2021-02-28-accounts

YHA {England and Wales) Financial statements For the year ended 28 February 2021

Company registration number: 282555 Charity registration number: 306122

Registered office: Trevelyan House Dimple Road Matlock Derbyshire DE4 3YH

Do￿8￿n Envekpe ID.. 41E9F63F4281450F-9941-8225652C6D90 YHA {England and Wales) Finaneial $tatements for thè y•ar ended 28 February 2021 Index Report of the Trustees Incorporatlng the Slrdteglc Report 1-22 Indepèndent auditorfs report 23-27 Consolldated slaternent of Ilnanclal activities 28 Balance sheets 29 Consolidated statement of cash flows 30 Notes to the flnanclal statements 31-54

Docusign En¥eW10." 41EgF83F4281450F-9941422S652(*L190 YNA (England and Wales) Flnan¢ial stat•m•nts for tho year •nded 28 Febnwy 2021 Report of the Trustees incorporating the Strategic Report The Trustees, who are also Directors of YHA (England and Wales) fYHA'), present their report together with financial Statements for the year erKied 28th Fe￿ry 2021. The COVID-19 crisis began at the start of this reporting period and has had a rnajor impaot on the rinances of the charity. However. the Trustees are confident that the undertyng strength of the organisation and the proaclive actions taken during the year on costs and liquidity, means we are well placed lo weather this orwJoing pandemic and remain fcawed C￿ the delNery of our 10-year strategy. That Strategy 'Advenlure- For the first time and a lrfetime. was signed off by the YHA Board in February 2020 and combines five impact priortties wilh five enabling pri￿11•eS t￿ we need to deliver our ambitions for increased reach. income and diversity. Those priorities have been ￿VieWed by the 8owd in the light of the COVID-19 crisis and whilst the current financial implications will impact on the speed and scale of implementation. the impact priorities remain more relevant than ever as we emerge fr(￿n restr￿￿On$. Ahead of the erisis. the year ended 29th February 2020 was our best ever year for lumover. We also reached over 1 million people. over 400,000 of whom were children and young people- increase$ of over 5% on the previous year- a major step towards our staled inlenl of being a leading youlh charity. This year was a very dtfferenl picture as our ne1¥￿1￿ of 153 hostel closed on 23rd March in line with the first nalional lockdown. reopening within the constraints of the Govefflmenl widelines on 17th July before entering the second and third lockdowns in November and January. The guidelines in place whilsl we were open did have a major impact on hostels and the number of beds on sale, but we were slill able to welcome 103.536 guests of whom 29.997129%) were children and young people. Financially the pandemic had a huge impact on YHA'S finar￿. with our hostel incc¥ne down c£43m 82% on last yeaf s levels. However, with a coMbinat￿n of central and IcKal cost saving5. maximising the use of Govemment grants and the furfough stheme. finding new sources of income through repurposing hostels and developing fundraising. we were able to offset this by some £32m. meaning that the overall deficit was kmited lo £11 m. ChariLqble objects The principal objective sel out in the Arttcles of AssLKiatK￿ of YHA is lo help all. especially young people of limited means. to 8 greater knovledge. love and care of the counlryst(le and appreciation of the cultural values of towns and Cities. Pa￿.¢￿1a￿Y by provKling Youth Hostels or other aLxommodalion for them in. their travels. and thus to promote their health, recreation and edUcat￿n-. Mlssion and W￿l￿n The COVIO-19 crisis has put into sharp focu5 peo￿,5 need connectedness- with other people and places. with nature. the outdoors. cumure and heritage. YHA'S vision and mission highlighls Ihe unique contribution the organisation can make to the recovery of society and lo the common good. Our Vlsion: Everyone has access to the benefits of adventure. for the first time and a lrfetime. By 2030. every child 15 able lo slay away from home. to travel. experience adventure and access OLrtdoors. nature. culture and heritage. YHA will work with others to end the inequalily that means some children have never been to a beach. visited a museum or rOl￿d down a hill. Our Mission: To enrich the lives of all. espeaally young people. by FKoviding btilliant hostel stays and experiences that improve physical health. menlal wellbeing and lrfe skills.

DooJSign Envew ID.. 41E9F63F4281450F.9941.8225652¢6D9D YHA (England and Wales) Flnancial statement$ for the year •nd•d 28 Febvyary 2021 Report of the Trustees incorporating the Strategic Report Publlc bweflt $tatom•Trt Our Trustees give careful consideratitin to the Chartty Commission's general guidance on public ￿nefIt during our planning pr￿esseS and delivery of our work. As a leading youth charity, YHA'S pury)ose is to harness the transformative power of travel. adventure. and discovery for young people. It seeks lo create an environment that offer5 everyone oppcftunities lo explore, leam. shwe arKJ grow. in ways which are appropriate lo their characteristics and circumstances. YHA is sel up to provide inspiring optmxtunities for ￿ng people wth prinupal belief that where you go changes who you become. We recc4Jnise the importance of affordable travel to Lwinect people to outdoors. nature. heritage and Culture. With miye than 150 Iccations ￿OUghoUt England and Wales, YHA offers a unique range of affordable and accessible 8ecommodation. including hostels. cafflping and cabins in rural, coastal aThJ crty locations. often benefitting from spectacular buildiNJs or scenery. In a normal year YHA encourages people lo get involved Ihrough staying in one of ils locations, on 8 school trip. a summer camp. as individuals or families. and through work experiences, volunteering. dwaling, or tsking part in one of YHA'S challenge events like the London Marathon. Last year our ability lo deliver these benefits was severely ccwnpromised by the COVID-19 crisis. Whllsl we chose to reopen as muth of the nelwork as possible. the restrictions in place meant we had just under 30,000 young people stsying ￿￿th us instead of over 400.000 in 2019-2020. Instead of over a million . people staying ovemighl wth many using us as a base for day aclivtties. walks and exploration. we managed to accommodate just over 1￿.0￿. With the entire hostel neiwork dosed for recreational use on 23rd March, a specialist reservations task force was sel up lo find ways to repurpose our hostels lo assist the national effort lo support key workers. NHS staff and vulnerable people. Wilh recreational slays prohibited. repurposing offered YHA an opportunity lo make an impact. Across the organisation. we eonsidered where the n8ts¥ork could best support the needs of communities. Early on, we identified homeless people and women experiencing domestic abuse as people to whom we could offer real support and over the course of the year 47 of our hostels were repurposed at various times supprKting 650 vUl￿able people with c.47.000 ovemight stsys. With in-person opportunities impx)ssible durir4J periods of Icrkd(ywn. the charity found new ways to engage young people with volunteering. A partnership belween W8th8m Forest College and YHA has helped 38 first year travel and tourism sludents gain vttal work experience over lockdown. The students set up their own YHA-focussed Instagram account to raise awareness of YHA amongst their peers. They also acled as secret shoppers. testing the website for ease of use and bc#)king. Prior to the pandemic. more than 1.000 young people a year volunteered in YHA hostels in order to learn new skills, boost their Cvs, give something back and travel. To support young people to complete their Duke of Edinburgh Award during COVID-19. YHA has launched a number of virtual volunteering opportunities with roles in fundraising. videography, and scoal media. So far. over 100 DofE vdunteers have completed or are completing projects induding a 100-mile fundraising walk, a sponsored week of chores, a chartty Twitch stream, and a TikTok video review of YHA hostels. We were delighted towards the end of the year that Access Unlimited- the eoalition of leading not for profrt national outdoor residential charities which we lead - was successful in its bid for a £2.5m grant to the Government's Green Recovery Challenge Fund. This bid has allowed us lo develop exciting plans for the 'Generalion Green. programme Ythich wll See us increasirMJ our reach lo more disadvantaged young people. including through residential stays. volunteering and employThent opportunities.

D￿usign Envelope ID.. 41E9F63F<2814￿F.9941-822￿2cGD￿) YHA (England and Wales) F•nancial slatemènts lor the year enthd 28 Felvuary 2021 Report of the Trustees incorporating the Strategic Report More detail on the positive difference YHA makes. especially to the lives of young people. is regularly updated on the impact pages of the YHA website. We published our annual Impact Report covering the pre pandemic year lo coincrde with our first virtual AGM hekl in November 2020. In addition, in March 2021 we published 'COVID stories" which chronicles YHA'S joumey from March 2020 to February 2021 and Ihe contribution that YHA made to swely through a devaslating year. STRATEGIC REPORT Stratoglc invlew Going into this year our new 11kyear Strategy set dear p¥ioribes fcf the ¢)rganisation. Our Strategic Priorities Impact priorities Our top priority is lo ensure that all means all. increasing the scale and breadth of our reach and ensuring that YHA is for everyone- we will promote social inclusion and equity of access with a particular focus on young people under 26 and by proactively targeting our efforts on those with challenging lives. We will increase accoss to stays away from home and improvo conneclions lo nature, outdoors. heritage and culture- reCcgnl￿rwj that ow Iwtel neiwork provrdes unique oppcytunilies for the many not jusl the few. We will improve physical and mental wellbeing by providiro actNitses and programmes and by 5UPPOrting people lo tske their own aclion using our hostels as a base - b)th through overnight stsys and as part of day visits. Wo will develop life skills and efflployability through the development of the YHA Campus and YHA Curriculum: for our staff. volunteer5. and the young people that we work wth. We will conlribute to social cohesion. We will encourage drfferenl sectors of the Community who visit us both overnight and for day vi911s- to leam from and with each olher. We are parl of the sharing economy. We wll make best use of our places and spaces. and our activities programme, to make stronger links lo local communilies. Enabllng prlorltles Malntaln a viable network of quality hostels- places arKI spaces- that matthes our stralegic ambitions. Deliver against a framework of industry slandard benchmarks Ihal draws on Ihe best quality models across charity, social enterprise. hospitality and ￿ with young people. Work ￿1h transparency and with a focus on the experiences of our users- excelling in both digital and offline services. Support growth by continuing to generate an annual cash surplus that supports our strategic intent, based on social enterprise principles. Recognise that the risks to the envifonmenl and lo the W￿ld and its population are a real and immediate threat by connecting people lo nature. We will set a strong example- in how we use our assets and through our work wth partners wè w511 hèlp to Improve the envimnment. 10. Build support for the hostelling cause- drawing on Iwr 9(kyear history to establish the importance of hostelling for all today.. growng both the numbers of members bul also how many members are active with YHA and leading the movement f(Y those who supt•M hostelling as a route to affordable Iravel and adventrjre.

DotyJSvJn Envebpe ID.. 41EgF63Fffj281-450F.9941.W225652C6D9D YMA {England and Wales> Flnafi¢lal statements for the year ended 28 Fetswary 2021 Report of the Trustees incorporating the Strategic Report Bu$lnesslOporatlng Plan 2020123 Previously YHA has developed agreed a new Business Plan every three years, and a separate one year Operating Plan every year. Mowng forward these wll be combined into one Businessloperating plan that is reviewed aThJ rolled forward annually, to aid agile planning. G￿ng into the year we planned a series of workstreams that were set to be delivered over the next three years, complete with more specific and detailed quartedy milestones for the forthcoming financ¢al year. with each project being linked lo the 10 key stralegK priorities. Scale We ￿11 increase our focus on how groups can use our hostels- particularfy schools and youth groups bul also communities, groups of friends and Ihose wanting to hire out entire hostels. We will develop our capital stralegy to continue lo ensure we have the right hostels. in the right places to the right standards. We will consider all of our potential income streams and ensure we have the best mix for a modem charity and thriving swal enterprise. We will use oyr 90th Anniversary and launth of our 2021>2025 Strategy to reach new audiences, partners and profile. Access We will diversify our governance. staff and users with an early frxus on youth engagemenl and better understanding our C￿￿ent demographu. We will priorilise our user experience including lth)king at every stage of the user joumey. We will increasingly I￿k at how we use our hostels for both day visits and as part of their local community. We will develop our Fffofile. presence arKI relationships in Wales. We will develop new prwammes aimed at speofie audiences including those wth the most challenging lives. Depth We wll develop our member offer to encoJrage members to be even invofved ￿th YHA at every level. We wll better understand our eslate aThY - while maintaining charity wKJe standards- look al how we can make the most of each hostel's unique Characterist￿S. We wll eonlinue investment in IT and digitsl serviees wrth a parti¢ular fo¢us on how these impacts on user experience and a lrfelong joumey with YHA. Quality We are developing our programme offer- continuing to te the leading residential provider and offering an irueasing range of high-quality activities that connect people to nature and outdo(Ks. cutture and heritage. We will develop the YHA Campus Currtculum- expanding our volunteering offer and working lo provide new work expertences. intemships and routes to employrnent. We wll develop and deliver a quality framework that draws on our hospitalty excellenee and benchmarks us against the best in the charity and hospilalily sectors. These plarts were immediately rewsiled at the start of the Cov1￿19 crisis and targets reset againsl these priwilies. The cor8 of our plans were disti1￿ to two key areas Reboot and Renew. Reboot was. al ils simplest fom. how (lo we go from a ck)sed network to reopen accommodation and activities, and having an impact again. in the safest pjssible way in the new climate. The Govemmenl indKaed the hospitality sector was exFecled to reopen from 4th July. As a charity with a duty of care to our supwters, benef￿larleS, staff and partners, the situation compelled YHA lo progress with caulbon and careful conwderalion- guarding against financial and reputatbonal k)ss.

Do¢uSwJn En¥ebFe ID." 41E9F63F-6281450F.9941-B22￿52C6DgO YHA (England antt Wales) Financlal statement5 Igr the year •nded 28 F•bNwy 2021 Report of the Trustees incorporating the Strategic Report In order to reopen. the executive set rigyous criteria. So long as the Govemment maintained that hoslels could reopen, they would but only rf.. we were confident we could reopen safely. the public and our partners in the communth'es we are loeated were supwtive. we C(￿Id do so viably in a way that safeguards the charity for the future. On 17th July, we began a phased reopening of selected prOpe￿e$. This was a mix of 34 hostels open for the sale of private rooms rx Mtemalive AccommodatK)n (camping, cabins} and the remainder available for Exclusive Hire. Sadly. Government guidance prevented the re-opening of dorni room5 or social spaces such a5 seff-catering kitchens- unique arKI fundamental features of the hoslelling experience. This meant many more hostels than usual could only open viably on the basis of Exdusive Hire, and at various times 47 of our hosteL8 remained closed to SUPFQrt vulnerable people and accomrnL%Jate key workers. Nolwilhslanding this focus on reopening. we were still able to prThJress key projects within the original plan, including establishing YHA'S first Youth Adviscry Team with the objective of strengthening youThJ people's voices in YHA decision making and govemance.. introducing an increased focused on lived experience in our Trustee recruitment wocess.. developing work on Campus and Curriculum including new apprentice and volunteering roles and a new partnership with Kickslart,. and progressing our emergent Wales strategy includir*J securing funding fLY a Wales devebpment role. The Renew programme began ￿ November 2020 and will run through 2021 and beyond. It is a programme of activity to enable YHA to recover from the pandemic in the best possible shape to deliver its rnission and strategy in the years lo come- the aim. lo ensure YHA'S future prosperrty. 11 incorpordtes YHA'S revised Business and OperatirwJ Plan, ￿tyth a one-year plan agreed for the 2021-22 year. During 2020-21 programme activity was pri￿pallY focussed on work planning. Detail around what the programme invofves is outlined in the future plans section of Ihis report. Perforni•nce review 2021 £ milllon 2020 £ million 2019 £ million 2018 £ mill￿n Hostel revenues Hostel direct costs Hostel surplus Membership and fundraising income Non hostel Costs (Der￿llySurpIuS before maintenance and investment Current year maintenance and inveslment Loan repayment and interest on prewous investment Operating (deficltysurplus 13.6 114.4) {0.8} 49.4 132.91 16.5 49.4 132.2} 17.2 135.31 16.7 (8.4} (10.4) (10.11 19.71 (5.9) 3.71 16.0) 14.4} 14.31 (11.0 The fomiat of the atxjve operating ststement is presented in line YHA'S inlemal management accounts. The reFKJrting highlights the operating cash {def￿ltYsurplus generaled in a normal trading year to fund ongoing maintenance arHI investment in the hostel network. A reconciliation io the result shown in the slalemenl of financial acttvilies which include nork-cash items such as depreciation. is shown on the next page. The impact of the COVltk19 crisis is dear. Revenues of £13.6m V•ere 74% less than previous yearfs trading. This figure would have been worse rf not for the £3.1m of incc¥ne from Ihe repurposing of our hostels and £1.5m from the Local Aulh¢xity grants avaikble.

