2025-08-31-accounts

THE ROYAL ACADEMY OF ARTS IA Company Limited by Guarantee) Registered Charity No. I l 25383 Registered Company No. 06298947 ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

Finance and Performance Committee Treasurer ex officio (Chair) Roger Hiorns RA Elect Maria Lisogorskaya, Assemble RA Philip Long OBE Alistair Summers Sally Tennant OBE	Exhibitions and Displays Committee Clare Woods RA (Chair) Alice Black (Deputy Chair) Gary Hume RA Suzy Klein Hew Locke OBE RA Charlotte Mullins Prof Dorothy Price FBA Eva Rothschild RA President ex officio Treasurer ex officio Keeper ex officio Secretary and Chief Executive ex officio
Secretary to the Committee: Carl Hitchcock (Director of Finance and Operations )	Secretary to the Committee: Idoya Beitia ( Head of Exhibitions) (Interim Secretary)
Audit and Risk Committee Alistair Summers (Chair) Sophie Carter Spencer de Grey CBE RA Anne Desmet RA Pesh Framjee Elle Todd	People and Remuneration Committee Tony Cohen (Chair) Caroline Anderson Kerstin Mogull Eric Parry RA Helen Sear RA
Secretary to the Committee: Carl Hitchcock (Director of Finance and Operations )	Secretary to the Committee: Simon Wallis OBE ( Secretary and Chief Executive)

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Streamlined Energy and Carbon Reporting (SECR) for 20 20 /2 1 to 202 4 /2 5 financial years:	Streamlined Energy and Carbon Reporting (SECR) for 20 20 /2 1 to 202 4 /2 5 financial years:
MEASURE 2024/25 2023/24 2022/23 2021/22 **2020/21 **
GREENHOUSE GAS EMISSIONS **(TCO2E) **	Scope 2 (electricity) 751 778 873 859 985
	Scope 1 (gas, fleet mileage, F - Gas) 638 729 733 636 834
	Total (Location - based) emissions 1,389 1,507 1,606 1,495 1,819
	Total (market - based) emissions 1,014 1,118 N/A N/A N/A
	kgCO2e/m 2 (location - based) kgCO2e/m 2 (market - based) 76 76 82 61 89 N/A 81 N/A 98 N/A
ENERGY CONSUMPTION (KWH)	Scope 2 (electricity) 4,242,448 4,474,562 4,430,675 4,144,798 4,303,791
	Scope 1 (gas, fleet mileage) 3,290,507 3,869,010 3,851,212 3,442,414 4,525,320
	Total 7,5 32,955 8,343,572 8,281,887 7,587,212 8,829,111
	kWh/m 2 411 454 451 413 481

Landfill (Tonnes)	-
Recycled(Tonnes)	135
Energy from waste(Tonnes)	13
Cost(£)	£58,755

Structure and Principles ✓Reviewed codes of conduct. ✓Revised Exhibitions and Displays Committee and Curatorial Advisory Group. Roles and Responsibilities ✓Further improvements to mandatory Council induction and trustee training. ✓Further competitive recruitment of external Council appointments (all three post holders have now been recruited through such a process). ✓Additional “Skills audits” and effectiveness reviews: Council; People and Remuneration Committee; Audit and Risk Committee. ✓Improved inductions for committee members and Chairs. ✓Implemented a formal "Scheme of Delegation" (matters reserved and delegated) from Council and related guidance on roles and responsibilities. Mechanics ✓Proactive management of conflicts of interest. ✓Agenda forward planning. ✓Expansion of dedicated board and committee administration software.

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The Royal Academy Schools Exhibitions and displays programme
Membership of Royal
Academicians
The RA Collection Learning programme
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Delivering a successful exhibition programme.	➢ Prioritising programming open slots in 2027/28. ➢ Recruitment of Artistic Director and vacant roles in curatorial team. ➢ Transformation plan, including sustainability target of 750,000 visitors annually, focusing criteria on commercial success as well as artistic merit and improved exhibition governance.
Successfully delivering the RA’s transformation.	➢ Interim Management Group driving forward the project. ➢ Detailed implementation plan with designated lead roles. ➢ Oversight and accountability incorporated into the RA governance structure and committee agendas.
Achieving financial sustainability.	➢ Transformation plan targeting £5.0m annual EBITDA. ➢ Cost saving and revenue improvement initiatives implemented, underway or planned. ➢ External finance facilities.
Staffing stability at the senior level and in key roles, including curatorial positions.	➢ Secretary and Chief Executive in position. Hiring is underway, including for four positions on the Senior Leadership Team. ➢ Interim Management Group is maintaining stability. ➢ People and Remuneration Committee and external advisors are providing support.
Cyber security.	➢ External review produced positive score and reassurance. ➢ Emergency response plan being updated and further refined.
Major fundraising.	➢ An ambitious campaign is underway, led by the Royal Academy Trust to support the RA.
Maintenance of the physical estate.	➢ Monthly compliance review with facilities management provider. ➢ Regular surveys, improved maintenance and targeted preventative maintenance. ➢ Plant replacement programme.

The Royal Academy of Arts Trustees, ReF For the year ended 31 August 2025 AUDITORS A reSO￿tion lo rtrappoinl Crowe UK LLP as the Royat Ac811etys audrtors wll be putto the forthcoming General ASSe￿￿ty. behdf of Rebecca Salter CBE PRA President and Chair ol Trustees Alists"ki Summers Tmstee The Ac&lemy of Arts Budington House Flccadllty London W1J OBO Page: 11

Independent Auditors, Report to the Trustees of The Royal Academy of Arts Opinion We have audiled the financial statements of The Royal Academy of Arts ( the charitable company ) and its subsidiaries I'the gioup") for the year ended 31 August 2025 which compiise the consolidated statement of financial activities, the balance sheets, the consolidated statement of cash flows, and notes lo the financial statements, including significant accounting policies. The financial reporting framework that has been applied in Iheir preparation is applicable law and United Kirbgdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally Accepted Accounting Practice). In OLJr opinion the financial statements.. give a trLJe and fair view ol the state ol the group's and the charitable company's affairs as al 31 AugLJSt 2025 and ol the group's income, receipts of endowments and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Acl 2006. Basis for opinion We conducted our audit in accordance wilh Inteinalional Standards on Auditing (UK) (ISAS IUK)) and applicable law. Our responsibilities under those standards are further described in the auditors, responsibilities for the audit of the financial slalements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the fir)ancial statements in the UK, includir)g the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe Ihal Ihe audit evidence we have obtained is suff icient and appropriate to provide a basis lor our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparalion of the financial statements is appropriate. Based or) the work we have performed, we have not identified any material uncertainties relating to events or conditions tha( individually or collectively, may cast significant doubt on the group s ability lo conlinue as a going concern for a peiiod of at least twelve months from when the financial statemenls are authorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going concern are described in Ihe relevant sections of this report. Other information The trustees are responsible for the other information contained withir) the annual report. The other information comprises the information included in the annual report, other than the financial statements and our audiloi's report Ihereon. Our opinion on Ihe linanci81 statements does not cover the olhei information and, except lo the extent otherwise explicitly stated in our repor( we do not express any form of aSSLJrance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially Inconsistent with the financial statements or our knowledge obtained In the audit or othepNise appears to be materially rnisstated. 11 we identify such material inconsistencies or apparent material misslalements, we are required lo determine whether this gives rise to a material misstatement in Ihe financial statements themselves. If, based on the work we have performed, we conclude Ihat there is a material misslalement of this other information, we are required lo report that fact We have nothing to report in this regard. Page.. 28

Independent Auditors, Report to the Trustees of The Royal Academy of Arts Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, repor( which includes the directors, report and the strategic report prepared for the purposes of company law, lor the financial year for which Ihe financial statements are prepared is consistent with the financial statements., and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceplion In light of Ihe knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have nol identified material misstatemenls in the strategic report or the directors, report included within the trustees, report. We have nothing to report in respect ol the following matters in relation lo which the Companies Act 2006 requires us to report to you il, in our opinion., adequate and proper accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Irustees, remuneration specified by law are not made,, or we have not received all the information and explanations we reqLJire for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 26, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal conlrol as the trustees determine is necessary to enable the preparation of financial statements Ihat are free from material misstatement whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going Concern and Ljsing the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditors, responsibilities for the audil of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audilors, report that includes our opinion, Reasonable assurance is a high level of assurance, but is not a guarantee that an audil conducted in accordance wilh ISAS (UK) will always detect a material misslatement when it exists. Misslatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence Ihe economic decisions of useis taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of deteding irregularities, including fraud and non-compliance with laws and regulalions are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors, report. Page.. 29

Independent Auditors, Report to the Trustees of The Royal Academy of Arts Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks ol material misstatement of the financial slalements from irregLJlarities, whether due to fraud or error, discussed these between our audit le￿ members. We then designed and performed audit procedures responsive to Ihose risks, including obtaining audil evidence sufficient and appropriate to provide a basis loi our opinion, We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operate, focusing on those laws and regulalions that have a direct effect on the determination of material amounts and disclosures in the financial statements, including linancial reporting legislation and the Charity SORP (FRS 109), General Data Protection Regulation (GDPR), anti-lraud, bribery and corruption legislation, health and safely legislation, employment legislation, and lax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related fir)ancial statemer)t Items. In addition, we considered provisions ol other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the group's ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-cornpliance with these laws and regulations to enquiry ol the Iruslees and olher management and inspection of regulalory and legal correspondence, if any. We also considered the opportunities and incentives that may exist within the group for fraud. We identified the greatest risk ol material impact on the financial statements from irregularities, including fraud, lo be within the timing of recognition of legacy major donation and grant income and management override of controls. Our audit procedures lo respond lo these risks included enquiries of management, internal audit, legal counsel and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample tesling on the posting of journals, reviewing regulatory correspondence with the Charity Commission, and reading minutes ol meetings ol those Charged with governance. Owing lo the inherenl limitations of an audit, there 15 an unavoidable risk that we may not have deleded some material misstatements in the financial statements, even though we have properly planned and performed OLJr audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregLJlarilies) Is from the events and transactions reflected in the linancial slalements, the less likely the inherently limited procedures required by auditing standards would identify il. In addition, as with any audit, there remained a higher risk of non-detection ol irregularities, a5 these rn8y involve collusion, forgery, intentional omissions, misrepresentations, or the override ol internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. Page.. 30

Independent Auditors, Report to the Trustees of The Royal Academy of Arts Use of our report This report is made solely lo the charitable company's rnernbers, as a body, in accoidance with Chapler 3 of Part 16 of the Companies Act 2006. Our audit work has been undèrtaken so that we might slate to the charitable company's members those matters we are required to state lo them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Ihe charilable company and Ihe charitable company's members as a body, for our audit work, for this reDorL or for the opinions we have formed. Naziar Ha5hemi IPartner Slatutory Auditor) Senior Stalutory Auditor For and on behalf of 2nd Floor 55 Ludgate Hill Londcin EC4M 7JW Crowe U.K. LLP Date.. 4th February 2026 Page.. 31

