This document provides a treasurer's report and financial summary for APNIC for 2017 and the proposed budget for 2018. Some key points: - In 2017 APNIC had an operating surplus of $1.55 million, exceeding the budgeted surplus. Revenue was below budget but expenses were lower than budgeted. - Membership grew to over 6,500 members in 2017 with steady monthly gains. - The 2018 budget projects total revenue of $22.16 million and total expenses of $21.92 million, resulting in a projected operating surplus of $246,564.

1. 2018#apricot2018 45
Treasurer’s Report
APNIC General Meeting
February 2018

2. 2018#apricot2018 45
Treasurer's Report
• 2017 Financial Report
• 2018 Budget and Activity Plan
2

3. 2018#apricot2018 45
2017 Financial Report

4. 2018#apricot2018 45
Highlights
• Surplus of $1,555k exceeds budget by $632k ✔
• Revenue below budget $472k (-2.2%)
• Operating Expenses less than budget $1,022k (4.9%) ✔
• Tax Credit $82k ✔
• Equity position increases by $2,061k (8.0%) ✔
• Financial stability measure to 16.9 Months of operational
expenditure ✔
• Unqualified audit opinion ✔
4

5. 2018#apricot2018 45
Operating Surplus
5
All amounts in AUD – Australian Dollars
Actual Actual Budget Budget
2017 2016 2017 Variance $
Total Revenue 21,149,743 20,316,440 4% 21,622,140 -472,397 -2%
Total Expenses 19,676,928 18,068,294 9% 20,699,337 -1,022,409 -5%
Operating surplus before income tax 1,472,815 2,248,146 -34% 922,803 550,012 60%
Income tax benefit/ (expense) 82,284 18,217 352% 0 82,284 0%
Operating surplus after income tax 1,555,099 2,266,363 -31% 922,803 632,296 69%
REVENUE and EXPENSES (AUD) Variance %
Budget
Variance %

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Revenue
6
All amounts in AUD – Australian Dollars
Actual Actual Budget
2017 2016 2017
Investment income 841,080 890,951 -6% 1,021,893 -180,813 -18%
Membership fees 19,310,962 18,354,898 5% 19,551,336 -240,374 -1%
Non-members fees 260,010 243,923 7% 246,170 13,840 6%
Reactivation fees 27,200 37,700 -28% 35,000 -7,800 -22%
Sign-Up fees 373,250 465,000 -20% 486,750 -113,500 -23%
Sundry income 359,196 318,419 13% 280,991 78,205 28%
Foreign exchange gain/ loss (21,955) 5,549 -496% 0 -21,955 0%
TOTAL REVENUE 21,149,743 20,316,440 4% 21,622,140 -472,397 -2%
REVENUE (AUD) Variance %
Budget
Variance $
Budget
Variance %

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Expenses
7
All amounts in AUD – Australian Dollars
Actual Actual Budget
2017 2016 2017
Bank service fees 177,670 167,917 6% 177,000 670 0%
Communication expenses 561,271 532,212 5% 594,905 -33,634 -6%
Computer expenses 647,453 533,628 21% 734,651 -87,198 -12%
Contribution to APNIC Foundation 665,058 18,003 3594% 720,281 -55,223 -8%
Depreciation expense 807,596 785,218 3% 821,978 -14,382 -2%
Doubtful debt expenses 14,653 -6,225 -335% 25,000 -10,347 -41%
ICANN contract fee 244,657 243,026 1% 270,000 -25,343 -9%
Insurance expense 173,610 128,793 35% 148,000 25,610 17%
Meeting and training expenses 389,922 363,343 7% 452,250 -62,328 -14%
Membership fees 52,296 48,971 7% 54,210 -1,914 -4%
Office operating expenses 337,207 324,948 4% 337,900 -693 -0%
Postage & delivery 40,610 41,893 -3% 51,000 -10,390 -20%
Printing & photocopy 29,311 38,165 -23% 48,000 -18,689 -39%
Professional fees 1,304,343 1,409,430 -7% 1,783,720 -479,377 -27%
Recruitment expense 134,793 94,307 43% 120,000 14,793 12%
Salaries and personnel expenses 11,096,470 10,459,153 6% 11,218,142 -121,672 -1%
Sponsorship and Publicity expenses 681,342 624,179 9% 746,730 -65,388 -9%
Staff training/ Conference expenses 148,603 164,441 -10% 161,070 -12,467 -8%
Translation expenses 9,027 11,147 -19% 22,500 -13,473 -60%
Travel expenses 2,161,034 2,085,745 4% 2,212,000 -50,966 -2%
TOTAL EXPENSES 19,676,928 18,068,294 8% 20,699,337 -1,022,409 -5%
Budget
Variance $
EXPENSES (AUD) Variance %
Budget
Variance %

