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BUILDING A LEGACY THROUGH SPORT IOC FINAL REPORT 2009–2012

CLICK HERE TO PRINT DOCUMENT

Message from the IOC President

Celebrating the Games

Inspiring and Educating Youth

Olympism in Action

Supporting the Olympic Movement

IOC Administration—Efficiency and Agility

Major Decisions of the IOC Sessions

IOC Membership

Report of the Auditors and Combined Financial Statements

IOC FINAL REPORT 2009–2012

BUILDING A LEGACY THROUGH SPORT

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BUILDING A LEGACY THROUGH SPORT



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“OLYMPISM DID NOT REAPPEAR wITHIN THE CONTExT OF MODERN CIvILISATION IN ORDER TO PLAY A LOCAL OR TEMPORARY ROLE. THE MISSION ENTRUSTED TO US IS UNIvERSAL AND TIMELESS.”Pierre de Coubertin Founder of the modern Olympic Movement



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MESSAGE FROM THE IOC PRESIDENT

The success of the International Olympic Committee is not measured solely by what occurs today, but by the lasting legacy we create through sport. All of the IOC’s activities—from staging the Olympic Games and the Youth Olympic Games, to bringing sport to impoverished communities—are intended to deliver long-term positive benefits.

Over the past four years, the IOC and its partners in the Olympic Movement have advanced a positive legacy on multiple fronts, and this final report on the activities of the IOC between 2009 and 2012 focuses on this theme. It is structured around our four primary work streams: ensuring the regular celebration of the Games; inspiring and educating youth; promoting sport and Olympic values; and supporting the Olympic Movement.

The 2010 Olympic Winter Games in Vancouver and the 2012 Olympic Games in London succeeded in every aspect, with awe-inspiring competition and superb organisation that set new standards for legacy planning and sustainability. The enthusiasm and excitement in the host countries were shared with huge global audiences. Some Olympic venues in Vancouver have already been transformed for community use, and residents will benefit from new transportation links and other infrastructure improvements for years to come. In London, the Olympic Park—a former industrial wasteland —will become a model urban community, with residential housing, businesses, sporting venues and parkland.

The first Youth Olympic Games (YOG) in Singapore in 2010 and the first Winter Youth Olympic Games in Innsbruck in 2012 launched a new Olympic tradition that engages young people through sport, education and cultural programmes. Participants returned to their home communities as enthusiastic ambassadors for Olympic values.

In 2009, an Olympic Congress was convened in Copenhagen to take the pulse of the Olympic Movement and chart its future. Delegates from every aspect of the Movement—National Olympic Committees, International Federations, coaches, athletes and others—produced a blueprint for the future with 66 recommendations that have won wide acceptance among Olympic organisations.

The IOC’s continued commitment to placing sport as a tool for peace, international development and collaboration was recognised by the United Nations (UN) in 2009 when the IOC was granted UN Observer status. The designation allows the IOC to promote sport at a higher level by taking the floor at the UN General Assembly and participating in consultation meetings. Often working with UN partners, the IOC is engaged in projects related to humanitarian assistance, peace-building, education, gender equality, the environment and the fight against HIV/AIDS, hence contributing to the achievement of the UN Millennium Development Goals.

Although it is far too early to declare victory in the quest for gender equality in sport, the London Games reached significant milestones on the road to achieving that goal. For the first time, women competed in every sport on the Olympic Programme and represented more than 44 per cent of the competitors. Every National Olympic Committee has now sent women to the Games.

We can also report that the Olympic Movement’s financial foundation is stronger than ever, even after the worst global recession in more than 60 years. More than 90 per cent of the revenue that the IOC generated was passed to International Federations, National Olympic Committees and Organising Committees of the Olympic Games.



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The last four years also saw groundbreaking developments in the IOC’s use of information technology to promote Olympic values more effectively to more people, in more ways. The many changes include a redesigned website, a new digital archive of material dating back to the 1896 Games and global engagement on social media.

None of this progress would have been possible without the support and assistance of my fellow IOC members. Their guidance has been invaluable, not just in the most recent quadrennium, but over the past 12 years. I am also indebted to the National Olympic Committees, International Federations, Olympic Games Organising Committees, athletes, our Worldwide TOP Partners and Broadcast Partners and the hard-working IOC staff for their commitment to our great cause.

The release of this report comes 150 years after the birth of Pierre de Coubertin, the founder of the modern Olympic Movement. Although he could not have foreseen many of the changes that have occurred, I have no doubt that he would be pleased to know that the International Olympic Committee continues to build a legacy for future generations.

Jacques Rogge



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CELEBRATING THE GAMES

The Olympic Games are more than just a sporting event. They are a global stage for the world’s best athletes to bring Olympic values to life. The 2010 Olympic Winter Games in Vancouver and the Games of the XXX Olympiad in London were filled with inspirational athletic achievements.

To be truly successful however, the Games must do more than deliver stunning and inspiring competition. The Vancouver and London Games succeeded on multiple fronts and raised the bar for future Games by:

•Providingalastingandpositivelegacyforthehostcity and for sport

•PromotingtheOlympicvaluesofexcellence,friendship and respect to the widest possible audience

•Advancingthegoalsofnon-discriminationandsustainability



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THE OLYMPIC GAMES ARE A GLOBAL STAGE FOR THE wORLD’S BEST ATHLETES TO BRING OLYMPIC vALUES TO LIFE.



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CELEBRATING THE GAMES: UNPARALLELED ATHLETICISM

In Vancouver, following an Opening Ceremony dedicated to Nodar Kumaritashvili, who died tragically during training the same day, the world’s athletes confirmed that continuing with the celebrations was the best way possible to pay tribute to the Georgian athlete. They delivered sporting highlights such as the stunning performance by the Republic of Korea’s figure skater Yuna Kim, Canada’s thrilling overtime victory in the ice hockey final, US snowboarder Shaun White’s dominating run in the half-pipe, German alpine skier Maria Höfl-Riesch’s two gold medals, the impressive double gold and silver medal wins by Norway’s Emil Hegle Svendsen in biathlon competition, and skiing triumphs by Switzerland’s Didier Defago and USA’s Lindsey Vonn.

In London, Great Britain’s Nicola Adams won the first ever women’s boxing gold medal, US swimmer Michael Phelps became the most decorated Olympian of all time after earning his 22nd medal, Jamaican sprinter Usain Bolt made history by retaining his title in both the 100m and 200m events and British sailor Ben Ainslie won his fourth gold and became the most successful sailor in Olympic history. Kenya’s David Rudisha broke the world record en route to a gold medal in the 800m event, British athlete Jessica Ennis thrilled 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.

vANCOUvER 2010 IN NUMBERS

2,566 athletes, including more than 40 per cent women

82 National Olympic Committees (NOCs), including six for the first time

26 NOCs had medal winners

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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CELEBRATING THE GAMES: BUILDING A LEGACY

Through early legacy planning, the Vancouver and London Organising Committees achieved unparalleled successes in community development and sustainability. The organisers demonstrated a clear understanding of each host city’s needs and made choices that not only ensured a spectacular celebration in the near-term, but will also serve the community for the long-term. Future organising committees are factoring lessons learned from Vancouver and London into their planning, and have benefited from the IOC’s knowledge-transfer programmes.

The Vancouver Organising Committee stressed inclusiveness in its Games preparations by establishing partnerships with indigenous and social and economically disadvantaged groups, providing them with economic, social and cultural opportunities. As official Games partners, Vancouver’s Four Host First Nations were involved in decision-making processes and provided with an international platform for showcasing their traditions, raising awareness of Canada’s cultural diversity. The London Games transformed a former industrial wasteland into the Olympic Park, a task that required excavating more than 2.3 million cubic metres of contaminated soil.

The Vancouver and London Games also left sport legacies at both the elite and grassroots levels. The curling venue at the Vancouver Games is now a heavily used community centre that includes a hockey arena, a gymnasium, and indoor and outdoor swimming pools. The Richmond Olympic Oval, used for the speed skating events in Vancouver, is now a multi-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.

In London, where many of the venues were built with recycled industrial materials, the Aquatics Centre, the VeloPark and the Copper Box arena are all being converted for community use. The sports venues will anchor a model urban community that will include residential, retail and commercial structures, as well as schools and parkland.

The IOC’s Role in Legacy Planning The success of the two most recent Olympic Games reflects the efforts of the IOC and the Olympic Movement to prioritise legacy planning from the start of the bidding process. This foresight has strengthened the legacy of recent Games, particularly in the area of sustainability.

In 2011, the IOC hosted the first “Bidding for the Games” conference to help potential bid cities understand the process and benefits of bidding for the Olympic Games or Youth Olympic Games. The conference explained how insights gained during the self-evaluation process deliver benefits even if a bid is not ultimately successful.

Lessons learned from planning in Vancouver and London have been shared through the IOC’s Observer Programme —an integral component of the Olympic Games Knowledge Management Programme. Representatives from Sochi 2014, Rio 2016, PyeongChang 2018, and the three 2020 candidate cities, participated in the Observer Programme in London, visiting competition venues and non-competition sites, and sharing information in roundtable discussions. They also participated in the IOC’s thorough post-Games debriefing covering all aspects of the lessons learned in London.



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CELEBRATING THE GAMES: SHARING THE MAGIC

The Olympic Games are one of the few truly global events that give people from widely different backgrounds a chance to meet in solidarity. The Games personify the values of excellence, friendship and respect. Sharing the excitement and inspiration of the Games is one of the most effective ways to promote Olympic values to a worldwide audience.

Over the past four years, the IOC has significantly expanded the reach of the Games through new broadcast partnerships and the use of new media platforms.

The unprecedented growth of broadcast coverage of the Games, combined with the growth of digital coverage, provided global audiences with around-the-clock opportunities to see their favourite athletes in action.

Beginning with Vancouver, Olympic Broadcasting Services (OBS) took over the role of host broadcaster, producing more consistent quality coverage, more efficiently. The Vancouver Games saw the launch of the Olympic News Channel, providing 24/7 news coverage and athlete interviews during Games-time. In London, the channel provided interviews with nine out of 10 medal winners, giving some countries access to footage of national heroes that they could not otherwise have obtained.

The past four years also brought a dramatic increase in digital coverage, ushering in a new era of engagement, particularly among younger audiences. During the London Games, coverage on mobile and other digital platforms increased exponentially, almost matching television coverage. London was also the first time that the IOC live-streamed an Olympic Games via its YouTube channel in 64 territories in Asia and Sub-Saharan Africa where digital broadcast rights had not been assigned to a broadcast partner, giving viewers access to live coverage and the Olympic News Channel feed free of charge.

The IOC leveraged its social networks to share the Olympic experience with fans of all ages. Through social media platforms such as Facebook, Twitter and Sina Weibo, the IOC engaged with fans and followers in five languages—English, French, Russian, Portuguese and Mandarin. Plans to expand the conversation to Spanish, Arabic and Korean are underway.

