Assurance International Triathlon Union Presentation to the Congress

Assurance International Triathlon Union Presentation to the Congress in Lausanne Confidential 29 August 2019 Audit for the year ended 31 December 2018

Table of contents Auditor’s reports Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Table of contents 1 Executive summary 3 2 Auditor’s reports 4 3 Presentation of audit risks in the financial statements 5 4 ITU financial position 10 5 Other required information 11 International Triathlon Union Pw. C 29 August 2019 2

Table of contents 1 Executive summary Auditor’s reports Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Executive summary - audit 2018 The following table summarises the most significant findings made during our final audit of the financial statements 2018. A red or yellow symbol would indicate a need for action: Topic Comments Execution and results of the audit • We have submitted our report on the financial statements without any qualification or emphasis of matter. • We recommend that the financial statements submitted to the Congress be approved. Identified misstatements • All misstatements identified in performing the audit which could have a significant impact on the financial statements were booked. There is no uncorrected misstatement. Fraud and suspicion of fraud • We did not come across any suspected or actual fraud during the audit. Quality of application of Swiss law • During our final audit, we did not identify any findings regarding the quality of the accounting and of the financial statements presentation under Swiss law. • We note that financial statements comply with the requirements of the accounting law. Matters to be reported • The other matter to be reported to the Audit Committee and the Executive Board in accordance with the Swiss auditing standards are disclosed in Section 5 of this presentation. There is a material deficiency. The Secretary General and/or management needs to take action. There is room for improvement which should be implemented by either the Secretary General or management. The results meet our expectations; in our opinion, there is no need for action. International Triathlon Union Pw. C 29 August 2019 3

Table of contents 2 Auditor’s reports Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Auditor’s reports issued - audit 2018 1. Report of the auditor to the Executive Committee • Audit conducted in accordance with Swiss Auditing Standards. • The audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. • In our opinion, the financial statements for the year ended 31 December 2018 comply with Swiss law. 2. Detailed report to the Audit Committee and the Executive Board • Comprehensive report, with some additional information to the attention of the governance bodies of ITU. • This report contains our conclusions regarding the audit, the presentation of audit risks in the financial statements, some information required by the international auditing standards and some regulatory developments. International Triathlon Union Pw. C 29 August 2019 4

Table of contents Auditor’s reports 3 Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Audit focus areas Audit focus area Judgements and estimates made by management Revenue USD thousand 2018 2017 Revenue from IOC 3’ 500 3’ 411 Revenue from Sponsorships 1’ 042 867 Revenue from Events 2’ 181 2’ 219 Other revenues 1’ 022 930 7’ 720 7’ 427 Total Audit risks • There is a risk that sales revenue is misstated due to fraud. • There is a risk that revenue is not correctly reflected in the financial statements. • There is a risk that revenue is not recognised in accordance with the accounting policies if the cut-off point at which risks and rewards are transferred is not correctly reflected in the financial statements. International Triathlon Union Pw. C The risk that revenue is misstated due to fraud is mitigated by the controls integrated in the revenue process and by the anti-fraud measures in place. Revenue is recognized when there is persuasive evidence that an arrangement exists, title and risks and rewards are transferred, the price is fixed and determinable and collectability is reasonably assured. Audit approach • Substantive analytical procedures performed at a disaggregated level • Review of contracts, examine conditions and ensure that the appropriate revenue has been booked in the financial statements (right cut-off). • Detailed transaction testing Audit results/Pw. C conclusion Our audit provided no evidence of deviations from the applicable accounting principles. 29 August 2019 5

Table of contents 3 Presentation of audit risks in the financial statements Auditor’s reports Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Audit focus areas (cont’d) Audit focus area Judgements and estimates made by management Management could invalidate regulations, directives and controls. Management has anti-fraud programs in place. Through entity-level controls the risk of management override is decreased. The supervision of the Secretary General includes the assessment that management override controls. Audit risks Audit approach Management could invalidate or override controls, regulations or directives or could even manipulate figures in the annual financial statements. • Audit of compliance with accounting standards and controls. • Audit of specific manual accounting entries. • Analytical reviews. • Plausibility checks of accounting estimates. • Use of analytical tools. International Triathlon Union Pw. C Audit results/Pw. C conclusion On the basis of our tests, we found no evidence that management had invalidated or overridden regulations, directives or controls. 29 August 2019 6

