2021-01-31-accounts

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC REPORTS AND ACCOUNTS FOR THE YEAR ENDED 31 JANUARY 2021

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC REFERENCE AND ADMINISTrATIVE INFORMATION PATRON HER MLIE￿y THE QUEEN PRESIDEpTr H R H The PTince ofWa]es (X)VERNING BODY Tony Hales, Chair, CBE. Bsc Frances Anderson. M.SOC.SCIURS},' BSC {ECONI Baroness Fleet CBE Profe8sor Jonathan Freeman-Atlwood CBE, Bmus. MPhll. Hon KIM. FKC, FRNCM {Principal. Royal Academy of Music) Jeremy Heap. MA. ACA Nicola ITvint Professor Colin Lawson CBE. MA Ioxonl. MA. PhD. D Mus. FRCM. FRNCM, FLCM (Director, Royal Comege of Mu8icI Profes80r Linda Menick GRSM. Mmus. PhD, AIIAM. FLCM, FRSA, Hon VCM. FHEA (Pnnapal. Royal Northern College of Music) David Roper MA. FCA Profes80r Jefrey Sharkey, MPhil (Cantab) {Principal, Royal Conservatoire of Scotland) Bron￿￿ Syiek. MA {Cantabl Damian Wi8niewski Bsc IEngl. ACGI. ACA, LRAM Chri8 Cobb &%e. FRSA DEpITfY CHIEF EXECLrrivB Penny Mllsom. BA EXEcirrivB DIREcfoiL. vfRATBGIC DEVELOPMENT Profes80r Lincoln AbTr￿tt$ FRSA. MB& Advcert IPCS}. Bmus, LTCL EXEcirrIvE DIREcfoiL. FINANCE & CORPORATE SERVICES Sue CambTidge BA, ACA GLOBAL OPERATIONS DIREcfoR Helen Colernan BA. MBA Profe&8or John Holmes ￿ LRAM. Cert. Ed. CHIBF DIGITAL OFFICER James Ha]]iwell BSC. Msc SEcR￿ARy TO THE GOVERNING BODY Rachael Casstjes

THE ASSOCIATED BOARD OF TKE ROYAL SCHOOLS OF MUSIC REFERENCE AND AD￿NISTRATIVE INFORMATION 292182 CHARITY NUMBER (SCOTLAND): SC043343 COMPANY NUMBEIL. 01926395 TRADING NAME: ABRSM REGISTERED A2ID PRINCIPAL QFFICE: 4 London Wall P]ac¢, Londi)n, EC2Y SAU TELEPHONE: [phone] WBBsrrB: ADVISERS: External Audlton: Crowe UK LLP 55 Ludgate Hill. London EC4M 7JW Int•rnal Audtton: BDO LLP 55 Baker StreeL tAmdon WIU 7EU BarcJay8 Bank PLC Level 27 I church￿ Place, London E14 5HP Santander UK PLC 3rf Flcor, Santander Hou8e I￿ Ludgate Hill. London EC3M 7RE Lknyd8 Bank PLC 25 Gresham Street. Inndon EC2V 7HN Solleltom: FaTrer & Co 66 Lincoln's Inn Field8, London WC2A 3LH pen￿0￿ Sehem• Admthlltrators: Broadstone Pensions and Investments Llmited 100 Wood Stree¢ tondon EC2V 7AN P•nslon schen￿ Actuary and 1nve•tMe￿ Adviwxs: Lane & Peacock LiF 95 Wigmore Street. Londo￿ WIU IDQ Jnve¥tment Man•8eY8 (Prlz• Fuxknll): BlackRock Investment Management IUKI Lnnited 12 Thro8morton Avenue, London EC2N 2DL

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC CONTENTS OF THE REPORTS AND ACCOUNTS Page Numb•r Governing Body's Report lincorpcntsnB the Strategic Report) 1-20 Governing Body's Responsibllities Statement 21 Independent Auditorfs Report to the Members and Governors ofthe As80dated Board ofthe Royal SclKds of Mu8iC 22-25 Consolldated Statement of Finan¢ial ALtivitie8 26 B81ance Sheets 27 Con801idated Statement of Cash Plows 28 Notes to the Accounts 29.60 Page8 26 . 60 cow)rtse the tITW)cia] Statements.

THE ASSOCIATED BOARD OF THB ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE SThATEGIC REPORT) FOR THE YEAR ENDED 31 JANUARY 2021 The members of the Governing Body {the 'Governors'}. are abo director8 of the company. present theiT annua] report lincorpoTating the Strategic Report) for the yeaT ended 31 January 2021. together with the audited financial ststements for the year in accordance with the ChaTities Act 1993 as wnended by the ctwities Act 2011. They eonfim that these comply with the requirements of the Companies Act 2006, the COmpan￿S Memorandum and Artides ofAs80ciation and Accounting and Reporting by Charitie8'. Statement of Recommended Practice applicable to charities preporing their accounts in ac￿rdanCe with the Financlal Reporting Standard in the UK and Republic of Ireland {FRS1021. STATUS AND ADMINISThATION The A88ociated Board of the Roya] Schools of Music IABRSMI is a registered charity, number 292182 IChaTIty registered in Scotland numb￿. SC0433431. and a company limited by guarantee. re8iStered number 1926395, e8tablished by four Royal Schoo]s of PAusic for the benefit of music educatio￿ The company has no share capital and the liability of the members in the eve￿ of winding up is ]imited to £1 per member. The member8 are the Royal College of Music, the Royal Academy of Music. the Thjstees of the Roya] Northern College of Music Endowmert Fund and the Tn￿tee¥ ofthe ROY￿ Conserrtoire ofScotl8nd TntsL The charity has a wholly owned ￿L￿￿Idi￿ry company. The Associatsd Pth of the Royal Schoo]s of Mu8iC (Publishing) Limited (ABRSM Pub]IsW. the results of vA)ith are conyobdated in the8e fll]andal statement8. GOVERNING BODY, CHIEF EXEcirrivB AND MANAGEMENT STRUCTURB For the purp08e8 of the Companles Act 20(6 the Governm we the directors of ABRSM. They are also the charity trustees under the Chrities Act 2011. The Governing Body 18 constituted under the Artideg of Association of the company a$ drnwn up in 1905 and amended on 26 July 2011. The amendment allows for three additional independent membets toioin the Governing P*)dy. Member3hip of the Governin8 Body consists of two persoTh8 appointed by each ofthe ROY￿ Academy of Mugic. the Royal College of Music. the Royal Northern Coliege of Music Endomrynent Fund and the Royal Conservatoire ol Scot]and Tnwt, tO8ether with three independent Governors, and a chain￿ who 18 appointed by the members. New Governors are inwted to meet Governors. the ¢Thief Executive and other senior staff for their induetion. These meetings are tailored to the needs of each Governor depending on their background. experience and •xpenise. The Govemors in office from l February 2020 to date of this report ve li8ted below And. where app￿c&b]e. their alternate directors I'Alternates'l. GoYern¢v8 Tony Hales CBE. Chalrn France8 Anderson Professor Jonathan Freeman.Attwothl CBE Jeremy Heap Nicola Irvine (appointed 18 March 2021 Professor Colin lawson CBE Professor tinda Merrick Kevin Porter John Cunningham {resi8ned 4 March 2020) George Whalley (appointed 13 March 2020) John Cunningbam {resigned 4 March 2020) George ￿eY (appointed 13 March 2020} Davfjd Roper, Deputy Cbair Professor Jefftey Sharkey Alan Smith {resigned 13 March 20201 Nicola Taylor {appointed 13 March 2020 resigned 31 July 2020) Bronwyn Syiekl Baroness Fleet CBE {appoirrted 25 June 20201 1Jeremy Heap, Frances Anderson and BrOnW￿ Syiek are independent Governors Page 1

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (coNT￿lED) FOR THE YEAR ENDED 31 JANUARY 2021 GOVERNING BODY, CHIEF LYECtrrivE AND MANAGEMEKf STRucfuRE {eonthiued) Flnance Commlttoe Mtmbe Jeremy Heap, Chair John Cunningham Iresigned 4 March 2020} GeoT8e M￿lleY (appointed 13 March 20201 A]an Smith Damian Wisniew8ki Audlt & Rlsk Commltt•• M•mbe David Roper, Chair Sue Baines Judith Barber Eaen Mackay Rachel Harris lappointed 5 February 20201 Bronwyft Syiek (appointed 28 October 20201 France8 Anderson {appointed 28 October 20201 Muslc Bthicvdtlon Advlsory Commlttee Jeffrey Sharkey (appointed Chair 26 Novemter 2020) Tony Ha]es CBE CaTolyn Baxendale Sally Cathcart Linda MeTrick {5tepped down as chair 26 November 2020) Mark Messenger Gordon Munro Paul Roberts Andy Stott Jeffrey Sharkey Lesley Ann Thom80n Claire Whitaker David Roper (Chair) Tony H￿e8 CBE Jeremy Heap Proftssor Colin Law8on Alan Smith Ire8igned 13 Marcb 2020) NomlnAttoM con￿￿tt•• Tony Ho]es CBE. Chair Profeysor Colin Law80n Linda MeTrick David Roper Alternates are appointed by the Governor for whom they art. They are enlit]ed to attend. vote and generally art on behalf of the appointing Governor at any Governing Body meeting where that Governor is not present. Alternates ate officers of ABRSM. rather than agents of appointing Governors. They are therefore subj'ect to all tenns and conditions. ¢her than remuneration. existin8 reference to other Governon. K•y P•rnontt The Governors delegate the day-ttrday management ofABRSM to the Chief Executive, and thtOU8h him to hi5 team ofsenior executive staff, who Comprise the key management personnel.. Chri$ Cobb. Chief Executive (Appointed l January 20211 Michael Elliott. Chief Executive (Resigned 31 December 2020) Penny Mi180m, Deputy Chief Executive ProfessoT Lincoln Abbott$, Executive Dirertor. Strategic Development Tim Arnold. Executive DirectOT: Global Operations IResi8ned 30 April 20201 Sue Cambridge, Executive DIre￿or.. Fmanee & Corpordte SeThices Helen Coleman. Director Globa] OpeTatiOn8 (Appointed l May 2020) James Halliwell. Chief Digita] Officer (Appointed 6 April 20211 Profe88w John Holmes. Chief Examiner j￿emY Phllllps. Executive Director. Commercial IRe5i8ned 22 May 2020) Ded81on Proposals for developing ABRSM'S work are diBcussed and Tefjned by this senior tem Where appropiiate they may be reviewed by one of the 8pecia]ist committees of the Governing Body, •*hich include the Music Education Advlsory Committee. The Chief Executtve. with the Executive Dirertor.. F]nance and Corporate Services, presents key po]icy and strategic propo8818 to the Fmance Committee, which reviews the Ih)¥ncial implications of all proposa]s. and to the Governll￿ Body for consideration. If agreed, these will be inLw)orated into the plhnned activities of ABRSM. Page 2

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE SThATEGIC REPORT) {coririNUED) FOR THE YEAR ENDED 31 JANUARY 2021 GOVERNORS, CHIEF EXECUTIVE AND PaANAGEMEKf STRUCTURE (¢ontinuad) Dedslon MaWng (eonthiu•d) All aspects of ABRSM'S work in support of its chaitable obJectlve8 are brought together In a co￿Orate Ptan which, together with financial PToiertions. 18 monitored by the Senior Management Team and CO￿91dered by the Finance Committee and then the Governing Body. The Co￿trate Plan Sets out the strategic direction for ABRSM in the medium tem] whith 18 then COMMU￿Cated io all #aff. The Finance Committee 18 aiso Tesponsible for the review of the forecast. budget and rnanagement account8. It meets three times a year and monitOT5 the finances of ABRSM on behalf of the Governing Body. The Finance Committee compti8e8 UP to six membern.. two independent Governor8. Thvo Royal Schools of Music Governors and two Royal Schoo18 of Mu6ic Dlrector8 of Finance. One of the Govern￿, posts on the Finance Committee is CU￿entLY vacant. The AudSt & Risk Committee over8ee8 risk management on behalf of the Governing Body and meets three time8 a year. It prO￿deS ￿Sur&nee to the Govemlng Body on the effecrivene5s of risk management, control and 8ovemance arTan8ements. It a]80 meets wlth both the external and internal auditors to di8CU88 the findings and Tecommendation8 from the audit reports. The Audlt & Risk Committee compri8e$ seven members indudin8 the Deputy a￿1r. two independent GovemoTS and four appointees from Royal School8 of Mu8iC.. The Audit & Risk Committee reffjure8 that at least one member 8hould I￿t Teeent audit and/or financial accounting experience. ABRSM procureB It8 Internal Audit service from BDO LLP. The wotk of the Internal Audit 8eThiee 18 informed by an analysi¥ of ri3k8 to which ABRSM is exposed and an annual internal audit plan js based on thi8 anatysis. The Audit & R18k Committee appTove8 the internal audit pI￿L BDO LLP submtt regular reports to the Audit & Risk Committee on audits eonthicted. risks identified and management's reS￿)nSt to their findings. a8 well a8 their independent oplnlon on interna] control. With the onset of the *bal pandemic in MaTch 2020 the Internal Audlt pro8ramnx was temporwty wended and re8tarted in 2021. The Nomination6 Commfftee 18 respon8ible for advisin8 the Governing Body ¢)n the appointment of it8 membern and its commfftee The Muslc Education Advisory Comnyttee is responslble for ad￿sing the Executive Board and Governth8 Body on the direction of ABRSM'S educational programmes and impact and for assisllng ABRSM in ensuting the MUSIC￿ integrity. quality relevance ofABRSM's offer in the context of a contemporary g]obal landscape. The RemuneratSon Cornmittee is responsI￿le for determinin8 and implementsng the remuneration policy of the senior peTBonnel. In doing so it considers Ternuneration trends acn)88 Comparable institutions as well as performance. The remuneration of the senior executive staff is deteTmined through the completion of perforniance related asse88men18 in line with company pob"cy. The level is deterniined by eva]uating a combinats'on ofperformatsce and mwket rate. ABRSM'8 govemance is structhd around the principles of Governance Code. The Governing Body is committed to revisiting the Code's Key Piinaples on a reEular basis to ensure the highest standards of GoverncY5' ]iabfiity is inchjded in the combined business Insu￿ policy al￿ is purcb&sed by aUth￿lty contained within the Memorandum and Artides of kno¢jati(￿ as permitted by Section 232121 of the Companies Act 2006 and with the agreement of the Charity Con]rnis8ion. The total cost of Governors. and Officers, ]iabiiity insurance was £2.10012020: £2.100). Pagg 3

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (COWnNUED) FOR THE YEAR BNDED 31 JANUARY 2021 CHARITABLE OBJECllVES ABRSM has the following ain￿ and objectives set oui in IES Memorandum and ATticles of Asswiats'on.. to advance the art& science and 5kil]s of music, speech and drama throughout the UK and overseas: and to Promote the education and in. and the study and appreciation of music, speech and drama. A five year plan is produced and refreshed at regular Int￿ValS. It Sets out how ABRSM vnii achieve its mission - to inspire aehievement in music. Over the next five years, ABRSM aims to: flnd new way8 to inspire learners to pro8re88 through Innovat5ve u8e8 of technology complete the internationa] Tollout of digita] booking and a88e88ments develop our leadership in music educatbo extend our markets and operations; build our capacity and capabfity. restore and grow revenues and impr¢m profftabilty. The Governors believe that the activiiies of ABRSM in motivating musical achJ"evement through our authoriiative assessment of 8tt￿ents. the support of their teachers and a wide range of published resourceB 8erve to develop individual capabllities. eompeteneies. thlls and understanding of music and they promote. 8UBtain and increa8e indI￿dy&1 and cL4lectfve knO￿edge of musie for the public benefft. The following report explains in more detail how the above short attd long tem) obJeetives are achieved. Our main measurement8 of success continue to be the level of candidate numbers and turnover, togetheT with the dejivery of key targets for the launch of new product$ and services. Additiona]ty. the impact of the global pandemic in 2020 resulted in an incTeased focus on re8toring the compan￿$ cash reserves and 8trengthenSng its resL]ience. STRATEGIC REPORT PRINCIPAL AcfiwnES ABRSM support8 the teaching and learning of M￿le. kn partners]Mp with four Royal Scb)ols of Music ond alms to Inspire aC￿'eVement in music. The strategles adopted by ABRSM to meet 118 dwitable objective8 and thereby provide publle benefit foeu5 On 8ix main area8 of aetlvlty: l. the n]aintenanee and developm￿t of its suite of examtnation8: 2. the provision of support to teachers of musie: 3. the provision of support for learner8 of music., 4. the maintenance and devekjpment of its published and digital resources; 5. financial and in-kind 8UPPOrt for other clwities estaidisbed ft>r the benefit of music educati￿ and 6. the commissioning of new music The Govemorn believe that these athities continue to meet ABRSM'S Ctwitable objectives both in the year under review and into the fijture. ABRSM'8 subsidiary, The A&80ciated Board of the Roya] Schcrf)Is of Music (Publishing) limited. is engaged in the production and sale of Music putAications. recordings and (hw'tal resources in support of the charitable aetivitie8 of ABRSM. both of exam related publicatiorts. and wider repertoire music and text-FyJ)ks supporting m￿lC education. Page 4

