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2012

FINANCIAL REPORT 2012

63rd FIFA CongressMauritius, 30 and 31 May 2013

Revenue Expenses

1,166

1,018

59

89

1,077

77

177

569

13

188

53

Result

89

150

450

600

750

900

1,050

1,200

300

Income statement 2012USD million

Balance sheet as at 31 December 2012USD million

Assets 2,683

Current assets 2,175

Non-current assets 508

Liabilities and reserves 2,683

Current liabilities 1,168

Non-current liabilities 137

Reserves 1,378

Financial expenses

Other operating expenses

Football governance

Development-related expenses

Exploitation of rights

Event-related expenses

Financial income

Other operating income

Event-related revenue

FINANCIAL REPORT 2012

63rd FIFA CongressMauritius, 30 and 31 May 2013

Contents

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Foreword 4

FIFA President 6

Chairman of the Finance Committee 8

Chairman of the Audit and Compliance Committee 10

Facts & Figures 2012 12

Overview 14

Income statement 16

Balance sheet 20

Budget comparison 22

2011-2014 Period 26

Detailed budget for 2014 28

Special Topics 30

Good governance reforms 32

Asset management report 38

FIFA Club Protection Programme 40

Annexe 2012 42

Auditor‘s report 96

Audit and Compliance Committee report 98

Natalia Gómez Junco (L) of Mexico and Cinzia Joerg

(R) of Switzerland battle for the ball during the

FIFA U-20 Women‘s World Cup 2012 match

between Mexico and Switzerland at Miyagi Stadium

in Japan on 22 August.

Foreword 01

6

Foreword

“The good governance process is on track.”

7

FIFA President 6Chairman of the Finance Committee 8


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2012

Dear football friends,

It is with great pleasure that I present the Financial Report 2012, which once again reveals another prosperous year for FIFA from an economic point of view. Thanks to our healthy balance sheet, we can continue to focus our efforts on the improvement of both the beautiful game itself and of our many competitions.

In line with the organisation’s mandate to serve the sport, our FIFA team recorded many remarkable achievements in 2012, ranging from the successful staging of eight FIFA competitions (in particular the FIFA U-17 and U-20 Women’s World Cups, the FIFA Futsal World Cup and the annual FIFA Club World Cup) to the effective imple-mentation of the very ambitious but essential road map for good governance.

The reform plan I tabled at the 61st FIFA Congress received the full support of delegates and marked the beginning of a reform process. At the 62nd FIFA Congress,

FIFA‘s judicial system and the creation of an Audit and Compliance Committee. The reform process will be completed by the 63rd FIFA Congress in 2013.

In addition, with only a few months left before the start of the FIFA Confederations

delighted to announce that preparations for the 2014 FIFA World Cup Brazil™ are well under way and proceeding according to plan.

for the future tasks that lie ahead. I would like to thank you for all of your valuable support and I have no doubt that together we can meet any challenge that may come our way.

For the Game. For the World.

Joseph S. BlatterFIFA President

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Foreword

“The FIFA Club Protection Programme has

been successfully implemented.”

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Dear Sir or Madam,

optimism for the remaining half of the cycle.

The development of FIFA’s revenues and costs is progressing according to plan, despite the continued challenging global economic situation. This has been achieved by keeping costs under control and by successfully commercialising our rights. At the same time, FIFA has preserved its assets via prudent asset management.

directly in the beautiful game itself, whether through our many worldwide football development programmes or through the various FIFA competitions.

One of the many milestones achieved in 2012 was the successful implementation

and member associations as well as the players and clubs, and provides for a global harmonised solution.

calendar. The programme runs from 1 September 2012 to 31 December 2014 and was also valid for the 2012 Olympic Football Tournament in London.

in greater detail at the 63rd FIFA Congress in Mauritius. On behalf of the Finance Committee, I would like to thank you for all of the trust and support you have placed in us over the past years.

Julio H. GrondonaChairman of the Finance Committee

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Foreword

“An effective compliance programme has been put in place.”

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Dear Sir or Madam,

capacity as chairman of the newly constituted Audit and Compliance Committee, particularly given the positive economic results recorded at the halfway mark of the

Following the good governance reform process, the role of the new Audit and

oversight now represent its major tasks. The chairman and deputy chairman must

charter and are part of the FIFA Organisation Regulations.

The new Audit and Compliance Committee has been founded on these criteria and

improvements have taken place in recent years, I am convinced that the committee‘s independence through its oversight and monitoring role can contribute to further

organisational processes and standards and maintaining an effective compliance programme.

FIFA has undergone considerable changes over the years, evolving from a small organisation that primarily regulated the game of football to the important economic entity it is today. Consequently, it was the right decision to support the FIFA President‘s proposal for a good governance reform process. My colleagues and I in the Audit

contributing to the overriding objective of this governance reform: strengthening

unique organisation.

Domenico ScalaChairman of the Audit and Compliance Committee

Panama‘s goalkeeper Jaime Penedo in action

2014 FIFA World

at the BMO Field in Toronto,

Canada.

Facts & Figures 2012 02

14

Facts & Figures 2012

Overview

Income statement and development of reserves

As decided by the Congress in 2010, FIFA is planning for a moderate increase in its reserves during the 2011-2014 period. Because more funds are being invested

2007-2010 period.

draw to a close in the year of the 2014 FIFA World Cup Brazil™. FIFA has so far

crisis unscathed, as proven by the following facts:2012 was a very successful year for FIFA, with a positive annual result of USD 89 million.In comparison to the previous year, revenue increased in 2012 to USD 1,166 million. Overall, the sale of rights for the 2014 FIFA World Cup Brazil™, particularly in the area of marketing, generated higher income than for the 2010 FIFA World Cup™. Expenditure also increased in comparison with the previous year to USD 1,077 million. In total, 69% of overall expenditure was invested directly in football.FIFA’s conservative investment policy and the of

USD 12 million.Systematic cost control once again proved its worth and costs were 6% below the 2012 expense budget.The strategy of hedging foreign currencies also proved to be fully effective in 2012 and protected FIFA against losses.As planned, FIFA’s reserves increased by 7% and stood at USD 1,378 million on 31

independence and to its ability to react to unexpected events.

15

Overview 14Income statement 16

Balance sheet 20Budget comparison 22

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2007 2008 2009 2010 2011 2012

Revenue

Expenses

882957

1,059

1,291

833 773863

1,089

202

1,166

1,077

89

1,070

1,034

3649184 196

Result

2007 2008 2009 2010 2011 2012

1,2801,378

1,293

643

9021,061

December

Income statement 2007-2010 and 2011-2012USD million

Development of reserves 2007-2012USD million

16


Income statement

Revenue 2012

This page provides an overview of the total revenue

the FIFA Congress in Zurich in 2011, it was decided that the renowned international

KPMG’s report can be found in the annexe on page 96. The report from the Audit and Compliance Committee is on page 98.

Total revenue amounted to USD 1,166 million, comprised of event-related

In terms of the event-related revenue of was attributable to the sale of television rights, of which the lion’s share – USD

of income was the sale of marketing rights worth USD 370 million, of which USD 367 million was generated by the FIFA World Cup™. The sale of licensing rights

income was made up primarily of revenue from the FIFA Club World Cup, which was matched, however, by comparable costs.

The other operating income of was attributable in particular to

Programme.

FIFA’s of was the result of the conservative investment strategy and was primarily made up of interest income of USD 7 million

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100% = USD 1,166 million

Revenue 2012USD million

FIFA Partners

Other operating income (5%)

Total 59

Financial income (8%)

Total 89

Event-related revenue (87%)

Total 1,018

18


Income statement

Expenses 2012

Total expenditure amounted to , arising from event-related expenses, development-related expenses, other operating expenses, football

expenditure was invested directly in football.

Of the event-related expenses of , USD 448 million was related to the 2014 FIFA World Cup Brazil™. FIFA also organised eight other competitions in 2012 (the Men‘s and Women‘s Olympic Football Tournaments in London, the FIFA U-20 Women’s World Cup in Japan, the FIFA U-17 Women’s World Cup in Azerbaijan, the FIFA Futsal World Cup in Thailand, the FIFA Club World Cup in Japan, the Blue Stars/FIFA Youth Cup, and the FIFA Interactive World Cup), which accounted for USD 103 million.