Table of contents Auditor’s reports 3 Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Audit focus areas (cont’d) Audit focus area Marketable securities in USD thousand Fair-value Judgements and estimates made by management 2018 2017 4’ 711 5’ 012 Marketable securities are stated at market value, determined on an individual basis. Fluctuations are recognized in the Statement of Income and Expenditure for the year. In 2018, the International Triathlon Union recognized a loss on its portfolio of KUSD 259. This is mainly driven by the global market decrease. Audit risks Audit approach Marketable securities might not be adequately valued. • Substantive testing at year-end; marketable securities confirmations and valuation agreed to external sources. • Fair market value testing. International Triathlon Union Pw. C Audit results/Pw. C conclusion Marketable securities are correctly valued, in respect of the accounting policy described in the notes of the financial statements. 29 August 2019 8

Table of contents Auditor’s reports 3 Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information Audit focus areas (cont’d) Audit focus area Allocated Fund: IOC Contribution in USD thousand IOC Contribution Fund Judgements and estimates made by management 2018 7’ 358 ITU receives for the Olympic Summer Games a Contribution from the International Olympic Committee (IOC). It is considered that these proceeds, which are only received once every four 10’ 858 years, represent a core financing of ITU both for the year of the Games and the succeeding three years. 2017 The contribution is allocated initially to the IOC contribution Fund. The balance is credited to revenue every year commencing in the year of the Games. Following the recommendation of IOC and ASOIF, the ITU has proceeded to have a reserve fund for the year of the Games. Audit risks Audit approach This allocated fund is not used in accordance with its aim or not disclosed correctly in the financial statements. • Evaluate accounting policy. • Substantive testing (detailed testing of costs and accuracy and completeness of disclosures in the notes). International Triathlon Union Pw. C Audit results/Pw. C conclusion This accounting treatment is consistent and correct under the Swiss accounting law. We agree with this accounting method and with disclosures in the notes. 29 August 2019 9

Table of contents 4 ITU financial position Auditor’s reports Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information ITU financial position as per 31 December 2018 Assets 31. 12. 2018 USD thousand Cash and cash equivalents Marketable securities Other assets Total 7’ 360 56. 4 % 4’ 711 36. 1 % 976 7. 5 % 13’ 047 100. 0 % Liabilities and funds 31. 12. 2018 USD thousand Short-term liabilities 1’ 538 11. 8 % IOC Contribution Fund 7’ 042 54. 0 % Funds of ITU - Equity 4’ 467 34. 2 % 13’ 047 100. 0 % Total International Triathlon Union Pw. C 29 August 2019 10

Table of contents Auditor’s reports 5 Other required information Presentation of audit risks in the financial statements ITU financial position Executive summary Other required information as per auditing standards Topic Response Modification to the auditor's reports None. We recommend that the annual financial statements submitted to the annual Congress be approved. Disagreement with management We have no significant differences of opinion with management on accounting questions. Actual or suspected fraud/infringements of the law or regulations We did not identify any suspected or actual fraud, illegal acts or noncompliance with laws or regulations. Consultations with other auditors The management has not consulted with other auditors in order to clarify auditing or accounting issues. Quality of application of accounting standards During our final audit, we did not identify any findings regarding the quality of the accounting and of the financial statements presentation under Swiss law. We note that financial statements comply with the requirements of the accounting law. Cooperation with other auditors or experts During our current audit we have not worked with other auditors or experts. Independence and additional services provided Significant difficulties encountered in performing the audit We have not encountered significant difficulties in performing our audit work. We confirm that we fulfil the requirements with regard to registration and independence as required by Swiss law and Swiss Auditing Standards. We did not provide any services to the ITU during the year under review beyond the audit services mandated by law. Special accounting questions Not applicable Time period in which audit work was performed There was no significant events after the balance sheet date. Related party transactions Subsequent events Other matters to be communicated International Triathlon Union Pw. C We audited the annual financial statements in April-May 2019. No unusual transactions or material transactions with related parties There is no other matters to be communicated to the management or the Secretary General. 29 August 2019 11