IAATO 2018 Annual Meeting May 1 3 2018

IAATO 2018 Annual Meeting May 1 -3, 2018 Newport, Rhode Island USA Finance Committee Report Ute Hohn-Bowen, Chair 1

Agenda 1. 2016 -17 Actual Results vs. Budget 2. 2017 -18 Projected Results vs. Budget 3. 2018 -19 Proposed Budget 4. Retained Earnings/Reserve 5. 3 -Year Budget Comparison 2

Financial Year – Actuals 2016 -17 3

Profit & Loss July 2016 - June 2017 Budget vs. Actual Income June 2017 Actual Ordinary Income/Expense Income Logbooks Income Meeting Fees Membership Dues Associate Members Provisional Members Total Membership Dues Passenger Fees 65% 35% Total Passenger Fees Total Income 2016 -17 Budget 2016 -17 Variation 0 2, 000 0 66, 000 48, 000 3, 000 117, 000 68, 000 49, 000 4, 000 121, 000 0 2, 000 0 (2, 000) (1, 000) (4, 000) 413, 117 222, 448 635, 565 754, 565 406, 721 219, 004 625, 725 746, 725 6, 396 3, 444 9, 840 7, 840 4

Profit & Loss July 2016 - June 2017 Final Results – Budget vs. Actual Expenses 5

Profit & Loss July 2016 - June 2017 Final Results – Budget vs. Actual Net Other Income & Net Result 6

IAATO Balance sheet as of June 30, 2017 7

Financial Year 2016 -17 Final Accounts • The 2016 -17 accounts were presented to the Executive Committee and tax returns were filed by our accountant. • P&L Net Income US$-231, 628 after depreciation and fixed assets. • The Year End Result was US$133, 664 better than Budget. • Total Retained Earnings were US$2, 113, 308 • Members are kindly asked to accept this P&L and Balance Sheet as final. 8

Financial Year – Projected 2017 -2018 9

Profit & Loss July 2017 – June 2018 Budget vs. Projected Income based on PVR reports as of April 27, 2018 10

MEMBER DUES PROJECTION 2017 -2018 Membership Dues (US$) 2017 -18 No. Members Dues Amount US$ Total US$ Operators 39 2, 500. 00 97, 500 Operators Not Operating 11 1, 000. 00 11, 000 5 2, 500. 00 12, 500 Provisional Operators total 55 Associates Total 52 Total IAATO MEMBERS + DUES 2017 -18 107 121, 000 3, 000. 00 156, 000 277, 000 11

Total Visitors for 2017 -2018 Season 12

SUMMARY OF VISITORS 2017 -2018 SEASON (All Tourist Types) Non Revenue Passengers = 234 Fee Paying Passengers = 52, 496 Total Passenger Days South = 291, 079 X USD$3. 50 = USD$1, 018, 776. 50 13

Profit & Loss July 2017 – June 2018 Budget vs. Projected Expenses Projected Results based on March YTD (9 months) Actual Results per Quick. Books plus 3 months estimate. 14

Profit & Loss July 2017 – June 2018 Budget vs. Projected Net Other Income & Result Projected Results based on March YTD (9 months) Actual Expenses per Quick. Books plus 3 months estimate & Projected Income as per April 27, 2018 15

IAATO Balance sheet as of June 30, 2018 16

2017 -2018 Results • Projected Net Income is expected to be a loss of US$193, 560 which is US$65 K higher than expected due to lower income mostly in membership dues (US$53 K) and passenger fees (US$12 K) • Expenses are projected to be the same as budget 17