The Royal Academy of Arts Consolidated Statement of Financial Activities {including an income and expenditure account) For the year ended 31 August 2025 Ongoing activities Budington Project Unrestricted Designated Restricted Endowment Restricted funds funds funds funds funds 2025 2025 2025 2025 £'ooo £'ooo £'ooo £'ooo Totsl 2025 £'ooo Tolal 2094 2,000 Note 2.000 Income from., Donations and legacies General donations from RAV Other donations from RAT.: Burlington Proiecl Other projects Donations from Friends of the RA Other donations Grant Income a$ig$131ed 1,180 1,180 1,145 500 1,094 9,956 4,869 100 200 532 10,105 5,826 105 1,094 9,956 2,474 925 9,170 100 7,744 33 47 253 7,744 33 47 258 7,329 Q7 66 255 Schoo15 Collections Education Income from trading subsidiaries Sponsorship, rent and other receipts Investments Bank Interest Investment income 8,964 Q,163 8,964 2,163 9,602 1,721 167 183 49 517 48 28 Total income 3Q,081 930 2,273 515 37,128 37,478 Expenditure on.. Raising funds 15,0441 16,0611 196,3471 15,0441 15,7441 16,0611 16,6471 131 129,6151 134,9711 Expenditure from trading subsidiaries Charitable activities." Other Relocation costs 1227} {3,040} 13231 Total exp&nditure 137,4521 12271 13,0401 141 140,7211 147,6851 IDecrea5el / Increase In value of investment propety Nel gains on Investments 17.d 135} 1351 33 35 198 Net income I lexpenditurel 14,4711 10 303 47 516 18,5951 19,9741 Transfers between funds 23-95 33 14 1471 other1055es Remeasurement of defined benefit pens10Tr scheme asset 98 12611 12611 11,0931 Net movement in fund5 14,6991 10 317 516 13,8581 111,0671 Totsl lunds brought lorward"" 34 83,OQg 733 3,415 775 1,761 89,706 100,773 Total lund5 carried forward 78,3Q3 743 3,73 775 Q,Q77 85,850 89,706 All gains and losses arising in the year are included in the Sl?tement of Financial Activilies and derive from conhnuing aclivities, RAT denotes Royal AcademyTrusl Expendilure on fundraising and charitable activities in the prior year includes the exceptional one off settlement cost of £8,720,000 arising from the full buy-in of the defined benefit pension scheme liabilities with an insurer (see notes 9. 10, 14 and 281. As restated. Page.. 8

The Royal Academy of Arts Balance Sheets as at 31 August 2025 Group Royal Aeademy OQ5 2094 2025 24 Fixed assets Intangible assets 6 Burtington Gardens Othwtangible fixed assets Herrtage assets Investment propety Other investments 237 44.548 40,387 1.752 1.190 3,627 17L 174J) 15 17AJ 18 44,648 40278 1,752 1,190 3.627 46,564 42,e￿2 1,594 1225 2.018 42602 1594 Iy25 ?.018 T¢)tsl fixed assets 91,741 94210 91,678 94,131 Current assets Stock Debt(Y5 Cash and cash e￿￿￿ents 19 4.437 4,707 4.513 4218 4.269 4,68 Tolal current assets 9,656 1Q225 &781 9270 Creditor5- arnounts falling due thin one year (6,108) (5.740) (5,120) (4,706) Net cutrent a55ets 3￿48 4.485 3,611 4,564 Total a$5ets1o$$ current ￿èts 95289 9&695 95.289 9&695 Creditors- arn￿￿1$ ￿ling due after more than one year 21 (10.000) (10tKKI) {10,000) (10,0001 Net assets excluding pension schern? a55 85289 84695 85,289 8&695 Delined benelit pension scheme asset 28 561 561 1.011 Total nèt assets 85850 89,706 85.850 89,706 The lunds ol the chariir. Endowment fvnds Re51ricted lunds Unreslncted funds: Designated Ivnds Genet￿ lunds Pension re5er¥e 775 775 &176 775 009 775 5.176 24 25 743 77.762 561 733 82011 743 77,76 661 733 8?.011 28 Total unrest[￿ted fund5 79.066 8&755 79.066 83,755 85B50 89,706 85￿50 89,706 Approved datsl for issue ty the President and CourKI ol The AcademyglArts0n...................... . ter CBE FRA President Ali5tsir ￿MmerS Trust00 Registered Company 0￿98947 Page.. 33

The Royal Academy of Arts Consolidated Statement of Cash Flows For the year ended 31 August 2025 2025 £'ooo 2024 £'ooo Note asièstaléd Net cash provided by operating activities 97 3,144 (1,966) Cash flow f rom investing activities Interesl paid Interest received Dividends and interest from investments Payments to acquire intangible fixed assets Payments to acquire tangible fixed assets Payments to acquire heritage assets Payments to acquire lixed asset investments Proceeds on disposal of fixed asset investments Net movement in cash held in the investment portfolio (425) 183 42 (120) (1,466) (57) (1,748) Ig (47) (441) 517 48 (118) (11,808) 16,a 17.a,c,d 18 18 (101) 18 47 Net cash used in investing activities (3,419) (11,856) Cash flows from financing activities Bank loan repayments 90 (163) (920) Net cash used in financing activities (163) (220) Net change in cash and cash equivalents Cash and cash equivalents al the beginning of the year (438) 4,707 (13,342) 18,049 Cash and cash equivalents at the end of the year 4,269 4,707 Analysis of cash and cash equivalents: Cash at bank and in hand 4,26g 4,707 Total cash and cash equivalents 4,269 4,707 Analysis of changes in net debt.. Opening Cash flows £'ooo s'ooo Closing £'ooo Cash Loans falling due within one year Loans falling due after more than one year 4,707 (163) (10,000) (438) 163 4,269 20 91 (10,000) Total (5,456) (Q75) (5,731) Page.. 34

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 1 General information The Royal Academy of Arts ( the Royal Academy") and its subsidiaries (together the Group") continues to aspire to promote the arts of design and educate the public in the creation, appreciation and enjoyment of arts. The registered office is Burlington House, Piccadilly, London. The Royal Academy is a company limited by guarantee and a registered charity and incorporated in England and Wales, The Royal Academy is a Public Benefit Entity as defined by FRS 102. Summary of significant accounting policies The financial statements have been prepared under the historical cost convention as rnodified by the revaluation of investments to market value and in compliance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their financial statements in accordance wilh the Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" I'FRS 102"), the Charities Act 2011 and Companies Act 006. The financial slatements are prepared in sterling which is the functional currency of the Group. Monetary amounts in these linancial statements are rounded to the nearest thousand. & Basis of preparation The financial statements have been prepared on a going concern basis. The consolidated financial stalements comprise the financial statements of the Royal Academy and ils three trading subsidiaries,. RA (Arts) Limited, Burlington House Limited and R.A. Enterprises Limited made up to 31 August 2025. The total income and expenditure of these entilies is shown in the Stalement of Financial Activities ( SOFA") and the detailed results are disclosed in note 7 of the financial statements. The statements are consolidated on a line by line basis. The Royal Academy has taken advantage ol the exemption in section 408 of the Companies Act 2006 from disclosing its individual SOFA. The Royal Academy income for the year was £31,067,000 (&024.. S30,831,000). The Royal Academy only deficit (net movement in funds) was £3,856,000 (2024.. £11,067,000). The principal accounting policies applied in the preparation ol these financial statements are set out in the noles below. These policies have been consistently applied to all the years presented, unless otherwise staled. b. Going concern The Irustees have assessed whelher the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Royal Academy to continue as a going concern, The Irustees have made this assessment for a period of at least one year from the date ol approval of the financial statements and have considered the macro-economic situation the Royal Academy now finds ilsell in following an extended period of higher inflalion and interest rates,, and the Impact of the 'cost of living crisis. and changes in customer behaviours on growing back visitor numbers. Page.. 35

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of significant accounting policies (continued) b. Going concern (continued) In particular, the trustees have considered the sensitivity ol forecasts and plans. They have taken account ol the related pressures on its key sources of income from donations, in particular the annual donation from the Friends of the Royal Academy,. sponsorship and admission income from its exhibitions programme., and from Its trading activities, Includino onsite and online retail and corporate membership and lets. The trustees have further reviewed its underlying cost base and its expenditure on both its charitable and fundraising activities, as well as from commercial trading, SUPPOrting Ihese key sources of income and the impact of the higher rates of inflation which have been experienced on these, including the effect of salary increases particularly impacted by the rise in the London Living Wage. The truslees have further considered the transformation plan that was approved by Council in December 9024 and the steps already taken this year and the future steps to be taken, as part of this plan, This transformation plan seeks to address the Royal Academy's financial sustainability over both the short and medium term. The Group has unrestricted net current assets 01 £3.2m as al 31 August 2025. The Group also has access to a committed £5.Om Revolving Credit Facility to 31 August 9027 and an annually renewable £0.5m overdralt facility. These facilities were nol drawn upon as at the year end and are not forecast lo be utilised in the period of at least one year from the date ol approval of the financial statements. In addition, the Royal Academy Trust, an independent charity established to specifically provide support to the Royal Academy, held funds of %56.2m at 31 August 2025 in Irust for the Royal Academy, of which £18.6m are unrestricted, including £11,9m that is both unrestricted and not designated, and £0.2m of restricted funds held in the Paul Mellon Endowment *und, which may be used for the general purposes of the Royal Academy. In view of the level of current liquid resources,. Ihe long term loan funding and short term facilities in place., and the ongoing SLJPPOrt of the Royal Academy TrLJSt, the trustees consider that the Group has both sufficient funding and liquidity lor the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. c. Total return investment accounting The Irustees have eleded to adopt the total return approach for the investment of its permanent endowments. Under this approach, the permanently endowed fLJnds are invested to produce an investment return without regard to whether that return is in the form of income or capital appreciation., Ihe investment return forms a component of the endowment fund called the unapplied total return. The trustees periodically determine how much of the unapplied total return is released to income for spending and how much is retained for investment. This allocation is made equitably to balance the need for income to meet current requirements and to hold lunds as part of the endowment lo produce investment returns for the future. d. Funds structure Where there is a legal restriction on the purpose to which a fund may be put the fund is classilied either as a restricted fund or an endowmenl fund. Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. Page.. 36

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of significant accounting policies (continued) d. Funds structure (continued) Endowment funds arise when the donor has expressly provided that the donation is to be invested and only the income of the fund may be spent. These funds are sub analysed bebmeen Ihose where the truslees have the discretion to spend the capital, an expendable endowment, and those where there is no discretion to expend the capital, a permanenl endowment Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub analysed belween designated funds, where Council have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors., and unrestricted funds, which are used at the trustees, discretion in furtherance of the general objectives ol the Royal Academy, including the general fund which represenls the Group s reserves. The major funds held in each of these categories are disclosed in notes 93 to 95. Transfers between funds represents the funds transferred bebNeen restricted funds to the general unrestricted fund on completion of projects and restrictions being satisfied. Burlington House The Royal Academy holds a 999 year lease on Burlington House, of which almost 850 years remain, title to which is vested in the Secretary of State lor the Department of Communities and Local Governmenl. The rent of the propety is nominal, but it is the responsibility of the Royal Academy to maintain the property in a sound condilion. The property is inalienable in that its ownership reverts to the Government if il is no longer used by the Royal Academy. The property works carried out on the galleries, Royal Academy Schools and Library are principally to maintain the fabric in its original condition and ensure an adequate environment for the exhibits. As the value of these works is part of the fabric of the building and cannot be realised, Ihese are not recognised in the balance sheet except in the case of building improvements as detailed in the fixed assets and depreciation policy described below. f. Heritage assets The Royal Academy holds a collection of works of art, which consists of paintings, sculptures and prints, acquired by Ihe Royal Academy by donation, bequest and from members on election to the Royal Academy ("Diploma Works"), together with a library of books. The trustees do not consider thal reliable cost or valuation information can be obtained for Ihe vast majority of heritage assets held by the Royal Academy. In particular, the Diploma Works have an Intrinsic value to the collection as an embodiment of the development of the Royal Academy as an institution. The manner in which they are given to the Royal Academy makes the valuation of these items very subjective, such that a reliable value cannot be arrived at. Furthermore, the cost ol valuing the entire collection would be onerous compared wilh the benefit derived by users of the financial stalements in assessing Ihe Royal Academy's stewardship ol these assets. Page.. 37

