NewzIntel.com

Category: Trade

  • MIL-OSI China: Import expo to promote high-level opening up

    Source: China State Council Information Office

    A screen promoting the upcoming 7th China International Import Expo (CIIE) is pictured at the entrance of the National Exhibition and Convention Center (Shanghai), the main venue for the CIIE, in east China’s Shanghai, Oct. 22, 2024. [Photo/Xinhua]

    The 7th China International Import Expo (CIIE), scheduled to be held in Shanghai from Nov. 5 to 10, will play its role as a platform to promote high-level opening up, an official said Wednesday.

    The CIIE serves to showcase China’s major opening-up measures and confidence, to share China’s new development opportunities with other countries, and to help improve global economic governance rules and promote the building of an open world economy, Tang Wenhong, assistant minister of commerce, told a press conference.

    This edition of the CIIE has attracted participants from 152 countries, regions and international organizations, and achieved a new record with 297 Fortune Global 500 companies and industry leaders set to attend, Tang said.

    As an important part of the CIIE, the Hongqiao International Economic Forum will include a main forum and 19 sub-forums.

    Since its first edition in 2018, this expo has become an important stage spotlighting China’s new development paradigm, a platform for high-level opening up, and a public good for the whole world.

    The previous six editions saw nearly 2,500 new products, technologies and services make their debuts, with combined intended turnover reaching over 420 billion U.S. dollars.

    MIL OSI China News –

  • MIL-OSI New Zealand: Parliament Hansard Report – Business Statement – 001433

    Source: New Zealand Parliament – Hansard

    BUSINESS STATEMENT

    Hon CHRIS BISHOP (Leader of the House): Today the House will adjourn until Tuesday 5 November. In that week the House will consider the second readings of the Crown Minerals Amendment Bill, the Smokefree Environments and Regulated Products Amendment Bill (No 2), the Building (Earthquake-prone Building Deadlines and Other Matters) Amendment Bill and the Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Bill.

    There will be extended hours on Wednesday morning for Government business and the afternoon will be a members’ day.

    Hon KIERAN McANULTY (Labour): To the Leader of the House: are any of the extended sittings that were signalled this week intended to be for members’ business?

    Hon CHRIS BISHOP (Leader of the House): Not at this stage, but I’m always open to a discussion.

    MIL OSI New Zealand News –

  • MIL-OSI: Euronet Worldwide Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LEAWOOD, Kan., Oct. 23, 2024 (GLOBE NEWSWIRE) — Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ: EEFT), a leading global financial technology solutions and payments provider, reports third quarter 2024 financial results.

    Euronet reports the following consolidated results for the third quarter 2024 compared with the same period of 2023:

    • Revenues of $1,099.3 million, a 9% increase from $1,004.0 million (9% increase on a constant currency1 basis).
    • Operating income of $182.2 million, a 9% increase from $167.0 million (9% increase on a constant currency basis).
    • Adjusted EBITDA2 of $225.7 million, a 6% increase from $212.5 million (6% increase on a constant currency basis).
    • Net income attributable to Euronet of $151.5 million, or $3.21 diluted earnings per share, compared with $104.2 million, or $2.05 diluted earnings per share.
    • Adjusted earnings per share3 of $3.03, an 11% increase from $2.72.
    • Euronet’s cash and cash equivalents were $1,524.1 million and ATM cash was $805.4 million, totaling $2,329.5 million as of September 30, 2024, and availability under its revolving credit facilities was approximately $669.8 million.

    See the reconciliation of non-GAAP items in the attached financial schedules.  

    “I am pleased that we achieved a third quarter adjusted EPS of $3.03, an 11% increase over the prior year’s $2.72. I also point out that we did not include in our adjusted EPS approximately $0.28 per share related to an investment gain. Had we done so, adjusted EPS would have been $3.31. This year’s third quarter is a great reminder of how our product and geographic diversity helps to provide consistency in our earnings. Moreover, with our 17% nine months year to date adjusted EPS growth, we are well on track to be at the top end of the range with good prospects to exceed the range,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. 

    “Money Transfer produced strong third quarter results compared to the prior year across all financial metrics. EFT produced solid results across all metrics with double digit growth in operating income and adjusted EBITDA. epay delivered double-digit revenue and transaction growth.”

    Taking into consideration recent trends in the business and the global economy, continued double-digit quarterly earnings growth, and historical seasonal patterns, the Company remains confident in its previously announced expectations that its 2024 adjusted EPS will grow 10-15% year-over-year, consistent with its 10 and 20 year compounded annualized growth rates. Moreover, the Company expects that in 2025 it will again produce adjusted EPS growth in the 10-15% range. This outlook does not include any changes that may develop in foreign exchange rates, interest rates or other unforeseen factors.

    Segment and Other Results

    The EFT Processing Segment reports the following results for the third quarter 2024 compared with the same period or date in 2023:

    • Revenues of $373.0 million, an 8% increase from $345.8 million (7% increase on a constant currency basis).
    • Operating income of $117.3 million, a 12% increase from $104.8 million (12% increase on a constant currency basis).
    • Adjusted EBITDA of $142.1 million, a 10% increase from $128.7 million (10% increase on a constant currency basis).
    • Transactions of 2,982 million, a 34% increase from 2,231 million.
    • Total of 55,292 installed ATMs as of September 30, 2024, a 4% increase from 53,272. We operated 54,020 active ATMs as of September 30, 2024, a 5% increase from 51,496 as of September 30, 2023.

    Constant currency revenue, operating income, and adjusted EBITDA growth in the third quarter 2024 was driven by travel, growth in the merchant services business and growth within recent market expansion. Operating margins benefited from transactions driven by continued travel recovery together with effective expense management.

    The increase in active ATMs includes the acquisition of 800 ATMs in Malaysia together with the addition of approximately 800 outsourcing ATMs, and the impact of winterizing 500 more ATMs in the prior year at September 30, 2023, compared to September 30, 2024.

    Transaction growth outpaced revenue growth due to continued growth in high-volume low-value transactions in India. 

    The epay Segment reports the following results for the third quarter 2024 compared with the same period or date in 2023:

    • Revenues of $290.3 million, a 10% increase from $264.5 million (10% increase on a constant currency basis).
    • Operating income of $29.1 million, a 3% increase from $28.3 million (2%  increase on a constant currency basis).
    • Adjusted EBITDA of $31.0 million, a 3% increase from $30.1 million (3% increase on a constant currency basis).
    • Transactions of 1,126 million, a 22% increase from 925 million.
    • POS terminals of approximately 766,000 as of September 30, 2024, a 5% decrease from approximately 810,000.
    • Retailer locations of approximately 348,000 as of September 30, 2024, unchanged from prior year.

    Double-digit revenue and transaction growth was driven by continued digital media and mobile growth. Operating income and adjusted EBITDA growth did not keep pace with the overall growth in revenue due to inflationary pressures in the business and expenses incurred to launch new proprietary product offerings.

    The Money Transfer Segment reports the following results for the third quarter 2024 compared with the same period or date in 2023:

    • Revenues of $438.2 million, an 11% increase from $395.9 million (10% increase on a constant currency basis).
    • Operating income of $58.1 million, an 8% increase from $53.7 million (7% increase on a constant currency basis).
    • Adjusted EBITDA of $64.1 million, a 6% increase from $60.7 million (4% increase on a constant currency basis).
    • Total transactions of 45.1 million, an 11% increase from 40.6 million.
    • Network locations of approximately 595,000 as of September 30, 2024, a 10% increase from approximately 540,000.

    Constant currency revenue growth was primarily driven by near double-digit growth in cross-border transactions, offset by a decrease in intra-US transactions. Direct-to-consumer digital transactions grew by 30%, reflecting strong consumer demand for digital products, which represents 19% of total digital transactions. The constant currency operating income increase of 7% was influenced by an additional $2 million year-over-year digital customer marketing spend during the quarter versus last year. Excluding the incremental digital customer marketing spend, constant currency operating income growth would have exceeded 10%, producing operating margins consistent with prior year. Money Transfer’s revenue and gross profit per transaction were consistent with the prior year.

    Corporate and Other reports $22.3 million of expense for the third quarter 2024 compared with $19.8 million for the third quarter 2023. The increase in corporate expenses is largely from increased salaries, performance-based compensation and other management expenses.

    Balance Sheet and Financial Position
    Unrestricted cash and cash equivalents on hand was $1,524.1 million as of September 30, 2024, compared to $1,271.8 million as of June 30, 2024.  The net increase in unrestricted cash and cash equivalents is the net result of the generation of cash from operations and working capital fluctuations partially offset by share repurchases.

    Total indebtedness was $2,278.8 million as of September 30, 2024, compared to $2,270.2 million as of June 30, 2024. Availability under the Company’s revolving credit facilities was approximately $669.8 million as of September 30, 2024.

    The Company repurchased 1 million shares for $101.3 million during the third quarter, which will improve earnings per share by 2% for future periods.

    Non-GAAP Measures
    In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency financial measures, operating income, adjusted EBITDA, and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues, operating income, net income and earnings per share computed in accordance with U.S. GAAP. We believe that these non-GAAP measures provide useful information to investors regarding the Company’s performance and overall results of operations. These non-GAAP measures are also an integral part of the Company’s internal reporting and performance assessment for executives and senior management. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedules provide a full reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure.

    The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.  

    (1) Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company’s results when compared to the prior period.

    (2) Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.

    (3) Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) non-cash investment gain f) other non-operating or non-recurring items and g) dilutive shares relate to the Company’s convertible bonds. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure. 

    Conference Call and Slide Presentation
    Euronet Worldwide will host an analyst conference call on October 24, 2024, at 9:00 a.m. Eastern Time to discuss these results. The call may also include discussion of Company developments on the Company’s operations, forward-looking information, and other material information about business and financial matters. To listen to the call via telephone please register at Euronet Worldwide Third Quarter 2024 Earnings Call. The conference call will also be available via webcast at http://ir.euronetworldwide.com. Participants should register at least five minutes prior to the scheduled start time of the event. A slideshow will be included in the webcast. 

    A webcast replay will be available beginning approximately one hour after the event at  http://ir.euronetworldwide.com and will remain available for one year.

    About Euronet Worldwide, Inc.
    Starting in Central Europe in 1994 and growing to a global real-time digital and cash payments network with millions of touchpoints today, Euronet now moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit card processing, ATMs, POS services, branded payments, foreign currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster and more secure for everyone. 

    A leading global financial technology solutions and payments provider, Euronet has developed an extensive global payments network that includes 55,292 installed ATMs, approximately 949,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 113 countries; card software solutions; a prepaid processing network of approximately 766,000 POS terminals at approximately 348,000 retailer locations in 64 countries; and a global money transfer network of approximately 595,000 locations serving 205 countries and territories. Euronet serves clients from its corporate headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For more information, please visit the Company’s website at www.euronetworldwide.com.

    Statements contained in this news release that concern Euronet’s or its management’s intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: conditions in world financial markets and general economic conditions, including impacts from the COVID-19 or other pandemics; inflation; the war in the Ukraine and the related economic sanctions; military conflicts in the Middle East; our ability to successfully integrate any acquired operations; economic conditions in specific countries and regions; technological developments affecting the market for our products and services; our ability to successfully introduce new products and services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs; our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy; changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions; changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other loss contingencies affecting Euronet; the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants; and renewal of sources of funding as they expire and the availability of replacement funding. These risks and other risks are described in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC’s Edgar website or by contacting the Company. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. The Company regularly posts important information to the investor relations section of its website.  

     EURONET WORLDWIDE, INC.
     Condensed Consolidated Balance Sheets
     (in millions)
           
      As of    
      September 30,   As of
      2024   December 31,
      (unaudited)   2023
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 1,524.1   $ 1,254.2
    ATM cash 805.4   525.2
    Restricted cash 18.9   15.2
    Settlement assets 1,461.0   1,681.5
    Trade accounts receivable, net 273.2   370.6
    Prepaid expenses and other current assets 303.2   316.0
    Total current assets 4,385.8   4,162.7
           
    Property and equipment, net 340.3   332.1
    Right of use lease asset, net 142.9   142.6
    Goodwill and acquired intangible assets, net 1,118.9   1,015.1
    Other assets, net 301.2   241.9
    Total assets $ 6,289.1   $ 5,894.4
           
    LIABILITIES AND EQUITY      
    Current liabilities:      
    Settlement obligations $ 1,461.0   $ 1,681.5
    Accounts payable and other current liabilities 877.4   816.9
    Current portion of operating lease liabilities 51.4   50.3
    Short-term debt obligations 1,081.4   151.9
    Total current liabilities 3,471.2   2,700.6
           
    Debt obligations, net of current portion 1,195.5   1,715.4
    Operating lease liabilities, net of current portion 95.4   95.8
    Capital lease obligations, net of current portion 1.9   2.3
    Deferred income taxes 77.6   47.0
    Other long-term liabilities 85.5   83.6
    Total liabilities 4,927.1   4,644.7
    Equity 1,362.0   1,249.7
    Total liabilities and equity $ 6,289.1   $ 5,894.4
     EURONET WORLDWIDE, INC.
     Consolidated Statements of Operations
     (unaudited – in millions, except share and per share data)
           
      Three Months Ended
      September 30,
      2024   2023
           
    Revenues $ 1,099.3     $ 1,004.0  
           
    Operating expenses:      
    Direct operating costs 634.0     576.7  
    Salaries and benefits 169.6     153.6  
    Selling, general and administrative 80.6     73.9  
    Depreciation and amortization 32.9     32.8  
    Total operating expenses 917.1     837.0  
    Operating income 182.2     167.0  
           
    Other income (expense):      
    Interest income 6.5     4.0  
    Interest expense (24.2 )   (15.0 )
    Foreign currency exchange gain (loss) 27.4     (8.8 )
    Other income 16.5     —  
    Total other income (expense), net 26.2     (19.8 )
    Income before income taxes 208.4     147.2  
           
    Income tax expense (56.8 )   (43.0 )
           
    Net income 151.6     104.2  
    Net loss attributable to non-controlling interests (0.1 )   —  
    Net income attributable to Euronet Worldwide, Inc. $ 151.5     $ 104.2  
    Add: Interest expense from assumed conversion of convertible notes, net of tax   1.1       1.1  
    Net income for diluted earnings per share calculation $ 152.6     $ 105.3  
    Earnings per share attributable to Euronet Worldwide, Inc. stockholders – diluted $ 3.21     $ 2.05  
           
    Diluted weighted average shares outstanding 47,554,606     51,470,603  
           
     EURONET WORLDWIDE, INC.
    Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA
     (unaudited – in millions)
                       
      Three months ended September 30, 2024
                       
      EFT Processing   epay   Money Transfer   Corporate Services   Consolidated
                       
    Net income                 $ 151.6  
                       
    Add: Income tax expense                 56.8  
    Less: Total other income, net                 (26.2 )
                       
    Operating income (expense) $ 117.3     $ 29.1     $ 58.1     $ (22.3 )   $ 182.2  
    Add: Depreciation and amortization 24.8     1.9     6.0     0.2     32.9  
    Add: Share-based compensation —     —     —     10.6     10.6  
    Earnings before interest, taxes, depreciation, amortization, share-based compensation (Adjusted EBITDA) (1) $ 142.1     $ 31.0     $ 64.1     $ (11.5 )   $ 225.7  
                       
      Three months ended September 30, 2023
                       
      EFT Processing   epay   Money Transfer   Corporate Services   Consolidated
                       
    Net income                 $ 104.2  
                       
    Add: Income tax expense                 43.0  
    Add: Total other expense, net                 19.8  
                       
    Operating income (expense) $ 104.8     $ 28.3     $ 53.7     $ (19.8 )   $ 167.0  
    Add: Depreciation and amortization 23.9     1.8     7.0     0.1     32.8  
    Add: Share-based compensation —     —     —     12.7     12.7  
    Earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) $ 128.7     $ 30.1     $ 60.7     $ (7.0 )   $ 212.5  
    EURONET WORLDWIDE, INC.
    Reconciliation of Adjusted Earnings per Share
    (unaudited – in millions, except share and per share data)
           
      Three Months Ended
      September 30,
      2024   2023
           
    Net income attributable to Euronet Worldwide, Inc. $ 151.5     $ 104.2  
           
    Foreign currency exchange (loss) gain (27.4 )   8.8  
    Intangible asset amortization(1) 5.1     5.5  
    Share-based compensation(2) 10.6     12.7  
    Income tax effect of above adjustments(3) 4.9     (4.7 )
    Non-cash investment gain(4) (16.9 )   —  
    Non-cash GAAP tax expense(5) 8.8     6.2  
           
    Adjusted earnings(6) $ 136.6     $ 132.7  
           
    Adjusted earnings per share – diluted(6) $ 3.03     $ 2.72  
           
    Diluted weighted average shares outstanding (GAAP)   47,554,606     51,470,603  
    Effect of adjusted EPS dilution of convertible notes   (2,781,818 )     (2,781,818 )
    Effect of unrecognized share-based compensation on diluted shares outstanding   320,885     185,073  
    Adjusted diluted weighted average shares outstanding   45,093,673     48,873,858  
     

    (1) Intangible asset amortization of $5.1 million and $5.5 million are included in depreciation and amortization expense of $32.9 million and $32.8 million for both the three months ended September 30, 2024, and September 30, 2023, in the consolidated statements of operations.

    (2) Share-based compensation of $10.6 million and $12.7 million are included in salaries and benefits expense of $169.6 million and $153.6 million for the three months ended September 30, 2024, and September 30, 2023, respectively, in the consolidated statements of operations.

    (3) Adjustment is the aggregate U.S. GAAP income tax effect on the preceding adjustments determined by applying the applicable statutory U.S. federal, state and/or foreign income tax rates. 

    (4) Non-cash investment gain of $16.9 million is included in other income in the consolidated statement of operations.

    (5) Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.

    (6) Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with U.S. GAAP. 