Financial Year – Budget 2018 -2019 18

Profit & Loss July 2018 – June 2019 Budget BUDGETED Income 19

MEMBERSHIP DUES PROJECTION 2018 -2019 Membership Dues (US$) 2018 -19 Projected # Operators* Amount Total 46 2, 500. 00 115, 000. 00 Provisional Operators* 4 2, 500. 00 10, 000. 00 Non Operating Year 3 1, 000. 00 3, 000. 00 Operators Total 53 Associates Total** 59 Total IAATO MEMBERS + DUES 2018 -19 * pending vote at IAATO 2018 112 128, 000. 00 3, 000. 00 177, 000. 00 305, 000. 00 ** including 4 applications pending vote at IAATO 2018 20

Total Visitors for 2018 -2019 Season IAATO Passenger Fees Estimate for 2018 -19 US$1, 157, 968 is based on 59, 619 Passengers, 330, 848 total days South @ US$3. 50 per passenger per day in the coastal waters of Antarctica & South Georgia 21

Profit & Loss July 2018 – June 2019 Budget ~ Expenses 22

BUDGET July 2018 – June 2019 Budget Net Other Income & Result 23

Projected Balance Sheet June 30, 2019 24

Profit & Loss July 2018 – June 2019 Budget Expenses Subject to Members’ Approval Total Expense Proposed Budget US$1, 650, 000 • Meeting Expenses fall into three broad categories: • Internal Investment (e. g. , Annual meeting, committee meetings, member relations, etc. ) • Program Development (e. g. , Tourism Growth Management Meeting, Field Staff Workshop, field travel, Research, etc. ) External Relations (e. g. , ATCM, COMNAP, AECO, Polar code, Treaty Party relations) • Ongoing effort in IT development and support, Meetings, Public Relations and Research • Increase in Secretariat personnel cost due to: • Salary adjustment/increases for certain positions • Anticipated new position Operations Assistant • Moved to larger home office due Secretariat growth 25

Invoices 2017 -18 Balances & 2018 -19 Dues & Advanced Passenger Fees • Invoices will be issued and emailed to all Members for the following: – Outstanding balances for FY 2017 -18 Actual Pax Fees less the 65% advance payments on original Pax Load Estimates; – FY 2018 -19 Membership Dues; – 65% advanced Passenger Fees for FY 2018 -19 (as estimated by each Operator or Provisional Operator). • The invoices will be carefully checked by the Finance Committee and the Secretariat before being sent to members. • Invoices are due for payment latest July 1, 2018. • IAATO must receive the invoiced amount free of bank charges. • Invoices not paid in a timely manner will result in interest charges, as detailed on the invoices, and members risk their good standing. 26

Retained Earnings & Projections 2016 -2017 -2018 -2019 27

Minimum Operating & Emergency Reserves Minimum Operating Reserve: Based on the Proposed 2018 -19 FY Budget: 1 Year Minimum Operating Budget = US$ 872, 906 Policy is for a 1. 5 year minimum operating budget, therefore: US$ 872, 906 X 1. 5 = US$ 1, 309, 359 Emergency Reserve: No proposed change – remains at US$400, 000 TOTAL RESERVES NEEDED: US$ 1, 709, 359 28

Retained Earnings 2016 -17, Projection 2017 -18 & Budget 2018 -19 29

Analysis of Net Income and Retained Earnings for 2018 -19 Budget: Recommendations of Finance Committee and Executive Committee • The projections presented for 2017 -18 and 2018 -19 leave IAATO with a reserve of approximately US$1. 5 Million. • As per previous slide, total reserves needed are US$1. 7 million based on 2018 -19 budget. This will be monitored carefully and if necessary a proposal will be made at IAATO 2019 to secure the required reserve. • Income based on: Revenue Passengers at the rate of US$3. 50 Per Passenger Per Day in the coastal waters of Antarctica & South Georgia • Expenses have been increased from FY 2017 -18 to FY 2018 -19, following industry growth and including the following internal investments: • Secretariat capacity, for growth proposal support • Managing for Growth Special Meeting 2018 -19 • Website complete re-design • Database update / data vizualisation • Additional Committee Meetings and internal investment • Proposed Research and fellowship

3 -Year Expense Budget Comparison 31

Thank You! 32