the form of a legislated, prescribed, mandatory code.

In a submission to the ACCC, the Department stated that the Government accepted this recommendation and intends to introduce a mandatory regime to restrict marketing of infant formula, which it expects would take two years to implement.

MIL OSI News –

February 6, 2025
MIL-OSI Submissions: Africa – Islamic Corporation for the Development of the Private Sector Signs the Country Work Program 2025 for Egypt, Unveiling $100 Million Financing Plan

SOURCE: Islamic Corporation for the Development of the Private Sector (ICD)

Islamic Corporation for the Development of the Private Sector Signs the Country Work Program 2025 for Egypt, Unveiling $100 Million Financing Plan. The agreement was officially signed by Engineer Hani Salem Sonbol, Acting CEO of ICD, who highlighted the corporation’s ongoing commitment to Egypt’s economic development

CAIRO, Egypt, February 5, 2025/ — The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org), the private sector arm of the Islamic Development Bank Group (IsDB), has signed it’s the Country Work Program 2025 for Egypt, marking a significant milestone in its strategic partnership with the country.

The signing ceremony took place in Cairo, in the presence of key government officials, including HE Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Governor of Egypt at the Islamic Development Bank; HE Lieutenant General Engineer Kamel Al-Wazir, Deputy Prime Minister for Industrial Development, Minister of Industry and Transport; and HE Dr. Sherif Farouk, Minister of Supply and Internal Trade.

The agreement was officially signed by Engineer Hani Salem Sonbol, Acting CEO of ICD, who highlighted the corporation’s ongoing commitment to Egypt’s economic development.

The 2025 country work program focuses on strengthening the private sector and driving economic growth in Egypt. Key initiatives include direct financing, investments, and financing tools aimed at boosting key sectors such as industry, infrastructure, energy, and agriculture.

Additionally, the program seeks to enhance financial inclusion by providing lines of finance to Egyptian banks, particularly to support small and medium-sized enterprises (SMEs). ICD also plans to raise market awareness about the importance of Islamic finance as a tool for development and to facilitate access to capital markets by forming strategic alliances with international investors.

One of the key components of the program is ICD’s intention to provide up to $100 million in new financing to support private sector projects in Egypt.

Engineer Kamel El-Wazir, the Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, said: “The Islamic Corporation for the Development of the Private Sector has proven, over the past years, its vital role in supporting the member countries of the Organization of Islamic Cooperation (OIC) by providing innovative financial solutions and supporting developmental projects that contribute to stimulating economic growth, creating job opportunities, and enhancing the role of the private sector, particularly small and medium-sized enterprises.”

He added: “We recognize that the private sector plays a pivotal role in the economic development process, and therefore, a large part of this cooperation will focus on empowering entrepreneurs and supporting small and medium-sized industries, which are the cornerstone of any strong economy. Through this program, efforts will be made to provide the necessary financing for these industries, as well as encourage innovation and entrepreneurship. This support will contribute to creating new job opportunities, enhancing sustainable economic growth, and improving competitiveness in regional and international markets.”

Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the Islamic Development Bank, praised the successful partnership with the Islamic Corporation for the Development of the Private Sector (ICD). She highlighted the continuation of this fruitful partnership through the ICD’s Country Work Program in the Arab Republic of Egypt for 2025, which includes supporting the private sector in various diverse aspects. The program will allocate $100 million to financial institutions to finance small and medium-sized enterprises, as well as providing funding for large private sector companies operating in strategic sectors that are crucial to economic development. This includes particularly the industrial and agricultural sectors, which are key components of the country’s structural reform plan aimed at enhancing their contribution to GDP.

Eng. Hani Salem Sonbol, Acting CEO of ICD, commented: “We are proud of our long-standing strategic partnership with the Arab Republic of Egypt. In 2025, we aim to deepen this relationship further by supporting the Egyptian government’s development plans. Our focus will be on enhancing the capacity of Egypt’s private sector and financial institutions, especially in supporting SMEs. Additionally, we will leverage our expertise to provide advisory services in the sukuk sector, particularly in assisting Egypt with issuing foreign currency sukuk and attracting new international investments to bolster financial flexibility.”

He further added, “Our efforts will also include supporting the Arab-African Trade Bridges (AATB) Program, which aims to increase investments in member states, including Egypt.”

Since its inception, ICD has provided Egypt with a total of $315 million in financing, including support for private sector companies, financial lines for banks, and direct investments in key sectors such as energy, food, and industry. This financing has played a crucial role in boosting economic growth, creating jobs, and fostering the development of Egypt’s private sector.

About the Islamic Corporation for the Development of the Private Sector:
ICD, a member of the Islamic Development Bank (IsDB) Group, is a multilateral financial institution established in 1999. ICD promotes economic development in member countries by financing private sector projects, fostering competition and entrepreneurship, offering advisory services, and encouraging cross-border investments. It holds strong credit ratings, including A2 by Moody’s, A+ by Fitch, and A- by S&P. ICD focuses on Shari’ah-compliant financing for projects like infrastructure and private equity funds, aiming to create jobs and boost exports.

For more information, visit: www.ICD-ps.org.

MIL OSI – Submitted News –

February 6, 2025

MIL-OSI: ASSOCIATED CAPITAL GROUP, INC. Reports Fourth Quarter and Full Year Results

Source: GlobeNewswire (MIL-OSI)

Year-end AUM: $1.25 billion at December 31, 2024
Book Value was $42.14 per share at year-end 2024 which reflects $2.20 per share of dividends paid vs. Book Value of $42.11 per share a year ago
Sold 1.15 million shares of GAMCO to GAMCO for proceeds of $30.4 million
Ended 2024 with cash and investments of $40.78 per share
Returned $58.6 million, or $2.72 per share, to shareholders through dividends and share repurchases in 2024
Completed shareholder-designated charitable contributions to 501(c)(3) organizations bringing the total to $42 million since our 2015 spin-off

GREENWICH, Conn., Feb. 05, 2025 (GLOBE NEWSWIRE) — Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the fourth quarter and full year-ended December 31, 2024.

Financial Highlights – GAAP basis
($’s in 000’s except AUM and per share data)

	Fourth Quarter						Full Year
(Unaudited)	2024			2023			2024			2023
AUM – end of period (in millions)	$	1,248		$	1,591		$	1,248		$	1,591
AUM – average (in millions)		1,291			1,581			1,410			1,659

Revenues		5,154			5,636			13,175			12,683
Operating loss before management fee (Non-GAAP)		(3,059	)		(2,451	)		(12,883	)		(11,501	)
Investment and other non-operating income, net		4,372			26,672			71,488			63,812
Income before income taxes		1,179			21,850			52,735			46,865

Net income		4,280			16,342			44,328			37,451
Net income per share – basic and diluted	$	0.20		$	0.76		$	2.08		$	1.72

Class A shares outstanding (000’s)		2,234			2,587			2,234			2,587
Class B “ “		18,951			18,951			18,951			18,951
Total “ “		21,185			21,538			21,185			21,538
Book Value per share	$	42.14		$	42.11		$	42.14		$	42.11

Fourth Quarter Financial Data

Assets under management ended the quarter at $1.25 billion versus $1.34 billion at September 30, 2024.
At December 31, 2024, book value per share was $42.14 per share, reflecting the $2.20 per share of dividends paid versus $42.11 per share at December 31, 2023.

Fourth Quarter Results

Fourth quarter revenues were $5.2 million compared to $5.6 million for the fourth quarter of 2023. Revenues generated by the GAMCO International SICAV – GAMCO Merger Arbitrage (the “SICAV”) were $1.0 million versus $0.8 million in the prior year period. All other revenues were $4.2 million compared to $4.8 million in the year ago quarter.

Starting in December 2023, the Company began recognizing 100% of the merger arbitrage SICAV revenues received by Gabelli Funds, LLC (“Gabelli Funds”). In turn, AC pays the marketing expenses of the SICAV previously paid by Gabelli Funds and remits an administrative fee to Gabelli Funds for administrative services provided. This change better aligns the financial arrangements with the services rendered by each party. The net effect of this change had no material impact on our net operating results.

Total operating expenses, excluding management fee, were $8.2 million in the fourth quarter 2024 compared to $8.1 million in the comparable 2023 period.

Net investment and other non-operating income was $4.4 million for the fourth quarter versus $26.7 million in the year ago quarter, reflecting interest income in the current quarter offset partially by shareholder designated contribution expense.

The fourth quarter of 2024 includes a Management fee of $0.1 million versus $2.4 million in the fourth quarter of 2023. Our provision for income taxes was a benefit of $3.1 million for the quarter, resulting from deferred tax benefits from the sale of GAMCO shares, compared to expense of $5.6 million in the comparable period of 2023.

Full Year Results

Revenues for the year ended 2024 were $13.2 million compared to $12.7 million in 2023. Revenues generated by the GAMCO International SICAV – GAMCO Merger Arbitrage were $5.0 million versus $3.7 million in the prior year period. All other revenues were $8.2 million compared to $9.0 million in the year ago quarter.

For 2024, the operating loss before Management fee was $12.9 million compared to $11.5 million in 2023.

The full year 2024 net investment and other non-operating income was $71.5 million versus $63.8 million, primarily due to higher dividend income from GAMCO Investors, Inc. (“GAMCO”) in 2024.

In 2024, Management fee was $5.9 million compared to $5.4 million in 2023.

Our income tax rate for the year was 15.8% compared to 19.5% for the prior year primarily driven by deferred tax benefits from the sale of GAMCO shares that reduced the current period’s effective tax rate.

Assets Under Management (AUM)

Assets under management ended the year at $1.25 billion, $343 million less than year-end 2023, reflecting net outflows of $363 million and the impact of currency fluctuations in non-US dollar denominated classes of investment funds of $29 million, offset partially by market appreciation of $49 million. In the merger arbitrage strategy, most of the outflows ($198 million) were tied to GAMCO Merger Arbitrage UCITS (a Luxembourg entity organized as an Undertaking for Collective Investment in Transferrable Securities). These outflows were generally driven by our clients including wealth managers, bank platforms and insurance companies reallocating funds to other asset classes.

AUM since spin-off:

		December 31,
($ in millions)		2024		2023		2022		2021		2020		2019		2018		2017		2016	2015
Merger Arbitrage	$	1,003	$	1,312	$	1,588	$	1,542	$	1,126	$	1,525	$	1,342	$	1,384	$	1,076	$	869
Long/Short Value^(a)		209		244		222		195		180		132		118		91		133		145
Other		36		35		32		44		45		59		60		66		63		66
Total AUM	$	1,248	$	1,591	$	1,842	$	1,781	$	1,351	$	1,716	$	1,520	$	1,541	$	1,272	$	1,080

(a) Assets under management represent the assets invested in this strategy that are attributable to AC.

Alternative Investment Management

The alternative investment strategy offerings center around our merger arbitrage strategy, which has an absolute return focus of generating returns independent of the broad equity and fixed income markets. We also offer strategies utilizing fundamental, active, event-driven and special situations investments.

Merger Arbitrage

For the fourth quarter of 2024, our longest continuously offered fund in the merger arbitrage strategy generated gross returns of 0.95% (0.57% net of fees). For the full year, gross returns were 5.83% (3.82% net of fees), adding to its historical record of positive net returns in 38 of the last 40 years. A summary of the performance is as follows:

Full Year

Performance%^(a)

4Q ’24

4Q ’23

2024

2023

2022

2021

2020

5 Year^(b)

Since 1985^(b)(c)

Merger Arb

Gross

0.95

3.19

5.83

5.49

4.47

10.81

9.45

7.18

9.98

Net

0.57

2.35

3.82

3.56

2.75

7.78

6.70

4.90

7.06

(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown is for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.

(b) Represents annualized returns through December 31, 2024

Since its inception in 1985, our longest continuously offered fund in the merger arbitrage strategy has consistently outperformed the return on 90-day T-Bills. The summary historical performance is as follows:

Merger Arbitrage ⁽¹⁾
Percent Return (%)
Year	Gross Return	Net Return	90 Day T-Bills
2024	5.83	3.82	5.45
2023	5.49	3.56	5.26
2022	4.47	2.75	1.50
2021	10.81	7.78	0.05
2020	9.45	6.70	0.58
2019	8.55	5.98	2.25
2018	4.35	2.65	1.86
2017	4.69	2.92	0.84
2016	9.13	6.44	0.27
2015	5.33	3.43	0.03
2014	3.89	2.29	0.03
2013	5.33	3.43	0.05
2012	4.32	2.63	0.07
2011	4.89	3.07	0.08
2010	9.07	6.35	0.13
2009	12.40	9.15	0.16
2008	0.06	-0.94	1.80
2007	6.39	4.26	4.74
2006	12.39	8.96	4.76
2005	9.40	6.63	3.00
2004	5.49	3.69	1.24
2003	8.90	6.26	1.07
2002	4.56	2.45	1.70
2001	7.11	4.56	4.09
2000	18.10	13.57	5.96
1999	16.61	12.31	4.74
1998	10.10	7.21	5.06
1997	12.69	9.21	5.25
1996	12.14	8.84	5.25
1995	14.06	10.27	5.75
1994	7.90	5.53	4.24
1993	12.29	8.91	3.09
1992	7.05	4.78	3.62
1991	12.00	8.76	5.75
1990	9.43	6.67	7.92
1989	23.00	17.55	8.63
1988	45.84	35.66	6.76
1987	-13.67	-14.54	5.90
1986	33.40	26.14	6.24
1985	30.47	22.64	7.82

Average	10.34	7.31	3.32

(1) The performance above refers to our longest continuously offered fund in the merger arbitrage strategy (net and gross returns). Net returns are net of management and incentive fees. Individual investment returns may differ due to timing of investment and other factors. Past performance is not indicative of future results.

Worldwide mergers and acquisitions (“M&A”) totaled $3.2 trillion in 2024, an increase of 10% compared to 2023, with strength across all major geographies. The US remained the preferred venue for dealmaking, with volume of approximately $1.4 trillion, an increase of about 5% and accounting for 45% of worldwide M&A. European deal activity increased 22% to $700 billion, and cross-border M&A totaled approximately $1.1 trillion, a 12% increase compared to 2023. Technology returned to the top sector for deals with approximately $500 billion in 2024, an increase of 32% compared to 2023 and accounting for 16% of total deals. Energy & Power accounted for 15% of deal activity ($477 billion), while Financials accounted for 14% of total volume ($453 billion), an increase of 51% compared to 2023. Private Equity firms remained acquisitive with $706 billion of announced deals, accounting for 22% of total M&A and increasing 24% compared to 2023.

With the change at the White House and Congress we are seeing a “changing of the guard” with respect to several M&A – related regulatory appointments, some of which will have a material impact on M&A investing: most notably, the Chair of the U.S. Federal Trade Commission (“FTC”) and the U.S. Attorney General who heads The Department of Justice (“DOJ”). These changes are likely to facilitate an increase in deal activity as corporate sentiment shifts to move ahead with transformational transactions for their businesses.

The Merger Arbitrage strategy is offered by mandate and client type through partnerships and offshore corporations serving accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS and a London Stock Exchange listed investment company, Gabelli Merger Plus+ Trust Plc (GMP-LN).

Acquisitions

Associated Capital Group’s plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.

Giving Back to Society – (Y)our “S” in ESG

AC seeks to be a good corporate citizen by supporting our community through sponsoring local organizations. On August 7, 2024, the Board of Directors approved a $0.20 per share shareholder designated charitable contribution (“SDCC”) for registered shareholders. Based on the program created by Warren Buffett at Berkshire Hathaway, our corporate charitable giving is unique in that the recipients of AC’s charitable contributions are chosen directly by our shareholders, rather than by our corporate officers. In the first quarter of 2025, we completed the distribution of approximately $4.0 million to various organizations selected by our shareholders for our 2024 program. Since our spin-off as a public company, the shareholders of AC have donated approximately $42 million, including the most recent SDCC, to over 200 501(c)(3) organizations that address a broad range of local, national and international concerns.

Shareholder Dividends and Buybacks

At its meeting on November 8, 2024, the Board of Directors declared a semi-annual dividend of $0.10 per share, which was paid on December 19, 2024 to shareholders of record on December 5, 2024. For the full year, the Company paid dividends of $46.8 million, or $2.20 per share.

During the fourth quarter, AC repurchased 63,075 Class A shares, for $2.3 million, at an average price of $35.87 per share. Furthermore, for the full year AC repurchased 353,116 Class A shares, for $11.8 million, at an average price of $33.53 per share.

The Company intends to continue to repurchase additional shares, but share repurchases may vary from time to time and will take into account macroeconomic issues, market trends, and other factors that the Company deems appropriate.

Since our spin-off from GAMCO on November 30, 2015, AC has returned $184.2 million to shareholders through share repurchases and exchange offers, and paid dividends of $83.2 million.

At December 31, 2024, there were 2.234 million Class A shares and 18.951 million Class B shares outstanding.

About Associated Capital Group, Inc.

Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. (“GCIA”). We have also earmarked proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars, including Gabelli Private Equity Partners, LLC (“GPEP”), formed in August 2017 with $150 million of authorized capital as a “fund-less” sponsor. We also created Gabelli Principal Strategies Group, LLC (“GPS”) in December 2015 to pursue strategic operating initiatives.

