Presentation by Kenny Huang at APRICOT 2019 on Thursday, 28 February 2019.

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Treasurer’s Report
APNIC General Meeting
February 2019

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Treasurer’s Report
• 2018 Financial Report
• 2019 Budget and Activity Plan

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2018 Financial Report

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Highlights
• Surplus of $1,113k exceeds budget by $866k
• Revenue over budget by $137k (1%)
• Expenses less than budget by $703k (3%)
• Equity position increases by $1,113k (4%)
• Financial stability measure of 16.3 months of operational
expenditure
• Unqualified audit opinion
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Revenue
5
All amounts in AUD – Australian Dollars
REVENUE (AUD)
Actual Actual
Variance %
Budget
Budget Variance $
Budget Variance
%
2018 2017 2018
Investment income 872,034 841,080 4% 960,000 -87,966 -9%
Membership fees 20,213,860 19,310,962 5% 20,182,202 31,658 0%
Non-members fees 251,054 260,010 -3% 237,315 13,739 6%
Reactivation fees 22,000 27,200 -19% 23,500 -1,500 -6%
Sign-Up fees 330,000 373,250 -12% 378,000 -48,000 -13%
Transfer fees 164,145 127,440 29% 130,000 34,145 26%
Sundry income 447,939 209,801 297% 253,000 -342,828 -99%
TOTAL REVENUE 22,301,031 21,149,743 5% 22,164,017 137,014 1%

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Actual Actual Budget
2018 2017 2018
Bank service fees 193,762 177,670 9% 180,500 13,262 7%
Communication expenses 542,895 561,271 -3% 581,328 -38,433 -7%
Computer expenses 817,599 647,453 26% 886,136 -68,537 -8%
Contribution to APNIC Foundation 732,710 665,058 10% 700,683 32,027 5%
Depreciation expense 856,029 807,596 6% 827,368 28,661 3%
Doubtful debt expenses -1,445 14,653 -110% 25,000 -26,445 -106%
ICANN contract fee 278,866 244,657 14% 248,340 30,526 12%
Insurance expense 189,738 173,610 9% 186,000 3,738 2%
Meeting and training expenses 396,545 389,922 2% 479,000 -82,455 -17%
Membership fees 48,309 52,296 -8% 52,840 -4,531 -9%
Office operating expenses 342,458 337,207 2% 352,425 -9,967 -3%
Postage & delivery 42,808 40,610 5% 39,000 3,808 10%
Printing & photocopy 35,605 29,311 21% 39,000 -3,395 -9%
Professional fees 1,458,389 1,304,343 12% 1,813,500 -355,111 -20%
Recruitment expense 185,554 134,793 38% 120,000 65,554 55%
Salaries and personnel expenses 11,962,294 11,096,470 8% 12,094,603 -132,309 -1%
Sponsorship and Publicity expenses 759,741 681,342 12% 860,730 -100,989 -12%
Staff training/ Conference expenses 199,349 148,603 34% 157,500 41,849 27%
Translation expenses 7,855 9,027 -13% 23,500 -15,645 -67%
Travel expenses 2,165,459 2,161,034 0% 2,250,000 -84,541 -4%
TOTAL EXPENSES 21,214,519 19,676,928 8% 21,917,453 -702,934 -3%
Budget
Variance $
EXPENSES (AUD) Variance %
Budget
Variance %
Expenses
6
All amounts in AUD – Australian Dollars

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Expenses by Activity
7
0 1 2 3 4 5 6 7 8 9 10 11 12
Total - Serving Members
Total - Regional Development
Total - Global Cooperation
Total - Corporate
Millions
Actual vs Budget by Activity Code
Budget Actual
All amounts in AUD – Australian Dollars