    The MIL Network –

  • MIL-OSI Asia-Pac: FS continues to promote Hong Kong’s new advantages in New York (with photos/video)

    Source: Hong Kong Government special administrative region

         The Financial Secretary, Mr Paul Chan, continued his visit in New York, the United States (US), yesterday (October 23, New York time) to promote Hong Kong’s advantages and opportunities.
          
         Mr Chan attended a luncheon co-hosted by the Hong Kong Economic and Trade Office in New York and the Hong Kong Association of New York, with around 80 representatives from businesses, institutions, chambers of commerce and think tanks present. During the luncheon, Mr Chan delivered a keynote speech and engaged in a discussion with the President of the National Committee on United States-China Relations, Mr Steve Orlins, addressing topics of interest regarding Hong Kong in US political and business circles.
          
         In his remarks, Mr Chan introduced Hong Kong’s latest economic situation and development strategies, particularly new initiatives in key areas such as finance and innovation and technology, policies and achievements related to attracting businesses and talent, and the increasingly close co-operation and collaborative developments with sister cities in the Guangdong-Hong Kong-Macao Greater Bay Area.
          
         Mr Chan stated that the “one country, two systems” arrangement will remain implemented in Hong Kong for the long term. He emphasised that Hong Kong will continue to play its unique role as a “super connector” and “super value-adder,” linking the capital markets and investors of the Mainland and the global community to create value and opportunities for all. He noted that Hong Kong consistently maintains the common law system, upholds the rule of law, provides an open, free, and simple low-tax business environment and protects investors’ rights. Following the implementation of national security legislation, foreign businesses continue to have confidence in Hong Kong, and various international institutions have affirmed Hong Kong’s excellent business environment and competitiveness. Mr Chan highlighted that Hong Kong values the strengthening of relationships with traditional markets and welcomes continued investments from the US business community. The Hong Kong Special Administrative Region Government will continue to present the real situation of Hong Kong through objective facts and data, and maintain communications and connections with the US’s political and business sectors.
          
         In the morning, Mr Chan had breakfast with local political and business figures, followed by a roundtable meeting where he met with local financial and banking professionals to introduce Hong Kong’s latest status and opportunities, and address their questions.
          
         In the afternoon, Mr Chan met with the Acting Consul General of China in New York, Mr Ma Xiaoxiao, to exchange views on China-US economic and trade relations, and co-operation.
          
         Mr Chan will continue his final day of visit in New York today (October 24, New York time).               

    MIL OSI Asia Pacific News –

  • MIL-OSI: Equinor third quarter 2024 results

    Source: GlobeNewswire (MIL-OSI)

    Equinor (OSE: EQNR, NYSE: EQNR) delivered adjusted operating income* of USD 6.89 billion and USD 2.04 billion after tax in the third quarter of 2024. Equinor reported net operating income of USD 6.91 billion and net income at USD 2.29 billion. Adjusted net income* was USD 2.19 billion, leading to adjusted earnings per share* of USD 0.79.

    Financial and operational performance

    • Solid financial results
    • Effective execution of extensive turnaround programme
    • Strong cash flow from operations

    Strategic progress

    • All-time high production from the Troll field in the gas year
    • Northern Lights facility completed and ready to receive CO2
    • Acquired a 9.8 percent stake in Ørsted in October

    Capital distribution

    • Third quarter ordinary cash dividend of USD 0.35 per share, extraordinary cash dividend of USD 0.35 per share and fourth tranche of share buy-back of up to USD 1.6 billion
    • Total capital distribution for 2024 in line with announced level of around USD 14 billion

    Anders Opedal, President and CEO of Equinor ASA:

    “With solid operational performance and results, we are well on track to deliver strong cashflow from operations in line with what we said at the capital markets update in February.”

    “Over time, we have upgraded the capacity in the gas value chain. This has contributed to an all-time high production from the Troll field in the gas year. In the quarter, the Johan Sverdrup field delivered a production record of more than 756 000 barrels of oil in one day and reached the milestone of one billion barrels produced since the start-up five years ago. This strengthens our position to deliver safe and reliable energy to Europe.”

    “We continue to invest in renewables and develop low carbon value chains. In the quarter, the world’s first commercial storage facility, Northern Lights, was completed and is now ready to receive CO2 from customers.”

    Operational performance

    Equinor delivered a total equity production of 1,984 mboe per day in the third quarter, down from 2,007 mboe in the same quarter last year.

    On the Norwegian continental shelf (NCS), production increased by 2 percent compared to the third quarter 2023. This was due to high gas production from the Troll field and positive contributions from Aasta Hansteen and Oseberg. The increase was partially offset by extensive turnarounds, natural decline and reduced ownership in the Statfjord area.

    Internationally, new wells contributed positively to the production. However, the international production was negatively impacted by offshore turnarounds and hurricanes in the United States.

    In the quarter, Equinor completed nine offshore exploration wells with one commercial discovery. Four wells were ongoing at the quarter end. Two wells were expensed.

    Equinor produced 677 GWh from renewable assets in the third quarter, up 82 percent from the same quarter last year. The increase was driven by the addition of onshore power plants in 2024. The offshore wind parks Dudgeon, Sheringham Shoal and Arkona also contributed positively to the production.

    The progress at Dogger Bank A is slower than expected. Based on this, the expected growth in power production from renewable assets in 2024 is adjusted to around 50 percent.

    Strategic progress

    Equinor continued to optimise the portfolio through projects and strategic business development in the quarter.

    On the NCS, the Johan Castberg production vessel was securely anchored at the field in the Barents Sea and hook-up is on track for production start before year-end. In the quarter, Troll B and C became partly powered from shore, contributing to the company’s efforts to strengthen competitiveness and halve operated emissions by 2030.

    The recent acquisition of a 9.8 percent stake in Ørsted, gives Equinor exposure to premium offshore wind assets in operation and a solid project pipeline. In the quarter, Equinor also won an offshore wind lease in the U.S. Atlantic Ocean at an attractive price, adding optionality of around 2 gigawatt capacity to its existing portfolio. Furthermore, the company started recalibrating its portfolio of early phase renewable projects to reduce cost and focus business development toward core markets.

    Equinor continues to progress its low carbon solutions portfolio. The Northern Lights facility was completed on estimated time and budget. In the UK, two key partner-operated low-carbon solution projects secured funding from the government.

    Solid financial results

    Equinor delivered adjusted operating income* of USD 6.89 billion. USD 5.88 billion come from Exploration and Production Norway, USD 407 million from E&P International and USD 207 million from E&P USA. Marketing, Midstream & Processing delivered adjusted operating income* of USD 545 million, driven by LNG, power trading and geographical arbitrage for LPG. Adjusted operating income* from Renewables was negative USD 115 million, as the costs of project development exceeded the earnings from assets in operation.

    Cash flow from operating activities before taxes paid and working capital items amounted to USD 9.23 billion for the third quarter. Cash flow from operations after taxes paid* was USD 6.25 billion for the quarter, and USD 14.0 billion year to date.

    Equinor paid one NCS tax instalment of USD 2.87 billion in the quarter and total capital expenditures were USD 3.14 billion. Organic capital expenditure* was USD 3.08 billion for the quarter and USD 8.73 billion year to date. The organic capital expenditure* guiding for the year is adjusted to USD 12-13 billion. After taxes, capital distribution to shareholders and investments, net cash flow* ended at negative USD 3.42 billion in the third quarter. The Norwegian state’s share of the share buy-back programme of USD 4.02 billion in July impacted the net cash flow*.

    Adjusted net debt to capital employed ratio* was negative 2.0 percent at the end of the third quarter, compared to negative 3.4 percent at the end of the second quarter of 2024.

    Capital distribution

    The board of directors has decided an ordinary cash dividend of USD 0.35 per share and an extraordinary cash dividend of USD 0.35 per share for the third quarter of 2024. This is in line with communication at the capital markets update in February.

    The board has decided to initiate a fourth and final tranche of share buy-back for 2024 of up to USD 1.6 billion. The fourth tranche will commence on 25 October and end no later than 31 January 2025. This fourth tranche will complete the announced share buy-back programme of up to USD 6 billion for 2024. It will also conclude total capital distribution for 2024 of around USD 14 billion.

    The third tranche of the share buy-back programme was completed on 16 October 2024 with a total value of USD 1.6 billion.

    All share buy-back amounts include shares to be redeemed by the Norwegian state.

    —
    * For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures.
    —

    Further information from:

    Investor relations
    Bård Glad Pedersen, senior vice president Investor relations,
    +47 918 01 791 (mobile)

    Press
    Sissel Rinde, vice president Media relations,
    +47 412 60 584 (mobile)

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

    Attachments

    The MIL Network –

  • MIL-OSI: Equinor to commence fourth tranche of the share buy-back programme for 2024

    Source: GlobeNewswire (MIL-OSI)

    Equinor (OSE: EQNR, NYSE: EQNR) will on 25 October 2024 commence the fourth and final tranche of up to USD 1.6 billion of the share buy-back programme for 2024, as announced in relation with the third quarter results 24 October 2024.

    In this fourth tranche, shares for up to USD 528 million will be purchased in the market, implying a total tranche of up to USD 1.6 billion including shares to be redeemed from the Norwegian State. The tranche will end no later than 31 January 2025.

    Equinor announced at the Capital Market Update in February 2024 a two-year share buy-back programme of total USD 10-12 billion for 2024-2025, with up to USD 6 billion for 2024, including shares to be redeemed from the Norwegian State. The share buy-back programme will be subject to market outlook and balance sheet strength and be structured into tranches where Equinor will buy back shares for a certain value in USD over a defined period. For the fourth tranche for 2024, Equinor will be entering into a non-discretionary agreement with a third party who will execute repurchases of shares and make its trading decisions independently of the company.

    Commencement of new share buy-back tranches after the fourth tranche for 2024 will be decided by the board of directors on a quarterly basis in line with the company’s dividend policy and will be subject to board authorisation for share buy-back from the company’s annual general meeting and agreement with the Norwegian State regarding share buy-back (as further described below).

    The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares purchased as part of the fourth tranche for 2024 will thus be cancelled through a capital reduction at the annual general meeting of the company in May 2025.

    Further information about the share buy-back programme and the fourth tranche:

    The fourth tranche of the share buy-back programme for 2024 is based on an authorisation granted to the board of directors at the annual general meeting of the company held on 14 May 2024. According to the authorisation, the maximum number of shares to be purchased in the market is 92 million, of which 52,868,185 remain available per commencement of the fourth tranche for 2024 (buy-backs made under previous tranches in the authorisation period taken into account). The minimum price that can be paid per share is NOK 50, and the maximum price is NOK 1,000. The authorisation is valid until the earliest of 30 June 2025 and the annual general meeting of the company in 2025.

    An agreement between Equinor and the Norwegian State regulates the State’s participation in the share buy-back: at the annual general meeting of the company in May 2025, the State will, as per proposal by the board of directors, vote for the cancellation of shares purchased in the market pursuant to the board authorisation, and the redemption and cancellation of a proportionate number of its shares in order to maintain its ownership share in the company at 67%. The price to be paid to the State for redemption of the State’s shares shall be the volume-weighted average of the price paid by Equinor for shares purchased in the market plus an interest rate compensation, adjusted for any dividends paid.

    In the fourth tranche for 2024, shares will be purchased on the Oslo Stock Exchange and possibly other trading venues within the EEA. Transactions will be conducted in accordance with applicable safe harbour conditions, and as further set out in the Norwegian Securities Trading Act of 2007, EU Commission Regulation (EC) No 2016/1052 and the Oslo Stock Exchange’s Guidelines for buy-back programmes and price stabilisation from February 2021.

    The board of directors will propose to the annual general meeting of the company to be held in May 2025, to cancel shares purchased in the market in this fourth tranche for 2024 and to redeem and cancel a proportionate number of the State’s shares per the agreement with the State. Based on renewal of this agreement, shares purchased under subsequent tranches of the two-year share buy-back programme for 2024-2025 and a proportionate number of the State’s shares will follow a similar process at the annual general meetings of the company in 2025 and 2026, respectively.

    This is information that Equinor is obliged to make public pursuant to the EU Market Abuse Regulation and that is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

    Further information from:

    Investor relations
    Bård Glad Pedersen, senior vice president Investor Relations,
    +47 918 01 791

    Media
    Sissel Rinde, vice president Media Relations,
    +47 412 60 584

    The MIL Network –

  • MIL-OSI: Equinor ASA: Key information relating to cash dividend for third quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    Key information relating to the cash dividend to be paid by Equinor ASA (OSE: EQNR, NYSE: EQNR) for third quarter 2024.

    Ordinary cash dividend amount: 0.35

    Extraordinary cash dividend amount: 0.35

    Announced currency: USD

    Last day including rights: 12 February 2025

    Ex-date Oslo Børs: 13 February 2025

    Ex-date New York Stock Exchange: 14 February 2025

    Record date : 14 February 2025

    Payment date: 28 February 2025

    Date of approval: 23 October 2024

    Other information: The cash dividend per share in NOK will be communicated 21 February 2025.

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Press Release

    VELIZY-VILLACOUBLAY, France — October 24, 2024

    Dassault Systèmes: Third quarter results in-line

    Anticipating top line acceleration in 4Q

    Confirming full year EPS objective

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

    Summary Highlights1  

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

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

    Dassault Systèmes’ Chief Executive Officer Commentary

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

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

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

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

      

    Dassault Systèmes’ Chief Financial Officer Commentary

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

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

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

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

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

    Financial Summary

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

    Third Quarter 2024 Versus 2023 Financial Comparisons

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

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

    Nine months ended 2024 Versus 2023 Financial Comparisons

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

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

    Financial Objectives for 2024

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

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

    Services revenue growth *

    0 – 5%

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

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

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

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

    Corporate Announcements

    Today’s Webcast and Conference Call Information

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

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

    Investor Relations Events

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

    Forward-looking Information

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

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

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

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

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

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

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

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

    Non-IFRS Financial Information

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

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

    FOR MORE INFORMATION

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

    ABOUT DASSAULT SYSTÈMES

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

    Dassault Systèmes Investor Relations Team                        FTI Consulting

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

                                                                    Jamie Ricketts : +44 20 3727 1600

    investors@3ds.com

    Dassault Systèmes Press Contacts

    Corporate / France        Arnaud MALHERBE        

    arnaud.malherbe@3ds.com        

    +33 (0)1 61 62 87 73

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

    APPENDIX TABLE OF CONTENTS

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

    Glossary of Definitions

    Non-IFRS Financial Information

    Acquisitions and Foreign Exchange Impact

    Condensed consolidated statements of income

    Condensed consolidated balance sheet

    Condensed consolidated cash flow statement

    IFRS – non-IFRS reconciliation

    DASSAULT SYSTÈMES – Glossary of Definitions

    Information in Constant Currencies

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

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

    Information on Growth excluding acquisitions (“organic growth”)

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

    Information on Industrial Sectors

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

    These three sectors comprise twelve industries:

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

    Information on Product Lines

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

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

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

    GEO’s

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

    These GEOs are structured into three groups:

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

    3DEXPERIENCE Software Contribution

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

    Cloud revenue

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

    DASSAULT SYSTÈMES

    NON-IFRS FINANCIAL INFORMATION

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

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

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

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

    2024

    		 September 30,

    2023

    		 Change Change in constant currencies September 30,

    2024

    		 September 30,

    2023

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

    DASSAULT SYSTÈMES

    ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

    (unaudited; in millions of Euros)

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

    2024

    		 September 30,

    2023

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

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

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

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

    IFRS reported

     

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

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

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED BALANCE SHEET

    (unaudited; in millions of Euros)

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

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED CASH FLOW STATEMENT

    (unaudited; in millions of Euros)

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

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

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

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

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

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

    IFRS

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

    Non-IFRS

    		 2023

    IFRS

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

    Non-IFRS

    		 IFRS Non-

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

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

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

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

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

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

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

    IFRS

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

    Non-IFRS

    		 2023

    IFRS

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

    Non-IFRS

    		 IFRS Non-

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

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

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

    Attachment

    The MIL Network –

  • MIL-OSI Asia-Pac: FS promotes HK’s advantages in US

    Source: Hong Kong Information Services

    Financial Secretary Paul Chan delivered a speech and held discussions with President of the National Committee on United States-China Relations Steve Orlins as he continued a visit to New York, the US.

    Mr Chan gave his speech at a lunch co-hosted by the Hong Kong Economic & Trade Office in New York and the Hong Kong Association of New York and attended by around 80 representatives from the business sector and from various institutions, chambers of commerce and think tanks.

    At the lunch, he also discussed topics of interest relating to Hong Kong in US political and business circles with Mr Orlins.

    In his address, Mr Chan spoke about Hong Kong’s economic situation and development strategies. He focused in particular on new initiatives in areas such as finance and innovation and technology, policies and achievements related to attracting businesses and talent, and Hong Kong’s increasingly close co-operation and collaborations with sister cities in the Greater Bay Area.

    Mr Chan stated that the “one country, two systems” arrangement will in place in Hong Kong for the long term. He emphasised that the city will continue to play a unique role as a super-connector and super value-adder, linking the Mainland’s capital markets and investors with those of the global community to create value and opportunities for all.

    He highlighted that Hong Kong maintains its common law system, upholds the rule of law, provides an open, free, and simple low-tax business environment, and protects investors’ rights. Following the implementation of national security legislation, he added, foreign businesses continue to have confidence in Hong Kong, and various international institutions have affirmed the city’s excellent business environment and competitiveness.

    The Financial Secretary highlighted that Hong Kong values the strengthening of relationships with traditional markets and welcomes continued investments from the US business community. He said that the Hong Kong Special Administrative Region Government will continue to present the real situation in Hong Kong through objective facts and data, and will maintain communication and connections with political and business sectors in the US.

    Earlier, Mr Chan had breakfast with local political and business figures, followed by a roundtable meeting with local financial and banking professionals in which he briefed them on Hong Kong’s latest situation and opportunities, and took questions.

    Mr Chan met Acting Consul General of China in New York Ma Xiaoxiao in the afternoon to discuss China-US economic and trade relations.