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STrATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 STrATEGIC REPORT {¢ontitiu￿) ACHIEVEMEfiTS AND PERFORMANCE The core activity of ABRSM. deliveTinE music exams of a consistently high quality both in the UK and l]rternationally. was affected due to restTiCtions put in place as a re8uIt of Covid-lg but we were able to offer alternative and new fornwt online examinations approved by Ofq￿l to rneet our lewners. needs both in the UK and internationally. There were 218.CQO12020: 636,0(XI) ABRSM asse8srnents in 2020-2J. a decrea8e of 65.70 on the prior year. Due to government re8triLtions in the UK and international]y, 8 8i8wficant number of face to face practical and in person theory examinations were reqwred to be c￿Celled. In response to this, within four months we designed and implemented adapted assessments a18rade5 eA to allow learners to progress. In addition withln 8ix months we introduced an entire]y new 8Uite of regulated eXaMi￿tIOns. the Perfornw￿e Grades, available for all e>istin8 subject8 from Grades 14. For these examinations learners make a video recording of themselve$ playin& which is then uploaded to a secure website and marked remotely by an ABRSM examlner. Perf0M￿nCe Grades are equivalent in level of rigor and dIffiC￿ty to Practical Grades and learners can 8Witeh between the two to progress through grades. We have a]$0 migrated our Theory offer for Grades 1-5 to an J]ine plarfornL Most of ABRSM'8 qualifications are fOrn￿llY recog￿ed by the UK qLthUfieatlon8 re8ulatorB." in En￿d by the Office of Qualification8 and Examination8 Regulation {Ofqu￿),' in Wale8 by Qualifications W8le6.' and in Northern Ireland by Coun0] for the CurricuJunL Examination8 and Assessment ICCEA Re￿￿tion). All o regu]ated qualifications are listed on Ofqual's Register of Qualifications. The Governing Body Is responsible for over8eeing ABRSM'8 compliance with the conditsons ofrecognition a8 8et by the three regulatOT8. UK4md lrnland exqmlna114W 2020.21 a total 01 128,000 (2020.. 28S.OCN)) assessments weTe Completed for ABRSM'S Practical. Performance GTade, Diploma, Theory ar￿ Music Medals qualifications in the UK and Ireland, a decrease of 55.IV• on the prior year. The Practical examil￿tiOnS UK exam session I In 2020 ran for three week8 prlor to cancellation of all remaining exams on 18 Marth We restarted PTivate vi8itg from July 2020 in line with health and safety guidance and procedure8 to eA8ure the sllfety of candidate8. exaTniner8, stewards and teachers. No examination8 were held in public venues over the summer. In preparation for the UK exam 8es8ion 3 vthich ran from 9 November to 19 Deeember we i88ued guidance for venues and candidate5 in line with government guidance. We opened 177 venues and increased 8V8i]abllity in venues near to those that were d05ed due to Covid-19 restrleti¢)D3. We al80 offered week8 of diploma examj ID the first and last weeks of the exarn sessio Online Theory examinations C￿mmenced in AUg￿t 2020 and PerfomMnee Grade examinations started in November 2020. We aim to retain and attract candidate8 through a vaTiety of torporate strategies induduLg the release of new and refreshed qualification8 and increasing customer en8a8ement e&pacity along with new pub]ications and digital lean)ing app& A&8essments completed in Scotland make up 4.4Vo of the total {2020.. 4.40AI. We are a88iSted in deliV￿1n8 our exam1￿0￿5 by volunteer Honorary LDca] Representatives IHLRS) who give their valuable lime to help a￿ange and e￿e the 8m(M)th r[ll￿)ng of exams in the UK. At the end of the year we had 255 HLR8 assisting us in these roles. During the year 39 HLRS stepped down. 5 HLRS were newly recruited in January 2021 after a recnjitsnent pause in 2020. We held on]ine eveths dwin8 the year to ititroduce HLIts to the new PerfoTmance Grade and 0￿]ne Theory Page 5

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STrATEGIC REPORT) (cowriNUED) FOR THE YEAR ENDED 31 JANUARY 2021 ACHIEVEMENTS AND PERFORMANCE (conlinu•d) Intmiallonal •xamlnatioftx During the year a total of 90.000 {2020.' 351.000} intemation8J aS8e88n￿nts were completed for ABRSM. Practica], PerfOrM￿Ce Grade. Diploma and Theory qualificadon8, a decrease of 74.4Oh on prior year. Thmuglh)ut 2020. we wntinued to ￿￿nitOr the Covid.19 Si￿atiOn aeross the globe. Deci8ion8 to cancel exam sessions in a Specific market were based on multiple factors indudin& whether or not our examiners could enter a county 8afely and wthout quarantine restrictions: vthether or not we were pernjitted to examine given the c￿ent situation and whether or not schools were fijnctioning. As the Covid.19 situation worsened, it was dear that the va8t majoTity of governme￿ and travel re8ttiction5 would remain firn￿y in place across most of our markets. We were able to complete live exam8 at the bewung of the year in Turkey and Barbados. Practical exam8 were partially Con￿leted in Se&sion l in Indonesia. Malaysia Sri Kanka and Singapore. Towards the end of the summer. Covid-19 restrictions lifted enough in a few countries across Eur¢)pe for exams to be able to take place In Cyprus and Gernwiy. However. due to the rising c&8es in Covid-19 in the UK and thr¢)ughout the world a]1 other Intematlonal tOUT8 were cancelled for the renmin1￿ 8es8Sons. The rollout of Onllne Theory exarnination3 to International maths commeneed An November 2020 and the international rollout of Perfonnance Grade exarnination8 8tarted in January 2021. Perfomw￿è Grade examina(ion8 have proved to be particu]arty popular in Hon8 Kon& At year end we had 117 12020.. 1401 international representatives. wyering 76 countries. Early in the year a conference for repre8entatiYe& wa8 held in London and a numbeT of training sessions for representstives were held on]ine to Provide training on our new online booling system and to introduce Perfom)ance Grade examinations. The provI￿on of 8UPPOrt to tea¢h•rs of mul¢ ABRSM supports teachers worldwide by developing printed and digitsl resouTtes that CO]￿lèrnent our exam focussed books, recordllw. apps and videos, and through a range of ￿]ne and faee-to-faee events and qualifications. Our online course 'Becomin8 a Better Music Teacher,. aimed at teacheTS who Jre beginning thelr teaching joumey or who wish to refresh and refocus their teaching 4Jlls. has now surpa￿ed 20,Crf)O enrolmeni8. Due to the pandemic we have been unable to deliver face-tcpface events and conferenceB. During September. October and November we held a series of online webinats via Zoom acro88 All our markets. The BeBsion8 focused on teE4ching approache8 to the new Piano Syllabus repertoire and attracted a]most 1,500 participants. The pandemic had an impact OD our INSET programme during 2020. with the need to repuJpo8e content for remote delivery. In addition to the 3ix face-to-face Sessio￿% we delivered pre-pandemic. we pre8ented 18 Itve sessions remotely, reach]'ng a total of 638 teathers aeross the year. An advantage of the sessions being recorded delivered online has been that they can be cimjlated after the event to an even wider audience, allowing us to reach more delegates than would sometime8 be p088ible in a live setting. Page 6

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 ACHIEVEME￿[S AND PERFORMANCE (eonthiued) The early part of the year 2020-2021 Saw the final prryardtioDs for the issue of Piano 2021 & 2022 in June. features of which included. new scale requiremen￿ entirejy refreshed repertoire lists. whlch were reorgani8ed to follow a more leamer-friendly forn￿t. extended to ten piece8 eath broadened to include a wider rnnge of pieces, induding si￿]fican￿Y improved representation of female comFLwr8; and an Initial Grade. followlng on from the introduction of thi$ for Bowed Strirw8 from 2020. In Deeember, we issued fl￿1 repertoire Ilsts for Slnwg for Mustical Theatre Grades 4 - 8. enabling leameTS to access Perfornjance Grades 1- 8 from 2021. and supporting tests for Grade8 4 & 5. making Practieal Gradeg accewNe up to Grade 5. The ￿￿enanc• and development of its publlthed and di8ital r¢wurc•B This year saw the release of a new Piano syllabus and agsociated published and dIgit￿ re80UTce8. TO support the lawich of Online Theory exaMI￿tions. new workbooks and 8ample papers for Grade8 I-S were released. New practice paper8 and m￿le1 an8weT8 were introduced for the eristsng Grade &8 syllabus. repertoire book8. created in joint ventUTe with Ha] Leonard Ewe. were rele•8ed for Sin8Sng for Musica] Theatre, Grade 4-5. For violin. Star Theory was published for young violini8ts and a Si￿t-readift8 traAner app introdueed. Pub]tshlD8 turnover for the year Ilndudln8 Intra-group dJarge81 wa8 £7.618.000 12020.. £8,245.000}. The Publlshlng Company re8u118 Ilncluding intra-group charges) produced a gift aid payment of £1,309.00012020.' £1,801,000} to ABRSM. Despite the impact of Covid-lg on demand for our exarnlnatSon8, the re]atlvety mode8t r¢du¢tion in Publishing turnover renects the popularity of new pub]ication8 released in the year. The h'ano Scales Tralner app was rdea8ed Sn July. This wa8 featured by an edit￿7￿1 in the Apple App Stor¢ for the UK and China. In August the Piano Sight Reading Trainer app w88 rele88ed. which wa8 a finalist In the Educatlon category of the UK App Awardg. A Violin Sight Reading TTainer was released in November 2020. The8e aehlevements are in par8llel with ongoing actiiTrty to ad)ieve an an*itiou8 development prwamme foT products and services ct)rning in 2021 and beyond. Flnandaj and hj-klnd 8UPPOrt for other clwltle• e•tabll•hed for th• benefit of mu•l¢ educatlon Due to its financial situatiorL ABRSM was not able to make substantial charitable contsibutions to support the Work of four Royal ScFK)ols of Music as it had done in prior yeors. Nevertheless, ABRSM maintained scholarships for UK-based and international students of the Royol Acadewny of Music. the Roya] College of Music, the Royal Northern Colle8e of Music. the Royal CoA8ervatoire of Swtland. the Royai Welsh Couege of Music and Drama and the H¢)n8 Kong Academy of PeTfO￿Jng Art5. A total of 9112020.. 911 stholars benefited from ABRSM fvnding duTing the yeaT. Sponsorship and donations for the benefit of mu8ic education atlBing in the year to 31 January 2021 were £244.00012020.. £6.0 rnwion. indudin8 contnbutions to four Roya] Schools of Music). Scholarships awarded tota]led £1.048.0001202tr. £1.053.IM) and included.. Page 7

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (Co￿r￿uED} FOR THE YEAR ENDED 31 JANUARY 2021 Flnanclal and In-klnd support for other elwities establlshed for the benefit of musle edu¢atlon {conthiued) RoyalA¢adry olm Operatic BaSs-￿1t0ne Michael Ronan. who completed his BMUS with honours at the Academy th 2019, Teceived support from ABRSM for his Masters degree in 2(k21. Michael has now been offered a place on the pre￿isiouS Royal Academy Opera course. enty for which is extremety competitive and attracts high qua]ity applicants from acT088 the world. Over the course of his studies. Michael has been awarded the Joan Chissell Schurnann Lieder Prize, the Blyth-Buessi Opera Prize, and Second Prize in the Richard Lewi8/Jean Shanks Award. Some recent performances indude the role ofJohn Proctor in The CrucilAe by Robert Ward at OPERNFEST. BeTiin. Maesetto in Don Giovanni with the Covent Garden Chamber Orchestra, and a recital of aara Schumann lieder at the Wigmore Ha]1 with the Academy Song Cirde. He is very RrateffiJ] for ABRSM'S generous support, and $ays, .1 wou]d like to express a profound thanks to the ABRSM for your gift of support ror my studies. It has made obtainable for rne a career as a musician. which 1$ a rare Pril￿ege. I hope to contlnue to benefit from the incredible institution which has become an integral part of my identiry., Royal Colleg• olMuJrfc Rafael Costa 1$ a Master of Music in Perfornw￿e (piano} student De8pile the current difficult tlme8. he haa found his time at the RCM th's year to be ffiJlfJllin8 and has been able to fjjrther his studies through re8￿ar online lessons supported by son* face-to-face lessons wlth hls piano professor. The opportunity of con)ing to college during lockdown to practice on the RCM'S instruments has helped him to improve several a8pect8 of hi8 playing. His achievement8 thi8 year included performing a Mozart Piano Concerto with an orchestra at the College and being awarded a fijll 5cholar8hip for the Artist Diploma course at the RCM starting next academic year. Rafael is a160 one of the finali8ts in the Stockport InternatioDal Young Mu81¢ia￿ Competition 2021, which has been postponed to nexl year. Royal North¢rn Coll¢ge ofJ1fu￿ Sarah Prestwidge is a current first year MasteTS student. Sarnh ha8 been involved in both of RNCM'S opera PToduetlons duting thi8 academic year: in the latter. Flight by Jonathan Dove. in the demanding role of The Controuer. The tlreun￿es for the performance were challen8in8 (distanced in the RNCM Opera Theatre and with piano, rather than OTchestra) and her ￿nging was of the very hlghest standard, voca]ty, musically and dramatically. She has recent]y been Chosen to sing the role of Queen of the Night in Mozart's Ma￿C Flute in a concert production which wi]1 take plate in WoodbTidge in September of this year. This 18 an unu8uaJ volce with eo$e and security in the coloratrjra soprarK) repertoire. Royal Con¥ervatoirn of S¢•tlond Carnien Farfan is a classical guitarist from Venezuela currently enrolled in the fourth year of Bmus at the Royal Conservatoire of Scotland. Carmen has been able to experience a great student bfe surrounded by ￿eat music teacheTs and dassmate$. She has perfonned nurnerou8 times solo and chamber music dwinB the past fouT years and met and learned from distinguished professional musicians. Carn]en has said that her development is not exclusively due to the Roya] Conservatoire of Scotland. The oppx)Ttunity to 8tydy abroad represents a big contrast from the reality in her cowity and it has changed heT. To learn alm)￿ otheT cyjtures h88 opened Carmen's mind and made her appreciate the diversity of people as well a8 undeTStand her own. ABRSM funding has enabled Catinen to continue learning and focusing on improving her technical and mu51cal 8kSlls during the pandemic when many other opportunities to learn bave al] but thied up. Other S¥portforMuJic Education Building on the recommendations of The Music ComMi￿10n published in 2019, we have continued to work closely with partner3. policy and decision rnakers to support the place and purpose of music. and of progression within Music education during a very chal]enw year for teathers. learneT8 and mugiciang generally. Page 8

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE SThATEGIC REPORT) (COKnNUED) FOR THE YEAR BNDED 31 JANUARY 2021 Financlal and lTrkind •wport for other eharitle8 est&bll8hed for the benefit of mwlc educatjoo (Continu￿> We continued our researth into the 8tste of mu8ie making and ieanung and wll] pubb'8h the 5th in the serie3 of our Making m￿siC research paper8 during 2021. Worknng to a brief from the Department for Education and directed by its Expert Panel of teachers. academics and music education 8pecialists. we committed our ovm re30urces and drew on our networks to draft the Model Music cu￿1￿￿h1M for England. & non-stathtory guide to Bchool rnu8ic learning for all pupils between 5 and 14 years of age. The Model Music Cutriculum is designed to devels)p learning through 8]n￿ll8. 11￿c￿l￿ composing and perforn)ing s￿pOrted by a rich and diverse range of repertoire thoices from 1140 to 2020. drawn from around the world - ineluding music from Oasis, rapper Loyle Carner and the film Slumdo8 Millionaire as well as Bath, Mozart and conteTr¥orary composerB sucb a8 EtTollyn Wallen and Anna Meredith. (Xh•rS¥ppOrtAorM4￿ 34¥¢4¢1on Initsative8 funded by our Elevate Fund in 2020 were stalled by the pandemic but restarted in January 2021. They further devel¢)p our network and institutional knowled8e of ways to support progre88ion in the m08t effertive way. We launthed our Dfvenlty & Inelu8ion Plan in O¢tobeT 2020 setting expliclt 8oa18. 8UPPOrted by mea8ur4ble targets, to bToaden the music we pronvxe, cornm￿0n, and publi8TrL in order to recogni¥e the riehness of diverse musle and our global identity. to acknowledge cuitUTal diversity. and inelude composer8 from every section of society. Since then we have comm1&8ioned new pieces for ond S1￿11ficantty enriched the representation of Black. Brown. and IndigerK>u8 People of Colour (BBIPOCI comp05ers in our fortheomlng woodwind Syllabus. We have held a fiTSt 'Writing for Mwic Education, wothop for 100 composets as part of fundamental commitrnent towards open-source guides and de.my8tifying cornpo8in8 for music education. A composer mentorin8 scheme will Start in Sprin8 2021 in paJtner8hip with the IvoT8 Academy. Harnessing power of sponsor8hip relationships with National Youth Jazz Orchestra. National Youth Orehestra. National Youth Choir of Great Britain. National Open Youth Orche8tra, and a Tange of local/8rass Toots initiatives to 8 8peciflc Diver81ty and Inc]u8Son tsT8ets covering mllDbers of participan￿ range of TmiceB and good practice di88emination Despite the lockdown and ban on irrtenjational travel. we found ways to collaborate to make M￿81C and bring the joy of music lo our audiences. A newly designed platform on our website. Play On. brings together Inspirauon. offers and advice for leamer8. teachers and parents. Our Globa] High ScoTern Concert8 have brought together perfornier8 from more than 40 countries. and we celebrated Make Mu8ic Day with the compilation of oveT 800 recorded 8ubmi8sions for an online e￿emb]e perfom)ance of 'How far111 go, from the DiBney fi]m Moana. We continued to support organisatiow through the pandemic. During the year we continued our pannerships with the Nationa] Youth Orchestra. the Natlonal Youth C2K>ir3. the Royal Phi]harn)onic Society, the London Music Fund in London, Nadonal Y￿th Ja72 Orchestra. National Children's Orehestra of Great Britain and the Nadonal Open Youth Orchestra. Our Sponsorship portfolio continues to reach a diverse Tange of rnusic learner8 a5 we look to expand our geographical and S(￿la1 reath We continued to support the Royal Phknj onic Society's Women Conductors Programme and their young cornposeTS. We also continued to support the Commonwealth Resounds. the ComwK)m¥ea]th International Composition Avrnrd. which seeks to promote composition across the globe for under 18.$. In 2020 we supported an extra Composition Cha]lenge to encourage young composeT8 to have sornething po￿tIVe to focus on and to use their time during lockdown creauvely. We 0180 SUPPOrted the PTO8reS￿0n rrxrtes orchestra of the Tinderbox Collective. an orgaTrisation in Scotland that foeusses on creative and diverse ways of music-rrkn& induding a focus oll th'8ital aad new international ￿ch conttnued thTough the International SpotLwrship Fund awards and through a contirll]ing PTogramme. Organisation5 in TaDzaDia. Namibia. Lebanorn A]Jtigua and Barbuda and South Afiica received awards to PTovide ensemble and solo tuition for di8advantsged thildren and adulL8, and to support nationaj youth orchestras. Some Projects have adapted to resrrictions on live teaching and performances. for example by providing their Consti￿ with a donated molyle plK)ne and buying data plans 50 that they can eontinue to progress. Page 9

