FINANCE PACKAGE - BOT 24 MAY 2018 TABLE OF CONTENTS 1. Preamble 2. - - PDF document

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FINANCE PACKAGE - BOT 24 MAY 2018 TABLE OF CONTENTS

1. Preamble 2. Main options to be validated in YE Forecast 2017-2018 3. Main V0 Budget Assumptions

• a. Income
• b. Expenses
• c. Campaign Funds
• d. Quai d’Orsay Cost and Financing
• e. 4Y P&L and Cash Forecast

4. Progress Reports on Projects Underway

• a. Faculty Working Conditions Negotiations
• b. RNCP Savings and ERP Financing
• c. Student Housing Project
• d. Rolling Campus Renovation Plan
• e. Permanently Restricted Funds investment

5. List of Appendices

• a. Budget 17-18 versus Forecast 17-18
• b. Budget 18-19 versus Forecast 17-18
• c. 4Y P&L and Cash Forecast
• d. Capital Budget
• e. Campaign Budget and Revenue
• f. Cash Position and Cash Chart as of End of April
• g. History of Premises
• h. Indebtedness at the End of the Campaign

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• 1. Preamble

The annual and three-year budget was particularly complex to build this year as many elements came together with varying degrees of uncertainty on multiple fronts. As for the RNCP: we obtained the certification and achieved a cost savings that began in December 18, this savings will be repeated every year for the duration of the certification. This economy is therefore recurrent and we can use it every year until we have reinvested that money in salaries. After this reinvestment, the amount of the savings will be consumed by a recurrent charge and will no longer be available. During the FY 17-18 we benefited from 7 months of cost savings and reinvested this savings in non- recurring expenses (the options we have taken in this respect are presented in paragraph 2 Main

• ptions to be validated on YE forecast 17/18).

For the 18-19 budget, however, as the President will explain in her report, we are going to reinvest

• ur savings in salaries after having finalized an agreement with the Unions Delegates (see paragraph

4.a RNCP and 4.b faculty working conditions). Therefore, we have decided to present a budget that includes the assumptions that can be easily measured and to generate a surplus sufficient to cover the salary measures that are being negotiated. This is why the V0 Budget is stands today at € 460,000. For the Campaign, Donors have been informed in the AUP Ascending flyer that overheads costs can be funded by gifts within the limit of 7% of gifts. Following the recruitment of a senior fundraiser and the extension of the campaign until 2023, the campaign costs will be from 18-19 onward financed by the operating result. Finally, a certain uncertainty as to the pace of collection of campaign funds and the final amount of the overage of the Quai d’Orsay renovation (as explained in paragraph 3.c) require to plan the future with a good level of security, which is why several costs which were initially planned to be funded by the Campaign Gifts, have been moved temporarily to the operating results. All of these points have been detailed as clearly as possible in the attached package to enable board members to measure the impacts of decisions made and those to be taken in the coming year.

• 2. Main Options to be Validated in YE Forecast 2017-2018

The Board and the BA Committee have been regularly informed of developments in the budget during the year and the most significant differences appear in Appendix 5.a. In addition to these, the following options will need BA Committee and Board approval for the YE Forecast 17.18. These

• ptions are already included in Appendix 5.a to make the resolutions easier to manage:
• Increase in the year-end bonus provision for all employees from 500 € to € 1000 gross per

employee (cost: 130 K€)

• Financing of a part of the overage of the Quai d'Orsay Renovation: + 265 K€

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• Taking over the financial costs of the Quai d'Orsay loan to reduce pressure on the gifts

collection pace: + 228k€

• Provision for charges related to a future retirement: + 430 K€ loaded (to be explained by the

Legal Committee to the Board)

• Provision to shorten the amortization period of our current CAMS software in anticipation
• f Board approval to acquire new software: 120 K€. This Board decision will only take place

if and when funds to purchase a new software will be available. If we take the decision to proceed this year, it is wise as it allows to spread the amortization over two years. These options were funded through a positive results above the original budget (revenue + 667 K€) and the use of the RNCP savings of 17-18 FY (724 K€).

• 3. Main V0 Budget Assumptions

All the figures below are taken from Appendix 5.b to which you can refer to for a better understanding (Budget Numbers 18-19 are compared to FY 17-18 Year End Forecast)

3.a/ Income: + 968 K€ Enrollment

Undergraduate Tuition + 1 678 K€

• 36 Additional FTEs + 1082 K€
• Tuition fee increase: 2.59 % from 29 320 € to 30 080 € = 704 K€ (including health fees)
• Additional Billing 17-18 - 109 K€

Summer Undergraduate Tuition + 176 K€

• 150 Additional credits (AUP students, visitors and COOP)

Graduate Tuition -319 K€: Minus 10 FTE Financial Aid 14.8 %: - 371 K€

• Yearly Budget 14.8 % and Forecast 14.3%
• Financial Aid on additional tuition fees

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Page 4 of 28 Other Revenue Assumptions

Other income: - 164 K€

• Student health insurance (now integrated into new tuition fees) - 112 K€
• Bookstore (minus sale income) - 51 K€
• Cultural Program (Same amount in expenses) + 33 K€
• Investment earnings -21 K€
• Miscellaneous - 13 K€

Gifts and Grants: + 66 K€

• Annual Giving (Corporate Sponsorships) + 66 K€

3.b/ Expenses: + 791 K€ Salaries: +76 K€

As we do each year, the leadership team meets several times to prioritize salary requests in 2 or 3 priority levels. In the V0 budget, only level-1 priorities are integrated, as we want to make sure that final numbers will allow for those expenses (Level-2 priorities are described below).

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Page 5 of 28 French salaries + 139 K€

• General salary raise 2%: +177K€
• Year-end bonus provision
• In July 18 for December 18: 1000 € per employee
• In July 19 for December 19: 500 € per employee : -130 K€
• Provision for Retirement in Forecast 17/18: - 283 K€ (still under discussion with the Legal

Committee)

• Academic Salaries other than General Raise: + 299 K€
• Promotions + 55 K€
• 8 new hires + 123 K€ (difference between current salaries and replacement

salaries, both loaded)

• Assessment staffing changes + 29K€
• Faculty workload adjustment (Addl CDDs and Overloads) + 93 K€
• Administrative salaries other than general raise + 228 K€
• Promotions + 38 K€
• 4 New hires + 119 K€
• New coordinator of learning and instructional design
• Web developer ITS
• New maintenance crew member
• New night guard for Quai d’Orsay
• Returns from leave of absence + 71 K€
• Allowance for retirement indemnities: - 152 K€ for 18-19

US Salaries + 154 K€

• US campaign salary moved to operational budget as French salaries were in 17/18: + 132 K€
• New admission counsellor full-time effect + 37 K€
• General and individual raise + 16 K€
• Retirement: - 31 K€

Social Charges: - 215 k€

New social charges rate of 53 % (in comparison to 63 % in FY 17-18) applied to salaries

Salaries Level 2:

(Those expenses will be included in the October Budget V1, depending on final revenue)

• Individual Bonuses + 22 K€
• Recruitment of new technologist (partially covered by Mellon grant): + 17 K€
• Raises + 6 K€

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Page 6 of 28 Other Expenses: + 715 K€ Premises: - 17 k€

Although the variation is negative, this actually represents an increase in the costs related to the

• pening of the Quai d'Orsay, but it is masked by the exceptional costs of 261 K€ borne in 17/18 to

finance the overage on the QO renovation (subject to Board approval), and the insurance cost for the renovation work (73 K€). The budget provides for the delivery of the Quai d'Orsay building at the end of 2018, beginning

• 2019. At that date, we plan to leave both Montessuy (Library) and Amelie (Bookstore), but we will

keep Pierre Villey until we are sure to obtain the 102 St Dominique ground floor space (our budget assumption is that we could rent at 650 € HT per square foot for the ground floor and 325 € HT for the basement).

