September 2017 Management Accounts

Council

Annual Conference 20172

Summary9 Months

Actual9 Months Budget Variance -YTD

IncomeNormal Income 3,262,598 3,627,134 (364,535)Olympic Income - 1,360,605 (1,360,605)Total Income 3,262,598 4,987,739 (1,725,140)

ExpenditureDirect costs 2,878,780 3,135,457 (256,677)

Olympics & Paralympics 122,504 177,250 (54,746)Total Direct Costs 3,001,284 3,312,707 (311,423)

AdministrationAdministration 1,850,047 1,980,109 (130,062)Exceptional Items 396,474 460,000 (63,526)Total Administration Costs 2,246,521 2,440,109 (193,588)

Total Expenditure 5,247,806 5,752,816 (505,011)

Operational Surplus/(Deficit) (1,985,207) (765,078) (1,220,129)Exchange Gains/(Losses) (744,520) 0 (744,520)Surplus / (Deficit) (2,729,727) (765,078) (1,964,649)

Annual Conference 20173

Income

9 months Actual

9 MonthsBudget

Subscriptions 306,602 305,200Olympic receipts 0 1,360,605Special event income 1,377,839 1,070,030Investment income 1,177 74,574Other income 267,881 311,739Sponsorship 1,309,100 1,865,591Total £3,262,598 £4,987,739

0 500,000 1,000,000 1,500,000 2,000,000

Subscriptions

Olympic receipts

Special event income

Investment income

Other income

Sponsorship

9 Months Budget 9 months Actual

Annual Conference 20174

Expenditure

9 months Actual

9 MonthsBudget

Governance 451,134 309,203Olympic costs 159,918 222,250Special event cost 1,435,200 1,477,527Other Direct costs 952,351 1,303,727Employment Costs 1,184,016 1,524,925Other Administrative Costs 666,031 455,185Exceptional Items 396,474 460,000Total £5,247,806 £5,752,816

0 500,000 1,000,000 1,500,000 2,000,000

Governance

Olympic costs

Special event cost

Other Direct costs

Employment Costs

Other Administrative Costs

Exceptional Items

9 Months 9 months Actual

Annual Conference 20175

Account Name Company £

Short Term Investments < One Year IOM 0NW Business a/c UK 88,507NW Current a/c IOM 293,955NW Fixed Capital IOM 33,276NW Capital Res a/c IOM 0NW Foreign Currency Account IOM 7,111,379IEM Current a/c Events 67,178IEM multi currency a/c Events 500,774Paypal Accounts Events 19,674Petty Cash UK 82Total 8,114,824

Currency HeldAUD 1,233CAD 1,443EURO 641,115GBP 641,558NZD 28,894USD 6,800,581Total 8,114,824

Short term reserves

2018 BudgetCouncil

Annual Conference 20177

2017-2020 Quad Approved 11/162017 2018 2019 2020 2017-2020BUDGET BUDGET BUDGET BUDGET Forecast£ £ £ £ £

OPERATING INCOME

Subscriptions 305,200 305,200 305,200 305,200 1,220,800Olympic receipts 1,360,605 0 0 10,825,753 12,186,359Income from special events 298,373 1,148,373 298,373 573,373 2,318,491Investment Income 116,318 130,761 83,574 69,533 400,186Other Income 420,350 420,350 420,350 420,350 1,681,400Sponsorship 2,504,091 2,850,000 2,875,000 3,370,909 11,600,000

Total Income 5,004,937 4,854,684 3,982,497 15,565,118 29,407,236

DIRECT COSTS

Governance 422,353 422,353 422,353 422,353 1,689,412Olympic Costs 260,000 360,000 260,000 585,000 1,465,000Special Events 1,175,347 1,302,036 1,230,077 1,270,590 4,978,050Other Direct Costs 1,653,000 1,501,500 1,539,500 1,607,075 6,301,075Sponsorship 244,000 199,000 199,000 199,000 841,000

Total Expenditure 3,754,700 3,784,889 3,650,930 4,084,018 15,274,537

ADMINISTRATIVE COSTS

Employment costs 1,911,566 2,007,144 2,107,501 2,212,876 8,239,088Other Administrative costs 657,746 657,746 657,746 657,746 2,630,984

Total Administrative Costs 2,569,312 2,664,890 2,765,247 2,870,622 10,686,072

Fair Value Adjustments / Exceptional Items 460,000 0 0 0 460,000

DEFICIT FOR THE YEAR BEFORE TAXATION -1,779,075 -1,595,095 -2,433,680 8,610,477 2,986,627

TAXATION CHARGE 0 0 0 0

SURPLUS / (DEFICIT) FOR THE YEAR -1,779,075 -1,595,095 -2,433,680 8,610,477 2,986,627

Annual Conference 20178

2018-2020 Budget Review• Key factors

• After an extensive research and benchmarking exercise, London was selected as the new location for the World Sailing Executive office