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Expenses by Activity
8
0 1 2 3 4 5 6 7 8 9 10 11
Total - Serving Members
Total - Regional Development
Total - Global CooperaBon
Total - Corporate
Millions
Actual vs Budget by Ac0vity Code
Budget Actual

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Expenses by Activity
9
Actual Budget
2017 2017
Facilities 606,193 614,257 -8,064 -1%
Finance & Administration 1,507,827 1,508,299 -472 0%
Human Resource Management 913,968 886,763 27,205 3%
Legal & Governance 552,531 522,538 29,993 6%
Total - Corporate 3,580,519 3,531,857 48,662 1%
Global Research 430,347 427,711 2,636 1%
Global Technical Community 1,289,433 1,533,562 -244,129 -16%
Inter-governmental Outreach 284,069 278,051 6,018 2%
Total - Global Cooperation 2,003,849 2,239,324 -235,475 -11%
APNIC Conferences 1,315,852 1,274,959 40,893 3%
APNIC Foundation 713,558 720,281 -6,723 -1%
Community Engagement 1,303,969 1,631,704 -327,735 -20%
Regional Technical Development 1,140,009 1,277,726 -137,717 -11%
Total - Regional Development 4,473,387 4,904,670 -431,283 -9%
Customer Service 3,671,745 3,819,787 -148,042 -4%
Member Training 1,303,312 1,539,540 -236,228 -15%
Registration Services 1,529,631 1,506,879 22,752 2%
Technical Infrastructure 3,114,484 3,157,280 -42,796 -1%
Total - Serving Members 9,619,172 10,023,486 -404,314 -4%
Total - Expenses 19,676,928 20,699,337 -1,022,409 -5%
EXPENSES (AUD) Variance $ Variance %

10. 2018#apricot2018 45
Statement of Financial Position
10
All amounts in AUD – Australian Dollars
Year-End 2017 Year-End 2016 Change % Change
CURRENT ASSETS 9,905,236 8,847,266 1,057,970 12%
NON-CURRENT ASSETS 30,841,683 29,174,292 1,667,391 6%
TOTAL ASSETS 40,746,920 38,021,558 2,725,362 7%
CURRENT LIABILITIES 12,253,734 11,760,872 492,862 4%
NON - CURRENT LIABILITIES 785,173 613,180 171,994 28%
TOTAL LIABILITIES 13,038,907 12,374,052 664,855 5%
NET ASSETS/TOTAL EQUITY 27,708,013 25,647,507 2,060,506 8%

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APNIC’s Reserve
11
All amounts in AUD – Australian Dollars
0
5
10
15
20
25
30
35
40
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Millions
Year
Cash Financial Assets Property Operating Expenses

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Financial Stability Measure
12
All amounts in AUD – Australian Dollars
Target of 18 months of Operating expenses
2017 2016 2015 2014
Total Equity $27,708,013 $25,647,507 $23,319,460 $21,388,497
% Equity covered by Cash/ Cash Equivalents 95.7% 110.6% 121.6% 109.1%
Actual Daily Operating Expenses $53,909 $49,430 $46,077 $42,558
Number of Months of expenses covered by Equity 16.90 17.01 16.64 16.52

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Membership Growth
13
Membership Tier
Extra Large
Very Large
Large
Medium
Small
Very Small
Associate
Total
New
Close
Total
Average Monthly Gain
2012 2013 2014 2015 2016 2017
20 20 21 22 22 23
45 43 40 44 43 41
144 147 142 137 138 138
402 392 402 431 449 473
1,114 1,198 1,388 2,165 2,643 2,971
1,021 1,294 1,701 2,336 2,590 2,769
788 957 924 133 109 132
3,534 4,051 4,618 5,268 5,994 6,547
832 813 805 968 1,048 849
245 296 238 318 322 296
587 517 567 650 726 553
49 43 47 54 61 46

14. 2018#apricot2018 45
Membership Growth
14
0
1000
2000
3000
4000
5000
6000
7000
Jun-96
Nov-96
Apr-97
Sep-97
Feb-98
Jul-98
Dec-98
May-99
Oct-99
Mar-00
Aug-00
Jan-01
Jun-01
Nov-01
Apr-02
Sep-02
Feb-03
Jul-03
Dec-03
May-04
Oct-04
Mar-05
Aug-05
Jan-06
Jun-06
Nov-06
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Jul-13
Dec-13
May-14
Oct-14
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Apr-17
Sep-17
Extra Large Very Large Large Medium Small Very Small Associate