The introduction of the Olympic Athletes’ Hub at the London Games allowed more than 3,000 athletes and nearly 300,000 Olympic fans to connect through social media. Olympians participated in online chats and provided an inside view of 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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vANCOUvER COvERAGE IN NUMBERS

Broadcast audience of 1.6 billion viewers

Over 31,900 hours of television coverage

235 broadcasters and television stations showed coverage of the Games around the world

LONDON COvERAGE IN NUMBERS

Broadcast audience of 3.7 billion viewers, the highest viewership in Games history

Over 100,000 hours of television coverage

Digital broadcast partners delivered over 1.9 billion video streams globally on more than 170 platforms



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CELEBRATING THE GAMES: EMPOwERING wOMEN

Although much work still needs to be done, the last four years have seen significant progress toward the goal of gender equality on the field of play. The Vancouver and London Games set new records for women’s participation, with women comprising more than 40 per cent of the athletes in Vancouver, and more than 44 per cent in London. Women competitors in London outnumbered men on 35 NOC delegations, from some of the smallest to some of the largest. For the first time, women competed in all sports on the Olympic Programme—the result of a 2009 vote by the IOC Executive Board to add women’s boxing. And the participation of women athletes from Saudi Arabia, Qatar and Brunei Darussalam means that all NOCs have now sent women to the Games.

INSPIRING AND EDUCATING YOUTH

From its inception, the Olympic Movement has focused on building a legacy by and through youth. Over the past quadrennium, the IOC significantly advanced that goal with the successful launch of the Youth Olympic Games and new initiatives to use sport as a tool for education.



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THE OLYMPIC MOvEMENT FOCUSES ON BUILDING A LEGACY BY AND THROUGH YOUTH.



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INSPIRING AND EDUCATING: THE YOUTH OLYMPIC GAMES

The first Youth Olympic Games (YOG) in Singapore in 2010 and the first Winter Youth Olympic Games in Innsbruck in 2012 exceeded expectations and demonstrated the relevance of an event that combines high-level sporting competition with an exciting Culture and Education Progamme (CEP).

The inaugural YOG in Singapore saw nearly 3,600 athletes, aged 15 to 18, from all 204 NOCs participate in the 12-day competition that featured 26 sports. Almost half of the participating NOCs medaled, including a first Olympic gold medal for Vietnam and a first Olympic medal for Jordan. More than 230,000 tickets were sold and global television coverage reached 160 territories, with an estimated audience of 247 million.

The first Winter Youth Olympic Games featured more than 1,000 athletes from 70 NOCs. The Games brought more than 110,000 spectators to Innsbruck—host of the 1964 and 1976 Olympic Winter Games—after an 18-day Youth Olympic Torch Relay by 2,012 torchbearers. Forty-two per cent of participating NOCs won medals, and Sara Takanashi of Japan became the first female ski jumper to win gold at an Olympic event.

Both the summer and winter editions featured innovative new formats and disciplines. The introduction of events for teams with members of both genders and from different NOCs helped break down social, cultural and language barriers. Exciting new formats like 3-on-3 basketball and head-to-head canoe and kayak sprinting were enormously popular in Singapore. In Innsbruck several new events were created for the Games, such as the ice hockey skills challenge, while other events—including ski halfpipe, snowboard slopestyle, and women’s ski jumping made their first appearance at an Olympic event after being added to the sports programme for the Sochi 2014 Olympic Winter Games.

YOG participants were inspired by YOG Ambassadors, including pole-vaulter Yelena Isinbaeva, skier Lindsey Vonn, figure skater Yuna Kim, skier Benjamin Raich, ice hockey player Sidney Crosby, freestyle skier Kevin Rolland, sprinter Usain Bolt and swimmer Michael Phelps. The role of a YOG Ambassador is to inspire and mentor the athletes competing at the Games while encouraging young people from all over the world to become more active in sport.



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One measure of the YOG’s success was its digital media impact. At one point, the IOC’s Singapore 2010 YOG channel on YouTube was the third most watched YouTube channel worldwide. The summer YOG generated a total of 10.7 million views from the YOG website and YouTube channel, and one million impressions across Facebook and Twitter.

The Youth Olympic Games Legacy The legacy of the YOG is carried forward by past participants, who serve as ambassadors for sport and Olympic values in their home communities. Some have offered their perspectives at IOC conferences. The YOG are also a proving ground for aspiring Olympians, and many have gone on to compete in the Olympic Games. More than 190 athletes who competed in the inaugural YOG made the step up to the Olympic stage in London in 2012, winning 25 medals between them.



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INSPIRING AND EDUCATING: SPORT AS A TOOL FOR EDUCATION

One of the unique aspects of the YOG that set it apart from any other sporting event was the innovative Culture and Education Programme (CEP). The CEP brought Olympic values to life by giving YOG participants a chance to learn from each other and from adult mentors. The CEP featured interactive booths, exhibitions and activities on Olympism, social responsibility, fair play, skills development, healthy lifestyles, and expression and well-being. Programmes ranged from panel discussions on how to create a balanced diet to projects that allowed YOG participants to share experiences through dance, music and the arts.

Through the CEP, YOG participants learned about global topics, the importance of contributing to the environment and society, and celebrating the Olympic Movement. The interactive format gave young athletes the opportunity to build friendships with fellow athletes from around the 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.

International organisations played a key role in implementing CEP activities by supporting a broad range of educational programmes. YOG partners included UN agencies; the World Anti-Doping Agency; the International Red Cross and Red Crescent Societies; the International Fairplay Committee and other non-governmental organisations. CEP materials, such as a YOG Education Pack, were widely shared outside the events in Singapore and Innsbruck.

Additionally, the YOG featured Athlete Role Models (ARMs) nominated by the International Federations and members of the IOC Athletes’ Commission, who were present at the Games to mentor young athletes and help them understand how to live by the Olympic values. The ARMs participated in the CEP alongside YOG athletes and took part in “Meet the Role Models” forums to share personal accounts of their experiences and the challenges they overcame.



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The IOC is using sport as a tool for education in many other ways. The Olympic Values Education Programme (OVEP) equips thousands of teachers around the globe to teach Olympic values to young people between the ages of eight and 18. The OVEP teaching manual provides easy-to-implement lesson plans that can be adapted to different age groups. Today, more than 110 countries have been involved in the programme, including Zambia, where OVEP has been implemented to educate over 10,000 boys and girls since the 2010 opening of the Olympic Youth Development Centre, and has trained over 600 OVEP Young Leaders to date.

A partnership with UNESCO encourages more collaboration between sport organisations and educators throughout the world. The 7th IOC World Conference on Sport, Education 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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OLYMPISM IN ACTION

The Olympic Charter defines Olympism as a philosophy of life that blends sport with culture and education, and calls on the IOC to cooperate with public and private organisations to “place sport at the service of humanity.”

The IOC puts Olympism into action in several ways:

•SportforAll

•Developmentthroughsport

•Peacethroughsport

•WomenandSport

•Educationthroughsport

•Sportandenvironment

•Cultureandsport



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OLYMPISM IS A PHILOSOPHY OF LIFE THAT BLENDS SPORT wITH CULTURE AND EDUCATION.



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OLYMPISM IN ACTION: SPORT FOR ALL

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OLYMPISM IN ACTION: SPORT FOR ALL

The IOC is a leading advocate for using sport and physical activity to promote health, fi tness, and physical and mental well-being. Over the last four years, the IOC has joined forces with international organisations to bring physical activity to schools and youth communities in developing countries and to provide equal access to sport and the values it fosters. It has also encouraged governments and educational institutions to make sport more widely available.

In 2010, the IOC and the World Health Organisation agreed to work together globally to reduce the risk of cardiovascular disease, diabetes and other non-communicable diseases that rank among the top risk factors for mortality.

The IOC also participated in a special UN General Assembly meeting on the Prevention and Control of Non-Communicable 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.

The commission also provides fi nancial help and other assistance to support sporting events on all fi ve continents every year. In 2011, the commission launched a new grants programme at the 14th World Conference on Sport for All in Beijing. Grants were awarded to a project in Bosnia and Herzegovina that uses scuba diving and other water activities to help rehabilitate mine victims and amputees; a project in Ethiopia that uses sport to help street children reintegrate to school and society; and a project in China that targeted 100 cities and 1,000 villages with participatory demonstrations of qigong, a traditional mind-and-body exercise.



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OLYMPIC DAY

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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OLYMPISM IN ACTION: DEvELOPMENT THROUGH SPORT

IOC initiatives are bringing sport to impoverished communities, aiming to both increase access to physical activity worldwide and improve social and human well-being at large.

In 2010, the IOC inaugurated the first Olympic Youth Development Centre in Zambia, a flagship project of the IOC’s Sports for Hope programme. With support from the Zambian government, the National Olympic Committee of Zambia and International Federations (IFs), the centre offers facilities for all levels of athletes in more than a dozen sports, as well as education programmes, health services and activities for the entire community. Work on a second Youth Development Centre in Haiti began in 2012. It is scheduled to open in 2014.

In 2009, the IOC launched the Sports Kits Programme to 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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OLYMPISM IN ACTION: PEACE THROUGH SPORT

The IOC’s efforts in promoting peace draw on the traditions of the ancient Olympic Games, when warring factions declared a truce to let athletes and spectators travel safely to and from the Games. That tradition lives on in the modern Olympic Truce, which also makes an enduring statement about the ability of sport to harmoniously bring together communities in conflict and create opportunities for dialogue, and even reconciliation. At the request of the IOC, the UN General Assembly has approved the Olympic Truce for every edition of the Games since 1993. UN member states are encouraged to observe peace during the Games by signing the Truce and are invited to continue to promote peace after the Olympic flame has been extinguished. In advance of the London Games, the Olympic Truce received unanimous support from all 193 UN member states.

In 2011, the IOC launched a Youth Sport Centre in Gatumba, Burundi, jointly funded by the IOC, the United Nations Development Programme (UNDP), the UN Office on Sport for Development and Peace, and the government of Burundi. The multi-sport complex is located in the border region with the Democratic Republic of Congo, an area known for tension and violence and lacking in recreational infrastructure. The facility, managed by the Burundi NOC and the local municipality, provides sporting and education activities for more than 10,000 young people.

In 2009, the IOC launched a new initiative for peace by hosting the first International Forum on Sport for Peace and Development. The biennial forum aims to assess the successes and challenges of using sport as a tool for human development and promotion of peace. The UN joined the IOC as a forum co-host in 2011.

In 2010, the IOC convened joint meetings between the Palestinian and Israeli NOCs to address the free movement of Palestinian and Israeli athletes, coaches, officials and sports materials, as well as foreign visiting athletes and delegations.



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OLYMPISM IN ACTION: wOMEN AND SPORT

Guided by the Olympic Charter’s declaration that sport is a human right, the IOC is a strong advocate for inclusion in sport. Olympic Day and projects supported by the Sport for All Commission are based on the belief that sport should be available to people of all ages and abilities, without discrimination.