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STrATEGIC REPORT) (coKriNUED) FOR THE YEAR ENDED 31 JANUARY 2021 A¢u$Mlbility and Online Resources In addition to our exominaiion related on-line tools. we continue to develop our suite of resources for teachers via the website along with face-t¢>face interactiorL The Examiner Online resource offering has been developed with additional video content OD method. training and moderatiOiL ABRSM'S website features loca]ised content lor every county in which we operate and responds automatically to ea¢h vi81torfs I￿ation in order to provide local exam entry. contact and event 1nf0rniatio￿ Dwing the year to 31 January 2021 we bad over 6.716.000 (202tr. 5.882.OCKJI visits from over 3.100.000 12020: 2.650.000) unique visitors. ABRSM, working c]osely with Pwc. continues to develop and irylement the or8ani8ation'$ ambitious digitsl transfomution programme. The Dlgital Transformation programrne i8 called Key Change and has 4 objertives.. To compete betteT in traditional markets providing a modeTnised. Streamlined dl8itsl customer experience for learnets, parents and teacher8. re8ulting in improved eore Customer rettntlon and To develop new and innovative products and service8 helping ABRSM enter new markets, attract new customers, increase revenue$ and broaden mwicai achievement. To improve operational efficiency using digrtai tethnolo8y to autornate prOce￿e8. al]ow 8elf-seThice and diTect re80urce io focus on value to the customer. resultin8 in improved efficiency and customer service. To become an Innovative and learning organisation ￿tatIng an orgjnisation fit for the (b8ital age. VA￿Ch can innovate far into the ffijture and antiapate customer need& The first phase of development work to re-platforni core systems, present a new-look website and new dlgltal resources was launched into the llve environment in August 2020 and includes online booking and change of appointrnents. marking and results and the launch of Music Case and Journey8. Using the same platform, new products. including Online Theory and Perfonywice Grade a$￿$Ments, were Tapid]y and 8uccessffiJ]ly launched in the second half of the year. Prlze Fund8 The endowment funds were established to provide prize8 for musical achlevement In ABRSM'S examinations. All inve8tsnent8 have been aequtred in accordance with the pmrB avallable to the Governorn. Fundraljlng The organisation does not engage in fjjlldrn￿￿$ athities. Its income is derived from music examTnation fee8 and from 8aie8 of 8S80¢iated pubh'cations. Page 10

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (COKllNUED) FOR THE YEAR ENDED 31 JANUARY 2021 FINANCIAL REVIEW A 5Wlllnary of the financial re8uIts for the year's aC￿ltieS i8 given on page 26 of the accounts. Total turnover of ABRSM and its UK $￿SlaIary from examinations, pub]ications. teacher support and Investment inttme for the year amounted io E23.397.(K)012020.. £57,009,oC￿I. The operating deficit for the year was £8.052,000 12020.. 8uryJlus of Fl.568.0001. The de¢rea$e 1$ due to re8tr1etion8 on face to face examinatioTL8 as a result of Covid-L9 partly offset by the introduction of online examinations. The perfornwice of the pub]ishin8 compw 18 set out in nLe 6 to the accounts. The deficit is stated after char8in8 £4.060,OCKI12020: £3.087.000) of digital development expenditure in ]ine with ABRSM'S policy regarding the w)Ite off of software development (note 21). The digita] transformation programme enabled ABRSM to deliver customer self-service in addition to offering both practlcal and theory examinations online. thereby considerabty mitigating the potential impact of Covid-19 on the financial stren8th and future perfonrwice of the GTOUP. Goln8 Concern The Covid-19 pandemic developed rapidly thuing 2020. Global travel restrictions prevented examine￿ from travelling to the vast majority of international tenilories. I[￿uding ABRSM'S major markets. The initial lockdowns and travel restrictions In the UK also resuhed in exwnineT8 being unable lo travel and 8chool8 and public exam centres havin8 to close. A8 a result. practical exams and theory exam8 were cancelled in large number8 and customers were refijnded in fjjll. Schools are now open in the UK but ir rerna￿ unclear when and to what extent travel restrictions vriu be lifted around the WOTId. In response to these matters, the Group widly and successfully delivered the fo]]QWiDg actions.. Development of onllne assessments was accelerated. having cknined Ofqua] appmal to offer an adapted form of Graded Music Exam8 at grade 6 and above, the thst few on]ine exam8 took place in JurLe 2020 . A new, complete sulte of online Perfo￿¢ Grndes otrtained Ofqual approval and 18 now bein8 offernd to candidates WOTldwide On]iDe theory exams for grade8 1 to 5 took place ID November 2020 in the UK and certaln overseas territorie8 and has now been rolled Ixrt Internationally All teacher conference$. examiner training and other events for repTe8entatives wortdwide and volunteer8 in the UK have moved on]Sne The Publishin8 subsidiary law]¢hed digitfjl downloads of 8heet music . ABRSM participated in the Govern￿.5 Job Retention Scheme e￿blIng up to 2ryh of staff to be fithoughed Staff numbers over￿1 were reth￿ed by I IVO and pay has been frozen ABRSM'S offices closed in mid-MaTth 2020 through to June 2021 and staff and the wider workforce of examiners. contributors. representatives and volunteers switched to working effectivety online In addition to the measure8 CArtlined above. other operation8J savin85 were identified and have been implemented. Although 1¢ appears l&ely that international Tr)vement restrictions may persist throug1￿t 2021. there is strong demand for the new digital a8sessments'. Performance Grades and Online Theory. Praetical examinations be Off￿ed in the UK in June and July 2021 and again in the autumn together with practical examination visits Iwhich have been ta￿an8 place througlKMrt the year in the UK. Turnover for the Pub]i8hinE eompany has exceeded expectatioDS for the first quarter of the year with deTnand stimulated by new produLt& Further actions are plonned to increase resllience and reduce re]iance on internation81 travel by recwiting and training facilitators and examiners iwed in the country where the examiDthons take place. The chariiy is no longer re]iant on the de]ivery of face to face examiRMtions. hamng successFJlly developed rolled out online alternatives of equal Eigour and value vknich have been welcomed by it8 candidates. It is now much better placed to T￿thStand ongoing travel ￿$trICt10n8 and lockdowns as it is able to offer on]ine aSse&Smer￿ worldwide. Once travel Testiictions are eased, the chatity ret￿ll to offering face to face Page 11

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STrATEGIC REPORT) {COKnNUED) FOR THE YEAR ENDED 31 JANUARY 2021 FINANCIAL REVIEW (continued) examinations Worldwide tO8ether with online a￿sSMents, thereby offering more choice to candidates and appealing to a wider base of learners. Consequently. the liquidity of the charity h48 substaotially improved with cash at 31 January 2021 being £4m higher than foiecast in November 2020 and forecast to inerease over the course of the next year, enabling the charity to continue investing in its dI￿tal llthaS￿e and internationai developmenL The introduction of cwstomer self-serrice Means that examination fees are Teceived sooner from international territories. reducin8 the amount of cash tied up in debwrs. thereby improvin8 the Group's cashfiow and Tedueing its exposure to doubtful debts. The trustees therefoTe have a reasonable expeetation that the chwity has adequate resources to continue in operational existence for the foreseeable future. bein8 at least ￿e1ve months from the date of approval of these nancia] statements. and are not aware of any other material uneertainties wkn'ch may adversely affect the organisation. Accordingty, the financia] statements continue to be prepared on the going concern basi$. InM8tm•nt S•l•ctlon Poll￿ and P¢rftsnbthe• On the incorporation of the Associated BoaTd in 1985. li was decided that the pub]ishin8 busine58 of ABRSM should be transferred to a who]]y owned subsidiary. The Associated Board of the Royal Schools of Music IPubllshln81 Limited. This company 8rartted an uJ)secured loan note to ABRSM as consideration for the transfer of the publishing business. ABRSM receives interest on this loan note at 2,/• ab)ve the bank base rate. Additionally. the subsidiary company pays Toyalties to ABRSM on copyri8hts owned by ABRSM. Finally, it donates its taxable profits to ABRSM under a deed of covenant. which amounted to £1.309.000 12020.. £1,801.0001. This is a long-temi investment held for the benefit of ABRSM and integrated within ABRSM'S operations utili£in8 the intellectual property contsined in ABRSM'S syllabus listin8s, which are periodically refrethed. ABRSM occasionaily receives sums of money to provide for PTizes for c4ndidate$ performing well in its examinations. In order to maintain the real va]ue of these it invests a significant proportion of the Priz• Endoynnent FundB in Charinco and Charishare Common Investment Funds. At 31 January 2021 these had cost of £655,000 and a market valuation of £1.336.00012020.' E655.CKN) and £1,433.000 respectively). Tetlecting the decrease in market values over the period. The volaiility of the stock matht in 2020 resulted in a decrease in the market value of 4.3/0 over prior year,12020 nei incre&8e of I3.￿￿}. Al] other su￿lUS liquid ftmds held by ABRSM are placed on deposit to 88feguard the fillO$ involved and to earn interest until such time as they are needed to meet the expendibjre involved in ABRSM'S s)perations. The interest earned on these deposits during the yearwa8 £27.00012020: £166,000}. Ptlnelpl Rlth and Uncertalndei The GoveTning Body is respons1￿le for the assessmertt ond cojttns of the risks faced by ABRSM. Consideration of risk8 IB delegated to the Audit and Risk Committee and Managed on a day-tC￿aY ba8is by senior staff. The Governors believe that awareness of tbe key iisks is the sIn￿e m05t impr)rtani element in ensuring that they are controlled. Ri8k8 are identified. ￿eSSed and contro15 maintained thToughout the year. with a fom)al review ofABRSM's ri8k management processes undertaken on an annual basis. In addition to the risk rnanagement and mitiB8tion actions identified in the tab]e below, ABRSM used the followlng Controls to manage risk. fornial agendas and mlnutes for aIt Governing Boty and cornmittee aetivity. dear terms of reference for all cornmittees- FiTwice Committee. Audit and Risk Committee. Remuneration Committee. Nominations Commfftee and the Music Education Advisory Committee. a ro]]ing programme of internal audit comprehensive strategie p]arll)J￿ [0￿c8s￿n& budget1￿ management accounting and variance an established ovemance and o orti Page 12

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (Co￿NUED) FOR THE YEAR ENDED 31 JANUARY 2021 FINANCIAL REVIEW (continued) fom)al vnitten policies. including staff po]icies readlly a¢cewble to all ststr. hierarchical authorisation and approval levels: and review of C￿hnOW forecasts In addition to the significant tA]sEne85 and fin￿131 risks vAJith. together with the mitigating actions are referred to in the Financial Revlew. key risks affeLtr8 the charity include.. Wtjat are tht key rlth tsclng ABRSkfl What is ABRSM doing to reduce the likellhood or minirnise thelm ct of thege risk# occutTin mal￿gement reyularjy Seeks acts on exten]aJ &d￿ce to ensure it remains up w date with the possible causes and besr mitigating aciions w address ttjis risk The mlti8atin8 aLYions include: Cyber attllcL major inodent (Y technology lallu￿ leadin8 to loss of data and business interNpdon Coniinuity and Disastw Recovery Pl￿ in place. Cybw Fthentlal¥ Plus AcerediWion tenewed annually. MaThJw Securlry Awarene48 trainLn8 for au 31aff Dual Auth￿O￿tIon torTenKJ aece88 AUtOm￿le paty seC￿ty patth marA8mnt Support in place vrtth PWC Changes io UK and relevant oVerne￿ le8th.on and resulatory condillons k8dln8 to cwtailmeni ol ac(iviues. reputational damage 4nd/oT finoncia] penaliiu. Annua] reviews of tax le&'sl&tson in rnaigr tenltorfe8 perfornied by expert ad￿￿5. Prompt aedon taken who) raL8ed by loc41 representatlve Compliance officer and wiiion in p]ace to erL8ure compliance OfquaL CCEA and Quats Wa]es reBu]atiorL8. Mandato GDPR tminin and ate in ace. Ex￿nIneT5 are Tecruited with written references and DBS rewrnion ¢hecks are perfonned. Appropriate training is carried out and a zero tolerance approach is in plac• apP￿g guidance Obthti￿d frorn the NSPCC. Examiners who we based atffoad or rewarty wo1 ouislde the UK must provide an additional kul checK rnfreshed on the some basls as Checks. Desigmted safeguarding roles are In place within the OT8a[￿tion and there 18 a safe8Uard1￿ review cornmlttee. l)ntine perfornjance grndes are designed around Exrn. stewa￿3 and HLRS work ciose]y with emdren supp]ier staff, examiner5 aNi ABRSM staff reviewing candidates and their environment ABRSM CofLwders safeguardin8 to be of the u¢mos¢ irnportance and m?iDtsu i58ues. clear gwde7lr￿ are Isgjed io the respO￿l￿e adult. For on]ine theory examinatiorts we use an estsblithed 3rd supp]ierfs remote Yeeorded proct9red solution. Stsff involved in reviewin8 pryfonnJn￿ ￿ade 8nd/oT WThiMleblowing wmeies are in place to eneour&ge reporting of any concerTLS relating to inwropti&e bEhaviour. Pagg 13

THE ASSOCtATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODYS REPORT (INCORPORATING THE STrATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 3 1 JANUARY 2021 THE ABRSM PENSION AND LIFE ASSURANCE SCHEME cfHE SCHEblE) ABRSM operates a defined benefft pension scheme which dosed to ftrture accrual on 31 Deeember 2018. The notional surplu5 or deficit on the fulld￿g of the Scherne. calculated annually under this standard, 18 shown in the fuwicia] statements as a designated fund entitled -Pension Reserve". This is deducted from Unrestricted Funds in the balance sheeL The approrimale actuaTiai valuation carried out at 31 Jarllwy 2021, as required by FRS 102. represents the market value of the assets of the Scheme as £49.2 n)illion and the value of the liabilities at that date as £75.7 miilion12020.. E43.1 million and £69.2 m￿lI0n). The consequent net deficit on the Scheme of £26.4 million 12020.. £26.1 million) is a statement of the transient situation at 31 January 2021. Both the Governors and the TnL8iees of the scheme reeo8nise that such valuations ean move si8nifjcaTthy In response to market factOF5 and the 8¢tUaTial assunwtion$ nsqde. The Covemors recogntse that the deficyt aTi8ing under FRS 102 does not have a significant immediaie cash- flow impact on the chajity. The posittve effect of the contribution8 made by the employer on the FRS 102 liabiiity has been offset by an increase In technical provisions as at 31 January 2021. The di5cIo8ure of pen8ion liability. newIy calculated year by year under FRS 102. does not mean that the equivalent a1￿Unt is a]ready ¢ornmitted and no longer ava]lable to the Governors to further the charitys objectives. The last tiienniai actuarial vatuation was prepared as at 31 Deeember 2018 and showed a deflcit of £25.6 mU]ioTh The Scheme closed to fvture acen￿l from 31 December 2018 and had already closed to new entrants. with certain lirrn'ted exceptions, on l Febnwy 2014. A new deficit reeovery plan w•$ a8reed by the TTUStee$ in 2019. Under the plan, the Employer agreed to pay deficit reduction contributions of £3.37m per annum. increasing in line with RPI (with the first increase applieable on l February 20201. for a period of 7 years and 3 Th)nths from l January 2019 to 30 April 2026. The Employer also agreed to pay all costs aS￿¢lated with nujning the Scheme and to take over Te8pon8ibility for Life Assurance arran8ement8 with effecl from l Febnwy 2019. Page 14

THE ASSOCIATED BOARD OP THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 RBSERVES Our reserves compii8e unrestrieted fimits, designated fuTrJs and endowment fund& The endowed funds rewlt from donation$ and legacies which can on]y be appb'ed for a purpose specified by the donor and are not available for general puryoses. These funth are ￿￿ed to aWthTd Pri￿5 to exaMi￿tiOn candidates in accordance with the crlteria specified by the donor. Endowed fimds total £1.5m at 31 January 2021 (note5 2t. S and 241. The unrestricted funds represent the accUm￿ated SU￿]USeS generated from general busine8s aetlvltles and are nd$ thut are available for use at the discretion of the Governors. They compEise the fixed a88ets fijnd. designated funds and general fimds. Fixed Assets Fund The fixed &8sets fvnd comprise$ the fLmds invested in fixed 488ets that the Governor8 con8ider e88entiai In enabling us to implement effectivdy OUT operational strategy. The fijnd represents the net book value of tsngible fixed assets. We held £2.Im iti the fixed assets fijnd at 31 January 202112020: £2.3m). DesS8nated Futtd8 Designated fimds are fund8 that the Governors have earmarked for specific purp08e$. Since 2014 and Prlor to this year a total of £14m of general fijnds had been designated to be held for specifie PU￿08e8, in partieu]ar the digita] transfornwtion progrrne. AS at 31 January 2021 £10.2m of the8e have been expended. A tota] of £3.8m Ternains at 31 January 2021 in respect of ongcth8 th8ltal transfmti¢)n and int¢n)ational development. General Funds In aeeordanee with Charity C¢)n]Mi￿1On guidance. the Governor8 set a target for the level of free re8eNe8. or general fjJnds. that we should maintain to en8ure our An8nclal 8ecuTity and fundll￿ of businegs plan. Free reseNes or general fund8 are defined as total unrestricted funds less fixed assets and de81gnated fund8. Sinee many of ABRSM'S C08t8 are dlrectty related to the number of exarnlnations held, it Ss ABRSM'8 aim to have Sufflclent liquSd re8ourees and ca8h balance8 80 that, in the event of a do￿ttUrn In the demand for its seThiceg. Its operatSng cost8, exciudinB Costs directly relating to adivity le.& examiner feey and venue hirel. would be met for a period of six months, plus any ouwanding li8bi]itie8. Dwing th1.8 period. other 4rtSons to mitigate Ioss would be implemenied. Th18 irylie8 the need for a leve] of free reserves of £9.6m12020.. £10.8ml. A8 the Charity is wholly reliant on global tradin8 conditlon8 to 8enerate income. the Governors considr that six months repre8en(8 a rea118tlc and prudent p￿itiO[L Genera] fiJnd8 Stand at £5.8m at 31 January 2021. This is a decre￿ of £7.9rn or 580h on the prior year12020'. £13.7m) and 18 £3.8m below the minimum leve] of generjl re8eTYes 3et out in the preceding paragraph. The global pandemic resulted ill the cancellation of planned exam Sessions in 2020 and 2021 both in the UK and internationally. Detwls of the impart are set out above in the paragraphs wider the Going Concern heading which out]ine the highly effective measures taken and furtber actions planned to increase resi]ience. reduce reliance on international travel and bui]d free ￿SeThes back to the level set out in the preceding parawdph. The pension liabllity reprewlts the present vajue of the pension ]iabllities less the fair value of the pension scheme assets. calculated in accoTdance with FRS102 (note 33) and does not imply a $i￿ll￿eant con#raint over the use of resetves for the foTe8eeble firture other than to ensure rnorthly contributions are met. which aTe budgeted for accordingty. Pag8 15