Conferences, Travel & Entertainments + 177 K€

• Faculty Development + 15 K€
• Campaign Costs moved to operational expenses + 120 K€
• Bonding week-end for freshmen (common trip) + 25 K€
• Miscellaneous + 17 K€

Contingency & Depreciation + 441 K€

• Bookstore - 67 K€ (Last year provision rose to 75 K€)
• Depreciation new assets + 474 K€ (+ 421 K€ for Quai d’Orsay)
• Depreciation IRIS Project +34 K€ (Motion needed when ready to move)

Books, Database & Cultural Program + 176 K€

• IRIS Project Softwares + 94 K€ (Motion needed when ready to move)
• Other Software + 26 K€
• Cultural Program Export + 33 K€
• Library + 11 K€
• Miscellaneous + 12 K€

3.c/ Quai d’Orsay – Cost and Financing

Significant changes have been reflected in the financing plan below. They mainly concern: 1 / Campaign Costs, a large part of which is and will be now financed by operating result as described in the next chapter on Gifts. 2 / The financial costs of the Quai d'Orsay loan, which will be financed by the operating result for the next 3 years (17-18 to 19-20), whereas it was planned they were financed entirely by Gifts until 22-23, date of early refund. This choice was made to reserve the maximum amount of the gift collection during the renovation period for the financing of the building. It will be maintained as long as the result allows it.

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3/ The Renovation Costs: The real estate committee will have to ratify on the overall renovation budget which exceeds by 810 K€ the original budget (€ 712,000 for Orsay only and € 98,000 for harmonization work in Combes to be carried out at the same time). In the building financing plan, we have allocated this excess entirely to the € 1 million provision for risks that was purposely

• riginally created. The remaining unused amount of this provision is 189 K€. Funding is therefore

not affected by the overage. For information, this overage of 810 K€ appears in the numbers as part of the 17-18 operating budget for 265 K€ and as part of the assets in the 17-18 and 18-19 budget for 545 K€.

TOTAL COSTS BANK LOAN GIFTS SELF FINANCING (AUP OPERATING CASH) BOSQUET CASH Add : Loan K amortisation and remaining bank loan Building Costs 26 790 987 15 000 000 6 525 542 265 445 5 000 000 Purchase price including purchase costs 17 288 750 Renovation costs 8 057 921 Fixtures and Furnitures 1 255 000 Allowance for Risk and Upgrade during Renovation 189 316 Previous Renovations Funded through Campaign Gifts 256 747 256 747 Campaign Costs to the end of the Campaign 3 608 305 949 105 2 659 200 Other Campaign Performance Costs (loaded) 517 283 517 283 Moving costs/double rent + Interest between 2017 and 2023 2 499 162 1 904 069 595 093 Purchase price contribution

• 7 500 000

7 500 000 TOTAL 33 672 484 7 500 000 17 652 746 3 519 738 5 000 000 SOURCES OF FINANCING COST OF THE PROJECT QUAI D'ORSAY FINANCING PLAN

TIMING OF GIFTS USAGE To purchase the Building and Finance Renovation To Reimburse loan To finance Campaign costs and other abovementioned costs TOTAL GIFTS EFFECTIVELY USED FOR THE PROJECT Cumulated gifts available

• r expected

Carry over cash Position at the end of 07/2017

• 2,666,584
• 2,277,481
• 4,944,065

5,640,591 692,128 Jul-18

• 501,156
• 501,156

2,159,403 2,350,374 Jul-19

• 3,858,940
• 64,660
• 3,923,600

3,420,224 1,846,998 Jul-20

• 64,660
• 64,660

2,903,776 4,686,113 Jul-21

• 249,726
• 249,726

1,408,514 5,844,901 Jul-22

• 239,798
• 239,798

1,408,514 7,013,617 Jul-23

• 7,500,000
• 229,720
• 7,729,720

1,408,514 692,410 TOTAL

• 6,525,524
• 7,500,000
• 3,627,204
• 17,652,728

18,349,537

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Page 8 of 28 3.d/ Campaign Funds Campaign Revenue

To date, the total pledged for the campus renovation alone amounts to € 10,7m, of which € 5.6m was received at the end of July 2017. The balance of pledged amounts receivable between 2018 and 2023 amounts to € 5.1m. An amount of € 7.6 million for the campus remains to be subscribed by donors. This sum corresponds approximately to the planned prepayment to be made to the bank between 2022 and 2023. The Gifts Table has been revised by O&A to adjust the gifts collection rate to the new estimate, but this adjustment does not fundamentally change the trend anticipated previously, such that:

• Years 2020 to 2023 are those during which the collection to repay the loan will

happen;

• An amount of 2,1 M€ must be raised during the renovation period (years 2017-

2019) to avoid using the Bosquet cash. In case this sum is not collected in due time, the remaining cash available from the Bosquet sale, namely 2.9 M € could be used to bridge the gap, (but this situation is not ideal for the financial ratios

• f AUP). BA Committee has envisaged this possibility from the beginning.

Finally, the overage of the Quai d'Orsay renovation project for a total of € 810,000 (if approved by the RE Committee and the Board) will use the greater part of the provision for risk. of € 1 million, which was included in the original financial package.

Campaign Costs

Donors have been informed in the "Aup Ascending" flyer that campaign costs can be funded by gifts within the limit of 7% of gifts. Following the recruitment of a senior fundraiser and the extension of the campaign until 2023, the campaign costs are now supported by the operating result. The impact

• n the budget of the year 18-19 is 436 K

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Page 9 of 28 3.e/ 4Y P&L and Cash Forecast

As always per Board's request, the income assumptions are set to flat enrollment, so that the evolution of the revenue only takes into account the increase in tuition fees. Thus, and indeed, the same rule is applied to charges that increase slightly, except for the impact of any decisions made earlier and with future repercussions, or new strategic options. In this case the 3-year plan is based on the following detailed assumptions

• Tuition Fees: Based on a first benchmark analysis, Admission suggests that we implement no

more than a cost of living increase. The 3Y Plan will be prepared initially in accordance with this recommendation: a 1% for UG and nothing for GRAD.

• Salary Costs: the full cost of the Faculty working conditions new accord apply in 18/19;
• Premises: Assumption that we get and keep the 102 St Do ground floor;
• Financial Costs of the Quai d'Orsay loan, financed by operating result for the next 3 years

between (17-18 to 19-20);

• Contingency and Depreciation plan based on assets plan

During this period, the cash position remains in the range of 7 to 9 M€.

• 4. Progress Reports on Projects Underway

4.a/ RNCP Savings and ERP Financing

The savings on “taxe sur les salaires” resulting from the certification of our master’s degree MAGC by the RNCP comes in several steps.

CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS OTHER TOTAL

Parent donor 699 760 1 008 405 643 913 661 763 1 288 060 1 860 516 441 400 586 600 441 400 586 600 949 919 1 301 774 4 464 452 1 541 206 6 005 658 Trustees 676 042 678 668 646 272 661 274 1 061 887 1 064 370 601 282 601 282 811 865 811 865 195 626 195 626 26 051 841 051 4 019 025 20 112 3 611 937 Alumni 978 266 1 084 729 275 855 277 232 525 029 600 012 127 447 202 090 54 334 89 334 29 124 64 124 24 450 52 450 2 014 505 355 466 2 369 972 Friends 9 736 9 736 50 241 50 241 56 534 56 534 80 113 80 113 50 125 50 125 125 125 123 123 246 997 246 997

• ther small donors

16 749 16 749 308 1 199 17 057 891 17 948 Total Paid & Confirmed Gifts 1 680 793 1 789 882 1 672 436 1 998 352 2 287 363 2 382 678 2 096 903 2 744 002 1 357 724 1 537 924 666 276 846 476 1 000 543 2 195 398 10 762 037 1 917 675 13 494 711 Cumulative Totals 1 680 793 1 789 882 3 353 229 3 788 233 5 640 591 6 170 912 7 737 494 8 914 914 9 095 218 10 452 838 9 761 494 11 299 313 10 762 037 13 494 711 Prospective income (45 gifts and 175 prospects needed) Total Pledges and Gifts to be raised 62 500 137 500 2 062 500 2 937 500 2 237 500 3 262 500 3 225 000 6 175 000 7 587 500 4 925 000 12 512 500 Projected Annual Revenue: 1 680 793 1 789 882 1 672 436 1 998 352 2 287 363 2 382 678 2 159 403 2 881 502 3 420 224 4 475 424 2 903 776 4 108 976 4 225 543 8 370 398 18 349 537 6 842 675 26 007 211 Cumulative Totals 1 680 793 1 789 882 3 353 229 3 788 233 5 640 591 6 170 912 7 799 994 9 052 414 11 220 218 13 527 838 14 123 994 17 636 813 18 349 537 26 007 211

2014-2020

Year 3 Year 4 Year 5

2016-2017 2017-2018 2018-2019 2019-2020 2020-2023 2014-15 2015-16

Year 6 Year 7-9 CAMPAIGN TOTALS Year 0 & 1 Year 2

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Page 10 of 28 In 17/18, the recognition obtained in December allowed for an the economy of “taxe sur les

salaires” for the next 7 months of the FY. This saving is estimated at 724 K € in our budget. The use

• f this savings (which is a non-recurring use) is explained in paragraph 2. “Main options to be

validated in YE Forecast 2017-2018” to which you can refer.

In 18/19, we no longer pay this “salary taxes” over a full year and save an estimated cost of € 1.1

• million. The 17/18 budget provides that this savings which comes from both academic and

administrative salaries will be reinvested in a sustainable manner in salaries as follow: 1/ By some immediate Faculty salary equity adjustments (excluding promotions) (50 K€ loaded) and Administrative salary decisions for about 80 K € loaded ; 2/ After the signing of the Faculty Collective Bargaining Agreement:

• by granting a general salary increase of 2% (269 K € loaded) retroactive August 1st,
• through the revision of the salary scale of the professors and the salary compression within

the grids (460 K € loaded) retroactive to August 1st, 3/ The campaign costs’ inclusion within the expenses make up the remaining difference.

Soon, we should receive the retroactive part of the “taxe sur les salaires” that could amount to

between 15 months to 3 years of “taxe sur les salaires” paid, potentially amounting to between 1,4 M€ to 3,3 M€. Based on previous discussions with the BOT, it was agreed that the main part of this money should fund our new ERP project. We hope to hear back from the French Administration before the end of the FY 17-18.

4.b/ Faculty Working Conditions Negotiations

As will be disclosed in the President Report, we are advancing 3 working groups in parallel:

• One, a Task Force of Faculty that the Provost has invited to brainstorm with Management
• n the subject. The discussions concern both the possibility of raising the minimum salary

per rank, the reassessment of wages within the minimum grids and finally the transparency and readjustment of the teachers' workload;

• The second, between HR, the Provost, the VP Finance, the Assistant Dean for Academic

Affairs, and a consultant to calculate the impact of all our assumptions and propose innovative solutions to the Task Force;

• The last, which will start in late May, is formed by Management and Union delegates. The

Management is going to propose to the Union to approve a draft of a so called "Accord de Méthode": a document by which the management announces the context of the negotiations, its intentions, and, in agreement with the unions, sets the timetable for the

• negotiations. We have suggested that Faculty participating on the Task Force join the Union

Delegates.

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We anticipate official negotiations to take place during the next fiscal year, hoping that they will end before the end of the calendar year. We have promised next year’s raises to be retroactive to August 1st if the negotiations are concluded within the FY.

4.c/ Student Housing Project

We have all identified that we strongly rely on the provision of a student housing service and that

• ur development is closely tied to the maintenance of this service. Housing stock has been

determined to be both an Opportunity and a Threat. We have been able to conclude a partnership with COH that allows us to achieve this goal but that shows its limits because we do not pursue the same objectives and our interests diverge. In addition, the legal and fiscal setup of COH seems doubtful and could put us in danger if it were questioned. We therefore consider that risks incurred by AUP because of this partnership are strong and we are currently working on identifying alternative solutions:

• The first option we are considering is a “mid-to long-term” solution. It consists of investing, alone
• r accompanied by investors, in a rental property portfolio. The apartments acquired over the years

would be offered for rent to all but freshman returning students, since our contract with COH does not concern this population. When a critical stock of apartment is reached, we will switch to a direct rental by AUP or an external provider of the rest of the apartments. In all cases, the daily management, research and maintenance of the apartments would be entrusted to an external provider previously identified.

Advantages Disadvantages . AUP builds its real estate assets smoothly and its capital for the future; . The resources invested do not put the University at risk financially . The apartments reflect our choices and our brand . We control our risks . We remain linked to COH for a significant number of years . The relationship with COH is already tense and may deteriorate . This approach poses a risk to our business for a period that seems too long

For the development of this solution, we called on several experts:

• A consulting firm (8Advisory) that is currently developing the financial model that would

allow us to determine the profitability of the model and to adapt our acquisition rate and the progression of our debt level;

• A law firm (Ernst & Young) to validate the options and tax implications and the best legal

framework within which to work. As soon as we have good visibility on these first two points, we can quantify the investment required to offer our students the number of apartments we will not own (direct lease by AUP, new contract with COH or with a new supplier…).

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We think we will have made significant enough progress on this scenario to be able to present it to the Board in October. Ø In the second solution, AUP would directly and immediately rent the hundred apartments from the owners, rent them furnished to our students while subcontracting to a provider to provide research, management of the apartment’s vacancies, maintenance and provision of apartments to the students.

Advantages Disadvantages . Separation with COH would be immediate; . The risk of not controlling an activity that weighs heavily on our recruitment would be eliminated . We would be able to immediately control the management of apartments to better serve the student population . The immediate investment in the lease of a hundred flats, likely to be available for Fall Entry is

• significant. We estimate it at least 3 months’ rent

plus the deposit for a hundred apartments: about 800 K €, to which should be added the furnishing of

• apartments. In total the initial investment seems to

us to be of the order of 1 M € . There is no stepped progression in the control of risks and activity. We immediately support the risk

• f vacancy of our apartments

. We rely heavily on the professionalism of our provider.

Conclusion: Before moving to any direction, we recommend waiting for the final reports of the consulting firms mentioned above. 4.d/ Rolling Campus Renovation Plan We asked our architect to prepare a maintenance plan for all our buildings, based on the experience and knowledge he gained from our campus. He built the plan for a 20- year period that covers all renovation categories roofing, carpentry, etc…). The “Campus Renovation Plan” shows a minimum amount to be accrued each year for AND the years when repairs will be needed. We will compare the architect’s plan with that of depreciation and provisions recorded in the annual accounts based on French Accounting Gaap. If the provisions of the architect’s plan are lower, no additional provision will be made in the accounts; conversely, if they are higher, an additional provision will be made in the annual accounts. To date, of course, as the investments are recent, the amount of depreciation and provisions accrued for annually are high and we should not have to add additional provisions, but this will necessarily appear in the years to come.

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The amount of work appearing in the Campus Renovation Plan has been taken into account in the 3-year capital investment plan. It remains to implement a procedure to ensure that cash corresponding to the cumulative annual amount of work to be done remains available and, secondly, that the Plan can be dynamically updated with the operational work plan. This project is ongoing and a progress report will be made at the next BOT.