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of significant accounting policies (continued) f. Heritage assets (continued) As such, the Royal Academy does not recognise these assets on its balance sheet other than acquisitions made since 1 April 201 O with a value of £ l 0,000 or more. These are reported at cost where the asset is purchased or at the curator's best estimate ol current value where the asset is donated. Such assets are nol depreciated but are reviewed for impairment in the event of physical deterioration. Any impairment in the value of an asset is treated as charitable expenditure in the year in which it arises. Expenditure which Is required to preserve or prevent further deterioration of the collection is recognised in the SOFA when it is incurred. g. Foreign currency Investment transactions In foreign currencies are recorded at the rate ruling at the date of the transaction. Assels and liabilities denominated in foreign currencies are relranslated at the rate ruling al Ihe balance sheet date. h. Intangible assets Computer software and website costs are stated at cost less accumulated amortisation and impairment losses, These are amortised over their eslimated useful life, of three to five years, on a straight line basis. Tangible assets ExpenditLJre on building improvements, new machinery and equipment is capitalised as fixed assets and staled at cost less accumulated depreciation. The Royal Academy applies a £1,000 threshold lo the capitalisation of fixed assets. Depreciation is charged on a straight line basis with assets being depreciated over their uselul economic lives as lollows.. Building improvements Computers Office fixtures and fittings Plant and equipment Motor vehicles 5 to 50 years 3 to 5 years 3to10years 5to15years over 3 years Short leasehold property improvements are depreciated over the period of the lease. Freehold land is stated at cost and is nol depreciated. Freehold property is capitalised as fixed assets and staled at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over their expected useful lives of up lo 50 years, starting from the date of purchase or for improvemenls from the date these are placed in service. Where property assets comprise two or more major components with substantially dilferent uselul economic lives, each component is accounled lor separalely and depreciated over its Individual useful economic lile. Investmenl property is capitalised and included in fixed assets inilially at cost and subsequently al fair value at the reporting date. Changes in fair value are recognised in the SOFA No depreciation is charged on assets in course of construction. Where assets are constructed as part of a project for which specific identifiable assets are brought into service before the overall project is completed, such assets will be transferred from assets in course of construdion to building improvements or lixtures, fittings and equipment as appropriate and depreciated from the date these are placed in service. Page.. 38

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of significant accounting policies (continued) j. Operating leases Leases that do not transfer all Ihe risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the SOFA on a straight line basis over the period of the lease. Incentives received to enter into operating leases are credited to Ihe SOFA lo reduce the lease expense, on a straight line basis over Ihe period of the lease. k. Stock Stock principally consists of shop and e-commerce products and is valued at the lower of cost and net realisable value. In the case of artworks provided by an artist these items are recognised in the financial stalements at their anticipated sales price, less anticipated cost ol sales and any subsequent impairment l. Income Income, which is stated net of VAT where applicable, and intra-group transactions, consists of box oftice takings, sponsorship, donations and grants. Income received for an activity taking place in a subsequent period is deferred to that period in accordance with FRS 109, except where that income relates to an exhibition where the accounting policy outlined below is followed. Exhibitions The results of exhibitions are recognised in the financial statements ol the year in which the exhibition takes place. Costs incurred and income received, inclLJding sponsorship income, in connection with forthcoming exhibitions, where the exhibition lalls afler the year end, are deferred at the balance sheet date. If a decision is made not to proceed with an exhibition, the costs are written off. Commission on art sales at the Royal Academy's Summer Exhibition is recognised when the deposit lor the art work is taken. ii. Donated services Where an artist has donated Iheir services, for example, in the creation ol artworks or arbNorks themselves, to be sold alonoside an exhibition, the donated services or artworks are recognised in the financial stalements in accordance with the policy for exhibitions income disclosed above, Other donated services are recognised when these have been delivered and are valued at the amounl the Royal Academy would be prepared to pay for a similar service. iii. Patrons Patrons income comprises a donation and benefil component The donation component is recognised in the financial statements on a cash received basis and the benefit component over the membership period. iv. Grants For performance related grants, income entitlement is considered to be conditional upon the meeting of conditions Imposed by the grant Income is therefore recognised in the financial statements to the extent that Ihe Royal Academy has demonstrably mel any grant condilions imposed. Page.. 39

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of signif leant aeeounting policies (continued) l. Income (continued) iv. Grants (continued) Non-performance relaled grants are recognised when there is evidence of entitlement, receipt is probable (more likely than not) and its amount can be measured reliably. Donations Donations and related Gift Aid are accounted for when the donation is received. If donations are specifically in connection with a specific event these are restricted,. if specifically in connection with a future exhibition, these follow the policy set out in 2.1.i. vi. Trading subsidiary income Turnover is measured at Ihe fair value of the consideralion received or receivable and represents Ihe amount receivable for goods supplied or services rendered, net of discounts and VAT. Tumover is recognised al the poinl of sale for goods and when Services have been delivered, Subscriplions are accounted for in the period in which membership commences. Legacies Legacies are accounted for as income where there is clear entitlement,. the amounts can be measured reliably,, and receipt is probable. Receipt is probable when.. Confirmation has been received from the representatives of the estate(s) that probate has been granted., and The executors have established there are sufficient assels in the estate to pay the legacy., and All conditions attached to the legacy have been fulfilled or are within the charity's control. Measurement is based on the value listed in the will for pecuniary gifts, provided the estate has sufficient funds, and on the estate accounts for residuary gifts. Expenditure Expenditure is accounted for on an accrLJals basis inclLJsive of any VAT which cannot be recovered. Expenditure is recognised when there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable a transfer of economic benefil will be required in settlement and the amount can be measured reliably. Expenditure on raising funds consisl of costs of trading subsidiaries and fundraising expenditure. These include Ihe direct costs of the departmenl, including the running costs of sponsorship, fundraising and events, together with a share of the support costs of the Royal Academy. Charitable activities include all costs related to the main purpose of the Royal Academy and include.. direct costs of exhibitions and Ihe associated educalion programme,. running the Royal Academy Schools., and the conservation of the permanent collection and the Library. Publicity costs are allocated to exhibitions, Royal Academy Schools, collections and education based on the income from each area. Page.. 40

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of signif icant accounting policies (continued) Expenditure (continued) Support costs are the costs ol departments which are shared by the various activities ol the Royal Academy.. finance, personnel, Information Technology, facilities and governance costs. These costs are allocated to activities on a basis that is appropriate to the nalure of the expenditure and have therefore been allocated over headcount. Employee benefits The Royal Academy provides a range ol benelits to employees, including paid holiday arrangements and defined contribulion pension plans, i. Short term benefits Short term benelits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received, ii. Defined benefit pension plan The Royal Academy ol Arts Pension Scheme I'the Scheme.) is a defined benefit pension scheme closed to future accrual on 30 September 2016. A full buy-in of the Scheme's pension liabilities with an insurer, being the first slaoe towards buy-out and an eventual winding up of the Scheme, was successfully concluded with Aviva on 2 July 2024. Pension assets and liabilities are recorded in line with Section 98 of FRS 102. With scheme valuations undertaken by independent actuaries, FRS 102 measures the value of pension assets and liabilities at the balance sheet date and determines the benefits accrued in the year and the interest on assets and liabilities. Currenl service cosls, which include Ihe settlement cost arising from the purchase of the insurance policy on 2 July 2094 at the purchase settlement date of 9 July 2094, expenses in respect of the buy-in and the transition to buy-out, and from l July 2024 the expenses of operating the Scheme, together with the net interest for the year, are allocated to relevant expenditure headings within the SOFA. Scheme assets are measured at fair value at the balance sheet date. Scheme liabililies are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-qualily corporate bond of equivalent term to the Scheme liabilities. The change in value of assets and liabilities arising from asset valuation, changes in benefits, actuarial assumptions, or change in the level of surplus attributable to members is recognised in unrestricted funds in the SOFA within remeasuremenl of the defined benefit pension scheme asset The resulting defined benefit pension scheme asset Is presented separately on the face of the balance sheet in unrestricted funds. The Royal Academy recognises an asset for its Scheme to Ihe extent this is considered recoverable through reduced contributions in Ihe luture, or through refunds from the Scheme. The trustees ol the Scheme believe that the Scheme currently meets the minimum funding requirements. The assets of the Scheme are held complelely independenlly from the Royal Academy. The income and expense related to the Scheme is allocated enlirely to the unrestricted ongoing aclivities of the Group. iii. Defined contribution pension plans The Royal Academy operates defined contribution plans for ils employees. The contributions are recognised as an expense when these are due. Amounts not paid are shown in accruals in the balance sheet. Page.. 41

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of signif icant accounting policies (continued) o. Employee benefits (continued) iv. Termination payments Termination benefits are payable when employment is terminated by the Royal Academy before the normal retiremenl date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Royal Academy recognises termination benefits when it is demonstrably committed to either (i) terminating the employment of currenl employees according to a detailed formal plan without Possibility of withdrawal or (li) providing termination benefits as a result of an offer made to encourage voluntary redundancy. p. Administered funds Inveslmenls held by the adminislered funds are stated at market value al the balance sheet dale. Dividend income from investments is recognised on an accruals basis. q. Investments Investment properties Inveslmenl properties comprise those held solely for either their rental income and/or capilal appreciation. They are carried at fair value. ii. Other investments Listed investments are stated at market value at the year end, The market value of securities is based on the bid market quotation on the relevant stock exchange and investments that are held in units are slated at the average of the unit bid and offer prices. Unlisted investments are stated at cost as no market value is available. The SOFA includes any realised or unrealised gain or loss during the year. Inveslmenl income, including the related tax credit, and Interest on bank and short-term deposits are accounted lor on a receivable basis, r. Financial instruments Financial instruments are recognised in the Royal Academy's balance sheet when it becomes paty lo the contractual provisions of the instrument, Financial assets and liabilities are offset, with the nel amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a nel basis or lo realise Ihe asset and settle Ihe liability simultaneously. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Royal Academy after deducting all of its liabilities. Basic f inancial assets Basic financial assets, which include trade and other receivables and cash and bank balances, are inilially measured at transaction price including transaction costs and are subsequently carried at amortised cost less any impairment. Page.. 42

