MSF Belgium Financial statements 2015 · MSF Belgium & OCB Finance department 1. Highlights on Profit and loss accounts 2015 Social mission expenses increasing In 2015, MSF Belgium

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MSF Belgium

Financial statements 2015

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MSF Belgium Financial Statements 2015

MSF Belgium & OCB Finance department

1. Highlights on Profit and loss accounts 2015 Social mission expenses increasing In 2015, MSF Belgium increased its expenses with +21% (+ 57.7 Mio€) compared to the budget and +25% (+65.8 Mio€) compared to 2014. This is mainly linked to an increase in the Social mission expenses reaching 314.7 Mio€ in 2015, so +22% (+56.9 Mio€) more than budgeted or +26% (+65.6 Mio€) more than in 2014. The main drivers of the social mission expenses increase were the Programme expenses on the field increasing with +16% (+35.8 Mio€) versus the budget or +18% (+40.7 Mio€) versus 2014. Programmes have been boosted by the migrants crisis (24,1 Mio€) and the continuation of the response to the Ebola Crisis (18,3 Mio€). It also includes the support to the Operational Centre Barcelona (OCBA) as the OCB funded in 2015 part of its program expenses for a total of 18 Mio€ (in accordance with the RSA3

1 negotiations).

Headquarters Program Support increased by +23% (+4.2 Mio€) compared to the budget or +28% (+5 Mio€) compared to 2014 notably in order to sustain the growth of the Field operations with the set-up of a Refugees Task Force, the recruitment & HR administration needs on the field, and reinforcement of medical, logistics & financial support to operations.

Exchange rate impact 2015 Program field expenses have also been impacted by the fluctuation of the exchange rates during the year compared to the rates taken into account for the budget. We can observe that 56% of those field expenses are paid in non-Euro (or related) currencies. We evaluated the impact of exchange rates fluctuations to +9.8 Mio€ versus the budget of which 4 Mio€ linked to the USD. On the income side, the exchange rates fluctuation also influenced the MSF Belgium result, with a positive effect of +2.6 Mio€. This is mainly linked to the US dollar (+4.6 Mio€) and the Hong Kong dollar (+5.1 Mio€) although counterbalanced by the weakness of Brazilian Real (-5.9 Mio€) and Norwegian Kroon (-2.2 Mio€).

1 RSA3 : 3rd Resources Sharing Agreement. See Annexe 2

Exceptional accrual MSF Belgium took a provision of 2.3 Mio€ to cover the existing risk of not being able to resell an overstock still at MSF Supply from our Ebola operations. This has an impact on our result (booked under extraordinary expenses), but could be partially reversed in 2016 according to the volume sold.

Private income still increasing thanks to more regular donors gained due to MSF involvement during Ebola crisis Total private income amounted to 311.6 Mio€ in 2015, so 23% (+58.2 Mio€) better than budgeted, and +6% (+16.4 Mio€) compared to 2014, whereas 2014 showed already an increase of 35% compared to 2013. The Ebola crisis response put MSF under the spotlight and obviously allowed most of the Fundraising teams to increase their base of regular donors, enabling a boost on the existing commitments and automatic donations without much extra fundraising investment. At budget time, in October 2014, the full effect of the Ebola crisis on our private income was still not totally predictable. So budgeted private income was underestimated at that time. The increase was however monitored through forecasting process during the year.

Public Institutional Income on target In 2015, MSF Belgium and its Partner sections collected 32.9 Mio€ from Public Institutions such as governments and EU funds. This is a increase +1 Mio€ compared to the budget but a decrease of -5.9 Mio€ versus 2014, following a decision to lower the coverage of our Program field expenses by Public Institutional income : a maximum target of 15% coverage was set for 2015 (17% in 2014).

Final result: a surplus of 22.8 Mio€ As the incomes increased more than the expenses, MSF Belgium ended 2015 with a surplus of 22.8 Mio€, +6.5 Mio€ above budget.

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The table below summarizes the results of MSF Belgium for 2015 in respect with the budget 2015 and the actuals of 2014.

MSF Belgium 2015 (K€)

Actuals

2015

Budget

2015

variance % var

% share

Actuals

2015

% share

Budget

2015

Actuals

2014

variance % var

Total Social Mission 314.667 257.729 56.938 22% 95% 94% 249.039 65.628 26%

Total other expenses 16.709 15.997 712 4% 5% 6% 16.544 165 1%

Total Expenses (K€) 331.377 273.726 57.650 21% 265.584 65.793 25%

Public Institutional Income 32.904 31.950 954 3% 9% 11% 38.282 -5.378 -14%

Private Income 311.583 253.346 58.237 23% 88% 87% 295.189 16.394 6%

Total Other Income 9.279 4.766 4.513 95% 3% 2% 6.596 2.683 41%

Total Incomes (K€) 353.766 290.062 63.704 22% 340.067 13.699 4%

Net exchange gain (+) / loss (-) 424 0 424 1.138 -714

Results MSFB (K€) 22.814 16.336 6.478 40% 75.621 -52.807 -70%

2. Expenditure MSF Belgium 2015 (K€)

EXPENSES

Actuals

2015

Budget

2015

variance % var

% share

Actuals

2015

% share

Budget

2015

Actuals

2014

variance % var

Programme expenses 261.085 225.334 35.751 16% 79% 82% 220.350 40.735 18%

Headquarters program support 22.483 18.224 4.259 23% 7% 7% 17.517 4.966 28%

Support other OC's 18.000 0 18.000 - 5% 0% 0 18.000 -

Subsidies South Africa 1.884 1.791 93 5% 1% 1% 1.484 400 27%

Brazil Expenses under MSFB 8.417 9.851 -1.434 -15% 3% 4% 7.613 804 11%

Temoignage, Raising Awareness and CAME 2.648 2.365 283 12% 1% 1% 1.876 772 41%

Other humanitarian activities 152 164 -12 -8% 0% 0% 200 -49 -24%

Total Social Mission 314.667 257.729 56.939 22% 95% 94% 249.039 65.628 26%

Fundraising 5.475 6.190 -715 -12% 2% 2% 4.883 592 12%

Management, General & Administration 6.299 6.807 -508 -7% 2% 2% 7.725 -1.426 -18%

Extraordinary expenses 4.936 3.000 1.936 65% 1% 1% 3.937 999 25%

Total other expenses 16.709 15.997 712 4% 5% 6% 16.544 165 1%

Total Expenses (K€) 331.377 273.726 57.651 21% 265.584 65.793 25%

Total MSF Belgium expenditure in 2015 amounted to 331.4 Mio€

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The expenses are divided over two main headings: the MSF “social mission expenses” and “other expenses”. The social mission expenses (314.7 Mio€) covers all operational expenditure in the various countries, i.e. Program expenses (261.1 Mio€) which are field missions costs. It includes as well the medical, logistical, human resources and operational services delivered by the head office in Brussels to support the activities on the field (i.e. Headquarters program support) amounting to 22.5 Mio€. In 2015, we had to respond to two major crisis: the continuation of the Ebola emergency and the Refugees & migrants crisis which conducted to the set-up of a task

2 This amount includes the Brazilian office expenses for a total of 8.4 Mio€

(versus 7.6 Mio€ in 2014 and 9.9 Mio€ in budget 2015).