    MIL OSI Asia Pacific News –

  • MIL-OSI United Kingdom: The Maldives WTO Trade Policy Review: UK Statement, October 2024

    Source: United Kingdom – Executive Government & Departments

    The UK’s Permanent Representative to the World Trade Organization (WTO) and UN in Geneva, Simon Manley, gave a statement during The Maldives Trade Policy Review.

    Location:
    Geneva
    Delivered on:
    (Transcript of the speech, exactly as it was delivered)

    Chair, let me offer a warm welcome to the delegation from the Maldives led by the Minister of State. Let me also express my gratitude, both to him and his team for their report and to the WTO Secretariat, for their report. I also thank you Chair, for your very good introduction and let me also pay tribute to our Discussant, my very good friend, Ambassador Murdoch, for an intervention. If I may say, for those of us that are of a cricketing bent, Ambassador, combined the elegance and power of your good friend Sir Viv Richards with the intellectual rigour of my own hero Mike Brearley.

    Reports analysis

    1. Chair, the Maldives experience exemplifies the benefits of open trade to sustainable development. You spoke of it as a shining example, I would agree with that. That openness has clearly been a factor in enabling significant infrastructure development, an increasingly diverse tourism sector (in which so many of us aspire to be customers) and a highly sustainable fishing industry – to which both the Minister and Ambassador Murdoch paid tribute.

    2. While the COVID-19 pandemic had a severe impact on the Maldives’ economy, as it did on ours and so many around this organisation, the tourism industry clearly drove forward a strong recovery. A tourism industry which is deeply appreciated by Brits, who come in such droves that the UK consistently features in the top four nationalities visiting your country. You may detect a theme here, Minister.

    3. The reports also demonstrate the continued strength in the Maldives’ trade in services sector, which increased by 47% from 2017 to 2022, driven by a 64% increase in travel service exports. If I may say, yet another example of how trade in services can drive sustainable development in developing countries, which I think is a wider point for this organisation.

    4. Redistribution of that revenue from trade has allowed Maldives, as others have said, to transform from an LDC to an upper middle-income country, classed as a high human development country according to the Human Development Index. So congratulations Minister, congratulations to you, your government and your team here.

    Bilateral trade

    1. Chair, as a fellow Commonwealth member, indeed you, the Maldives, and Ambassador Murdoch, we are coming together in Samoa for the Commonwealth Heads of Government meeting (CHOGM), the UK – Maldives relationship is marked by rich, historical and contemporary ties that are woven into every facet of the enduring friendship between our Governments, our businesses and our people.

    2. We collaborate closely on governance, security, counter terrorism, climate change, environmental protection. And if I may venture out of this building for a second, also on Human Rights, where if I may say, Maldives has played such an important role here in Geneva, punching well above its weight, particularly in its support to fellow SIDS and LDCs, through its role as the co-chair of the Contact Group on HRC membership. And, of course, trade are key areas of collaboration between our two nations. And they are areas of partnership which we will both be seeking to strengthen in Samoa this week.

    3. Protecting the Maldives’ thriving marine biodiversity, is a key objective in our relationship – not just for the enjoyment of the British tourists but also for the future and preservation of our planet. We have a shared interest in the entry to force of Fish I and the early conclusion of Fish II.

    4. Our ties extend to our businesses as well. Total trade in goods and services between the UK and Maldives was worth over half a billion pounds in the four quarters to the end of Q1 2024, and we are proud to be the third largest market for the Maldives’ merchandise exports, those fisheries that Ambassador Murdoch referred to.

    5. A British Business Group was launched in May 2024, as an opportunity to promote trade, and foster business and commercial partnerships and other links between our two nations.

    Business environment and women in trade

    1. Chair, let me encourage Maldives to continue its work to promote a business-friendly environment that supports economic diversification. And if I may add, with two hats, both as UK PR and co-chair on the working group on trade and gender we value its efforts in advancing women’s economic empowerment and its engagement on trade and gender equality at the WTO.

    2. Equally, let me highlight the SME Development Financing Corporation, established by the Maldives in 2019 to support financial inclusion for MSMEs, women and youth, again very admirable initiatives.

    UK support programmes [the Maldives Development Partnership]

    1. As I previously alluded to, a key area of partnership between our two nations is through our mutual environmental objectives. Under the Blue Planet Fund, the Ocean Country Partnership Programme focuses extensive work on Marine Pollution and Biodiversity. Meanwhile the Climate Action for a Resilient Asia programme is funding a Climate Finance Network programme on transforming the Blue Economy with Maldives MSME Empowerment and Blended Finance.

    2. This year, in these few weeks ahead of us, when we have the three Rio Convention COPs meeting in quick succession, it is essential that we work together to deliver on our commitments across all issues of environmental sustainability, an issue of such critical importance to the Maldives, as the Minister reminded us at the start.

    WTO and multilateral institutions

    1. The continued commitment Maldives has shown to the Multilateral Trading System, as a founding member of the WTO, and, more recently, Maldives’ engagement with discussions on environmentally sustainable trade practices is welcome. Others have suggested other areas where we could increase that participation here.

    2. We have also been pleased to see the progress that Maldives have made on the ratification of the Trade Facilitation Agreement, supported, I might add by the UK’s Accelerate Trade Facilitation programme. Just this month British colleagues were in Maldives for the validation of their National Trade Facilitation roadmap. We look forward to working with the Maldives to implement further measures.

    3. Fisheries, as we’ve reflected, is a huge pillar of the Maldivian economy, and the practice of pole and line fishing is one of the most sustainable methods for fishing. We urge Maldives to ratify Fish I, which will help us to deliver on SDG mandate 14.6. The UK is fully behind Maldives, and others, not least our distinguished permanent representative from Iceland, in securing agreement on the second phase of negotiations on Fisheries Subsidies at the very earliest possible opportunity.

    Conclusion

    1. In conclusion, Chair, let me thank you, the Discussant, and the whole delegation from the Maldives for your work on this Review and the accompanying Reports.

    2. Chair, Maldives is known as a beautiful holiday destination – many newlyweds travel from far and wide to see the rare white sands beaches and diverse sea life. The story these reports tell of the Maldives’ trade and its coupling with the WTO, show a match made in heaven – a true case study for the story of free, fair and open trade that the multilateral system allows us to see.

    Thank you very much indeed.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: Opening keynote address by Permanent Secretary for Financial Services and the Treasury (Financial Services) at AIMA APAC Annual Forum 2024 (English only) (with photos)

    Source: Hong Kong Government special administrative region

         Following is the opening keynote address by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the AIMA (Alternative Investment Management Association) APAC (Asia-Pacific) Annual Forum 2024 today (October 24):
     
    Jack (Chief Executive Officer of AIMA, Mr Jack Inglis), JiÅ™í (Deputy Chief Executive Officer and Global Head of Government Affairs, AIMA, Mr JiÅ™í Król), Murray (Chairman of AIMA Hong Kong Executive Committee, Mr Murray Steel), Michael (Managing Director and Co-Head of APAC, AIMA, Mr Michael Bugel), distinguished guests, ladies and gentlemen,
     
         Good morning. It gives me great pleasure to address you all today at the 2024 APAC Annual Forum of the Alternative Investment Management Association (AIMA).
     
         With more than 2 000 corporate members from over 60 locations over the world and significantly in the Asia-Pacific region, AIMA is a strong global voice of the alternative investment industry. The impressive congregation of the bright minds of alternative asset managers, financial regulators, legal and accounting professionals, fintech experts and many more here today speaks volumes about the keen interest of industry players to share views on the continued growth of the global financial markets. I can see that AIMA Hong Kong has done a fantastic job in organising the Forum and putting together a very rich agenda for us to ponder the challenges and opportunities in the evolving global environment.
     
         For now, as a precursor to the discussions at the various panels later today, allow me to share with you how we see Hong Kong’s capital market landscape through the lens of “resilience”, “reform”, and “responsibility”.
     
    Resilient market
     
         The Hong Kong stock market as measured by the Hang Seng Index has registered a growth of over 20 per cent year-to-date. This puts us among the top performing international markets. Trading has been vibrant, with long-term institutional investors including fund managers and investment banks from the region and both sides of the Atlantic making up the majority of the buy side value over the recent period. And in September, the Hong Kong Exchanges and Clearing Limited (HKEX) welcomed in the second-largest initial public offering (IPO) globally this year so far, raising over US$4.5 billion. The derivatives market is equally active. An average of 1.5 million futures and option contracts were traded daily in the first nine months of 2024, an increase of 12 per cent year-on-year and a record high.
     
         On the asset and wealth management front, Hong Kong managed about US$4 trillion of assets last year, over 10 times our GDP (Gross Domestic Product). Net fund inflows jumped 3.4 times year-on-year. With over 650 private equity and venture capital firms, Hong Kong hosts a fund pool of private equity capital under management of over US$230 billion, putting us at Asia’s second place following the Mainland. It is no coincidence that we are also Asia’s largest hedge fund hub and cross-boundary wealth management centre. Added to these, we are home to some 2 700 single family offices.
     
         On fixed income, Hong Kong maintains its position as the primary location for arranging international bond issuances from Asian entities. Last year, close to US$90 billion worth of international bond issuances from the region were arranged in Hong Kong, equivalent to around a quarter of the market.
     
         The strong economic support measures recently announced by the Mainland central authorities has no doubt played a key role in the market’s ongoing improvement. Weaving into the market resilience is the awareness and hard work to keep up the robustness of our trading and clearing systems buttressed with sound risk-management measures. Going hand-in-hand with such discipline is the focus on diversifying our financial platform so that market participants can play out their best and capture the opportunities when they arise.
     
         In the public market, for example, we have introduced new listing avenues for pre-revenue biotech companies, innovative enterprises with weighted voting rights structures, and specialist tech companies, as well as a new concessionary route to secondary listings for overseas issuers. Overall, more than 300 new-economy companies have listed on the HKEX. They include 66 pre-revenue biotech companies, making Hong Kong one of the top fundraising hubs for healthcare companies.
     
         To further attract listings of international and Mainland enterprises, the Securities and Futures Commission (SFC) and HKEX announced last week specific timelines in the vetting procedures of listing applications to provide greater certainty over the listing timeframe.
     
         Turning to the private market, we introduced the limited partnership fund (LPF) structure in August 2020 to allow private funds to be registered in the form of limited partnerships. Since its introduction, the number of LPFs established in Hong Kong has seen an average 40 per cent annual growth and will soon hit the 1 000 mark.
     
         Hong Kong has over 4 000 start-ups. In addition, as a result of the good work of the Office for Attracting Strategic Enterprises (OASES), over 100 strategic innovation and technology international enterprises will set up or expand their businesses here, bringing in a total investment of more than HK$52 billion so far. Next month, OASES will announce a new batch of strategic enterprises including artificial intelligence and big data analytics companies from different parts of the world to have a presence in Hong Kong. All these will offer investment possibilities for the alternative investment industry.

    Continuous strategic reform
     
         To seek continuous improvements, harness change and deliver results is the driving principle in furthering the development of our capital markets. Continuous strategic reform is indeed a key theme of the Policy Address delivered by the Chief Executive of the Hong Kong Special Administrative Region last Wednesday.
     
         To enhance our international financial centre status and investment environment, the Policy Address has announced a number of reform proposals and I would like to highlight some of them here.
     
         Notably, to support the development of the asset and wealth management industry, particularly privately offered funds, private equities and family offices, we will soon consult the industry on proposals to enhance the tax exemption arrangements for related entities through three main areas, first, expanding the definition of “fund” to cover pension funds and endowment funds so as to strengthen the development of “patient capital”; second, increasing the types of transactions eligible for tax concessions for funds and single family offices to cover emission derivatives or emission allowances, insurance-linked securities, loans and private credit investments, virtual assets, etc; and thirdly, removing the requirements for certification and hurdle rate for carried interest in seeking such tax exemption arrangements. We look forward to hearing your views when the details are available, which should be very soon.
     
         On market infrastructure, we will upgrade the Central Moneymarkets Unit (CMU) to facilitate the settlement of assets denominated in different currencies by international investors. The fixed income market infrastructure will be enhanced by exploring the set-up of a central clearing system for RMB (Renminbi)-denominated bond repurchase (repo) transactions, making RMB sovereign bonds issued in Hong Kong a more popular choice of collateral in offshore markets.
     
         We will also make good use of the currency swap agreement, and the Hong Kong Monetary Authority (HKMA) will expand the night-time, cross-boundary service capability of Hong Kong’s RMB Real Time Gross Settlement System to facilitate global settlement in offshore RMB markets, and explore the provision of more diversified channels for obtaining offshore RMB financing.
     
         We will continue to enhance our market infrastructure to enrich the offshore RMB business ecosystem in Hong Kong. As you know, Hong Kong currently processes about 80 per cent of global offshore RMB payments and has the largest offshore RMB pool, reaching RMB1.1 trillion in end-August this year.
     
         Looking beyond the Asia-Pacific region, we seek to establish connections with new and emerging markets, including the Middle East, to open up new capital sources and enable international investors to bolster their portfolio management through Hong Kong’s capital markets. Following the listing of Asia’s first ETF (exchange traded fund) tracking the Saudi Arabia market in Hong Kong in November 2023, we are glad to see the listing of two ETFs in the Middle East that track Hong Kong stock indices soon.
     
         The Chief Executive’s Policy Address also announced that we will build an international gold trading market and commodity trading ecosystem, leveraging on our advantages as one of the world’s largest import and export markets for gold by volume, and foster the development of the related industry chain, ranging from investment transactions, financial trading, derivatives, insurance, storage, to trade and logistic services. We will set up a working group comprising experts and market players to work out the details.
     
         One cannot actually leave the reform agenda without touching on the changes brought about by technology. Last year, we took the lead in introducing a virtual asset (VA) service provider regulatory regime that allow the operation of licensed VA exchanges. We will introduce a dedicated piece of legislation on the regulation of fiat-referenced stablecoins before year end. Then we will have another look at the VA over-the-counter landscape followed by public consultation, while hammering out a licensing regime for VA custodian service providers.
     
    Renewed responsibility
     
         This leads naturally to my third “R”, “Responsibility”. Introducing regulatory regimes for a digitally enabled financial medium to fulfil the twin objectives of fostering market development while protecting investor interests and managing risks is a responsible policy move.
     
         We have, however, a heavier responsibility towards the Earth, our planet. Hong Kong takes our carbon emission net zero commitment seriously and we leverage our financial services platform to contribute to the green and sustainability global efforts. We are in a very good position to channel international capital to sustainable causes. This is best exemplified by over 230 ESG funds authorised by the SFC as of June this year, almost quadrupling the number of funds three years ago. Together, these funds manage close to US$170 billion of assets.
     
         For the third year in a row, Hong Kong topped the Asian market in terms of the volume of green and sustainable bonds being arranged. In 2023 alone, the total green and sustainable debt issued in Hong Kong exceeded US$50 billion.
     
         We will continue to incubate green and sustainable investment by fostering a conducive environment with transparent information. As the Policy Address makes clear, we will launch a roadmap on the full adoption of the ISSB (International Sustainability Standards Board) Standards (International Financial Reporting Standards – Sustainability Disclosure Standards) within this year, leading Hong Kong to be among the first jurisdictions to align its local requirements with ISSB Standards. On this, we have been making good progress, including the introduction of new climate-related disclosures requirements for listed companies by HKEX for implementation under a phased approach from 2025; as well as the development of the Exposure Drafts for Hong Kong’s sustainability reporting standards (Hong Kong Standards) in full alignment with ISSB Standards by the Hong Kong Institute of Certified Public Accountants (HKICPA). A public consultation on the Exposure Drafts is now underway. The roadmap will provide a transparent and well-defined pathway on sustainability reporting for listed companies and different sectors in the financial services industry, and support and assist businesses in making preparations for the implementation of the Hong Kong Standards.
     
         A first edition of the Hong Kong Taxonomy for Sustainable Finance is already in the toolbox since May this year. It is now undergoing revision, and is in the next phase of development where the scope of sectors and economic activities to be covered will be expanded to include transition activities, etc.
     
         As another piece of market infrastructure to connect capital with climate-related products and opportunities in Hong Kong, the Mainland, Asia and beyond, Core Climate, launched by HKEX, serves to facilitate effective and transparent trading of carbon credits and instruments to support the global transition to net zero. It offers quality carbon credits from internationally certified projects, covering forestry, solar, wind and biomass initiatives. It is currently the only carbon marketplace that offers Hong Kong dollar and RMB settlement for the trading of international voluntary carbon credits.
     
    Closing
     
         The IMF (International Monetary Fund) has just reconfirmed its forecast of world economic growth for 2024 to be 3.2 per cent. The same growth rate is forecast for 2025, slightly revised downward from its earlier forecast of 3.3 per cent but with a loud warning of instability and uncertainty in the horizon. As policy makers, we all have the responsibility to provide an enabling environment for businesses and individuals to thrive.
     
         The Asia-Pacific region can provide a source of growth amidst the evolving global landscape despite the uncertainties. Hong Kong, with our unique combination of the China advantage and global strengths, will continue to sharpen our financial platform and capital markets through strategic reform and responsible development. On this note, I would like to exercise my privilege of being on the podium to add a fourth “R” and wish you a most rewarding day of discussions and networking at the Forum. Thank you.
           

    MIL OSI Asia Pacific News –

  • MIL-OSI United Kingdom: SMS Text Message Scams across the Island 24 October 2024 fraudulent text messages

    Source: Aisle of Wight

    The Isle of Wight Council is urging residents to be vigilant of fraudulent SMS messages being circulated.

    There are various messages being sent circulated claiming to be from official bodies, including.

    • Stating you are eligible for £900 from Household Support Fund
    • Cost of Living Payments from the Department of Work and Pensions
    • Winter heating subsidies for the UK Home Office
    • Parking fines

    These messages ask you to click on a link. This is a SCAM. Please DO NOT click any links or provide any personal information and bank details. Remember to be cautious of unsolicited messages offering money

    When in doubt, contact us directly through Trading Standards trading.standards@iow.gov.uk   You can also forward any suspicious texts to 7726. This is a free for UK mobile customers. Your mobile provider will investigate the number and may block it.