4.e/ Permanently Restricted Funds investment

The question of the rules and framework governing the investment of the Permanently Restricted Funds held by AUP Inc. was raised fairly recently by a member of the Board, and the questions it

• pens are broad. So we propose to create a working group composed of O & A and Finance which

will regularly report to the BA Committee and Legal Committee on the progress of its work. As a non-limitative example (due to the lack of time) of the questions that should be studied, we find:

• Taxation of income from funds invested by associations;
• Possible limitation of investment vehicles: according to an initial analysis, it seems possible

to make the same type of investment as the US. However, this is the accounting implication in case of loss of capital that seems different between French accounting (P&L) and US accounting (possible consumption of the funds).

• AUP’s legal status: Indeed, the AUP entity has a double American and French existence and

it is the nature of the legal existence (existence or not of a legal entity, nationality of the legal entity) in each country as well as the materialization of the legal relationship between the two entities that will answer the question.

• If it is decided that there is a legal entity under US law and another under French law, then

the accounts of each entity will be separated, the assets distributed and the contractual relations between the two entities clarified. Thus each entity will be able to follow the specific rules to its own nationality for the its own part of the activities, funds and assets.

• As per Permanently Restricted Funds, The French law dated 4 August 2008 (so-called Loi de

Modernisation de l’Economie “LME”) introduced a new legal model, directly inspired by the Anglo-Saxon model of "endowment funds" and called the "Fonds de Dotation". This entity, a non-profit private legal entity, is set up to raise private funds that it can either endow as income-generating endowments or consume to finance an activity of general interest to support that of another non-for-profit entity. This entity may receive funds, or property or rights of any kind and its operation is freely defined in its statutes.

• 5. Appendices

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• a. Budget 17-18 versus Forecast 17-18

THE AMERICAN UNIVERSITY OF PARIS

May 08, 2018

Budget 18-19 vs Forecast 17-18

Budget V0 2018-2019 Forecast 2017-2018 Budget V1 2017-2018 COMMENTS ON FORECAST

REVENUE

OPERATING REVENUE Undergraduate tuition

1 677 896

29 156 078 27 478 182 27 049 294 36 Additional FTEs + 1 082 K€, Tuition increase by 2,59 % +704K€, Less additional billing -109K€ Summer Undergraduate tuition

176 400

1 655 570 1 479 170 1 529 170 150 additional credits (AUP students, visitors and COOP) Masters billing

• 318 902

2 412 990 2 731 892 2 656 576 10 Less FTEs Financial Aid

• 371 415
• 4 915 673
• 4 544 258
• 4 624 575 Financial Aid on additional tuition and higher rebate

Financial Aid rebate %

• 14,8%
• 14,3%
• 14,8%

Other tuition rebate

• 41 326
• 674 547
• 633 221
• 593 175 More COOP rebate

Other tuition rebate %

• 2,0%
• 2,0%
• 1,9%

Other Student Income

18 877

520 300 501 423 481 116 Other Income

• 163 572

881 606 1 045 178 1 035 866 Student health insurance now integrated in tuition fees -105 K€, Less sales income on Bookstore -51K€ GIFTS & GRANTS Gifts & Grants

65 825

412 500 346 675 275 000 TFAS of 12.500 € for 27 trustees. More annual givings + 66 K€ OTHER INCOME Contingency & Depreciation

• 74 602

40 740 115 342 44 342 No employee litigation accrual recovery Currency Exchange Difference

• 617

617 TOTAL REVENUE

968 564 29 489 564 28 520 999 27 853 614 EXPENSES

COMPENSATION French Salaries

138 818

11 241 259 11 102 441 10 568 268 US Salaries

153 881

373 334 219 453 225 095 Taxes & Social Charges on Salaries

• 215 874

5 983 688 6 199 562 5 956 389 Tax on salaries 724 516 Total compensation

76 825

17 598 280 17 521 456 17 474 268 Premises 4 790 351 4 815 951 4 714 127 Double rent, fees and moving expenses allocated to Building fund 204 474 195 779 228 779 Conferences, Travel & Entertainement 743 800 671 630 674 821 Travels allocated to campaign fund 105 000 Fairs, Advertising & Publications

29 090

372 395 343 305 344 805 Other costs

3 239

675 208 671 969 614 557 Contingency & Depreciation

440 780

1 555 589 1 114 809 1 126 000 Depreciation new assets 18-19 +474 K€ (421 K€ for Quai d'Orsay), Bookstore -67 K€ (Last year provision rose to 75K€) Currency Exchange Difference

• 55 929

55 929 Books, Database & Cultural Program

175 515

1 528 670 1 353 155 1 383 814 Softwares +120 K€ Financial cost (other than building loans)

7 406

350 000 342 594 345 080 Honorariums

• 45 692

1 106 149 1 151 841 970 429 Total other expenses

714 674

11 431 635 10 716 962 10 402 412

TOTAL EXPENSES 791 499 29 029 916 28 238 417 27 876 680 NET RESULT

NET RESULT with double rent, fees and moving expenses

177 066 459 648 282 582

• 23 065

Assets financed by restricted Funds Transfer from restricted funds NET RESULT 177 066 459 648 282 582

• 23 065

Double rent, fees and moving expenses covered by Building fund 228 779 Travels coverd by Campaign fund

NET RESULT without double rent and moving expenses 177 066 459 648 282 582 205 714

Budget 18-19 vs Forecast 17-18

Without Restricted Funds

See Finance Package comments

• 16 905

Orsay & new buildings : Moving expenses +97 K€, New rents +91 K€, Maintenance +77 K€, Insurances savings -73 K€, Others +19 K€

177 170

Campaign costs moved to operational expenses +120 K€, Bonding week-end +25 K€, Faculty development +15 K€, Others +17 K€

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• b. Budget 18-19 versus Forecast 17-18

THE AMERICAN UNIVERSITY OF PARIS

May 08, 2018

Forecast 17-18 vs Budget 17-18

Forecast 2017-2018 Budget V1 2017-2018 COMMENTS ON FORECAST

REVENUE

OPERATING REVENUE Undergraduate tuition

428 888

27 478 182 27 049 294 Additional Fall (+104 K€) and Spring billing (+316 K€). Less Summer billing (-50 K€) Summer Undergraduate tuition

• 50 000

1 479 170 1 529 170 Masters billing

75 316

2 731 892 2 656 576 Additional Fall (+15 K€) and Spring billing (+60 K€) Financial Aid

80 316

• 4 544 258
• 4 624 575

Financial Aid rebate %

• 14,3%
• 14,8%

Other tuition rebate

• 40 046
• 633 221
• 593 175 More overload rebate and tuition rollover

Other tuition rebate %

• 2,0%
• 1,9%

Other Student Income

20 307

501 423 481 116 Oxford course fees (+20 K€) Other Income

9 312

1 045 178 1 035 866 GIFTS & GRANTS Gifts & Grants

71 675

346 675 275 000 TFAS increase to 12.500 € for 27 trustees OTHER INCOME Contingency & Depreciation

71 000

115 342 44 342 Employee litigation accrual recovery Currency Exchange Difference

617

617 TOTAL REVENUE

667 385 28 520 999 27 853 614 EXPENSES

COMPENSATION French Salaries

534 173

11 102 441 10 568 268 Accrual Bonus (+130 K€), Retirement bonus (+ 283 K€), additional leaving indemnities (+151 K€) US Salaries

• 5 643

219 453 225 095 Taxes & Social Charges on Salaries

243 173

6 199 562 5 956 389 Impact of above mentioned additional costs Tax on salaries

• 724 516

724 516 Gain on tax on salaries (Dec-July 2018) Total compensation

47 187

17 521 456 17 474 268 Premises

101 824

4 815 951 4 714 127 External security services (- 82 K€), Quai Orsay Overage +261 K€ Double rent, fees and moving expenses allocated to Building fund