Do￿sign Envewe ID.. 41E9F63F-6281-450F-9941-B22S652C6090 YHA IEn9land and Wales) Financial statements for the ended 28 FebnMry 2021 Report of the Trustees incorporating the Strategic Report The fact that Ihis £38.4m reduction in ir￿8 only resulted in a £11.Om operating deficit is testament to the work of the or9anisation lo maximise available funding and grants whilst at the same time cutting costs wherever possible. In dO￿g this we also had to maintsin erKwh of our core infrastrudurg to ensu￿ that the tharity can continue to deliver ils strategy on a relum to rnore norm81 trading condition5. So. whilst the governments furlough scheme hel￿d us retsin many more people than we otherwise might have been able lo. we sadly lost 380 colleagues with eight volunlary redundancies. The vast maI￿lty of these were seasonal conlra¢ls in the hostel but the totsl also includgs some pe￿anent posts as we loc& to gear the organis81ion for the future. Our fundraising team had a parbcular busy year and net inc(The was up £0.6m (22Vo) on last year's record levels. The trading results sel out on the premous page. reconcle to the results reported in the Statement of Financial Activities (SOFA). as follows.. 2021 £ million 2020 £ mill)n 2019 £ million 2018 £ million Nel surplus per management accounts Loan repayments Capital investments Depreciation Profit on propety sales after re-organ1sat￿n ¢osl$ Capital grants Non trading items" Non actuarial pensi¢)n and investment movement Operating staternent (defi¢itysurplus (11.0) (5.1) 02 (5.41 (4.9} 14.7} (0.1} {0.31 (0.1) {0.1) (14.3) {1.31 {0.1) on tr8diNJ items lA￿deS ehges r￿￿tif¥} lo refinwvry 2021 {£0.1m}20201£O.&nl 20191£0.2ml 20181£0.2ml. Cov1￿19 and going concern These accounts Cover the trading period from 1st March 2020 to 28th February 2021 and as such were impacted by the COVID-19 restrictions from their irrtroductk?n in Marth, Ihrough their easing in the summer, before their re-lntrLxlucli￿ al the end of the year. Even when we were able to open. the reStricti(￿S on the use of shared facilities, intemational quarantine requirements and the embargo on school group visits adversety impacted on the charity through reduced business levels. In last yearfs financial statements. we noted that Ihe adverse impacts of the pandemic on the charity were likely to continue into 2021 in the absence ol a rapid successful vaccination programme. It is now clear that those impacts will continue into 2021-22. The financial resilience built up weviousty by YHA enabled Ihe charity to progress through the inltial 2020 shutdown period utilising the existing bankiThJ facilities wrth HSBC. In July 2020 we were able to access £15m of funding from the Coronavirus Large 8usiness Interruption Loan Scheme ("CLBILS"I via HSBC. This loan 5upporled our short-tem cash requirements over the winter period and provided protection for YHA from a further sustained material downtum in demaThJ as a resuft of ongoing restrictions over an additional 12-monlh period. The CLBILS funding continues to provide prolection from the restrictions still in place. wllh £6.Om remaining undrawn to prowde protection over the winter of 2021122. Further liquidity has been added in May 2021 through the sale of our Cardiff Hostel. This hostel had been repurposed during the pandemi¢ lo provide Cardrff Council with accommodati￿ for the homeless and tb saie to them wll allow this to

tk)ryJSigfb Envelope ID.. 41E9F63F4281450F-9941-8225652C6 YHA (England and Wal85) Financial statements lor the yw ended 28 Felwuary 2021 Report of the Trustees incorporating the Strategic Report ontinue as well as releasing ¢ash for YHA. We are &tNely cl￿sIderi￿j options for further hostel sales should furthw cash headroom be needed. Discussions are well advanced with HSBC f￿ a tw(pyear extension to our extsting &year facility which is due lo end on 24th November 2021. At the time of signing of these accounts draft Heads of Terms have been exchanged and formal uedil approval has been requested, although no final decision by the bank has been made. In this context. these fina￿la1 slalements have been prepared C￿ a going concem basis takirMJ note of the guidance issued by the Financial ReportiThJ Council on Going Concern Assessfflents in determining that this is an appropriate basis of preparation of the financial statements. The Trustees have reviewed forecasts to July 2022 as well as our longer-term projections lo February. 2024. Worst case scenarios were modelled based on likely levels of pandemic resiriclions and. taking these into account. il was cortluded ttt the Charity wll be able to meet its liabililies as they fall due over the period. Notwithstanding this positive indution of Ihe financial stability of the charity and the progress made on vaecinalions there remains a scenario in which there are further prolonged Covhd-19 lockdowns. It is also possible, though unlikely, that HSBC will withdraw Credit apwoval before a formal agreement is signed. In either of Ihese circumstance that would represent a malerial uncgrtainty which cast doubt on the cofflpan￿s ability lo continu8 a5 a going concem. Nonetheless the Trustees expect that YHA has sufficient resources lo enable rt lo continue lo adopl the going concern basis in preparing the financial statements. These finarKial statements do not include any orjjustsnenl that woukl arise if the going Con￿rn basis of preparation was not considered appropriate. Future plan$ YHA Strat•glc and Busln•ss Plans A5 noted previously in this report. the Renew programme began in November 2020 and will run through 2021 and beyond. 11 is a programme of actwity to enable YHA lo recover from the pandemic in the best possible shape to deliver ils mission and strategy in Ihe years to come- the aim. to ensure YHA'5 future prosperity and to maximise its impad. Renew brings together a numtr of key streams. struclured around f(wr key themes, 5UPPOrted by projects building strorKJ foundations and impact enablers the organisation. With the ongoing pandemic we have had to priontise thgse carefully lo ensure that we can deliver these within the reduced resources we have available.

DD￿&.gn Envewe ID.. 41E9F63F428145OF-9941-B225652C6￿n YHA (Enyland and Wales) Flthanclal statements for thè year ended 28 FebrnBry 2021 Report of the Trustees incorporating the Strategic Report We have also set clear KPI'S lo measure progress against our plan. Targets for 2021122 have been reduced to reflect the ongoing Cov1￿19 restrictions. Target over S years KPI Ihllvering YHA object Target for 2021R2 No. of p8oplo Staying at YHA ovemight Those who stay wth us, beneffit from our provisi￿ and support. our employees and vdunteers, refied th¢ demogrWic$ of England artd Wales) 5,000,1)00 430.oc YHA is for all KPI wll bè developed over 2021r22 Baseline data collection in pro9ress No. ol youro people stsying at YHA . ovemight No. ol young people tmth chalkngiTrJ Iivos stsyiThJ at YHA ovemvJht No. of Sch￿lS from d8PIiV8d ar•as slaying or training young peO￿e vAth YHA Especially Yw Paq>lt 2.500,IX 150,C(rf) 250,000 15,000 Of liM￿le￿ means KPI will be develo￿ t)ver 2021122 Number ofYP accessing an ad￿ntUre or èyrwct YHA Iduftng stay) Linked to G￿ratitsn G￿n Project for 2021122 To a grèatèr knovAedge. love and care ol the countryside and appreciab.on ol Ihè t￿lI￿ra1 values ol tovms and Targets outlined in funding bid NuTnber of ￿0P1¢ vtho say th¥1 they accèssed natur•, Out￿¢￿. cumure and hen.lage as part of their slay Linked to General￿n Green Project for 2021122 Pa￿"¢u1a[ty by providir4J hostels or other Simple omrn¢yJ31KJn for them in their travels 90% of all opon hostels Customer Sab's￿tIon At least in every hostel score of at ￿8St 90% No of people linduding YC￿[n9 peoplg) expertence a FX)Sitive impact c hèalth. ￿lIbeing a5 a resuli of YHA Linked to Generation Green Project for 2027122 Ant1 thus Fffomote their health, rest a)d ÈdutAtion Targeis outlined in f￿dIng bid In addition, from a govemance and complk4nce perspecb've the Board and its committees ￿111 receive regular reports covering the following key areas.. Financial performance Carbon use Loan covenant comphanee Reportable incidents Employee engagement Rlsk Review YHA seeks to embed risk management into day to day working praelices. Leading this is the idenlificalion and Irealmenl of Ihe key organisab'onal risks. which comes lo the 808rd for fomal rewew once a year and is tabled at each meeting of the Audit and Risk Commtttee. More detailed risk registers are also prepared. for example on COVID, Brexil and for more Spe￿ risks facirMJ irKINidual departments.

DctuSvJn Énv8lJpe ID.. 41E9F63F-6281450F-99414225652C6D90 YHA (Englafvd and Wales) Flnan¢l•l $t•temwts f•r the yew ended 28 F•￿ry 2021 Report of the Trustees incorporating the Strategic Report The key organisalional risks are reported to Ihe Febmary Board meelirNJ. This year th& report identified a total of 15 key risks. Post miligalion there are Ihree very high risks, 11 rnedium I￿S and one low risk. High Risks Ongoing impact of global Pandemic YHA is unable to fund oThJoing working ¢apital requirements with no available cash or loan headroom YHA unable lo fund its long-temi capitsl needs Medium Risks Undeferrable complkince works and costs are required lo be completed in 2021 putting pressure on already restricted budgets Lack of investment in YHA nelwork and irrfrastruthre Jeads to degradation of quality of prcrfjucts and offering over the nexl two years Failure to deliver the 10-year strdtegy Lack of capacity wthin teams lo deliver priority wojects within the operaling plan Work related stress or mental health impacts on YHA employees and Trustees Non-compliance wilh legislatTron both cu￿ent and upcoming Inadequale or ineffective safeguarding poI￿Y or practice resulting in or contributing to serious harm lo a young person Failure to protect YHA from major ¢￿)er security attacks YHA is unable lo deliver targeted cost savings Change of OTganisaltonal slruclure adversely affects capacity and momentum Failure to deliver on key funded projects Low Risks Fatality due lo failure of YHA operatK)nal arrangements Streamlined eneryy and earbon Yeportln9 fsECR We are ccnmitted to developiTh3 PX¢lithes and initiatives to support Ihe reductim of greenhouse g8S emissions. Energy efficiency and envhronmental sustainability are considered in all our activities and sustainability is a key part of our 10-year Strategy. Methodology The report follows the GHG Retxyting FbIC￿l- Corporate Standard. as the accepted methodology to meet the mandatory SECR requirements. Energy and GHG emissions are reported from our hostels and central office buildings and this indudes 8￿CItY. nalural gas. healing oil. and business travel in company-owned cars. The figures below detail the regLblaled SECR energy and GHG emission sol￿ces from the current rewrting period. As this is the first year of reporting. no comparison lo previous years is 8vailablg. The 2020 UK Government's Greellhou5e gas conversion factors have been used lo calculate the carbon emissions. We have used the inwme from thitable and trading activities lo calculate the intensity ratio. Year ended 28 February 2021 Energy Ernissfjons kwh tCo2 Scope 1 omissions Natural Gas Heating Qil Company Vehicles Scope 2 emlsslons Electricity Tolal Energy and SECR emissions 8,781,239 5.102,036 224,139 1.615 1,202 56 5.178.335 19,285,749 1,207 4,080 Intensity ratio: tCo2e per £m of incomè from charitabl* actlvltles 302

DocJJSign En¥ek)pe ID.. 41E9F63F4281450F-g941-B225552C6D9D YHA (England awl Wales) Finan¢lal statements lor the year ended 28 Felwry 2021 10 Report of the Trustees incorporating the Strategic Report GOVERNANCE AND ADMINISTRATION Board ¢>f Twslees Oryanisation The B08rd of Trustees has overall resrxmsibility for tt)e work of YHA, setting strategy, direction and tsrgets. During 2020121 the Board met nine tirne5- more than a norrnal year refiecling the need for close B08rd scrutiny of YHA'S approach to managing through Ihe COVID pandemic. The Board has appointed a number of committees consisting of certain Trustees. As at the date of this report. the following are the principal comrnittees-. the Audrt and Risk Committee I'ARC')- the Finance Committee I"FC'I'. the Impact and En9agemenl Committee {'I&E"): and the People and Remuneration Committee ('PremCo"l. With effeet from the 3rd April 2020. the Board appointed an Emergency Committee to eonsider urgent matters during the Coronavirus pandemic. The members of the Emergency Committee are the Chair. Vice Chair, Treasurer and the Chairs of I&E and Premco. The Board delegates day to day management to the Chief Ex￿j1[Ve and Execuilve Team. The Board of Trustees ha5 up lo 15 member5 and may co￿p1 a further two. None of the Executive, including the Chief Executive, are members of the Board. The tenure on the Board is a maximum of two, four-year terms. This may be extended rf tsking up a National Officer p0S￿on. All the Trustees are unpatd volunteers recruited from the wider YHA membership. Wilh effect from 2019, the vole lor the eleclion of Trustees was widened to all Assock8tKJn Members. That vole was held online in advar￿e of the 2020 AGM with the result announced al the meeting. Barbara Kasumu and Fiona Steggles were re-elected to the Board for a further temi and Clare Fordham Was appointed as a Trustee for an initial term of four years al the AGM on 71h November 2020. Tegryn Jones and Caleb Stevens vme c(wiled as members of Ihe Board from Ihe conclusKJn of the 2020 AGM both for a one-year terrn. Phil Bale st(MyJ down as a co-opted member of th8 Board al the end ofthe 2020 AGM. Pr•n¢iples of governance With regard to governance, YHA supports the prir￿1p1eS of gcKMY governance set out in Ihe Charrty G0veMan￿ Code for larger charities and the conlinuous improvement model that it promotes. DurirvJ 2020, YHA continued lo prcJress actions lo enh8nee complkqnce with the provisions of the Code. In addition. Russell-cooke Solicilors had undertaken an exlemal govemance review in 2018 which focussed on three key se¢lions of the Code for larger charities.. Purpose., Decision Making.. and Board Effectiveness. The results of both reviews vRre wtive. and action is or4Joing in those areas identified for improvements. Russell-cojke have been engaged to undertake a further extemal govemarKe review in 2021, focusing on two more areas of the Charity Governance Co(le- Integrity and Equality, Diversily and Inclusion. During the year the Chair held annual trustee reVIe￿ to discuss the board's own performance and that of individual trustees. The Vice-chair held a ￿fOrniance review of the Cha￿.

Do¢uSi9n En¥eloFe ID.. 41E9F63F42814S0F-9941.B225652C6D9D YNA (England and Wal$) Flnan¢lal $t•tement¥ lay the y•ar ended 28 Fetsn￿ry 2021 11 Report of the Trustees incorporating the Strategic Report Tra•nlng All new Trustees attend an appropriate induction course. During the pandemic Ihis was pres8nted virtually. The training is based on the guidelines set dovm by the National Council for Voluntary Organisations {NCVO} and covers.. Govem8nce- the role and resFonsibilily of Trustees. wVeMar￿ struclure and ref(￿. ArtiGles of Association. and key YHA govemance documents. Briefings on key issues currently being discussed by the Board. Meetings wth each member of the Executive Team and their supt)rt staff lo gain an insight into the operatronal areas of the organisats"on. Trustees are Suppl￿ Y￿th a comprehensive manual containing key policies and documents and papers from recent and relevant Board meetings. Trustee5 complete safeguarding training annually and also Up￿ induetM)n. In addition, Board workshops are ongoing after Board meetings fctusing on key themes to suppc trustees in their role. Over 2020 these included= understanding youth voice and participation in th*ity 9ovemance exploring power and privitege in govemance running ouldocy leaming activities for young people Elections to the Board Candidales lo fill vacancies on the Board are proposed by the Nominations Panel INPI. The NP consists of.. an independent Chair a Trustee representative two members elected by and from the Association Membership The Board advises the NP of the skills. knowledge arml experience desirable amcmg new Trustees in order lo achieve a balance of skills and experience in the Board of Truste8S. The NP is tasked with advertising and interviewing potential Trustees wiu) the requirement lo draft a short-lisl of suitable individuals to be included in a vote bearing in mind the skill gaps identified by the Board. From 2019 voting for Trustees has taken place online before the AGM, with Ihe result announced al the meeting. There were three Board Tnjslee vacancies in 2020. 109 people applied to become TnJste8s n 2020 from whom ￿ NP nominaled eight candidates. including two existing trustees. A particular focus this year was to attract more younger candidates to the Board. and we were delighted that 33 candidates were under 26. Of these. three were shortlisted and Caleb Slevens was wpled on lo thg Board. Members ol Ihe Board of Tn•$tws at 28 February 2021 Maryaret Hart, Chalr Margaret Was appointed as a Tnjstee of YHA in 2016 and became )r￿e Chair in 2017 and Chair in 2019. A geographer by background. sh8 has had a long career covering So￿81 work. the children's voluntary sector and higher educatKJn. in roles ranging from front line service delivery and leaching to nat￿nal Director level roles in both the charity and university seclcrfs. An underpinning therne has been her passion for enhancing the lives of young people, particulady those from disadvantaged backgrounds. and she broughl this with her into YHA. together with her love of the outdoors. As Corporate Director for one of Britain's largest children's charthes. Margaret pioneered inrK)vative way5 of involving young people in management and govemance, and is delighted to see the establishment of YHA'S Youth Advisory Team as a ggnfficant step along ourjoumey lo tecoming an increasingly diverse and incltssive organisation.