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Expenses by Activity
8
Actual Budget
2018 2018
Facilities 647,118 646,319 799 0%
Finance & Administration 1,492,350 1,468,195 24,155 2%
Human Resource Management 1,011,533 930,620 80,913 9%
Legal & Governance 573,523 585,122 -11,599 -2%
Total - Corporate 3,724,523 3,630,256 94,267 3%
Global Research 690,205 610,772 79,433 13%
Global Technical Community 1,232,634 1,314,340 -81,707 -6%
Inter-governmental Outreach 323,825 269,922 53,903 20%
Total - Global Cooperation 2,246,663 2,195,034 51,629 2%
APNIC Conferences 1,475,079 1,473,125 1,954 0%
APNIC Foundation 738,731 710,683 28,048 4%
Community Engagement 1,258,087 1,412,411 -154,324 -11%
Regional Technical Development 1,397,900 1,327,792 70,108 5%
Total - Regional Development 4,869,797 4,924,011 -54,214 -1%
Customer Service 3,887,938 4,172,199 -284,261 -7%
Member Training 1,519,330 1,718,833 -199,503 -12%
Registration Services 1,620,765 1,687,192 -66,427 -4%
Technical Infrastructure 3,345,504 3,589,928 -244,424 -7%
Total - Serving Members 10,373,537 11,168,152 -794,615 -7%
Total - Expenses 21,214,519 21,917,453 -702,934 -3%
EXPENSES (AUD) Variance $ Variance %
All amounts in AUD – Australian Dollars

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Actual Actual Budget Budget
2018 2017 2018 Variance$
Total Revenue 22,301,031 21,149,743 5% 22,164,017 137,014 1%
Total Expenses 21,214,519 19,676,928 8% 21,917,453 -702,934 -3%
Operating Surplus 1,086,512 1,472,815 -26% 246,564 839,948 341%
Fair valueloss onfinancial assets -73,475 0 - 0 -73,475 -
SurplusbeforeIncomeTax 1,013,037 1,472,815 -31% 246,564 766,473 311%
Incometax benefit 99,935 82,284 21% 0 99,935 -
SURPLUS FOR THE YEAR 1,112,972 1,555,099 -28% 246,564 866,408 351%
REVENUE and EXPENSES (AUD) Variance%
Budget
Variance%
Operating Surplus
9
All amounts in AUD – Australian Dollars
Adoption of the new accounting standard AASB 9 will report the change in the value of the investment portfolio in the income statement

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Statement of Financial Position
10
All amounts in AUD – Australian Dollars
Year End 2018 Year End 2017 Change % Change
ASSETS
Total Current Assets 10,119,457 9,905,236 214,221 2%
Total Non-Current Assets 32,620,117 30,841,683 1,778,433 6%
TOTAL ASSETS 42,739,574 40,746,920 1,992,654 5%
LIABILITIES
Total Current Liabilities 13,213,692 12,253,734 959,959 8%
Total Non-Current Liabilities 704,897 785,173 -80,277 -10%
TOTAL LIABILITIES 13,918,589 13,038,907 879,682 7%
NET ASSETS/ TOTAL EQUITY 28,820,985 27,708,013 1,112,972 4%

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APNIC’s Reserve
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All amounts in AUD – Australian Dollars
0
5
10
15
20
25
30
35
40
45
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Millions
Year
Cash Financial Assets Property Operating Expenses

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Membership Growth
12
Membership Tier 2013 2014 2015 2016 2017 2018
Extra Large 20 21 22 22 23 24
Very Large 43 40 44 43 41 44
Large 147 142 137 138 138 143
Medium 392 402 431 449 473 483
Small 1,198 1,388 2,165 2,643 2,971 3,376
Very Small 1,294 1,701 2,336 2,590 2,769 2,967
Associate 957 924 133 109 132 125
Total 4,051 4,618 5,268 5,994 6,547 7,162
New 813 805 968 1,048 849 825
Close 296 238 318 322 296 210
Total 517 567 650 726 553 615
Average Monthly Gain 43 47 54 61 46 51

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Membership Growth
13
0
1000
2000
3000
4000
5000
6000
7000
8000 Jun-96
Dec-96
Jun-97
Dec-97
Jun-98
Dec-98
Jun-99
Dec-99
Jun-00
Dec-00
Jun-01
Dec-01
Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Extra Large Very Large Large Medium Small Very Small Associate

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Membership by Economy
14
AU, 26%
HK, 12%
BD, 9%
IN, 8%
NZ, 6%
AP, 5%
JP, 5%
SG, 5%
CN, 4%
MY, 4%
PH, 3%
TH, 3%
Other, 12%
Membership by Economy