• Significant initiative to move the Executive office from Southampton to London after 20 years• Office move brought additional one-off approved costs amounting to £490k (excluding capital

expenditure) in staff restructuring, relocation and also the replacement of an ageing technology infrastructure

• 2017 also saw an increase in the new Board activities as a consequence of it being the first working year of the new Board. In addition increased costs of the mid-year meeting and conference. Total governance costs are forecast to have increased by £447k in 2017

• The commercial strategy has begun to bear fruit with 4-year Tier 1 sponsorship deals signed with SAP, Volvo and Rolex worth £4.3m and a healthy pipeline of further commercial partners developing to ensure we are well placed to achieve our commercial targets for the quadrennial

• However, Gazprom have exercised their right to terminate the sponsorship agreement at the end of 2017

Annual Conference 20179

2018-2020 Overview• Some reductions in activity and a more conservative approach to staffing in

2018-2020 is required whilst we replace Gazprom sponsorship revenues• Commercial income plan scrutinsed and we remain confident at this time that

this plan is achievable

Annual Conference 201710

2017-2020 Quad New 11/172017 2018 2019 2020 2017-2020

Reforecast Reforecast Reforecast Reforecast Reforecast

£ £ £ £

OPERATING INCOME

Subscriptions 307,000 307,200 316,394 316,394 1,246,988Olympic receipts 0 0 0 12,236,608 12,236,608Income from special events 1,617,078 2,712,250 1,343,331 1,518,331 7,190,990Builders/technical fees 258,100 272,000 312,000 314,000 1,156,100Other Income 191,203 228,750 229,250 229,250 878,453Sponsorship 1,989,100 2,825,542 3,421,542 3,997,542 12,233,725

Total Income 4,362,481 6,345,742 5,622,516 18,612,124 34,942,864

DIRECT COSTS

Governance 1,110,760 711,100 671,100 671,100 3,164,060Olympic Costs 100,000 148,600 143,000 443,000 834,600Special Events 2,525,619 3,436,513 2,005,553 2,005,553 9,973,239Other Direct Costs 1,657,377 1,991,750 1,862,750 1,938,750 7,450,627Sponsorship

Total Expenditure 5,393,756 6,287,963 4,682,403 5,058,403 21,422,526

ADMINISTRATIVE COSTS

Employment costs 1,638,957 2,247,251 2,269,698 2,362,133 8,518,039Other Administrative costs 912,646 1,112,641 1,081,089 1,088,011 4,194,387Depreciation 179,803 82,755 82,700 82,700 427,958

Total Administrative Costs 2,731,406 3,442,647 3,433,486 3,532,844 13,140,384

Exceptional Items 489,923 0 0 0 489,923

Surplus / (Deficit) for the year before taxation -4,252,604 -3,384,868 -2,493,374 10,020,876 -109,969

TAXATION CHARGE 0 0 0 0

SURPLUS / (DEFICIT) FOR THE YEAR -4,252,604 -3,384,868 -2,493,374 10,020,876 -109,969

CONSOLIDATED INCOME STATEMENT

Quad Income Comparison 11/16 Vs 11/17

Annual Conference 201711

-

4,000,000

8,000,000

12,000,000

16,000,000

2017-20 New 2017-20-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2017-20 New 2017-20

Sponsorship

Other Income

Income from special events

Olympic receipts

Subscriptions

Quad Direct Costs Comparison 11/16 Vs 11/17

Annual Conference 201712

0

4,000,000

8,000,000

12,000,000

16,000,000

20,000,000

Old 2017-2018 New 2017-2018

Comm/Mrkt/Sponsors

Training/Devel/Technical

Events

Olympics

Committes, Board meetings & Conference

0

4,000,000

8,000,000

12,000,000

Old 2017-2018 New 2017-2018

Quad Administration Costs Comparison 11/16 Vs 11/17

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Old 2017-20 New 2017-20

Bank & Invstm chargesDepreciation

IT (hrdw/sftw/mainten)

Printing & Postage

Office Running Costs/UtilitiesOffice Costs - Rent, rates, etcProfessional/Insurance/Legal FeesTravel

