2022-08-31-accounts

Royal Ballet School Annual report and financial statements for the year ended 31 August 2022 Charity re8iStration number- 214364 Company registration number.. 547018 Princlpal and reglstered offlce: 46 Floral Street, London WC2E 9DA

Contents PRINCIPAL ADDRESSES....................................................................................................... ADVISORS........................ . GOVERNORS, DIRECTORS AND CHARITYTRUSTEES....................................................... EXECUTIVE LEADERSHIP TEAM.... . INTRODucfioN FROM THE CHAIRMAN................... REPORT FROM THE ARTISTIC DIRECTOR & CEO..................................................-.. ............. ........... AIMS AND OBJECTIVES OF CHARITY.....-...-.................................................... ..................-.............. CHARITABLE ACTIVITIES........... .10 ACADEMIC EDUCATION........................................................................................................................13 STUDENT WELLBEING.............................................................................................. .14 TRAINING AND ACCESS..........................................................-......................... .. -15 FUNDRAISING......... .16 FINANCIAL REVIEW.................................................................... .17 GOVERNANCE .. .20 INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OFTHE ROYAL BALLET SCHOOL.................. -.24 STATEMENT OF FINANCIALACTIVITIES.................................................................................,...... ........28 BALANCE SHEET..............,....................................................................................................................29 STATEMENT OF CASH FLOWS................................................... .30 NOTES TO THE FINANCIALSTATEMENTS... ..................................................-.-.....................................31 Page 2

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS PRINCIPAL ADDRESSES UPPER SCHOOL (students aged 16+1 The Royal Ballet School 46 Floral Street Covent Garden London WC2E 9DA WHITE LODGE Istudents aged 11-161 The Royal Ballet School White Lodge Richmond Park Richmond TWIO SHR ADVISORS AUDITORS: Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW BANKERS: 8arclay5 Bank PIC Education Team Level 28, Churchill Place London E14 5HP SOLICITORS: Veale Wasbrough Vizard5 Narrow Quay House Narrow Quay Bristol BSI 4QA Sheridans 76 Wardour Street London WIFOUR INSURANCE BROKER Circle Insurance 118 Holyhead Road Coventry CVI 3LY FINANCIAL ADVISORS Origin Financial Services PLicJe 3

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS GOVERNORS, DIRECTORS AND CHARITY TRUSTEES The Governors of Royal Ballet School (the School) are the School'5 Charity Trustees under Charity law and the Directors of the Charitable Companv. Detailed below are the Governors who served in office durlng the year and subsequently: Christopher Rodrigues CBE (Chairman) Carlos Acosta CBE Justin Albert Delia Barker (appointed 30 March 20221 Anna 8irkett Suzi Brennan Tom Clementi Richard Dennen lappointed 16 November 20221 David Ebstein Janet Lambert (resigned 11 October 20221 Menna McGregor Kevin O'Hare CBE Craig Ranson Zita Saurel Nishi Somaiya Stephen Spurr Kenneth Steele (resigned 11 Odober 20221 Susan Wijeratna Lady Sainsbury CBE 15 Governor Emerita of the School. COMPANY SECRETARY Pippa Adamson EXECUTIVE LEADERSHIP TEAM The Executive Leadership Team are responsible for the day-to-day running of the School. They are.. ARTISTIC DIRECTOR & CHIEF EXECUTIVE OFFICER Christopher Powney ACADEMIC & PASTORAL PRINCIPAL David Gajadharsingh CHIEF OPERATING OFFICER Pippa Adam50n COMMERCIAL DIRECTOR Carol Dray Page 4

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS INTRODUCTION FROM THE CHAIRMAN 'The classlcal school ha5 proved itself to be a great time-traveller as well as an Interpreter of Its own age.. rhese words, spoken by The Royal Ballet School's founder, Dame Ninette de Valois, are foremost in my mind as we head towards our centenary in 2026. While this is an opportunity to celebrate our wonderfully rich heritage and all that we have achieved, I reflert that The Royal 8allet School was built on the values of innovation and evolution. As Madam herself said, 'Someone must always be doing something new or life would get very dull. There is much to be proud of this year. We have maintained academic and artistic excellence across our training programmes, nurturing each of our young students holistically to ensure they are fit for the stage and for life. Following in the footsteps of nearly 100 years of world-class dancers, choreographers and teachers, students from The Royal Ballet School continue to lead the way, displaying truly remarkoble artistry and technical brilliance, a comprehensive knowledge of their raft and the promise to have a tremendous impact in the dance world and beyond. We have championed excellence through our profe55ional development programmes, equipping dance teachers around the world with the tools to create positive studio environments and unleash each student's potential. We have developed our digital capability, Using an audience-focused mindset and tarefully curated content to share what we do on a global scale and extend ac¢es5 to high-qualSty ballet education to many more people. By recognising the possibilities that a digital world affords, we have been able to inspire and influence, increasing our reach and value to society* opening up opportunities for new partnerships and firmly cementing our unique platfom) and voice. There have been challenge5. and there are more ahead of us. My goal is slmple, to ensure the School is put on a stable footin8 financially for it5 second century, so that it sustains Its position as a world leader, setting the global standard artistically, academically. in recreational dance, in dance teaching, in health and pastoral care and beyond. To do this, our centenary appeal will have two key themes. Firstly, we are embarking on an essential project to expand accommodation at White Lodge. By adding 32 extra beds to our White Lodge accommodation. we can train more exceptionally talented young students, populating generations of artists and securing the future of the art form. In addition, the economics of the School will be fundamentally improved. with the School benefittlng from a net increase in income of arour)d £700,000 per year, every year. We are currently fundraisin8 for this £7 million project. Secondlyi we want to take advantage of our centenary to grow our bursary scheme. This programme allows any student of uncommon talent, whatever their financial resources, to receive world-class Royal Ballet School training. The bursaries have become ever more crucial in these testing and uncertain times. Finally, there is a near and present challenge for many of our students. To be able to fully benefit from the Royal Ballet School experience. they need support beyond the cost of their education, for uniforms, shoes, kit, and travel expenses. We have started an equal opportunities fund to help students with these additional èxpenses. l am deeply grateful to all our staff who continue to show resilience, adaptability and great enthusiasm for our work as we navigate our way through a post-COVID world. This year, we were particularly delighted that Hope Keelan was awarded the Royal Ballet Governors Gold Medal in recognition of her 50 years of outstanding teaching.

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS I would also like to take this opportunity to wel¢ome our newest governors, Delia Barker and Richard Dennen, and to express our gratitude to Janet Lambert and Kenneth Steele as they reach the end of their tenure. As always, my thanks to all our Governors for their tireless hard work and constant support. l extend my heartfelt gratitude to our supporters, without whom we could not maintain our unmatched reputation and the incomparable training and care we offer these extraordinary young people. nor could we extend our reach to give access to so many who wouldn't otherwise have the opportunity to experience the life-enrichin8 properties of dance. Finallyi we were honoured to be part of the celebrations for our late Queen's Jubilee in August, Marking her 70 years as monarch and 66 year5 of our Royal Charter. The Royal Ballet School motto, 'Strength and Grace,, reflects the style in which Her Majesty served her country. Her remarkable dedication will never be forgotten and she is an inspiring example to us all as we enter the next era of our country's shared future. We will forever be grateful for her patronage and support. Pcige 6

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS REPORT FROM THE ARTISTIC DIRECTOR & CEO In 2021122 we were delighted to welcome all students back to the School for a full year of uninterrupted training. While it has been inspiring and heartening to see the endurance, adaptability and p051tivity of our students and staff throughout the COVID pandemic, it is a joy to now embrace what we hope is a new COVID-free normality. I'm immensely proud to say that 25 Pre.professional students graduatefl from the School in 2022, with 22 going ori to full-tirne employment with ballet companies, five of these with The Royal Ballet and five with Birmingham Royal Ballet. In addition, two short-term contracts were offered and two students are repeating the Pre-professional year due to injury leading to them missing the audition season. The achievements of this group of dancers are exceptional, considering that their full three year5 at Upper khool and the current work field were affected by the pandemic= they have shown resillence, fortitude and dedication in such challenging circumstances. We were overjoyed to present a full Summer Performance season, with a total of 22 performances across four weeks: ten at the Margot Fonteyn Theatre at whlte Lodge, six in the Linden Theatre at Upper School, five at Opera Holland Park, culminating in our final performance on the Royal Opera House main stage. We presented works from a diverse range of choreographer5, showcasing the artistry and versatility of our brilliant students, including Sir Frederick Ashton's pas de douze from Swan Lake, Wayne McGregorfs Presentient, John Neumeierf5 Yondering and Marius Petipa's Raymonda Act 111, as well a5 new works by Jason Mabana, Mikaela Polley and Joseph ToonEa. The students and staff produced some exceptional performances to great acclaim, and bringing the entire student body together on stage for the iconic Grond Defile for the first time in three years was a glorious moment to witness. The matinee performance at the Royal Opera House wa5 dedicated to Lord John Sainsbury. who sadly died in January. The impact of Lord and Lady Sainsbury's philanthropy on The Royal Ballet School cannot be overstated, and the dlfference they have made to the lives and careers of generations of young ballet students is truly immeasurable. We will forever remember Lord Sainsbury with the most heartfelt gratitude. In September 2021, we introduced a new structure to our eight-year training programme, introducing four stand-alone cohorts, each with an Artistic Manager. I congratulate the staff for a successful transition to the new structure and all the student5 who completed one of the training programmes in 2022.1'd also like to congratulate all students on another year of excellent academic results, demonstrating their focus and commitment to their academic studies alongside their passion for ballet. I'm thrilled that we have continued our ground-breaking work in dance teacher training with our new Affiliate Training and Assessment Programme, a unique and innovative approach to teaching dance in the recreational sector which was met with great enthusiasm. In addition, we celebrated another cohort of graduates from our prestigious Dlploma of Dance Teaching, and we've continued to embed our teacher training ethos both with the exceptional teachers we have in the School and to dance teachers globally through our highly-regarded seminar and webinar series, having a Clear impact in raising standards and changlng the way ballet Is taught. Our full Intenslve Courses programme returned this year, with cohorts of students from all over the world joinin8 us in London for both our spring and Summer Intensives. We also launched Primary Prigo 7