15. 2018#apricot2018 45
Membership by Economy
15
AU, 26%
HK, 12%
IN, 8%
BD, 7%
NZ, 6%
AP, 5%
JP, 5%
SG, 5%
MY, 4%
CN, 4%
PH, 3%
TH, 3%
Other, 12%
Membership by Economy

16. 2018#apricot2018 45
Audit
Audit Rotation Policy:
• PWC undertook audit of 2017 accounts, the fourth year of
their 5 year term as APNIC auditor’s.
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
16

17. 2018#apricot2018 45
2018 Budget and Activity Plan

18. 2018#apricot2018 45
Budget Process 2018
• Activity plan and priority list driven by inputs from:
– 2016 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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19. 2018#apricot2018 45
Budget Considerations 2018
• Incorporates the 2018 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 2018
• 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 another five years ending June 2022.
• Budget and Activity Plan available at:
https://www.apnic.net/transparency
19

20. 2018#apricot2018 45
Budget 2018
20
The approved 2018 budget includes:
• Operational expenditure of AUD $21,917,453
• Revenue of AUD $22,164,017
• Operating surplus of AUD $246,564
• The capital expenditure requirements of AUD $1,013,800

21. 2018#apricot2018 45 21
Budget Revenue 2018
Actual Actual Actual Actual Actual Budget
2013 2014 2015 2016 2017 2018
Investment income 585,522 754,563 792,041 890,951 841,080 960,000 118,920 14%
Membership fees 15,074,781 15,903,111 16,933,413 18,354,898 19,310,962 20,182,202 871,240 5%
Non-members fees 240,225 254,706 243,049 243,923 260,010 237,315 -22,695 -9%
Reactivation fees 37,050 67,800 37,600 37,700 27,200 23,500 -3,700 -14%
Sign-Up fees 0 0 456,000 465,000 373,250 378,000 4,750 1%
Transfer fees 61,339 81,304 77,943 130,139 127,440 130,000 2,560 2%
Sundry income 149,100 238,198 252,764 193,829 209,801 253,000 43,199 21%
TOTAL REVENUE 16,148,016 17,299,681 18,792,810 20,316,440 21,149,743 22,164,017 1,014,274 5%
Change 7.1% 8.6% 8.1% 4.1% 4.8%
Change %
Change 2017 to
2018

22. 2018#apricot2018 45
Actual Actual Actual Actual Actual Budget
2013 2014 2015 2016 2017 2018
Bank service fees 138,337 145,823 156,496 167,917 177,670 180,500 2,830 2%
Communication expenses 490,600 483,803 591,885 532,212 561,271 581,328 20,057 4%
Computer expenses 548,748 572,528 520,784 533,628 647,453 886,136 238,683 37%
Contribution to APNIC Foundation 0 0 0 18,003 665,058 700,683 35,625 5%
Depreciation expense 753,032 765,548 764,145 785,218 807,596 827,368 19,772 2%
Doubtful debt expenses 30,990 34,259 -54,293 -6,225 14,653 25,000 10,347 71%
ICANN contract fee 136,732 260,333 284,161 243,026 244,657 248,340 3,683 2%
Insurance expense 126,751 129,971 131,550 128,793 173,610 186,000 12,390 7%
Meeting and training expenses 332,819 374,850 350,313 363,343 389,922 479,000 89,078 23%
Membership fees 48,294 55,611 49,532 48,971 52,296 52,840 544 1%
Office operating expenses 300,757 312,744 315,608 324,948 337,207 352,425 15,218 5%
Postage & delivery 45,269 22,071 51,029 41,893 40,610 39,000 -1,610 -4%
Printing & photocopy 36,586 48,508 33,807 38,165 29,311 39,000 9,689 33%
Professional fees 1,246,373 1,052,757 1,195,494 1,409,430 1,304,343 1,813,500 509,157 39%
Recruitment expense 89,472 144,423 119,077 94,307 134,793 120,000 -14,793 -11%
Salaries and personnel expenses 8,298,111 8,731,164 9,586,575 10,459,153 11,096,470 12,094,603 998,133 9%
Sponsorship and Publicity expenses 319,623 340,946 575,775 624,179 681,342 860,730 179,388 26%
Staff training/ Conference expenses 163,053 135,996 169,122 164,441 148,603 157,500 8,897 6%
Translation expenses 15,255 1,623 2,883 11,147 9,027 23,500 14,473 160%
Travel expenses 1,937,230 1,955,471 1,961,551 2,085,745 2,161,034 2,250,000 88,966 4%
TOTAL EXPENSES 15,058,033 15,568,431 16,805,493 18,068,294 19,676,928 21,917,453 2,240,525 11%
Change 3.4% 7.9% 7.5% 8.9% 11.4%
Change 2017 to
2018
Change %
22
Budget Expenses 2018