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 PLANS FOR FUTURE PERIODS General obJ¢¢tlw ABRSM will continue to conduct its operatiOll8 to the highest standarth. induding all forn￿ of online assessment, recognising that integrity and impartiality 4Te fundamental to ABRSM'S continuing success. All developments are evaluated for financial viability to enswe Sound ¢05t and budgetary controls and to enable ABRSM to ma>iwe its coninTr4Jtion to music education. ABRSM wll continue to ￿se its infiuence in promoting music education generally. in accordance with its clwitable mission and will continue to take steps to protect our environment by operaiin8 in ways that reduce ow carton footPTinL Short ¢•rm obJecthi•s." During the year ABRSM waj able to introduce online ex4m8 to offer learners a way to progre￿ against a background of Covid-19 restrictions. ABRSM will continue to develop online options to allow learner8 to take assessments at umes and in ways which are convenient for them. Practita] exams are bein8 offered in the UK and will be offered international]y once movement restriction8 allow. However, we will seek opportunitSes to reduce our ca￿on footprtht by ahernative 8olution& Lonz Trn Plan8 In¢￿de.. extending our networks and partneTships in rnvsic education" ral8in8 the prod]e ofABRSM and its contiibution to M￿1¢ educatio mointaining. refreshin8 and extendin8 OUT C¢)re eXamI￿tiOnS and related publicationg including continuing development of online &8sessments', achieving fijrther use of published rnateri•]s thTOU8h the development of electrorric delivery methods. a6 well as the loca] production and translation of selecied pulAications in 8ome mat*ets; extending the range ofteacher qudjfjcations and support.. developing our major overseas markets and exploiin8 Potential new markets: maintaining the high quality and standards of the examiner panel and increasing its diversity, developing the digital infra8tsucture ￿ improve the customer experience, deliver organisationaj efficlency and reduee ¢)ur carbon footprint.. increase our efforts to improve diveTsity and inch￿10n. both in ow 8yUabu8 content and within our ovm organ5sation: reviewing and developing human re80urces strategies In response to the chan&ng culture, 80ciai environment and the drive to reduce OUT carbon footprint: continuing to develop financial and operational systems and processes to eftsuTe the orsanlsation maximlses efflciency and deliver8 value for money in all areas of activity.. increasing clwitable donations to Music education charities; rebuildin8 distiibutable re5erve8 and resum1￿ distritHJtions to fow of the Royal SchoolB of MuBic. PUBLIC BBNEFIT The Governor8 have considered the guidance on Public Benefit pub]ished by the Charity Commission. The Governors believe that increasing the slalls, knowledge and understanditig of music provides benefit since the Subject itse]f is of educational merit. Additionajly, they also believe that the processes involved in reaching the particular level of competence tested in one of ABRSM'8 a8ses8ments de]iver edueauonal value of then￿elVes. The benefit8 of increased musicai SL￿ are directly related to the charl￿8 ailns and no detriment or harm is eon8idered IA(ely io arise from these activities. The Governors co[￿]der the beneficiaries to be a very wide range ofpeople, in80far as the a8sessments offered by ABRSM are taken up in over 90 different countries throughout the wodd with many thousand8 of candidates both in the UK and worldwide. With the launch of online assessments and digitsl downloads ABRSM'S serrices can continue to reach audiences around the worfd despite the restiictions on movement resu]ting from the global pandemic. There is no age limil ftir those entering exatn5 although the vast majoiity of the candidates are of 8eknl age. Comprehewive accesg arrangements aye in place to meet a wide r8Age of need& Page 16

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (CONnNUED) FOR THE YEAR ENDED 31 JANUARY 2021 PUBLIC BENEFIT (¢Ontlm￿dj A number of exam fees charged ititemationally are based on local econowllc Lx>TrJition8. ABRSM'S on]ine se￿]CeS. such as Play OTh Music Case. Aural Trainer Lite and Melody Writer. are available at no charge internationauy. ABRSM will Continue to support these innovth educationa] tools and develop additional onlint tools to support music educatiorL ABRSM also Provides public benefit by fimdlng scholar8hips and bursaries for students at four Royal Schoo]s of Music. Additionally. ABRSM provides 8pon80r8hip for other musical or8anisation8 in the UK and international]y subject ¢0 the avthbiiity of fi￿d8. ABRSM'S aassicai 100 resource for sehools and the Journeys subsoiption app were made freety available to am through Play On duting the loekdow ABRSM supports four Royaj Schools of Mu8lc, which are cljarities In their own right. It doe8 this through the provision of Scholarship8 and, ￿ere possible. through distnbutiOn8 in the forni of donations. The public benefit delivered by these institutions Is set out on pages 7 and 8. The Goyerning Botys Report (incorporating the Strateglc Report) demon8trate8 the way in which ABRSM'S 8trategles support its objective8 and provide public benefit. BNVIRONMENTAL IMPAcr ABRSM 1$ committed to protecttng our environmeni by increasingly operating in ways that Teduce ¢)ur cathn footprint. harnessln8 tedJno]08ical developments to reach learne[5 ar(A￿d the worl Thi¥ year. for the tht time. In compllanee with the Streamlined Energy and Carbon Reporn'ng (SECRI requirements ABRSM Is reportin8 on energy use. ABRSM'S tota] UK energy u8e and greenhouse 888 emission8 due to UK enew use is shown below. Ye4r ended 31 January 2021 515,107 111,814 0.51 UK energy use Ikvlhl Associated greenhouse 8as emts8ions (k8 C02 equivalentl Intenslty ratlo.. Erni￿1￿ (kg C02 equiyajentl per examination The energy and emissions reported above arise from our office at 4 London Wall P]ace and ear ￿e]. Inforn]Ation regarding our offlce 18 derived frorn infornwion provided by our energy supp]ier who provided electricity and heating/coo]ing from a loca] combined heat and power facility. The amount of car fuel used 18 based t)n d#knL8 from staff and examinern Due to Covid-19 staff norn]alty ba8ed at 4 London Wa]1 Place worked from ￿me for a Significant part of the year. As a result, energy use at 4 ithdon Wall Place was reduce The fit out of 4 London Wall Place achieved the Bronze standard SKA rating; j￿htIng is controlled by iDfr8red sensors and the heating and coo]in8 $￿ern 1$ timetabled. Stsff are engaged through the departmental repTe8entation on the Green Tea￿ which nxinitot5 and report5 on perfornunce. thives change progrummes The de]ivery of PraLtical and Theory exa￿￿ in the UK and arowxl the worfd contnkn most 8iwdeandy to the gro￿.$ environmenta] impact. Examiner intemational tours foT practical exams are organi8ed effiaently to reduce air travel to the minimum possible and ernissions are n¥)nitore(L Due to Covid-19 many tows were cancelled and so examiner5 travelled far le&8 thAn in previous years. In ordeT to continue to pr¢)vide services to leamet5. Perfonrsance Grade online exam1r￿tiOnS were introduced a]ong with Online Theory examinations. As examiners do not need to travel for these exami￿tiOns. our energy use and associated emissions have 8ignificamtly reduced Going fon¥ard we expert to be able to offer both Practical and PerfonDance Grdde exam1r￿tiOnS to our learners and we are developing new delivery methods to reduce Page 17

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (cowriNUED) FOR THE YEAR ENDBD 31 JANUARY 2021 ENVIRONMENTAL IMPAcf (continued) The introduction of automated boolun& processlng and Tnarknng of examtnations dwing the year end supplanted previous paper-ba$ed processes and sigtllficant]y reduced paper Co￿l￿tion. Our published ￿0kS and resources are made fn)m su8tairoble source However. in common with other businesses who have moved their operations ¢)n]ine, we are aware that the Increased use of technology brings with it incTe&8ed energy use by ow staff. examiners, teachers and learners in the operatlon of their electronic devices. DIVERsrrY AND INCLUSION ABRSM'S commitment to diversity and ioclLLsion has prOgr&￿d into Significant 8rtion this year. It now fom a distinct strand in our Organisation￿ strategy. As part of thi5, a Diversity Plan was launched pub]icly in October 2020 and the group has committed io reg￿r updates on PTO8re8& Flve key areas of ABRSM'$ operations and organisation have been identified a8 key to promotmg greater diver81ty and InclusioJL A¢tlv• ¢ommtsslonlnz As a re8uII of artive work in this area. a siwfieant proportion of new pieces in the new woodwind syllabus have been commissioned from black. brown. indi8enou8 and people of colour I'BBIPOC") composers including women. ABRSM 1$ rai8ing awareness of the new llb)re diverse repertoire with existing partners in order to encourage them lo integrate new commissioning programmes into thwr work. ABRSM staged a successful riting for Music Education. workshop for 100 potential composers as part of our commitsxent towards open- 80Lwce guides and ¢)penin8 up comp08iuon for music educatio Translorniln8 8yll#bw In addition to increaBing the proportion of syllabus pieces by BBIPOC composers. in the new woodwind labus, the Byllabus advi80ry team now holds re￿lar meetings with external partners. to receive advice. share plans and offer support in this spedal1￿ area. Additionally. the group is working closely with five BBIPOC composers to contnTrJute additiona] composition8 for digitsl pub]ication only. primarily to support the treation of a diverse portfolio of additional repertoire for'fourth piece, selection of the new Perfornwice Grade. Mentonhlp and developmntpro2ramm¢fvr ¢omw In hddition ¢0 the successfiji Writing for Music Education worksknp. a composer mentoring 8cheme will Start In 8pring 2021 in order that eatly carter COMF￿[9 are identified to realise Ixw ambltion of wpporting IOO new comp08eT5 by 2030. Dew•loplngpartnershI￿ and advo¢4¢ ABRSM will be harnessing the poweT of 8pon80r8hip relatioDship5 wlth euTrent partners and a range of new, grass roots initiatives to set specific diveT8ity and inelusion targets coveiin8 number5 of participants, range of voices and good practice dissemination. As part of this, ABRSM sponsored an artide about diversity in M￿1¢ education in the January 2021 i&8ue of Music Teacher magaine. Tr4nJformlnz the orzontsatlon The Import￿Ce of diveysity and indusion at 8enior leadership and Board levels of ABRSM IB recognised and we will be earry5ng out a review of governance with a goal of iticreasing divernity at this level. Etsewhere in the organisation, a survey has been launched to understand the diversity witbin ABRSM'S examiner team as part of our commitsnent, supported by mu8iciaJ)s Union, to explore greater diYeTSity. We have also delivered Unconscio￿ bias training for all employees and are working with i)ur newly estab]i8hed cross organisational Diversty & Indusion Resouree Gro￿ to put in place strategies to diversify our staff gro￿ tl]rtheT. All this work has inspired a genutne culture change within the organi8ation within short space of time. with new sense of collaboration and ownership of wot to make ABRSM more diverse and inclusive across aThd beyond the organisation. Page 18

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSZC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) {copirINUED) FOR THE YEAR ENDED 31 JANUARY 2021 SEcfioN 172(I> STATEMErrr This sectio￿ together with t1￿ pages inco4￿rated by reference, acts as the ABFSM'S Section 17211) statement The Governon have a respons]bllity to aLt to proThMXe the S1￿Cess ofthe STO￿ With regard to the following matters (amongst others).. The lTrJ ely consequences of any decision in the long terni- Page 4 detalls how plans are prepared and updated. . The impact ofthe companYs operntions on the community and the environment are set out on Pages 16 and 17 The desirability of the company maintatning a reputation for high standard8 of business conduct: ABRSM is regulated by Olqua], the Charity Commission and OSCR and face8 competition in the markets in which il operates and therefore must ensure that it maintains the highest standard8 consistent with its reputation and history. The need to act fairly as betrween membeT8 of the cornpany. Representsiives ofeach of the four membeT8 811 a8 Governors on the Governing Body. thus each member has the opportunity to be ffiJl]y enga8ed in the deciJion3 of the Governing Body. The Govemor8 recogni8e that in addition to ABRSM'B membeTS, they have a re8pon8ibility to engage with other stakeholders. The Governors eonsideT other main stakeknlders to be c8J)didates and their parents, nyJsSc teacherB, examineTS, repreBentatives. volunteers and employees. The Governors engage with the8e 8takeholderJ via the genior leader8hlp In a vwlety of ways 48 follov Candidates and their parents- Ow website is regularly updated to provide infOrn￿On on upcoming exam sesslon and new products and 8•r4ice8. Our socia] Media channels are constantly reviewed and we regularly seek ftedback thrnjth 8uiveys. Music teachers- In addition to our communication channels for eandidate8 and their p8rents, ABRSM provides separate Tesources on its website to wpport teacher8. Speciali8t courses and event8 are regu]arly held for teacher& . Examiners- Examiners are required to maintain their continuow pKofe8slona] deve]opment through tai]OTed online traming PTovided by ABRSM. Examiner online conference$ are aJ¥o held annually. allowin8 exami￿ to en8a8e with their peer8 and ABRSM. . Representatfves and vohllrteer8- colltsLt IB maintained throuth newsletteTS. trwning events and. webitW8. Employee8- The 8taff fonun meets each week to discLLSS matters direcuy affecting staff. This 8roup meets with the Chief Executive and HR dirertor on a quarterfy basis to provide feedback. A meetin8 i8 held for a]1 staff each month to allow the senior leadeT8hip others to provide an update on ongoing projects a)yJ CUTrert i¥3ues that affect them and ABPSM as a busine88. Page 19

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC GOVERNING BODY'S REPORT (INCORPORATING THE STRATEGIC REPORT) (COWnNUED) FOR THE YEAR ENDED 3 1 JANUARY 2021 The Governing Bodys Report (incorporating the Strategic Rel￿) has been approved by the Governors on 24 June 2021 and signed on their t￿a][b￿. Tony Hales CBB Chainnan ofthe Governors Page 20

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC STATEMEwf OF THE GOVERNING BODYIS RESPONSIBILITIES Governlng Bod￿1 Responxlbllities Ststement The Governors (who are a180 directors of The As80ciated BoATd of the Royal Schools of Musie for the purp08e8 of company lawl are responsible for Prew7￿ the Governin8 Body's Report {incorporating the StrateESe Report} and the financial statemerts in accordance with applicable law and regulations. Company law requiw the Governorn to prewe financial statements for eath financi￿ yeaT. Under that law the Governor8 have elected to prepare the financial statements in accordance with Untted Kingdom Generally Accepted Accounting Practtce ￿nited Kingdom Accounting Stsndard8 and app]ieable lawl, including FRS 102 The Fitwicial Reporting Standard applicatAe in the UK and Republic of Ireland. Under company law the Governors must noi approve the fu)ancial staterner￿ unles8 they are satisfied that they give a true and fair view of the state ol affaiT8 of the clJaTitabJe coThwny and the group and of the incoming resources and app]ication of resources, including the income and expendI￿re. of the clwitable group for that peTlod. In prepating these financta] Btatements. the Governors are required to.. Select 8Uitable accounting policies and then apply them con8i8tently. observe the methods and principles in the Charities SORP (FILS 1021,. make iud8ments and accounting estimates that aTe reasonable and prudenL state whether applicable UK Accounting Standards have been followed. 8ubJe¢t to any material departures disclosed and exp]&ined in the fmaticid statements. prepare the financial statements on the going concern basis unless it is Inappropriate to presume that the The Governors are responsible for keeping adequate ae¢ountin8 records that are sufficient to 8how ond explain the eharitab]e eonyany's and group's transactions and disdose with reasonable accuracy at any thne the flnarLcial position of the ch￿itable company and the group and enab]e them to ensure that the y￿ancial otstements compty with the Companies Act 2006. the Chwities and TTUStee Investment Iscodand) Act 2005. the Chatities Accounis Iscouandl Regulations 2006 la8 amended) and the provisions of the tN8t deed. The Governon aTe al￿ re8ponsible for safe8uardin8 the assets of the Ch￿l¢able company and the group and henee for takin8 Tea8c*)able steps for the PTevention and detection of fraud and other irre8ulaTitie8. The Governors CODfirm that 30 far as eath Governor is aware. there ts no relevant audit infom)ation of whleh the charita￿e eompanY8 auditor 1$ unaware: and the Governors have taken all the steps that they ought to have tsken 88 Governors in order to make thernselves aware of any relevarrt audit information and to est8bli¥h that the chalitable company's auditor is aware of that infonNtio The Governon are Tesponstble for ¢he malrtenance and inte8rity of the corporate and financia] inforniation induded on the charitable comparf5 website. Legjslation in the Uniled Kingdom governing the preparatio and dissemination of financia] statements may differ from legislation in other jurisdictions. Page 21