Operating Loss Before Management Fee

Operating loss before management fee represents a non-GAAP financial measure used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of the Company, as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense.

	Three Months Ended						Year Ended
	December 31,						December 31,
($ in 000’s)	2024			2023			2024			2023

Operating loss – GAAP	$	(3,193	)	$	(4,822	)	$	(18,753	)	$	(16,947	)

Add: management fee expense ⁽¹⁾		134			2,371			5,870			5,446

Operating loss before management fee – Non-GAAP	$	(3,059	)	$	(2,451	)	$	(12,883	)	$	(11,501	)

(1) Management fee expense is incentive-based and is equal to 10% of Income before management fee and income taxes and excludes the impact of consolidating entities. For the three months ended December 31, 2024 and 2023, Income before management fee, income taxes and excluding consolidated entities was income of $1,340 and $23,710, respectively. As a result, $134 and $2,371 was accrued for the 10% management fee expense in 2024 and 2023 periods, respectively. For the year ended December 31, 2024 and 2023, Income before management fee, income taxes and excluding consolidated entities was income of $58,699 and $54,456, respectively. As a result, $5,870 and $5,446 was accrued for the 10% management fee expense in 2024 and 2023, respectively.

Table I

ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Amounts in thousands, except share data)
	December 31,
	2024		2023
ASSETS
Cash, cash equivalents and US Treasury Bills	$	367,850	$	406,642
Investments in securities and partnerships		487,623		420,706
Investment in GAMCO stock		16,920		45,602
Receivable from brokers		27,634		30,268
Income taxes receivable, including deferred tax assets, net		6,021		8,474
Other receivables		4,778		5,587
Other assets		24,463		26,518
Total assets	$	935,289	$	943,797

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Payable to brokers	$	5,491	$	4,459
Compensation payable		17,747		15,169
Securities sold short, not yet purchased		8,436		5,918
Accrued expenses and other liabilities		5,317		5,173
Total liabilities		36,991		30,719

Redeemable noncontrolling interests		5,592		6,103

Total Associated Capital Group, Inc. equity		892,706		906,975

Total liabilities, redeemable noncontrolling interests and equity	$	935,289	$	943,797

Notes:
(1) Certain captions include amounts related to a consolidated variable interest entity (“VIE”) and voting interest entity (“VOE”). Refer to the Consolidated Financial Statements included in the 10-K report to be filed for the year ended December 31, 2024 for more details on the impact of consolidating these entities.

(2) Investment in GAMCO stock: 699,749 and 2,386,295 shares, respectively.

Table II

ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data)
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023

Investment advisory and incentive fees	$	5,049		$	5,535		$	12,755		$	12,324
Other		105			101			420			359
Total revenues		5,154			5,636			13,175			12,683

Compensation		6,316			5,809			18,293			17,246
Other operating expenses		1,897			2,278			7,765			6,938
Total expenses		8,213			8,087			26,058			24,184

Operating loss before management fee		(3,059	)		(2,451	)		(12,883	)		(11,501	)

Net investment gain/(loss)		(41	)		21,398			42,767			43,033
Dividend income from GAMCO		92			96			5,454			384
Interest and dividend income, net		7,384			7,591			26,779			24,412
Shareholder-designated contribution		(3,063	)		(2,413	)		(3,512	)		(4,017	)
Investment and other non-operating income, net		4,372			26,672			71,488			63,812

Income before management fee and income taxes		1,313			24,221			58,605			52,311
Management fee		134			2,371			5,870			5,446
Income before income taxes		1,179			21,850			52,735			46,865
Income tax expense/(benefit)		(3,108	)		5,551			8,307			9,137
Income before noncontrolling interests		4,287			16,299			44,428			37,728
Income/(loss) attributable to noncontrolling interests		7			(43	)		100			277
Net income attributable to Associated Capital Group, Inc.’s shareholders	$	4,280		$	16,342		$	44,328		$	37,451

Net income per share attributable to Associated Capital Group, Inc.’s shareholders:
Basic	$	0.20		$	0.76		$	2.08		$	1.72
Diluted	$	0.20		$	0.76		$	2.08		$	1.72

Weighted average shares outstanding:
Basic		21,222			21,576			21,347			21,771
Diluted		21,222			21,576			21,347			21,771

Actual shares outstanding – end of period		21,185			21,538			21,185			21,538

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

Ian J. McAdams
Chief Financial Officer
(914) 921-5078
Associated-Capital-Group.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d3637934-12dd-409f-93dd-27bbb1388a85

The MIL Network –

February 6, 2025

MIL-OSI Canada: Prime Minister Justin Trudeau speaks with premiers on the Canada-U.S. relationship and economic prosperity

Source: Government of Canada – Prime Minister

Today, Prime Minister Justin Trudeau, the Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, the Minister of Transport and Internal Trade, Anita Anand, and Canada’s Ambassador to the United States, Kirsten Hillman, met virtually with Canada’s premiers to discuss the Canada-U.S. relationship and economic prosperity.

The Prime Minister provided an update on his recent conversations with the President of the United States of America, Donald J. Trump, during which the President decided to pause the implementation of U.S. tariffs against Canadian goods for a period of 30 days. The Prime Minister and the premiers reiterated their determination to continue engaging with U.S. partners at the federal, state, and local levels to prevent the imposition of any tariffs on Canadian exports and emphasize the benefits of Canada-U.S. co-operation. The Prime Minister welcomed the premiers’ upcoming mission to Washington, D.C., under the auspices of the Council of the Federation, as a significant opportunity for engagement and advocacy.

The Prime Minister and Minister LeBlanc discussed progress in the implementation of Canada’s $1.3 billion border plan. The Government of Canada has been redoubling its efforts to uphold border security with new helicopters and technology, enhanced co-ordination with U.S. law enforcement agencies, increased resources to stop the flow of fentanyl, and nearly 10,000 frontline personnel working on protecting the border. This Monday, the Prime Minister announced further commitments to appoint a Fentanyl Czar, list cartels as terrorists, ensure 24/7 eyes on the border, and launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering. The Prime Minister also signed a new intelligence directive on organized crime and fentanyl, backed with an investment of $200 million. The Prime Minister thanked premiers for their ongoing efforts to complement Canada’s border plan and committed to continue working in close partnership as the Government of Canada implements the recently announced new measures.

With the current pause in the proposed U.S. tariffs, First Ministers recognized the important opportunity to build a long-term prosperity agenda for Canada. They welcomed the positive conversations that took place at the meeting of the Committee on Internal Trade in Toronto, Ontario, on January 31, 2025. First Ministers endorsed the recommendations of Internal Trade Ministers to strengthen the Canadian Free Trade Agreement, advance mutual recognition and labour mobility, and explore opportunities to open new domestic markets in key sectors. They looked forward to making progress on these important priorities.

The Prime Minister also highlighted the upcoming Canada-U.S. Economic Summit that the Council on Canada-U.S. Relations will hold in Toronto on February 7, 2025. Building on the Council’s work to date, the Summit will bring together Canadian leaders in trade, business, public policy, and organized labour to explore ways to grow Canada’s economy, make it easier to build and trade within the country, diversify export markets, and rejuvenate productivity.

The Prime Minister and the premiers agreed to remain in close contact and to continue standing up for Canadian consumers, jobs, and businesses. They agreed to reconvene in two weeks’ time, or sooner if necessary, to discuss next steps in Canada’s engagement with the United States.

Associated Links

MIL OSI Canada News –

February 6, 2025

MIL-OSI: StoneX Group Inc. Reports Fiscal 2025 First Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

Record Quarterly Net Operating Revenues of $492.1 million, up 17%

Record Quarterly Net Income of $85.1 million, ROE of 19.5%

Record Quarterly Diluted EPS of $2.54 per share, up 19%

Announces a Three-for-Two Stock Split

NEW YORK, Feb. 05, 2025 (GLOBE NEWSWIRE) — StoneX Group Inc. (the “Company”; NASDAQ: SNEX), a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise, today announced its financial results for the fiscal year 2025 first quarter ended December 31, 2024. In addition and as discussed further below, on February 5, 2024, the Company’s Board of Directors approved a three-for-two split of the Company’s common stock.

Sean O’Connor, the Company’s Executive Vice-Chairman of the Board, stated, “We achieved another record quarterly result, building on momentum realized through fiscal 2024, reporting net income of $85.1 million, a 23% increase over the prior year quarter, diluted EPS of $2.54, and a 19.5% return on equity for the first fiscal quarter of 2025. We experienced continued strong client engagement with increased volumes across all operating segments and products despite relatively low volatility.”

StoneX Group Inc. Summary Financials

Consolidated financial statements for the Company will be included in our Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission (the “SEC”). Upon filing, the Quarterly Report on Form 10-Q will also be made available on the Company’s website at www.stonex.com.

	Three Months Ended December 31,
(Unaudited) (in millions, except share and per share amounts)		2024			2023		% Change
Revenues:
Sales of physical commodities	$	27,051.1		$	18,820.9		44%
Principal gains, net		308.9			293.8		5%
Commission and clearing fees		149.3			129.7		15%
Consulting, management, and account fees		47.8			38.5		24%
Interest income		378.2			290.1		30%
Total revenues		27,935.3			19,573.0		43%
Cost of sales of physical commodities		26,991.0			18,788.8		44%
Operating revenues		944.3			784.2		20%
Transaction-based clearing expenses		86.5			74.3		16%
Introducing broker commissions		44.3			39.1		13%
Interest expense		306.2			236.0		30%
Interest expense on corporate funding		15.2			13.2		15%
Net operating revenues		492.1			421.6		17%
Compensation and other expenses:
Variable compensation and benefits		133.3			121.9		9%
Fixed compensation and benefits		119.2			96.2		24%
Trading systems and market information		20.0			18.7		7%
Professional fees		19.0			15.7		21%
Non-trading technology and support		19.7			16.9		17%
Occupancy and equipment rental		13.0			7.7		69%
Selling and marketing		12.0			11.7		3%
Travel and business development		8.4			7.1		18%
Communications		2.1			2.2		(5)%
Depreciation and amortization		15.7			11.2		40%
Bad debts (recoveries), net		1.8			(0.3	)	n/m
Other		16.7			16.9		(1)%
Total compensation and other expenses		380.9			325.9		17%
Other gains		5.7			—		n/m
Income before tax		116.9			95.7		22%
Income tax expense		31.8			26.6		20%
Net income	$	85.1		$	69.1		23%
Earnings per share:⁽¹⁾
Basic	$	2.66		$	2.20		21%
Diluted	$	2.54		$	2.13		19%
Weighted-average number of common shares outstanding:⁽¹⁾
Basic		30,976,042			30,233,107		2%
Diluted		32,444,772			31,274,307		4%

Return on equity (“ROE”)⁽¹⁾		19.5	%		19.3	%
ROE on tangible book value⁽¹⁾		20.5	%		20.5	%
n/m = not meaningful to present as a percentage

(1	)	The Company calculates ROE on stated book value based on net income divided by average stockholders’ equity. For the calculation of ROE on tangible book value, the amount of goodwill and intangibles, net is excluded from stockholders’ equity.

The following table presents our consolidated operating revenues by segment for the periods indicated.

	Three Months Ended December 31,
(in millions)		2024			2023		% Change
Segment operating revenues represented by:
Commercial	$	232.3		$	198.4		17%
Institutional		539.6			435.7		24%
Self-Directed/Retail		124.1			92.5		34%
Payments		58.1			60.6		(4)%
Corporate		11.1			9.2		21%
Eliminations		(20.9	)		(12.2	)	71%
Operating revenues	$	944.3		$	784.2		20%

The following table presents our consolidated income by segment for the periods indicated.

	Three Months Ended December 31,
(in millions)		2024			2023		% Change
Segment income represented by:
Commercial	$	102.2		$	87.2		17%
Institutional		78.1			65.2		20%
Self-Directed/Retail		56.9			28.7		98%
Payments		34.1			35.0		(3)%
Total segment income	$	271.3		$	216.1		26%
Reconciliation of segment income to income before tax:
Segment income	$	271.3		$	216.1		26%
Net operating loss within Corporate⁽¹⁾		(21.1	)		(15.6	)	35%
Overhead costs and expenses		(133.3	)		(104.8	)	27%
Income before tax	$	116.9		$	95.7		22%

(1	)	Includes interest expense on corporate funding.

Key Operating Metrics

The tables below present operating revenues disaggregated across the key products we provide to our clients and select operating data and metrics used by management in evaluating our performance, for the periods indicated.

	Three Months Ended December 31,
		2024			2023		% Change
Operating Revenues (in millions):
Listed derivatives	$	111.8		$	109.2		2%
Over-the-counter (“OTC”) derivatives		36.6			44.5		(18)%
Securities		401.8			316.2		27%
FX/Contracts for difference (“CFD”) contracts		98.6			74.6		32%
Payments		56.8			59.4		(4)%
Physical contracts		92.6			51.4		80%
Interest/fees earned on client balances		107.6			98.4		9%
Other		48.3			33.5		44%
Corporate		11.1			9.2		21%
Eliminations		(20.9	)		(12.2	)	71%
	$	944.3		$	784.2		20%
Volumes and Other Select Data:
Listed derivatives (contracts, 000’s)		53,180			50,759		5%
Listed derivatives, average rate per contract (“RPC”)⁽¹⁾	$	2.03		$	2.03		—%
Average client equity – listed derivatives (millions)	$	6,620		$	6,170		7%
OTC derivatives (contracts, 000’s)		859			814		6%
OTC derivatives, average RPC	$	42.84		$	54.92		(22)%
Securities average daily volume (“ADV”) (millions)	$	8,733		$	6,224		40%
Securities rate per million (“RPM”)⁽²⁾	$	237		$	295		(20)%
Average money market/FDIC sweep client balances (millions)	$	1,197		$	1,060		13%
FX/CFD contracts ADV (millions)	$	11,685		$	10,917		7%
FX/CFD contracts RPM	$	133		$	109		22%
Payments ADV (millions)	$	84		$	75		12%
Payments RPM	$	10,414		$	12,557		(17)%

(1	)	Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.
(2	)	Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM while interest income related to securities lending is excluded.

Interest expense

	Three Months Ended December 31,
(in millions)		2024		2023	% Change
Interest expense attributable to:
Trading activities:
Institutional dealer in fixed income securities	$	223.6	$	172.1	30%
Securities borrowing		22.0		14.6	51%
Client balances on deposit		33.8		36.3	(7)%
Short-term financing facilities of subsidiaries and other direct interest of operating segments		26.8		13.0	106%
		306.2		236.0	30%
Corporate funding		15.2		13.2	15%
Total interest expense	$	321.4	$	249.2	29%

Increased interest expense attributable to trading activities principally resulted from an increase in our fixed income, securities borrowing, and physical business activities. The increase in interest expense for the three months ended December 31, 2024 attributable to corporate funding was principally due to an increase in the aggregate amount of senior secured notes outstanding, related to the March 1, 2024 issuance of our 7.875% Senior Secured Notes due 2031 (the “Notes due 2031”), effectively replacing our 8.625% Senior Secured Notes due 2025 (“the Notes due 2025”). This increase was partially offset by lower average borrowings on our revolving credit facility.

Variable vs. Fixed Expenses
The table below sets forth our variable expenses and non-variable expenses as a percentage of total non-interest expenses for the periods indicated.

	Three Months Ended December 31,
(in millions)		2024	% of Total		2023		% of Total
Variable compensation and benefits	$	133.3	26%	$	121.9		28%
Transaction-based clearing expenses		86.5	17%		74.3		17%
Introducing broker commissions		44.3	9%		39.1		9%
Total variable expenses		264.1	52%		235.3		54%
Fixed compensation and benefits		119.2	23%		96.2		22%
Other fixed expenses		126.6	25%		108.1		24%
Bad debts (recoveries), net		1.8	—%		(0.3	)	—%
Total non-variable expenses		247.6	48%		204.0		46%
Total non-interest expenses	$	511.7	100%	$	439.3		100%

Other Gains, net

The results of the three months ended December 31, 2024 included nonrecurring gains of $5.7 million resulting from proceeds received from class action settlements.

Segment Results

Our business activities are managed through four operating segments, including Commercial, Institutional, Self-Directed/Retail and Payments.

The tables below present the financial performance, a disaggregation of operating revenues, and select operating data and metrics used by management in evaluating the performance of our segments, for the periods indicated. Additional information on the performance of our segments will be included in our Quarterly Report on Form 10-Q to be filed with the SEC.