force at headquarters level in order to regroup necessary expertise and personnel to manage the operational and communication issues and workload. The social mission also consists of an annual subsidy for functioning expenses of the MSF South African section (1.9 Mio€ in 2015) and Brazilian offices expenses (8.4 Mio€). It also includes 2.7 Mio€ expenditure for other temoignage, raising awareness and information campaigns aimed at the Belgian public, and a share in the Access to Essential Medicines Campaign managed at international level (168 k€ already included in the 2.7 Mio€). Moreover, MSF Belgium, together with the other MSF sections, contributes to the ‘Drugs for Neglected Diseases Initiative’ (152 k€ reported under Other Humanitarian Activities). “Other expenses” (16.7 Mio€) are showing a small increase of +0.2 Mio€ compared to 2014 and +0.7 Mio€ compared to the budget. It includes fundraising expenses

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(5.5 Mio€) to raise private income in Belgium. MSF Belgium spent less than budgeted (-0.7 Mio€) as a decision to moderate FR investments in 2015 was taken by the Core ExCom for all sections. Other expenses cover also general HQ functioning costs (6.3 Mio€) decreasing with -1.4 Mio€ versus 2014 or -0.5 Mio€ versus the budget, mainly driven by less contribution to the International Office than foreseen, the move to the new HQ building being done and a shift to HQ Program support (0.8 Mio€ Logistics direction & resources management to be considered as HQ program support expenses to be consistent with the MSF Gaap rules at international level).

Finally other expenses comprise extraordinary expenses (4.9 Mio€) which are in fact : - salaries expenses and related expenses re-invoiced to other OC’s for Belgian expatriates not working for an OCB mission but for another MSF section or Operational Center (for which the compensating income is reported under Other income). - provisions made for risks on the field or any other specific item such as the provision of 2.3 Mio€ to cover the existing risk of not being able to resell an overstock still at MSF Supply from our Ebola operations.

3. Incomes MSF Belgium 2015 (K€)

INCOMES

Actuals

2015

Budget

2015

variance % var

% share

Actuals

2015

% share

Budget

2015

Actuals

2014

variance % var

Public Institutional Income 32.904 31.950 954 3% 9% 11% 38.282 -5.378 -14%

Belgium 42.312 37.300 5.012 13% 12% 13% 47.063 -4.751 -10%

OCB Partner sections 189.117 157.460 31.658 20% 53% 54% 166.313 22.804 14%

non OCB sections 80.154 58.586 21.568 37% 23% 20% 81.813 -1.659 -2%

Total Private Income 311.583 253.346 58.237 23% 88% 87% 295.189 16.394 6%

Total Other Income 9.279 4.766 4.513 95% 3% 2% 6.596 2.683 41%

Total Incomes (K€) 353.766 290.062 63.704 22% 340.067 13.699 4%

Net exchange gain (+) / loss (-) 424 0 424 1.138 -714

Results MSFB (K€) 22.814 16.336 6.477 40% 75.621 -52.807 -70%

Total incomes 2015 for MSF Belgium amounted to 353.8 Mio€, +22% (+63.7 Mio€) compared to the budget and +4 % (+13.7 Mio€) compared to 2014.

We distinguish 3 types of incomes :

- Incomes from private donors and legacies. This is the largest source of incomes for MSF Belgium representing 88% of its total incomes in 2015. MSF Belgium is consolidating full private income from the Belgian donors, net incomes from OCB partner sections (Italy, Sweden, Norway, Denmark, Luxemburg, Hong Kong, South Africa, Brazil) and grants from some non OCB sections incomes (USA, UK and Germany mainly). Total private income amounted to 311.6 Mio€ in 2015, so +23% (+58.3 Mio€) better than budgeted, and +6% (+16.4 Mio€) compared to 2014, whereas 2014 showed already an increase of 35% compared to 2013. The Ebola crisis put MSF under the spotlight and obviously allowed Fundraising to increase their base of regular donors, enabling a boost on the existing commitments and automatic donations without much extra fundraising investment.

- Private income from the Belgian donors reached 42.3 Mio€ in 2015. It is 4.7 Mio€ less income than in 2014 (as 2014 was exceptional because of the donor response to

the Ebola crisis) but it is +5 Mio€ above budget. The difference with budget is due to legacies reaching 10 Mio€ in 2015 (+2 Mio€ in comparison with budget) and to 2.9 Mio€ Ebola incomes raised in 2014 by MSF Italy, MSF Sweden and MSF Belgium that have been deferred under MSF Belgium to cover Ebola expenses in 2015. OCB partner sections generated +22.8 Mio€ more private income than last year (+14%), and +31.7 Mio€ (+20%) more than budgeted. The variances versus 2014 come from Sweden (+7.8 Mio€), Hong Kong (+6.4 Mio€), Brazil (+5 Mio€) and Italy (+3 Mio€). The increase compared to the budget is a little different : Sweden +9.8 Mio€, Hong Kong +9.3 Mio€ and Norway +7.7 Mio€. The exchange rates fluctuation had a positive effect of +2.6 Mio€ compared to the budget. This is mainly linked to the US dollar (+4.6 Mio€) and the Hong Kong dollar (+5.1 Mio€) although counterbalanced by the weakness of Brazilian Real (-5.9 Mio€) and Norvegian Kroon (-2.2 Mio€).

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Private income from other sections (“non OCB sections” heading) decreased with 1.6 Mio€ compared to 2014 but were +21.6 Mio€ over the budget, of which +11.7 Mio€ from MSF USA, +5.2 Mio€ from MSF UK/Ireland and 2.7 Mio€ from MSF Germany. It includes a positive exchange rate effect of 6.1 Mio€ (maily from USD and GBP). We could also count on earmarked incomes of 1.3 Mio€ from other sections like Greece, Spain, Czech Office, Canada, and Switzerland. Finally MSF Belgium accounts also have under their incomes part of program expenses in Afghanistan booked through our accounts but invoiced to Operational Center Paris (OCP) and Operational Center Amsterdam (OCA). - Incomes from public institutional donors, i.e. governments’ institutions funding part of OCB operations on the field. They represent 9 % of MSF Belgium total incomes in 2015 (versus 11% in the budget and 10% in 2014). This is in accordance with the decision

to lower the coverage of our Program field expenses by Public Institutional income, the effective coverage in 2015 is 13.3%. while it was 17% in 2014. The main institutional donors are the Belgian government & institutions (7.8 Mio€), the European Union (5 Mio€), Swedish Government (4.6 Mio€), Norwegian Government (4.4 Mio€). Our institutional incomes decreased with -5.4 Mio€ compared to 2014, mainly from the European Union -4.8 Mio€ (-50%) and UK (DFID) -1.7 Mio€. The high level of institutional funds in 2014 was mainly triggered by the OCB’s response to the Ebola crisis.

- The other income amounting to 9.3 Mio€ relates essentially to re-invoiced staff, expenses or supply from KSU to other MSF sections (7.7 Mio€), but also to the miscellaneous incomes from the HQ building (rental, cantine & parking), to subsidies (for the Haïti Tabare hospital construction mainly).

The positive result amounts to 22.8 Mio€ at year-end 2015, i.e. -52.8 Mio€ less than the prior year and +6.5 Mio€ more than budgeted.

4. 2015 Result allocation and balance sheet

MSF Belgium centralizes most of the surpluses and deficits of the OCB group. The surpluses are allocated to the reserves and will be used to fund programs (either emergencies or Aids) and will therefore be spent entirely according to these purposes which are part of MSF Social Mission. The OCB board, which is constituted of representatives from the boards of all OCB partner-sections , approves any allocation of these funds to programs.