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS Steps on Demand, a digital programme for primary schools, expanding the work of our in-person Primary Steps programme to all primary school-aged children around the world. Our commitment to widening access to our unique expertise and experience and to high-quality ballet education continues with the expansion of our international and UK auditions, masterclasses and recreational programmes. As ever, I'd like to thank the dedicated staff of The Royal Ballet School, our devoted Governors, collaborators and partners, and our steadfast supporters, who help to make our students, extraordinary achievements and the School's important work possSble. Pcicje 8

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS AIMS AND OBJECTIVES OF CHARITY OUR VISION Our vision is to be the best classical ballet school in the world. OUR MISSION Our mission is to nurture, train and educate exceptional young dancers for the Royal Ballet companies and other leading UK and international companies, ar)d to inspire the future of classical ballet training. OUR VALUES I. STRIVING FOR EXCEiiENCE The Royal Ballet School is alway5 working towards excellence in everything we do. We bring the utmost integrity, passion and dedication to our work, always. Through our constant drive to achieve the highest standards, we set the standard for others, enriching and inspiring our sector and definin8 its future. 2. NURTURING INDIVIDUALS We believe in the unique potential of each individual. We nurture each human holistically, equlpping them with the too15 they need to shape their futures as healthyi resilient human beings. We are committed to equity and ensuring all individuals have what they need to reach their potential. We tultivate supportlve, nourishing environments built on trust. respect, open communication and kindness. 3. AcfivELY WIDENING ACCESS Ballet and creative dance education should be acce55ible to all. We work proartively to create opportunities for people to engage with ballet wherever we can and to expand our reach across the UK and globalw, including through digita1 access. It is particularly important to us to work to improve access routes to ballet in areas with little access to arts education. 4. OUR HERITAGE NOURISHES OUR FUTURE We have a rich and unique heritage and we champion ballet excellence throughout the ages, respecting, preserving and honouring what has gone before, while also valuing our history a5 instructive, enabling us to acknowledge, learn and develop. Our heritage is the foundation from which we sustain and evolve the School and reach outwards, impacting our sector and society as a whole. 5. ALWAYS INNOVATING We are a bold, forward-thinking organisation. dedicated to contlnuous evolutlon. We take an innovative, pioneering outlook, committed to creative thinking to ensure we remain at the forefront of all we do. We act as thought leaders and contribute to setting the agenda for classical ballet globally. We actively seek to work with other individuals and organisations, sharing knowledge and building on our research Collaboratively. P.)ge 9

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS CHARITABLE AcfiviTIES A5 well as full-time training, The Royal Ballet School offers a variety of prograrnmes aimed at engaging with and training in classical ballet. The Artistic Director of The Royal Ballet School, The Royal Ballet and Birmingham Royal Ballet work closely together and the School benefits from the Artistic Director5 of both companies being Governors of the School. Their commitment and input into the School as Governors and a5 industry advisor5 are invaluable. FULL TIME STUDEhrrTRAINING The School is located across two sites. White Lodge in Richmond Park is a boarding School for 11 to 16-year-olds and Upper School in Covent Garden trains Students aged 16 to 19. Upper School Students board at Aud Jebsen Hall In Pimlico and Jebsen House In Covent Garden. Training is split across four programme5 Wlth each programme tailored to support the training needs of a specific cohort of students. Foundation Programme for Years 7-9 Development Programme for Years 10-11 Vocational Programme for Years 12-13,. and Pre-professional Programme or Year 14. ASSOCIATE TRAINING The School provides dante training to young Associate students, introducing them to the School's System of Training. Many As50ciate5 With significant potential go on to gain a full-time place at the School. Weekend classes are run for Junior Associates for ages 8 to 11 at nine centre5 across the United Kingdom- Mid Associate classes for ages 11-14 are held in six centres across the Unlted Kingdom- Senior Assotiate5 classes for ages 14 to 16 are held in London and Birmingham and Advanced Associate classes for 16 to 18-year-olds are held in London. As well as regular classes, workshops are run throughout the year. INSIGHT AND ACCE55 OPPORTUNITIES The School invites young dancers aged between 8 and 15 year5 to attend special events around the country and online. Insight opportunitie5 include experiencing a typical Associate lesson, learning what it is like to audition for the School and givinB primary and secondary schools a behind-the- scenes look at classical ballet training. INTENSIVE COURSES AND MASTERCLA55ES The Intensive Course and Masterclass Programme offers young people aged 10 to 20 the opportunity to experience Royal Ballet School training. Typically, intensive courses run from one to five weeks in the UK and overseas. UK intensive courses are held at White Lodge and Upper school. While some courses are non-residential and students can attend daily, some are residential. giving students the chance to experience life at the School alongslde tralning. Masterclasses are held on a single day and are open to any young person who would Ilke to

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS experience Royal Ballet School training. PRIMARY STEPS The Royal Ballet School is committed to broadening access to the study of classical ballet and creative dan￿ as part of a child's wider academic education. The Primary Steps programme introduces primary School children to classical ballet through regular dance classes. Primary Steps is a national junior school programme which provides class Broups in Years 3-617-11 years oldl with a positive introduction to ballet, followed by initial creative ballet training for selected children who would not otherwise have the opportunity. The programme gives access to ballet education for thousands of thildren. targeting areas of social, economic and cultural diversity. In June 2022, the School launched Primary Steps on Demand, making hlgh-quality creative dance education from The Royal Ballet School available to all primary schools via it5 online platform. The programme provides educators with everything they need to integrate ballet education into their curriculum without the need for any dance teaching experience. The programme is developed to be accessible to all, including those with special educational needs or physical disabilities. It uses Inclusive language and content. DIPLOMA OF DANCE TEACHING The Royal Ballet School's Diploma of Dance Teaching is a two-year part-time course that trains professional dancers and teachers to teach classical ballet at a vocational and pre-professional level to a world-class standard. The course provides a sound foundation in technical and creative approaches to teaching ballet to a broad range of students Using the School'5 vocational vocabulary and methodology and drawing on the most recent relevant pedagogv. PROFESSIONAL DEVELOPMENT Inspire seminars are held in the UK and internationally. The seminars support the professional development of teachers from all backgrounds and levels of experience. Alongside giving teachers a comprehensive understanding of the teaching of classical ballet technique, the seminars offer fresh. innovative ideas to guide teachers in their approach. They are non-5yllabus-based and Erounded in good teaching practice. Enlighten webinars provide invaluable insight and information surrounding all aspects of dance teaching and learning and are taught online by expert staff. The webinars draw on the School's heritage and knowledge as a world leader in dance training and education. AFFILIATE TRAINING AND ASSESSMENT PROGRAMME The Affiliate Training and Asse55ment Programme (ATAPI extends the School'5 System of Training to recreational dance teachers, driving forward the standard of recreational dance training and keeping pace with the changing needs of the art form. The innovative programme offers an alternative to the current model of examination study offered by recreational dance organisations. The programme is based on providing high-quality training rather than student examination. Affiliate Teachers are empowered with the responsibility for guiding and assessing their own students, learning, and have autonomy in their approath, providing teachers with ongoing professional development and greater creative and profe55ional fulfilment. P.4ge 11

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS EQUITY DIVERSITY AND INCLUSION The Royal Ballet School is committed to creating and nurturing 3 community where each student and member of staff is valued equally. We are proud that admission to the School has for many years been based solely on talent and potential. The Royal Ballet School is committed to being accessible regardless of cultural, 59cial and economic background5. Page 12

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS ACADEMIC EDUCATION The Royal Ballet School 15 a non-selective school for academic education, and students arrive with differing educational needs. The School believes that students become better crÈativè artists by using their brains and bodies. Academic work is of equal importance to artistic training. We are deli8hted that once again, this year our student5 have performed well in their academic examination5. BA (HONS): CLASSICAL BALLET AND DANCE PERFORMANCE (Validated by The University of Roehamptonl Year 14 (Pre-professionall was the third cohort to complete the BA (Honsl degree. There were 22 entries, of which 16 were awarded I, Class Honours and the remaining were classed as Upper Second, 2..1. FOUNDATION DEGREE: CLASSICAL BALLET AND DANCE PERFORMANCE (Validated by The University of Roehamptonl The foundation degree is completed by our Year 13 students,12nd Yearl. We were delighted that 13 of our 14 candidates achieved a Distinction. The remaining candidate was awarded a Merit. A LEVEL RESULTS Students may choose to take one A-Level alongside the degree programme. The numbers of entries are small. In 2021122 three students took an A-Level with two students achieving an A. and the third student achieving an A. EXTENDED PROJEcf QUALIFICATION (EPQI RESULTS As part of the academic enrichment programme at the Upper School, student5 may choose to study a range of academic and vocational courses in addition to the degree. One of the options is the Extended Project Qualification. This is organised and supeTV15ed by the academic team. The 2022 ohort was the first to enter this qualification. There were seven entries of which two gained an A two earned Bs and 2 received cs. GCSE This year saw GCSE examinations return to pre-COVID norms wrih students Sltting exam5. There were 201 exam entries of which 95% received a Grade 4-9 (equivalent to A.C under the previous grading system) with a 100% pass rate. Pajp 13