IFIDEPENDErrr AUDITOR'S REPORT TO THE MEMBERS AND GOVERNORS OF THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC REGISTERED CHAIUTY NUMBBL. 292182 CHARrrY REGISTERED IN SCOTIAND NUMBBK. SC043343 COMPANY NUMBEIL. 01926395 Oplnlon We have audited the financi￿ statements of the A8sociated Board of the RO￿ Schoo16 of Music ('the Ch￿itable eompany) and its Subsidiary (the group'l for the year ended 31 January 2021 which Comprise the Cons0]Jdated SiatemeTLt of Financial Activitie8. the Group and Clwity Bajance Sheets. the Conso]idated Statement of Cash Flows and notes to the financial statements. including si￿￿ficant accounting po]icies. The financial reporting ftamewoTk thai has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financia] Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Repubh'c of Ireland Iunited Kingdom Generally Accepted Aceounting Praetieel. In ¢xty opinion the fmancial statements: give a true and fatr view of the state of the group's and the charitable company's affair$ 48 at 31 January 2021 and ofthe 8roup's and the charitable compan￿$ income and expenditure. for the year then ended,. have been propeTiy prepared in accordance with United KiD8dom GeneTa]ly Acc￿ted Aeeoundn8 Practice,. and have been Prepared in aeeordance with the reffjnrernents ofthe Companie3 Act 2006 and the Charltles and Trustee Investment IScot]andl Act 2C￿lS and Regulations 6 and 8 of the Charitie8 Accounts Iscotlandl Regulations 2Crf)6 lamended). Bail• for oplnlon We condurted our audit in accordance ￿th Internatio[￿1 Stand•Td8 on Auditing {UKI {ISA8 IUKII and applicable law. Our reSpO￿lb1]i￿.es under those standards are ffijrther described in the Auditor's responsibilities for the audit of the financi818tatement8 section of our report. We are independent of the charitable company and the group irL accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethtcal Standard. and we have fijlfilled our other ethica] responslbllltles in accordance with these requirements. We believe that the audit evidence we have obtained is 8ufficient and appropriate ¢0 provide a b￿lS for our opinion. condu810￿ r•la¢lng to zolng ¢on¢•rn In auditing the fmancia] statements, we have conduded that the tn￿tee8. use of the 8oln8 eoneern basis of accountin8 in the preparation of the financial statements 18 appropriate. Based on the work we have performed, we have not identified any material uneertainties relating to event$ or conditiorL8 that, individually or collectively. rnay ca8t significant doubt on the Ch￿Ilable cornpanys or the gTOUP'3 abillty to continue as a going conceTn for a period ol at lea# twefve months from when the fitwiclal statements are auth0ri8ed for1$8ue. Our respon8ibi]ities and the responsibilits"e8 of the tru8tee8 with respect to going concern are descnbed in the relevant seLlions of this report. Olh¢r i￿ormatIon The tn￿teeS are respon3ilAe for the other information Contai￿ within the annua] report. The otheT inforn)ation comprises the infoTmation included the al)nU￿ report, other than the financia] 5tatemen15 and our auditor's report thereon. Our opinion on the financial statements does not cover the other inforniation and. exeepi to the extent otherwise explicitly stated in our Teport we do not eXp￿sS any form of assurnnce conclu8ion ther¢0 Our respon8ibi]ity i8 to read the other infotmation and. in doing so. co))sider whether the other infornwtion is materially itLconsistent with the financial statements or our knowledge obtsined in the audit or otheThise appears to be materially misstated If we identify such material iuconsi5lencies or apparent ma¢eriai misstatements. we are required to deterniiDe whether this ￿VeS rise to a materia] Jnis5tstement in the financigj statements the￿￿elveS. If. based on the wot* we have perforn)ed. we L￿nClude that there is a rnaterial mis8tAtement of this other inforTnatioTh we aTe required to report that fact We have nothing to report in this regaT Page 22

tNDEPENDErrr AUDITOR'S REPORT TO THE h1EMBERS AND GOVERNORS OF THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC (CONTINUED) REGISTERED CHAIUTY NUMBEIL. 292182 CHARrrY RBGisfBRED IN SCOTLAND fiuMBEK. SC043343 COMPANY NUMB￿. 01926395 Oplnl¢)n ¢>n olhv uwtt¢TS pres¢Tlb•d by th• Companlej Act 2006 In our opinion based on the undertaken in the course of¢)ur audit the infOrn￿tiOn ￿'Ven in the tnTStee8' reporL which indudes the directors, report and the thtegic report prepared for the purposes of eompany law. for the financial year for which the financial statements are prepared 18 consistent with the financial staterneDts: and the 8trategle report and the directors, Teport included within the tnjstees. report have been prep&ed in accordance applicable lega] requiremenr& In light of the knovAedge and underntanding of the gTtw and chwitable company and their envimnment obtained in the cowse of the audit, we have not identified material mi8Statements in the strategic report or the directors, report included within the trustees, report. We have nothing to report in Tespect of the following matters In relation to whith the Companle5 Ad 2006 and the Charities Accounts {S¢otlandl Regulation8 2￿6 requires us to report to you if. in our opinio adequate and proper accounting recoTd8 have n¢X been kept or returns adequate for our audit have not been received from branches not visited by us: or the financial Statements are not in a8Teement with the accounting records and returns., or certain disc108wes of trustees, remuneration 4)ecified by law aTe not made.. or we have not received all the Inforn￿￿on and explanations we require for our audiL Re￿NIbl￿tI•l 011n￿te As explained n￿re fully in the trustee8' Te8pon8ibi]ities 8tatement Jet out on page 21, the tn￿ee8 (who are 8150 the director8 ofthe d￿ritable company for the purposes of company lawl are respon8ible for the preparadon of the financial 8tatement$ and for being Satisfied that they give & true and fair view, and for such Internal control as the trustees detennlne 18 necessary to enabie the preparation of financial statement$ that are free from Mat￿la] misBtsternent. whether due to fraud or error. In preparing the fin&ncial Statements, the tn￿teeS are respoMble for assessing the charitable company's ability to continue as a going concern, di8d0s1￿ as app]ieab]e. matters related to goin8 concern and u81ng the gotng eoneern basis of aecounting unless the tn￿tee8 either intend to hquidate the eharitable company or to cease operations, or have no realistic alternative but to do 80. Page 23

INDEPENDE￿r AUDITOR'S REPORT TO THE MEMBERS AND GOVERNORS OF THE ASSOCIATED BOARD OF THB ROYAL SCHOOLS OF MUSIC (CONTINUED) REGISTERED CHARrrY NUMBBIL. 292182 CHARrrY REGISTERED IN SCOTIAND NUMBEIL. SC043343 COYaPANY NUMBEIL. 01926395 Audtt0￿• rn8pon8lblltti•• for the audit of tho financial stat•m￿ts We have been appoi￿ed as auditor under 8ec¢ion 44(1}Icl of the ch￿illeS and Tn&ee Investtnent IS¢otlandl Aet 2005 and under the Comwlles Act 2006 and report in accordance with the Acts and relevant regulations rnade OT having effect thereunder. Our obleLtlve5 are to obtain reasonable assurance at#xrt whether the financial statements a8 a ￿0]e are free from rnaterial misstatement. whether due to fraud or eTfoT. and to issue an auditor's report that includes our opinton. Reasonable assura1￿ is a high level of assurance. but is not a Ruarantee that an audit eondueted in accordance with ISA8 IUKI wlll always detect a material misstatement when St exists. Misstatements can ￿lse from fraud or error and are considered material if. individuauy or in the aggregate, they eould reawnably be expected to induence the economic decisions of u8¢rs taken on the basis of these financial statements. Details of the extent io which the audit was considered capable of detecthg inegulwities. including fraud and non-compliance with ]aws and regu]ation8 are 8et out below. A further descriptlon of LXU respon8ibllitie$ for the audit of the financial statement$ is located on the Financial Reporting Council's website at.. www.frc.0r8.uk/audi￿T$reSp0n$lbIIlty.e$. This desciiption fonyjs part of our auditof8 reporL Bxtent to whl¢h th• •udtt coMld•r•d e4>Abl• of d•l￿tIn& Irre￿la￿de1, Includln8 fraud Irregu]aritie8, indudin8 fraud. aTe instance8 of non-cornpJi8nce with law8 and re8uiauon8. We Identified and assessed the risks of material misstatement of the financia] 8tatements from irregularities. whether due to fraud or error. and discussed these between our audit team Th￿rnbe[S. We then designed and performed audit procedures responsive to th08e risks. induding olxainin8 audit evidence sufficient and appTopriate to provide a basis for our opinion. We obtained an undeY8t8nding of the legal and regulatory framewo￿ wlthin which the charltable company and group operate8. focusing on those laws and regulations that have a direct effect on the determination of materia] all￿Unt$ and disclosures in the financial statements. The laws and regulation8 we considered in thi8 eontexi were the Companies Act 2006. the Charities Acl 2011 And The Charities and TrI￿tte Investment (Scotiandl Act 2005 together wlth the ChaTities SORP IFRS 1021. We a$8e85ed the required compliance with these laws and regulations as part of ow audlt procedures on the re]ated financial statement items. In addition, we considered Provisions of otheT lawy and regulations that do not have a direct effeet on the nancial statements but compliance vrith which might be fundamenta] to the charitable company s and the 8roup'5 ability to operate or to avoid a material penalry. We also considered the opportunities and incentives that may exist withm the charitable company and the group for fraud. The laws and regulation5 we considered in this corktext for the UK operations were Genera] Data Protection Regulation {GDPR}. OFQUAL compliance and Health and safety le¥￿sLatIon. We also considered comphance with local legislation for the group's overseas operating segments. Auditing standards limit the required auitit procedures to identify n(m-cornpliance with these luws and regulatio￿$ to enquiry of the TTr￿ees and other management and inspection of regulatory and legal corresponden¢e, if any. We identified the greatest risk of mateTia] impact on the financial statements from I￿egularitieS, including fraud, to be within the timing of ￿cognition of exam fee income, the estimation of tax provisions and the override of controls by management Our audit procedures to respond to these risks induded enquiries of rnanagement, internal audit, le8a] cou¥)sel and the Audit & Bisk Committee about their own identification and a8sessrnent of the iisks of irre￿1￿¢$, sample testing on the posting of j¢)urnal$. Teviewing accounting estimates for biases, reviewing regu]atory correspondence with the Ch￿lty ConunI￿On and Teading minutes of meetsngs of those charged with governance. Page 24

INDEPENDEKf AUDITOR'S REPORT TO THE MEMBERS AND GOVERNORS OF THE ASSOc￿TED BOARD OF THE ROYAL SCHOOLS OF MUSIC (CONTINUED) REGISTERED CHARITY NUMBEK. 292182 CHARITY REGISTERED IN SCOTLAND NUMBEL. SC0433 COMPANY NUMBBIL. 01926395 Owing to the inherent limitations ofan audit. there is an unavoidaile risk that we may t￿t have detected some rnaterial mi8StateTnents in the financial statements, even though we have properfy planned al￿ perfOrn￿d our audit in attordanee with auditing standards. For example. the further removed non-comp]iance with laws and regulations IlTTegU]￿ltieSl is frorn the events and trawctions reflected in the financial statements. the le88 likely the inherently limited procedures required by audnng stsndants would identify it. In addition. as with any audiL there remained a higher risk of non4lelection of i￿egUlaTities, as these may involve collusiot forgery, intentional omissions, misrepresentations, or the override of internal control8. We are not respons)ble for preventing non-compliance and cannc be expected to detect Th)n-compknce vrith all la￿ and res￿￿10n8. Uie of our report Thi8 report 18 made solety to the charitsble compa￿8 membeT8, a8 4 body. In aecordance with Chpter 3 of Part 16 ofthe Companie8 Act 2CiJ6, and to the charitable compans tn￿tee8. as a bcdy. in accordance with Regulation 10 of the Charities Accounts {Scodand) Regul&tiorLs 2006. Our audit work ha8 been undertaken so that we might State to the charitable company's members th08e matters we are required to state to them in an auditor's report and for no other puw. To the hjilest extent pem)itied by law, we do not accept or a8SLune responslbility to anyone other than the charitable company and the chaTitable companYs members as a body and the chan'tsble companys trustees a8 a body. for our audtt work. for this report. or for the opinions we have fonned. N8zlar Ha8hemi Senior Ststutory Auditor For and on behojf of Crowe U.K. LLP Statutory Auditor London 24 lune 2021 Pag8 25

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC CONSOLIDATED STATEMEpTf OF FINANCIAL AC￿lTIEs (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JANUARY 2021 u1m￿leted Pett￿0￿ EndoThent Total Total Funds 2020 £'ooo {ttot• 33) 2021 £'ooo £'ooo Notes INCOME & ENDOWMEfm FROM: Cfftwitable actlvld•i Ex8minations Teacher Support Other a¢tlvith•: Publishing sa]es lrtv¢•tm•Ats Oth•r 15J49 42 15.349 42 48.163 117 7￿12 27 328 7.61X B.240 210 279 39 328 Total Inrorn• 23.358 39 23,J97 57.009 BXPENDITURE ON: Examinaiions Teacher Support Seholw3hips Music education OtheT tr•dlni •¢dvld••: Puk4i8hing 28,959 240 1.048 244 13.4341 (91 23,53J 231 1.048 244 4J,135 431 .053 382 8.10 8,11,12 5,857 5.857 6.010 34.348 13.4431 30.gij 49.01 I P•n8lon fffjaDee cbaY8• 439 439 581 Tot￿ expendlture 34.348 13.0041 31.352 49.592 Net l]ossl/ on Jnvesonent 17 1971 1971 151 N•t Income/(expendltwl {10,9901 3.004 1661 {6,0521 7.568 Oth•r r•co￿ts•d g•lD•/llosirf): Actuarlal loss on pension scheme IL088118?in on forward contract revaluation 33 13.3041 {3,304} (1151 16,4441 311 1115) N•t mov•m•nt ID fan 111.105) 13(H)I 1661 {11.471) 1.435 REcoficILIATION OF PUNDS: Balance brought fDrward Net movement ID fvnds Contributions to Royal SCh￿ls of Muslc 22.843 111.105) 126,1191 13001 ,559 (1,717) 1661 {11,471) 2.448 1.435 15,6001 Fwid b￿anCeS wyled forn•rd. kneludlaz 11.738 126.419) ,493 (13.188) 11.7171 For Companies Ad pu)Trow. cOn￿lIdated gross inthime foT the fimnaal year w&$ £23,358.CrfJO12020'. E56.958.0(K)I. eoThsolidated gross expenditUTe was £31.344.(W12020.' £49,578.0￿) and nei loss was £7.986.00012020.. net PTofit of £7.380,0001. l ineorne is derived from continwng operntiOTLS The notes on pages 29 to 60 forni pan of these ac￿Unts Pag8 26

THE ASSOc￿TED BOARD OF THE ROYAL SCHOOLS OF MUSIC BALANCE SHEETS AS AT 31 JANUARY 2021 2021 2020 2021 2020 £'ooo Notes FIXBD AssErs T￿n￿b]e a&set¥ 16 17 2.155 1,336 2.290 1,433 2.155 2,118 2,290 2.215 3.491 3.723 4,273 4.505 CURRENT ASSFrs Stock8 Debtors Investments Cash 84t bank and in hand 18 19 20 873 4,262 1.631 12,278 13.151 8.815 7.486 7.440 1.631 8.743 15.225 7,615 6,224 19.044 30.301 17.814 29.064 21 (7.995) (8.370) (7,558) 17,9261 falling due within one year NET CURRBKf ASSETS 11.049 21.931 10,256 21.138 TOTAL ASSETS LBSS CURRBfn LIABILITIES 14.540 25.654 14,529 25,643 CREDrroRS: amount8 falling due after more than one year PROVISIONS 22 23 (612) (697) {4981 {7541 (612) {697) {4981 {7541 Nrf ASSETS EXCLUDING PBNSION LIABiufiES 13331 24,402 13.220 24.391 PENSION FUND DEFICIT 33 128.419) {26,1191 (26,419) 126.1191 (13.188) 11.717) 113,199) 11,7281 THB FUNDS OF THE GROUP/CHARITY: Endowment hjnds Restricted incorne IlJndB Unrestiicted fun Pension re8erve 24 25 26 33 1,493 1.559 1,493 1,559 11.738 {26.419) 22.843 (26.119) 11,727 (26,419) 22,832 126,119) TOTAL FUNDS 27 (iJ.188) {1.717) {13,199) {1.728) The net expenditure of the d￿lty for the year was £8.052,(W12020'. net income ofE7.569.0001 Approved by the Governing Bcrfty on 24 June 2021. Tony Hales CBE Registered a)arity Number 292182 Clwity Re￿￿ered in Scodand Nurnber SC043343 Company NumiEr 01926395 The notes on pages 29 to part of these accounts Page 27

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2021 2021 2020 £'ooo Notes (2.399) 1.195 C￿h flow8 from thvethg artivltlei Interest income Purchases of fixed assets Sale/purehase of current as3et investments (with maturiry greater than 3 mon￿) 66 (224) 210 11061 16 2.734 6,309 N•t eath u•¢d In Inv•stln8 ac¢iTitiv4 2,576 6,413 Contributions to the Royal Schoo18 of Mu8iC New finance lease obligations Repayment of finance lease obligation8 15.6001 {59) N¢1 ¢uh uMd In finattdn8 aetlYltl•s 165 15.6001 Nei Iner•aM In ¢uh and cash ¢q￿ts 342 2,008 C￿￿ and ea#h •qulval•nts at l Feblvary 2020 Cuh and ¢ath •quival•nts at 31 J•ttuAry 2021 13,567 13,909 11.559 13.567 29 Analyth of eash and ea•h eqthaleAt•: Cash in bank and In hand Deposits and notice accounts (le88 than 3 months} Total and cash equlvalents 12,278 7.486 6,081 29 13.909 13,567 The notes on pages 29 to 60 forni part ofthese acc¢xll]ts Page 28

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 JANUARY 2021 COMPANY INFORMATION ABRSM is a charitable company iDcorpordted in ￿n￿and and Wales. Its registered office 18 4 London Wall Hace. London. EC2Y SAU. ACCOUKrniG POLICIBS The piincip81 accounting policie8 adopted. judgements and key Sources of esdmation in the preparation of the financia] statement8 are as foll￿. The ftnanaal staternents have been prepared in accordance with the current Statement of Recommended Practice -Accounting and Reporting by Chariues- (the Charities SORP IFRS1021 issued in Odober 2019. the ￿nancial RepoTtin8 Standard in the UK and Repub]ic of Ireland IFRS1021 and the Coryanies Act 21x16. The presentational and functional currency 18 Sterling 1£). ABRSM meets the defujition of a public benefft entity under FRS102. The financia] Statements have been prepaTed under the historical cost convention. with the exception of investments. whieh are included at market value. Preparation of th¢ financial 8tatements require8 mgnagernent to make sl8nificant judgements and estimates. The item8 in the finan￿ Statements where these iudgtr*nts and estimates have been made are listed below. Slgnlflcant Judg•nwits or uthn&t Polky r¢fer•nc• Not• r•f•rnie• The foilowing are considered to be siwfieant e8tim&tes in the preparation ofthe financial ststements.. Depreciation Di]apidation¥ Tax Provision Sehol8r8hlp$ eommltments Defined Benefft Pen8ion Scheme 16 22 23 30 33 Explanats'on of the e8tinMte8 re]atin8 to the alx>ve items are explained in the relevant pdicy. Pag& 29

