Report from the Society Committee on Budget and Finance American Chemical Society Report from the Society Committee on Budget and Finance Orlando, FL April 3, 2019

2018 Financial Highlights* Net from Operations – $41.1M $13.3M higher than 2017 Actual 15th consecutive year of positive operating results Total Revenues – $571.6M $34.2M (6.4%) higher than 2017 Actual Total Expenses – $530.5M $20.8M (4.1%) higher than 2017 Actual Unrestricted Net Assets – $292.2M $7.8M (2.7%) increase from Dec. 31, 2017 *Note: Excludes ACSI, HDS, ACS Petroleum Research Fund and the Member Insurance Program American Chemical Society

Net from Operations 2018 Actual ($ in Millions) Information Services Investments All Other Net Dues Revenue Scientific Advancement Governance External Affairs & Communication Web Strategy & Operations Education Membership & Society Services Net From Operations This is the Sources and Uses chart which you’ve seen many times. The major Sources of net contribution are the purple bars at the top. The slide demonstrates the significance of CAS and ACS Publications to the Society’s financial health. In 2018, the two divisions accounted for $88.1M of net contribution. Investments provided ~ $12.3M --- so, when combined with CAS and Pubs -- we have total Sources of Net Contribution of slightly more than $100M. ($100.4M). These Sources funded Society Programs (shown in light blue) managed out of Scientific Advancement, External Affairs & Communication, Education, and Membership & Society Services; and covered the costs associated with Governance and Web Strategy & Operations (WSO) -- and several Cost Centers grouped in the “All Other” category shown here in yellow (i.e., Development and unallocated indirect costs). (CLICK) *Notes: All Other includes Unallocated Indirect Costs and the Development Office. Net from Operations excludes ACSI, HDS, ACS Petroleum Research Fund and the Member Insurance Program. American Chemical Society

Unrestricted Net Assets 2014 – 2018 Actuals ($ in Millions) Net from Ops. $ 41.1M Investment Losses (25.1M) PRBP Acct. Charge (9.5M) Insurance Trust Dist. 0.8M ACSI Net from Ops 0.5M Total Increase $ 7.8M *Note: PRBP stands for post-retirement benefit plans. Excludes the Member Insurance Program and the ACS Petroleum Research Fund. American Chemical Society

Governing Board for Publishing 11/25/2019 Financial Guidelines Guideline Target 2018 Actuals 0.71x Current Ratio 0.65x target 0% Debt Ratio 50% maximum N/A $16.3M 3-year rolling average of free cash flow > 0 Free Cash Flow 7.2% 2.5% - 5.0% ROR target Sustainability 52% Fund Balance Ratio 50% minimum American Chemical Society

At www.acs.org Step #1 Step #2 American Chemical Society

At www.acs.org Step #3 American Chemical Society

At www.acs.org Available Financial Information: 8 Financial Resources FAQ’s Overview Glossary Net Assets Financials & Reports ACS IRS Form 990 American Chemical Society 8 8

2020 Fully Escalated Dues Calculation 2019 Dues Rate x CPI $175.00 x 1.0270 = $179.73 $180.00 American Chemical Society 9

2020 Fully Escalated Dues Calculation 2019 Dues Rate x CPI $175.00 x 1.0270 = $179.73 $180.00 The Society Committee on Budget and Finance recommended to Council that the 2020 dues be set at the 2019 rate of $175. Because this pause in the dues escalator may have negative implications on allocations to local sections and divisions, B&F further moves that steps be taken to ensure that this pause does not negatively impact these units of the Society. American Chemical Society 10

2020 Dues Recommendation Given the strong financial state of the Society, the Society Committee on Business & Finance moves suspension of the dues escalator for 2020, and thus recommends that the 2020 dues remain at current levels.  Because this pause in the dues escalator may have negative implications on allocations to local sections and divisions, B&F further moves that steps be taken to ensure that this pause does not negatively impact these units of the Society. American Chemical Society 11

Report from the Society Committee on Budget and Finance American Chemical Society Report from the Society Committee on Budget and Finance Orlando, FL April 3, 2019