Do￿&'gn Enveknpelo.. 41E9F63F4281450F-9941-8225652C61)90 YHA (Enyland and Wales Finan¢i¥l statements for thè year ended 28 Felwuary 2021 12 Report of the Trustees incorporating the Strategic Report Margaret has been an enthusiasltc hosteller since her teenage years. stawng with YHAS as a base for climbing all the Wainwrights and Munros, and walking long distance palhs such as the Pennine Way and the Great Walks of New Zealand. She is currently enjoying introducing the third generalion of her family toYH Marcus Holburn. Vice Chair Marcus is 8 qualrfied Chartered Accountant with more than 20 years. experience in both large and small businesses. He is currently Finar￿e Director of a consumer finance business in the Thames valley, and previously spent 14 years at M&G Prudential in a number of senior finance. risk management and ci)mmercial roles. Marcus is a passionate believer in the YHA purpose and values. He has enjoyed hostelling since his teenage years. for canoeing and walking trips lo drfferenl parts of the UK. Graham Turnock Treasurer Graham joined the Board in 2015. Graham has been a member of YHA since childhood and continues to enjoy hoslelling in the UK and Europe. Graham has experience as a senw manager in the public sector and is currently Chief Executive of the UK Space Ageney. Hayley Barnard Since 2014 Hayley has served as the Managing Directcff of MIX DNersty Developers, helping many large organisalions shift their culture lo one that is more inclusive of diversity. Her dients range from NHS Tnjsls lo global companies such as Microsoft. T-mobile and Britvic. She hopes to bring this expertise to the YHA lo support our aim lo reach an ever-wder range of people. Previously Hayley Worked at Non-Executrve and Executive Board level at a number of travel and expedition companies. Her postgraduate training is in marketing, arKI she has significant experience in passion for digital engagement. Emma Bradley Emma spent the first part of her career in Ihe travel industry and passionately endorses YHA'S belief that 'where you go changes who you become.. She also believes th81 access lo nature and being outside can have po%tive effeds on mentsl health and vElbeiThJ. After spending lime in the travd industry Emma vthed at the BBC. initially as Marketing 2nd Fundraising Director for 88C Children in Need. and then in other marketing and strategy roles. She now runs Corporate Soeial Responsibilrty at Global. the media and entertainment group, which encompasses the UK'S largest commerci81 r8dio company. induding youth brand. Capital. As part of this brief, she runs the in-house charily. Global's Make Some Noise. which supports projects working across safety and shetler. physical and mental health. isolation and inclusion and lrfe skills. Emma is also Chair of Governors for 2 se¢ondary $th￿l. She became a Trustee in 2019. Clare Fordham Clare has worked in both television and radio news for over 25 years. enjoying time in both commercial and BBC newsrooms. She spent eight years travelling across Britain and lurther af￿ld at ITV News. before moving across to the BBC. She's currently the editor of all dayiime pr￿Jramme$ on BBC Radio 5 Live. looking after a range of high-profile presenters. holding power to account. and making sure the listeners are entertained and informed. Clare is used lo high-profile news projects.. she's planned award- winning news stories involving NASA, the Duchess of corn￿011 and Downing Street, as well as masteminding programming throughout the pandemic. Clare is passionate about finding and celebrating unheard voices and hearing untold stories. She takes great pride in her invofvement with efforts to reach diverse audIer￿S and bring a far broader range of perspectNes to the programmes. As a trustee of the Bury Voluntary Community and Faith Alliance, Clare has gained great insight into the rewards and challenges facing smaller l(Thl charities. the huge importance of volunteers, and engaging communities to help themselves. The YHA has been central to some of the great experiences of Clare's lrfe. and sho is passionate about widening that access for others.

Do¢uSvJn ErNebpe 10." 41EgF63F4261450F-9941-8225652C6DK) YHA (England and Wales) FlnaTrclal statvments lor th• •nded 28 F¢lxuary 2021 13 Report of the Trustees incorporating the Strategic Report Cathryn Hayhurst Cathryn was elected as a Trustee in 2017. Access to the outdwrs is one of her passions and you will most likely find her hiking a fell or playing in a boat in the Lake District. Her young daughter and husband can be found enjowng the communal aspect of YHA hostds whilst Cathryn attends Board meetings. Calhryn is a qualified accountant and insolvency pract￿oner with a 8Sc in Environmental Sciences, and . is currently a member ol the senior finance team al The CTrop. Previously she worked for fNe years al Ihe Nalional Trust where she was commercial lead for the Renewable Energy Prcgramme lo generate 50Vo of energy from Renewable Sources includin9 hydro schemes. She develO￿d her finance skiNs al KPMG and funding strategy at Barclays. Tegryn Jones Tegryn Jones is Chief Executive of the Pembrokeshire Coast Nat￿nal Park Authority. This role involves managing the Pembrokeshire Coast National Trail, along with a number of conservation siles and popular visitor attractions. He has a degree in geography from AberyStW￿h University and an MBA from the Open Universty and has previously worked for the General Teaching Cwncil for Wales. Swansea University and Urdd Gobailh Cymru. Prior to joining the National Park Authority. he was Chief Executive of Keep Wales Tidy where he worked with the Welsh Govemment lo develop the Tidy Towns initiative and the expansion of the Ec(pSchcK)Is programme and Blue Flag Award in Wales. Tegryn has been a charity trustee of the DPJ Foundation, a charity working to support men in the agricultural sector wilh mental health issues, and UNA Exchange. a charrty promoting intemalional exchanges for young people. He is cuirenlly a trustee of the UK National Parks Foundation. Tegryn is also Chair of Govem¢xs of Ysgol Caer Elen. a 3 10 16 Welsh medium in Haverf(xdwesL Barbara Kasumu Barbara is the Direelor of Membership. Talent and Indusion frff the National Union of Students (NUSI a voluntary member organisalion representing the interests of more than 7 million students and 600 students, unions. Barbara has championed equalrty in over 50 organisations across three conlinenls. Barbara consults and speaks on the participation. empkiyment and leadership of young people and women. She has resyesenled Ihe voicg of seven million young people on the international stage including al the G8 and G20 summits. 8aTbara has a BA in Polit￿ and a Masters in Inlemats'onal Public Policy from UnNersily College London. Jtss￿ Murray Josie joined the Board in 2015. Josie has wcrfked in th8 historic environmenl sedor throughout her professional lrfe and during the past tsvenly years exdusively with property. This has ranged from major infrastructure projeels lo private residential properties. She is currently involved in the management and inlerpretalion of hist￿1¢ buil¢Jings and is particularly interesled in ensuring that buildings arg effectively managed to protect their historic Significance while delivwing cL¥nmercial objectives. Josie took over as chair of Premco after the February 2019 Board Meeting. Hannah Patevs Hannah lives in Manchester with her wife Jess. She started her career campaigning fcf the rights of disabled students vthilst sludwng at universily, she was particularty fttused on improving access. having experienced a nUm￿r of blockers hersell within an education system that is currentiy designed around the 'average' person rather than being adaptable and flexible to different needs. Hannah was introduced to YHA at a very young age arKI every January her family use5 YHA to lrft ihe post-christmas blues and blow away the cobwebs with stays and walks in vartous parts of thg ￿Untry. Hannah has signrficant experience in the not-for profft sector. She currenlly works as a SenIC￿ Porttolio . Manager for the UK Portfolio team at the Nab"onal Lottery Community Fund focusing on developing and implementing the aims of the portfolio. Her work has included focusing on equality. diversity an(J

Docusiw En¥8bpe ID.. 41E9F63F-6281450F-9941-8225652C6D9D YHA (England and Wal￿> Financial statements for the year ended 28 Fetriw 2021 14 Report of the Trustees incorporating the Strategic Report inclusion, as well as programme design and development using participatory approaches. She is a Churchill Fellow and is researching the topic of participal(xy grant making in South Africa and the USA. Outside of work. Hannah is extremely embedded in thal community Work that brings together people from different backgrounds around shared themes. Simon Reeve Simon has significant intemational eXperief￿ in developing leams and organisations. especrally in engineering-related industries. In his current role. as Director of Commercial Engagement al Lloyd's Register Foundation. he sets up new business ventures and partnerships to extend the impact of the Foundation's work in supporting research. education." skills development and public engagement across all sectors arKJ seclions of soci8ty for a safer world. In his spare lime, Simon is an avid outdoor enthusiast engaging in cycling. hill-walking. canoping. sailing. surfing and skiing. frequenuy staying in Youth hostels as part of these activities. Chrls Robwts Chris is an internats.onal trMJsiness lasvyer who as General Counsel manages worldwide legal and compliance matters for18rge corporates. Chris has previoU￿Y served as a trustee for tharilies active in housing services and helping to address homelessness. As a lrfe member of the YHA, he enjoys Ould￿r aclNilies such as cycling. vmlking and scuba diving. Since 2013. Chris h85 served as a mefflber. then as Chair. of the Remuneration Committee, as well as a member of the Finance Committee and CEO RecnJtimenl Committee. Currently. he is 8 member of the Audit and Risk Committee and the Nominations Panel. Flona Steggles Fiona is a senior Wurer in joumalism al the University of Central LarKashire. She previously worked for the BBC for almost 20 years. During that lime, she reported and produced for fadio and television, presented radio programmes arKI made doeumenlaries. For ewJht years she produced the BBC1 regional news programme Northwest Tonight. winning two Royal TelewsKJn Society awards. She currently also runs her own media training and ￿nsullancY business thing with rtxal authority and commercial org8nis8tions. Caleb Stevens Caleb Stevens is an experienced safeguarding arml child protection officer. supporting children and young people with their mental heamh. wellbeing and welfare. Having completed a degree in public services. Caleb is currently studying a Masters in Diplomacy and International Relations as well as in Advanced Child Proteclion. Caleb has a multitude of govemance 8ppointmenls. presiding as the strategic ￿ad for safeguarding for over five including being a Vice Chair for a large multi-academy trust in Comwall. Caleb also enjo￿ seNng as a Special Ed￿￿tional Nggds and Disabilities Lead Governor fw a lar9e primary school. Appointed as the youngest MagTrstrate for the Ministry of Justice in 2017 and former Independent Monitoring Board Member for Her Majestys Prison Exeter, Caleb is committed to equality and diversity and has supp(￿ted many organisalions wth their inclusivity and interaction with children and young people. This particularfy includes developing outh voice. at strategic level. where Caleb is passionate about challenging pereeplions that young people can have signrficant levels of responsibility. including Trusteeshp. Caleb is on8 of the YHA'S youngest Trustee in the organisalion's 90-year history since foundation and hopes lo contribute his knowledge. experience and enthusFasm to developing and embedding 'youlh voice, within the YHA. Furthermcye. Caleb looks foThvard to contributing addttional expertise on education and safeguarding lo ensure all children and young peop￿ receive the best support arKI outcomes YHA has to offer.

DocJJSign Envdope1Tr. 41E9F63F4281450F-W1422W2C609D YHA {En9land and Wale5) Flnwcial •tatem•nts fw Ihe yw ended 28 F•1Xu￿ 2021 1S Report of the Trustees incorporating the Strategic Report Living righl next lo Dartmoor. in his spare time Caleb enjoJE taking long mcKJr walks which has further contributed lo his passron for ￿rn9 immersed within nature. travelling Ihe UK and staying with many YHA hostels in the process. Robert Varloy Robert has been a keen hosleller Sin￿ hi$ youth. He has a passion for the ouldcors and loves exploring Britain's wild Country and coastline on fool. A family man. a dad and a grandad, he has been volunteering in children's and youth work for over 40 years. He has a pa&sion for everyihing the YHA stands for and is keen lo see it make a real drffererbce to even more young lives in the years ahead. 'Because where you go changes who you become." A meteorologist by profession. R¢)bert wothed for 35 years at the Mel Office. He has served on numerous Boards and Councils at national and intemational level- as Chief Executive of the Met Office. Non- Executive Director of ordnan￿ Survey. Presideni of Eumetnel. Vice President of the Royal Mel Society and Vice President of the Wortd MeteorologThl Organisalion. In 2012 Robert was named as the Institute of Directors. Director of the Year {Publictrhird Sectors). and in 2016 he was awarded an honordry degree ol Doctor of Science from the University of East Anglia. He now wo￿$ as a strategic consujiant to leaders of weather services ar￿nd the world. Board meetings attended No. Tern) of office Ended 2020 Ends 2023 Ends 2023 Ends 2024 Ends 2022 Ends 2021"" Ends 2021." Ends 2021" Ends 2024 Ends 2022 Ends 2022 Ends 2022 End5 2021 Ends 2024 Ends 2021. Ends 2024 Ends 2023 Philip Bale Hayley Barnard Emma Bradley Clare Fordh8m Margaret Hart Cathryn Hayhurst Marcus Holbum Tegryn J￿e$ Barbara Kasumu Josie Murray Hannah Palerson Simon Reeve Chris Roberts Fiona Sleggles Caleb Stevens Graham Tumock Robert Varley 7of7 8of9 7of9 2of2 9of9 gof9 9of9 2of2 7of9 9of9 7of9 8of9 8of9 9of9 2of2 9of9 9of9 'eligible lo be ctropted for a further one-year term "'eligible for rfrelection for 8 ft￿r-yeaf lenn Discl•$ures Ot Interest No Trustee had. during or al the erHfj of the year. any interest in contracls that are signifunt in relation lo YHA'S business other than disclosed above or in note 33 of the financial slalemenls. For the purposes of ompany law. the Trustees listed above are also the Direc1￿S of YHA. Executlve Team Chlef Executlve: Jwnes Blake Other senior executives: Chief Finance Officer and Company Secretary Executive Director ol Operations and People Executive Direclor of Property and Risk Executive Director of Strategy, Commerual and Engagement William Howarth Jane Price Jake Chalmers Anita Kerwin-Nye

Orthsign Envdcy ID." 41E9F63Ffj28145oF.9941-82Z5652c6D￿) YHA (England and Wales) Financial statements for the ye•r ended 28 Febnw 2021 Report of the Trustees incorporating the Strategic Report Jerry Robinson resigned as the Chief Operating Off￿er on 31*1 December 2020, and his responsibilities were distributed amongst other members of the Executive leaffl. Jane Price and Anita Kerwin-Nye were fomially appointed to their new Execubve Director roles on 1 March 2021. having undertaken the roles on an interim basis since l January. Ernploy•es YHA is an Invesl¢xs in People Gdd ￿an1$ation and is committed to empbyment Ex￿1cleS which follow est practice based on equal opportunities for all employees irrespective of age, sex, sexual orientation. race, colour, disability, marital ststus, religion or bel￿. Employees are kept informed of plans. receive regular updates on performance against our plans. are er¢couraged to altend CK feed into our regular listening groups and attend our twice-yearly business briefings. We had lo lemporarily close our National Office in M8tlock because of the pandemic in March 2020. and employees moved immediately to remote working vthich continued throughout the year. We immediately introduced new means to engage wth cMJr staff team. including weekly all stsff emails from the Chief Executive and weekly or fortnighlly all staff webinars ￿ by the Chief Executive and the Exec leam. These have proved very popular and are ￿kelY to remain a key part of our employee engagement strategy in the future. The Coronavirus parKlemic has put a huge strain on staff, especially those working Ir￿ughOUt. and we have placed increased emphasis (m wtsJr8mmes lo supprrft posilrve employee mental health and wellbeing throughoul the year. Our annual employee survey is an opportunity for confidential feedback on all areas of the or9anisalion and action plans are pul in place to address any issues raised from these surveys. We were pleased that desprte the disruption caused by the pandemic. Ihe headline measure of Employee Engagement as measured by the Employee Survey rose from 71% in 2019 10 79°A in 2020. Commltte•$ Aydlt and Rlsk Commfttee (IIARV) The ARC is a ci)mmittee of the Board of Trustees. The Committee mei five times during th8 year and is currently composed of= The Vice Chair Marcus Holbum who acts as the Chair of this Committee. Three Trustees.. Emma Bradley. Chris Rob&ts and Caleb Stevens. The Committee: agrees the prryJramme for Intemal arKI Extemal Audits: conshdefs reports from the auditor5: C0115iders the annual Financial Stalemenls bef(Ke submission lo the 8oard', reviews Ihe perfo￿anCe of the Inlemal and Extemal Auditors; advises the Board regarding the adequacy of its risk register. policy. and management of risk., reviews the full risk regisler on an annual basis and every quarter reviews the high level significant risks and any changes lo the full risk regisler- and, devises and tests key measures against which the perfonnance of the organisation can be judged. Finance Commlttee {¥C The FC is a committee of the Board of Trustees. The Committee met ten times during the year and is ¢u￿9n11Y composed of: The Treasurer Graham Tumcrk who acts as the Chair of this Commtttee. Two Tntstees.. Cathryn Hayhurst and Tegryn Jones.

