Margie Brown , President and CEO, Cook Inlet Region, Inc. Michele - - PowerPoint PPT Presentation

Margie Brown, President and CEO, Cook Inlet Region, Inc. Michele Brown, President and CEO, United Way of Anchorage Milt Byrd, President Emeritus, Charter College David Marquez, Senior Vice President and Chief Operating

Officer, Nana Development Corporation

Karen Perdue, CEO and President, Alaska State Hospital and

Nursing Home Association

Larry Persily, Federal Coordinator, Alaska Natural Gas

Transportation Projects

Mort Plumb, Principle, The Plumb Group Eric Wohlforth, Attorney, Wohlforth, Johnson, Brecht, Cartledge

& Brooking

• Report on value, income, and prospects of Alaska’s

key assets for the preceding year

• Identify emerging public policy issues related to those

assets

• Ask asset managers to identify what criteria they

should be judged upon in the coming year

• Track performance of those assets - and asset

managers - against that criteria and other metrics

Manages its assets as:

• Natural Resources, available for

sale, lease, or conservation

• Financial Assets, intended to

produce financial return

• Enterprises, intended to produce both

financial return and key infrastructure

Total Gross Domestic Product - $51.4 Billion Alaska’s real GDP grew 2.5%, above the National Average of 1.5% Per Capita Personal Income - $45,665

Grew 4.4% from 2010 (National Average 4.4%)

110% of the National Average of $41,560

24% 19% 10% 8% 6% 33%

Top Five State Industries as a % of GDP

Resource Development Government Transportation Real Estate Health Care All Others

$44.4 $52.1 $57.5 $51.7 $56.4 $66.3 $70.10 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12

Total Net Assets

In Billions Each Individual Alaskan’s Share $96,995

59.81 64.2 69.25 58.66 68.98 87.47 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12

Total Fisheries Tax Revenue

Millions

Millions FY ‘12 FY '11 FY '10 FY '09 FY '08 FY '07 Total Budget $13.7 $12.6 $13.5 $8.40 $7.8 $7.15 Revenue from User Fees $2.00 $2.30 $2.46 $2.3 $2.2 $2.14 Total Acres of Land 3.381 3.381 3.381 3.356 3.356 3.353 Total No. of Visitors 5.2 5.2 5.4 5 4.5 4.0

FY '11 FY '10 FY '09 FY '08 FY '07 FY '06 Millions of Acres 100.3 100.2 98.5 96.6 94.3 92.4 Less: Total Land Conveyed

• 2.2
• 2.23
• 2.2
• 2
• 2
• 1.9

Remaining Total Acquired Lands 99.1 98.9 97.3 96.2 93.3 91.5

Does not include 65 million acres of submerged land acquired at Statehood.

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY '08 FY '07 FY '06 Millions of Acres Leased 4.19 4.15 4.50 4.93 5.50 4.99 4.01 # of Leases 1,481 1,446 1,499 1,560 1,662 1,535 N/A Royalty, Rental & Bonus Revenue(Billions) $2.95 $2.70 $2.20 $2.20 $3.40 $2.16 $2.39

Millions of Barrels Per Day

Peak: 2.05 million barrels in 1988

579,300 Barrels

Average in 2012 Potential Shut Off Point of TAPS

7.0 8.2 8.3 9.2 10.3 10.6 11.3

FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 Today

CBR Net Assets

Billions

$ Million FY '12 FY '11 FY '10 FY '09 FY '08 FY '07 FY '06 Net Assets

(Commercial Assistance Enterprise Funds)

221.2 217.3 212.4 205.1 194.8 197.8 198.1 Operating Income 3.9 8.9 12.4 8.8 6.6 7.0 6.3 Operating Expense 4.8 4.7 2.8

• 2.1
• 8.2
• 5.8
• 4.0

Net Income 0.61 4.2 9.6 6.7

• 1.6

1.2 2.3

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 Net Assets 487.6 501.8 427.5 402.0 493.9 512.7 449.1 Rents and Royalty Income 5.3 6.4 3.8 5.0 11.6 10.5 6.6 Investment Income 1.9 80.4 44.5

