2021-06-30-accounts

asthma UK British 14 rv- Annual Report 2020-2021

Asthma UK and British Lung Foundation Partnership report and financial statements for the year ended 30 June 2021 The Asthma UK and British Lung Foundation Partnership is a company limited by guarantee 01863614 (England and Wales). VAT number 648 8121 18. Registered charity in England and Wale5 (326730), Scotland ISC038415} and the Isle of Man (11771. Registered office.. 18 Mansell St￿et, London, El 8AA.

Annual Report 2020-21 Contents Our mission Trustees, report 35 Why our work is so important Statement from the Chief Executive Our structure, governance and management Board of Trustees 36 38 Strategic report Our impact in 2020-21 Advice and support Research and innovation Independent auditor's report 45 Improving care Governance 12 Financial statements 49 14 Group statement of financial activities 50 Our aims for 2021-22 Balance sheets 51 Our approach to fundraising Volunteers 19 Group cash flow statement Notes to the group financial statements 52 21 Data protection Financial review 24 53 25 Company information Risk and uncert2inties 33

Annual Report 2020-21 Our mission We're working to change the lives of everyone affected by lung disease. Our support helps people who struggle to breathe manage their lung condition and live well. Our world-leading research finds new ways to prevent, treat and cure lung disease. Our campaigns help make vital, lasting change.

Annual Report 2020-21 Why our work is so important One in five people in the UK have been diagnosed with a lung disease. This means there are approximately 12.7 million people in the UK with history of a longstanding lung condition. This includes an estimated four million adults and children in the UK currently receiving treatment for asthma, including an estimated 200.000 living with severe asthma. Lung disease accounts for over 700,000 hospital admissions around 8°% of all admissions - and over 6.1 million hospital bed days in the UK each year. Only heart disease accounts for more. Nearly a third of people with lung conditions avoided or delayed getting the care they needed during the winter lockdown, mostly due to fears of being a burden on the NHS, andl or not feeling safe getting care. Of this group. over a third told us their symptoms got worse. In children, lung disease accounts for 9 % of all hospital admissions 2nd 12% of bed days. Lung disease also accounts for I l /0 of deaths in children under 15. The UK could save £1.6 billion 2nd prevent 17,000 early deaths from respiratory disease eich year if air pollution levels were lowered to levels recommended by the World Health Orginization. An estimated 3.53 million people with asthma are not receiving basic asthma care a written asthma action plan, an inhaler technique check and an annual asthma review. Lung conditions cost the UK £1 Ibn a year, with £9.9bn falling directly on the NHS and wider health care system. Around 10,000 people a week are diagnosed with a lung condition, including an estimated 3,000 who are diagnosed with asthma. Each year. 115,000 people die from lung disease, the equivalent of around one in five of all deaths. Respiratory diseases are the third biggest cause of death 3 Every year up to 36,000 early deaths cin be linked to air pollution in the UK. Over a quarter of care homes, nearly a third of schools and colleges and nearly 3,000 medical centres in England are located in ** areas of high pollution, putting people with lung conditions at risk.6 An estimated 2.17 million people have uncontrolled asthma in the UK. This is a particular challenge for younger people 2nd for those on lower incomes. The UK h2S the fourth highest age-standardised lung disease mortality rates in Europe. As air pollution levels fell during lockdown, one in six people living with lung conditions told us their conditions improved. BLF. Buiilc ror Brcoih, 2016 GP registry data, 2020.. Asthma UK severe asthma stat BLF.2016 BLF. 1017 COMEAP, 2018 The Invisible Threat. 2021 AUK-BLF survey of14,000, lune 2020 COVID survey. 2021 CBI Economics. 2020 10 Annuol Asthma Survey. 2021

Annual Report 2020-21 Statement from the Chief Executive The￿ is no doubt that the impact of COVID-19 has been particularly significant for people with lung conditions this year. When you already have a condition that leaves you struggling to breathe, the threat of another ￿sPIratOry disease like COVID-19 can be terrifying. The fears and worries of people with lung conditions have been vast and varied. We have heard countle5S stories of people struggling with the isolation of shielding, worrying about the return to work or school as restrictions have eased and being confused and anxious as they wait for their COVID-19 vaccination. People have told of their frustration at waiting for months to get a fimi diagnosis so they can begin treatment. Others have told u5 they have been unable to acce55 routine care or get the specialist treatments and therapies they need to help them better manage their condition. Throughout this tumultuous time, we have been here to offer ￿aSSUrance, advice and support. In fact, I'm proud to say that we have helped more than 1.8 rY)illion people with clear, accurate and up-to-date health advice through our website, and that our helpline teams have provided a listening ear to more than 30,000 callers. COVID-19 is shining a spotlight fimily on ￿SpIratorY conditions, and we have used this opportunity to raise the profile of lung conditions and remind decision makers how few respiratory healthcare profession￿$ we have in the UK and of the vital need to address this. We have iampaigned for governments in all four nations to better support people with lung conditions, improving their access to routine care, specialist medicines and treatments and giving them timely access to COVID-19 vaccinations. We have also been urging funders and the research community to prioritise research into lung conditions. We have continued to invest in ground-breaking science that will make a real impact for people with lung condition£- from new treatments for people with COPD to technology that helps people better manage their asthma. Tackling air pollution has dominated the newg agenda this year in the run-up to the UN Climate Change Conference (COP26) and remains a high priority for us. Toxic air may be invisible but its devastating Impact is clear,, it causes conditions like asthma and can provoke life-threatening COPD fla￿-upS and asthma attacks. You may have read the devastating case of nine-year-old Ella Adoo-Kissi-Debrah, who died from an asthma attack triggered by shockingly high air pollution levels near her home in Lewisham. She became the first person to have air pollution listed as a cause of death on a death certificate. Ella was a keen footballer. a gymnast, a dancer. She enjoyed fantasy novels and making up songs. Her P￿clOU$ life was cut short, in part because of dirty air. We are determined to do all we can to prevent deaths like Ella 5. We have been raising awarenes5 of the health Impacts of air pollution and galvanising support. Our report The Invisible Ihreot revealed the shocking air pollution levels around schools, GP surgeries and care homes. We generated significant media coverage and secured the 5UPPOrt of more than 12,000 clean air campaigner5, urging the government to bring about

Annual Report 2020-21 stronger clean air laws. We have also campaigned in major cities including London, Birmingham, Nanchegter and Liverpool for the Introduction of air pollution measures. While the roll-out of the COVID-19 vaccines offers us all a beacon of hope and the chance to get back to our old way of life, change and uncertainty ￿maIn for people with lung conditions. We will therefore continue to expand our 5ervice5 to reach more people. We will continue to fight for people with lung conditions to breathe clean air and to access the treatment and support they need and deserve. We will continue to invest in ground-breaking research, and we will make it all happen by expanding our fundraising activity and inspiring people to give back in multiple ways. Of course, we couldn t deliver all of this without our dedicated 5upporters'. people like fundraiser Flay, who is 76 and has dedicated MO￿ than a decade of his life to rnising over £12,000 for us in memory of his wife, lean, who he lost to mesothelioma, It's incredibly inspiring for me and the whole AUK-BLF team to work with such wonderful supporters and l am immensely proud of everything we have achieved. We will continue to change the lives of everyone affected by lung disease, next year and beyond. Sarah Woolnough Chief Executive, Asthma UK & British Lung Foundation

Annual Report 2020-21 Our impact in 2020-21 At a time of increased anxiety among our beneficiaries, we've continued to provide vital supporL We've been proactive in ensuring our health advice pages have reflected the questions our beneficiaries want answered, including producing Long COVID-specific resource5 that have been translated into five different community languages. We've also continued to invest in vital respiratory research. We have partnered with high-profile ￿SearCh and innovation programmes, as well as supporting and funding our own research into serious lung diseases like COPD (chronic obstructive pulmonary disease). Research highlights of the year include our exciting partnership with the National Institute of Health Research INIHRI and the Engineering and Physical sciences Research Council (EPSRC) to help revolutionise asthma treatment and care. We are also partnering on one of the largest studie5 in the world on Long COVID, PHOSP-COVID. We ve continued to share our research and insight from patients to drive change. Weve secured extensive media coverage in more than 9,000 national, regional and trade media outlets to raise awareness of the seriousness of lung conditions and the health risks that cauge them, covering topics as diverse ￿ improving air pollution in sihoo15 and urging the government to prioritise booster vaccines for people with asthma. We ve advocated for people with lung conditions behind the scenes, engaging with politicians and other influential policy makers and decision makers, such ag working with parliament to ensure the Environment Bill includes bolder clean air laws, The Taskforce for Lung Health. an independent collation of 40 organisations and individuals with an interest in lung health for which we provide the secretariat, has also fought to make lung health a higher priority In government policy and decision-making. This year the Tagkforce persuaded NHS England that respiratory disease deserves more attention and will continue to keep pressure on decision makei-s to implement the Spiratory programme detailed in the NHS'S new Long-Term Plan. All of this great work is made possible by our incredible supporters, who have shown remarkable dedication, resilience and ability to raise vital funds, In a year where in-person fundraising events have at time5 been halted, we ve had to adapt to focus on digital fundraising to continue to raise funds from individuals, corporates, trusts and foundations. And to keep improving in this area, we've increased our supporter engagement to ensure our supporters have an open two-way dialogue with us.

Annual Report 2020-21 Advice and support Ongoing impacts of the pandemic have kept demand for our services high, with calls to our Helpline team exceeding 30,000 this year. Our beneficiaries lelt the full impact of the lockdowns and COVID restrictions, so the need for up-to-date health information and advice had never been higher. Our online health advice pages were viewed by 18.5 million people including almost 4.5 million views of our COVID advice pages. Last year we saw eady signs that some people recovering from COVIO-19 can have ongoing breathing difficultieg. This condition soon aCqUi￿d the name Long COVID and we began to see a whole new group of beneficiaries seeking our help. We responded quickly, developing a hub of online Information and subsequently developing a whole suite of information resources to support people living with Long COVID. We produced tailored heJth advice for these people and between February and September 2021 this information wa5 viewed 374,918 time5. With the aid of a grant from the Garfield Weston Trust we also developed videos about breathlessness and exercise in relation to Long COVID. We were able to translate these valuable resources Into different languages. Long COVID is cleady not going away and is now the second most popular search query on our websites. As well as creating new content for our beneficiaries we are constantly reviewing and updating existing products. The Asthma Action Plan has been ￿vIewed, updated and reproduced in eight different languages. It'5 one of our most popular health products to download. together with our COPD Self-management Plan and Exercise Handbook. Regrettably, for much of this year our support groups have ￿mained closed for face-to-face meetings and our team had to pivot to online Zoom meetings. This has given us the opportunity to create more groups and think about other new ways of supporting our beneficiaries, such as offering online exercise sessions.