MSF Belgium accounting reserves are presented as follows, with a total of 234 Mio€ accumulated surplus & equity capital as of December 31

st, 2015:

EQUITIES & ALLOCATED FUNDS (Mio€)

2011 2012 2013 2014 2015

I. EQUITY CAPITAL 60.000 60.000 60.000 60.000 60.000

II. ACCUMULATED SURPLUS 49.880 46.954 75.590 151.211 174.025

Accumulated Surplus/Deficit 61.180 49.880 46.954 75.590 151.211

Surplus / Deficit of the year -11.300 -2.926 28.636 75.621 22.814

TOTAL RESERVES 109.880 106.954 135.590 211.211 234.025

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Here is below the balance sheet of MSF Belgium as of December 31st

, 2015.

ASSETS Actuals

2015

Actuals

2014 varianceLIABILITIES Actuals

2015

Actuals

2014 variance

I. FIXED ASSETS 41.654 37.219 4.435 I. EQUITY CAPITAL 60.000 60.000 0

Intangible 174 258 -84

Tangible 24.010 23.188 822 II. ACCUMULATED SURPLUS 174.025 151.211 22.814

Leasing 0 0 0 Accumulated Surplus/Deficit 151.211 151.211 0

Financial 17.470 13.773 3.697 Surplus 2015 22.814 22.814

II. LONG TERM RECEIVABLES 581 5.710 -5.129

Other receivables 581 5.710 -5.129 III. SUBSIDIES 0 568 -568

III. CURRENT ASSETS 237.884 231.108 6.775 IV. PROVISIONS 5.729 4.038 1.691

Stocks 44 57 -13

Debtors under 1 year 85.227 109.728 -24.501 V. CREDITORS 40.365 58.219 -17.855

Short term investments 42.812 25.046 17.766 Over 1 year 6.414 13.844 -7.430

Liquid Assets 108.720 95.721 12.999 Under 1 year & other 18.607 17.668 938

Other 1.081 557 524 Other 15.344 26.707 -11.363

TOTAL ASSETS 280.119 274.037 6.082 TOTAL LIABILITIES 280.119 274.037 6.082

MSF Belgium - Balance sheet 2015 (k€)

The MSF Belgium balance sheet is composed by the following accounts :

Assets - The fixed assets. This balance mainly represents the

head office and its material, as well as the financial participation in MSF Supply, the cooperative which supplies most of the medical and logistic material to the field. In 2015, MSF Belgium gave an additional loan to MSF Supply for 3.3 Mio€.

- The long term receivables. Since 2014, the institutional contracts signed before the 31

st December of the

current year and related to the coming years are accounted for in the balance sheet. This means that institutional donors are engaged to provide 0.6 Mio€ of income in more than 1 year (as Unitaid will end at the end of 2016, that account decreased considerably compared to 2014).

- The current assets include claims to be paid within the year by governmental donors and other MSF sections, as well as legacies to be received, HQ stocks, i.e. mainly books, and cash on bank accounts. On December 31

st,

2015, MSF Belgium has 6.7 Mio€ more current assets than in 2014, with a shift between lines from debtors under 1 year towards deposits in banks and available as cash to finance projects (see Short term investments and Liquid assets = 161.5 Mio€). This is a result of an improved follow up of cash flow and transfers of incomes from our sections and institutional donors.

Liabilities - The equity capital (60 Mio€). - Including the surplus from 2015 of 22.8 Mio€, the

accumulated surplus amounts to 174 Mio€. - Subsidies are back to 0 Mio€, as it was related to the

deferred earmarked funds raised from MSF-Italy and MSF-UK in 2011 for Haiti hospital construction in Tabarre allocated over the same period as the construction depreciation (over 5 years of which 2015 was the last year).

- Provisions for risks (5.7 Mio€), includes as every year the provision for the holiday allowances for the staff in the missions (1.8 Mio€ for 2015). The provision to cover the risks to have bank accounts blocked in Ukraine (1 Mio€) was released, but MSF Belgium took a provision of 2.3 Mio€ to cover the existing risk of not being able to resell an overstock still at MSF-Supply from our Ebola operations (risk for not selling the extra Ebola stock). This has an impact on our result (booked under extraordinary expenses), but could be potentially reversed in 2016 depending on what will be eventually sold.

- Creditors balance (40.4 Mio€) is mainly composed by debts towards other MSF sections and MSF Supply, as well as commercial debts and provisions for social security. Creditors over 1 year amount to 6.4 Mio€, with a decrease of 7.4 Mio€ as a consequence of the ending of a 3 years contract with DGD and the reimbursement to MSF Luxemburg of 2 Mio€. The “Other creditors” decrease by -11.4 Mio€ is mainly explained by the Unitaid contract coming to an end in 2016 and for which our debt towards other OC’s decreased.

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5. OCB Results 2015 and indicators OCB profit and loss accounts should not be approved by the General Assembly and are provided for information only. They are similar on many points with MSF Belgium accounts. The main differences lie in the facts that:

- HQ expenses of partner sections are included in the combined OCB accounts; - Private income raised from partner sections are shown as 100% under the incomes, whereas under MSF Belgium

accounts it is only the net incomes (net incomes = partner section incomes less its expenses) - as defined and agreed within the Resources Sharing Agreement II at MSF movement level, Operational Center

Amsterdam (OCA) received in 2015 20% from Sweden‘s net income and 30% from Hong Kong’s net income. This amount is mentioned under OCB social mission expenses as Support to other OC’s & 3

rd parties, whereas in MSF

Belgium accounts it does not appear; - as it is a consolidation view the inter-sections flows are eliminated, i.e. inter-sections re-invoicing, inter-sections grants

(ex. South Africa subsidy); - it follows the MSF GAAP rules defined at MSF movement level.

Presenting OCB group combined accounts enable to view the total incomes and the total costs of all OCB sections (not possible when we look at the MSF Belgium accounts only) and therefore enable to follow OCB’s Social mission and London ratio’s more accurately than at MSF Belgium level.

5.1 OCB Expenses

(in K€) 2015

Budget

2015

Actuals

2015 Actuals <>

Budget 2015

Δ%

2014

Actuals

2015 Actuals <>

Actuals 2014

Δ%

Programs - OCB Missions - Base Projects 155.527 169.269 13.741 9% 150.368 18.901 13%

Programs - OCB Missions - Copro 57.473 77.578 20.105 35% 63.651 13.927 22%

OCB Missions Expenses Total 213.000 246.847 33.847 16% 214.018 32.828 15%

Programs - Support to other OC's & 3rd parties16.407 37.850 21.443 131% 15.365 22.485 146%

International fund 146 131 -15 -10% 416 -285 -68%

HQ program support ** 23.992 27.400 3.408 14% 23.028 4.371 19%

Other Temoignage ** 8.471 8.056 -415 -5% 7.224 832 12%

Access to Essential Medicines Campaign** 1.056 1.090 34 3% 427 663 155%

Other Humanitarian Activities (DNDI) 941 926 -15 -2% 929 -4 0%

SOCIAL MISSION Total 264.012 322.298 58.286 22% 261.407 60.891 23%

Fundraising ** 47.855 41.459 -6.396 -13% 38.116 3.343 9%

Management, G&A ** 14.091 13.343 -747 -5% 14.586 -1.242 -9%

Contribution to IO ** 3.286 2.800 -486 -15% 2.217 583 26%

Extraordinary expenses 2.017 2.017 2.017

OTHER EXPENSES Total 65.232 59.620 -5.612 -9% 54.919 4.701 9%

EXPENSES Total 329.244 381.918 52.674 16% 316.326 65.592 21%

for information :

HQ Expenses ** 98.751 96.165 -2.586 -3% 85.597 10.568 12%

IO Expenses (CAME/DNDI/Contribution/Int'al fund) 5.428 4.946 -482 -9% 3.989 957 24%

In 2015, the total OCB expenses ended at 381.9 Mio€, with +52.7 Mio€ (+16%) compared to the budget, notably due to an increase of 33.8 Mio€ (+16%) on OCB Missions expenses, an increase on the Program support to other OC’s of +21.4 Mio€ (+131%) and a decrease of -5.6 Mio€ (-9%) on non-Social mission expenses, mainly in fundraising. The increase of the support to other OC’s is explained on one hand by the support to Operational Center Barcelona (OCBA) program expenses (grant of 18 Mio€) according to the decision taken in March 2015 by the FullExcom to rebalance the level of the reserves between all Operational Centers (OC’s). On the other hand, as the Hong Kong incomes were 10.7 Mio€ higher than budgeted (of which 5 Mio€ due to the exchange rate efffect), its support to OCA of 30% increased with +2.7 Mio€ compared to the budget.