The IOC’s dedication to promoting gender equality extends beyond the field of play (see page 11). The IOC collaborated with Loughborough University in the UK on a 2010 report on “Gender Equality and Leadership in Olympic Bodies”, which highlighted the need to improve the recruitment and development of women in leadership positions. The IOC is working to ensure that women are prepared and considered for decision-making positions across member organisations of the Olympic Movement. 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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OLYMPISM IN ACTION: EDUCATION THROUGH SPORT

Sport is a powerful tool for education. The IOC uses sport to encourage school attendance, and to deliver educational messages that promote healthy lifestyles and Olympic values. In addition to the Culture and Education Programme at the Youth Olympic Games and the Olympic Values Education Programme, the IOC partners with other organisations to promote education through sport in impoverished areas throughout the world.

In 2010, the IOC launched a three-year initiative with the UN High Commissioner for Refugees (UNHCR) to bring the promise of sport and the power of education to a refugee settlement in Namibia, where 40 per cent of the population is between 10 and 30 years old. The IOC’s goal through this partnership with UNHCR is to reach youth through sport and engage them in productive activities in order to lessen the rate of teenage pregnancy, HIV/AIDS, and drug abuse. Elements of the programme also focus on empowering young women through sport.

The IOC partners with the World Food Programme to support school feeding programmes and to use sport to help motivate children to attend school. In addition to direct financial support for food supplies, the IOC and its partners provide sport and recreation equipment to encourage physical activity and the integration of sport into school activities.

The IOC also uses sport to educate young people about the risk of HIV/AIDS and how to prevent it. The IOC has joined the global fight against HIV/AIDS by hosting information workshops with NOCs; supporting national projects of NOCs and partner organisations such as the Red Cross movement and local NGOs; and developing with UNAIDS a toolkit in seven languages to foster HIV/AIDS awareness and prevention among the sports community. The IOC also works with partner organisations to raise HIV/AIDS awareness among Olympic athletes by distributing brochures and other informational material in the Olympic Village.



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OLYMPISM IN ACTION: SPORT AND ENvIRONMENT

Since the Olympic Charter was amended in 1994 to include concern for the environment as the third pillar of Olympism—alongside sport and education and culture—the Movement has made significant progress in minimising the environmental footprint of the Games and in using the Olympic platform to educate audiences about environmental responsibility.

To promote environmental responsibility throughout the world of sport, the IOC organises the biennial World Conference on Sport and the Environment in collaboration with the United Nations Environmental Programme (UNEP) and local partners. The Vancouver Organising Committee of the Olympic Games assisted with the 2009 conference in Vancouver; the Qatar Olympic Committee partnered for the 2011 conference in Doha. Both events offered a forum to raise awareness and share best practices.

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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The Vancouver Games were a turning point for sport and sustainability that provided a blueprint for staging other large sporting events in a socially responsible manner. The Vancouver Organising Committee created a sustainability governance model and an integrated sustainability management and reporting system (SMRS) to foster organisation-wide, cross-functional responsibility and public accountability for performance on sustainability commitments. The Vancouver Olympic Village was designed to serve as a model for sustainable urban planning.

The London Games built on the success of Vancouver by making environmental sustainability a core element of Games planning. In addition to revitalising an industrial wasteland, the London Organising Committee is credited with contributing to the development of ISO 20121—the international standard 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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OLYMPISM IN ACTION: CULTURE AND SPORT

Promoting cultural exchange is integral to the IOC’s goal of bridging cultures. The Olympic Games provide a global showcase for the art, music and culture of the host nation, and organisers are required to develop a cultural programme as part of the Games planning process. The Vancouver and London Games both featured Cultural Olympiads that offered a wide array of music, theatre, art and other cultural activities.

The Vancouver cultural programme featured nearly 200 events over 60 days. 2010 Legacies Now, an organisation created for the Vancouver Games, sponsored more than 400 arts and cultural projects throughout Canada and established a programme that allowed more than 16,000 students to attend summer camps that focused on arts, sport and recreation.

The cultural programme for the London Games featured 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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OLYMPIC MUSEUM RENOvATION

Two decades after it opened, the Olympic Museum is undergoing a metamorphosis that will bring it into the digital age, expand access to its treasures and share them worldwide. The initiative closed the Olympic Museum in 2011 for major infrastructure, layout and design renovations. A temporary structure was established nearby until the Olympic Museum’s scheduled reopening in 2013.

The Olympic Museum in Lausanne is the centrepiece 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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As the supreme authority of the Olympic Movement, the IOC has an obligation to serve the athletes, to protect the integrity of sport and to ensure that the Movement is looking to the future. The past four years have seen significant new initiatives on all fronts.

SUPPORTING THE OLYMPIC MOvEMENT



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THE IOC HAS AN OBLIGATION TO SERvE THE ATHLETES.



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SUPPORTING THE OLYMPIC MOvEMENT: PROTECTING AND SUPPORTING ATHLETES

Athletes are at the core of the Olympic Movement. The IOC serves athletes by protecting their health and safety, helping them with issues specific to elite sport and assisting their transition to life after they retire from competition.

Athletes’ Health and Safety The IOC Medical Commission has helped raise standards in sports medicine and related fields by hosting international medical conferences, supporting the work of NOCs and editing a medical journal. The commission examines health issues critical to the Olympic Games, including concussions, age determination and injury in young athletes, as well as topics like biomechanics and nutrition. The commission updated the Olympic Movement Medical Code, which provided guidelines for medical care and medical ethics, in advance of the 2010 Vancouver Games.

The IOC is increasingly placing emphasis on the prevention of injuries and illnesses, often working closely with IFs and NOCs. A first IOC World Conference on the Prevention of Injury and Illness in Sport was held in 2011 with a second edition scheduled for 2014. The IOC also requires NOC physicians to report all athlete injuries and illnesses that 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.

Entourage Commission Many top Olympic athletes rely on an extensive support structure that includes coaches, trainers, agents, family, friends and others in similar roles. Following a recommendation by the Olympic Congress in Copenhagen in 2009, the IOC established the Entourage Commission in 2010. The commission works to improve the quality and level of services provided by the athletes’ entourage, and to encourage high ethical standards by entourage members. The first Guidelines for the Conduct of the Athletes’ Entourage were issued in 2011. The commission also provides advice to athletes and their parents, with specific suggestions for parents of beginner, intermediate and advanced athletes.

Helping Athletes Transition Out of Sport Creating a lifestyle balance and transitioning to a career after sport can be difficult for some Olympic athletes. The IOC’s Athlete Career Programme (ACP) provides guidance and tools to help athletes manage training and competition and focuses on education, life skills and employment. Since launching, the ACP has helped more than 10,000 athletes in over 100 countries.



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OLYMPIC SOLIDARITY

The Olympic Games provide a global stage for the best athletes from every region on earth, but some aspiring Olympians have insufficient resources to develop their full potential. The IOC’s Olympic Solidarity bridges the gap by working with NOCs, especially those with the greatest need, to help athletes get access to proper training facilities, coaching and other support. In addition to assisting athletes through Olympic Scholarships, Olympic Solidarity provides team grants and finances technical 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 Games expenses. Funding for Olympic Solidarity, which also extends to the Youth Olympic Games, comes from the NOCs’ share of the Olympic broadcast rights for the Games and was budgeted at USD 311 million for 2009 to 2012, an increase of over 27 per cent compared to that of the previous four-year period.

The 2010 Vancouver Games featured the first full Olympic Winter Games Scholarship programme. Scholarships were awarded 16 months before the Games to give athletes adequate time for training. Twelve NOCs were composed entirely of Solidarity scholarship holders.

IN NUMBERS

vANCOUvER 2010

NOCs that benefited: 60

Scholarships allocated: 325

Solidarity Scholarship holders at the Games: 227

Sports covered: 5

Medals won: 13

LONDON 2012

NOCs that benefited: 177

Scholarships allocated: 1,264

Solidarity Scholarship holders at the Games: 657

Sports covered: 20

Medals won: 76



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SUPPORTING THE OLYMPIC MOvEMENT: PROTECTING THE INTEGRITY OF SPORT

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SUPPORTING THE OLYMPIC MOvEMENT: PROTECTING THE INTEGRITY OF SPORT

Over the past quadrennium, the IOC launched important new initiatives to expand the fi ght against doping and confront the threat of corruption.

The Fight Against DopingPreventing and detecting doping in sport remained a top priority. The London Games featured the most comprehensive testing programme of any Olympic Games in history, with more than 5,000 tests—both urine and blood—during the Games. Tests were conducted on the top fi ve fi nishers in every event, plus two competitors selected at random. The IOC worked closely with the World Anti-Doping Agency (WADA) to test athletes and provide clear testing guidelines. The WADA-accredited laboratory used state-of-the-art technologies and operated 24 hours a day, seven days a week with a team of more than 150 anti-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.

Preventing Irregular and Illegal BettingIn 2011, the IOC opened a new era of collaboration against match-fi xing in sport by convening a high-level Working Group on Irregular and Illegal Betting in Sports comprised of representatives from sport, law enforcement, government, the UN, the European Union and betting operators. The panel has focused on three main areas—education, monitoring, and legislation—and has developed specifi c recommendations for action. The IOC also stepped up its own efforts at the Olympic Games in Beijing, Vancouver and London to prevent match-fi xing.



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PROTECTING THE AUTONOMY OF SPORT

The IOC works with governmental organisations on many levels to put sport to work for society and to protect the integrity of sport. Government authorities can help make sport more accessible in schools and communities, and have the power to prohibit discrimination in sport. They also have a vital role to play in the fight against doping, illegal betting and other corrupting influences.

But sport should never be used as a political tool. As the leading body of the Olympic Movement, the IOC is the chief defender of the autonomy of sport. It is at the forefront of efforts to educate governmental bodies on the unique nature of sport, while acknowledging the need for sport organisations to adhere to principles of good governance. Those efforts include an ongoing dialogue with the European Commission on issues related to autonomy and cooperation.

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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SUPPORTING THE OLYMPIC MOvEMENT: LOOKING TO THE FUTURE

The Olympic Movement has thrived for more than a century by holding fast to enduring values while adapting to change. The IOC has to constantly look to the future to ensure that the Olympic Games and the Olympic Movement remain relevant and financially secure.

The Olympic Congress An Olympic Congress has been held just 13 times since the first Congress met in Paris in 1894 to create the modern Olympic Games. In 2009, the XIII Olympic Congress in Copenhagen brought this special gathering into the digital age as delegates focused on the Movement’s future.

The Congress theme, “The Olympic Movement in society”, captured the scope of the discussions, which explored issues related to athletes; the Olympic Games; the structure of the Movement; Olympism and youth; and the digital revolution. The Congress set new standards for inclusiveness by inviting online suggestions from the public and Olympic Family members in advance of the three-day gathering. In addition, all of the Congress sessions were broadcast live via the internet.