FIFA spent a total of or of overall expenditure on development projects, allocating USD 68 million to the Financial Assistance Programme (FAP for member associations and confederations), USD 29 million to the Goal Programme and USD 80 million to other development projects.

The other operating expenses of were mainly made up of personnel expenses of USD 91 million and of communications (e.g. FIFA.com and extranet) of USD 24 million.

Football governance expenses of covered the organisation of all committees and the FIFA Congress (USD 32 million) and legal matters (USD 21 million).

The for the exploitation of rightscontractual obligations in relation to marketing, broadcasting and media rights as well as licensing.

Financial expenses of were primarily made up of foreign exchange losses, which were offset by corresponding foreign exchange gains.

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69% for FIFA events and development

100% =USD 1,077 million

Expenses 2012USD million

Football governance (5%)Committees and Congress 32

Total 53

Other operating expenses (18%)Personnel 91

Total 188

Exploitation of rights (1%)Marketing 2

Total 13

Event-related expenses (53%)

Total 569

Financial expenses (7%) 1

Total 77

Development-related expenses (16%) 53

15 15

Goal Programme 29

Total 177

20


Balance sheet

Balance sheet and development of reserves

As at 31 December 2012, FIFA’s balance sheet totalled , with reserves of . FIFA’s reserves result from the previous years’ reserves of USD 1,293 million, the annual result of and the change in the hedging reserve of minus USD 4 million.

FIFA’s reserves have therefore in comparison to 31 December 2011, in accordance with a decision passed at the FIFA Congress in 2010 to only slightly increase reserves in the future.

Furthermore, article 73 of the FIFA Statutes states that:The revenue and expenditure of FIFA shall be organised in such a way that they balance outFIFA’s major duties in the future shall be guaranteed through the creation of reserves.

magnitude.

amount of reserves required cannot, in principle, be given as an absolute value, but rather depends on FIFA’s overall costs and the associated operational risks during a four-year period. FIFA’s current reserves correspond to approximately one-third of total costs for the period.

and to its ability to react to unexpected events. This has proved particularly vital

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2012 result 89Change in hedging reserve -4

31 Dec 2011

1,293

85

31 Dec 2012

1,378

150

450

600

750

900

1,050

1,200

1,350

1,500

300

Balance sheet as at 31 December 2012USD million

Development of reservesUSD million

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Budget comparison

Analysis of revenue for 2012

FIFA’s accounting system is based on International Financial Reporting . As IFRS is not suitable for budgeting and daily cost control on

account of its many technical rules and regulations, the budget is drawn up on a cash basis before being approved by the Congress.

A transition from IFRS is necessary in order to enable the actual revenue to be compared with the cash budget. Hence, from the total amount of revenue according to IFRS, an adjustment was made for the revenue that could not be included for a budget comparison. The resultant cash-in component was then compared with the budget.

In order to carry out a budget comparison, in non-cash items had to be adjusted from the overall revenue of USD 1,166 million for the 2012

items consisted, in particular, of revenue in relation to the percentage-of-completion method, gross effects and value-in-kind revenue, which were not taken into account in the cash budget.

The FIFA Congress passed a revenue budget of USD 676 million for the 2012 . This extra revenue is

mainly due to foreign currency effects, additional income from other FIFA events, brand licensing, and accelerated incoming payments.

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Totalrevenue

Non-cashitems

1,166 273

Cash-in component

893

150

450

600

750

900

1,050

1,200

1,350

1,500

300

Cash-incomponent

Budget 2012(approved by

FIFA Congress)

Positive deviation(i.e. over budget)

893 217

150

450

600

750

900

1,050

1,200

1,350

1,500

300

676

Revenue 2012: ComponentsUSD million

Revenue 2012: Budget comparisonUSD million

24


Budget comparison

Analysis of expenses for 2012

The basic principle described for the analysis of revenue also applies to expenditure.

A transition from IFRS is necessary in order to enable the actual expenses to be compared with the cash budget. Hence, from the total amount of expenses according to IFRS, an adjustment was made for the expenses that could not be included for a budget comparison. The resultant cash-out component was then compared with the budget.

In order to carry out a budget comparison, in non-cash items had to be adjusted from the for the 2012

adjusted consisted primarily of expenses in relation to the percentage-of-completion method.

The FIFA Congress passed an expense budget of USD 666 million for the 2012 underspent by . This underspend is

mainly due to deferred costs for the 2014 FIFA World Cup Brazil™ and cost savings.

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1,077 449

628

150

450

600

750

900

1,050

1,200

1,350

300

Totalexpenses

Non-cashitems

Cash-outcomponent

1,500

628 38666

Cash-outcomponent

Budget 2012(approved by

FIFA Congress)

Positive deviation(i.e. under budget)

150

450

600

750

900

1,050

1,200

1,350

1,500

300

Expenses 2012: ComponentsUSD million

Expenses 2012: Budget comparisonUSD million

Lionel Messi of Barcelona celebrates with

team-mate Dani Alves after scoring his second

goal during the

between Santos and FC Barcelona at the

International Stadium in Yokohama, Japan on

18 December 2011.

2011-2014 Period

28

2011-2014 Period

Detailed budget for 2014

Revenue and investments in 2014

The detailed budget for 2014 has been approved by the FIFA Finance Committee and the FIFA Executive Committee and it now requires from the

.

The detailed budget for 2014 was part of the overall budget approved by the 2010 Congress for the 2011-2014 period, with the exception of the cost for the FIFA Club Protection Programme, which was approved by the 2012 FIFA Congress.

29

Detailed budget for 2014 28

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Investments 2014

300

600

900

1,200

1,500 1,412

217

81

227

784

67

36

Revenue 2014

300

600

900

1,200

1,500

1,080

324

691

65

Budget 2014: RevenueUSD million

Budget 2014: InvestmentsUSD million

Development Financial Assistance Programme (FAP) - 54 member associationsGoal Programme 34New MA development programmes 32PERFORMANCE 30Technical development 19Financial Assistance Programme (FAP) - 15 confederationsConfederation development 15 programmesRefereeing Assistance Programme (RAP) 13Football for Hope 12Other (e.g. solidarity projects, 3 Football for Health)

Committees and Congress 40Transfer Matching System (TMS) 6Early Warning System 2Other (e.g. FIFA Brand) 19

Contributions to teams (prize money, 389 workshop, travel, lodging)TV production 165FIFA Club Protection Programme, etc. 114Financial contributions 53FIFA Fan Fest™ 19Insurance 10Refereeing matters 9

Other (e.g. media, new media, inspections, 20 marketing, TV)

FIFA Club World Cup 25FIFA U-20 Women’s World Cup 18FIFA U-17 Women’s World Cup 17Youth Olympic Football Tournament 3Other (e.g. FIFA Ballon d’Or, FIFA Interactive 18 World Cup, Blue Stars/FIFA Youth Cup)

Personnel, information technology, 162 building and maintenanceCommunications 29Other (e.g. reception, logistics, production, 26 travel, translations, insurance, tax,

Other (e.g. licensing, hospitality)

TV broadcasting rights

Marketing rights

Brazil striker Marta vies with Cameroon striker

Bebey Beyene during their group-stage match in

the Women‘s Olympic Football Tournament

London 2012 at the Millennium Stadium in Cardiff,

Wales on 25 July.

Special Topics 04

Special Topics

32

Good governance reforms

Reform plan

The four FIFA Task Forces, which were created in October 2011 as part of the reform process launched by the FIFA President during the 61st FIFA Congress in Zurich, have all concluded their mandate to propose reforms.

The proposals made by the Task Force Ethics Committee and the Task Force Transparency & Compliance, in particular with regard to the creation of the two-chamber Ethics Committee and the Audit and Compliance Committee with independent chairmen and deputy chairmen, were approved by the 62nd FIFA Congress in Budapest on 25 May 2012. At the same time, Domenico Scala (Italy/Switzerland) was appointed as independent chairman of the Audit and Compliance Committee. Additionally, the new FIFA Code of Conductappointment of a woman as a member of the FIFA Executive Committee, namely Lydia Nsekera (Burundi), were also approved that day.

On 17 July 2012, based on a mandate given by the 62nd FIFA Congress, the FIFA Executive Committee appointed Michael J. Garcia (USA) and Hans-Joachim Eckert (Germany) as independent chairmen of the Ethics Committee in addition to appointing the members of the Ethics Committee and adopting a new Code of Ethics.