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 2 Summary of signif icant accounting policies (continued) Financial instruments (continued) ii. Other financial assets Other financial assets, including investments in equity instruments which are not subsidiaries, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the SOFA Trade debtors and other receivables that have lixed or determinable payments that are not quoted in an active maiket are classified as 'debtors Debtors are measured al amortised cosl less any impairment. iii. Impairment of financial assets Financial assets, other than those held at fair value through the SOFA are assessed for indicators of impairment at each reporting end dale. Financial assets are impaired where there is objective evidence that, as a result ol one or more events that occurred alter the initial recognition of the linancial asset, the estimated luture cash flows have been affected. The impairment loss is recognised in the SOFA iv. DeTeeognition ol financial assets Financial assets are derecognised only when the contraclual rights to the cash flows from the asset expire, or when it transfers the linancial asset and substantially all the risks and rewards ol ownership to another enlity. Basic financial liabilities Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement conslilutes a financing transaction, where the debt instrument is measured at the present value of the fulure payments discounted at a market rate of interest. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classified as current liabilities il payment is due within one year or less. If not, these are piesented as non-cuirent liabilities, Trade payables are recognised initially at transaction price and subsequently measured at amortised cost. vi. Other financial liabilities Derivatives, including forward foreign exchange contracts, are not basic financial inslrumenls. Derivatives are initially recognised at fair value on the dale a derivative contract is entered into and are subsequently re- measured at their fair value. Changes in the fair value of derivatives are recognised in the SOFA In finance costs or finance income as appropriate. Hedge accounting is not currently applied. Prior year restatement Prior year adjustments have been made lo reflect a change in accounting policy pertaining to freehold property for which depreciation is now provided as disclosed in note &.1, Previously, depreciation was not provided after considering the value of the land, the residual valLJe of the propety and the estimated useful lile ol the asset. Further details are provided in nole 34. Further prior year adjustments were made to reflect the elimination of intercompany income and expenditure between the Royal Academy and its subsidiary undertakings and re-analysing the Nluseums and Galleries Exhibilion Tax Relief credit from other gains and losses to income. The net impact of this on the SOFA for the year ended 31 August 2024 was £nil. Page.. 43

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 3 Critical accounting judgments and estimation uncertainty Estimates and judgments are continually evaluated and are based on historical experience and olher factors, including expectations of future events that are believed lo be reasonable under the circumstances and assumptions relating to recognition and cut-off of grants, donations, and legacies. Useful economic lives of tangible and intangible assets The annual deprecialion and amortisation charge for fixed assets is sensitive to changes in the estimated seful economic lives of the assets. The useful economic lives are re-assessed annually. These are amended where necessary to refled current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 16 and 17 for the carrying value of assets and note 2.h and 9,1 for the useful economic lives. b. Impairment of debtors The Royal Academy makes an estimate of the recoverable value of trade and other debtors. When assessing impairment ol trade and other debtors, management considers lactors including the current credit rating of Ihe debtor, the ageing profile of debtors and historical experience. Defined benef it pension scheme asset The determination of the assumptions used in calculating the defined benefit pension scheme asset is the responsibility of Ihe trustees of the Royal Academy, with delegaled authority to the Director of Finance and Operations. The assumptions are set with regard to advice given by the scheme actuary. d. Valuation of investment properties Inveslmenl properties are revalued annually by an independent third party, This valuation is based on various assumptions, which are set out in the advice given. Page.. 44

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 4 Prior year comparatives by type of fund Thè SOFA provides the prior yÈar comparatives in tot￿., this not& providès prior p&riod comparatives for Èach of thÈ typ&s of funds. Ongoing activities Burlington Proi8Ct Unrestricted Designated Restricted Endowment Restricted funds funds funds lund5 funds 2024 2024 2024 2024 024 £'ooo £'ooo £'ooo £'ooo £'ooo Total 2024 2,000 Incorne from.. Donations and legacies General donations from RAT. Other donations from RAT.: Burlington Project Other projects Donations Irorn Friends ol the RA Other donations Grant Income Charitable activities asrestaled 1,145 1,145 200 200 532 10,105 5,826 105 532 10,105 ,407 522 2,062 105 835 7,329 7,329 97 66 955 Schools 66 255 Education Other trading adivities Incomè from trading subsidiaries Sponsorshipi rent and other receipt5 Investments Bank Interest Investment income 9,602 1,721 9,602 1,721 273 241 517 48 21 Total income 32.934 539 2,706 1,276 37,478 Expenditure on.. Raising funds Fundraising Expenditure from trading subsidiarie5 {5,7441 {6,6471 131,2371 (5,744) (6,647) 1201 134,971) 10 15231 {8,192} Other Relocation Costs 13?31 (323) Total expenditure 143,6281 15231 13,1921 13431 147,685) Increase in value of investment property Net gains on Investments 17.d 35 28 35 198 66 87 Net income / (expenditure) 110,6771 82 14231 933 (9,974) Transfers between lunds 23-25 20,869 197 11111 190,9571 Other gains /1105sesl Remeasurement of defined benefit pension scheme asset 28 (1,0931 (1,093) Net movetnent in fund5 9,099 84 (Q26} 120.0241 111,067) Total funds brought forward. 34 73,923 649 3,641 775 21,785 100,773 Total funds Carried forward 34 83,02Q 733 3,415 775 1,761 89,706 RAT denotes Royal Academy Trust As restated Page.. 45

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 5 Income from other donations Unreslricted Designaled Restrieled funds funds funds Total £'ooo £'ooo £'ooo £'ooo 2025 Exhibitions Schools Education General - Other Legacies Legacies - Coronavirus Emergency Support Fund 530 41 864 1,894 698 739 421 586 187 1,514 411 225 165 1,327 411 225 Total 2,474 225 2,170 4,869 2024 Exhibitions Schools Education General - Other Burlington Project- Phase Il/lll Coronavirus Emeroency Support Fund Legacies Legacies - Coronavirus Emergency Support Fund 584 20 203 1,288 1,074 542 373 73 835 1,658 562 576 1,361 835 312 312 591 521 Total 2,407 522 2,897 5,826 The Royal Academy is the beneliciary of a number of legacies, the value of which cannot be ascertained with certainty. Based on information available at the date of the financial statements, it is estimated that the Royal Academy will receive approximately £641,000 (2024.. £28,000) Irom these legacies. As the receipt of these legacies is dependent on future events, these are not recognised as an asset in the SOFA. However, these are disclosed in Ihis note as a contingent asset in accordance with FRS 102 SORP paragraph 5.34. 6 Income from grants Restricted funds Total £'ooo £'ooo 2025 Exhibitions 100 100 Total 100 100 024 Exhibitions Education 102 109 Total 105 105 Page.. 46

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 7 Results from subsidiarie5 The Royal Academy has three wholly owned tiading sub3idiarie5'. R.A Enterprises Limited, which operates a shop and e- commerce business, a restaurant and cafes, a publications and art sales business and commercial learning,. RA (Arts) Limited, which provides entertainment services to the corporate sector,, and Burlington House Limited, which raises funds from the corporate sector and individuals through ticketed events. These companies have entered into deeds ol covenant lo donate their distributable profits lo the Royal Academy, The registered offices of all subsidiaries is Burlington House, Piccadilly, London. A summary ol their trading results is shown below. Audited financial slalemenls lor these subsidiaries are filed annually with the Registrar ol Companies. R.A. Enterprises Limited 2025 s'ooo RA (Arts) Limited 2025 £'ooo Burlington House Limited 2025 £'ooo Profit and Loss.. Total 2025 £'ooo 2024 £'ooo 2024 £'ooo 2024 £'ooo Turnover 8,964 5,858 6,886 2,677 2,225 429 491 Cost ol sales Adminislialive expenses (3,951) (3,761) (9,512) (2,989) {?,793) 13,206) 18971 (7551 (8601 (4321 (342) (17) 13101 (191 Total expenses (7,012) (5,501) {5,99g) 11,1521 (1,2921 1359) 13291 Net result 1,952 357 887 1,5Q5 933 70 162 Distribution to the Royal Academy (1,952) (357) 1887) 11,5251 (9331 (70) 11621 No charge lo taxation will arise as the companies have entered into deeds of covenant to donate their dislributsble profits to the Royal Academy. Balance Sheet: Fixed assets Intangible fixed as5et5 Tangible fixed assets 54 54 78 Totsl fixed assets 63 63 80 Current assets Stock Debtors Cash and cash equivalents 1,063 1,238 51 1,063 513 51 1,081 616 25 675 563 50 37 Total current assets ,35? 1,627 1,72 675 568 50 37 Current liabilities Creditors- amounts Idling due within one year (2,415) (1,690) (1,802) 1675) (5681 {50) (371 Net current liabilities (63) (63) 180) Total assets less Capital arid reserves Called up share capital Profit and loss reserves Total equity Page.. 47

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 8 Support costs 025 Finance £'ooo IT Personnel £'ooo £'ooo Facilities Governance s'ooo £'ooo Total £'ooo Exhibitions Schools Collections Education Publicity (note 10) Fundraising (note g) 1,003 287 186 143 545 416 655 187 122 94 271 356 339 97 63 48 140 184 2,499 714 464 357 1,035 1,357 244 70 45 35 101 133 4,740 1,355 880 677 ,09 2,446 2025 lotal 2,580 1,685 871 6,426 628 12,190 Finance cosls include interest payable and similar charges of &425,06612024.. £440,562). Personnel costs include legal, professional and consultancy costs 012153,474 (2024.. £nil) pertaining to Ihe reslructuring. 2094 Finance £'ooo IT Personnel £'ooo £'ooo Facilities Governance s'ooo £'ooo Totsl s'ooo Exhibitions Schools Collections Education Publicity Inole l 0) Fundraising (note 9) 1,228 264 18 357 637 451 695 150 193 902 255 361 275 59 49 80 101 143 3,190 708 583 958 1,208 1,707 29 63 5,780 1,244 1,095 1,682 2,308 2,814 85 107 15 2024 total 3,155 1,786 707 8,454 751 14,853 g Fundraising 2025 £'ooo 2024 £'ooo Direct fundraising costs Support costs (note 8) ,598 ,446 2,930 2,814 Total 5,044 5,744 In 2024, total fundraising cosls include £371,000 of the tolal exceplional one ofF settlement cost ol 23,720,000 arising from Ihe full buy-in of the defined benefit pension scheme liabilities with an insurer (see notes 14 and 28). Page.. 48

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 10 Charitable activities Direct costs £'ooo Support costs s'ooo Publicily costs (i) £'ooo 2025 Total £'ooo Exhibitions Schools Collections Education 11,096 1,852 2,009 1,537 4,740 1,355 880 677 5,244 1,080 8,229 2,921 2,385 32 171 Total 16,494 7,652 (note 8) 5,469 29,615 Direct costs 2024 Support cosls Publicity costs (i) £'ooo Total £'ooo £'ooo 2,000 Exhibitions Schools Collections Education 19,846 1,852 2,118 2,097 5,780 1,244 1,025 1,68 6,063 23 21 220 24,689 3,119 3,164 3,999 Total 18,913 9,731 (note 81 In 9024, total charitable activities costs include £3,349,000 of the total exceptional one off settlement cost of £3,720,000 arising from the lull buy-in of the defined benefit pension scheme liabililies with an insurer (see notes 14 and 28). 6,327 34,971 Exhibitions expenditure includes the direct costs of mounting all loan exhibitions and the Summer Exhibition and all associated costs, such as curatorial staff, art handling1 security1 press and box office. Publicity costs comprise direct publicity costs and an allocation of support costs analysed as follows.. 2OQ5 £'ooo 2094 £'ooo Direct publicity costs Support costs (note 8) 3,377 9,099 4,019 9,308 Tolal 5,469 6,327 1 l Net income / (expenditure) 2025 £'ooo 2024 £'ooo Income is stated after crediting.. Income from Museums and Galleries Exhibition Tax Relief included within income Irom charitable activities 425 345 Page.. 49