Staff salaries/NI/pension

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

Old 2017-20 New 2017-20

Annual Conference 201713

Annual Conference 201714

2018 OverviewCONSOLIDATED INCOME STATEMENT 2018

OPERATING INCOMESubscriptions 307,200Olympic receipts 0Income from special events 2,712,250Builders/technical fees 272,000Other Income 228,750Sponsorship 2,825,542Total Income 6,345,742

DIRECT COSTSGovernance 711,100Olympic Costs 148,600Special Events 3,436,513Other Direct Costs 1,991,750Sponsorship 0Total Expenditure 6,287,963

ADMINISTRATIVE COSTSEmployment costs 2,247,251Other Administrative costs 1,112,641Depreciation 82,755Total Administrative Costs 3,442,647

SURPLUS / (DEFICIT) FOR THE YEAR -3,384,868

Annual Conference 201715

2018 Income

2017 2018Subscriptions 307,000 307,200Olympic receipts 0 0Special event income 1,617,078 2,712,250Builders/technical fees 258,100 272,000Other income 191,203 228,750Sponsorship 1,989100 2,825,542Total £4,362,481 £6,345,742

5%

0%

43%

4%

4%

45%

0% 20% 40%

Subscriptions

Olympic receipts

Special Events Income

Builders/Technical Fees

Other income

Sponsorship

Annual Conference 201716

2018 Direct Costs2017 2018

Committees, Board meetings & Conference 1,110,760 711,100Olympics 100,000 148,600Events 2,525,619 3,436,513Publications & Merchandise 15,000 25,000Builders & Technical Fees 70,500 99,750Broadcast, Marketing & Communications 490,000 264,000Website - Rebuild 20,000 165,000Training and Development 541,877 361,000Sustainability 40,000 50,000Paralympic Development 80,000 87,000Race Officials Programme 60,000 50,000Events Sport Impact & accreditation 55,000 40,000Sponsorship 285,000 850,000Total £5,393,756 £6,287,963

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2017 2018

Sponsorship

Events Sport Impact & accreditation

Other direct costs

Events

Olympics

Committes, Board meetings & Conference

2017 2018Employment costs 1,638,957 2,247,251Travel 28,776 32,700Professional, Insurance & Legal Fees 167,763 172,000Office Costs - Routine, rent, rates etc. 400,332 547,100Employee Benefits and HR administration 82,000 107,756Office Running Costs, utilities and communication 64,431 63,658Printing & Postage 15,000 16,000IT website/computer/hardware support & software licenses

125,000 144,027

Depreciation 179,803 82,755Bank Charges & Investment Charges 29,344 29,400

£2,731,406 £3,442,647

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Employment costs

Travel

Professional, Insurance & Legal Fees

Office Costs - Rent, rates, etc

Office Running Costs/Utilities

Printing & Postage

IT (hardware/software/mainten)

Depreciation

Bank Charges & Investment Charges

2018 2017

Annual Conference 201717

2018 Administration Costs

ISAF Trust ReportCouncil

Annual Conference 201719

Value at 30 September 2017

Value 30/09/2017 Value 30/09/2016

Baker Tilly IOM Trusts Ltd ATO ISAF Trust - EUR, IM10078 622,600 (Euros) 615,338 (Euros)

Baker Tilly IOM Trusts Ltd ATO ISAF Trust - GBP, IM10077 1,653,120 (GB Pounds) 1,658,310 (GB Pounds)

DebtorsCouncil

Annual Conference 201721

MNA Subscription Debtors at 31 October 2017

MNA Subscriptions Amount (GB£)Federacao Angolana de Vela 750 Botswana Yacht Racing Association 300 Federation Djiboutienne de Voile et des Sports Nautique 456 Iran Canoeing, Rowing and Sailing Federation 1,500 Kenya Yachting Association 300 Kosovo Sailing Federation 100 Macedonia Sailing Association 900 Madagascar Yachting and Rowing Squad 100 Mauritius Yachting Association 300 Nigeria Rowing Canoe and Sailing Federation 900 Yacht Racing Association DPR Korea 1,025 Federation Senegalaise De Voile 425 Federacion Venezolana de Vela 750 St Vincent and Grenadines Sailing Association 100 Sailing Association of Zimbabwe 100 Anguilla Sailing Association 100

Annual Conference 201722

Class Subscription Debtors at 31 October 2017

Class Subscriptions Amount (GB£)O'pen Bic Class Association 200 International Soto 40 Class 200 Nautor Holding Srl 200

Annual Conference 201723

Other MNA Debtors at 31 October 2017

Insurance Rio 2016 Olympic Games Amount (GB£)Cayman Islands Sailing Club 140 Malaysian Sailing Association 482 Trinidad & Tobago Sailing Association 258 Federacion Venezolana de Vela 263

Thank you