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% Top Five State Industries as a % of GDP Resource Development Government 24% 33% Transportation Real Estate 19% Health Care 6% All Others 8% 10% Per Capita Personal Income - $45,665 Grew 4.4% from 2010 (National Average 4.4%) 110% of the National Average of $41,560

Total Net Assets $70.10 In Billions $66.3 $57.5 $56.4 $51.7 $52.1 Each Individual Alaskan’s $44.4 Share $96,995 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12

Total Fisheries Tax Revenue Millions 87.47 69.25 68.98 64.2 59.81 58.66 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12

FY ‘12 FY '11 FY '10 FY '09 FY '08 FY '07 Millions Total Budget $13.7 $12.6 $13.5 $8.40 $7.8 $7.15 Revenue from User $2.00 $2.30 $2.46 $2.3 $2.2 $2.14 Fees 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 -2.2 -2.23 -2.2 -2 -2 -1.9 Conveyed Remaining Total 99.1 98.9 97.3 96.2 93.3 91.5 Acquired Lands 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 $2.95 $2.70 $2.20 $2.20 $3.40 $2.16 $2.39 Revenue(Billions)

Peak: 2.05 million barrels in 1988 579,300 Barrels Average in 2012 Millions of Barrels Per Day Potential Shut Off Point of TAPS

CBR Net Assets Billions 11.3 10.6 10.3 9.2 8.3 8.2 7.0 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 Today

FY '12 FY '11 FY '10 FY '09 FY '08 FY '07 FY '06 $ Million Net Assets 221.2 217.3 212.4 205.1 194.8 197.8 198.1 (Commercial Assistance Enterprise Funds) Operating Income 3.9 8.9 12.4 8.8 6.6 7.0 6.3 Operating 4.8 4.7 2.8 -2.1 -8.2 -5.8 -4.0 Expense Net Income 0.61 4.2 9.6 6.7 -1.6 1.2 2.3

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 $ Millions Net Assets 487.6 501.8 427.5 402.0 493.9 512.7 449.1 Rents and 5.3 6.4 3.8 5.0 11.6 10.5 6.6 Royalty Income Investment 1.9 80.4 44.5 -75.8 -13.2 70.1 38.7 Income

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 $ Millions 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 42.1 41.1 58.9 46.2 46.0 47.5 21.0 Income Transfers to State of Alaska/Other 29.4 23.4 22.7 23.8 10.0 16.7 8.8 Agencies Non-operating 23.3 9.6 1.4 5.1 11.3 12.2 2.4 Revenue Change in Net Assets 35.4 27.3 37.7 28.6 47.3 43.1 14.6

Net Assets 1.08 In Billions 1.040 1.012 0.975 0.946 0.899 0.856 FY ‘06 FY ‘07 FY ‘08 FY ‘09 FY ‘10 FY ‘11 FY '12

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

FY ‘12 FY '11 FY '10 FY '09 FY ‘08 FY ‘07 FY ‘06 $ Billions 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, 0.99 0.91 0.80 0.96 1.20 1.18 0.98 Real Estate, Other Increase in Market -0.99 6.00 2.79 -7.29 -2.58 4.33 2.16 Value of Investments 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

Net Assets Billions 40.1 40.33 44.3 32.9 37.8 35.9 29.9 33.3 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 Today

Country Fund $ Billions Inception Government Pension Fund – Global Norway $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

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

Net Assets In Billions 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

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 $ Millions Net Assets 893.2 828.3 768.1 716.9 671 637.4 594.3 Operating 54.7 48.6 47 47.9 48.2 49.6 51.9 Revenue Operating -171.0 -158.7 -140.3 -141.6 -143.1 -143.7 -135.4 Expense Net Income -116.3 -110.1 -93.3 -93.7 -94.9 -94.2 -83.6

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ’08 FY ‘07 FY ‘06 $ Millions 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 -61.9 -71.4 -51.6 -31.8 -17.4 -18.7 -17.6 Loss/Gain Investment Income 14.1 70.9 42.7 -43.6 -14.7 50.1 18.1 Capital Contributions by 29.0 437.4 25.2 105.5 11.3 182.7 N/A the State

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

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY '08 FY '07 FY '06 $ Millions Net Assets 864.1 830.25 835.1 795 773 710.2 656.1 Operating 106.8 106.6 105.4 95.2 118.9 115.5 104 Revenue Operating 139.2 131.1 111.7 116.3 111.5 108.3 104.2 Expense Net Revenue -32.48 -24.49 -6.3 -21 7.3 7.2 -171 Capital 89 34.5 65.1 56.5 58.3 59 53.2 Contributions

FY ‘12 FY ‘11 FY ‘10 FY ‘09 FY ‘08 FY ‘07 FY ‘06 $ Millions 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 2.1 0 0.9 0.6 0.2 0.3 before EBIDA Depreciation -6.7 -6.0 -5.8 -5.5 -4.2 -3.7 Expense Net Income -4.5 -5.8 -3.9 -4.4 -3.8 -2.9

Cumulative Total and Percentage of Total 45% $300,000,000 43% 41% 38% $250,000,000 33% 28% $200,000,000 Launch Revenue 24% Federal Grants $150,000,000 16% State Investment 10% 11% 45% $100,000,000 48% 51% 8% 56% 60% 64% 67% 4% 72% 76% 3% 73% $50,000,000 73% 71% 76% 71% 10% 9% 8% 6% 25% 19% 16% 14% 12% 9% 8% 7% 29% 21% $0