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OCB - Ratio's

2015

Budget

2015

Actuals

2015 Actuals <>

Budget 2015

Δ

%

2014

Actuals

2015 Actuals <>

Actuals 2014

Δ

%

SOCIAL MISSION 264.012 322.298 58.286 22% 261.407 60.891 23%

OTHER EXPENSES 65.232 59.620 -5.612 -9% 54.919 4.701 9%

TOTAL EXPENSES 329.244 381.918 52.674 16% 316.326 65.592 21%

Social Mission ratio 80,2% 84,4% 82,6%

2015

Budget

2015

Actuals

2015 Actuals <>

Budget 2015

Δ

%

2014

Actuals

2015 Actuals <>

Actuals 2014

Δ

%

HQ Expenses 98.751 96.165 -2.586 -3% 85.597 10.568 12%

Non HQ Expenses 230.493 285.753 55.260 24% 230.728 55.025 24%

TOTAL EXPENSES 329.244 381.918 52.674 16% 316.326 65.592 21%

London ratio 30,0% 25,2% 27,1%

The Social Mission ratio and the London ratio help to monitor the cost structure. According to the international agreement, the Social Mission ratio should represent more than 80% of the total expenses. It consists of the social mission expenses compared to the total expenses. For 2015, the Social mission ratio (or Chantilly ratio) reaches 84.4%. It is better than budgeted, and exceptionally high as the growth of our Operational expenses on the field and the grant to OCBA of 18 Mio€ inflated considerably the social mission expenses while HQ

expenses decreased noticeably thanks to less investments in fundraising in all our sections. The London ratio calculates the weight of HQ expenses from all OCB partner sections on the total OCB expenses. The OCB Board requires that the London ratio remains below 30%. In 2015, OCB ended with 25.2%, which again is better than foreseen in the budget. This is also a consequence of a lot more operational expenses on the field combined with less fundraising expenses than budgeted.

5.1.1 Operational Expenses in 2015

The total operational expenses reached a total of 246.8 Mio€ in 2015 or +33.8 Mio€ versus the budget 2015. The increase is mainly explained by the high level of emergencies in 2015, despite the decrease of expenses related to Ebola projects. The increase compared to 2014 reaches +32.8 Mio€ or +15%. The growth of Programme expenses therefore reached again a very high level in 2015 after a significant growth already in 2014. Over the last two years the growth of Programme expenses reached +79.3 Mio€ or +47.4%. The growth of Operational expenses between 2014 and 2015 is to be mainly explained by:

The increase of expenses related to emergencies. The total expenses of programmes managed by the Emergency Pool and by Task Forces set up to manage emergencies reached in 2015 a total of 80.1 Mio€ or 33.9% of Programme expenses

3.

In Mio€ 2014* 2015* Var. Var. (%)

Cells 143,1 155,9 12,8 8,9%

Emergency Pool 53,8 80,1 26,3 48,9%

Total 196,9 235,9 39,1 19,8%

(*) Excluding transversal Programme expenses.

3 Excluding transversal Programme expenses (transversal Programme expenses account for 11 M€ in 2015)

K€

2015

Budget

2015

Forecast

2015

Actuals

2015 Actuals <>

Forecast 2015

Δ

%

2015 Actuals <>

Budget 2015

Δ

%

2014

Actuals

Δ

%

Programs - OCB Missions - Base Projects 155.527 165.581 169.269 3.688 2% 13.741 9% 150.368 13%

Programs - OCB Missions - Copro 57.473 74.300 77.578 3.278 4% 20.105 35% 63.651 22%

OCB Missions Total 213.000 239.881 246.847 6.966 3% 33.847 16% 214.018 15%

K€

2015

Budget

2015

Forecast

2015

Actuals

2015 Actuals <>

Forecast 2015

Δ

%

2015 Actuals <>

Budget 2015

Δ

%

2014

Actuals

Δ

%




K€

2015

Budget

2015

Forecast

2015

Actuals

2015 Actuals <>

Forecast 2015

Δ

%

2015 Actuals <>

Budget 2015

Δ

%

2014

Actuals

Δ

%




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Emergencies - main variances between 2014 and 2015 in Mio€4

IncreasesLebanon / Syria 4,7

4,7

New emergenciesEurope Migrants 23,6

Ukraine 12,4

Nepal 4,3

Madagascar 1,9

42,2

DecreasesEbola -18,2

Lybia -0,8

-19,0

Closed in 2014Philippine -4,8

A weaker Euro versus US Dollar and other local currencies: the exchange rate variation impact accounted for a growth of +8.9 Mio€ of Programme expenses (or 26% of the total growth between 2014 and 2015).

Expenses of some regular missions also increased significantly.

Regular mission - variances above 2 Mio€ between 2014 and 2015 (in Mio€)5

IncreasesDRC 8,2

Haiti 3,0

CAR 2,6

South Africa 2,1

5.1.1.1 Main emergencies in 2015

Although Ebola related programmes decreased by 18.2 Mio€ compared to 2014 (35.4 Mio€), they remained one of the main emergencies in the first half of 2015. The intervention for migrants in Europe and in the Mediterranean Sea accounted for about 30% of the Emergency Pool / Task forces expenses in 2015. Other significant emergency interventions comprised: Syria / Lebanon (17.6 Mio€ in 2015, + 4.7 Mio€ compared to 2014 mainly due to the increase of donations programmes from Lebanon and Turkey to support medical structures in Syria) and Ukraine (12.4 Mio€ mainly consisting in donations of medical and logistic material and supplies as well as medical activities in the conflict area).

Expenses in Mio€ Actuals 2015Europe Migrants 24,1 24,1

Ebola Response 18,3 18,3

Syria / Lebanon 17,6 17,6

Ukraine 12,4 12,4

Pool d'urgences Congo (PUC) 8,8 8,8

Nepal 4,3 4,3

Madagascar 1,9 1,9

Election Violences Burundi 1,5 1,5

Lybia 1,2 1,2

Flood Sanjey Malawi 1,0 1,0

Cholera Mozambique 0,9 0,9

Tanzania 0,3 0,3

5.1.1.2 Programme expenses broken down by nature

Programme expenses can be categorized by the nature of the costs as follow :

- Expatriates costs include salaries, per diem, health and pension insurances;

- National staff costs include the salaries and employer’s taxes of MSF staff under local contract and well as the cost of

national MOH staff partially paid by MSF;

4 Excluding exchange rate impact 5 Excluding exchange rate impact

9

- Medical purchases include purchase of drugs, vaccines, small medical supplies, laboratory supplies and equipment, medical

equipment, etc.;

- Logistics costs include purchase of all logistic equipment, material, supplies and services (purchase and rental of cars and

other means of transportation, spare parts, fuel, non-food relief items and temporary shelters distributed to

beneficiaries, construction material, equipment and subcontracted construction works, IT and communication equipment

and costs, water and sanitation material & equipment, etc.;

- Supply costs include international (air and sea) and local freight costs as well as local custom taxes and clearance costs;

- Administration costs include rental and maintenance of premises (including accommodation for expatriates, rental of

offices, warehouses and other facilities) including utilities, stationaries and small supplies, international and domestic

travel costs, daily workers, local taxes, professional services. Please note: because of the implementation of the new

international chart of accounts in 2015, administration costs reported for the previous years are not fully comparable

with 2015.

