ARM 26 June 2013 Andrew Dearden

1. ARM26 June 2013Andrew Dearden Treasurers Report to Annual Representative Meeting

2. Summary slide • Altogether a very satisfactory year operationally • Continued rise in Membership numbers, to over 152,000 • Another strong year for the BMJ Group • Pensions Industrial action added significant one-off cost • Further significant contribution to staff DB pension scheme • Balance Sheet remains strong

3. Membership 152,415

4. Financial Performance(Management Accounts) • Member • Services • One-offs (eg .IA) • Rental • & Events • BMJ • profits • Pension Recovery • Taxation Statutory Accounts

5. Financial Performance Highlights(Management Accounts) • Member Services had a strong year on the back of the continued growth in membership • MS operating costs are under good control • Industrial Action issues added significant one-off cost • Reported (and like-for-like) MS Deficit have improved • Income from Property and Events both increased, helped by the ‘Olympic effect’ • BMJ had another very strong year, strong rises in both Revenues and Profits • Total Operating Surplus shows good improvement • Contributed a further £29.5m into staff FS pension scheme • Total Group Deficit was £20.7m

6. Operating Surplus/(Deficit) by major business area £m Member Services Deficit per Member [NB: note that one-off gains and losses have been eliminated to show true like-for-like operational performance]

7. BMJPG Management accounts format

8. Balance Sheet summary and history(Statutory consolidated format)

9. Investments and Deposits £m Reduction in Deposits (£26m) Simple Trend Market Returns (£14m) Predicted Year-end total

10. Key Financial Risks • Staff DB Pension scheme • Membership decline • VAT recovery rate change • Let up in growth and/or profitability of BMJ

11. Summary • Sound financial performance, underpinned by continued membership growth • Venue Hire had a strong year, assisted by London Olympics • Continued good control of costs and staffing levels • The Pensions campaign added significant additional cost during the year • Another strong performance from BMJ, now contributing around £1m per month • A significant Funding deficit remains within staff FS Pension Scheme…. • ….and led to the crystallisation of £25m Deed of Charge obligation during 2012 • Investment reserves fell once again as a consequence

12. Membership Subscriptions • Motion by TREASURER • That the standard rate of subscription be increased by 2%with effect from 1 October 2013

13. Membership Subscriptions £ Current Proposed STANDARD RATE 434 443 CONCESSIONARY RATES: Member in 1st year after qualification 111 113 • Member in 2nd, 3rd or 4th year after qualification 218 222 • Member in 5th, 6th or 7th year after qualification 323 329 • Member resident in Channel Islands/Isle of Man 381 389 • Armed Forces within UK 381 389 • Overseas member resident outside the UK 270 275 • Dental surgeons 270 275 • Salary Link A 160 163 • Salary Link B 218 222 • Spouse/partner of member 218 222 • Permanently retired from medical practice 160 163 • Medical Student – Fresher NIL NIL • Medical Student – 1st, 2nd, 3rd year 35 36 • Medical Student – all others 41 42 • Medical Missionary/Voluntary Worker NIL NIL • Member for more than 50 years NIL NIL Increase +£9 +£2 • +£4 • +£6 • +£8 • +£8 • +£5 • +£5 • +£3 • +£4 • +£4 • +£3 • - • +£1 • +£1 • - • - • Note: terms and conditions apply

14. Membership Subscriptions • Motion by TREASURER • That the standard rate of subscription be increased by 2%with effect from 1 October 2013

16. Appendices

17. Statutory Accounts Appendix I Full Reconciliation next slide Return to Financial Summary

18. Appendix II Return to Financial Summary

19. Appendix III Additional staff pension contributions (Recovery Plan only) Paid to date: 2010 £ 27.0 m 2011 £ 4.5 m 2012 £ 29.5 m Total to date £ 61.0 m Paid in 2013 £ 4.5 m Scheduled for 2014 -15 £ 10.4 m Likely total to end 2015 £ 75.9 m Thereafter £ ?