Docu&gn Envelope10.. 41E9F63F-628145oF-9941-B22￿52CGO YHA (England afftd Wal¢s Financlal slatements for the year ended 28 Feknary 2021 17 Report of the Trustees incorporating the Strategic Report The Committee supports the Board in ensuring the effective financial management of the Company.. provides opinion on financial sustainability of YHA'S strategic plans.. advises on furmjing str8legies and risks.. provides 8ppropriate scrutiny of finance related strategic KPls.' ensures effective financial planning. budgeting and treasury management: reviews and is consulted regarding capital and other investments.. and works with the Audit and Risk Committee regarding finanaal risk Management. Since the start of the pandemic. the Finance Committee has mel monthly to allow regular review of YHA'S cashllow and financial plans. Impact and Engagement Committee (Y&E The Impact and Engagement Committee is a Crynmittee of the Board. The Committee mel three limes last year and is currently composed of= Simon Reeve who acts as Chair of this Committee. Four Trustees.. Hayley 8amard. Barbara Kasumu. Hannah Paterson and F￿na Steggles. The Impad and Engagement Committee supports Ihe Board ¢n maximisiThJ Ihe impact and effectiveness of YHA'5 work as a charrty. and ils member and stakeholder engagement. through ensuring effective management of these areas. This includes oversight of impact related KP15- the design, delivery and evaluation of youth. education and activity programmes and YHA'S engagement strategy with members. volunteers. donors and partners. P•ople and RernuneYaliM Commltt•e fPr•mCo Premco is a committee of the Board of Trustees. The Commiltee met five times last year and was composed of.. Josie Murray who acts as Chair of this Commillee. Two Trustees.. Clare F¢¥dham and Robert Varley. The Comfflittee agrees the Remuneration Policy. determines the remuneratK)n of the ExeculNe Directors, and the remuneration of the Chief Executive in consultstion with Ihe Chair- determines the terms and conditions of employment of the Executive Directors", and determines the temis and conditions of employrnent of the Chief Executive in consullation with the Chair. In setting the organisalions Remuneration Policy. the Committee makes such exlemal consultations and comparisons as may be necessary to ensure that the pay and emoluments of YHA staff are fair in value to those haviThJ similar responsibilities and urcumstances in organisalions in the not for profil and commercial sectors lexcluding financial). The Committee also consider stralegic HR matters %thich impact on our financial position or our posttion as an employer. e.g. pension5. performance management. This year that has included plans for managing workforce al drfferent stages of the pandemic and oversight of YHA'S gender pay reporting whlch is available ￿ our website. The Commthe is afso ￿5F￿nSIble for People r￿k. Flnanclal control and Rlsk Management Trustee responslbilities statement The Trustees {who are also diieclors of YHA {England a￿1 Wales) for the purposes of wipany law) a responsible lor preparing Ihe Report of the Trustees incorporatiNJ the Strategi¢ Rewt and the financial stslements in a¢cordance wilh applicable law and regulations. Company law requires the Trustees lo prepare financial statements for each financial year. Under that law the Tnjslees have elecled to prepare the financial statements in acc(Kdance wilh United Kingdom Generally Accepted Accounting Praclice (United Kingdom Accounting Slar)dards and applicable lawl, including FRS 102 'The Financial Re￿Ing Stsndard applicab￿ in Ihe UK and Republic of Ireland,. Under company law the Trustees must not approve ihe financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of YHA and the group and of the inccKning resources and application of resources. induding the income and expenditure of YHA and the group for that year.

Oo¢ySwJn Envek)pe10" 41E9F63F-628145Cf-9941.B225652C60 YHA {En9land and Wale6) Flnanclal statements for the yèar ended 28 F0￿￿ary 2021 18 Report of the Trustees incorporating the Strategic Report In preparing these financial statements, the Trusiees are required to: selec¢ suitable acecrtjnting poI￿leS and then apply Ihem C￿SIstentlY observe the methods and prineiples in the Charities SORP IFRS 102) make judgments and accounting eslimales Ihal are reasonable and prudent slate whether applicable UK accounting standards have been followed, subject to any material (Jepartures disclosed and explained in the financial statements prepare the finan￿al statements on the going concem basis un￿sS it is inappropriate lo presume that YHA and the group wll Continue in business. The Tfustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable compan¥s transactions and disclose vthh reasonable accuracy at any time the financial position of the company and enable them to ensure Ihat the financial statements C￿nplY with the Companies Act 2006. They are also responsible for safeguarding the assets of YHA and the group and hence for lakiThJ reasonable sieps for the prevent*Jn and detection of fraud and other irregularities. The Trustees confim thal: so far as each Trustee is aware. there is no relevant audit ￿O￿allOn of which the YHA auditors are unaware" and the Trustees have taken all the steps thal they ought to have taken as Truslees in order to make themselves aware of any relevanl audit information and to establish that the auditors are aware of that infomation. The Trustees are responsible for the maintenance and integrity of the ccwporate and financial information included on YHA'S website. Legislation in the United Kingdom goveming the preparation and dissemination of finanual statements may differ from legislation in other jurisdictions. Section 172(1) Statement Section 172 of the Companies Act 2006 requires a Director of a company to act in the way he tx she considers. in good faith. would be m05t likely lo promote the success of the company for the benefit of ils members as a whole. In doing this. section 172 requires a Director to have regard, among other matters. to: the likely consequences of any decision in Ihe long term- the interests of the company's employees., the need to foster the companys business relationships with Sup￿lerS. custr)mers and others.. the impact of the companYs operations on the community and the enwronment- the desirability of the cornpany maintaining a reputation for hKJh slandards of business conduct. aThJ Ihe need to act faidy with members of the company. YHA is a leading national charily which depends on the trust and confidence of its members and beneficiaries lo operate svslainably in the long temi. YHA seeks lo pul ils beneficiaries. best interests first. invests in its employees, supwts the communities in it operates and strives lo generate sustainable surpluses lo be reinvested into the charity. The Trustees have acted in accordance wilh their duties cTrJified in law. vthich include Iheir duly to act in the way in which they consider. in good faith. would be most likely to promote the success of the Company for the benefrt of its members as a vthole. having regard to Ihe matters sel out in section 17211) of the Companies Act 2006. The Board recognises that building strong relationships with our members and beneficiarie5 will help us lo deliver our strategy in line wlh our long-temi values and operate the business in a sustainable way. Reserves Policy As a charity YHA is obliged by the Charity Commission to set a p￿icY on reserves which establishes a level appropriate for YHA. YHA'S reserves poltcy is sel to manage unforeseen financial d¢fficufiies. and not lo fund its future capital strategy. The level of reserves is set based on forecast income and expenditure and the likelihood of material risks ¢ryStallising which would not be covered by futu￿ in¢ome or insurance.

Dcwsign En¥elope ID.. 41E9F63F281450F-9941-B225652C6 YHA (England and Ivales) Flnanclal statements for the year ended 28 F•bnwry 2021 19 Report of the Trustees incorporating the Strategic Report The reserves policy is set with regard to the: Strategic C8pilal strategy- set by the Board wlhin the context of a fNe-year time frame. The annu81 budget - sel to ensure Our future expendilwe levels are matched to th8 income we receive from operating youth hostels. Risk management pr¢)cess assesses the impact and like11t￿c￿l of all risks to the YHA and the appropriate level of short-temi reserves to be held. YHA has inlroduoed an active reserve rnoniloring process managed by the Audit & Risk Committee (ARCI and governed by the Trustees. The ARC assesses the impact and likelihood of uninsured risk5 10 creale an expected value. which is reduced by the assessment of mitigating controls lo set the appropriate level of short-terni reserves lo be held. This value is formally reviewed on an annual basis with the opportunity for any material changes to be picked up within YHA'S quarterly risk review process The ARC will report if these reserves have used and the consequenl imp￿1 ￿ the long-term strategy. In the event of a movement tyond the reserves limit the ARC would report immediately to the Board with recommendations for acti￿. Before the impact of COVID-19 we had assessed our maximum level of risk. including the possibility of some fomi of pandemic to be at £5m. Given the unpreeedented scale and duration of the crisis, this proved lo be an underestimate arHI Ihe final impact is likely lo be at least four tirr¢es this amount. The Executive and Board havg developed a liqu*Jty plan to en$ure that we have enough headroom within our existing bank facililies which are monitored on a weekly basis lo ensure commitments can be met when due and identifying assets which could be disposed of to provKle enough scope to match thè impact of any further unseen risk bthelher pandemic related or olherwse. Fundralslng pollcy It is always Our aim lo provide the best possible donor exper￿￿ and deliver the highest possible standards of donor care. We are registered ￿th the Fundratsing Regulator to demonstral8 our commitment to achieving the highest standards in fundraising and we strive at all times to comply the Fundraising Regulatorfs Code of Fundraisin9 Practice. We are committed to undertake our fundraising in a legal. open, honest and respecttul manner by following the standards for fundraising set out in the Fundraising ReguL4torfs Fundraising Promise. We therefore use the Fundraising Regulalcy logo on our fundraising maleriats to show that we are following these slandards. We are always committed lo uphold the hKJhesl stsndar(ts of mice in our fundraising and will.. comply with all relevant law and regulation including the Charities Act 1992, the Charities (Protecliorb and Social Inveslment} Act 2016. the Dala Protection Act 1998, and the Fundraising Regulalor's Code of Fundraising Practice and where relevant the Gambling Acl 2005. Ireal the information that supporters provide to YHA in line with our Privacy PolKy and never share or sell Iheir personal information lo third parties for the purpose of marketing or fundraising. ensure clear governance and management eontroks for the legal. safe and transparent raising of funds from 8 diverse range of sources. operate policy and guidan￿ for working wth supporters v+hJ are in vulnerable circumstances. have clear rules for when donations may be relumed lo donors. port regulady lo the truslees of YHA regarding fundraising activity. i￿luding an annual summary of omplainls and a¢tion taken lo address these.

OooJSvJn En¥thpe ID.. 41E9F63F-628145OF-9941-8225652C6090 YHA IEn9land and Wales) F¥than¢ial $tatements for the year •nded 28 Febrnary 2021 20 Report of the Trustees incorporakn'ng the Strategic Report Investment poll¢y Investments acquired in accordance 7Mth the powers of the Trustees, primarily in respect of endovdTnent fU￿lS, tolal £1.044 million al the erKI of this financial year. Close Wealth Management and Ralhbone Investment Management manage the assets on YHA'S behalf, with an investment strategy aimed at maximising income at an acceptable level of risk induding growth of asset Values. Borrowlns and financlal instruments policy YHA uses financial instruments. comprisiNJ borrowings secur&J against property. The main purpose of these financial instruments is to finance the Working capital cycle of YHA and to finance longer-term Capital needs. The policies for managing the risks open to YHA are summarised below: YHA'S financing and ireasury pclicy govems the way that YHA borrows morey and how it manages ils interest risk. Working capital requirements are managed through the Revofving Credit Facility put in place with HSBC to finance nelwork investment over the 5 years of the agreement. Other borrowings are designed lo be appropriale for the type of asset being financed. Thus. IT equipment and sofhvare are likely to ￿ financed over no more than five years. equipment no more than len years and property will b8 financed over twenty years. Rlsk mana9•m•nt gr4￿p The 808rd of Trustees is ultimately responsible for risk management in YHA. setting the control framework, the risk appetite and approwng major decistons affecting YHA'S risk management or profile. The Board annually approves YHA'S risk management plan, including the risk register, reviews the effectiveness of YHA'S internal control and risk management S￿tern. and allows in its agenda a detailed review of a specific risk lo be tabled at every Board meeting. The Audit & Risk Commtttee (ARC) has delegated authority from the Board to ￿vIeW and manage risk and the organisational risk register is the key lool used to record risks wtthin YHA. The ARC.. rewews the risk management policy and prctesses annualty. reviews and agrees on an annual basi5 the signifunt risks to which YHA is exposed. ensures that sufficient aelion is being taken to mitigate the risks. provides the Board of Trustees wth an annual statement of assurance on risk management and inlemal controls and corporate govemance. agrees specrfic nsks to be reviewed by Ihe Board. ensures that Ihe control environment is sufficient to ensure the effe¢tbve management of risk. monitors c(¥n￿lanCe with charily cornmissic¥n aThJ corporate govemanee reqU1￿ments. At an operational level YHA has a risk management group under the Chair of a member of the senior management team, currenuy the Associate Director for Risk. This gyoup focuses on key organisation level risk. The group is drawn from all directorates to ensure that risk management is embedded in all director8les. Individuals on the group are responsible for idenlrfying action plans for all lower-level risks and for bringing these to the risk management group as required. Insyrnnce pollcy YHA has insured Trustees and off￿r$ of the company against liability for wrongful acts in relation to the charitsble company. as pemiitted under SectK)n 532 of the Companies Act.

Docu&gn En¥eJope ID.. 41E￿83F42814S0F￿941.B2256s2c6Dw) YHA IEn9land and Wales) Financial statem•nts the y•ar ended 28 February 2021 21 Report of the Trustees incorporating the Strategic Report LEGAL AND ADMINISTRATIVE DETAILS Bankers: HSBC Bank plc Level 6 71 Queen Wictoria Street . LONDON EC4V 4AY Santander Bank Carlton Pavk Nathffough LEICESTER LE19 OAL Solititors: Browne-Jacobson 3rd Floor. No 1 Spinnin9fields 1 Hardman Square Spinningfields MANCHESTER M3 3EB Russell C(￿)ke 2 Putney Hill LONDON SW156AB Pin5enl Masons LLP 55 Colmore Row BIRMINGHAM B3 2FG Auditor: Grant Thomton UK LLP Chartered Accountants ststul¢)ry Audilor 1 Holly Street SHEFFIELD S12GT Investment Fund Managers: Close Wealth Management 10 Crown Pl￿e Clrfton Street LONDON ECZ4 4 Rathbones Investrnent Management George House 50 George Square GLASGOW G2 1EH

Oocusign EnvdoFe ID.. 41E9F63F4281450F-9941-8225652C609D YHA (England and Wales) Financial Statements lor the year ended 28 Fel¥nwry 2021 Report of the Trustees incorporating the Strategic Report Internal Auditors KPMG are the inlefnal auditors for YHA and act as an assurance fU￿tion to provide an independent and objective opinion lo YHA on the design and operation of the intemal ￿ntrol environment. Appolntment ol Audltors In a¢wrd8nee wlh S485141 of the Companies Act 2(K16 a resolution to reappoint Grant Thomton UK LLP will be proposed al the Annual General Meeting. In approving the Report of the Tnjstees, the Trustees are also approving the Strategic Report in their capacity as company directors. ON BEHALF OF THE TRUSTEES art MH8rt Chair 10 Jthy 2021

Dcrusign Env¥knpts ID.. 41E9F83F-6281450F.994l.B22￿s2c6D9D O GrantThomton Independent auditor's report to the members of YHA (England and Wales) Oplnlon We have audited the financial slalements of YHA (England and Wales) 'parent charitable company'l and ils subsidiary (the 'group'l for the year ended 28 February 2021. which ￿MprISe the Consolidated Slalement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements. including a summary of significant accounting poliryes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Finanryal Reporting Standard 102,. The Financial Reporting Standard applicable in the UK and Republic of Ireland {Uniled Kingdom Generally Accepted Accountin9 Practice). In our opinion, the financial stslements: give a Inje and fair view of the.state of the group's and parent chantable companls affairs as at 28 February 2021 and of the group's and the parent charitsble company's incoming resources and application of resources including. the group's and the parent income and expenditur8 for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted A¢¢ounting Praclice.. and have been Pfepared in accordance the requiremenls of the Companies Act 2C(16. Basis for opinion We have been app)inted as auditor under the Companies Acl 2006 aThl report in accordance with regulations made under that Act. We conducled our audit in accordance with Intemational Standards on Audiling IUKI (ISAS (UKII and applicable law. Our responsibilities under those standards are further described in the 'Audito￿$ responsibilitie5 for the audit of the financial stalemenls. section of our report. We are independent of the group ar¥J parent charitsble company in accordance with the ethical requifemenls that are relevant lo our audit of the financial slalernenls in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in aecordance with these requirements. We telieve that Ihe audit evidence we have obtained is sUffiC￿nt and appropriate to provide a ba￿5 for ¢￿r opinion. Conclusions relatlng 10 9olng concern We are rèsponsible for concluding on the appropriateness ofthe trustees. use of the gO￿g concefft basis of aceounling and. based on the audit evidence obtained. whelher a material uncertainty exis15 related to events or conditions that may cast significant doubl on the group's and the parent charitable CoMpan￿S abilily to continue as a going concern. If we condude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the finanaal slalemenls or. if such disc105ures are inadequate, to modify the auditorfs opinion. Our Conclusions are based on the audit ewdence obtained up to the dale of our rewt. However. future events or condilions may cause the group or parent charitable company ￿ cease to continue a$ a go￿9 concem. In our evaluation of the trustees. Condu￿On5. we considered the inherent risks associated with the group's and parent charitable companys business mcyjel including effects arising from macrov economic uncertainties such as Brexit and Covid-19. we assessed and challenged the reasonableness of eslimales made by Ihe trustees and the related disclosures and analysed how those risks might affecl the group's and parent charitable CoMpan￿S financial resources or ability to continue operations over the going concem period.

