1. The Financial State of the University Geoff Chatas, Chief Financial Officer | The Ohio State University THURSDAY, NOVEMBER 15, 2012 | UNIVERSITY SENATE

2. University Core Goals 2 Teaching and LearningResearch and InnovationOutreach and Engagement

3. The Financial State of the University Our Focus: The Academic Core Our Financial Strategy: Supports the Academic Core 3

4. The Financial State of the University 4 Look before you leap. To achieve our ambitious academic goals, we need to take a strategic approach: Where are we going?

5. The Financial State of the University 5 Otherwise, just where will you land? Strategy is paramount.

6. The Financial State of the University 6 “Even before the recession struck, it was evident that expanding our funding streams would protect our academic core as nothing else possible could.” President Gee, Address to Faculty, October 18, 2012

7. The Financial State of the University 7 “We cannot carry out our historic purposes and focus on teaching and knowledge without a firm financial foundation.” President Gee, Address to Faculty, October 18, 2012

8. The Financial State of the University 8 ProgressChallengeUncertainty

9. Ambitious Academic Goals From Excellence to Eminence 9 So, just how do we fund our ambitions?

10. What We Know Government support is permanently shrinking.Financial burdens cannot be shouldered by students and families alone.Federal budget sequestration looms.We need to identify new revenue sources.We need to use existing resources responsibly.We need to understand and manage our risk. 10

11. Examples of Recent Funding Efforts Asset Monetization Parking Lease $483 million Faculty Initiatives and Research Discovery Endowment Fund: $200 million Century Bonds Funding expansion of Wexner Medical Center Additional revenue will be available for other needs over the years Partnerships Huntington Bank Affinity Agreement $25 million from Huntington, which the university will use for academic scholarships and educational programming Tech Commercialization Pathway for faculty to bring their innovations to market Cost-Savings Efforts Strategic procurement saves nearly $22 million 11

12. Striving for Simplicity  Improve quality  Reduce wasteful efforts  Maximize our existing resources  Minimize costs  Reduce time 12

13. The Financial State of the University 13 Our bold financing strategies are attracting attention. September 2012: Columbus Business First awarded “Transaction of the Year” honors for the sale of $500 million worth of 100-year bonds – making Ohio State the first public university to issue century bonds. November 2012: Ohio State earns The Bond Buyer “Deal of the Year” in the non-traditional financing category for our 50-year lease and concession agreement of parking facilities and operations in exchange for a $483 million up-front payment.

14. The Financial State of the University 14 Moody’s Investors Service has assigned a Aa1 rating to the university. The outlook is stable. Standard & Poor's Ratings Services: Long-term Rating AA/Stable

15. The Financial State of the University What the Future Holds 15

16. Fourth University Core Goal 16 To become the model of an affordable public university recognized for: Financial sustainability Unsurpassed management of human and physical resources Operational efficiency and effectiveness Primary Focus: Resource Stewardship

17. B&F Goals and Vision: 2012-2013 17 Operating With Financial Soundness and SimplicityGrowing New RevenueReviewing AssetsBuilding the EndowmentUnlocking the Financial Potential of Our InventionsOperating With Efficiency and Effectiveness

18. B&F Goals: Generation of New Resources Identification of savings Redirections of existing funds Innovative development of new funding sources Generate new resources through: Estimated Resource Generation Over Ten Years: More Than $2 billion 18

19. Resource Generation Scorecard – Fiscal 2013 Targets 19

20. University Financial Scorecard: Fiscal Year-to-Date September 30, 2012 20

21. Challenges For the Future Aligning resources with academic prioritiesManaging reductions in government supportReducing student debtMinimizing tuition increasesDiversifying revenue streams 21

22. Challenges For the Future Reducing expendituresMeeting capital and infrastructure needsMeasuring performance Managing risk in a complex worldDriving accountabilityUnderstanding the implications of globalization in higher ed 22

23. The Financial State of the University Optimistic View for the Future  Reinvestment in Our Academic Core  Ambitious Goals to Achieve  Positive Financial State and Outlook 23

24. The Financial State of the University Questions and Answers 24