1. 1 ISOC’s 2001 Budget Review December 9, 2000 San Diego, California Michael E. Conn ISOC Treasurer

2. 2 2001 Budget Highlights Great Job by Lynn, Don and Bob Vaughn Divided Budget into Four Pillars of Operation Standards Membership Education & Training Public Policy Based on a lean ISOC HQ operation No CEO salary for last 10 months Not replacing 3 headcount for the year Would result in a $328K net gain

3. 3 ISOC’s 2001 Revenue Plan StandardsRev.MembershRev.Edu & TrainRev.Pub PolicyRev.Total Platinum$550Platinum$100$ 650 Org Mem$ 203Org Mem$675Org Mem$270Org Mem$203$1,350 IETF Contrib$ 10Indiv Memb$220NDSS$130$ 360 Gen Contrib$ 35INET 2001$290$ 325 Thinkquest$ 95 INET Future$ 75 Educ/WS$ 25 Total$763Total$930Total$885Total$303$2,880 ($Thousands)

4. 4 ISOC’s 2001 Expense Plan StandardsExp.MembershExp. Edu & Train Exp. Pub Policy Exp. Total RFC Editor$500Ind/Ch Adm$250NDSS$100Staff Activ$ 60$ 910 IETF Trav$ 60$Org Sup$305INET 2001$100$ 465 IAB/IESG$ 20Future Conf$ 65$ 85 Staff/Platin$ 20Thinkquest$ 90$ 110 Publication$ 50Publication$ 50Publication$ 50Publication$ 50$ 200 Website$ 12Website$ 36Website$ 36Website$ 36$ 120 Promotions$ 30Promotions$ 50$ 80 Educ/Worksh$ 62 Standards$662Membersh$641 Edu & Train $533 Pub Policy $196$2,032 G&A$ 58G&A$231G&A$160G&A$ 71$ 520 Standards$720Membersh$872 Edu & Train $693 Pub Policy $267$2,552 ($Thousands)

5. 5 ISOC’s 2001 Net Surplus StandardsMembersh Edu & TrainPub Policy Total Revenues$763Revenues$930Revenues$885Revenues$303$2,880 Expenses$720Expenses$872Expenses$693Expenses$267$2,552 Surplus$ 42Surplus$ 58Surplus$192Surplus$ 36$ 328 ($Thousands)

6. 6 ISOC Revenue Growth from Organizational Membership

7. 7 Total Organization Member Revenues $1.3M $1.54M $.285M $1.35M $.650M $1.825M $2.000M

8. 8 Org Membership Revenues Distribution Total Regular Org Revenues = $1,350K $203K (15%) $675K (50%) $270K (20%)

9. 9 Individual Membership Revenues Assumes no growth from 2000 1999$219K 2000$220K 2001$220K

10. 10 ISOC’s 2001 Change in Expenses Expected Reduction in Expenses$405K 2000 Total Expenses$3.0M 2001 Total Expenses$2.6M Major Decreases in Expenses$685K Reduce 3HC + CEO 10mth$410K Reduce Conference Expense$275K Major Increase in Expenses$280K Increase RFC Editor Support by$150K Increase Standards Support by$ 30K Platinum Program Cost$ 20K New Org Member Resource$ 80K

11. 11 ISOC’s 2001 G&A Expenses G&A Moved to Pillar Specific Cost$400K Ex: ISOC Membership FL HC in “Indiv/Chap Admin” G&A Remaining$520K Fully Loaded G&A Salaries$142K Legal, Insurance, Auditing Fees$ 80K BoT Support$ 85K Depreciation$ 50K Material & Supplies$ 40K Professional Services$ 50K Miscellaneous G&A$ 73K

12. 12 G&A Expense Distribution Total G&A Expenses = $520K $58K (11%) $231K (44%)$160K (31%) $71K (14%)

13. 13 INET Conference Net Profit INET 1999 ISOC took financial risk Resulting in a loss of approx. $265K INET 2000 ISOC took Profit Sharing Resulting in a profit of approx. $200K INET 2001 ISOC takes Revenue Sharing Expected Result approx. $190K $240K ISOC part of Revenue Sharing $ 50K ISOC Reimburse for expenses $100K ISOC expected INET expenses

14. 14 ISOC Total Revenues, Expenses and Net Assets Trends

15. 15 ISOC Key Balance Sheet Indicators

16. 16 ISOC Cash Shortage Indicator Cash Shortage Indicator = Cash & Cash Eq. - Accounts Payable - Deferred Revenue Jan-00 Mar-00 May-00 July-00 Sept-00 Nov-00

17. 17 Conclusions ISOC poised for good financial year Increased total Org Membership revenues Lean headcount and operational cost Expect $190K Profit from INET 2001 Expect Net Income of $328K ISOC recovering from major 1999 loss May take 2 to 3 more years Help Recruit Platinum and Org Members