In spite of the increasing importance of emergencies over the last two years, the cost structure of Programme expenses seem to have remained fairly stable since 2012. The main noticeable trends over the period are: the slight decrease of the proportion of the staff cost (both national staff and expatriates), which moved down from 40.3%

in 2012 to 35.8% in 2015;

the slight increase of logistic purchases in the last two years.

Cost structure of programme expenses – 2012 to 20156

Evolution of Programme expenses by nature from 2012 and 2015 (in Mio€)7

6 Excluding transversal Programme expenses 7 Excluding transversal Programme expenses

10

5.1.1.3 Quality of Programme expenses budget & forecast Like in 2014, the overall quality of the forecast for Programme expenses can be considered as satisfactory as the budget overrun has been properly anticipated. As early as in June, projections enabled to forecast the overspending versus budget.

Evolution of Programme expenses forecast (in Mio€)

For programmes managed by Operational Cells, the quality of 2015 budgets has also increased in comparison with 2014. The historical tendency to overestimate resources needed to carry out planned activities in the project budgets was indeed not observed in 2015. Actual expenses are indeed 8.1 Mio€ above budget for Cells, the variance being mainly related to the exchange rate impact. Forecast for those programmes was accurate already in June.

Evolution of Programme expenses forecast – Cells only (in Mio€)

11

5.1.1.4 Typology of OCB operations

In 2015 OCB operations were run in more unstable contexts than in 2014: 21% in armed conflict countries, 6% in post-armed conflict countries and 29% in countries with internal instability, leading to a total of 56% of Programme expenses spent in unstable contexts. Due to the fact that in 2014 OCB put a very large part of its resources on the Ebola crisis the share in stable context reached 56%. Whereas in 2015, many programmes were set up to address the Refugees crisis (Greece, search and rescue at sea, Serbia,…), to give support to Syrian population through Lebanon and to intervene in other humanitarian crises such as in Ukraine, Central African Republic, South Sudan, Afghanistan, etc.

In 2014, resources put on the Ebola crisis increased the percentage of our operational expenditures dedicated to populations affected by endemic/epidemics reaching 34%. This share decreased to 19% in 2015, since the Ebola epidemia crisis resorbed during the beginning 2015 and due to the evolution of the refugees’ crisis and the many more conflicts mentioned before where OCB implemented programmes. So 32% of our expenditures in 2015 were dedicated to populations in armed conflict. For the population affected by natural disaster it refers to OCB missions in Nepal, Niger, Madagascar, Malawi, Pakistan and the continuity of the mission in Haïti.

12

5.1.2 HQ expenses breakdown evolution

(K€) 2014

Actuals

2015

Budget

2015

Actuals

Actuals 2015

<> Budget %

Actuals 2015

<> 2014 %

HQ program support 23.028 23.992 27.400 3.408 14% 4.371 19%

Other Temoignage 7.224 8.471 8.056 -415 -5% 832 12%

Access to Essential Medicines Campaign 427 1.056 1.090 34 3% 663 155%

Fundraising 38.116 47.855 41.459 -6.396 -13% 3.343 9%

Management, G&A 14.586 14.091 13.343 -747 -5% -1.242 -9%

Contribution to IO 2.217 3.286 2.800 -486 -15% 583 26%

Extraordinary expenses 2.017 2.017 2.017

HQ Expenses Total OCB 85.597 98.751 96.165 -2.586 -3% 10.568 12%

(K€) 2014

Actuals

2015

Budget

2015

Actuals

Actuals 2015

<> Budget % EUR

Actuals 2015

<> 2014 %

Non FR Total OCB 47.481 50.895 54.706 3.811 7% 7.225 15%

FR Total OCB 38.116 47.855 41.459 -6.396 -13% 3.343 9%

HQ Expenses Total OCB 85.597 98.751 96.165 -2.586 -3% 10.568 12%

OCB Missions Expenses Total 214.018 213.000 246.847 33.847 16% 32.828 15%

The HQ Expenses reached in 2015 96.2 Mio€ for the entire OCB group. This is lower than the initial budget (-2.6 Mio€), mainly due to fundraising expenses (-6.4 Mio€ versus budget) and despite an increase in HQ program support expenses (+3.4 Mio€ - due to Refugees Task force and the need to reinforce the support to growing operations in the field: recruitment & HR administration for the field, plus medical, logistics, ICT and financial support to operations). The exceptional provision of 2.3 Mio€ to cover the overstock from Ebola overalls at MSF Supply also impacted the non-fundraising costs in 2015 (see extraordinary expenses). The contributions to the International Office in Geneva and to the Access Campaign to Essential Medicines amounted to 3.8 Mio€ for all OCB sections, which is -0.45 Mio€ than budgeted but +1.2 Mio€ compared to 2014. Each section in the MSF movement is contributing to the funding of the

International Office and the CAME in proportion of the private incomes the section raised during the previous year. Management & General Administration costs are lower than budgeted with -0.7Mio€ driven mainly by Italy and Belgium. Although the other temoignage and raising awareness costs increased compared to last year, it is below the budget by -0.4 Mio€. Compared to the previous year, the HQ expenses increased with +10.6 Mio€ (+12%), partly in fundraising with +3.3 Mio€ (as foreseen in the budget 2015) and HQ program Support +4.4 Mio€ and again the extraordinary provision for the stock at MSF Supply. Although OCB HQ expenses increased compared to 2014, it is noticeable that OCB HQ Expenses decreased by 3% compared to the budget while in the same time OCB missions expenses were higher than the budget (+16%).

OCB HQ expenses evolution vs OCB Missions expenses evolution (% growth versus prior year)

13

The next chart represents the evolution over the last 10 years of OCB HQ expenditure breakdown per type of section (Operational section (MSF Belgium), OCB partner sections (6), South Africa and Brazil, and International Office (IO)). The percentage represents the London ratio, i.e. the proportion of these HQ costs compared to overall OCB expenses. The London ratio remains under control, i.e. under 30% over the years.

In 2015, we reached 25.2%, better than the last years, linked to a higher increase of the OCB operational expenses than the HQ expenses. It is also noticeable that the HQ costs of our partner sections increased between 2006 and 2015 faster than MSF Belgium or Brazil and South Africa up to 44 Mio€. This increase in HQ costs of OCB partner sections are essentially fuelled by fundraising investments, although lower than initially budgeted (see next chapter).

14

5.1.2.1 Evolution of Fundraising expenses by section

OCB fundraising expenses split by section are presented below.