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 11 Net income / (expenditure) (continued) 2025 £'ooo 2024 £'ooo Expenditure is stated after charging.. Amortisation Depreciation Auditors, remuneration.. External auditors Audit services - group undertakings Audit services - defined benefit pension scheme other services Interesl payable and similar charges (see nole 8) 90 5,661 81 5,324 66 87 49 425 36 441 External auditors other services relate to tax compliance and other advice. The Royal Academy's former external auditors have retained Ihe audit for the defined benefit pension scheme for the year ended 31 August 2025. The total lease expenditure incurred in the year was £237,10412024.. £395,832). 12 Role of volunteers Like all charities, Ihe Royal Academy uses a team of volunleers. In accordance with the SORP, due to the absence of any reliable measurement basis, the contribution of these volunteers is not recognised in the financial statements. 13 Officers, and Council members, remuneration As provided for in the governing documents of the Royal Academyi the President, who is an officer and a trustee, received officers, remuneration, excluding pension contributions, of £70,000 (9024.. £70,000). The Presidenl received no pension contributions (2024.. £nil). Remuneration for officers is set by Ihe People and Remuneration Committee. Page.. 50

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 13 Officers, and Council members, remuneration (continued) Council members are only reimbursed for expenses incurred in the performance of their duties, except for the President who is remunerated for her duty as an olficer. Two12024.. two) trustees received reimbursed expenditure of,, 2025 £'ooo 2024 s'ooo Travel Other Total Trustee indemnity insurance costs for the year totalled £16,15312024.. £15,721). 14 Staff costs 025 £'ooo 2024 £'ooo Salaries and wages Social security costs Redundancy and termination payments Pension contribulions- defined contribution schemes Pension service expense - defined benelil 13,906 1,459 886 914 189 13,688 1,328 31 958 4,081 Total 16,654 90,086 Staff costs include payroll for temporary as well as permanent staff. The Royal Academy undertook a significant restructuring during the year. The tolal cost of the restructuring was £1.9m. In addition lo SO.9m redundancy and termination payments, there were further holiday pay and social security cosls of £0, I m and legal, professional and consultancy costs of £O.2m (see note 8). Due lo the impact of this, salaries and wages and the number of full-time equivalent employees have reduced compared to last year, The key management personnel of the Royal Academy, and Group, comprise the Senior Leadership Team, trustees and officers. Tolal remuneration of key management personnel during the year was £1,364,870 (2024., S1,466,779). In 2024, the pension service expense defined benefit pension scheme includes the exceptional one off £3,720,000 settlement cost arising from the purchase of an insurance policy in July 9024 for all the pension liabilities of the scheme (see also note 28). £371,000 was allocated to fundraising (see note g) and £3,349,000 to charitable activities (see note 10). Page.. 51

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 14 staff costs (continued) The number of employees, including off icers, whose remuneration exceeded £60,000, is shown below.. Band.. 025 2024 £60,000 to £69,999 £70,000 to £79,g99 £80,000 to £89,999 £90,000 to £99,999 £100,000- £110,000 £120,000 to $129,999 £130,000 to £139,999 £150,000 to £160,000 £160,000 to £170,000 £170,000 to £180,000 £200,000 to $210,000 £230,000 to £240,000 Pension contribulions lor Ihe above employees were £247,221 (2024.. £234,666). The average number of permanent employees and lull-time equivalent ("FtE ) permanenl employees, including officers, during the year was., Headcount FtE OQ5 2024 OQ5 2024 Charitable activities Fundraising and publicity Trading activities Governance Support 115 65 46 135 68 43 93 63 39 112 65 37 76 306 199 498 83 334 181 515 75 274 N/A 974 82 301 N/A 301 Casual staff Totsl The number of part-time casual staff employed by the Royal Academy varies throughout the year, depending primarily on the exhibition programme. Casual staff include those who are engaged in visitor services, events, learning, RA Schools, art handling and retail. 15 Heritage assets The Royal Academy holds assets that fall under the delinition of 'Heritage Assets" These fall into three broad colleclions.. The Works ol Art Colleclion, The Royal Academy Library and The Royal Academy Archive. Each of these is considered in turn. All items in these collections are available to view by appointment Items are also from time to time included in exhibitions al the Royal Academy, as well as being loaned out to other exhibitors. Page.. 52

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 15 Heritage assets (continued) The Works ol Art Collection The Works of Arl Collection consists ol works of art and other objects of historic, artistic or association significance owned by the Royal Academy, namely,. paintings, sculpture (including medals, dies, cameos, and Intaglio gems),. drawings,. artists, sketchbooks,, individually issued prints,, photographs,. plaster casts (including pastes of gems),. historic skeletons relating to teaching in the Royal Academy Schools,. objects of memorabilia, including artlSts' tools and materials., historic silver and silver-pl8te', historic ilems of furnilure., picture frames., and certain fittings and fixtures within Burlington House. The Royal Academy holds around 1,015 paintings in its permanent collection and over 37,000 prints and drawings. The majority of works and objects in the collections date from the foundation of the Royal Academy in 1768 to the present day, Other works include the T8ddei Tondo, the only marble by Michelangelo in the UK., early copies after the Old Maslers, such as those by Giampietrino, Rosso Florentino and Sir James Thornhill,. and other works, all presented lo the RA for the edification ol the students in the RA Schools. The core of The Works of Art Collection is the Diploma Works. These are given by AcademicI￿S on election to the institution and are predominantly by 8ritish artists and architects. Other works ol art were purchased, bequeathed or given lo the Royal Academy and range from drawings to plaster casts and from pholosraphs to paintings. There is also a ¢olle¢lion of silver given to the Royal Academy by Ac&demicians, which is of historical importance to the Royal Academv. The Royal Academy Library (Special Books Collection) The Library comprises the Historic Books Collection dating Irom the 16 Century to approximately 1920, and the Special Illustrated Books Collection. The Royal Academy Archive The Archive holds papers and docLJments and copies ol electronic correspondence relating to the institution's history as well as artists. letters and archives. The Archive also includes photographic prints, transparencies, glass slides and negatives, films and videotapes which relate to the history and activities of the institution. More information about the Royal Academy's colledion is available at N￿,￿0YalacadeMy.0rg.uk]pageIco1Iect1o￿S-and-resea[Ch. Capitalisation of the collections In the opinion of the truslees, reliable informalion on cosl or value is not available for the Royal Academy permanent collection, This is owing lo the lack of reliable information on purchase cost,. the lack of Comparable market values,. the diverse nature of the objects., and the volume ol items held. The collections have a significant intrinsic value relating to the way they provide & unique insight into the history of art and the study of art over the past 250 years. The manner in which items are given by Academicians makes valuation of these items difficult as there is no original cost to the item. In addition there is an intrinsic value to the collections as an embodiment of the history of the Royal Academy as an irbstitution, which would also be far too subjective and unique to place any reliable value upon. For Ihis reason, the permanent collection, a large part of which was gifted lo the Royal Academy at £nil cost, are incomparable in nature and are not recognised as assèts in the Royal Academy's balance sheet. Page.. 53

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 15 Heritage assets (continued) Acquisitions and disposals Diploma Works are proposed by newly elected members in discussion with the Director of Collections and Learning (with delegated authority to the Head of Collections), and accessioned into the collection lollowing approval by Council. The approval of non-diploma works (by purchase, bequest or donation) is by the Director of Collections and Learning, in consultation with the relevant curator. 11 the acquisition is more than £5,000 in value, a case for accessioning musl be made by the Director of Collections and Learning to Council. All acquisitions are reported annually to Council by the Director of Collections and Learning. The list is subsequently submitted to Council as part of an annual report and the Director of Collections and Learnino attends Council to discuss any matters arising from the report. Disposals will only take place in accordance with the Acquisitions and Disposals Policy. No disposals were made in the year. Objects will only be deaccessioned by way of exchange (in the case of Diploma Works) or if there is irreparable damage to or total loss of an object. Due to the accreditation by the Arts Council, and the Royal Academy's internal procedures and policies (described under Collections managemenl., below), disposals can only be for 'financially motivated reasons In exceptional circumstances. Any such disposal must be as part of a wider review of the Collection, and then proceeds must be used only for the benefit of the Collection. In the linancial year, Diploma Works were presented by Helen Sear RA, Brian Griff ilhs RA, Oona Grimes RA and Caragh ThLJring RA. Gifts made to the Royal Academy in the current linancial year include a painting by Joe Tilson RA valued at £25,000 and a gift made via the Cultural Gifts Scheme of a painters table top cabinet attributed to Thomas Chippendale valued at £60,000. All works gifted or purchased with a value over &10,000 have been recognised in Ihe year. Valuations are made al fair value, either provided by the artist or their gallery or based on an assessment made by the curator taking into consideration current market values. The Collections Development Policy covering acquisitions and disposals is available for review on the Royal Academy's website., ww.royalacademy.org.uk/about-the-ra Preservalion The Royal Academy is committed lo the preservation of its Collections. It aims to ensure the longest possible life of the Collections. This includes security, financial, environmental, storage and staff ing that all help to preserve the collections for posterity. Works of art are ordinarily stored and displayed in conditioned spaces. Some sculptures are slored in spaces without environmental controls,. however, these have proven to be naturally stable environments. The Royal Academy complies as closely as il is able wilh BS 5454..2000 "Recommendations for the storage and Exhibition of Archival Documents 7.3" for the storage ol its archives. The modern archive is slored in a secure, environmentally stable area in 6 Burlington Gardens. For the works of ar( mosl conservators employed by the Royal Academy are on the ICON Conservation Register. For other areas of the collections, a variety of conservation experts are consulted. Page.. 54

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 15 Heritage assets (continLJed) Collections management The Works of Art Collection, Special Books Collection and Archive are catalogued in a series of discrete but interconnected databases, each fully conforming to their relevant prolessional standards, i.e. Spectrum lor museum objects,. A4CR2 and MARC2 I for books,. and ISAD(G) for archives, The three databases are linked to a series of shared authority files and thesauri aoainst which terms such as personal names, corporate narnes, malerials and lechniques, and production roles must be validated. This ensures consistency in data entry and in data searches. The Collection, Library and Archive are designated as collections of national importance as awarded by the Arts Council in 2011. In order to meet Ihe stringent requirements lor this award, an extensive lisl ol procedures and policies for the management of the collection, informed by nationally and internationally recognised standards, were approved by Council. These documents can be consulted in the Collections, Office. Analysis of heritage assets (Group and Royal Academy) Works of art 2023 £'ooo 2025 £'ooo 2024 s'ooo 2021 £'ooo 2020 £'ooo Carrying amount at 1 September 1,594 1,574 1,392 1,392 1,392 Purchases Gifts 57 101 20 168 Carrying amount at 31 August 1,752 1,594 1,574 1,399 1,392 16 Intangible fixed assets Intangible assets include the Royal Academy's website and intranet costs, core system software and R.A. Enterprises Limited's Epos, e-commerce and stock management sotbNare. Group Software £'ooo Cost At 31 August 2024 Additions 2,615 190 At 31 August 2025 Amortisation At 31 August 2024 Charge for the year 2,735 2,408 go At 31 August 2025 2,498 Net book value At 31 August 2025 237 At 31 August 2024 907 Page.. 55