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOIJDATED Accouwrs (cowrINUED) FOR THE YEAR ENDED 31 JANUARY 2021 AccouiYfiNG POLICIBS (corrriNUED) b) Golng Concthi The Covid-19 pandemic developed rapidty during 2020. Global travel restrictions prevented examiner6 frnm travellin8 to the vast majority of international teTTitories. including ABRSM'S major ma￿ets. The initia] lockdowns and travel restrictions in the UK also resulted in examiners being unable to travel and schools and publi¢ exftm centres having to dose. As a resulL practica] exams and theory exams were cancelled in large nurnbers and customers were refunded in Ojll. Schools are now open in the UK but remnins unclear when and to what extent travel restrictions wlll be lifted ar(wid the world In response to these matteT8, the GTOUP has tsken the fo]lohryng Jalo￿8. Development of online assessments was accelerated. and ha￿ng obtsined Ofquai approva] to offer an adapted forn) of Graded Music Exams at grade 6 and a￿￿e. the first few oniine exarns took place in June A new. complete 8Uite of {￿line PerfOrn￿ Grades obtained Ofqual approval and 18 now beSng offered to canth'date8 wor]dwide Online theory exams for grades I to 5 took place in November in the UK and Ce￿1￿ oveT8eas terTitorie8 and has now been rolled out Internationally All teacher eonferenees. examineT trainin8 and th events for representatives worldwide and volunteer3 in the UK have moved online The Publis￿.ng 8ub8idiary launched digita] download8 of 8heet music ABRSM participated in the Government'8 Job Retention Scheme enablin8 UP to of 8tsff to be furfoughed Staff numbers overall were Tedueed by Il% and payhas been frozen ABRSM'8 offices c108ed in mid-march 2020 thTOU8h io June 2021 and staff and the wider wothrce of examiners, contributors. representative8 volunteer8 swiiched to working effectively oniine In addition to the measures outlined aLw)ve, other operational savings were identified and have been Implemented. Although it appears ]ike]y that international movement restrictions rrwy per8i8t throughout 2021. there i8 strong demand for the new online assessments.. Perfomwiee Grades and Online Theory. Practical examinationg will be offered in the UK Sn June and July 2021 and again m the autumn together with practical examination visits which have been taking place throu8hout the year in the UK. Turnover for the Publi$hing company ha8 exceeded expectations for the fitst quarter of the year with demand stimu]ated by new products. Further actions are planned to increase resilience and reduce re]iance on intemational travel by recruitin8 and training faalitatorn and examiners based in the ¢¢yiiitry where the examinations take plate. The chaTity 13 no ]on8er reliant on the delivery of face to faee exaMi￿tiOns. having successfijlly developed and rolled out online altematTYes of equa] rigouT and va]ue whith have been welcomed by its candidates. It is now much better placed to withstand on8oin8 travel restrictions and lockdowtL8 as il is able to offer online assessments worldwide. Once travel restrictions are eased, the charity will return to offering face to fact eXami￿￿On$ woAdwide together with online assessrnerrts. thereby offering more choice to ¢andidale8 and appeajing to a wider base of leamers. Consequent]y. the liquidity of the charity has substsntially improved with cash at 31 January 2021 being £4m h￿her than forecast in November 2020 and forecast to increase over the course of the next year. enabling the tharity to continue investing in its di8ital it)fra￿e and international deYeloprnenL The introduction of customer self-seThice meark8 that examination fees are Teceived sooner from internationa] teTritorie5, reduclng the amount of cash tied up in debtOTS. theTeby impTovin8 the Group's ca5hfiow arLd reducing its exposure to dOUbtfi￿ debt3. The t￿￿teeS therefore have a reagonabje expertation that the ¢Trthtity has adequate resources to continue in operational existence for the foreseeable fiJtuJe being at least twelve months from the date of approval of the$e financial statements. and are not aware of any other matwial uncertaints'es ￿¥hiCh may adversety affect the organisatiO￿ Accordingly. the financial statements continue to be prewed on the concern bas18. Page 30

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AccouKfs {CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 AccouimiiG POLICIES (coKfiNUED) Group fman¢lal •tatenwnts The con801idated account8 in¢0￿)rate the accounts of the charitable company and its subsid (together. "the gm￿.) made up to 31 January each year. The results of the trading subsidiary company are presented in the consolidated SOFA by disdosing t income and expenditure derived from its tradm8 activities canied out separate]y from those of the charlty. A 8urnm￿ profit and l¢)ss accowrt for the 8ubsidiary is Bhow) in note 6. The subsidiary compan￿8 a88ets and ]iabllitie8 are eon8rAidated in the balance sheet ot) a line by line basi& Examination fees and expen8e8 arising Sn the UK are credited or charged in the slatement of fjnanclal activities during the accounting period in whith such exaMI￿On$ take place. Jnt•rnat10D￿ •zamlDadoo• Where examinations take place online exaMI￿tion fe¥ and expenses incurred in the UK are credlted or charged in the statement of financial activities dwing the accounting period in thich 8uth examinatio￿9 take place. Commissions due to local representatives in respect of online examination8 are induded in their reprn8entative returns as detwled below. Where examination8 are held lot￿Y these results are prepared from return6 and annual accowjts Bubmitted by ABRSM'S lttal repre8entative$. wbich are not nece88arity made up to 31 January eath year Jt the effect of diffeting aecounting date8 1$ not considered by the Govemor8 to be 8hgnificant. In the rare ca8e that the arnounts ¢yHed cannot be recovered a bad debt provision 18 made. T•atber wpport Training COUTse fte8 and expenses are credited or ch4T8ed In the 8tatemÈnt of fjnfincial activities dwing the accounth8 peTAod An whlch such cour8e8 tske place. Subscrfptlon• Sub8cript5on revenue 18 presented net of any app]icable tsxe8 wh5ch have been colleeled and passed on to the Televant governmental authoiitle& Members are billed in advance of the start of their monthly membeTthip. monthly subscrÈpt1o￿ are rectWli8ed in the nb)nth receive¢ annua] ¥ubscriptiOns are recognised <)n a str￿ght-11n¢ basis over the life of the subgoiption h) All expenditure is accounted for on an acuua18 baw and hu been cla$8ified under heading8 that aggregate all co#3 related to the cate80ry. Where costs cannot be drectly attn7)￿ed to particular headings they have been allocated to activities on a basis consistent with the use of resourceB. Ovethead8 are apportioned either on headcount. twTroveT, Staff OLrupancy of accommodation area or usage basi5 a3 considered n￿￿t approwiate. Expenditure indudes input VAT to the extent that It Is irrecoverable. Dlrect charirable expenditure comprises 8ervice8 identifiable a$ wholly or rnainly in support of ABRSM'S clwitable and operational work. These cL￿ts aTe regarded as an intew] part of c8rry5ng out the direct chwitable 0￿eL1YeS of ABRSM and include an appropriate proportion of ovethead costs. Governance cLwts are th08e incuTred in connection with the administration of the charity and compliance with cotsstitirtiona] and statutory requirement The8e costs have been apportioned acr088 expenditure on chw?table ac￿￿treS based on turnovw except vthere the cost c8n be attributed to a 8pecific aL1ivity. Page 31

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO ThE CONSOLIDATED AccouKfs {CO￿D) FOR THE YEAR ENDED 31 JANUARY 2021 AccourTrING POLICIES (COPITIIIUED) i} Computer ￿ft¥￿Te Expendtture on computer software is Mitten off in the year in which it is incurred. Ji All seholarshjps offered by the balance sheet date for the current academie year &re provided in fijll. Awards for future years are subjeL to review and authorisation by ABRSM each year and are disclosed as commitments in note 30. The ￿tUre comnutments are estimated based on continued fi￿dIng of the curTent students in recèipt of a scholarship to the end of their aeadernic studie& k) Employ•• b•n•ilts Short-¢emi employee benefits. incluthg holiday pay and contnljutions to the defined contribution pension Scheme ate recO￿lSed a8 an expense in the peri(￿ in wlu.ch they are incurred. The defined benefit scheme dosed to future accnjal on 31 December 2018 and employees transfened to the defined contribution pension scheme on l January 2019. Contributions to 31 December 2018 in respect of the defined benefit scheme are dw8ed to salary costs for respective activities in the statement of fir￿￿1￿ a¢tivitie& The amounts recognised in the staiement of financial activities induding any actuarial Ootsl or gain are estimated based on the Tequirement8 of FRS102. and are fully explained in Tr)te 33. i) TaDObR¢ fixed ug¢ts Depreciation is provided on eoBt at the following annual rates In order to wrf¢e off each asset over its estimated u8efu] iife.'- Short leuehold ]ond and ￿n){￿n8¥ over the remaining life of the lease to the lease break point 33% 2.Wo- 33'h Computer equlpment Plant, dxtures and equipment Expenditure on fllrnl￿e and equipment not exceedln8 £1,000 kn total and all exwndlture on repa5r8 and maintenance is wriiten off In the year in svhich it is ineurre Investment• The inve8tment in the 8ubsi(bary company 18 valued at CQ8L Fixed asset investments are included in the balance 8heei at their market value at the end of the fuw)cial period. Realised and unreali8ed gains and 1058es are credited or debited to the Statement of financlal activities in the year in W￿"Ch they ari8e and are based on brought forward values. Current asset investments consist of treasilly deposrts and notice accounts with rnatUTity and notice to withdraw ofless than a year. layed assets Leases are c]assified as finance lease5 vtheneveT the term8 of the lease transfer substantially all the ri3k8 and rewards of ownership of the leased asset to the group. All other leases are classified as operating leases. Assets held under finance leases are recognised initiajty at the fair value of the leased asset lor, if lower. the present value of Mini￿ le&%e payments) at the inception of the lease. The coTresponding ]iab]lity to the lessor is induded in the statement of financia] position as a finance lease obligation. Lease pa￿TrentS are apportioned between finance dharges and reduction of the lease ob]igation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the ]iabi]ity. Finance d￿rges are deducted in measuring profit or 105& Assets held under firwice leases 8 included in tatigible fixed assets and depreciated and assessed for impaiTment losses in the Same way as owned a55ets. Page 32

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS {COrnED) FOR THE YEAR ENDED 31 JANUARY 2021 ACCOUNTING POLICIES (COPTrIrwED) Rentals appiicable to operaiing leases. where Substari￿ all of the benefits and ri8ks of 0￿erShip remain with the lessor. are charged to the statement of financi￿ athities on a straight line ba￿ over the lease tern). The aggregate benefit of any lease incentives are recogDi8ed a8 a reduction to the expen8e charged over the lease tem) OA a Straight ]ine basi Stoek• Pub]ications stocks are valued at the lower of c08t and net reaii8able valu& For wlnted music. cost 1$ based on the unit cost of prrxluction for each publicatioTr WO￿ in PTogre88 at printers is valued at the cost of the paper used and is induded in paper St¢￿k& In estimating net realisable value, due allowance is made for 81ow-moving, ob801ete. defective and UnS￿eable ilen￿. Origination costs are charged to Tevenue in the year in wbith they axe incurre p) Rat•8 of exehan8• knet8 and ]iabilitse8 In foreign currenae8 are converted into Y￿r11ng at the rate of exchange n￿ing at the balance sheel date. Income and expenditure arising from examinations held locally during the year 18 converted at the average exdw)gt rate for the year. All other income and expenditure )8 converted at daily exchange rates. Al] diffeT¢n¢e8 on exchange are dealt with throuBh the net movement in funds for the year. Flnanejal knthm¢nts Basic financia] assets arkd liabllitie8 8uch a8 tem) debtorB. creditors and bank balanceo are initially recognised at fair v￿u¢ less any ti)yiThrrt and transartion costs and wbsequently measured at their 8ettlemert value. Ptlze End0vM￿The Funds inverted in Charinco and i]wishaTe Comrtb)n Inve8ttnent Fund$ are carrled at fair value. To mitigate the impart of forei8n exchange k￿es. forward contracts are taken out to ensure that a proportion of future remitiances to the UK from major overseas operation8 are guaranteed at a pr agreed rate. The forward contracts are deiivative in8tnfftents and are initially measured at fair value o the date taken out. They are gubsequent]y measured at fair value through the statement of financial activitle8. at the balance sheet date. The contracts are c4nied as a88ets when the fair value is positive and a8 liab￿ltieS when the fatr value ts negative. Exarnination and course fee8 recelved foT firture 5ts51ons after the reporting date are included Sn editot7 as deferred income. Pn>vknlon8 And ¢ontin8¢nde• Provisions are recogni5ed when the chaTitable eompany ha8 a preBent lega] or cOns￿Ve obligation result of past events where it is probable that an outoow of resources will be reqUI￿d to settle the obligation and the amount can be estirnated reliably. The amount recognised 13 the best e3timate of the consideration required to sett]e the present obllgation at the end of the reporting perio(L taknng into account any ii8ks and unCe￿Inti￿ surroundlng the oLligatio Where the consideration requred to settle a present oiligation 15 CQDfirmed, the ￿noUnt payable is transferred to creditors and any balance released to the Staternent of Financial Activities. Contingent liabilities. ￿l$l￿g as a result of past events. are nrt recogni8ed when lil it is not pmbable that tlwe will be an outhow of Tesources or that the amount cannot be reliabty MeaS￿d at the reporhng date or lil) vthen the existence wlll be confi￿ed by future events not ￿thin the chaTitable company's control. Contingent liabth'ties are disdosed in the financial thtements unles3 the p￿bability of an Page 33

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF bfUSIC NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 AccouFrfiNG POLICIBS (CONTINUED) t) Fund aeeowitlng Unrestsicted funds con¥Jri5e those monies 7*thich may be used towards mething the chAritable objectives of the cTrwity at the discretion of the Governm. Designated funds are Unrestricted ffijnds eaTmwked by the Governors to be used for particular pwpose8 in the fijture. Transfers are made to desigmated funds on the basis of approval by the Governors of future project plans. Restri¢ted funds are 8rants or monies raised for a specific purpose or donations subject to donor im5￿sed conditions. The prize endowment funds repre8ent either penT￿nent cawtal fimd8 where there 18 no power to convert the eapilal into income and which must 8enerally be held indefinitely or expendable fiJnd8 where capital may be used for the putPO8es of the fi￿d. Taxadon The Associated BoaTd of the Royal Sd￿018 of Music 18 a registered chwity and therefore is not liable t UK income tax ¢X corporation tax on income derived from its cbaritsble activitles as they fall wlthln the Y￿)0u$ exernption3 available to Te81￿ered charities. ABRSM is registered for VAT but IE n(rt able to re￿Ver the whole of its input tax owing to the partial exemption Provisions. Expenditure indudes input VAT ¢0 the extent it Is i￿0verable. A provision for tax payable in relati¢)n to international ryerations been induded in note 23 having regard to professional advice. The wholly owned subsldlary. The Assctiated Board of the Roya] Sehools of Mu8lc {Publl8hln8} Limlted. Is a COTnmercio1 entiry and donates its pre-tax profit to ABRSM wjder Gift Ald Djles. web￿te and oth•r d•v•lopmeDt eort• ABRSM has adopted a policy of not capita]ising webslte and (rther $5maar devel¢)pment expenditure. Contrlbmdow to four of th• Rtsy￿ Selwols of Contribution8 to four of the Royal School$ of Music lor their associated chwitable tnstsl are treated a8 distributions, the Roy81 Schools being membeTS of the Charity. They are therefore charged to the statement of financiAI activities in the year in which they are paid and shown as a movement in funds. G0venm￿t KT•nts Government grants are ¥ccounted for aecording to the accnjal ny)del. Page 34

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS (co￿nNUED) FOR THE YEAR ENDED 31 JANUARY 2021 2021 £'ooo 2020 £'ooo tysi8 by 8eo8Taphical market: United Kingdom and Ireland <￿er8e&S 7,020 8.287 14,484 34.562 15.307 42 49.046 18831 Forelgn exchange gain/Oos81 on oveT¥eas Tevenue 48,163 Total income Le8& eXaMi￿tIon fee8 received in advance (note 21) 17,196 {1,847) 51,391 {3,228) 15,349 48,163 D¢f¢md f•• lucome: The movement with respect io examiwon fee8 received in adv8nce in the year is 48 follows.. 2021 £'ooo 2020 E'OCQ Fees in advance as at l February 2020 Less fee3 thie for examlnations taken in the yeaT Fees recefved with re8pect to llmtre examknation perto(ts (note 21) 3,228 <3,228) 3,777 13.7771 1,847 3,228 1,847 3.228 TEACHER SUPPORT REVBNUE 2021 £'ooo 2020 £'cK)o Anatyw8 by geographie4] market. United Kmgdom and Ireland 39 24 93 Total income 42 117 Page 35

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS (COPtfiNUED) FOR THE YEAR ENDED 31 JANUARY 2021 5. INVESTMBrTr INCOME 2021 2020 2021 2020 tntox•st r•c¢lvablt frollL" Unrestiicted fijnds Prize endowment fund8 27 39 166 44 159 44 39 66 210 203 6. NET INCOMB OF TRADING SUBSIDIARY The Associated Board of the Royal Schools of Music owns the entire issued share capitai olThe Associated Board of the Royal Schools of Music IPubltshin81 timited. a trading company incorporated in the United Kingdom with company number 0191￿47. This subsidiary widertaking donateB its taxable Profits to ABRSM undeT Gift kn'd rule8. The activitt'es of the subsidiary Lmdertakin8 SUPPOrt the exami￿tion a￿l￿tieS of the parent company by provision of speciali8t 8raded Tepertoire and other materiab targeted at specific examu)ation leve]8. A 8UMM￿ of the results of the publishing activities for the year (exduthn8 intra-group charges eliminated on consolldationl is given below. Audited accounts of the subsidiary undertaking wi]1 be filed with the Rewar of Companles. 2021 £'ooo 2020 £'ooo 7,612 (1.528) ,240 11,675} Cost of sale5 Grom profit 6.084 6,565 Distribution costs Admitu'stration and ¢)ther operating chaTge8 Interest receivable {992) {1.0091 11.3381 28 N•t Ineom• 3.779 4.246 The aggregate amouni of the subsiditys assets. liatolities and fund8 as at 31 January 2021, excluding intercompany bal8nce8, were a8 follows.. 2021 £'ooo 2020 £'ooo Tota] net 8ssetB 4.643 5.083 Including intra-group chaTges and intereompany balances. the subsidiarfs results for the year were as follows.. turnover £7,618,0001202tTr. £8.245.0001. net income £1.309.00012020.' £1.801,IJOOl and total net &8sets £21.00012020.. E21.000). Page 36

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO ThE CONSOLIDATED ACCOUTh (CONTINUED) FOR ThE YEAR ENDBD 31 JANUARY 2021 7. OTHER INCOME Other income indudes a governm￿ grant tot&Uing £323.00012020.. £Dll) in respect of the Coro￿viTU$ Job Retention Stheme. ANALYSIS OF BXPBNDITURB DITect Support Staky D•pradadon Total Tota] Charttable Costs Costs 2021 2020 (Nol¢ 9) (Note 15) Restated £'ooo rooo £'ooo £'ooo Charftable athtles: ExamiDatioDs Teacher Support Scholarship pa￿ents Music education Publithing 7.644 9.114 6.453 117 322 23,533 231 1.048 244 5.857 41,135 431 1,053 382 fj,oio 1.048 244 2,646 932 2.246 33 11,582 10.156 8.816 359 30.913 49.011 439 439 581 Tot 11.582 10,156 9.255 359 31.352 49,592 Unre8tr1cted expenditure on Examtswtion8 and Teaehtr Sw>port for the group before the defined benefit pension scheme adjustrnent was £26,959.000 and £240,000 respectively {2020: £44.481.000 and É439,0001. The equivalent figure8 foT the ch￿lty were E26.904.000 and £240.000 {2020.' £44.431,000 and £439.OthJ}. Included wilhln total expenditure is on adjustment to the deflned beneflt pen81on seheme of É3.443,000 12020.. £3.368.0001 which has been credited io the pen8ion reserve (see note 33}. An offsetting amount of £nU12020.. £nill 18 induded in thi$ amourt as an approxirnate allowance for the past seryice cost of the GuaTanteed Minimum Pen8ion IGMP) equa]isation. E3.434.000 has been allocated to EX8JnIr￿tion$ expenditure and £9.¢)00 to Teacher S￿pOrt The prior year apportionment was a credit of £3,360.000 to Examination8 and £8,000 to Teacher s￿pOrt A180 inc]uded In expenditure are prizes paid from the endowment fiJnd8 totalbtig £8.00012020: £14.0001. g. SUPPORT cosrs Support costs induding governance {see note 81 are an￿Sed as folloM*.' Total 2021 £'ooo 2020 £'ooo £'ooo Exam Support IT including software developmeTrt Sales and Marketsn8 nance Facilities Governance HR & other nwement 358 6.110 341 18 1.635 166 486 358 6.760 443 20 1,823 179 573 1.181 4.274 1.347 140 2.￿2 215 1,499 43 607 58 21 167 13 85 9.114 iio 932 10,156 10,658 Page 37

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AccouKfs {CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 10. SCHOLARSHIPS 2021 2020 £'ooo United Kingdom students Overseas students Mackiin Bursary 207 839 209 842 1,048 1.053 The totsl munber of scholars supported dwing the year aMc￿lled to 9112020.. 911. I I. MUSIC EDUCATION- Unrestrlcted tan 2021 £'ooo 2020 £'ooo SPONSORSHIP Bellevue Academy Commonwealth Re80und8 Dhow Countries Drake Music Scodand Gorbals Youth Bra88 Lancashire Music Hub The Mayor of London'8 Fwid fr¥r Young M￿siCIa Musicability National Children'8 Orchestra National Open Youth Orchestra National Youth Ckjlr National Youth Jau Orche8tra National Youth Orchestra Notes Ine8a]es - Thinl Orchestrn Barbican Oh Yeah Centre Openup Music Royal Phi]harmonic Society Southbank Sinfonia Systema Cymru-codi Tinderbox Project The UK Association for M￿lC Education- Mu8ic Mark Wolverhampton Mu9ic Seryice Young Urban Arts Foundation io io 12 10 io io 25 io 15 25 25 30 31 20 20 30 28 18 io 25 li io io 12 18 io io io 23 51 Other Educational Sponsorship Other 17 47 244 377 In addition to the amounts shown above ABRSM made ¢ontiibutions to four Royal Sthools of Music toiajling £nll (2020.. £5.600.0001 for the benefit of music educatiOJL Page 38

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED Accou￿rS (COKnNUED) FOR THE YEAR ENDED 31 JANUARY 2021 12. MUSIC EDUCATION- Restricted fimdl 2021 £'ooo 2020 £'¢)00 This expenditure rdates to a research project focu8ed on improvin8 learner8' acce88 to and progression In music educatiOJL 13. GOVERNANCE COSTS- unr•#trkt￿ 2021 2020 £'ooo Governing Body Co*8 Aud]'t Fees parent company Audit Fee8 Pen8ion scheme FeeB payable lo auditor for non audit servlees Company Secretarial Independent Pension Scheme Chairn Internal Audit Tn￿e¢S and Offlcern Uabllity Insurance Pen8ion Fund Trustee Indemnity insurance 57 13 68 14 65 35 36 26 io 179 231 14. Nrf INCOME FOR THE YEAR 2021 £'ooo 2020 £'ooo Net thcome for the year is 8tated after char8in8/lcreditingl". Fees payable to the company'$ auth'tor and it8 a880ciates for the audit ofthe charita￿e company'8 annual accounts Fee8 payable to the company8 audltor and its a85odates for cthr 8eThice8'. Audlt of suE6idiary company Tax compjiance Fee8 payable to secondary auditors PeTJ8ion scheme audit cornpleted by other audit firn Depreciation of ovrned a58ets Depreaation of assets held under finance le￿¢ obligation5 Operating lease rentals- leasehold bui](lin8S 57 13 322 37 14 439 1,181 75 14 883 {3111 225 15 (42) It5 Dilapldatlons PTovision Excbange Igainlnoss on overseas revenue LoBs/lgainl on fair vahle of derivattYe8 Pag8 39

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 15. sfAFF cosrs 2021 £'ooo 2020 £'ooo Staff C￿tS during the year included: Wages and salaries Soclal security costs Employer pension costs Defined Benefit Pension adjustsnent {see note 33) Pension finance char8e Other staff costs 7,352 712 3,928 (3.443) 439 267 7.746 759 4,029 {3,3681 581 652 9,255 10.399 The number ofemp]oyees who earned £60,Th)O or more {induding benefits) during the year were as follows.. 2021 2020 £ 60.00) - E 70.000 £ 70.001 - £ 80,000 £ 80,001 - £ 90,000 £ 90.(K)I - EIOO.OCNJ £IOO.001- El 10,000 £110,001- £120,000 £120,001- E130.000 £150.001- £160.000 £190,001- £200.000 E290.001- É300.000 During the year. in response to the impart of Coronavin￿, a number of rapid staff changes re8ulied in redundancy and pay in lieu of notsce costs of £213.95712020.. £11,793). These payment8 are induded in the tables above and have been recognised in fu]1 in the staiement of fitwhcial activities. Page 40

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED Accou￿rS (COKllNUED) FOR THE YEAR ENDED 31 JANUARY 2021 15. STAFF COSTS (c(•ntinued) The number of employees who earned £60.1WJ or more dw?n8 the year to whom retirement benefit$ are &ecndng under perwon 8chen*8 funded by the company th... 2021 No 2020 No. Defined eotitiibution stheme 16 15 The defined benefft scheme closed to future acL7ual on 31 December 2018 and active Member8 elected to transfer to the defjned contribution pension scheme from l January 2019. The 4verage number of employees, txdudln8 temporary staff. during the year wa8 ag follow8.. 2021 2020 Chwity UK tradlng 8ub8idiary 154 13 171 12 187 183 The kry managernent personnel of the chwity and Itj wholly owned 8ubsithary received total employee benefits of £1.242.45712020: EI,097.6891. No Governor rece7ved p￿ent for their ser41ce8 in the year 12020: Enil}. Travelllng and 5ub8iStence expenses relmbwsed by ABRSM to 3 Governors or Aiiemaie8 {2020.. 91 for expenditure necessarlly incurred on ABRSM'J Iwtne88 aTh)unted to £62 12020.. £4,401). No other Governor. nor any peT80n connected with any Governor, reeelved any remuneration in the year ended 31 January 202112020.. £nlll. Page 41

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOUDATED ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 16. TANGIBLE FIXED ASSFrs sI￿rt 1•as•I￿ld land and Comput•r bulldlngs equlpment equlpment £'ooo £'ooo £'ooo Total £'ooo Cozt At l February 2020 Additions Disp05a15 2.324 800 224 {130) 919 3.843 224 1131) At 31 January 2021 2,324 918 3,936 Dtpr•datlon At l Febw 2020 Charge for the year On disposals 623 202 526 404 88 1,553 359 1131) (130) At 31 January 2021 825 465 491 1,781 Net book value• At 31 January 2021 229 427 2,155 Ai 31 January 2020 1,701 74 515 2,290 All aBsets are u8ed for charitable puryoses. The net book value of assets held under fjnan¢e leases 18 £187,00012020: £ni]I 17. FIXED ASSET INvEsfMBrirs SU￿Id1￿ry •ndowment funds £'ooo 2021 Total £'ooo 2020 Total E'OOO £'ooo Group Prize endoiyment funds- listed investments ot market vaiue At l Febru8ry 2020 Additions Unrea]i8ed Vw$)/gain in the year 1.433 1.433 1,282 197) (97) 151 At 31 January 2021 1.336 1,336 1.433 Prize endowment funds- listed investments at mat*et value la5 above} Investment in subsidiary Ordinary share$ of £1 each at cost Unsecured loan note 1.336 1.336 1.433 io 772 io 772 io 772 782 1,336 2.118 2.215 Page 42

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOUDATED Accouwfs {CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 17. FIXED ASSEf INVEsfMBITfs (eantinued) The prize endowment funds are invested in Clwinco and Charisljare Common Inve8tsnent Fund8 a cost of £655.0￿ {2020: £655.Cth). The Chari￿8 subsidiary undertaknng is The A5scciated Board of the Royal Schcd8 of Mu8ic IPub]islung) Limited. The chatity owns IC￿￿ of the compan￿5 issued ordinary El shares. The piineipal activity of the company 18 the production and sale of rn￿C publicatioJL8 and recordtngs. The charity ha8 giveo an urKlertaking to its wbBidiary ts)t to demand repa)rynent of the unsecured loan note before l July 2022. Interest is chargeable on the unseLwed loan note at a iate of 2Yo over the Bank of England base rate from tirne to time. No prnvision is considered nece88ary against the £IO.000 c08t of the investment in this subsidiary. 18. STOCKS Group 2021 E'ooo Group 2020 £'ooo Printed music and recrydingj Paper 721 152 663 186 873 849 19. DEBTORS 2021 2020 £'ooo 2021 £'ooo 2020 £'ooo Trade debtors Overseas repre8entative8 Amounts due from subsidiary Other debtor8 Forward Currency contrnct8 at fair value Prepayments and accrued inc 761 2,130 1.142 9.$83 287 2,130 3,849 231 19 9.583 4,289 153 115 1.066 403 1.153 115 1,158 4.262 13.151 7,440 15,225 20. CURREKf AssFf INVEsfMEwrs 2021 £'ooo 2020 2021 £'ooo 2020 Cash held on deposit greater than 3 months less than 3 months 2.734 6.081 2.034 5,581 1.631 Induded within the akne figure aTe trea5wy de￿￿￿ts with an Dri￿nal matwity of 12 months or les& At the balance theet date the average maturity of these deposits was n]I ny)J)ths for the group 12020.. 4 months} and nil month5 for the charity12020: 4 ￿￿nthS). The aveTage interest rdte was nilQ/o12020'. I'/4) for the group and nll% {2020". Iohl for the charity. Page 43

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AccouKfs (CONTifiuED) FOR THE YEAR ENDED 31 JANUARY 2021 21. CREDITORS: amounts falling due within one year 2021 £'ooo 2020 £'LN]o 2021 £'ooo 2020 £'ooo Trade CTedStor8 Overseas representative8 Refimds due to customeT8 Deferred Incorne.. exam fee81Th)te 3) Cther taxes and social securtty costs Finance lease arrangements Other creditors ACen￿lS and other deferred income 1,140 1,185 482 1,847 243 66 377 2,655 1,156 1,003 1,185 482 1,846 228 06 102 2.646 1.044 3.228 3.228 183 iio 3,361 3.378 7,995 8.370 7.558 7.926 2a. CREDrroRS: amourrt8 falling due after more than one year Group 2021 2020 £.0(￿1 2021 2020 £'ooo nance lease a￿angeMentS Other credltorB 513 51J 498 612 498 612 498 The finance lease 18 seeured the computer equipment to which it relate5. No Interest ts payable. FRS102 require8 the full amount of a dilapidation pmision to be recognised when the obligation arises. Other creditors represent the estimated inllation indexed di14)ida¢ions fimd potentially payable on exit from the lease of our current premises. Salters. Hau. 23. PROVISIONS Group E'OOO Chwity £'ODO At l February 2020 Movement in tax pmvisions 754 (Sn 754 (57) Ai 31 January 2021 697 697 During 2020 ABRSM c¢)ntinued to seek advice on its taxation position in rel&tion to its intemational operations and expects that most resulting liakniities w]1 be settled over the course of the next fve years with the timescale being partty dependent on the speed of response of the re]evant tax authoritieB. Page 44

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUTh (COKllNUED) FOR THE YEAR ENDED 31 JANUARY 2021 24. BNDOwMEr￿ FUNDS Movement in Fun At I In¢ome and Expenditure At31 February and losw January 2020 2021 £'ooo £'ooo £'ooo Group and eharity P•rnwi•nt pth endowment fund# Shella Mossman Pri2e account Ralph Bassett Prize account Constance Haddon Prize account Winifred Liversidge Prize account Irene Lassen Bequest WeinMan/Durais￿Y Prize Sundry named prizes and gentral prfzes aeeount 144 iioi (71 191 18) 131) 137 107 121 123 449 127 J28 468 12 294 {19} 282 1.277 31 1841 1,224 Expendabiq prlz¢ end0￿ent fund¥ Jardine Matheson Mu schola GoTdon Bryjm Fund Alan Pickard Prize Taylor White Glbbs Prize ioi 25 156 16) 12) {13} 98 24 147 282 (211 269 Totsl •ndovmwnt fund 1.559 39 1105} 1,493 Interest receivable New prize donatlon Expenditure on PT5ze8 Unrealised lo88 on investinents 39 {81 {971 39 (105) Incom• Expéndlture and gal￿ and losses 2020 2020 £.0￿) £'ooo Interest receivabk and sundry income New piize donats'on Expenditure on prize8 UnTeaii8ed gain on investments 44 114) 151 203 1141 The endowment fiJnd8 were estab]ished to provide pri￿8 lor mwieal achievements in ABRSM'S exarn1r￿tions. For Pern￿nent prize endowment ￿eXpellded income 18 accumu]ated as capitsl and added to the fjJnd each year. Expendable prize endowment fund5 comprise unexpended balances of donatioN hdd on tnJ8t to be applied for speufic purpose& Page 45

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AccouKfs (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 25. RBSTRICTED FUNDS RestriLted fwids represents the Arts Coul￿￿ England grant towards a research Project focused on improving learners. access to and progression in music educatio￿ The grant released in the year was £nil {2020'. £5.000}. The grant fulty expended in the year amounted to £nil12020: £5,000). 26. UNRESTRIcfBD FUNDS 2020 £'ooo lozi £'ooo £'ooo £'ooo £'ooo Development funds 6071 (4,053) 1,000 3.818 15.972 23,243 130,295) (1.0001 7.920 Totsl 22.843 23,243 134,348) 11,738 D••l4nat•d fund• Development funds 6,871 14.0531 1,000 3,818 15,961 17.331 124.383) {i.0001 7,909 Tothl 22,832 17.331 28.436 De85gnated funds represent developmeni fimds set J8ide for the development of ABRSM'$ digital infrastTUCture and development of oversea$ markets. Page 46

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AccouKrs (coNriNUED) FOR THE YEAR ENDED 31 JANUARY 2021 27. ANALYSIS OF Nrf AssEfs BEfwBBN FufiDS Fund balances a5 at 31 January 2021 are repre8ented by. Total 2021 Fund8 (Ineludkn8 Endowment Funds £'ooo £'ooo £'ooo Grnup Tanglble ￿Sets Investments CwTent a&8ets Current liabilities Non-current ]iaballties Provisio 1155 2,155 1,336 19,044 (7,995) (612 (697) 1.336 166 {91 18.878 {7.9861 16121 1697) Net a&8els before pension dedat Pension deficit 11,738 (26,419) 1.493 13,231 (26,419) Total net Uiabfiitles)/assets after pension deficit & pYovi8ion8 (14,681) 1.493 (13.188) Tangib]e assets Investment8 Current assets Currert liabilities Non-current Iiabilrne8 Provlsions 2.155 782 17.648 17,549) 1612) 1697) 2,155 2.118 17,814 (7,558) (812) (697) 1.336 166 19) Net a88ets before pen8Son defiat & provisions Pension defidt 11.727 1.493 13,220 {26.4191 126,419) Tota] net Oiabihtiesl/asset$ after pension deficit & provisior• {14,692) 1,493 (13,199) Group and Chartty Unrealised gains included above on investm￿ll assets (see note below) 681 681 Unrea]i8ed gains a8 at l Febnwy 2020 Net Oo&s)/gain arising from revaluations in the year 778 778 1971 (97) UnreaiiBed gains as at 31 January 2021 681 Page 47

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 28. RECONCIUATION OF Nrf INCOME TO PIEf CASH FLOW FROM OPEBATING AcnvrriBS 2021 £'ooo 2020 £'ooo Net Ideficit}1SnLyxne for the repoTting peJio(L' Depreciation charge Loss on disposa] of fixed &8set5 InteTest received Loss/lgainl on investments {Increasel/decrease in stock8 Decreasellincrease) in debtors {Decreasel/incTea8e in CTedltOT8 {Decreasellincrease in provision8 Net cath nrnent in penslon defldt (8,052) 35 7,568 439 (66) 97 (24) ,774 1420) (57} 13,004) {2101 11511 11251 13,1271 14831 68 12.7871 N¢t ealh {outnow)Ilnllow provlded by op•ratln8 Actlvltlo5 12,3991 1.195 29. ANALYSIS OF CHANGES IN NEf DEBT At l•1 February 2020 Ca#h fiowi New Ilnance At 311t January 1•48¢ 2021 £'ooo £'Doo £'ooo Caih and •qulvalonts C88h Cash equivalettts 7.486 6,081 4.792 14.450) 12,278 1,631 13.567 342 13,909 BorrowlDgS Finance lease 59 12241 (185} 59 12241 (1651 TOTAL 13.567 401 (224) 13,744 30. FINANCIAL COMMTfMErTrs Stholar8hlps Scholarshlps awarded for which no provision has been made in these accounts are expected to becorne payable as fol]ow5:. 2021 2020 E'ooo YeaT enthng 31 Januory 2021 Year endinB 31 January 2022 Year endin8 31 January 2023 Year ending 31 January 2024 Year ending 31 January 2025 1.086 715 346 178 1,072 725 352 177 2,320 2.325 All scholaT5hips offered by the balance sheet date for the CUTrent academic year are provided in Awards for future years are subjert to Teview aud authotisation by ABRSM each year and are therefore not inc]uded in provisions a8 at the balance sheet date. Page 48