• 75.8
• 13.2

70.1 38.7

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 Net Assets 1,075.7 1,039.5 1,012.2 974.5 945.9 898.7 855.6 Operating Revenue 69.5 68.3 82.5 69.5 73.7 72.2 50.4 Operating Expense 27.4 27.2 23.6 23.3 27.8 24.7 29.4 Net Operating Income 42.1 41.1 58.9 46.2 46.0 47.5 21.0 Transfers to State of Alaska/Other Agencies 29.4 23.4 22.7 23.8 10.0 16.7 8.8 Non-operating Revenue 23.3 9.6 1.4 5.1 11.3 12.2 2.4 Change in Net Assets 35.4 27.3 37.7 28.6 47.3 43.1 14.6

0.856 0.899 0.946 0.975 1.012 1.040

1.08

FY ‘06 FY ‘07 FY ‘08 FY ‘09 FY ‘10 FY ‘11 FY '12

Net Assets

In Billions

$ Millions FY '12 FY '11 FY '10 FY '09 FY '08 FY '07 FY '06 Net Assets Managed by Treasury Division 24.62 21.02 17.79 15.40 14.80 8.76 6.66 Investment Income 3.23 1.32 1.02

• 0.31

0.20 0.51 0.36

$ Billions FY ‘12 FY '11 FY '10 FY '09 FY ‘08 FY ‘07 FY ‘06 Net Assets 40.33 40.14 33.26 29.92 35.90 37.80 32.90 Statutory Net Income 1.57 2.14 1.59

• 2.48

2.94 3.43 2.69 Interest, Dividends, Real Estate, Other 0.99 0.91 0.80 0.96 1.20 1.18 0.98 Increase in Market Value of Investments

• 0.99

6.00 2.79

• 7.29
• 2.58

4.33 2.16 Total Revenue

• 0.001

6.89 3.34

• 6.33
• 1.38

5.52 3.14 % Return

• 0.01

20.6 11.7

• 18.0
• 3.6

17.1 10.6

32.9 37.8 35.9 29.9 33.3 40.1 40.33 44.3

FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 Today

Net Assets

Billions

Country Fund $ Billions Inception Norway Government Pension Fund – Global $664.3 1990 UAE - Abu Dhabi Abu Dhabi Investment Authority $627.0 1976 China SAFE Investment Company $567.9 1997 Saudi Arabia SAMA Foreign Holdings $532.8 n/a Kuwait Kuwait Investment Authority $296.0 1953 Singapore Government of Singapore Investment Corporation $247.5 1981 Russia National Welfare Fund $149.7 2008 Qatar Qatar Investment Authority $115.0 2005 Australia Australian Future Fund $83.0 2006 UAE - Abu Dhabi International Petroleum Investment Company $65.3 1984 Libya Libyan Investment Authority $65.0 2006 Kazakhstan Kazakhstan National Fund $61.8 2000 Algeria Revenue Regulation Fund $56.7 2000

US – Alaska Alaska Permanent Fund $44.3 1976

South Korea Korea Investment Corporation $43.0 2005 Iran National Development Fund of Iran $40.0 2011 Azerbaijan State Oil Fund $32.7 1999 Brunei Brunei Investment Agency $30.0 1983 France Strategic Investment Fund $25.5 2008 US - Texas Texas Permanent School Fund $25.5 1854 Source: Sovereign Wealth Fund Institute - January 2012, $ Billions

$ Millions FY ‘12 FY '11 FY '10 FY '09 FY '08 FY '07 FY '06 Net Assets 1,554.1 1,593.8 1,624 1,672.1 1,666.2 1,684.5 1,990 Operating Income 351.2 385.7 397.3 326.3 284 345 318.9 Operating Expense 381.6 398.6 407 349.4 360.1 304.5 272.3 Net Revenue

• 30.4
• 12.9
• 9.7
• 23.1
• 76.1

40.5 46.6 Change in Net Assets -39.7

• 30.2
• 46.5

5.9

• 18.3 -305.5

307

1.99 1.68 1.67 1.67 1.62 1.59

1.55

FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12

Net Assets

In Billions

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 Net Assets 893.2 828.3 768.1 716.9 671 637.4 594.3 Operating Revenue 54.7 48.6 47 47.9 48.2 49.6 51.9 Operating Expense

• 171.0
• 158.7 -140.3 -141.6 -143.1 -143.7 -135.4

Net Income

• 116.3
• 110.1
• 93.3
• 93.7
• 94.9
• 94.2
• 83.6

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ’08 FY ‘07 FY ‘06 Net Assets 1,070.6 1,075.9 643.0 626.7 596.7 629.3 415.1 Operating Revenue 98.7 47.3 56.0 101.6 61.9 55.1 58.0 Operating Expense -160.6