• 33 000

195 779 228 779 Moving expenses -33K€ Conferences, Travel & Entertainement

• 3 191

671 630 674 821 Fairs, Advertising & Publications

• 1 500

343 305 344 805 Other costs

57 412

671 969 614 557 Additional VAT for ITS, car leasing, additional insurances (Harassment + 14 K€, Terrorist attack +16 K€) Contingency & Depreciation

• 11 191

1 114 809 1 126 000 Employee litigation accrual Currency Exchange Difference

55 929

55 929 Books, Database & Cultural Program

• 30 659

1 353 155 1 383 814 Financial cost (other than building loans)

• 2 486

342 594 345 080 Honorariums

181 412

1 151 841 970 429 More Summer Oxford for the Master in Law, additional consulting (Axioval, Gail Hamilton, EU data compliance, 8Advisory) Total other expenses

314 550

10 716 962 10 402 412

TOTAL EXPENSES 361 737 28 238 417 27 876 680 NET RESULT

NET RESULT with double rent, fees and moving expenses

305 648 282 582

• 23 065

Assets financed by restricted Funds Transfer from restricted funds NET RESULT 305 648 282 582

• 23 065

Double rent, fees and moving expenses covered by Building fund

• 33 000

228 779 We suggest to not use the Building Funds to cover Financial Interests of Quai d'Orsay

NET RESULT without double rent and moving expenses 272 648 282 582 205 714

P&L March 2017-2018 YE Forecast Versus Budget

Without Restricted Funds

SLIDE 16

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ASSUMPTIONS Flat Enrollment Budget 2021-2022 Flat Enrollment Budget 2020-2021 Flat Enrollment Budget 2019-2020 Budget 2018-2019 Forecast 2017-2018 FY 2016-2017 UDG Students FTE 963 963 963 963 927 854 GRAD Students FTE 76 76 76 76 87 94 TOTAL Students Numbers FTE 1039 1039 1039 1039 1014 949 % of Students Increase FTE 0.00% 0.00% 0.00% 2.47% 6.85%

• 3.36%

tuition Increase (except masters) 1.00% 1.00% 1.00% 2.22% 3.50% 3.50% Full Tuition 30,990 30,685 30,380 30,080 29,320 28,180 Annual Security fees 180 Total Summary without Restricted Funds P&L Flat Enrollment Budget 2021-2022 Flat Enrollment Budget 2020-2021 Flat Enrollment Budget 2019-2020 Budget 2018-2019 Forecast 2017-2018 FY 2016-2017

REVENUE

OPERATING REVENUE Undergraduate income 25,069,136 24,820,926 24,575,175 24,331,856 23,112,520 20,414,639 Summer Income 1,517,088 1,502,068 1,487,196 1,472,471 1,311,800 1,351,362 Masters Income 1,830,091 1,830,091 1,830,091 1,830,091 2,087,444 2,254,046 Other Student Income 536,066 530,758 525,503 520,300 501,423 451,637 Other Income 908,320 899,326 890,422 881,606 1,045,178 1,144,081 GIFTS & GRANTS TFAS 412,500 412,500 412,500 412,500 346,675 687,225 Release of Campaign Gift to finance double rents 175,138 185,066 OTHER INCOME Contingency & Depreciation 40,740 40,740 40,740 40,740 115,342 168,572 Currency Exchange Difference 617 16,764 TOTAL REVENUE 30,489,078 30,221,475 29,761,626 29,489,564 28,520,999 26,488,326

% of increase to previous year

1% 2% 1% 3% 8%

• 3%

EXPENSES

COMPENSATION French Salaries 11,868,074 11,750,569 11,634,226 11,241,259 11,102,441 9,786,256 US Salaries 384,646 380,838 377,067 373,334 219,453 272,288 Taxes & Social Charges on Salaries 6,367,009 6,303,969 6,241,553 5,983,688 6,199,562 6,132,080 OTHER EXPENSES Premises 4,587,996 4,557,689 4,724,013 4,994,825 5,011,730 4,199,010 Exceptional lease amortization, financial costs and double rent covered by Release of Campaign Gifts 175,138 185,066 Conferences, Travel & Entertainement 874,519 865,861 857,288 848,800 671,630 553,898 Fairs, Advertising & Publications 383,679 379,880 376,119 372,395 343,305 283,641 Other costs 683,304 676,538 669,840 663,208 671,969 704,400 Contingency & Depreciation 2,015,370 1,920,455 1,788,548 1,555,589 1,114,809 997,137 Currency Exchange Difference 55,929 53,289 Books, Database & Cultural Program 1,574,990 1,559,396 1,543,957 1,528,670 1,353,155 1,333,351 Financial cost (other than buildings loans) 360,605 357,035 353,500 350,000 342,594 220,321 Honorariums 1,139,666 1,128,383 1,117,210 1,106,149 1,151,841 976,314 TOTAL EXPENSES 30,414,998 30,065,679 29,683,323 29,017,917 28,238,418 25,511,985

% of increase to previous year

1% 1% 2% 3% 11%

• 7%

NET OPERATING RESULT (after use of restricted funds to finance double rent, moving expenses and QO interests) 74,080 155,796 78,304 471,647 282,581 976,341 NET OPERATING RESULT (Before use of Restricted Funds to finance Double Rents, Moving Expenses and QO Interests)

• 101,058
• 29,270

78,304 471,647 282,581 976,341

4Y P&L and CASH FORECAST 2017 - 2022

SLIDE 17

Page 17 of 28

ASSUMPTIONS Flat Enrollment Budget 2021-2022 Flat Enrollment Budget 2020-2021 Flat Enrollment Budget 2019-2020 Budget 2018-2019 Forecast 2017-2018 FY 2016-2017 Exceptional Costs Financed by Campaign Gifts (double rents, moving expenses, financial costs …)

• 175,138
• 185,066

NET OPERATING RESULT (Before use of Restricted Funds to Finance Renovation)

• 101,058
• 29,270

78,304 471,647 282,581 976,341 Campaign costs Financed directely by Gifts

• 64,660
• 64,660
• 64,660
• 64,660
• 501,156
• 387,625

Assets Financed by Restricted Gifts

• 3,693,628
• 2,666,584

Total Gifts used to finance the Campus Costs and campaign

• 239,798
• 249,726
• 64,660
• 3,758,288
• 501,156
• 3,054,209

TOTAL CASH RESTRICTED CASH BOSQUET CASH Letter of Credit CASH Operating CASH

CASH OPENING BALANCE 18,697,877 2,336,898 7,870,000 8,490,979 Cash from Operating Activities Net Result 282,581 282,581 Non Cashable Income . Release of provision for Depreciation & Amortization 115,342 115,342 Non Cashable Expenses . Accruals for Depreciation & Amortization 1,114,809 1,114,809 Working Capital Variation Allocation of YE Result to Management Designated Fund 1,430,653

• 1,430,653

Total Cash From Operating Activities 1,282,048 1,430,653

• 148,605

Cash From Restricted Funds Specific Activity Campaign New Gifts available for Campus Renovation 2,159,403 2,159,403 Other New Gifts (Campaign, Mellon,…) 1,710,055 1,710,055 Expenses Financed by Campus Funds

• 501,156
• 501,156

Expenses Financed by Campaign and Other Gifts (Mellon…)

• 879,403
• 879,403

Total Cash From Restricted Funds 2,488,899 2,488,899 Capital Expenditures Asset

• 431,591
• 431,591

Campus Renovation Quai d'Orsay

• 20,165,312
• 5,165,312
• 15,000,000

Total Cash from Capital Expenditures

• 20,596,903
• 5,165,312
• 15,431,591

Cash From Financing Activities Loan to finance the QO Purchase 15,000,000 15,000,000 Contractual Amortization of the 3 M€ Grenelle Loan

