State of Publications

1. State of Publications 16 January 2014 SciTech 2014 National Harbor, MD

2. State of Publications • 2013 Year in Review • Journal and Book Statistics • Financial Report • 2014 Glimpse Ahead • FY14 Budget • Current Sales Activities

3. FY13 Financial Review for AIAA Journals • Key Indicators • Financials • Revenues • Expenses • Net Margin

4. Key Indicators: Institutional Subscribers • Institutional subscribers increased 4.7% from September 2012 * Data based on September 2013 Actuals

5. Key Indicators: Member Subscriptions

6. Key Indicators: Geographic Breakdown • In FY13, domestic subscribers accounted for 58% of total subscriptions, a continued decrease from previous years. * Data includes Member and Institutional Subscribers

7. Subscription Mix by Format Type – Revenue in $M • The trend toward “Online Only” products continued into FY13.

8. Subscription Mix by Format Type • The trend toward “Online Only” products continued into FY13.

9. Subscription Rates: Institutions • Since FY07, subscription rates have increased 5-6% each year. • FY14 Online Rates: • AIAAJ: $2,050 JA: $1,125 JGCD: $1,145 • JPP: $1,235 JSR: $1,065 JTHT: $900 • JAIS: $470 • Rates for Members have not changed since FY07. They are currently price at almost a 95% discount from list price (on average)

10. Revenue Trends by Source • Institutions continue to generate 82% of all Journals revenue in FY13. • Members generated 4% of revenue

11. Revenue Trends by Journal by $

12. Revenue Trends by Journal by %

13. Direct Expenses

14. Direct Operating Margin • Direct Operating Margin = Revenue less Direct Expenses • FY13 saw an 5% decrease in DOM from FY12 due to higher expenses

15. Putting It All Together…Net Margin • FY13 saw a 5% decrease in net margin over FY12

16. FY13 Financial Review for Books • Key Indicators • Financials • Revenues • Expenses • Margin

17. Book Sales • In FY13, Net Books Sold increased 6% over prior year but have declined 24% since FY10

18. Sales Mix • Since FY10, the average mix of net Books sold by series is: • Education: 58% • Progress: 14% • Library of Flight: 28%

19. New Books Published • In FY13, 14 new books were published: • Education: 8 • Progress: 1 • Library of Flight: 6

20. Reprints Published • Of the 7,305 units reprinted in FY13, the breakdown by series is: • Education: 68% • Progress: 8% • Library of Flight: 24%

21. Revenue Trends • Overall revenue increased by 7% in FY13 over prior year, with Progress experiencing a 6% increase in sales, Education increasing 6%, and LOF increasing 16%

22. Direct Expenses • Direct expenses include costs for printing, reprinting, freelance editors, outside production, shipping, promotion and royalties • Overall, books direct expenses declined 10% in FY13 from prior year

23. Direct Margin • Direct Operating Margin = Revenue less Direct Expenses (excludes labor and allocations) • Overall in FY13, Books generated a positive direct margin of $561K, which is 42% higher than in FY12 • The Publications and Service Center (PSC), eBooks, and Books Process are expense accounts supporting sales and maintenance activities for the Books

24. VP Publications FY14 Budget • Budgeted FY14 Revenue: $5,852,496 • Journals: $4,456,595 • Books: $1,338,901 • Licensed Content: $50,000 • Int’l Publications: $7,000 • Budgeted FY14 Expenses: $2,509,022 • Journals: $1,575,801 • Books: $933,221 • Budgeted Direct Operating Margin: $3,343,474

25. Current Sales Activities • In Summer of 2013, AIAA partnered with Publishers Communications Group (PCG) and Accucoms to be AIAA’s sales force for subscriptions, archive sales in Journals and Meeting Papers and ebooks • Native languages • Cultural nuances • Updates/understanding Government purchasing practices and policies • Awareness of AIAA as an organization • PCG represents AIAA in the North, Central and South America • Accucoms represents AIAA in Europe, India, and the Middle East/North Africa • AIAA continues to see sales growth in Asia from our non-exclusive agents, iGroup