Commercial

	Three Months Ended December 31,
(in millions)		2024		2023		% Change
Revenues:
Sales of physical commodities	$	27,033.7	$	18,809.5		44%
Principal gains, net		67.2		77.1		(13)%
Commission and clearing fees		48.7		44.3		10%
Consulting, management and account fees		6.5		5.8		12%
Interest income		52.9		41.3		28%
Total revenues		27,209.0		18,978.0		43%
Cost of sales of physical commodities		26,976.7		18,779.6		44%
Operating revenues		232.3		198.4		17%
Transaction-based clearing expenses		17.6		15.8		11%
Introducing broker commissions		11.3		10.4		9%
Interest expense		14.2		8.8		61%
Net operating revenues		189.2		163.4		16%
Variable compensation and benefits		43.5		37.0		18%
Net contribution		145.7		126.4		15%
Fixed compensation and benefits		17.0		15.5		10%
Other fixed expenses		25.3		23.8		6%
Bad debts (recoveries), net		1.2		(0.1	)	n/m
Non-variable direct expenses		43.5		39.2		11%
Segment income		102.2		87.2		17%
Allocation of overhead costs		9.7		8.8		10%
Segment income, less allocation of overhead costs	$	92.5	$	78.4		18%

	Three Months Ended December 31,
		2024		2023	% Change
Operating Revenues (in millions):
Listed derivatives	$	62.2	$	59.4	5%
OTC derivatives		36.6		44.5	(18)%
Physical contracts		90.1		50.6	78%
Interest/fees earned on client balances		36.6		37.2	(2)%
Other		6.8		6.7	1%
	$	232.3	$	198.4	17%

Volumes and Other Select Data:
Listed derivatives (contracts, 000’s)		10,608		9,523	11%
Listed derivatives, average RPC ⁽¹⁾	$	5.67	$	5.95	(5)%
Average client equity – listed derivatives (millions)	$	1,727	$	1,700	2%
OTC derivatives (contracts, 000’s)		859		814	5%
OTC derivatives, average RPC	$	42.84	$	54.92	(22)%

(1	)	Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average RPC.

Institutional

	Three Months Ended December 31,
(in millions)		2024		2023		% Change
Revenues:
Sales of physical commodities	$	—	$	—		—%
Principal gains, net		108.6		103.2		5%
Commission and clearing fees		85.7		73.3		17%
Consulting, management and account fees		20.3		17.3		17%
Interest income		325.0		241.9		34%
Total revenues		539.6		435.7		24%
Cost of sales of physical commodities		—		—		—%
Operating revenues		539.6		435.7		24%
Transaction-based clearing expenses		63.0		52.9		19%
Introducing broker commissions		8.1		7.7		5%
Interest expense		294.5		226.5		30%
Net operating revenues		174.0		148.6		17%
Variable compensation and benefits		56.2		48.4		16%
Net contribution		117.8		100.2		18%
Fixed compensation and benefits		18.6		16.4		13%
Other fixed expenses		22.4		19.0		18%
Bad debts (recoveries), net		—		(0.4	)	(100)%
Non-variable direct expenses		41.0		35.0		17%
Other gain		1.3		—		n/m
Segment income	$	78.1	$	65.2		20%
Allocation of overhead costs		14.8		12.8		16%
Segment income, less allocation of overhead costs	$	63.3	$	52.4		21%

	Three Months Ended December 31,
		2024		2023	% Change
Operating Revenues (in millions):
Listed derivatives	$	49.6	$	49.8	—%
Securities		373.5		293.6	27%
FX contracts		9.6		8.0	20%
Interest/fees earned on client balances		70.3		60.5	16%
Other		36.6		23.8	54%
	$	539.6	$	435.7	24%

Volumes and Other Select Data:
Listed derivatives (contracts, 000’s)		42,572		41,236	3%
Listed derivatives, average RPC ⁽¹⁾	$	1.12	$	1.12	—%
Average client equity – listed derivatives (millions)	$	4,893	$	4,470	9%
Securities ADV (millions)	$	8,733	$	6,224	40%
Securities RPM ⁽²⁾	$	237	$	295	(20)%
Average money market/FDIC sweep client balances (millions)	$	1,197	$	1,060	13%
FX contracts ADV (millions)	$	4,082	$	3,970	3%
FX contracts RPM	$	36	$	34	6%

(1	)	Give-up fee revenues, related to contract execution for clients of other FCMs, revenues are excluded from the calculation of listed derivatives, average RPC.
(2	)	Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM, while interest income related to securities lending is excluded.

Self-Directed/Retail

	Three Months Ended December 31,
(in millions)		2024		2023	% Change
Revenues:
Sales of physical commodities	$	17.4	$	11.4	53%
Principal gains, net		79.5		55.6	43%
Commission and clearing fees		13.5		11.2	21%
Consulting, management and account fees		19.3		14.1	37%
Interest income		8.7		9.4	(7)%
Total revenues		138.4		101.7	36%
Cost of sales of physical commodities		14.3		9.2	55%
Operating revenues		124.1		92.5	34%
Transaction-based clearing expenses		3.4		3.5	(3)%
Introducing broker commissions		24.0		20.4	18%
Interest expense		2.1		1.6	31%
Net operating revenues		94.6		67.0	41%
Variable compensation and benefits		3.0		4.4	(32)%
Net contribution		91.6		62.6	46%
Fixed compensation and benefits		9.4		10.3	(9)%
Other fixed expenses		29.2		23.5	24%
Bad debts, net of recoveries		0.5		0.1	400%
Non-variable direct expenses		39.1		33.9	15%
Other gain		4.4		—	n/m
Segment income		56.9		28.7	98%
Allocation of overhead costs		12.6		11.5	10%
Segment income, less allocation of overhead costs	$	44.3	$	17.2	158%

	Three Months Ended December 31,
		2024		2023	% Change
Operating Revenues (in millions):
Securities	$	28.3	$	22.6	25%
FX/CFD contracts		89.0		66.6	34%
Physical contracts		2.5		0.8	213%
Interest/fees earned on client balances		0.7		0.7	—%
Other		3.6		1.8	100%
	$	124.1	$	92.5	34%

Volumes and Other Select Data:
FX/CFD contracts ADV (millions)	$	7,603	$	6,948	9%
FX/CFD contracts RPM	$	185	$	151	23%

Payments

	Three Months Ended December 31,
(in millions)		2024		2023	% Change
Revenues:
Sales of physical commodities	$	—	$	—	—%
Principal gains, net		54.4		57.5	(5)%
Commission and clearing fees		1.8		1.5	20%
Consulting, management, account fees		1.3		0.9	44%
Interest income		0.6		0.7	(14)%
Total revenues		58.1		60.6	(4)%
Cost of sales of physical commodities		—		—	—%
Operating revenues		58.1		60.6	(4)%
Transaction-based clearing expenses		1.8		1.8	—%
Introducing broker commissions		0.9		0.6	50%
Interest expense		—		—	—%
Net operating revenues		55.4		58.2	(5)%
Variable compensation and benefits		9.1		10.6	(14)%
Net contribution		46.3		47.6	(3)%
Fixed compensation and benefits		6.6		7.3	(10)%
Other fixed expenses		5.5		5.2	6%
Bad debts, net of recoveries		0.1		0.1	—%
Total non-variable direct expenses		12.2		12.6	(3)%
Segment income		34.1		35.0	(3)%
Allocation of overhead costs		5.6		5.1	10%
Segment income, less allocation of overhead costs	$	28.5	$	29.9	(5)%

	Three Months Ended December 31,
		2024		2023	% Change
Operating Revenues (in millions):
Payments	$	56.8	$	59.4	(4)%
Other		1.3		1.2	8%
	$	58.1	$	60.6	(4)%

Volumes and Other Select Data:
Payments ADV (millions)	$	84	$	75	12%
Payments RPM	$	10,414	$	12,557	(17)%

Overhead Costs and Expenses

We incur overhead costs and expenses, including certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities. The following table provides information regarding overhead costs and expenses. The allocation of overhead costs to operating segments includes costs associated with compliance, technology, and credit and risk costs. The share of allocated costs is based on resources consumed by the relevant businesses. In addition, the allocation of human resources and occupancy costs is principally based on employee costs within the relevant businesses.

	Three Months Ended December 31,
(in millions)		2024			2023		% Change
Compensation and benefits:
Variable compensation and benefits	$	20.2		$	19.4		4%
Fixed compensation and benefits		61.0			40.6		50%
		81.2			60.0		35%
Other expenses:
Occupancy and equipment rental		12.1			7.3		66%
Non-trading technology and support		15.3			13.0		18%
Professional fees		8.7			7.5		16%
Depreciation and amortization		6.4			5.5		16%
Communications		1.5			1.6		(6)%
Selling and marketing		0.9			1.3		(31)%
Trading systems and market information		1.6			1.7		(6)%
Travel and business development		2.6			1.7		53%
Other		3.0			5.2		(42)%
		52.1			44.8		16%
Overhead costs and expenses		133.3			104.8		27%
Allocation of overhead costs		(42.7	)		(38.2	)	12%
Overhead costs and expense, net of allocation to operating segments	$	90.6		$	66.6		36%

Balance Sheet Summary

The following table below provides a summary of asset, liability and stockholders’ equity information for the periods indicated.

(Unaudited) (in millions, except for share and per share amounts)	December 31, 2024		September 30, 2024
Summary asset information:
Cash and cash equivalents	$	1,398.2	$	1,269.0
Cash, securities and other assets segregated under federal and other regulations	$	3,156.6	$	2,841.2
Securities purchased under agreements to resell	$	5,479.2	$	5,201.5
Securities borrowed	$	2,120.7	$	1,662.3
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net	$	7,783.9	$	7,283.2
Receivables from clients, net and notes receivable, net	$	1,096.3	$	1,013.1
Financial instruments owned, at fair value	$	6,918.1	$	6,767.1
Physical commodities inventory, net	$	861.4	$	681.1
Property and equipment, net	$	145.1	$	143.1
Operating right of use assets	$	159.7	$	157.0
Goodwill and intangible assets, net	$	87.0	$	80.6
Other	$	379.1	$	367.1

Summary liability and stockholders’ equity information:
Accounts payable and other accrued liabilities	$	491.3	$	548.8
Operating lease liabilities	$	198.6	$	195.9
Payables to clients	$	11,338.2	$	10,345.9
Payables to broker-dealers, clearing organizations and counterparties	$	445.5	$	734.2
Payables to lenders under loans	$	550.0	$	338.8
Senior secured borrowings, net	$	543.3	$	543.1
Securities sold under agreements to repurchase	$	8,872.9	$	8,581.3
Securities loaned	$	1,826.5	$	1,615.9
Financial instruments sold, not yet purchased, at fair value	$	3,541.6	$	2,853.3
Stockholders’ equity	$	1,777.4	$	1,709.1

Common stock outstanding – shares		32,034,629		31,874,447
Net asset value per share	$	55.48	$	53.62

Three-for-Two Stock Split

On February 5, 2025, the Company’s Board of Directors approved a three-for-two split of its common stock to make stock ownership more accessible to employees and investors. The stock split will be effected as a stock dividend entitling each stockholder of record to receive one additional share of common stock for every two shares owned. Additional shares issued as a result of the stock dividend will be distributed after close of trading on March 21, 2025, to stockholders of record at the close of business on March 11, 2025. Cash will be distributed in lieu of fractional shares based on the opening price of a share of common stock on March 12, 2025. Trading is expected to begin on a stock split-adjusted basis at market open on March 24, 2025. All share and per share amounts contained herein have not been retroactively adjusted for this subsequent stock split.

Conference Call & Web Cast

A conference call to discuss the Company’s financial results will be held tomorrow, Thursday, February 6, 2025 at 9:00 a.m. Eastern time. The call may also include discussion of Company developments, and forward-looking and other material information about business and financial matters. A live webcast of the conference call as well as additional information to review during the call will be made available in PDF form on-line on the Company’s corporate web site at https://register.vevent.com/register/BIe20141cf7fd043c89fde461964a3582e approximately ten minutes prior to the start time. Participants may preregister for the conference call here.

For those who cannot access the live broadcast, a replay of the call will be available at https://www.stonex.com.

About StoneX Group Inc.

StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The Company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune-500 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ:SNEX), StoneX Group Inc. and its more than 4,600 employees serve more than 54,000 commercial, institutional, and payments clients, and more than 400,000 retail accounts, from more than 80 offices spread across six continents. Further information on the Company is available at www.stonex.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the Company’s financial condition, results of operations, business strategy, financial needs of the Company and the stock split. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to StoneX Group Inc., are intended to identify forward-looking statements.

These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including adverse changes in economic, political and market conditions, including losses from our market-making and trading activities arising from counterparty failures, the loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of foreign, United States (“U.S.”) federal and U.S. state securities laws, the impact of changes in technology in the securities and commodities trading industries, and other risks discussed in our filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2024. Although we believe that our forward-looking statements are based upon reasonable assumptions regarding our business and future market conditions, there can be no assurances that our actual results will not differ materially from any results expressed or implied by our forward-looking statements.

These forward-looking statements speak only as of the date of this press release. StoneX Group Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

StoneX Group Inc.

Investor inquiries:

Kevin Murphy
(212) 403 – 7296
kevin.murphy@stonex.com

SNEX-G

The MIL Network –

February 6, 2025

MIL-OSI: Great Elm Group Reports Fiscal 2025 Second Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

PALM BEACH GARDENS, Fla., Feb. 05, 2025 (GLOBE NEWSWIRE) — Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal second quarter ended December 31, 2024.

Fiscal Second Quarter 2025 and Recent Highlights

Great Elm Capital Corp. (NASDAQ: GECC) raised an additional $13.2 million of equity at NAV in December 2024, through the issuance of approximately 1.1 million shares of GECC common stock to Summit Grove Partners (“SGP”).
On February 4, 2025, the Company acquired the assets of Greenfield CRE, a leading construction management company and longstanding partner of Monomoy.
- In connection with the acquisition, Great Elm formed Monomoy Construction Services, LLC (“MCS”) and combined Greenfield with Monomoy BTS Construction Management to launch an integrated, full-service construction business.
- MCS will be dedicated to serving Great Elm’s various real estate verticals, as well as expanding its existing third-party consulting business.
GEG’s fee-paying assets under management (“FPAUM”) and assets under management (“AUM”) totaled approximately $538 million and $751 million, respectively.
- FPAUM and AUM growth of 17% and 14%, respectively, compared to the prior-year period.
Total revenue for the second quarter grew 24% to $3.5 million, compared to $2.8 million for the prior-year period.
- Growth in revenue was primarily driven by increased revenue from Monomoy BTS, Corporation and increased GECC management fees, due to growth in FPAUM.
- Great Elm collected incentive fees from GECC totaling $0.5 million for the three months ended December 31, 2024.
Net income from continuing operations for the second quarter was $1.4 million, compared to a net loss from continuing operations of ($0.2) million in the prior-year period.
Adjusted EBITDA for the second quarter was $1.0 million, compared to $0.6 million in the prior-year period.
Through February 4, 2025, Great Elm has repurchased approximately 4.1 million shares for $7.4 million, at an average price of $1.83 per share, through its share repurchase program.
- Book value per share was $2.30 as of December 31, 2024, excluding Consolidated Funds.
As of December 31, 2024, GEG had approximately $44 million of cash on its balance sheet to support growth initiatives across its alternative asset management platform.

Management Commentary

Jason Reese, Chief Executive Officer of the Company, stated, “We delivered a solid fiscal second quarter 2025, continuing our positive momentum by expanding our assets under management, growing revenue across our credit and real estate businesses and generating strong returns on our investments. Our BDC closed another successful capital raise at NAV, increased its first quarter dividend to 37 cents per share and announced a special dividend in December of 5 cents per share. Additionally, the Great Elm Credit Income Fund (“GECIF”) continued to perform very well, closing December with net inception-to-date returns of approximately 13.9%.¹ GECIF’s established track record leaves us well-positioned to attract further capital to scale our investment management platform.”

“In Real Estate, we were thrilled to announce the acquisition of Greenfield CRE into our newly formed Monomoy Construction Services business. We expect this transaction to enhance our construction management expertise, expand our scope of services, and fortify our overall real estate value proposition to our investors and tenants. Our long-standing relationship with Greenfield will allow us to quickly benefit from the launch of our fully integrated, full-service real estate platform. Importantly, we maintained our commitment to the GEG share repurchase program, continuing to buy back shares at an attractive discount to book value. Looking ahead, we remain focused on executing on our strategic priorities: growing our core credit and real estate businesses, pursuing compelling investment opportunities across our platform and leveraging our strong balance sheet to maximize shareholder value.”

GEG Managed Vehicle Highlights

GECC demonstrated continued strong performance, raised meaningful capital and increased its quarterly base distribution.
- GECC raised $13.2 million of equity at Net Asset Value (“NAV”) through the issuance of approximately 1.1 million shares of GECC common stock to SGP.
- GEG demonstrated its commitment to growing its credit platform through a $3.3 million investment in SGP.
- GECC announced a 5.7% increase on its quarterly base distribution to $0.37 per share for the first quarter of 2025 (compared to the prior $0.35 per share) and paid a special cash distribution of $0.05 per share in January 2025.
Monomoy BTS and Monomoy REIT continued to execute on their strategic priorities.
- Monomoy BTS completed construction of its second build-to-suit property in Mississippi and made meaningful progress on its third project in Florida.
- Monomoy REIT closed on three property purchases for approximately $3.8 million and maintains a strong pipeline of transaction opportunities and open requirements from our tenants.
GECIF delivered a strong return on invested capital of approximately 13.9%, net of fees, for the period from its inception through December 31, 2024.¹

Discussion of Financial Results for the Fiscal Second Quarter Ended December 31, 2024

GEG reported total revenue of $3.5 million, up 24% from $2.8 million in the prior-year period.