    Stay vigilant and report any suspicious messages and please pass on this warning to friends and family. Together we can help protect our community.

    MIL OSI United Kingdom –

  • MIL-OSI Russia: Polytechnic University and UEC: Prospects for Additive Manufacturing in Engine Manufacturing

    Translation. Region: Russian Federation –

    Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

    The Polytechnic University was visited on a working visit by Vadim Badekha, General Director of the United Engine Corporation (UEC, part of the Rostec State Corporation), Mikhail Bakradze, Deputy General Director, and Alexey Mazalov, General Director of the Center for Additive Technologies (CAT, part of Rostec).

    At a meeting with the rector of SPbPU, chairman of the St. Petersburg branch of the Russian Academy of Sciences Andrey Rudskoy and the director of the Institute of Mechanical Engineering, Materials and Transport Anatoly Popovich, representatives of UEC and CAT discussed issues of strategic partnership in the educational and scientific spheres and discussed in detail the signing of a cooperation agreement.

    The guests stated that they were interested in expanding cooperation with the Polytechnic University, primarily in the field of additive technologies. Mikhail Bakradze said that the corporation’s specialists had already become familiar with the work of the IMMiT laboratories and had chosen promising areas for themselves.

    Vadim Badekha suggested that the Polytechnic University become a participant in a comprehensive program for the development of aircraft engine building and reported that the Ministry of Industry and Trade has created a separate area – additive manufacturing in engine building.

    The agreement is necessary, it will be a mandate for us to work directly with all your structures. Of course, for us the issue of creating technological cycles for design, development, bringing to industrial samples and transferring documentation to you is very important. But there is a serious nuance – certification, – noted Andrey Rudskoy.

    During the discussion of this and other problems, the meeting participants came to the conclusion that it would be advisable to create a center for certification of additive technologies in aviation and a joint council for the development of additive technologies in engine building.

    Another area of cooperation in which UEC is interested is the development of repair technologies, including the creation of mobile units. And here the Polytechnic already has something to offer. Just at the St. Petersburg International Gas Forum, specialists from the research laboratory “Laser and Additive Technologies” (NIL “LiAT”) of IMMiT demonstrated at the Polytechnic stand Mobile laser cladding complex “Nomad”, designed for the restoration of large-sized products on the customer’s premises.

    The participants in the negotiations discussed the prospect of creating a joint structure with UEC on the basis of the Polytechnic University, similar to a scientific and educational center, for the targeted training of students, the organization of internships and practical training, and the advanced training of the corporation’s employees.

    For us, UEC is a very important strategic partner, we have been working together for a long time, and I would like us to reach such a high level of communication: science, education, advanced training and technology. And we, of course, will enter into those structures that are necessary to ensure our cooperation, – Andrey Rudskoy summed up.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Submissions: Equinor to commence fourth tranche of the share buy-back programme for 2024

    Source: Equinor

    24 OCTOBER 2024 – Equinor will on 25 October 2024 commence the fourth and final tranche of up to USD 1.6 billion of the share buy-back programme for 2024, as announced in relation with the third quarter results 24 October 2024.

    In this fourth tranche, shares for up to USD 528 million will be purchased in the market, implying a total tranche of up to USD 1.6 billion including shares to be redeemed from the Norwegian State. The tranche will end no later than 31 January 2025.

    Equinor announced at the Capital Market Update in February 2024 a two-year share buy-back programme of total USD 10-12 billion for 2024-2025, with up to USD 6 billion for 2024, including shares to be redeemed from the Norwegian State. The share buy-back programme will be subject to market outlook and balance sheet strength and be structured into tranches where Equinor will buy back shares for a certain value in USD over a defined period. For the fourth tranche for 2024, Equinor will be entering into a non-discretionary agreement with a third party who will execute repurchases of shares and make its trading decisions independently of the company.

    Commencement of new share buy-back tranches after the fourth tranche for 2024 will be decided by the board of directors on a quarterly basis in line with the company’s dividend policy and will be subject to board authorisation for share buy-back from the company’s annual general meeting and agreement with the Norwegian State regarding share buy-back (as further described below).

    The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares purchased as part of the fourth tranche for 2024 will thus be cancelled through a capital reduction at the annual general meeting of the company in May 2025.

    Further information about the share buy-back programme and the fourth tranche:

    The fourth tranche of the share buy-back programme for 2024 is based on an authorisation granted to the board of directors at the annual general meeting of the company held on 14 May 2024. According to the authorisation, the maximum number of shares to be purchased in the market is 92 million, of which 52,868,185 remain available per commencement of the fourth tranche for 2024 (buy-backs made under previous tranches in the authorisation period taken into account). The minimum price that can be paid per share is NOK 50, and the maximum price is NOK 1,000. The authorisation is valid until the earliest of 30 June 2025 and the annual general meeting of the company in 2025.

    An agreement between Equinor and the Norwegian State regulates the State’s participation in the share buy-back: at the annual general meeting of the company in May 2025, the State will, as per proposal by the board of directors, vote for the cancellation of shares purchased in the market pursuant to the board authorisation, and the redemption and cancellation of a proportionate number of its shares in order to maintain its ownership share in the company at 67%. The price to be paid to the State for redemption of the State’s shares shall be the volume-weighted average of the price paid by Equinor for shares purchased in the market plus an interest rate compensation, adjusted for any dividends paid.

    In the fourth tranche for 2024, shares will be purchased on the Oslo Stock Exchange and possibly other trading venues within the EEA. Transactions will be conducted in accordance with applicable safe harbour conditions, and as further set out in the Norwegian Securities Trading Act of 2007, EU Commission Regulation (EC) No 2016/1052 and the Oslo Stock Exchange’s Guidelines for buy-back programmes and price stabilisation from February 2021.

    The board of directors will propose to the annual general meeting of the company to be held in May 2025, to cancel shares purchased in the market in this fourth tranche for 2024 and to redeem and cancel a proportionate number of the State’s shares per the agreement with the State. Based on renewal of this agreement, shares purchased under subsequent tranches of the two-year share buy-back programme for 2024-2025 and a proportionate number of the State’s shares will follow a similar process at the annual general meetings of the company in 2025 and 2026, respectively.

    This is information that Equinor is obliged to make public pursuant to the EU Market Abuse Regulation and that is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

    MIL OSI – Submitted News –

  • MIL-OSI USA: Former Federal Employee Pleads Guilty to Mishandling Classified Materials

    Source: US State of North Dakota

    Margaret Anne Ashby, 26, of Henderson, Nevada, pleaded guilty today for mishandling sensitive documents as a former employee of a Department of Defense component agency.

    As described in the plea agreement, starting in March 2020, Ashby was a civilian employee of a Department of Defense component agency located in the Southern District of Georgia, and during this time held a top secret security clearance as required for her employment.

    From February 2022 to May 2022, Ashby, without authority, knowingly removed documents and materials containing classified information “concerning the national defense or foreign relations of the United States . . . with the intent to retain them at unauthorized locations, including her residence in the Southern District of Georgia and in digital files saved via a personal computing device located in the Southern District of Georgia.”

    A sentencing date has not yet been set. Ashby faces a maximum penalty of five years in prison and three years of supervised release for mishandling sensitive documents, along with substantial financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jill E. Steinberg for the Southern District of Georgia, and Robert Wells of the FBI National Security Branch announced the case.

    The FBI investigated the case.

    Assistant U.S. Attorneys L. Alexander Hamner and Darron J. Hubbard for the Southern District of Georgia and Trial Attorney David J. Ryan of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI Security: Principal Associate Deputy Attorney General Marshall Miller Delivers Remarks at the New York City Bar Association Compliance Institute

    Source: United States Attorneys General 7

    Remarks as Prepared for Delivery

    Thank you for that generous introduction. It’s great to be home in New York.

    The leaves are changing. The Yankees are in the World Series. And we’re here to talk about corporate criminal enforcement.

    It doesn’t get any better than this.

    Today, I’m honored to be here to take stock of the Department’s programmatic overhaul of corporate criminal enforcement in recent years, to discuss how that overhaul is designed to empower compliance programs and professionals, and to take a look around the corner to what’s ahead.

    There’s an old adage, laced with irony and sometimes attributed to an ancient Chinese curse: “May you live in interesting times.” Over the past few years, we at the Justice Department — indeed, all of us in America — have been on the receiving end of that adage. We all, truly, are living in interesting times.

    The volatility and rate of change in the geopolitical landscape and the world economy can be head-spinning: here a regional armed conflict, there a natural disaster, and everywhere transformative leaps in technology.

    Perhaps the opportunities seem greater than ever — but so, certainly, do the risks.

    And one key area where risks have spread and morphed is in the field of corporate crime.

    Corporate crime, of course, is not new. But it’s constantly evolving. So, we must skate to where the puck is going, not to where it’s been.

    To meet the moment, over the past few years, the Department has engaged in an overhaul of our corporate criminal enforcement program by modernizing and adapting.

    We’ve done that by emphasizing clarity, consistency, and transparency in our policies.

    We’ve done that by increasing the consequences for bad actors — whether individual or corporate — and by providing new incentives for good corporate citizenship and investments in compliance.

    And we’ve done that by recalibrating and surging resources to address today’s corporate crime threats — and tomorrow’s.

    In doing so, we’ve created a clear roadmap of the Department’s expectations for every CEO, General Counsel, Board Member, and Chief Compliance Officer who’s navigating a fast-changing world and must mitigate risk and stay on the right side of the law.

    *                                  *                                  *

    Let me start with the balance of consequences and incentives — where we’ve increased punishment for bad actors and enhanced incentives for ethical corporate behavior.

    To be clear, when it comes to corporate criminal enforcement, Job #1 is individual accountability.

    Corporate crime hurts real people — and corporate crimes are committed by real people.

    So the Department’s top priority in corporate criminal enforcement is holding individuals accountable.

    Accountability not only promotes fairness, it also drives deterrence.

    We’ve empowered our prosecutors to focus on the worst offenders committing the biggest crimes, no matter how high they rank on the corporate org chart — no matter how challenging and time-consuming the case.

    This approach is resource intensive. Prosecuting the most important cases against the most sophisticated wrongdoers requires breaking down complex criminal schemes, understanding cutting-edge markets and technology, and analyzing terabytes of data.

    So we’ve adapted enforcement policies to promote swift individual prosecutions.

    We’ve given good actors more avenues to help us go after the bad guys — through innovative whistleblower programs and consistent, transparent, and predictable voluntary self-disclosure policies.

    And we’ve made clearer than ever before what we expect from companies cooperating with government investigations to accelerate investigations of wrongdoers.

    This updated approach has generated real returns, with timely convictions of: the CEOs of the world’s two largest cryptocurrency platforms — FTX and Binance; the CEO and the COO of Theranos;

    Prosecuting the most culpable individuals is not only the right thing to do, it has the greatest deterrent impact by changing behavior and preventing misconduct.

    To increase accountability and deterrence, we’ve also clarified the rules of the road for corporate enforcement.

    In prior years, a disjointed, patchwork Department approach to key tools like whistleblowing, voluntary self-disclosure, and monitor selection limited their effectiveness.

    When corporate misconduct was detected, the benefits of whistleblowing or self-reporting to the Justice Department were often opaque and unpredictable.

    The Department’s response seemed to depend on which office or even which prosecutor was assigned to the case.

    Without written, public policies across most of the Department, self-reporting seemed like a roll of the dice without even a sense for the odds.

    It was time for change.

    Over the past few years, we’ve moved methodically to establish a very different paradigm –— one with consistent, transparent, and predictable rules of the road.

    For the first time, every Justice Department component has a published Voluntary Self-Disclosure policy that sets forth exactly what a company needs to do to self-report misconduct — and what a company can expect if they do so.

    For the first time, incentive compensation systems are assessed and upgraded as part of every Criminal Division resolution, because compensation systems can either promote compliance or reward risky — sometimes criminal — behavior.

    And companies that claw back compensation from executives involved in wrongdoing can reduce penalties by the amount of those clawbacks, providing new incentives to make wrongdoers — not innocent shareholders — pay the price.

    For the first time, all independent compliance monitors across the Department must be chosen under consistent, published selection processes and based on the application of public and transparent factors.

    And for the first time, the Justice Department instituted a Department-led whistleblower program with clear incentives for dropping a dime on corporate crime.

    Today, individuals and companies know when, where, and how to “do the right thing,” to borrow a phrase from my fellow Brooklynite Spike Lee.

    We’ve also broadened the gap between the benefits an ethical company can access and the penalties a compliance-flouting company faces.

    Investing in compliance and practicing good corporate citizenship should be the clear product of basic arithmetic — not some complex calculus problem with too many unknown variables to solve.

    We aim to empower General Counsels and Chief Compliance Officers to make a simple and powerful business case to boards and C-suites: the case for investing in compliance programs, for calibrating compensation plans to promote compliance and deter wrongdoing, and for swiftly reporting detected misconduct to Justice Department.

    As Deputy Attorney General Lisa Monaco put it in connection with the ground-breaking prosecution of TD Bank earlier this month: “If the business case for compliance wasn’t clear before — it should be now.”

    *                                  *                                  *

    Let me take a few minutes to delve deeper into the Department’s new whistleblowing and voluntary self-disclosure paradigm.

    First, whistleblowing. We know it works. Whistleblower reports to the government lead to prosecutions and civil enforcement actions. Internal reports help companies address misconduct before it gets out of hand.

    But gaps in whistleblower reporting opportunities left whole areas of corporate criminal misconduct unaddressed, with potential whistleblowers lacking a clear reporting path and a clear reason to blow the whistle.

    So this year, the Justice Department launched a two-part whistleblower program — with different rules and incentives for whistleblowers not involved in the criminal activity they’re reporting and for those who were.

    For whistleblowers not involved in the reported misconduct, Deputy Attorney General Monaco launched the first-ever Department whistleblower awards program — aimed at building on successful programs at the Securities and Exchange Commission and Commodity Futures Trading Commission.

    The awards program is based on a simple premise: if an individual helps the Department discover corporate misconduct — otherwise unknown to us — then that person would qualify to receive a percentage of the resulting forfeiture.

    This program not only incentivizes individuals to step forward, it puts pressure on companies to do the same – because a company can still qualify for voluntary self-disclosure credit if it reports the conduct within 120 days of the whistleblower report to the Department.

    Now, by its very terms, this awards program doesn’t apply to individuals who were meaningfully involved in the criminal conduct itself. For that, we’ve launched whistleblower non-prosecution pilots in the Criminal Division and many of our most active U.S. Attorneys’ Offices.

    Those offices are offering non-prosecution agreements to certain individuals involved in misconduct who report previously undiscovered wrongdoing.

    In the same way a company could receive a declination, individuals with knowledge of misconduct can do the same — by stepping up, owning up, and helping us prosecute the most serious wrongdoers.

    All this fits seamlessly with the newly clear, transparent, and cross-Department approach to voluntary self-disclosures by companies, instituted at Deputy Attorney General Monaco’s direction.

    Voluntary self-disclosures drive successful criminal prosecutions of culpable individuals. They speed money back to victims and disgorge ill-gotten gains. They bring misconduct to a halt and tighten compliance programs with added government oversight.

    So, where a company voluntarily self-discloses misconduct previously unknown to the Department — absent aggravating circumstances and after remediation, disgorgement, and victim compensation — it can avoid a guilty plea or indictment.

    And such a voluntary self-disclosure to the Criminal Division can also qualify a company for the presumption of a declination of prosecution.

    Early signs indicate these newly consistent and transparent programs are working.

    Corporate voluntary self-disclosures to the Criminal Division are increasing every year, with more than twice as many last year as compared to 2021.

    In the first few months of the Justice Department’s whistleblower awards program, we’ve already received more than 200 tips.

    And U.S. Attorneys’ Offices report that individual voluntary self-disclosures have resulted in promising ongoing investigations.

    Notably, the programs complement each other, setting up a virtuous cycle.

    As the Deputy Attorney General has said, “when everybody wants to be first in the door, no one wants to be second” — regardless of whether you’re an innocent whistleblower, a potential defendant looking to minimize criminal exposure, or an audit committee chair at a company where the misconduct took place.

    Our approach also involves increasing punishment for companies that are repeat bad actors or who flout compliance.

    Calibrating a successful program of incentives and consequences requires increasing the penalties for corporate entities that aren’t getting the message.

    And we’ve moved out on that as well.

    Egregious corporate conduct demands a stiff punitive response.

    So multinational companies like LaFarge, TD Bank, and Binance have pleaded guilty to egregious crimes involving material support for terrorism, money laundering conspiracy, and sanctions violations, respectively — with combined penalties of almost $7 billion.

    Penalties also are levied to deter future misconduct. So, when a company breaks the law a second time or violates the terms of a prior resolution, we’ve made sure they pay a far steeper price.

    Powerful companies like Boeing and Ericsson have experienced that approach in action — pleading guilty to charges that stemmed from recidivist conduct or violations of deferred prosecution agreements.

    Corporate criminal charges and guilty pleas are no longer “specials” for certain customers —they’re now on the main, everyday menu.

    Today’s overhauled corporate enforcement program at the Justice Department means clearer and more transparent policies; predictable benefits for whistleblowers and incentives for companies that voluntarily self-disclose; and a far bigger gulf between the criminal outcomes for good and bad actors.

    All of it adds up to a clear business case for investing early and often in compliance.

    *                                  *                                  *

    I also want to highlight our surge of resources to address the dramatic expansion of corporate crime risks related to national security and emerging technology.

    In returning to government some two and a half years ago, I was struck by how often our corporate criminal investigations now implicate the country’s national security interests.

    The crimes vary — from sanctions violations to money laundering to material support for terrorism.

    The corporate defendants range across industry – from construction and shipping to agriculture and telecommunications.

    And the national security risks run the gamut – from money laundering for Russian interests to trafficking in Iranian crude oil to sanctions evasion to support the North Korean nuclear program.

    To meet the moment, the Department has surged resources to address the challenge.

