STAR Financial Year 2013

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

STAR financial year 2013 results Highlights financial year 2013 (August 2012 – July 2013):  Revenues are down by 1.6% or €25k, mainly driven by a significant decline in acquisition revenues  Cost of organizing projects increased 1.1% or €16k mainly due to more expensive airplane tickets and locations  General and administrative expenses up 15% or €24k mainly due to increased depreciation costs resulting from increased investment in the STAR webshop and due to increased overhead costs, mostly driven by print/copy costs  Other income has sharply decreased as the result of several factors  Significant investments have been made in the webshop  Accounts receivable down 36% or €78k due to pro-active debtor management.

Number of debtors that are past due are down to a minimum.  Current liabilities down 47% or €22k also due to pro-active management.

Income statement Revenues for the financial year were down 1.6% or €25k compared to last year: i) lower acquisition revenues (25.1% or €125k) mainly due to later invoicing of SMW, no acquisition revenue for Case Competition and less consultants were sold for Erasmus Consultancy Project (former International Business Study); ii) lower contribution from funds as no guarantees from the Erasmus Trust Fund needed to be used (21.4% or €3k); iii) Higher contribution from students due to having more participants on certain projects (11% or 35k). The decline in acquisition revenues is a worrying trend, which needs full attention of the Board in the upcoming year.

Costs of organizing projects for the financial year increased 1.1% or €16k compared to last year.

This year’s costs were higher due to: i) higher day programme costs (63% or €47k) due to more social activities; ii) higher travelling costs for the projects, especially the STAR Management Week and more expenses on airplane tickets because prices for group bookings went up and we had more Study Trips. This was partly offset by the decrease in project costs (11% or €41k).

General and administrative expenses for the financial year were up with 15% or €24k. Main fluctuations compared to last year can be found in: i) board costs (16% or €9k): this post represents the costs STAR makes to recruit and organize activities for Active Members and Alumni. STAR had to cope with more expensive locations for Active Members weekends for example; ii) increased usage and depreciation, mainly due to the new webshop, and iii) other costs were down by 22% or € 8k due to a lower bad debt provision and a smaller donation for the Lustrum Reserve was made.

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

Other income for the financial year has increased compared to last year by 55% or 28k. The main drivers for this increase were: i) result liabilities1: €67k higher as the result of later (after august 1st) invoicing of STAR Management Week acquisition revenues; ii) a decrease of income by joint projects (21% or 8k), the revenue of the ERD had decreased due to economic circumstances; iii) a decrease in other results (from costs of € 29k to income of € 1k) due to better tracking cash flows within the organization.

Balance sheet Tangible fixed assets of STAR have decreased with 5% or €4k. STAR have invested a significant amount in the webshop. As a result of this depreciation amounts were higher which leaded to the small decrease in tangible fixed assets. Right now the webshop is the main source via which STAR will provide products and projects to its members. A student will be able to buy its membership, books, projects participation and additional study goods in the webshop.

Intangible fixed assets at the end of the financial year were €17k. During last year the STAR brand have been implemented. The new logo came with a manual for our active members on how to use the new style of STAR. This will make sure that the communication to all relations of STAR will happen in a similar style and fashion. No financial adjustments have been done to the intangible fixed assets.

Inventory was € 8k from € 0k, due to the purchase of a complete new inventory.

Accounts receivable for the financial year has decreased 36% or 78k compared to last year. STAR has no receivables from the STAR Management Week 2013 this year, due to the start of week is later than last year and no invoicing has been done yet. The aging analysis of debtors reflects very strong accounts receivable management over the past year, with only €7k of debtors over 60 days old. For this, a provision for doubtful debtors of €1.3k has been created. The strong decrease has been a result of pro-active debtor management.

Liquid assets for the financial year had a decrease of 12% or €41k, as a result of investing in the webshop and the purchase of a complete new inventory.

General reserves for the financial year has decreased with 32% or €35k, due to a release of the Lustrum reserve.

Current liabilities for the financial year have decreased 66% or €70k. Main reasons for this decline are: i) the sharp decrease of creditors (47% or €22k) due to pro-active management; and ii) no invoicing has been done for the STAR Management week yet, which leads to a decrease of €45k on services still to be delivered. This decrease is a result of timing regarding to the STAR Management Week, the event takes later place this so invoicing will start later on. This trend needs to be monitored each year, as it makes an impact on the balance sheet.

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

BALANCE SHEET FOR THE YEAR 2012 For the year ended 31 July 2013 ASSETS 31-7-2013 EUR Fixed assets Tangible fixed assets Intangible fixed assets Current assets Inventory Accounts receivable Liquid assets

31-7-2012 EUR

EUR

EUR

68.827 16.840

72.407 16.840

8.089 137.422 295.565

481 215.759 336.928

Total assets

441.076

553.168

526.743

642.415

EQUITY AND LIABILITIES 31-7-2013 EUR Equity Retained earnings General reserves Exploitation surplus/deficit

31-7-2012 EUR

427.531 73.470 (11.172)

EUR

EUR

403.269 107.636 25.586 489.828

536.491

36.914

107.247

Total equity and liabilities

31-7-2013 526.743 EUR

31-7-2012 643.739 EUR

Revenues Costs of organising projects Gross result

1.554.958 (1.455.869) 99.089

1.579.933 (1.440.118) 139.815

(190.691) (91.602)

(166.272) (26.457)

75.020 5.409

45.270 6.773

(11.172)

25.586

INCOME STATEMENT FOR THE YEAR 2012

Current liabilities

For the year ended 31 July 2013

General and administrative expenses Operating result Other income Interest income Exploitation surplus

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

NOTES TO THE FINANCIAL STATEMENTS 2012 For the year ended 31 July 2013 General STAR (Study Association Rotterdam School of Management) was incorporated on September 27, 1977.