Doujsun ErwebFe ID". 41EgF63F281-450F-9941-8225652C6D90 Q GrantThornton Independent auditorfs report to the members of YHA (England and Wales) Material un¢ert•inty r•lat•d to going eoneern We draw attention lo the disck)sure in note 2 of the finanoal statements, whi¢h details the factors that the directors have considered in making their going concern assessment. irtluding the availability of additional funding frorn the charitable group's bankers. The uncertainty as lo the future impact of the recent Covid-19 outbreak has ken included as part of the directors. consideTalion. and they have considered the reasonably plausible impact of the outbreak on trading and cashfiow forecasts. While the directors consider the charitable group to be a going concem, the uncertainty around the magnitude of the impacl of the outbreak Ind￿aleS the existence of a material uncertainty which may cast significant doubl about the group's abilrty lo continue as a going concem. The financial statements do not include the adjuslmenls that would resull rf the company was unable lo continue as a going concem. Our opinion is not mcJrfd in respect ol Ihis matter. other Inforn￿lIOn The tfustees a￿ responsible for the other infcthation. The other infonnation comprises the inforrnation included in the Trustees. Annual Report, other than the financial ststements and our auditor's report thereon. Our opinion on the financial statements dcs not cover the other information and. except lo the extent otherwise expliully slated in our report. we do not express any fonn of assurance condusion thereon. In COnnect￿n with our audil of the financial stslemenls, our responsibility is lo read the Ot￿r informalion and. in doing so. consider whether the other information is rnalerially inconsislenl with the financi81 statements or our knowledge obtained in the audit or otherwise appears to te materially misslated. If we idenlfy such malerial inconsistencies or apparent malefial misstalemenls. we are required to determine whether there is a material misslalement in the financial slalemenls or a material mis5tatemenl of the other information. If. based on the work we have perfomed. we conclude that there is a material misstslement of this other infomalion, we are required to reF4)rt that fact. We have nothing to report in this regard. Oplnlon on other matters prescrlbed by the Companles Aet 2006 In ¢Jur opinion. based on the work undertaken in the course of the audiL' the inforniation given in the Repjrt of the Tnjstees incorwaling the strateg￿ Report prepared for the purposes of company law. included in the Re￿rt of the Trustees for the financial year for which the rinanryal stslements are prepared is consistent with the financial statements. the ReFKYi of the Tnjstees incorporatiTrJ the Stralegic ReFM)rt has been wepared in accordance with applicable legal requirements. Matter on which we are required to report under the Companles Act 2006 In the light of the knowledge and understanding of the group and parent charitable company and its environment obtsined in the course of the audil. we have not identtf￿d material misststements in the Report of Ihe Twstees irthrwraling tho strateg￿ Report included in the Report of the Trustees.

Docu&gn Ertvek)pa ID.. 41E9F63F-6281450F.9941_B2￿52C$09D O GrantThornton Independent auditorfs report to the members of YHA (England and Wales) Matters on w1￿h we are r•4ulred to report by excwlon We have nothing lo report in respect of the following matters wtsre the Companigs kl 2006 requires s to report to you rf. in our opinion: adequate accounting records have not been kept by the parent charitsble company. or relums adequate for.ojr audil have not been received fr(¥n branches not visited by us: or the parent charitable compan￿5 financial statements we not in agreement with th8 accounting records and returns.. or certain diselosures of trustees. remuneration speufied by law are not made: or we have not received 811 the infomiation and explanations require for our audit. Responsibilities of trustees for th• financial statements As explained more fully in the Trustees, Responsibilities Statement sel out on pages 17 and 18, the Iruslees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial 51alements and for being satisfied that they give a true and fair view, and for such internal control as the trustees (Jetermine is necessary to enable the preparation of financial slatemenls that are f￿e from material misstatement. whether due to fraud or error. In preparing the financial slatemenls, the trustees are responsible for assessing Ihe group and the parent charitable cornpanys ability to continue as a going concern. disc105ing. as applicable. matters related lo going concern and using the going concem basis of accounting unless the trustees either intend lo liquidate the group or parenl charitable company or to cease operatw)ns. OT have ThJ realistic alternative but to do so. Audltor¥ r•sponsiblllties for t1￿ audit of the financial statements Our objectives are lo obtain reasonabie assurance about whelher the financial stalemenls as a whole are free from malerial misstatement. vthether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance wilh ISAS (UK) will always detect a material misstatement when il exisls. Misstatements can arise from fraud or error and are eonsidered material rf. individually or in the aggregate. they could reasonably be expected to influerte the economtc decisions of users taken on the basis of these financial statements. A further des¢ription of our responsibilities for the audit of the financial st8tements is lo¢aled on the Financial Reporting Council's website at.. wMv.frc.org.uklauditcKsresponsibililies. This description foms part of our audilorfs rewt.

Dr￿sign En¥ekJp•10.. 41E9F63F-6281451Xc-9941.B225652C6D￿) O GrantThornton Independent auditor's report to the members of YHA (England and Wales) ExplanatioTr as to what ext•nd the audlt was cons•dered capable of delectln9 IrregularitleS inclydlng fraud Irregularities. in¢lu¢Ying fraud. are instances of non-compliance with laws and regulations. We design procedures in line with (Njr responsibilities. outlined above. to detect material misslalemenls in respect of irregularities. including fraud. Owing to the inherent limitations of an audit. there is an unavoidable risk that material misstalemenls in Ihe financial statements may not be detected, even though the audit is properly planned and performed in acc(ydance with the ISAS (UKI. The extent to which our procedures are capable of detecting irregularities. ind￿11ng fraud is delalled. below.. The Company is subiecl to many18vts and regulations Whe￿ the consequences of non-compliarte could have a material effect on amounts or disclosures in the financial slatements. We identrfied the following laws and regulations as the most likely lo have a material effect if non-compliance were to occur, Charities SORP (FRS 1021. FRS 102, Charities Act 2011. Data Protection Act 2018 and the Charity Code of Govemance. We communicated relevant lav4S and regulath)ns and potentkil fraud risks to all engagement team members and remained alert to any Ind￿al￿S of fraud or non-compliance with laws and reguLgtions throughout the audit. We understOC￿ how the Company is Cr￿p1￿1n9 with those legal and regulatory frameworks by making enquiries of management. We corroborated our enquiries throuth our rewew of board minutes legal expenses. We assessed the susceplibilty of the Companys financial stslements to material misstatement, including how fraud might occur by discussKJns vilh management to understand where management considered there is a susceptibAity lo fraud. Audit procedures performed by the engagement team induded.. evaluation of the controls established to address the risks related to irregularities and fraud., testing manual joumal entries. in particularjoum81 entries delemined lo be large or relating lo unusual transactions based on our understanding of Ihe business: idenlifwng and testing related paty transactions.. complelion of audit procedures lo conclude on the compliance of disclosures in the annual report and accounts with applicable financial reFMyb'ng requirements. Assessment of the appropriateness of the collective CoMpeter￿e and capabilities of the engagement team included consideration of the engagement team's- understanding of. and practical experience with audit engagements of a similar nature and comple￿lY through appropriate training and participation knowledge of the industry in which the client operates understanding of the legal and regulatory requirements speeFfic to the entity. We did nol identify any matters relating to non-compliance ￿ryth laws and regulation c* relating lo fraud.

0￿uSign Enwlope10. 41E9F63F43281450F4941-B22S652C6D9D 27 O GrantThornton Independent auditor's report to the members of YHA (England and Wales) Use of our report This report is made solely to the charitable companYs members, as a bryJy. in a¢¢ordance with Chapter 3 of Part 16 of the Companies Act 2C(16. Our audit work has been undertaken so that we might stale lo the charitable company's members those matters we are required to stsle lo them in an audilorfs report arKt for no other purpose. To the fullest extent permitted by ￿w. we do not accept or assume respc¥nsibilily to anyone other than the charitable company and the charttable company's members as a body. for our audit work. for this report. or for the opinions we have formed. Peter Edwards Senior Statutory Auditor 'for and on behaff of Grant Thomlon UK LLP Statutory Auditor. Chartered Accountants Sheffield 10July2021

DrKuSigTr Envelope ID.. 41E9F63F42814sQF.9941￿22￿2C6D￿) YHA (England and Wale$ Financial statements lor the y•ar •nd•d 28 Febnwry 2021 28 Consolidated statement of financial activities (incorporating the consolidated income and expenditure account) urY￿1￿cto￿ R•stslded EndowmgTht Funds Funds Funds Tolal 2021 Total 2020 Income IrKomefrem charftsb aciNth89 IrKome from Irading acb¥ll￿S (YFLA Tr8th¥J Lwnitedl D￿a]IonS, grfts and legatyes Grants recevable coronavir￿ Job Retsntith S£hÉffp8ym receNal￿e Inveslrnenl aTrJ similgr kKom& Tolal income befow netpn on thsp)salthl taTyble fixed asse N81 gaSn on drSpC￿ d18n￿O fix•J 47. 6.893 1.575 314 14 2.023 27 14904 210 55.873 210 Tota Incorn• 55,873 Exp•ndltyv• Costs of charl8t4e act1￿1 CA)5ts oftradiry actNknes Tralir¥J LvrMtal1 FuTrr 10M9 38Ng5 1.•29 301 51.458 5.314 384 1.829 Total •Apondli￿O 29.716 10.839 40.62$ 57.156 ijirealised gainsl(k)sseslun in¥e5trn•ts Regth'sed gal￿ on Invesbnerts 24 24 14 l•t Incom￿{4XP•Trt￿lI￿0> bDfor• lax 1146nl 310 114,2781 11.2831 Tax on LMrr￿•l Net Incom￿(expe￿IlUrtr It4672) 3lQ 11.2831 T￿nSfer bet￿ft fuTrts Not I￿orn￿l￿p9fi￿Ily[¥l •ftwtr¥nsl•rg 25 14 114.6581 1141 1142701 11,2831 other rn¢owi8•d gaim and losses Aciuarial Ilosslon defined berfil P￿l￿SCI￿nE Aduarial Ilossesl thi srthrr 23 (6701 11891 23 N•t mowaTr*nt In funds 115J511 11,5081 Fmd balarfes ai 1 March 2020 Fund balances carrlgd frnrd 4t 28 Felxuary 2021 X133 41.142 42,650 4345 2Q171 41,142 AJI income was from continuing operations. "Information up to and including net incomelexperK1il￿e represents the infcrfmation required by the ' Companies Act 2CK)6. The accompanying accounting F4)licies and rntes fom an integral part of these finanryal statements.

DorJJSwJn EThvelop¢10.. 41EgF63F4281450F-9941.B225652C6D9D YNA (England #nd Ylales} Financlal statements for th• y•ar end•d 28 Februwy 2021 Balan￿ sheets Group Company 2021 2020 £'ooo £'ooo 2021 rooo 2020 £'ooo Fixed assets Tangible assets Intangible fixed assets Inveslrnenls 12 13 14 94.518 626 98.652 94,518 626 1,IM5 96.189 98,652 960 100.452 961 100,453 96,188 Current assets Stocks Debtors Cash at bank and in hand 15 16 28 351 2.356 2.558 5,265 351 2.356 2.558 5,265 2.152 4134 6.380 2.152 4.134 6.380 Croditors: amounts falling due wlthin one year 17 (59,082) 112.586) (59.093) {13,981) Net curront liabllttles 152,702) (7.321) 152.713) (8,7161 Total assets less currenl Ilabilitles 43.486 93.131 43,476 91.737 Creditors: amounts falling due after more than one year 19 (8.814) (43.720) (8,814) (43.7201 Provisions for liabilities (1.233 {1,116} (1,233) (1.1161 Net assets excludlng penslon liablllty 33.439 48.295 33,429 46.901 Mulli*mployer pension scheme liability Oefined benefit pension scheme liability Net assets 23 23 (1.8661 15,4021 26,171 {2.2781 (4,8751 41.142 {1.866) {5.402) 26.161 {2,278) {4.875) 39,748 Funds Endowments Restricted funds 24 25 961 4.049 5,010 4,345 5.389 4,049 5.009 4,345 5.390 Unrestricled funds excluding pension 3.854 24.196 (7,2681 20,782 19.090 24,196 {7,1531 36,133 17,695 24,196 17.1531 34.738 Revaluation reserve Pension reseNe Total unrestricted funds 24,196 17.2681 20.771 23 Total charity funds 26.171 41.142 26,161 39.748 The financial statements were approved by the Board of Tn￿te¢S on 10 July 2021. MHart Trustees M Holbum Company registration number= 282555 The accompanying accounting poI￿leS and rK)tes fomi an integral part of these financial ststements.

tyxjsign Envelope ID." 41E9F63F4281450F-9941-8225652C6D9D YHA (England and Wales) Flnanclal 5tatement$ for the year eTh1ed 28 Felwwary 2021 Consolidated Statement of Cash Flows Note 2021 £'ooo 2020 £'Mo Cagh flows from opttrating activities Nel cash provided by operating a¢tlvttles 27 (15.2271 5.169 Cash flows from Investlng acllvllles Investment Income {including interest received) Sale of tangible fixed assets Purchase of tangible and intangible fLxed assets Net cash used in investlng actlvitles 20 379 11.226) (8271 26 {10.210) {10,184) Cash flows from financing activities Repa￿llent of b(Things Capital element of finance lease rentsls Cash receipts from borrowings Interest paid Net cash providedl {used In) by financlng actlvllies 1191 (1991 19,219 11.3711 17,630 (53) {197) 6,000 11.438) 4,312 Change in cash and cash equivalents in the reporting period 1.576 (703) Cash and cash equivalénts at the beginning of the reporting period 2,558 3.261 Cash and cash equivalents at the end of the Teporting period 28 4,134 2.SS8 The accompanying accounting policies and rk)tes fr￿￿ an integral part of these fnancial statements.

DocuSlJn Envelope10.. 41E9F63F428145iF-9941-B225652C609D YHA (England and Wales) Flnanclal statement5 fw th• year •nd8d 28 F•bNary 2021 31 Notes to the financial statements Company Information YHA is a company limited by Guarantee leompany number 2825551. The registered off￿e is Trevelyan House. Dimple Road. Mallock. Derbyshire. DE4 3YH. Basis of preparatlon The financial statements have been prepared in accordan￿ with applicable United Kingdc a￿OUntIng slandards including Accounting and Rep(xting by Charilies". Statement of Recommended Practice applicable lo charrttes preparing their accounts in accordanee with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) {effecbve 1 January 20191- Ichariltes SORP IFRS 102)). the Financial Reporting Slandard applKable in the UK and Republic of . Ireland IFRS 1021 and the Companies Act 2006. The financial statements have been prepared on the historical Cost basis except for the m¢)dJficakn"on to a fair value basis for certain financial instruments as specified in the accounting Folicies below. YHA (England and Wales) meels the defin￿on of 8 puljic benefit entity under FRS 102. and applied the sections in FRS 102 as applicable. The financial stslements are Presented in Slerting £'OC4). Golng COIIC•rn These finaneial statements have been prepared on a going concem basis taking note of the guidance issued by the Financial Reporting Council on Going Concem Assessments in determining that this is an appropriate basis of preparation of the financial statements. The Trustees have revie1￿1 lo￿aSts lo July 2022 as well as our longer-temi proieclions to February 2024. Worst case scenari05 were modelled based on likety levels of pandemic restrictions and. taking these into account, it was CO￿lUded that ￿ ch￿tY will be able to meet its liabilitie5 as they fall due over the period. Nolwilhslanding this positive indication of the financial stability of the ch*ity and the progress made on vaccillalions there rernains a scenario in thich there are further prolonged Covid-19 I￿kdOWn5.11 is also possible, though unlikely. that HSBC wll wlhdraw Credit approval bef￿e a formal agreement is signed. In either of these circumslance that would represent a material uncertainly which could cast doubt on the companls abilily to continue as a going COr￿ern. Nonetheless the Trustees expect that YHA has sufficient resources to enable r( lo contsnue to adopt the going concern basis in preparing the financial stslements. These fjnancial ststemenls do not include any adjustment Ihal would arise rf the going concern basis of preparation was not considered appropriate. Basis of consolldatlon The group financial slalements COr￿1￿ja1e of YHA and of its subsidi¥y undertaking (see note 14). Subsidiaries are defined as entrknes where the parent charty has control arKI derives financial benefit arKJ are consdidated on a line-by-line basis. Significant judg•m•nts and •stlmal•s Preparation of the financial statements requires management to make signtficant judgemenls. eslimates and assumpttons about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The eslimales and asS￿lated assumptions are based on hislorical experience and other factors that a￿ considered to be relevant. The items in the financial statements where these judgements. esb"mates and assumptK)ns have been made include..

