A CLOSER LOOK STRUCTURE FINANCE GROWTH Appleby opened in 1911, thanks to the vision and generosity of our Founders Sir Edmund Walker and his son-in-law John Guest. Sir Edmund was a leading Canadian businessman and philanthropist who was passionate about education. Today’s was shaped by his commitment to having a school that could make a great impact on society through its SIR EDMUND WALKER students. It was through his philanthropy 1848-1924 that the initial 32-acre farm was purchased and the original School House (now Colley House) was built.

The school has never stopped evolving. Since the gift of the original farm we have added a chapel, classrooms, boarding houses, and sports facilities. The land area of the campus has expanded through a number of acquisitions and in 1973 we were given a gift of land in Temagami. The Appleby College you see today is a testament to the generosity of our Founders, and to the generosity of generations of parents and alumni. JOHN GUEST 1873-1953 WE FIND MANY OF OUR ALUMNI, FAMILIES AND FRIENDS HAVE QUESTIONS ABOUT THE STRUCTURE AND FINANCES OF APPLEBY COLLEGE. THIS DOCUMENT SEEKS TO ANSWER SOME OF THESE QUESTIONS.

KEY 2015 FINANCIAL Who owns Appleby College? INFORMATION

Appleby College is not owned by any current and past parents, and business ANNUAL REVENUE individual or entity. Appleby was and community leaders. Our Governors incorporated in 1911 as a not-for-profit ensure that Appleby remains focused on organization by an Act of the Province of its mission. Unlike other private schools in and is a registered charitable our community, we have no shareholders organization. Appleby is governed by a or owners. $37.2M volunteer Board composed of alumni,

Do fees cover the costs of running Tuition 91% the College? Commercial Activities 5% Donations 3% Foundation Grant 1% Over 90% of our revenues come from This is best achieved with low student to tuition. In 2015 fee income was $34 teacher ratios in the classroom, and million. The remaining revenues come exceptional faculty, supported by strong OPERATING EXPENSES from facility rentals, summer programmes, professional development. Each year, we the Appleby College Foundation and must also invest in maintaining our donations from our parents, alumni, facilities, technology, and equipment employees and friends. These revenues infrastructure. In fact, as a leader in must cover operating expenses and offset innovation amongst independent schools, $33.2M investments in capital infrastructure. 6% of Appleby’s total operating expense is technology-related with an average Our largest operating expense is our spend of $2,500 per student. The level of investment in people, and reflects an such investment will vary from year to Salaries and Benefits 62% educational philosophy grounded in year depending on needs and funding and, Financial Assistance 9% outstanding teaching. We offer an to an extent, is donor dependent. In 2015 Programme 8% enriching and innovative educational and we invested $3.3 million in capital Facilities and Contract co-curricular programme. expenditures, which included the final Services 14% phase of the renovations to the Memorial Other 7% Classroom Building.

STUDENT TO TEACHING SALARIES TOTAL IT COSTS CAPITAL EXPENDITURES TEACHER RATIO as a % of the total salary PER STUDENT ($) budget

2,000 4,000 16 2,000100 4,000 16

1,750 3,500 14 1,75090 3,500 14 80 1,500 3,000 12 1,500 3,000 12 $3.3M 70 1,250 2,500 10 1,25060 2,500 10 Median Median MedianMedian Median 1,000 2,000 8 1,00050 2,000 8 Median Median 750 1,500 6 75040 1,500 6 30 Major Renovations 500 1,000 4 500 1,000 4 20 (incl. Memorial Classroom 250 500 2 25010 500 2 Building final phase) 51% 0 0 0 00 0 0 Maintenance 38% Technology and LAKEFIELD COLLEGE APPLEBY COLLEGE Programme 11% ST. ANDREW’S COLLEGE UPPER COLLEGE

Fiscal 2014 What is the Appleby College Foundation?