The Task Force Revision of Statutes presented a draft proposal of amendments to the FIFA Statutes and the remaining proposals which were not voted on at the Congress in 2012 will be presented to the FIFA Congress in 2013. In this context, the FIFA Executive Committee decided at its meeting on 27 and 28 September 2012 to create a working group, chaired by FIFA Executive Committee member and chairman of the Task Force Revision of Statutes Theo Zwanziger and comprising the general secretaries as well as the legal directors of the confederations and FIFA, in order to consult the 209 member associations on these amendments and submit the remaining proposals on the revision of the FIFA Statutes to the 63rd FIFA Congress.

The reform process will be completed by the 2013 FIFA Congress.

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Good governance reforms 32Asset management report 38


ExCo 21.10.2011 Structural set-up

Transparency & Compliance, and Football 2014

Reform work Nov-Dec 2011First Task Force meetings

Compliance; analysis of situation and discussion of reform proposals

ExCo 17.12.2011

Reform workJanuary – March 2012Meetings of Task Forces and Independent Governance Committee

recommendations for the Executive Committee

ExCo 30.03.2012Approval of reforms

Congress 25.05.2012Approval and implementation of reforms

to be split into two chambers, new Audit and Compliance Committee with independent chairman, independence criteria, Code of Conduct

ExCo 17.07.2012 Ethics Committee, Code of Ethics

(based on the mandate given by the FIFA Congress)

Audit and Compliance CommitteeAug and Oct 2012Various reform proposals

Transparency & Compliance (e.g. FIFA Organisation Regulations, General Regulations on FIFA Development Programmes)

Member associations Nov 2012 – Feb 2013Consultation process on remaining reforms

directors of the confederations, to consult the 209 member associations on further amendments to the FIFA Statutes

ExCo 21.03.2013Approval of reforms

Development Programmes

Congress 31.05.2013Completion of reform process

judicial bodies, of the Audit and Compliance Committee and of the Representative of

Road map Key steps

Special Topics

34


Code of Ethics and Ethics Committee

decision of the FIFA Congress to restructure the Ethics Committee by dividing it into two chambers, one investigatory and one adjudicatory, both with independent chairmen who were appointed by the Executive Committee in July 2012.

Heading up the investigatory chamber is Michael J. Garcia, a leading US attorney who has led a wide range of prosecutions, including investigations into white-collar fraud and money laundering.

Hans-Joachim Eckert, the German judge chosen to preside over the adjudicatory chamber. Currently serving as the

experience, specialising in corruption, tax fraud and economic crime.

The investigatory chamber is free to investigate all allegations of wrongdoing, including those related to past incidents, with no statute of limitations being imposed upon the investigators.



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FIFA Code of Ethics

2012 edition

Ethics Committee

ChairmenMichael J. GARCIA USA (investigatory chamber) Hans-Joachim ECKERT Germany (adjudicatory chamber)

Members – investigatory chamberLes MURRAY AustraliaRobert TORRES GuamJorge Iván PALACIO ColombiaNoël LE GRAËT France Ahmed YAHYA Mauritania Ronald JONES Barbados

Members – adjudicatory chamberPetrus DAMASEB NamibiaJuan Pedro DAMIANI UruguayAbdoulaye Mokhtar DIOP SenegalBurton K. HAIMES USAYngve HALLEN NorwayThi My Dung NGUYEN VietnamJack KARIKO Papua New Guinea

FIFA Code of Ethics

Composition

Special Topics

36


Audit and Compliance Committee

The Audit and Compliance Committee started its work in August 2012 and has met three times. The FIFA Congress elected Domenico Scala (Italy/Switzerland), as independent chairman of the committee.

Domenico Scala studied at the University of Basel and graduated with a degree in

Nobel Biocare Holding AG and CFO of Syngenta Holding AG. Today, he serves as a non-executive director of Basilea Pharmaceutica Ltd. He can draw on a wide range of business, senior leadership and multicultural experience.

The main task of the Audit and Compliance Committee is to ensure the completeness and to review the

and the external auditor’s report. In addition, the

Organisation Regulations. The responsibility of the committee is divided into three operations, and compliance.

The Audit and Compliance Committee has accepted the 26 reform proposals prepared by the Task Force Transparency & Compliance, which mainly aim at improving control mechanisms and transparency throughout all of FIFA’s core processes. The committee has discussed all of these proposals in detail and put forward corresponding changes to the FIFA Organisation Regulations, General Regulations for FIFA Development Programmes and other regulations, which will be examined by the Executive Committee.



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Composition

Tasks

Audit and Compliance Committee

ChairmanDomenico SCALA Italy/Switzerland

Deputy chairmanto be elected by the FIFA Congress in 2013

MembersAllan HANSEN DenmarkRajesh PATEL FijiCanover WATSON Cayman IslandsRichard K. LAI GuamRomer OSUNA BoliviaSuketu PATEL Seychelles

Operations Financial reporting Compliance

management and the internal control system

the internal audit function

to ensure that appropriate action is taken if shortcomings have been detected in internal reviews or procedures

statements

accounting standard (IFRS)

statements are carried out properly

subsidiaries

with the law and the FIFA internal rules relating to compliance

the laws and rules on ethics as well as with the FIFA internal rules applicable to them

the Secretary General’s monitoring of FIFA employees’ compliance with laws on ethics as well as with the FIFA internal rules applicable to them

internal rules on compliance

impact on FIFA

by FIFA employees with the laws and rules on ethics as well as with the FIFA internal rules submitted by the body operating the whistle-blowing hotline for FIFA

Special Topics

38

Asset management report

The overriding, long-term investment objective is the preservation of the real value of FIFA’s assets. Returns must be in line with the market, in relation to the risk incurred.

The investment portfolio is divided into a liquid part (investment periods of less than one year) and a bond part (investment periods of more than one year).

needs, and secondly on the basis of the yield forecasts of the duration and credit-FIFA Asset

Management Regulations.

The year 2012 will also be remembered for volatile markets given the continuing

Government bonds of the highest quality were issued with negative yield, i.e. the investor paid to hold these securities, e.g. Swiss and German government bonds;The overall yield level was very low again.

The investment guidelines for the portfolio are designed to secure the preservation of FIFA’s assets and therefore, the yield expectation in such an environment is rather low. However, due to a shortage of USD in the interbank market, FIFA was able to

of the portfolio.

The implementation of the benchmark continued as planned and will continue

Overall, in 2012 FIFA again managed to increase the value of its portfolio and thereby contributed to the strengthening of its asset basis.

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Details on current investment portfolio

13%Other banks/securities

27%Swiss cantonal bank deposits(with government guarantee)

39%System-relevant banks

13%Government securities

8%Securities with government guarantee100% = USD 1,521 million

10

30

40

50

60

70

80

90

100

20

Liquidity

100% = USD 1,877 million

Strategy

Range

Asset management strategy and current status

Special Topics

40

FIFA Club Protection Programme

In May 2012, the 62nd Congress in Budapest approved the FIFA Club Protection Programme on behalf of the member associations.

The aim of this programme is to help FIFA, the confederations, member associations and clubs with their rights and obligations according to the FIFA Regulations on the Status and Transfer of Players, which state that clubs are obliged to release their players for senior men’s representative “A” team matches on dates listed in the international match calendar.

Under the FIFA Club Protection Programme, clubs will be compensated if their players are injured while on duty with senior men’s representative “A” teams for matches listed in the international match calendar for the period between 1 September 2012 and 31 December 2014.

During the release period for such international “A” matches, football players may suffer bodily injuries caused by accidents. As a consequence, a football player can suffer a temporary total disablement that prevents him from participating in his football club’s matches. However, the football club still has an obligation to pay the football player’s salary based on the employment contract. Since the football player cannot work for the football club during a temporary total disablement, FIFA has decided to provide compensation for the losses suffered by the football club during the period that the football player is temporarily totally disabled.

foster the relationship between clubs and national teams.