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS STUDENT WELLBEING Excellent physical and mental healthcare is vital for a student to achieve their potential as a dancer. The School is committed to caring for its students holistically so that they become healthyi resilient humans, able to succeed in whichever path they choose to pursue. The School is committed to the highest standards of tralning. Thls Includes how teachers and students behave in and out of the studio. Each year, teachers and students commit to a set of behaviour expectations, whlch are displayed around the School and in every studio. Visiting teachers, repetiteurs and choreographers receive a personalised induction Into safeguarding and studio behaviours before they start work with our students. Our safeguarding team work closely with The Royal Ballet and Birmingham Royal Ballet to ensure the highest standards of safeguarding while our students work with the companies. students have access to an online, anonymous reporting system to raise concerns over any pastoral or safeguarding issues. Staff have access to a reporting system to raise toncems about the welfare of any of the Students in the School's care. All students are Supplied with private medical cover. This ensure5 that students, regardless of Inancial means, have attess to immediate specialist healthcare. The School is proud of its commltment to mental well-being as well as physical. Students have access to in-house counsellor5 on both sites and can be referred or self-refer. The School supports students to take age-appropriate responsibility for monitoring their own well-bein& with strength and conditioning embedded as part of their normal training. Dailv monitoring 15 done via a Wellness App which allows students to quickly and simply log dat? such as sleep quality and hydration. The School is committed to creating a nurturlng environment where all students feel welcome regardless of background. The School has a uniform and hair policy that embraces different student ethnicities. Hardship bursaries are available to students to ensure they can particlpate in any extra-curricular activities. All students entering Year 7 are issued with a School iPad, providing equal acce55 to technologv.

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS TRAINING AND ACCESS The Training and Access Team deliver a wide range of programmes that sit outside of the full-time student training. In 2021122.. we trained 541 Associate students,. 27 were offered a place to join the School for full time training from September 2022. 555 young people participated in an Insight Day we hosted eleven primary schools and seven secondary Schools for online Insight Days 990 participants joined an Intensive Course 94 in person and 224 online students took part in the Audition Insight Day in 2021. 15 graduated from the two-year Diploma of Dance Teachin8 444 teachers joined an Inspire seminar or Enlighten webinar We enrolled and trained 49 teachers in the new Affillate Teacher Trainlng Programme. 2,018 primary school students were offered a creative dance workshop as part of the Primary Steps Programme. In the first few weeks of its launch, we si8ned up 27 schoo15 for the on-demand Primary Steps pro8ramme. Of the Year 6 students who completed three years training through Primary Steps, 19 have kept dancing on a regular basis. Two students joined The Royal Ballet School at White Lodge,. four have been owarded places at their regional Centre for Advanced Training,. five have joined local youth dance companies; seven are taking lessons at a local dance school,. four have contirtued at their next school. Page 15

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS FUNDRAISING Fundraising is an essential part of the School finances without which we could not offer 5UPPOrt. training and performance opportunSties to so many students and young people. Total donations were £3,245,00012021- £3,358,000) which included £1,131.000 of government grants12021'. £1.131,0001. COVID reduced the activities the School has been able to offer over the last two years. 2021122 saw activities return to previous levels and increased demand for Student bursary 5UPPOrt. This year, our generous donors funded.. Full-tlme student bur5aries'. £1,147,000 Bursaries for Assoclate student fees £108,000 Bursaries for Sntensive course participants £63,000 Performance and artistic programme Primary Steps Programme The Healthy Dancer Programme The development of the School's digital programme One-off projects £200,000 £415,000 £336,000 £63,000 £230.0 General 5UPPOrt for the School £719,0(M) Direct expenditure on fundraising 15 kept to a minimum. Non-staff costs were £I5,￿oI2021.. £II,0001 increasing to £178,1XIO12021'. £156,000) with staff costs included. This amounts to 5% of donated income. All fundraising is carried out by the School's Development Team with support from members of the Development Committee and Governors. The school does not engage with any external third-partv fundraisers. Governor5 receive regular updates on fundraising regulations and guidance from the Head of Development and the Development Committee. The School abides by the appropriate code of conduct for all its fundraising. including consideration of the Issues raised in the Etherington Review into Charity Fundraising Practice issued in September 2015, whlch emphasised donor experience. The School takes it5 responsibility to anyone who might be vulnerable very seriously and will continue to consider this in the Charity's approach to fundraising attivity. The School does not engage in any cold-calling or put pressure on an individual to donate fund5, property or other assets. There have been no complaints in the period regarding inappropriate or intruslve contact. P.4J(f! 1 6

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS FINANCIAL REVIEW Each year, the School's financial objective is to break even across the total of its a¢tivitie5. The full~time school runs at an annual loss with the deficit filled by philanthropic support and revenue-generating programmes. In 2021122 the Charity delivered a1055 of £198,OCKI on its day-to- day operations before transfers, some depreciation and pension revaluation. INCOME The School on5y makes offers of full-time training to those who have the potential to become excellent dancers, so our ability to fill places depends on the calibre of applicants. In the year the School exceeded its target to have 214 students in the School, starting the year with 227 students. The School returned to a near-normal year of activities post-COVID. Students remained in school for the full year and we offered almost a full programme of Training and Access attivities. However. the intensive course and masterclas5 programmes in Hong Kongi Japan and South Korea could not go ahead due to continued COVID restriction5. Income from charitable activities rose by £940,000 to £9,229.00012021.. £8,289,000). Unrestricted income of £10,738.0(M)1£2021.. £9,720,000) was supplemented by restricted income of £1,796,00012021: £2,047,0001 totalling £12,534.0(X)12021.- £11,767.OfX)I. EXPENDITURE Durin8 the year, expenditure was closely monitored and well controlled. The School's main costs relate to staffingi premises and food and these are generally fixed in nature. Specific programme costs or donor-funded activities vary annually and typicallyi have matching income streams. Total expenditure for the year was £14,279,00012021.. £12,888,000),. the increase due to the reintroduction of the School's wider programmes cancelled during COVID. In the last 12 months, the School has been able to draw down on restricted donations received in previous years where COVID delayed or curtailed spend- specifically bursary support for Associates and intensive course students. building projects and programmes to enhance our full time student experience. Total expenditure of restricted funds for the year was £2,855,00012021= £1,667,000) The total costs of raising funds remained low at £520,CfJO12021.. £350,000) which amounted to 16% of donated income. This figure includes expenditure on fundraising and all marketing and communications activity. The increase is due to the expansion of the School'5 digital offer offset bv £63,000 of donated income. PENSION PROVISION Although the defined benefit pension scheme is now closed for future attrual, it remains significant risk for the School. particularly as the scherne reaches the end of its life circa 2034. The deficit as valued by FRS 102 is intluded in the balance sheet as a long-term liability and balanced by a negative pension reserve. The triennial valuation continues to be used to calculate any repayments required, and these payments are incorporated into the longer-term financial planning of the School so that these commitments can be met as they fall due in the future. A designated fund of £450,000 has been set aside to meet the cash commitments of purchasing member annuities. P.4.cJe 17

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS PLANS FOR FUtURE PERIODS During the financial year 2021122, the financial landscape started to shlft. Inflation set in alongside shortages of goods and labour. The School's most immediate need is to ensure its financial sustainability through the next few years. The School is wresting with a business model that relies on Government investment in a period of high inflation and anticipated cuts to government spending. Alongside the financial discussions sit wider questions of finding the right balance between elite training requirements and effective support for the whole child,. supporting young people who do not make it through the School: the environmental, Social and governance a8enda,' the place of ballet today and in the future: embedding our brand internally and externally: DESIGNATED FUNDS Post-COVID, the Governors set aside a designated fund for works that were scheduled but unable to be carried out during the lockdown. Most of the works were completed during 2020121 with the final works carried out in 2021122. The Governors have set aside a further £450.000 in the Designated Pension Deficit Fund to fund the deficit on the School's final salary pension scheme, The Royal Ballet School Pension and Life Assurance Plan. The Scheme is expected to run for another 12 years and while a recovery plan is in place, the amount5 paid in monthly will not always meet the cash requirements for annuities as members reti￿. This fund ensures the School has the funds to meet its obligations to its members. Further details on the pension fund can be found in Note 24. FUNDS AND RESERVES POLICY The School's unrestritted general reseNes at the year-end amount to £4,054.OLK)12021'. £2,855,000). Amounts designated for depreciation on property assets, maintenance and pension funds total £34,791,00012021.' £35,590,￿j0). Adding in restricted funds of £2,690,00012021- £3.749,0001 bring total reserves to £41,535,00012021.' £42,194,000). The unrestricted general fund is held to provide financial stability to the School while making sure that funds are used to achieve the School's aims wherever possible. The general fund allows the School to meet its financial obliEations and operate its business while managing risks and funding future work and development. The level of the unrestricted funds less those set aside for depreciation and the pension deficit under the most recent trierir)ial valuation at the year-end is £3,173,000, equivalent to 3.0 months average unrestricted operating costs. At this time, the Governors, having assessed the financial stability of the School believe the level of reserves to be adequate. However, in the longer term, the focu5 will be to build reserve5 for six months. Governors have reviewed the reserves policy in line with Charity Commission CC19 Guidance. Given the uncertainty around fundlng and the economic environment, the School considers it necessary to hold reserves of a level equivalent to three to six months of operating costs. The unrestricted designated fund has been put aside by Governor5 and represents the funds that are invested in property and other fixed assets for the use of the School and are therefore not available for other purposes. A further unrestrirted designated fund is set aside for the Clerical Medical PaJre 18

