Presentation to Members 2 June 2017 Subject: 2016 Accounts David Wrathmall

Overview & decision to adopt accounts External Audit: Ernst & Young Feb-Mar 2017 Results presented to ARAC – 28 April 2017 EY attended ARAC ARAC recommended to Board the signing of accounts Accounts signed-off by Board on 10 May 2017 Accounts presented to Members for adoption 2 June at General Assembly

Summary Income & Expenditure → Appendix 1

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

Summary of Expenditure → Appendix 5 → Appendix 3 → Appendix 6 Bud v act var €1.5M = €0.9M Forex, €0.5M Contractors, €0.3M Legal, €0.2M Property €10.6M variance summarised in next slide

Expenditure – 2016 key variances note 1 variance due to actuals less than budget, incl. Poznan dark fibre (€0.4M), earlier than budgeted re-negotiation of equipment housing cost (€0.2M), lower than budgeted travel (€0.4M), IT Maintenance contracts (€0.2), Contractors (€0.4M), Legal and professional (€0.2), connectivity installation (€0.3M)

Future Subscription* €16.8M Rebate funds €20.0M Balance Sheet Cash – 31.12.16 Working Capital €10.3M Future Subscription* €16.8M Rebate funds €20.0M Project (incl. GN4, DEVCO, BELLA) Funds €37.9M Total €85.0M Reserves – 31.12.16 General €7.7M Sec General €0.3M Future Subscription* €16.8M Total €24.8M * = “deferred revenues”

Reserves General reserves €7.7M = working capital (incl. suppliers, payroll etc.) Expenditure (excl. DEVCO) €30M per annum ≈ €2.5M per month ≈ 3.1 months trading requirements (2.8 mths in 2015) Surplus (€0.9M) budget set for 2017 to increase reserves for restructuring Reserves policy target 6 months expenditure cover ≈ €15M Future Subscription Reserve = Deferred Revenues €16.8M Future network investments & smooth out cost-shared subscription spikes + €3M notified to Members in Nov 2016, €1.4M reduction planned in 2017

Adopt Accounts Members sent resolution on 18th May 2017 to adopt 2016 Accounts at their General Assembly in Linz on 2nd June 2017

Future Subscription Reserve (Deferred Revenue) Other GÉANT Income Appendices Future Subscription Reserve (Deferred Revenue) Other GÉANT Income DEVCO Income Other Income Network Costs Manpower Costs

Appendix 1 – Future Subscription Reserve (Deferred Revenue) 2016 + €3M from I&E statement 2017 Planned reduction of €1.4M

Appendix 2 – Other GÉANT (Project) Income Note: EC Funding claims difference due to less than budgeted manpower hours claimed

Appendix 3 – DEVCO Income & Margin

Appendix 4 – Other Income

Appendix 5 – network costs + €3M deferred rev

Appendix 6 – Manpower (employee) Costs 2015 v 2016 actuals Decrease of €1.3M [€9.0M v €7.7M] due to:- a. x/rate €0.5M b. headcount €0.8M 2016 Bud v Actual Decrease of €2.1M [€9.8M v €7.7MM]due to:- a. x/rate €1.0M b. headcount €1.1M

Any Questions ? david.wrathmall@geant.org