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FIFA Club Protection ProgrammeProgramme provider FIFA

Professional football club for which the injured player is contracted to play

Covered persons Professional football players whilst on international duty

Covered risk An injury which renders a player totally unable to carry out his profession on a temporary basis (temporary total disablement)

Covered interest Contracted salary payments from a club to a football player

Covered matches Cover applies to all selected players of senior men’s “A“ representative teams

international match calendar

Geographical limit Worldwide

Waiting period/excess 28 days for each and every loss

Compensation amount as his employer in weekly or monthly instalments, including mandatory social security charges, as stipulated in writing, but excluding any additional bonuses, appearance fees, expenses, performance payments and/or services of a different kind

20,548 per day

365 days

Maximum amount per claim EUR 7,500,000

Terms and conditions FIFA Club Protection Programme Technical Bulletin available on FIFA.com

Key facts

Annexe 2012 05

Griedge Mbock Bathy of France heads the ball

clear during the FIFA U-17 Women‘s World Cup

between France and Korea DPR at the

Annexe 2012

44

according to International Financial

47

48

49

50

51

52

52

52

54

54

56

56

56

57

57

57

58

58

59

59

59

Auditor’s report 96 98

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60

61

61

61

62

62

64

64

65

66

66

66

67

69

69

72

72

76

77

77

78

79

79

79

80

81

82

82

84

85

Annexe 2012

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86

86

91

92

92

92

94

95


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in TUSD 2012 2011

1

2

4

5

1,018,617 988,044

FIFA World Cup™ expenses 6

6 0

6

–569,744 –588,602

448,873 399,442

7

8

9

Exploitation of rights 10

Personnel expenses 11

19–20

12

Taxes and duties 15

76,961 28,551

Financial expenses 14

88,882 35,962

0 0

Annexe 2012

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Consolidated balance sheet

in TUSD

16

17

27

Financial assets 21

18

2,174,980 2,050,088

19

Intangible assets 20 0 542

27

Financial assets 21

507,868 277,683

2,682,848 2,327,771

Payables 22

Tax liabilities

27

1,167,320 896,553

27

24

137,089 138,327

1,304,409 1,034,880

Association capital 25

27 –275

–69 –89

25

1,378,439 1,292,891

2,682,848 2,327,771


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in TUSD 2012 2011

Net result for the year

19–20

Taxes and duties 15

–989

24

Taxes and duties paid

218,480 53,315

19

21

21 606

43,508 –801,497

Interest paid 14

–563 –432

261,425 –748,614

16 859,071 1,609,436

16 1,125,366 859,071

Annexe 2012

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in TUSD

4,104 26,338 1,249,835 –141 1,280,136

0 0 0

0 0 0

0 0 0 52 52

0 –23,259 0 52 –23,207

Net result for the year 0 0 0

0 –23,259 35,962 52 12,755

4,104 3,079 1,285,797 –89 1,292,891

in TUSD

4,104 3,079 1,285,797 –89 1,292,891

0 0 0

0 0 0

0 0 0 20 20

0 –3,354 0 20 –3,334

Net result for the year 0 0 0

0 –3,354 88,882 20 85,548

4,104 –275 1,374,679 –69 1,378,439


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in TUSD 2012 2011

20 52

–3,334 –23,207

Net result for the year

85,548 12,755

Annexe 2012

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Notes to the consolidated

Accounting policies

A

B Basis of presentation


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C Basis of consolidation

D Foreign currency

Annexe 2012

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CHF

EUR

GBP

E

F

Marketing rights Licensing rights Hospitality rights


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G

H

F

Goal

I


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K Taxes and duties

L

C

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M

N Hedging


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O

P

Q Intangible assets

10 years

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R


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S

T

U

Annexe 2012

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V

W


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X

Y

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Notes to the consolidated income statement

1 Revenue from television broadcasting rights

in TUSD 2012 2011

Revenue from television broadcasting rights – FIFA World Cup™

– Europe 287,685 281,144

– Asia and North Africa 126,459 107,054

– South and Central America 83,025 83,025

– North America and the Caribbean 61,229 61,159

– Rest of the world 6,498 9,909

– Other revenues 591 376

– Sales commission –12,090 –5,939

Total revenue from television broadcasting rights – FIFA World Cup™ 553,397 536,728

Other FIFA events 7,455 13,558

Total revenue from television broadcasting rights 560,852 550,286

The accumulated revenue from television broadcasting rights recognised through the percentage-of-completion method (excluding hedge accounting effects, other revenues and sales commission) for the

A substantial part of the income from television broadcasting rights is denominated in EUR. The majority of the contractually agreed revenue in currencies other than USD is hedged. The revenue is increased by

Sales commissionThe broadcasting rights in certain countries, especially in Asia, are sold in cooperation with agencies.

Other FIFA eventsThe revenue from the television broadcasting rights for other FIFA events includes the revenue from the sale of television broadcasting rights and services offered to the broadcasters in connection with the FIFA U-17 Women’s World Cup Azerbaijan 2012, the FIFA U-20 Women’s World Cup Japan 2012 and the FIFA Futsal World Cup Thailand 2012.


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2 Revenue from marketing rights

in TUSD 2012 2011

Revenue from marketing rights – FIFA World Cup™

– FIFA Partners 177,125 177,125

– FIFA World Cup Sponsors 130,553 130,787

– National Supporters 43,327 28,590

– FIFA Fan Fest™ 6,981 0

– Value-in-kind transactions 12,775 14,983

– Sales commission –4,015 –3,579

Total revenue from marketing rights – FIFA World Cup™ 366,746 347,906


Total revenue from marketing rights 370,099 381,245

The accumulated revenue recognised through the percentage-of-completion method (excluding hedge

invoiced from marketing rights amounts to TUSD 785,727.

Other FIFA eventsThe revenue from other FIFA events includes National Supporter payments in connection with the FIFA U-17 Women’s World Cup Azerbaijan 2012, the FIFA U-20 Women’s World Cup Japan 2012 and the FIFA Futsal World Cup Thailand 2012. The majority of these payments are transferred to the Local Organising Committees. The relevant costs are shown as event-related expenses (Note 6).

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3 Revenue from licensing rights

in TUSD 2012 2011

FIFA World Cup™ 18,141 10,231


Sales commission –333 0

Total revenue from licensing rights 23,061 12,475

The accumulated revenue from licensing rights for the 2014 FIFA World Cup Brazil™ recognised for the period 1 January 2011 to 31 December 2012 amounts to TUSD 28,372. The accumulated amount invoiced by 31 December 2012 totals TUSD 33,773.

4 Revenue from hospitality rights

in TUSD 2012 2011

FIFA World Cup™ 12,000 15,000

Other FIFA events 0 111

Total revenue from hospitality rights 12,000 15,111

The hospitality rights for the 2014 FIFA World Cup Brazil™ have been granted to MATCH Hospitality AG

5 Other event-related revenue

in TUSD 2012 2011

Revenue from the FIFA Club World Cup 25,400 26,000

Revenue from the Olympic Football Tournaments London 2012 22,412 0

2,481 1,849

2,499 2,062

Various event-related revenue –187 –984

Total other event-related revenue 52,605 28,927

FIFA organised the Olympic Football Tournaments London 2012. FIFA received a contribution of TUSD 22,412 from the International Olympic Committee.


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6 Event-related expenses

in TUSD 2012 2011

FIFA World Cup™ 448,339 427,944

FIFA Club Protection Programme 18,368 0


Total event-related expenses 569,744 588,602

Expenses related to the 2014 FIFA World Cup™

in TUSD 2012 2011

11,159 10,823

Contributions to the LOC 35,591 58,050

Ticketing and accommodation services/IT solution 14,960 23,046

Event marketing rights and TV production 35,968 23,975

Other 20,105 11,187

Event-related expenses – accrued 330,556 300,863

Total expenses related to the 2014 FIFA World Cup™ 448,339 427,944

The accumulated expenses recognised in connection with the 2014 FIFA World Cup Brazil™ in the period 1 January 2011 to 31 December 2012 amount to USD 876.3 million. The accumulated expenses incurred up to 31 December 2012 amount to USD 237.5 million. Part of the expenses are incurred as value-in-kind transactions.

™ Organising Committee

Accounting estimates and judgmentsExpenses related to the 2014 FIFA World Cup Brazil™ are recognised based on the stage of completion of the event preparation. Event-related expenses for the whole four-year period must be estimated in order to calculate the total for the given stage of completion. This is achieved by regular, systematic

estimate for the event. The recognition of expenses is adjusted accordingly. However, the overall cost estimate at a certain stage inherently includes an estimation uncertainty.