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS pension fund deficit. The designated fund of £5CQ,000 for the White Lodge Building Maintenance Fund, will be used in 2023 to fund the design and enabling works for the White Lodge expansion. Restricted funds are the balance of unspent funds received subject to specific conditions imposed by the donors, and are held separately to be spent in future periods. PRINCIPAL RISKS AND UNCERTAINTIES The Governors are responsible for the management of the risks faced by the School. The Board reviews the risk register and major risks reEularly. The major risks identified include the following- Managing the School in an uncertain economic environment with high inflation and supply chain Issues due to the war in Ukraine. L055 of or reduced levels of funding from the DfE in the face of stretched public finances. Managing safeguarding to ensure that students and staff understand how to identify risk and how and when to raise a concern, and are confident to come forward. Impact of the cost of living on the recruitment and retention of staff. Impact of the cost of living on staff and students and their families. It is recognised that systems can only provide rea50nable. but not absolute, assurance that major risks have been adequately managed. GOING CONCERN Governors are acutely aware of the pressures on public fundin& the current cost of living crisis and the high inflationary environment. The School's Development Team are continuing to raise additional funds for the School and students to provide much needed support. Equally the Governors have invested in new commercial programmes to maximise the School's Training and Access programme while generating new revenue streams. Governors regularly review the School's management accounts, cash position and five year forecast. The Governors have reviewed the current position carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as the employment of staff. There are currently significant cash balances should additional liquidity be required through this period of uncertainty. Accordingly, the Governors believe the School's financial resources are sufficient to ensure the School will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on the going concern basis. Pjiji? 19

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS GOVERNANCE The Royal Ballet School (the School) is a charitable company limited by guarantee (registered number 5470181 and not having a share capital, and it is also a registered charity (number 2143641. It Wa5 established in 1955 under a Memorandum of Association which sets out the objects and powers of the Charitable Company and is governed by Its Articles of Association. The School's objects and principal activity is to train and educate full-tirne student5 for a career as classical ballet dancers. The School has a wholly owned trading subsidiary TRBS Enterprises Limited which sells branded merchandise and hires out School premises, gifting its profits to the School. Consolidated account5 have not been prepared as the activities of the subsidiary are immaterial, but the trading results are shown in Note 5 of the financial statements and zny gifted profits are included in the Statement of Financial Activities. The Royal Ballet School Endowment Fund is a connected charity whose purpose is to provide fundin8 and facilities for the students at The Royal Ballet School. The connected charity is a separate charity with trustees who are responsible for that charity and their financial staternent5 which are not reported on in these accounts. The School is the official School of both The Royal Ballet and Birmingham Royal Ballet companiÈs and as a result, has close working relationships with both Artistic Directors and their staff. The Artistic Directors of each Cornpany are Governors of the School. HOW WE ARE GOVERNED The School is governed by the Board of Governors whose members are also directors of the Charitable Company and charity trustees. Governors hold office for an initial three-year term and may be re-elected for a further two three-year term5. On occasion and for the benefit of the Charity, Governors may be invited to remain on the Board for a further one-year term. The Board is responsible for overseeing the strategy and policies of the School and meets formally at least three times a year as well as holding other meetings for strategic planning discussions a5 required to perform its duties. The Board of Governors during the financial year and to the date of this report are shown on page 4. The Board has established eight standing committee5 which meet regularly throughout the year and report to the Board of Governors. Each Committee is chaired by a Governor and is supported by a member of the Executlve Leadership Team. These committees between them have a responsibility to the Board for all the major areas of its accountability. Committee Focusloutcome5 Academic Core school teaching and learning standards enabling every student to fulfil their potential Ensuring Sustainable finance5, robust financial management, efficient operations and the identification and mitigation of risk Finance, Audit, Operations and Risk (Jp. ?.P

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS Development Fundraising to support the School's development, in line with philanthropic standards Estates Building5 and estates fit for the School's current and future needs Artistic World-class artistic standards Student and Staff Welfare Physical and mental well-being of all students and staff (including safeguardingl Long term organisational sustainabil¢ty including Equity, diversity and inclusion, sustainability, nominations, HR, remuneration and Succession planning Governance The Student and Staff Welfare Committee will have responsibility for formal student safeguarding and a remit to look after the interests of teachers and other staff. However safeguarding is reported on and revlewed at every Board Meetin8 and remains everyone's responsibility, throughout the organisation. Nominations for new Board members are made by the Governors and Executive Officers to the Governance Committee, who then make recommendations to the Board who elect new members. Candidates are selected based on their professional skills, knowledge. competence and experience, and Governors ensure that there is an appropriate balance of relevant skills and expert15e acr055 the Board. There 15 a regular review of the composition of the Board, taking into account the need for succession planning as existing Governors retire. Where appropriate to ensure that the widest range of candidates is considered, professional recruitment agencies may be used. GOVERNOR TRAINING All Governors are inducted into the governance and operations of the School through briefings with the Chairman and members of the Executive Leadership Team. All Governors are trained to Level 2 in Child Protection and Safeguarding and a minimum of two Governors to Level 3. Governors are issued with a copy of the AGB15 Guidelines for Governor5 laying out best practice in the governance of independent schools. The training needs of Governors are rÈviewed from time to time and support is provided as necessary. Additionally, regular presentations and reports are made to the Governing body on key issues of current and ongoing importance. The Trustees adhere to the Charity Governance Code published in 2017 which sets out the principles and recommended practices for good governance wlthln the sector. ORGANISATIONAL MANAGEMENT The day-to-day operations of the School are managed by the Executive Leadership Team which is made up of the Artistic Director, Chief Operating Officer, Academic and Pastoral Principal and Commercial Director. The Executive Leadership Team are supported by a wide Senior Leadership Team. EMPLOYMENT POLICY To promote an environment in which the School can call upon the widest possible range of knowledge. skill and experience, as well as ensure compliance with the relevant legislation and Pajrg 21

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS codes of practice, the Royal Ballet School is committed to achieving and maintaining a workforce which represents the population within its recruitment area. The School has an equality poliry to ensure fairness and equality of opportunity to all staff regardless of their status regar(ling age, disability. Éender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. The School regularly reviews the operation of its recruitmenti promotion. training and development policies to ensure that no applicant for employment or member of staff is disadvantaged by condltions or requirements which cannot be shown to be Justifiable. PUBLIC 8ENEFIT The School remains committed to the alm of providing public benefit in accordance with its founding principles. The Governors. have given due consideration to the Charity Commission's published guidance on the Public Benefit requirement under the Charities Act 2011. The School makes a major contribution to the countr¢s global reputation for arts and culture, specialising in the area of classical ballet. A place at the School is open to any young person PO55e55es the potential and talent to become a professional classical ballet dancer irrespedlve of their social or financial background. A combination of public, private and charltable funding is available to give financial support and bursaries to students, and each year, about 85% of our students receive such support. Each year. the School 15 able to offer up to 184 bursaries to qualifying students, via the Department for Education's Music and Dance Scheme. The School's Trainlng and Access department provides national Associate programmes which offer young people regular access to classical ballet training classes and workshops. There are nine Associate centres across the United Kingdom,. London, Birmingham, Bath, Manchester, Leeds, Totnes, Eastleigh, Newcastle and Dundee. All students are selected based on their potential as a classical ballet dancer rather than their ability to pay, and means-tested financial support is available irrespective of age or nationality. Donor supported travel bursaries are made available to Associate students to support with the costs of attending classes and valuable a(￿55 to live performances at the Royal Opera House and other venues. The Intensive Courses department deliver a programme of courses throughout the year allowing students of classical ballet, to experience Royal Ballet School training. Annual courses are held at The Royal Ballet School and internationally. Courses are open to 8rltish and international students aged 10 to 20 years old. Again, all students are selected based on their ability rather than financial means and means-tested bursary 5UPPOrt is available for all intensive courses. Alongside the offer of studio-based classes, the School provides a programme of online classes. Students from all over the world are able to access these classes which cover a wide range of content for various abilities. The Sch¢)ol also runs 3 national community acces5 pro8ramme called Primary Steps. Funded by the DfE, Primary Steps partners with state schools to offer a complete dance programme for KS2. There are five school centre5 for the programme around the country in Blackpool. Bury St Edmonds, Dagenham, Swindon and Mansfield. In June 2022, the School made the Primary Steps programme available to zll primary schools via its online platform at 3 cost of £3 per student per year. Other access opportLtnities are available. such as demonstrations for state school students Studying GSCE dance or various Insight events for the general public. A programme of professional development is available for teachers of classical ballet.

ROYAL BALLET SCHOOL ANNUAL REPORT OF THE GOVERNORS

STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR

So far as each of the Governors is aware, there is no relevant audit information of which the charitable company's auditor is unaware. Each Governor has taken all the steps that they ought to have taken as a Governor to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information.