GEG recorded net income from continuing operations of $1.4 million, compared to a net loss from continuing operations of ($0.2) million in the prior-year period.

GEG recorded Adjusted EBITDA of $1.0 million, compared to $0.6 million in the prior-year period.

Monomoy CRE, LLC Acquisition

On February 4, 2025, Great Elm acquired the assets of Greenfield, a leading construction management company and longstanding partner of MCRE, our real estate investment manager. In connection with the acquisition, Great Elm formed Monomoy Construction Services, LLC and combined the assets of Greenfield with the assets of Monomoy BTS Construction Management to launch an integrated, full-service construction business. With MCS, Monomoy will offer a full-service, in-house suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.

Stock Repurchase Program

In the fiscal first quarter 2025, GEG’s Board of Directors approved an incremental stock repurchase program under which GEG is authorized to repurchase up to $20 million in the aggregate of its outstanding common stock in the open market. As of February 4, 2025, the Company has repurchased approximately 4.1 million shares for $7.4 million under this program.

Fiscal 2025 Second Quarter Conference Call & Webcast Information

When:		Thursday, February 6, 2025, 8:30 a.m. Eastern Time (ET)

Call:		All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13746970 if asked.

Webcast:		The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here.

About Great Elm Group, Inc.

Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

Non-GAAP Financial Measures

The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.

Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.

Endnotes
¹Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding fourteen months ended December 31, 2024, with distributions reinvested, net of founder’s class fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.

Media & Investor Contact:
Investor Relations
geginvestorrelations@greatelmcap.com

Great Elm Group, Inc.
Condensed Consolidated Balance Sheets (unaudited)
Dollar amounts in thousands (except per share data)

ASSETS	December 31, 2024			June 30, 2024
Current assets
Cash and cash equivalents	$	44,288		$	48,147
Restricted cash		–			1,571
Receivables from managed funds		3,725			2,259
Investments in marketable securities		–			9,929
Investments, at fair value		49,918			44,585
Prepaid and other current assets		5,275			1,215
Real estate assets, net		6,524			5,769
Assets of Consolidated Funds:
Cash and cash equivalents		2,568			2,371
Investments, at fair value		11,902			11,471
Other assets		223			253
Total current assets		124,423			127,570
Identifiable intangible assets, net		10,510			11,037
Right-of-use assets		1,784			225
Other assets		1,770			1,614
Total assets	$	138,487		$	140,446
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	185		$	317
Payable for securities purchased		19			–
Accrued expenses and other current liabilities		2,817			7,009
Current portion of related party payables		254			634
Current portion of lease liabilities		335			137
Liabilities of Consolidated Funds:
Payable for securities purchased		340			100
Accrued expenses and other liabilities		151			162
Total current liabilities		4,101			8,359
Lease liabilities, net of current portion		1,442			57
Long-term debt (face value $26,945)		26,231			26,090
Related party payables, net of current portion		–			–
Convertible notes (face value $36,380 and $35,494, including $16,578 and $16,174 held by related parties, respectively)		35,838			34,900
Other liabilities		817			845
Total liabilities		68,429			70,251
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding		–			–
Common stock, $0.001 par value; 350,000,000 shares authorized and 29,519,825 shares issued and 27,150,036 outstanding at December 31, 2024; and 31,875,285 shares issued and 30,494,448 outstanding at June 30, 2024		26			30
Additional paid-in-capital		3,311,447			3,315,638
Accumulated deficit		(3,249,139	)		(3,252,954	)
Total Great Elm Group, Inc. stockholders’ equity		62,334			62,714
Non-controlling interests		7,724			7,481
Total stockholders’ equity		70,058			70,195
Total liabilities and stockholders’ equity	$	138,487		$	140,446

Great Elm Group, Inc.
Condensed Consolidated Statements of Operations (unaudited)
Amounts in thousands (except per share data)

	For the three months ended December 31,						For the six months ended December 31,
	2024			2023			2024			2023
Revenues	$	3,507		$	2,819		$	7,499		$	6,129
Cost of revenues		458			–			1,093			–
Operating costs and expenses:
Investment management expenses		3,431			2,839			6,489			5,601
Depreciation and amortization		284			283			557			566
Selling, general and administrative		1,306			2,393			3,312			4,108
Expenses of Consolidated Funds		5			–			21			–
Total operating costs and expenses		5,026			5,515			10,379			10,275
Operating loss		(1,977	)		(2,696	)		(3,973	)		(4,146	)
Dividends and interest income		1,567			2,072			3,125			4,058
Net realized and unrealized gain		2,428			1,204			6,206			4,488
Net realized and unrealized gain (loss) on investments of Consolidated Funds		(29	)		114			249			114
Interest and other income of Consolidated Funds		395			128			779			128
Interest expense		(1,030	)		(1,061	)		(2,058	)		(2,123	)
(Loss) income before income taxes from continuing operations		1,354			(239	)		4,328			2,519
Income tax benefit (expense)		–			–			–			–
Net (loss) income from continuing operations		1,354			(239	)		4,328			2,519
Discontinued operations:
Net income from discontinued operations		–			–			–			16
Net (loss) income	$	1,354		$	(239	)	$	4,328		$	2,535
Less: net income attributable to non-controlling interest, continuing operations		178			111			513			111
Net (loss) income attributable to Great Elm Group, Inc.	$	1,176		$	(350	)	$	3,815		$	2,424
Net (loss) income attributable to shareholders per share
Basic	$	0.04		$	(0.01	)	$	0.13		$	0.08
Diluted	$	0.04		$	(0.01	)		0.12			0.08
Weighted average shares outstanding
Basic		27,983			29,889			28,531			29,734
Diluted		28,767			29,889			39,793			30,916

Great Elm Group, Inc.
Reconciliation from Net Income (loss) from Continuing Operations to Adjusted EBITDA
Dollar amounts in thousands

	Three months ended December 31,						Six months ended December 31,
(in thousands)	2024			2023			2024			2023
Net income (loss) from continuing operations – GAAP	$	1,354		$	(239	)	$	4,328		$	2,519
Interest expense		1,030			1,061			2,058			2,123
Income tax expense (benefit)		–			–			–			–
Depreciation and amortization		284			283			557			566
Non-cash compensation		755			839			1,872			1,726
(Gain) loss on investments		(2,399	)		(1,318	)		(6,455	)		(4,602	)
Change in contingent consideration		–			18			(6	)		36
Adjusted EBITDA	$	1,024		$	644		$	2,354		$	2,368

The MIL Network –

February 6, 2025

MIL-OSI USA: Tuberville Takes Action to Protect Women’s Olympic Sports in Honor of National Girls and Women in Sports Day

US Senate News:

Source: United States Senator Tommy Tuberville (Alabama)

WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) reintroduced the Protection of Women in Olympic and Amateur Sports Act to prohibit any governing body recognized by the U.S. Olympic Committee (USOC) from allowing men to participate in any athletic event intended for females. The bill modifies eligibility requirements for amateur sports governing organizations. Senator Tuberville re-introduced the legislation on National Girls and Women in Sports Day and as part of his continuing fight to protect Title IX and save women’s sports.

Representative Greg Steube (R-FL-17) introduced the House version of this bill.

“Men should not be competing in women’s sports at any level,” said Senator Tuberville. “We were all deeply disturbed last summer to see videos of men boxing against women in the Olympics. This is not only dangerous, but it is incredibly unfair to the young women who have trained their whole lives to compete. Whether in little league or the Olympics, it’s unsafe, it’s unfair, and it’s just plain wrong. I am proud to introduce this bill and hope to see it signed into law long before the United States hosts the 2028 Summer Olympics so we can all enjoy watching safe, fair competition.”

“From the swimming pool to the boxing ring, far-left activists have hijacked the rulebook to push their extremist agenda onto sports governing bodies. Not only is this antithetical to the principles of fair competition, but it constitutes a direct assault on the future of women’s sports altogether,” said Rep. Steube. “It is more important than ever that we stand up for common sense by prohibiting biological males from competing in female athletics. That is why I have reintroduced The Protection of Women in Olympic and Amateur Sports Act to protect the integrity of women’s sports from woke ideologues.”

The Protection of Women in Olympic and Amateur Sports Act boasts the support of a broad coalition of organizations, key stakeholders, and women’s groups.

“As an athlete who has experienced the injustice of competing against a male firsthand, I’m grateful for the leadership of Representative Steube and Senator Tuberville. They have made it clear that they will fight for fairness, privacy, and safety for girls and women in sports,” said Riley Gaines, 12x NCAA All American Swimmer and Independent Women’s Forum Ambassador.

“Women and girls deserve the opportunity to compete in sports on a level playing field, free from unfair competition with male athletes in their own categories. With no national governing body of Olympic sports currently barring all males from women’s categories, this glaring inequity undermines opportunities for female athletes and the integrity of women’s sports. Congressman Steube’s Protection of Women in Olympic and Amateur Sports Act is a vital step to ensure fairness, empower women, and preserve the future of women’s athletics.” —Independent Council on Women’s Sports

“It’s obvious that men do not belong in women’s sports. Yet despite the overwhelming support for this position among the American people, too many sports bodies still allow men who claim to be women to compete against female athletes. This is incredibly unfair to women, and it needs to end. APP is grateful to Congressman Steube and Senator Tuberville for their long-standing leadership in defense of women’s sports, and we are proud to once again support this legislation.” —Terry Schilling, President of American Principles Project

“On numerous occasions, women have been sidelined and victimized due to extreme transgender ideology. It’s time to keep men out of women’s sports. We applaud Representative Steube for his leadership on this issue and urge all members of Congress—regardless of party—to vote for The Protection of Women in Olympic and Amateur Sports Act.” —Kris Ullman, President of Eagle Forum

“Women’s Liberation Front applauds Rep. Steube’s legislation aimed at preserving women’s sports for women and girls. The world witnessed the travesty carried out in Women’s Olympic Boxing in 2024 when the International Olympic Committee allowed men to box women. The men of course won, robbing real women of medals and titles they trained for years to win. We appreciate this legislation as a return to sanity and a decisive move to protect women’s sports.” —Women’s Liberation Front

“Women and girls should never be reduced to spectators in their own sports. Allowing men to deprive women of medals, podium spots, public recognition, and opportunities to compete is unfair and unacceptable. Our laws must acknowledge the clear biological differences between men and women in order to preserve equal athletic opportunities for female athletes. Women and girls deserve a fair and level playing field. We applaud Rep. Steube for his leadership on this bill,” said Matt Sharp, Director of the Center for Public Policy and senior counsel for the Alliance Defending Freedom

“I appreciate Senator Tuberville and Representative Steube for their leadership on protecting women and girls in athletics. Allowing even a single female athlete to be displaced by a male is discriminatory, risky, and unfair. And it must be stopped. That is precisely what lifelong sports advocate Senator Ted Stevens would want — equality in sports, preserving the safety, fairness and equal opportunity for female athletes. This bill will do just that,” said Paula Scanlan, Independent Women’s Voice Ambassador.

“As a former athlete who was forced to compete against a male, resulting in a life-altering injury, it’s crucial to recognize that allowing men’s participation in women’s sports not only deprives women of opportunities but also exposes them to significant danger. I deeply admire Representative Steube and Senator Tuberville for their leadership in addressing this issue and standing up for fairness and safety, especially for women,” said Payton McNabb, Independent Women’s Voice Ambassador.

Read the bill here.

BACKGROUND:

USA Boxing updated their National Rule Book to add a Transgender definition and link to a new Transgender Policy, effective on January 1, 2024. The policy states: “a boxer who transitions from male to female is eligible to compete in the female category” with certain conditions.

Under the Ted Stevens Olympic and Amateur Sports Act, Congress chartered the U.S. Olympic Committee (USOC) and allowed the organization to recognize governing bodies for individual sports. USA Boxing has been recognized by the USOC as the official governing body for boxing. The Act sets out a variety of requirements that must be followed by these individual governing bodies in order to be certified by USOC.

In February 2024, Senator Tuberville originally introduced the Protection of Women in Olympic and Amateur Sports Act during the 118th Congress. Representative Greg Steube introduced the House version.

Fighting for Women’s Sports:

As a former educator, mentor, and coach for more than 40 years, Senator Tuberville is concerned about the future of girls’ and women’s sports. He began his career coaching high school girls’ basketball shortly after the enactment of Title IX and witnessed the law’s positive impacts firsthand. Senator Tuberville has been a vocal advocate of preserving Title IX and urged Joe Biden’s Department of Education officials to keep the protections in place.

In January 2025, Senator Tuberville led 36 Republican colleagues in re-introducing the Protection of Women and Girls in Sports Act of 2025 to preserve Title IX protections for female athletes and ensure fair, safe competition in women’s sports across the country. Senator Tuberville’s bill passed the House in January 2025.

MORE:

ICYMI: Tuberville Joins “The Megyn Kelly Show” to Advocate for Senate Leadership to Schedule Title IX Legislation for a Vote

ICYMI: Tuberville in OutKick: Senate to Consider My Bill, the Protection of Women and Girls in Sports Act

Tuberville Introduces Hallmark Legislation to Preserve Title IX, Protect Women’s Sports

ICYMI: Tuberville Joins Harris Faulkner on Fox News to Discuss Title IX, Save Women’s Sports

Tuberville Leads Colleagues in Fight to Save Title IX, Women’s Sports

Tuberville, Blackburn Urge NCAA President to Keep Men Out of Women’s Sports

The Globalist-Left’s Assault on Female Athletics

Tuberville Sponsors Resolution to Overturn Biden’s Attack on Title IX, Save Women’s Sports

Tuberville Takes Action to Recognize October 10^th as ‘American Girls in Sports Day’

Tuberville Demands Answers on Biden Administration’s Radical Rewrite of Title IX

ICYMI: Tuberville Joins Lou Holtz: There’s an Attack on Title IX

ICYMI: Tuberville on Newsmax: Democrats are Trying to Destroy Women’s Sports, Title IX

Tuberville Leads Roundtable on Protecting Title IX and Saving Women’s Sports

ICYMI: Tuberville Hosts Roundtable About Saving Women’s Sports

What Democrats’ Vote Against Women Reveals About the Future of Sports

Tuberville Forces Senate Vote to Protect Women’s Sports

Tuberville Demands Answers from NCAA, Dept of Ed on Title IX

Tuberville Introduces Legislation to Prohibit Men from Competing in Women’s Olympic Sports

Senator Tuberville joins Fox and Friends to discuss the 50th Anniversary of Inflation and Title IX

Tuberville Calls for Fairness in Women’s Sports

Ahead of 50^th Anniversary of Title IX, Senator Tuberville Warns Biden Admin is Hacking Away at Women’s Progress

Senator Tuberville: Biden Title IX Modifications Will Destroy ‘Opportunities For Generations Of Women And Girls’

Biden executive order will ruin women’s sports and erode Title IX

Dr. Ben Carson, Sen. Tuberville Break Down Why They Think Trans Athletes Shouldn’t Compete In Women’s Sports

U.S. Sen. Tommy Tuberville says Biden administration pushing women to the sidelines

Tuberville on Biden Administration’s Upcoming Title IX Proposed Rule: ‘It would take a wrecking ball to the five decades of Title IX success and tilt what was a level playing field to the far left’

Tuberville Presses Under Secretary of Education Nominee on Title IX, Free Speech on Campus

Tuberville: The Real March Madness

Tuberville Warns Secretary Cardona Against Weakening Title IX Protections

Tuberville Emphasizes Importance of Title IX Protections

Tuberville Offers Amendment Protecting Women’s Title IX Rights

Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

February 6, 2025
MIL-OSI Security: International Arms Dealer Charged with Exporting U.S. Firearms to Russia

Source: Office of United States Attorneys

Defendant Unlawfully Exported Semi-Automatic Rifle-Pistols from U.S. Company Through JFK International Airport

Earlier today, an indictment was filed in federal court in Brooklyn charging Sergei Zharnovnikov, an arms dealer and citizen of Kyrgyzstan, with conspiring to export firearms from the United States to Russia without the necessary licenses and with illegal smuggling. Zharnovnikov traveled from Kyrgyzstan to the United States last month and was arrested on January 24, 2025 in Las Vegas, Nevada, where he was attending the Shooting, Hunting, and Outdoor Trade (SHOT) Show to meet with U.S. arms dealers. Zharnovnikov has been detained pending trial and will be arraigned in the Eastern District of New York at a later date.

John J. Durham, United States Attorney for the Eastern District of New York, Devin DeBacker, head of the Justice Department’s National Security Division, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (BIS-OEE), announced the arrest and charges.

“As alleged, the defendant operated a sophisticated scheme to circumvent export controls and to export semi-automatic firearms and send them to Russia,” stated United States Attorney Durham. “Today’s indictment sends a message to the world that we will vigorously enforce statutes that control and restrict the export of items that could be detrimental to the foreign policy or national security of the United States, in this case, preventing U.S.-made firearms from getting into the wrong hands.”

Mr. Durham thanked the U.S. Attorney’s Office for the District of Nevada for its assistance with the case.

“Violations of export control laws carry significant consequences for perpetrators in the U.S. and abroad,” said DeBacker, head of the Justice Department’s National Security Division. “The Department of Justice is committed to working with our partners to hold accountable those who violate our laws to smuggle firearms to prohibited destinations such as Russia.”