• 118.7
• 107.7
• 133.4
• 79.8
• 73.8
• 75.6

Operating Loss/Gain

• 61.9
• 71.4
• 51.6
• 31.8
• 17.4
• 18.7
• 17.6

Investment Income 14.1 70.9 42.7

• 43.6
• 14.7

50.1 18.1 Capital Contributions by the State 29.0 437.4 25.2 105.5 11.3 182.7 N/A

$ Millions FY ‘12* FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 Net Assets 249.2 240.8 218.6 213.8 179.7 198.1 183.6 Operating Revenue (Trains) 129.4 121.9 109.4 143.6 158.8 148.2 132.7 Operating Expense (Trains) 125.9 115.8 104.3 137.9 155.5 138.9 128.4 Operating Income (Trains) 3.5 6.2 5.1 5.6 3.3 9.7 4.3 Non Operating Revenue (Real Estate) 10 8.3 9.1 8.3 9.3 6.6 6.2 Net Revenue (Corporate) 12.2 14.6 12.9 13.9 12.6 16.3 10.5

*Reflects unaudited results as of 11/30/12

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY '08 FY '07 FY '06 Net Assets 864.1 830.25 835.1 795 773 710.2 656.1 Operating Revenue 106.8 106.6 105.4 95.2 118.9 115.5 104 Operating Expense 139.2 131.1 111.7 116.3 111.5 108.3 104.2 Net Revenue -32.48 -24.49

• 6.3
• 21

7.3 7.2

• 171

Capital Contributions 89 34.5 65.1 56.5 58.3 59 53.2

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 Net Assets 95.8 101.5 103.1 103.7 108.0 98.4 Operating Revenue 14.2 11.3 18.6 17.7 20.5 16.9 Operating Expense

• 12.1
• 11.3
• 17.7
• 17.1
• 20.3
• 16.6

Operating Income before EBIDA 2.1 0.9 0.6 0.2 0.3 Depreciation Expense

• 6.7
• 6.0
• 5.8
• 5.5
• 4.2
• 3.7

Net Income

• 4.5
• 5.8
• 3.9
• 4.4
• 3.8
• 2.9

29% 21% 25% 19% 16% 14% 12% 9% 8% 7% 6% 8% 9% 10% 71% 76% 71% 73% 73% 76% 72% 67% 64% 60% 56% 51% 48% 45% 3% 4% 8% 11% 10% 16% 24% 28% 33% 38% 41% 43% 45% $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000

Cumulative Total and Percentage of Total

Launch Revenue Federal Grants State Investment

$ Millions FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 Net Capital Assets 1,097.3 952.9 863.3 833.9 792.2 736.9 731 Endowment Investments 127.2 127.4 116.4 111.0 145.2 148.7 126.9 Land Endowment and other Assets 46.2 45.3 44.5 44.7 45 46.3 39.9 Endowment Gifts, Sales and

• ther proceeds

2.3 2.2 3.2 10.4 5.5 7.7 5.7

Fall 2011/FY12 Fall 2010/FY11 Fall 2009/FY10 Fall 2008/FY09 Fall 2007/FY08 Fall 2006/FY07 Fall 2005/FY06 Fall Student Headcount (Non-degree) 34,983 (10,567) 34,480 (11,063) 33,710 (11,894) 32,328 (12,403) 32,166 (13,050) 32,836 (13,431) 32,491 (13,334) Degrees Awarded 4,174 3,983 3,754 3,427 3,505 3,428 3,223 High School/College Dual Enrollment Headcount 4,201 1,781 1,905 1,883 1,696 n/a n/a Tuition and Fees - UA to Western States Average 76% 83% 87% 93% 98% 101% 104% Average Annual Salary Increase for Exiters, Post-Training Available

• Feb. 2014

Available

• Feb. 2013

21% 25% 32% 37% 23% Grant-Funded Research Revenue ($ Millions) 133 138 128 129 127 132 132 Fall Employees Headcount (Students) 8,523 (1,593) 8,444 (1,507) 8,302 (1,428) 8,168 (1,411) 8,086 (1,385) 7,875 (1,297) 7,940 (1,403)