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 16 Intangible fixed assets (continued) b. Royal Academy Software £'ooo Cost At 31 August 2024 Additions 1,864 106 At 31 August 2025 1,970 Amortisation At 31 August 2024 Charge for the year 1,736 51 At 31 August 2095 1,787 Net book value At 31 August 9095 183 At 31 August 2024 128 17 Tangible fixed assets Assets in Building course of improvements construction Fixtures, Motor fittings and vehicles equipment £'ooo Group Total £'ooo 2,000 2,000 £'ooo Cost At 31 August 2024 Additions Disposals 47,344 627 (?81) 1,193 486 37 24,952 311 {173) 73,526 1,424 (454) At 31 August 2025 47,690 1,679 37 25,090 74,496 Depreciation At 31 August 2024 Disposals Charge for the year 19,381 (249) 2,008 37 18,506 {173) 1,59g 30,924 (422) 3,607 At 31 August 2025 14,140 37 19,932 34,109 Net book value At 31 August 2025 33,550 1,679 5,158 40,387 At 31 August 9094 34,963 1,193 6,446 42,602 Page.. 56

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 17 Tangible f ixed assets (continued) b. Royal Academy Assels in Building course ol improvements construclion Fixtures, fittings and equipment Motor vehicles Total £'ooo £'ooo £'ooo £'ooo £'ooo Cost At 31 August 9024 Additions Disposals 47,082 627 (281) 1,193 486 37 24,522 302 1173) 72,834 1,415 (454) At 31 August 9025 47,428 1,679 37 24,651 73,795 Depreciation At 31 August 2024 Disposals Charge for the year 12,119 (249) 9,008 37 18,076 (173) 1,599 30,232 (422) 3,607 At 31 Augusl 2025 13,878 37 19,502 33,417 Net book value At 31 August 2025 33,550 1,679 5,149 40,378 At 31 Augusl 2024 34,963 1,193 6,446 42,602 6 Burlington Gardens (Freehold property) 6 Burlington Gardens £'ooo Group and Royal Academy Cost At 31 Augusl 2024 previously reported Prior year adjustment At 31 August 2024 restated Capital Goods Scheme adjustments At 31 August 9025 66,435 (2,514) 63,g21 42 63,963 Depreciation At 31 ALJousI 9024 restated Charge for the year At 31 August 2025 17,361 2,054 19,415 Net book value At 31 Augusl 2025 44,548 At 31 Augusl 2024 restated 46,564 Page.. 57

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 17 Tangible fixed assets (continued) 6 Burlington Gardens (Freehold property) (continued) In the opinion of the trustees, based on a valuation as at 31 August 2023 by an independent third party, the open market valLJe of the Royal Academy's Interest in 6 Burlington Gardens exceeds the book value by approximately £25.5m. The Royal Academy would have no liability to laxalion il the asset was sold at open market value on Ihe basis that the proceeds were used to further the company s charitable activities. As detailed in note 34, a prior year adjustment has been made to reflect a change in accounting policy pertaining to freehold property for which depreciation is now provided. In addition, assets with an historic cost of S2.5m and fully depreciated under the new accounting policy have been retired from service. d. 7 Pembroke Studios (Investment property) In 2020, the RA received a donation of £9.9m for the purchase of 7 Pembroke Studios for S1.65m, with the balance lo be used lor other costs of purchase and the ongoing repairs and maintenance of the property. As part of the gift there is a requirement that the artist who has been using the studio since 2012 is able to have exclusive, rent free use ol the sludio for as long as she is able to continue to aclively use it as an artisl up to a maximum 0125 years. At the end of Ihis period the Royal Academy has the right to use or dispose of the studio and use the proceeds for its general charitable purposes. The completion of the purchase of the studio look place in September 2020 for £1.65m plus legal and professional costs. A significant refurbishment was completed in 9021, such that the total cost as at 31 ALJousI 9021 was £1.9m. Group and Royal Academy 7 Pernbroke Studios s'ooo Fair value At 31 August 2024 restated Fair value loss 1,225 (35) At 31 August 2025 1,190 As the use of the property by this artist is not for the Royal Academy's charitable purposes and the property is primarily held for its capital appreciation, it is being accounted for as an investment property. The Charities SORP requires that Investment properties are measured initially at cost and subsequently at fair value at Ihe reporting date. Based on a valuation as at 31 August 9095 by an independent third party, the current open market value (with vacant possession) of the property is £1.7m, However, due to the requirement lor the artist lo be able to use the propety rent free for up to 25 years from September 2020, the valuation on this basis is much lower at £1.2m, In accordance with the Charities SORP, this lower valuation is deemed to be the fair value for accounting purposes. Page.. 58

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 18 other investments Group Royal Academy 2025 2024 £'ooo £'ooo 2025 £'ooo 2024 £'ooo Investments at market value Investments in subsidiaries at cost 3,627 9,018 3,627 ,018 Total 3,627 ,018 3,627 ,018 The Royal Academy beneficially owns all of the called up share capital of RA (Arts) Limited (02836364), R.A. Enterprises Limited (01666333) and Burlinoton House Limited (02916104), each of which is registered in England and Wales. See note 7 for the financial iesulls of these entities during Ihe year. Movement in market value ol investments.. 2025 £'ooo 20Q4 £'ooo Market value of investments at 1 September Addilions to investments at cost Proceeds on disposals Net gains on investments 1,990 1,748 (219) 33 1,691 101 198 Market value of inveslmenls at 31 August 3,552 1,990 Market value of investments by type.. 025 2,000 2024 £'ooo Fixed income Equities Propety Alternative investments Liquid assets Total market value of investments 150 931 41 148 2,287 240 1,453 67 151 79 (Historic cost of investments £3,440,212 12024.. £1,855,88711 3,55 1,990 Cash holdings 75 28 Total 3,627 2,018 Investments are held under management with Sarasin & Partners LLP. These are invested in the Sarasin Climate Active Endowmenls Fund ("Climate Active Fund.) and a Liquidity Fund set up in June 2025. Page.. 59

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 18 Other investments (continued) The Climate Active Fund seeks lo provide growth (through increases in investment value and income) of 4010 per year more than the Consumer Price Index over a rolling five year period, It has a global multi-asset portfolio with an integrated socially responsible investment policy that also lavours investments that may benefit Irom a move to a lower carbon economy, The fund will not invesl in lobacco and will also avoid investment in companies that have more than 100/0 of their turnover in armaments, gambling and pornography. The fund has additional restrictions including no investment in companies with 50/0 or more of their turnover involved in the mining of thermal coal or tar sands,, following engagemen( no investment in companies that needlessly emit significant quantities of carbon into the atmosphere, or which do not take seriously the transition to a low carbon economyi and qualitative judgments to be considered on a regular basis by the fund's Climate Active Advisory Panel. From 1 December 2025, the ethical restrictions of the Climate Active Fund will exclude the energy sector. The Liquidity Fund was established for funds expected to be required by the RA for operational and capital expenditure purposes in a period of less than 18 months. These are generally Invested for a period of up lo 12 months. The Liquidity Fund invests in certificates of deposit wilh a tenure not to exceed 12 months and the Blackrock ICS Sterling Liquidity Fund. The Liquidity Fund benchmark is SONIA. As at 31 August 2025 there were no amounts invested in certilicates of deposit. I g Debtors Group Royal Academy 2025 20&4 £'ooo £'ooo 2025 £'ooo 2024 £'ooo Trade debtors Royal Academy related entities The Friends of the Royal Academy Royal Academy Trust Taxation Staff loans Sundry debtors Prepayments and accrued income Total 926 1,356 244 1,320 640 1,198 49 35 680 19 612 18 589 1,843 4,437 67 680 55 61 18 475 1,590 4,588 790 1,836 4,324 539 1,655 4,513 20 Creditors - amounts falling due within one year Group 025 2,000 Royal Academy 025 2024 2,000 £'ooo 024 £'ooo Bank loan Trade creditors Royal Academy related entities The Friends of the Royal Academy Taxation and social securily Sundry creditors Accruals Deferred income 163 1,427 163 1,033 36 240 506 195 1,248 1,285 1,128 814 47 23 786 127 72Q 203 1,541 1,550 1,051 12 1,854 1,863 1,533 1,705 Total 6,108 5,740 5,120 4,706 Page.. 60

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 9025 20 Creditors amounts falling due within one year (continued) A Revolving Credit Facility of £5.Om is in place to manage operating working capital requirements. The facility èxpires on 21 August 2027. The facility can be drawn down in advanees with a minimum valuè of £0.15m. Each advancè is repayable after one month,. at the end ol the one month period the advance can either be rolled over lor another one month period or repaid. As at 31 ALJgust 2095, the facility was not drawn down (2024.. £nil). The bank loan was taken out in 2009 and was repayable in inslalments by 2025. The loan was repaid in 2025, Interest of £4,006 (2024.. £18,408) was charged in the year. i. Delerred income in gOQ5 includes ticket sales and sponsorship income for exhibitions in the next financial year, including Kerryjames Marshall.. The Histrories, Rose Wylie, and Richard Dadd and is analysèd as follows.. Group Amount added £'ooo Royal Academy Amount Carried released forward £'ooo S'ooo Broughl forward £'ooo Deferred income 2025 1,550 {4,462) 4,775 1,863 Delerred income 2024 1,550 (5,393) 5,393 1,550 21 Creditor5 amounts falling due after Tnore than one year Group 2025 £'ooo Royal Academy 2025 2024 s'ooo £'ooo 2024 2,000 Unsecured loan 10,000 10,000 10,000 10,000 Total 10,000 10,000 10,000 10,000 Crèditors include amoLJnts not wholly repayable within 5 years as follows.. Unsecured loan 10,000 10,000 10,000 10,000 In Decembèr 2014, the Royal Academy èntered into an unsècured £1 o.om loan facility agreement This amount was advanced in December 9014 and is repayable in ten inslalmènls of £ l.om each from 2035 until 2044, and has a fixed rale ol interest 014.91 Oh p.i. This facility was used lo fund exceptional operating costs during the BLJrlinglon Project construction phase and the plant upgrade/renewal programme for conditioning the Burlington House galleries. Interest of £421,000 {2094.. £421,000) was charged in the year. The Royal Academy remains compliant with its loan covenants. Page.. 61

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 Analysis of net assets by fund Endowment Restricted Unrestricled Burlington Projecl £'ooo Other Designated fund5 General Pension funds reserve Total £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo a. Group.. 2095 Investments Heritage assets Intangible assets Tangible assets Current assets 775 753 417 1,752 682 1,000 3,627 1,752 237 86,125 9,656 (6,108) (10,000) 561 937 83,367 9,189 16,0311 110,0001 1,568 33 1771 1,190 273 61 Long teim liabilitiès Pension asset 561 Total 775 2,277 3,732 743 77,762 561 85,850 Endowment Restricted Burlington Other Project funds s'ooo s'ooo Designated Unrestricled General Pension funds reserve Total s'ooo £'ooo s'ooo s'ooo s'ooo Group.. 2024 Investments Heritase assets Intangible assets Tangible assets Cuirent assets 775 2g8 1,594 673 179 9,018 1,594 907 90,391 10,995 15,7401 110,0001 1,01 I 907 88,075 9,997 15,7401 110,0001 1,091 670 Ig8 60 Long teim liabilities Pension asset Total 775 1,761 2,415 733 82,011 89,706 Endowrnent Restricted Designated Unrestricted Burlington Projecl £'ooo other funds General Pension funds reserve Total £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo b. Royal Academy.. 2025 Investments Hèritage assets Intangible assets Tangible assets Current assets 775 753 417 1,752 682 1,000 3,627 1,752 183 86,116 8,731 (5,120) (10,000) 561 183 83,358 8,264 15,0431 110,0001 1,568 33 (771 1,Igo 373 61 Long term liabilities Pension asset 561 Total 775 2,277 3,732 743 77,76 561 85,850 Page.. 69