23. 2018#apricot2018 45 23
Surplus/(Deficit)
Actual Actual Actual Actual Actual Budget
2013 2014 2015 2016 2017 2018
TOTAL REVENUE 16,148,016 17,299,681 18,792,810 20,316,440 21,149,743 22,164,017 1,014,274 5%
TOTAL EXPENSES 15,058,033 15,568,431 16,805,493 18,068,294 19,676,928 21,917,453 2,240,525 11%
OPERATING SURPLUS/(DEFICIT) 1,089,983 1,731,251 1,987,317 2,248,146 1,472,815 246,564 -1,226,251 -83%
Change %
Change 2017 to
2018

24. 2018#apricot2018 45 24
Capital Expenditure
Actual Actual Actual Actual Actual Budget
2013 2014 2015 2016 2017 2018
Equipment & Software 659,449 653,998 671,551 809,626 572,206 923,800 351,594 61%
Office Furniture & Fittings 89,911 31,728 36,731 12,136 110,211 90,000 -20,211 -18%
Total - Capital Expenditure 749,360 685,725 708,282 821,762 682,417 1,013,800 331,383 49%
CAPITAL (AUD)
Change 2017 to
2018
Change %

25. 2018#apricot2018 45 25
Activity Plan 2018
Technical Infrastructure
APNIC
Conferences
Global
Technical
Community
Finance &
Administration
Customer Service
Community
Engagement
Global
Research
Human
Resource
Management
Registration
Services
Regional
Technical
Development
Inter-Governmental
Outreach
Legal &
Governance
Member
Training
APNIC
Foundation
Facilities
- 2 4 6 8 10 12
Serving
Members
Regional Development
& Outreach
Global
Cooperation
Corporate
Millions

26. 2018#apricot2018 45 26
Activity Plan 2018
The majority of APNIC’s resources and expenditure in the 2018 plan are
allocated to Serving Members – accounting for 60% of APNIC’s full time
equivalent employees, 51% of operating expenses and 58% of capital
expenditure.
The following tables and chart provide a breakdown of APNIC’s 2018 budget.
Activity FTE % Expenses
(AUD $)
% CAPEX
(AUD $)
%
Serving Members 47.6 60% 11,168,152 51% 586,800 58%
Regional Development & Outreach 16.2 20% 4,924,011 22% 328,000 32%
Global Cooperation 4.3 5% 2,195,034 10% - 0%
Corporate 11.7 15% 3,630,256 17% 99,000 10%
Grand Total 79.8 100% 21,917,453 100% 1,013,800 100%

27. 2018#apricot2018 45
2018 Budget Expense by Activity
27
Activity: FTE % Expenses % CAPEX %
Serving Members 47.6 60% 11,177,353 51% 586,800 58%
Serving Members : Customer Service 17.7 22% 4,267,404 19% 327,500 32%
Serving Members : Member Training 6.9 9% 1,710,309 8% 57,000 6%
Serving Members : Registration Services 9.2 12% 1,609,712 7%
Serving Members : Technical Infrastructure 13.8 17% 3,589,928 16% 202,300 20%
Regional Development & Outreach 16.2 20% 4,849,981 22% 328,000 32%
Regional Dev : APNIC Conferences 4.8 6% 1,473,125 7% 13,000 1%
Regional Dev : APNIC Foundation 1.0 1% 710,683 3%
Regional Dev : Community Engagement 5.1 6% 1,278,203 6%
Regional Dev : Regional Technical Development 5.3 7% 1,387,970 6% 315,000 31%
Global Cooperation 4.4 5% 2,225,935 10% -
Global Cooperation : Global Research 0.9 1% 610,772 3% -
Global Cooperation : Global Technical Community 2.8 4% 1,314,340 6%
Global Cooperation : Inter-governmental Outreach 0.6 1% 300,823 1%
Corporate 11.7 15% 3,664,184 17% 99,000 10%
Corporate : Facilities 1.7 2% 646,319 3% 90,000 9%
Corporate : Finance & Administration 7.6 10% 1,502,123 7% 9,000 1%
Corporate : Human Resource Management 2.0 3% 930,620 4%
Corporate : Legal & Governance 0.4 1% 585,122 3%
Total 79.8 100% 21,917,453 100% 1,013,800 100%

28. 2018#apricot2018 45
Thankyou..
28

29. #apricot2018
19 – 28 February 2018KATHMANDU, NEPAL
2018
45