• 180,054
• 180,054

Contractual Amortization of the 15 M€ Fix Loan Quai Orsay

• 596,632
• 596,632

Total Cash From Financial Activities 14,223,314 14,223,314 TOTAL CASH CONSUMPTION OF THE YEAR

• 2,602,643

3,919,552

• 5,165,312
• 1,356,882

CASH CLOSING BALANCE 16,095,234 6,256,450 2,704,688 7,134,097

CASH FLOW FORECAST FY 17/18

CASH FLOW STATEMENT FORECAST GIFTS CONSUMPTIONS FOR THE CAMPUS PLAN MEANS OF FINANCING

SLIDE 18

Page 18 of 28

TOTAL CASH RESTRICTED CASH BOSQUET CASH Letter of Credit CASH Operating CASH

CASH OPENING BALANCE 16,095,234 6,256,450 2,704,688 7,134,097 Cash from Operating Activities Net Result 471,647 471,647 Non Cashable Income . Release of provision for Depreciation & Amortization 40,740 40,740 Non Cashable Expenses . Accruals for Depreciation & Amortization 1,555,589 1,555,589 Working Capital Variation Rebuilt of the Bosquet Proceeds

• 165,312

165,312 Total Cash From Operating Activities 1,986,496

• 165,312

165,312 1,986,496 Cash From Restricted Funds Campaign New Gifts available for Campus Renovation 3,420,224 3,420,224 Other New Gifts (Campaign, Mellon,…) 1,105,200 1,105,200 Expenses Financed by Campus Funds

• 64,660
• 64,660

Expenses Financed by Campaign and Other Gifts (Mellon…)

• 1,790,010
• 1,790,010

Total Cash From Restricted Funds 2,670,754 2,670,754 Capital Expenditures Asset

• 746,797
• 746,797

Campus Renovation

• 3,693,628
• 3,693,628

Total Cash from Capital Expenditures

• 4,440,425
• 3,693,628
• 746,797

Cash From Financing Activities Contractual Amortization of the 3 M€ Grenelle Loan

• 183,983
• 183,983

Contractual Amortization of the 15 M€ Fix Loan Quai Orsay

• 604,811
• 604,811

Total Cash From Financial Activities

• 788,794
• 788,794

TOTAL CASH CONSUMPTION OF THE YEAR

• 571,969
• 1,188,186

165,312 450,905 CASH CLOSING BALANCE 15,523,265 5,068,264 2,870,000 7,585,001

CASH FLOW FORECAST FY 18/19

CASH FLOW STATEMENT FORECAST MEANS OF FINANCING

SLIDE 19

Page 19 of 28

TOTAL CASH RESTRICTED CASH BOSQUET CASH Letter of Credit CASH Operating CASH

CASH OPENING BALANCE 15,523,265 5,068,264 2,870,000 7,585,001 Cash from Operating Activities Net Result 78,304 78,304 Non Cashable Income . Release of provision for Depreciation & Amortization 40,740 40,740 Non Cashable Expenses . Accruals for Depreciation & Amortization 1,788,548 1,788,548 Working Capital Variation Rebuilt of the Bosquet Proceeds Total Cash From Operating Activities 1,826,112 1,826,112 Cash From Restricted Funds Campaign New Gifts available for Campus Renovation 2,903,776 2,903,776 Other New Gifts (Campaign, Mellon,…) 1,255,200 1,255,200 Expenses Financed by Campus Funds

• 64,660
• 64,660

Expenses Financed by Campaign and Other Gifts (Mellon…)

• 1,505,354
• 1,505,354

Total Cash From Restricted Funds 2,588,961 2,588,961 Capital Expenditures Asset and Campus Renovation

• 360,300
• 360,300

Total Cash from Capital Expenditures

• 360,300
• 360,300

Cash From Financing Activities Contractual Amortization of the 3 M€ Grenelle Loan

• 187,999
• 187,999

Contractual Amortization of the 15 M€ Fix Loan Quai Orsay

• 669,608
• 669,608

Total Cash From Financial Activities

• 857,607
• 857,607

TOTAL CASH CONSUMPTION OF THE YEAR 3,197,166 2,588,961 608,205 CASH CLOSING BALANCE 18,720,431 7,657,225 2,870,000 8,193,206

CASH FLOW FORECAST FY 19/20

CASH FLOW STATEMENT FORECAST MEANS OF FINANCING

SLIDE 20

Page 20 of 28

TOTAL CASH RESTRICTED CASH BOSQUET CASH Letter of Credit CASH Operating CASH

CASH OPENING BALANCE 18,720,431 7,657,225 2,870,000 8,193,206 Cash from Operating Activities Net Result

• 29,270
• 185,066

155,796 Non Cashable Income . Release of provision for Depreciation & Amortization 40,740 40,740 Non Cashable Expenses . Accruals for Depreciation & Amortization 1,920,455 1,920,455 Working Capital Variation Rebuilt of the Bosquet Proceeds Total Cash From Operating Activities 1,850,446

• 185,066

2,035,512 Cash From Restricted Funds Campaign New Gifts available for Campus Renovation 1,408,514 1,408,514 Other New Gifts (Campaign, Mellon,…) 1,431,618 1,431,618 Expenses Financed by Campus Funds

• 64,660
• 64,660

Expenses Financed by Campaign and Other Gifts (Mellon…)

• 1,675,877
• 1,675,877

Total Cash From Restricted Funds 1,099,595 1,099,595 Capital Expenditures Asset and Campus Renovation

• 391,948
• 391,948

Total Cash from Capital Expenditures

• 391,948
• 391,948

Cash From Financing Activities Contractual Amortization of the 3 M€ Grenelle Loan

• 192,098
• 192,098

Contractual Amortization of the 15 M€ Fix Loan Quai Orsay

• 689,299
• 689,299

Total Cash From Financial Activities

• 881,397
• 881,397

TOTAL CASH CONSUMPTION OF THE YEAR 1,676,696 914,529 762,167 CASH CLOSING BALANCE 20,397,127 8,571,754 2,870,000 8,955,373

CASH FLOW FORECAST FY 20/21

CASH FLOW STATEMENT FORECAST MEANS OF FINANCING

SLIDE 21

Page 21 of 28

CASH FLOW FORECAST FY 21/22

TOTAL CASH RESTRICTED CASH BOSQUET CASH Letter of Credit CASH Operating CASH

CASH OPENING BALANCE 20,397,127 8,571,754 2,870,000 8,955,373 Cash from Operating Activities Net Result

• 101,058
• 175,138

74,080 Non Cashable Income . Release of provision for Depreciation & Amortization 40,740 40,740 Non Cashable Expenses . Accruals for Depreciation & Amortization 2,015,370 2,015,370 Working Capital Variation Rebuilt of the Bosquet Proceeds Total Cash From Operating Activities 1,873,573

• 175,138

2,048,711 Cash From Restricted Funds Campaign New Gifts available for Campus Renovation 1,408,514 1,408,514 Other New Gifts (Campaign, Mellon,…) 1,431,618 1,431,618 Expenses Financed by Campus Funds

• 64,660
• 64,660

Expenses Financed by Campaign and Other Gifts (Mellon…)

• 1,322,913
• 1,322,913

Total Cash From Restricted Funds 1,452,559 1,452,559 Capital Expenditures Asset and Campus Renovation

• 294,300
• 294,300

Total Cash from Capital Expenditures

• 294,300
• 294,300

Cash From Financing Activities Contractual Amortization of the 3 M€ Grenelle Loan