The Congress produced 66 specific recommendations that provided a framework for action by the IOC, IFs and NOCs. The results can be seen in initiatives to engage young people, embrace digital communication and build on the Youth Olympic Games as a model for combining sport, education and culture.

The most significant legacy of the Congress may result from recommendations that led to the development of a new IOC 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.

A Solid Financial Foundation A solid financial foundation is paramount to the long-term success of the Olympic Movement. Despite the worst global recession in more than 60 years in the middle of the quadrennium, the IOC raised more revenue than ever; it also shared more than ever with NOCs, IFs and Organising Committees; and continued to build its reserve fund, which ensures the financial longevity of the Olympic Games and protects against catastrophic events. Long-term agreements with Olympic Broadcast Partners and Worldwide Olympic Partners provide financial stability and help share Olympic values with a wider audience.

The IOC’s revenues during the 2009 to 2012 quadrennium increased by more than 30 per cent, to USD 5.22 billion. The IOC distributes more than 90 per cent of its revenue to member organisations of the Olympic Movement. The main recipients include:

•The Organising Committees for the Olympic Games and the Youth Olympic Games (OCOGs and YOGOCs)—The IOC contribution supports the staging of the Summer and Winter editions of the Games. Organising committees raise additional revenue through domestic marketing activities.

•National Olympic Committees (NOCs)—The IOC distributes TOP Programme revenue to more than 200 NOCs to train and develop their Olympic hopefuls, athletes and teams. The IOC also supports NOCs through Olympic Solidarity, an autonomous commission that distributes revenue to NOCs.



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•International Federations (IFs)—The IOC provides revenue to the International Sports Federations. These funds, which are used to support the development of sport worldwide, are distributed after the completion of the Games in which the federation is active.

•Recognised organisations and Federations—The IOC contributes Olympic revenue to recognised organisations, including the World Anti-Doping Agency, the Court of Arbitration for Sport, Fairplay International, and the International Olympic Academy.

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 at USD 901 million.

Olympic Revenue Sources:

Broadcasting (47%)

TOP Programme (16%)

OCOG Domestic Sponsorship (29%)

Ticketing (5%)

Licensing (3%)

Olympic Revenue Distribution:

NOCs/IFs/OCOGs (>90%)

IOC (<10%)



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SUPPORTING THE OLYMPIC MOvEMENT: LOOKING TO THE FUTURE

Olympic Broadcast Partners The Olympic Movement could not achieve its goals without strong financial support. Olympic Broadcast Partners remain the largest source of revenue for the Olympic Movement and also play an essential role in sharing the Games experience. The London Games reached the largest audience in Olympic history—3.7 billion people globally. Broadcast rights holders

delivered more and better coverage, with a significant increase in accompanying digital and mobile offerings. Interest in future Games is strong. The IOC has completed agreements extending as far as the 2024 Games, including a USD 4.3 billion agreement with longstanding Olympic Broadcast Partner in the US, NBC, until 2020.



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The Olympic Partner Programme The Worldwide Partners in The Olympic Partner (TOP) Programme play an essential role in staging the Olympic Games, promoting Olympic values and sustaining IOC development efforts around the world. The seventh edition of the TOP Programme (TOP VII), covering the 2009-2012 quadrennium, was the most successful ever, generating nearly USD 958 million for the Olympic Movement, including all 204 NOCs, the OCOGs and the IOC. In addition to financial support, the 11 Worldwide Partners provided products, technology and expertise to ensure the success of the Vancouver and London Games. Creative advertising and other promotional efforts helped share the excitement of the Games and promoted and communicated the Olympic values to a broad international audience. In a reflection of the Olympic brand’s continuing appeal, agreements for TOP VIII 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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IOC ADMINISTRATION— EFFICIENCY AND AGILITY

The IOC Administration implements the policies of the IOC Session, Executive Board and the President, and supports the work of IOC Commissions. Over the past four years, the administration has sought to maximise the performance of the organisation with improvement in three key areas:

•Efficiencyandaccountability

•Collaborationandagility

•ProtectingOlympicheritage



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THE IOC ADMINISTRATION HAS SOUGHT TO MAxIMISE THE PERFORMANCE OF THE ORGANISATION.



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EFFICIENCY AND ACCOUNTABILITY

The launch of the Youth Olympic Games, new and expanded partnerships with UN agencies, and the increasing complexity of the Olympic Games have significantly increased demands on the IOC, yet there has been no significant increase in staff. The IOC had 355 full-time employees at the end of 2012, just 12 more than four years earlier. The staff reflects the diversity within the Olympic Movement, with more than 45 nationalities represented.

A shared-services approach that centralised support processes across a number of areas increased efficiency and encouraged collaboration among departments. All departments continued to focus on improving project management skills, with training to help employees deliver complex inter-departmental projects. Building on the work of the 2009 Olympic Congress and a 2010 staff survey,

the IOC administration launched the “Shape” initiative to review its scope of services and to ensure that the staff is prepared to adapt to evolving demands, while ensuring efficiency and effectiveness.

The administration’s accountability to the IOC leadership and the Olympic Movement is buttressed by an internal auditor who reports directly to an Audit Committee comprised of three IOC members. The auditor is empowered to investigate any suspected deviation from IOC financial or operational policies. The auditor also ensures that department heads conduct an annual risk assessment to identify potential problems before they occur. The IOC administration is also subject to the IOC ethical rules and the supervision of the IOC Ethics Commission.



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COLLABORATION AND AGILITY

The administration has embraced new technology and launched a host of new initiatives to enhance collaboration within the IOC, and between the IOC and constituents within the Olympic Movement. The past four years brought dramatic changes in the way the IOC communicates with internal and external audiences.

The successful integration all of the IOC’s internet assets —the public website, the extranet for IOC constituents and stakeholders, and the intranet for IOC employees—as part of the 3Net project significantly improved communication and collaboration. Internal stakeholders benefitted from new extranets for Rule 51 compliance, knowledge management and Olympic Results and Information Services (ORIS).

An updated and enhanced external website (www.olympic.org) debuted in 2009. And the IOC also now engages with over 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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PROTECTING OLYMPIC HERITAGE

The Olympic Rings are the most widely recognised symbol in the world—correctly identified by 95 per cent of the respondents in a recent global survey and closely linked to the values they represent. The IOC’s challenge is to protect the integrity and special status of the Olympic symbol while allowing engagement and inclusion. To meet this challenge, the administration issued clear guidelines for consistent use of the Olympic symbol and worked with stakeholders to ensure compliance.

More direct engagement with TOP Partners and NOCs in support of their Olympic-themed marketing activations reduced the risk of inappropriate use of Olympic symbols. In 2010, the first of an ongoing series of workshops was held to help NOCs make sure their sponsors’ brand activation supports the goals of the Olympic Movement as well as the sponsors’ commercial interests.

Protecting the integrity of the Olympic symbol is closely tied to the IOC’s efforts to safeguard the Olympic Movement’s heritage. The Patrimonial Asset Management (PAM) Programme, begun in 2007, achieved significant progress 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.

This Olympic treasure trove went online in 2012 with the launch of the Olympic Multimedia Library on the IOC Extranet. The digital archive includes more than 250,000 photographs, 8,000 hours of audiovisual recordings, 1,000 historical documents and more than 10,000 objects from the Olympic Museum’s collection. By the end of 2012, the IOC was on the verge of finalising the acquisition of film footage from every Olympic Games. Through the Olympic Multimedia Library, Olympic Movement stakeholders can relive moments from the first Olympic Games in 1896 to the most recent editions and explore events behind the scenes.

The administration is also looking to the future to ensure the long-term relevance of the Olympic Games in an ever-changing world. A new 360° Games Management strategy is expanding the Games experience beyond the competition. For instance, questionnaires for candidate cities now put more focus on cultural elements and other activities that can help provide a lasting Games legacy. A cross-departmental working group was established to examine all aspects of the Games experience, with the goal of extending the power of the Olympic symbol to periods between Games.



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MAJOR DECISIONS OF THE IOC SESSIONS

2009—121st IOC Session, Copenhagen Major Decisions:

•JacquesRoggewasre-electedasIOCPresident for a term of four years

•RiodeJaneiro,Brazil,waselectedashostcity for the Games of the XXXI Olympiad in 2016

•Thesportsofgolfandrugbysevenswerevoted for inclusion in the Olympic Programme for 2016

•MarioPescanteandSerMiangNgwereelectedas Vice-Presidents of the IOC Executive Board

•CraigReedieandJohnD.Coateswereelected as members of the IOC Executive Board

•RichardPeterkin,HRHCrownPrinceFrederikof Denmark, Habu Gumel, Habib Macki, Lydia Nsekera and Göran Petersson were elected as IOC members

2010—122nd IOC Session, Vancouver Major Decisions:

•Nanjing,People’sRepublicofChina,waselectedtohostthe 2nd Youth Olympic Games in 2014

•ThomasBachwasre-electedasaVice-PresidentoftheIOC Executive Board and Sam Ramsamy was re-elected as an Executive Board member

•HRHPrinceFeisalAlHussein,BarryMaister,PatMcQuaid,Marisol Casado, Dagmawit Girmay Berhane and Yang Yang were elected as IOC members

•AngelaRuggieroandAdamPengilly,electedbytheirpeersto the IOC Athletes’ Commission during the Games in Vancouver, were voted as IOC members



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2011—123rd IOC Session, Durban Major Decisions:

•PyeongChang,RepublicofKorea,waselectedtohost the Olympic Winter Games in 2018

•GunillaLindbergwaselectedtotheIOCExecutiveBoard

•SirPhillipCravenwasre-electedasIOCmember

•JoséPerurena,GerardoWertheinandBarbaraKendallwere elected as IOC members

•Lillehammer,Norway,waselectedtohostthe2nd Winter Youth Olympic Games in 2016 (postal vote in December 2011)

2012—124th IOC Session, London Major Decisions:

•NawalElMoutawakelandCraigReediewereelected as Vice-Presidents of the IOC Executive Board

•Ching-KuoWu,RenéFasel,PatrickJosephHickey, Claudia Bokel, Juan Antonio Samaranch Jr, Sergey Bubka and Willi Kaltschmitt Luján were elected as IOC Executive Board members

•AishaGaradAli,Pierre-OlivierBeckers,Tsunekazu Takeda, Frank Fredericks and Lingwei Li were elected as IOC members