Annual Report 2020-21 Research and innovation Our ￿SearCh continues to be an integral part of what we do, and this year we've worked in partnership with the National Institute of Health Research (NIHR) and the Engineering and Physical Sciences Research Council IEPSRC) to award £4 million of grant funding in asthma health technology research to revolutionise the way people with asthma manage their condition, prevent asthma attacks and improve their quality of life. The joint fund was created to support the development and adoption of scalable and effective asthma health technologies, from concept stage through to use within the NHS. The winning projects include symptom tracking apps, home monitoring systems that detect wheezing In children, and the development and testing of a device which clips on to an inhaler and provides real-time inhaler technique support. Another research highlight (rom the year is an AUK-BLF-(unded project by Dr Nick Hopkinson which has shown that 'lung volume reduction surgery to remove diseased parts of the lung or valves and direct air flow to healthy areas of the lung- is a safe and successful treatment option for selected COPD patients. This study informed NHS England's clinicl commissioning policy in November 2020, which has recommended the surgery as a therapy that should be considered for appropriate patients. This is important because there is currently no cure for COPD and existing therapies like Inhaled drugs and physica exercise programmes which help control symptoms are not always available or suitable for everyone. We are partners on PHOSP-COVID, an £8.4-million study to understand and improve long-term health outcomes for patients who have been in h05Pltal with confirmed or suspected COVID-19. It is one of the largest studies in the world on Long COVID. Breathlessness is one of the most common symptoms of Long COVID, and findings from the study may help us to better understand other lung conditions. To date, the programme has produced research that has transformed global understanding of Long COVID and influenced the development of services. Throughout the project we have ensured that ￿searCh priorities are anchored in the needs and experience of people with Long COVID. We have also committed increasing regource to partnering on eKternally funded, high-profile research and innovation programmes to promote patient-centric research. We re empowering people with lung disease to be meaningfully Involved. encouraging greater use of patient Insights and Increasing overall Investment in spiratory research. In 2020121 we supported 25 applications for funding, of which nine were successful, and secured £74,900 direct income to AUK-BLF to deliver our commitmerrts to these programmes. The overall value of the programmes and projecLs we are currently supporting through patient Involvement and related activity is £32.6 million. We are a founding charity partner with the Our Future Health programme, which will collect and link multiple source5 of health and related information, including genetic data, across a cohort of five million people that reflects the UK population. This will create a world-leading resource for academic and commercial ￿SearCherS to undertake discovery research on eady indicators of disease, plus the opportunity to re-contact participants on a ri5k-sLratified basis for secondary studies. The programme has arb initial £79 million of funding from government, and additionally expects to secure up to £160 million from industry and charity partners.

Annual Report 2020-21 Improving care COVID-19 has shone a spotlight on the debilitating nature of respiratory conditions and the urgent need to drive systemic improvements in care and quality of life lor people who suffer from breathlessness. During this unprecedented public focus on a respiratory virus, we have shared our research and insights from patients to influence policy makers and drive these Improvements, not just for people with COVID, but for all people with respiratory diseases. We have raised awareness and ￿cOMmended how governments should, amongst other things.. tackle health inequalities,. rectify the backlog of respiratory diagnosis and care caused by the pandemic,. Introduce sLronger laws to tackle air pollution., ensure specialist support for people who have developed Long CQVID and fund effective and accessible stop-smoking services. As the pandemic evolved, much uncertainty arose around government announcements on shielding, the reinstatement of routine a55e55ment5, advice for children going back to school. the use of face covering5 on public transport, and who would be prioritised for the COVID-19 vaccine. We worked hard to get clarity from the government and other bodies on these issues and convey it to our beneficiaries. We campaigned to urge governmerrt to prioritise people with asthma who were most at risk for vaccination, commissioning research to reveal how many at-risk people were missed out under Initial guidelines, securing extensive media coverage and setting up an e-action, which gathered the support of more than 27,000 people. We are now calling on government to tackle the backlog and ensure basic care is restarted (or people with lung conditions. Prevention of lung disease, particularly tackling air pollution, has continued to be a priority for u5. We have been thought leaders In this a￿a, responding to the P￿ventIOn of Future Deaths report which wa5 released in response to the sad death of schoolgid Ella Adoo-Kissi-Debrah after air pollution triggered a fatal asthma attack, and campaigning for local air pollution measures in Birmingham, Manchester, Liverpool and London. Our regional clean air campaigns reached neady 19 million people In the UK through media and digital channels, and 1,000 local people helped us by sending messages to their local decision makers. Our report The Invisible Th￿￿t exposed the shocking impact of air pollution on lung health, with our analysis revealing how many schools, hospitals and care homes were in ar-eas of high pollution. IL resulted In wide£pread media coverage across more than 400 media outlets. Additionally, more than 12,000 people signed our petition calling for bolder clean air laws and weve been working with parliament to ensure this is the case in the Environment Bill. Understanding the lived experience of people with lung conditions is vital to shaping what, how and why we do what we do, so this year we expanded our patient panels into Wales and Northern Ireland and continued working with our panels in Scotland and England. We also identified ways to improve our engagement with ethnic minority communities and gathered the views of more than 12.000 people with asthma and more than 8,000 people with COPD to provide the evidence base for our Asthma Care in a Crisis report and our first ever annual COPD report, to be published at the end of 2021. The latter is the first ever state-of-the-nation, annual survey about the lived experience of the 1.2 million people iurrently living with COPD In the UK. Working across the UK to influence change, this year we brought together politicians frotn all parties via our newly launched All Party Group on Lung Health in Northern I￿land. We also influenced political manifestos in Scotland and Wales and secured support lor policies to tackle air pollution and improve access to rehabilitation. Over the year, we have secured significant media coverage to raise awareness of the seriousness of lung conditions, convey vital health advice, showcase the research we are doing and campaign for change to improve the liveg of people with lung conditions. This includes more than 9,000 online articleg in the national, regional and trade media and more than 2,900 TV and radio appearances.

Annual Report 2020-21 Acrosg our own SOCI￿ media platforms, we have delivered news about our work, life-saving health advice and information about Issues that may affect people with lung conditions to around 1.8 million people every month. We have reached new audiences, gaining more than 9,000 new followers across all platforms this year. Taskforce for Lung Health The Taskforce for Lung Health, a coalition of 40 organisations and individuals with an interest in lung he￿th, published our Five Year Plan for Lung Health in 2018. The plan makes 43 recommendations in key areas- prevention, diagnosis, treatment, living with a lung disease, end of life, and workforce. Taken together and implemented in full, these will transform outcomes for people with a lung condition. We continue to provide secretariat to the Taskforce, providing planning, coordination and administrative support. The Taskforce has worked tirelessly over the past 12 months, adapting to the difficult and ever-changing circumstances brought on by the COVID-19 pandemic. Elevating patient voice is central to the Taskforce's work, and in response to the pandemic we supported our patient and carer ￿presentativeS to call on policy makers at the end of 2020, setting out what matters m05t to them as a 'prescription for change. We've made encouraging progress across our priority areas of diagnosis, getting tfftatment right and pulmonary rehabilitation. For example, we saw huge national commitments to develop a new clinical pathway for diagnosing breathle55ness and to establish 'one-5top' community diagn05tic hub5 across the country. These are key recommendations in our plan and have the potential to trtjly transform the diagnosis of lung disease. We have also added a range of new metrics to our lung health data tracker, allowing the public to track progress across key areas of respiratory health. The Taskforce continues to grow in relevance and influence. Membership hag increased from 35 to 40, media presence has expanded to include regular broadcasL and print coverage, and social media pi-esence ha5 grown, allowing us to reach new audiences on new platforms. We are delighted that the hard work of all our members, and the Taskforce's impact, has been recognised externally by winning Collaboration of the Year at the Charity Times Award5.

Annual Report 2020-21 Governance Strong governance is critical to our success. The Trustees understand that effective governance will ensure our continued success and strong reputation. During this challenging period, the Trustees complied with their duty to have due regard to the Commission's public benefrt guidance when exercising any powers or duties to which the guidance Is relevant and stayed true to the Charity's object£. The organisation is governed by its Articles of Association which sets out the charitable objectives,. these are., the relief of persons suffering from diseases of the chest and lungs, to include, on a continuing b￿1$, atthma, and the prevention of those diseases., the promotion of medical research Into the prevention, treatment. allewation and cure of those diseases and the d155emination of the useful resuFL5 of such ￿searCh for the benefrL of the public and the promotion of POSt-graduate training and the creation of fellowships, hospitals, medical cent￿5 and research instttutes., and the provision of care, support, services and information for persons suffering from those diSe￿e5. The Board of Trustees takes overall responsibility for the work of the Charity. The Board achieves this by., Fulfilling the objectives of the Charity, as set OLrt in the governing documents, and ensuring the impact of the Charitys work is clearly communicated. Ensuring the Charity Is effertive, responsible and Is conducLed legally. Safeguarding finances, resources and property to ensure they a￿ used to the maximum advarrtage of the beneficiarie5. Being accountable to our stakeholders, including sUPPOrterg, regulators and the puEAic. Estat￿lshirng clear boundaries for staff and volunteers who carry out our work between the govemance role of the Board and the role of the executive. Ensuring the Board operates effectively. Implementing strong safeguarding processes to ensu￿ sLaff. supporters and everyone who comes into contact wtth the chartty is protected (rom harm. Structure and management AsLhma UK and British Lung Foundation Partnership (the Charity) Is a company limited by guarantee (registe￿d company number 01863614 in England and Wales and 005851 F in the Isle of Man) and is a charity gistered in England and Wale$13267301 regulated by the Charity Commission, and Scotland (SC038415) regulated by the Scottish Charity Regulator and the Isle of Man (1177). It is governed by a Board of Trustees chaired by Baroness Tessa Blackstone under powers defined in the Memorandum and Articles of Association which was last updated in December 2020. The Board of Trustees comprises the directors of the company who are ￿$0 members of the Charity. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the asset5 of the charitable company in the event of winding up. The total number of such guarantees at 30 lune 2021 was 12. The Asthma UK and British Lung Foundation Partnership has three subsidiary companie£'. Asthma Enterprises Limited, BLF Limited and BLF Services Limited. More details on the gubsidiary companieg are available on page 64 of the financial statements.

Annual Report 2020-21 15 The day-to-day running of the Charity is the responsibility of the Executive Team, led by the Chief Executive, Sarah Woolnough, who joined the oryanisation in December 2020. Trustees The Board of Trustees will have at a minimum five and up to 15 trustees (2021.. 121. In December 2020, the Articles of Agsociation were amended to change the term of office from a maximum ofthree terms of three years to two tertns of four year5. Fietiring Trustees can be reappointed but no TrusLee can serve more than two consecutive terms unless the Trustees agree the￿ are exceptional circumstances. Honorary officers are defined as Chair, Vice-chair, or Treasurer and the Trustees may appoint a Trustee on a term of office as they see fit. All Trustee5 receive no remunei-ation other than for expenses incurred a5 Trustee5. Trustee indemnity Insurance Is In place for the protection of the Trustees. The Nominations and RemLJneration Committee meets regularly to review the composition of the Board of Trustees and acts on any upcoming vacancies. Vacant positions on the Board are advertised externally. Prior to any recruitment proce55, the Trustees will consider the range of skills and Board diversity. On occasion, the Nominations and Remuneration Committee may identify and approach Individuals thought to have the right skills, and invite for application to the Board. New Trustees are proposed by the Nominations and Remuneration Committee and formally appointed by the Board. New Trustees are given an induction tailored to their role, including meeting with relevant staff and senior management team members, historical information including committee minutes, governance, strategic plans, business plans, risk registerg and management accounts. Each Trustee is given information on the legal duties and expectations of a Trustee and invited to attend external Trustee training events funded by the organisation. On appointment, each Trustee completes a register of interests, which is renewed annually, and agrees to abide by the Charity Governance Code and the Charity's Code of Conduct. The Code of Conduct set5 Out the principles that Trustees must adhere to and ensure5 that the organi5ation is effective, accountable and high standards of Integrity are achieved. The principles are.. Selflessnes5. Integrtty. Objectivity. Accountsbility. Openness. Honesty. Leadership. The principleg have been supplemented with examples from the National Council for Voluntary Organisation5 Ethical Principles and the Nolan Principles of Public Life. Trustees are encouraged to become involved in the Charity's activities and sub-committees, using their skills and experience, and attend other events held by the Charity so that they become informed and fully Involved in all a5perts of its work. See pages 38 to 40 for full detai15 of our Trustees.