Docusiw Env?kn￿ ID.. 41E9F63F.6281450F.9941.8225652C6D90 YHA (England and W•l•s) Financial statements for the year ended 28 Felxwary 2021 Notes to the financial statements Signlficant Judgements and ¢$tlmate$ {¢ontln¥•d) Retirement benefit $¢hemes The delemiinalion of the pension cost defined benefft obligation of the Group's defined benefrt pension schemes depends on the selection of certain assumptions which include the diseounl rate. inflation rate, salary growth and mortality. Dtfferences arising from actual experience or future changes in assumptions wll be reflected in subsequent periods. Nole 23 provHJes infomialion on the assumptions used in these financial statements. The Group also participates in a mulli-employer defined benefrt scheme, which is accounled for as a defined contribution scheme. administered by The Pensions Trust, who are responsible for the above assumptions in relation lo delerrnining the totsl liabilty of the overall scheme. As a participating employer, the YHA'S share and contribLrtion lo the liabilities of the scheme is reviewed and agreed by the Trustees every 3 years. Under the provisions of FRS102 this liability is induded in these statements on a discounted nel present value basis. Further details on the accountin9 policies re￿tIng lo the multi- employer defined benefit scheme are provided in note 4. Provisions These financial statements irtdude provtsions for liabilities as at 28 February 2019 that have arisen as a result of 8 past event. and that are judged probable lo maleri81ise at a future date. Where precise factual valuations of Ihe IFability are not available, judgement has been used to estimate the size and probability of the liability. SpecrfKally. these provisions include estimates of dilapidation liabilities under property leasehdd contracts and are ststed on a net present value basis. Assets undor Con$lru¢llon These represent spend and work4n-progress on partially complete assets that are not in productive use in the business. This wll principally be (but not exdusivelyl major refurbishment and development projects in YHA'S estale portfolio and business systemsllT infrastruclure projects. Where projects stretch over more than one year the values are reviewed to ensure that the spend still rep￿SentS a tsngible or intangible asset. Grants The recognition of grants and capital contributions in these fmancial statements involves judgements as lo whether perfomance or other relevant enlTtlemenl conditions have been mel. The recognition of grants in reslricled funds involves a judgement as to Ihe Useful Economic Lrfe of the asset to whth it relates. Principal accounting poli¢ie$ Income Income generated from the operation of youth hostels resyesents the fair value of the amount receivable by YHA for goods supplied and semces prowded. excluding value added tax and nel of trade discounts. Consequently. the income due from a partKular guest is recognised when that guest stays wth YHA. Payment received from guests in advance of their stay is recorded as ijeferred income (see note 181. Membership subscriptions a￿ re¢ognis8d r￿eNed. Where hostels have been leased to organisations to provide accommTrJ8tion for charitsble purpose these amounts have been reeognised as in¢(￿e.

DocuSigTr En¥ekJpe ID.. 41E9F63F-6281450F-994l-B22￿2c6D￿j YHA (England and Wale5) Flnancial stat•ments fov th• year end•d 28 Febnw 2021 33 Notes to the financial statements Prlnclpal accountlng policlos {contlnu8d) Income from YHA Trading Limtted represents commercial g(￿d$ supplied and services provided by that YHA company lo its customers and income is recognised when the gcx)ds or services are delivered. Donations. gifts and legacies are recognised in the statement of financial actNilies wh8n it probable that the income will be received. and all entitlement conditions wll be mel. The Charity carries out w￿k for govemmenl bodies and income under these ¢c￿traCtS is recognised once milestones attached to income have been met. Incoming resour￿ on governmenl contracts are included in the statement of financial actNilies when the Charity is entitled to the income and the amount can be quantified reasonable accur8Cy. Grants Revenue grants are credited as incoming resources when they are receivable provided conditions for receipt have been C￿PIled wtth, unless they re￿Ie to a Specffj￿ future period. in which case they are deferre¢J. Grants for the purchase of fixed assets are credited to restricted Incomr￿ resources when receivable. Incom• from inv•8tm•nts Inveslmenl income is recognised when receNable. Endowments Endowment income is credited to the income and expenditure account on a receivable basis. Income from reslricled endowments nol expended in a¢￿dance with the restrictions of the endowment. is transferred froffl the income and expenditure account to restricted endovdments. Any realised gains and losses are retsined wlhin the er#Jowment in the balance sheel. Restricted permanent er￿OWM8nt This relates lo funds where the donor has specified that the fund is to be perManen￿Y invested lo generate an income stream to be appl￿ to a particular obJ"ective. Reslricled expendable endowment This relales to funds which were permanent end0￿ents bul given the srnall seale of the specific individual funds, agreernent was received frorn the Charities Commission that these could be spent in line with the original objective of each furKI. Fund a¢¢ountlng Restricled funds are those for which specffied purposes were laKI down by the donor or granl-giving t￿dy. Expenditure for those pury*)ses is charged to the appropriate fund. Unrestricted funds are donati￿5 and other income received or generated for expenditure on the general objeth.ves ol YH When grants and donations are r￿1ved for a speafic pur[￿ involvin9 capital investment. the cash will be recorded against a restricted fund. When the investment has been made. the relevant Capital asset will be recorded against the relevant fund, and depreciation of the asset charged against the fund. Once any restrictions on the use of the asset have expired. the asset will be transferred from the restricted fund to YHA'S unrestricted funds. Tangible and lntangits￿ assets Fixèd assot accounting policy Tangible and intangible fixed assets are stated at cost. ￿ of depreciation. No depreciation is charged during the period of development or construction.

DocJJSign Envelope ID.. 41E9F63F28145oF.9941￿225652C6D9D YHA (Enyland and Wales) Financial stat•ment$ lor thè y•ar •nd•d 28 Feljrnary 2024 Notes to the financial statements Principal •ceounting pollcle$ (Contlnued Depreciation is calculated to write down the cost or estimated residual value of all langible fixed assets over their expected useful lives. Al dep￿lat￿)n is on a slrdighl-line basis. and assets are amortised as follows: Freehold properties Freehold properties Freehold properties Leasehold properties Leasehold properties Fixtures & Fittings land not amortised buildings superstructure up to So years buildings SUtFstructure l other between 10 and 30 years bjng tem leases: mart(el value over length of lease building shorter of econom¢c lrfe or length of lease between 3 and 15 years Assets uThJer constructi1￿ represent spend and work•inyow on partially Complete assets that are not in productive use in the business. This will principally be {but not exclusively) major refurbishment and devekrf)menl projects in YHA'S estate portfolio and business systemsllT infrastruclure projects. Assets under ¢onstructi¢)n are carried at cosl and are r￿1 depreebated until they come into use and a capitalised in the asset register. Where the dale of capitalisalion is later than the date of productive use. 8 relrospeclive depreciation adjustmenl is made to correct Nel Bwk Value (NBV). Amounts totalling £242k were reelassiffed in the year as shown m note 12. Impaimient ol assets Al each reporting dale fixed assets are reviewed to detennine whether there is any indication that those assets have suffered an impaim)ent k)ss. Investment in subsidiaries The consolidated financial ststements incorporate the financial ststemenls of Ihe company and entities onlrolled by the group (its subsidiaries). Control is ach￿Ved where the group has the power lo govem the financial and operating policies of an entity so as lo obtain benefits from its activit￿. All Intr8￿rOUp transaetitins. balances. income and expenses are eliminated in full on consolidation. Investments in subsidiaries are accounled fcy al cost less impairment in the individual financial statements. Investments Assets held for investment purposes are measured at far value. Changes in fair value arg recognised in the incorne and expenditure aCcI￿nIS. Fair value is estimated using value al the balance sheet date. Net gains and losses on revaluations and disposab durir¥J the year are indLJed in the slaternent of financial activities. Expenditure Expenditure. which is charged on an a¢mJals basis. is allocated between.. Expenditure incurred directly in the fu￿lMent of YHA'S objectives (direct charitable). This includes head office support costs which are directly altributed to the operation of youth hostels. Expenditure incurred directly in Ihe effort to raise voluntsry contributions (membership, fundraising and publicityl- Expenditure incurred in the governance of YHA. This indwjes intemal and extemal audit cosls, chief executive costs and similar govemance costs. Redundancy and ternilnatlon payments All redundancy and termination payThenls. ir￿lUding ex-gralia payrnents and amounts in lieu of notice are charged or accrued as incurred.

Orthsign En¥dopE ID.. 41E9F63F￿z8l45OF.g941-622￿2C8Dgo YHA (England and Walesl Financial statements for the y•ar ended 28 Fe￿￿￿ry 2021 35 Notes to the financial statements Principal acc4)unllng policles Icontlnued) Debtors Short term debtors are measured at transaction wKe, less any impairmenL Loans receN8ble are measured inilially al fair value. net of transactK)n costs. and are measuod subsequently al amortised cost using the effective interest method. less any impainnenl. CreditorJ Short term trade creditors are measured at the transaction price. Other financial liabilrties, induding bank loans. are ffleasu￿ initially al fair value. net of transaction costs. and are measured subsequenuy at amortised cost using the effectrve interest mettr￿￿. Cash and cash equlvalents Cash is represented by cash in hand and deposils with financial institutions. Provlslon$ for Ilabilities Provisions are recognised when the group has a present obligation (legal or conslructivel as a resutt of a past event. it is probable that the group will be required lo settle the obligation. and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the besl estimate ol ￿ consideration required to settl8 the present obligation al the end of the repjrting peric¥J. taking into account the risks and uncerlainties surrounding the obligation. Where the effect of the time value of money is material. the amount expected to be required lo settle the obligation is recognised al Present Value using 8 pre-tsx discount rate. The unwinding of the discount is recognised as a finance cost in the SOFA in the period it arises. The group recognises a provtsion for annual rea￿ accrued by employees as a result of services rendered in the current period, and which employers are enlilled lo carry forward and use within the next 12 months. The provision is measured al Ihe salary cost payable for the period of absence. Flnancial inst￿MentS Financi81 liabilities are classified according to the substarKe of the￿ governing contractual arrangements. Where the contractual obligations of financial instruments are equivalent to a similar debt instrument. those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the statement of finarrial aclivilies. Finar￿e costs are calculated so as to produce a constant rale of retum on Ihe outstanding liability. Financial liabilrties are initially recLyJnised al fair value then subsequently at amorbsed cost Using the effective interest method. Stocks Stocks are stated al Ihe lower of cost using the first in. first melhcrtj and net realisable value. Leases Leases are classif￿1 as finance leases whenever the temis of lease transfer substantially 811 the risks and rewards of ownership of the leased asset kn the group. Al other leases are classified as operating leases. Assets held under finance leases are recognised inibally al the fair value of the leased asset lor, rf lower. the present value of minimum lease paymenlsl at the inception of the lease. Th8 corresponding liability lo the lessor is included in the statement of financial position as a finance lease obligalion. Lease payinents are app(Kb'oned between finarKe charges and reduction of the lease obligation using the effective interest method $0 as lo achieve a ￿rtstant rate of interest on the remaining balance of

DoJJ&'gn Envelope ID.. 41E9F63F4261450F_9941-v225652￿o YHA (England and Wale51 Flnanelal statements for the year ended 28 Febw 2021 36 Notes to the financial statements Principal accountlng poll¢les (¢ontlnued) Ihe Ilability. Finance charges are deducted in measuring income and expenditure. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impaimient losses in the same way as ovmed assets. Rentals payable under operaling leases are charged to Ihe SOFA on a straighl-line basis over the lease terrn. unless the rental payments are structure to increase in line with expected general inflation, in which case the group reccgnises annual rent expense equal to amounts owed to the lessor. The aggregate benefit of lease Ir￿entiveS are reCCN3n￿ed as a reduction to the expense recognised over the lease term on a Stra￿ht-lIne basis. Retir•m•nt lJ•noffts Defined contribution group personal pen$lon schernes Contributions payable lo the sehemes in resped of each aeeounling perK#J are included in the statement of financial aclivilies in thal period. Deflned beneflt pension scheme {closed) The scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basi$ using the attained age method on the basis of triennial valuations and are discounted at appropriate high-quality corporate bond rates. The nel surplus or defictl is presenled separalely from olher nel assels on the balance sheet. A net surplus w(yJld only be reec*Jntsed to the extent that il is recoverabb8 by the group. The current Servi￿ cost and costs from settlements and curtailments are included in the statement of rinancial aclivilies. Past service costs are spread over the period until the benefit increases vest. The difference between interest on the scheme liabilities and the eX￿ted retum on scheme assets is included in interesl payable or investment income as appropriate. Actuarial gains and k)sses are reported in the consolidated statement of financial activities. Multl4mployer defined benefft xhen YHA partieipales in a multi-employer scheme. administered by The Pensions Trust, which provrdes benefits for 854 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is nol possible for YHA lo obtain sufficient infonnation lo enable it to account for the scheme as a defined benefrt scheme. Therefore, YHA accounts for the scheme as a defined contribution scheme. The scheme is subject lo the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This. together wth documents issued by the PenS￿nS Regulator and Technical Actuarial Standards issued by the Financial Reporting Ctrjncil. sel out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is dassrfied as a'last-man standing a￿angernenr. Therefore, the company is potentially liable for other parbcipaling employers. obligations rf those employers arg unable to meet their share of the scheme deficit lollowng wlhdrawal from the scheme. Participating employers are legally required to meet their share of scheme def￿1t on an annuity purchase basis on wiihdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2017. This actuarial valuation showed assets of £794.9m. liabilities of £926.4m and a deficil of £131.5m. To eliminate this funding shortfall. the truslees and the participaling employers have agreed that addit￿nal contributions will be paid lo the stheme as follows.. From 1 ￿)111 2016 10 31 March 2025= £12.95m per annum (payable monthly and increasing by 3% ea¢h year on 1st April). The recovery plan contributions are allocated to each participating employer in line with their estimated share of the ser￿ 1 and Series 2 scheme liabilities.

Envelope ID." 41E9F63F*3281450F4941.B225652C6D9D YHA (England anrf Wal￿) Finan¢ial stslements lor the ended 28 Febnwy 2021 37 Notes to the financial statements Prfnclpal aeeountlng pol1cl￿ (contlnued> Where the scheme is in deficit and vthere YHA has agreed to a def￿1t funding arrangement, YHA recognises a liability for this obligation. The amounl recognised is Ihe net present value of the deficit reduction contributions payable under Ihe agreement that relates to the deficit. The present value is calculaled using the discounl rale detailed in these discbosures. The unwinding of the discount rale is recognised as a finance cost. Glft ald payment to parent charlty The company pays all its taxable proffts for the year to ils parent charty under the gift aid scheme. These gift aid payments are recognised as distributions lo owners in equity within retained earnings. At the reporting date the Boaid had indicated its intention lo pay the taxable profits to the parent charity in respecl of the reporting period. The payment is expecte¢J lo be made within 9 months of th8 end of the reporting dale. The company previousty recognised gift aid payTreDts in the income statement in the year that proffts arose. The cornpany has changed its accounting p￿ICY as a result of The Financi81 ReF)Orting COU￿11 clarifying the accounting treatment for such pa￿nents in its triennial rewew of FRS 102. The change in accounting pcAicy for gift aid payments resvns in the company recognising a taxation harge on its profits f(x the year. However. the applution of the exeeption under paragraph 29.14A of FRS 102 provides relief in respect of the 8ecounling for the tax charge. This results in an overall £nil charge for tax in the income statement. This exception is only applicable as ils probably that Ihe gift aid payment will be made by the company lo the parent charity within 9 months of the reporting dote. Grants and ¢ontra¢ts 2021 2021 Restricted Rgstricted Funds Funds (Capital) (Other £'ooo £'ooo . Total 2021 £'ooo Total 2020 £'ooo Covid related grants Other grants Grants receivable in the year 2.421 83 2,504 2.421 85 2.506 314 314 All grants recewabfe in the year related to restricte(I fu￿lS (see note 25). During the year grants totalling £2,421,000 {2020: NIL) were received to support the ¢harily through the Covid pandemic including of which £1,464,000 related lo business and hospitality support grants recewed from Local Authoritj'es. This funding was supplemente(S by supwt fr(￿ the National Lottery Cultural RecA)very Fund with a grant award of £866,000 wth £780.000 being received in the year. Other grants were received from the London Communty Response Fund of £45.000, Heritage Emergency Fund of £50.000, Wales Third Seetor Resilience Fund of £56.000. and the Wales ERF Sector specif￿ Grant of £25,000. AII grants were gratefully received in the year. and these have really helped to provide much needed finan¢ial support in these very thallenging times. Other wants received in the year amounted to £85.IXJO.