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IOC MEMBERSLIST 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 10. HSH the Sovereign Prince ALBERT II MON 1985 1988/92/94/98/2002 11. Mr Lambis V. NIKOLAOU GRE 1986 12. Ms Anita L. DEFRANTZ USA 1986 1976** 13. HRH the Princess ROYAL GBR 1988 1976 14. Mr Ching-Kuo WU* TPE 1988 15. Mr Willi KALTSCHMITT LUJÁN* GUA 1988 16. Mr Richard L. CARRIÓN PUR 1990 17. Mr Nat INDRAPANA THA 1990 18. Mr Denis OSWALD SUI 1991 1968/72/76** 19. Count Jacques ROGGE* BEL 1991 1968/72/76 20. Mr Thomas BACH* GER 1991 1976** 21. Sheikh Ahmad Al-Fahad AL-SABAH KUW 1992 22. Mr James L. EASTON USA 1994 23. Sir Craig REEDIE, CBE* GBR 1994 24. Mr Mario PESCANTE ITA 1994 25. Mr Gerhard HEIBERG NOR 199426. Mr Austin L. SEALY BAR 1994 27. Dr Robin E. MITCHELL FIJ 199428. 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 199535. 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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Country Year of election Games participation44. 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 53. Mr Ser Miang NG* SIN 1998 54. Mr Samih MOUDALLAL SYR 1998 55. Mr Joseph S. BLATTER SUI 1999 56. Mr Lamine DIACK SEN 1999 57. Mr Gian-Franco KASPER SUI 2000 58. Mr Carlos Arthur NUZMAN BRA 2000 1964 59. Mr Zaiqing YU CHN 200060. Mr Timothy Tsun-Ting FOK HKG 2001 61. Raja Randhir SINGH IND 2001 1964/68/72/76/80/84 62. Mr John Dowling COATES, AC* AUS 2001 63. Mr Issa HAYATOU CMR 2001 64. Mr Juan Antonio SAMARANCH Jr* ESP 2001 65. HRH Prince Nawaf Faisal Fahd ABDULAZIZ KSA 200266. Mr Patrick S. CHAMUNDA ZAM 2002 67. HRH Prince Tamim Bin Hamad AL-THANI QAT 2002 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.MrAndrésBOTEROPHILLIPSBOURNE COL 200776. Mr Patrick BAUMANN SUI 200777. HRH Princess Haya AL HUSSEIN UAE 200778. Mrs Rita SUBOWO INA 200779. Mr Sergey BUBKA* UKR 2008 1988/92/96/2000**80. Dr Ugur ERDENER TUR 200881. 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 200986. HRH Crown Prince Frederik of DENMARK DEN 2009



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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** 96. Ms Angela RUGGIERO USA 2010 1998/2002/06/10** 97. Mr Adam PENGILLY GBR 2010 2006/10 98.MrJoséPERURENA ESP 2011 1968 99. Dr Gerardo WERTHEIN ARG 2011 100. Ms Barbara KENDALL, MBE NZL 2011 1992/96/2000/04/08**101. Ms Aïsha GARAD ALI DJI 2012 102. Mr Pierre-Olivier BECKERS BEL 2012103. Mr Tsunekazu TAKEDA JPN 2012 1972/76104. Mr Frank FREDERICKS NAM 2012 1992/96/2004**105. Ms Lingwei LI CHN 2012

* Executive Board member ** Olympic medallist



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IOC HONORARY MEMBERS AT 31 DECEMBER 2012

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

** Olympic medallist

IOC HONOUR MEMBERAT 31 DECEMBER 2012

Country Year of election Games participation

Mr Henry KISSINGER USA 2000



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Year of election to President the Executive BoardCount Jacques ROGGE (BEL) 2001

Vice-PresidentsMr Ser Miang NG (SIN) 2009Mr Thomas BACH (GER) 2010Mrs Nawal El MOUTAWAKEL (MAR) 2012Sir Craig REEDIE (GBR) 2012

MembersMr John D. COATES, AC (AUS) 2009Mr Sam RAMSAMY (RSA) 2010Ms Gunilla LINDBERG (SWE) 2011Mr Ching-Kuo WU (TPE) 2012MrRenéFASEL(SUI) 2012Mr Patrick Joseph HICKEY (IRL) 2012Ms Claudia BOKEL (GER) 2012Mr Juan Antonio SAMARANCH Jr (ESP) 2012Mr Sergey BUBKA (UKR) 2012Mr Willi KALTSCHMITT LUJÁN (GUA) 2012

IOC ExECUTIvE BOARD AT 31 DECEMBER 2012



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REPORT OF THE AUDITORS AND COMBINED FINANCIAL STATEMENTS 2012

Report of the auditors 55

Combined statement of financial position at 31 December 2012 and 2011 56

Combined statement of activities for the years ended 31 December 2012 and 2011 57

Combined statement of comprehensive income for the years ended 31 December 2012 and 2011 58

Combined statement of cash flows for the years ended 31 December 2012 and 2011 59

Combined statement of changes in fund balances for the years ended 31 December 2012 and 2011 60

Notes to the combined financial statements at and for the years ended 31 December 2012 and 2011 61



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An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the combined financial statements for the year ended 31 December 2012 give a true and fair view of the financial position, the results of operations and the cash flows in accordance with the International Financial Reporting Standards (IFRS) and comply with Swiss law and the Olympic Charter.

Report on other legal requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 69b paragraph 3 CC in connection with article 728 CO) and that there are no circumstances incompatible with our independence.

In accordance with article 69b paragraph 3 CC in connection with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of combined financial statements according to the instructions of the Executive Board.

We recommend that the combined financial statements submitted to you be approved.

PricewaterhouseCoopers SA

MichaelFoley Pierre-AlainDévaud Audit expert Audit expert Auditor in charge

Lausanne, 30 May 2013

Report of the statutory auditor on the combined financial statements As statutory auditor, we have audited the accompanying combined financial statements of the International Olympic Committee, which comprise the statement of financial position, statement of activities, statement of comprehensive income, statement of cash flows, statement of changes in fund balances and notes (pages 56 to 94), for the year ended 31 December 2012.

Executive Board’s Responsibility The Executive Board is responsible for the preparation and fair presentation of the combined financial statements in accordance with the International Financial Reporting Standards (IFRS), the requirements of Swiss law and the Olympic Charter. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error. The Executive Board is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility Our responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards as well as the International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the combined 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 presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system.

REPORT OF THE AUDITORS



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COMBINED STATEMENT OF FINANCIAL POSITION 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 Financial assets 5 420 030 389 144 Investments in associates 6 19 064 14 280 Tangible fixed assets 8 193 578 182 405 Olympic Games related deferred expenditure 11 63 146 41 868 695 818 627 697

RESTRICTED Restricted financial assets 9 541 277 1 867 255

Total assets 2 842 786 3 306 314

LIABILITIES AND FUND BALANCES

Current liabilities Accounts payable and accrued expenses 10 154 923 100 617 Olympic Games related advances 11 – 1 598 560 Olympic Games related deferred income 11 – 110 480 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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COMBINED STATEMENT OF ACTIvITIES 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 Central operating and administrative costs 17 144 191 5 009 149 200 150 705

Olympic Games related expenditure, subsidies and special projects Olympic Games related expenditure 18 453 611 – 453 611 – Youth Olympic Games related expenditure 19 20 291 – 20 291 – Grants and subsidies 3 983 – 3 983 4 704 Funds earmarked for allocation 12 81 000 – 81 000 – Olympic Solidarity programme 20 – 75 253 75 253 71 138 Special projects 11 249 – 11 249 5 355 570 134 75 253 645 387 81 197

Distribution of revenues to OCOG, USOC and IF Revenue distribution 21 1 751 752 (376 729) 1 375 023 50 100 TOP programme marketing 21 440 996 – 440 996 94 268 2 192 748 (376 729) 1 816 019 144 368

Excess of revenues (expenditure) before financial income 408 709 296 467 705 176 (239 987) 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)




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COMBINED STATEMENT OF COMPREHENSIvE INCOME 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)



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COMBINED STATEMENT OF CASH FLOwSFOR 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 (310 144) (159 519)

Changes in: Olympic Games related deferred income and expenditure, net 1 054 (6 558) Receivables and other current assets (12 205) (31 016) Accounts payable and accrued expenses 19 130 7 529 7 979 (30 045)

TV Rights receipts and allocations Receipt of Olympic Games related advances 1 182 734 1 218 189 Disbursement of Olympic Games related advances (870 625) (122 564) Increase in OCOG receivable (113 297) (299 232) Use of earmarked funds (26 963) (27 535) (Increase)/decrease in Television Broadcasting rights instalments held in trust 401 864 (489 123) 573 713 279 735

Interest received 50 749 39 070 Interest paid (3) (73) 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




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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

Total comprehensive income / (loss) for the year 842 447

Balance at 31 December 2012 1 513 219 445 596 37 865 1 996 680

COMBINED STATEMENT OF CHANGES IN FUND BALANCESFOR THE YEARS ENDED 31 DECEMBER 2012 AND 2011 (IN THOUSANDS OF US DOLLARS)




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The International Olympic Committee (IOC), domiciled in Lausanne, Switzerland, is an international non-governmental not-for-profit organisation in the form of an association with the status of a legal person. The mission of the IOC is to lead the Olympic Movement in accordance with the Olympic Charter. The Olympic Movement encompasses organisations, athletes and other persons who agree to be guided by the Olympic Charter, including, in addition to the IOC, the International Sports Federations (IFs), the National Olympic Committees (NOCs) including the United States of America Olympic Committee (USOC) and the Organising Committees of the Olympic Games (OCOGs).

The Olympic Movement’s revenues are largely generated from royalties on licensing television broadcasting rights for Olympic Games, as well as revenues from the commercial exploitation of the Olympic symbol and Olympic emblems.

In addition to the activities of the IOC, these combined financial statements include the activities of the following organisations and programmes:

•TheOlympicMuseum(OM),afoundationgovernedbytheprovisions of the Swiss Civil Code. It has been entrusted by the IOC with the task of depicting the history and development of the Olympic Movement and to associate the movement with art and culture for specialists and the public at large worldwide.

•TheOlympicFoundation(OF),afoundationgovernedby the provisions of the Swiss Civil Code. It has been entrusted by the IOC to give support to the activities of the Olympic Movement notably in the areas of culture, education and sports.

•OlympicSolidarity(OS),aprogrammedevelopedjointlyby 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.

•IOCTelevisionandMarketingServicesSA(IOCTMS),acompany fully owned by the OF which manages the IOC’s worldwide sponsorship programme, all its other marketing activities and activities related to broadcasting rights and new media.

•TheOlympicPartner(TOP)Programme,theIOC’sworldwide sponsorship programme which is managed by IOCTMS.

•OlympicBroadcastingServicesSA(OBSSA),acompanythat supplies all services relating to the establishment and management of the Host Broadcasting function of the Olympic Games, and in which the OF holds a 99% shareholding.

•OlympicBroadcastingServicesSL(OBSSL),acompanythat provides services to OBS SA, fully owned subsidiary of OBS SA.

•OlympicBroadcastingServicesVancouverLTD(OBSV),a company that provides services to OBS SA, for the purpose of the 2010 Olympic Winter Games, fully owned subsidiary of OBS SA.

•OlympicBroadcastingServicesLondonLTD(OBSL),a company that provides services to OBS SA, for the purpose of the 2012 Olympic Games, fully owned subsidiary of OBS SA.