• 192,098
• 192,098

Contractual Amortization of the 15 M€ Fix Loan Quai Orsay

• 689,299
• 689,299

Total Cash From Financial Activities

• 881,397
• 881,397

TOTAL CASH CONSUMPTION OF THE YEAR 2,150,435 1,277,421 873,014 CASH CLOSING BALANCE 22,547,562 9,849,175 2,870,000 9,828,387

MEANS OF FINANCING CASH FLOW STATEMENT FORECAST

SLIDE 22

Page 22 of 28

2013/2014 - 2014/2015 - 2015/2016 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 ITS Budget 189,800 278,000 113,300 113,300 113,300 Library books 55,000 55,000 55,000 55,000 55,000 Campus K budget (Multi-year maintenance plan) 186,791 413,797 192,000 223,648 126,000 Total Capital Expenditures (pre-Campus Plan) 431,591 746,797 360,300 391,948 294,300 Campus Renovation Phase 1 - Combes Full Renovation and Refurnishing 3,819,000 Renovation in relation to Quai d'Orsay 98,802 Campus Renovation Phase 2 - Grenelle Renovation & Campus Infrastructure upgrade . All Buildings Infrastructure & Security Upgrade 103,202 . Grenelle Renovation (all inclusive) 3,422,715 Campus Renovation Phase 3 - Quai d'Orsay Building Purchase & Renovation . Purchase Price 16 M€ + Purchase costs (08/17) 2,288,750 15,000,000 . Risk Allowance 189,316 . Renovation Costs (begining August 17 and ending 12/18) 377,883 4,877,194 2,438,597 See TX ORSAY . Quai d'Orsay Furnishing and IT Equipment (07/18) 1,255,031 10,011,550 20,165,312 3,693,628 33,870,490 20,596,903 4,440,425 360,300 391,948 294,300 33,870,490

. Full Renovation of the Combes Building over 2 FY / Renovation of Grenelle Building and Refurbishing / Building Security upgrade . Purchase of the Quai d'Orsay Building in 08/17 . Spread of the Quai d'Orsay Renovation between two FY (17/18 and 18/19) . Spread of the Quai d'Orsay Renovation between two FY (17/18 and 18/19) . Furnishing of Quai d'Orsay Building

New Campus Plan Cost : 34 M€ (without double rent impacts)

4Y CAPITAL BUDGET - 2017/2022 - Campus Renovation Rolling Plan

Expenditures Total Capital Expenditures Resulting from the Campus Total University Capital Expenditures DETAILS OF THE CAMPUS PHASES

SLIDE 23

Page 23 of 28

Campaign Expenses Budget - 25MGoal V May 18 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Campaign Totals

Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Annual Campaign Cost € 62,795 € 126,849 € 322,965 € 523,856 € 514,368 € 514,368 € 514,368 € 514,368 € 514,368 € 3,608,305 Annual Campaign Costs Allocated to operating results € 87,360 € 514,368 € 514,368 € 514,368 € 514,368 € 514,368 € 2,659,200 Total Campaign Costs allocated to Campaign Revenue € 949,105

Comprehensive Campaign Revenue v. 03.18 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Campaign Totals

Dedicated to Campus Renovation ONLY Silent Phase

Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total Paid or Confirmed Pledges and Gifts 1,680,792.61 € 1,672,435.98 € 2,287,362.77 € 2,096,902.53 € 1,357,724.26 € 666,275.56 € 333,514.30 € 333,514.30 € 333,514.30 € 10,762,036.61 € Total Other Pending Pledges and Gifts 62,500.00 € 2,062,500.00 € 2,237,500.00 € 1,075,000.00 € 1,075,000.00 € 1,075,000.00 € 6,512,500.00 € Projected Annual Campaign Revenue 1,680,792.61 € 1,672,435.98 € 2,287,362.77 € 2,159,402.53 € 3,420,224.26 € 2,903,775.56 € 1,408,514.30 € 1,408,514.30 € 1,408,514.30 € 18,349,536.61 €

GLOBAL CHECK CAMPAIGN COSTS / RESTRICTED FUNDS

Annual Campaign Cost € 62,795 € 126,849 € 322,965 € 436,496 € 0 € 0 € 0 € 0 € 0 € 949,105 Other Costs Allocated to Campaign Revenue 64,660 64,660 64,660 64,660 64,660 64,660 64,660 64,660 € 517,283 TOTAL COSTS ALLOCATED TO THE CAMPAIGN € 62,795 € 191,509 € 387,625 € 501,156 € 64,660 € 64,660 € 64,660 € 64,660 € 64,660 € 1,466,388 Cumulated Costs Allocated to the Campaign € 62,795 € 254,304 € 641,930 € 1,143,086 € 1,207,747 € 1,272,407 € 1,337,068 € 1,401,728 € 1,466,388 CAMPAIGN GOAL € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 € 26,007,211 CAMPAIGN PLEDGES € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 € 13,494,711 In % of campaign Goal 0% 1% 2% 4% 5% 5% 5% 5% 6% In % of campaign Pledges or paid 0% 2% 5% 8% 9% 9% 10% 10% 11%

SLIDE 24

Page 24 of 28

• 600

4,400 9,400 14,400 19,400 24,400 02/2014 03/2014 04/2014 05/2014 06/2014 07/2014 08/2014 09/2014 10/2014 11/2014 12/2014 01/2015 02/2015 03/2015 04/2015 05/2015 06/2015 07/2015 08/2015 09/2015 10/2015 11/2015 12/2015 01/2016 02/2016 03/2016 04/2016 05/2016 06/2016 07/2016 08/2016 09/2016 10/2016 11/2016 12/2016 01/2017 02/2017 03/2017 04/2017 05/2017 06/2017 07/2017 08/2017 09/2017 10/2017 11/2017 12/2017 01/2018 02/2018 03/2018

EURO 000 YEARS

Cash position 5-yr history March 2018

UNRESTRICTED

SLIDE 25

Page 25 of 28

BANK BALANCES AS OF :

1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ 1 € = x $ EUROS 1.2079 1.2321 1.2214 1.2457 1.1993 1.1827 1.1638 1.1806 1.1825 1.1727 B.N.P. S.G. C.COOPERATIF INVESTMENT SG livret A SG livret IS 24% CCO livret CCO parts CCO dépôt à terme TOTAL EUROS 15,698,890 € 16,781,298 € 18,992,557 € 18,618,536 € 20,030,881 € 16,412,837 € 17,594,162 € 17,150,682 € 17,033,049 € 17,940,209 € U.S. DOLLARS Citibank checking acc. **0267 Citibank Imma acc. **0312 Citibank LoC acc. **9829 CREDIT COOPERATIF $ TOTAL U.S. DOLLARS 443,562 € 751,773 € 744,213 € 2,684,245 € 506,380 € 552,750 € 544,940 € 1,360,229 € 640,235 € 721,720 € YTD CASH BANK ACCOUNT 16,142,452 € 17,533,071 € 19,736,770 € 21,302,781 € 20,537,262 € 16,965,587 € 18,139,101 € 18,510,912 € 17,673,284 € 18,661,929 € SG Bosquet

• 6,093,632 €
• 6,317,454 €
• 6,520,398 €
• 6,697,120 €
• 7,051,707 €
• 7,371,555 €
• 7,407,990 €
• 7,709,220 €
• 7,722,379 €
• 7,870,000 €

Restricted funds

• 3,951,203 €
• 4,050,466 €
• 4,128,170 €
• 4,116,503 €
• 4,158,407 €
• 3,029,736 €
• 3,162,632 €
• 2,443,485 €
• 2,444,442 €
• 2,452,310 €

