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

2. 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

3. Summary Income & Expenditure
→ Appendix 1

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

5. 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

6. 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)

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

8. 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

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

10. 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

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

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

13. Appendix 3 – DEVCO Income & Margin

14. Appendix 4 – Other Income

15. Appendix 5 – network costs
+ €3M deferred rev

16. 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

17. Any Questions ?