    We’ve surged prosecutors into the Criminal Division’s Bank Integrity Unit, which prosecutes violations of the Bank Secrecy Act — including the recent, groundbreaking conviction of TD Bank.

    We’ve added more than 25 white collar prosecutors and a Chief Counsel for Corporate Criminal Enforcement to our National Security Division to inject energy and expertise in corporate enforcement.

    We’ve launched extraordinarily successful enforcement initiatives, involving Main Justice components, U.S. Attorneys’ Offices, and partner law enforcement agencies, to address particularly dangerous national security threats: initiatives like Task Force KleptoCapture, which has brought criminal charges against 100 individuals and entities who violated Russia-related sanctions or export controls — and seized, restrained, or obtained forfeiture orders against more than $650 million in assets. And initiatives like the Disruptive Technology Strike Force, which is laser focused on keeping the most sensitive technologies out of the world’s most dangerous hands, charging two dozen complex and high-impact cases since its launch last year.

    Every company’s legal and compliance functions should sit up and take note: national security risks are not only here — they’re accelerating.

    And they’re being supercharged by emerging technologies like artificial intelligence.

    *                                  *                                  *

    Now you might ask: what should compliance professionals be doing today to prepare for tomorrow?

    As you may know, we recently updated the Criminal Division’s guidance on evaluating corporate compliance programs — known as the ECCP — in part to ensure that companies are focused on mitigating risks associated with the use and misuse of AI and other emerging technologies.

    Now, the ECCP doesn’t tell companies how to design and implement their compliance programs. Instead, the guidance poses questions that companies should be asking themselves throughout the compliance program life cycle — from design to execution.

    The Justice Department’s overhauled corporate criminal enforcement program places a particular premium on certain questions that executives and board members need to be asking:

    • Have we empowered our compliance leaders and invested sufficiently in our compliance program, given our risk profile and today’s geopolitical landscape?
    • Do we have effective internal detection and reporting systems and robust internal investigative capabilities — so we can avail ourselves of voluntary self-disclosure opportunities?
    • Have we designed compensation systems that promote compliance and enable clawbacks or escrowing of incentive comp?
    • Have we assessed risks associated with national security and emerging technologies and taken appropriate steps to mitigate them?
    • If a company finds itself on the wrong side of a Department investigation tomorrow, the company’s posture may well depend on how its leadership answers those questions today.

    I want to close by speaking directly to the compliance leaders here today.

    Thank you for the work you do every day to promote compliance in companies across America and around the globe.

    It’s not always easy to be the voice of compliance in the room.

    But when you do your jobs effectively, you not only serve your clients well, you protect our nation.

    At the Justice Department, our overhaul of corporate enforcement should empower you — along with other compliance-promoting corporate leaders — with stronger tools and greater sway to advocate for investment in compliance; to advance ethical behavior; to detect, deter, and report corporate misconduct; to defend against emerging national security and AI-related threats; and ultimately to promote good corporate citizenship.

    We look forward to continuing our work with all of you on this important effort.

    Thank you, once again, for being here today.

    MIL Security OSI –

  • MIL-OSI: TRAINERS’ HOUSE GROUP INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2024

    Source: GlobeNewswire (MIL-OSI)

    TRAINERS’ HOUSE GROUP, STOCK EXCHANGE RELEASE, 24 OCTOBER 2024 at 8:30
              
    January-September 2024 in brief

    • net sales EUR 5.9 million (EUR 6.5 million), change of -9.7 % compared to the corresponding period of the previous year
    • operating result EUR 0.1 million (EUR 0.1 million), 1.1 % of net sales (1.0 %)
    • cash flow from operations EUR 0.1 million (EUR 0.1 million)
    • earnings per share EUR 0.03 (EUR 0.04)

    July-September 2024 in brief

    • net sales EUR 1.6 million (EUR 1.6 million), change of -1.2 % compared to the corresponding period of the previous year
    • operating result EUR -0.1 million (EUR -0.1 million), -9.4 % of net sales (-6.7 %)
    • cash flow from operations EUR -0.3 million (EUR -0.2 million)
    • earnings per share EUR -0.07 (EUR -0.05)

    Key figures at the end of third quarter of 2024

    • cash and cash equivalents EUR 1.1 million (EUR 1.5 million)
    • interest-bearing liabilities of EUR 0.7 million (EUR 0.3 million) and interest-bearing net debt of EUR -0.4 million (EUR -1.3 million).
    • equity ratio 65.2 % (65.3 %)

    OUTLOOK FOR 2024

    The company estimates the operating profit for 2024 to be negative.

    CEO ARTO HEIMONEN

    Despite the challenging market conditions, the company’s year-to-date result is slightly profitable at the end of the third quarter.

    Due to the holiday season, the third quarter of Trainers’ House is actually two months long from the point of view of revenue accumulation.

    Customer activity and customer satisfaction remained at a high level. Acquiring new assignments succeeded moderately. The productivity of encounter marketing business increased.

    Healthy cash flow and profitability are the company’s most important business goals in 2024 as well.

    The purpose of Trainers’ House is to help people forward. This is possible by touching people, electrifying management and producing verifiable results.

    Thanks to customers, employees, and partners.

    More information:
    Arto Heimonen, CEO, +358 404 123 456
    Saku Keskitalo, CFO, +358 404 111 111

    OPERATIONAL REVIEW

    During the review period, the company focused on serving its customers.

    FINANCIAL PERFORMANCE

    Net sales for the reporting period were EUR 5.9 million (EUR 6.5 million). Operating result was EUR 0.1 million, 1.1 % of net sales (EUR 0.1 million, 1.0 %). The result for the period was EUR 0.1 million, 1.1 % of net sales (EUR 0.1 million, 1.2 %).

    The breakdown of the Group’s figures (unit thousand euros) is presented in the following table:

    Group’s main figures (kEUR) 1-9/2024 1-9/2023
    Net sales 5 907 6 541
    Expenses:    
    Expenses arising from employee benefits -3 947 -4 339
    Other expenses -1 635 -1 729
    EBITDA 325 473
    Depreciation and impairment losses -259 -405
    EBIT 66 68
    EBIT, % of net sales 1.1 1.0
    Financial income and expenses -15 8
    Result before taxes 51 76
    Income taxes 14 4
    Result of the period 65 80
    Result, % of net sales 1.1 1.2

    LONG-TERM OBJECTIVES

    The company’s long-term goal is profitable growth.

    FINANCING, INVESTMENTS AND SOLVENCY

    Cash flow and key financing figures (unit million euros) 1-9/2024 1-9/2023
    Cash flow from operations before financial items 0.2 0.1
    Cash flow from operations 0.1 0.1
    Cash flow from investments 0.0 0.1
    Cash flow from financing -0.2 -0.9
    Total cash flow -0.1 -0.7
         
      9/2024 9/2023
    Cash 1.1 1.5
    Interest-bearing debt 0.7 0.3
    Equity ratio % 65.2 65.3

    MAJOR RISKS AND UNCERTAINTIES

    Trainers’ House’s business is sensitive to economic fluctuations.

    The general economic situation internationally and in Finland contains significant risks. The war in Europe and Middle East, the tense world political situation and the possible expansion of the crisis can cause rapid changes in the operating environment.

    Possible world trade restrictions and changes in the world political situation affect the exports of Finnish companies, which is reflected in the demand of the domestic market. The demand in domestic market will also diminish due to public cost-cuttings and tax increases. The change in domestic market demand directly affects Trainers’ House’s business.

    Compared to the level of the last decade, the high interest rate has a negative effect on economic activity. Inflation can also accelerate due to, for example, escalation of world political crises.

    The constant competition for the best employees affects recruitment and the commitment of key personnel. From the company’s point of view, the labor market situation has eased over the past year.

    The above-mentioned risks, when realized alone or together, have a significant impact on the company’s operations.

    The company divides the risk factors affecting business, earnings, and market capitalization into five main categories: market and business risks, personnel-related risks, technology and information security risks, financial risks, and legal risks.

    Trainers’ House has sought to hedge against the adverse effects of other risks with comprehensive insurance policies. These include statutory insurance, liability and property insurance and legal expenses insurance. Insurance coverage, insurance values and deductibles are reviewed annually together with the insurance company.

    The Management Team reports to the Board on a monthly basis on key business-related risks and, where necessary, risk management measures.

    The Group has the reporting systems required for effective business monitoring. Internal control is linked to the company’s vision, strategic goals and the business goals set on the basis of them.

    The realization of business objectives and the Group’s financial development are monitored on a monthly basis through the Group’s corporate governance system. As an essential part of the control system, actual data and up-to-date forecasts are reviewed monthly by the Group Management Team. The control system includes, among other things, sales reporting, an income statement, a rolling revenue and profit forecast, and key figures that are important to operations.

    Trainers’ House is an expert organization. The magnitude of market and business risks is difficult to determine. Typical risks in this area are related to, for example, general economic development, customer distribution, technology choices, the development of competition and the management of personnel costs.

    Risks are managed through the planning and regular monitoring of sales, human resources, and operating expenses, which enables rapid action when circumstances change. The risks of trade receivables have been taken into account by the recognition of expenses based on the age of the receivables and individual risk analyzes.

    The goal of Trainers’ House’s financial risk management is to secure the availability of equity and debt financing on competitive terms and to reduce the impact of adverse market movements on the company’s operations.

    Financial risks are divided into four categories, which are liquidity, interest rate risks, currency risks and credit risks. Each risk is monitored separately. Liquidity and interest rate risks are reduced with sufficient cash resources and efficient collection of receivables. Currency risks are low as Trainers’ House operates primarily in the euro market. In financial risk management, the focus is on liquidity.

    The success of Trainers’ House as an expert organization depends on its ability to attract and retain skilled staff. In addition to a competitive salary, personnel risks are managed through incentive schemes and investments in personnel training, career opportunities and general well-being.

    Technology is a key part of Trainers’ House’s business. Technology risks include, but are not limited to, supplier risk, risks related to internal systems, challenges posed by technological change, and security risks. Risks are protected against long-term cooperation with technology suppliers, appropriate security systems, staff training and regular security audits.

    Trainers’ House’s legal risks are mainly focused on the contractual relationship between the company and customers or service providers. At their most typical, they relate to delivery responsibility and the management of intellectual property rights. In order to manage the risks related to contracts and intellectual property rights, the company has internal guidelines for contractual procedures. In the company’s view, the contractual risks are not unusual.

    At the end of the review period, goodwill and other intangible assets recognized in the balance sheet have been tested in the normal way. The test did not reveal any need for impairment.

    The consolidated balance sheet of Trainers’ House has goodwill of EUR 2.1 million. The balance sheet value of other intangible assets is EUR 1.0 million. If the Group’s profitability does not develop as forecasted or other external factors independent of the Group’s operations, such as interest rates, change significantly, it is possible that goodwill and other intangible assets will have to be written off. Recognition of an impairment loss would have no effect on the Group’s cash flow.

    Due to the project nature of the operations, the order backlog is short, and predictability is therefore challenging.

    The description of potential risks is not comprehensive. Trainers’ House conducts continuous risk assessment in connection with its operations and strives to hedge against identified risks.

    Investors have also been informed about the risks in the company’s annual review and on the website at www.trainershouse.fi.

    PERSONNEL

    At the end of the review period, the Group had 107 (111) employees. As before, the company reports the number of employees converted to full-time employees.

    DECISIONS REACHED AT THE ANNUAL GENERAL MEETING

    The annual general meeting of Trainers’ House Plc was held on 27 March 2024 in Helsinki.

    The annual general meeting confirmed the financial statements and discharged CEO and the members of the Board of Directors from liability for the fiscal year 1 January – 31 December 2023. The annual general meeting also decided to adopt the remuneration policy of the governing bodies.

    The annual general meeting decided, in accordance with the board’s proposal, that the company does not distribute a dividend from 2023.

    Aarne Aktan, Jari Sarasvuo, Jarmo Hyökyvaara, Elma Palsila and Emilia Tauriainen were re-elected as members of the Board of Directors. In the board meeting held after the annual general meeting, the Board of Directors elected Jari Sarasvuo as the chairperson of the board.

    The annual general meeting decided that the board member’s remuneration shall be EUR 1,500 per month and the chairperson’s remuneration will be EUR 3,500 per month.

    Grant Thornton Oy was elected as the company’s auditor. The remuneration to the auditor is paid according to the auditor’s reasonable invoice.

    SHARES AND SHARE CAPITAL

    The company’s share is listed on Nasdaq Helsinki Ltd under the name Trainers’ House Plc (TRH1V).

    At the end of the reporting period, Trainers’ House Plc had 2,147,826 shares and a registered share capital of EUR 880,743.59. The company does not hold any of its own shares. There have been no changes in the share capital during the period.

    Share performance and trading

      1-9/2024 1-9/2023
    Traded shares, pcs 203 608 213 827
    Average number of all company shares, % 9.5 10.0
    Traded shares, EUR 576 890 1 013 869
    Highest share quotation 4.88 6.12
    Lowest share quotation 2.07 3.38
    Closing price 2.27 3.73
    Weighted average price 2.83 4.74
    Market capitalization 4.9 mil. 8.0 mil.

    SUMMARY OF FINANCIAL STATEMENTS AND NOTES

    The report has been prepared in accordance with IAS 34 standard. The report has been prepared in accordance with IFRS standards and interpretations that have been approved for application in the EU and are in force on 1 January 2024.

    In this interim report Trainers’ House has followed the same accounting policies and calculation methods as in the 2023 annual financial statements.

    The figures given in the interim report are unaudited.

    INCOME STATEMENT IFRS (kEUR) 1-9/2024 1-9/2023 1-12/2023
    NET SALES 5 907 6 541 8 437
    Expenses:      
    Materials and services -286 -308 -391
    Personnel-related expenses -3 947 -4 339 -5 691
    Depreciation and impairment losses -259 -405 -531
    Other operating expenses -1 348 -1 420 -1 925
    Total expenses -5 841 -6 473 -8 538
    Operating result 66 68 -101
    Financial income and expenses -15 8 6
    Result before taxes 51 76 -95
    Income taxes 14 4 4
    RESULT OF THE PERIOD 65 80 -91
    Result attributable to owners of the parent company 65 80 -91
    Earnings per share, EUR 0.03 0.04 -0.04
    Earnings per share attributable to owners of the parent company, EUR 0.03 0.04 -0.04
    BALANCE SHEET IFRS (kEUR) 9/2024 9/2023 12/2023
    ASSETS      
    Non-current assets      
    Tangible assets 704 430 961
    Goodwill 2 129 2 129 2 129
    Other intangible assets 1 013 1 025 1 013
    Long-term receivables      
    Other receivables, long-term 105 138 138
    Deferred tax receivables 218 204 202
    Total long-term receivables 324 342 341
    Total non-current assets 4 170 3 926 4 443
           
    Current assets      
    Account receivables and other receivables 1 002 942 783
    Cash and cash equivalents 1 120 1 533 1 175
    Total current assets 2 122 2 475 1 958
    TOTAL ASSETS 6 292 6 400 6 401
           
    SHAREHOLDERS’ EQUITY AND LIABILITIES 9/2024 9/2023 12/2023
    Equity attributable to the owners of the parent company      
    Share capital 881 881 881
    Distributable non-restricted equity fund 37 37 37
    Retained earnings 3 021 3 111 3 111
    Result of the period 65 80 -91
    Total shareholders’ equity 4 004 4 109 3 939
    Long-term liabilities      
    Deferred tax liabilities 203 205 203
    Long-term financial liabilities 420 58 631
    Total long-term liabilities 622 263 833
    Short-term liabilities      
    Short-term financial liabilities 280 216 197
    Accounts payable and other liabilities 1 386 1 812 1 432
    Total short-term liabilities 1 666 2 028 1 629
    Total liabilities 2 288 2 291 2 462
    TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 6 292 6 400 6 401
    CASH FLOW STATEMENT IFRS (kEUR) 1-9/2024 1-9/2023 1-12/2023
    CASH FLOW FROM OPERATIONS      
    Result of the period 65 80 -91
    Adjustments 263 435 570
    Changes in working capital -169 -398 -257
    Cash flow from operations before financial items and taxes 158 117 222
    Financial items and taxes paid -22 -13 -16
    CASH FLOW FROM OPERATIONS 137 104 206
    CASH FLOW FROM INVESTMENTS      
    Investments in tangible and intangible assets -3 -12 -12
    Repayment of loan receivables 17 42 42
    Interests received 5 21 21
    CASH FLOW FROM INVESTMENTS 18 51 51
    CASH FLOW FROM FINANCING      
    Repayment of lease liabilities -128 -272 -363
    Dividends paid -82 -597 -966
    CASH FLOW FROM FINANCING -210 -869 -1 329
    TOTAL CASH FLOW -55 -714 -1 072
    CHANGE IN CASH AND CASH EQUIVALENTS      
    Opening balance of cash and cash equivalents 1 175 2 247 2 247
    Closing balance of cash and cash equivalents 1 120 1 533 1 175
    CHANGE IN CASH AND CASH EQUIVALENTS -55 -714 -1 072

    CHANGE IN SHAREHOLDERS’ EQUITY (kEUR)
    Equity attributable to owners of the parent company

    CHANGE IN SHAREHOLDERS’ EQUITY (kEUR) Share capital Distributable non-restricted equity fund Retained earnings Total
    Equity 1 January 2023 881 37 4 121 5 039
    Other comprehensive income     80 80
    Dividends     -1 009 -1 009
    Equity 30 September 2023 881 37 3 191 4 109
             
    Equity 1 January 2024 881 37 3 021 3 939
    Other comprehensive income     65 65
    Dividends     0 0
    Equity 30 September 2024 881 37 3 086 4 004

    RELATED PARTY TRANSACTIONS

    During the period under review, Trainers’ House had transactions with Causa Prima Ltd, a company controlled by Jari Sarasvuo, the Chairperson of the Board of Directors, and Pro Vividus Ltd and Anorin Liekki Ltd, which are related to the company.