“Attempting to illegally sell arms to Russia using multiple companies may seem like a method to evade United States sanctions, it is however a definite way to end up under arrest. Sergei Zharnovnikov is alleged to have knowingly conspired with others to violate the export control laws of the United States to provide U.S made firearms to Russian companies. The FBI will continue to enforce the export control laws enacted to safeguard our national security.”

“The Bureau of Industry and Security is committed to aggressively investigating the illegal transshipment of US firearms to adversaries like Russia through third countries,” said BIS-OEE Special Agent in Charge Carson. “Companies that provide false information to BIS to obtain export authorizations to circumvent our controls will be found out and held accountable.”

As alleged in the indictment and other court filings, since at least March 2020, the defendant, together with others, conspired to export firearms on the United States DOC Control List from the U.S. to Russia. The defendant, the General Director and owner of an arms dealer located in Bishkek, Kyrgyzstan (Kyrgyzstan Company-1), entered into a five-year, $900,000 contract with a company located in Chesapeake, Virginia (U.S. Company‑1) to purchase and export U.S. Company-1 firearms to Kyrgyzstan. DOC issued a license for U.S. Company-1 to export firearms to Kyrgyzstan Company-1, but the license prohibited the export or re-export of the firearms to Russia. Nevertheless, the defendant exported and re-exported U.S. Company‑1 firearms to Russia via Kyrgyzstan. These illegally exported firearms included semi‑automatic hybrid rifle-pistols from U.S. Company-1.

As alleged, after Kyrgyzstan Company-1 entered into a contract with U.S. Company-1, a second arms dealer company in Bishkek associated with the defendant (Kyrgyzstan Company-2) entered a contract with a Russian arms dealer (Russian Company-1) located in Moscow. The contract between Russian Company-1 and Kyrgyzstan Company-2 provided that Kyrgyzstan Company‑2 would export “Goods” to Russian Company-1 in the amount of $10 million and noted that the “Goods” could be delivered in batches. In correspondence in 2018, Russian Company-1 described the defendant’s company, Kyrgyzstan Company-1, as its “partner company.”

On or about February 3, 2021, U.S. Company-1 received an export license from DOC to export over $800,000 worth of firearms and parts to Kyrgyzstan Company-1. The license stated that items within the scope of the license “may not be reexported or transferred (in-country),” subject to certain exceptions not applicable here.

On or about July 2, 2022, the defendant emailed his banker: “Make payment according to the invoice attached to the letter,” and attached a commercial invoice from U.S. Company-1, which listed, among other things, 25 semi-automatic rifle-pistols with 25 unique serial numbers. Two days later, on or about July 4, 2022, Kyrgyzstan Company‑2, sent $67,000 to Kyrgyzstan Company-1. The next day, on or about July 5, 2022, Kyrgyzstan Company‑1 paid U.S. Company-1 $65,564—the full amount listed in the invoice from U.S. Company-1.

According to an Electronic Export Information (EEI) made on July 7, 2022, Company-1 exported semi-automatic rifles from John F. Kennedy International Airport to Kyrgyzstan Company-1 pursuant to its February 3, 2021 export license on or about July 10, 2022. According to the EEI filing, the value of the export from U.S. Company-1 to Kyrgyzstan Company-1 was over $59,000. The EEI filing’s corresponding license application indicated that the firearms were for “commercial resale in Kyrgyzstan.”

On or about August 8, 2022, the defendant received a spreadsheet titled “Supply [U.S. Company-1] ([Russian Company-1]) weapon numbers.” Russian Company-1 is a Russian company, and the DOC license did not authorize the export or re-export of the U.S. Company-1 firearms to Russia. The spreadsheet listed the same semi-automatic rifle-pistol the defendant purchased from U.S. Company-1 and serial numbers matching the U.S. Company‑1 Invoice.

On or about November 14, 2022, the General Director of Russian Company‑1 executed a form used by tax authorities of the member states of the Eurasian Economic Union, which includes both Kyrgyzstan and Russia. The form listed the seller as Kyrgyzstan Company‑2 and the buyer as Russian Company-1 with an address in Moscow, Russia, and identified the goods as the same semi‑automatic rifle‑pistols that U.S. Company-1 exported to Kyrgyzstan Company‑1, the defendant’s company. The defendant did not apply for, obtain or possess a license to export or re-export the semi‑automatic pistol-rifles to Russia.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, the defendant faces up to 30 years’ imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ellen H. Sise is in charge of the prosecution, along with Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section (CES), with assistance from Litigation Analyst Rebecca Roth and CES Trial Attorney Scott Claffee.

The case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

The Defendant:

SERGEI ZHARNOVNIKOV
Age: 46
Bishkek, Kyrgyzstan

E.D.N.Y. Docket No. 25-CR-45 (ENV)

MIL Security OSI –

February 6, 2025
MIL-OSI: ATIF Holdings Limited Announces Closing of $2.5 Million Registered Direct Offering and Private Placement

Source: GlobeNewswire (MIL-OSI)

LAKE FOREST, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — ATIF Holdings Limited (Nasdaq: ZBAI) (the “Company”), a Lake Forest-based business consulting company that specializes in providing professional IPO, M&A advisory and post-IPO compliance services to small and medium-sized companies seeking to go public on a stock exchange in the United States, today announced the closing of its previously announced registered direct offering and concurrent private placement with an institutional investor. The Company issued ordinary shares and pre-funded warrants (“Pre-Funded Warrants”) in a registered direct offering. In a concurrent private placement, the Company also issued to the same investor warrants to purchase ordinary shares (the “Warrants”). Aggregate gross proceeds to the Company from both transactions were approximately $2.5 million. The transactions closed on February 5, 2025.

The transactions consisted of the sale of 1,580,000 ordinary shares (each a “Share”) Pre-Funded Warrants to purchase 887,553 Shares, each of which was sold together with one Warrant to purchase one Share at an exercise price of $1.20. The offering price per Share was $1.00 (or $0.99 for each Pre-Funded Warrant, which is equal to the offering price per Share minus an exercise price of $0.01 per Pre-Funded Warrant). The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until exercised in full.

The Company expects to use the net proceeds from the offerings, together with its existing cash, for general corporate purposes and working capital.

R. F. Lafferty & Co., Inc. acted as exclusive placement agent for the offerings. Hunter Taubman Fischer & Li LLC acted as counsel to the Company. Lucosky Brookman LLP acted as counsel to R. F. Lafferty & Co., Inc.

The registered direct offering was made pursuant to an effective shelf registration statement on Form S-3 (No. 333-268927) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on March 21, 2023. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering was filed with the SEC and is available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting R. F. Lafferty & Co., Inc by email at offerings@rflafferty.com or via standard mail to R. F. Lafferty & Co., Inc, 40 Wall Street, 27^th Floor, New York, NY10005.

The offer and sale of the securities in the private placement were made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The securities were offered only to accredited investors. Pursuant to the securities purchase agreement with the investor, the Company has agreed to file one or more registration statements with the SEC covering the resale of the ordinary shares issuable upon exercise of the Warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ZBAI

ATIF Holdings Limited (NASDAQ: ZBAI) is a Lake Forest-based business consulting company that specializes in providing professional IPO, M&A advisory and post-IPO compliance services to small and medium-sized companies seeking to go public on a stock exchange in the United States. The company has a proven track record in successfully delivering comprehensive U.S. IPO consulting services to clients primarily in the United States but also internationally. The mission of ZBAI is to provide one-stop, comprehensive consulting services that guide clients through the complex and often challenging process of going public. ZBAI recognizes the complexity and challenges associated with the process of going public, and endeavors to simplify it while ensuring optimal outcomes for its clients through its comprehensive consulting services. ZBAI has been awarded the “Golden Bauhinia Award”, the highest award in the financial and securities industry in Hong Kong, for “Top 10 Best Listed Companies”.

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the “safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, “estimated,” “projected,” Words such as “expect”, “anticipate”, “predict”, “plan”, “intend”, “believe”, “seek”, “may”, “will”, “should”, “future”, “propose” and variations of these words or similar expressions (or the opposite of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements do not guarantee future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control and may cause actual results or achievements to differ materially from those discussed in the forward-looking statements. Important factors include future financial and operating results, including revenues, income, expenses, cash balances and other financial items; Ability to manage growth and expansion; Current and future economic and political conditions; The ability to compete in industries with low barriers to entry; The ability to obtain additional financing to fund capital expenditure in the future. Ability to attract new customers and further enhance brand awareness; Ability to hire and retain qualified management and key staff; Trends and competition in the financial advisory services industry; Pandemic or epidemic disease; Except as required by law, the Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the expected results expressed or implied by the forward-looking statements we make. You should not interpret forward-looking statements as predictions of future events. Forward-looking statements represent only the beliefs and assumptions of our management as of the date such statements are made. The above forward-looking statements are made as of the date of this press release.

Contact Information
kenny@atifchina.com

The MIL Network –

February 6, 2025

MIL-OSI: LiveRamp Announces Results for Third Quarter FY25

Source: GlobeNewswire (MIL-OSI)

Revenue up 12% Year-Over-Year

Fourth Consecutive Quarter of Double-Digit Revenue Growth

Fiscal YTD Operating Cash Flow up 17% Year-Over-Year

SAN FRANCISCO, Feb. 05, 2025 (GLOBE NEWSWIRE) — LiveRamp ^® (NYSE: RAMP), the leading data collaboration platform, today announced its financial results for the fiscal 2025 third quarter ended December 31, 2024.

Q3 Financial Highlights¹

Total revenue was $195 million, up 12%.
Subscription revenue was $146 million, up 10%.
Marketplace & Other revenue was $50 million, up 20%.
GAAP gross profit was $140 million, up 9%. GAAP gross margin compressed by two percentage points to 72%. Non-GAAP gross profit was $146 million, up 11%. Non-GAAP gross margin compressed by one percentage point to 74%.
GAAP operating income was $15 million, in-line with the prior year. GAAP operating margin compressed by one percentage point to 8%. Non-GAAP operating income was $45 million, up 24%. Non-GAAP operating margin expanded by two percentage points to 23%.
GAAP and Non-GAAP diluted earnings per share were $0.17 and $0.55, respectively.
Net cash provided by operating activities was $45 million, up from $17 million.
Third quarter share repurchases totaled approximately 368,000 shares for $10 million. Fiscal year to date through December 31, 2024 share repurchases totaled approximately 2.8 million shares for $76 million.

A reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.

Commenting on the results, CEO Scott Howe said, “We posted a strong quarter, with revenue and operating income exceeding our expectations, and revenue growing at a double-digit rate for the fourth consecutive quarter. Our sales momentum improved appreciably in the third quarter as our Data Collaboration Platform and clean room solution are resonating with customers. This confirms the substantial market demand for our platform that helps customers efficiently use their first-party data to deliver, measure and optimize their digital advertising.”

GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results for the fiscal 2025 third quarter ended December 31, 2024 ($ in millions, except per share amounts):

_________________________

¹ Unless otherwise indicated, all comparisons are to the prior year period.


	GAAP		Non-GAAP
	Q3 FY25	Q3 FY24	Q3 FY25	Q3 FY24
Subscription revenue	$146	$132	—	—
YoY change %	10%	5%	—	—
Marketplace & Other revenue	$50	$42	—	—
YoY change %	20%	29%	—	—
Total revenue	$195	$174	—	—
YoY change %	12%	10%	—	—

Gross profit	$140	$129	$146	$131
% Gross margin	72%	74%	74%	75%
YoY change, pts	(2 pts)	1 pt	(1 pt)	(1 pt)

Operating income	$15	$15	$45	$36
% Operating margin	8%	9%	23%	21%
YoY change, pts	(1 pt)	24 pts	2 pts	5 pts

Net earnings	$11	$14	$37	$32
Diluted earnings per share	$0.17	$0.21	$0.55	$0.47

Shares to calculate diluted EPS	66.7	67.9	66.7	67.9
YoY change %	(2%)	5%	(2%)	4%

Operating cash flow	$45	$17	—	—
Free cash flow	—	—	$45	$14

Totals and year-over-year changes may not reconcile due to rounding.

A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.

Additional Business Highlights & Metrics

On February 25, 2025 we will host an investor day presentation in San Francisco (additional information). The event coincides with RampUp 2025, our annual customer and partner conference on February 25-27, 2025 (additional information).
In November 2024 we announced an expansion of the Quick Start Insights available on our Data Collaboration Platform to now offer media intelligence across a network of premium publishers. These standardized insights enable our customers to more quickly access and deploy media performance metrics — such as audience overlaps, optimal frequency, and last-touch attribution — from premium publisher and CTV data. As a result, LiveRamp customers now have a simplified way to enhance media buying and planning strategies and increase the time-to-value from clean room partnerships.
In January 2025 we announced in partnership with Mohegan, a leader in casino and entertainment destinations, the industry’s first casino media network. For the first time, brands can access Mohegan’s rich first-party insights to reach guests and players in addition to the ability to measure campaigns across the casino’s digital channels and on-premise experiences – such as in-app, loyalty programs, slot machines, and kiosks (additional information).
LiveRamp ended the quarter with 125 customers whose annualized subscription revenue exceeds $1 million, compared to 105 in the prior year period.
LiveRamp ended the quarter with 865 direct subscription customers, compared to 895 in the prior year period.
Subscription net retention was 108% and platform net retention was 111% for the quarter.
Annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was $491 million, up 10% compared to the prior year period.
Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $434 million, up 13% compared to the prior year period.

Financial Outlook

LiveRamp’s non-GAAP operating income guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.

For the fourth quarter of fiscal 2025, LiveRamp expects to report:

Revenue of between $184 million and $186 million, an increase of between 7% and 8%
GAAP operating loss of $8 million
Non-GAAP operating income of $22 million

For fiscal 2025, LiveRamp increases its guidance and expects to report:

Revenue of between $741 million and $743 million, an increase of between 12% and 13%
GAAP operating income of $10 million
Non-GAAP operating income of $135 million

Conference Call

LiveRamp will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to further discuss this information. Interested parties are invited to listen to a webcast of the conference, which can be accessed on LiveRamp’s investor site. A slide presentation will be referenced during the call and is available here.

About LiveRamp

LiveRamp is a global technology company that helps companies build enduring brand and business value by collaborating responsibly with data. A groundbreaking leader in foundational identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. We offer flexibility to collaborate wherever data lives to support a wide range of data collaboration use cases—within organizations, between brands, and across our global network of premier partners. Global innovators, from iconic consumer brands and tech platforms to retailers, financial services, and healthcare leaders, turn to LiveRamp to deepen customer engagement and loyalty, activate new partnerships, and maximize the value of their first-party data while staying on the forefront of rapidly evolving compliance and privacy requirements. LiveRamp is based in San Francisco, California with offices worldwide. Learn more at LiveRamp.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations for fiscal 2025 and beyond, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof.

These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.

Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to high interest rates, cost increases, the possibility of a recession, general inflationary pressure, geo-political circumstances that could result in increased economic uncertainties and the associated impacts of these potential events on our suppliers, customers and partners; the Company’s dependence upon customer renewals, new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; rapidly changing technology’s impact on our products and services; the risk that we fail to realize the potential benefits of or have difficulty integrating acquired businesses (including Habu); and attracting, motivating and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while operating in a hybrid work environment, with some employees working remotely at least some of the time within a rapidly changing industry, while also avoiding disruption from reductions in our current workforce as well as disruptions resulting from acquisition, divestiture and other activities affecting our workforce. Our global workforce strategy could possibly encounter difficulty and not be as beneficial as planned. Our international operations are also subject to risks, including the performance of third parties as well as impacts from war and civil unrest, that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ data and/or computer systems, or the risk that our current insurance coverage may not be adequate for such a breach, that an insurer might deny coverage for a claim or that such insurance will continue to be available to us on commercially reasonable terms, or at all, could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center or cloud hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Continued changes in the judicial, legislative, regulatory, accounting, cultural and consumer environments affecting our business, including but not limited to litigation, investigations, legislation, regulations and customs at the state, federal and international levels relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.

For a discussion of these and other risks and uncertainties that could affect LiveRamp’s business, reputation, results of operation, financial condition and stock price, please refer to LiveRamp’s filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of LiveRamp’s most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings.

The financial information set forth in this press release reflects estimates based on information available at this time.

LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.

To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.

