RESERVE SUBFUND Its purpose is to ensure the regular and continuous financial functioning of the General Secretariat. Result of the annual income in excess of the execution. Annual income: Quotas + Administrative Support + interest + de-obligations + Other. Execution: As approved on the Budget (Expenses + Obligations) + other approved activity (i.e. FONDEM)

RESERVE SUBFUND Components of the Reserve Subfund: Reserve Subfund Equation Increases: + Quotas Other Income Decreases: - Budget execution FONDEM Equal: = Net Increase or Decrease Beginning Reserve Subfund Ending Reserve Subfund

RESERVE SUBFUND Reserve Subfund Equation Budgetary Equation Increases: + Quotas Approved Budget Other Income Decreases: - Budget execution   Budget Execution FONDEM Equal: = Net Increase or Decrease Budgetary Savings Beginning Reserve Subfund Ending Reserve Subfund

Proposed, Approved and Executed (in millions of USD)   2016 Approved Budget Level 84.3 Financing Quotas (net) 82.1 Other income 2.2 Total Financing 2016 Approved Budget Execution Total Execution Approved in June Will be received Might be received Approved in October Art. 99 of General Standards Will be fully executed if total financing is received.

RESERVE SUBFUND EQUATION (in millions of USD) A Budget Financing   A Budget Financing Current Quotas 82.1 Quotas in Arrears 0.0 Other income 2.2 Total Financing 84.3 Total Execution Operating surplus/deficit Reserve Sub fund at beginning of year Reserve Sub fund at end of year Quotas Receivable Adjusted Reserve Sub fund   B YEAR 1 75.1 0.0 2.2 78.3 84.3 -6.0 6.0   C YEAR 2 82.1 6.0 2.2 90.3 84.3 -6.0 0.0   D YEAR 3 82.1 0.0 1.2 83.3 84.3 -1.0   E YEAR 3 82.1 0.0 1.2 83.3

RESERVE SUBFUND 2016 AND PROJECTED 2017 * Preliminary and unaudited (in millions of USD)   A 2016 Approved Budget Financing Current Quotas 82.1 Quotas in Arrears 0.0 Other income 2.2 Total Financing 84.3 Total Execution Operating surplus/deficit Reserve Sub fund at beginning of year -18.0 Reserve Sub fund at end of year Quotas Receivable 19.7 Adjusted Reserve Sub fund 1.7   B 2016* Results 72.5 14.4 1.0 87.9 81.3 6.6 -18.0 -11.4 14.9 3.5   C 2017 Approved Budget 84.5 0.0 0.5 85.0 73.5 11.5 -11.4 0.1 14.9 15.0   D Projected 2017 Results 82.6 7.8 0.5 90.9 73.5 17.4 -11.4 6.0 9.0 15.0 * Preliminary and unaudited

END OF PRESENTATION