Section

2014

Actuals

2015

Budget

2015

Actuals

Actuals 2015

<> budget % % LC

exchange

rate effect

other

effect

Actuals 2015

<> 2014 % % LC

Belgium 4.883 6.190 5.731 -459 -7% -7% -459 848 17% 17%

Brazil 5.605 8.022 5.903 -2.119 -26% -11% -1.209 -910 298 5% 25%

South Africa 597 960 914 -46 -5% -2% -28 -18 317 53% 51%

Italy 8.038 8.236 8.417 181 2% 2% 181 380 5% 5%

Luxembourg 560 619 523 -96 -15% -15% -96 -37 -7% -7%

Hong Kong 3.621 4.185 3.933 -251 -6% -17% 450 -701 313 9% -9%

Singapore 271 156 -115 -43% -47% 11 -126 156

Taiwan 286 180 -106 -37% -43% 19 -124 180

Denmark 3.114 3.545 3.122 -423 -12% -12% -6 -417 8 0% 0%

Norway 5.408 7.760 6.573 -1.187 -15% -11% -356 -832 1.165 22% 30%

Sweden 6.292 7.780 6.007 -1.773 -23% -22% -56 -1.717 -285 -5% -2%

Fundraising Total OCB 38.116 47.855 41.459 -6.396 -13% -1.176 -5.221 3.343 9% The fundraising expenses in 2015 are lower than budgeted (-6.4 Mio€), in almost all sections but Italy (due to a change in the allocation of overhead costs). The main variances are in Brazil (-2.1 Mio€, representing -11% in local currency) of which more than the half of the decrease is due to an exchange rate effect, Sweden (-1.8 Mio€, representing -22% in local currency) and Norway (-1.2 Mio€, representing -11% in local currency). However compared to last year, the fundraising expenses increased with +3.3 Mio€, mainly in Norway (launch of Artistgalla 2015 for recruitment of new regular donors) and Belgium (Funding unit costs allocated on fundraising and telemarketing activities put on hold in 2014 to reduce the fundraising investments). The graph below shows the evolution of the fundraising expenses between 2014 and 2015 by section.

15

5.1.2.2 Evolution of non-fundraising expenses by section

OCB non-fundraising expenses (in K€) split by section are presented below..

Section

2014

Actuals

2015

Budget

2015

Actuals

Actuals 2015

<> Budget 2015 % % LC

exchange

rate effect

other

effect

Actuals 2015

<> 2014 % % LC

Belgium 26.469 27.397 32.437 5.040 18% 18% 5.040 5.968 23% 23%

Brazil 2.433 2.991 2.853 -138 -5% 15% -575 437 420 17% 39%

South Africa 1.595 1.166 1.267 101 9% 12% -39 139 -328 -21% -22%

Italy 4.583 5.272 4.614 -657 -12% -12% -657 31 1% 1%

Luxembourg 1.386 1.615 1.541 -75 -5% -5% -75 154 11% 11%

Hong Kong 2.621 3.368 3.133 -234 -7% -18% 359 -593 513 20% 0%

Singapore

Taiwan 134 43 -91 -68% -71% 4 -96 43

Denmark 2.094 1.977 2.073 96 5% 7% -35 131 -21 -1% -1%

Norway 2.761 3.240 3.177 -63 -2% 4% -190 127 415 15% 23%

Sweden 3.539 3.736 3.568 -168 -5% -3% -58 -111 29 1% 4%

Non FR Total OCB 47.481 50.895 54.706 3.811 7% -533 4.344 7.225 15% OCB non-fundraising expenses in 2015 are higher than budgeted (+3.8 Mio€), mainly because of the exceptional provision for the stock at MSF Supply (Ebola personal protection equipment – for 2.3 Mio€) and because of HQ Program Support costs in Belgium. The difference with budget in Italy (-0.66 Mio€) is due to the spread of their overhead costs based on FTE’s (as all other sections do) combined with less Contribution to the International Office and less Other Temoignage costs than foreseen. In Brazil, the increase of the non-fundraising costs (+437K€) is counterbalanced by a positive effect of the Brazilian Real devaluation (-575K€) leading to a net effect of -138K€. Hong Kong non-fundraising costs decreased with -234K€ coming from an effective decrease of their costs (-593 K€) but counterbalanced by a negative effect of the Hong Kong Dollar (+359K€). Compared to last year, non-fundraising expenses increased by +7.2 Mio€ (+15%), mainly in Belgium (on HQ Program Support). Brazil, Norway and Hong Kong. The graph below shows each OCB partner section cost structure for non-fundraising expenses in 2015. As the MSF Belgium section is an operational centre it is shown separately, because it is not comparable with the other sections.

Non-fundraising expenses by OCB section in 2015 (K€)

16

5.2 OCB Incomes

(in K€)

2014

Actuals

2015

Budget

2015

Actuals

Actuals 2015

<> budget % EUR

Actuals 2015

<> 2014 % EUR

Total OCB sections 268.138 263.121 296.659 33.538 13% 28.521 11%

Total NON OCB sections 71.041 47.705 68.610 20.905 44% -2.431 -3%

Total Private Incomes OCB 339.179 310.826 365.268 54.443 18% 26.089 8%

% of Total Incomes 88,6% 90,2% 91,3%

Institutional Incomes 38.282 31.950 32.904 954 3% -5.378 -14%

OCB Mission Expenses 214.018 213.000 246.847 33.847 16% 32.828 15%

% institutional funding 17,9% 15,0% 13,3%

Total Income 382.930 344.542 400.034

% of Total Incomes 10,0% 9,3% 8,2%

Other incomes 4.374 1.766 1.861 95 5% -2.513 -57%

Total OCB Incomes 382.930 344.542 400.034 55.492 16% 17.104 4% OCB total incomes reached 400 Mio€ in 2015, which is 55.5 Mio€ (+16%) above budget and 17.1 Mio€ (+4%) more than in 2014. In 2015, 91% of OCB incomes are from private donors amounting to 365.3 Mio€, of which OCB Partner sections raised all together 296.7 Mio€ (+33.5 Mio€ or +13% versus budget), and non OCB partner sections 68.6 Mio€ (+21 Mio€ or +44% versus budget). This is again exceptionally higher than budgeted (+54.4 Mio€ or +18%) as the total impact of new regular donors gained due to MSF exceptional visibility during the Ebola crisis was not known at the moment the budget was done (October 2014). Although 2014 was already exceptionally high, private income OCB are +26.1 Mio€ higher than last year. The private income was in 2015 better monitored than in 2014 through improved forecasting process during the year with OCB sections. This process should be further facilitated with the implementation end 2015 of a common OCB fundraising tool for budgeting and forecasting private incomes. This is a learning process implying both fundraising and financial teams in all OCB sections from which OCB hopes to gain better visibility and predictability on private income. Institutional income for OCB in 2015 amounted to 32.9 Mio€, so +1 Mio€ more than budgeted, but -5.4 Mio€ less than in 2014. Other income is almost in line with budget, and less than in 2014 where the selling of the former Belgian HQ building in Brussels (Jette) had brought an exceptional income. Looking at how operations field expenses were funded in 2015, 13% is covered by Public Institutional funds, 28% is paid by non OCB sections private income (MSF USA, MSF UK and MSF Germany mainly ), 16% is funded by earmarked private income raised by OCB partner sections and the rest (43%) comes from non-earmarked funds from OCB partner sections.