Annual Report 2020-21 16 Effective governance will ensure.. that we achieve and can demonstrate our impact the objerts of the charity are advanced compliance with la￿￿, regulations and best practice that the organisation is well run and efficient that problems can be identified eady and dealt with appropriately. The Board of Trustees oversees governance and is responsible for upholding the Charity's values. The Charity Governanie Code is used on an annual basis to benchmark and assess the organisation's compliance with recommended best practice. The ￿gUltS from the review are discussed at the Nominations and Remuneration Committee and the Board to ensure any outstanding actiong have been considered and appropriate remedial actions have been implemented. The Code was last reviewed in October 2021, to take account of the improved principles regarding equality, diversity and inclusion. Asthma UK and British Lung Foundation want to ensure that everyone who comes into contact with the Charity, whether they are an employee, beneficiary, supporter or a member of the public, is treated with respect and dignity. We have reviewed our Equity, Dive￿itY and Inclusion practices and have implemented change£. Progress so far has included.. A new consolidated EDI policy which sets out our vision. A rbew Recruitment policy within which we clarify that we won't ask for a degree unless a Specific degree is quired, widening the demographic5 of those we seek to recrutt. We have signed the'ShowThe Salary Pledge, as well ￿ being a Living Wage employer. Research shows that people from some underrep￿sernted groups have poorer outcomes when $￿arleS are not transp￿rnt in the hiring process.we have therefore committed to always showing the salary when we advertise role& We have built up a network of externl cntical friends who have helped us finalise our policy and finesse the Ideas in the artion plan and have been founder members of a new Richmond Group EDI Leads nebNork to share ideas and best prartice, We ran an internl attttudes survey in 2020 which told us staff thought we needed to do better in terms of our beneficiary reach but were broadly happy with our irrternal approach. We have added a diversity and inclusion focus to some of our key projects, such as the Long Covid work generously funded by the Garfield Weston Foundation, which allowed us to pmduce videos in multiple languages and tsrget people with Long Covid who do not typically access our services We commissioned an external report to undersLand the underlying causes behind underrep￿5entatiorn of certain groups, in particular ethnic groups, in accessing our services. We have begun work to ensure our patient involvement work covers a more diverse group of people with asthma and other lung conditions. We have significantly improved our data on staff EDI profile and following staff feedback we added a new Indicator to our Pulse engagement suNey asking staff whether they feel we provide an inclusive place to work and people can bring their true self to workThe Initial ￿spOnse pleasingly scored 4.1115, 1.e. the average person sLrongly agrees wtth the statement.

Annual Report 2020-21 Things we are planning to do next include.. FIN￿lSIng and launching our action plan of top priorities for the netc 12 months. Making significant progress towards achieving our ambition to be there for everyone with a lung condition, regardless of their background, considering the findings of our external review and the views of our external critical friends and peers. Ensuring we continue to be an inclusive place to work where people can be their true and best selve Recruiting a new post of EDI Lead, to embed our EDI focus in the organisation. Undertaking a further attitudes survey to understand in more detsil how people think the organisation respects differences and to explore how inclusive our culture Is. Embedding inclusion into our plans for future working environments, as we seek a new way following the pandemic, for example by building flexibilrLy in to recognise the different needs of our diverse wormorce. 41 SEen LJ67 DLE

Annual Report 2020-21 18 Our aims for 2021-22 Gather data and insights from health care profe%ionals and people living with a lung condition. Expand our service offer across channels and communities and campaign for better NHS care. Influence policy makers across all four nations to prioritise the needs of those with lung conditions including focusing on the prevention of lung conditions (such as tacming air pollution and smoking), addressing the backlog in respiratory Ca￿ and ttckling health inequalities. Leverage the interest in coronavirus to significantly increase fftspiratory shaiE of ￿Sea￿h and innovation funding, partnering to drive collaborations focused on the biggest unmet need5. Continue to provide the secretariat for theTaskforce for Lung Health. Raise the profile of respiratory conditions and make an urgent case to funders, scientists and governments about the need for a radical increase In funding of respiratory ￿searCh, and continue to fund the best quality research In this area. Expand our fundraising activity, identifying opportunities to innovate and providing tailored information and heapth advice to inspire people to give back in multiple ways. Build sufficient capacity across the organigation and deliver new systemg and procesges that increase gustainability and efficiency and minimise support costs.

Annual Report 2020-21 19 Our approach to fundraising With the COVID-19 pandemic continuing to have a huge impact on the organisation, we have been continually surprised, amazed and thankful for the generosity shown by our supporters. At a time of great demand for our services, our gUPPOrters have shown a ￿rnarkable dedication, resilience and ability to raise vital funds so that we can be there for those who need us most. Without our passionate supporters, we would not have been able to do this. In a year like no other, we have continued to adapt, modify and improve our fundraising to make it as efficient and effective as possible, A pivot into more digitally (ocused fundraising ￿lOwed us to continue to raise funds from individuals, corporates, trusts and foundations In a sensitive way and has brought new opportunities for people to continue to participate in our events and activities. The executive team has oversight of all fundraising activities and monitors performance against key indicators to identify any significant ch￿lenge9 or change5 we need to make. We are always keen to hear from our supporters and we always strive to make the supporter experienie the best it can possibly be. As we continue to Improve In this area there has been an Increased focus on supporter engagement throughout the last year. Thig hag meant increaged two-way dialogue with our supporters, leading to improved communication and recognition of supporters wants and needs. Participation in fundraising regulation and our compliance with the code We value the 5UPPOrt of every one of our donors and work hard to ensure that our fundraising activity 19 open, legal and fair. We work with the Fundraising Regulator and the InstituLe of Fundraising to make sure our fundraising activities operate to the highest standards. We proudly adhere to the Code of Fundraising Practice and our Fundraising Promise is posted on our website. We never gell contact data and our supporters can change their communication preferences at any time. How we protect vulnerable people Every donor Is an Individual with a unique background, experiences and circumstances- and every interaction between a fundraiser and donor is different. We require all staff to follow best practice guidelines for deJing with vulnerable people and our policy for Fundraising with Vulnerable Supporters is available on our website. We constantly review best practice guidance on protecting Individuals at risk and have updated our self-exclusion from gambling process to safeguard the wellbeing of individuls. We have recently reviewed our fundraising policies to ensure they remain up to date with best practice. We ensure we appropriately act to protect potentially vulnerable people whilst also protecting the reputation of the organisation and its employees. We comply with the Institute of Fundraising guidance, set out in Treuting Donors Fairly., Responding 10 the Needs of People in Vulnerable Circumstunces and Helping t)onors Make Informed Decision5. We also require our staff, and any agencies contacting members of the public on our behalf, to comply with guidelines provided by the Data and Marketing Association and the Public Fundraising Regulatory Association. These guidelines do not cover children and young people under the age of18, and we do not actively seek donations from them.

Annual Report 2020-21 20 How we monitor fundraising activities by third parties We work with a variety of third parties to raise money, including commercial participators and professional fundraisers. We expect all third parties who work with us to meet the same high standards as our own fundraisers and have contracts in place to ensure this. This year we continued to employ a telephone agency to call people on our behalf. We provided training to their staff and monitored calls regularly to ensure they represented the organisation appropriately. Complaints AsLhma UK received 67 fundraising complaints and British Lung Foundation received 65. We have not ceived any complaints through the Fundraising Regulator. We take all complaints seriously. Simple complaints are generally dealt with immediately by our Supporter Care Team. In all cases we aim to resolve or acknowledge receipt within five working days and our Fundraising Complaints Procedure is easily found on both websites. Fundraising Preference Service (FPS) requests The Fundraising Preference Semice, run by the Fundraising Regulator. is aimed at providing people with the means to Stop direct marketing from specific charities without having to contact them directly. Asthma UK received nine of these requests and British Lung Foundation received I I In the period from I july 2020 to 30 lune 2021.

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Annual Report 2020-21 21 Volunteers Our volunteers provide invaluable knowledge, help and support to our organisation. We are so grateful for the different ways in which people support our work. Our support groups provide members with information, friendship and skills to help self-manage their conditions. They are run nationally by 300 volunteers who freely give up their time to make sure their members a￿ well supported. A further 6,319 people volunteered their time and lived experiences to inform our service design and development, helping us to ensure that we meet the needs of our service users. These included 5,386 contributing to Long COVID-related projects., 208 contributing to severe asthma-related projects,. and 725 contributing to ongoing development and maintenance of our WhatsApp helpline service. This year, our volunteers have been incredible. Their response to a period of major change and their silience have been inspiring and helped keep our support network thriving. The pandemic meant that some volunteers Involvement increased as they actively supported their members through this very difficult time. Guiding our volunteers through the ever-changing guidelines has been challenging. Through our national network events we provided support and encouragement to keep volunteers informed and motivated. Supporting the network through live online sessions has connected us with more members. This helped us tackle social isolation and got people moving after a long period of inactivity. Our'motivational Monday, and 'Feelgood Friday, online sessions helped us build a wonderful digital community. We cautiously look fornvard to face-to-face meetings in the future but our relationship with Zoom 15 not over. Staying connected has never been easier. Seeing our volunteers on screen has kept team spirits high and hopes bright. Adapting to the changing environment has taken our volunteers and the network in a new and exciting direction this year, one that we are all embracing.

Annual Report 2020-21 22 One volunteer, Derek Cummings (above), launched an online support group which has even attrxcted member5 from abroad. I feel absolutely fantastic after my Zumba with Anne. I have done Zumb2 gold for many years using my rollator as I have balance issues alongside my COPD. l am on oxygen 2417 now so this is the first of me doing any chair Zumba and I can't chank everyone enough for bringing such joy in chis pandemic. Looking forward co next week. Thanks again. GG I just thought how strange this was for me because without COVID I would not be meeting all of you and sharing in this way. I was never able to get to your conferences but now I have met so many lovely people- all of us with a common ailment, our lungs. One of our members said she had learnt more in the lasc year abouc her condicion chan ever before. I had to agree. It was the same for me and I too have learnt more about the BLF and all you do for us. We are all grateful. We're very grateful for the support the BLF have given us as support groups, we don't know where we'd be without it- especially now.

