2013 Annual Report

WWW.JACOBS-UNIVERSITY.DE FINANCIAL DATA 2013

2 JACOBS UNIVERSITY FINANCIAL DATA 2013

CONTENTS ______

4 Introductory Remarks & Outlook ______

8 Financial Status & Course of Business - Profit and loss statement - Balance sheet ______

17 Summary ______

18 Appendix ______

Financial Data 2013

Funding and year-end financial statement of Jacobs University

JACOBS UNIVERSITY 3 FINANCIAL DATA 2013

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Introductory Remarks & Outlook

Jacobs University is an English-language offe- ning, and interdisciplinary modular curricula. Campus life in the ring a broad range of subjects and an international orientation. Our colleges will serve as an extracurricular program fostering personal students come from more than 100 countries. Jacobs University is development. the only German university with a residential campus, where under- graduates live in four colleges. A well-rounded campus life broadens Jacobs University will rigorously develop transdisciplinary research and adds to the academic program. efforts and more energetically pursue research applications. Wide- ranging research teams work in think tanks on specific issues Founded in 2001, Jacobs University has established itself rapidly and presented by business enterprises. built a good reputation in research and teaching, as demonstrated by rankings, approval rates, and participation in numerous interna- Diversity, Health and Mobility are the three new focus areas tional joint research projects. in teaching and research. These offer continuous opportuni- ties to provide relevant research results and to educate talented Since 2006, Jacobs University has fully made up its annual shortfall, students from all over the world in Bremen, qualifying them for the which has been due to structural factors, through the annual grants employment market. The combination of academic depth in the of the Jacobs Foundation. new focus areas and increasingly significant relevance with regard to economics – which is highly valued by partners in commerce – At the end of 2013, Jacobs University entered a new phase of reorien- along with substantial involvement in the social sciences uniquely tation. At its meeting on February 10, 2014, the Board of Governors distinguishes Jacobs University. This powerful array of strengths of Jacobs University approved the restructuring plan under the provides students with well-rounded preparation for starting a leadership of the new President, Prof. Dr.-Ing. Katja Windt, who professional career. was appointed on February 10, 2014. The strategic reorientation and financial consolidation is being supported by all parties to the In the interim, Jacobs University will increase its revenues from trilateral agreement: the Free Hanseatic City of Bremen, the Jacobs tuition fees through such positioning and, at the same time, main- Foundation, and Jacobs University. Furthermore, it forms the tain its basic social orientation though grants financed by third basis for substantial and long-term financial development up to the parties. The admissions process will continue to enable students year 2018. to attend Jacobs University on the strength of their ability and academic qualifications. The new will continue to hold to the fundamental concept of Jacobs University as an international research institution The objective of all changes is: a Jacobs University that, by 2018, is a offering a broad range of subjects. Transdisciplinary, internationa- strong, academically excellent institution; a Jacobs University that lity, and interculturality will remain the pillars of Jacobs University. stands on firm financial footing, with new revenue streams and reduced expenses; a Jacobs University that is an important part of The present high level of teaching and research will continue and the academic landscape in Bremen and Europe; a Jacobs University expand. Jacobs University will continue to pursue the objective of that continues to provide gifted young people with an outstanding offering a highly attractive portfolio of study programs for future education and a successful start in life. generations of students. These programs will be further developed with the goal of attracting international students over the long term with academically competitive and financially sustainable offerings. Jacobs University will develop its teaching role such that it will be a leading international competitor. The primary features will be work- Prof. Dr.-Ing. Katja Windt oriented study programs, comprehensive research-oriented lear- President and Member of the Executive Board (since February 2014)

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Funding & Year-End Financial Statement

Accredited by both the state and the German Council of Science During the fall semester, 1,357 students from 111 countries were and , Jacobs University is organized as a private, non- registered at the university. These students were recruited globally profit limited undertaking (gGmbH). Under its charter and bylaws, and had to undergo a performance-oriented selection process to be the university operates via four bodies: the Councilors, the Board admitted to the university. of Trustees, the Board of Governors, and the Management Board. Its subscribed capital of 33,000 Euros is held by the Jacobs Found- Following a three-year study period, the tenth class of under- ation (22,000 Euros), the Reimar Lüst Foundation (5,500 Euros), graduates (Class of 2013) received their Bachelor‘s degrees in and the Jacobs University Bremen Alumni and Friends Foundation June 2013 with a success rate of 90%. The Graduation ceremony (5,500 Euros). was held on June 7, 2013. The overall class of 2013 included 344 degree recipients: 195 with a Bachelor’s degree, 67 with The university’s President and CEO in the reporting year was a Master’s degree, five with an Executive Master’s degree, and Prof. Dr. Heinz-Otto Peitgen. The Vice President, Provost, 77 with a PhD. The involvement of these graduates with the Alumni and CEO was Prof. Dr.-Ing Katja Windt. Chief Operating Association demonstrates the close connection they feel towards Officer and Vice President Dr. Thorsten Thiel, along with their alma mater. Chief Financial Officer and Vice President Marc Janke, served the university as fully authorized agents for business purposes.

In the reporting year, the university employed an average of 483 staff members. On the balance sheet date, that number was 469. These figures include 97 professors.

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KEY PERFORMANCE INDICATORS (KPI) 2013 2012 2011 Business KPI Annual result in TEUR (thousands of Euros) -6.723 -15.321 -5.976 Operating result in TEUR 3.207 -4.152 -2.635 Balance sheet total in TEUR 138.128 158.208 185.576 Stockholders’ equity as a percentage of total assets (incl. special charges/ charges/credits and long-term committed endowments) 49 48 48 Staff members (including third-party funds) 469 489 478 Number of these as administrative staff 138 133 133 Number of these as professors 97 99 99 Number of these as research assistants 234 241 229

Education KPI Average SAT1 results in points 1.261 1.236 1.250 Average ACT2 results in points 27 27 29 Financial contribution of tuition fees (net) to the annual budget in % 19,5 17,3 14,9 Number of registered Bachelor’s degree candidates (incl. Foundation Year) 783 795 645 Number of Bachelor’s degree candidates graduated 195 173 209 Success rate of Bachelor’s degree candidates in % 93,6 91,2 95,1 Discount rate in % 44,8 48,2 50,3

Number of registered Master’s degree candidates 152 154 179 Number of Master’s degree candidates graduated 67 79 69 Success rate of Master’s degree candidates in % 91,9 94,1 95,9

Number of registered PhD students 427 450 434 Number of PhD students graduated 77 88 62 Average length of studies in months for PhD 49 46 50

Research KPI Total third-party commissions since 2001 (millions of Euros) 122 110 90 Percentage of these as overhead 13,3 11,1 11,1 Third-party applications (millions of Euros) 36 18 22 Percentage of these as overhead 14,8 15,5 14,5 Third-party funding (millions of Euros) 13 11 11 Percentage of this as overhead 15,9 16,3 14,2 Third-party funding for professors in TEUR 133 115 118

1 The Scholastic Assessment Test (SAT) is a standardized test in the United States for college

2 The American College Test (ACT) is a standardized test in the United States for college applicants

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Financial Status & Course of Business

At its regular meeting on November 5, 2013, the Board of Governors The annual deficit thus substantially improved by 8.6 million Euros accepted the resignation of Jacobs University President Prof. Dr. to –6.7 million Euros against the prior year. As in previous years, the Heinz-Otto Peitgen, effective at the end of 2013. On November shortfall was made up by use of the capital reserve, which thereafter 5, 2013, Prof. Dr.-Ing. Katja Windt was named Acting President by totaled 14.3 million Euros. the Board of Governors. She was given the task of developing a comprehensive plan for a substantive and financial reorientation As of December 31, 2013, the balance sheet total stands at circa of the university. On February 10, 2014, the Board of Governors 138 million Euros. This was reduced against the previous year due confirmed Prof. Dr.-Ing. Katja Windt as the new President of Jacobs to the sale of the special fund, with a book value of 19.5 million University Bremen. Euros. Sale of the fund allowed repayment of a loan and a conco- mitant reduction in liabilities with credit institutions of circa Effective January 1, 2013, the Jacobs Foundation decided to award its 13.0 million Euros. The investment assets of circa 111 million Euros grants to the university as affecting net income. Through 2012, these is 60% financed by own capital. Compared to the prior year, this had been carried as revenue neutral in the capital reserve. These decreased by circa 8.1 million Euros to circa 67.1 million Euros. awards thus will be posted as “grants for current operations” in the Stockholders’ equity as a percentage of total assets is 49%. profit-and-loss statement. These awards, along with the contribu- tions of the Free Hanseatic City of Bremen (granted beginning in Since 2007, the Jacobs Foundation has supported the university 2013 pursuant to a trilateral agreement between the Jacobs Univer- with a total commitment of 200 million Euros in differing annual sity, the Jacobs Foundation, and the Free Hanseatic City of Bremen) installments. At the close of the 2013 fiscal year, 61.2 million Euros will be shown as “contributions for current operations.” Thus, for the remained available from the total commitment. Thus, the Jacobs first time, both the results of ordinary business activity and the year- Foundation has provided the needed funds to ensure the strategic end results for the fiscal year will include the financial contributions reorientation of Jacobs University. just noted. For ease of comparison, it is assumed in the following material that these items were equivalently treated in the preceding The new management of Jacobs University can build on the year. For 2012, this applies solely to the award by the Jacobs Foun- November 2013 trilateral agreement with the Jacobs Foundation dation of 17.0 million Euros. and the State of Bremen. To ensure long-term financial growth, the Jacobs Foundation has made an initial ten-year commitment begin- Compared with the previous year, the total revenue of 61.1 million ning in 2018 to support the university with minimum annual grants Euros rose by circa 7.6 million Euros. It includes the grant of the Jacobs of 10 million Swiss francs. This commitment is contingent upon the Foundation increased by 2.8 million Euros, and the contribution of continuation (execution and performance) of the trilateral contract, 3.0 million Euros by the Free Hanseatic City of Bremen. On balance, the implementation of a long-term business plan by 2017, and gene- operating revenue increased by circa 1.9 million Euros and contri- rally successful academic development of the university. In support buted significantly to compensating for the 0.3 million Euro increase of the mutual contractual objectives, the State of Bremen, for a in operating costs. Thereby, along with an improvement of circa 2.1 five-year period beginning in 2013, will provide the university with million Euros in the financial result, ordinary business activities were 3.0 million Euros per year. This support aims to encourage services able to realize a 9.4 million Euro improvement, from – 12.5 million in the general financial interests of the State by the University and to Euros in the previous year down to – 3.1 million in the reporting year. contribute to the scholarly profile of the University. (See the profit and loss statement on page 9.)

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Dec. 31, 2013 Dec. 31, 2012 Change PROFIT AND LOSS STATEMENT TEUR TEUR TEUR 1. Revenue from capital stock 0 553 -553 2. Grants for current operations 26.765 21.506 5.259 3. Revenue from research and teaching 30.826 28.312 2.514 4. Other revenue from business operations 3.528 3.119 409 Total operating revenue 61.118 53.490 7.628 5. Direct materials costs 15 32 -17 6. Personnel costs 28.627 26.817 1.810 7. Depreciation 10.035 10.407 -372 8. Other business operations expenses 24.999 26.116 -1.117 Total operating expenses 63.676 63.372 304 9. Revenue from investments 6 6 0 10. Other interest and similar revenue 1.775 1.670 105 11. Depreciation and long-term investments 0 1.268 -1.268 12. Interest and similar expenses 2.323 3.063 -740 Financial result -541 -2.656 2.115 13. Result from ordinary business activity -3.099 -12.538 9.439 14. Grants for capital stock and investment 196 1.887 -1.691 15. Allocation of special charges/credits -512 -1.887 1.375 16. Extraordinary expenses 3.300 2.775 525 17. Extraordinary results -3.300 -2.775 -525 18. Miscellaneous taxes 8 8 0 19. Annual deficit -6.723 -15.321 8.598 20. Withdrawals from capital reserve 6.723 15.321 -8.598 21. Balance sheet profit 0 0 0

(Rounding discrepancies are due to the various programs. Prior year figures represent the reorganization in the reporting year.)

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BALANCE SHEET Dec. 31, 2013 Dec. 31, 2012 ASSETS TEUR TEUR A. INVESTMENT ASSETS I. Intangible property 1. Licenses purchased 946 581 2. Deposits received 163 174 1.108 755 II. Tangible property 1. Real property; rights and structures equivalent to real property 94.260 96.347 2. Technological assets and machinery 75 73 3. Other fixed assets, operation and business fixtures and installations 10.429 12.012 4. Deposits received and fixed assets under construction 110 0 104.874 108.433 III. Long-term investments 1. Holdings in related enterprises 25 25 2. Loans to related enterprises 3 0 3. Investments 2 2 4. Securities/bonds in the investment assets 5.305 19.777 5.334 19.804 B. LIQUID ASSETS I. Resources and inventory 1. Raw material, indirect material, operating material 60 58 2. Finished products and goods 42 47 3. Deposits received 0 105 102 210 II. Resources and inventory 1. Receivables from student fees 10.171 19.994 2. Miscellaneous assets 2.898 3.332 13.069 17.327 III. Cash on hand and bank balances 12.107 10.251 C. ACCRUALS 1.533 1.430 138.128 158.208

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Dec. 31, 2013 Dec. 31, 2012 LIABILITES TEUR TEUR A. SHAREHOLDERS’ EQUITY I. Subscribed capital 33 33 II. Capital reserve 14.283 21.005

B. SPECIAL CHARGES/CREDITS FOR INVESTMENT CONTRIBUTIONS AND LONG-TERM 52.780 54.135

C. RESERVES Miscellaneous reserves 5.824 1.973

D. LIABILITIES 1. Liabilities to credit institutions 50.403 63.735 2. Liabilities from deliveries and performances 1.768 2.100 3. Other liabilities 11.098 13.224 63.269 79.059

E. DEFERRALS 1.938 2.003 138.128 158.208

(Rounding discrepancies are due to the various programs. Prior year figures represent the reorganization in the reporting year.)

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Earnings Status

The year-end results for 2013 based on the profit and loss statement showed a performance against the prior year as follows:

Dec. 31, 2013 Dec. 31, 2012 Change EARNINGS STATUS TEUR TEUR TEUR Revenue from capital stock 0 553 -553 Contributions for current operations 26.765 21.506 5.259 Revenue from research and teaching 30.826 28.312 2.514 Other revenue 3.302 3.092 210 Operating performance 60.893 53.463 7.430 Personnel costs (incl. third-party funds) 27.827 26.817 1.010 Material and operating expenses 24.400 25.351 -951 Depreciation 5.459 5.447 12 Operating costs 57.686 57.615 71

Operating result 3.207 -4.152 7.359

Financial result -541 -1.387 846

Non-operating result -9.072 -9.782 710

Grants for capital stock and investment 196 1.887 -1.691 Allocation of special charges/credits for long-term committed grants -512 -1.887 1.375 Year-end result -6.723 -15.321 8.598

(Rounding discrepancies are due to the various programs. Prior year figures represent the reorganization in the reporting year.)

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To facilitate comparison with the prior year, the 2012 grant of finan- The operating result is primarily determined by the previously cial support from the Jacobs Foundation (17,000 TEUR) has likewise mentioned increase in the operating performance. been categorized as affecting net income under “grants for current operations.” The financial result includes interest revenue from student loans and interest expenses for bank loans and similar financial expenses. Operating performance rose a total of 7,430 TEUR against the prior The improvement against the prior year comes from increased year. A payment increase of 2,800 TEUR and an initial 3,000 TEUR revenue from student loans, and particularly from satisfaction of contribution from the Free Hanseatic City of Bremen were joined a bank loan and a favorable interest rate gained from extension with a 1,630 TEUR operating performance increase in the core areas of a long-term loan of 50 million Euros. In the coming year, this will of teaching (tuition fees) and research (third-party funds). result in a reduction of interest expense of circa 1.6 million Euros. Succeeding years will see continuing reductions in this expense Operating costs rose by 71 TEUR, especially in the area of personnel. pursuant to planned pay-downs. This figure reflects on the one hand the particularized effects of -vari able compensation components for professors and management The nonoperating result includes revenues from the release of personnel as well as termination agreements. On the other hand, reserves and from the disposal of investment assets, as well as the figure was affected by increased third-party funds. revenue outside the reporting period. The countervailing expenses include expenses outside the reporting period and losses from The operating result rose by 7,359 TEUR to a 3,207 TEUR (against investment disposal. Also included are reserves for the restruc- –4,152 TEUR in the prior year), attaining a positive figure for the first turing of Jacobs University pursuant to the conditions of the trila- time, chiefly due to the factors noted above. teral agreement and projected valuation adjustment for student accounts. In this context, additional measures have been under- Revenue from capital stock includes dividends in the prior year taken in the reporting year with respect to receivables management, from the investment fund. Due to the divestment at the beginning of which are already showing the first signs of success. Nevertheless, the fiscal year, no further dividends were received. it was decided to adopt a prudent business view towards the risk of shortfall and view the student receivables more conservatively. The Contributions for current operations include essentially the finan- effect of this approach is that a projected valuation adjustment with cial support of the Jacobs Foundation in the amount of 19,800 respect to student debt is created in the reporting year, but not simul- TEUR. Per agreement, the prior year amount of 17,000 TEUR taneously taken up into the reserve phase. Taken all together, these was applied to the capital reserve, but for ease of comparison is adjustments amounted to 14,465 TEUR as of December 31, 2013 shown in the presentation above in conformity with the reporting (9,889 TEUR in the prior year). The projected valuation adjustment in the contributions for current operations. In addition, the Free has been adopted as a maximum provision against contingencies Hanseatic City of Bremen provided 3,000 TEUR in 2013 pursuant with the objective that it will lead to positive results in the future with to the 2013 trilateral agreement. The further grants for current the use of receivables management. Reserves set aside in the prior purposes include, inter alia, the fourth of five agreed installments of year for construction deficiencies were not applied due to ongoing 2.0 million Euros, totaling a commitment of 10.0 million Euros. tests by independent experts in the reporting year.

Revenue from research and instruction include essentially revenue Along with 196 TEUR received for placement in active investment of 11,591 TEUR from third-party-funded research (11,027 TEUR in assets, a further 316 TEUR was taken in and designated for grants prior year), tuition fees of 15,530 TEUR (13,788 TEUR in prior year), for the following year as contributions for current purposes. Both and revenue of 3,492 TEUR from room and board in the residen- contributions were allocated to special charges/credits for endow- tial colleges (3,496 TEUR in prior year). The total of outside funds ments with long-term commitments in the amount of 512 TEUR raised since 2001 to support research projects (third-party funds) (1,887 TEUR in prior year). increased in the reporting year by circa 12.2 million Euros to circa 122.3 million Euros (circa 110.1 million Euros in prior year). Total In sum, the operating result has improved by circa 7.4 million Euros applications as of the balance sheet date were circa 36 million Euros on the prior year and the annual deficit has improved by circa 8.6 (18 million Euros in prior year). million Euros against the prior year despite the nonoperating results noted above. As in previous years, the shortfall will be made up by Other revenue includes the winding up of special charges/credits use of the capital reserve, which thereafter will total 14.3 million for endowments with long-term commitments and revenue from Euros. leased property.

Material and operating expenses include all expenditures for research and instruction; infrastructure, including energy costs, travel costs, and student grants; and other general administrative costs. The rise in energy costs due to rising prices was fully compen- sated for by switching from oil to gas. As the report was being gene- rated, construction of a block heating and generating plant had been commissioned, which will afford substantial additional savings.

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Cash Flow Status

The liquidity of Jacobs University Bremen was at all times on secure footing, as the following cash flow report shows in detail:

Dec. 31, 2013 Dec. 31, 2012 CASH FLOW STATUS TEUR TEUR Year-end result -6.723 -15.321 (–) Profit/(+) loss from disposal of investments 193 549 Settling of special charges/credits with partial reserves -1.867 -1.623 Depreciation 5.459 6.715 Valuation adjustment for student loans 4.576 4.960 Cash flow from sales 1.638 -4.720 Change in assets -314 -1.318 Change in liabilities 1.330 10.239 Cash flow from current operations 2.655 4.201 Payments received from disposal of material assets and investments 19.695 32.530 Payments received in special charges/credits for investment contri- 512 2.337 Payments made for investment in material assets and investments -7.674 -7.547 Cash flow from investment activity 12.533 27.320 Payments received from loan proceeds 0 13.000 Payments made to reduce loan principal -13.332 -36.000 Cash flow from funding activity -13.332 -23.000 Changes in funds status affecting payments 1.856 8.522 Funds status on January 1 10.251 1.729 Funds status on December 31 12.107 10.251

(Rounding discrepancies are due to the various programs. Prior year figures represent the reorganization in the reporting year.)

The funds status on December 31, 2013, reflects the cash on hand and bank balances of 12,107 TEUR (10,251 TEUR in the prior year).

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Asset Status

The asset status of Jacobs University Bremen as against the prior year is shown as follows:

Dec. 31, 2013 Dec. 31, 2012 Change ASSET STATUS TEUR TEUR TEUR Assets Intangible assets 1.108 755 353 Material investments 104.874 108.433 -3.559 Financial investments 5.334 19.804 -14.469 Fixed capital assets 111.317 128.991 -17.675 Materials and inventory 102 210 -109 Receivables 13.069 17.327 -4.257 Liquid funds 12.107 10.251 1.856 Accruals from assets 1.533 1.430 103 Liquid assets 26.811 29.217 -2.406 Total assets 138.128 158.208 -20.081

Capital Subscribed capital 33 33 0 Capital reserve 14.283 21.005 -6.723 Special charges/credits 52.780 54.135 -1.355 Shareholders’ equity 67.096 75.174 -8.078 Reserve 5.824 1.973 3.851 Liabilities 63.269 79.059 -15.790 Deferrals from liabilities 1.938 2.003 -65 Outside capital 71.032 83.035 -12.003 Total Liabilities 138.128 158.208 -20.081

(Rounding discrepancies are due to the various programs.)

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Tangible property includes land and buildings (94,260 TEUR), tech- The increase inreserves occurred primarily because of the reserve nical facilities and machinery, operation and business fixtures and created for reorientation under the provisions of the trilateral agree- installations (10,504 TEUR), and deposits received (110 TEUR). ment. This reserve is for agreed variable salary components and additional taxes arising from the current audit for the years 2004 to Long-term investments include primarily fixed-yield securities/ 2011. bonds in the investment assets as well as other investments. Disposal of the special fund reduced this holding to 5,334 TEUR. Liabilities include, along with liabilities from deliveries and perfor- mances and other liabilities, the liabilities to credit institutions. This Receivables include largely receivables from students. Prior to valu- includes a loan guaranteed by the Free Hanseatic City of Bremen in ation adjustment, this amount came to 24,396 TEUR (23,646 TEUR the amount of 50 million Euros that was extended as of August 27, in the prior year). As of the balance sheet date, receivables in the 2013, and is now due on August 31, 2023. The loan is repayable in amount of 14,465 TEUR (9,889 in the prior year) have been value yearly installments that include a principal reduction amount. The adjusted. The risk of shortfall in student receivables was conserva- sale of a further special fund in the spring of 2013 allowed the satis- tively valued in line with prudent business principles. The effect of faction of a remaining line of credit with a commercial bank. this approach is that a projected valuation adjustment with respect to student debt is created in the reporting year, but not simulta- The balance sheet total as of December 31, 2012, was circa neously taken up into the reserve phase. The projected valuation 138 million Euros. This represented a decrease from the prior year, adjustment has been adopted as a maximum provision against primarily due to disposal of the special fund having a book value contingencies with the objective that it will lead to positive results of 19.5 million Euros. Disposal of the fund allowed the satisfaction in the future with the use of receivables management. At the time, of a loan, thus reducing liabilities to credit institutions by circa it is projected that many of the changes in receivables to the indi- 13 million Euros. The fixed capital assets of circa 111 million Euros vidual student plans, changes due to the valuation adjustment, will is 60% funded by shareholders’ equity, a figure that has dropped by be collectible by the university at a later point in time. Furthermore, circa 8.1 million Euros to a current 67.1 million Euros. Shareholders’ receivables from third-party funding agreements and sales tax recei- equity amounts to circa 49%. vables of 2,367 TEUR (2,817 in the prior year) are included in the total receivables.

The capital reserve of 14,283 TEUR (21,005 TEUR in the prior year continues to be used to settle such annual deficits as may occur. Consequently, the 2013 annual deficit of 6,723 TEUR was covered by withdrawal from the capital reserve.

The special charges/credits (for investment contributions) include targeted grants and contributions for investments, chiefly invest- ment in construction. In this category are sponsored projects such as Krupp College, Mercator College, and College Nordmetall, as well as federal financing from the resources of the HochschulBauFör- derungsGesetz [university construction act – HBFG]. The reporting year saw a further construction contribution for the Sports and Convention Center. Along with part of Nordmetall College, this was financed by the Free Hanseatic City of Bremen from funds that since 2006 amount to 23 million Euros.

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Concluding Assessment on Revenue, Funding, and Asset Status

As against the prior year, the operating results showed a significant improvement of 7.4 million Euros. The operating core business improved by circa 3 million Euros due to significant increases in student fees and third-party research funds, along with substan- tial expense reduction in material and personnel expenses. By this means, the extraordinary expenses incurred primarily by setting aside reserves for restructuring could be offset. Likewise, the 2013 year-end result increased substantially by 8.6 million Euros against the prior year and thus the annual deficit could be reduced to –6.7 million Euros. This forms a solid foundation for further measures towards the reorientation of Jacobs University, with the objective of achieving a balanced budget by the year 2018.

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Appendix COUNCILLORS

James A. Baker, III. 1981–1985 White House Chief of Staff, U.S.A. 1985–1988 Secretary of the Treasury, U.S.A. 1989–1992 Secretary of State, U.S.A.

Dr. h. c. Hans-Dietrich Genscher 1969–1974 Interior Minister, Federal Republic of 1974–1992 Foreign Minister, Federal Republic of Germany

Klaus J. Jacobs (1936-2008) 1973–1990 Chairman of the Board and President of the Board of Directors for Jacobs Suchard AG (Jacobs AG before 1982) 1989–2004 Founder and President of the Jacobs Foundation, Zurich 1990–1996 Founding and Board of Directors Member of Barry Callebaut AG 1996–2007 Vice President, President of the Board of Directors, and Managing Director of Adecco AG

Hilmar Kopper 1998–1997 Executive Spokesperson, Deutsche Bank AG, Frankfurt am Main 1997–2002 Supervisory Board Chairperson, Deutsche Bank AG, Frankfurt am Main 1998–2010 Supervisory Board Chairperson, DaimlerChrysler AG, Stuttgart

Prof. Dr. Reimar Lüst 1972–1984 President, , Munich 1984–1989 Director General, European Space Agency, Paris 1989–1999 President, Alexander von Humboldt Foundation, Bonn

Dr. Fritz Schaumann 1988–1998 State Secretary for Education and Economic Affairs, Federal Republic of Germany 1998–2006 President, International University, Bremen 2006–2011 President, Foundation for the Arts, North Rhine-Westphalia

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BOARD OF GOVERNORS 2013

Prof. Dr. Dr. h.c (Chair) Prof. Dr. Otfried Jarren (since November 5, 2013) Director, Alfred Wegener Institute, Heimholtz Centre for Polar and Vice Rector for Humanities and Social Sciences, Member of Marine Research, Bremerhaven University Administration, University of Zurich, Zurich

Detthold Aden (since November 5, 2013) Ingo Kramer Chairman, OAS AG, Bremen Managing Partner, J. Heinr. Kramer Holding, GmbH, Bremerhaven President of the Confederation of German Employers’ Associations Prof. Dr. Jutta Allmendinger (BDA) President, Center, Berlin Prof. Dr. David W. Leebron, PhD Dr. h.c. Erik Bettermann (since November 11, 2013) President, , Houston Former Director, Deutsche Welle, Bonn Chair of the Board of Trustees of Welthungerhilfe Peter Lürßen (since November 5, 2013) CEO, Fr. Lürssen Werft GmbH & Co. KG, Bremen Prof. Dr. (since November 5, 2013) Head of Habitat group and HGF-MPG Group for Deep Sea Ecology Prof. Dr. Reimar Lüst (Honorary Chair) and Technology, Max Planck Institute for Marine Microbiology Charter member of the Board of Governors 1999–2004, International University Bremen (now Jacobs University) Peter Dabrowski (since November 5, 2013) Jacobs University Alumnus Ursula M. May (since November 5, 2013) Chair, Jacobs University Bremen Alumni and Friends Foundation, Head of Resource Management and Training, Siemens Wind Power Ltd., Bremen GmbH, Head of Reservoir at Wintershall-Russia, Moscow Peter Perkovic (until June 6, 2013) Andrew S. Douglas, PhD Jacobs Alumnus, Class of 2004 Associate Dean for Academic Affairs and Professor of Mechanical Chair, Foundation Board Jacobs University Bremen Alumni and Engineering, Johns Hopkins University, Baltimore Friends Foundation GmbH Global HR Communications Manager, Mars, Inc., Verden Marco R. Fuchs (since November 5, 2013) Chairman Executive Officer, OHB Systems AG, Bremen Prof. Dr. phil. rer. nat. Gerhard Roth (until June 6, 2013) Director, Department of Behavioral and Developmental Malcolm Gillis, PhD NEurobiology, Brain Research Institute, Bremen Professor of Economics, President, Rice University, Houston (1993–2004) Albert Schmitt (since November 5, 2013) Managing Director, Deutsche Kammerphilharmonie, Bremen Martin Günthner (since November 5, 2013) Senator for Economic Affairs, Labor and Ports, Bremen Prof. Dr. Hildegard Westphal (since November 5, 2013) Director, Leibniz Center for Marine Tropical Ecology, Bremen Dr. Joh. Christian Jacobs Managing Partner, Joh. Jacobs & Co. (AG & Co. KG), Hamburg Prof. Dr. E. Jürgen Zöllner (since November 5, 2013) Chair, Jacobs Foundation, Zurich Board of Directors Member, Charité Foundation, Berlin

Angelika Jahr-Stilcken (until June 6, 2013) Journalist Member of the Supervisory Board, Gruner + Jahr AG, Hamburg Supervisory Board Member, Nestlé Deutschland AG, Hamburg

JACOBS UNIVERSITY 19 Annual Report 2013

MASTHEAD

Publisher Jacobs University Bremen GmbH Campus Ring 1 28759 Bremen Telephone: +49-421-200-40 Fax: +49-421-200-4113 E-mail: [email protected] www.jacobs-university.de

Responsible for Contents Prof. Dr.-Ing. Katja Windt President and Member of the Executive Board, Jacobs University

Editorial deadline: May 2014

Printer teamdruck GmbH, Weyhe/Bremen

Illustrations Cover: Jacobs University (6) Jacobs Foundations, Zurich (1) Senator for Economic Affairs, Labor, and Ports (1) Reimar Lüst (1) Laura Maria Garcia (1) Feven Beruk (1) Samip Dhoj Raut (1)

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