17

5.2.1 OCB private income contributors

OCB Private income 2015 share by section

The 5 main OCB private income contributors in 2015 were Sweden with 57 Mio€, followed by Italy with 52.3 Mio€, Hong Kong with 45.1 Mio€, Belgium with 44.2 Mio€ and USA with 40.4 Mio€. The major increase compared to 2014 came from Hong Kong with +11.3 Mio, including an exchange rate effect as in local currency it increased with +11% versus +33% in Euro. Sweden also increased with +6.3 Mio€ (+13%), and Brazil with +4.2 Mio€ (+17%) despite the weakness of the Brazilian Real. Norway increased with +2.7 Mio€ compared to 2014, which is less than it could have been if the Norwegian Kroon had not weakened (+24% in local currency versus +7% in Euro). The only decreases in incomes come from Luxemburg -0.8 Mio€ due to the fact that 2014 was exceptional with Ebola incomes, and South Africa with -0.5 Mio€ (South African Rand has been weak, and the fundraising market remains difficult). This is a detail of OCB private income by section, with the percentage variance expressed in Euro and in local currency (%LC).

(in K€)

2014

Actuals

2015

Budget

2015

Actuals

Actuals 2015

<> budget % EUR % LC

exchange

rate effect

FR & other

effect

Actuals 2015

<> 2014 % EUR % LC

Belgium 43.809 37.300 44.203 6.903 19% 19% 6.903 394 1% 1%

Brazil 24.891 30.818 29.058 -1.760 -6% 14% -5.951 4.192 4.167 17% 38%

South Africa 2.010 1.673 1.512 -160 -10% -7% -46 -114 -497 -25% -26%

Italy 49.765 50.907 52.284 1.377 3% 3% 1.377 2.519 5% 5%

Luxembourg 6.344 5.397 5.576 179 3% 3% 179 -769 -12% -12%

Hong Kong 33.804 34.601 45.112 10.511 30% 15% 5.161 5.351 11.308 33% 11%

Taiwan 221 522 301 137% 112% 54 248 522 0%

Singapore 98 55 -43 -44% -48% 4 -47 55 0%

Denmark 19.106 17.172 20.800 3.628 21% 21% -40 3.667 1.694 9% 9%

Norway 37.865 33.835 40.617 6.782 20% 27% -2.199 8.980 2.752 7% 24%

Sweden 50.544 51.100 56.921 5.820 11% 12% -530 6.350 6.376 13% 16%

Total OCB sections 268.138 263.121 296.659 33.538 13% -3.548 37.086 28.521 11%

USA 36.321 28.737 40.431 11.694 41% 25% 4.613 7.081 4.110 11% -2%

UK 14.414 11.316 15.360 4.044 36% 22% 1.513 2.531 946 7% -4%

Germany 12.502 7.652 10.334 2.682 35% 35% 2.682 -2.168 -17% -17%

Non-OCB MSF-other 7.804 2.485 2.485 2.485 -5.319 -68%

Total NON OCB sections 71.041 47.705 68.610 20.905 44% 6.126 14.779 -2.431 -3%

Total Private Incomes OCB 339.179 310.826 365.268 54.443 18% 2.578 51.865 26.089 8% As previously mentioned, the Ebola crisis increased considerably the private income raised in all sections in 2014 but it also allowed most of the Fundraising teams to increase the base of regular donors, enabling a boost on the existing commitments and automatic donations without much extra fundraising investment. At budget time, in October 2014, the full effect of the Ebola crisis on our private income was still not known. As a consequence budgeted private income was underestimated. This increase was monitored through quarterly forecasting process together with OCB partner sections.

OCB sections = 296.7 M€ Non OCB = 68.6 M€

18

5.2.2 Institutional donors in 2015

2015

Budget

2015

Actuals

2015 Actuals <>

Budget 2015

Δ

%

2014

Actuals

Δ

%

Institutional income 31.950 32.904 954 3% 38.282 -14%

OCB Missions expenses 213.000 246.847 33.847 16% 214.018 15%

% institutional funding 15,0% 13,3% 18,8% 17,9%

target 15% 15% 17%

% of Total income 9,3% 8,2% 10,0%

OCB institutional income in 2015 amounted to 32.9 Mio€, so +1 Mio€ more than budgeted, but -5.4 Mio€ less than in 2014, as it was decided to decrease the Public Institutional income coverage in 2015 down to 15% of OCB missions expenses. This is reflected in the decreases on public institutional income from EU (ECHO), Sweden and UK (DFID). The chart below represents the distribution of the contributors of the OCB institutional income. The main contributors for 2015 are Belgium for 7.8 Mio€, the European Union for 5 Mio€, Sweden with 4.6 Mio€ and Norway with 4.4 Mio€. “Others” comprises for 2015 Canada (2 Mio€) and Luxemburg (1.2 Mio€).

19

5.3 OCB Results 2015

(in K€) 2015

Budget

2015

Actuals

2015 Actuals <>

Budget 2015

Δ%

2014

Actuals

2015 Actuals <>

Actuals 2014

Δ%

INCOMES Total 344.542 400.034 55.492 16% 382.930 17.104 4%

SOCIAL MISSION Total 264.012 322.298 58.286 22% 261.407 60.891 23%

OTHER EXPENSES Total 65.232 59.620 -5.612 -9% 54.919 4.701 9%

EXPENSES Total 329.244 381.918 52.674 16% 316.326 65.592 21%

Net exchange gains/losses (+ / -) 1.353 1.353 49 1.304 2679%

NET RESULTS 15.298 19.469 4.171 27% 66.653 -47.184 -71%

In 2015, OCB results generated a surplus of 19.5 Mio€, which is +4.2 Mio€ above budget. Compared to 2014, it is -47.2 Mio€ less. OCB did increase its social mission expenses with +58.3 Mio€ compared to the budget, and +60.9 Mio€ versus prior year which was already exceptionally high with the Ebola emergency response. This increase is directly linked to the many humanitarian crisis for which MSF went to help the suffering populations (Nepal earthquake, the Syrian conflict and its displaced population, the Refugees crisis and the search and rescue at sea for migrants on boats, the conflict in Ukraine, Central African Republic, South Sudan, etc). While responding to so many crisis, OCB was still able to continue on most of its stable missions like in Congo, Afghanistan (despite the bomb attack on our Kunduz hospital), Zimbabwe, South Africa, Malawi, Kenya etc. But this was only possible thanks to all generous donors who enable OCB to raise at least enough incomes to cover those increasing expenses. And even more, as OCB raised 400 Mio€ which is more than its expenses but also the first time that the 400 Mio€ bar is reached. Donors continue to trust and support MSF work and are willing to give OCB the means to pursue its important social mission: provide assistance to population in distress, to victims of natural or man-made disasters and to victims of armed conflict.

20

2015

Actuals

2016

Budget

Budget 2016 <>

Actuals 2015

%

EUR

Belgium 44.203 39.401 -4.802 -11%

Brazil 29.058 31.389 2.331 8%

South Africa 1.512 1.550 38 3%

Italy 52.284 52.149 -135 0%

Luxembourg 5.576 5.870 294 5%

Hong Kong 45.112 45.872 760 2%

Taiwan 522 789 268 51%

Singapore 55 281 226 413%

Denmark 20.800 19.986 -814 -4%

Norway 40.617 38.913 -1.704 -4%

Sweden 56.921 63.555 6.635 12%

Total OCB sections 296.659 299.755 3.096 1%

USA 40.431 36.899 -3.532 -9%

UK 15.360 14.620 -740 -5%

Germany 10.334 9.189 -1.145 -11%

Non-OCB MSF-other 2.485 -2.485 -100%

Total NON OCB sections 68.610 60.708 -7.902 -12%

Total Private Incomes OCB 365.268 360.463 -4.805 -1%

% of Total Incomes 91,3% 94,2%

Institutional Incomes 32.904 20.545 -12.359 -38%

OCB Mission Expenses 246.847 256.815 9.969 4%

% institutional funding 13,3% 8,0%

Total Income 400.034 382.462

% of Total Incomes 8,2% 5,4%

Other incomes 1.861 1.454 -408 -22%

Total OCB Incomes 400.034 382.462 -17.572 -4%

5.4 OCB Initial budget 2016

Total incomes budget 2016 is fixed at 382.5 Mio€, which is 17.6 Mio€ (-4%) lower than actuals 2015.

