Adoption of 2015 Financial Accounts & CFO Update ref. GA(16)020 David Wrathmall, CFO 16th June 2016 General Assembly

Overview & decision to adopt accounts External Audit: Ernst & Young Feb-Mar 2016 Results presented to ARAC - 31st March EY attended ARAC ARAC Chair recommended to Board the approval and signing of the accounts Accounts signed-off by Board on 12th April 2016 Accounts presented to GA for adoption

Note from Accounts, page 10 Consolidated GÉANT Association Accounts = GÉANT Vereniging (NL) + GEANT Limited (UK) Note from Accounts, page 10

Summary Income & Expenditure → Appendix 1

Summary of Income → Appendix 2 → Appendix 3 → Appendix 4

Summary of Expenditure → Appendix 5 → Appendix 6 Note ‘Rounding’ Bud €42,071k vs Act €37,034k = €5,037k = €5.0M

Expenditure – 2015 key variances

Future Subscription* €13.8M Rebate funds €7.7M Balance Sheet Cash – 31.12.15 Working Capital €7.2M Future Subscription* €13.8M Rebate funds €7.7M Project (incl. DEVCO) Funds €14.2M Total €42.9M Reserves – 31.12.15 General €7.3M Sec General €0.3M Future Subscription* €13.8M Total €21.4M * = “deferred revenues”

Reserves General reserves €7.3M = working capital (incl. suppliers, payroll etc.) Expenditure €37M per annum ≈ €3M per month ≈ 2.5 months trading requirements Future Subscription Reserve = Deferred Revenues €13.7M For future network investments & smooth out cost-shared subscription spikes 2016-17 define plans for network post-2019 2018 DF re-procurement >2019-20, network traffic growth & EOSC investment Current thinking - no plans to re-fresh IP/MPLS & transmission equip’t in one “big-bang” like 2012-13 (+€25M) → Incremental investments instead

Decision to Adopt Accounts Members requested to adopt 2015 Accounts

Any Questions ? david.wrathmall@geant.org

Appendices (to accompany 2015 accounts) Future Subscription Reserve (Deferred Revenue) Other GÉANT Income DEVCO Income Other Income Network Costs Manpower Costs Contractor Cost

Appendix 1 – Future Subscription Reserve (Deferred Revenue) + €2.85M from I&E statement

Appendix 2 – Other GÉANT (Project) Income

Appendix 3 – DEVCO Income

Appendix 4 – Other Income

Appendix 5 – network costs

Appendix 6 – Manpower (employee) Costs 2014 v 2015 actuals Increase of €1.1M [€7.9M v €9.0M] due to:- a. x/rate €0.8M b. headcount/cost increases €0.3M 2015 Bud v Actual Increase of €0.5M [€8.5M v €9.0M]due to:- a. x/rate €0.4M b. headcount/cost increases €0.1M

Appendix 7 – Contractor Costs

Any Questions ? david.wrathmall@geant.org