Report from the Society Committee on Budget & Finance August 24, 2016 Philadelphia, PA www.acs.org/CouncilReports

2016 Probable 1 Projection Highlights Governning Board for Publishing 1/14/2019 2016 Probable 1 Projection Highlights Net from Operations – $17.3M $3.9M favorable to Budget $723K (4.4%) higher than 2015 Total Revenues – $528.8M $984K (0.2%) favorable to Budget $17.1M (3.3%) higher than 2015 Total Expenses – $511.5M $3.0M (0.6%) favorable to Budget $16.4M (3.3%) higher than 2015 To summarize, the 2016 Probable 1 projects a net from operations of $17.3M which is almost $4.0M (actually $3.9M) higher than the Approved Net from Operations ($13.4M); and $723,000 higher than where the Society ended 2015 ($16.6M). Revenues are projected to be essentially on budget at $528.8M, which is +3.3% higher than 2015. If we adjust for foreign currency, top line revenue growth would actually be closer to +4.5% (1.2% or $6.1M adverse effect). FX headwinds adversely impact CAS – more on this later in the meeting from Manny and Jay in the CAS report. Expenses are projected to be $3.0M favorable to budget which is, coincidently, also +3.3% higher than 2015 actuals. <CLICK> Note: Excludes the ACS Petroleum Research Fund and the Member Insurance Program. Proprietary and Confidential

2016 Probable 1 Projection Sources and Uses ($ in Millions) Information Services Investments Net Dues Revenue All Other Office of Public Affairs Web Strategy & Operations Education Membership & Scientific Advancement Net From Operations Notes: All Other includes Unallocated Indirect Costs, Development, Grants and Awards, Governance, HDS, and ACS International Ltd. Net from Operations excludes the ACS Petroleum Research Fund and the Member Insurance Program.

Financial Guidelines Guidelines 2016 Probable 1 Current Ratio Debt Ratio Free Cash Flow Sustainability Fund Balance Ratio

2017 Program Funding Requests Atlantic Basin Conference on Chemistry 2017 Proposed Budget - $251,000 2018 Forecast Budget - $55,000 2019 Forecast Budget - $36,000 ChemIDP Program 2017 Proposed Budget - $281,000 2018 Forecast Budget - $270,000 2019 Forecast Budget - $252,000 Note: Net expenses are before indirect assessments. 5 5

2017 Program Funding Requests International Student Chapter Program 2017 Proposed Budget - $138,000 2018 Forecast Budget - $140,000 2019 Forecast Budget - $208,000 Note: Net expenses are before indirect assessments. 6 6