Docus￿an Envekpe ID.. 41E9F63F4281450F-9941-B225652C609D YNA IEn9land and Vlales) Finan¢ial statements for the year ended 28 FeblU￿ 2021 Notes to the financial statements Charitable Income 2021 £'ooo 2020 £'ooo Income from operating yTrAh hostefs Membership income received directly by the grojp Totsl income from operating youth hostels 10.598 883 11.481 45,956 1,108 47.064 Investment Income 2021 rDOO 2020 £'ooo Listed stocks and shares Cash and deposits 20 26 20 27 Interest and financing ¢osts 2021 £'ooo 2020 £'ooo Net pension cost On bank loans, overdrafts arKI Ot￿r loans Financing eosls amortised Finance charges in respect of finance leases 83 1,296 70 128 1,269 162 1.454 1.566 Interest payable is included within other direct costs (see note 91. Total •xpendlture Due lo the slwcture of YHA il is considwed thal any akration of supwt Costs from costs of operating youth hostels would be immaterial. Direct Other Dire Costs Dep￿C.n £'ooo £'ooo Total 2021 £'ooo Total 2020 Costs £'ooo Costs of Operating Youth Hostels Costs of Operating YHA Trading Ltd Other Fundraising Costs Other costs- Govemance Costs 19.882 13.306 1,829 101 144 15.380 5.163 38.351 1,829 301 144 40,625 51,309 5,314 384 149 57,156 200 Total expenditure 20,082 5,163

O¢oJSign Erwelope ID.. 41E9F63F4281450F-9941-8225652C609D YHA (England and Wales) Flnanclal statements lor th? year endqd 28 Febnwy 2021 39 Notes to the financial statements Total 2021 Totsl 2020 £'ooo Depreciation comprises: Depreciation on owned tangible and inlangible assets Depreciation on tangible assets held under finance lease 5,148 15 5.163 5.288 121 5.409 Other direct costs comprise: Repairs and maintenance of buildings- Ongo￿ Repairs and maintenance of buildings- d1lap1dats￿ provisi( Fuel. heat & light Food and beverage costs Activity & transport providers Restructuring costs (including redundanGy) Travel Communication costs Cleaning and laundry Interest payable Inole 8) Marketing and Publications Insurance ALJditors' Remuneration- audit Auditors, Remuneralron- non-audil services taxation (inc.IXBRL) Operating lease rentals- land and buiklings Operating lease rentals- f￿lureS & frttings Other direct costs 4,078 100 2,160 5,108 733 80 1,153 450 3.028 1.566 859 446 36 100 1.432 836 1,167 426 459 822 1,454 385 498 2.011 492 2.626 15,380 2.124 678 3.876 26,476 10 TNstee5 and employe•s All Oirectors are Trustees and all Trustees are Directh. Group Staff costs during the year were as follows: 2021 £'ooo 2020 Eooo Wages and salaries Social security costs Other pension costs Redundancy costs 17.061 1.292 909 21,881 1,560 949 80 24.470 20,429 The average number of emptfyyees of YHA duriNJ the year was 977 (2020: 1.2721. The fulktime equivalent number of employees was 632 {2020: 7851. The Chief ExeculNe is the highest paid employee army is not a Truslee af the organisation. Hig annual salary in 2020121 was £128.174 per annum12020.. £128.174). The Board of Trustees neither received nor waived any emoluments during the year12020.. £nill.

Oocu&gn En¥eknp? ID.. 41E9F63F4281-45OF.9941-8225652C6DgD YHA (Englawl and Wales) Financlal statements for the yw emled 28 Febvuary 2021 Notes to the financial statements The number of other slaff total emoluments for the year exceeded £60.000 was as follows: 2021 2020 £60,000- £69.999 £70,000- £79,999 £80,000 - £89,999 £90,000- £99.999 £100.000- £109.999 £110.000 - £119.999 £120,000- £129,999 £130.000- £139,999 YHA made payments totalling £46.122 {2020: £24.0321 into defined 0￿1b￿￿.0n schernes for 1312020.. 6) of these employees. Out of pocket expenses were reimbursed to Trustees as follows.. 2021 Nurnber 2020 Number 2021 £'ooo 2020 £'ooo Travel and attendance at meelirwJs 12 During the year. no goods were purchased from companies in which Trustees held an interest. No amounts were owing to such companies al the end of the financial year. The key management personnel of the parent charity. the Tntst. cornprised the Trustees. thg Chief Executive off￿eT. and increased from four lo five other Executive Directors for most of the year. reducing down again lo four from December 2020. The total employee benefits of these key management personnel of the YHA were £660.060 {2020: £533.7161. The remuneration of the key management personal is determined by thg Board's Remuneralicms Committee. In determining this, the Committee makes use of extemal consullalions 8nd comparisons to ensure that the pay and emoluments of YHA slaff are fair in value lo those having similar responsibilities and circumstances in organisations in th8 not for profil and commercial sectors. Salaiies are sel at the lower quartile of recognised industy wide benchmark surveys. The Chief Executive Officer and other Executive Directors repaid ther cosl-of-living increase granted by the Remuneration Committee before the covid crisis and induded within the March 2021 payToII. In addition. the senior team. including the six newly apFrf)inted Associate Directors. agreed a voluntary 10% salary cul for a Ihree-monlh perirxl over the winter months. The appointment of these six existing team members into their new roles. proved invaluable in dealing with the complexities of managing through the COVID-19 crisis. The Chief Execulwe and one other Executive Oireckx also used payroll gNing to make charitable donats'ons to the YHA tolalling £34.909 in the year.

D￿USign &)Ydope ID.. 4lE9F63F428l4￿_9941.B225o52c8D9D YHA {Ertglab￿ aryl Wale5) Flnanclal statements for the year ended 28 FebNary 2021 41 Notes to the financial statements 11 Charitable ¢ompany r•sults Th8 charitable company has taken advantage of Section 408 of the Companies Act 2006 and has not included ils own income and expenditure account in these finanoal statements. The results of YHA are summarised below: 2021 £'ooo 2020 EOOO Total income Total expenditure.. Net lexpendilurel Nel investments gains Nel lexpendilure} 24.240 (38,796) 114.556) 48,979 <51,842) {2,8631 114.472) {2,863} During the year the charitable company received a gift aid donalion amounb.ng to £1.579,000 (2020.. £1,354,000) from its trading subsidiary. 12 Tanglble fwed assel•1gioup and Mmpany) Long Short Flwturns, Freehold Lw•hold L•4whold Fitting & L&B L&B •qulpment eooo £'ooo As$ots under con$truction Total £'ooo £'ooo £'ooo Cost Al 1 March 2020 Reclassrficalions Transfers Adéilions Disposals At 28 Fetuary 2021 82.301 31.124 21.208 19.608 5,099 159.340 12421 (242} {4,1031 271 3.176 153 459 553 12831 31.853 422 91 (491 20.072 1,156 13321 1.025 159.922 85,630 21.342 Dgpreclation At 1 March 2020 Provided in the y Disposals Al 28 February 2021 23.618 2.191 9.037 954 (126) 9.865 12.962 15.071 60,688 4,879 {163) 65.404 1371 16,000 25.809 13.730 Net book amount At 28 February 2021 59,821 21.988 7.612 4.072 1.025 94,518 At 29 February 2020 58.683 22.087 8.246 4,537 5,099 98.652 All tangible r￿ed assets were used for charitable purposes. The nel book amounts staled above include fixtures. f￿ing$ and equipment hekd under finance leases and similar hire purchase contracts of £NIL {2020= NIL) and freehofd property held under finance leases and similar hire purchase conlracls of £970.1)00 {2020: £985,000)- Dep￿ciation of assets held under finan￿ leases and similar hire purchase eontracls was £NIL {2020- £106.0001 on fixtures. fittings and equiprnenl and £15.000 {2019.' £15,000) on freehold property. Land values were increased on transilion to FRS 102 in 2016 to reflect fa market value. A post year- end rewew of these values based on valuations received as part of the reffinancing exercise in 2017 found no rea50n to amend these values.

Oocu&'gn En¥ekJpe1Tr. 41E9F63F4281450F.9941-8225652C6D9D YHA {England and Wal•s) FlnancJal Statements for the year ended 28 FelJYu•ry 2021 Notes to the financial statements 13 Intangible fixed a55ets {group and company) Flxiur•s. Fktting & equlpment £'ooo Assets under onstruction Total rooo Cost At 1 March 2020 Transfer Additions Al 28 Fetrfuary 2021 1.057 111 1941 70 87 1,168 70 1.238 1.151 Depreciation Al 1 March 2020 Provided in the year Al 28 February 2021 328 328 612 612 Net book amount At 28 February 2021 539 87 626 At 29 February 2020 729 111 14 FIX￿ asset Investmenls Total fixed asset investments comprise: Group 2021 rooo Company 2021 £'ooo 2020 £000 2020 £'ooo Interest in group urKlertakings Other fixed a55et investments Mark8t value at 28 February 2021 960 960 1.044 1.045 960 961 Internsts In group uTrdwtaklng At 28 February 2021 the charitsble company held 1(KJ% of the allotted share capitsl of the following: Result for tho flnanclal peri¢)d Country of incorporalioTr Class of sharg capital hèld Company Capltsl and number reserves England and Wales Ordinary shares 05373368 YHA Tradiro Limited 11 194,014 rooo YHA Tradlng Llmlted Tumover Expenditure Result for the period bef¢Ye tsx 2.023 194

tkcu&'un Envelope ID.. 41E9F63F4281450F-9941.B225652c61Y￿j YHA (En9land and Wales) Flnan¢ial slatements lor the ye¥ ended 28 Fe￿￿Y 2021 43 Notes to the financial statements Othgr fix•d as50t investments Group and Company £'ooo Maiket value a5 at 1 March 2020 Additions Disposals Realised gain Unrealised loss Market value at 28 February 2021 254 {245) 17 58 1.044 At 28 February 2021 the other fixed asset inveslments were held as follows: 2021 2020 £'ooo Listed stocks and share$ Cash Market value al 28 February 2021 1,014 30 1,044 912 48 960 Al 28 February 2021 the folb)wing investsnents represented more than 5% of the portfolio by market Value: Percentage Value £'ooo Close Select Fixed Income Inc 15 stocks Group and Company 2021 £'ooo 2020 £000 ' GLKJs for resale 351 16 Debtors Group and Company 2021 £'ooo 2020 £'ooo Trade debtors Prepayments and accrued income Other debtors 360 1.004 992 2,356 407 1.574 2,152

t￿&•N EnveknpÈ ID.. 41E9F63F-6281450F.9941.B225652C6090 YHA {En9land and Wale5) F•nan¢ial slatements for the year •nded 28 Feb￿￿ry 2021 Notes to the financial statements 17 Creditors: arnounts falllng due w1th5n one year Gnwp 2021 rooo Company 2021 £'ooo 2020 £'ooo 2020 £'ooo Bank loans Other loans Trade creditors Amounts lo group undertakings Social security and other taxes Other creditors Accruals Deferred income {nole 18) Amounts due under finance leases 52.371 52.371 19 2,481 19 2,481 1,396 1,570 216 1.991 6,108 200 13,981 1,212 1,212 11 423 895 1.907 2.153 423 895 1,907 2,153 118 59,082 1,570 216 1.992 6,108 200 12,586 59.093 18 Deferred in￿rne Group and Company 2021 £'ooo 2020 £'ooo At 1 March 2020 Released during year Deferred during year At 28 February 2021 9,207 (9.207) 3,551 3.551 9,111 19.111) 9,207 The deferred income consists of.. Advance bookings Un-allocaled cash reeeipls 3.459 92 3.551 8.984 223 9,207 Creditors.. amounts falling due Nwthin one year Creditors.. amounts falling due after more than one year 2,153 6.108 3,099 9.207 3.551 19 Creditors= amounts falling after more than one year Group and Company 2021 £'ooo 2020 £'ooo Bank Loans Other loans Amounts due under finarKe leases Deferred income Other amounts 7.075 19 253 1.398 69 8.814 40.174 370 3,099 74 43,720

Dtrx&gn Erlv8lo￿lo.. 41É9F83F42814S)F-9941-82256S2C6D YHA (England and Ylale5 Fhnanciaj stat•ments for the y•ar •nd•d 28 F•bNary 2021 Notes to the financial statements 20 Provlslon for liablllties General provisions Dilapidation provision Total provisions rooo £'ooo £'ooo Balance at 1 March 2020 Released during the year Arising in the year Balance at 28 February 2021 42 142) 1,074 1,116 1421 159 1,233 100 1.174 S9 The general provision includes the holiday balances accrued as a result of services rendered in the urrent peric%1 and employees are enlitled lo ￿rry forward. The dilapidations provision represenls obligations for rented properties vthich are due for renewal in the next 3 years. £854.000 of the proVi￿on {2020: £804,000) relates to YHA London St Pauls. 21 Borrowln9S Borrowings are repayablp as foliow5'. Group #nd Cofflpany 2021 ar at)d years and Wlthln wlthin Iwo wlthin five Aftèr fve onè yèar y¢ars yèars years £yJoo £yJoo Total £'ooo Bank loans Other loans Finance leases Total Borrowing Cash 8t bank and in hand 52.371 7,075 19 123 7,217 22 371 59,839 4.134 55,705 118 52.492 130 130 Net Borrowings Group and Company 2020 After on¢ After two ar and ￿arS and Wlthln f*lthln two withln After five one year years ar years £'o¢ £'oo £'ooo Total £'ooo 8ank108ns Olher108ns Finance leases Totsl Borrowing Cash al bank and in hand Net Borrowings 40.174 40,174 22 570 40.766 19 200 219 118 40.295 252 252 38.208 The Bank Loans are secured by fixed charges over certain properties of YHA aThJ a floating charge over all the assets of YHA. Interest lexduding margin) is charged al tr￿th frKed and variable rates belween 0.026Yo and 0.07%.

Oocusiyn Envel4)e ID.. 41E9F63F4281450F-9911-B225652C6tlgD YHA (Enyland and Wales) Flnancial statemnts lor the year wKled 28 F•bYuay 2021 Notes to the financial statements 22 Financial Instruments Group 2021 £'ooo 2020. rooo Flnanclal assels measured at amortised cost Trade debtors Other debtors 360 992 1.352 1,574 1,745 2021 £'ooo 2020. £'ooo Financial liabilltles measured at amortlsed cost Bank loans Other loans Trade creditors Accruals Amounts due under finance leases 59.446 22 1.212 1.907 371 62.958 40.174 22 2.481 1.992 200 44.869 23 R•tlr•m•nt b•n•fits Group and company Historically YHA has operated a number of different penshy￿ Schemes: A final salary defined benefit scheme adrninistered by the Pensions Trust. This scheme is now dosed but the residual liabilities of this scheme are disck)sed wthin our acccMJnts in line with FRS17 definitions. YHA employees also had the OPFJrtunity to join the Pensions TnBt Growlh Plan. This 15 a mulli-employer scheme which has progressed through four versions {or Series). AllhoLsgh sel up as defined contribution schemes. because of the guaranteed benefits they offered, Series 1 & 2 have subsequently been deemed lo be defined benefit sehemes. Series 3 which carried a guarantee that the value of investments would not fall. has also now be re-da5srfied as a defined benefit scheme. Only Series 4 can be classrfied as a defined conlribulion scheme. Although Series 110 3 are defined benefit schemes as defined wrthin FRS17. YHA is unable to identify its share of the underfying. ass8ts and liabilities of the schemes. ACC￿dingly. the contribuliorts have been acwunted for as if t￿Y were defined contribution schemes. YHA operates a defined contribution scheme admintslered by Scottish Widows as well as the auto enrolmenl pension scheme for all new employees land for those existing employees who were not members of either the Grovrth Plan or the defined conlributk)n scheme). All auto enrolmenl contribulions are paid into the Peoples Pension administered by 8&CE. Dofined ben•flt penslon scheme YHA operated a defined benefit pension scheme for the benefrt of staff. The assets of the stheme are administered by Trustees in funds independent IrThn Ihose of YHA and its subsidiary undertaking. Pension costs are assessed. on a triennial basvs and in accordance with the athice of a quaIrf￿d actuary Using the projected unit method. The assumptions. which have had the most significant effect on the results of this yearfs valuation are those relating lo the assumed discount rate used to value the scheme's liabilities, the rate of relum on investments arKI the rates of inuease in salaries and pensions. In order lo minimise future liabilities. the scheme was closed lo new entrants at 31 December 21K12. and to future a¢crual from 31 December 2011.