General reserve

• 1,430,653 €
• 1,430,653 €
• 1,430,653 €
• 1,430,653 €

YTD AVAILABLE CASH BALANCE 4,666,964 € 5,734,498 € 7,657,549 € 9,058,505 € 9,327,147 € 6,564,296 € 7,568,479 € 8,358,207 € 7,506,462 € 8,339,620 € Bosquet Cash Consumption 223,822 € 202,944 € 176,722 € 354,588 € 319,848 € 36,435 € 301,230 € 13,159 € 147,621 € 0 € (Assets in Progress Orsay) Total Spend Todate 1,776,368 €

30-Apr-18 31-Jul-17 30-Sep-17 31-Oct-17 30-Nov-17 31-Mar-18 28-Feb-18 31-Jan-18 31-Dec-17 31-Aug-17

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5/1/2018 Budget 2022- 2023 Budget 2021-2022 Budget 2020- 2021 Budget 2019- 2020 Bdg 22-23 Bdg 21-22 Bdg 20-21 Bdg 19-20 Bdg 18-19 Bdg 17-18 Amelie Départ 12/18 28,997 69,592 67,696 68,174 72,090 60,873 Bosquet closed 188,629 450,000 Storage Garage université 4,909 6,962 4,328 2,165 Grenelle APEEL Saint-Jean 36,768 36,768 36,768 36,768 36,768 36,768 37,654 39,522 36,378 39,814 Grenelle APEEL Saint-Jean gde salle 8,200 Landrieu SCI Landrieu (loyer + charges) 332,520 332,520 332,520 332,520 332,520 332,520 334,078 331,698 333,459 326,997 Montessuy Congé pour fin Décembre 18 120,407 288,976 299,490 288,121 286,042 285,203 Pierre Villey possible rupture du bail sans préavis Fin 03/19 42,324 42,324 41,744 38,146 45,754 38,640 102 ST DO SCI Franques + ARIZONA (loyer + charges) 255,655 255,655 255,655 255,655 255,655 248,297 247,000 241,476 145,177 140,115 New ST DO Ground floor Arizona 340,080 340,080 340,080 340,080 340,080 56,680 118 ST DO closed 78,994 88,588 87,958 148 Université closed 1,239,592 1,023,100 80,011 Tour Maubourg CYS Loyer + Charges 836,860 836,860 836,860 836,860 836,860 827,865 769,809 837,842 107,281 Combes Genefim 1,021,864 1,021,864 1,021,864 1,023,592 1,025,211 1,026,850 1,029,490 966,558 924,546 912,294 Quai d'Orsay Financial cost only 165060 175,138 185,066 194,840 204,474 195,779 Grenelle Financial cost only 40584 44,868 49,068 53,169 57,183 61,111 59,882 3,029,391 3,043,753 3,057,881 3,073,484 3,280,478 3,186,762 2,891,752 4,137,085 3,263,572 2,424,070 1% inflation 72,075 54,056 36,038 18,019 Total rental costs 3,101,467 3,097,810 3,093,919 3,091,503 3,280,478 3,186,762 2,891,752 4,137,085 3,263,572 2,424,070 Other Premises in excess of Rent 1,681,977 1,665,324 1,648,836 1,632,510 1,714,347 1,824,968 1,307,313 1,324,848 959,970 790,132 TOTAL PREMISES BUDGETED (including double rents) 4,783,444 4,763,134 4,742,755 4,724,013 4,994,825 5,011,730 4,199,065 5,461,933 4,223,542 3,214,202 Other Premises in excess of Rent Security Costs 658,444 651,925 645,470 639,080 632,752 637,479 562,749 427,687 180,421 173,312 Maintenance, cleaning, heating … 634,915 628,629 622,405 616,242 610,141 493,919 485,111 449,524 370,720 383,260 Telephone & Internet 193,296 191,383 189,488 187,612 185,754 176,217 104,869 193,809 174,225 110,173 Insurance & local taxes 195,321 193,387 191,473 189,577 187,700 255,953 154,584 114,615 143,011 123,387 Moving expenses allocated or not to Building fund 98,000 104,122 91,593 Exceptional QO Overage allocated to P&L 261,400 35,091 Total Other Premises 1,681,977 1,665,324 1,648,836 1,632,510 1,714,347 1,824,968 1,307,313 1,324,848 959,970 790,132 Allocated to building fund Rent allocated to Building fund 1,239,592 Moving expenses 104,122 Dommage ouvrage 35,091 Financial costs allocated to building fund 165,060 175,138 185,066 165,060 175,138 185,066 1,378,805 165,060 175,138 185,066 TOTAL PREMISES BUDGETED WITHOUT DOUBLE RENT 4,618,384 4,587,996 4,557,689 4,724,013 4,994,825 5,011,730 4,199,065 4,083,128 4,223,542 3,214,202 2013-2014 Budget 2018- 2019 2014-2015 2015-2016 Forecast 2017- 2018 2016-2017

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FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25

Combes Lease 8,393 11,380 10,817 10,232 8,339 7,658 6,950 6,215 5,450 Quai d'Orsay (after contractual amortization) 14,403 12,394 11,705 2,806 2,088 1,356 Grenelle Loan 1,889 2,896 2,716 2,151 1,954 1,753 1,548 1,338

TOTAL YEAR END INDEBTEDNESS

8,393 13,269

13,713

27,351 22,884 21,317 11,509 9,851 8,144 INDEBTEDNESS POSITION AT THE END OF THE FY (K€)

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CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS TOTAL CAMPUS OTHER TOTAL

Parent donor 699 760 1 008 405 643 913 661 763 1 288 060 1 860 516 441 400 586 600 441 400 586 600 949 919 1 301 774 4 464 452 1 541 206 6 005 658 Trustees 676 042 678 668 646 272 661 274 1 061 887 1 064 370 601 282 601 282 811 865 811 865 195 626 195 626 26 051 841 051 4 019 025 20 112 3 611 937 Alumni 978 266 1 084 729 275 855 277 232 525 029 600 012 127 447 202 090 54 334 89 334 29 124 64 124 24 450 52 450 2 014 505 355 466 2 369 972 Friends 9 736 9 736 50 241 50 241 56 534 56 534 80 113 80 113 50 125 50 125 125 125 123 123 246 997 246 997

• ther small donors

16 749 16 749 308 1 199 17 057 891 17 948 Total Paid & Confirmed Gifts 1 680 793 1 789 882 1 672 436 1 998 352 2 287 363 2 382 678 2 096 903 2 744 002 1 357 724 1 537 924 666 276 846 476 1 000 543 2 195 398 10 762 037 1 917 675 13 494 711 Cumulative Totals 1 680 793 1 789 882 3 353 229 3 788 233 5 640 591 6 170 912 7 737 494 8 914 914 9 095 218 10 452 838 9 761 494 11 299 313 10 762 037 13 494 711 Prospective income (45 gifts and 175 prospects needed) Total Pledges and Gifts to be raised 62 500 137 500 2 062 500 2 937 500 2 237 500 3 262 500 3 225 000 6 175 000 7 587 500 4 925 000 12 512 500 Projected Annual Revenue: 1 680 793 1 789 882 1 672 436 1 998 352 2 287 363 2 382 678 2 159 403 2 881 502 3 420 224 4 475 424 2 903 776 4 108 976 4 225 543 8 370 398 18 349 537 6 842 675 26 007 211 Cumulative Totals 1 680 793 1 789 882 3 353 229 3 788 233 5 640 591 6 170 912 7 799 994 9 052 414 11 220 218 13 527 838 14 123 994 17 636 813 18 349 537 26 007 211

2014-2020

Year 3 Year 4 Year 5

2016-2017 2017-2018 2018-2019 2019-2020 2020-2023 2014-15 2015-16

Year 6 Year 7-9 CAMPAIGN TOTALS Year 0 & 1 Year 2