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 Analysis of net assets by fund (continued) Endowment Restricted Burlington Other Projecl lunds 2,000 £,000 Designated Unrestricted Pension General funds Total reserve 'ooo 2,000 £'ooo £'ooo £'ooo Royal Academy.. 2024 Investrnenls Heritage assets Intangible assets Tangible assets Current assets 775 398 1,594 673 172 2,018 1,594 128 go,3g I 9,270 (4,706) (10,000) 128 88,075 8,34 (4,706) (10,000) 1,091 670 1,225 198 60 Long term liabilities Pension asset 1,011 Total 775 1,761 3,415 733 82,011 1,011 89,706 As disclosed in note 34, a prior year adjustment has been made to rèllecl a change in accounting policy pertaining to freehold property included in tsngible assets lor which depreciation is now provided. The amounts disclosed in unrestricted general funds have been restated accordingly. 23 Analysis of endowmenl funds Investment Unapplied gains less total return Opening fund managers allocated to Closing funds lees income funds S'ooo s'ooo s'ooo Group and Royal Academy.. 2025 £'ooo Dunard Scholarship.. Trust for investment Unapplied lotal relur Exhibitions fund.. Trust for investment Unapplied lolal return 625 625 (38) 1381 150 150 (g) (91 Total 775 (47) 728 Investment Unapplied gains less total return Opening fund managers allocated to Closing funds lees income funds £'ooo £'ooo £'ooo Group and Royal Academy.. 2024 £'ooo Dunard Scholarship.. Trust for investment Unapplied lolal return Exhibitions lund,, Trust for investment Unapplied total return 6?5 6?5 go (901 150 150 21 1211 Total 775 775 Page.. 63

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2095 23 Analysis of endowment funds {continued) Dunard Scholarship,. the fund was established in 2020 by a donation of £625,000 from the Dunard Fund. It is held as a permanent endowment and is being accounted for on a total return basis. The purpose of the fund is lo endow a student scholarship at the Royal Academy Schoo15 in perpetuity. b. Exhibitions fund,, the fund was established in 2019 by a donation of £150,000 from the Thompson Family Charitable Trust, and reclassified as permanent endowment in 2020, and is being accounted lor on a lolal return basis. The purpose ol the fund is lo support ongoing exhibition costs from investment returns. 24 Analysis of restricled lunds Unapplied Fair Income and total ieturn value Opening inveslTnent from gain5 / fund5 gain5 Expenditure endowmen15 (losses} Tran51ers Closing fund5 Group and Royal Academy.. 2025 S'ooo £'ooo s'ooo £'ooo s'ooo £'ooo £'ooo Other funds 7 Pembroke Studios Heiitsge assets Dunard Scholarship 24.a Exhibitions fund 24.b Burlington Project 198 1,513 1,594 94 3,263 13,000) 19) 1901 371 1,488 57 1,75 107 (35) 101 (251 16) 14) 28 1,761 590 2,277 Total 5,176 3,898 13,044) 47 (35) 133) 6,009 Unapplied Fair Income and total return value Opening investment from gains / funds gains Expenditure endowments (losses> Translers Closing funds Group and Royal Acaderny.. 2024 s'ooo s'ooo £'ooo £'ooo s'ooo £'ooo £'ooo Other funds Bloomberg fund 7 Pembroke Studios Heiitage assets Dunard Scholarship 24.a Exhibitions fund 4.b 343 238 1,438 1,574 99 2,678 12,8941 (2381 71 198 86 20 85 15 1,513 1,594 94 1251 (24) 90 21 Burlington Project 21,785 1,976 (343) (90,9571 1,761 Total 25,496 4,010 13,5351 35 (20,8711 5,176 Page.. 64

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 Q4 Analysis of restricted funds (continued) & Other funds include donations of £1,093,531 12024.. £582,084) received frorn the Royal Academy Trust, other donations of £2,169,837 (2024.. 22,061,908) and grants of £100,000 (2024.. 2104,5021 received for specific activities as disclosed in notes 5 and 6 respectively. The closing balance relates lo the following restricted ILJnds'. The Royal Academy architecture awards 2nil (2024.. 2nil).' established in 9018 Irom a donation of 260,000., a further donation of £255,000 was received in 2019. The awards take place annually foi five years and the monies are being used towards the management and running costs of the Royal Academy architecture awards, including architecture awards week where the winner of the Royal Academy Architecture Prize and the finalists for the Royal Academy Dorlman Award come lo London from aroLJnd the world lo partake in a week of events and adivilies and rèceivè their prizes. £10,000 of the money is given tc> the winner of the Royal Academy Dorfman Award each yeai. YoLJng Artists, Summer Show Sl 95,000 (9094.. Snil).. established in 2018 from a donation c>1 $67,620 (£51,516), with further donations of S90,187 in 9019, S97,390 in 2020, S11 9,600 in and g250,000 in 2025, Inspired by the Summer Exhibition, the Young Artists, Summer Show brings together work by pritnary arbd secondary-level students from across the UK and beyond in an annLJal exhibition. Swanston bequest £24,564 (2024.. £24,564).. established in 2014 from a legacy of 260,000. The beqLJesl is being used lor curating and publishing costs 8SSOCiated with the laddei Tondo. Genesis Future Curators £42,551 12024., S7,227)', established in 2023 frorn a donation of £69,000, wilh a further donation of 2109,000 In 2025. The fund Is being used lo establish a two year curatorial trainee scherne for two trainees to gain experience within curatorial practice, one in Collections and one in Exhibitions. Emma Seglert Bursary £45,81819024.. £97,818).. established in 2094 from a donation ol £27,818, with a further donation ol S97,000 in 2025. The fund provides a bursary to students studying at the Royal Academy Schools for a three year period, with the first bursary of £9,000 awarded In the academic year 2024/2025. The bursary can be awarded to one student for the three year dLJration of their studies, or on an annual basis to one or more students. Marie Ragnhild Hollingsworth Prize Fund £133,350 (2094.. £138,350).. established in 2023 from donations totalling £148,850. The fund provides $5,000 per annum for a prize at the Summer Exhibition. b. 7 Pernbroke Studios £1,483,000 (2024.. £1,518,000)., the fund was established in 2020 frorn a donation ol £2,159,884 ($2,790,720), of which £1,650,000 was used to purchase 7 Pernbroke Studios in September 2020, an artist's studio in London, with the balance ol the fund lo be Ljsed for the legal and professional lees associated with the purchase and repairs and maintenance ol the properly lor a period of up lo 95 years. It was the donor's wish that an artist, who has been using thè studio sincè 201 g, should bè ablè lo continue to have exclusive, rent free use of the studio for as long as she is actively and regularly using the sludio for up to a maximum 0125 years, At the end ol the said period, the Royal Academy will have full and free use of the studio ar)d have the right to sell the studio and apply the proceeds ol the sale towards ils general charitable purposes. Page.. 65

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 24 Analysis of restricted funds {continued) Burlington Project £2,277,000 12024,. £1,761,000).. Phase I was completed in 2018 and Phase 11 was completed in 2024, with all Burlington Project - Phase l and Phase 11 restricted and designated funds being transferred to unrestricted funds as specific identifiable assets were brought into service and as such, the reslriclions on these funds have been satisfied. The remaining restricted funds are in respect of Phase111 and other projects, which lorm part of the overall Burlington Project (see note 29). 5 Analysis ol designated funds Group and Royal Academy.. 2025 Opening funds S'ooo Investment gains s'ooo Closing funds £'ooo Income Expenditure Transfers £'ooo £'ooo S'ooo Total designated 733 230 12271 743 Group and Royal Acaderny.. 024 Opening funds Investment gains £'ooo Closing fLJnds Income Expenditure Transfers £'ooo £'ooo £'ooo £'ooo £'ooo Total designated 649 539 1523) 66 733 Council have designated the funds detailed below from unrestricted funds,. Schools architect fLJnd £g2,868 (2024.. £88,562).. thè fund was èstablished in 2018 Irom a legacy of &88,029. The funds ale held on inveslment with Sarasin & Partners LLP, wilh the investment returns being usèd to fund an annual event as part of the RA Architeelure Programme in Sir Richard MacCorm&c's name. Schools annual travel prize 28,000 (2024.. £10,000).. a legacy of 220,000 was received in 9018 and designated as an annual travel prize of £2,000 lor students of the Royal Academy Schools. The first prize was awarded in 2018, with lurther awards in 2019, Q093, 2024 and QO95. It is anticipated this will be spent over a peiiod of l O years. Future Academy £642,218 19024.. £623,742).. unrestricted donations and legacies received in 2019, 2020 and 2022 have been designated by Council lor expenditure on the Royal Academy Schools (£42,761), the Collection (217,511 I, education1£500) and the President's Fund1£581,446), which is held lo support the Royal Academy in periods when there is unexpected volatility in income or expenditure. 26 Admini51ered funds The Royal Academy has six funds which have not been tonsolidated within the linanei81 slalements of the Roy81 Academy, on the basis that while the Royal Academy is administering the funds, it is not the ullimale beneficiary. However, as the funds are administered by the Royal Academy, these have been disclosed separately bèlow lor information. These funds consist ol the lollowinq.. Frampton Fund Agnes Ethel MacKay Fund Jack Goldhill Sculpture Fund Charlès Wollaston Award Fund Pilchforth Scholarship Fur)d Sir John Reeves Elleiman Fund Pagè.. 66

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 26 Administered funds (continued) 2095 s'ooo 2094 S'ooo Income from inveslments 68 26 Expenditure (16g) (133) Net gains on investments 491 631 Net gain 890 524 Tolal lunds brought forward 4,838 4,314 Total funds carried forward 5,228 4,838 Represented by.. Investments Cash at bank Debtors Creditors 5,103 91 69 (35) 4,690 62 103 (17) Totsl lunds 5,228 4,838 27 Reconciliation of net income to net cash inflow from operating activities 2095 s'ooo 2094 s'ooo Net expenditure Heritage assets gifts Amortisation of intangible assets Depreciation of tangible assets Loss on disposal of tangible assets Fair value loss / (gain) in value of investment propety Current pension service expenditure Decrease / (increase) in stock Decrease / (increase) in debtors Increase / (decrease) in creditors Interest paid Interest received (3,595) (101) go 5,661 32 35 189 (9,974) (20) 81 5,324 135) 4,081 (26) (75) (319) 441 (517) (48) (198) 113 535 4Q5 (183) (42) (88) Dividends and interest from fixed asset investments Net gains on fixed asset investments Net cash provided by operating activities 3,144 (1,&66) Page.. 67