Annexe 2012

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FIFA Club Protection ProgrammeUnder the FIFA Club Protection Programme, clubs will be compensated for injuries due to an accident sustained by their players while on duty with senior men’s representative “A” teams for matches on dates listed in the international match calendar for the period between 1 September 2012 and 31 December 2014. FIFA has decided to provide compensation up to a maximum amount for losses incurred by the football club during the period that the football player is temporarily totally disabled. Costs for the FIFA Club Protection Programme are costs for FIFA and are recognised in the year they are incurred.

Expenses related to other FIFA events

in TUSD 2012 2011

FIFA Club World Cup Japan 2012 24,015 0

FIFA U-20 Women's World Cup Japan 2012 19,315 0

FIFA U-17 Women's World Cup Azerbaijan 2012 18,161 0

Olympic Football Tournaments London 2012 16,442 0

FIFA Futsal World Cup Thailand 2012 11,654 0

FIFA Women’s World Cup Germany 2011™ –89 70,385

FIFA Club World Cup Japan 2011 331 23,538

FIFA U-20 World Cup Colombia 2011 –113 23,166

FIFA U-17 World Cup Mexico 2011 118 20,981

FIFA Beach Soccer World Cup Ravenna/Italy 2011 –16 6,084

2010 FIFA World Cup South Africa™ 424 3,667

Youth Olympic Football Tournaments Singapore 2010 0 56

FIFA U-17 Women’s World Cup Trinidad & Tobago 2010 0 –37

FIFA U-20 Women’s World Cup Germany 2010 0 –39

FIFA Club World Cup UAE 2010 0 –319

Blue Stars/FIFA Youth Cup 1,289 1,423

Other events 11,506 11,753

Total expenses related to other FIFA events 103,037 160,658

The expenses for the other FIFA events are recognised in the year when the event takes place. The

of the expenses are incurred as value-in-kind transactions.

Costs related to the FIFA U-17 Women’s World Cup Azerbaijan 2012, the FIFA U-20 Women’s World Cup Japan 2012 and the FIFA Futsal World Cup Thailand 2012 include payments from National Supporters which were transferred to the Local Organising Committees (see also Note 2).


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7 Other operating income

in TUSD 2012 2011

Quality Programme 12,794 14,637

3,142 3,177

Brand licensing 34,067 25,556

Penalties/appeals from friendly matches 14 41

Rental income 1,013 1,380

Match levies from friendly matches 4,259 3,841

Other 3,557 3,724

Total other operating income 58,846 52,356

Quality Programme contains the revenue in connection with the test programmes for footballs and football turf. Brand licensing relates to licences granted to use the brand “FIFA”.

8 Development-related expenses

in TUSD 2012 2011

Financial Assistance Programme (FAP) – member associations 53,003 53,218

Financial Assistance Programme (FAP) – confederations 15,000 17,500

Confederation development programmes 15,000 15,000

Goal Programme 28,672 30,687

PERFORMANCE 17,772 9,218

Football for Hope 8,770 5,613

Refereeing Assistance Programme (RAP) 8,336 10,218

Football for Health (F-MARC) 5,804 3,293

Education 5,317 5,429

Women’s football 3,195 4,261

Solidarity projects 2,211 6,300

Win in ... projects 165 0

Win in Africa with Africa 14 6

Other projects 14,295 22,157

Total development-related expenses 177,554 182,900

Annexe 2012

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FAP

technical infrastructure (see accounting policy H. Development-related expenses). FIFA grants this

Facilitate the recruitment, training and remuneration of administrative and technical staff employed

Provide basic and further training for member association members, as well as others seconded to

every year. Additionally, FIFA arranges a central audit of 21 member associations and one confederation

compliance with the FAP Regulations.

USD 18.6 million).

Confederation development programmes

USD 2.5 million per year. The use of these funds must be in compliance with the FAP Regulations. In addition, this programme is also subject to local and central audits as described above.

Goal ProgrammeGoal Goal offers funding for tailor-made projects to meet the individual needs of the member associations in the following

Youth football – training youth team coaches, regional and national youth training centres and

Infrastructure – the renovation and construction of football pitches, physical training and tuition


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2012, funds committed but not yet paid out to Goal

PERFORMANCEThe main objective of the programme is to strengthen and enhance football leadership and management systems, enabling the member associations to better organise, professionalise and commercialise their

Refereeing Assistance Programme (RAP)The Refereeing Assistance Programme includes several programmes to support the education of referees, for example through various seminars and courses.

Solidarity projects

the condition that they invested in youth football. In addition, FIFA granted USD 300,000 to the member association of Madagascar for renovation of their football pitches.

Football for HopeFootball for Hope is a social responsibility programme which uses the power of the game for social development. Part of Football for Hope is the 20 Centres for 2010 initiative related to the 2010 FIFA World Cup South Africa™. Its aim is to create 20 Football for Hope Centres to promote public health, education and football in disadvantaged communities across Africa.

Education FIFA supports the International Centre for Sports Studies (CIES) at the University of Neuchâtel and the

Women’s footballIn 2012, various courses and seminars were organised to improve the game.

Football for Health (F-MARC)

control and the “FIFA 11 for Health” programme.

Annexe 2012

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9 Football governance

in TUSD 2012 2011

Committees and Congress 32,089 31,067

Legal matters 20,608 20,826

Total football governance 52,697 51,893

The costs for committees and the Congress comprise the costs incurred in connection with the 62nd FIFA Congress in Budapest which took place in May 2012, plus the costs of the meetings of more than 25 standing committees and three FIFA judicial bodies (Disciplinary Committee, Appeal Committee and Ethics Committee). The cost for travel and accommodation of the committee members as well as of the

are paid by FIFA.

10 Exploitation of rights

in TUSD 2012 2011

Marketing 1,920 2,593

Broadcasting and media rights 9,445 10,249

Licensing 1,655 2,332

Total exploitation of rights 13,020 15,174

commercialisation of marketing and broadcasting rights.


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11 Personnel expenses

in TUSD 2012 2011

Wages and salaries 70,799 67,344

13,940 13,789

1,630 1,918

Other 4,280 5,886

Total personnel expenses 90,649 88,937

The pension plan for FIFA employees is funded by employee and employer contributions. Since the plan

in TUSD 2012 2011

103,594 87,370

Current service cost 11,444 11,046

Interest on obligations 2,342 2,378

Actuarial loss 14,359 5,408

–377 –1,680

Foreign exchange effect 3,829 –928

135,191 103,594

Annexe 2012

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Change in fair value of plan assets

in TUSD 2012 2011

Fair value of plan assets at beginning of year 91,772 81,064

Expected return on plan assets 2,213 2,334

Employer contribution 6,346 7,382

Employees’ contribution 2,455 2,578

–377 –1,680

Actuarial gain on plan assets 1,608 990

Foreign exchange effect 3,082 –896

Fair value of plan assets at end of year 107,099 91,772

The actual annual return on plan assets for the year ending 31 December 2012 amounted to TUSD 3,821

Amount recognised in the balance sheet

in TUSD 2012 2011

135,191 103,594

Fair value of plan assets –107,099 –91,772

28,092 11,822

Unrecognised net actuarial (loss)/gain –24,113 –10,746

Net liability 3,979 1,076

The net liability is included in and presented as part of the accrued expenses.

The expected contribution to be paid into the plan for 2013 is TUSD 6,635.


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Components of pension expenses

in TUSD 2012 2011

Current service cost 11,444 11,046

Interest on obligations 2,342 2,378

Net actuarial loss recognised in the year 29 0

Expected return on plan assets –2,213 –2,334

Net periodic pension cost 11,602 11,090

Employees’ contribution –2,455 –2,578

Total pension expenses 9,147 8,512

Historical information

in TUSD 2012 2011 2010 2009 2008

135,191 103,594 87,370 64,414 55,225

Fair value of plan assets –107,099 –91,772 –81,064 –65,324 –56,206

plan 28,092 11,822 6,306 –910 –981

Change in assumptions in plan liabilities 13,662 4,270 5,091 –2,415 4,977

Experience loss on plan liabilities 1,057 1,138 440 2,667 779

Experience loss/(gain) on plan assets –1,648 –990 338 339 691

(gain) 13,071 4,418 5,869 591 6,447

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Principal actuarial assumptions

31 Dec 2012 31 Dec 2011

Discount rate 1.75% 2.25%

Expected rate of return on plan assets 1.90% 2.40%

Future salary increases 2.00% 2.00%

Future pension increases 0.50% 0.50%

All assets are invested through an insurance contract, therefore the plan assets cannot be split into different categories.