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Audit
Audit Rotation Policy:
• PwC undertook audit of 2018 accounts, the final year of their 5
year term as APNIC auditor.
• APNIC will in 2019 appoint new external auditor as per Executive
Council policy.
Audit Outcome:
• PwC provided an unqualified audit opinion.
– The accounts give a true and fair view of APNIC’s financial position
– Comply with the relevant accounting standards
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2019 Budget and Activity Plan

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Budget Process 2019
• Activity plan and priority list driven by inputs from:
– 2018 APNIC Survey
– EC Strategic Guidance
– APNIC’s existing operational commitments
• Bottom up, zero based expense budgeting
• Revenue derived from detailed analysis of Membership database
and income forecasts
• Continued focus on financial stability
• Continue to ensure a high level of financial governance and
control in APNIC activities.
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Budget Considerations 2019
• Incorporates the 2019 Activity Plan
– A view of APNIC’s expenses grouped by Activities
– Allocation of FTE, Operating and Capital Expenses
– Includes details on major initiatives and projects for 2019
• APNIC’s taxation status as a “Mutual Organization” by way of a
Private Ruling from the Australian Taxation Office was re-confirmed
in November 2017 for a further five years ending June 2022.
• Budget and Activity Plan available at:
https://www.apnic.net/transparency
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Budget 2019
19
The approved 2019 budget includes:
• Operational expenditure of AUD $22,928,778
• Revenue of AUD $23,173,579
• Operating surplus of AUD $244,801
• The capital expenditure requirements of AUD $874,411

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Budget Revenue 2019
All amounts in AUD – Australian Dollars

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Budget Expenses 2019
All amounts in AUD – Australian Dollars

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22
Surplus/(Deficit)
All amounts in AUD – Australian Dollars

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Capital Expenditure 2019
All amounts in AUD – Australian Dollars

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Activity Plan 2019
All amounts in AUD – Australian Dollars

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Activity Plan 2019
The majority of APNIC’s resources and expenditure in the 2019 plan are
allocated to Serving Members – accounting for 58% of APNIC’s full time
equivalent employees, 50% of operating expenses and 55% of capital
expenditure.
The following tables and chart provide a breakdown of APNIC’s 2019 budget.
Expenses CAPEX
(AUD $) (AUD $)
Serving Members 47.40 58% $11,515,420 50% $483,411 55%
Regional Development 17.95 22% $5,151,144 23% $203,000 23%
Global Cooperation 4.75 6% $2,269,206 10% $60,000 7%
Corporate 11.90 15% $3,993,008 17% $128,000 15%
Grand Total 82.00 100% $22,928,778 100% $874,411 100%
Activity FTE % % %
All amounts in AUD – Australian Dollars

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2019 Budget Expense by Activity
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Activity FTE % Expenses (AU$) % CAPEX (AU$) %
Serving Members 47.40 58% $11,515,420 50% $483,411 55%
Customer Service 15.35 $3,957,397 $36,300
Member Training 8.00 $2,014,799 $53,000
Registration Services 10.15 $1,940,109 -
Technical Infrastructure 13.90 $3,603,115 $394,111
Regional Development 17.95 22% $5,151,144 23% $203,000 23%
APNIC Conferences 5.10 $1,432,559 $3,000
APNIC Foundation 1.20 $761,208 -
Community Engagement 3.65 $994,588 -
Regional Technical Development 8.00 $1,962,789 $200,000
Global Cooperation 4.75 6% $2,269,206 10% $60,000 7%
Global Research 0.90 $714,191 $60,000
Global Technical Community 3.02 $1,248,536 -
Inter-governmental Outreach 0.83 $306,479 -
Corporate 11.90 15% $3,993,008 17% $128,000 15%
Facilities 1.75 $648,106 $115,000
Finance& Administration 6.75 $1,508,088 $9,500
Human ResourceManagement 2.00 $1,049,628 $3,500
Legal & Governance 1.40 $787,186 -
Total 82.00 $22,928,778 $874,411
All amounts in AUD – Australian Dollars

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Thank you
27

28. 201947
#apricot2019
18 – 28 February 2019
DAEJEON
SOUTHKOREA