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 28 Pension costs The Royal Academyi together with ils subsidiary undertakings, participates in a funded defined benefil pension scheme, operated by the Royal Academy of Arts Pension Scheme C'lhe Scheme,?, providin benefit based on final pensionable salary. The assets of the Scheme are held independently from those ol the Royal Academy. The Scheme provides pensions in retirement and death benefits to members. Pension benefits are linked to the members, final salary at retiremenl and their length of service up to the date on which the Scheme closed to future accrual, being 30 September 2016. The Scheme is a reglstered scheme under UK legislation and was not contracted out of the State Sector Pension prior to the cessation ol contracting out from 6 April 2016. The Scheme is subject to the scheme funding requirements outlined in UK legislation. The Scheme was established from 3 January 1985 under trust and is governed by the Scheme's definitive trust deed and rules dated 31 March 1998. The trustees are responsible for the operation and the governance of the Scheme, including making decisions regarding the Scheme's funding and inveslmenl slrategy. A full aduarial valuation of the Scheme was carried out as at 31 August 2022 and has been updated to 31 August 2025 by a qualified independent actuary. Since June 2006 the Scheme has been closed to new members and closed to future accrual on 30 September 2016. A full buy-in of the Scheme's pension liabilities with an insurei, being Ihe first stage towards buy-oul and an eventual winding up of the Scheme, was successfully concluded with Aviva on 2 July 2024. The major as5UTnptions used by the actuary were (in nominal terms) as follows.. 025 9024 Discount rate Inflation assumption (RPI) Inflation assumption (CPI) 5.9 2.9 9.2010 5.0010 .3010 Pension increases for service accrued.. Pre 6 April 1997 6 April 1997 to 30 September 2006 Post 30 September 9006 2.3 2.90/0 ?.OO/o 3.0010 .1010 Assumed life expedancies on retirement at age 60 are.. Retiring in 2022 - Males Retiring in 2022 - Females Retirino in 2042 - Males Retiring in 2042 - Females 26.3 28.7 27.9 30.2 25.9 28.5 27.4 30.0 The assumptions used in determining the overall expected return of the Scheme's assets have been set wilh reference to yields available on governmenl bonds and appropriate risk margins. Page.. 68

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 28 Pension costs (continued) The assets in the Scheme were.. 2025 £'ooo 2024 'ooo Cash Insurance policy 1,660 4,834 1,777 27,030 Fair value of Scheme assets Present value of funded obligatlOnS 26,494 (25,933) 28,807 (27,796) Surplus in funded Scheme 561 1,011 Net asset in balance sheet 561 1,011 Reconciliation of opening and closing balances of the present value 2025 £'ooo 2024 £'ooo Benefit obligation at beoinning of year Interest cost Actuarial (gains) / losses Benefits paid Past service cost 7,796 1,369 (2,185) (1,047) 25,578 1,342 1,417 (912) 371 Benefit obligation al end of year 5,933 27,796 Reconciliation of opening and closing balances of Ihe fair value of Scherne assets.. 2025 £'ooo 9024 £'ooo Fair value of Scheme assets at beginning of year Interest income on Scheme assets Return on assets, excluding interest income 8enefits paid Scheme administrative cosl Settlements 28,807 1,414 (Q,446) (1,047) 1234) 31,763 1,619 324 (912) (267) (3,720) Fair value of Scheme assets at end of year 26,494 28,807 The amounts recognised in the SOFA.. 025 £'ooo 2024 S'ooo Service cost- including current and past service costs and settlements Service cost- administrative cost Net interesl on the defined benefit pension scheme asset 4,091 267 (277) 234 (45) Total expenditure 189 4,081 Page.. 69

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 28 Pension costs (continued) In 2024, the service cost including currenl and pasl service costs and settlements of £4,091,000 included £3,720,000 settlement cost arising from the purchase of an insurance policy on 2 July 2024 for all the pension liabilities of the Scheme, The settlement loss of £3,720,000 was calculated as the difference between the premium paid for the insurance policy by the Scheme of £30,419,000 and the actuarial value of the liabilities placed on the insurance policy at Ihe purchase settlement date of g July 2024. The service cost - administrative cost of £234,000 (2024.. £267,000) includes expenses in respect of the insurance buy-in and the transition to buy-out and from 1 July 20?4 the expenses ol operating the Scheme. Remeasurement of the defined benefit pension scheme asset.. 9025 £'ooo 2024 £'ooo Actuarial (gains) / losses on the liabilities Return on assets, excluding interest income (2,185) 2,446 1,417 (324) Total remeasurement of the defined benefit pension scheme asset 261 1,093 29 Authorised and contracted capital expenditure Group and Royal Academy Assets in Total project course of Authorised but not cost construction contracted for £'ooo s'ooo £'ooo other projects 8urlington Project- Phase111 Other Burlington Projects., Burlington House fa¢ade 11,600 1,516 10,084 750 59 698 Total 12,461 1,679 10,789 Burlington Project- Phase111 is the redevelopment of the Collection Gallery. This is currently at RIBA Slage 4 design. The RA is receiving generous support from an anonymous donor to realise this project Nearly £6,8m has been received lo dale (including investment returns), with the funds held by the Royal Academy Trusl until required by the Royal Academy. £0.5m was donated by the Royal Academy Trusl in 2018, wilh a further &0.5m in 2019., 20.?m in ?094., and £0.5m in 9095. These donations have been used to fund costs incurred to date with the balance being held in cash at bank. £5.1 m is being held and invesled by the Royal Academy Trust Ljntil required by the Royal Academy, with further interest accruing on these funds. The Burlington House faGade project is in respect of the restoration and the cleaning of the faGade. This project is at a preliminary design stage but a £O,Tm budget was approved by Council in April 2021. This project has been fully fundraised. The lunds are included in investments less project costs incurred to date. Page.. 70

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 30 Contingent liabilities The Royal Academy and its subsidiaries had no contingent liabilities as al 31 August 2025 (2024.. none), 31 Financial commitTnent5 Group and Royal Academy Al 31 August lotal commitments under operating leases were as follows.. Land and buildings £'ooo 2025 Total £'ooo Land and buildings £'ooo 2024 Total £'ooo other s'ooo Other s'ooo Under one year Two to five years Over five years 190 762 333 203 774 333 190 762 594 203 788 524 26 Total 1,285 1,310 1,476 39 1,515 32 Financial instruments The financial statements include the following linancial instruments at 31 August.. Group ?025 S'ooo 2094 £'ooo Financial assets measured at amortised cost 1,698 ,701 Financial liabilities measured at amortised cost 13,194 13,461 Financial assets measured at lair value 3,627 9,018 33 Related party transactions Those in positions of authorily within the Group, including trustees, Council members and directors, use facilities of the Group on the same terms as other Royal Academicians, Friends, Patrons or external customers. This includes access to exhibitions, purchases from shops, Summer E¥hibilion, and auctions, and also the use of catering facilities. For the year ended 31 August 9025, all transactions with relaled parties are considered within the scope of normal transactions. Income of £356,787 (9024.. £886,903) was received from R.A. Enterprises Limited, being a distribution of 1000/0 of their net income for the year. In addition, R.A. Enterprises Limited was recharged salaries of £1,888,499 (2024.. £1,836,175) and other expenses of £636,214 (2024.. £773,632), including a share of central support costs and a licence fee for the use of the RA name, data and rights. At the year end, £980,421 (&024,. £1,104,671) was owed and included within the Royal Academy's debtors. Page.. 71

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 33 Related party transactions (continued) Income of £70,530 (2024.. £161,863) was received from Burlington House Limited, being a dislribution of 1000/0 of their net income for the year. In addition, Burlington House Limited was recharged expenses of £5,311 (2024.. £17,695). At the year end, &46,712 was outstanding and included within the Royal Academy's creditors (2024.. £35,662). Income ol £1,525,009 (2024.. £933,448) was received Irom RA (Arts) Limited, being a distribution of 1000/0 of their net income for the year. In addition, RA (Arts) Limited was recharged salaries of £151,506 (2024, 2128,154) and other expenses of &274,406 (2024.. £83,978), including a share of central support costs and a licence fee for the use of the RA name, data and righls, At the year end, £329,611 (2024.. £93,499) was owed and included within the Royal Academy's debtors. Income of S9,956,164 (9024.. s10,105,047) was received from The Friends of the Royal Academy, being I OOO/o of their net income for Ihe year. In addition, The Friends of the Royal Academy reimbursed salary and other expenses recharged of S588,502 {2024.. 2495,607). At the year end, £22,914 was owed and included wilhin creditors (2024.. 2239,649). In order lo optimise cash management efficiency, the sterling current accounts of the Royal Academy, its subsidiary undertakings and The Friends of Ihe Royal Academy are pooled, such thal overnight all cleared debit and credit balances on the current accounts of these entities are set off into a single Royal Academy account. The debtor and creditor balances bebNeen each of the entities in Ihis pooling group al the year end In part reflects this pooling arrangement During the year, the Royal Academy received income of £2,773,531 12024.. £1,877,084) from the Royal Academy Trust with donations of S500,00012024.. £200,000) towards Burlington Project Phase 111 and £2,973,531 (2024.. 21,677,084) further donations to support various campaigns and projects undertaken. At the year end, £66,979 (2024.. £54,777) was owed and included within the Royal Academy's debtors. Several trLJStees, who are Royal Academicians, SLJpport the RA Editions programme. These specially commissioned, limited-edition artworks are created by Ihe Royal Academicians and are published and sold through R.A Enterprises Limited. Due to the absence of any reliable measurement basis, the contribution of these trustees is not recoqnised in the financial slatements. 34 Prior year restatement As disclosed in note 2.s, prior year adjustments have been made lo reflect a change in accounting policy pertaining to freehold property for which depreciation is now provided and lo eliminate intercompany income and expendilure between the Royal Academy and its subsidiary undertakings and to re-analyse Ihe Museums and Galleries Exhibition Tax Relief credit from other gains and losses to income. As disclosed in note 2.s, the elimination of intercompany transactions and re-analysis of Museums and Galleries Exhibition Tax Relief have no impact on the SOFA. Therefore, the restatement of comparatives provided below pertain to the change in accounting policy for the Royal Academy's freehold property, 6 Burlington Gardens. Page.. 7

The Royal Academy of Arts Notes to the Financial Statements For the year ended 31 August 2025 34 Prior year restatement (continued) Reserves Posltion 31 August 2024 Group and Royal Academy Unrestricted Restricted Endowment £'ooo S'ooo s'ooo Total £'ooo Funds previously reported 103,626 5,176 775 109,577 Adjustment: Depreciation of 6 Burlington Gardens (19,871) (19,871) Funds restated 83,755 5,176 775 89,706 31 August 2023 Group and Royal Academy Unrestricted £'ooo Restricted Endowment £'ooo s'ooo Total £'ooo Funds previously reported 92,389 25,426 775 118,590 Adjustment: Depreciation of 6 Burlington Gardens (17,817) (17,817) Funds restated 74,572 25,426 775 100,773 Consolidated Statement of Financial Activities (including an income and expenditure account) For the year ended 31 August 2024 Burlington Project Restricted funds s'ooo Unrestricted Restricted Endowment s'ooo S'ooo £'ooo Total s'ooo Net movement in funds previously reported 11,237 (296) (20,024) (9,013) Adjustment: Depreciation of 6 Burlington Gardens (2,054) (2,054) Funds restated 9,183 (226) {20,024) (11,067) Page.. 73