    The following transactions took place with related parties:

    RELATED PARTY TRANSACTIONS (kEUR) 1-9/2024 1-9/2023 1-12/2023
    Purchases during the period 272 131 168
    Liabilities at the end of the period 95 31 39
    PERSONNEL 1-9/2024 1-9/2023 1-12/2023
    Average number of personnel 108 115 113
    Personnel at the end of the period 107 111 96
    COMMITMENTS AND CONTINGENT LIABILITIES 9/2024 9/2023 12/2023
    Collaterals and contingent liabilities given for own commitments(kEUR) 120 120 120
    OTHER KEY FIGURES 9/2024 9/2023 12/2023
    Equity ratio (%) 65.2 65.3 63.5
    Shareholders’ equity/share (EUR) 1.86 1.91 1.83

    Calculation formulas for key figures

    Earnings per share        = Result of the period attributable to owners of the parent company
                                          Average number of shares adjusted for share issue in financial period

    Interest-bearing net debt = Interest-bearing liabilities – cash and cash equivalents

    Equity ratio (%)          = Equity x 100
                                        Balance sheet total – advances received

    Equity / share            = Equity                                              
                                        Number of shares adjusted for share issue at the
                                        end of financial period

    Items affecting the calculation of key figures 9/2024 9/2023 12/2023
    Advances received (kEUR) 154 107 198
    Interest-bearing liabilities (kEUR) 700 274 828
    Average number of shares adjusted for share issue in financial period (unit thousand shares) 2 148 2 148 2 148
    Number of shares adjusted for share issue at the end of the financial period (unit thousand shares) 2 148 2 148 2 148

    In Helsinki 24 October 2024

    TRAINERS’ HOUSE PLC

    BOARD OF DIRECTORS

    Information:
    Arto Heimonen, CEO, +358 404 123 456
    Saku Keskitalo, CFO, +358 404 111 111

    DISTRIBUTION
    Nasdaq Helsinki
    Main media
    www.trainershouse.fi – For investors

    Attachment

    The MIL Network –

  • MIL-OSI: BE Semiconductor Industries N.V. Announces Q3-24 Results

    Source: GlobeNewswire (MIL-OSI)

    Q3-24 Revenue of € 156.6 Million and Net Income of € 46.8 Million Up 27.0% and 33.7%, Respectively, vs. Q3-23
    Orders of € 151.8 Million Up 19.2% vs. Q3-23. Hybrid Bonding Adoption Continues

    YTD-24 Revenue of € 454.1 Million and Net Income of € 122.7 Million
    Orders of € 464.8 Million Up 21.7% vs. YTD-23

    DUIVEN, the Netherlands, Oct. 24, 2024 (GLOBE NEWSWIRE) — BE Semiconductor Industries N.V. (the “Company” or “Besi”) (Euronext Amsterdam: BESI; OTC markets: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the third quarter and nine months ended September 30, 2024.

    Key Highlights Q3-24

    • Revenue of € 156.6 million up 3.6% vs. Q2-24 and 27.0% vs. Q3-23 due to increased demand by computing end user markets for hybrid bonding, photonics and other AI applications partially offset by ongoing weakness in automotive and Chinese end user markets
    • Orders of € 151.8 million up 19.2% vs. Q3-23 due to increased hybrid bonding orders. Down 18.0% vs. Q2-24 due primarily to fluctuations in hybrid bonding order patterns by customers
    • Gross margin of 64.7% decreased by 0.3 points vs. Q2-24 but was up 0.1 point vs. Q3-23. Gross margin development in the comparable periods was adversely affected by net forex influences
    • Net income of € 46.8 million increased 11.7% vs. Q2-24 and 33.7% vs. Q3-23 primarily due to higher revenue levels and cost control efforts which limited baseline operating expense growth. Q3-24 net margin rose to 29.9% vs. 27.7% in Q2-24 and 28.4% reported in Q3-23
    • Net cash of € 110.7 million at quarter-end increased by € 36.3 million (48.8%) vs. Q2-24 and € 20.5 million (22.7%) vs. Q3-23

    Key Highlights YTD-24

    • Revenue of € 454.1 million increased 8.3% vs. YTD-23 principally due to higher demand by computing end user markets, particularly for hybrid bonding and photonics applications and by Taiwanese and Korean subcontractors partially offset by weakness in mobile and automotive markets
    • Orders of € 464.8 million increased 21.7% vs. YTD-23 due to increased demand for hybrid bonding and photonics applications partially offset by lower bookings for automotive and, to a lesser extent, mobile applications and ongoing weakness in Chinese end user markets
    • Gross margin of 65.6% increased by 0.8 points vs. YTD-23 due to more favorable AI advanced packaging product mix
    • Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins were offset by higher R&D spending and share-based compensation expense. Besi’s net margin decreased to 27.0% vs. 29.1% in YTD-23

    Q4-24 Outlook

    • Revenue expected to be flat plus or minus 10% vs. the € 156.6 million reported in Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24
    • Gross margin expected to range between 63-65% vs. the 64.7% realized in Q3-24
    • Operating expenses expected to be flat to up 5% vs. the € 46.2 million reported in Q3-24
    (€ millions, except EPS) Q3-
    2024    		 Q2-
    2024    		 Δ Q3-
    2023    		 Δ YTD-
    2024    		 YTD-
    2023    		 Δ
    Revenue 156.6 151.2 +3.6% 123.3 +27.0% 454.1 419.2 +8.3%
    Orders 151.8 185.2 -18.0% 127.3 +19.2% 464.8 381.9 +21.7%
    Gross Margin 64.7% 65.0% -0.3 64.6% +0.1 65.6% 64.8% +0.8
    Operating Income 55.1 49.3 +11.8% 42.7 +29.0% 145.0 147.3 -1.6%
    EBITDA 62.4 56.2 +11.0% 48.9 +27.6% 166.2 166.4 -0.1%
    Net Income* 46.8 41.9 +11.7% 35.0 +33.7% 122.7 122.2 +0.4%
    Net Margin* 29.9% 27.7% +2.2 28.4% +1.5 27.0% 29.1% -2.1
    EPS (basic) 0.59 0.53 +11.3% 0.45 +31.1% 1.56 1.57 -0.6%
    EPS (diluted) 0.59 0.53 +11.3% 0.45 +31.1% 1.55 1.54 +0.6%
    Net Cash and Deposits 110.7 74.4 +48.8% 90.2 +22.7% 110.7 90.2 +22.7%

    * Excluding share-based compensation expense, net income (net margin) would have been € 50.2 million (32.1%), € 48.5 million (32.1%) and € 36.6 million (29.7%) in Q3-24, Q2-24 and Q3-23, respectively and € 148.8 million (32.8%) in YTD-24 vs. € 137.6 million (32.8%) in YTD-23

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

    “Besi reported significant growth in revenue, orders and net income in Q3-24 versus the comparable quarter of last year as we continue to benefit from strength in our advanced packaging product portfolio for AI applications despite continued headwinds in mainstream and Chinese assembly equipment markets. For the quarter, revenue of € 156.6 million and orders of € 151.8 million grew by 27.0% and 19.2%, respectively, versus Q3-23 due primarily to strong growth by computing end user markets including hybrid bonding, photonics and other AI applications. Such growth was partially offset by weakness in automotive and Chinese end user markets continuing trends we have experienced this year. Net income of € 46.8 million grew by € 11.8 million, or 33.7%, reflecting a number of favorable trends including increased advanced packaging system revenue, increased gross margins related thereto and better than forecast operating expense levels despite continued growth in R&D spending for next generation hybrid bonding and TCB systems.

    For the first nine months of 2024, revenue of € 454.1 million and orders of € 464.8 million increased by 8.3% and 21.7%, respectively. Growth was due to significantly higher demand by computing end user markets, particularly for AI-related hybrid bonding and photonics applications and from Taiwanese and Korean subcontractors. Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins this year were offset by higher R&D spending in support of wafer level assembly development and share-based compensation expense.

    Our financial position improved as well in Q3-24 with net cash increasing to € 110.7 million at quarter-end, an improvement of € 36.3 million (+48.8%) versus Q2-24 and € 20.5 million (+22.7%) versus Q3-23 despite increased share buy-back activity. Total cash and deposits at quarter end grew to € 637.4 million including net proceeds from our Senior Note offering in July 2024 which positions us favorably for anticipated growth in the next market upcycle.

    During Q3-24, Besi continued to receive substantial orders for hybrid bonding systems from existing and new customers. At quarter-end, total revenue producing hybrid bonding orders since 2021 exceeded 100 systems highlighting the importance of this new technology for 3-D AI-related assembly applications. We anticipate additional orders in Q4-24 from a variety of customers as adoption continues to expand globally. We have also received increased interest for Besi’s TCB Next system from leading logic and memory customers which positions us favorably for anticipated growth in next generation 2.5D and HBM applications.

    As such, we have taken steps recently to expand our advanced packaging production capacity in anticipation of future growth. In 2025, we intend to approximately double the cleanroom capacity of our Malaysian production facilities and increase R&D and process development for our hybrid bonding and thermo compression bonding capabilities and customer support at our Singapore facility.

    Looking forward to Q4-24, we expect expanded adoption for hybrid bonding applications to be mitigated by ongoing weakness in mainstream assembly markets. For Q4-24, we forecast that revenue will be flat plus or minus 10% versus Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24. In addition, gross margins are anticipated to range between 63-65% based on our projected product mix. Aggregate operating expenses are forecast to be flat to up 5% versus Q3-24.”

    Share Repurchase Activity

    During the quarter, Besi repurchased approximately 230,000 of its ordinary shares at an average price of € 120.45 per share or a total of € 27.8 million. In August 2024, Besi completed its prior € 60 million share repurchase program and initiated a new € 100 million share repurchase program with an anticipated completion date of October 2025. Cumulatively, as of September 30, 2024, a total of € 7.0 million has been purchased under the new share repurchase program at an average price of € 110.55 per share. As of September 30, 2024, Besi held approximately 1.6 million shares in treasury equal to 2.0% of its shares outstanding.

    Investor and media conference call
    A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EDT). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com.
       
    Important Dates  
    •  Publication Q4/Full year 2024 results February 20, 2025
    •  Publication Q1-2025 results April 23, 2025
    •  Besi’s 2025 AGM April 23, 2025
       

    Basis of Presentation

    The accompanying Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2023 Annual Report, which is available on www.besi.com.

    Contacts:

    Richard W. Blickman, President & CEO
    Andrea Kopp-Battaglia, Senior Vice President Finance        
    Claudia Vissers, Executive Secretary/IR coordinator
    Edmond Franco, VP Corporate Development/US IR coordinator

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

    About Besi

    Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

    Caution Concerning Forward-Looking Statements

    This press release contains statements about management’s future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The financial guidance set forth under the heading “Outlook” contains such forward-looking statements. While these forward-looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 and other global pandemics and the associated adverse impacts on the global economy, financial markets, global supply chains and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers; those additional risk factors set forth in Besi’s annual report for the year ended December 31, 2023 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

    Consolidated Statements of Operations

    (€ thousands, except share and per share data) Three Months Ended
    September 30,
    (unaudited)    		 Nine Months Ended
    September 30,
    (unaudited)
      2024 2023 2024 2023
             
    Revenue 156,570 123,320 454,060 419,227
    Cost of sales 55,325 43,709 156,276 147,374
             
    Gross profit 101,245 79,611 297,784 271,853
             
    Selling, general and administrative expenses 27,318 23,310 97,473 81,679
    Research and development expenses 18,874 13,614 55,296 42,907
             
    Total operating expenses 46,192 36,924 152,769 124,586
             
    Operating income 55,053 42,687 145,015 147,267
             
    Financial expense, net 1,560 1,758 3,194 4,974
             
    Income before taxes 53,493 40,929 141,821 142,293
             
    Income tax expense 6,719 5,889 19,123 20,104
             
    Net income 46,774 35,040 122,698 122,189
             
    Net income per share – basic 0.59 0.45 1.56 1.57
    Net income per share – diluted 0.59 0.45 1.55 1.54
             
    Number of shares used in computing per share amounts:        
    – basic 79,630,787 77,374,933 78,701,287 77,656,542
    – diluted1 81,876,505 82,444,358 81,978,112 83,038,212

    ______________________
    1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding

    Consolidated Balance Sheets

    (€ thousands) September
    30, 2024
    (unaudited)    		 June
    30, 2024
    (unaudited)    		 March
    31, 2024
    (unaudited)    		 December
    31, 2023
    (audited)
    ASSETS        
             
    Cash and cash equivalents 307,448 127,234 232,053 188,477
    Deposits 330,000 130,000 215,000 225,000
    Trade receivables 169,266 174,601 150,192 143,218
    Inventories 104,103 99,291 99,384 92,505
    Other current assets 44,731 36,346 34,756 39,092
             
    Total current assets 955,548 567,472 731,385 688,292
             
    Property, plant and equipment 44,220 43,571 41,328 37,516
    Right of use assets 16,419 16,821 16,901 18,242
    Goodwill 45,278 45,710 45,613 45,402
    Other intangible assets 94,855 92,627 90,241 93,668
    Deferred tax assets 8,610 9,517 11,444 12,217
    Other non-current assets 1,316 1,239 1,252 1,216
             
    Total non-current assets 210,698 209,485 206,779 208,261
             
    Total assets 1,166,246 776,957 938,164 896,553
             
             
    Current portion of long-term debt 2,241 3,033 984 3,144
    Trade payables 49,211 51,620 52,382 46,889
    Other current liabilities 87,739 73,023 100,606 87,200
             
    Total current liabilities 139,191 127,676 153,972 137,233
             
    Long-term debt 524,527 179,801 265,142 297,353
    Lease liabilities 13,033 13,448 13,625 14,924
    Deferred tax liabilities 11,619 10,396 12,136 12,959
    Other non-current liabilities 12,449 11,352 12,914 12,671
             
    Total non-current liabilities 561,628 214,997 303,817 337,907
             
    Total equity 465,427 434,284 480,375 421,413
             
    Total liabilities and equity 1,166,246 776,957 938,164 896,553

     

    Consolidated Cash Flow Statements

    (€ thousands) Three Months Ended
    September 30,
    (unaudited)    		 Nine Months Ended
    September 30,
    (unaudited)
      2024 2023 2024 2023
             
    Cash flows from operating activities:        
    Income before income tax 53,493 40,929 141,821 142,293
             
    Depreciation and amortization 7,388 6,248 21,181 19,155
    Share based payment expense 3,400 1,575 27,216 16,300
    Financial expense, net 1,560 1,758 3,194 4,974
             
    Changes in working capital 6,031 15,697 (43,914) (2,581)
    Interest (paid) received (1,996) (2,649) (19,513) (27,948)
    Income tax paid 2,156 1,582 7,218 3,075
             
    Net cash provided by operating activities 72,032 65,140 137,203 155,268
             
    Cash flows from investing activities:        
    Capital expenditures (2,099) (1,990) (10,965) (5,448)
    Capitalized development expenses (4,415) (4,700) (13,990) (15,341)
    Repayments of (investments in) deposits (200,000) – (105,000) (5,268)
             
    Net cash provided by (used in) investing activities (206,514) (6,690) (129,955) (26,057)
             
    Cash flows from financing activities:        
    Proceeds from notes 350,000 – 350,000 –
    Transaction costs related to notes (6,395) – (6,395) –
    Payments of lease liabilities (1,080) (995) (3,186) (3,207)
    Purchase of treasury shares (27,829) (45,537) (57,418) (190,264)
    Dividends paid to shareholders – – (171,534) (222,109)
             
    Net cash used in financing activities 314,696 (46,532) 111,467 (415,580)
             
    Net increase (decrease) in cash and cash equivalents 180,214 11,918 118,715 (286,369)
    Effect of changes in exchange rates on cash and
    cash equivalents    		 – 130 256 (292)
    Cash and cash equivalents at beginning of the
    period    		 127,234 192,977 188,477 491,686
             
    Cash and cash equivalents at end of the period 307,448 205,025 307,448 205,025

      

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

    REVENUE Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023
                                 
    Per geography:                            
    China 45.5 29% 57.5 38% 58.5 40% 62.0 39% 40.8 33% 64.9 40% 37.6 28%
    Asia Pacific (excl. China) 51.6 33% 54.1 36% 43.6 30% 57.9 36% 42.3 34% 59.2 36% 58.2 44%
    EU / USA / Other 59.5 38% 39.6 26% 44.2 30% 39.7 25% 40.2 33% 38.4 24% 37.6 28%
                                 
    Total 156.6 100% 151.2 100% 146.3 100% 159.6 100% 123.3 100% 162.5 100% 133.4 100%
                                 
    ORDERS Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023
                                 
    Per geography:                            
    China 45.4 30% 43.3 23% 51.1 40% 71.1 43% 46.0 36% 51.4 46% 35.5 25%
    Asia Pacific (excl. China) 69.3 46% 72.0 39% 45.0 35% 36.6 22% 40.9 32% 33.2 29% 71.3 50%
    EU / USA / Other 37.1 24% 69.9 38% 31.6 25% 58.7 35% 40.4 32% 28.0 25% 35.2 25%
                                 
    Total 151.8 100% 185.2 100% 127.7 100% 166.4 100% 127.3 100% 112.6 100% 142.0 100%
                                 
    Per customer type:                            
    IDM 84.5 56% 122.4 66% 53.5 42% 82.7 50% 70.5 55% 60.5 54% 74.0 52%
    Subcontractors 67.3 44% 62.8 34% 74.2 58% 83.7 50% 56.8 45% 52.1 46% 68.0 48%
                                 
    Total 151.8 100% 185.2 100% 127.7 100% 166.4 100% 127.3 100% 112.6 100% 142.0 100%
                                 
    HEADCOUNT Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023
                                 
    Fixed staff (FTE) 1,807 87% 1,783 86% 1,760 88% 1,736 93% 1,725 87% 1,689 86% 1,682 84%
    Temporary staff (FTE) 271 13% 279 14% 236 12% 134 7% 248 13% 279 14% 312 16%
                                 