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governors (who are also directors for the purposes of company law) are responsible for preparing the Governors' annual report and financial statements in accordance with applicable law and the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial year. Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Governors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS 102);

• • make judgments and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Governors on 11 June 2023. This approval includes the approval, in their capacity as company directors, of the Directors' and Strategic Reports contained within the Annual Report. The Annual Report is signed as authorised on behalf of the Board of Governors by:

Christopher Rodrigues CBE Chair of Governors

Page 2.3

ROYAL BALLET SCHOOL INDEPENDENT AUDITORS REPORT INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROYAL BALLET SCHOOL OPINION We have audited the financial statements of The Royal Ballet School for the year ended 31 August 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements. includin8 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reportin8 Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practlcel. In our opinion the financlal statements.. give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its income 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 Act 2006. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities undèr those standards are further dexribed in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial 5tatement5, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is approprlate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial Statements are authorised for issue. Our responsibilities ané the responsibilities of the trustees with respect to 8oing concern are described in the relevant sections of thi5 report. OTHER INFORMATION The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the finantial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. cor)sider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material irbconsistencies or apparent material misstatements, we are required to determine whether this Page £4

ROYAL BALLET SCHOOL INDEPENDENT AUDITORS REPORT Elves rise to a material misstaternent in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. OPINIONS ON OTHER MAThERS PRESCRIBED BY THE COMPANIESACT 2006 n our opinion based on the work undertaken in the course of our audit.. the information given in the trustees, report, which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the 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 EXCEPTION In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director5, report included within the tru5tee5' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, 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 rtaSn disclosures of trustees, remuneration specifTed by law are not made,. or we have not received all the information and explanatior15 we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the trustees, responsibilities Statement set out on page 20, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl 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 control as the trustees determine 15 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financlal statements, the trustees are responsible for asse551ng the charitable company'5 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern ba515 of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obiain reasonable assurance about whether the financial 5tatement5 as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that include5 our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision5 of users taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compllance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the

ROYAL BALLET SCHOOL INDEPENDENT AUDITORS REPORT Financial Reporting Council's website at- www.1rc.or forms part of our auditorfs report. .uk auditor5re5 onsibilities. Thi5 description 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 of material mi55tatement of the financial Statements from irreeularities, whether due to fraud or error, and discussed these between our audit team member5. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of thè legal and regulatory frameworks within which the charitable company operates. focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosure5 in the financial statements. The laws and regulations we considered in this context were the Companies Act 2(KJ6, taxation legislation. together with the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement item5. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were the Education Ilndependent School Standards) Regulations 2014, General Data Protection Regulation IGDPRI and Employment legislation. Auditing standards Ilmit the required audlt procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any. We identified the greatest risk of material impact on the financial statement5 from irregularities, including fraud, to be within the timing of recognition of voluntary Income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee abotjt their own identification and assessment of the risks of irregularities. sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence wlth the Charity Commission, Independent Schoo15 Inspectorate, Of5ted and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatement5 in the financial statements, even though we have properly planned and performed our audlt in accordance with auditing standards. For example, the further removed non-compliance with law5 and regulations lirregularitiesl is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedure5 required by auditing standard5 would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these rnay involve collusion, forgery, intentional omissions, misrepresentations. or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. USE OF OUR REPORT This report is made solely to the charitable company's members, as a body, in attordance with Chapter 3 of Port 16 ofthe Companies Att 2006. Our audit work has been undertaken so that we might state to the charitable companW5 members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, wè do not accept or assume responsibility to anyone other than the charitable company and the charitable

ROYAL BALLET SCHOOL INDEPENDENT AUDITORS REPORT company's members as a body, for our audit work, for this report, or for the opinions we have formed. Tina Allison Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London 27 June 2023 Page 27

ROYAL BALLET SCHOOL STATEMENT OF FINANCIAL ACTIVITIES As at 31 August 2022 STATEMENT OF FINANCIAL ACTIVITIES Unrestrltted Funds Re5trlrt¢d Fund5 Total Funds 2022 Total Funds 2021 Note General Designated Income from: Charitable activities Donations Other income 9.228 1.450 9.229 3.245 8,289 3,358 120 1,79S Tot*1 lrttome 10.738 1,796 12,534 11,767 Expenditure on.. Ralslng funds Deve5opment and fundralsin 407 113 520 350 407 113 520 3S0 Charltable •rtlvltles Teachin8 Pastoral and welfare Outreach and partnership Intensive Course5 Premlses Support and 8overnance Grants and prlzes 3.340 1,917 673 355 2,609 1,633 424 3,764 2,172 1,112 405 3,327 1,653 1326 3,478 1,996 1,364 255 439 50 230 20 1.324 3,325 1,528 10.529 2,742 13.759 12.538 Tot•1 expendlture 10,936 2,855 14.279 12.888 Net Income I lexpenditurel 11981 14881 11,0591 11,7451 11,1211 Trnnsfers beiween funds Other reco8nistd 10sse5 Artuarial gain on defined beneflt pension scheme 16.17 311 13111 24g 1,086 1.086 96 Net movement In funds Total funds bro￿ht forward 1,199 17991 11,0591 16591 11,0251 2,855 35.5 3.749 42.194 43.219 Total funds urrled lorward 16.17 4,054 34,791 2,6 41.535 42,194 All transactlon5 are derived from the charlws contlnulng operations. All reco8nlsed gains and losses are included in the Statement of Finantial A¢tivitles The notes on page 31 to 53 form part of these flnanc5al statements. Page 28

ROYAL BALLET SCHOOL BALANCE SHEET As at 31 August 2022

2022 Note £000 Fixed assets Tangible assets 11 37,094 Current assets Debtors 12 1,673 Cash at bank and in hand 4,267 Total current assets 5,940 Creditors:amounts falling due within one year Trade and other creditors 13 (1,200) Deferred income 14 (20) Net current assets 4,720 Total assets less current liabilities 41,814 Creditors:Amounts falling due after one year 15 (220) Defined benefit pension scheme liability 24b (59) Total net assets 18 41,535 The funds of the charity: Unrestricted funds General fund 4,054 Designated funds 34,791 Total unrestricted funds 16 38,845 Restricted funds 17 2,690 Total charity funds 41,535	2021 £000 37,661 1,465 6,304 7,769 (1,814)
	5,955 43,616 (250) (1,172) 42,194 2,855 35,590 38,445 3,749
	42,194

The financial statements on pages 31 to 53 were approved by the Board of Governors and authorised for issue on 11 June 2023 and are signed on its behalf by:

Christopher Rodrigues CBE Chair of Governors

Tom Clementi Governor

•[□] age 29

ROYAL BALLET SCHOOL STATEMENT OF CASH FLOWS For the year ended 31 August 2022 Note 2022 2021 £000 Cash flow5 from operating activities: Net cash lusedll piovided by operating activitles A below {1.2731 1,613 Cash flows from Investln8 acllvltles: Intèrèst receivable Interest payable Proceeds from sale of fixed assets Purchase of tangible fixed a55ets 18 1181 17411 13321 Net cash used in investing activStles {7341 13471 Cash flows from flnanclng actlvltles Repayments of borrowing 1301 1301 Change In cash In the reportlng perlod (2.0371 1,236 Cash at the beglnnlng of the year 6.304 5,068 Cash at the end of the year below 4.267 6,304 Reconclllatlon of cash flows from operntln8 attlvltles: Note A 2022 £000 2021 £000 Net Expenditure. from the Statement of financial activitie5 11.7451 11.1211 Adjustments for.. Depreciation charge Defined pension scheme net income Interest receivable Interest payable Proceeds from the sale of fixed assets Ilncreasel / decrease in debtors Idecreasel / increase in creditors L308 1271 1181 li 1.224 1271 131 18 12081 15941 1,021 501 Net cash Isedllprovided by tsperatin8 activitie5 11,2731 1,613 Analysls of cash Note B 2022 £Ot 2021 £000 Cash at bank and in hand 4,267 6,304 Page 30

Royal Ballet School Notes to the financial statements year ended 31 August 2022 NOTES TO THE FINANCIAL STATEMENTS l. Accountlng pollcles la Bas15 of accounting and going concern The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the FRS 102 - effective I january 2015. The functional currenry of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates. The accounts are drawn up on the historical cost basis of accounting. The Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future, The financial statements have been prepared under the going concern concept, on the understanding that the School will continue to receive sufficient financial support to enable it to meet its liabilities as and when they fall due for payment. The Governors have reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as the employment of staff. There are currently sigrlificant cash balances should additional liquidity be required through this period of uncertainty- Accordingly, the Governors believe the School's financial re50urces are sufficient to ensure the School will continue as a going concern for the forÈsÈeablÈ future, bÈing at least 12 months from the date of approval of the financial statements and have therefore prepared the financial Statements on the going concern basis. The School 15 a Public Benefit Entity registered as a charity in England and Wales and a corr¢pany limited by guarantee. It wa5 incorporated on 31 March 1955 (company number.. 5470181 and registered as a charity on 12 November 1962 Icharity number.. 2143641. Ib Critical accounting judgements and key sources of estimation untertainty In the application of the chariws accounting policies, which are described in this section. Governors are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the perlod in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the urrent and future period5. The key sources of estimation uncertainty that have a significant effect on the amounts recognised In the financial stztements are described in the accounting policie5 and are summarised below.. Pension liabilities- The charity recognises its liability to its deflned benefit pension scheme which involves a number of estimations as disclosed in note 24. Ic Income Income consists of school fee5 and expenses due and receivable, income from performances and auditions. grants receivable from the Department for Education and other bodies, donations, investment income and other income. Thls income is recorded in the Statement of Financial Activities when it becomes due to the School. Page 31