The activities of the OM, the OF, OS, IOCTMS, TOP, OBS SA, OBS SL, OBSV and OBSL have been combined with those of the IOC (together, the IOC or the Group) on the basis of the fact that the latter has a 100% shareholding or control of the Boards of each organisation and programme.

1. ACTIvITY



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A) Basis of preparationThe combined financial statements are prepared in accordance with and comply with International Financial Reporting Standards (IFRS). The significant accounting policies are described below and have been consistently applied to the years presented, unless otherwise stated. The financial statements are prepared under the historical cost convention except for financial assets at fair value through profit or loss and derivative financial instruments which are shown at fair value. Transactions and balances among the combined organisations and programmes have been eliminated.

The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and also requires the exercise of judgment in the application of the accounting policies. In particular, significant assumptions are used in the calculation of the defined benefit obligations (note 13).

These combined financial statements have been approved by the Executive Board of the IOC on 30 May 2013.

The amounts shown in these combined financial statements are presented in US dollars, in view of the international nature of the IOC’s operations and due to the majority of its revenues being earned in that currency.

The television broadcasting revenues are received in USD, EUR, JPY, GBP, CAD and AUD. The related distributions are paid in USD and EUR.

Restricted assets represent the equivalent of advances received on television rights royalties. Such funds are held in financial assets at fair value through profit or loss or in trust.

Certain comparative statement of financial position figures have been reclassified to conform to the current year’s presentation.

Amendments to published standards coming into effect in 2012New 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.

Standards, amendments and interpretations not yet effective and which have not been early adoptedA number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2012, and have not been applied in preparing these combined financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the group, except the following set out below:

Amendment to IAS 1, ‘Financial statement presentation’ regarding other comprehensive income. The main change resulting from these amendments is a requirement for entities to group items presented in ‘other comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). The amendments do not address which items are presented in OCI.

IFRS 13, ‘Fair value measurement’, aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs.

IAS 19, ‘Employee benefits’, was amended in June 2011. The impact on the group will be as follows: to immediately recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability (asset). The Group will adopt retroactively this amendment during the accounting period beginning on 1 January 2013. The estimated impacts on the main 2012 indicators are: a decrease of equity as at 31.12.2012 of USD 23.7 millions. The estimated impact on the net income is considered not significant.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



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IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 was issued in November 2009 and October 2010. It replaces the parts of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the statement of activities, unless this creates an accounting mismatch. The group is yet to assess IFRS 9’s full impact and intends to adopt IFRS 9 no later than the accounting period beginning on or after 1 January 2015. However, initial indications are that it should not affect the Group’s accounting for its financial assets. The group will also consider the impact of the remaining phases of IFRS 9 when completed by the Board.

IFRS 10, ‘Consolidated financial statements’, builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. The group is yet to assess IFRS 10’s full impact and intends to adopt IFRS 10 no later than the accounting period beginning on or after 1 January 2013.

IFRS 12, ‘Disclosures of interests in other entities’, includes 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.

B) Foreign currenciesa) Group companies

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”).

The statements of activities of the Group’s entities that have a functional currency different from the presentation currency have been translated in US dollars at average exchange rates for the year and the statements of financial position at the year-end exchange rates ruling at 31 December. Exchange differences arising from such translation have been taken to the statement of changes in fund balances.

The main exchange rates used are as follows:

1 USD against2012 2011 2012 2011Year end rates Average rates

Swiss Franc CHF 0.9154 0.9381 0.9334 0.8816

Euro EUR 0.7580 0.7710 0.7752 0.7162

Canadian Dollar CAD 0.9920 1.0212 0.9988 0.9870

Great Britain Pound GBP 0.6155 0.6430 0.6280 0.6219

b) Transactions and balances

Foreign currency income and expenditure are accounted at the exchange rates prevailing at the date of the transactions. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of activities. Non-monetary items carried at historical cost denominated in a foreign currency are reported using the historical exchange rate at the date of the transaction.



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C) Consolidationa) Subsidiaries

Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

The excess of the consideration transferred the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the statement of comprehensive income.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

b) Transactions and non-controlling interests

The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group ceases to have control or significant influence, any retained interest in the entity is premeasured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.

c) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.

The Group’s share of its associates’ post-acquisition profits or losses is recognised in the statement of activities, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in 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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Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

Dilution gains and losses arising in investments in associates are recognised in the statement of activities.

D) Cash and cash equivalentsCash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less.

E) Financial assetsThe Group classifies its financial assets in the following categories: financial assets at fair value through profit or loss, and loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date.

a) Financial assets at fair value through profit or loss

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. Derivatives are also categorised 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.

Regular purchases and sales of investments are recognised on settlement date. Financial assets at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the statement of activities. They are subsequently carried at fair value. Investments are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the IOC has transferred substantially all risks and rewards of ownership. Loans and receivables are carried at amortised cost using the effective interest method.

Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category, including interest and dividend income, are presented in the statement of activities within financial income, net, in the period in which they arise.

F) Deferred income and expenditureIncome and expenditure relating to Olympic Games and Youth Olympic Games (the “Games”) not yet held are deferred and recognised in the statement of activities upon successful completion of the Games. These include costs incurred on certain projects which provide benefits to a number of Games. Income and expenditure relating to the TOP programme are deferred for items relating to future TOP four-year-programmes. In addition, certain amounts relating to value in kind contributions received and payable to OCOGs under the TOP programme are deferred and recognised in the year of the Games.



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G) Tangible fixed assetsBuildings and building installations, leasehold improvements, furniture and equipment and information technology systems are stated at cost less accumulated depreciation. Broadcasting equipment is depreciated according to its effective use during the Olympic Winter Games and during the Games of the Olympiad once every two years.

Depreciation of other assets is calculated on a straight line basis over the estimated useful life of the assets as follows:

Buildings 50 years

Building installations 25 years

Leasehold improvements, furniture and equipment 4 to 10 years

Information technology systems 4 to 5 years

Collections 25 years

Land is stated at cost and is not depreciated.

New building installations and major renewals, in particular broadcasting equipment, are capitalised; maintenance, repairs and minor renewals are charged to the statement of activities as incurred. The depreciation charge on broadcasting equipment is included in the Olympic Games related expenditure.

H) Impairment of non-financial assetsAssets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

I) Pension obligationsThe Group sponsors pension plans for employees of the IOC, OM, OF and IOCTMS. These plans are cash-balance plans treated as defined benefit plan for financial reporting purposes. The plan assets are separated and managed independently from the Group’s assets. The pension plans’ obligations and the service cost are calculated annually by an independent actuary. The method used is the projected unit credit method. The Group’s policy for recognition of actuarial gains and losses is to recognise the amount exceeding 10% of the higher of the present value of obligations and the assets over the average future working life of the active members. Furthermore, the Group pays contributions to savings plans for OBS SL.

J) Designated fundsFunds designated for the financing of the annual programme of Olympic Solidarity and 2010 Vancouver television broadcasting rights that the IOC has reserved for future distribution are reported as designated funds in the combined financial statements. The balance of these funds consists of unutilised budget allocations for the 2009–2012 quadrennial programme and television broadcasting rights allocated but not yet paid.

K) Revenue recognitiona) Television broadcasting rights

Royalties from the licensing of television rights to broadcast Olympic Games and Youth Olympic Games are recognised on the successful completion of the respective Olympic Games. Instalments received by the IOC prior to this date are deferred as they may be repayable, in whole or in part, to the television networks at any time up to the completion of the Games upon the occurrence, for any reason, of one or several conditions specified in the agreements. Interests earned on the instalments received are of the benefit of the IOC and are recorded as interest income currently.

The proceeds from television rights royalties are allocated between the IOC, OCOGs, IFs, NOCs and OS by decision of the IOC Executive Board upon the successful completion of the Olympic Games.



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b) TOP rights

Revenues from TOP rights are partly received in cash, in which case they are recorded in the period the instalments become due, and partly received in the form of goods or services (Value in Kind). Value in Kind is recognised for the 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 Olympiad or Olympic Winter Games for the OCOGs. Value in Kind revenues are recorded based on their underlying fair value. Fair value is considered to be the estimated market price obtainable between knowledgeable, willing parties in an arm’s length transaction.

The TOP rights proceeds, net of related management fees, are allocated between the IOC, OCOGs and NOCs based on a standard formula agreed by the parties. Such distribution is recorded in line with the aforementioned policy with respect to the recognition of TOP rights.

c) Other rights

Other rights include revenues from the commercial exploitation of the Olympic symbol and Olympic emblems. The revenues represent the Group’s share of the OCOGs marketing programmes, as well as income from other sponsorship, suppliership and licensing agreements. Revenues which are related to Olympic Games are deferred until the year the 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 incomeInterest income is recognised on an effective yield basis, and dividend income is recognised when the right to receive payment is established.

M) Income taxesThe 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.

N) Accounting for derivative financial instruments and hedging activitiesDerivative financial instruments are recognised in the statement of financial position at fair value. All fair value changes are recognised immediately in the statement of activities.

Certain financial instrument transactions provide effective economic hedges under the Group’s risk management policies; however, they do not qualify for hedge accounting under the specific rules in IAS 39. As a consequence, the hedging instrument and the hedged item are reported independently as if there were no hedging relationship.



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A) Financial risk factorsThe Group’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. Its overall risk management programme seeks to minimise potential adverse effects on the activities of the Group. The Group uses derivative financial instruments such as foreign currency options, interest rate swaps, swaptions and forward contracts to cover certain exposures.

Risk management is carried out by the treasury section under limits determined by the Finance Management Committee and the policies approved by the Executive Board.

a) Foreign exchange risk

The Group is exposed to foreign exchange risks mainly because most of its revenues are generated in various currencies including USD, EUR and JPY whereas its central operating and administrative costs are essentially Swiss franc based. Foreign currency option and forward contracts are used to reduce the related exposure.

At 31 December 2012, if the EUR had weakened/strengthened by 10% against the USD with all other variables held constant, excess of revenues (expenditure) for the year would have deteriorated/improved by USD 34.2 millions (2011: USD 20.6 millions).

At 31 December 2012, if the CHF had weakened/strengthened by 10% against the USD with all other variables held constant, excess of revenues (expenditure) for the year would have deteriorated/improved by USD 18.4 millions (2011: USD 9.1 millions).

At 31 December 2012, if the AUD had weakened/strengthened by 10% against the USD with all other variables held constant, excess of revenues (expenditure) for the year would have deteriorated/improved by USD 12.3 millions (2011: USD 2.7 million).

At 31 December 2012, if the JPY had weakened/strengthened by 10% against the USD with all other variables held constant, excess of revenues (expenditure) for the year would have deteriorated/improved by USD 13.1 million (2011: USD 0.2 millions).