For more information, contact:

LiveRamp Investor Relations
Investor.Relations@LiveRamp.com

LiveRamp^®and RampID™ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the three months ended December 31,
			$		%
	2024	2023	Variance		Variance

Revenues	195,412	173,869	21,543		12.4	%
Cost of revenue	54,998	44,934	10,064		22.4	%
Gross profit	140,414	128,935	11,479		8.9	%
% Gross margin	71.9%	74.2%

Operating expenses
Research and development	42,735	37,788	4,947		13.1	%
Sales and marketing	50,863	46,203	4,660		10.1	%
General and administrative	31,994	27,241	4,753		17.4	%
Gains, losses and other items, net	149	2,502	(2,353	)	(94.0	)%
Total operating expenses	125,741	113,734	12,007		10.6	%

Income from operations	14,673	15,201	(528	)	(3.5	)%
% Margin	7.5%	8.7%

Total other income, net	4,033	6,607	(2,574	)	(39.0	)%

Income from continuing operations before income taxes	18,706	21,808	(3,102	)	(14.2	)%
Income tax expense	9,184	8,429	755		9.0	%
Net earnings from continuing operations	9,522	13,379	(3,857	)	(28.8	)%

Earnings from discontinued operations, net of tax	1,688	598	1,090		182.3	%

Net earnings	11,210	13,977	(2,767	)	(19.8	)%

Basic earnings per share:
Continuing operations	0.15	0.20	(0.06	)	(28.5	)%
Discontinued operations	0.03	0.01	0.02		183.6	%
Basic earnings per share	0.17	0.21	(0.04	)	(19.4	)%

Diluted earnings per share:
Continuing operations	0.14	0.20	(0.05	)	(27.5	)%
Discontinued operations	0.03	0.01	0.02		187.4	%
Diluted earnings per share	0.17	0.21	(0.04	)	(18.4	)%

Basic weighted average shares	65,631	65,961
Diluted weighted average shares	66,743	67,943


Some totals may not sum due to rounding.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the nine months ended December 31,
			$		%
	2024	2023	Variance		Variance

Revenues	556,856	487,809	69,047		14.2	%
Cost of revenue	157,981	131,767	26,214		19.9	%
Gross profit	398,875	356,042	42,833		12.0	%
% Gross margin	71.6 %	73.0 %

Operating expenses
Research and development	130,742	106,040	24,702		23.3	%
Sales and marketing	156,145	135,217	20,928		15.5	%
General and administrative	94,324	79,914	14,410		18.0	%
Gains, losses and other items, net	752	9,192	(8,440	)	(91.8	)%
Total operating expenses	381,963	330,363	51,600		15.6	%

Income from operations	16,912	25,679	(8,767	)	(34.1	)%
% Margin	3.0 %	5.3 %

Total other income, net	12,674	17,887	(5,213	)	(29.1	)%

Income from continuing operations before income taxes	29,586	43,566	(13,980	)	(32.1	)%
Income tax expense	25,821	27,297	(1,476	)	(5.4	)%
Net earnings from continuing operations	3,765	16,269	(12,504	)	(76.9	)%

Earnings from discontinued operations, net of tax	1,688	985	703		71.4	%

Net earnings	5,453	17,254	(11,801	)	(68.4	)%

Basic earnings per share:
Continuing operations	0.06	0.25	(0.19	)	(76.8	)%
Discontinued operations	0.03	0.01	0.01		71.5	%
Basic earnings per share	0.08	0.26	(0.18	)	(68.4	)%

Diluted earnings per share:
Continuing operations	0.06	0.24	(0.18	)	(76.8	)%
Discontinued operations	0.03	0.01	0.01		71.9	%
Diluted earnings per share	0.08	0.25	(0.17	)	(68.3	)%

Basic weighted average shares	66,182	66,247
Diluted weighted average shares	67,505	67,733


Some totals may not sum due to rounding.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the three months ended December 31,		For the nine months ended December 31,
	2024	2023	2024	2023

Income from continuing operations before income taxes	18,706	21,808	29,586	43,566
Income tax expense	9,184	8,429	25,821	27,297
Net earnings from continuing operations	9,522	13,379	3,765	16,269
Earnings from discontinued operations, net of tax	1,688	598	1,688	985
Net earnings	11,210	13,977	5,453	17,254

Basic earnings per share	0.17	0.21	0.08	0.26
Diluted earnings per share	0.17	0.21	0.08	0.25

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,686	1,181	11,280	5,688
Non-cash stock compensation (cost of revenue and operating expenses)	26,760	17,497	83,813	46,524
Restructuring and merger charges (gains, losses, and other)	149	2,502	752	9,192
Transformation costs (general and administrative)	—	—	—	1,875
Total excluded items from continuing operations	30,595	21,180	95,845	63,279

Income from continuing operations before income taxes and excluding items	49,301	42,988	125,431	106,845
Income tax expense (2)	12,421	10,732	30,537	25,935
Non-GAAP net earnings from continuing operations	36,880	32,256	94,894	80,910

Non-GAAP earnings per share from continuing operations
Basic	0.56	0.49	1.43	1.22
Diluted	0.55	0.47	1.41	1.19

Basic weighted average shares	65,631	65,961	66,182	66,247
Diluted weighted average shares	66,743	67,943	67,505	67,733


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2) Non-GAAP income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with the valuation allowance and smaller pre-tax income for GAAP purposes.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS (1)
(Unaudited)
(Dollars in thousands)

	For the three months ended December 31,		For the nine months ended December 31,
	2024	2023	2024	2023

Income from operations	14,673	15,201	16,912	25,679

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,686	1,181	11,280	5,688
Non-cash stock compensation (cost of revenue and operating expenses)	26,760	17,497	83,813	46,524
Restructuring and merger charges (gains, losses, and other)	149	2,502	752	9,192
Transformation costs (general and administrative)	–	–	–	1,875
Total excluded items	30,595	21,180	95,845	63,279

Income from operations before excluded items	45,268	36,381	112,757	88,958


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)

	For the three months ended December 31,		For the nine months ended December 31,
	2024	2023	2024	2023

Net earnings from continuing operations	9,522	13,379	3,765	16,269
Income tax expense	9,184	8,429	25,821	27,297
Total other income, net	(4,033)	(6,607)	(12,674)	(17,887)

Income from operations	14,673	15,201	16,912	25,679
Depreciation and amortization	4,400	1,782	13,404	7,685

EBITDA	19,073	16,983	30,316	33,364

Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)	26,760	17,497	83,813	46,524
Restructuring and merger charges (gains, losses, and other)	149	2,502	752	9,192
Transformation costs (general and administrative)	–	–	–	1,875

Other adjustments	26,909	19,999	84,565	57,591

Adjusted EBITDA	45,982	36,982	114,881	90,955


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	December 31	March 31	$	%
	2024	2024	Variance	Variance
Assets
Current assets:
Cash and cash equivalents	376,772	336,867	39,905	11.8	%
Restricted cash	593	2,604	(2,011)	(77.2	)%
Short-term investments	7,500	32,045	(24,545)	(76.6	)%
Trade accounts receivable, net	210,565	190,313	20,252	10.6	%
Refundable income taxes, net	6,630	8,521	(1,891)	(22.2	)%
Other current assets	41,747	31,682	10,065	31.8	%
Total current assets	643,807	602,032	41,775	6.9	%

Property and equipment	24,099	25,394	(1,295)	(5.1	)%
Less – accumulated depreciation and amortization	17,440	17,213	227	1.3	%
Property and equipment, net	6,659	8,181	(1,522)	(18.6	)%

Intangible assets, net	23,302	34,583	(11,281)	(32.6	)%
Goodwill	501,559	501,756	(197)	(0.0	)%
Deferred commissions, net	44,497	48,143	(3,646)	(7.6	)%
Other assets, net	33,389	36,748	(3,359)	(9.1	)%
	1,253,213	1,231,443	21,770	1.8	%

Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable	105,334	81,202	24,132	29.7	%
Accrued payroll and related expenses	35,639	61,575	(25,936)	(42.1	)%
Other accrued expenses	45,856	42,857	2,999	7.0	%
Deferred revenue	44,795	30,942	13,853	44.8	%
Total current liabilities	231,624	216,576	15,048	6.9	%

Other liabilities	63,882	65,732	(1,850)	(2.8	)%

Stockholders’ equity:
Preferred stock	–	–	–	n/a
Common stock	15,853	15,594	259	1.7	%
Additional paid-in capital	2,022,227	1,933,776	88,451	4.6	%
Retained earnings	1,319,625	1,314,172	5,453	0.4	%
Accumulated other comprehensive income	3,493	3,964	(471)	(11.9	)%
Treasury stock, at cost	(2,403,491)	(2,318,371)	(85,120)	3.7	%
Total stockholders’ equity	957,707	949,135	8,572	0.9	%
	1,253,213	1,231,443	21,770	1.8	%

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the three months ended December 31,
	2024	2023
Cash flows from operating activities:
Net earnings	11,210	13,977
Earnings from discontinued operations, net of tax	(1,688)	(598)
Non-cash operating activities:
Depreciation and amortization	4,400	1,782
Loss on disposal or impairment of assets	99	911
Provision for doubtful accounts	(97)	544
Deferred income taxes	11	(47)
Non-cash stock compensation expense	26,760	17,497
Changes in operating assets and liabilities:
Accounts receivable, net	(19,013)	(24,778)
Deferred commissions	(1,042)	(4,235)
Other assets	(6,596)	(4,831)
Accounts payable and other liabilities	23,829	21,639
Income taxes	(1,617)	(14,139)
Deferred revenue	8,861	8,834
Net cash provided by operating activities	45,117	16,556
Cash flows from investing activities:
Capital expenditures	(282)	(2,211)
Cash paid in acquisitions, net of cash received	(1,951)	—
Proceeds from sales of investments	1,994	—
Purchases of strategic investments	(1,000)	—
Net cash used in investing activities	(1,239)	(2,211)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans	2,304	1,646
Shares repurchased for tax withholdings upon vesting of stock-based awards	(1,565)	(547)
Acquisition of treasury stock	(10,098)	(10,000)
Net cash used in financing activities	(9,359)	(8,901)
Cash flows from discontinued operations:
From operating activities	2,486	598
Effect of exchange rate changes on cash	(1,217)	735

Net change in cash, cash equivalents and restricted cash	35,788	6,777
Cash, cash equivalents and restricted cash at beginning of period	341,577	492,169
Cash, cash equivalents and restricted cash at end of period	377,365	498,946

Supplemental cash flow information:
Cash paid for income taxes, net from continuing operations	10,990	22,699
Cash received for income taxes, net from discontinued operations	(2,486)	(912)
Cash paid for operating lease liabilities	2,495	2,551

Non-cash investing and financing activities:
Operating lease assets obtained in exchange for operating lease liabilities	1,284	—
Purchases of property, plant and equipment remaining unpaid at period end	85	1,218
Excise tax payable on net stock repurchases	64	—

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the nine months ended December 31,
	2024	2023
Cash flows from operating activities:
Net earnings	5,453	17,254
Earnings from discontinued operations, net of tax	(1,688)	(985)
Non-cash operating activities:
Depreciation and amortization	13,404	7,685
Loss on disposal or impairment of assets	119	1,213
Lease-related impairment and restructuring charges	(36)	2,315
Provision for doubtful accounts	1,148	307
Impairment of goodwill	—	2,875
Deferred income taxes	49	40
Non-cash stock compensation expense	83,813	46,524
Changes in operating assets and liabilities:
Accounts receivable, net	(21,640)	(41,036)
Deferred commissions	3,645	(7,142)
Other assets	(2,598)	912
Accounts payable and other liabilities	(8,165)	8,754
Income taxes	3,953	29,560
Deferred revenue	13,928	9,737
Net cash provided by operating activities	91,385	78,013
Cash flows from investing activities:
Capital expenditures	(749)	(2,464)
Cash paid in acquisitions, net of cash received	(1,951)	—
Purchases of investments	(1,967)	(24,385)
Proceeds from sales of investments	26,989	25,750
Purchases of strategic investments	(1,400)	(1,000)
Net cash provided by (used in) investing activities	20,922	(2,099)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans	8,631	7,221
Shares repurchased for tax withholdings upon vesting of stock-based awards	(9,305)	(5,116)
Acquisition of treasury stock	(75,751)	(45,325)
Net cash used in financing activities	(76,425)	(43,220)
Cash flows from discontinued operations:
From operating activities	2,486	985
Effect of exchange rate changes on cash	(474)	819

Net change in cash, cash equivalents and restricted cash	37,894	34,498
Cash, cash equivalents and restricted cash at beginning of period	339,471	464,448
Cash, cash equivalents and restricted cash at end of period	377,365	498,946

Supplemental cash flow information:
Cash paid (received) for income taxes, net from continuing operations	21,990	(2,440)
Cash received for income taxes, net from discontinued operations	(2,486)	(1,507)
Cash received for tenant improvement allowances	(1,758)	—
Cash paid for operating lease liabilities	7,372	7,699

Non-cash investing and financing activities:
Operating lease assets obtained in exchange for operating lease liabilities	2,327	11,677
Operating lease assets, and related lease liabilities, relinquished in lease terminations	(555)	(4,486)
Purchases of property, plant and equipment remaining unpaid at period end	85	1,218
Excise tax payable on net stock repurchases	64	—

LIVERAMP HOLDINGS, INC AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW (1)
(Unaudited)
(Dollars in thousands)


		6/30/2023			9/30/2023			12/31/2023			3/31/2024			FY2024			6/30/2024			9/30/2024			12/31/2024			FY2025

Net cash provided by (used in) operating activities		$	25,693		$	35,764		$	16,556		$	27,643		$	105,656		$	(9,328	)	$	55,596		$	45,117		$	91,385

Less:
	Capital expenditures		(53	)		(200	)		(2,211	)		(1,791	)		(4,255	)		(226	)		(241	)		(282	)		(749	)

Free Cash Flow		$	25,640		$	35,564		$	14,345		$	25,852		$	101,401		$	(9,554	)	$	55,355		$	44,835		$	90,636


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
																			Qtr-to-Qtr
	FY2024										FY2025								FY2025 to FY2024
	6/30/2023		9/30/2023		12/31/2023		3/31/2024		FY2024		6/30/2024		9/30/2024		12/31/2024		FY2025		%	$

Revenues		154,069		159,871		173,869		171,852		659,661		175,961		185,483		195,412		556,856	12.4%	21,543
Cost of revenue		45,621		41,212		44,934		47,722		179,489		51,749		51,234		54,998		157,981	22.4%	10,064
Gross profit		108,448		118,659		128,935		124,130		480,172		124,212		134,249		140,414		398,875	8.9%	11,479
% Gross margin		70.4 %		74.2 %		74.2 %		72.2 %		72.8 %		70.6 %		72.4 %		71.9 %		71.6 %

Operating expenses
Research and development		34,519		33,733		37,788		45,161		151,201		44,118		43,889		42,735		130,742	13.1%	4,947
Sales and marketing		44,879		44,135		46,203		60,476		195,693		54,175		51,107		50,863		156,145	10.1%	4,660
General and administrative		26,664		26,009		27,241		30,252		110,166		30,961		31,369		31,994		94,324	17.4%	4,753
Gains, losses and other items, net		116		6,574		2,502		2,516		11,708		206		397		149		752	(94.0)%	(2,353)
Total operating expenses		106,178		110,451		113,734		138,405		468,768		129,460		126,762		125,741		381,963	10.6%	12,007

Income (loss) from operations		2,270		8,208		15,201		(14,275)		11,404		(5,248)		7,487		14,673		16,912	(3.5)%	(528)
% Margin		5.0 %		24.3 %		40.2 %		(31.6)%		1.7 %		(3.0)%		4.0 %		7.5 %		3.0 %

Total other income, net		4,849		6,431		6,607		5,070		22,957		4,444		4,197		4,033		12,674	(39.0)%	(2,574)

Income (loss) from continuing operations before income taxes		7,119		14,639		21,808		(9,205)		34,361		(804)		11,684		18,706		29,586	(14.2)%	(3,102)
Income tax expense (benefit)		8,705		10,163		8,429		(3,027)		24,270		6,685		9,952		9,184		25,821	9.0%	755
Net earnings (loss) from continuing operations		(1,586)		4,476		13,379		(6,178)		10,091		(7,489)		1,732		9,522		3,765	(28.8)%	(3,857)

Earnings from discontinued operations, net of tax		–		387		598		805		1,790		–		–		1,688		1,688	182.3%	1,090

Net earnings (loss)	$	(1,586)	$	4,863	$	13,977	$	(5,373)	$	11,881	$	(7,489)	$	1,732	$	11,210	$	5,453	(19.8)%	(2,767)

Basic earnings (loss) per share:
Continuing Operations		(0.02)		0.07		0.20		(0.09)		0.15		(0.11)		0.03		0.15		0.06	(28.5)%	(0.06)
Discontinued Operations		0.00		0.01		0.01		0.01		0.03		0.00		0.00		0.03		0.03	183.7%	0.02
Basic earnings (loss) per share		(0.02)		0.07		0.21		(0.08)		0.18		(0.11)		0.03		0.17		0.08	(19.4)%	(0.04)

Diluted earnings (loss) per share:
Continuing Operations		(0.02)		0.07		0.20		(0.09)		0.15		(0.11)		0.03		0.14		0.06	(27.5)%	(0.05)
Discontinued Operations		0.00		0.01		0.01		0.01		0.03		0.00		0.00		0.03		0.03	187.3%	0.02
Diluted earnings (loss) per share		(0.02)		0.07		0.21		(0.08)		0.17		(0.11)		0.03		0.17		0.08	(18.4)%	(0.04)


Basic weighted average shares		66,497		66,284		65,961		66,323		66,266		66,621		66,294		65,631		66,182
Diluted weighted average shares		66,497		67,868		67,943		66,323		67,918		66,621		67,309		66,743		67,505