Royal Ballet School Notes to the financial statements year ended 31 August 2022 Government grants are recognised on the perfomiance model when the charity has complied with any Conditions attachlng to the grant and the grant wlll be recelved. The Brant in connection to the job retention scheme has been recognised in the period to which the underlying furloughed staff costs relate. Included in Income is an amount of £012021.. £98,000) in respect of the Coronavirus furlough scheme. Id Expenditure Expenditure is recognised in the period in which the cost is incurred. Costs directly relating to a School activity are allocated to that artivity. Support costs comprise salaries and overheads of entral function5 of management and administration. Governance costs are those costs incurred in compliance with regulation and good practice and include costs relating to the statutory audit, Governors, rneetings and other constitutional and statutory requirements. le Grant-making policv The Governors may from time to time make grants to The Royal Ballet School Endowment Fund on the basis that they are in the interests of the School. The grant funds will be combined wlth the funds of The Royal Ballet School Endowment Fund to maximise investment returns whilst protecting capital. Grants to The Royal Ballet School Endowment Fund are restricted for specific purposes and subject to a schedule of conditions. If Operating lease5 Rental payments under operating leases are charged on a straight-line basls over the lease term, even if the payments are not made on such a ba515. Benefits received and receivable are an incentive to sign an operating lease and are similarly spread on a straight-line basis over the lease term. Ig Taxation Gift aid recovered on voluntary income is included with the donation to which it relates and irrecoverable VAT is included with the item of expenditure to which it relates. Ih Tanglble fixed assets and depreclatlon All tangible fixed assets are stated in the balance sheet at cost less depreciation. The depreciation of assets is provided in equal annual instalments over the estimated useful lives of the assets. 11 Long leasehold property The original cost of the White Lodge long leasehold property was fully amortlsed in the period 1955 to 1976, although the lease was not due to expire until 2014. Subsequent major works and additions to the leasehold property were capitalised and amortised over the unexpired period of the lease, or evenly over the expetted useful lives of the major works and additions as appropriate. In November 2005 the School surrendered it5 existing lease and entered Into an agreement to lease the land and buildings for a further 100 year5. A major redevelopment was undertaken in three pha5e5 from 2005 and completed in February 2009. Relevant leasehold costs are depreciated over the term of the lease. 8uilding costs are depreciated over 40 years. The Floral Street leasehold propertv Is depreciated over the term of 150 years tommencing in 2002. except for building costs which are depreciated over 40 years. Up to 2009. the buildings had been depreciated over 25 years, but the policy was then reviewed and changed. The net book value at 31 August 2008 is now being depreciated over the remainder of the 40-year term. The Jebsen House property is depreciated over the lease term of 20 years. lj Freehold property The Aud Jebsen Hall student accommodation is a freehold property and is being depreciated over 50 years from Easter 2016 when it was completed. Finance costs on loans taken out for the purchase of Page 32

Royal Ballet School Notes to the financial statements vear ended 31 August 2022 the property have been capitalised during the period when the property was being refurbished. Ik Furnlture, fixtures and equlpment Assets with a cost of more than £l.OOD are capitalised and these are depreciated over their expected useful lives as follows.. Major refurbishment and minor structural change5 10 years Furniture. fixtures and equipment Computer equipment Motor vehicles 5-10 years 3 year5 4 year5 11 Llabllitles Liabilities are recognised at the point that there exists an obligation to make payment or transfer assets and the value of that obligation can be measured with a reasonable degree of accuracy. Im Forelgn currency Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencie5 are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities. In Pension schemes Employees of the School are entitled to join the group personal pension scheme and employer contributions are charged to expenditure in the accounting period in which they are payable. Teachers are entitled to join the Teachers. Pension Scheme which is an unfunded multi-employer defined benefit5 pension scheme. Contributions are charged to expenditure in the accounting period in which they are payable as if the scheme were a defined contribution scheme, a5 the School does not have sufficient information to account as a defined benefit scheme. The Sthool operated a defined benefit scheme. The Royal Ballet School Pension and Life Assurance Plan, which was closed to new entrants in 2￿2 and for future accrual on 31 August 2012. The assets and liabllitles of the scheme are reported in these financial statements as required by FRS 102. The statement of financial activities includes the expected return on scheme assets in investment income, the interest cost in other finance costs, and the actuarial gains and losses arising from the annual valuation. The pen5i0n liability 15 recognised in the balance sheet as the School ha5 a legal obligation to settle the liability over the lon8 term. See note 24 for more detail on the pension schemes. lo Fund attountlng Unrestricted funds comprise the accumulated unrestricted surplus or deficit each year. They are available for use at the discretion of Governors in furtherance of the general charitable objectives. The general pensions reserve represents the deflcit in the deflned benefit pension scheme (see note 241. Unrestricted designated funds are amounts that have beerb Put aside at the discretion of the Governors. At the year-end, they comprised a Fixed asset fund, a Building maintenance fund and an Associate Programme fund. The Fixed asset fund represents the extent to which donated funds are invested in fixed assets for use by the School and therefore are not available for other purposes. The Building maintenance fund represents fund5 Put aside to maintain buildings, especially White Lodge. The A550ciate Programme fund represents a legacy with a stated preference for the fund5 to be spent on the Associate Programme. Restricted funds are funds subject to specific restricted conditions imposed by the donors. Page 33

Royal Ballet School Notes to the financial statements year ended 31 August 2022 Details of unrestricted fund5 are Shown in note 16 and restricted funds in note 17. Ip FSnanclal Instruments The School has financial assets and flnanclal liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortlsed cost using the effective interest method. Financial assets held at amort15ed cost comprise cash and bank and in hand, together with trade debtors, accrued income and all creditors except social security and other taxes and provisions. ￿set5 and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year-end exchange rate. Page 34

Royal Ballet School Notes to the financial statements year ended 31 August 2022 Charitable activities income 2022 2021 £000 £(v)o School fees- note 2a Extras and performance income Fees from Associates, Summer School and teachers. courses Auditions and other income 7.298 132 1.641 157 6.716 129 1,322 122 9,228 8,289 2a. School Fees School fee5 were funded from.. Grants from the Department for Education Bursarles from The Royal Ballet School Endowment Fund Bursarles from restricted donations Parent5 3,803 3,678 149 637 2,252 1,147 2,348 7,298 6,716 Donations 2022 2021 £000 Grants Donation5 Friends 1.131 2.093 21 1.131 2,213 14 3,245 3,358 Other Income 2022 2021 £0 Investment income- bank interest Othei inctsme Coronavirus furlough scheme 18 42 19 120 Page 35

Royal Ballet School Notes to the financial statements vear ended 31 August 2022 Trading subsidiary The Charity has one wholly owned subsidiary. TRBSE Enterprise5 Limited, whose registered address is 46 Floral Street, London WC2E 9DA. The activitie5 of TRBS Enterprises Limited are immaterial to those of the Group so Consolidated accounts have not been prepared. Due to the presentation of the School's accounts in round thousands, the subsidiary share5 of £100 held, are not shown as an investment in these financial statements. The company's trading results are the year. extracted from it5 audited financial statements were= 2022 £(￿0 2021 £000 Turnover Cost of sales 142 1641 47 1391 Gross profit Adfflinistrative expenses.. Llcence to occupy premises Other expenses {871 1201 (Lossl on ordinary activities before gift aid {ioi 1131 ILossl on ordinary activities before taxation Tax on pioflt on ordlnary activities iioi 1131 IL0s51 for the year iio) 1131 1221 1121 Empendlture analysis Total Total Staff co5t5 Depreciation £000 other costs £000 2022 £000 2021 £0 Ralslng funds Development and fund rarsing 340 180 520 350 Charltable actlvltles Teaching Pastoral and welfare Outreach and partnership Premises Support and governance Grants and prizes 3,306 938 1,094 786 562 458 1,234 423 1.233 1.091 1,326 3,764 2.172 1,517 3.327 1,653 i.a26 3,478 1.996 1,364 3.325 1.528 1.308 6,686 1,308 5.765 13.759 12,538 Total expenditure 7,026 1.308 5,945 14.279 12.888 Page 36

Royal Ballet School Notes to the financial statements year ended 31 August 2022 Governance costs Total Total 2022 £000 2021 £000 Governance costs included in support Costs: Feès payable to the auditor for the stètutory audlt Over accrual for prior year fees relating to the statutory audit Fees payable to the auditor for tax advice Fees payable to the auditor for Teacher Pension advice Board and committee costs 25 {iii 34 16 Total 18 49 Finance and lease costs Total Total 2022 £L￿o 2021 £000 Bank interest payable ntere5t on pension plan Operating leases= land and buildings Operating leases- pianos and office equipment li 20 184 14 18 20 177 26 Grants and prlze5 expendlture Grants ale for student sponsorship and bursarie5 for full-time students, Associates and Intensive Course participants. Apart from a few scholarships for full-time students, all grants are means-tested. Total 2022 Total 2021 £000 Other grants Prizes 1.310 841 Total 1,326 847 Page 37

Royal Ballet School Notes to the financial statements year ended 31 August 2022 10 Staff c05t5 2022 2021 £000 £000 W38es and salarie5 Social security costs Other pension costs Other costs 5.828 577 5,476 524 545 18 601 7.026 6,563 One Governor claimed travel expenses of £228 in the year12021.. Nil). Total employee benefits including employer pension contrlbutions and national insurance of the Senior Leadership Team were £990.05212021.. £962,4301. The School made aggregate termination payments of £34,86312021: £6,194) with none outstanding at the year end. 2022 Number 2021 Number The number of higher paid employees in bands ol.. £60,001 to £70,IX £70,001 to £80,Ct(J £80,001 to £90,000 £IOO,001 to £llO,000 The average headcount of the S¢hool's employees for the year 2022 was 24912021.. 2411. Page 38

Royal Ballet School Notes to the financial statements year ended 31 Au8USt 2022 12 Debtors 2022 £000 2021 £000 Amounts falling dije within one year.. Fees and recoverable extra5 Intercompanv Ctsnnected charity (see Note 221 Other debtors Prepayments Accrued Income 27 212 421 105 209 385 34 175 837 548 Total 1,673 1,465 13 Creditors: amounts falllng due wlthln one ￿ar 2022 £000 2021 £000 Trade creditors Taxation and Social security Other creditors Accruals Bank loan due within one year Department for Education- Music and Dance Scheme funding 391 158 127 313 30 181 648 16 85 145 30 746 Total 1,200 1,814 14 Deferred Income 2021 2021 £o(x) Fees In advance 20 Total 20 Pag8 40