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF IWSIC NOTES TO THE CONSOLIDATED ACCOUNTS (CO￿[NUED} FOR THE YEAR ENDED 31 JANUARY 2021 30. FINANCIAL COMMfTMEKfs (continued) At 31 JarMJary 2021 the group charity had fUt￿e total Mini￿ operating Iwe payments as fo]]owA.' Other 2021 2020 2021 £'ooo 2020 £'ooo One yeaT Two to five years Over five yeaTS 1.207 4,827 2,962 1.207 4.827 4.169 219 150 224 369 8.996 10.203 389 593 The totat fijture mintmum finance lease payments as the eDd ofthe reportin8 period are as follows: Charfty 2021 2020 £'(KJO 2021 £'ooo 2020 £'ooo Not later than one year Later than one year and not later than fve yews 66 P9 185 185 31. TBANSAcfioNS Y￿rH RELATED PARTIES ABRSM made contributions of £nil {2020.. £1,400.000} io eaeh of four Royal Schools of Music or theST charitable tntst& Two representatlves from eaeh of these or8anisation8 sit on the Governing Body. ABRSM was paty to a number of financial transactions whh its tr￿n8 subsidiary. ABRSM PubliBhing during the year as follows.. 2021 £'ooo 2020 £'ooo Chw¥ed by ABRSM to ABRSM Publljhkn AdMiri￿atiVe expenses recharged Pension costs Techarged Loan inteTest Management chaT8e coP￿18ht char8e 13 483 17 2.082 378 69 495 21 2,043 386 Cbaryed by ABRSM PubU#bkn8 to ABRSM: Paper Stock recharged Printed music at)d recLYdu]gs io Glft ald donatlort from ABRSM Pub]tsbJng to ABRSM: 1.309 i.Boi Ba]￿e at the y•ar end: Due to ABRSM from ABRSM Publishing Due from ABRSM to ABBSM Publishm8 3.853 4,299 io DuTill8 the year Profession Co]in Lawson was paid Enll12020: £1101 in royalties by ABRSM {Publishing) LÉmited on notinal commercial tenns. The balance outstanding at the year end was £nil12020: £110). There have been no other related paTty transactions during the year. Page 49

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE cofisoLIDATED AccouKfs (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 32. FifiANC]AL INvfRUMBFTrs ABRSM has the following finaneAai Instru￿ vthich are included at fair value through the 8tateTnent of financial activities.. 2021 'ooo 2020 £'ooo FinatLcia] awt8 at fair value thr￿gh the statement of finaneial activities: Forlrnrd foreign currenLy contraet8 Inotlon8] anxxuit) 7,299 Forvmd forei8n currenry Contracts (fair value) {1151 Inyejtments 1,336 1,433 ABRSM use8 foreign curTenLy fonvaTd contracts to reduce its expoBure to exchange rate movements. At the balance sheet date there were no contracts in place for the fonvard Sale of anticipaled receipt8 of ftJrel8n eurrenaes. Page S)

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AcCou￿rS (coriTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 33. PEEISION SCHEblES The charAty operates two pension 8theme8.' a grow) 8takel¥)Ider penslon plan and a dellned benefrt scherne. From J February 2014. quabfv aff joining ABRSM are auto enrolled ittto the gr(Mw 8t8keholder pension p]an provided by Scottish Equitable plc under the brglld name Aegon (Financial se￿ices Register nurnber 1655481. Contributions are recO￿)iSed in the Statement of Financia] Aetiwties in the year in which they are earned. The minimum employee COIth￿utJ0n 18 3% of basic salary. ABRSM contributes 5V/o of basic 88lary. Each percentage in(Tea5e in the e￿￿oyee contribution 18 matched by ABRSM up to a maximum employer eonttibution of IW The defined benefit scheme was established to PTovide retirement benefjts for the charit￿S employees based upon final pensionable ￿Jar1e8 for those joining before 6 April 2006 or career average sa]arie5 for those pining from 6 ApTiI 2006. On l April 2013 all members of the final sa]ary section ol the scheme tran8ferTed to the eareer average section of the ￿heMe. The asset8 of the scheme are held separately from th08e of the chatiry. The scheme dosed on 31 December 2018 to fvtUTe ac(Yual. Active mernber8 had the option to join the organisauon's group sthkeholder pension scheme at l January 2019. Contributions payable are determined on the basis of triennial valuations canied out by a qualified actw. The Chari￿s contributions are charged a8 resources and expended in the year in whlch contTibution8 are made. The charity ceued contrib￿lOn8 for the acerual of futwe benefits from l j￿Uary 2019. The pension seThice costs for the ytar were £nii {2020'. £nil). The pre8ent value of the scheme liabilities Includes £733,00012020.. £720.(K￿}. canied fon¥ard from the prior yeaTS as an e8timate of the pa8t service COBt ofGMP equalisation. These aecounts reflect the requirennts of FRSIO2. The eeonomie assumptions listed below have been calcuiated by a qualhled independent aetuary. They are based on rna￿et conditions as at 31 January 2021 but have been derived u8in8 the Methodolo￿ 8et out ID FRSIO2. The discount rate has been derived u8ing a corporate bond yield cuNe approach as required by FRS102. The iBoxx over 15 year corporate AA rated E4)nd index had a yield of 1.51V/o per annum a8 at 31 January 2021. This index h&8 a duration of around 22.5 yearn. which is Bli8ht]y longer than the durntion of the Scheme's liabilities. year, the discount rate was the yield on the iBoxx over 15 year corporate bond index plus an addition to refiect the upward sloping natUTe of the yield c￿ve. As the shape of the yield Curve is $imOar this year, the same approach has been used. resu]tin8 in a discount rate of 1.5¥0 per annurrL Retai] price infiation IRPI) has been derived from the spot infiation rates published by the Bank of England. At duration of 21.5 yews. the sixrt Tate for infjation 18 3.28•/0 per ajmum as at 31 January 2021. An RPI increase assumption of 3.3Q/o has been ￿e Consumer price infjation ha8 been reduced to 0.7•/p below PFI, reBulting in a CPI Increase a85umption of 2.ff/o. No e8tnnated 8a]ary increase8 due to the 8cherne dosure at 31 December 2018. Increases to pensions in payment vA)ich are related to price infiation have been taken to increase in line with the RPI assumption or the annual increase cap, whichever is lower. Increases to deferred pensio￿% prthich are related to price intlation have been taken to increa8e in line wfftth the CPI ￿uMptIO0 or the cap. whichever 18 the lower. Commutation of pensSon by members estimated at 25%, allowing for an increase in commutation rates slnce the actuwial va]uation. Page 51

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS (cowfiNUED) FOR ThE YEAR ENDED 31 JANUARY 2021 33. PENSION SCHEMES (continued) 2021 2020 Discount Rate 1.5% Retall prlce Inllation 3.3% 3.2Vo Consumer price infiation 2.4% Increases to pensionable earnin88 nla Increase8 to pe￿iOnS in payment Earned up to 31 December 2c￿l Eftmed from l Jonuary 2¢X12 to 5 Apr& 2LK15 Eamed from 6April 2005 s.￿0 3.zoh 3.3% 2.5% Pre-reiirement Increases for deferred pensio Earned before 6 June 2009 Eamed from 6 June 2009 2.5% 2.4¥0 R•¢ondllAtlon of funded Jtatul to b•]ne th••t £'ooo {75,661) 49.243 E'OOO 169.2091 43.090 Present value of liabilibès Fair value of plan &￿e¢S Deficit {28,419) 126,1191 AJ••t• 2021 Wdght 2020 £'ooo Wei8ht Bquities Bonds Cash Ihnduding dfvidend8 receivaEAel 29,211 18,776 1,255 23,625 18,161 1.304 54,8 42.2 Totsi m¥rkrf v8iue ofassets 49.242 100.0 43,090 ioo.o Page 52

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOUDATED AccoufTfs {COFrnNUED) FOR THE YEAR ENDED 31 JANUARY 2021 33. PENSION SCHEMES (witioued) 2021 £'oDo 2020 £'ooo ar• as follows: Interest e￿ellSe Interest income 1,237 1798) 1.619 11.0381 Penlion Finance dw8e 439 581 Employerfs deficit contributions (3,443) 13.368) Defined Benefit PenBion Adiustinent (3.443 13.3681 Changej In th• pr•Mnt v•lu• ot the Dellned B•n•fit ObJl¥adon (DBO) duTID8 th• yoAr are a• follow•: Year endin8 31 January: 2021 £'ooo 2020 £'ooo Present value of the liabilitse8 as at the start of ye•r Current service cost Contributlofts by ihe membtr8 Interest expenle Past seNice co8t meA8urement- effect ofexperSence adjustment$10s1 Re-meAsurement- effect of chan8es in assumptions 1088118ainl Benefits pald 5B,348 1,237 1,619 1,192 9.073 11.0231 6,181 1924) Present vahk of the li4bilttie$ a$ at the end of year 75,661 69.209 Year ending 31 January. 2021 £'ooo 2020 £'ooo Falr value of plon assets a$ at Slart of year Interest income Re.mea8urement- retum on plan assets exc]uthn8 interEst incoTne EmployeVB norma] contributiot]8 Employer's deficit eontributions Contributions by the ￿eM￿r$ Benefits paid 43,090 35.886 1.038 3,821 2.835 3.443 3.368 (924) 11.0231 Fair value ofpkn assets as at end of year 49342 43,090 Actual return on plan assets gain/O0&8) 3,633 4.859 Page 53

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED AccouKfs (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 33. PENSION SCHEMES {conlinued) Based on current pensionable eamings and the deficit recovery plan agreed in 2019, the employer's deficit recovery contributions expected to be paid to the Stheme for the year ending 31 January 2022 amounts to £3,489.00012020.. £3.450.0001. A8 at 31 January. 2021 2020 £'ooo 2019 £'o 2018 E'OOO 2017 £'ooo Pre8ent vthe ofthe MabllStie Fair va]ue of plan a88ets (75,6611 49,242 {69,2091 43.090 158.3481 35.B86 157.17n 35,986 154.7801 32.789 DeAdt 126,419) {26.119) {22.4621 121,1911 {21.9911 measurement- Effect of experience adjustment on scheme ]i4bUldes gaSn/Q08s} {1,1921 1181 (1471 930 Re-mea8urement- Effert of change in assumption on scheme liabllits'es 88inlllossl 16,181) {9.0731 330 {8791 {11.0411 RerymeaMrement- Return on pl asset& exeludJ'n8 interest income g41rt1110881 2.835 3,821 11.5481 1.344 1,872 FRS102 adjustment (3.304) 16.4441 11,2361 318 18,2391 Volatlllty of FRS102 The results di8dosed above are inherendy volatlle. 18 because the liabilitses have been calculated by daseounting the benefits using the yield on a suitable AA-rated cory)orate bond. wherea8 the seheme does not invest solely in high quality CO￿Orate bonds. To that e￿eThI there 18. for FRS102 purposes. a 'mismatch' between the a88ets and liabilities. which means that the assets and liabilities land hence the surplus or deficit) be volatile between different accounting periods, depending on general movements in the maTket. Page 54

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED Accou￿rS (COKllNUED) FOR THE YEAR ENDED 31 JANUARY 2021 34. CHARITY STATEMBrir OF FINANCIAL ACTIVITY (note 33) 2021 £'ooo 2020 £'cKJo Nthes Cbarttrible Aetlvlts: Examination5 Teacher Support Oth•r tr&dth8 *¢thltl•s: Covenant from sub8idi8ry Copyright fees 1Sa49 42 15J49 42 48.163 1.309 378 IAOI 386 203 279 378 39 Other 328 328 TotAI Ineom• 17.446 39 17.486 50.949 Charftabl• A￿1¥￿1 Examinations Teacher Support Seholarshlps Music educatlon {3.4341 191 23.478 231 1,048 244 41,085 431 1.053 382 240 1.048 244 io 11.12 28.438 13.4431 25,ODI 42.951 439 439 581 Total •xp•ndltu 28.436 13.Crf)4) 43,532 Net (lossllgain on inve5unent 17 1971 {97) Isi N•t In¢om• {10.9WI 1661 (8,052) 7.568 Oth•r r•coKntsed gatD•/{1oMu): Actuarial ioss on pen¥lon scheme (￿5$1/881n on forward contrjrt revaluauon 33 13.3041 {3,3041 Iiis) 16.4441 11151 111.1051 I3￿) {fj61 (11,471) 1.435 RECONCtUATION OP FUNDS: Balance brough( forward Total Comp￿henslve income Contribut]"ons to Roy41 kh￿)15 of Mwic 21.832 {11.105 {26,1191 13001 1.559 (1,728) 166) (11,4711 2.437 1.435 15,6001 Ba1￿ce eanl•d forw• 11.727 126,4191 1,493 {13.1￿) 11,7281 Page 55

THE ASSOCIATED BOARD OF THE ROYAL SCHOOIS OF MUSIC NOTES TO THE CONSOLIDATED ACCOUNTS {cowfiNUED) FOR THE YEAR ENDED 31 JANUARY 2021 35. COMPARATIVE GROUP STATEMEtTr OF FINANCIAL AcfiviTY FOR YEAR ENDED 31 JANUARY 2020 Bndowment Fundi 2020 £'ooo INCOME & BNDOWMEITfs FROM: Examina￿0￿$ Teacher Support 48.J63 117 48,163 117 Pubbshing sales 8.240 1,240 210 279 44 13 Othèr T¢)tsl In¢•m• 56.952 57 57,009 BXPENDrruRE ON: ChaTftabl¢ A¢dvlil•• Ex8ml[￿tiOnS Teacher Support Scholarnhips Music educatlon 44.481 439 1.053 377 13,3601 181 14 41,135 431 1,053 382 Publishin8 6.010 6,010 52.360 13.368) 19 49,Qll P•n•lon thwic• eh 581 581 TO1￿ •wdlture 52Jf 12.78n 19 49,592 Nei 8aln/Oossl on Imiestment 151 151 Net IDeonw/(expendltur•) 4￿92 2.787 189 7,$68 Other reeogDIMd 8akn•/VoA•e•): Aauarfal loss on pension scheme Gain/(lo￿l on forward contract revthation 16.4441 (8,4441 311 311 Total compr•b•n•tv• kn¢om• 4,903 13.6571 1.435 RECONCIUATION OF FUNDS: Ba]anee brought foTward Total COTnprehensive ineome Contributtons to Royal Schoo]5 of M￿le 23.540 4,SX13 15.6C¥)I 122.4621 13.6571 1,370 13,1521 1.435 15,6001 22,843 126.1191 1,559 11,7171 Pag6 56

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOUDATED AccouKfs (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 36. COMPARATIVE GROUP ANALYSIS OF BXPENDrruRE FOR YEAR BNDED 31 JANUARY 2020 Clwitable £'ooo 2020 £'ooo £'ooo £'ooo £'ooo Charitable •¢dvities: 23,824 9.487 290 7.427 127 397 41.135 431 1,053 382 6,010 Teacher Support Scholarship pwents Mu8ie education Publi8hmg 1.053 377 2.833 2.259 37 28.096 10.658 9.818 439 49,011 581 681 Tatal 28.096 10.658 10.399 439 49,592 37. COMPARATIVB GROUP AIIALYSIS OF SUPPORT COSTS FOR YBAR BNDBD 31 JANUARY 2020 Total 2020 £'ooo Support Exarn Support IT induding software development Saies and Mw*e¢in8 Finance Fad]Stle8 Governance HR & other management 1.181 3,932 26 236 316 162 4.274 1,347 140 2,002 215 1.499 137 1.807 199 1.282 24 171 16 213 9.487 290 10,658 Page 57

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTES TO THE CONSOLIDATED Accouwrs (CO￿rINuED) FOR THE YEAR ENDED 31 JANUARY 2021 38. COMPARATIVE MOVEMENT OF ENDOWmEr￿ FUNDS FOR YEAR ENDED 31 JANUARY 2020 At I Inw>me and Exp•ndltur• At31 Febrnary and lo￿ti January 2019 2020 £'ooo Group and cbaTIty Sheila Mossman Ptize account Ralph Bassett Pri7£ account Constance Haddon Prize account Winifred Liversidge ￿11* account Irene Lassen Bequest Weinman/Durai88my Prize Sundry named prizes and general pme8 aceount 129 97 17 14 21 16 59 121 144 iii 127 128 468 121 113 409 260 36 121 294 1,120 164 17} 1,277 Bxpendabl• prlze endowment fund• Jardine Mathe8on Mu&c scholarships Gordon Bryan Fund Alan Pickard Prize Taylor White Gibb8 Piize 14) 13 ioi 25 156 22 139 20 13) 250 39 17) 282 Total •ndowment fund• 1.370 203 114) 1,559 Interest recelvable New prize donation Expenditure on prizes Unrealiged gain on investments 44 114} 151 203 114) Page 58

THE AssoaATED BOARD OF THE ROYAL SCHOOIS OF MUSIC NOTES TO THE CONSOUDATED AccouKfs (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 39. COMPARATIVE MOVBMEPTf OF UNRESTRicfED FUIIDS FOR YEAR ENDED 31 JANUARY 2020 2019 2020 £'ooo £'ooo £'ooo £'ooo 8.458 13.08n 1.5fXI 6,871 15.082 57,263 {49,273) 11,500) {5,6001 15,972 Tc441 23,540 57.263 {52.3601 15.6001 22,843 Develop]Deni 8.458 (3.08n 1.500 6,871 IS.071 51.203 143,213) 11.5ty)) (5,eKJo} 15.961 Total 23.529 51.203 46.300 5,600 Page 59

THE ASSOCIATED BOARD OF THE ROYAL SCHOOLS OF MUSIC NOTBS TO THE CONSOLIDATED AccouKfs (COWnNUED) FOR THE YEAR ENDED 31 JANUARY 2021 COMPARATIVE ANALYSIS OF pirr Assrrs BFfwEEN FUNDS FOR YEAR ENDED 31 JANUARY 2020 Total 2020 Fund8 {Includthz Pension RMerv¢) Bndowm¢n¢ £'ooo E'ooo Group Tangible assets Investments Current assets Current liabi]ities Non-current ]labilide$ Pmvi8ion8 2.290 2,290 1,433 30,301 18.370) {498) {754) 1,433 132 (61 30.169 18,364} 1498} 1754} Net a88ets before pen8ion deficit Pension deficit 22.843 126,119} 1,559 24,402 (26.119) Tota] net Oiabllitiesl/assets after pension deficit & provisions 13.276) 1.559 (1,717) Tangible assets Investments Current assets Current liabiiities Non-eutrent liabilities Provisions 2.290 782 28.932 17.920} 1498) {754} 2,290 2,215 29,064 (7,926) (498) {754) 1,433 E32 {61 Net 488ets before pension deflcit & provi8ion8 Pension deficit 22.832 1,559 24,391 126.119) (26,119) Tota] net Iliabllitiesllassets after pension deficit & provisions (3.287) 1.559 (1,728) Group and Clwlty Unreali5ed 8ain5 included above on investment assets (see note below) 778 778 Unrealised gains a8 at l February 2019 Net galn/Uo8sI arising from revaluations in the year 627 027 151 151 Unrealised gain8 as at 31 January 2020 778 778 Page 60