Annual Report 2020-21 23 We are also delighted to have the support of140 Asthma UK and 70 British Lung Foundation volunteers to ensu￿ our health information Is rooted in the lived experience and language of people with asthma and lung disease, via the Reader's Panel. The Asthma UK Lay Advisory Panel is a group of15 volunteers made up of people with asthma and Ca￿r$ of people with asthma. The Panel acts as a strategy sounding board for the Executive Team to ensure that our plans and key messages are Informed by the insight of people directly affected by asthma. We are very grateful for the volunteers and the wod< of the Chair, Caroline Smith. We are continuing to evolve how we ensure people with a range of lung disease inform our work strategically. The Council of Healthcare Profe55ionals proiades expert clinical advice to guide the Charity's operational activity and inform our strategy. Drawn from the wider clinical community and representing all sectors (primary, secondary and tertiary) across the UK, council members volunteer their time to inform and shape our understanding of emerging clinical issue5, Opportunities and guidance. We are very grateful for the work of the Council of Healthcare Professionals and the Chair, Dr Andrew Whittamore. Again, we a￿ looking at opportunities to integrate this across the wider organisation and the broader ￿SpIratorY community. Our Research and Policy Volunteer Network is a group of more than 300 patient expert5 who have expressed an interesL in getting involved in research. With this group and a strong network of wider supporters, we are uniquely positioned to facilitate patient Involvement in research projects and funding applications. This increaseg the chance of a project getting funded, and also means the lived experiences of people living with lung disease are adequately considered in research that can improve their lives.

Annual Report 2020-21 24 Data protection Data protection is an ongoing process- we continue to build data protection into everything we do. We ensure we only collect and use personal data in line with the Data Protection Act 2018, UK Gerner￿ Data Protection Regulation and Privacy and Electronic Communication Regulation (PECR) and constantly monitor our activity to ensu￿ data Is used appropriately and In line with expectation. An Information Governance Management Group meets each month to discuss and agree on enhancements to policies and practices involving data collection. We regularly review any data complaints we receive and review any action plans arising from third party assurance. We do not sell any personal data to third parties.

Annual Report 2020-21 25 Financial review We spent £15.3 million in pursuit of our Yision.. for everyone to breathe clean air with healthy lungs. Financial overview The Trustees P￿sernt their report and the audited financial statements for the year ended 30 lune 2021. At midnight on 31 December 2019, the British Lung Foundation merged with Asthma UK and became the AsLhma UK and British Lung Foundation Partnership. This report cover5 the first full financial year of the merged charity, whilst the prior year comparatives ￿p￿Sernt the activities of the British Lung Foundation for the SIK months to 31 December 2019 and olthe merged partnership for the six months to 30 lune 2020. The financial 5tatement5 comply with the cur-rent statutory requirements. Overview 2020-21 £'ooo 15,105 15,399 (2941 2,141 2019-20 £'ooo 11,557 10,790 767 (1,069) 8,532 8,230 Grosg income Gros9 expenditure Net incomel(spend) before investment gain5 GainllLos5) in value of investment Receipt of assets on merging Net movement in funds 1,847 How we spent our money Total resources expended were £15.4 million, £4.6 million MO￿ than the previous year. Though the previous year figure is impacted by accounting (or the merger, the underlying increase in expenditure reflects our success in leveraging the benefits of the merger to have g￿ater Impact for our beneficiaries. People with asthma and lung diseases needed us more than ever through the pandemic and we were able to InC￿aSe our charitable expenditure to meet the increase in demand, whilsL using re5erve5 to meet the shortfall in income. There was an increase spend In fundraising activity of £1. I million and an increase spend on charitable activity of £3.5 million. We spent £5 million on research (2019120.. £1.6 million), with the increase partly due to grant rounds which were delayed by the initial months of the pandemic. Expenditure on improving care increased by £0.6 million and expenditure orb advice and support decreased by £0.5 million. The latter includes our helplines, digital advice and awareness campaigns, and the reduction is due in part to efficiencies achieved through the merger, rather than reductions in support avilable. The reduction is also due to the termination of projects which were no longer possible during the pandemic as they could not be delivered In-person to beneficiaries who were shielding.

Annual Report 2020-21 26 Support costs Support Costs include the Finance, People and Technology teams, ag well ag governance and facilities. Support cosLs were L4.3 million which are up £1.9 million on last year. This increase is mainly due to the fact the prior year figures are a mixture of six months of BLF alone, and six months of the merged charity. There are ￿s0 some one-off costg associated with improving the infrastructure of the charity. particularly around technology, and a consolidation of budgets for digital products withirb the technology budget (previously decentralisedl to ensure greater control and Identify efficiencies. We continue to scrutinise spend on support costs to ensure we are spending effectively and services are efficient. The merger has resulted in only a handful of redundancie5, With staff integrated or re-deployed within the merged organi5ation. The impacL of COVID-19 also played a part In Increasing costs, in particular enabling all staff to work from home and making the office safe for those who work there. Regulatory and compliance requirements continue to increase, and recruitment in the Speci￿1$￿S we require 15 challenging. These factors have put pressure on our ability to reduce costs. We allocate support Costs across the charity's charitable and fundraising activities to reflect Usage by activity on the basis of spend excluding research grant expenditure, as we believe this gives the faI￿£t reflection of how resources have been utilised. Details are shown in note 7. How we used your money 2021k2021 How we used your money 2019-2020 Research £4,988k 33Y. Research £1,612k Raising Funds • Advice and Support £3,768k Improving Ca £2,520k £4,012k Raising Funds Advice and Support £4,271k Improving Care £1,923k £2,985k 25% 39% 16°A 18%

Annual Report 2020-21 27 How we raise money Asthma UK and British Lung Foundation relies exclugively on voluntary donations and grants from individuals. trusts, corporates and statutory bodies. The fundraising environnient across all these sectors remains challenging due to the economic climate and the impact of COVID-19. We strive to meet best practice standards in our fundraising activity as defined by regulators and want our supporters to know that we are fundraising responsibly. Total incoming resources for the year were £15.1 million12019120.. £11.6 million). However, it should be noted that the prior year figure Is impacted by the accounting for the merger as it represents six months of the BLF as a sole charity, and six months as a merged charity. The equivalent income raised across AUK, BLF, and the merged charity In the twelve months to 30 lune 2020 Is not disclosed In the accounts but is estimated to be £15.1 m. Details of income by source are given in note 3. Legacies received We￿ £5.1 million, up £1,9 million on last year. Legacies continue to be a crucial revenue stream and we are extremely grateful to those who, by leaving bequests to the charity, enable the organisation to achieve its goals. The level of legacies notified to us but not certain at the end of lune 2021 amounted to approximately £4.4 million. This is still a robust amount and gives ￿aSOnable assurance as to the continuation of thig income stream in the coming year. Donations from supporters through community activities and events raised £1.2 million, which is up 10.5 million on last year. These contributions come from a huge variety of activities undertaken by thousands of people throughout the year and ￿p￿sernt significant achievement and effort by individuals on behalf of the charity. We are very grateful for their efforts. Donations from individuals arbd corporates totalled £5.9 million (2019120.. £5.2millionl. Regular monthly giving remains important in enabling us to plan our work in the context of regular funding and we are grateful to the loyal supporters who give in this way. We are particularly grateful for gifts in memory of a loved one and hope those 5UPPOrters found this to be a positive way of commemorating a life. We also ran a small number of fundraising appeals. In doing so, we are mindful of public concern as to how, and how frequently, the public are asked to donate to charitable causes. During the year, we received relatively few complaints about our fundraising methods, giving a55urance that our judgements in thi5 respect are reasonable. We are a150 grateful to our corporate supporters who continued to support us despite the financial uncertainties brought on by the pandemic. We secured donationg from trusts of £1.2 million in the year, £0. I million higher than the prior year. Trusts continue to support our range of artivity including our research programme, provision of health advice through a variety of channels and our work in general to support people with lung conditions. They also support investments in our infrystructure, and we are grateful for the support of the Fidelity Foundation who have provided funding to 5UPPOrt our move to a single, modern CRM system, a5 well as the development of our new strategy. Additionally, we have benefited from £555k of Gifts in Kind relating to the Google Grant programme to support our online marketin& Unrealiged gaing on investments were £2.1 million (2019120.. £1. I million loss). The timing of our year end meant that we closed the previous year in the trough brought about by the pandemic, with large losses seen across 311 investments. However, investments recovered strongly during this financial year and now exceed their pre-pandemic levels. This hag helped to boost our reserves levelg, despite the operating deficit recorded.

Annual Report 2020-21 28 Who we received funds from 2020-21 Who we received funds from 2019-20 Donations from IndividuJs and Corpor7tes Legacies • Trust Supporters Community and Event5 • Trading income Income from invesLments Donations from Individuals and Corpor3tes Legacies • Trust Supporterg Community and Everrts • Trading income Income from investments £5,872k 407, £5,678k 50% £5,146k 35Y £3,251k 29Yo £1,197k 8% £1,073k 9% 11,164k 8% £722k 6% 1558k 4% 1449k 4% £343k 2*. £198k 21. Grants £269k 2% Grants 07. Balance sheet Total net assets at 30 lune 2021 were £15.4 million, an increase of £1.9 million on last year. A planned operating deficit wa£ offset by significant unrealised gains in investments. Restricted funds have decreased from £7.6 million last year to £7.3 million this year. This is in part due to the restricted Glaxo chair fund. The balance on the restricted fund is in deficit bul will be replenished with the Income received from the investment fund. During the year the Trustees agreed to create a new designated fund to set money aside for the development of our new strategy and brand, and to ensure adequate investment in the organisation around the launch. The existing designated fund for COVID research was depleted during the year, with grants awarded to support the COVID research effort. Subsidiaries performance Asthma UK and British Lung Foundation Partnership have three wholly owned sub£idiaries.' BLF SerNices Limited, Asthma Enterprises and BLF Limited, the latter being dormant. BLF Services Limited is registered in England and Wales (Company number 02341027) and its share capital is wholly owned by the charity and Is consolidated in these accounts. The company Is responsible for the generation of income through various commercial activities for the financial benefit of the charity. All profits are transferred to the parent charity under the company gift aid scheme. AsLhma Enterprises Limited is registered in England and Wales (Company number 02355314) and its share capital is wholly owned by the charity and is consolidated in these accounts. The company is responsible for the generation of income through various commercial activities for the financial benefit of the charity.

Annual Report 2020-21 29 Up until 31 December 2019 Asthma Enterprigeg Limited was a IOOYO owned subsidiary of Asthma UK. On this date Asthma UK merged with the British Lung Foundation, forming Asthma UK and British Lung Foundation Partnership and Asthma Enterprises became a 100% owned subsidiary of the merged entity. The results and the year-end financial position of the two active subsidiaries are shown in note 4. Financial position at the end of the year and outlook Uncertainty, in particular in relation to future income during the pandemic, was a constant feature during the 2020-21 financial year and remains present as we move Into 2021-22. The Trustees set a budget for 2020-21 with a planned structural deficit of £0.5m on our core funds,. these are our free unrestricted funds, and our asthma restricted lund, which work together to (orm the core funds upon which the organisation 5 financial stability depends. In addition, we planned to spend £1.3m of asthma reserves to ensure the continuity of the well-established asthma research programme. Excluding Un￿alISed gains in investments and the continuity funding for asthma ￿Search, we achieved a very small surplus compared to the planned deficit. This was thanks to income outperforming expectations, and while some Income streams did reduce compared with the equivalent raised in the 12 months to 30 lune 2020, the duction was not as great as feared. As we move into 2021-22 the Trustees have set a budget which plans for a structurJ break-even position across the same core re5erve5 of unrestricted and asthma restricted, excluding a similar commitment to use some of the asthma reserves to smooth out our asthma research programme spend. Whi1sL we currently have higher reserves than our target level, our reserves policy will be revisited following the launch of our new strategy, and a5 such the Trustees felt that it would be prudent to aim to l<eep core reserves at the current level. Prudent assumptions have been made In setting the budget, reflecting challenges in fundraising and dependence on voluntary donations, as well as in expernditu￿ given new digital activity utilising new resourcing models. The Trustees recognise the risks inherent in the financi￿ plan5 but are confident there are sufficient mitigations for the budget to be achievable. Fundraising against a backdrop of uncertainty in the economy, during a pandemic, is challenging. We will continue to increase the number of ways in which supporters can donate using digital channels efficiently and cosL-effectively. During 2020-21 we saw the success of new virtual fundraising activities such as the 'Our Eve￿5t, virtual event, which was also our first joint brand fundraising event, raising money for both Asthma UK and the British Lung Foundation, with supporters able to choose which to support. However, it ￿MaInS unclear whether appetite for virtual events will wane as in-person everbt5 return. In terms of charitable spend. ongoing uncertainty also impacts our ability to deliver planned activity and during the last year we had to adapt our model, for example delivering some activities virtually rather than in-person. We expect demand for our he￿th advice and services to remain high as people with agthma and lung diseases navigate the changing pandemic landscape, and we plan to continue innovating with new digital ways to deliver services, Including the rollout of our WhatsApp service to our full helpline,. p￿vioUslY it had only been available for asthma queries, having been developed by Asthma UK before the merger. Review of reserves At the end of the year our tot￿ fundg Stood at £15.39m (2020,. £13.55m), of which.. £2.59m are unre£trirted generd fund£12020.. £1.55m), £1.89m are in designated funds (2020.. £1.36m), of which £0.89m relates to the fixed asset reserve,

Annual Report 2020-21 30 £4.09m are reslrirted to asthma (2020.. £5.91 m), being the fund created following the merger of Asthma UK and the British Lung Foundation, into which we also pay new donations received under the Asthma UK name. Direct expernditu￿ on asthma is charged to this fund, which Iso contributes proportionately to the Sha￿ d costs of the organisation.Together with unrestricted general funds, these rep￿ sent the core funds of the charity, £3.18m ￿late to other resLrictions (2020.. £1.73ml', and £3.64m (2020.. £3ml are held as restricted endowment funds. The Trustees recognise the need to hold sufficient free ￿serveS to ensure the protection of our core activities in the event of income shortfall. This has become particularly relevant for 311 charities in light of the coronavirus pandemic and the impact this has had in the sector. Free reserveg available for use by the charity are those that are readily available for application In the name of any or all of the charity s objectives. This excludes unrestricted reserves that are not readily available, such as those held as fixed assets. The Trustees have set a minimum level of reserves, and also set an upper target which takes into account a greater degree of flexibility, through the provision of increased working capital. Our reserve5 policy follow5 the best-practice approach as set out by the Charity Commission guide CC19. The target level of free reserves will be calculated using the following steps.. l. A requirement to hold fftserves to mttigate income risk 2. A requirement to hold reserve5 to partially mitigate investment volatility, based on hisloric movements over three yearg (b￿ed on the performance benchmark data (or the funds), adjusted for the proportion of tot rese￿5 held in inveslments at the lasl balance sheet date. 3. A discount to the unrestricted target to reflect the property held by the organisation on a near-frEehold basis, based on an estimate of a portion of the asset that could easily be made liquid In an emergency. 4. Adjustments to reflect the proportiorb of shared cosLs, for example running costs or activity that benefrts all lung condtLion5, which can be taken from the asthma re5Lrirted fund. 5. A small working capital requirement of one month of expenditure. adjusLed as with step four, added to provide an upper limit to the target. Following the merger, the Trustees reviewed both the methodology and the calculation of target ￿Semes, and this calculation is re-performed annually when setting the next year's budget. Based on our 2021-22 budget, the Trustees recommended a target range of between £0.76m and £1.29m. The actual level of free re5erve5 of £2.598m exceed this target., however, the Trustees believe that the policy will need to be reviewed again as the organisation sets its new strategy, and that given the current volatility, it is acceptable to hold excess free reserves. Endowment and restricted funds The organisation holds a number of restricted and endowment funds. PrincipJ among these is the restricted fund for asthma. When Asthma UK and the British Lung Foundation merged, the assets of Asthtna UK were donated to the newly merged organisation and are held as ￿Stricted funds In line with the original objects of the charity Asthma UK. The charities SORP requires us to restrict any new donations received under the Asthma UK charity brand. as these are deemed to be restrirted to asthma. Any expenditure which is directly for the benefit of people with asthma or is incurred in the process of raising these funds. Is charged directly to this restricted fund. As part of the legal ag￿ement for the merger, it was agreed that 45°A of shared costs would be taken from the resLricted fund for asthma. Thi5 figure was calculated a5 the average of various Indicators to estimate a fair proportion of activity which could be attributed to the asthma fund. For example,

Annual Report 2020-21 pre-merger estimates guggested that 45Yo of people with lung disease had asthma. The organisation's ongoing commitment to asthma holds true Irrespective of the value of this fund. Given the Interaction between this fund and our unrestricted ￿serVeS, our Trustees have conSide￿d the need to set a minimum level and upper target level of reserves in this lund, and recommended a target range of between 13.59m and £4.02m. This target is calculated on a similar basis to the free i-eserves target, but also includes a provision to secure long-term funding for asthma-related research given the programme is well established. The Trustees intend to keep this policy under constant review alongside the free reserves policy. The policy regarding the management of the restricted fund for asthma will itgelf be reviewed once the organisation has set out Its new strategy. Other restricted funds are held in accordance with the donors, wishes, relating either to a specific lung condition, to a particular project, or in some cases, a geographic restriction. Similady. endowment funds are held for the long-term benefit of people with lung disease and restricted to specific activities agreed with the donors. The Glaxo Endowment Fund is currendy in deficit but will be replenished with income received from the investment fund in which the endowment is held. Designated funds As at 30 lune 2021, totl designated funds stood at £l.89m (2020.. £1.36ml, an increase of £0.53m. Last year, the Trustees agreed to set aside a portion of our reserves to support the research effort into COVID-19. A fund of £0.5m was set aside. consisting of £0. I m of free reserves and £0.4m of asthma stricted funds. The funding did not meet the criteria for a research grant commitment, and $0 a designated fund was created to hold the assets. Research grants were then awarded at the start of the 2020-21 financial year, clearing down this fund. At the end of 2020-21, the Trustees resolved to create a new designated fund of £1 m, taken equally from unrestricted and asthma restricted funds, set aside to support the development and implementation of our new sLrategy. This was in recognition of the ambition in the emerging strategy and the need to invesL adequately to ensu￿ the potential of the organisation is reached. Additionally, the charity holds a designated fixed asset fund of £0.89m (2019.. £0.86m), ￿flectIng the net asset value of the Goswell Road property. Research grant policy Asthma UK and Britlsh Lung Foundation Partnership has agreernents to fund research projecLs, senior search fellowships and research centres for periods of up to five years. Given the constructive obligation C￿ated on awarding these grants a provigion is made in the accounts at that point for forward commitments (i.e. these are recogni5ed as liabilities). Our investment In research is governed by our Research Governance policy and this is reviewed by the Trustees annually. Each year there is a rigorous technical review process to ensure research undertaken on behalf of A¥Lhma UK and British Lung Foundation Partnership meets the conditions under which it was granted, our code of ethics and other standards. It is the charity's intention to meet the grants obligations unless there Is an exceptional fftason not to. The selection of research projects for funding is through an established peer-review system which includes lay reviewers, in accordance with the guideline5 of the Association of Medical Research Charities. Experts in relevant fields of research are asked to give a commentary and score the grant applications according to their levance to asthma, our research aims, the quality of the proposed methodology and its value for money.

Annual Report 2020-21 32 Investments The Finance and Audit Committee, which reports to the Board of Trustees, monitors the activities and perfortnance of the investment managers on a regular basis. The charity's aims in investing its funds continue to be to.. Produce the best financial ￿tUrn within an acceptable level of risk. Maintain the capital v￿ue of our investments in reJ times over a 3-5-year cycle. Hold sutficient liquid funds to meet short-term funding requirements. Investments are invested in a number of Funds and the Finance and Audit Cornrnittee Monitors each Fund's performance annually and iompare5 With industry benchmarks to ensure the Funds remain appropriate for the charity's Investments. The Committee reviews the charity's investment policy annually and is committed to socially responsible investing. As part of our strategic ￿View, we will ￿$0 review our investment holdings to ensure they align with our charitable mission and new sLrategy. Investment performance The movement on investments Is shown In note 12. Total unrealised gains in Investments for the year were £2,141k. There were no realised gains. Last year, investments suffered significant losses in the immediate aftermath of the COVID pandemic. The Trustees, view was to stand firm as the market values should return once the pandemic has subsided. Market values now exceed the pre-pandemic levels. Going concern The financial statements a￿ p￿Pared on a going concern basis, and Trustees consider that the charity will remain a going concern for at least the next 12 months. The coronavirus pandemic has impacted the charity sector in many way5, With huge increases in demand coming at a time of decreased income, and the charity has observed a fairly typical pattern In that regard. However, the merger between Asthma UK and the British Lung Foundation has strengthened our ability to withstand shocks of this nature, principally because of the cost savings already achieved through the merger. Following the recovery of invegtment values and better-than-expected financial performance during the year. our free reserves remain In excess of the target Set by the Trustees. Our plans for 2021-22 include breaking even on core funds, excluding a £0.65m planned use of asthma resewes. M05t expenditure 15 predictable in timing and amount, and there are sufficient reserves to meet our immediate obligations. Indeed, we hold core reserves in excess of our target levels. Additionally, the charity holds a property at Goswell Road on a long-term (973 years unexpired) lease, which COLJld be sold if required in an emergency situation. Whilst we do predict that income will be grow slightly in 2021-22, with budgeted t(rtal income of £15.8m also slightly above the amount raised in 2019-20 by the two separate charities, there remains uncertainty over when fundraised income will return to pre-panderY)ic levels. The charity s fundraising portfolio means that it was less exposed to the impact of the pandemic than some, and at the point of Signing these accounts, Indications show that our financial performance In 2021-22 is £table. Additionally, our combined size since merging Improves our resilience and ability to withstand short-term volatility. These factors taken together, lead the Board of Trustees to conclude that the charity is a going concern and will remain a going concern for at least the next 12 months.

Annual Report 2020-21 33 Ris1< and uncertainties The Board has ultimate responsibility for the management of risk and they have delegated the responsibility to the Finance and Audit Committee to oversee the charity's risk management strategy and process. The risk register is reviewed regularly by the Committee and key risks are highlighted on a risk heat map. A formal risk management policy and framework has been adopted to ensure there 15 a shared understanding of risks and how they can be managed. The risk register Is used to ensure identified risks have suitable mitigations in place and the risk appetite is understood, and to highlight any addition￿ controls to reduce the risk further. It is reviewed by the Executive Team who discuss changes to the risk register at a quarterly meeting. Project risks are managed within the PM toolkit and escalated to the Executive Team of the Finance and Audit Committee as appropriate. The key risks and uncertainty are set out in the table along with mitigation and future actions. Risk Mitigation Future action Following the successful merger, Professional experts working New Strate￿ and branding we now face complexity In the closely with the ET and TrusLees launch to be OLrLlined with staff, alignment on a new organisational to ensure an eviden(e-b￿ed beneficiaries, supporters, key brand and Strategy. Thi5 may decision 15 ￿a(hed on fuLure slakeholders and trade pres& Impact on Income, loss of brandls). Legal inpLrt for changes to brand recognition, and lack of Key stakeholder, beneficiary, goveming document. engagement with supporters and supporter, stsff andTrustee Costs ￿SOCIated with beneficiaries with a reduction in engagement to ensure the branding to be monito￿d to charitable Impact. decision on brand ￿sonateS ensure best value and use of with key audience. Charital￿e funds. Strategic away day with ET and Trustees to ag￿e on approach. Horizon scanning. Review of Investments and rEserves at F8A ExLernal adv150rs engaged to provide advice. AFternative digital fundraising events and products. Consolidated office space. Staff feedback on [lrtu￿ ways of working in the otfice. Monitoring of key issues impacting people with lung diseases. Stakeholder meetings with policy makers and politicians. Coalition working. Continued uncertainty related to COVID-19 pandemic and the impact on income, workforce, cash flow and the loss of value In key assets results in difficulties in planning and budgeting. Review investment manage and portfolio. Consider long-term estates strategy. Further investment in fundraising innovation. New slrategy considering long- term income generntion. The ability to effect change on behalf of beneficiarieg is severely curtailed by complexity of external environment and focus on other policy priorities leading to poorer delivery of care, lack of progress on public health including clean air and worsening health outcomes for people with lung disease. Quartedy update of plans to rEflect volatility of etLern environment New sLr7tegy considering most effective routes to achieve change.

Annual Report 2020-21 34 Less Investment and reduced capacity in research and innovation reduces volume of research. weakens academic workforcel ingtitutionslcollaborations and delays discovery and clinical trials, stalling new knowledge and innovation that could benefit people with lung disease. Work with AMRC and other medical charities to amplify the message and raise awa￿rneSs of lack of Investment. Invest in proven research and innovation funding influencing models, Review funder sLrategies for co-funding angles. Seek ways to irncre￿e our own research funding over the coming years. Influence others through research calls to artion, to leverage our own funds so that even greater sums are spent overall, Increased threat of sophisticated cybercrimes and the resulting impact on our systems, data, finances and lacilities. Annual penetration te¥bng. Mandatory staff training. Tech roadmap. Cyber insurance. Multifactor aLrthorisation. Updated communications approval proces Integrated communications planning. External comms crisis plan and incident management plan. Media helpline. Social media housekeeping rules. SOCI￿ media monitoring. Updating Buginess Continutty. Plans to manage specific incident types. Additionl training for staff. A negative and focused public attack i.e. media/social media due to disagreement with our communications, activity or POSition negatively impacts our ability to support, engage, Influence and fundraise and leads to a loss of trust with supporters and beneficiaries. Failure to recruit and retain a strong and robust workforce impacts our ability to deliver our ambitions for our beneficiaries. This may include remuneration, poor learning and development opportunities and failure to embed an inclusive workplace culture. ContinuoLiS review of key messages and internal sign-off processes. Training for key staff, Including a planned simulation exercise. F￿quent and transparent employee communications. Regular employee engagement surveys., the Staff Forum used for communication, consultstion and feedback. A positive and progressive offerto stsff, with a focus on wellbeing. Reporting of employee retention, absence and engagement, Trustee appraisal policy. Indurtion programme,. job descriptions, objeclives and L&D plans. Clear people policies and pr3rtices uniformly applied. Compulsory e-leaming for new starters Including UK GDPR cyber-security, safeguarding, EDI and health and safety. Internal Information governance group to approve changes to data and cyber processe Review of Reward policy and pracLice, recruitment processes and packs, performance management processes. Development ofnew vJues, behaviours, and erna￿￿erS for the organisation. A ￿VIeW of our employee engagement tools and approaches. A reiqew of our overall approach to employee reward. Maintaining compliance with our legal and regulatory requirements. Introducing an outsourced intemal audit provision to provide additional assurance to the Board and ExecutiveTeam.

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Annual Report 2020-21 36 Our structure, governance and management The Board of Trustees setg Strategic direction, ensures the Charity achieves its objectives and is responsible for upholding its values. The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trusteeg to P￿Pare financial statements for each financi￿ year. Under that law the Trustees have elected to prepare the financial statements in accordance with FRSI 02 and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standard£ and applicable lawl. Under Company law the Trustees must not approve the financial statements llnless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the Group, and of the incoming resources and application of resources. Including the income and expenditure, of the charitable company and the Group for that period. In preparing these financial statements, the Trustees are reqUI￿d to.. Selert suitable accounting policies and then apply them consistendy. Observe the methods and principles in the CharrLies SORP Make judgements and accounting estimates that are re￿OrnatIe and prudent. State whether appliCa￿e UK Accounting Stsndards have been followed, subjert to any Materi￿ departures disclosed and explained in the financial rtatements. Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Asthma UK and British Lung Foundation Partnership will continue In operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking asonable steps for the prevention and detection of fraud and other irregularities. The Trustees confirm that.. so far as eachTrustee Is aware, there is no relevant audit Information of which the charitable company's audttor is Unawa￿,. and theTrustees have taken all the steps that they ought to have taken asTrustees in order to make themselves aware of any relevant audrL information and to e%Lablish that the charitable company's auditor is aware of that Information. The TrusLees are responsible for the maintenance and integrity of the corporate and financial information Included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financi￿ statements may differ from legislation in other jurisdictions. Members of the Charity guarantee to iorbtribuLe an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 30 lune 2021 was 1212020.. 12). The Trustees are members of the Charity, but this entitles them only to voting rights. The Trustees have no beneficial Inte￿$t in the Charity.

Annual Report 2020-21 37 Auditors Crowe LLP have been appointed as the charitable company's auditors during the year. The Trustees, Annual eport has been approved by the Trustees on 15 December 2021 and signed on their behalf by Baroness Tessa Blackstone Chair of Trustees

Annual Report 2020-21 38 Board of Trustees Baroness Tessa Blackstone - Chair aroness BlacksLone Is a Labour peer and has chaired the board of a wide range of organisations. She Studied at the London School of Economics (L5EI where she went on to take her doctorate. Her academic career began as a lecturer in social administration at LSE. She was Master of Birkbeck College and, later, Vice Chancellor of the University of Greenwich. She was Minister of State in the Department for Education and Employment and then in the Department of Culture, Media and Sport. Tessa has published widely in academic journ￿5 and written a number of books mainly on social and educational policy. Professor lan Hall -vice Chair lan joined as a Trustee in july 2017. He is currently Director of the NIHR-Nottingham Biomedical Research Centre and works clinically as a respiratory physician, running a specialist clinic for patierrt5 With severe asthma in Nottingham. lan has over 25 years experience In this clinical area and in 1993 was appointed as the inaugural National Asthma Campaign Senior Research Fellow. lan has been heavily involved In research management and clinical academic training at a national level, as well as medical education. He chairs the UK espiratory Research Collaboration. lan has supported Asthma UK over many years, serving on the Asthma UK research panel, contributing to Asthma UK ￿pOrtS, and participating in workshops for a range of activities including EARIP, Jim Bowes lim became a Trustee in March 2017 to help Asthma UK maximise the benefit of its use of digital technology. He is the founder of digital agency Manifesto. lim has worked in digital for over 20 year5 helping people create products and services around the needs of users, working predominantly across the health, housing and charity sectors. He presents the podcast Alexa Stopl which discusses the impact of technology on our lives. lirn 15 Chair of the Nominations and Remuneration Committee. Emily Bushby Emily is the interim chief executive officer and chief operating olficer at Guarantco. Her previous roles have included leading the finance function of a medical related charity. mergers and acquisitions for a highly acquisitive FTSE 30 business, and investment management within the banking sector. She trnined as a chartered accountant at Pricewaterhousecoopers in London and is an alumnus of Exeter University, where she gained a Bsc in Psychology. Caroline Cartellieri Karlsen Caroline brings over 25 years, experience in e-commerce, digit￿ strategy and marketing. Her previous roles Include that of chief commercial officer of Ennismore, chief digital officer at Sun European Partners and director of digital transformation at glh Hotels. Before that she held the role of chief operating officer of Myspace International as well as senior positions at Expedia and Kingfisher. Prior to this she founded a pioneering e-commerce business in New York City. She started out her career as a consultant for the Boston Consulting Group and McKinsey & Co.

Annual Report 2020-21 39 Professor Edwin Chilvers Edwin Chilvers is professor of Medicine, and head of the National Heart and Lung Institute (NHLI), at Imperial College London. His research interests are In inflammatory cell biology, in particular the intracellular signals that regulate the activation and survival of neutrophils and eosinophils. This has translational relevance to a range of Inflammatory lung diseases Including chronic obstructive pulmonary disease ICOPD), asthma and acute lung injury. He has a particular interest in the signalling mechanisms regulating NADPH oxidase function in neutrophils, and the control of neutrophil and eosinophil survival by hypoxia and inflammatory cytokines. His research has received continuous MRC and Wellcome Trust support for the past 25 yea￿. Dr Isabel Divanna Isabel Is a director-level busine55 development and marketing profe55ional. She is currently the executive director, commercial and customer experience. at RenewableUK, the trade association for green energy. She has been a director of corporate partnerships and business development in London and in Cambridge, and she spent many years working on professional development, continuing training and executive education. She has experience working in the professional services (consulting, research and advi£ory) and not-for-profit sectors (education, charities, Royal Charter, local government, professional and membership bodies and trade agsociationsl, Seeking to grow their portfolio and business through fundraising partnerships and commerci activities. She Is a fellow of the Royal Society for the Arts, of the Chartered Management Institution and of the Institute for Leadership and Management. She Is also a Trustee of Papworth Trust. John Graham After completing a chemistry degree at Oxford University, john trained as an accountant with Deloitte in Manchester. He worked in industry with BP, the Seiko Epson Group in the UK and eventually became finance director of Northamber plc, a FTSE 250 company. In 1996 he became finance director of NSPCC, staying with them for I l years before moving as finance director to the Royal British Legion in 2008 until 2016. During his 20 year£ with the charity sector, john has been involved in a number of sector initiatives Including advice on pensions and risk. For eight years he sat on the Charity Commission 50RP committee helping to articulate the International accounting standards for the benefit of the charity sector. john is the Chair of the Finance and Audit Committee. Katherine Morgan Katherine is currently head of supply chain commercial development for Moryison's and prior to that was director of transformation at Fenwick. Katherine works with boards delivering multi-£m change programmes and enjoy5 using her customer and commercial focus to SUPPOrt the TrusLee Board of Asthma UK and the British Lung Foundation. Michael O'connor Mike has held CEO posts since 1989 with his last full-time role at Stepchange Debt Charity, the UK'S largest debt advice charity. He was CEO at Consumer Focus, the statutory consumer body, the Olympic Lottery Distributor and the Millennium Commission. His eady career was in the Department of Health, where he was the private secretary to two ministers, and in HM Treasury and Cabinet Office. He was a Trustee of the Mental Health Foundation and Action on Smoking and Health. He is a member of the Advertising Advisory Committee at the Advert15ing Standard5 Authority and vice chair of the London Irish Centre Charity. He received a CBE for public servile in 2000 and is a member of the Council of Fellows of the University of Keele.

Annual Report 2020-21 40 Niren Patel Niren joined as a TrusLee in july 2018 and is currently a senior fund manager at Aviva InvesLors. responsible for managing fixed Income portfolios. Prior to joining Aviva Investors, MI￿rn was a director within the Solution5 business at BlackRock. Niren began his career at KPMG LLP where he worked both in inveslment and pension consultins Niren Is a Fellow of the Institute and Faculty of Actuaries. Professor lan Sabroe lan joined as a Trustee in july 1018. He is a consultant in respiratory medicine in Sheffield and an asLhma Specialist. He undertook a PhD In asthma-related research at the National Heart and Lung Institute at the Royal Brompton Hospital and has continued research in this area as a consultant and professor at the University of Sheffield. lan helps to coordinate care of people with asthma across the Yorkshire region. He has worked with the charity before as a member of the Asthma UK Research Committee and the charity has previously funded aspects of his group s research. Committees and advisory groups The Board is supported by two committees to which it delegates certain authoritieg. The committees operate under a terms of reference which Is approved by the Board and reviewed periodically. There are also three advisory groups that provide Specialist advice and support. Finance and Audit Committee The Finance and Audit Committee will normally meet five times a year and will act as the,. Finanie Committee Risk Committee Audit Committee Investment Committee Technologx and Data Committee Eslateg Committee There were additional meetings in 2020-21 which were used to discu55 Specific topics including investments and technology and information governance. The Committee consists of four members of the Board. The Board has the power to co-opt up to two non-Trustee members chosen for their relevant skills and experience. The Finance and Audit Committee currently has one co-opted member, sean Tubb5, to advise on technology and data governance. Nominations and Remuneration Committee The Nominations and Remuneration Committee meets at least twice a year and will act as the.. Governance Committee Nomination Commtttee Remuneration and People Committee

Annual Report 2020-21 41 Trustee appointment The process for appointing Trustees is overseen by the Nominations and Remuneration Committee which consists of up to four members of the Board. A skills and experience audit of C￿r￿rnt Board members compared to those ski115 required to perform Board duties guide5 the proce55. Targeted advertising is used where necessary to attract candidates with specific skills, e.g. Trustees with expertise in researching and treating lung disease are recruited through contacts of the current Board of Trustees and professional networks. The Nominations and Remuneration Committee hag responsibility for periodic review of the Articles, and the overall governance structure and operation In line with good practice and the latest gulations. The Board monitors Its composition and diversity with the aim of ￿flectIng the beneficiaries we seme. Although we have not set diversity targets, we encourage applications Irom the widegt possible pool of candidates. Research Review Panel Members of the panel are invited independent e¥perts who meet to review grant applications and make recommendations to Council and Inform and review progress against the research strategy. In 2020121 the following served on at least one of AUK-BLF'S Research Review Panels,. Professor Edwin Chilvers (Chair, Imperial College London) Dr Marion Macfarlane (MFIC Toxicology Unit) Dr Kevin Blyth (University of Glasgow) Professor Stefan Marciniak (University of Cambridge) Professor Peter Bradding (University of Leicester) Dr Suzanne Miller {University of Nottingham) Profe£sor Karen Brown (University of Leicesterl Professor Daniel Murphy (University of Glasgow) Professor james Chalmers (University of Dundee) Dr Marko Nikolic (University College London) Professor judy Coulson (University of Liverpool) Dr Manuela Plate (University College Londorb) Professor Donna Davies (University of Southampton) Professor Najib Rahman (University of Oxford) Dr Shona Fielding (University of Aberdeen) Dr Elizabeth Sage INHS Highland) Dr Katie Finegan (University of Manchester) Dr Elizabeth Sapey (University of Birmingham) Professor Chris Griffiths (University of London) Lizzi 5tephen£ (Lay member) Dr Nik Hirani (University of Edinburgh) Dr Chris Scotton (University of Exeter) Profe£sor Gisli jenkins (Imperial College London) Dr Amanda Tatler (University of Nottingham) Dr Rachel jordan (University of Birmingham) Phil Taverner (Lay member) Helen Ashley Taylor (Lay member) Dr David Leather (GlaxoSmithKline) Professor Louise Wain IUniver£ity of Leicester) Professor Clare Lloyd (Imperial College London)

Annual Report 2020-21 42 Attendance at Board and Committee July 2021￿June 2021 Note.. additional meetings were held during the year due to the twin complexities of the coronavirus pandemic and post-merger integration. Board of Trustees Finance and Audit Committee Nominations and Remuneration Committee Te55a Blackstone lan Hall john Graham Isabel Divanna Emily Bughby Katherine Morgan Niren Patel Edwin Chilvers lan Sabroe Ralph Bernard jim Bowes lean Francois Bessiron Caroline Cartellieri Karlsen Michael O'Connor* 515 515 515 515 515 415 415 415 414 212 515 313 313 NIA NIA 919 NIA 819 919 919 NIA NIA NIA NIA NIA NIA NIA NIA NIA 313 NIA NIA NIA NIA NIA 212 313 NIA ** 313 NIA "stepped down In December 2020 stepped down in February 2021 appointed in February 2021 Remuneration policy The purpose of remuneration is to ernsu￿ the Charity is attractive to high-calibre potentiJ employees, help retain its people and sUPPOrt workforce produrtivity. The ability to achieve positive outcome5 for people with lung disease Is hugely influenced by the commitment, skill and productivity of Its staff. The Charity's remuneration package, which encompasses financial and nonfinancial elements, needs to be relevant to workers in the market sectors in which it competes for labour, and underpinned by the Charity'5 remuneration philosophy. The policies of Asthma UK and British Lung Foundation adhere to principles of fairness, support flexible working, cost-effective administration and transparency in reporting and ensure pay will be competitive so that the charitable objectives can be delivered. Remuneration for the Chief Executive and Executive Team is set, maintained and reviewed by the Nominations and Remuneration Committee. Trustees receive reasonable expenses only. The Nominations and Remuneration Committee reviews the Remuneration policy at least every two years. The Committee is mindful of advice regarding disclosure of senior staff remuneration in the Charity Governance Code. Senior rnanage￿ comprise the Chief ExecLrtive, Chief Operating Officer, Director of esearch and Innovation, Director of ExLernal Affairs, Director of Services and the Director of Fundraising and Engagement. The total annual remuneration for the senior management for 2020-21 was £707k (2019-20.. 1800k).

Annual Report 2020-21 43 Employment policy AUK-BLF strives to be a great place to work where people feel able to bring their true and best selves. We rely on our people to achieve our charitable purpose. It is the Charity's policy to provide equal opportunities to job applicants and employees of any race, nationality, ethnic origin, marital status, religion or belief, gender, disability, se)(ual orientation, age or employment status. The Charity doe5 n(rt condone or tolerate any form of discrimination in its recruitment or employmerbt practices. We actively seek to remove barriers which may disproportionately impact certain communities, for example through our policy of only asking for a degree if a specific one is needed for a role, and only then where it is clearly justifiable. All employees and applicant5 are treated on merit, fairly, with respert and dignity, recogni5ed as individu￿5 and valued for the contribution they make, provided with fair and equal access to training. development, ward and prOg￿$s1on opportunities and are accountable for the impact of their own behaviour and actions. All the Charity's policies follow these principles. During the year, regular communications to employees have been provided on matter5 affecting them, Including factors affecting the Charity's progress, and they have been consulted on decisions affecting them. A staff forum meets regularly to discuss any ongoing issues that impact on employees and working practices. We survey staff on a regular basis using a number of key indicators, as well as asking for suggestions of things that would make their experience of working at AUK-BLF even better. Environmental policy As a charity dedicated to caring for the nation's respiratory health, we have an obligation to ensure that our behaviour aligns with our charitable objectives. The Board approved the Environmental and Sustwnability policy in October 2020, and are developing an action plan that will focus on the following areas.. Pension and invegtments Partnerships Purchasing Waste Transportation Related parties The Trustees maintain a register of interest and a related party declaration is completed annually. Conflicts of interest are declared at the beginning of every Board and Committee meeting and any conflicts of interest are managed in accordance with the Articles of Association. Asthma UK and British Lung Foundation Partnership Is a member of the Taskforce for Lung Health and provides the secretariat for this group. We are members of the Association of Medical Research Charities and maintain close links to the British Thoracic Society, Primary Care Respiratory Society UK and other professional respiratory societies, and patient chai-lties. We are a member of the Richmond Group and we are also a member of the UK Lung Cancer Coalition, the Global Lung Cancer Coalition, the Common Cancers Colition, the Smoke Free Action Colition, and the Healthy Air Campaign. In the charity sector we are a member of the National Council of Voluntary Oryanisations. A number of Trustees and senior management sit on other respiratory health committees and programme boards and the Charity is involved in initiatives across the UK.

Annual Report 2020-21 44 Thank you We are extremely grateful for the continued support from our donors, supporters, campaigners, volunteers and those people who have left us a gift in their will. A special thank you must go to our Patron and our Presidents for their unstinting support. Thanks to the following businesses, public bodies, trusts and foundations for their generous support during 2020-21, Major donors Victor Dahd￿eh Foundation Trusts and Statutory Nesta, NHS England, Natiorn￿ Lottery Community Fund - supported by the Department for Culture Media and Sport, Sport England, Peacock Charitable Trust, Anson Charitable Trust. Kinglcullimore Charitable Trust, Robert Luff Foundation Limited, Garfield Weston Foundation, Felicity Wilde Charitable Trust, The Revere Charitable Trust, Pulmonary Fibrosis Trust, Gwyneth Forrester Trust, Greendale Foundation, The janus Henderson Foundation, Clean Air Fund, Fidelity UK Foundation, Sarcoidosis UK Corporate and community partnerships GA Solicitors, PARI Medic￿, Lucas, Insmed. Nutricia, Mitsubishi Electric Living Environmental Systerng, Catalina, Irwin Mitchell, NiQuitin I Perrigo Pharmaceutical Verona Pharma, Chiesi, Novartis, lanssen, GlaxoSmithKline. Astrazeneia, Sarbofi Pasteur, Seqirus, johnson & johnson, MSD, Pfizer, Takeda, Amgen, Medtronic. We would not be able to continue our work without your support.