Royal Ballet School Notes to the financial statements year ended 31 August 2022 15 Credttors.. amounts falllng due after one year 2022 £000 2021 £000 Creditors due in 2 to 5 years 8ank loans Creditors due In S years Bank loans 121 121 99 129 Total 220 250 Bank loans at 31 August 2022 include a fixed rate loan of £250.00912021.. £281,000) repayable by November 2030. with £30.000 due within one year, and an interest rate 1$ 6.01% per annum. This loan is secured by charge over the White Lodge property. Balance as at 31 Aug 22 16 Unrestrlcted funds Balance as at ISep21 £ocf) Income Expenditure Transfers Gainsl IL055esl £(M)O £￿0 £000 £otKJ £000 Designated Fixed asset fund Building maintenance fund Associate Programme Pension Deficit Fund Deferred IT and building maintenance fund 34,223 s￿ 311 450 13821 33,841 500 13111 450 ic6 11061 35.590 14881 13111 34,791 General Pension reserve Free reserves 11.1721 4,027 1201 110,9151 47 1,086 {591 4.113 10,737 264 2,855 10.737 110.9351 311 1,086 4.054 Total 38,445 10.737 111,4231 1,086 38,845 Page 41

Royal Ballet School Notes to the financial statements vear ended 31 August 2022 Balance asatl Sep 20 £000 Balance a5 at 31 Au8 zi Unrestrl¢ied funds 2020-21 Income Éxpenditure Transfers Gainsl IL0$5e51 £000 £DOO £000 £000 Des18nated Fixèd asset fLJnd BUl￿dIng maintenance fund Associate Programme Pension Deficit Fund Deferred IT and buildin8 maintenante fund 35,371 500 367 450 11,1481 34.223 500 311 4SO 1561 247 11411 106 36,935 11,3451 35,590 General Pensien reserve Free reserve 11,2951 4,210 1201 19,8561 47 1471 96 {1.1721 4,027 9.720 2,915 9,720 19,8761 96 2,855 Total 39,850 9.720 111.2211 96 38A45 Unrestricted funds are available for use at the discretion of the Goveinors in furtherance of the general objectives of the charity. Certain unrestricted funds are desi8nated for other purposes. The unrestrlcted funds are as follows.. Deslgnatèd flxed a55et fund This fund represents amounts expended on tan8ible fixed assets required for the operation of the School. Designated bullding maintenance fund This fund represents amounts designated and set aside by Governors to fund the ongoing repairs and malntenance of White Lodge. The School has recelved planning permission to undertake an expansion of the Senior Boarding Block at White Lodge. These funds will be used in 2022123 to fund the design and enabling works for this project. Desl8nated Associate Programme fund This fund represents amclunts designated and set aside by Governors to support the Assttiate Programme. This fund has now been released. Designated Penslon Deficil Fund The Royal School Pension and Life Assurance Scheme tlosed to new members in 2006 and ceased accrual in 2012. There are 26 deferred member5 Wlth the last member due to retlre in 2034. The Triennial valuation of I September 2019 showed a ftjnding deficit of £486,000 and the Sthool ha5 submitted recovery plan to The Pension Regulator (see Note 241. These funds are set aside to meet future eash commitments for member annuities as the recovery payment plan is phased evenly over the remaining life of the scheme but member retirement5 are more sporadic. General reserves The negative pension reserve represents the School's liabilities in respect of The Royal Ballet School Pension and Life Assurance Plan which is a definéd benefit scheme that Is now tlosed to new members (sèe note 241. Pagp 42

Royal Ballet School Notes to the financial statements year ended 31 August 2022 The free reserves represent the balance of unrestricted funds which have not been designated and are available for use at the discretion of the Governors in furtherance of the general charitable activities. This 15 before deductin8 the pension reserve, as the pension deficit is a long-ierm liability. Transfers £311,000 of designated funds set asSde for the Associate Prograrnme were released back to the General Fund. £47,000 of general fvnds were transferred to the pension reserve to ¢over the costs of employer pension deficit repayments in the year. Page 43

Royal Ballet School Notes to the financial statements year ended 31 August 2022 Balance 45 at 31 Aug 22 17 Restricted funds Balance as at I Sep21 £000 In¢ornE Expenditure Transfers £000 £000 Aud Jebsen Hall - Pimlico Appeal Capital projects Special projects Sponsorship, bursaries and prizes Outreach and Access fund Ballet and artistic funds Healthcare Equipment Intensive Courses WiFi c3bling Films 49 1491 81 1,340 486 432 1.003 151 116 20 63 147 830 408 146 265 11531 11.6151 14151 12001 12501 1861 75 555 479 378 1.018 65 120 1201 1631 3.749 1.796 12.8551 2,690 Balance as at 31 Aug 21 Restrfcted fund5 2020-21 Balance as atlSep20 In£ome Expendlture Transters ECQO £000 AL*1 Jeb5en Hall- PSmliro Appeal Capital projects special projert5 Sponsorshlp, bursarles and prlzes Outreach and Access fund Ballet and ar115tic fund5 Healthcare 49 49 li 1,139 317 476 1,073 151 125 20 278 12081 18031 12381 11491 12501 iioi 191 81 407 105 432 I,(X)3 151 180 io Equipment Intensive Courses 116 20 63 3,749 Wi-Fi cabling Films 63 2,047 3,369 11.6671 Restricted funds are used in accordance with specific restrictions imposed by donors or which have been raised by the tharity for particular purposes. A significant proportion of donations are received in the current in advance of expenditure in the following year. Whlte lodge Appeal fund The balance on thi5 fund represents gifts and donations generated by fundraising appeals to acquire a new 100-year lease at White Lodge and to redevelop the land and buildings at White Lodge. Sponsorshlpi bursarles and prizes Thi5 fund includes donations for financial support for full-tirne students, Associates and Summer School Page 44

Royal Ballet School Notes to the financial statements year ended 31 August 2022 students and some prizes. All support is means-tested apart from a small number of scholarships. The School awards places based only on talent, so this support is particularly crucial to help fund overseas stLtdents. which raises the standard for all students and allows the School to maintain its place as one of the best cla5Sifdl ballet Schools in the world. Outreach and Atcess This fund represents grants from the Department for Education. Trust5 and Foundations and other donors to further the aims and oblectlves of the School's Outreach and Acces5 prograrnme. 8allet and art15tic funds These donations are restricted for performances and new ballets, graduate touis, thoreography and the Creative kntist Programme, which all help add breadth and depth to student training. The Creatlve Artist Pro8ramme was introduced to broaden the students, artistic experience by exposin8 them to a broad range of experts who have excelled in their field, both in art15tic and in other areas. Healthcare This donation is to help the School improve its healthcare provision for three years, through the Healthy Dancer programme. Equlpment Donations have been reteived to fund the updatiri8 of the technical equipment in the Margot Fonteyn Theatre at White Lod8e, and Smart screens for classrooms to allow academic teaching across the two School sites. Intenslve Courses Thls fund is to support the expansion of the Intensive Course programrhe irtto Hon8 Kong and provide financial assistance to students from Hon8 Kong who may otherwise be unèble to pay for the course. Page 45

Royal Ballet School Notes to the financial statements year ended 31 August 2022 18 Allocatlon of a55ets by fund type Unrestricted desi8nated funds £000 Unrestricted Beneral fund £000 Restricted funds £000 Total 2022 £000 Fixed a55els Oebtors Cash at bank CreditoTS.' due within one year Creditors.. due after one year Defined benefit pension scheme deficSt 3.253 1,673 627 11.2201 12201 1591 33,840 37.094 1,673 4,267 11,2201 12201 1591 951 2,690 4,OS4 34,791 2,690 41,535 Allocat5on of assets by fund type 2021>21 Unrestrieted deslgnate¢J funds Eoc Unrestricted general fund £000 Restricted funds £ocx) Total 2020 £o(N) Fixed assets Debtors Cash at bank Creditors.. due within one year Creditors: due aftei one year Defined benefit pension scheme deficlt 3,380 1,332 1,245 11,6801 12501 11.1721 34.223 58 37,661 1.332 6,303 11.6801 12501 11,1721 1,367 3.691 2,855 35,590 3.749 42,194 Page 46

Royal Ballet School Notes to the financial statements year ended 31 August 2022 19 Llablllty of members The Charitable company is limited by guarantee and does not have a share capital. Sn the event of the Company bern8 wound up, the maximum amount which each member is liable to tontribute is £1. There were 1612021..171 members at the year-end who are the Governor5 of the Schuol. 20 Capital commitments There wère £69,684 capital commitrnents at the end of the reporting period12021= £112.6001. 21 Commltments under operatlng leases 2022 2021 £000 The total of fLJture minimum lease payments under operating leases for each of the following periods.. Not later than one year Later than one year and not later than five years Later than five years 195 S53 645 772 274 1.232 1,393 22 Related party transartions TR8S Enterprlses Llmited The subsidiary charity trades by hiring out School premisès èt limes whèn they are not required by the School. During the year the followSnE transactions were made wlth the School.. The School recharged £5.58012021.. £5,580) of costs for staff time and other costs directly related to the rtivities of the subsidiary. The School charged licence fees of £l,00012021: £1,CK)01 to the subsidiary. At the end of the year the School was owed £211.607 by the subsidiary. see note 12,12021: £209,2451. The Royal Ball￿ School Endowment Fund The connected charity The Royal Ballet School Endowrnent Fund provides funding and facilities for the students of The Royal Ballet School. During the year the following transactions were made with the School= The School received grants of £29.50012021.. £381,076> frorn the Endowment Fund. The grants paid for bursaries for students for School fee5, The Royal Ballet School collection and a grant for repairs to White Lodge. The School does not charge the Endowment Fund for staff time for administering the charity. At the end of the year the School was owed £421,077 by the Endowment Fund12021.. £384,977). Governors of The Royal Ballet School Governors did not receive any payment or expenses from the School as disclosed in note 10. The total amount of donations received from Governors in the year was £64.31412021= £129,5(Xll. None of the Governors, donations were given with conditions that requirÈd the charity to alter the nature of its existing activities. Employees of The Royal Ballet School During the year the School engaged the wife of the Artistit Director to deliver contempoiary dance classes. A fee of £1,21812021.' £4,078) was paid. Page 47