STAR aims to provide development opportunities for Rotterdam School of Management students.

These development opportunities are staged on and off the university and are organised together with the faculty, the university and other organisations who take interest in Rotterdam School of Management students.

STAR is not required to publish financial statements, using the exemption option as laid down in Article 396, Title 9, Book 2 of the Netherlands Civil Code. These statements are primarily drawn up to inform the members of STAR and other stakeholders.

The financial statements are prepared according to the stipulations in chapter 9 Book 2 of the Netherlands Civil Code. Historical cost is used as the measurement basis, unless otherwise indicated.

The reporting and functional currency of the association is Euro.

Comparative figures Certain comparative figures have been reclassified to be consistent with the classification applied in the current year.

Summary of significant account principles Balance sheet Unless stated otherwise, assets and liabilities are stated at face value.

Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation, calculated on a straight-line or accelerating basis, over the estimated useful life's of the assets (3-10 years).

Impairment losses The carrying amounts of tangible fixed assets are reviewed at each balance sheet date to determine whether there is an indication of impairment. If any such indications exist, the asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income statement.

The recoverable amount is the greater of the net selling price and value in use. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount among that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Accounts receivable Receivables are stated at face value less provisions considered necessary for doubtful debts.

Income taxes The Association is in principle not liable for income taxes to the extent that it operates as an non-profit organisation and does not conduct commercial activities. Under that assumption these financial statements have been drawn up.

Income statement Income and expenses are recognised on an accrual basis.

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

Balance sheet as at 31 July 2013 Tangible fixed assets

31-7-2013 EUR

Furniture Computers and peripheral devices Marketing items Software and licences

24.654 8.513 505 35.155 68.827

31-7-2012 EUR 28.209 15.883 463 27.852 72.407

Inventory Inventory comprises mainly office supplies and other small items which are used by the Association.

Intangible assets Intangible assets comprises of assets that are not physical in nature, including intellectual property, goodwill and the brand name of the Association.

Accounts receivable

31-7-2013 EUR

Joint venture projects Provision Bad Debts Other receivables

14.465 (1.325) 124.282 137.422

31-7-2012 EUR 19.609 (2.234) 198.384 215.759

Liquid assets The liquid assets represent mainly bank balances that are freely available.

Equity Changes in equity during the year are specified as follows.

Retained earnings EUR Balance as of 31 July 2012 Appropriation of result 2011-2012 Mutation general reserves Exploitation surplus Balance as of 31 July 2013

403.269 24.262 427.531

General reserves EUR 107.636 34.16773.470

Exploitation Surplus EUR 24.262 (24.262) (11.172) (11.172)

Total EUR 535.167 34.167(11.172) 489.828

Provision Bad Debts EUR

Provisions

Balance as of 31 July 2012 Additions Releases Use of provision Balance as of 31 July 2013 Current liabilities

2.234 806 (1.845) 130 1.325 31-7-2013 EUR

Joint venture projects Other current liabilities Accounts payable

30.967 5.948 36.914

31-7-2012 EUR 39.289 67.959 107.247

Repayment of current liabilities will take place within one year.

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

Income statement for the year 2012 For the year ended 31 July 2013 31-7-2013 EUR

Net income Contribution students Acquisition revenues Contribution faculty and funds Sales books Contribution other

Costs of organising projects Overhead costs Project costs Day programme costs Travelling costs Recruitment and marketing costs Costs books Other costs

General and administrative expenses Office supplies costs Usage and depreciation Project costs Travelling costs Board costs Marketing costs Other costs Allocated overhead charges

Other income Interest revenues Result joined events Result liabilities Other results Result Overhead

434.132 372.639 75.316 621.437 51.433 1.554.958 31-7-2013 EUR 45.940 319.311 122.547 248.932 113.285 601.812 4.043 1.455.869 31-7-2013 EUR 23.720 29.833 73.654 2.531 68.342 11.323 11.384 30.096190.691 31-7-2013 EUR 5.409 30.967 45.410 12.113 (13.469) 80.430

31-7-2012 EUR 388.070 497.693 70.939 613.338 9.894 1.579.933 31-7-2012 EUR 56.734 360.015 75.109 210.599 105.460 617.164 15.038 1.440.118 31-7-2012 EUR 18.992 20.218 70.741 2.433 58.848 9.573 23.786 38.318166.272 31-7-2012 EUR 6.773 39.289 (22.544) 19.979 8.547 52.043

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01

Study Association of Rotterdam PO Box 1738 3000 DR Rotterdam The Netherlands _________________________________________________________________

Employees The association has no employees. All work is performed on a voluntary basis.

Exploitation surplus The association has no objective to have an exploitation surplus. However the Association will use this exploitation surplus to improve its liquidity, which means a possible exploitation surplus is added to the retained earnings.

Other information Audit obligation Under section 396 (6) Book 2 of the Netherlands Civil Code, the association is exempt from the obligation to have the financial statements audited by an auditor. Consequently, no audit has been requested and therefore no auditor's report has been issued.

Rotterdam, September 16th, 2013 On behalf of the Board,

JoĂŤl van Gilst Treasurer STAR Board 2012-2013

KVK Rotterdam 40.397.100 | Rabobank Rotterdam 13.21.98.673 | VAT NL 8039.39.875.B.01