Some earnings (loss) per share amounts may not add due to rounding.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1)
(Unaudited)
(Dollars in thousands)
	FY2024					FY2025
	6/30/2023	9/30/2023	12/31/2023	3/31/2024	FY2024	6/30/2024	9/30/2024	12/31/2024	FY2025
Expenses:
Cost of revenue	45,621	41,212	44,934	47,722	179,489	51,749	51,234	54,998	157,981
Research and development	34,519	33,733	37,788	45,161	151,201	44,118	43,889	42,735	130,742
Sales and marketing	44,879	44,135	46,203	60,476	195,693	54,175	51,107	50,863	156,145
General and administrative	26,664	26,009	27,241	30,252	110,166	30,961	31,369	31,994	94,324
Gains, losses and other items, net	116	6,574	2,502	2,516	11,708	206	397	149	752

Gross profit, continuing operations:	108,448	118,659	128,935	124,130	480,172	124,212	134,249	140,414	398,875
% Gross margin	70.4%	74.2%	74.2%	72.2%	72.8%	70.6%	72.4%	71.9%	71.6%

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,290	1,217	1,181	3,097	8,785	3,846	3,748	3,686	11,280
Non-cash stock compensation (cost of revenue)	629	629	817	1,478	3,553	1,596	1,499	1,455	4,550
Non-cash stock compensation (research and development)	5,077	5,293	6,960	9,859	27,189	10,205	10,920	10,085	31,210
Non-cash stock compensation (sales and marketing)	3,736	4,786	4,089	6,337	18,948	7,093	7,383	7,278	21,754
Non-cash stock compensation (general and administrative)	3,850	5,027	5,631	7,106	21,614	9,091	9,266	7,942	26,299
Restructuring charges (gains, losses, and other)	116	6,574	2,502	2,516	11,708	206	397	149	752
Transformation costs (general and administrative)	1,875	—	—	—	1,875	—		—	—
Total excluded items	18,573	23,526	21,180	30,393	93,672	32,037	33,213	30,595	95,845

Expenses, excluding items:
Cost of revenue	41,702	39,366	42,936	43,147	167,151	46,307	45,987	49,857	142,151
Research and development	29,442	28,440	30,828	35,302	124,012	33,913	32,969	32,650	99,532
Sales and marketing	41,143	39,349	42,114	54,139	176,745	47,082	43,724	43,585	134,391
General and administrative	20,939	20,982	21,610	23,146	86,677	21,870	22,103	24,052	68,025

Gross profit, excluding items:	112,367	120,505	130,933	128,705	492,510	129,654	139,496	145,555	414,705
% Gross margin	72.9%	75.4%	75.3%	74.9%	74.7%	73.7%	75.2%	74.5%	74.5%

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
	FY2024					FY2025
	6/30/2023	9/30/2023	12/31/2023	3/31/2024	FY2024	6/30/2024	9/30/2024	12/31/2024	FY2025

Income (loss) from continuing operations before income taxes	7,119	14,639	21,808	(9,205)	34,361	(804)	11,684	18,706	29,586
Income tax expense (benefit)	8,705	10,163	8,429	(3,027)	24,270	6,685	9,952	9,184	25,821
Net earnings (loss) from continuing operations	(1,586)	4,476	13,379	(6,178)	10,091	(7,489)	1,732	9,522	3,765

Earnings from discontinued operations, net of tax	–	387	598	805	1,790	–	–	1,688	1,688

Net earnings (loss)	(1,586)	4,863	13,977	(5,373)	11,881	(7,489)	1,732	11,210	5,453

Earnings (loss) per share:
Basic	(0.02)	0.07	0.21	(0.08)	0.18	(0.11)	0.03	0.17	0.08
Diluted	(0.02)	0.07	0.21	(0.08)	0.17	(0.11)	0.03	0.17	0.08

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,290	1,217	1,181	3,097	8,785	3,846	3,748	3,686	11,280
Non-cash stock compensation (cost of revenue and operating expenses)	13,292	15,735	17,497	24,780	71,304	27,985	29,068	26,760	83,813
Restructuring and merger charges (gains, losses, and other)	116	6,574	2,502	2,516	11,708	206	397	149	752
Transformation costs (general and administrative)	1,875	–	–	–	1,875	–	–	–	–
Total excluded items from continuing operations	18,573	23,526	21,180	30,393	93,672	32,037	33,213	30,595	95,845

Income from continuing operations before income taxes and excluding items	25,692	38,165	42,988	21,188	128,033	31,233	44,897	49,301	125,431
Income tax expense (2)	6,167	9,036	10,732	3,947	29,882	7,371	10,745	12,421	30,537
Non-GAAP net earnings from continuing operations	19,525	29,129	32,256	17,241	98,151	23,862	34,152	36,880	94,894

Non-GAAP earnings per share from continuing operations
Basic	0.29	0.44	0.49	0.26	1.48	0.36	0.52	0.56	1.43
Diluted	0.29	0.43	0.47	0.25	1.45	0.35	0.51	0.55	1.41

Basic weighted average shares	66,497	66,284	65,961	66,323	66,266	66,621	66,294	65,631	66,182
Diluted weighted average shares	67,388	67,868	67,943	68,471	67,918	68,463	67,309	66,743	67,505


Some totals may not add due to rounding

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1)
(Unaudited)
(Dollars in thousands)
	For the		For the
	quarter ending		year ending
	March 31, 2025		March 31, 2025



GAAP income (loss) from operations	$	(8,000)	$	10,000

Excluded items:
Purchased intangible asset amortization		3,000		14,000
Non-cash stock compensation		26,000		110,000
Restructuring costs		1,000		1,000
Total excluded items		30,000		125,000

Non-GAAP income from operations	$	22,000	$	135,000


(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

APPENDIX A

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

Q3 FISCAL 2025 FINANCIAL RESULTS

EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS

To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.

Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, non-GAAP income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:

Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.

Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.

Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for employees whose positions were eliminated, lease and other contract termination charges, and asset impairments. These items, as well as third party expenses associated with business acquisitions in the current year, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.

Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company’s announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business and again during fiscal 2023 in response to macroeconomic conditions, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.

Our non-GAAP financial schedules are:

Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.

Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company’s performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.

Free Cash Flow: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow is defined as operating cash flow less capital expenditures. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company’s discretionary spending. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.

PDF Available: http://ml.globenewswire.com/Resource/Download/cfac844b-6484-4164-92b1-a991aa0edb1a

The MIL Network –

February 6, 2025

MIL-OSI: Nokia Corporation: Repurchase of own shares on 05.02.2025
Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Stock Exchange Release
5 February 2025 at 22:30 EET

Nokia Corporation: Repurchase of own shares on 05.02.2025

Espoo, Finland – On 5 February 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*

XHEL 1,400,000 4.53

CEUX – –

BATE – –

AQEU – –

TQEX – –

Total 1,400,000 4.53

* Rounded to two decimals

On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 25 November 2024 and end by 31 December 2025 and target to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.

Total cost of transactions executed on 5 February 2025 was EUR 6,336,400. After the disclosed transactions, Nokia Corporation holds 239,524,606 treasury shares.

Details of transactions are included as an appendix to this announcement.

On behalf of Nokia Corporation

BofA Securities Europe SA

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

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

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

Inquiries:

Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

Attachment
- Daily Report 2025-02-05
The MIL Network –
February 6, 2025
MIL-OSI Europe: Philip R. Lane: A middle path for ECB monetary policy

Source: European Central Bank

Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Peterson Institute for International Economics (PIIE)

Washington, D.C., 5 February 2025

It is a pleasure to be here at the Peterson Institute for International Economics (PIIE): your impressive research on a wide range of topics is extremely valuable for policymakers.^[1]

At last week’s monetary policy meeting, the ECB’s Governing Council decided to lower the deposit facility rate – the rate through which we steer the monetary policy stance – by 25 basis points from 3.0 per cent to 2.75 per cent. In cumulative terms, the deposit facility rate has declined by 125 basis points since last June. The decision reflected our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

In what follows, I will explain in more detail the basis for this decision. I will review inflation developments, economic developments, our risk assessment, and financial and monetary conditions. Finally, I explain why pursuing a middle path for monetary policy is best suited to the current environment.

Inflation developments

The disinflation process remains well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to our two per cent medium-term target in the course of this year. Most measures of underlying inflation suggest that inflation will settle at around our target on a sustained basis. The Persistent and Common Component of Inflation (PCCI), which has the best predictive power among underlying inflation indicators for future headline inflation, continued to hover around two per cent in the December data, indicating that headline inflation is set to stabilise around our target.

Domestic inflation, at 4.2 per cent, stayed well above all the other indicators in December mostly because wages and prices in certain sectors are still adjusting to the past inflation surge with a substantial delay. However, the PCCI for services, which should act as an underlying attractor for services inflation and domestic inflation, fell to 2.3 per cent.

The anticipation of a downward shift in services inflation in the coming months also relates to the expected deceleration in wage growth in the course of 2025. Wages have been adjusting to the past inflation surges with a substantial delay, but the ECB wage tracker and the latest surveys point to a significant moderation in wage pressures this year. According to the latest results of the Survey on the Access to Finance of Enterprises (SAFE), firms expect wages to grow by 3.3 per cent on average over the next twelve months, down from 4.5 per cent this time last year. Similarly, the latest Corporate Telephone Survey indicates that wage growth should decelerate from 4.6 per cent in 2024 to 3.3 per cent in 2025 and 2.9 per cent in 2026. This assessment is shared broadly among forecasters. Consensus Economics, for example, foresees a decline in wage growth by about one percentage point between 2024 and 2025.

Most measures of longer-term inflation expectations continue to stand at around two per cent, despite an uptick at shorter horizons that may reflect the recent rise in energy prices. While the inflation expectations of firms have stabilised at three per cent across horizons, according to the SAFE, larger firms that are aware of the ECB’s inflation target show convergence towards two per cent. Consumer inflation expectations have edged up recently, especially for the near term, which can at least be partly explained by their higher sensitivity to the recent uptick in realised inflation. Inflation expectations of professionals – as captured by the latest vintages of the Survey of Professional Forecasters and Survey of Monetary Analysts – as well as market-based measures of inflation compensation have ticked up for the near term but, over longer horizons, remain stable at levels consistent with our medium-term target of two per cent.

Economic developments

On a fourth-quarter-to-fourth-quarter basis, the 2024 growth rate came in at 0.9 per cent, constituting a material improvement in momentum relative to the 2023 growth rate of 0.1 per cent. While 2024 saw a modest recovery in consumption, investment remained weak and exporters continued to suffer competitiveness challenges. In terms of the quarterly profile, growth stagnated in the final quarter following a comparatively robust third quarter.

The incoming survey indicators suggest that the euro area economy is set to remain subdued in the near term. While unemployment remained low at 6.3 per cent in December, there has been some softening in labour demand, as reflected in lower vacancies and lower employment growth.

At the same time, our baseline assessment is that the conditions for a recovery remain in place. Higher incomes, lower interest rates and stronger household balance sheets should allow a faster pick-up in consumption. More affordable credit should also boost housing and business investment over time. Exports should also support the recovery as global demand rises, although this is highly conditional on developments in international trade policies.

Financial and monetary conditions

Global and euro area bond yields have increased significantly since our last meeting. Amongst other factors, the spillover impact of the rise in US and global longer-term rates has contributed to the steepening of the euro area yield curve.

Our past interest rate cuts are gradually making it less expensive for firms and households to borrow. The cost of borrowing for firms has declined by 92 basis points and mortgage rates have declined by 62 basis points since their peaks in autumn 2023. However, the interest rates on existing corporate and household loan books remain high, especially in real terms, with pre-2022 debt still re-pricing at higher rates as fixation periods expire.

In overall terms, financing conditions remain tight. While credit is expanding, lending to firms and households remains subdued relative to historical norms. Growth in bank lending to firms rose to 1.5 per cent in December. In part, the pick-up in December reflects firms substituting market-based long-term financing for bank-based borrowing amidst tightening market conditions and increasing upcoming redemptions of long-term corporate bonds. Overall external debt financing of firms increased by 1.9 per cent in December, but remained well below the historical average of 4.9 per cent.^[2] Loans to households continued to rise gradually, driven by mortgages, but remained muted overall, with an annual growth rate of 1.1 per cent in December, notably below the long-term average of 4.2 per cent.

According to the latest bank lending survey, the demand for loans by firms increased slightly in the fourth quarter. At the same time, credit standards for loans to firms have tightened again, after having broadly stabilised over the previous four quarters. The renewed tightening of credit standards for firms was driven by the fact that banks see higher risks to the economic outlook and have lower tolerance for taking on credit risk. This finding is consistent with the results from the SAFE, in which firms reported a small decline in the availability of bank loans and more demanding non-rate lending conditions. In terms of households, the demand for mortgages increased strongly, mostly on the back of more attractive interest rates and better prospects for the property market. Credit standards for housing loans remained unchanged overall.

Risk assessment

Risks to economic growth remain tilted to the downside. In addition to trade policy uncertainty, lower confidence could prevent consumption and investment from recovering as fast as expected. This could be amplified by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could disrupt energy supplies and further weigh on global trade. Growth could also be lower if the lagged effects of monetary policy tightening last longer than expected. In the other direction, growth could be higher if easier financing conditions and falling inflation allow domestic consumption and investment to rebound faster.

We take a two-sided approach to assessing inflation risk. Inflation could turn out higher if wages or profits increase by more than expected. Upside risks to inflation also stem from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. By contrast, inflation may surprise on the downside if low confidence and concerns about geopolitical events prevent consumption and investment from recovering as fast as expected, if monetary policy dampens demand by more than expected, or if the economic environment in the rest of the world worsens unexpectedly. Greater friction in global trade would make the euro area inflation outlook more uncertain.

A middle path for monetary policy

Taken together, the incoming data since our previous meeting meant that it was clear that we should take a further step in monetary easing by lowering the deposit facility rate to 2.75 per cent. By excessively dampening demand, the alternative of holding the deposit facility rate at the level of 3.0 per cent would not have been consistent with the set of rate paths that would best ensure that inflation stabilises sustainably at our two per cent medium-term target. At the same time, the new level for the deposit facility rate at 2.75 per cent preserves considerable optionality in responding to shocks. In particular, the rate path can adjust as appropriate in the event of material upside or downside shocks to the inflation outlook and/or to economic momentum.

While our baseline is that inflation should decline from 2.5 per cent in January to around our target in the coming months, it is still important to take into account that this deceleration might take longer than expected and that new upside risks to inflation could emerge, including due to external developments. These considerations explain why we have taken a step-by-step approach to rate cutting since last June.

At the same time, an excessive abundance of caution in monetary easing could threaten the recovery in domestic demand that is needed to support the pricing environment compatible with our medium-term two per cent target. Under this too-cautious path, a below-target inflation dynamic could take hold, which would then require a more sizeable policy response to ensure inflation returns to our symmetric two per cent medium-term target.

Balancing these considerations suggest a middle path is appropriate, which neither over-weighs upside risk nor over-weighs downside risk. That is, a robust monetary policy approach should balance the risks of moving too slowly against the risks of moving too quickly. Accordingly, it is prudent to maintain agility in adjusting the stance as appropriate on a data-dependent and meeting-by-meeting basis and to not pre-commit to any particular rate path.

In closing, let me comment on two much-discussed concepts: restrictiveness and neutrality.

When inflation is materially above target and requires a monetary response to ensure that it returns to target in a timely manner and that inflation expectations remain anchored, the monetary stance must be clearly restrictive. As inflation returns close to target, policymakers need to shift their focus to adjusting monetary policy in line with the incoming economic and financial data and the evolving risk assessment to deliver the two per cent target over the medium term. In other words, policymakers should deliver the monetary stance that is appropriate to the situation.

In exiting a restrictive phase, much energy could be diverted towards creating a summary “restrictiveness” index. Any such index would have to incorporate at least nine factors: (i) the still-important rolling off of super-cheap debt that was taken out in the “low for long” era that is now being re-financed at higher rates; (ii) in the other direction, the transmission of the easing since the peak of the hiking cycle; (iii) the impact of the anticipation of future rate cuts on current financing conditions; (iv) the evolving contribution of quasi-exogenous influences on financing conditions (such as global upward pressure on term premia); (v) the dynamics of bond and equity risk premia; (vi) the evolution of credit standards in bank lending; (vii) the different timelines for market-based and bank-based transmission; (viii) the responsiveness of consumption and investment to shifting monetary conditions; and (ix) the responsiveness of price setting to shifting monetary conditions.

All of these factors enter our calibration of monetary policy (our assessment of the strength of monetary policy transmission has been highlighted as central to our reaction function) and cannot be summarised by a single indicator such as comparing the prevailing policy rate to a highly-uncertain estimate of the so-called neutral rate.^[3]

In terms of policy making, uncertainty about the level of the neutral rate and, more generally, about the strength of monetary transmission inescapably sits alongside uncertainty about the inflation outlook and uncertainty about the economic outlook.

This is why our 2021 monetary policy strategy statement highlights that our decisions are based on an integrated assessment of all relevant factors. Over the last two years, we have emphasised in particular the importance of underlying inflation and the strength of monetary transmission as particularly relevant in complementing our analysis of the inflation outlook. More generally, it is essential that all relevant risks are incorporated in monetary policy decisions.