In 1959 Appleby established a endowment is currently $13.8 million. uses (usually named scholarships). The registered charitable foundation to These funds have accumulated from a Foundation currently disburses 4.5% hold and manage endowment funds. combination of gifts made specifically of its funds to the College each year. The Appleby College Foundation for endowment, and earnings from Annual growth of the endowment has is a separate, legally-incorporated the careful investment of these averaged 9% over the past decade. organization, and is governed by a assets. Some of the funds held by the volunteer Board of Trustees. Appleby’s Foundation are restricted for specific

APPLEBY COLLEGE FOUNDATION

Foundation Assets Grant to Appleby College 1.00 16

14

0.75 12

10 $ $

0.50 8 Millions Millions

6

0.25 4

2

0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Fiscal Year Ending

AVERAGE RETURN ON INVESTMENT (%)

20

18

16

14

12

10

8

6 Investment Return %

4

2

0

-2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Fiscal Year Ending Why does Appleby What is Appleby doing to generate maintain an additional sources of revenue? operating surplus? Appleby relies on four major funding Grants from endowed funds in The streams: tuition fees, commercial Appleby College Foundation now Appleby operates in an efficient and activities, Foundation grants, and provide Appleby approximately prudent financial manner, employing donations. $500,000 per year. These grants are best business practices. Our annual funded by earnings from invested budgets are set with a view to the Our fee revenue is limited by our endowment funds. Gifts for endowment longer term and we plan for operating optimal enrollment of approximately will ensure the Foundation grows and surpluses to fund capital initiatives. 750 students. Raising tuition fees so these grants will grow. much above inflation impacts our These initiatives include ongoing affordability, which narrows the Donations are a very important source maintenance, renovations of diversity of our applicant pool. We of funding for Appleby. We have existing facilities and new buildings believe in the value of an Appleby benefited greatly from the generosity or infrastructure. In fiscal 2015, education and want to ensure it is of our community in the past. Yet this operating surplus before capital accessible to exceptional students, support has come from a relatively amortization and financing costs was regardless of financial status. In light small proportion of our alumni and $4 million. of this, we’re expanding our financial parents. This is an area where we After financing costs, we generated a aid programme. seek to improve engagement and $2.6 million surplus of revenues over understanding that philanthropy is Income from commercial activities has all expenses. These surpluses assist in vital to the continued success of been growing. We rent facilities when funding current capital requirements, Appleby. not required for school programmes, paying down past debt and in building and run a variety of well-recognized funds for future capital needs. day and residential summer programmes for local and international youth. This growth, however, is limited by facility capacity.

OPERATING SURPLUS & CAPITAL INVESTMENT

¢ Surplus Before Capital ¢ Capital Investment Projected 12

10

8

6 $

4 Millions 2

—

(2)

(4) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fiscal Year Ending Why does Appleby need philanthropic support?

By many measures we are prosperous. ENDOWMENT SIZE We operate well-maintained buildings * 2014 Endowment numbers listed in CAD$ on the beautiful lakeshore campus, generate revenues annually of AVERAGE FOR ALL CANADIAN INDEPENDENT SCHOOLS 32.4 $37 million and have an endowment of $14 million. This endowment APPLEBY COLLEGE, ONTARIO 75.6 contributes to the total revenue of Appleby College, but it is well below AVERAGE FOR ALL U.S. INDEPENDENT SCHOOLS 35 that of peer schools nationally and internationally. RIDLEY COLLEGE, ONTARIO 28.635

A world-class education requires ST. ANDREW’S COLLEGE, ONTARIO exceptional faculty, programmes and facilities, and there is always more TRINITY COLLEGE SCHOOL, ONTARIO we wish to offer our students. We have a long-range plan for campus LAKEFIELD COLLEGE, ONTARIO development, great ambitions for 22.7 our financial aid programme and are , ONTARIO constantly developing our educational 13.7 programme. We have an immediate need to add significantly to our indoor AVERAGE OF TOP 20 U.S. INDEPENDENT SCHOOLS 13.4 athletics space, including a whole school assembly area, and additional 0255075 100 125 150 175 200 225 250 275 300 325 350 performance space. The new athletics Endowment Size (Millions) and performing arts spaces will add approximately 40% to the floor area of the school (excluding residences), three gyms including a 1,000-seat auditorium, and a 300-plus seat TOTAL AREA PER STUDENT VS TEACHING AREA PER STUDENT performing arts centre with an atrium (June 2014) for receptions, exhibitions and other 900 gatherings. The cost of these plans 825 exceed what we can afford with our current funding model. To achieve these 750 aspirations we require philanthropic 675 support. 600

525

450 Square Feet 375

225

150

75

0 RIDLEY LAKEFIELD TRINITY ST. ANDREW’S APPLEBY UPPER COLLEGE COLLEGE COLLEGE COLLEGE COLLEGE CANADA SCHOOL COLLEGE

TOTAL AREA PER STUDENT TEACHING AREA PER STUDENT Why is financial aid for students important?