    Total 2,078 100% 2,062 100% 1,996 100% 1,870 100% 1,973 100% 1,968 100% 1,994 100%
                                 
    OTHER FINANCIAL DATA Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023
                                 
    Gross profit 101.2 64.7% 98.3 65.0% 98.3 67.2% 103.9 65.1% 79.6 64.6% 106.6 65.6% 85.7 64.2%
                                 
                                 
    Selling, general and admin expenses:                            
    As reported 27.3 17.4% 30.5 20.2% 39.6 27.1% 24.3 15.2% 23.3 18.9% 29.4 18.1% 29.0 21.7%
    Share-based compensation expense (3.4) -2.1% (6.9) -4.6% (16.9) -11.6% (2.8) -1.7% (1.6) -1.3% (5.5) -3.4% (9.3) -7.0%
                                 
    SG&A expenses as adjusted 23.9 15.3% 23.6 15.6% 22.7 15.5% 21.5 13.5% 21.7 17.6% 23.9 14.7% 19.7 14.8%
                                 
                                 
    Research and development expenses:                            
    As reported 18.9 12.1% 18.5 12.2% 17.9 12.2% 13.5 8.5% 13.6 11.0% 14.3 8.8% 15.0 11.2%
    Capitalization of R&D charges 4.4 2.8% 4.9 3.2% 4.7 3.2% 5.7 3.6% 4.7 3.8% 5.3 3.3% 5.4 4.0%
    Amortization of intangibles (3.9) -2.5% (3.6) -2.3% (3.6) -2.4% (3.3) -2.1% (3.3) -2.6% (3.5) -2.2% (3.5) -2.6%
                                 
    R&D expenses as adjusted 19.4 12.4% 19.8 13.1% 19.0 13.0% 15.9 10.0% 15.0 12.2% 16.1 9.9% 16.9 12.7%
                                 
                                 
    Financial expense (income), net:                            
    Interest income (5.2)   (3.0)   (4.0)   (3.6)   (2.9)   (3.1)   (2.6)  
    Interest expense 5.7   2.1   2.8   3.0   2.8   2.9   2.9  
    Net cost of hedging 1.9   1.4   1.6   1.7   1.7   2.0   1.6  
    Foreign exchange effects, net (0.8)   0.5   0.2   (0.4)   0.2   (0.1)   (0.4)  
                                 
    Total 1.6   1.0   0.6   0.7   1.8   1.7   1.5  
                                 
    Gross cash 637.4   257.2   447.1   413.5   391.2   378.3   644.9  
                                 
                                 
    Operating income (as % of net sales) 55.1 35.2% 49.3 32.6% 40.7 27.8% 66.1 41.4% 42.7 34.6% 62.9 38.7% 41.7 31.3%
                                 
    EBITDA (as % of net sales) 62.4 39.8% 56.2 37.2% 47.5 32.5% 72.7 45.6% 48.9 39.7% 69.3 42.6% 48.2 36.1%
                                 
    Net income (as % of net sales) 46.8 29.9% 41.9 27.7% 34.0 23.2% 54.9 34.4% 35.0 28.4% 52.6 32.4% 34.5 25.9%
                                 
    Effective tax rate 12.6%   13.0%   15.3%   16.1%   14.4%   14.0%   14.0%  
                                 
                                 
    Income per share                            
    Basic 0.59   0.53   0.44   0.71   0.45   0.68   0.44  
    Diluted 0.59   0.53   0.44   0.68   0.45   0.66   0.44  
                                 
    Average shares outstanding (basic) 79,630,787 79,281,533 77,181,326 77,070,082 77,374,933 77,634,197 77,946,873
                                 
    Shares repurchased                            
    Amount 27.8   14.8   14.8   23.1   45.5   66.9   77.7  
    Number of shares 230,807 105,042 101,049 226,572 447,829 761,937 1,120,327
                                 

    The MIL Network –

  • MIL-OSI Russia: The results of the internship of Russian specialists in Belarus have been summed up

    Translation. Region: Russian Federation –

    Source: State University of Management – Official website of the State –

    The final part of the internship of Russian specialists in the Republic of Belarus took place in Minsk and facilities close to the country’s capital.

    On October 21, members of the Russian delegation took part in a contact exchange with companies representing businesses and potential B2B partners from Belarus. The event was opened by the Director of the Federal Resource Center, Alexey Bunkin. The head of the Rossotrudnichestvo representative office in the Republic of Belarus, Yury Makushin, also addressed the Russian and Belarusian participants with an opening speech.

    During the event, the current state of foreign trade relations between Russia and Belarus, promising export and import directions, the peculiarities of local buyers’ perception of Russian products, issues of certification, logistics and mutual settlements were discussed, and numerous personal meetings, conversations and exchange of contacts took place.

    Then a visit to the office of the Free Economic Zone “Minsk” took place. The deputy head of the FEZ administration spoke in detail about its functioning, features in comparison with other zones, answered questions from members of the Russian delegation.

    Next, the internship participants visited the production facilities of ZAPAGROMASH LLC, the CIS leader in the production of agricultural machinery, including for feeding and keeping cattle, and Minsk Tractor Plant OJSC, the oldest enterprise in the republic and the largest manufacturer of agricultural machinery.

    During the visits, the delegation members learned about the history of the companies, examined samples of manufactured equipment and a number of production shops, including assembly shops, and discussed issues of interest to them with the management of the enterprises, with special attention paid to the topic of ensuring social security for workers.

    In the evening of the same day, Alexey Bunkin held a briefing with the internship participants, during which the results of the work were summed up, the achieved results were presented, and the prospects for the development of subsequent similar projects were discussed.

    On the final day of the internship, October 22, the delegation visited the Great Stone Industrial Park. They were given a thorough introduction to the history of the park’s creation and its present day, had a dialogue with the deputy head of the administration with answers to numerous questions, and toured the territory.

    The Russian delegation then moved to the building of the Belarusian State University of Economics and took part in a session on business education as part of the Second Forum of the Scientific and Educational Consortium “Eurasian Network University”, held by the State University of Management. Leading specialists from a number of consulting companies in the Republic of Belarus spoke to the internship participants.

    Also in the BGEU building, the vice-rector of the State University of Management Dmitry Bryukhanov and Alexey Bunkin presented certificates of advanced training in the program “Economic cooperation in the agro-industrial complex” to the participants of the Presidential program for training management personnel.

    The business program of the internship of Russian specialists in Minsk ended in the same place where it began – in the building of the Trade Mission of the Russian Federation in the Republic of Belarus. The meeting was attended by the representative of the Ministry of Economic Development of the Russian Federation in the Republic of Belarus Ilya Fedorov, the head of the department for promoting direct foreign investment and import substitution of the Ministry of Agriculture and Food of the Republic of Belarus Anastasia Dedyulya, the head of the production and marketing department of the KUP “Myasomolprom” of the Minsk Regional Executive Committee Tatyana Volozgina, a number of heads of commercial and manufacturing enterprises from the agro-industrial complex.

    The Russian and Belarusian participants once again considered possible areas and prospects for cooperation, and exchanged contacts for further interaction. Moreover, the discussion was based on information and experience gained during their stay in Belarus.

    The results of the intensive practice-oriented internship of Russian specialists in Belarus were familiarization with successful examples of entrepreneurship, establishment of contacts with both representatives of local businesses and Russian representative bodies that ensure the state interests of Russia in the sphere of foreign economic activity in Belarus.

    Subscribe to the TG channel “Our GUU” Date of publication: 10/24/2024

    Internships for Russian specialists in the Republic of Belarus took place in Minsk and facilities close to the country’s capital.

    On October 21, members of the Russian delegation took part in a contact exchange with companies representing businesses and potential B2B partners from Belarus….

    ” data-yashareImage=”https://guu.ru/wp-content/uploads/Беларусь-2024-1.jpg” data-yashareLink=”https://guu.ru/%d0%bf%d0%be%d0%b4%d0%b2%d0%b5%d0%b4%d0%b5%d0%bd%d1%8b-%d0%b8%d1%82%d0%be%d0%b3%d0%b8-%d1%81%d1%82%d0%b0%d0%b6%d0%b8%d1%80%d0%be%d0%b2%d0%ba%d0%b8-%d1%80%d0%be%d1%81%d1%81%d0%b8%d0%b9%d1%81%d0%ba/”>

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI: MKS Instruments Breaks Ground on Super Center Factory in Malaysia

    Source: GlobeNewswire (MIL-OSI)

    ANDOVER, Mass., United States and KUALA LUMPUR, Malaysia, Oct. 24, 2024 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that transform the world, the Malaysian Investment Development Authority (MIDA) and InvestPenang today announced that MKS celebrated the groundbreaking ceremony of its super center factory in Penang, Malaysia to support the growing needs of semiconductor equipment for wafer fabrication in the region and globally. The state-of-the-art facility will be located on a 17-acre plot, spanning approximately 500,000 square feet. and will employ approximately 1,000 people. The new factory will be built in multiple phases, with the first phase scheduled for completion in the first half of 2026.

    ADUN Bukit Tambun and Director of InvestPenang, YB Goh Choon Aik stated, “Penang, renowned as the Silicon Valley of the East, has cemented its position as a preferred global destination for electronics and electrical investments in Southeast Asia. With a legacy of five decades of industrialisation and a reputation for innovation and technological excellence, the state offers a thriving industrial ecosystem that naturally attracts investors. MKS Instruments’ expansion into Penang is a testament to the state’s appeal as a preferred investment destination, supported by its robust ecosystem.”

    YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), welcomed MKS Instruments to Malaysia, stating, “This groundbreaking super center factory is a resounding affirmation of our government’s commitment to expediting investors’ projects with the able assistance of agencies like MIDA. More importantly, this aligns with our New Industrial Master Plan 2030, which aims to enhance our economic complexity, fostering symbiotic relationships between global companies and local SMEs, and creating high-skilled, high-paying jobs in cutting-edge sectors like engineering and technical fields, for the benefit of Malaysians. I’m confident that these initiatives will catapult our semiconductor sector to the pinnacle of the global value chain, a true ‘tour de force’ in the world of industry.”

    Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid stated “This momentous occasion presents a golden opportunity for our machinery and equipment (M&E) companies to showcase their prowess in producing high-value products and integrated services that meet the exacting standards of multinational corporations (MNCs). MIDA remains steadfast in its commitment to supporting and facilitating investments that enhance operational capabilities, ultimately catalysing the meteoric rise of Malaysia’s manufacturing sector, a true ‘industrial powerhouse’ in the making.”

    “Penang offers an attractive and rapidly growing semiconductor ecosystem, and building a significant presence here is part of our strategic and long-term capital planning,” said Dr. John T.C. Lee, President and Chief Executive Officer of MKS. “Adding Penang to our global footprint puts us closer to our customers, suppliers and a robust technology infrastructure, including a deep and talented labor pool, as we continue to spur innovation and enhance our capabilities as a leader across a broad array of semiconductor manufacturing applications.”

    MIDA reports that for the first half of 2024 (1H2024), the Machinery and Equipment (M&E) sector saw promising growth, with a total of 64 projects approved, amounting to investments valued at RM2.8 billion. These projects are anticipated to create significant opportunities, generating over 3,500 new jobs and contributing to the sector’s continued development and expansion in Malaysia.

    About MIDA

    MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

    About InvestPenang

    InvestPenang is the Penang State Government’s principal agency for the promotion of investments. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy). For more information, please visit https://investpenang.gov.my.

    About MKS Instruments

    MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

    For more information, please contact:

    MIDA InvestPenang MKS Instruments
    Ms. Zakiah Sajidan
    Director, Machinery and Metal
    Technology Division
    Email: zakiah@mida.gov.my
    Tel.: +603 22676769    		 Ms. Elaine Cheah
    Communications & Business
    Intelligence
    Email: elaine@investpenang.gov.my
    Tel.: +604 6468833    		 Mr. Bill Casey
    Senior Director, Marketing
    Communications 
    Email: press@mksinst.com
    Tel.: +1 630 995 6384 

    Ms. Kerry Kelly
    Partner, Kekst CNC
    Email: kerry.kelly@kekstcnc.com
         

    Safe Harbor for Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, regarding MKS’ construction of a factory in Malaysia and the projected timeline. Any statements that are not statements of historical fact should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein, including as a result of the factors described in MKS’ Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.

    The MIL Network –

  • MIL-OSI: Get Ready to Trade & Treat: BTCC Exchange Kicks Off Hauntingly Good Halloween Futures Trading Campaign

    Source: GlobeNewswire (MIL-OSI)

    VILNIUS, Lithuania, Oct. 24, 2024 (GLOBE NEWSWIRE) — As the Halloween season approaches, BTCC Exchange is excited to announce its Halloween Futures Trading Campaign, inviting users to enter a thrilling crypto haunted dungeon where they can unlock treats worth up to 1,830,000 USDT. This campaign, running until November 1, 2024, promises a hauntingly good time for both seasoned traders and newcomers alike.

    This year, BTCC is offering three enticing treats for participants. The first treat allows users to trade futures and share in a 1,000,000 USDT prize pool. For every 10,000 USDT in futures trading volume, traders will earn 1 USDT in trading funds. There’s no limit to how much can be collected, but users must act quickly as the prize pool rewards will be given out on a first-come first-served basis.

    New traders will find their own special treat with a 3,000 USDT prize pool specifically designed for those who haven’t yet ventured into futures trading on BTCC. The first 1,000 participants to complete a futures trade exceeding 1,000 USDT will receive a 3 USDT coupon.

    Additionally, BTCC is offering free position vouchers of up to 700,000 USDT for users who complete consecutive daily trades. The first 1,000 users to meet the requirements will unlock these rewards.

    “Market sentiment has been buzzing with anticipation for a bull run since we entered ‘Uptober’,” said Alex, Head of Operations at BTCC. “With the upcoming U.S. election potentially adding fuel to crypto prices, this campaign arrives just in time for users to take advantage of the uptrend and profit from it.”

    Alongside the Halloween trading campaign, BTCC recently reduced its futures trading fees from just 0.01% for a limited period. Coupled with the potential to trade futures with up to 500x leverage, users can maximize their strategies while minimizing costs. This not only empowers both traders to capitalize on market movements but also elevates their chances of profiting during this Halloween season.

    About BTCC

    BTCC is a leading exchange that provides traders with a safe and secure platform to trade cryptocurrencies. With a commitment to user satisfaction, BTCC continues to explore new ways to enhance the trading experience for users around the globe.

    Website: https://www.btcc.com    

    X: https://x.com/BTCCexchange

    Contact: press@btcc.com

    The MIL Network –

  • MIL-OSI Canada: Bank of Canada reduces policy rate by 50 basis points to 3¾%

    Source: Bank of Canada

    The Bank of Canada today reduced its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%. The Bank is continuing its policy of balance sheet normalization.

    The Bank continues to expect the global economy to expand at a rate of about 3% over the next two years. Growth in the United States is now expected to be stronger than previously forecast while the outlook for China remains subdued. Growth in the euro area has been soft but should recover modestly next year. Inflation in advanced economies has declined in recent months, and is now around central bank targets. Global financial conditions have eased since July, in part because of market expectations of lower policy interest rates. Global oil prices are about $10 lower than assumed in the July Monetary Policy Report (MPR).

    In Canada, the economy grew at around 2% in the first half of the year and we expect growth of 1¾% in the second half. Consumption has continued to grow but is declining on a per person basis. Exports have been boosted by the opening of the Trans Mountain Expansion pipeline. The labour market remains soft—the unemployment rate was at 6.5% in September. Population growth has continued to expand the labour force while hiring has been modest. This has particularly affected young people and newcomers to Canada. Wage growth remains elevated relative to productivity growth. Overall, the economy continues to be in excess supply.

    GDP growth is forecast to strengthen gradually over the projection horizon, supported by lower interest rates. This forecast largely reflects the net effect of a gradual pick up in consumer spending per person and slower population growth. Residential investment growth is also projected to rise as strong demand for housing lifts sales and spending on renovations. Business investment is expected to strengthen as demand picks up, and exports should remain strong, supported by robust demand from the United States.

    Overall, the Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. As the economy strengthens, excess supply is gradually absorbed.

    CPI inflation has declined significantly from 2.7% in June to 1.6% in September. Inflation in shelter costs remains elevated but has begun to ease. Excess supply elsewhere in the economy has reduced inflation in the prices of many goods and services. The drop in global oil prices has led to lower gasoline prices. These factors have all combined to bring inflation down. The Bank’s preferred measures of core inflation are now below 2½%. With inflationary pressures no longer broad-based, business and consumer inflation expectations have largely normalized.

    The Bank expects inflation to remain close to the target over the projection horizon, with the upward and downward pressures on inflation roughly balancing out. The upward pressure from shelter and other services gradually diminishes, and the downward pressure on inflation recedes as excess supply in the economy is absorbed.

    With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range. If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further. However, the timing and pace of further reductions in the policy rate will be guided by incoming information and our assessment of its implications for the inflation outlook. We will take decisions one meeting at a time. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

    Information note

    The next scheduled date for announcing the overnight rate target is December 11, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on January 29, 2025.

    MIL OSI Canada News –

  • MIL-OSI Security: St. Cloud Man Sentenced to Ten Years in Prison for Attempting to Entice a Child to Engage in Sexual Activity

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI –

  • MIL-OSI Security: ‘Operation Not Forgotten’ Shines New Light on Indian Country Cases

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney Tessa M. Gorman Names District Election Officer

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI –

  • MIL-OSI Security: ALDI Executive and Southern Illinois Contractor Sentenced for Rigging Construction Project Bids, Ordered to Pay More Than $2.8 Million

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI –

  • MIL-OSI: MiddleGround Capital secures 83.54 percent of all shares in Takeover Offer for STEMMER IMAGING AG

    Source: GlobeNewswire (MIL-OSI)

    THIS ANNOUNCEMENT IS NOT AN OFFER, WHETHER DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, RUSSIA, SINGAPORE, OR SOUTH AFRICA OR IN ANY OTHER JURISDICTION WHERE SUCH OFFER PURSUANT TO LEGISLATION AND REGULATIONS IN SUCH RELEVANT JURISDICTION WOULD BE PROHIBITED BY APPLICABLE LAW.