At 31 December 2012, if the GBP had weakened/strengthened by 10% against the USD with all other variables held constant, excess of revenues (expenditure) for the year would have deteriorated/improved by USD 4.5 million (2011: USD 6.5 millions).

b) Interest rate risk

The Group is exposed to interest rate risk through the impact of rate changes on interest bearing assets. These exposures are managed partly through the use of derivative financial instruments such as interest rate swaps and swaptions.

At 31 December 2012, if the interest rates had increased/decreased by 1%, with all other variables held constant, excess of revenues (expenditure) for the year would have improved/deteriorated by USD 15.3 millions (2011 USD 11.6 millions) lower/higher, mainly as a result of change in fair value of bond instruments included in financial assets at fair value through profit or loss.

c) Credit risk

A substantial part of the Group’s revenues are generated from the licensing of television broadcasting rights and other rights. The Group believes that all amounts due under such rights are fully collectible. The Group has policies which limit the amount of credit and investment exposures. Cash is placed with, derivative instruments are entered into, and custodian agreements in place with Swiss banks. Investment securities represent notes issued by major corporations and government entities as well as investment fund units issued by major banks.

d) Market risk

The Group is exposed to market risk because of its financial assets at fair value through profit or loss other than money market instruments. These exposures are managed by the Group using the financial risk management policies described below.

At 31 December 2012, if the equity indexes had increased/decreased by 10%, with all other variables held constant, excess of revenues (expenditure) for the year would have improved/deteriorated by USD 13.5 millions (2011 USD 12.7 millions), mainly as a result of change in fair value of equity based instruments included in financial assets at fair value through profit or loss.

3. FINANCIAL RISK MANAGEMENT



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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.

Surplus cash held by the Group is invested in the Olympic Foundation portfolio (note 3B).

The table below analyses the Group’s non-derivative financial liabilities and net settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flow.

At 31 December 2012 Less than Between 1 Between 2 Over USD 000 1 year and 2 years and 5 years 5 years

Accounts payable 137 185 – – – Earmarked funds 29 525 27 347 37 723 –

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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B) Financial risk management policya) Overview and Objectives

The International Olympic Committee receives and distributes funds to the various pillars of the Olympic Movement. The Finance Commission and the Executive Board wish to adopt policies and procedures to govern the management of these funds as well as the level of market and credit risk that can be assumed, and the reports to be submitted.

Policies described below are to be followed in the management of the funds directly under the control of the IOC. These funds are kept in five separate portfolios herein denominated as the International Olympic Committee portfolio, the Olympic Foundation portfolio, the Olympic Solidarity portfolio, the TOP programme portfolio, and the OBS portfolio.

The International Olympic Committee portfolio holds funds of a restricted nature derived from the sale of television broadcasting rights. It also keeps the short-term treasury position of the IOC and the accounts from which the operating expenses and other cash outflows of the IOC are disbursed.

The Olympic Foundation portfolio is the primary reserve fund of the IOC. Its purpose is to cover the operating expenses of the IOC over an Olympiad in which no Games were held.

The Olympic Solidarity portfolio holds the funds which are to be distributed by the OS.

The TOP programme portfolio and the OBS portfolio serve to manage the liquidity of the respective entities.

The Finance Commission is responsible for recommending policies for approval by the Executive Board. These portfolios are managed by the Treasurer, and overseen by the Treasury and Financial Investments Management Committee (TFIMC) as well as the Finance Commission.

The objective of this policy statement is to outline for each portfolio (a) the purpose of the portfolio, its return objectives and its level of risk, (b) the type of investment instruments permitted with limits by type of instrument, (c) the maximum market risk limits to be assumed by the portfolios, by duration and value-at-risk measures, (d) the limits on debt investments by credit rating, and (e) the reporting requirements.

b) Responsibilities

The Executive Board approves the investment strategy for the International Olympic Committee, Olympic Foundation, TOP Programme and OBS portfolios on the recommendation of the Finance Commission, and thereafter exercises overall supervision of its implementation. The execution of approved investment strategies is the responsibility of the TFIMC. The investment strategy of the Olympic Solidarity portfolio is subject to the prior approval of the Olympic Solidarity Commission. The Treasurer is responsible for implementing approved strategies and ensuring compliance with policy limits.

c) International Olympic Committee Portfolio

The IOC portfolio includes funds of a restricted nature derived primarily from broadcasting rights contracts which may have to be reimbursed in foreign currency under certain circumstances, within an uncertain period of time. The remainder of the portfolio is used to finance operating expenses, made usually in CHF, and other cash outflows.

The short term nature and uncertainty of the claims on the IOC portfolio suggest that it should have a modest risk profile where a principal attribute is capital preservation.

Investments of restricted funds (i.e. TV rights advances) should be made in the same currency in which the IOC received the funds. The duration of these investments will correspond approximately with the dates of the Opening Ceremony of the Olympic Games covered by the respective broadcasts rights payments.

Types of investments permitted include:

•Moneymarketinstruments,notesandbonds.

•Foreign-exchangespotforwards.

•Structuredproductswith100%capitalguarantee.

•Foreign-exchangeoptions.

•Interestratesswapsandderivativeslikeoptions, FRAs or swaptions.

•Moneymarketfunds.

All other types of investments require prior approval of the TFIMC and/or the Finance Commission.



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For fixed-income securities, the following limits shall apply:

•Thesecuritiesshallhavearatingof“A”oraboveontheBloomberg Composite Rating. If a rating falls below A during the bond’s lifetime, a deeper analysis has to be carried out and the case will be submitted at the next TFIMC meeting.

•Thefollowingratingslimitsshallapply:AAAandAABonds70–100%, A bonds 0–30%.

•Thedurationofthefixed-incomeportfoliothatisnotrestricted shall not exceed 4 years, and the 90-day value-at-risk must remain below 9% of the market value.

•Totalexposuretoanyonecorporateissuershouldnotexceed 6% of the market value of the total bond portfolio.

•Structurednotes,maximum20%ofthemarketvalueofthebond portfolio.

Short options are permitted for the purpose of yield enhancement and are always covered by an underlying asset in the portfolio.

d) Olympic Foundation Portfolio

The Olympic Foundation has been entrusted by the IOC to give support to the activities of the Olympic Movement. The Olympic Foundation portfolio will ensure it has sufficient investments realisable with a minimum of loss so as to cover the IOC’s operating cash requirements in the eventuality of a cancellation of any future Olympic Games.

The portfolio has a long-term orientation and has an absolute return objective. The investment universe is broad and therefore the risk appetite is higher than the IOC portfolio.

External mandates for some specific investments are permitted.

Types of investments permitted include:

•Moneymarketinstruments,notesandbonds.

•Commonequitiesandexchange-tradedfunds(ETFs).

•Mutualfundsorhedgefundswhichinvestinsecuritiesdescribed above.

•FundofFunds.

•RealEstatefundsorrealestatedirectinvestments.

•Commodities.

•Structuredproductswith100%capitalguarantee.

•Foreign-exchangespotandforwards.

•Optionsonforeignexchangeandrates.

For fixed-income securities, the following limits shall apply:

•Ratings:supranationalentities,corporations,statesandprovinces bonds shall have a rating of “B” (up to 5% of the market value of the bond portfolio), single “A” (up to 30%); and “AA and above” (at least 70%); unrated obligations are not permitted.

•Thedurationofthefixed-incomeportfolioshallnotexceed10 years, and the 90-day value-at-risk must remain below 9% of the market value.

•Totalexposuretoanyonecorporateissuershouldnotexceed 6% of the market value of the total bond portfolio.

•Structurednoteswithprincipalprotectionshouldnotexceed 20% of the market value of the bond portfolio.

For common equities, the following limits will apply:

•Positionsinanysingleequitymustbelimitedto6%ofthemarket value of the equity portfolio. Positions in a single Equity fund and Fund of funds must be limited to 12% of the equity portfolio.

•Emergingmarketequitiescannotexceed20%ofthemarket value of the equity portfolio.

The proportion of the portfolio invested in equities (including hedge funds and funds of funds) cannot exceed 30% of the total market value of the portfolio.

For commodities investments, the following limits will apply:

•Investmentsmustbelimitedto10%ofthemarketvalueofthe total portfolio.

For real estate investments, the following limits will apply:

•Directinvestmentsinrealestateaswellasrealestatefunds must be limited to 10% of the market value of the total portfolio.

Short options are permitted for the purpose of yield enhancement and are always covered by an underlying asset in the portfolio.

All other types of investments require prior approval of the TFIMC and/or the Finance Commission.



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Currency allocation:Olympic Foundation investments can be made in every convertible currency. Nevertheless, the following ranges should be maintained and respected:

•30–50%ofthetotalofinvestmentsinUSD.

•30–50%ofthetotalofinvestmentsinEUR.

•10–25%ofthetotalofinvestmentsinCHF.

•Additionalranges:AUD(0–10%),GBP(0–5%), other currencies (0–10%).

Custodian banks:The Olympic Foundation assets should be held in several banks for diversification purposes. None of them should have more than 70% of the global portfolio.

e) Olympic Solidarity Portfolio

The strategy consists of managing the biennial IOC allocations and matching the investments with the forecasted outflows. The portfolio should have a low-risk profile where a principal objective is capital preservation. It is short-term orientated and has an absolute return objective.

Types of investments permitted include US dollar-denominated money market instruments, notes and bonds whereby the following limits apply:

•Ratings:corporateobligationsshallhavearatingof“A”or above; the applicable limit for single “A” is 20% of the market value of the portfolio. If a bond is suddenly downgraded below A, a deeper analysis should be made.

•Thedurationofthefixed-incomeportfolioshallnot exceed five years, and the 90-day value-at-risk must remain below 6% of the market value at inception of the funding allocation.

•Totalexposuretoanyonecorporateissuershouldnotexceed 6% of the market value of the total portfolio at inception of the funding allocation.

All other types of investments require prior approval of the Olympic Solidarity Commission

f) TOP Programme and OBS Portfolios:

These two portfolios mainly consist of money market investments and bonds and focus on managing liquidity on the short term.

g) Benchmarks

Each category of investment within the IOC portfolios has a benchmark index identified. These will be used to compare the actual total return of the portfolios of the IOC, the OF, TOP and OBS with a corresponding passive index.

h) Reporting

Reports on the investment portfolios must be presented to the Finance Commission on a semi-annual basis and quarterly to the Finance Management Committee. In addition, a dashboard report is issued every month and sent to management. This report assesses the full compliance of investments with risk policies. Any deviation is underlined and the follow-up and the final decision are taken by management.

The monthly dashboard is distributed to the Treasury and Financial Investments Management Committee which is composed of the following members: President, Chairman of the Finance Commission, General Director, Chief Financial Officer and the Treasurer.

At 31 December 2012, the dashboard showed that the authorised limits for the single “A” ratings of bonds in the IOC, Olympic Foundation and Olympic Solidarity portfolios had been exceeded. This was because the downgrading in the ratings of various sovereign and financial bond issuers had modified the distribution in the portfolios. This situation was accepted by the Treasury and Financial Investments Management Committee.