Accounting estimates and judgmentsThe rates and parameters applied above are based on past experiences. Future developments in capital

calculation of pension obligations.

12 Other operating expenses

in TUSD 2012 2011

Information technology 9,183 9,750

Building and maintenance 12,144 10,045

Communications 23,532 22,277

Other 20,486 24,223

Total other operating expenses 65,345 66,295


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13 Financial income

in TUSD 2012 2011

6,558 6,046

Total interest income 6,558 6,046

Foreign currency gains 76,521 20,200

Gains on currency derivatives 0 1,509

Total foreign currency gains 76,521 21,709

582 277

Income from held-to-maturity investments 5,158 1,809

5,740 2,086

88,819 29,841

held in foreign currency. The foreign exchange risk of these investments has been hedged using swaps.

14 Financial expenses

in TUSD 2012 2011

Interest expenses 563 432

Total interest expenses 563 432

Foreign currency loss 76,335 21,998

Total foreign currency loss 76,335 21,998

76,898 22,430

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15 Taxes and duties

in TUSD 2012 2011

Taxes and duties 17,052 4,866

Total taxes and duties 17,052 4,866

FIFA is taxed according to the Swiss taxation rules for associations. Pursuant to these taxation rules, the

development of football, the long-term perspective of development projects, the four-year accounting

also Note 26 Financial risk management). FIFA’s restricted reserves are reviewed on a regular basis to

reserves.

FIFA’s subsidiaries are taxed based on the applicable local tax laws.

This position includes all non-recoverable taxes and duties borne by FIFA or its subsidiaries. The majority of taxes and duties are paid to tax authorities in Switzerland.

There are no tax loss carry-forwards.


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Notes to the consolidated balance sheet

16

in TUSD 31 Dec 2012

Weighted average

interest rate 31 Dec 2011

Weighted average

interest rate

Cash on hand, post and bank accounts 847,256 708,521

with maturities of up to 3 months 278,110 150,550

Total cash and cash equivalents 1,125,366 0.34% 859,071 0.35%

A bank account in the amount of is pledged to cover a bank guarantee towards a third party.

17 Receivables

in TUSD 31 Dec 2012 31 Dec 2011

Receivables from exploitation of rights

– Due from third parties 244,617 250,100

– Provisions for bad debts –2,295 –3,372

Total receivables from exploitation of rights 242,322 246,728

Other receivables

– Due from member associations and confederations 11,866 8,281

– Due from related parties 208 302

– Due from third parties 22,495 29,900

– Provisions for bad debts –1,585 0

Total other receivables 32,984 38,483

Short-term loans

– Due from related parties 0 5,175

Total short-term loans 0 5,175

Total receivables, net 275,306 290,386

The majority of the open receivables relates to contractual payments from broadcasters and sponsors for the 2014 FIFA World Cup™ which are due in January 2013.

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Provisions for bad debts

in TUSD 2012 2011

Provisions for bad debts

Balance as at 1 January 3,372 3,101

Use –275 –236

Additions 786 507

Foreign exchange effect –3 0

Balance as at 31 December 3,880 3,372

Ageing structure of receivables

in TUSD 31 Dec 2012 31 Dec 2011

Receivables

Not due 264,016 274,680

Overdue – less than 30 days 2,781 13,204

Overdue – less than 60 days 7,722 253

Overdue – more than 60 days 4,667 5,621

Total receivables 279,186 293,758

18 Prepaid expenses and accrued income

in TUSD Note 31 Dec 2012 31 Dec 2011

Accrued income

– 2014 FIFA World Cup™ 1–4 239,464 123,716

– Other FIFA events 1–5 5,400 6,000

– Other accrued income 9,400 1,580

Total accrued income 254,264 131,296

Prepaid expenses

– 2018 FIFA World Cup™ 21,750 0

– Other FIFA events 6 14,600 10,609

– Development programmes 8 3,068 2,565

– Other prepaid expenses 9,441 6,953

Total prepaid expenses 48,859 20,127

Total prepaid expenses and accrued income 303,123 151,423


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19

in TUSDOperational

buildings Land

and other

equipment Total

Cost

Balance as at 1 January 2011 225,865 15,124 22,743 263,732

1,749 0 234 1,983

Balance as at 31 December 2011 227,614 15,124 22,977 265,715

308 0 901 1,209

Foreign exchange effects 0 0 14 14

Disposals 0 0 –1,434 –1,434

Balance as at 31 December 2012 227,922 15,124 22,458 265,504

Accumulated depreciation

Balance as at 1 January 2011 61,256 0 13,232 74,488

Depreciation 11,442 0 1,198 12,640

Balance as at 31 December 2011 72,698 0 14,430 87,128

Depreciation 12,907 0 992 13,899

Foreign exchange effects 0 0 10 10

Disposals 0 0 –1,434 –1,434

Balance as at 31 December 2012 85,605 0 13,998 99,603

Net carrying amount

As at 1 January 2011 164,609 15,124 9,511 189,244

As at 31 December 2011 154,916 15,124 8,547 178,587

As at 31 December 2012 142,317 15,124 8,460 165,901

The column “operational buildings” includes the Home of FIFA, FIFA House and two other buildings in Zurich.

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20 Intangible assets

Film archive

in TUSD 2012 2011

Cost


0 0


Accumulated amortisation


Amortisation 542 542


Net carrying amount

As at 1 January 542 1,084

As at 31 December 0 542

21 Financial assets

in TUSD 31 Dec 2012 31 Dec 2011

Debt securities 250,868 284,558

Fixed-term deposits with maturities of over 3 months 214,992 451,640

465,860 736,198

Debt securities 312,991 96,314

1,426 1,094

Other 20,562 0

334,979 97,408

800,839 833,606

and long-term bonds.


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22 Payables

in TUSD 31 Dec 2012 31 Dec 2011

– Due to member associations and confederations 17,809 52,113

– Due to related parties 1,907 1,616

– Due to third parties 47,027 34,562

Total payables 66,743 88,291

23 Accrued expenses and deferred income

in TUSD Note 31 Dec 2012 31 Dec 2011

Accrued expenses

– 2014 FIFA World Cup™ 6 638,756 302,898

– Other FIFA events 6 20,106 14,286

– Development programmes 8 120,691 126,060

Total accrued expenses 779,553 443,244

Deferred income

– 2014 FIFA World Cup™ 1–3 202,002 236,523

– Other FIFA events 1–3 16,210 8,124

Total deferred income 218,212 244,647

Other accrued expenses and deferred income 83,816 118,022

Total accrued expenses and deferred income – current 1,081,581 805,913

Deferred income – non-current

– 2018 FIFA World Cup™ 1–3 119,018 118,267

Total deferred income – non-current 119,018 118,267

Total accrued expenses and deferred income 1,200,599 924,180

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24 Provisions

in TUSD 2012 2011


Provisions made during the year 863 866

Provisions used during the year –291 –266

Adjustments –216 –114

0 –3,267


The provisions cover the future costs of the pension plan for members of the FIFA Executive Committee. An annual pension payment will be made to all long-serving FIFA Executive Committee members retiring. Under this retirement plan, Executive Committee members receive pension payments if they have served as a member of the committee for eight or more years. The pension is paid for up to a maximum of the number of years that the member served on the committee. Only the FIFA Executive Committee members


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25 Reserves

Association capitalThe association capital is CHF 5 million.

Hedging reserveThe hedging reserve comprises the effective portion of the cumulative net change in the fair value of

Restricted reservesPursuant to articles 2 and 73 of the FIFA Statutes, FIFA has to balance out revenue and expenditure over

The purpose of the reserves is to protect FIFA against risks and unforeseen events, in particular in relation to the FIFA World Cup™ ™, which takes place only every four years, needs to be considered, since the FIFA World Cup™ is FIFA’s main revenue source.

programmes and other FIFA events.

The use of the reserves is restricted to FIFA’s statutory duties such as the organisation of international competitions, in particular the FIFA World Cup™, and implementation of football-related development programmes.