- 4.8 Mio€ in the Private income, with some sections showing an increase compared to the actuals 2015 (mainly Sweden +6.6 Mio€, Brazil +2.3 Mio€, Hong Kong +0.7 Mio€) and others decreasing (Belgium -4.8Mio€ (mainly because 2015 includes 2.9 Mio€ deferred incomes and 2015 legacies higher by 2 Mio€ than the budget 2016); Norway -1.7 Mio€ (as the Haaken Legacy ended in 2015); Denmark -0.8 Mio€); Non OCB partner sections -7.9 Mio€);

- 12.4 Mio€ in Public Institutional funds (coverage of 8% of the Field operation expenses);

- 0.4 Mio€ in other income.

The budgeted total expenses for 2016 increase with +3.9 Mio€ (+1%) compared to 2015, with +2 Mio€ on the social mission expenses and +1.9 Mio€ on other expenses. HQ expenses increase with +4.8 Mio€ (+5%) and International Office related expenses increase in the budget 2016 by +1.5 Mio€ compared to 2015. 2016 OCB budget presents a level of operations by 10.0 Mio€ higher than the 2015 actual Program field expenses, so increasing by 4%. The decrease of the Support to other OC’s is essentially due to the Support to OCBA of 18 Mio€ that occurred in 2015 and that is not budgeted in 2016, although we know at the moment of this report that we will support program expenses of OCP (Paris) through a grant of 9 Mio€ in 2016, as a consequence of the reserves balance mechanism.

Also noticeable, OCB budget 2016 foresees an increase compared to the actuals 2015 in the HQ Program support with +1.2 Mio€ (mainly in Belgium), other temoignage with +1.5 Mio€ (mainly in Hong Kong +0.6 Mio€, Belgium +0.4 Mio€ and Italy +0.2 Mio€) and fundraising expenses with +2.3 Mio€. Fundraising increases are mainly in Hong Kong +0.9 Mio€, Sweden +0.8 Mio€, Denmark +0.6 Mio€, Brazil +0.5 Mio€ and there is a decrease in Norway for -0.7 Mio€. Also the contribution to the International Office increases with 1.3 Mio€ versus actuals 2015.

Finally, 2016 OCB consolidated budget presents a net deficit of -3.4 Mio€.

21

OCB - Ratio's

2016

Budget2015

Actuals

2016 Budget <>

2015 Actuals

Δ

%

SOCIAL MISSION 324.330 322.298 2.032 1%

OTHER EXPENSES 61.544 59.620 1.925 3%

TOTAL EXPENSES 385.875 381.918 3.957 1%

Social Mission ratio 84,1% 84,4%

2016

Budget2015

Actuals

2016 Budget <>

2015 Actuals

Δ

%

HQ Expenses 100.972 96.165 4.807 5%

Non HQ Expenses 284.903 285.753 -850 0%

TOTAL EXPENSES 385.875 381.918 3.957 1%

London ratio 26,2% 25,2%

2016

Budget2015

Actuals

2016 Budget <>

2015 Actuals

Δ

%

Institutional income 20.545 32.904 -12.359 -38%

OCB Missions expenses 256.815 246.847 9.969 4%

% institutional funding 8,0% 13,3%

target 8% 15%

% of Total income 5,4% 8,2%

(in K€) 2016

Budget

2015

Actuals

2016 Budget <>

2015 Actuals

Δ%

Private income 360.463 365.268 -4.805 -1%

Public institutional income 20.545 32.904 -12.359 -38%

Public institutional income other sections

Other income 1.454 1.861 -408 -22%

INCOMES Total 382.462 400.034 -17.572 -4%

Programs - OCB Missions - Base Projects 175.115 169.269 5.846 3%

Programs - OCB Missions - Copro 81.700 77.578 4.122 5%

OCB Missions Expenses Total 256.815 246.847 9.969 4%

Programs - Support to other OC's & 3rd parties 26.961 37.850 -10.889 -29%

International fund 192 131 61 47%

HQ program support ** 28.607 27.400 1.207 4%

Other Temoignage ** 9.556 8.056 1.500 19%

Access to Essential Medicines Campaign ** 1.265 1.090 176 16%

Other Humanitarian Activities (DNDI) 935 926 9 1%

SOCIAL MISSION Total 324.330 322.298 2.032 1%

Fundraising ** 43.766 41.459 2.308 6%

Management, G&A ** 13.685 13.343 341 3%

Contribution to IO ** 4.093 2.800 1.293 46%

Extraordinary expenses 2.017 -2.017 -100%

OTHER EXPENSES Total 61.544 59.620 1.925 3%

EXPENSES Total 385.875 381.918 3.957 1%

Net exchange gains/losses (+ / -) 1.353 -1.353

NET RESULTS -3.412 19.469 -22.881 -118%

for information :

HQ Expenses ** 100.972 96.165 4.807 5%

IO Expenses (CAME/DNDI/Contribution/Int'al fund) 6.485 4.946 1.539 31%

(in K€) 2016

Budget

2015

Actuals

2016 Budget <>

2015 Actuals

Δ%

Private income 360.463 365.268 -4.805 -1%



Other income 1.454 1.861 -408 -22%

INCOMES Total 382.462 400.034 -17.572 -4%











Fundraising ** 43.766 41.459 2.308 6%

Management, G&A ** 13.685 13.343 341 3%




EXPENSES Total 385.875 381.918 3.957 1%


NET RESULTS -3.412 19.469 -22.881 -118%

for information :

HQ Expenses ** 100.972 96.165 4.807 5%


(in K€) 2016

Budget

2015

Actuals

2016 Budget <>

2015 Actuals

Δ%

Private income 360.463 365.268 -4.805 -1%



Other income 1.454 1.861 -408 -22%

INCOMES Total 382.462 400.034 -17.572 -4%











Fundraising ** 43.766 41.459 2.308 6%

Management, G&A ** 13.685 13.343 341 3%




EXPENSES Total 385.875 381.918 3.957 1%


NET RESULTS -3.412 19.469 -22.881 -118%

for information :

HQ Expenses ** 100.972 96.165 4.807 5%


(in K€) 2016

Budget

2015

Actuals

2016 Budget <>

2015 Actuals

Δ%

Private income 360.463 365.268 -4.805 -1%



Other income 1.454 1.861 -408 -22%

INCOMES Total 382.462 400.034 -17.572 -4%











Fundraising ** 43.766 41.459 2.308 6%

Management, G&A ** 13.685 13.343 341 3%




EXPENSES Total 385.875 381.918 3.957 1%


NET RESULTS -3.412 19.469 -22.881 -118%

for information :

HQ Expenses ** 100.972 96.165 4.807 5%


As a consequence, the London ratio in 2016 is 26.2%, a little higher than in 2015 but remaining far below the maximum target of 30%. The Social Mission ratio reaches 84.1% in the budget 2016, again above the OCB minimum target of 80%.

Brussels, May 2016

22

Annexe 1

23

24

25

Annexe 2

In order to facilitate the comprehension of the OCB figures consolidated, you will find a small glossary.

26

Documents

MSF Belgium Financial statements 2015 · MSF Belgium & OCB Finance department 1. Highlights on Profit and loss accounts 2015 Social mission expenses increasing In 2015, MSF Belgium