MIL OSI Europe News –

February 6, 2025
MIL-OSI Europe: Answer to a written question – Consequences of the EU-Thailand free trade agreement for the canning industry – E-002642/2024(ASW)

Source: European Parliament

The Commission takes note of the concerns raised by the Honourable Member about the potential impact of a future Free Trade Agreement (FTA) with Thailand on the EU tuna processing industry.

In line with the overall EU approach to trade and investment agreements, also in the negotiations with Thailand the Commission aims at reaching a comprehensive deal that can bring growth opportunities for the EU economy and employment as a whole.

In the negotiating rounds held so far, the EU and Thai negotiating teams have focused on advancing on the consolidation of the texts establishing the normative framework for the future trade relations, and have not yet discussed the treatment for individual products.

Detailed and sector specific market access negotiations will start in the coming months, and will include consultations with relevant stakeholders in line with the usual EU practice for FTA negotiations.

As in all FTA processes, economically sensitive sectors are subject to carefully designed specific modalities for market access which aim at preventing any market disturbances.

Furthermore, as the negotiations enter a more advanced stage, a sustainability impact assessment will be carried out in support of the negotiations in order to provide an in-depth analysis of their potential economic, social, human rights, and environmental impacts.

Last updated: 5 February 2025

MIL OSI Europe News –

February 6, 2025
MIL-OSI Europe: Written question – Spread of foot-and-mouth disease in the EU – E-000395/2025
Source: European Parliament
Question for written answer E-000395/2025
to the Commission
Rule 144
Daniel Buda (PPE), Dan-Ştefan Motreanu (PPE)

In Germany, the first case of foot-and-mouth disease in four decades has been detected on a farm near Berlin[1], triggering swift action: the slaughter of infected animals; transport bans; and the suspension of exports. Trading partners such as the UK and South Korea have imposed restrictions, banning the import of cattle, pigs and sheep from Germany[2], which theatens to undermine an agricultural sector with exports worth EUR 5 billion in 2024.

1.What urgent concrete measures will the European Commission adopt to support Member States in preventing the spread of this disease, while ensuring continuity of trade and protecting the European agriculture sector?

2.How does the Commission plan to support farmers affected by the outbreak of foot-and-mouth disease, both in terms of compensating for financial losses and of preventing similar crises in the future?

Submitted: 29.1.2025

[1] https://www.politico.eu/article/germany-farmer-fear-massive-hit-foot-and-mouth-outbreak/

[2] https://www.politico.eu/article/uk-bans-german-livestock-imports-after-foot-and-mouth-outbreak/
Last updated: 5 February 2025
MIL OSI Europe News –
February 6, 2025
MIL-OSI Europe: Written question – Impact of Mercosur on Romanian agriculture and new EUR 1 billion fund – E-000398/2025
Source: European Parliament
Question for written answer E-000398/2025
to the Commission
Rule 144
Daniel Buda (PPE), Dan-Ştefan Motreanu (PPE)

The EU-Mercosur Agreement, signed on 6 December 2024, is still to be approved by the Council of the EU and the European Parliament and ratified by all the Member States. However, the agreement could become operational as from 2026, two years prior to the entry into force of the EU’s future multiannual budgetary framework (MFF) for 2028-2034.

At the INTA Committee meeting of 16 January 2025, the Commissioner for Trade and Economic Security, Maroš Šefčovič, revealed that a new fund worth EUR 1 billion was to be established for farmers affected by the Mercosur Agreement.

1.How will the Commission create this new fund under the current MFF without transferring money from existing funds and programmes?

2.The Commissioner also stated there will potentially be small decreases in prices and in production, both of which were estimated at between 0.5 and 2 %. These estimates for Europe as a whole provide no information on what may be a disproportionate impact between different regions or Member States. What impact does the Commission expect Mercosur will have on the Romanian agricultural sector and the competitiveness of Romanian farmers?

Submitted: 29.1.2025
Last updated: 5 February 2025
MIL OSI Europe News –
February 6, 2025
MIL-OSI Europe: Answer to a written question – US tariffs on Spanish black olives – E-002648/2024(ASW)
Source: European Parliament
On 14 November 2024[1], the EU requested to the World Trade Organisation (WTO) Dispute Settlement Body to authorise the imposition of countermeasures due to the United States (US) lack of compliance with the Panel report[2].

As provided by Article 22.6[3] of the Dispute Settlement Understanding (DSU), the US are entitled to request an arbitration on the level of the countermeasures proposed by the EU.

The EU will do its best to enable a swift conclusion of the arbitration proceeding. Once this step is finalised, the EU could proceed, in accordance with the WTO and EU framework, to adopt countermeasures .

To support the table olive sector, possibilities exist under Rural Development Programmes[4] to help operators adapt their production processes to other market opportunities.

There is also support for the sector under the promotion aid scheme. Besides, under the rules concerning de minimis aid, a Member State may grant support to a single processor within a period of three fiscal years.

In addition, companies can receive aid without prior notification to the Commission as regards research and development, training and investment aid under the conditions of the General Block Exemption Regulation[5].

The EU will continue to engage with the new US administration in order to achieve a solution to this dispute which is in the interest of EU exporters .

[1] WT/DS577/20; https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds577_e.htm

[2] WT/DS577/RW; https://www.wto.org/english/tratop_e/dispu_e/577rw_a_e.pdf

[3] https://ustr.gov/sites/default/files/enforcement/WTO/US.Open.Stmt.Arb.Mtg.%28as%20deliv%29.fin.%28public%29.pdf

[4] https://agriculture.ec.europa.eu/common-agricultural-policy/rural-development/country_en

[5] Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, OJ L 187, 26.6.2014, p. 1-78; https://eur-lex.europa.eu/eli/reg/2014/651/oj
Last updated: 5 February 2025
MIL OSI Europe News –
February 6, 2025
MIL-OSI Economics: Philip R. Lane: A middle path for ECB monetary policy

Source: European Central Bank

Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Peterson Institute for International Economics (PIIE)

Washington, D.C., 5 February 2025

It is a pleasure to be here at the Peterson Institute for International Economics (PIIE): your impressive research on a wide range of topics is extremely valuable for policymakers.^[1]

At last week’s monetary policy meeting, the ECB’s Governing Council decided to lower the deposit facility rate – the rate through which we steer the monetary policy stance – by 25 basis points from 3.0 per cent to 2.75 per cent. In cumulative terms, the deposit facility rate has declined by 125 basis points since last June. The decision reflected our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

In what follows, I will explain in more detail the basis for this decision. I will review inflation developments, economic developments, our risk assessment, and financial and monetary conditions. Finally, I explain why pursuing a middle path for monetary policy is best suited to the current environment.

Inflation developments

The disinflation process remains well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to our two per cent medium-term target in the course of this year. Most measures of underlying inflation suggest that inflation will settle at around our target on a sustained basis. The Persistent and Common Component of Inflation (PCCI), which has the best predictive power among underlying inflation indicators for future headline inflation, continued to hover around two per cent in the December data, indicating that headline inflation is set to stabilise around our target.

Domestic inflation, at 4.2 per cent, stayed well above all the other indicators in December mostly because wages and prices in certain sectors are still adjusting to the past inflation surge with a substantial delay. However, the PCCI for services, which should act as an underlying attractor for services inflation and domestic inflation, fell to 2.3 per cent.

The anticipation of a downward shift in services inflation in the coming months also relates to the expected deceleration in wage growth in the course of 2025. Wages have been adjusting to the past inflation surges with a substantial delay, but the ECB wage tracker and the latest surveys point to a significant moderation in wage pressures this year. According to the latest results of the Survey on the Access to Finance of Enterprises (SAFE), firms expect wages to grow by 3.3 per cent on average over the next twelve months, down from 4.5 per cent this time last year. Similarly, the latest Corporate Telephone Survey indicates that wage growth should decelerate from 4.6 per cent in 2024 to 3.3 per cent in 2025 and 2.9 per cent in 2026. This assessment is shared broadly among forecasters. Consensus Economics, for example, foresees a decline in wage growth by about one percentage point between 2024 and 2025.

Most measures of longer-term inflation expectations continue to stand at around two per cent, despite an uptick at shorter horizons that may reflect the recent rise in energy prices. While the inflation expectations of firms have stabilised at three per cent across horizons, according to the SAFE, larger firms that are aware of the ECB’s inflation target show convergence towards two per cent. Consumer inflation expectations have edged up recently, especially for the near term, which can at least be partly explained by their higher sensitivity to the recent uptick in realised inflation. Inflation expectations of professionals – as captured by the latest vintages of the Survey of Professional Forecasters and Survey of Monetary Analysts – as well as market-based measures of inflation compensation have ticked up for the near term but, over longer horizons, remain stable at levels consistent with our medium-term target of two per cent.

Economic developments

On a fourth-quarter-to-fourth-quarter basis, the 2024 growth rate came in at 0.9 per cent, constituting a material improvement in momentum relative to the 2023 growth rate of 0.1 per cent. While 2024 saw a modest recovery in consumption, investment remained weak and exporters continued to suffer competitiveness challenges. In terms of the quarterly profile, growth stagnated in the final quarter following a comparatively robust third quarter.

The incoming survey indicators suggest that the euro area economy is set to remain subdued in the near term. While unemployment remained low at 6.3 per cent in December, there has been some softening in labour demand, as reflected in lower vacancies and lower employment growth.

At the same time, our baseline assessment is that the conditions for a recovery remain in place. Higher incomes, lower interest rates and stronger household balance sheets should allow a faster pick-up in consumption. More affordable credit should also boost housing and business investment over time. Exports should also support the recovery as global demand rises, although this is highly conditional on developments in international trade policies.

Financial and monetary conditions

Global and euro area bond yields have increased significantly since our last meeting. Amongst other factors, the spillover impact of the rise in US and global longer-term rates has contributed to the steepening of the euro area yield curve.

Our past interest rate cuts are gradually making it less expensive for firms and households to borrow. The cost of borrowing for firms has declined by 92 basis points and mortgage rates have declined by 62 basis points since their peaks in autumn 2023. However, the interest rates on existing corporate and household loan books remain high, especially in real terms, with pre-2022 debt still re-pricing at higher rates as fixation periods expire.

In overall terms, financing conditions remain tight. While credit is expanding, lending to firms and households remains subdued relative to historical norms. Growth in bank lending to firms rose to 1.5 per cent in December. In part, the pick-up in December reflects firms substituting market-based long-term financing for bank-based borrowing amidst tightening market conditions and increasing upcoming redemptions of long-term corporate bonds. Overall external debt financing of firms increased by 1.9 per cent in December, but remained well below the historical average of 4.9 per cent.^[2] Loans to households continued to rise gradually, driven by mortgages, but remained muted overall, with an annual growth rate of 1.1 per cent in December, notably below the long-term average of 4.2 per cent.

According to the latest bank lending survey, the demand for loans by firms increased slightly in the fourth quarter. At the same time, credit standards for loans to firms have tightened again, after having broadly stabilised over the previous four quarters. The renewed tightening of credit standards for firms was driven by the fact that banks see higher risks to the economic outlook and have lower tolerance for taking on credit risk. This finding is consistent with the results from the SAFE, in which firms reported a small decline in the availability of bank loans and more demanding non-rate lending conditions. In terms of households, the demand for mortgages increased strongly, mostly on the back of more attractive interest rates and better prospects for the property market. Credit standards for housing loans remained unchanged overall.

Risk assessment

Risks to economic growth remain tilted to the downside. In addition to trade policy uncertainty, lower confidence could prevent consumption and investment from recovering as fast as expected. This could be amplified by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could disrupt energy supplies and further weigh on global trade. Growth could also be lower if the lagged effects of monetary policy tightening last longer than expected. In the other direction, growth could be higher if easier financing conditions and falling inflation allow domestic consumption and investment to rebound faster.

We take a two-sided approach to assessing inflation risk. Inflation could turn out higher if wages or profits increase by more than expected. Upside risks to inflation also stem from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. By contrast, inflation may surprise on the downside if low confidence and concerns about geopolitical events prevent consumption and investment from recovering as fast as expected, if monetary policy dampens demand by more than expected, or if the economic environment in the rest of the world worsens unexpectedly. Greater friction in global trade would make the euro area inflation outlook more uncertain.

A middle path for monetary policy

Taken together, the incoming data since our previous meeting meant that it was clear that we should take a further step in monetary easing by lowering the deposit facility rate to 2.75 per cent. By excessively dampening demand, the alternative of holding the deposit facility rate at the level of 3.0 per cent would not have been consistent with the set of rate paths that would best ensure that inflation stabilises sustainably at our two per cent medium-term target. At the same time, the new level for the deposit facility rate at 2.75 per cent preserves considerable optionality in responding to shocks. In particular, the rate path can adjust as appropriate in the event of material upside or downside shocks to the inflation outlook and/or to economic momentum.

While our baseline is that inflation should decline from 2.5 per cent in January to around our target in the coming months, it is still important to take into account that this deceleration might take longer than expected and that new upside risks to inflation could emerge, including due to external developments. These considerations explain why we have taken a step-by-step approach to rate cutting since last June.

At the same time, an excessive abundance of caution in monetary easing could threaten the recovery in domestic demand that is needed to support the pricing environment compatible with our medium-term two per cent target. Under this too-cautious path, a below-target inflation dynamic could take hold, which would then require a more sizeable policy response to ensure inflation returns to our symmetric two per cent medium-term target.

Balancing these considerations suggest a middle path is appropriate, which neither over-weighs upside risk nor over-weighs downside risk. That is, a robust monetary policy approach should balance the risks of moving too slowly against the risks of moving too quickly. Accordingly, it is prudent to maintain agility in adjusting the stance as appropriate on a data-dependent and meeting-by-meeting basis and to not pre-commit to any particular rate path.

In closing, let me comment on two much-discussed concepts: restrictiveness and neutrality.

When inflation is materially above target and requires a monetary response to ensure that it returns to target in a timely manner and that inflation expectations remain anchored, the monetary stance must be clearly restrictive. As inflation returns close to target, policymakers need to shift their focus to adjusting monetary policy in line with the incoming economic and financial data and the evolving risk assessment to deliver the two per cent target over the medium term. In other words, policymakers should deliver the monetary stance that is appropriate to the situation.

In exiting a restrictive phase, much energy could be diverted towards creating a summary “restrictiveness” index. Any such index would have to incorporate at least nine factors: (i) the still-important rolling off of super-cheap debt that was taken out in the “low for long” era that is now being re-financed at higher rates; (ii) in the other direction, the transmission of the easing since the peak of the hiking cycle; (iii) the impact of the anticipation of future rate cuts on current financing conditions; (iv) the evolving contribution of quasi-exogenous influences on financing conditions (such as global upward pressure on term premia); (v) the dynamics of bond and equity risk premia; (vi) the evolution of credit standards in bank lending; (vii) the different timelines for market-based and bank-based transmission; (viii) the responsiveness of consumption and investment to shifting monetary conditions; and (ix) the responsiveness of price setting to shifting monetary conditions.

All of these factors enter our calibration of monetary policy (our assessment of the strength of monetary policy transmission has been highlighted as central to our reaction function) and cannot be summarised by a single indicator such as comparing the prevailing policy rate to a highly-uncertain estimate of the so-called neutral rate.^[3]

In terms of policy making, uncertainty about the level of the neutral rate and, more generally, about the strength of monetary transmission inescapably sits alongside uncertainty about the inflation outlook and uncertainty about the economic outlook.

This is why our 2021 monetary policy strategy statement highlights that our decisions are based on an integrated assessment of all relevant factors. Over the last two years, we have emphasised in particular the importance of underlying inflation and the strength of monetary transmission as particularly relevant in complementing our analysis of the inflation outlook. More generally, it is essential that all relevant risks are incorporated in monetary policy decisions.

MIL OSI Economics –

February 6, 2025
MIL-OSI Economics: China initiates WTO dispute complaint regarding US tariff measures

Source: World Trade Organization

China claims that the 10 per cent additional ad valorem duties applied on all goods originating in China, as well as measures with respect to the availability of drawback and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most-favoured-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994 and US tariff obligations under Article II:1(a) of GATT 1994.

Further information is available in document WT/DS633/1

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

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MIL OSI Economics –

February 6, 2025

Trading venue (MIC Code)	Number of shares	Weighted average price / share, EUR*
XHEL	1,400,000	4.53
CEUX	–	–
BATE	–	–
AQEU	–	–
TQEX	–	–
Total	1,400,000	4.53

Category: Trade

Six big reforms in the history of public administration

The seventh big reform in public administration: randomised trials

Why randomised trials should be prioritised over other forms of evaluation

The central goal of evaluation: finding interventions that work

Finding what works: using strong signals from prior research

Creating an experimenting society

Overcoming denial with collaboration and momentum

Conclusion

References

Footnotes

Who does this notice affect?

Bare minimum commitment

Meeting trade obligations

MAIF Agreement

Note to editors

Background

Associated Links

Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Peterson Institute for International Economics (PIIE)

Inflation developments

Economic developments

Financial and monetary conditions

Risk assessment

A middle path for monetary policy

Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Peterson Institute for International Economics (PIIE)

Inflation developments

Economic developments

Financial and monetary conditions

Risk assessment

A middle path for monetary policy

What is a request for consultations?

Share