Capital managementFIFA was established in the legal form of an association pursuant to articles 60ff. of the Swiss Civil Code. Pursuant to article 2 of its Statutes, FIFA’s objective is to improve the game of football constantly and

organisation and is obliged to spend its results, reserves and funds for this purpose. As FIFA is an association, no dividends are paid.

In the event of the dissolution of FIFA, its funds shall not be distributed, but transferred to the supreme

edged securities until the re-establishment of the federation.

FIFA’s goal is to further increase reserves until the end of the 2011-2014 cycle by the amount of

Annexe 2012

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Other disclosures

26 Financial risk management

normal operations.

Credit riskIn line with FIFA’s marketing and TV strategy, FIFA sold the television broadcasting rights in the key

the 2006 FIFA World Cup™, the rights were sold in packages to intermediaries.

The revenue from television and marketing rights is received from large multinational companies and public broadcasters. Part of the outstanding revenue is also covered by bank guarantees. Additionally, the contracts include a default clause, whereby the contract terminates as soon as one party is in default. In

contributions received. FIFA is also entitled to replace terminated contracts with new marketing or broadcasting agreements.

believes that this scenario is very unlikely to occur.

Fixed-income investments with residual terms to maturity of 12 months or less are only executed with borrowers with a short-term rating of “A-3” or higher. Investments in bonds are only executed in listed,

executed only with counterparties with high credit ratings.


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Interest rate risk

due to possible changes in interest rates. This interest rate risk is assessed as low.

Foreign currency risk

Exposure to foreign currency exchange rates arises from transactions denominated in currencies other than USD, especially in EUR, CHF, GBP and BRL.

denominated in EUR, GBP or CHF. On the other side, FIFA has substantial costs, especially employee costs

are expected in EUR or GBP. A substantial part of the costs in connection with the 2014 FIFA World Cup Brazil™ are denominated in BRL. The Controlling & Strategic Planning Department regularly forecasts the

If the EUR had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 39.3 million higher (lower). If the CHF had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 3.6 million higher (lower). If the GBP had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 7.2 million higher (lower). If the BRL had gained (lost) 10% against the USD as at 31 December 2012, the net result would have been USD 10 million higher (lower).

losses.

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88

Positions exposed to foreign currency risk as at 31 December 2012

in thousands CHF EUR BRL

41,549 111,673 273,405

Receivables 28,787 55,465 21,759

Prepaid expenses and accrued income 0 0 1,035

Exposure from applying percentage-of-completion method 3,025 163,262 42,146

Total assets in foreign currency 73,361 330,400 338,345

Payables 21,501 1,764 214

Accrued expenses and deferred income 34 0 0

Exposure from applying percentage-of-completion method 18,885 31,529 133,406

Total liabilities in foreign currency 40,420 33,293 133,620

Net exposure in foreign currency 32,941 297,107 204,725

Liquidity risk

short-term credit facilities in the amount of CHF 158 million, guaranteed by its own properties, which

31 December 2012 31 December 2011

in TUSD 90 days1 year or

lessMore than

a year 90 days1 year or

lessMore than

a year

Payables – associations and confederations 0 17,809 0 0 52,113 0

Payables – related parties 1,907 0 0 1,616 0 0

Payables – third parties 47,027 0 0 34,562 0 0

Derivative 0 17,872 3,680 0 1,322 6,025

Total 48,934 35,681 3,680 36,178 53,435 6,025

Generally, the accounts are used to settle new invoices to and from associations and confederations. In accordance with the FIFA Statutes, payables and receivables can be netted.


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Cancellation risk

abandonment of the FIFA World Cup™, FIFA would run the risk of some of the revenues already received and accounted for having to be repaid.

At its meeting on 24 October 2008, the Executive Committee decided to insure against the risk of postponement and/or relocation of the FIFA World Cups™. The risks covered include natural catastrophe, accidents, turmoil, war, acts of terrorism, non-participation of teams and epidemic diseases. The cancellation of the event is not covered by the insurance and would need to be covered by FIFA’s own

For the 2014 FIFA World Cup™ and the 2018 FIFA World Cup™, the maximum insurance volume is


in TUSDLoans and receivables

Financial assets at fair value through

P&L

Financial assets held to maturity

Derivatives used for hedging activities

Loans and receivables

Financial assets at fair value through

P&L

Financial assets held to maturity


Cash and cash

1,125,366 0 0 0 859,071 0 0 0

Receivables 275,306 0 0 0 290,386 0 0 0

Derivative

assets 0 2,352 0 9,961 0 0 0 14,156

Financial assets 235,554 1,626 563,659 451,640 31,279 350,687 0

Accrued income 14,800 0 0 0 6,000 0 0 0

Total 1,651,026 3,978 563,659 9,961 1,607,097 31,279 350,687 14,156

Annexe 2012

90


in TUSD

Financial liabilities

at fair value through P&L

Financial liabilities at amortised

cost


Financial liabilities

at fair value through P&L

Financial liabilities at amortised

cost


Payables 0 66,743 0 0 88,291 0

Derivative 11,317 0 10,235 0 0 7,347

Accrued expenses 0 779,553 0 0 443,244 0

Total 11,317 846,296 10,235 0 531,535 7,347

Due to their short maturity, the carrying amount of the payables approximates the fair value.

Fair value disclosure

are not traded in active markets and the fair value on the balance sheet date is determined by using


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27

FIFA uses foreign currency derivatives and forwards to hedge the exposure on revenue from TV rights denominated in EUR or GBP. Depending on the expected needs based on the forecast, the revenue is

Additionally, FIFA hedges its exposure in BRL for future costs in connection with the 2014 FIFA World Cup Brazil™ and in RUB for future costs in connection with the 2018 FIFA World Cup Russia™. All hedging transactions are in line with the strategy decided by the FIFA Executive Committee.

FIFA uses hedge accounting in accordance with IFRS to reduce the volatility of earnings and event-related

highly effective, as the amount, the currency and the maturity of the underlying and hedging transaction are identical.

As of 31 December 2012, FIFA has hedged part of the broadcasting rights in connection with the 2014 FIFA World Cup Brazil™ in EUR in the amount of EUR 263.4 million, in GBP in the amount of

FIFA World Cup™ in Russia.

hedged using swaps. The total notional value of the outstanding swaps as at 31 December 2012 amount


in TUSDPositive

fair valueNegative fair value

Positivefair value

Negativefair value

– effective in the next year 2,973 9,140 13,010 1,322

– effective in the following years 6,988 1,095 1,146 6,025

– effective in the next year 2,352 8,732 0 0

– effective in the following years 0 2,585 0 0

Total 12,313 21,552 14,156 7,347

– recognised in hedging reserve 0 275 3,079 0

Annexe 2012

92

The effective part of the hedge transactions has been recognised in the hedging reserve. As at

hedging instruments between the beginning of the year and the settlement date.

28 Legal matters and contingent liabilities

FIFA is a defendant in various court cases. Based on the legal advice received, the management is of the

29 Capital commitments

As at 31 December 2012, FIFA has no capital commitments.

30 Operating leases

in TUSD 31 Dec 2012 31 Dec 2011

Less than 1 year 28 335

1–5 years 643 41

Total 671 376

None of the leases include contingent rentals.

In 2012, a total amount of TUSD 567 statement for operating leases.


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31 Related-party transactions

Identity of related parties

confederations. Additionally, from FIFA’s perspective, the following persons are regarded as related

personnel.

Each member of FIFA must pay an annual subscription fee, currently CHF 300, and for every international match – including friendly matches, tournaments and all the matches of the Olympic Football Tournaments – played between two international “A” teams, the member association of the country in which the match is being played pays a share of the gross receipts from the match to FIFA. Revenue from international

FIFA makes yearly contributions to the member associations and confederations (FAP, Goal Programme and other development programmes) to support their efforts in promoting and developing football in

FIFA organises the FIFA World Cup™ and other FIFA events. In connection with these competitions, FIFA

Committee Brazil.

FIFA paid USD 4.6 million to other related parties for rendering of services. The transactions were performed at arm’s length.

Annexe 2012

94

Key management personnelMembers of the Executive Committee, the Finance Committee and the FIFA management, in particular

32 Consolidated subsidiaries

Location of incorporation Activity

interest

2012

interest

2011

FIFA Travel GmbHZurich,

Switzerland Travel agency 100% 100%

Early Warning System GmbHZurich,

Switzerland Service company 95% 95%

FIFA Transfer Matching System GmbHZurich,

Switzerland Service company 95% 95%

FIFA Beach Soccer S.L.Barcelona,

SpainEvent

management 70% 70%

2010 FIFA World Cup Ticketing (Pty) LtdNasrec,

South Africa Ticket sales 100% 100%

FIFA World Cup South Africa (Pty) Ltd Nasrec,

South Africa Service company 100% 100%

FWC 2014 Assessoria LtdaRio de Janeiro,

Brazil No activity 95%

FIFA World Cup Brazil Assessoria LtdaRio de Janeiro,

Brazil Service company 100% 100%

FIFA Marketing & TV AGZurich,

Switzerland No activity 100% 100%

2014 FIFA World Cup Venda de Ingressos Ltda

Rio de Janeiro, Brazil Ticket sales 100% n/a

FIFA Ticketing AGZurich,

Switzerland Ticket sales 100% 100%


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33 Post-balance-sheet events

Annexe 2012

96

Report of the Statutory Auditor to the FIFA Congress

Internationale de Football Association (FIFA), which comprise the balance sheet, income statement, cash

47-95) for the year ended 31 December 2012.

FIFA Executive Committee’s ResponsibilityThe FIFA Executive Committee is responsible for the preparation and fair presentation of the consolidated

statements that are free from material misstatement, whether due to fraud or error. The FIFA Executive Committee is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

We conducted our audit in accordance with Swiss law and Swiss Auditing Standards as well as

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

whether due to fraud or error. In making those risk assessments, the auditor considers the internal

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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of

a basis for our audit opinion.

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Opinion

International Financial Reporting Standards (IFRS) and comply with Swiss law.

Report on Other Legal Requirements

(AOA) and independence (article 728 CO) and that there are no circumstances incompatible with our independence.

that an internal control system exists, which has been designed for the preparation of consolidated

KPMG AG

Roger Neininger Alex Fähndrich Licensed Audit Expert Licensed Audit Expert Auditor in Charge

Zurich, 21 March 2013

Annexe 2012

98

Audit and Compliance Committee report

to the FIFA Congress

In our function as the Audit and Compliance Committee of FIFA, we have assessed the consolidated

held on 10 August 2012, 11 October 2012 and 18 March 2013 in the presence of the Deputy Secretary General and the external auditors.

relevant documents and information necessary for our assessment.

compliance matters and monitored compliance as set out in the FIFA Organisation Regulations.

2012.

For the Audit and Compliance Committee

Domenico Scala Chairman

Zurich, 18 March 2013

Financial Report 2012Official publication of theFédération Internationale de Football Association

PublisherFédération Internationale de Football Association

President Secretary GeneralJoseph S. Blatter Jérôme Valcke

FIFA-Strasse 20, P.O. Box, 8044 Zurich, SwitzerlandTel.: +41-(0)43-222 7777, Fax: +41-(0)43-222 7878, www.FIFA.com

PhotosFIFA Archive, Fotoagentur Sven Simon, FIFA via Getty Images, Getty Images, Action Images

Graphic design/layoutSven Müller Design, 82319 Leutstetten/Munich, Germany

PrintingVogt-Schild Druck AG, 4552 Derendingen, Switzerland

The reproduction of articles – even partially – is prohibited unless permission has been sought from the editors and a reference is made to the source (copyright: FIFA).Permission to reproduce photos must be sought from the individual photo agencies concerned.

The FIFA logo is a registered trademark.

FIFA organisation chart

President

Executive Office of the President

Security

Secretary General

Competitions TV & Marketing

HR & Services TV

Marketing

Finance & Administration

Member Associations& Development

Com. & Public Affairs Legal Affairs

Committees

· Executive Committee · Emergency Committee

FIFA standing committees · Finance Committee · Audit and Compliance Committee · Organising Committee for the FIFA World Cup™ · Bureau 2014 FIFA World Cup Brazil™ · Organising Committee for the FIFA Confederations Cup

· Organising Committee for the Olympic Football Tournaments

· Organising Committee for the FIFA U-20 World Cup · Organising Committee for the FIFA U-17 World Cup · Committee for Women’s Football and the FIFA Women’s World Cup™

· Organising Committee for the FIFA U-20 Women‘s World Cup

· Organising Committee for the FIFA U-17 Women‘s World Cup

· Futsal Committee · Beach Soccer Committee · Committee for Club Football · Organising Committee for the FIFA Club World Cup

· Referees Committee · Football Committee · Medical Committee

· Players‘ Status Committee · Legal Committee · Committee for Fair Play and Social Responsibility · Media Committee · Associations Committee · Marketing and TV Committee · Strategic Committee · Development Committee · Stadium and Security Committee

FIFA judicial bodies · Disciplinary Committee · Appeal Committee · Ethics Committee

Other FIFA bodies · FIFA Medical Assessment and Research Centre · Dispute Resolution Chamber · Independent Governance Committee

Member associationsA

Afghanistan

Albania

Algeria

American Samoa

Andorra

Angola

Anguilla

Antigua and Barbuda

Argentina

Armenia

Aruba

Australia

Austria

Azerbaijan

B

Bahamas

Bahrain

Bangladesh

Barbados

Belarus

Belgium

Belize

Benin

Bermuda

Bhutan

Bolivia

Bosnia-Herzegovina

Botswana

Brazil

British Virgin Islands

Brunei Darussalam

Bulgaria

Burkina Faso

Burundi

C

Cambodia

Cameroon

Canada

Cape Verde Islands

Cayman Islands

Central African Republic

Chad

Chile

China PR

Chinese Taipei

Colombia

Comoros

Congo

Congo DR

Cook Islands

Costa Rica

Côte d‘Ivoire

Croatia

Cuba

Curaçao

Cyprus

Czech Republic

D

Denmark

Djibouti

Dominica

Dominican Republic

E

Ecuador

Egypt

El Salvador

England

Equatorial Guinea

Eritrea

Estonia

Ethiopia

F

Faroe Islands

Fiji

Finland

France

G

Gabon

Gambia

Georgia

Germany

Ghana

Greece

Grenada

Guam

Guatemala

Guinea

Guinea-Bissau

Guyana

H

Haiti

Honduras

Hong Kong

Hungary

I

Iceland

India

Indonesia

Iran

Iraq

Republic of Ireland

Israel

Italy

J

Jamaica

Japan

Jordan

K

Kazakhstan

Kenya

Korea DPR

Korea Republic

Kuwait

Kyrgyzstan

L

Laos

Latvia

Lebanon

Lesotho

Liberia

Libya

Liechtenstein

Lithuania

Luxembourg

M

Macau

FYR Macedonia

Madagascar

Malawi

Malaysia

Maldives

Mali

Malta

Mauritania

Mauritius

Mexico

Moldova

Mongolia

Montenegro

Montserrat

Morocco

Mozambique

Myanmar

N

Namibia

Nepal

Netherlands

New Caledonia

New Zealand

Nicaragua

Niger

Nigeria

Northern Ireland

Norway

O

Oman

P

Pakistan

Palestine

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Poland

Portugal

Puerto Rico

Q

Qatar

R

Romania

Russia

Rwanda

S

Samoa

San Marino

São Tomé e Príncipe

Saudi Arabia

Scotland

Senegal

Serbia

Seychelles

Sierra Leone

Singapore

Slovakia

Slovenia

Solomon Islands

Somalia

South Africa

South Sudan

Spain

Sri Lanka

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Sudan

Suriname

Swaziland

Sweden

Switzerland

Syria

T

Tahiti

Tajikistan

Tanzania

Thailand

Timor-Leste

Togo

Tonga

Trinidad and Tobago

Tunisia

Turkey

Turkmenistan

Turks and Caicos Islands

U

Uganda

Ukraine

United Arab Emirates

Uruguay

US Virgin Islands

USA

Uzbekistan

V

Vanuatu

Venezuela

Vietnam

W

Wales

Y

Yemen

Z

Zambia

Zimbabwe

2012

Fédération Internationale de Football Association FIFA-Strasse 20 P.O. Box 8044 Zurich SwitzerlandTel.: +41-(0)43-222 7777 Fax: +41-(0)43-222 7878 www.FIFA.com

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