As at 31 December 2011, the dashboard did not reveal any significant discrepancy with the risk management policies.

i) Policy Exceptions and update

Policy exceptions may be approved in the event that unusual market conditions require immediate action, and it is not feasible to convene the Finance Commission. In the case of any proposed actions that could result in exceeding a policy limit, approval must be obtained from at least two members of the Finance Management Committee, one of whom must be either the President or the Chairman of the Finance Commission, before proceeding. After the Treasury and Financial Investments Management Committee meeting, the transaction(s) must be presented for ratification.

These policies shall be reviewed every two years and should contain a re-assessment of the portfolio objectives, risk profiles, permitted investments/currencies and asset allocation mix.

The last update was made in May 2012 and was approved by the IOC Finance Commission on June 22nd 2012.



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C) Fair value estimationThe table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

•Quotedprices(unadjusted)inactivemarketsforidenticalassets or liabilities (level 1);

•Inputsotherthanquotedpricesincludedwithinlevel1thatare observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2);

•Inputsfortheassetorliabilitythatarenotbasedonobservable market data (that is, unobservable inputs) (level 3).

The following table presents the group’s assets and liabilities that are measured at fair value at 31 December 2012.

Level 1 Level 2 Level 3 Total

Financial assets at fair value through profit or loss Bank deposits 85 894 – – 85 894 Money market funds 19 890 – – 19 890 Bonds 1 024 682 – – 1 024 682 Equity 38 479 – 10 680 49 159 Hedge funds – 85 676 – 85 676 Real estate 8 834 – – 8 834 Commodities 15 053 – – 15 053 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

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

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



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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 profit or loss.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

The following table presents the changes in level 3 instruments for the year ended 31 December 2012.

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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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 –

Total cash and cash equivalents 785 924 168 945

4. CASH AND CASH EqUIvALENTS

A) Movements in financial assets at fair value through profit or loss

2012 2011 USD 000 USD 000

For the year ended 31 December

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

5. FINANCIAL ASSETS



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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) 645 205 971 531

b) Olympic Foundation Bank deposits – 32 241 Bonds 411 310 307 758 Equity 49 159 43 129 Hedge funds 85 023 82 196 Real estate 8 833 7 050 Commodities 13 540 13 666 Derivative financial instruments 561 (1 500) 568 426 484 540

c) Olympic Solidarity Bank deposits – 23 300 Money market funds 19 832 – Bonds 34 753 93 299 54 585 116 599

d) Top Programme 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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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

The receivable from host cities OCOG are guaranteed by their respective government which have the following S&P ratings: UK government (London) AAA, Russian government (Sochi) BBB and Brazil government (Rio) BBB.



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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 Non-current assets Financial assets 206 263 213 767 420 030

Restricted Restricted financial assets (note 9) 412 801 128 476 541 277

Total 1 307 135 1 259 863 2 566 998

Assets as per balance sheet at December 31, 2011 Unrestricted Current assets Cash and cash equivalents – 168 945 168 945 Financial assets at fair value through profit or loss 11 294 – 11 294 Receivables and other current assets – 507 915 507 915 Non-current assets Financial assets 261 828 127 316 389 144

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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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, all of which are unlisted, and its aggregated assets (including goodwill) and liabilities are as follows:

Assets Liabilities Revenues Profit/(Loss)

2011 34 502 20 222 1 297 420 2012 42 894 23 828 15 134 4 345

6. INvESTMENTS IN ASSOCIATES

2012 2011 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.

7. RECEIvABLES AND OTHER CURRENT ASSETS



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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 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

At December 31, 2011

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)

Net book amount 91 914 19 068 26 452 17 062 27 909 – 182 405

Year ended December 31, 2012

Opening net book amount 91 914 19 068 26 452 17 062 27 909 – 182 405 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 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

8. TANGIBLE FIxED ASSETS



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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 Current – 1 598 560 Non-current 541 277 268 695

Total restricted financial assets 541 277 1 867 255

At 31 December 2012, TV broadcasting rights instalments held in trust are concentrated on a single counterpart rated A- and for 2011 BBB+ by S&P.

9. RESTRICTED FINANCIAL ASSETS

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

10. ACCOUNTS PAYABLE AND ACCRUED ExPENSES



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11. 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 31/12/11 165 200 81 077 – – – – 246 277 (19 762) 226 515 32 418 (23 694) 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 of Olympiad 31/12/11 12 812 6 037 – – – – 18 849 – 18 849 – (13 285) 31/12/12 12 812 22 294 73 447 429 14 948 – 123 930 – 123 930 8 222 (17 495)

2018 Olympic Winter Games 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)

Future Olympic Games and Youth Olympic Games 31/12/11 13 902 843 – – – – 14 745 – 14 745 194 (4 744) 31/12/12 13 902 857 – – 1 178 – 15 937 – 15 937 150 (4 796)

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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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 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) Allocation to the International Council of Arbitration for Sport (8 072) (6 572) IOC / IFs solidarity programme (2 718) (2 693) Financial assistance to other organisations of the Olympic Movement (2 946) (5 054)

Balance at 31 December 94 595 40 558

At 31 December Current 29 525 26 751 Non-current 65 070 13 807

Balance at 31 December 94 595 40 558

12. EARMARKED FUNDS



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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 planThe IOC’s pension scheme covers substantially all employees. The scheme was valued by independent actuaries using the projected unit credit method as at 31 December 2012.

The amounts recognised in the statement of activities are as follows:

2012 2011 USD 000 USD 000

Current service cost 9 547 8 911 Interest cost on projected benefit obligations 2 250 2 407 Expected return on plan assets (2 675) (3 310) Net amortisation 1 092 191 Employee contribution (3 513) (3 736)

Total net periodic pension cost, included in staff costs, as above 6 700 4 463

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)

13. STAFF COSTS



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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

Balance at 31 December (9 109) (9 576)

The assumptions used for the calculations are the following:

2012 2011

Discount rate used in determining present values 2.00% 2.50% Annual rate of increase in future compensation levels 1.75% 1.75% Expected rate of future increases in pension benefits 0.00% 0.00% Expected long-term rate of return on plan assets 3.50% 3.50%

Mortality assumption LPP2010_G LPP2010_G

The weighted average asset allocation at 31 December 2012 is:

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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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)

Present value of obligation at 31 December 106 064 89 552

The movement in the fair value of plan assets is:

2012 2011 USD 000 USD 000

Plan assets at fair value at 1 January 76 040 69 345 Employees contribution 3 513 3 735 Employer contribution 6 009 6 420 Benefits paid (2 510) (4 129) Expected return on plan assets 2 675 3 310 Experience gain (loss) 5 438 (1 984) Impact of exchange rate changes 2 183 (657)

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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14. 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 –

Youth Olympic Games broadcasting rights revenues 45 –

Total revenues from television broadcasting rights 2 568 943 –

15. OTHER RIGHTS

2012 2011 USD 000 USD 000

Royalties: OCOG marketing programme 130 076 – 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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16. 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

17. CENTRAL OPERATING AND ADMINISTRATIvE COSTS

2012 2011 USD 000 USD 000

Salaries and social charges (note 13) 76 974 77 759 Press, publications and public relations 3 336 2 882 External services 20 148 23 981 Session, commission and mission expenses 11 773 12 170 Transport, travel and residence expenses 5 854 6 274 Maintenance, supplies and other expenses 20 438 18 400 Taxes 1 021 330 Depreciation and amortisation 9 656 8 909

Total central operating and administrative costs 149 200 150 705



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18. 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 – Olympic Club 5 083 Marketing Program 5 101 – Insurance premium for Games cancellation 13 462 Other costs 8 791 –

Total expenditures in relation with the XXXth Games of the Olympiad 453 611 –

Broadcasting costs include equipment, production and telecommunication costs incurred by the Group to broadcast the live television and radio signals to the Games of the Olympiad:

2012 2011 USD 000 USD 000

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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19. 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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20. 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 Technical Courses for Coaches 2 619 3 097 Olympic Scholarships for Coaches 2 051 1 892 Development of National Sports Structure 1 177 1 377 NOC Administration Development 6 366 6 542 National Training Courses for Sports Administrators 868 1 079 International Executive Training Courses in Sports Management 859 329 Sports Medicine 417 842 Sport and the Environment 302 341 Women and Sport 444 373 Sport for All 447 566 International Olympic Academy 412 492 Culture and Education 797 777 NOC Legacy 348 636 2012 Special assistance for NOCs 19 800 –

47 717 38 941

Others: 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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21. 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 Olympic Committee.

The amounts recognised in the statement of activities are as follows:

2012 2011

TOP TOP Revenue Programme Total Revenue Programme Total Allocations to: USD 000 USD 000 USD 000 USD 000 USD 000 USD 000

Organising Committee of the XXX Games of the Olympiad 713 109 323 141 1 036 250 – 25 188 25 188

Organising Committee of the XXI Olympic Winter Games – 9 676 9 676 – 7 444 7 444

USOC 150 578 35 363 185 941 – 29 045 29 045

International Federations 508 581 – 508 581 50 100 – 50 100

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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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 International Olympic Committee 519 619

TOTAL 1 558 858

22.FINANCIAL INCOME, NET

2012 2011 USD 000 USD 000

Interest income 44 662 41 962 Interest expense (3) (73) 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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23.RELATED PARTY TRANSACTIONS

Identity of related partiesIOC members are natural persons. The total number of IOC members may not exceed 115. There are currently 101 members, 33 honorary members and 1 honour member. From the Group’s perspective, the following persons are regarded as related parties: the President, the Executive Board members and the members of the executive management.

Transactions with related partiesThe members, the President and the Executive Board of the IOC are not remunerated by the IOC. However, the IOC covers all expenses related to the execution of their functions, in particular travel, hotel, meal expenses and a daily allowance for out-of-pocket expenses, as well as a fixed amount for their personal administrative expenses.

These costs are included in session, commission and mission expenses in the statement of activities. In addition, the IOC covers the cost of the President’s residence expenses (room rent, living expenses, residence taxes, insurance) which amounted to USD 0.709 million in 2012 and USD 0.751 million in 2011 and which are included in the statement of activities under transport, travel and residence expenses.

The executive management of the IOC are considered to be the President, the Director General and all Directors of the IOC. As mentioned previously, the President is not remunerated. The salaries and short term benefits of the other members of the executive management amounted to USD 7.933 millions in 2012 and USD 9.260 millions in 2011. Their post employment benefits amounted to USD 0.950 million for 2012 and USD 1.152 million for 2011.

24.STRATEGY MANAGING OwN FUNDS

Funds balances include designated funds which are set aside for the financing of the Olympic Solidarity Programme and television broadcasting rights reserved for future distribution. Undesignated funds are kept for the purpose of financing the Olympic Foundation portfolio and the Group working capital.



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International Olympic Committee, Château de Vidy, Lausanne, Switzerland Tel +41 (0)21 621 6111 www.olympic.org

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