DorJJSign Envobpe10.. 41EgF83F428145tf-9941-B225652C6D YHA (England and Wales) Financial statements lor tht y•ar ended 28 F•lw 2021 47 Notes to the financial statements A fvl actuarial valuation was carried out at September 2017, showed that the value of those assets was suffiuent to cover 76% of the benefits that had xcrued to members, after alk)wing for expected future increases in earnings. Penslon cost The charge for the Jrar was as fdlows: 2021 £'ooo 2020 £'ooo Defined benefit scheme- expenses Defined contribulion pension schemes Mulli-employer defined benefit scheme 93 450 459 1.002 92 499 450 1,041 Included within the mulli-employer defined b8nefrt scheme contributions atry)vg are amounts of £341.724 {2020: £331.391) relating to addiliwal contribuliorts as part of th8 recovery plan agreed wilh the Pension Trust. The atL)ve charge is exclusive of lop up contributions for the final salary pension scheme of £447.634 12020.. £453,006). In accordance with FRS 102 the r*1 pensKJn liabilty of Ihe defined be￿fft scheme is included on the balance sheet of YHA. The most recent actuarial valuation of the scheme has been updated by an independent qualffied actuary. taking acccMJnt of the requirements of FRS102 to assess the liabilit￿S of the scheme al 28 February 2021. Scheme assets are stated al their market value. The principal assumplions used by the actuary were: 2021 2020 2019 Inllation CPI Rate of increase in salaries Rate of increase of pensions Rate of increase for deferred pensions Discount rate 2.9% 3.2PA 2.9% 3.2% 2.1% 1.9% 3.9Yo 2.0% 2.9% 1.8% 2.2% 4.2% 2.3% 3.211A 2.7% The posl-reliremenl mortality assumptions used to Value the liabiltty at 28 February 2021 rs based on the SAPS tab￿ S2PXA (all pensioners- Pensions Amounlsl a scaling factor of 0% {pre- retirement} and 114% Iposl-retirementl projected using CMI-2020 improvements with a 1.5% pa lorMJ term improvement rale for males and a 1.25% long term improvement rate for females. The life expectancy of a male member reaching age 65 in 2041 is projected to be 22.8 years12020: 23.6 years) compared to 21.2 years {2020 22.3 years) for someone reaching 65 in 2021. The life expectancy of a female member reaching age 65 in 2041 is projected to be 25.1 years {2020: 2S.3 years) compared to 23.6 yeafs12020: 24.0.years) for someone re￿Ing 65 in 2021.

Docusiw En¥eknpe10.. 41E9F63F-628145QF-9941-8225652C6CeD YHA {En9land and Wales Financfal gtaternents lor the year ended 28 FebTri•ry 2021 Notes to the financial statements The split of assets in the scheme and the expected long-term rates of retum y￿e.. 2021 Value £'ooo 2020 Value 2019 Value £'ooo Equities Bonds Property LDI Other Total market value of assets Present value of scheme liabilibes 2.188 7,027 1.071 6.359 6.963 23.608 129.010) 2.357 6.053 1,056 7.524 6,373 23,363 128,2381 4,246 2.294 1,272 7.937 4,585 20.334 125.2291 Net pension liability 15.402) {4.8751 14.895) The rate of return for 2021 is equal to 3.7% (2020= 3.7%). UTrJer FRS 102 the rate of retum is not spltt between the assets of the scheme. The movement in the defrit in year. included in the financial statemenls, was as follows: 2021 £'ooo 2020 £'ooo Conthbutions Additional contributions 93 232 325 {911 406 {4891 92 331 423 1861 540 16681 209 11891 20 4,895 14.8751 Nel contributions less expenses of the scheme Expected return on pension sthme assets Interest on pension scheme liability Actuarial gainl(loss) {see below) {6781 1527 4.875 {5.4021 Deficit in s¢heme at beginning of year Deficit in scheme at end of year Actual relum less expected retum on pension scheme assets Experience gains and losses arising on the scheme liabiltlies Changes in the assumptKJn¥ underlyng the present value of the scheme liabilities 159 1345) 3.173 492 {678) 3.396 11891 Actuarial gainllloss) The nel of the expected relums on pension scheme assets arml interest on pension scheme liabilities of £83.Crf)012020: £128.000) is shown in interest payatle. Changes in the wesenl value of the defined benefft obligation are as follows.. 2021 £'ooo 2020 £'ooo Opening define(I benefit obligation at 1 March Interest cost Actuarial losses Benefits paid Closing defined benefrt obligation at 28 February 28.238 25,229 668 3.362 1,021 28.238 837 554 29.010

Docu&Jn Envew ID.. 4IE￿63F42814xf-￿41-B22￿2C6DgD YHA {En9land and Wales) Flnanciaj statements tr the year ended 26 F•bn￿ry 2021 49 Notes to the financial statements Changes in the fair value of plan assets are as folows.. 2021 £'ooo 2020 £'ooo Opening fair value of scheme assets at 1 March Expected return Expenses Actuarial gains Employer contributions Benefrts paid Closing fair value of scheme assets at 28 February 23.363 406 {91) 159 325 554 23,608 20.334 540 {861 3.173 423 23,363 2021 rooo 2020 £'ooo 2019 £'ooo 2018 £'ooo 2017 £'ooo Fair value of Scheme assets at 28 February Present Value of defined benefit obligation at 28 February Deficit in the scheme Experience adjuslments on scheme assets Experience adjuslments on scheme liabilities 23.608 23.363 20,334 20.496 20.383 (29.0101 {28.238) 125.2291 125,457) (27,4411 {5.402) (4,875) {4,8951 14,961) (7,0581 159 3,173 {2761 197 3,064 1345) 191 157 370 On 27th May 2021 TPT athsed YHA that il has recently been brought lo the attention of the Tnjslee that changes have been made in the past lo the benefits provided lo members from the Scheme. which may not have been executed as required by the Scheme's documentation. This means that, although members are receiving the benefrts that they expected to receNe and 8mployers intended to provKle at the time the changes were Made. they need to verify vthether and when certain histori benefit Ghartges look proper legal effeGt and are seekn.ng legal judgment to a￿rtain this. This process is likely lo take some time but rfjudgemenl went against the Trustee this would result in an increase in liabilities lor this defined benefit scheme. An initial estimaled figure of £1.25m has been provided by TPT as the likely c051 of an adverse ruling. Given this liability is the result of a change made by the adrninistralor5 of the scheme. whilst we await further details YHA reseThes ils right to take such action as may be necessary to protect its posilbon. Multi-employer defined benefit ￿hOMe Under the definition set out in FRS 17. Ihe Pensions Trust Growth Plan Series 1. 2 arKI 3 are rnulti- empbyer pension schemes. YHA is Unab￿ to identify rts share of the underfying assets and liabilities of the scheme5. Accordingly, the contributions have been accounted for as rf they were defined contribution schemes. Schemes 1 and 2 dosed lo new members in 2001. members of scheme 3 have the opportunity lo reman in the scheme orjoin the Scolbsh Widows defined contribution scheme. The last actuarial valuation corKluded and published by the Pensions Trust was at 30 September 2017. The assets and liabiltti.es an¢J comparison to the prevw)us triennial valualton in September 2014 were a5 follow5= 30 September 2017 Mllllon 30 September 2014 Million Assets Present value of liabilibes 794.9 926.4 (131.5) 793.4 969.9 1176.5) Deficit

Dccusign EThvelope ID.. 41E9F63F428145oF-9941-8225652C6D￿I YHA (England and Ylale5) Flnancial $latements for the ymr end•d 28 2021 Notes to the financial statements The assumplions that had the most sljnificant effect ￿ the valuation were as folbw5: September 2017 September 2014 Financlal assumptlons Market Implied Inflation Long term gilt yield Discount rates Pre-retirement rate Post retirement rale Inflation RPI cpi 3.4Yo 1.8% 3.4V• 3.0¥ 3.1% 2.3% 4.2% 3.3% 3.4% 2.5• 3.1Q/• 2.2% The def￿rt of £131.5 millK)n rwesents a funding ￿Ve1 of 85.8%. At the 2011 valuation the Trustees put in place a recovery plan wtth Ihe aim of eliminating this defictt via a combination of additional contributions from employers and investment ￿t￿mS over a period of 10 years from 1 April 2013. As a result of the 2014 valuation the recovery plan had been extended by 2 years and 5 months until 31 August 2025. However, the currenl valualton now reduces this repaynienl period to 31st January 2025. The Pensions Trust had previously notified YHA that the additional contributions required from YHA (England and Walesl from 1 April 2013 would be £385.220 rising by 3% per year. ThÈs was subsequently revised from l April 2016 to £403.318 and more recently from 1 April 2019 to £436,021. As part of the agreement reached on the final salary scheme reeovery plan on 31 Marth 2015 YHA will continue to meet rts Growth Plan contributions frcm wthin total contributions across both schemes of £700,000 per annum rising by 3% per annum starting from 1 April 2015. Multl•employer Penslon Scheme movements 2021 £'ooo 2020 £'ooo Balance al 1 March Paid in the year Interest expense (Decreasellincrease in liability Balance at 28 February 2,278 1448) 21 15 1,866 2,638 (4351 39 36 2.278 Endowments Pennanent Endovfflients (group onty) At28 Realised Unreallsed February gain loss 2021 £'ooo £'ooo rooo March 2020 £'ooo Wilderhope Funds Richards bequest Peter Grant Fund Peter Grant Endowment Fund Merseyside YH Golden JUbl￿e Trust 125 389 10 32 138 429 106 142 899 145 1,044 141 828 132 960 15 56 10 66 Expendable endowments 18

xysion En¥elcpe ID.. 41E9F83F4281450F4941.B22W2C6D9D YHA {En9land and Iyales) Financial stat•m•rt$ for the year elthd 28 February 2021 51 Notes to the financial statements The Wilderhope Manor Fund and the wildert￿pe Fund were created to provide financial support for the continuing use of Wilderhope Manor as a youth hostel. The Richards Bequest generates income lo pay for providiry arious equipment for inside and outside sports & games. and material for handicrafts.. The Peter Grant funds were given lo generate income for the rnaintenance of our hostels, {the endowment fund) and to give disadvantaged youngsters the OPFQrtunily to experience YHA. The Merseyside Youth Hoslel Golden Jub￿e9 Trusi endovrnent provides assistsnee. financial or otherwise to°enable needy or disabled young persons to enjoy the benefits of youth hoslelling activities". 25 Restrl¢ted fvnds Group and Company Transfer¥ tolfr¢)m At28 UnrnStrict￿ F•bruary fund 2021 £'ooo 1 IAareh 2020 Incthnlng r•sour¢•s Expendltu £'ooo Breaks 4 KidslProject 90 Fund Small Hostels Fund Capitsl Grants & DonalM)ns Revenue Grants & Donation$ Other {43) 1301 (113) (10.642) 382 3.380 IS 189 4,049 357 3,291 98 199 4.345 (11) {4) 10,729 20 11.148 110.8391 114) 2021 rooo 2020 £'ooo Reslricled funds (capital) Reslricled funds lotherl 3.291 1,054 4.345 3.380 669 4,049 The Break 4 Kids fund has been a lonstsndin9 fundraising apFfal deSIg￿d to give financial support to groups of disadvantaged youngslers and provide the ￿9pOrtUnitY of a stay with YHA. In 2019120 we extended this project to expand the scope of the scheme to cover a wider group of disadvantaged young people and families as part of our 90th annNers0ry celebrations. Unfortunately given the covid pandern￿ we were unable lo prowde the residentk31 stsys during 2020121 as we had hoped. Government reslriclions pem)itting. we will recommence our programme kqter in 2021122. The Small Hostels Fund is supplemented by donatitins and legaci85 from Peop￿ wishing lo support the maintenance and development of YHA'S small rurdl hostels. Donations of £5.000 (2020.. £245,000) were gratefully received in the year with £30,000 being spent fr(￿n the fund this year lo support the refU￿1$hment of a number of hostels thrOughr￿1 the nelwork. During the year capital granls of £2.0￿ {2020= £176.000) were received. This related to the final cla# towards the refurbishment of YHA Street. A further £32.CQO (2020: £450.0001 of donations were received to support other capital refurbishrnent wojects indudiThJ £22.OCKI f(ff the refurbishrnenl of ryn Gwynanl and £10.000 for Swanage. The £14.000 transfer from restricted funts is where prcyects have teen completed and the terms of the reslriclion have been mel.

DocJJSign Envelope ID.. 41E9F63F428145OF.9941-8225652C6D90 YHA (En9land and Wales) Fifiancial statements for the year ended 28 Februwy 2021 52 Notes to the financial statements 26 Analysis of not assets between funds Unr•stricted R•stri¢t•d Endowment funds funds funds £'ooo rooo Group Total £'ooo Tangible fixed assets Intangible r￿ed assets Investments Current assets Current liabilities Long term liabilities Pension liability 91,227 626 3.291 94518 626 S.326 {59.082} {10,047} {5,402> 1.054 6,380 (59.0821 {10.0471 (5,4021 1.866 26,171 Defined benefft Muhivempk>yer 20,782 4.345 Company Unrestrlcted Restricted funds funds £'ooo Endowment funds rooo Total £'ooo Tangible fixed assets Intangible fixed assets Investments Current assets Current liabilities Long term liabilities Pension liability 91.227 626 3.291 94,518 626 1.045 6,380 (59,0931 (10,047) 15,402) 1.045 5.326 {59.0931 {10.047) (5.402) 1.866 20,771 1,054 Defined benefft Multiompbyer 4,345 1,045 26.161 27 Reconclllatlon of changes In resources to net cash Intlow from operatlng a¢lfvltl•s 2021 £'ooo 2020 £000 Net expenditure for the reporting period {as per the statemènt of financial a¢tlvlties) (14,278) 11.2831 Adjustments for . Depreciation Pension ￿ntribUtions to reduce liabilFtie$ Pension cost expenses non cash Pension nel interest non cash Borrowings- non cash items (amortiSat￿in) {GainsyIoss8s on inveslments (Lossyprofil on sale of tangible fixed assels Interest charge Investment income- cash element (Increaselldecrease in $t(xk Decreasel{increase) in debtors Increaselldecrease) in creditors Increaselldecrease) in wovrsions Net cash provided byl lused In) operating activities 5.163 (5911 91 83 70 (841 (2101 1,371 (201 257 204 {7.4001 117 (15.2271 5.409 (7661 86 128 162 1,438 1261 1311 (6251 727 5.169

Drxusign EThveloFe ID.. 41E9F63F428145tF-9941-B225652C6D9D YHA IEnyl•nd attd Wales) Flnan¢ial statements for the y•¥ •Dd•d 28 F•bn4ry 2021 Notes to the financial statements 28 Analysis ol ¢ash and cash •quivalents 2021 £'ooo 2020 rooo Cash in hand 4,134 2.558 29 Reconclllatlon of net cash ouffiow to movernnt in net d•bt Group 2021 £'ooo 2020 rooo (DeC￿8$e￿Inc￿a$e in cash Cash oufflow from movernenl in debt and lease financirKJ Change in net debt resulting from ¢ashfk) Non cash changes Movement in net debt Nel debt al 1 March Nel debt al 28 Febwary 1.576 (19.001) 117.425) {72) 117.497) 38.208 {55,7051 1703} {5,750} 16.4531 {1621 16.6151 31,593 138.208) 30 Analysig of changes in nel debt At28 February 2021- £'ooo March 2020 Cash Ilows £'ooo £'ooo Non<a$h Change$ £'ooo Cash in hand and al bank Debt within one year Oebl after more than one year Finance leases 2.558 (19) (40,177) 570 (38.208) 1,576 19 (19.219) 199 117,425) 4,134 {52,374 17,0941 371 (55,7051 (52,3741 52.302 1721 Cash in hand and at bank Totsl borrowing & finance lease5 2.558 40.766 138.208) 1,576 19,001 117.425) 4.134 59.839 155.705) 72 {721 31 Capital commltmentB 2021 £'ooo 2020 £'ooo Contracted for but not provided for in these financial statements 487 Capital commitments are included for any remaining expenditure required to complete major projects. This is intended to reflect YHA'S commercial intent and any material commitments to full completion of these wojecls. in previous years this could have been in excess of the conlractually binding liability as at the year*nd date but that is not relevant this year as no such projeds were in progress.

Do￿sign Envelope10.. 41E9F63F4281450F.9941-8225652C6Dg0 YMA (England and Wales) .Flnanclal statemtrtts lor th• y•ar •nd•d 28 F¢bw•ry 2021 Notes to the financial statements 32 Leasing e4xnrnitm•nts Operating lease and rental payThents fall due as folkjws: Group and Cornpany 2021 Land and buildings £'ooo 2020 Land and Buildings £'ooo Other £'ooo Other £'ooo In one year or less Between one and fwe years Between five and twenty-five years Twenly-five years or more 2,118 8.556 51.168 3.288.843 3,350.685 514 262 2,028 8.232 49,093 3.356,668 776 3,416,021 677 207 YHA holds leases on 13 prO[￿rtIeS beyDnd 25 years giving rise to a £3.3bn FRS 102 calculated liability. 96Yo of this calculated liability relates lo commercial rent payable on a single property wlh 237 years of a 250-year lemi remaining. There is a break clause on this property in 18 years, time and every 35th 8nniversary thereafter which milwJates any risk to the charity. Transactions with Trustees and other related parties There were no transactions with Trustees other than those disclosed in note 10. There were no material transactions with related parties. As YHA Trading Limited is a vtholly oWY￿1 subsKliary of YHA. YHA is exempt from the requirements of FRS 8 to disclose transactions this t￿mpanY. Contkngwt land commltment We have an a￿eement vthich woukl allow us to purchase larKI with the intention of building a new hostel, and we have 18 months lo take advantage of this option. This arrangement is Subject to ornmercial sensitivity therefore the finartial wnpaci d this canrK*t be disdosed wtthin this re￿.