    LEXINGTON, Ky., Oct. 23, 2024 (GLOBE NEWSWIRE) — Ventrifossa BidCo AG (the “Bidder”), a holding company controlled by MiddleGround Capital (“MiddleGround“) has secured 10.00 percent of all shares of STEMMER IMAGING AG (“STEMMER”; ISIN DE000A2G9MZ9 / GSIN A2G9MZ) in its voluntary public takeover offer for STEMMER (“Takeover Offer”). The additional acceptance period ended on October 18, 2024. In addition, the Bidder has signed a purchase agreement for approximately 69.36 percent of the shares with the majority shareholder of STEMMER, PRIMEPULSE SE. Together, with the shares it already holds, the Bidder has now secured a total of 83.54 percent of STEMMER shares.

    All required merger control and foreign direct investment clearances have been obtained and the Takeover Offer is not subject to any further conditions. The settlement of the Takeover Offer is currently expected to occur on November 5, 2024.

    About MiddleGround
    MiddleGround Capital is a private equity firm based in Lexington, Kentucky with over $3.7 billion of assets under management. MiddleGround makes majority investments in middle market B2B industrial and specialty distribution businesses. MiddleGround works with its portfolio companies to create value through a hands-on operational approach and partners with its management teams to support long-term growth strategies. For more information, please visit: https://middleground.com.

    About STEMMER IMAGING AG
    STEMMER IMAGING AG is the leading international systems house for machine vision technology. With a background of all-round engineering expertise, STEMMER IMAGING AG delivers the entire spectrum of machine vision services for both, industrial and non-industrial applications – from value-added services to the development of subsystems and its own products, based on an extensive commercial range of products. For more information, please visit: https://www.stemmer-imaging.com/.

    Media Contacts:

    International media inquiries
    Stephan Göttel
    Kekst CNC
    Stephan.Goettel@kekstcnc.com   
    +49 162 269 4588

    US media inquiries
    Doug Allen/Maya Hanowitz
    Dukas Linden Public Relations
    MiddleGround@dlpr.com
    +1 (646) 722-6530

    Important Note

    This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares in STEMMER, whether directly or indirectly in or into the United States of America, Australia, Canada, Hong Kong, Japan, New Zealand, Russia, Singapore or South Africa, in jurisdictions where such offer pursuant to legislation and regulations in such relevant jurisdictions would be prohibited by applicable law.

    The Takeover Offer itself as well as its terms and conditions and further provisions concerning the Takeover Offer is set out in in detail in the offer document as approved by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). Investors and holders of shares in STEMMER are strongly advised to thoroughly read the offer document and all other relevant documents regarding the Takeover Offer since they will contain important information. Shareholders not resident in Germany wanting to accept the Offer must make inquiries on relevant and applicable legislation, including but not limited to whether governmental consent is required and possible tax consequences. The Takeover Offer is not made, directly or indirectly, and sale will not be accepted from, or on behalf of, shareholders in any jurisdiction where presenting the Takeover Offer or acceptance thereof would be in conflict with the laws of such jurisdictions.

    The Takeover Offer is exclusively subject to the laws of the Federal Republic of Germany. Any agreement that is entered into as a result of accepting the Takeover Offer will be exclusively governed by the laws of the Federal Republic of Germany and is to be interpreted in accordance with such laws.

    The Takeover Offer and the information and documents contained in the offer document are not being made and have not been approved by an “authorized person” for the purposes of section 21 of the UK Financial Services and Markets Act 2000 (the “FSMA“). Accordingly, the information and documents contained in the offer document are not being distributed to, and must not be passed on to, the general public in the United Kingdom unless an exemption applies. The communication of the information and documents contained in the offer document is exempt from the restriction on financial promotions under section 21 of the FSMA on the basis that it is a communication by or on behalf of a body corporate which relates to a transaction to acquire day to day control of the affairs of a body corporate; or to acquire 50 per cent or more of the voting shares in a body corporate, within article 62 of the FSMA (Financial Promotion) Order 2005.

    The Takeover Offer described herein is made on the basis of the exemptions to publish a prospectus in Switzerland set out in article 36 para. 1 lit. b of the Swiss Financial Services Act (“FinSA“). None of the offering documentation or information relating to the Takeover Offer constitutes a prospectus pursuant to the FinSA. No such documentation or information has been nor will be filed with or approved by any Swiss regulatory authority.

    The MIL Network –

  • MIL-OSI Global: Cuba’s power grid collapse reveals the depth of the country’s economic crisis

    Source: The Conversation – UK – By Nicolas Forsans, Professor of Management and Co-director of the Centre for Latin American & Caribbean Studies, University of Essex

    Cuba’s national grid collapsed four times in as many days last week, after the island’s largest power plant, Antonio Guiteras, failed. Millions of Cubans are still without power, with food rotting in powerless fridges and many lacking access to clean water.

    The Communist government closed schools on October 18 and ordered non-essential public sector activities to stop as work began on restoring the grid. But this was hindered by the arrival of Hurricane Oscar on Sunday night, which unleashed heavy rain and strong winds across eastern Cuba.

    Antonio Guiteras is now back online, and Cuban energy officials say electricity has been restored in most of the capital city, Havana, and some outlying areas. But they have warned against too much optimism.

    Cuba’s five thermoelectric power plants are obsolete and crumbling. And with oil products accounting for over 80% of power generation, the island depends on Venezuela for fuel shipments. But shipments have been cut in half this year as Venezuela struggles to ensure its own supply, forcing the Cuban government to seek far more expensive fuel on the spot market.

    The problem is that the Cuban government is running out of money as it grapples with the island’s worst economic crisis in 30 years, so power cuts of up to 20 hours a day are now common. Indeed, Lazaro Guerra, Cuba’s top electricity official, has said that Cubans “should not expect that when the system comes back online the blackouts will end”.

    How did Cuba get here?

    The roots of this crisis can be traced back to the cold war when Fidel Castro overthrew the US-backed government of Fulgencio Batista in January 1959. Convinced that the Cuban revolution was the most advanced among all far-left movements in Latin America, the former Soviet Union sided with the island and provided it with industrial goods and technical assistance.

    Cuba’s relations with the US worsened dramatically, and by July 1960 it had announced the expropriation of US industrial, banking and commercial operations on the island. Within a few months, the Cuban state had taken over all sugar mills, most industry and trade, half of the land, and every bank and communication network in the country.

    Retaliation swiftly followed. The US introduced its first embargo on all exports to Cuba in 1960, with exceptions for food and medicine. And this was followed in 1962 by a ban on all trade and financial transactions with the island. In 1964, the then US president, Lyndon B. Johnson, ordered a multilateral policy of “economic denial”, severely inhibited Cuba’s efforts to foster economic relations with other countries.

    The island would receive considerable amounts of aid from the Soviet bloc over the next 30 years. But this only deepened Havana’s dependence on a single export product: sugar, which was purchased at an inflated price as part of the aid programme. In return, Cuba purchased the crude oil it needed to operate its electricity plants.

    But, by the time the Soviet Union disintegrated in 1991, Cuba had failed to diversify its industrial structure and move away from its low productivity, monocultural economy. The country enjoyed limited self-sufficiency even in the production of food, with all means of production in the state’s hands.

    With the disappearance of its main oil supplier, Cuba was also forced to increase its domestic oil production and turn to Venezuela to meet its energy needs. The US embargo, which has been in place for 62 years, has cost Cuba an estimated US$130 billion (£100 billion), and has limited its access to basic goods and services.

    During Barack Obama’s second term as US president, there was a step change in relations between the two countries. Diplomatic relations resumed from 2014 and the embargo was eased, including restrictions on the ability of Cuban-Americans to travel back to the island and send remittances.

    In March 2016, Barack Obama became the first US president to visit Cuba since Calvin Coolidge in 1928.
    Kimberly Shavender / Shutterstock

    This kicked off a boom in private sector activities in Cuba and prompted reforms by the Cuban government aimed at restructuring the economy. However, the government was unwilling to reduce its grip on the centrally planned economy, and the reforms moved too slowly to produce any meaningful improvement.

    Then, in his final week in office in 2021, Donald Trump reimposed trade restrictions targeting tourism, remittances, and energy supplies, as well as adding Cuba to the list of “state sponsors of terrorism”. The move led to severe shortages and inflation, both of which were worsened by the pandemic.

    Logistical bottlenecks disrupted supplies and inflated shipping costs further. Heavily dependent on tourism, Cuba suffered a severe depletion of its foreign currency reserves.

    Patience is running out

    The economic situation has continued to decline. Export earnings in 2023 were still US$3 billion short of their pre-pandemic level, and Cuba’s economic output is not expected to return to its level before the pandemic until after 2025.

    Half a million people – most of whom were young – left the country for the US between 2021 and 2022. And thousands more have made their way to Brazil, Russia, Uruguay and elsewhere in an exodus that is unprecedented in the history of the island.

    The future outlook looks bleak, yet the government is keen to quash dissent. Speaking during the latest blackouts, Cuba’s current president, Miguel Díaz-Canel, said: “We will not accept or allow anyone to act by provoking acts of vandalism, and much less disturbing the civil tranquillity of our people … And that is a principle of our revolution.”

    Díaz-Canel was reelected by lawmakers in April 2023 for a second and final term. But the weak state of Cuba’s economy will pose significant challenges for his government, testing its strength and the legitimacy of its hold on power.

    Cuba’s relations with the US are also likely to remain strained. In an attempt to curb Cuba’s outreach to Russia and China for predominantly economic assistance, the US president, Joe Biden, has loosened some sanctions. But this could all change with a Republican victory in the upcoming US election.

    Nicolas Forsans 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. Cuba’s power grid collapse reveals the depth of the country’s economic crisis – https://theconversation.com/cubas-power-grid-collapse-reveals-the-depth-of-the-countrys-economic-crisis-241819

    MIL OSI – Global Reports –

  • MIL-OSI Security: U.S. Attorney Announces Murder-for-Hire Charges Against IRGC Brigadier General and Former Intelligence Officer and Members of an Iranian Intelligence Network

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Ruhollah Bazghandi and Members of His Iran-Based Network, Contracted Members of an Eastern European Organized Crime Group to Murder a U.S. Citizen of Iranian Origin in New York City Who Has Publicly Opposed the Iranian Government

    Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Matthew G. Olsen, the Assistant Attorney General for National Security; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); and James E. Dennehy, Assistant Director in Charge of the New York Field Office of the FBI, announced the unsealing of murder-for-hire, money-laundering, and sanctions charges against RUHOLLAH BAZGHANDI, a/k/a “Roohollah Azimi,” FNU LNU, a/k/a “Haj Taher,” (“HAJ TAHER”), HOSSEIN SEDIGHI, and SEYED MOHAMMAD FOROUZAN.  The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court.  As detailed in the Superseding Indictment, BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN contracted members of an Eastern European criminal organization, including RAFAT AMIROV, a/k/a “Farkhaddin Mirzoev,” a/k/a “Pᴎᴍ,”  a/k/a “Rome,” POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” and ZIALAT MAMEDOV, a/k/a “Ziko,” to murder a U.S. citizen of Iranian origin in New York City who has publicly opposed the Iranian Government and who has previously been the target of similar plots by the Iranian Government.  AMIROV, OMAROV, and MAMEDOV previously were arrested on charges contained in underlying indictments.  AMIROV and OMAROV are in custody in the U.S., pending trial; Mamedov was extradited from the Czech Republic to the Republic of Georgia (“Georgia”) to face charges there.  BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN, all of whom are based in Iran, remain at large.  The case is pending before U.S. District Judge Colleen McMahon.

    U.S. Attorney Damian Williams said: “As alleged, for years, the Government of Iran has attempted to assassinate, on U.S. soil, a U.S. citizen of Iranian origin who is a prominent critic of the Iranian regime.  In January 2023, we unsealed charges alleging that members of an Eastern European crime group engaged in a plot to murder this victim.  As we allege, that group was not acting alone.  Today, we hold their Iranian masters to account, and allege that these Iran-based co-conspirators, including a Brigadier General in the Islamic Revolutionary Guard Corps, directed the murder plot.  By charging these Iran-based defendants, we seek to strike another public blow at the heart of the Government of Iran’s efforts to execute the victim—as well as its lethal targeting, intimidation, and repression of other Iranian dissidents critical of the regime in the U.S. and abroad.”  

    Attorney General Merrick B. Garland said: “The Justice Department has now charged eight individuals, including an Iranian military official, for their efforts to silence and kill a U.S. citizen because of her criticism of the Iranian regime.  We will not tolerate efforts by an authoritarian regime like Iran to undermine the fundamental rights guaranteed to every American.  Three of the defendants charged in this horrific plot are now in U.S. custody, and we will never stop working to identify, find, and bring to justice all those who endanger the safety of the American people.”

    Assistant Attorney General Matthew G. Olsen said: “Today’s indictment makes plain that the Iranian regime for years has been behind a violent campaign to stalk, intimidate, and arrange the killing of an American dissident on U.S. soil for bravely speaking up for the rights of the Iranian people.  The Department is committed to exposing and holding accountable those in Tehran who believe they can hide their hand in carrying out such reprehensible activities.”

    FBI Director Christopher A. Wray said: “Today’s indictment exposes the full extent of Iran’s plot to silence an American journalist for criticizing the Iranian regime.  According to the charges, a brigadier general in the Islamic Revolutionary Guard Corps and a former Iranian intelligence officer, working with a network of conspirators, planned to kill a dissident living in New York City.  The FBI’s investigation led to the disruption of this plot as one of the conspirators was allegedly on their way to murder the victim in New York.  As these charges show, the FBI will work with our partners here and abroad to hold accountable those who target Americans.”

    FBI Assistant Director in Charge James E. Dennehy said: “Today we charge four members of the Bazghandi Network – each connected to the Iranian government – as being responsible for hiring members of an Eastern European Organized Crime Group to murder an American citizen in New York City.   This crime was intended to stop an American from exercising their Constitutionally protected right to free speech; to end their life for speaking out publicly against the Iranian regime and its human rights violations.  The FBI will aggressively pursue, disrupt, and hold accountable any foreign government which attempts to murder our citizens on our soil.”

    According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1] 

    BAZGHANDI, who resides in Iran, is an Islamic Revolutionary Guard Corps (“IRGC”) Brigadier General and has previously served as chief of an IRGC Intelligence Organization (“IRGC-IO”) counterintelligence office.  In April 2023, the U.S. Secretary of State designated IRGC-IO as a Specially Designated Global Terrorist under Executive Order 14078, relating to hostage-taking and the wrongful detention of U.S. nationals abroad. On the same date, the U.S. Treasury Department sanctioned BAZGHANDI in connection with his involvement with the detention of foreign prisoners held in Iran.  BAZGHANDI was designated by the Treasury Department a second time in June 2023, this time under Executive Order 13224, for his participation in IRGC-IO’s lethal targeting operations.  HAJ TAHER, SEDIGHI, and FOROUZAN (collectively with BAZGHANDI, the “Bazghandi Network”), each of whom resides in Iran, also have connections to the Government of Iran.    

    The Bazghandi Network contracted AMIROV, OMAROV, MAMEDOV, and Khalid Mehdiyev to murder, on U.S. soil, a victim (the “Victim”) residing in New York City.  The Victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran.  As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the U.S. for rendition to Iran in an effort to silence the Victim’s criticism of the regime.  That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in U.S. v. Farahani, et al., 21 Cr. 430 (RA) (S.D.N.Y.).

    Since at least July 2022, the Bazghandi Network tasked members of the Organization with assassinating the Victim.  The Organization’s participation in the murder-for-hire plot was directed by AMIROV, who resided in Iran and who was tasked with targeting the Victim by individuals in Iran.  On approximately July 13, 2022, AMIROV forwarded targeting information—which Amirov had received from individuals in Iran—about the Victim and the Victim’s residence to OMAROV.  OMAROV, in turn, together with MAMEDOV, directed and collaborated with Mehdiyev, who was residing in Yonkers, New York, to carry out the plot against the Victim. Mehdiyev’s participation in the plot was disrupted when he was arrested near the Victim’s home on or about July 28, 2022, while in possession of the assault rifle, along with 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.

    In January 2023, AMIROV, OMAROV, and MAMEDOV were arrested overseas.  On January 27, 2023, they were charged publicly for their roles in the plot to assassinate the Victim.  Nevertheless, in the months that followed, members of the Bazghandi Network continued to target the Victim.  For example, in or about March 2023, HAJ TAHER searched for information about the Victim’s family members and SEDIGHI saved an image of the Victim’s residence. As recently as on or about May 1, 2023, BAZGHANDI conducted an Internet search, in Farsi, for, “a person in the house of [the Victim] movie,” and, on the same date, watched a video with the title, “A video of the arrested gunman in front of [the Victim]’s home in New York received by [the Victim’s employer].”

    *               *                *

    BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN, all of Iran, have been charged with murder-for-hire, which carries a maximum sentence of 10 years in prison (Count One); conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison (Count Two); conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison (Count Three); and conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum sentence of 20 years in prison (Count Six).

    AMIROV, 45, of IRAN; OMAROV, 39, of the Czech Republic and Slovenia; Mamedov, 32, of Georgia; also have been charged in Counts One, Two, and Three, as well as with attempted murder in aid of racketeering, which carries a maximum sentence of 10 years in prison (Count Four); and possession and use of a firearm in connection with the attempted murder, which carries a maximum sentence of life imprisonment and a mandatory minimum sentence of 5 years in prison (Count Five).

    The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge McMahon.

    Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force.  Mr. Williams also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, as well as the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs, for their assistance.

    This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorneys Christopher Rigali and Leslie Esbrook of the Counterintelligence and Export Control Section, and Dmitriy Slavin of the National Security Division’s Counterterrorism Section.

    The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    [1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Security: Seven Members of Moscow-Based Criminal Organization Plead Guilty in Over $1.7 Billion International Telemedicine Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI –