Building a Legacy Through Sport Ioc Final Report 2009–2012

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

BUILDING A LEGACY THROUGH SPORT

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 BUILDING A LEGACY THROUGH SPORT

Message from the IOC President 03 Celebrating the Games 05 “Olympism did not Inspiring and Educating Youth 12 reappear within the Olympism in Action 18 Supporting the Olympic Movement 30 context of modern IOC Administration—Efficiency and Agility 40 civilisation in order Major Decisions of the IOC Sessions 46 to play a local or IOC Membership 48 Report of the Auditors and 54 temporary role. The Combined Financial Statements mission entrusted to us is universal and timeless.”

Pierre de Coubertin Founder of the modern Olympic Movement

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 MESSAGE FROM THE IOC PRESIDENT

The success of the International Olympic Committee In 2009, an Olympic Congress was convened in Copenhagen Message from the IOC President 03 is not measured solely by what occurs today, but by to take the pulse of the Olympic Movement and chart its future. Celebrating the Games 05 the lasting legacy we create through sport. All of the Delegates from every aspect of the Movement—National IOC’s activities—from staging the Olympic Games Olympic Committees, International Federations, coaches, Inspiring and Educating Youth 12 and the Youth Olympic Games, to bringing sport to athletes and others—produced a blueprint for the future with impoverished communities—are intended to deliver 66 recommendations that have won wide acceptance among Olympism in Action 18 long-term positive benefits. Olympic organisations. Supporting the Olympic Movement 30 Over the past four years, the IOC and its partners in the The IOC’s continued commitment to placing sport as a Olympic Movement have advanced a positive legacy on tool for peace, international development and collaboration IOC Administration—Efficiency and Agility 40 multiple fronts, and this final report on the activities of the was recognised by the United Nations (UN) in 2009 when Major Decisions of the IOC Sessions 46 IOC between 2009 and 2012 focuses on this theme. It is the IOC was granted UN Observer status. The designation structured around our four primary work streams: ensuring allows the IOC to promote sport at a higher level by taking IOC Membership 48 the regular celebration of the Games; inspiring and educating the floor at the UN General Assembly and participating in youth; promoting sport and Olympic values; and supporting consultation meetings. Often working with UN partners, the Report of the Auditors and 54 the Olympic Movement. IOC is engaged in projects related to humanitarian assistance, peace-building, education, gender equality, the environment Combined Financial Statements The 2010 Olympic Winter Games in Vancouver and the and the fight against HIV/AIDS, hence contributing to the 2012 Olympic Games in London succeeded in every aspect, achievement of the UN Millennium Development Goals. with awe-inspiring competition and superb organisation that set new standards for legacy planning and sustainability. Although it is far too early to declare victory in the quest The enthusiasm and excitement in the host countries were for gender equality in sport, the London Games reached shared with huge global audiences. Some Olympic venues significant milestones on the road to achieving that goal. in Vancouver have already been transformed for community For the first time, women competed in every sport on the use, and residents will benefit from new transportation links Olympic Programme and represented more than 44 per cent and other infrastructure improvements for years to come. of the competitors. Every National Olympic Committee has In London, the Olympic Park—a former industrial wasteland now sent women to the Games. —will become a model urban community, with residential We can also report that the Olympic Movement’s financial housing, businesses, sporting venues and parkland. foundation is stronger than ever, even after the worst global The first outhY Olympic Games (YOG) in Singapore in 2010 recession in more than 60 years. More than 90 per cent of the and the first Winter Youth Olympic Games in Innsbruck in revenue that the IOC generated was passed to International 2012 launched a new Olympic tradition that engages young Federations, National Olympic Committees and Organising people through sport, education and cultural programmes. Committees of the Olympic Games. Participants returned to their home communities as enthusiastic ambassadors for Olympic values.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 CELEBRATING THE GAMES

The Olympic Games are more than just a sporting Message from the IOC President 03 event. They are a global stage for the world’s best Celebrating the Games 05 athletes to bring Olympic values to life. The 2010 Olympic Winter Games in Vancouver and the Games Inspiring and Educating Youth 12 of the XXX Olympiad in London were filled with inspirational athletic achievements. Olympism in Action 18 To be truly successful however, the Games must do Supporting the Olympic Movement 30 more than deliver stunning and inspiring competition. The Vancouver and London Games succeeded on IOC Administration—Efficiency and Agility 40 multiple fronts and raised the bar for future Games by: Major Decisions of the IOC Sessions 46 • Providing a lasting and positive legacy for the host city and for sport IOC Membership 48 • Promoting the Olympic values of excellence, friendship Report of the Auditors and 54 and respect to the widest possible audience Combined Financial Statements • Advancing the goals of non-discrimination and sustainability

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 THE OLYMPIC GAMES Inspiring and Educating Youth 12 ARE A GLOBAL STAGE Olympism in Action 18 Supporting the Olympic Movement 30 FOR THE WORLD’S IOC Administration—Efficiency and Agility 40 BEST ATHLETES Major Decisions of the IOC Sessions 46 TO BRING OLYMPIC IOC Membership 48 Report of the Auditors and 54 VALUES TO LIFE. Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT CELEBRATING THE GAMES: IOC FINAL REPORT 2009–2012 UNPARALLELED ATHLETICISM

In Vancouver, following an Opening Ceremony dedicated Message from the IOC President 03 to Nodar Kumaritashvili, who died tragically during training the Celebrating the Games 05 same day, the world’s athletes confirmed that continuing with the celebrations was the best way possible to pay tribute to Inspiring and Educating Youth 12 the Georgian athlete. They delivered sporting highlights such as the stunning performance by the Republic of Korea’s figure Olympism in Action 18 skater Yuna Kim, Canada’s thrilling overtime victory in the Supporting the Olympic Movement 30 ice hockey final, US snowboarder Shaun White’s dominating run in the half-pipe, German alpine skier Maria Höfl-Riesch’s IOC Administration—Efficiency and Agility 40 two gold medals, the impressive double gold and silver medal wins by Norway’s Emil Hegle Svendsen in biathlon Major Decisions of the IOC Sessions 46 competition, and skiing triumphs by Switzerland’s Didier Defago and USA’s Lindsey Vonn. IOC Membership 48 VANCOUVER 2010 In London, Great Britain’s Nicola Adams won the first ever Report of the Auditors and 54 women’s boxing gold medal, US swimmer Michael Phelps IN NUMBERS Combined Financial Statements became the most decorated Olympian of all time after earning his 22nd medal, Jamaican sprinter Usain Bolt made history 2,566 athletes, including more than by retaining his title in both the 100m and 200m events 40 per cent women and British sailor Ben Ainslie won his fourth gold and became the most successful sailor in Olympic history. Kenya’s David 82 National Olympic Committees Rudisha broke the world record en route to a gold medal (NOCs), including six for the first time in the 800m event, British athlete Jessica Ennis thrilled 26 NOCs had medal winners a global audience with her win in the heptathlon, China’s Ye Shiwen won swimming gold and shattered the world record in the 400m individual medley, and Russia’s Aliya Mustafina won four medals in gymnastics. LONDON 2012 IN NUMBERS

10,568 athletes, including more than 44 per cent women 204 NOCs 85 NOCs had medal winners, including seven for the first time

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BUILDING A LEGACY THROUGH SPORT CELEBRATING THE GAMES: IOC FINAL REPORT 2009–2012 BUILDING A LEGACY

Through early legacy planning, the Vancouver and London In London, where many of the venues were built with Message from the IOC President 03 Organising Committees achieved unparalleled successes in recycled industrial materials, the Aquatics Centre, the Celebrating the Games 05 community development and sustainability. The organisers VeloPark and the Copper Box arena are all being converted demonstrated a clear understanding of each host city’s for community use. The sports venues will anchor a model Inspiring and Educating Youth 12 needs and made choices that not only ensured a spectacular urban community that will include residential, retail and celebration in the near-term, but will also serve the community commercial structures, as well as schools and parkland. Olympism in Action 18 for the long-term. Future organising committees are factoring The IOC’s Role in Legacy Planning lessons learned from Vancouver and London into their Supporting the Olympic Movement 30 The success of the two most recent Olympic Games planning, and have benefited from the IOC’s knowledge- reflects the efforts of the IOC and the Olympic Movement transfer programmes. IOC Administration—Efficiency and Agility 40 to prioritise legacy planning from the start of the bidding Major Decisions of the IOC Sessions 46 The Vancouver Organising Committee stressed inclusiveness process. This foresight has strengthened the legacy of in its Games preparations by establishing partnerships with recent Games, particularly in the area of sustainability. indigenous and social and economically disadvantaged IOC Membership 48 In 2011, the IOC hosted the first “Bidding for the Games” groups, providing them with economic, social and cultural conference to help potential bid cities understand the process Report of the Auditors and 54 opportunities. As official Games partners, Vancouver’s and benefits of bidding for the Olympic Games or Youth Four Host First Nations were involved in decision-making Combined Financial Statements Olympic Games. The conference explained how insights processes and provided with an international platform for gained during the self-evaluation process deliver benefits showcasing their traditions, raising awareness of Canada’s even if a bid is not ultimately successful. cultural diversity. The London Games transformed a former industrial wasteland into the Olympic Park, a task that Lessons learned from planning in Vancouver and London required excavating more than 2.3 million cubic metres have been shared through the IOC’s Observer Programme of contaminated soil. —an integral component of the Olympic Games Knowledge Management Programme. Representatives from Sochi 2014, The Vancouver and London Games also left sport legacies at Rio 2016, PyeongChang 2018, and the three 2020 candidate both the elite and grassroots levels. The curling venue at the cities, participated in the Observer Programme in London, Vancouver Games is now a heavily used community centre visiting competition venues and non-competition sites, and that includes a hockey arena, a gymnasium, and indoor and sharing information in roundtable discussions. They also outdoor swimming pools. The Richmond Olympic Oval, used participated in the IOC’s thorough post-Games debriefing for the speed skating events in Vancouver, is now a multi- covering all aspects of the lessons learned in London. sports community centre for athletes of all abilities featuring facilities for a wide range of sports including badminton, basketball, indoor rowing, golf, wheelchair basketball as well as a climbing wall and fitness classes. It has received over 2.5 million visits since it opened to the public.

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BUILDING A LEGACY THROUGH SPORT CELEBRATING THE GAMES: IOC FINAL REPORT 2009–2012 SHARING THE MAGIC

The Olympic Games are one of the few truly global events The past four years also brought a dramatic increase Message from the IOC President 03 that give people from widely different backgrounds a chance in digital coverage, ushering in a new era of engagement, Celebrating the Games 05 to meet in solidarity. The Games personify the values of particularly among younger audiences. During the London excellence, friendship and respect. Sharing the excitement Games, coverage on mobile and other digital platforms Inspiring and Educating Youth 12 and inspiration of the Games is one of the most effective ways increased exponentially, almost matching television coverage. to promote Olympic values to a worldwide audience. London was also the first time that the IOC live-streamed an Olympism in Action 18 Olympic Games via its YouTube channel in 64 territories in Over the past four years, the IOC has significantly expanded Asia and Sub-Saharan Africa where digital broadcast rights Supporting the Olympic Movement 30 the reach of the Games through new broadcast partnerships had not been assigned to a broadcast partner, giving viewers and the use of new media platforms. IOC Administration—Efficiency and Agility 40 access to live coverage and the Olympic News Channel feed The unprecedented growth of broadcast coverage of the free of charge. Major Decisions of the IOC Sessions 46 Games, combined with the growth of digital coverage, The IOC leveraged its social networks to share the provided global audiences with around-the-clock Olympic experience with fans of all ages. Through social IOC Membership 48 opportunities to see their favourite athletes in action. media platforms such as Facebook, Twitter and Sina Weibo, Report of the Auditors and 54 Beginning with Vancouver, Olympic Broadcasting Services the IOC engaged with fans and followers in five languages— Combined Financial Statements (OBS) took over the role of host broadcaster, producing more English, French, Russian, Portuguese and Mandarin. Plans consistent quality coverage, more efficiently. The Vancouver to expand the conversation to Spanish, Arabic and Korean Games saw the launch of the Olympic News Channel, are underway. providing 24/7 news coverage and athlete interviews during The introduction of the Olympic Athletes’ Hub at the London Games-time. In London, the channel provided interviews Games allowed more than 3,000 athletes and nearly 300,000 with nine out of 10 medal winners, giving some countries Olympic fans to connect through social media. Olympians access to footage of national heroes that they could not participated in online chats and provided an inside view of otherwise have obtained. life in the Olympic Village. By establishing a community across multiple online channels that reached more than 21 million Olympic followers at the end of 2012, the IOC is now able to maintain interest in the Games all year round.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

VANCOUVER COVERAGE LONDON COVERAGE IN NUMBERS IN NUMBERS

Broadcast audience of 1.6 billion viewers Broadcast audience of 3.7 billion viewers, the highest viewership in Games history Over 31,900 hours of television coverage Over 100,000 hours of television coverage 235 broadcasters and television stations showed coverage of the Games around the world Digital broadcast partners delivered over 1.9 billion video streams globally on more than 170 platforms

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BUILDING A LEGACY THROUGH SPORT CELEBRATING THE GAMES: IOC FINAL REPORT 2009–2012 EMPOWERING WOMEN

Although much work still needs to be done, the last four Message from the IOC President 03 years have seen significant progress toward the goal of Celebrating the Games 05 gender equality on the field of play. The ancouverV and London Games set new records for women’s participation, Inspiring and Educating Youth 12 with women comprising more than 40 per cent of the athletes in Vancouver, and more than 44 per cent in London. Olympism in Action 18 Women competitors in London outnumbered men on 35 Supporting the Olympic Movement 30 NOC delegations, from some of the smallest to some of the largest. For the first time, women competed in all sports IOC Administration—Efficiency and Agility 40 on the Olympic Programme—the result of a 2009 vote by the IOC Executive Board to add women’s boxing. And the Major Decisions of the IOC Sessions 46 participation of women athletes from Saudi Arabia, Qatar and Brunei Darussalam means that all NOCs have now IOC Membership 48 sent women to the Games. Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 INSPIRING AND EDUCATING YOUTH

From its inception, the Olympic Movement has Message from the IOC President 03 focused on building a legacy by and through youth. Celebrating the Games 05 Over the past quadrennium, the IOC significantly advanced that goal with the successful launch of Inspiring and Educating Youth 12 the Youth Olympic Games and new initiatives to use sport as a tool for education. Olympism in Action 18 Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 THE OLYMPIC Inspiring and Educating Youth 12 MOVEMENT FOCUSES Olympism in Action 18 Supporting the Olympic Movement 30 ON BUILDING A LEGACY IOC Administration—Efficiency and Agility 40 BY AND THROUGH Major Decisions of the IOC Sessions 46 YOUTH. IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT INSPIRING AND EDUCATING: IOC FINAL REPORT 2009–2012 THE YOUTH OLYMPIC GAMES

The first Youth Olympic Games (YOG) in Singapore in Both the summer and winter editions featured innovative Message from the IOC President 03 2010 and the first Winter Youth Olympic Games in Innsbruck new formats and disciplines. The introduction of events for Celebrating the Games 05 in 2012 exceeded expectations and demonstrated the teams with members of both genders and from different relevance of an event that combines high-level sporting NOCs helped break down social, cultural and language Inspiring and Educating Youth 12 competition with an exciting Culture and Education barriers. Exciting new formats like 3-on-3 basketball and Progamme (CEP). head-to-head canoe and kayak sprinting were enormously Olympism in Action 18 popular in Singapore. In Innsbruck several new events The inaugural YOG in Singapore saw nearly 3,600 athletes, were created for the Games, such as the ice hockey skills Supporting the Olympic Movement 30 aged 15 to 18, from all 204 NOCs participate in the 12-day challenge, while other events—including ski halfpipe, competition that featured 26 sports. Almost half of the snowboard slopestyle, and women’s ski jumping made IOC Administration—Efficiency and Agility 40 participating NOCs medaled, including a first Olympic gold their first appearance at an Olympic event after being medal for Vietnam and a first Olympic medal for Jordan. Major Decisions of the IOC Sessions 46 added to the sports programme for the Sochi 2014 More than 230,000 tickets were sold and global television Olympic Winter Games. IOC Membership 48 coverage reached 160 territories, with an estimated audience of 247 million. YOG participants were inspired by YOG Ambassadors, Report of the Auditors and 54 including pole-vaulter Yelena Isinbaeva, skier Lindsey Vonn, The first Winter Youth Olympic Games featured more than figure skater Yuna Kim, skier Benjamin Raich, ice hockey Combined Financial Statements 1,000 athletes from 70 NOCs. The Games brought more player Sidney Crosby, freestyle skier Kevin Rolland, sprinter than 110,000 spectators to Innsbruck—host of the 1964 Usain Bolt and swimmer Michael Phelps. The role of a YOG and 1976 Olympic Winter Games—after an 18-day Youth Ambassador is to inspire and mentor the athletes competing Olympic Torch Relay by 2,012 torchbearers. Forty-two per at the Games while encouraging young people from all over cent of participating NOCs won medals, and Sara Takanashi the world to become more active in sport. of Japan became the first female ski jumper to win gold at an Olympic event.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

One measure of the YOG’s success was its digital media Message from the IOC President 03 impact. At one point, the IOC’s Singapore 2010 YOG channel Celebrating the Games 05 on YouTube was the third most watched YouTube channel worldwide. The summer YOG generated a total of 10.7 million Inspiring and Educating Youth 12 views from the YOG website and YouTube channel, and one million impressions across Facebook and Twitter. Olympism in Action 18 The Youth Olympic Games Legacy Supporting the Olympic Movement 30 The legacy of the YOG is carried forward by past participants, who serve as ambassadors for sport and Olympic values in IOC Administration—Efficiency and Agility 40 their home communities. Some have offered their perspectives Major Decisions of the IOC Sessions 46 at IOC conferences. The YOG are also a proving ground for aspiring Olympians, and many have gone on to compete in IOC Membership 48 the Olympic Games. More than 190 athletes who competed in the inaugural YOG made the step up to the Olympic stage Report of the Auditors and 54 in London in 2012, winning 25 medals between them. Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT INSPIRING AND EDUCATING: IOC FINAL REPORT 2009–2012 SPORT AS A TOOL FOR EDUCATION

One of the unique aspects of the YOG that set it apart International organisations played a key role in implementing Message from the IOC President 03 from any other sporting event was the innovative Culture CEP activities by supporting a broad range of educational Celebrating the Games 05 and Education Programme (CEP). The CEP brought Olympic programmes. YOG partners included UN agencies; values to life by giving YOG participants a chance to learn the World Anti-Doping Agency; the International Red Cross Inspiring and Educating Youth 12 from each other and from adult mentors. The CEP featured and Red Crescent Societies; the International Fairplay interactive booths, exhibitions and activities on Olympism, Committee and other non-governmental organisations. Olympism in Action 18 social responsibility, fair play, skills development, healthy CEP materials, such as a YOG Education Pack, were widely Supporting the Olympic Movement 30 lifestyles, and expression and well-being. Programmes shared outside the events in Singapore and Innsbruck. ranged from panel discussions on how to create a balanced Additionally, the YOG featured Athlete Role Models (ARMs) diet to projects that allowed YOG participants to share IOC Administration—Efficiency and Agility 40 nominated by the International Federations and members experiences through dance, music and the arts. Major Decisions of the IOC Sessions 46 of the IOC Athletes’ Commission, who were present at the Through the CEP, YOG participants learned about global Games to mentor young athletes and help them understand IOC Membership 48 topics, the importance of contributing to the environment how to live by the Olympic values. The ARMs participated in and society, and celebrating the Olympic Movement. the CEP alongside YOG athletes and took part in “Meet the Report of the Auditors and 54 The interactive format gave young athletes the opportunity Role Models” forums to share personal accounts of their Combined Financial Statements to build friendships with fellow athletes from around the experiences and the challenges they overcame. world and develop a better understanding of their diverse cultures. YOG athletes also participated in community and sustainability projects that highlighted the importance of giving back to their home communities.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 The IOC is using sport as a tool for education in many other ways. The Olympic Values Education Programme Celebrating the Games 05 (OVEP) equips thousands of teachers around the globe to teach Olympic values to young people between the Inspiring and Educating Youth 12 ages of eight and 18. The OVEP teaching manual provides easy-to-implement lesson plans that can be adapted to Olympism in Action 18 different age groups. Today, more than 110 countries have Supporting the Olympic Movement 30 been involved in the programme, including Zambia, where OVEP has been implemented to educate over 10,000 boys IOC Administration—Efficiency and Agility 40 and girls since the 2010 opening of the Olympic Youth Development Centre, and has trained over 600 OVEP Major Decisions of the IOC Sessions 46 Young Leaders to date. IOC Membership 48 A partnership with UNESCO encourages more collaboration between sport organisations and educators throughout the Report of the Auditors and 54 world. The 7th IOC World Conference on Sport, Education Combined Financial Statements and Culture in Durban in 2010 and the 8th IOC World Conference in Amsterdam in 2012—both co-hosted by the IOC and UNESCO—brought together experts in both fields as well as youth representatives, including participants from the YOG, and stressed the need for values-based physical education in school curricula.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 OLYMPISM IN ACTION

The Olympic Charter defines Olympism as Message from the IOC President 03 a philosophy of life that blends sport with culture Celebrating the Games 05 and education, and calls on the IOC to cooperate with public and private organisations to “place sport Inspiring and Educating Youth 12 at the service of humanity.” Olympism in Action 18 The IOC puts Olympism into action in several ways: Supporting the Olympic Movement 30 • Sport for All • Development through sport IOC Administration—Efficiency and Agility 40 • Peace through sport 46 Major Decisions of the IOC Sessions • Women and Sport IOC Membership 48 • Education through sport Report of the Auditors and 54 • Sport and environment Combined Financial Statements • Culture and sport

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 OLYMPISM IS A Inspiring and Educating Youth 12 PHILOSOPHY OF LIFE Olympism in Action 18 Supporting the Olympic Movement 30 THAT BLENDS SPORT IOC Administration—Efficiency and Agility 40 WITH CULTURE Major Decisions of the IOC Sessions 46 AND EDUCATION. IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 SPORT FOR ALL

Message from the IOC President 03 The IOC is a leading advocate for using sport and physical The commission also provides fi nancial help and other activity to promote health, fi tness, and physical and mental assistance to support sporting events on all fi ve continents Celebrating the Games 05 well-being. Over the last four years, the IOC has joined forces every year. In 2011, the commission launched a new grants with international organisations to bring physical activity to programme at the 14th World Conference on Sport for All Inspiring and Educating Youth 12 schools and youth communities in developing countries and in Beijing. Grants were awarded to a project in Bosnia and to provide equal access to sport and the values it fosters. Herzegovina that uses scuba diving and other water activities Olympism in Action 18 It has also encouraged governments and educational to help rehabilitate mine victims and amputees; a project in Supporting the Olympic Movement 30 institutions to make sport more widely available. Ethiopia that uses sport to help street children reintegrate to school and society; and a project in China that targeted 100 In 2010, the IOC and the World Health Organisation agreed 40 cities and 1,000 villages with participatory demonstrations IOC Administration—Efficiency and Agility to work together globally to reduce the risk of cardiovascular of qigong, a traditional mind-and-body exercise. Major Decisions of the IOC Sessions 46 disease, diabetes and other non-communicable diseases that rank among the top risk factors for mortality. 48 IOC Membership The IOC also participated in a special UN General Assembly Report of the Auditors and 54 meeting on the Prevention and Control of Non-Communicable Combined Financial Statements Diseases in 2011. The IOC’s Sport for All Commission takes a leading role in encouraging people of all ages and abilities to participate in sports activities through Olympic Day celebrations and similar events. To share best practices and encourage more progress, the commission hosts the World Conference on Sport for All. In response to a recommendation from the 13th IOC World Conference on Sport for All in Jyväskylä, Finland in 2010, the commission developed “Get Moving”, a guide for managing Sport for All programmes that was set for release in 2013.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

The IOC has taken steps over the past four years to share the joy of sport and promote Olympic values with a wider audience at the grassroots level. One of the best examples is Olympic Day, the annual celebration that commemorates the birth of the modern Olympic Games on 23 June, 1894. In 2009, the IOC expanded the theme of Olympic Day to encompass educational and cultural elements as well as physical activity. Under the theme, “Move, Learn, Discover”, NOCs around the world helped spread Olympic Day activities to schools, community centres, and other governmental and non-governmental organisations. In 2012, the IOC reached out to its millions of fans on Facebook and followers on Twitter, asking them to participate in Olympic Day to win a chance to go to the London Games. The IOC also featured tweets about the celebration on a world map. Olympic Day activities vary widely and have included fun runs, community walks, balance beam contests, tricycle races, wheelchair basketball, relay races, swimming races, inspirational talks by Olympic athletes, exhibitions on health and fitness, and sports-related arts and crafts for young children.

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 DEVELOPMENT THROUGH SPORT

IOC initiatives are bringing sport to impoverished Message from the IOC President 03 communities, aiming to both increase access to Celebrating the Games 05 physical activity worldwide and improve social and human well-being at large.

Inspiring and Educating Youth 12 In 2010, the IOC inaugurated the first Olympic outhY Olympism in Action 18 Development Centre in Zambia, a flagship project of the IOC’s Sports for Hope programme. With support from Supporting the Olympic Movement 30 the Zambian government, the National Olympic Committee of Zambia and International Federations (IFs), the centre IOC Administration—Efficiency and Agility 40 offers facilities for all levels of athletes in more than a dozen Major Decisions of the IOC Sessions 46 sports, as well as education programmes, health services and activities for the entire community. Work on a second IOC Membership 48 Youth Development Centre in Haiti began in 2012. It is scheduled to open in 2014. Report of the Auditors and 54 In 2009, the IOC launched the Sports Kits Programme to Combined Financial Statements provide sports and recreational equipment to children and young adults who might otherwise have little access to sport. The kits are tailored to the sports that are most popular in the area and include different balls, sports clothing and chalk to mark out fields of play. The programme has been welcomed by more than 600,000 young people in 40 countries since its inception. A two-year project launched in 2012 with UNHCR and TOP Partner Samsung will provide sports kits to an estimated 150,000 displaced young people in Asia, Africa and the Americas. The “Giving is Winning” campaign, organised around the Olympic Games, provides sportswear and clothing to refugees who have fled war, famine and other natural and man-made catastrophes in Europe, Asia and Africa. Contributions from athletes, IOC, NOCs, IFs, TOP Partners and other Olympic Family members are distributed by UNHCR at refugee camps around the world. The campaign during the 2012 Games in London collected 70,000 items that were distributed in seven countries.

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 PEACE THROUGH SPORT

The IOC’s efforts in promoting peace draw on the traditions Message from the IOC President 03 of the ancient Olympic Games, when warring factions Celebrating the Games 05 declared a truce to let athletes and spectators travel safely to and from the Games. That tradition lives on in the modern Inspiring and Educating Youth 12 Olympic Truce, which also makes an enduring statement about the ability of sport to harmoniously bring together Olympism in Action 18 communities in conflict and create opportunities for dialogue, Supporting the Olympic Movement 30 and even reconciliation. At the request of the IOC, the UN General Assembly has approved the Olympic Truce for every IOC Administration—Efficiency and Agility 40 edition of the Games since 1993. UN member states are encouraged to observe peace during the Games by signing Major Decisions of the IOC Sessions 46 the Truce and are invited to continue to promote peace after the Olympic flame has been extinguished. In advance of IOC Membership 48 the London Games, the Olympic Truce received unanimous In 2009, the IOC launched a new initiative for peace by Report of the Auditors and 54 support from all 193 UN member states. hosting the first International Forum on Sport for Peace and Development. The biennial forum aims to assess In 2011, the IOC launched a Youth Sport Centre in Gatumba, Combined Financial Statements the successes and challenges of using sport as a tool for Burundi, jointly funded by the IOC, the United Nations human development and promotion of peace. The UN Development Programme (UNDP), the UN Office on Sport joined the IOC as a forum co-host in 2011. for Development and Peace, and the government of Burundi. The multi-sport complex is located in the border region In 2010, the IOC convened joint meetings between with the Democratic Republic of Congo, an area known for the Palestinian and Israeli NOCs to address the free tension and violence and lacking in recreational infrastructure. movement of Palestinian and Israeli athletes, coaches, The facility, managed by the Burundi NOC and the local officials and sports materials, as well as foreign visiting municipality, provides sporting and education activities for athletes and delegations. more than 10,000 young people.

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 WOMEN AND SPORT

Guided by the Olympic Charter’s declaration that Message from the IOC President 03 sport is a human right, the IOC is a strong advocate for Celebrating the Games 05 inclusion in sport. Olympic Day and projects supported by the Sport for All Commission are based on the belief Inspiring and Educating Youth 12 that sport should be available to people of all ages and abilities, without discrimination. Olympism in Action 18 The IOC’s dedication to promoting gender equality Supporting the Olympic Movement 30 extends beyond the field of play (see page 11). The IOC collaborated with Loughborough University in the UK on IOC Administration—Efficiency and Agility 40 a 2010 report on “Gender Equality and Leadership in Major Decisions of the IOC Sessions 46 Olympic Bodies”, which highlighted the need to improve the recruitment and development of women in leadership IOC Membership 48 positions. The IOC is working to ensure that women are prepared and considered for decision-making positions Report of the Auditors and 54 across member organisations of the Olympic Movement. Combined Financial Statements With the support of the Women and Sport Commission and Olympic Solidarity, NOCs are hosting seminars to teach leadership skills to women, and more NOCs are appointing women to top administrative positions. The 5th IOC World Conference on Women and Sport in 2012 focused on bringing more women into management and leadership roles, and increasing collaboration and partnerships, especially with UN organisations. More than 800 delegates from 135 countries unanimously approved “The Los Angeles Declaration”, a series of recommendations aimed at promoting gender equality in sport and using sport as a tool to improve the lives of women around the world.

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 EDUCATION THROUGH SPORT

Message from the IOC President 03 Celebrating the Games 05 Inspiring and Educating Youth 12 Olympism in Action 18 Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements Sport is a powerful tool for education. The IOC uses sport The IOC partners with the World Food Programme to support to encourage school attendance, and to deliver educational school feeding programmes and to use sport to help motivate messages that promote healthy lifestyles and Olympic values. children to attend school. In addition to direct financial In addition to the Culture and Education Programme at the support for food supplies, the IOC and its partners provide Youth Olympic Games and the Olympic Values Education sport and recreation equipment to encourage physical activity Programme, the IOC partners with other organisations to and the integration of sport into school activities. promote education through sport in impoverished areas The IOC also uses sport to educate young people about throughout the world. the risk of HIV/AIDS and how to prevent it. The IOC has In 2010, the IOC launched a three-year initiative with the joined the global fight against HIV/AIDS by hosting information UN High Commissioner for Refugees (UNHCR) to bring the workshops with NOCs; supporting national projects of NOCs promise of sport and the power of education to a refugee and partner organisations such as the Red Cross movement settlement in Namibia, where 40 per cent of the population and local NGOs; and developing with UNAIDS a toolkit in is between 10 and 30 years old. The IOC’s goal through this seven languages to foster HIV/AIDS awareness and prevention partnership with UNHCR is to reach youth through sport and among the sports community. The IOC also works with engage them in productive activities in order to lessen the rate partner organisations to raise HIV/AIDS awareness among of teenage pregnancy, HIV/AIDS, and drug abuse. Elements Olympic athletes by distributing brochures and other of the programme also focus on empowering young women informational material in the Olympic Village. through sport.

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 SPORT AND ENVIRONMENT

Since the Olympic Charter was amended in 1994 to include Message from the IOC President 03 concern for the environment as the third pillar of Olympism— Celebrating the Games 05 alongside sport and education and culture—the Movement has made significant progress in minimising the environmental Inspiring and Educating Youth 12 footprint of the Games and in using the Olympic platform to educate audiences about environmental responsibility. Olympism in Action 18 To promote environmental responsibility throughout the world Supporting the Olympic Movement 30 of sport, the IOC organises the biennial World Conference on Sport and the Environment in collaboration with the United IOC Administration—Efficiency and Agility 40 Nations Environmental Programme (UNEP) and local partners. Major Decisions of the IOC Sessions 46 The Vancouver Organising Committee of the Olympic Games assisted with the 2009 conference in Vancouver; the Qatar IOC Membership 48 Olympic Committee partnered for the 2011 conference in Doha. Both events offered a forum to raise awareness and Report of the Auditors and 54 share best practices. Combined Financial Statements In 2012, the IOC participated in the UN Conference on Sustainable Development, commonly known as Rio+20, and issued an updated version of Agenda 21, a blueprint for sustainability in sport that was developed in response to the landmark 1992 Earth Summit. The IOC also works with UNEP to ensure that environmental considerations are incorporated into pre-Games planning and post-Games impacts. Environmental sustainability is an important factor in the host city selection process and bid cities are asked to provide a detailed overview of the city’s environmental health and their plans to deliver sustainable Games.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 The Vancouver Games were a turning point for sport and sustainability that provided a blueprint for staging other Celebrating the Games 05 large sporting events in a socially responsible manner. The Vancouver Organising Committee created a sustainability Inspiring and Educating Youth 12 governance model and an integrated sustainability management and reporting system (SMRS) to foster Olympism in Action 18 organisation-wide, cross-functional responsibility and public Supporting the Olympic Movement 30 accountability for performance on sustainability commitments. The Vancouver Olympic Village was designed to serve as a IOC Administration—Efficiency and Agility 40 model for sustainable urban planning. Major Decisions of the IOC Sessions 46 The London Games built on the success of Vancouver by making environmental sustainability a core element of Games IOC Membership 48 planning. In addition to revitalising an industrial wasteland, the London Organising Committee is credited with contributing to Report of the Auditors and 54 the development of ISO 20121—the international standard Combined Financial Statements on sustainability in event management. Sustainability lessons from the Games are shared through the Olympic Games Knowledge Management Programme. The IOC encourages other sport organisations to focus on sustainability by holding regional seminars for NOCs and recognising best practices at the grassroots level with the Sport and Environment Awards.

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BUILDING A LEGACY THROUGH SPORT OLYMPISM IN ACTION: IOC FINAL REPORT 2009–2012 CULTURE AND SPORT

Promoting cultural exchange is integral to the IOC’s goal Message from the IOC President 03 of bridging cultures. The Olympic Games provide a global Celebrating the Games 05 showcase for the art, music and culture of the host nation, and organisers are required to develop a cultural programme Inspiring and Educating Youth 12 as part of the Games planning process. The Vancouver and London Games both featured Cultural Olympiads that offered Olympism in Action 18 a wide array of music, theatre, art and other cultural activities. Supporting the Olympic Movement 30 The Vancouver cultural programme featured nearly 200 events over 60 days. 2010 Legacies Now, an organisation IOC Administration—Efficiency and Agility 40 created for the Vancouver Games, sponsored more than Major Decisions of the IOC Sessions 46 400 arts and cultural projects throughout Canada and established a programme that allowed more than 16,000 IOC Membership 48 students to attend summer camps that focused on arts, sport and recreation. Report of the Auditors and 54 The cultural programme for the London Games featured Combined Financial Statements 500 events over four years, culminating in the London 2012 Festival during the Games. By the time it was over, more than 16 million people across the United Kingdom had attended or participated in performances of various types, including the world’s biggest Shakespeare festival. The IOC Commission on Sport, Education and Culture also sponsors cultural events. A commission-sponsored exhibit in London’s Guildhall Art Gallery featured works from more than 60 artists supported by NOCs from all five continents. The artists shared their vision of “Sport and the Olympic Values of Excellence, Friendship and Respect” through sculptures, carvings, paintings and mixed media. The works were later displayed at the House of International Sport in Lausanne, and the top three entries in sculpture and graphic arts were honoured at the 8th IOC World Conference on Sport, Education and Culture in Amsterdam in November 2012.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 OLYMPIC MUSEUM Inspiring and Educating Youth 12 RENOVATION 18 Olympism in Action Two decades after it opened, the Olympic Museum Supporting the Olympic Movement 30 is undergoing a metamorphosis that will bring it into the digital age, expand access to its treasures IOC Administration—Efficiency and Agility 40 and share them worldwide. The initiative closed the Olympic Museum in 2011 for major infrastructure, Major Decisions of the IOC Sessions 46 layout and design renovations. A temporary structure IOC Membership 48 was established nearby until the Olympic Museum’s scheduled reopening in 2013. Report of the Auditors and 54 The Olympic Museum in Lausanne is the centrepiece Combined Financial Statements in a collaborative network of more than 20 Olympic Museums worldwide—all sharing the rich history of the Games and the Olympic Movement with visitors of all ages. Concurrent with the Olympic Museum renovation, the IOC initiated an ambitious effort to collect and digitise Olympic archival materials to create a global resource for information on the Olympic Movement and Olympic values. The end result will be an Olympic Multimedia Library featuring 250,000 photos, 8,000 hours of audiovisual recordings, and 10,000 objects from the Olympic Museum’s collection, allowing visitors to relive previous Olympic Games.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 SUPPORTING THE OLYMPIC MOVEMENT

As the supreme authority of the Olympic Movement, Message from the IOC President 03 the IOC has an obligation to serve the athletes, to Celebrating the Games 05 protect the integrity of sport and to ensure that the Movement is looking to the future. The past four years Inspiring and Educating Youth 12 have seen significant new initiatives on all fronts. Olympism in Action 18 Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 THE IOC HAS AN Inspiring and Educating Youth 12 OBLIGATION TO SERVE Olympism in Action 18 Supporting the Olympic Movement 30 THE ATHLETES. IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT SUPPORTING THE OLYMPIC MOVEMENT: IOC FINAL REPORT 2009–2012 PROTECTING AND SUPPORTING ATHLETES

Athletes are at the core of the Olympic Movement. The IOC Entourage Commission Message from the IOC President 03 serves athletes by protecting their health and safety, helping Many top Olympic athletes rely on an extensive support Celebrating the Games 05 them with issues specific to elite sport and assisting their structure that includes coaches, trainers, agents, transition to life after they retire from competition. family, friends and others in similar roles. Following a recommendation by the Olympic Congress in Copenhagen Inspiring and Educating Youth 12 Athletes’ Health and Safety in 2009, the IOC established the Entourage Commission The IOC Medical Commission has helped raise standards Olympism in Action 18 in 2010. The commission works to improve the quality in sports medicine and related fields by hosting international and level of services provided by the athletes’ entourage, 30 medical conferences, supporting the work of NOCs and Supporting the Olympic Movement and to encourage high ethical standards by entourage editing a medical journal. The commission examines health members. The first Guidelines for the Conduct of the IOC Administration—Efficiency and Agility 40 issues critical to the Olympic Games, including concussions, Athletes’ Entourage were issued in 2011. The commission age determination and injury in young athletes, as well as Major Decisions of the IOC Sessions 46 also provides advice to athletes and their parents, with topics like biomechanics and nutrition. The commission specific suggestions for parents of beginner, intermediate updated the Olympic Movement Medical Code, which IOC Membership 48 and advanced athletes. provided guidelines for medical care and medical ethics, Report of the Auditors and 54 in advance of the 2010 Vancouver Games. Helping Athletes Transition Out of Sport Creating a lifestyle balance and transitioning to a career Combined Financial Statements The IOC is increasingly placing emphasis on the prevention after sport can be difficult for some Olympic athletes. The of injuries and illnesses, often working closely with IFs and IOC’s Athlete Career Programme (ACP) provides guidance NOCs. A first IOC World Conference on the Prevention of and tools to help athletes manage training and competition Injury and Illness in Sport was held in 2011 with a second and focuses on education, life skills and employment. Since edition scheduled for 2014. The IOC also requires NOC launching, the ACP has helped more than 10,000 athletes physicians to report all athlete injuries and illnesses that in over 100 countries. occur in competition and training at the Olympic Games so that they may be analysed to gain further knowledge about the effectiveness and weaknesses of existing prevention programmes. Each IF also shares data on their athletes’ risk exposure, equipment evolution, venue safety and rule changes to help prevent injuries.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 Inspiring and Educating Youth 12 Olympism in Action 18 Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 OLYMPIC SOLIDARITY IN NUMBERS Major Decisions of the IOC Sessions 46 IOC Membership 48 The Olympic Games provide a global stage for the best VANCOUVER 2010 athletes from every region on earth, but some aspiring Report of the Auditors and 54 Olympians have insufficient resources to develop their full NOCs that benefited: 60 Combined Financial Statements potential. The IOC’s Olympic Solidarity bridges the gap by working with NOCs, especially those with the greatest Scholarships allocated: 325 need, to help athletes get access to proper training Solidarity Scholarship holders at the Games: 227 facilities, coaching and other support. In addition to assisting athletes through Olympic Scholarships, Olympic Sports covered: 5 Solidarity provides team grants and finances technical Medals won: 13 training for coaches. Olympic Solidarity also promotes the development of sport at the global and continental level and offers subsidies to NOCs to help with Olympic LONDON 2012 Games expenses. Funding for Olympic Solidarity, which also extends to the Youth Olympic Games, comes from NOCs that benefited: 177 the NOCs’ share of the Olympic broadcast rights for the Games and was budgeted at USD 311 million for 2009 Scholarships allocated: 1,264 to 2012, an increase of over 27 per cent compared to Solidarity Scholarship holders at the Games: 657 that of the previous four-year period. Sports covered: 20 The 2010 Vancouver Games featured the first full Olympic Winter Games Scholarship programme. Scholarships Medals won: 76 were awarded 16 months before the Games to give athletes adequate time for training. Twelve NOCs were composed entirely of Solidarity scholarship holders.

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BUILDING A LEGACY THROUGH SPORT SUPPORTING THE OLYMPIC MOMOvEMENT:VEMENT: IOC FINAL REPORT 2009–2012 PROTECTING THE INTEGRITY OF SPORSPORTT

Message from the IOC President 03 Over the past quadrennium, the IOC launched important Preventing Irregular and Illegal Betting new initiatives to expand the fi ght against doping and In 2011, the IOC opened a new era of collaboration Celebrating the Games 05 confront the threat of corruption. against match-fi xing in sport by convening a high- level Working Group on Irregular and Illegal Betting in The Fight Against Doping Inspiring and Educating Youth 12 Sports comprised of representatives from sport, law Preventing and detecting doping in sport remained enforcement, government, the UN, the European Union a top priority. The London Games featured the most Olympism in Action 18 and betting operators. The panel has focused on three comprehensive testing programme of any Olympic Games main areas—education, monitoring, and legislation— Supporting the Olympic Movement 30 in history, with more than 5,000 tests—both urine and and has developed specifi c recommendations for action. blood—during the Games. Tests were conducted on the top 40 The IOC also stepped up its own efforts at the Olympic IOC Administration—Efficiency and Agility fi ve fi nishers in every event, plus two competitors selected Games in Beijing, Vancouver and London to prevent at random. The IOC worked closely with the World Anti- Major Decisions of the IOC Sessions 46 match-fi xing. Doping Agency (WADA) to test athletes and provide clear IOC Membership 48 testing guidelines. The WADA-accredited laboratory used state-of-the-art technologies and operated 24 hours a day, Report of the Auditors and 54 seven days a week with a team of more than 150 anti- Combined Financial Statements doping scientists from several countries. The IOC keeps all samples for eight years to enable further testing should new technologies become available—an approach that proved its value when retesting from the 2004 Athens Games, the 2006 Turin Games and the 2008 Beijing Games revealed 10 new doping cases. The IOC also became more effective in targeting testing to athletes who have been linked to suspicious activity. As a further deterrent, NOCs and IFs conducted extensive pre-Games testing.

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BUILDING A LEGACY THROUGH SPORT PROTECTING IOC FINAL REPORT 2009–2012 THE AUTONOMY OF SPORT

The IOC works with governmental organisations on many Message from the IOC President 03 levels to put sport to work for society and to protect the Celebrating the Games 05 integrity of sport. Government authorities can help make sport more accessible in schools and communities, and have Inspiring and Educating Youth 12 the power to prohibit discrimination in sport. They also have a vital role to play in the fight against doping, illegal betting Olympism in Action 18 and other corrupting influences. Supporting the Olympic Movement 30 But sport should never be used as a political tool. As the leading body of the Olympic Movement, the IOC is the IOC Administration—Efficiency and Agility 40 chief defender of the autonomy of sport. It is at the forefront Major Decisions of the IOC Sessions 46 of efforts to educate governmental bodies on the unique nature of sport, while acknowledging the need for sport IOC Membership 48 organisations to adhere to principles of good governance. Those efforts include an ongoing dialogue with the European Report of the Auditors and 54 Commission on issues related to autonomy and cooperation. Combined Financial Statements In a major step forward, the European Union’s Lisbon Treaty, which took effect in December 2009, formally recognised the specific nature and the importance of sport. The treaty also provides a legal foundation to support and promote actions by EU member states in the field of sport—achieving a long-sought goal of the Olympic Movement.

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BUILDING A LEGACY THROUGH SPORT SUPPORTING THE OLYMPIC MOVEMENT: IOC FINAL REPORT 2009–2012 LOOKING TO THE FUTURE

The Olympic Movement has thrived for more than a century A Solid Financial Foundation Message from the IOC President 03 by holding fast to enduring values while adapting to change. A solid financial foundation is paramount to the long-term Celebrating the Games 05 The IOC has to constantly look to the future to ensure that the success of the Olympic Movement. Despite the worst Olympic Games and the Olympic Movement remain relevant global recession in more than 60 years in the middle of Inspiring and Educating Youth 12 and financially secure. the quadrennium, the IOC raised more revenue than ever; it also shared more than ever with NOCs, IFs and Organising The Olympic Congress Olympism in Action 18 Committees; and continued to build its reserve fund, which An Olympic Congress has been held just 13 times since ensures the financial longevity of the Olympic Games and 30 the first Congress met in Paris in 1894 to create the modern Supporting the Olympic Movement protects against catastrophic events. Long-term agreements Olympic Games. In 2009, the XIII Olympic Congress in with Olympic Broadcast Partners and Worldwide Olympic IOC Administration—Efficiency and Agility 40 Copenhagen brought this special gathering into the digital Partners provide financial stability and help share Olympic age as delegates focused on the Movement’s future. Major Decisions of the IOC Sessions 46 values with a wider audience. The Congress theme, “The Olympic Movement in society”, The IOC’s revenues during the 2009 to 2012 quadrennium IOC Membership 48 captured the scope of the discussions, which explored issues increased by more than 30 per cent, to USD 5.22 billion. related to athletes; the Olympic Games; the structure of the Report of the Auditors and 54 The IOC distributes more than 90 per cent of its revenue to Movement; Olympism and youth; and the digital revolution. member organisations of the Olympic Movement. The main Combined Financial Statements The Congress set new standards for inclusiveness by inviting recipients include: online suggestions from the public and Olympic Family members in advance of the three-day gathering. In addition, • The Organising Committees for the Olympic all of the Congress sessions were broadcast live via Games and the Youth Olympic Games (OCOGs and the internet. YOGOCs)—The IOC contribution supports the staging of the Summer and Winter editions of the Games. Organising The Congress produced 66 specific recommendations that committees raise additional revenue through domestic provided a framework for action by the IOC, IFs and NOCs. marketing activities. The results can be seen in initiatives to engage young people, embrace digital communication and build on the Youth • National Olympic Committees (NOCs)—The IOC Olympic Games as a model for combining sport, education distributes TOP Programme revenue to more than 200 and culture. NOCs to train and develop their Olympic hopefuls, athletes and teams. The IOC also supports NOCs through Olympic The most significant legacy of the Congress may result from Solidarity, an autonomous commission that distributes recommendations that led to the development of a new IOC revenue to NOCs. Youth Strategy. Although work on the strategy was underway at the end of 2012, it aims to offer young people who do not have access to sport, for whatever reason, the possibility of discovering the benefits of physical activity and sport.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

IOC Membership 48 • International Federations (IFs)—The IOC provides Olympic Revenue Sources: Report of the Auditors and 54 revenue to the International Sports Federations. These funds, which are used to support the development of Broadcasting (47%) Combined Financial Statements sport worldwide, are distributed after the completion TOP Programme (16%) of the Games in which the federation is active. OCOG Domestic • Recognised organisations and Federations—The IOC Sponsorship (29%) contributes Olympic revenue to recognised organisations, Ticketing (5%) including the World Anti-Doping Agency, the Court Licensing (3%) of Arbitration for Sport, Fairplay International, and the International Olympic Academy. Olympic Revenue Distribution: In addition to supporting organisations within the Olympic Movement, the IOC added USD 400 million to the reserve fund over the last four years. At the end of 2012 it stood NOCs/IFs/OCOGs (>90%) at USD 901 million. IOC (<10%)

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BUILDING A LEGACY THROUGH SPORT SUPPORTING THE OLYMPIC MOVEMENT: IOC FINAL REPORT 2009–2012 LOOKING TO THE FUTURE

Olympic Broadcast Partners Message from the IOC President 03 The Olympic Movement could not achieve its goals without delivered more and better coverage, with a significant Celebrating the Games 05 strong financial support. Olympic Broadcast Partners remain increase in accompanying digital and mobile offerings. the largest source of revenue for the Olympic Movement and Interest in future Games is strong. The IOC has completed Inspiring and Educating Youth 12 also play an essential role in sharing the Games experience. agreements extending as far as the 2024 Games, including The London Games reached the largest audience in Olympic a USD 4.3 billion agreement with longstanding Olympic Olympism in Action 18 history—3.7 billion people globally. Broadcast rights holders Broadcast Partner in the US, NBC, until 2020. Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

The Olympic Partner Programme Message from the IOC President 03 The Worldwide Partners in The Olympic Partner (TOP) Celebrating the Games 05 Programme play an essential role in staging the Olympic Games, promoting Olympic values and sustaining IOC Inspiring and Educating Youth 12 development efforts around the world. The seventh edition of the TOP Programme (TOP VII), covering the 2009-2012 Olympism in Action 18 quadrennium, was the most successful ever, generating 30 nearly USD 958 million for the Olympic Movement, including Supporting the Olympic Movement all 204 NOCs, the OCOGs and the IOC. In addition to IOC Administration—Efficiency and Agility 40 financial support, the 11 Worldwide Partners provided products, technology and expertise to ensure the success Major Decisions of the IOC Sessions 46 of the Vancouver and London Games. Creative advertising and other promotional efforts helped share the excitement of IOC Membership 48 the Games and promoted and communicated the Olympic Report of the Auditors and 54 values to a broad international audience. In a reflection of the Olympic brand’s continuing appeal, agreements for TOP VIII Combined Financial Statements have already surpassed the support of the previous four years and agreements have already been completed with seven partners for TOP IX (until 2020).

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 IOC ADMINISTRATION— EFFICIENCY AND AGILITY

The IOC Administration implements the policies of the Message from the IOC President 03 IOC Session, Executive Board and the President, and Celebrating the Games 05 supports the work of IOC Commissions. Over the past four years, the administration has sought to maximise Inspiring and Educating Youth 12 the performance of the organisation with improvement in three key areas: Olympism in Action 18 • Efficiency and accountability 30 Supporting the Olympic Movement • Collaboration and agility IOC Administration—Efficiency and Agility 40 • Protecting Olympic heritage Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Message from the IOC President 03 Celebrating the Games 05 Inspiring and Educating Youth 12 Olympism in Action 18 THE IOC ADMINISTRATION Supporting the Olympic Movement 30 HAS SOUGHT TO MAXIMISE IOC Administration—Efficiency and Agility 40 THE PERFORMANCE Major Decisions of the IOC Sessions 46 IOC Membership 48 OF THE ORGANISATION. Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT EFFICIENCY AND ACCOUNTABILITY IOC FINAL REPORT 2009–2012

The launch of the Youth Olympic Games, new and expanded the IOC administration launched the “Shape” initiative to Message from the IOC President 03 partnerships with UN agencies, and the increasing complexity review its scope of services and to ensure that the staff is Celebrating the Games 05 of the Olympic Games have significantly increased demands prepared to adapt to evolving demands, while ensuring on the IOC, yet there has been no significant increase in staff. efficiency and effectiveness. The IOC had 355 full-time employees at the end of 2012, Inspiring and Educating Youth 12 The administration’s accountability to the IOC leadership just 12 more than four years earlier. The staff reflects the and the Olympic Movement is buttressed by an internal Olympism in Action 18 diversity within the Olympic Movement, with more than 45 auditor who reports directly to an Audit Committee comprised nationalities represented. Supporting the Olympic Movement 30 of three IOC members. The auditor is empowered to A shared-services approach that centralised support investigate any suspected deviation from IOC financial or IOC Administration—Efficiency and Agility 40 processes across a number of areas increased efficiency operational policies. The auditor also ensures that department Major Decisions of the IOC Sessions 46 and encouraged collaboration among departments. heads conduct an annual risk assessment to identify potential All departments continued to focus on improving project problems before they occur. The IOC administration is also IOC Membership 48 management skills, with training to help employees deliver subject to the IOC ethical rules and the supervision of the complex inter-departmental projects. Building on the work IOC Ethics Commission. Report of the Auditors and 54 of the 2009 Olympic Congress and a 2010 staff survey, Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT COLLABORATION AND AGILITY IOC FINAL REPORT 2009–2012

The administration has embraced new technology and Message from the IOC President 03 launched a host of new initiatives to enhance collaboration Celebrating the Games 05 within the IOC, and between the IOC and constituents within the Olympic Movement. The past four years brought dramatic Inspiring and Educating Youth 12 changes in the way the IOC communicates with internal and external audiences. Olympism in Action 18 The successful integration all of the IOC’s internet assets Supporting the Olympic Movement 30 —the public website, the extranet for IOC constituents and stakeholders, and the intranet for IOC employees—as part IOC Administration—Efficiency and Agility 40 of the 3Net project significantly improved communication Major Decisions of the IOC Sessions 46 and collaboration. Internal stakeholders benefitted from new extranets for Rule 51 compliance, knowledge management IOC Membership 48 and Olympic Results and Information Services (ORIS). Report of the Auditors and 54 An updated and enhanced external website (www.olympic.org) debuted in 2009. And the IOC also now engages with over Combined Financial Statements 22 million people around the world with its integrated multi- platform approach to social media. In 2012, the administration began work on a planned extension of IOC headquarters that will centralise operations on two sites—Vidy and the Olympic Museum—as well as maximise technology and encourage further collaboration with design features that anticipate workplace advances over the next 20 years.

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BUILDING A LEGACY THROUGH SPORT PROTECTING OLYMPIC HERITAGE IOC FINAL REPORT 2009–2012

The Olympic Rings are the most widely recognised This Olympic treasure trove went online in 2012 with Message from the IOC President 03 symbol in the world—correctly identified by 95 per cent of the launch of the Olympic Multimedia Library on the IOC Celebrating the Games 05 the respondents in a recent global survey and closely linked Extranet. The digital archive includes more than 250,000 to the values they represent. The IOC’s challenge is to protect photographs, 8,000 hours of audiovisual recordings, 1,000 Inspiring and Educating Youth 12 the integrity and special status of the Olympic symbol while historical documents and more than 10,000 objects from the allowing engagement and inclusion. To meet this challenge, Olympic Museum’s collection. By the end of 2012, the IOC Olympism in Action 18 the administration issued clear guidelines for consistent was on the verge of finalising the acquisition of film footage Supporting the Olympic Movement 30 use of the Olympic symbol and worked with stakeholders from every Olympic Games. Through the Olympic Multimedia to ensure compliance. Library, Olympic Movement stakeholders can relive moments from the first Olympic Games in 1896 to the most recent IOC Administration—Efficiency and Agility 40 More direct engagement with TOP Partners and NOCs editions and explore events behind the scenes. Major Decisions of the IOC Sessions 46 in support of their Olympic-themed marketing activations reduced the risk of inappropriate use of Olympic symbols. The administration is also looking to the future to ensure IOC Membership 48 In 2010, the first of an ongoing series of workshops was held the long-term relevance of the Olympic Games in an ever- to help NOCs make sure their sponsors’ brand activation changing world. A new 360° Games Management strategy Report of the Auditors and 54 supports the goals of the Olympic Movement as well as the is expanding the Games experience beyond the competition. Combined Financial Statements sponsors’ commercial interests. For instance, questionnaires for candidate cities now put more focus on cultural elements and other activities that can Protecting the integrity of the Olympic symbol is closely tied help provide a lasting Games legacy. A cross-departmental to the IOC’s efforts to safeguard the Olympic Movement’s working group was established to examine all aspects of the heritage. The Patrimonial Asset Management (PAM) Games experience, with the goal of extending the power of Programme, begun in 2007, achieved significant progress the Olympic symbol to periods between Games. over the past four years in an unprecedented effort to acquire, restore, digitise, classify and catalogue thousands of films, photos and documents from the founding of the Olympic Movement in 1894 to the present day.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 MAJOR DECISIONS OF THE IOC SESSIONS

2009—121st IOC Session, Copenhagen 2010—122nd IOC Session, Vancouver Message from the IOC President 03 Major Decisions: Major Decisions: Celebrating the Games 05 • Jacques Rogge was re-elected as IOC President • Nanjing, People’s Republic of China, was elected to host Inspiring and Educating Youth 12 for a term of four years the 2nd Youth Olympic Games in 2014 • Rio de Janeiro, Brazil, was elected as host city • Thomas Bach was re-elected as a Vice-President of the Olympism in Action 18 for the Games of the XXXI Olympiad in 2016 IOC Executive Board and Sam Ramsamy was re-elected as an Executive Board member Supporting the Olympic Movement 30 • The sports of golf and rugby sevens were voted for inclusion in the Olympic Programme for 2016 • HRH Prince Feisal Al Hussein, Barry Maister, Pat McQuaid, IOC Administration—Efficiency and Agility 40 Marisol Casado, Dagmawit Girmay Berhane and Yang Yang • Mario Pescante and Ser Miang Ng were elected as were elected as IOC members Major Decisions of the IOC Sessions 46 Vice-Presidents of the IOC Executive Board • Angela Ruggiero and Adam Pengilly, elected by their peers • Craig Reedie and John D. Coates were elected IOC Membership 48 to the IOC Athletes’ Commission during the Games in as members of the IOC Executive Board Report of the Auditors and 54 Vancouver, were voted as IOC members • Richard Peterkin, HRH Crown Prince Frederik of Combined Financial Statements Denmark, Habu Gumel, Habib Macki, Lydia Nsekera and Göran Petersson were elected as IOC members

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

2011—123rd IOC Session, Durban 2012—124th IOC Session, London Message from the IOC President 03 Major Decisions: Major Decisions: Celebrating the Games 05 • PyeongChang, Republic of Korea, was elected to host • Nawal El Moutawakel and Craig Reedie were elected Inspiring and Educating Youth 12 the Olympic Winter Games in 2018 as Vice-Presidents of the IOC Executive Board • Gunilla Lindberg was elected to the IOC Executive Board • Ching-Kuo Wu, René Fasel, Patrick Joseph Hickey, Olympism in Action 18 Claudia Bokel, Juan Antonio Samaranch Jr, Sergey Bubka • Sir Phillip Craven was re-elected as IOC member 30 and Willi Kaltschmitt Luján were elected as IOC Executive Supporting the Olympic Movement • José Perurena, Gerardo Werthein and Barbara Kendall Board members were elected as IOC members IOC Administration—Efficiency and Agility 40 • Aisha Garad Ali, Pierre-Olivier Beckers, Tsunekazu Major Decisions of the IOC Sessions 46 • Lillehammer, Norway, was elected to host the 2nd Takeda, Frank Fredericks and Lingwei Li were elected Winter Youth Olympic Games in 2016 (postal vote as IOC members IOC Membership 48 in December 2011) Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC MEMBERS IOC FINAL REPORT 2009–2012 List of IOC members by protocol order At 31 December 2012

Country Year of election Games participation 1. Mr Vitaly SMIRNOV RUS 1971 2. Mr Peter TALLBERG FIN 1976 1960/64/68/72/80 3. Mr Richard Kevan GOSPER, AO AUS 1977 1956/60** 4. Mr Richard W. POUND, Q.C. CAN 1978 1960 5. Mr Franco CARRARO ITA 1982 6. Mr Iván DIBÓS PER 1982 7. HE Pál SCHMITT HUN 1983 1968/72/76** 8. HSH the Princess Nora of LIECHTENSTEIN LIE 1984 9. Mr Francisco J. ELIZALDE PHI 1985 Message from the IOC President 03 10. HSH the Sovereign Prince ALBERT II MON 1985 1988/92/94/98/2002 11. Mr Lambis V. NIKOLAOU GRE 1986 Celebrating the Games 05 12. Ms Anita L. DEFRANTZ USA 1986 1976** 13. HRH the Princess ROYAL GBR 1988 1976 Inspiring and Educating Youth 12 14. Mr Ching-Kuo WU* TPE 1988 Olympism in Action 18 15. Mr Willi KALTSCHMITT LUJÁN* GUA 1988 16. Mr Richard L. CARRIÓN PUR 1990 Supporting the Olympic Movement 30 17. Mr Nat INDRAPANA THA 1990 40 18. Mr Denis OSWALD SUI 1991 1968/72/76** IOC Administration—Efficiency and Agility 19. Count Jacques ROGGE* BEL 1991 1968/72/76 Major Decisions of the IOC Sessions 46 20. Mr Thomas BACH* GER 1991 1976** 21. Sheikh Ahmad Al-Fahad AL-SABAH KUW 1992 IOC Membership 48 22. Mr James L. EASTON USA 1994 54 23. Sir Craig REEDIE, CBE* GBR 1994 Report of the Auditors and 24. Mr Mario PESCANTE ITA 1994 Combined Financial Statements 25. Mr Gerhard HEIBERG NOR 1994 26. Mr Austin L. SEALY BAR 1994 27. Dr Robin E. MITCHELL FIJ 1994 28. Mr Alpha Ibrahim DIALLO GUI 1994 29. Mr Alex GILADY ISR 1994 30. Mr Shamil TARPISCHEV RUS 1994 31. Mr Valeriy BORZOV UKR 1994 1972/76** 32. Mr René FASEL* SUI 1995 33. Mr Jean-Claude KILLY FRA 1995 1964/68** 34. Mr Sam RAMSAMY* RSA 1995 35. Mr Reynaldo GONZÁLEZ LÓPEZ CUB 1995 36. Mr Olegario VÁZQUEZ RAÑA MEX 1995 1964/68/72/76 37. Mr Patrick Joseph HICKEY* IRL 1995 38. Mr Toni KHOURY LIB 1995 39. Syed Shahid ALI PAK 1996 40. Mr Ung CHANG PRK 1996 41. Ms Gunilla LINDBERG* SWE 1996 42. Mr Julio César MAGLIONE URU 1996 43. Mr Kun Hee LEE KOR 1996

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BUILDING A LEGACY THROUGH SPORT IOC MEMBERS IOC FINAL REPORT 2009–2012 List of IOC members by protocol order At 31 December 2012

Country Year of election Games participation 44. Mr Ottavio CINQUANTA ITA 1996 45. Mr Guy DRUT FRA 1996 1972/76** 46. Ms Irena SZEWINSKA POL 1998 1964/68/72/76/80** 47. HRH the Grand Duke of LUXEMBOURG LUX 1998 48. General Mounir SABET EGY 1998 49. Mrs Nawal El MOUTAWAKEL* MAR 1998 1984** 50. Mr Melitón SÁNCHEZ RIVAS PAN 1998 51. Mr Leo WALLNER AUT 1998 52. HRH the Prince of ORANGE NED 1998 Message from the IOC President 03 53. Mr Ser Miang NG* SIN 1998 54. Mr Samih MOUDALLAL SYR 1998 Celebrating the Games 05 55. Mr Joseph S. BLATTER SUI 1999 56. Mr Lamine DIACK SEN 1999 Inspiring and Educating Youth 12 57. Mr Gian-Franco KASPER SUI 2000 Olympism in Action 18 58. Mr Carlos Arthur NUZMAN BRA 2000 1964 59. Mr Zaiqing YU CHN 2000 Supporting the Olympic Movement 30 60. Mr Timothy Tsun-Ting FOK HKG 2001 40 61. Raja Randhir SINGH IND 2001 1964/68/72/76/80/84 IOC Administration—Efficiency and Agility 62. Mr John Dowling COATES, AC* AUS 2001 Major Decisions of the IOC Sessions 46 63. Mr Issa HAYATOU CMR 2001 64. Mr Juan Antonio SAMARANCH Jr* ESP 2001 IOC Membership 48 65. HRH Prince Nawaf Faisal Fahd ABDULAZIZ KSA 2002 54 66. Mr Patrick S. CHAMUNDA ZAM 2002 Report of the Auditors and 67. HRH Prince Tamim Bin Hamad AL-THANI QAT 2002 Combined Financial Statements 68. Sir Philip CRAVEN, MBE GBR 2003 69. Mr Francesco RICCI BITTI ITA 2006 70. HRH Prince Tunku IMRAN MAS 2006 71. Ms Nicole HOEVERTSZ ARU 2006 1984 72. Ms Beatrice ALLEN GAM 2006 73. Ms Rebecca SCOTT CAN 2006 1998/2002/06** 74. Mr Saku KOIVU FIN 2006 1994/98/2006** 75. Mr Andrés BOTERO PHILLIPSBOURNE COL 2007 76. Mr Patrick BAUMANN SUI 2007 77. HRH Princess Haya AL HUSSEIN UAE 2007 78. Mrs Rita SUBOWO INA 2007 79. Mr Sergey BUBKA* UKR 2008 1988/92/96/2000** 80. Dr Ugur ERDENER TUR 2008 81. Mr Dae Sung MOON KOR 2008 2004** 82. Mr Alexander POPOV RUS 2008 1992/96/2000/04** 83. Ms Claudia BOKEL* GER 2008 1996/2000/04** 84. Ms Yumilka RUIZ LUACES CUB 2008 1996/2000/04** 85. Mr Richard PETERKIN LCA 2009 86. HRH Crown Prince Frederik of DENMARK DEN 2009

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BUILDING A LEGACY THROUGH SPORT IOC MEMBERS IOC FINAL REPORT 2009–2012 List of IOC members by protocol order At 31 December 2012

Country Year of election Games participation 87. Mr Habu GUMEL NGR 2009 88. Mr Habib MACKI OMA 2009 89. Ms Lydia NSEKERA BDI 2009 90. HRH Prince Feisal AL HUSSEIN JOR 2010 91. Mr Barry MAISTER NZL 2010 1968/72/76** 92. Mr Pat MCQUAID IRL 2010 93. Ms Marisol CASADO ESP 2010 94. Ms Dagmawit Girmay BERHANE ETH 2010 95. Ms Yang YANG CHN 2010 1998/2002/06** Message from the IOC President 03 96. Ms Angela RUGGIERO USA 2010 1998/2002/06/10** 97. Mr Adam PENGILLY GBR 2010 2006/10 Celebrating the Games 05 98. Mr José PERURENA ESP 2011 1968 99. Dr Gerardo WERTHEIN ARG 2011 Inspiring and Educating Youth 12 100. Ms Barbara KENDALL, MBE NZL 2011 1992/96/2000/04/08** Olympism in Action 18 101. Ms Aïsha GARAD ALI DJI 2012 102. Mr Pierre-Olivier BECKERS BEL 2012 Supporting the Olympic Movement 30 103. Mr Tsunekazu TAKEDA JPN 2012 1972/76 40 104. Mr Frank FREDERICKS NAM 2012 1992/96/2004** IOC Administration—Efficiency and Agility 105. Ms Lingwei LI CHN 2012 Major Decisions of the IOC Sessions 46

IOC Membership 48 * Executive Board member ** Olympic medallist Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT IOC HONORARY MEMBERS IOC FINAL REPORT 2009–2012 At 31 December 2012

Country Year of election Games participation HRH the Grand Duke Jean of LUXEMBOURG LUX 1946 HM King CONSTANTINE GRE 1963 1960** Mr Gunnar ERICSSON SWE 1965 Mr Berthold BEITZ GER 1972 Mr Pedro RAMÍREZ VÁZQUEZ MEX 1972 Mr Ashwini KUMAR IND 1973 Mr Niels HOLST-SØRENSEN DEN 1977 1948 Mr Shagdarjav MAGVAN MGL 1977 Mr Günther HEINZE GER 1981 Message from the IOC President 03 Mr Vladimir CERNUSAK SVK 1981 Ms Flor ISAVA-FONSECA VEN 1981 Celebrating the Games 05 Mr Zhenliang HE CHN 1981 Dame Mary Alison GLEN-HAIG, DBE GBR 1982 1948/52/56/60 Inspiring and Educating Youth 12 Mr Phillip Walter COLES, AM AUS 1982 1960/64/68 Olympism in Action 18 Mr Chiharu IGAYA JPN 1982 1952/56/60** Mr Fidel MENDOZA CARRASQUILLA COL 1988 Supporting the Olympic Movement 30 Sir Tennant Edward (Tay) WILSON, KNZM, OBE NZL 1988 40 Mr Borislav STANKOVIC SRB 1988 IOC Administration—Efficiency and Agility Mr Fernando F. Lima BELLO POR 1989 Major Decisions of the IOC Sessions 46 Mr Walther TRÖGER GER 1989 Mr Shun-ichiro OKANO JPN 1990 1968** IOC Membership 48 Mr Arne LJUNGQVIST SWE 1994 1952 54 Mr Mustapha LARFAOUI ALG 1995 Report of the Auditors and Mr Antun VRDOLJAK CRO 1995 Combined Financial Statements HRH the Infanta Doña Pilar de BORBÓN ESP 1996 Mr Hein VERBRUGGEN NED 1996 Ms Manuela DI CENTA ITA 1999 1984/88/92/94/98** Mr Tamas AJAN HUN 2000 Mr Kipchoge KEINO KEN 2000 1964/68/72** Mr Lassana PALENFO CIV 2000

** Olympic medallist

IOC HONOUR MEMBER At 31 December 2012

Country Year of election Games participation Mr Henry KISSINGER USA 2000

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BUILDING A LEGACY THROUGH SPORT IOC EXECUTIVE BOARD IOC FINAL REPORT 2009–2012 At 31 December 2012

Year of election to Message from the IOC President 03 President the Executive Board Celebrating the Games 05 Count Jacques ROGGE (BEL) 2001 Inspiring and Educating Youth 12 Vice-Presidents Mr Ser Miang NG (SIN) 2009 Olympism in Action 18 Mr Thomas BACH (GER) 2010 Supporting the Olympic Movement 30 Mrs Nawal El MOUTAWAKEL (MAR) 2012 Sir Craig REEDIE (GBR) 2012 IOC Administration—Efficiency and Agility 40

Major Decisions of the IOC Sessions 46 Members IOC Membership 48 Mr John D. COATES, AC (AUS) 2009 Mr Sam RAMSAMY (RSA) 2010 Report of the Auditors and 54 Ms Gunilla LINDBERG (SWE) 2011 Combined Financial Statements Mr Ching-Kuo WU (TPE) 2012 Mr René FASEL (SUI) 2012 Mr Patrick Joseph HICKEY (IRL) 2012 Ms Claudia BOKEL (GER) 2012 Mr Juan Antonio SAMARANCH Jr (ESP) 2012 Mr Sergey BUBKA (UKR) 2012 Mr Willi KALTSCHMITT LUJÁN (GUA) 2012

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012 R ePORT of the Auditors andmbined Co Financial S tATEMENTS 2012

Message from the IOC President 03 Report of the auditors 55 Combined statement of financial position at Celebrating the Games 05 31 December 2012 and 2011 56 Inspiring and Educating Youth 12 Combined statement of activities Olympism in Action 18 for the years ended 31 December 2012 and 2011 57 Combined statement of comprehensive income Supporting the Olympic Movement 30 for the years ended 31 December 2012 and 2011 58 IOC Administration—Efficiency and Agility 40 Combined statement of cash flows Major Decisions of the IOC Sessions 46 for the years ended 31 December 2012 and 2011 59 48 Combined statement of changes in fund balances IOC Membership for the years ended 31 December 2012 and 2011 60 Report of the Auditors and 54 Notes to the combined financial statements at and Combined Financial Statements for the years ended 31 December 2012 and 2011 61

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BUILDING A LEGACY THROUGH SPORT Report of the auditors IOC FINAL REPORT 2009–2012

Report of the statutory auditor on the combined An audit also includes evaluating the appropriateness financial statements of the accounting policies used and the reasonableness of As statutory auditor, we have audited the accompanying accounting estimates made, as well as evaluating the overall combined financial statements of the International Olympic presentation of the combined financial statements. We Committee, which comprise the statement of financial believe that the audit evidence we have obtained is sufficient position, statement of activities, statement of comprehensive and appropriate to provide a basis for our audit opinion. income, statement of cash flows, statement of changes in Opinion fund balances and notes (pages 56 to 94), for the year In our opinion, the combined financial statements for the ended 31 December 2012. year ended 31 December 2012 give a true and fair view of Executive Board’s Responsibility the financial position, the results of operations and the cash Message from the IOC President 03 The Executive Board is responsible for the preparation flows in accordance with the International Financial Reporting and fair presentation of the combined financial statements Standards (IFRS) and comply with Swiss law and the Celebrating the Games 05 in accordance with the International Financial Reporting Olympic Charter. Standards (IFRS), the requirements of Swiss law and the 12 Report on other legal requirements Inspiring and Educating Youth Olympic Charter. This responsibility includes designing, We confirm that we meet the legal requirements on implementing and maintaining an internal control system Olympism in Action 18 licensing according to the Auditor Oversight Act (AOA) and relevant to the preparation and fair presentation of combined independence (article 69b paragraph 3 CC in connection 30 financial statements that are free from material misstatement, Supporting the Olympic Movement with article 728 CO) and that there are no circumstances whether due to fraud or error. The Executive Board is further incompatible with our independence. IOC Administration—Efficiency and Agility 40 responsible for selecting and applying appropriate accounting Major Decisions of the IOC Sessions 46 policies and making accounting estimates that are reasonable In accordance with article 69b paragraph 3 CC in connection in the circumstances. with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system IOC Membership 48 Auditor’s Responsibility exists which has been designed for the preparation of Our responsibility is to express an opinion on these combined Report of the Auditors and 54 combined financial statements according to the instructions financial statements based on our audit. eW conducted of the Executive Board. Combined Financial Statements our audit in accordance with Swiss law and Swiss Auditing Standards as well as the International Standards on Auditing. We recommend that the combined financial statements Those standards require that we plan and perform the audit submitted to you be approved. to obtain reasonable assurance whether the combined PricewaterhouseCoopers SA financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation and fair Michael Foley Pierre-Alain Dévaud presentation of the combined financial statements in order Audit expert Audit expert to design audit procedures that are appropriate in the Auditor in charge circumstances, but not for the purpose of expressing an Lausanne, 30 May 2013 opinion on the effectiveness of the entity’s internal control system.

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BUILDING A LEGACY THROUGH SPORT Combined statement of financial position IOC FINAL REPORT 2009–2012 at 31 December 2012 and 2011 (In thousands of US dollars)

Notes 2012 2011 ASSETS UNRESTRICTED Current assets Cash and cash equivalents 4 785 924 168 945 Financial assets at fair value through profit or loss 5 688 071 11 294 Receivables and other current assets 7 131 696 507 915 Olympic Games related deferred expenditure 11 – 123 208 1 605 691 811 363 Non-current assets Message from the IOC President 03 Financial assets 5 420 030 389 144 Investments in associates 6 19 064 14 280 Celebrating the Games 05 Tangible fixed assets 8 193 578 182 405 Olympic Games related deferred expenditure 11 63 146 41 868 Inspiring and Educating Youth 12 695 818 627 697 Olympism in Action 18 RESTRICTED Restricted financial assets 9 541 277 1 867 255 30 Supporting the Olympic Movement Total assets 2 842 786 3 306 314 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 LIABILITIES AND FUND BALANCES 48 Current liabilities IOC Membership Accounts payable and accrued expenses 10 154 923 100 617 54 Olympic Games related advances 11 – 1 598 560 Report of the Auditors and Olympic Games related deferred income 11 – 110 480 Combined Financial Statements Earmarked funds 12 29 525 26 751 184 448 1 836 408 Non-current liabilities Olympic Games related advances 11 541 277 268 695 Olympic Games related deferred income 11 54 900 32 568 Other deferred income and long-term debt 411 603 Earmarked funds 12 65 070 13 807 661 658 315 673 Fund balances Undesignated 1 513 219 969 773 Designated 445 596 149 129 Cumulative translation adjustment 37 865 35 331 1 996 680 1 154 233 Total liabilities and fund balances 2 842 786 3 306 314

The notes included on pages 61 to 94 are an integral part of the financial statements.

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BUILDING A LEGACY THROUGH SPORT Combined statement of activities IOC FINAL REPORT 2009–2012 for the years ended 31 December 2012 and 2011 (In thousands of US dollars)

Notes 2012 2011 Undesignated Designated Total REVENUES Television broadcasting rights 14 2 568 943 – 2 568 943 – TOP programme marketing rights 456 578 – 456 578 119 970 Other rights 15 155 898 – 155 898 6 346 Other revenues 16 134 364 – 134 364 9 967 3 315 783 – 3 315 783 136 283

EXPENDITURE Message from the IOC President 03 Central operating and administrative costs 17 144 191 5 009 149 200 150 705 Celebrating the Games 05 Olympic Games related expenditure, subsidies and special projects Inspiring and Educating Youth 12 Olympic Games related expenditure 18 453 611 – 453 611 – Youth Olympic Games related expenditure 19 20 291 – 20 291 – Olympism in Action 18 Grants and subsidies 3 983 – 3 983 4 704 Funds earmarked for allocation 12 81 000 – 81 000 – Supporting the Olympic Movement 30 Olympic Solidarity programme 20 – 75 253 75 253 71 138 Special projects 11 249 – 11 249 5 355 IOC Administration—Efficiency and Agility 40 570 134 75 253 645 387 81 197 Major Decisions of the IOC Sessions 46 Distribution of revenues to OCOG, USOC and IF Revenue distribution 21 1 751 752 (376 729) 1 375 023 50 100 IOC Membership 48 TOP programme marketing 21 440 996 – 440 996 94 268 2 192 748 (376 729) 1 816 019 144 368 54 Report of the Auditors and Excess of revenues (expenditure) before financial income 408 709 296 467 705 176 (239 987) Combined Financial Statements Financial income, net 22 130 392 – 130 392 16 428 Share of profit/(loss) of associates 6 4 345 – 4 345 420 Excess of revenues (expenditure) 543 446 296 467 839 913 (223 140)

The notes included on pages 61 to 94 are an integral part of the financial statements.

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BUILDING A LEGACY THROUGH SPORT Combined statement of comprehensive income IOC FINAL REPORT 2009–2012 for the years ended 31 December 2012 and 2011 (In thousands of US dollars)

2012 2011 Excess of revenues (expenditure) 839 913 (223 140) Other comprehensive income: Translation adjustment 2 534 (671) Total comprehensive income for the year 842 447 (223 811)

The notes included on pages 61 to 94 are an integral part of the financial statements.

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BUILDING A LEGACY THROUGH SPORT Combined statement of cash flows IOC FINAL REPORT 2009–2012 for the years ended 31 December 2012 and 2011 (In thousands of US dollars)

2012 2011 Operating activities Excess of revenues (expenditure) 839 913 (223 140) Adjustments for: Excess of television broadcasting rights revenues over distribution (1 193 920) 50 100 Allocation to earmarked funds 81 000 – Recognition of Olympic Games related deferred income and expenditure, net 12 728 – Financial income, net (130 392) (16 428) Depreciation and amortisation 22 489 13 777 Share of profit/(loss) of associates (4 345) (420) Foreign exchange differences 62 383 16 592 Message from the IOC President 03 (310 144) (159 519) Celebrating the Games 05 Changes in: Olympic Games related deferred income and expenditure, net 1 054 (6 558) Inspiring and Educating Youth 12 Receivables and other current assets (12 205) (31 016) Accounts payable and accrued expenses 19 130 7 529 Olympism in Action 18 7 979 (30 045) Supporting the Olympic Movement 30 TV Rights receipts and allocations Receipt of Olympic Games related advances 1 182 734 1 218 189 IOC Administration—Efficiency and Agility 40 Disbursement of Olympic Games related advances (870 625) (122 564) Increase in OCOG receivable (113 297) (299 232) Major Decisions of the IOC Sessions 46 Use of earmarked funds (26 963) (27 535) (Increase)/decrease in Television Broadcasting rights instalments held in trust 401 864 (489 123) IOC Membership 48 573 713 279 735 Report of the Auditors and 54 Interest received 50 749 39 070 Interest paid (3) (73) Combined Financial Statements 50 746 38 997 Net cash generated by operating activities 322 294 129 168 Investing activities Investment in associates – (14 245) Purchase of fixed assets (31 582) (30 609) Purchase of financial assets at fair value through profit or loss (1 020 386) (1 194 661) Proceeds from sales of financial assets at fair value through profit or loss 1 346 636 1 115 352 Net cash used in investing activities 294 668 (124 163) Increase/(decrease) in cash and cash equivalents 616 962 5 005 Movement in cash and cash equivalents At start of year 168 945 163 809 Increase/(decrease) 616 962 5 005 Effects of exchange rate changes 17 131 At end of year 785 924 168 945

The notes included on pages 61 to 94 are an integral part of the financial statements.

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BUILDING A LEGACY THROUGH SPORT Combined statement of changes in fund balances IOC FINAL REPORT 2009–2012 for the years ended 31 December 2012 and 2011 (In thousands of US dollars)

Cumulative Undesignated Designated translation funds funds adjustments Total Balance at 1 January 2011 1 066 806 275 236 36 002 1 378 044 Excess of revenues / (expenditure) recognised in statement of activities (97 033) (126 107) – (223 140) Translation adjustment – – (671) (671) Total comprehensive income / (loss) for the year (223 811) Balance at 31 December 2011 969 773 149 129 35 331 1 154 233 Excess of revenues / (expenditure) recognised in statement of activities 543 446 296 467 – 839 913 Translation adjustment – – 2 534 2 534 Message from the IOC President 03 Total comprehensive income / (loss) for the year 842 447 Celebrating the Games 05 Balance at 31 December 2012 1 513 219 445 596 37 865 1 996 680 Inspiring and Educating Youth 12 Olympism in Action 18 Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

The notes included on pages 61 to 94 are an integral part of the financial statements.

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BUILDING A LEGACY THROUGH SPORT 1. IOC FINAL REPORT 2009–2012 Activity

The International Olympic Committee (IOC), domiciled in • IOC Television and Marketing Services SA (IOCTMS), a Lausanne, Switzerland, is an international non-governmental company fully owned by the OF which manages the IOC’s not-for-profit organisation in the form of an association with worldwide sponsorship programme, all its other marketing the status of a legal person. The mission of the IOC is to activities and activities related to broadcasting rights and lead the Olympic Movement in accordance with the Olympic new media. Charter. The Olympic Movement encompasses organisations, • The Olympic Partner (TOP) Programme, the IOC’s athletes and other persons who agree to be guided by worldwide sponsorship programme which is managed the Olympic Charter, including, in addition to the IOC, the by IOCTMS. International Sports Federations (IFs), the National Olympic Committees (NOCs) including the United States of America • Olympic Broadcasting Services SA (OBS SA), a company Olympic Committee (USOC) and the Organising Committees that supplies all services relating to the establishment Message from the IOC President 03 of the Olympic Games (OCOGs). and management of the Host Broadcasting function of the Olympic Games, and in which the OF holds a 99% Celebrating the Games 05 The Olympic Movement’s revenues are largely generated shareholding. 12 from royalties on licensing television broadcasting rights for Inspiring and Educating Youth Olympic Games, as well as revenues from the commercial • Olympic Broadcasting Services SL (OBS SL), a company Olympism in Action 18 exploitation of the Olympic symbol and Olympic emblems. that provides services to OBS SA, fully owned subsidiary of OBS SA. 30 In addition to the activities of the IOC, these combined Supporting the Olympic Movement financial statements include the activities of the following • Olympic Broadcasting Services Vancouver LTD (OBSV), IOC Administration—Efficiency and Agility 40 organisations and programmes: a company that provides services to OBS SA, for the purpose of the 2010 Olympic Winter Games, fully owned • The Olympic Museum (OM), a foundation governed by the Major Decisions of the IOC Sessions 46 subsidiary of OBS SA. provisions of the Swiss Civil Code. It has been entrusted IOC Membership 48 by the IOC with the task of depicting the history and • Olympic Broadcasting Services London LTD (OBSL), development of the Olympic Movement and to associate a company that provides services to OBS SA, for the Report of the Auditors and 54 the movement with art and culture for specialists and the purpose of the 2012 Olympic Games, fully owned Combined Financial Statements public at large worldwide. subsidiary of OBS SA. • The Olympic Foundation (OF), a foundation governed The activities of the OM, the OF, OS, IOCTMS, TOP, OBS SA, by the provisions of the Swiss Civil Code. It has been OBS SL, OBSV and OBSL have been combined with those entrusted by the IOC to give support to the activities of of the IOC (together, the IOC or the Group) on the basis of the the Olympic Movement notably in the areas of culture, fact that the latter has a 100% shareholding or control of the education and sports. Boards of each organisation and programme. • Olympic Solidarity (OS), a programme developed jointly by the IOC and the National Olympic Committees (NOCs). Its purpose is to assist the officially recognised NOCs, especially those most in need, to fulfil their mission and in making known the ideals of the Olympic Movement.

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BUILDING A LEGACY THROUGH SPORT 2. IOC FINAL REPORT 2009–2012 Summary of significant accounting policies

A) Basis of preparation Standards, amendments and interpretations not yet The combined financial statements are prepared in effective and which have not been early adopted accordance with and comply with International Financial A number of new standards and amendments to standards Reporting Standards (IFRS). The significant accounting and interpretations are effective for annual periods beginning policies are described below and have been consistently after 1 January 2012, and have not been applied in preparing applied to the years presented, unless otherwise stated. these combined financial statements. None of these is The financial statements are prepared under the historical expected to have a significant effect on the consolidated cost convention except for financial assets at fair value financial statements of the group, except the following set through profit or loss and derivative financial instruments out below: which are shown at fair value. Transactions and balances Amendment to IAS 1, ‘Financial statement presentation’ among the combined organisations and programmes have regarding other comprehensive income. The main change Message from the IOC President 03 been eliminated. resulting from these amendments is a requirement for Celebrating the Games 05 The preparation of financial statements in conformity with entities to group items presented in ‘other comprehensive 12 IFRS requires the use of accounting estimates and also income’ (OCI) on the basis of whether they are potentially Inspiring and Educating Youth requires the exercise of judgment in the application of the reclassifiable to profit or loss subsequently (reclassification Olympism in Action 18 accounting policies. In particular, significant assumptions adjustments). The amendments do not address which items are used in the calculation of the defined benefit obligations are presented in OCI. 30 (note 13). Supporting the Olympic Movement IFRS 13, ‘Fair value measurement’, aims to improve IOC Administration—Efficiency and Agility 40 These combined financial statements have been approved by consistency and reduce complexity by providing a precise the Executive Board of the IOC on 30 May 2013. definition of fair value and a single source of fair value Major Decisions of the IOC Sessions 46 measurement and disclosure requirements for use across The amounts shown in these combined financial statements IFRSs. The requirements do not extend the use of fair are presented in US dollars, in view of the international nature IOC Membership 48 value accounting but provide guidance on how it should of the IOC’s operations and due to the majority of its revenues be applied where its use is already required or permitted by Report of the Auditors and 54 being earned in that currency. other standards within IFRSs. Combined Financial Statements The television broadcasting revenues are received in USD, IAS 19, ‘Employee benefits’, was amended in June 2011. EUR, JPY, GBP, CAD and AUD. The related distributions are The impact on the group will be as follows: to immediately paid in USD and EUR. recognise all past service costs; and to replace interest Restricted assets represent the equivalent of advances cost and expected return on plan assets with a net interest received on television rights royalties. Such funds are held in amount that is calculated by applying the discount rate to financial assets at fair value through profit or loss or in trust. the net defined benefit liability (asset). The Group will adopt retroactively this amendment during the accounting period Certain comparative statement of financial position figures beginning on 1 January 2013. The estimated impacts on have been reclassified to conform to the current year’s the main 2012 indicators are: a decrease of equity as at presentation. 31.12.2012 of USD 23.7 millions. The estimated impact on Amendments to published standards coming the net income is considered not significant. into effect in 2012 New standards, amendments or interpretations becoming effective in 2012 had no significant impact to the IOC’s financial statements. The IOC has not early adopted any other standards, amendments or interpretations.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

IFRS 9, ‘Financial instruments’, addresses the classification, B) Foreign currencies measurement and recognition of financial assets and a) Group companies financial liabilities. IFRS 9 was issued in November 2009 and Items included in the financial statements of each of the October 2010. It replaces the parts of IAS 39 that relate to Group’s entities are measured using the currency of the the classification and measurement of financial instruments. primary economic environment in which the entity operates IFRS 9 requires financial assets to be classified into two (“the functional currency”). measurement categories: those measured as at fair value and those measured at amortised cost. The determination The statements of activities of the Group’s entities that have is made at initial recognition. The classification depends a functional currency different from the presentation currency on the entity’s business model for managing its financial have been translated in US dollars at average exchange rates instruments and the contractual cash flow characteristics of for the year and the statements of financial position at the Message from the IOC President 03 the instrument. For financial liabilities, the standard retains year-end exchange rates ruling at 31 December. Exchange Celebrating the Games 05 most of the IAS 39 requirements. The main change is that, differences arising from such translation have been taken to in cases where the fair value option is taken for financial the statement of changes in fund balances. 12 liabilities, the part of a fair value change due to an entity’s Inspiring and Educating Youth The main exchange rates used are as follows: own credit risk is recorded in other comprehensive income Olympism in Action 18 rather than the statement of activities, unless this creates 2012 2011 2012 2011 Supporting the Olympic Movement 30 an accounting mismatch. The group is yet to assess IFRS 9’s full impact and intends to adopt IFRS 9 no later than the 1 USD against Year end rates Average rates IOC Administration—Efficiency and Agility 40 accounting period beginning on or after 1 January 2015. Swiss Franc CHF 0.9154 0.9381 0.9334 0.8816 However, initial indications are that it should not affect the Euro EUR 0.7580 0.7710 0.7752 0.7162 Major Decisions of the IOC Sessions 46 Group’s accounting for its financial assets. The group will also Canadian Dollar CAD 0.9920 1.0212 0.9988 0.9870 consider the impact of the remaining phases of IFRS 9 when IOC Membership 48 completed by the Board. Great Britain Pound GBP 0.6155 0.6430 0.6280 0.6219 Report of the Auditors and 54 IFRS 10, ‘Consolidated financial statements’, builds on Combined Financial Statements existing principles by identifying the concept of control as the b) Transactions and balances determining factor in whether an entity should be included Foreign currency income and expenditure are accounted at the within the consolidated financial statements of the parent exchange rates prevailing at the date of the transactions. Gains company. The standard provides additional guidance to and losses resulting from the settlement of such transactions assist in the determination of control where this is difficult to and from the translation of monetary assets and liabilities assess. The group is yet to assess IFRS 10’s full impact and denominated in foreign currencies are recognised in the intends to adopt IFRS 10 no later than the accounting period statement of activities. Non-monetary items carried at historical beginning on or after 1 January 2013. cost denominated in a foreign currency are reported using the IFRS 12, ‘Disclosures of interests in other entities’, includes historical exchange rate at the date of the transaction. the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. The group is yet to assess IFRS 12’s full impact and intends to adopt IFRS 12 no later than the accounting period beginning on or after 1 January 2013. There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

C) Consolidation b) Transactions and non-controlling interests a) Subsidiaries The Group treats transactions with non-controlling interests Subsidiaries are all entities (including special purpose as transactions with equity owners of the Group. For entities) over which the Group has the power to govern the purchases from non-controlling interests, the difference financial and operating policies generally accompanying a between any consideration paid and the relevant share shareholding of more than one half of the voting rights. The acquired of the carrying value of net assets of the subsidiary existence and effect of potential voting rights that are currently is recorded in equity. Gains or losses on disposals to non- exercisable or convertible are considered when assessing controlling interests are also recorded in equity. whether the Group controls another entity. Subsidiaries When the Group ceases to have control or significant are fully consolidated from the date on which control is influence, any retained interest in the entity is premeasured to transferred to the Group. They are deconsolidated from the Message from the IOC President 03 its fair value, with the change in carrying amount recognised in date that control ceases. Celebrating the Games 05 profit or loss. The fair value is the initial carrying amount for the The Group uses the acquisition method of accounting to purposes of subsequently accounting for the retained interest Inspiring and Educating Youth 12 account for business combinations. The consideration as an associate, joint venture or financial asset. In addition, transferred for the acquisition of a subsidiary is the fair values any amounts previously recognised in other comprehensive Olympism in Action 18 of the assets transferred, the liabilities incurred and the equity income in respect of that entity are accounted for as if the Supporting the Olympic Movement 30 interests issued by the Group. The consideration transferred Group had directly disposed of the related assets or liabilities. includes the fair value of any asset or liability resulting from This may mean that amounts previously recognised in other IOC Administration—Efficiency and Agility 40 a contingent consideration arrangement. Acquisition-related comprehensive income are reclassified to profit or loss. costs are expensed as incurred. Identifiable assets acquired If the ownership interest in an associate is reduced but Major Decisions of the IOC Sessions 46 and liabilities and contingent liabilities assumed in a business significant influence is retained, only a proportionate share of combination are measured initially at their fair values at the the amounts previously recognised in other comprehensive IOC Membership 48 acquisition date. On an acquisition-by-acquisition basis, income are reclassified to profit or loss where appropriate. Report of the Auditors and 54 the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s c) Associates Combined Financial Statements proportionate share of the acquiree’s net assets. Associates are all entities over which the Group has The excess of the consideration transferred the amount significant influence but not control, generally accompanying of any non-controlling interest in the acquiree and the a shareholding of between 20% and 50% of the voting rights. acquisition-date fair value of any previous equity interest in Investments in associates are accounted for using the equity the acquiree over the fair value of the Group’s share of the method of accounting and are initially recognised at cost. The identifiable net assets acquired is recorded as goodwill. Group’s investment in associates includes goodwill identified If this is less than the fair value of the net assets of the on acquisition, net of any accumulated impairment loss. subsidiary acquired in the case of a bargain purchase, The Group’s share of its associates’ post-acquisition profits the difference is recognised directly in the statement of or losses is recognised in the statement of activities, and its comprehensive income. share of post-acquisition movements in other comprehensive Inter-company transactions, balances and unrealised gains income is recognised in other comprehensive income. The on transactions between Group companies are eliminated. cumulative post-acquisition movements are adjusted against Unrealised losses are also eliminated. Accounting policies of the carrying amount of the investment. When the Group’s subsidiaries have been changed where necessary to ensure share of losses in an associate equals or exceeds its interest in consistency with the policies adopted by the Group. the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Unrealised gains on transactions between the Group and its Regular purchases and sales of investments are recognised associates are eliminated to the extent of the Group’s interest on settlement date. Financial assets at fair value through profit in the associates. Unrealised losses are also eliminated unless or loss are initially recognised at fair value and transaction the transaction provides evidence of an impairment of the costs are expensed in the statement of activities. They asset transferred. Accounting policies of associates have are subsequently carried at fair value. Investments are been changed where necessary to ensure consistency with derecognised when the rights to receive cash flows from the policies adopted by the Group. the investments have expired or have been transferred and the IOC has transferred substantially all risks and rewards of Dilution gains and losses arising in investments in associates ownership. Loans and receivables are carried at amortised are recognised in the statement of activities. cost using the effective interest method. Message from the IOC President 03 D) Cash and cash equivalents Gains or losses arising from changes in the fair value of the Cash and cash equivalents include cash in hand, deposits ‘financial assets at fair value through profit or loss’ category, Celebrating the Games 05 held at call with banks and other short-term highly liquid including interest and dividend income, are presented in the 12 investments with original maturities of three months or less. statement of activities within financial income, net, in the Inspiring and Educating Youth period in which they arise. Olympism in Action 18 E) Financial assets The Group classifies its financial assets in the following F) Deferred income and expenditure Supporting the Olympic Movement 30 categories: financial assets at fair value through profit or loss, Income and expenditure relating to Olympic Games and and loans and receivables. The classification depends on Youth Olympic Games (the “Games”) not yet held are IOC Administration—Efficiency and Agility 40 the purpose for which the financial assets were acquired. deferred and recognised in the statement of activities upon Major Decisions of the IOC Sessions 46 Management determines the classification of its financial successful completion of the Games. These include costs assets at initial recognition and re-evaluates this designation incurred on certain projects which provide benefits to a IOC Membership 48 at every reporting date. number of Games. Income and expenditure relating to the TOP programme are deferred for items relating to future TOP a) Financial assets at fair value through profit or loss Report of the Auditors and 54 four-year-programmes. In addition, certain amounts relating Combined Financial Statements A financial asset is classified in this category if acquired to value in kind contributions received and payable to OCOGs principally for the purpose of selling in the short term or if so under the TOP programme are deferred and recognised in designated by management. Derivatives are also categorised the year of the Games. as such. Assets in this category are classified as current assets if they are expected to be realised within 12 months of the balance sheet date. b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

G) Tangible fixed assets I) Pension obligations Buildings and building installations, leasehold improvements, The Group sponsors pension plans for employees of the furniture and equipment and information technology IOC, OM, OF and IOCTMS. These plans are cash-balance systems are stated at cost less accumulated depreciation. plans treated as defined benefit plan for financial reporting Broadcasting equipment is depreciated according to its purposes. The plan assets are separated and managed effective use during the Olympic Winter Games and during independently from the Group’s assets. The pension plans’ the Games of the Olympiad once every two years. obligations and the service cost are calculated annually by an independent actuary. The method used is the projected unit Depreciation of other assets is calculated on a straight line credit method. The Group’s policy for recognition of actuarial basis over the estimated useful life of the assets as follows: gains and losses is to recognise the amount exceeding 10% of the higher of the present value of obligations and Message from the IOC President 03 Buildings 50 years the assets over the average future working life of the active Celebrating the Games 05 Building installations 25 years members. Furthermore, the Group pays contributions to Leasehold improvements, furniture and equipment 4 to 10 years savings plans for OBS SL. Inspiring and Educating Youth 12 Information technology systems 4 to 5 years J) Designated funds Olympism in Action 18 Collections 25 years Funds designated for the financing of the annual programme of Supporting the Olympic Movement 30 Olympic Solidarity and 2010 Vancouver television broadcasting Land is stated at cost and is not depreciated. rights that the IOC has reserved for future distribution are IOC Administration—Efficiency and Agility 40 reported as designated funds in the combined financial New building installations and major renewals, in particular statements. The balance of these funds consists of unutilised Major Decisions of the IOC Sessions 46 broadcasting equipment, are capitalised; maintenance, budget allocations for the 2009–2012 quadrennial programme repairs and minor renewals are charged to the statement and television broadcasting rights allocated but not yet paid. IOC Membership 48 of activities as incurred. The depreciation charge on broadcasting equipment is included in the Olympic Games Report of the Auditors and 54 K) Revenue recognition related expenditure. a) Television broadcasting rights Combined Financial Statements H) Impairment of non-financial assets Royalties from the licensing of television rights to broadcast Assets that are subject to amortisation are reviewed for Olympic Games and Youth Olympic Games are recognised impairment whenever events or changes in circumstances on the successful completion of the respective Olympic indicate that the carrying amount may not be recoverable. Games. Instalments received by the IOC prior to this date An impairment loss is recognised for the amount by which are deferred as they may be repayable, in whole or in part, the asset’s carrying amount exceeds its recoverable to the television networks at any time up to the completion amount. The recoverable amount is the higher of an of the Games upon the occurrence, for any reason, of one asset’s fair value less costs to sell and value in use. For the or several conditions specified in the agreements. Interests purposes of assessing impairment, assets are grouped at earned on the instalments received are of the benefit of the the lowest levels for which there are separately identifiable IOC and are recorded as interest income currently. cash flows (cash-generating units). Non-financial assets The proceeds from television rights royalties are allocated other than goodwill that suffered an impairment are between the IOC, OCOGs, IFs, NOCs and OS by decision of reviewed for possible reversal of the impairment at each the IOC Executive Board upon the successful completion of reporting date. the Olympic Games.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

b) TOP rights N) Accounting for derivative financial instruments and hedging activities Revenues from TOP rights are partly received in cash, in Derivative financial instruments are recognised in the which case they are recorded in the period the instalments statement of financial position at fair value. All fair value become due, and partly received in the form of goods or changes are recognised immediately in the statement services (Value in Kind). Value in Kind is recognised for the of activities. USOC, the NOCs and the IOC on a linear basis during the period of the contract and in the year of the Games of the Certain financial instrument transactions provide effective Olympiad or Olympic Winter Games for the OCOGs. Value economic hedges under the Group’s risk management in Kind revenues are recorded based on their underlying fair policies; however, they do not qualify for hedge accounting value. Fair value is considered to be the estimated market under the specific rules in IAS 39. As a consequence, the Message from the IOC President 03 price obtainable between knowledgeable, willing parties in an hedging instrument and the hedged item are reported arm’s length transaction. independently as if there were no hedging relationship. Celebrating the Games 05 The TOP rights proceeds, net of related management fees, Inspiring and Educating Youth 12 are allocated between the IOC, OCOGs and NOCs based on a standard formula agreed by the parties. Such distribution is Olympism in Action 18 recorded in line with the aforementioned policy with respect Supporting the Olympic Movement 30 to the recognition of TOP rights. c) Other rights IOC Administration—Efficiency and Agility 40 Other rights include revenues from the commercial exploitation Major Decisions of the IOC Sessions 46 of the Olympic symbol and Olympic emblems. The revenues represent the Group’s share of the OCOGs marketing IOC Membership 48 programmes, as well as income from other sponsorship, Report of the Auditors and 54 suppliership and licensing agreements. Revenues which are related to Olympic Games are deferred until the year the Combined Financial Statements Olympic Games are held; other revenues are recorded in the period the instalments become due. Part of these revenues is received in the form of goods or services (Value in Kind).

L) Financial income Interest income is recognised on an effective yield basis, and dividend income is recognised when the right to receive payment is established.

M) Income taxes The IOC, the OF and the OM are exempt from paying income taxes. Income taxes due by IOCTMS, OBS SA, OBS SL and OBSV as at 31 December, 2012 and 2011 are included in accounts payable and amount to USD 1.021 million in 2012 and USD 0.329 million in 2011.

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BUILDING A LEGACY THROUGH SPORT 3. IOC FINAL REPORT 2009–2012 Financial risk management

A) Financial risk factors At 31 December 2012, if the GBP had weakened/ The Group’s activities expose it to a variety of financial strengthened by 10% against the USD with all other variables risks, including the effects of changes in foreign currency held constant, excess of revenues (expenditure) for the year exchange rates and interest rates. Its overall risk would have deteriorated/improved by USD 4.5 million (2011: management programme seeks to minimise potential USD 6.5 millions). adverse effects on the activities of the Group. The Group b) Interest rate risk uses derivative financial instruments such as foreign currency options, interest rate swaps, swaptions and The Group is exposed to interest rate risk through the impact forward contracts to cover certain exposures. of rate changes on interest bearing assets. These exposures are managed partly through the use of derivative financial Risk management is carried out by the treasury section under instruments such as interest rate swaps and swaptions. Message from the IOC President 03 limits determined by the Finance Management Committee and the policies approved by the Executive Board. At 31 December 2012, if the interest rates had increased/ Celebrating the Games 05 decreased by 1%, with all other variables held constant, a) Foreign exchange risk 12 excess of revenues (expenditure) for the year would have Inspiring and Educating Youth The Group is exposed to foreign exchange risks mainly improved/deteriorated by USD 15.3 millions (2011 USD 11.6 Olympism in Action 18 because most of its revenues are generated in various millions) lower/higher, mainly as a result of change in fair value currencies including USD, EUR and JPY whereas its central of bond instruments included in financial assets at fair value Supporting the Olympic Movement 30 operating and administrative costs are essentially Swiss franc through profit or loss. based. Foreign currency option and forward contracts are c) Credit risk IOC Administration—Efficiency and Agility 40 used to reduce the related exposure. A substantial part of the Group’s revenues are generated from Major Decisions of the IOC Sessions 46 At 31 December 2012, if the EUR had weakened/ the licensing of television broadcasting rights and other rights. strengthened by 10% against the USD with all other variables The Group believes that all amounts due under such rights IOC Membership 48 held constant, excess of revenues (expenditure) for the year are fully collectible. The Group has policies which limit the would have deteriorated/improved by USD 34.2 millions Report of the Auditors and 54 amount of credit and investment exposures. Cash is placed (2011: USD 20.6 millions). Combined Financial Statements with, derivative instruments are entered into, and custodian At 31 December 2012, if the CHF had weakened/ agreements in place with Swiss banks. Investment securities strengthened by 10% against the USD with all other variables represent notes issued by major corporations and government held constant, excess of revenues (expenditure) for the year entities as well as investment fund units issued by major banks. would have deteriorated/improved by USD 18.4 millions d) Market risk (2011: USD 9.1 millions). The Group is exposed to market risk because of its financial At 31 December 2012, if the AUD had weakened/ assets at fair value through profit or loss other than money strengthened by 10% against the USD with all other variables market instruments. These exposures are managed by held constant, excess of revenues (expenditure) for the year the Group using the financial risk management policies would have deteriorated/improved by USD 12.3 millions described below. (2011: USD 2.7 million). At 31 December 2012, if the equity indexes had increased/ At 31 December 2012, if the JPY had weakened/ decreased by 10%, with all other variables held constant, strengthened by 10% against the USD with all other variables excess of revenues (expenditure) for the year would have held constant, excess of revenues (expenditure) for the year improved/deteriorated by USD 13.5 millions (2011 USD 12.7 would have deteriorated/improved by USD 13.1 million (2011: millions), mainly as a result of change in fair value of equity USD 0.2 millions). based instruments included in financial assets at fair value through profit or loss.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

e) Liquidity risk The treasury department monitors and manages cash at the Group level and prepares rolling forecasts of the Group’s liquidity position on an ongoing basis. Such forecasting takes into consideration the contractual terms of cash in- and outflows under broadcasting rights and TOP Programme agreements, the IOC’s funding of contractual obligations towards other organisations of the Olympic movement and operating expenses of the Group’s organisations and programmes. Message from the IOC President 03 Surplus cash held by the Group is invested in the Olympic Celebrating the Games 05 Foundation portfolio (note 3B). The table below analyses the Group’s non-derivative financial Inspiring and Educating Youth 12 liabilities and net settled derivative financial liabilities into Olympism in Action 18 relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Supporting the Olympic Movement 30 The amounts disclosed in the table are the contractual undiscounted cash flow. IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 At 31 December 2012 Less than Between 1 Between 2 Over IOC Membership 48 USD 000 1 year and 2 years and 5 years 5 years Report of the Auditors and 54 Accounts payable 137 185 – – – Earmarked funds 29 525 27 347 37 723 – Combined Financial Statements Balance at 31 December 166 710 27 347 37 723 –

At 31 December 2011 Less than Between 1 Between 2 Over USD 000 1 year and 2 years and 5 years 5 years Accounts payable 72 511 – – – Earmarked funds 26 751 13 807 – – Balance at 31 December 99 262 13 807 – –

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

B) Financial risk management policy b) Responsibilities a) Overview and Objectives The Executive Board approves the investment strategy The International Olympic Committee receives and distributes for the International Olympic Committee, Olympic funds to the various pillars of the Olympic Movement. The Foundation, TOP Programme and OBS portfolios on Finance Commission and the Executive Board wish to adopt the recommendation of the Finance Commission, and policies and procedures to govern the management of these thereafter exercises overall supervision of its implementation. funds as well as the level of market and credit risk that can be The execution of approved investment strategies is the assumed, and the reports to be submitted. responsibility of the TFIMC. The investment strategy of the Olympic Solidarity portfolio is subject to the prior approval Policies described below are to be followed in the management of the Olympic Solidarity Commission. The Treasurer is of the funds directly under the control of the IOC. These funds responsible for implementing approved strategies and Message from the IOC President 03 are kept in five separate portfolios herein denominated as ensuring compliance with policy limits. Celebrating the Games 05 the International Olympic Committee portfolio, the Olympic Foundation portfolio, the Olympic Solidarity portfolio, the TOP c) International Olympic Committee Portfolio programme portfolio, and the OBS portfolio. Inspiring and Educating Youth 12 The IOC portfolio includes funds of a restricted nature Olympism in Action 18 The International Olympic Committee portfolio holds funds derived primarily from broadcasting rights contracts which of a restricted nature derived from the sale of television may have to be reimbursed in foreign currency under Supporting the Olympic Movement 30 broadcasting rights. It also keeps the short-term treasury certain circumstances, within an uncertain period of time. position of the IOC and the accounts from which the operating The remainder of the portfolio is used to finance operating IOC Administration—Efficiency and Agility 40 expenses and other cash outflows of the IOC are disbursed. expenses, made usually in CHF, and other cash outflows. Major Decisions of the IOC Sessions 46 The Olympic Foundation portfolio is the primary reserve fund The short term nature and uncertainty of the claims on the of the IOC. Its purpose is to cover the operating expenses of IOC portfolio suggest that it should have a modest risk profile IOC Membership 48 the IOC over an Olympiad in which no Games were held. where a principal attribute is capital preservation. Report of the Auditors and 54 The Olympic Solidarity portfolio holds the funds which are to Investments of restricted funds (i.e. TV rights advances) Combined Financial Statements be distributed by the OS. should be made in the same currency in which the IOC received the funds. The duration of these investments will The TOP programme portfolio and the OBS portfolio serve to correspond approximately with the dates of the Opening manage the liquidity of the respective entities. Ceremony of the Olympic Games covered by the respective The Finance Commission is responsible for recommending broadcasts rights payments. policies for approval by the Executive Board. These portfolios Types of investments permitted include: are managed by the Treasurer, and overseen by the Treasury and Financial Investments Management Committee (TFIMC) • Money market instruments, notes and bonds. as well as the Finance Commission. • Foreign-exchange spot forwards. The objective of this policy statement is to outline for each • Structured products with 100% capital guarantee. portfolio (a) the purpose of the portfolio, its return objectives and its level of risk, (b) the type of investment instruments • Foreign-exchange options. permitted with limits by type of instrument, (c) the maximum • Interest rates swaps and derivatives like options, market risk limits to be assumed by the portfolios, by duration FRAs or swaptions. and value-at-risk measures, (d) the limits on debt investments by credit rating, and (e) the reporting requirements. • Money market funds. All other types of investments require prior approval of the TFIMC and/or the Finance Commission.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

For fixed-income securities, the following limits shall apply: • Structured products with 100% capital guarantee. • The securities shall have a rating of “A” or above on the • Foreign-exchange spot and forwards. Bloomberg Composite Rating. If a rating falls below A • Options on foreign exchange and rates. during the bond’s lifetime, a deeper analysis has to be carried out and the case will be submitted at the next For fixed-income securities, the following limits shall apply: TFIMC meeting. • Ratings: supranational entities, corporations, states and • The following ratings limits shall apply: AAA and AA Bonds provinces bonds shall have a rating of “B” (up to 5% of the 70–100%, A bonds 0–30%. market value of the bond portfolio), single “A” (up to 30%); and “AA and above” (at least 70%); unrated obligations are • The duration of the fixed-income portfolio that is not not permitted. Message from the IOC President 03 restricted shall not exceed 4 years, and the 90-day value-at-risk must remain below 9% of the market value. • The duration of the fixed-income portfolio shall not exceed Celebrating the Games 05 10 years, and the 90-day value-at-risk must remain below • Total exposure to any one corporate issuer should not 9% of the market value. Inspiring and Educating Youth 12 exceed 6% of the market value of the total bond portfolio. • Total exposure to any one corporate issuer should not • Structured notes, maximum 20% of the market value of the Olympism in Action 18 exceed 6% of the market value of the total bond portfolio. bond portfolio. 30 • Structured notes with principal protection should not Supporting the Olympic Movement Short options are permitted for the purpose of yield exceed 20% of the market value of the bond portfolio. IOC Administration—Efficiency and Agility 40 enhancement and are always covered by an underlying asset in the portfolio. For common equities, the following limits will apply: 46 Major Decisions of the IOC Sessions d) Olympic Foundation Portfolio • Positions in any single equity must be limited to 6% of the market value of the equity portfolio. Positions in a single IOC Membership 48 The Olympic Foundation has been entrusted by the IOC Equity fund and Fund of funds must be limited to 12% of to give support to the activities of the Olympic Movement. Report of the Auditors and 54 the equity portfolio. The Olympic Foundation portfolio will ensure it has sufficient Combined Financial Statements investments realisable with a minimum of loss so as to cover • Emerging market equities cannot exceed 20% of the the IOC’s operating cash requirements in the eventuality of a market value of the equity portfolio. cancellation of any future Olympic Games. The proportion of the portfolio invested in equities (including The portfolio has a long-term orientation and has an absolute hedge funds and funds of funds) cannot exceed 30% of the return objective. The investment universe is broad and total market value of the portfolio. therefore the risk appetite is higher than the IOC portfolio. For commodities investments, the following limits will apply: External mandates for some specific investments • Investments must be limited to 10% of the market value of are permitted. the total portfolio. Types of investments permitted include: For real estate investments, the following limits will apply: • Money market instruments, notes and bonds. • Direct investments in real estate as well as real estate • Common equities and exchange-traded funds (ETFs). funds must be limited to 10% of the market value of the total portfolio. • Mutual funds or hedge funds which invest in securities described above. Short options are permitted for the purpose of yield enhancement and are always covered by an underlying • Fund of Funds. asset in the portfolio. • Real Estate funds or real estate direct investments. All other types of investments require prior approval of the • Commodities. TFIMC and/or the Finance Commission.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Currency allocation: g) Benchmarks Olympic Foundation investments can be made in every Each category of investment within the IOC portfolios has a convertible currency. Nevertheless, the following ranges benchmark index identified. These will be used to compare should be maintained and respected: the actual total return of the portfolios of the IOC, the OF, • 30–50% of the total of investments in USD. TOP and OBS with a corresponding passive index. • 30–50% of the total of investments in EUR. h) Reporting • 10–25% of the total of investments in CHF. Reports on the investment portfolios must be presented to the Finance Commission on a semi-annual basis and quarterly to • Additional ranges: AUD (0–10%), GBP (0–5%), the Finance Management Committee. In addition, a dashboard Message from the IOC President 03 other currencies (0–10%). report is issued every month and sent to management. This Custodian banks: report assesses the full compliance of investments with risk Celebrating the Games 05 The Olympic Foundation assets should be held in several policies. Any deviation is underlined and the follow-up and the final decision are taken by management. banks for diversification purposes. None of them should have Inspiring and Educating Youth 12 more than 70% of the global portfolio. The monthly dashboard is distributed to the Treasury and Financial Investments Management Committee which is Olympism in Action 18 e) Olympic Solidarity Portfolio composed of the following members: President, Chairman Supporting the Olympic Movement 30 The strategy consists of managing the biennial IOC of the Finance Commission, General Director, Chief Financial allocations and matching the investments with the forecasted Officer and the Treasurer. IOC Administration—Efficiency and Agility 40 outflows. The portfolio should have a low-risk profile where At 31 December 2012, the dashboard showed that the Major Decisions of the IOC Sessions 46 a principal objective is capital preservation. It is short-term authorised limits for the single “A” ratings of bonds in the IOC, orientated and has an absolute return objective. Olympic Foundation and Olympic Solidarity portfolios had been IOC Membership 48 Types of investments permitted include US dollar- exceeded. This was because the downgrading in the ratings of Report of the Auditors and 54 denominated money market instruments, notes and bonds various sovereign and financial bond issuers had modified the whereby the following limits apply: distribution in the portfolios. This situation was accepted by the Combined Financial Statements Treasury and Financial Investments Management Committee. • Ratings: corporate obligations shall have a rating of “A” or above; the applicable limit for single “A” is 20% of As at 31 December 2011, the dashboard did not reveal any the market value of the portfolio. If a bond is suddenly significant discrepancy with the risk management policies. downgraded below A, a deeper analysis should be made. i) Policy Exceptions and update • The duration of the fixed-income portfolio shall not Policy exceptions may be approved in the event that unusual exceed five years, and the 90-day value-at-risk must market conditions require immediate action, and it is not remain below 6% of the market value at inception of the feasible to convene the Finance Commission. In the case of funding allocation. any proposed actions that could result in exceeding a policy limit, approval must be obtained from at least two members • Total exposure to any one corporate issuer should not of the Finance Management Committee, one of whom exceed 6% of the market value of the total portfolio at must be either the President or the Chairman of the Finance inception of the funding allocation. Commission, before proceeding. After the Treasury and All other types of investments require prior approval of the Financial Investments Management Committee meeting, the Olympic Solidarity Commission transaction(s) must be presented for ratification. f) TOP Programme and OBS Portfolios: These policies shall be reviewed every two years and should contain a re-assessment of the portfolio objectives, risk profiles, These two portfolios mainly consist of money market permitted investments/currencies and asset allocation mix. investments and bonds and focus on managing liquidity on the short term. The last update was made in May 2012 and was approved by the IOC Finance Commission on June 22nd 2012.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

C) Fair value estimation The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); Message from the IOC President 03 • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) Celebrating the Games 05 (level 3). Inspiring and Educating Youth 12 The following table presents the group’s assets and liabilities that are measured at fair value at 31 December 2012. Olympism in Action 18 Supporting the Olympic Movement 30 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss IOC Administration—Efficiency and Agility 40 Bank deposits 85 894 – – 85 894 46 Money market funds 19 890 – – 19 890 Major Decisions of the IOC Sessions Bonds 1 024 682 – – 1 024 682 IOC Membership 48 Equity 38 479 – 10 680 49 159 Hedge funds – 85 676 – 85 676 Report of the Auditors and 54 Real estate 8 834 – – 8 834 Commodities 15 053 – – 15 053 Combined Financial Statements Structured products (DCD) – 16 139 – 16 139 Derivative financial instruments – 1 808 – 1 808 Total assets 1 192 832 103 623 10 680 1 307 135

The following table presents the group’s assets and liabilities that are measured at fair value at 31 December 2011.

Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Bank deposits 481 633 – – 481 633 Money market funds 42 413 – – 42 413 Bonds 946 175 – – 946 175 Equity 35 159 – 7 970 43 129 Hedge funds – 83 654 – 83 654 Real estate 7 050 – – 7 050 Commodities 15 168 – – 15 168 Structured products (DCD) – – – – Derivative financial instruments – (9 185) – (9 185) Total assets 1 527 598 74 469 7 970 1 610 037

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions. The quoted market price used for financial assets held by the group is the last daily quoted price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily equity investments, bonds, commodities and bank deposits classified as financial assets at fair value through Message from the IOC President 03 profit or loss. Celebrating the Games 05 The fair value of financial instruments that are not traded in 12 an active market (for example, over-the-counter derivatives) Inspiring and Educating Youth is determined by using valuation techniques. These valuation Olympism in Action 18 techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific Supporting the Olympic Movement 30 estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. IOC Administration—Efficiency and Agility 40 If one or more of the significant inputs is not based on Major Decisions of the IOC Sessions 46 observable market data, the instrument is included in Level 3. IOC Membership 48 The following table presents the changes in level 3 instruments for the year ended 31 December 2012. Report of the Auditors and 54 Combined Financial Statements Equity Total Opening balance 7 970 7 970 Purchases of Level 3 instruments 4 850 4 850 Sales of Level 3 instruments (2 990) (2 990) Gains and losses recognised in profit or loss 850 850 Closing balance 10 680 10 680 Total gains or losses for the period included in profit or loss for assets held at the end of the reporting period 850 850

The following table presents the changes in level 3 instruments for the year ended 31 December 2011

Equity Total Opening balance 2 980 2 980 Purchases of Level 3 instruments 4 900 4 900 Gains and losses recognised in profit or loss 90 90 Closing balance 7 970 7 970 Total gains or losses for the period included in profit or loss for assets held at the end of the reporting period 90 90

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BUILDING A LEGACY THROUGH SPORT 4. IOC FINAL REPORT 2009–2012 Cash and cash equivalents

2012 2011 USD 000 USD 000 Cash at bank and in hand 343 889 51 622 Bank deposits in USD 309 800 55 135 in EUR 96 840 37 486 in NOK 15 811 – in CAD 907 5 418 in GBP 14 623 19 284 in AUD 4 054 – Message from the IOC President 03 Total cash and cash equivalents 785 924 168 945 Celebrating the Games 05 Inspiring and Educating Youth 12 Olympism in Action 18 5. Supporting the Olympic Movement 30 Financial assets IOC Administration—Efficiency and Agility 40 A) Movements in financial assets at fair value through Major Decisions of the IOC Sessions 46 profit or loss IOC Membership 48 2012 2011 USD 000 USD 000 Report of the Auditors and 54 For the year ended 31 December Combined Financial Statements Opening net book amount 1 610 037 1 572 783 Additions 1 020 386 1 194 661 Disposals (1 346 638) (1 115 352) Gains (losses) on sale of financial assets (note 22) 1 147 (3 065) Exchange gains / (losses) (14 691) (14 234) Increase / (decrease) in market value (note 22) 36 894 (24 756) Closing net book amount 1 307 135 1 610 037

As at 31 December Current 688 071 11 294 Non current (note 5C) 206 263 261 828 Restricted (note 9) 412 801 1 336 915 Total of financial assets at fair value through profit or loss 1 307 135 1 610 037

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

B) Financial assets at fair value through profit or loss by portfolio and classes, including restricted financial assets disclosed in note 9 2012 2011 USD 000 USD 000 a) International Olympic Committee Bank deposits 80 045 425 038 Money market funds 58 42 413 Bonds 547 716 511 765 Structured Products (DCD) 16 139 – Derivative financial instruments 1 247 (7 685) Message from the IOC President 03 645 205 971 531 b) Olympic Foundation Celebrating the Games 05 Bank deposits – 32 241 Bonds 411 310 307 758 Inspiring and Educating Youth 12 Equity 49 159 43 129 Hedge funds 85 023 82 196 Olympism in Action 18 Real estate 8 833 7 050 Commodities 13 540 13 666 Supporting the Olympic Movement 30 Derivative financial instruments 561 (1 500) IOC Administration—Efficiency and Agility 40 568 426 484 540 c) Olympic Solidarity Major Decisions of the IOC Sessions 46 Bank deposits – 23 300 Money market funds 19 832 – IOC Membership 48 Bonds 34 753 93 299 54 585 116 599 Report of the Auditors and 54 d) Top Programme Combined Financial Statements Bank deposits 5 849 – Bonds 30 903 33 353 Hedge funds 653 1 458 Commodities 1 514 1 502 38 919 36 313 e) OBS Bank deposits – 1 054 – 1 054 Total portfolios 1 307 135 1 610 037

Total by classes Bank deposits 85 894 481 633 Money market funds 19 890 42 413 Bonds 1 024 682 946 175 Equity 49 159 43 129 Hedge funds 85 676 83 654 Real estate 8 833 7 050 Commodities 15 054 15 168 Structured Products (DCD) 16 139 – Derivative financial instruments 1 808 (9 185) 1 307 135 1 610 037

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

C) Long-term financial assets 2012 2011 USD 000 USD 000 Receivable from Organising Committees of Olympic Games: Sochi 135 020 72 442 Rio 70 000 45 267 Financial assets at fair value through profit or loss (note 5A) 206 263 261 828 Loan to associates 4 810 6 448 Other financial assets 3 937 3 159 Total financial assets 420 030 389 144 Message from the IOC President 03 Celebrating the Games 05 12 The receivable from host cities OCOG are guaranteed by their Inspiring and Educating Youth respective government which have the following S&P ratings: Olympism in Action 18 UK government (London) AAA, Russian government (Sochi) BBB and Brazil government (Rio) BBB. Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 Report of the Auditors and 54 Combined Financial Statements

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D) Financial instruments by category Financial assets at fair value through Loans and profit or loss receivables Total USD 000 USD 000 USD 000 Assets as per balance sheet at 31 December 2012 Unrestricted Current assets Cash and cash equivalents – 785 924 785 924 Financial assets at fair value through profit or loss 688 071 – 688 071 Receivables and other current assets – 131 696 131 696 Message from the IOC President 03 Non-current assets Celebrating the Games 05 Financial assets 206 263 213 767 420 030 Restricted Inspiring and Educating Youth 12 Restricted financial assets (note 9) 412 801 128 476 541 277 Olympism in Action 18 Total 1 307 135 1 259 863 2 566 998 Supporting the Olympic Movement 30 Assets as per balance sheet at December 31, 2011 IOC Administration—Efficiency and Agility 40 Unrestricted Current assets Major Decisions of the IOC Sessions 46 Cash and cash equivalents – 168 945 168 945 48 Financial assets at fair value through profit or loss 11 294 – 11 294 IOC Membership Receivables and other current assets – 507 915 507 915 54 Non-current assets Report of the Auditors and Financial assets 261 828 127 316 389 144 Combined Financial Statements Restricted Restricted financial assets (note 9) 1 336 915 530 340 1 867 255 Total 1 610 037 1 334 515 2 944 553

Except where mentioned in the relevant notes, the carrying amount of each class of financial assets disclosed in the table above approximates the fair value.

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BUILDING A LEGACY THROUGH SPORT 6. IOC FINAL REPORT 2009–2012 Investments in associates

2012 2011 USD 000 USD 000 At 1 January 14 280 – Acquisition of associates – 14 245 Share of (loss) / profit 4 345 420 Exchange differences 439 (385) Other equity movements – – At 31 December 19 064 14 280

The Group’s share of the results of its principal associates, Message from the IOC President 03 all of which are unlisted, and its aggregated assets Celebrating the Games 05 (including goodwill) and liabilities are as follows: Inspiring and Educating Youth 12 Assets Liabilities Revenues Profit/(Loss) 2011 34 502 20 222 1 297 420 Olympism in Action 18 2012 42 894 23 828 15 134 4 345 Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 7. Receivables and other current assets IOC Membership 48 Report of the Auditors and 54 2012 2011 Combined Financial Statements USD 000 USD 000 Receivable from Organising Committees of Olympic Games: London 12 833 409 183 Sochi 3 734 3 757 Rio 21 067 2 948 Innsbruck – 4 934 Other Organising Committees 15 – Rights income receivable 4 917 5 064 Recoverable withholding taxes and VAT 36 450 10 197 Other receivables 7 570 2 137 Accrued income 14 500 – Accrued interest receivable 12 347 18 434 Prepaid expenses and advances 8 176 39 808 Prepaid pension costs (note 13) 9 109 9 576 Olympic souvenirs and awards 978 1 877 Total receivables and other current assets 131 696 507 915

As of 31 December 2012, a receivable of USD 1.4 million was past due and has been provided for. As of 31 December 2011, no receivables were past due.

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BUILDING A LEGACY THROUGH SPORT 8. IOC FINAL REPORT 2009–2012 Tangible fixed assets

Land, Leasehold buildings improvements, Information and building furniture and technology Broadcasting Construction installations equipment systems equipment Collections in progress Total USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 Year ended December 31, 2011 Opening net book amount 89 500 16 272 18 996 10 206 27 507 – 162 481 Exchange differences (130) (222) (22) (26) – – (400) Additions / Disposals, net 4 928 6 004 11 377 6 881 1 617 – 30 807 Message from the IOC President 03 Depreciation charge (2 384) (2 986) (3 899) 1 (1 215) – (10 483) Closing net book amount 91 914 19 068 26 452 17 062 27 909 – 182 405 Celebrating the Games 05

Inspiring and Educating Youth 12 At December 31, 2011 Olympism in Action 18 Cost 128 715 54 194 56 743 57 810 31 457 – 328 919 Accumulated depreciation (36 801) (35 126) (30 291) (40 748) (3 548) – (146 514) Supporting the Olympic Movement 30 Net book amount 91 914 19 068 26 452 17 062 27 909 – 182 405 IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 Year ended December 31, 2012 48 IOC Membership Opening net book amount 91 914 19 068 26 452 17 062 27 909 – 182 405 Report of the Auditors and 54 Exchange differences 1 518 155 20 19 – 368 2 080 Additions / Disposals, net (135) 2 529 8 500 2 863 3 963 13 862 31 582 Combined Financial Statements Transfer – (4 863) – – – 4 863 – Depreciation charge (2 334) (3 050) (6 649) (9 174) (1 282) – (22 489) Closing net book amount 90 963 13 839 28 323 10 770 30 590 19 093 193 578

At December 31, 2012 Cost 130 834 50 663 58 542 58 001 35 420 19 093 352 553 Accumulated depreciation (39 871) (36 824) (30 219) (47 231) (4 830) – (158 975) Net book amount 90 963 13 839 28 323 10 770 30 590 19 093 193 578

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BUILDING A LEGACY THROUGH SPORT 9. IOC FINAL REPORT 2009–2012 Restricted financial assets

2012 2011 USD 000 USD 000 At 31 December Restricted financial assets at fair value through profit or loss (note 5A) 412 801 1 336 915 Television broadcasting rights instalments held in trust 128 476 530 340 Total restricted financial assets 541 277 1 867 255

At 31 December Message from the IOC President 03 Current – 1 598 560 Non-current 541 277 268 695 Celebrating the Games 05 Total restricted financial assets 541 277 1 867 255 Inspiring and Educating Youth 12 Olympism in Action 18 At 31 December 2012, TV broadcasting rights instalments held in trust are concentrated on a single counterpart rated Supporting the Olympic Movement 30 A- and for 2011 BBB+ by S&P. IOC Administration—Efficiency and Agility 40 Major Decisions of the IOC Sessions 46 IOC Membership 48 10. Accounts payable and accrued expenses Report of the Auditors and 54 Combined Financial Statements 2012 2011 USD 000 USD 000 Payable to Organising Committees of Olympic Games: London 19 280 101 Sochi 896 – Rio 51 – Innsbruck 158 – Rights income to be redistributed 8 952 1 058 Other payables 107 848 71 352 Accrued expenses 17 738 28 106 Total accounts payable and accrued expenses 154 923 100 617

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BUILDING A LEGACY THROUGH SPORT 11. IOC FINAL REPORT 2009–2012 Olympic Games related advances, deferred income and expenditure

Total Less Advances on TV rights by currency advances TV rights on allocated Advances, Deferred Deferred USD EUR JPY CAD GBP AUD TV rights to USOC net income expenditure USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 2012 Games of Olympiad 31/12/11 727 008 580 499 298 306 – – 52 978 1 658 791 (60 231) 1 598 560 110 436 (120 638) 31/12/12 – – – – – – – – – – – 2014 Olympic Winter Games Message from the IOC President 03 31/12/11 165 200 81 077 – – – – 246 277 (19 762) 226 515 32 418 (23 694) Celebrating the Games 05 31/12/12 175 100 167 026 57 411 10 729 2 275 – 412 541 (19 762) 392 779 46 528 (37 214) 2016 Games Inspiring and Educating Youth 12 of Olympiad 31/12/11 12 812 6 037 – – – – 18 849 – 18 849 – (13 285) Olympism in Action 18 31/12/12 12 812 22 294 73 447 429 14 948 – 123 930 – 123 930 8 222 (17 495) Supporting the Olympic Movement 30 2018 Olympic Winter Games IOC Administration—Efficiency and Agility 40 31/12/11 8 314 272 – – – – 8 586 – 8 586 – (2 715) 31/12/12 8 314 277 – – 40 – 8 631 – 8 631 – (3 641) Major Decisions of the IOC Sessions 46 Future Olympic Games and Youth IOC Membership 48 Olympic Games 31/12/11 13 902 843 – – – – 14 745 – 14 745 194 (4 744) Report of the Auditors and 54 31/12/12 13 902 857 – – 1 178 – 15 937 – 15 937 150 (4 796) Combined Financial Statements Total 31/12/11 927 236 668 728 298 306 – – 52 978 1 947 248 (79 993) 1 867 255 143 048 (165 076) 31/12/12 210 128 190 454 130 858 11 158 18 441 – 561 039 (19 762) 541 277 54 900 (63 146) Current portion 31/12/11 727 008 580 499 298 306 – – 52 978 1 658 791 (60 231) 1 598 560 110 480 (123 208) 31/12/12 – – – – – – – – – – – Non-current portion 31/12/11 200 228 88 229 – – – – 288 457 (19 762) 268 695 32 568 (41 868) 31/12/12 210 128 190 454 130 858 11 158 18 441 – 561 039 (19 762) 541 277 54 900 (63 146)

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BUILDING A LEGACY THROUGH SPORT 12. IOC FINAL REPORT 2009–2012 Earmarked funds

This account represents provisions based on tripartite obligation of financial assistance to organisations of the Olympic Movement. Transactions recorded during 2012 and 2011 are as follows:

2012 2011 USD 000 USD 000 Year ended 31 December Balance at 1 January 40 558 68 093 Message from the IOC President 03 Funds earmarked for allocation to organisations of the Olympic Movement 81 000 – Allocation to and funds expensed on behalf of the World Anti-Doping Agency (13 227) (13 216) Celebrating the Games 05 Allocation to the International Council of Arbitration for Sport (8 072) (6 572) IOC / IFs solidarity programme (2 718) (2 693) Inspiring and Educating Youth 12 Financial assistance to other organisations of the Olympic Movement (2 946) (5 054) Olympism in Action 18 Balance at 31 December 94 595 40 558 Supporting the Olympic Movement 30 At 31 December IOC Administration—Efficiency and Agility 40 Current 29 525 26 751 Non-current 65 070 13 807 Major Decisions of the IOC Sessions 46 Balance at 31 December 94 595 40 558 48 IOC Membership Report of the Auditors and 54 Combined Financial Statements

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BUILDING A LEGACY THROUGH SPORT 13. IOC FINAL REPORT 2009–2012 Staff costs

2012 2011 USD 000 USD 000 Salaries 61 995 64 211 Social security costs 8 279 9 085 Pension costs—defined benefit plan 6 700 4 463 Total staff costs (note 17) 76 974 77 759

Defined benefit pension plan The IOC’s pension scheme covers substantially all employees. Message from the IOC President 03 The scheme was valued by independent actuaries using the projected unit credit method as at 31 December 2012. Celebrating the Games 05 The amounts recognised in the statement of activities are Inspiring and Educating Youth 12 as follows:

Olympism in Action 18 2012 2011 USD 000 USD 000 Supporting the Olympic Movement 30 Current service cost 9 547 8 911 IOC Administration—Efficiency and Agility 40 Interest cost on projected benefit obligations 2 250 2 407 Expected return on plan assets (2 675) (3 310) Major Decisions of the IOC Sessions 46 Net amortisation 1 092 191 Employee contribution (3 513) (3 736) 48 IOC Membership Total net periodic pension cost, included in staff costs, as above 6 700 4 463 Report of the Auditors and 54 Combined Financial Statements The actual return on plan assets was a gain of USD 8.1 millions in 2012 and USD 1.3 million in 2011. The following tables set forth the status of the pension plan and the amounts recognised in the statement of financial position at 31 December 2012 and 2011:

2012 2011 USD 000 USD 000 Projected benefit obligations 106 064 89 553 Fair value of plan assets (93 348) (76 040) 12 716 13 513

Unrecognised net losses (21 824) (23 089) Prepaid pension costs recognised in the statement of financial position (note 7) (9 109) (9 576)

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

Movement in retirement benefit obligation (prepaid pension costs) recognised in the statement of financial position:

2012 2011 USD 000 USD 000 Year ended 31 December At beginning of year (9 576) (7 761) Total expense as above 6 700 4 463 Contribution paid (6 009) (6 420) Exchange difference (224) 142 Message from the IOC President 03 Balance at 31 December (9 109) (9 576)

Celebrating the Games 05 The assumptions used for the calculations are the following: Inspiring and Educating Youth 12 2012 2011 Olympism in Action 18 Discount rate used in determining present values 2.00% 2.50% 30 Annual rate of increase in future compensation levels 1.75% 1.75% Supporting the Olympic Movement Expected rate of future increases in pension benefits 0.00% 0.00% IOC Administration—Efficiency and Agility 40 Expected long-term rate of return on plan assets 3.50% 3.50% Mortality assumption LPP2010_G LPP2010_G Major Decisions of the IOC Sessions 46 IOC Membership 48 The weighted average asset allocation at 31 December 2012 is: Report of the Auditors and 54 Combined Financial Statements 2012 2011 Cash 50% 3% Equity 12% 25% Bonds 25% 51% Real estate 7% 14% Others 6% 7%

The expected future cash flows to be paid are:

USD 000 2013 4 707 2014 4 634 2015 4 630 2016 4 586 2017 4 563 2018-2022 22 574

Expected contributions to post-employment benefits plans for the year ending 31 December 2013 are USD 6.1 millions.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

The movement in the defined benefit obligation is:

2012 2011 USD 000 USD 000 Present value of obligation at 1 January 89 553 70 917 Service costs 9 547 8 911 Interest costs 2 250 2 407 Benefits paid (2 510) (4 129) Experience loss (gain) 4 728 12 874 Impact of exchange rate changes 2 496 (1 428) Message from the IOC President 03 Present value of obligation at 31 December 106 064 89 552 Celebrating the Games 05 Inspiring and Educating Youth 12 The movement in the fair value of plan assets is:

Olympism in Action 18 2012 2011 Supporting the Olympic Movement 30 USD 000 USD 000 Plan assets at fair value at 1 January 76 040 69 345 IOC Administration—Efficiency and Agility 40 Employees contribution 3 513 3 735 Employer contribution 6 009 6 420 Major Decisions of the IOC Sessions 46 Benefits paid (2 510) (4 129) Expected return on plan assets 2 675 3 310 IOC Membership 48 Experience gain (loss) 5 438 (1 984) Impact of exchange rate changes 2 183 (657) Report of the Auditors and 54 Combined Financial Statements Plan assets at fair value at 31 December 93 348 76 040

Selected pension data at 31 December of the last five years is as follows:

2012 2011 2010 2009 2008 USD 000 USD 000 USD 000 USD 000 USD 000 Present value of obligation 106 064 89 552 70 917 53 472 43 840 Plan assets at fair value (93 348) (76 040) (69 345) (53 252) (41 686) Deficit (surplus) 12 716 13 512 1 572 220 2 154 Experience adjustments on plan liabilities (4 728) (12 874) (1 550) (3 580) 4 117 Experience adjustments on plan assets 5 438 (1 984) (1 418) 3 508 (8 588)

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BUILDING A LEGACY THROUGH SPORT 14. IOC FINAL REPORT 2009–2012 Television broadcasting rights revenues

2012 2011 USD 000 USD 000 Olympic Games rights revenues by continent America 1 333 421 – Europe 615 367 – Africa 39 450 – Asia 484 899 – Oceania 95 761 – 2 568 898 –

Message from the IOC President 03 Youth Olympic Games broadcasting rights revenues 45 – Celebrating the Games 05 Total revenues from television broadcasting rights 2 568 943 – Inspiring and Educating Youth 12 Olympism in Action 18 Supporting the Olympic Movement 30 15. IOC Administration—Efficiency and Agility 40 Other rights Major Decisions of the IOC Sessions 46 2012 2011 IOC Membership 48 USD 000 USD 000 Report of the Auditors and 54 Royalties: OCOG marketing programme 130 076 – Combined Financial Statements Suppliers 1 539 1 808 Licensing 18 464 772 Other 5 819 3 766 Total other rights 155 898 6 346

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BUILDING A LEGACY THROUGH SPORT 16. IOC FINAL REPORT 2009–2012 Other revenues

2012 2011 USD 000 USD 000 Unilateral and Paralympic broadcasting revenues 114 348 – USOC contribution to the Summer and Winter Olympic Games 15 000 – Other revenues 5 015 9 967 Total other revenues, net 134 364 9 967

Message from the IOC President 03 17. Celebrating the Games 05 Central operating and administrative costs Inspiring and Educating Youth 12 2012 2011 Olympism in Action 18 USD 000 USD 000 Supporting the Olympic Movement 30 Salaries and social charges (note 13) 76 974 77 759 Press, publications and public relations 3 336 2 882 IOC Administration—Efficiency and Agility 40 External services 20 148 23 981 Session, commission and mission expenses 11 773 12 170 Major Decisions of the IOC Sessions 46 Transport, travel and residence expenses 5 854 6 274 Maintenance, supplies and other expenses 20 438 18 400 IOC Membership 48 Taxes 1 021 330 Depreciation and amortisation 9 656 8 909 Report of the Auditors and 54 Combined Financial Statements Total central operating and administrative costs 149 200 150 705

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BUILDING A LEGACY THROUGH SPORT 18. IOC FINAL REPORT 2009–2012 Olympic Games related expenditure

2012 2011 USD 000 USD 000 Expenditure in relation with the XXXth Games of the Olympiad Broadcasting costs 322 889 – Candidacy, Evaluation Commission and Coordination Commission costs 4 467 – Technology costs 35 182 – IOC operations 16 984 – Subsidies to NOCs including grants for travel, equipment and athletes 30 387 – Various IF costs 9 635 – Contribution to anti-doping program 178 – Knowledge transfer program (TOK) 1 452 – Message from the IOC President 03 Olympic Club 5 083 Celebrating the Games 05 Marketing Program 5 101 – Insurance premium for Games cancellation 13 462 Inspiring and Educating Youth 12 Other costs 8 791 – Olympism in Action 18 Total expenditures in relation with the XXXth Games of the Olympiad 453 611 – Supporting the Olympic Movement 30 IOC Administration—Efficiency and Agility 40 Broadcasting costs include equipment, production and telecommunication costs incurred by the Group Major Decisions of the IOC Sessions 46 to broadcast the live television and radio signals to IOC Membership 48 the Games of the Olympiad: 54 2012 2011 Report of the Auditors and USD 000 USD 000 Combined Financial Statements Broadcasting costs: Broadcast equipment and construction 140 203 – Depreciation of broadcasting equipment 6 318 – Salaries and social charges 62 506 – Games operations workforce 44 733 – Logistics 33 636 – Production 13 925 – Telecommunications 13 477 – Administrative and other expenses 8 091 – Total broadcasting costs 322 889 –

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BUILDING A LEGACY THROUGH SPORT 19. IOC FINAL REPORT 2009–2012 Youth Olympic Games related expenditure

2012 2011 USD 000 USD 000 Expenditure in relation with the Youth Olympic Games Broadcasting costs 1 696 – Candidacy, Evaluation Commission and Coordination Commission costs 1 759 – Technology costs 664 – IOC operations 16 059 – Other costs 113 – Total expenditures in relation with the Youth Olympic Games 20 291 –

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BUILDING A LEGACY THROUGH SPORT 20. IOC FINAL REPORT 2009–2012 Olympic Solidarity programme

2012 2011 USD 000 USD 000 Previous years’ programme (1 600) (2 010) Current year programme Continental Programmes 28 570 32 452 Olympic Solidarity World programmes: Olympic Scholarships for Athletes 7 078 10 644 Team Support Grants 1 253 3 035 Continental and Regional Games—Athletes Preparation 1 305 4 625 Youth Olympic Games—Athletes Preparation 1 174 2 294 Message from the IOC President 03 Technical Courses for Coaches 2 619 3 097 Olympic Scholarships for Coaches 2 051 1 892 Celebrating the Games 05 Development of National Sports Structure 1 177 1 377 NOC Administration Development 6 366 6 542 Inspiring and Educating Youth 12 National Training Courses for Sports Administrators 868 1 079 International Executive Training Courses in Sports Management 859 329 Olympism in Action 18 Sports Medicine 417 842 Sport and the Environment 302 341 Supporting the Olympic Movement 30 Women and Sport 444 373 40 Sport for All 447 566 IOC Administration—Efficiency and Agility International Olympic Academy 412 492 Major Decisions of the IOC Sessions 46 Culture and Education 797 777 NOC Legacy 348 636 IOC Membership 48 2012 Special assistance for NOCs 19 800 – Report of the Auditors and 54 47 717 38 941 Others: Combined Financial Statements NOC Exchange and Regional Forums 532 1 356 Chef de Mission Olympic Games 30 308 Chef de Mission Youth Olympic Games 4 91 566 1 755 Total current year programmes 76 853 73 148 Total Olympic Solidarity programmes 75 253 71 138

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BUILDING A LEGACY THROUGH SPORT 21. IOC FINAL REPORT 2009–2012 Revenue distribution

In application of a recommendation made during the XIII Olympic Congress in Copenhagen in 2009, the Executive Board decided to revise its revenue distribution models. Distributable revenues now include cash and value in kind revenues from television broadcasting rights, TOP rights and part of the royalties income. Revenues distributed to OCOGs and USOC and Olympic Games related expenditure are deducted from the revenues to calculate the equal shares attributable to the International Federations, the National Olympic Committees and the International Message from the IOC President 03 Olympic Committee. The amounts recognised in the statement of activities are Celebrating the Games 05 as follows:

Inspiring and Educating Youth 12 2012 2011 Olympism in Action 18 TOP TOP Revenue Programme Total Revenue Programme Total Supporting the Olympic Movement 30 Allocations to: USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 IOC Administration—Efficiency and Agility 40 Organising Committee of the XXX Games of the Olympiad 713 109 323 141 1 036 250 – 25 188 25 188 46 Major Decisions of the IOC Sessions Organising Committee of the IOC Membership 48 XXI Olympic Winter Games – 9 676 9 676 – 7 444 7 444 USOC 150 578 35 363 185 941 – 29 045 29 045 Report of the Auditors and 54 International Federations 508 581 – 508 581 50 100 – 50 100 Combined Financial Statements National Olympic Committees 376 729 52 417 429 146 50 107 34 837 84 944 IF’s and OS share of insurance premium for Games cancellation 2 755 – 2 755 – – – Other costs – 20 399 20 399 – (2 246) (2 246) 1 751 752 440 996 2 192 748 100 207 94 268 194 475 National Olympic Committees share of revenues reserved in designated funds (376 729) – (376 729) (50 107) – (50 107) Distribution of revenues to OCOG, USOC and IFs 1 375 023 440 996 1 816 019 50 100 94 268 144 368

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

For the XXX Games of the Olympiad, the global allocation of revenues to the Olympic Movement, which includes amounts paid or payable prior to 2012, was as follows:

USD 000 Net distributable revenues after deduction of contribution to LOCOG, USOC and Games related expenditure 1 558 858 Allocation to: International Federations 519 619 National Olympic Committees 519 619 Message from the IOC President 03 International Olympic Committee 519 619 Celebrating the Games 05 TOTAL 1 558 858 Inspiring and Educating Youth 12 Olympism in Action 18 22. 30 Supporting the Olympic Movement Financial income, net IOC Administration—Efficiency and Agility 40 46 Major Decisions of the IOC Sessions 2012 2011 IOC Membership 48 USD 000 USD 000 Interest income 44 662 41 962 Report of the Auditors and 54 Interest expense (3) (73) Combined Financial Statements Fair value gains (losses) on financial assets at fair value through profit or loss, net (note 5A) 36 894 (24 756) Gains (losses) on sale of financial assets at fair value through profit or loss, net (note 5A) 1 147 (3 065) Net foreign exchange gains (losses), net 47 692 2 360 Total financial income, net 130 392 16 428

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BUILDING A LEGACY THROUGH SPORT 23. IOC FINAL REPORT 2009–2012 Related party transactions

Identity of related parties These costs are included in session, commission and mission IOC members are natural persons. The total number of expenses in the statement of activities. In addition, the IOC IOC members may not exceed 115. There are currently covers the cost of the President’s residence expenses (room 101 members, 33 honorary members and 1 honour rent, living expenses, residence taxes, insurance) which member. From the Group’s perspective, the following amounted to USD 0.709 million in 2012 and USD 0.751 persons are regarded as related parties: the President, million in 2011 and which are included in the statement of the Executive Board members and the members of the activities under transport, travel and residence expenses. executive management. The executive management of the IOC are considered Transactions with related parties to be the President, the Director General and all Directors The members, the President and the Executive Board of of the IOC. As mentioned previously, the President is not Message from the IOC President 03 the IOC are not remunerated by the IOC. However, the remunerated. The salaries and short term benefits of the IOC covers all expenses related to the execution of their other members of the executive management amounted to Celebrating the Games 05 functions, in particular travel, hotel, meal expenses and a USD 7.933 millions in 2012 and USD 9.260 millions in 2011. 12 daily allowance for out-of-pocket expenses, as well as a Their post employment benefits amounted to USD 0.950 Inspiring and Educating Youth fixed amount for their personal administrative expenses. million for 2012 and USD 1.152 million for 2011. Olympism in Action 18 Supporting the Olympic Movement 30 24. 40 IOC Administration—Efficiency and Agility Strategy managing own funds Major Decisions of the IOC Sessions 46 48 IOC Membership Funds balances include designated funds which are set aside Report of the Auditors and 54 for the financing of the Olympic Solidarity Programme and television broadcasting rights reserved for future distribution. Combined Financial Statements Undesignated funds are kept for the purpose of financing the Olympic Foundation portfolio and the Group working capital.

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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

International Olympic Committee, Château de Vidy, Message from the IOC President 03 Lausanne, Switzerland Tel +41 (0)21 621 6111 Celebrating the Games 05 www.olympic.org ©This publication may not be reproduced, even in part, in any Inspiring and Educating Youth 12 form, without the written permission of the IOC. All reproduction, translation and adaptation rights are reserved for all countries. Olympism in Action 18 Designed and produced by Thomas and Trotman Design. Supporting the Olympic Movement 30 Photography by IOC and Getty Images®. Cover, page 17 40 IOC/Mine Kasapoglu; pages 2, 6 IOC/John Huet; pages 4, 19, IOC Administration—Efficiency and Agility 22, 25 IOC/Richard Juilliart; page 13 SYOGOC/Song Zhenping; Major Decisions of the IOC Sessions 46 pages 23, 32 IOC/Jason Evans; page 21 IOC/Chris Holloman; pages 26, 27 IOC/Randy Lincks; pages 28, 29 IOC/Kois Miah. IOC Membership 48 Printed by Pureprint Group, a CarbonNeutral® company, accredited with Environmental Management System, ISO 14001:2004 and Report of the Auditors and 54 registered with EMAS, the Eco-Management and Audit System. Combined Financial Statements ®All trademarks acknowledged. Cover: The paper is acid free and contains 20% recycled fibres. Inside pages: The paper fibre source is 100% post-consumer reclaimed material.