We believe it is part of our mission Financial aid allows us to bring Compared to other leading independent to make an Appleby education exceptional students to Appleby. It schools, Appleby College funds less available to outstanding students from allows us to admit great scholars, of its financial assistance from diverse socioeconomic and cultural virtuoso musicians and gifted philanthropy. This is a consequence backgrounds. We work hard to identify athletes. Financial aid allows us to of our relatively small endowment students who would benefit from an create a wonderfully diverse and and lower levels of gift support. It is Appleby education and who would talented community which is of our goal for an increasing proportion contribute to school life. Providing benefit to all our students. Appleby of financial assistance to come from financial aid to those children, benefits offers a combination of needs-based donations and endowment. them, their families, and the entire bursaries, merit scholarships and loan school community. programmes. In addition, our needs- based Centennial Scholars programme provides funding that covers the full cost of attending Appleby.

FINANCIAL ASSISTANCE

Number of Students Receiving Financial Assistance Financial Assistance Expenditure

210 7

25% 190 6 170

150 5 20% 130

4 $ 110

90

3 Millions

70 Number of Students

50 2

30 1 10

-10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year Ending

FINANCIAL AID AS A % OF OPERATING EXPENSES 2014 Results Represented

14

12

10 )

8

6 Percent (% 4

2

0

RIDLEY TRINITY LAKEFIELD UPPER CANADA APPLEBY ST. ANDREW’S COLLEGE COLLEGE SCHOOL COLLEGE COLLEGE COLLEGE COLLEGE A TIMELINE OF INNOVATION

1910s 1920s 1930s

• First 29 students admitted to • Covered rink officially opens • Appleby School Travel Club Appleby School • First meeting of the Women’s tours Europe • School House opens Association (now Parents’ • First dramatic performance (now Colley House) Association) founded by in French • Headmaster’s Residence built Lady Baillie • Original gates to the school (now the Principal’s Residence) • Chapel completed and constructed • Powell’s House built dedicated • Annual carol services • Appleby College granted charitable • The Old Boys’ Association (now introduced status by Act of Provincial Parliament Alumni Association) is founded

1940s 1950s 1960s

• Memorial Classroom Building • Optimates Club established • New (Walker) House officially (centre block) officially opens • Chapel Choir travels to England opened • Appleby School renamed Appleby for Queen Elizabeth’s coronation • John Guest Dining Hall is College • Official ceremony for Memorial dedicated • Woodworking shop installed in the Entrance to classroom building • Appleby Quarterly magazine is basement of the original Powell’s • The Appleby College Foundation launched House established and incorporated • School House named Colley House

1970s 1980s 1990s

• J.S. Gairdner Arena officially opens • Day boys outnumber boarders (203 • First Gala Auction • Library and science wing built to 184) for the first time • Appleby becomes • Appleby is given an 11-acre • Appleby College Diploma introduced co-educational and welcomes Northern Campus at Lake • Official naming ceremony of the first female students Temagami by the McLaughlin Library after • Appleby launches the Family • Nicholas Court (renamed the e.school programme Nicholas Arts Centre) officially opens • New Powell’s House officially opens • Willis Hall officially opens

2000s 2010s LOOKING AHEAD...

• Appleby hosts the 33rd International • Appleby College celebrates We look forward to Conference Centenary implementing the school’s • John Guest Student Commons built; • Centennial Scholars Programme master campus plan with the Samuel Academic Resource Centre launched introduction of new athletics and performing arts spaces. and Schlesinger Dining Hall open • Refurbished Memorial Classroom • Appleby introduces the Appleby Building opens College Diploma with Distinction in Global Leadership • Appleby recognized as a Top 100 Employer

APPLEBY COLLEGE, 540 LAKESHORE ROAD WEST, OAKVILLE, ONTARIO, CANADA L6K 3P1 www.appleby.on.ca