Royal Ballet School Notes to the financial statements year ended 31 August 2022 23 Taxatlon As a registered charity, The Royal Ballet School is potentially exempt from taxation of income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 and sectlon 521 to 536 of the Income Ta¥ Act 2￿7. 24 Pension commitments The School operates a group personal pension scheme, a defined benefit scheme with the Teachers, Pension Scheme and also a deflned beneflt scheme which was closed to futu￿ accrual on 31 August 2012, known as The Royal Ballet Sehool Pension and Life Assurance Plan. Group personal penslon scheme Contributions for the group personal pension scheme are charged to expenditure in the accounting period in which they are payable. Pension charges for the year were £385.00012021.. £316,455). Teachers. PensSon Schèmè The khool participates in the Teachers. PensSon Scheme 1.the TPS") for it5 teaching staff. The pension char8e for the year includes contributlons payable to the TPS of £216,00012021.. £208.4221 and at the year-end £nil12019 £nill was accrued in respect of tontribution5 to this scheme. The TPS Is an unfunded multl-employer defined benefit5 pension scheme governed by The Teachers, Pensions Regulations 2010 las amended) and The Teacher5, Pension Scheme Regulations 2014 la5 amendedl. Members contribute on a'pay as VDU 80, basis with contrlbution5 from members and the employer bein8 credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State followin8 scheme valuations undertaken by the Government Actuary'5 Departmenl. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which wa5 published in March 2019, confirmed that the employer contribution rate for the TPS would increase fTom 16.4% to 23.6% from I September 2019. Employers are also required to pay a scheme administration levy of 0.08% givin8 a total employer contribution rate of 23.68%. The 31 March 2016 Valuation Report was prepared in accordance with the benefits Set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However. the assumptions were tonsidered and set by the Department for Education prior to the ruling in the 'McCloud/sargeant ¢ase' This case has required the courts to consider cases regarding the implementation of the 2Q15 reforms to Public service Pensions includinB the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government peTwission to appeal the Court of Appeal's judgment that transltlonal provi5ion5 introduced to the reformed pension schemes in 2015 gave rise to unlawful a8e discrimination. The government is respecting the Court's decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedled. The government announced on 4 February 2021 that it intends to roceed with a deferred choice underpin under which members will be able to ch095e either legacy or reformed scheme benefits in respect of their service during the period between l April 2015 and 31 March 2022 at the point they become payable. The TP5 is subject to a cost cap mechanism which was put In place to protect taxpayers agalnst unforeseen changes in scheme costs. The Chlef Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism. in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's rvlin8 in the McCloud/Sargeant case and until there is certainty about the value of pensions to emplc*yees from Aprll 2015 onwards. The pause was1Sfted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost ¢¢ntrol mechanism following a ieview by the Government Actuary. Following the publit consultation, the Government have accepted three key proposals recommended by the Governmènt Actuary, and are aiming to implement these changes in time for the 2020 Valuatlons. In view of the above rulings and decisions the assumptions used In the 31 March 2016 Actuarial Valuation Page 48

Royal Ballet School Notes to the financial statements year ended 31 August 2022 rnay be¢omè inappropriate. In this scenarlo. a valuation prepared in accordance wlth revised benefit5 and 5Ultably revisèd assumptions would yield different results than those cont3ined In the Attuarial Valuation. Llntil the cost cap mechanism revision is completed it is not possible to conclude on any financial impact or future changes to the contributlon rate5 of the TPS. Accordingly, no provision for any additlgll41 past benefit pension cost5 15 included in these financial statements. The Royal Ballet School Penslon and Llfe Assurance Plan Ithe"Plan"I This defined benefit pension scheme provides benefits based on pensionable pay up to 31 August 2012 when the Scheme ceased accrual. The a55et5 of the Plan are held separately from those of the School, being invested with Clerical Medical and General Lifè Assurance Socièty in their Pènsion Contra¢t. Contrlbutlons and trlennSal valuatlons The eontributions are recommended by an independent qualified actuary from Clerical Medical on the basis of triennial valuations carried oui by the actuary on behalf of the Trustees of the Plan. The most recent triennial valuation was as at I September 2019. The market value of the Plan's assets was £2,370,000 and the benefits actrued to members were £2,856,000, giving a funding deficit of £486,￿0 and a funding level of 83%. The actuarial assumptions underlying this valuation are different to those adopted under FRS 102 induded in these finantial staternents. The Trustees have agreed with thè Sthtsol that contributions wlll contlnue at £47,000 per annum from I September 2021 to improve the funding level in the Plan to address the deficit. In the year to 31 Au8USt 2022, E47,00012021.. £47,OfM)I was paid. The expected recovery end date is Au8lJ5t 2031. The funding position of the Plan and contributlons to be paid will be reviewed agaln at the next triennial valuation due as at I September 2022. whith will be completed during the 2022123 financial ye3r. Valuation for these finantial statèmènts under FRS 102 The Plan was valued at the end of the reporting period by a qualified Independent Actuary in accordance with Financial Reporting Standard 102, and the following notes 24a to 241 relate to this valuation. Thls valuation has different actuarial assumptions to the triennial valuation. Page 49

Royal Ballet School Notes to the financial statements year ended 31 August 2022 24a The prlnclpal actuarlal a$$umptions at the eNJ of the reporting period lexpressed a5 welghted averages): 2022 2021 £OCKJ Discount rate RPI assumption CPI assumption LPI pension increases 4.2% 1.7% 3.7% 2.9% 3.5% 3.2% 3.8% The underlying mortality a55umption is based upon the standard table known as S2PXA projected on a year of birth basis with CMI_2020 future improvement factors and a lon8-terrn rate of future improvements wlth 1,25% p.a.12020.. 52PXA with CMI 2019 future improvement factors and a long.term future rate of improvèment of 1.25% p.a.l. Thi5 results in the followin8 life expectancies: Yèars 88.5 89.6 Years 88.4 89.6 Life expectancy for 60-year-old female Life expectancy lor 45-year-old female 24b The amounts reco8nised in the balan<e sheet.. 2022 2021 £000 Present value of Plan liabilities Market value ¢f Plan 555et5 12.5561 2A97 13.5741 2,402 Ngt defined benefit liability 1591 11,1721 24c Amounts included w5thln the Statement of Flnanilal Actlvitles ISOFAI: 2022 £000 2021 £000 Current service cost Interest on net defined benefit asset Past Service cost {201 1201 Total amount charged withln net incoming resources {zoi 1201 Page 50

Royal Ballet School Notes to the financial statements year ended 31 August 2022 24d Changes In the present valu• of Plan Ilabllltles: 2022 2021 £000 Present value of scheme liabilitie5 at beginning of the year Past service cost Benefits paid Interest on Plan liablllties Actuarial loss/ Igaihl 13.5741 13,5911 22 1611 1,057 37 1571 37 Present value of Plan liabilitie5 at end of the year 12.5561 13,5741 24e Chan8es In the falr value of Plan a55ets: 2022 £0 2021 £000 Market value of Plan assets at beginning of the reporting period Employer contribLrtiorbS Benefits paid Interest on Plan assets Return on assets, less interest included in the SOFA 2,402 47 1221 41 29 2,296 47 1371 37 59 Market Value of the Plan assets at the end of the reportin8 period 2,497 2.402 Actual retum on Plan assets 96 24f The maJor categorSes of Plan assèts as a percentage of total Plan a59et5: 2022 2021 Group pension contract Cash loo% The Plan had no investments in property occupied by, assets used by or flnanclal Instruments issued by the School. Page 51

Royal Ballet School Notes to the financial statements year ended 31 August 2022 24B Analysis of the measur•ment ot th• net defined benefit liability retO8nised in Other recogni5ed losses in the SOFA.. 2022 2021 £000 Return on assets. less interest included in the SOFA Experience gains and1055e5 arising on Plan liabilities Changes in a55umption5 underlyin8 the present value of Plan 29 12151 1,272 59 74 1371 Actuarial loss/lgainl recognised in Other recognised losses 1,086 96 Z4h Mo¥ement In dellclt durln8 the year 2022 £000 2021 £000 Deficit in the scheme at the beginnlng of the year Interest recognised in the SOFA Employer contributions ActU3rial105$118ainl reco8ni5ed in Other reco8nised105ses in the SOFA 11.1721 1201 47 1.086 11,2951 1201 47 96 96 Deficit in the scheme at the end of the year 1591 11,1721 Page 52

Royal Ballet School Notes to the financial statements year ended 31 Au8USt 2022 2$ Statefflenl of flnanclal actlvltles- comparatlve fl8ures for the prlor perlod byfund Unrestrirted Funds Restritted Funds Total Funds 2021 £ocrf) Note General £000 Designated £IM)o £QK)O Income from: Charitable activities Donations Other income 8,287 1,313 120 8.289 3.358 120 2,045 Total income 9,720 2,047 11.767 Expenditure on.. Ralslng funds Development and fundraising 350 350 350 350 Charitable activities Teachin8 Pastoral and welfare Outreach and partnershlp Premises support 3nd governance Grants and prizes 3,385 1,734 1,099 1.866 1,426 16 93 262 265 207 3,478 1.996 1.364 3.325 1,528 847 1.252 93 831 9,526 1,345 1.667 12,538 Total expenditure 9.876 1.345 1,667 12.888 Net income / lexpenditurel 11561 11,3451 ii.lzii Transfers between funds Other recognlsed losse5 Actuarial Ilossesl/gain on defined benefit pension scheme 16.17 24g 96 96 Net movement in fund5 Total funds brought forward 1601 11,3451 (1.025) 2,915 36.935 3,369 43,219 Total funds carried forwafd 16,17 2,855 35,590 3.749 42,194 All transartions are derived from the chariws continuing operations. All recognised gains and losses 3re included in the Statement of Financial Activities Pag8 53