Annual Report 2020-21 45 Independent auditor's report Opinion We have audited the financial statements of Asthma UK and the British Lung Foundation Partnership for the year ended 30 lune 2021 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheets, the Group Cash Flow Statement and notes to the Financial Group Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Prnctice . In our opinion the financial statements.. give a true and fair view of the sLate of the group's and the charitable company's affairs as at 30 lune 2021 and of the group's Income and expendrLure, for the year then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Prattice,. and have been p￿pared in accordance with the ￿qUireMentS of the Companies Art 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charitie£ Accounts (Scotlandl Regulation£ 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial staternents section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'g Ethical Standard, and we have (ulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial staterY)ents, we have concluded that the Trustees, uge of the going concern basis of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authori5ed for issue. Our responsibilities and the responsibilities of the Trustees with ￿SPect to going concern are described in the levant sections of this report.

Annual Report 2020-21 46 Other information The Trustees are regponsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the eKtent otherwige explicitly stated in our report, we do not exp￿$$ any form of ￿suranCe conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained In the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are reqUI￿d to determine whether this gives rise to a material misstatement in the rinancial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this Other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the infonnation given in theTrustees' report which includes the dirertors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial gLatements are prepared Is consistent with the financial ststements,. and the strategii report and the directors ￿POrt included within the Trustees ￿pOrt have been prepared in accordance with applicable legal requirement Matters on which we are required to report by exception In light of the knowledge and understanding of the group and charitable company and their environment obtained in the collrse of the audit, we have not identified material misstatements In the strategic report or the director-s, report included within the Trustees, report. We have nothing to report in respeit of the following matters in relation to which the Companies Art 2006 and the Charities Accounts (Scotland) Regulations 2006 ￿qUireS us to report to you If, in our opinion.. adequate and proper accounting records have not been kept,. or the financi￿ slatements are not in agreement with the accounting ￿(OrdS and returns,. or certsin disclosuffts oFtrustees' remunerxtion specified by law are not made., or we have not received all the Information and explanations we require for our audit. Responsibilities of Trustees As explained more fully In the Trustees, responsibilities statement set out on page 36 the Trustees (who are also the directorg of the charitable company for the purposes of company law) are i-esponsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the prepantion of financial statements that are free from rnater1￿ misstatement, whether due to fraud or error.

Annual Report 2020-21 47 In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to ceage operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 4411)(cl of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 20016 and report in accordance with the Act5 and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit conducted In accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material il, individually or in the aggregate, they could reasonably be expected to influenie the economic deci5iorbs of users taken on the basis of these financial Statements. E)etails of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and ￿gUlatiOnS are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council s website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditors report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, Including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures In the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 201 l and The Charities and Trustee Investment IScotl3ndl Act 2005, together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations ￿ part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's and the group s ability to operate or to avoid a material penalty. We also considered the opportunitieg and incentives that may exisL within the charitable comparby and the group for fraud. The law5 and regulations we considered in this context for the UK operations included General Data Protection Regulation (GDPR) and employment legislation. Auditing standards limit the required audit procedures to identify non-compliance with thege laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

Annual Report 2020-21 48 We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income legacy Income and the override of controls by management. Our audit procedures to ￿SPond to these risks included enquiries of management, and the Finance and Audit Committee about their own identification and assessment of the risks of irregularities, agreeing income to contracts or other supporting evidence on a sample basis, testing on the posting of journals, reviewing accounting estimates for biases, reviewing any regulatory correspondence with the Charity Commission and the Scottish Charity Regulator IOSCR), and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financiJ statements, even though we have propedy planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (Irregularities) is from the events and transacLions reflected In the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. lft addition, as with any audit, there remained a higher rigk of non-detection of irregularitieg, as these may involve collusion, forgery. intentional orni55ions, tnisrepresentations. or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. Use of our report This report is made solely to the charitable company'g members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we a￿ required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body. for our audit work, for this report, or for the opinions we have formed. Julia Poulter Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date.. 23rd Decembei 2021

Annual Report 2020-21 50 Group statement of financial activities for the 12 months to 30 lune 2021 (incorporating consolidated income and expenditure account) 30.IL 2021 3￿lun 2020 Note5 UNRESTRICTED RESTRICTED ENDOWMENT TOTAL FUNDS FUNDS FUNDS FUNDS cooo £'ooo £,(￿0 L'(￿0 TOTAL FUNDS £'ooo Income from: Donations and legacies Charitable activities 4,949 37 8.953 232 33 13,935 269 10,469 Other trading activities Investments 97 461 280 558 890 198 63 343 Total income before combination 21bl, 3 5.146 9,926 33 IS.IOS 11,557 Fair value of net a55ets received on combining with Asthma UK Total income 8,532 5,146 9,926 33 15,105 20,089 ExpendSture on- Expenditure on raising donations and legacies Investment management costs Total expenditure on raising funds 2.842 4.012 2,949 36 92 2.861 1.262 4,123 2.985 Net incoming resources available for charitable applitatio 2,285 8,664 33 10,982 17,104 Charitable activitie5: Research 676 4.312 4,988 2,520 3.768 11,276 Improving care Advice and support Tot&1 expenditure on charitable activities 2,208 2,970 5.854 1.923 4.271 7.806 798 5.422 Total expenditure 8,715 6.684 15.399 10.791 Net incomellexpenditurel before Irwestment gain5 (3,569) 3,242 33 (2941 9,297 Gain51lLossesl on investments Net incornellexpenditurel Transfers between funds 255 605 638 2.141 1.847 11.0691 8,230 4.523 14,8861 (363) 4,886 1.572 Net movement in funds Reconciliation of funds.. Fund balaTrces brought forward at I july 2020 Net movement in funds 638 1.847 8.230 2,913 1,572 7.639 13631 2,998 13,550 638 1.847 5.320 8,230 Fund balances carried forward at 30 lune 2021 4.485 7,276 3.636 15,397 13.550 Prior year split between unrestritted and restricted appea￿ In Note 23. There are no unrecognised gain5 or losse5 other than those di5(105ed above. All of the results derive frorn iontinuing activitie5 in the period The accompanying notes are an Integral part of this statement of group financial activities. The surplu5 determined under the Companie5 Act 2006 15 £1.713k12019120.- £743k deficit).

Annual Report 2020-21 51 Balance sheets as at 30lune 1021 CONSOUDAIED 30-Jun 30.lun 2021 zo20 £'ooo £￿0 CHARITY 30.lun 2020 £,￿0 30-Juh 2021 £'ooo Fixed assets Tangible assets Investments 887 861 15.497 16,358 887 861 15,597 16.458 17,589 18,476 17,689 18.576 Total fixed ￿set5 Current assets Debtt>rs 2,070 7,404 9.474 2,085 7.281 9,366 1,629 4.877 6,506 C￿h at bank and in hand 5.022 6,633 Total current assets Creditors Amounts faling due within one year 6,777 9,133 6,750 Net current assetsllliabilities) 322 233 12441 Total assets less current liabilities 18.799 16.214 18.809 16.214 Creditors lalling due after more than one year 3,402 2.664 3,402 2,664 Net assets 15,397 13.550 15,407 13.550 Represented by.. Funds Endowrnent lunds 3.636 7,276 887 2,998 7.639 861 500 3,636 7,276 887 2,998 7,639 861 Restncted funds Designated funds-fixed assets Degignated funds for research grant Designated funds- strategy, brand, and Investment Unrestricted funds 500 1.000 2,598 15.397 1.000 2.608 15,407 1,552 13,550 1,552 13,550 17 The annual Trustees, report and accounts including notes I to 23 We￿ approved and signed on their behalf by the Trustees on 15 December 2021. Baroness Tessa Blackstone Chair John Graham Chair of the Finance & Audit Committee

Annual Report 2020-21 52 Group cash flow statement lor the 12 months ended 30 lune 1021 30-1 2021 30-Jun 2020 14otes £y)00 Cash flow from operating activities: Net cash provided by operating activities 2,187 Cash flow from investing activities= Dividends and Inte￿￿1 from Investments 343 {861 1,584 678 198 Purchase of tangible fixed a55et5 Proieeds from sale ol investments 1,022 1641 152 Decreaselllncrea5el of cash held in investment portfolio Net cash provided by investing activities 195 Change In ca%h and ca%h equivalents In the reporting period Cash and ta5h equivalent5 at the beginning of the reporting period Cash and cash equivalents acquired on rnerger with Asthma UK Cash and cash equivalents at the end of the reporting period 2.382 5.022 3.804 2,408 7,404 5,022 NotÈs= Net income for the reporting period Adiu5trneDt for Tret a55Els received from A5thrna UK upon the mergEr Net incomellexpenditure) for the reporting period excluding net asset5 received from Asthma UK 1.847 8,230 18,5321 1302) 1,847 Adjustments for.. Depreciation charges IGainsllL055es on Investment5 Investment management fees Dividends and interest from investments Ilncreasel in debtors InctEase In creditors falling due within one year IncreasellDecreasel In creditory falling due in niore than one year (a) Net cash provided byllu5ed in) operating activities 60 35 1,069 36 {3431 (4591 2.374 738 2,187 19601 283 11.3041 Ibl Analysis of cash and cash equIv￿e￿ts Cash in hand 7.404 5,021

Annual Report 2020-21 53 Notes to the group financial statements l. Charity information Asthma UK and British Lung Foundation Partnership is a company limited by guarantee (registered number 01863614 England & Wales., 005851 Flsle of Man), which is a public benefit entity and registered as a charity (charity number 326730 England & Wales,, SC038414 Scotland and 1177 Isle of Manl, and domiciled in the UK. The address of the registered office ig 18 Mansell Street, London. El 8AA. On I january 2020, the British Lung Foundation merged with Asthma UK to form the Asthma UK and British Lung Foundation Partnership. To facilitate this merger of equals, the trustees of Asthma UK resolved to donate the net assets of the charity at fair value to the British Lung Foundation, which ￿naMed itself to reflect the merged charity's focus. Asthma UK and British Lung Foundation Partnership took on responsibility for all assets and liabilities previously held by Asthma UK. Within the donated net assets were £1,069k of endowment funds. The remaining net assets were treated as restricted in line with the pre-merger objects of Asthma UK. A restricted fund for asthma was created. into which any general income raised under the AsLhma UK identity is paid. The fund is used for direct charitable activity, the costs of raising funds restricted to asthma, and an equitable share of generd charitable activity and charity running costs. Note 17 shows the detail of transfers between this fund and the unrestricted fund to reflect this use. The balance of these transactions is shown on the SOFA as an exceptional income line in the prior year comparitives to represent the net effect of the transfer of assets and liabilities. These We￿ one-off transactions relating to the merger. 2. Accounting policies (a) Basis of preparation The accounts (financial statements) have been prepared In accordance with the Charities SORP IFRS102) applicable to charities p￿Paring their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from I january 2015. The accounts are prepared under the historical cost convention, with the exception of quoted investments which are stated at market value. Basis of consolidation The financial statements have been cong01idated to include the results of the charity's subsidiaries using the equity line by line method. Transactions and balances between the charitable company and its subsidiaries have been eliminated through the consolidated financial statements. No separate statement of financial activities for the charity has been prepared for the Charity alone a5 permitted under Section 408 of the Companies Act 2006. Included in the group results are income of 114,906k12020.. £11,420k),' expenditure of £15,334k12020,. £10,761 kl., investment gains of £2,141 k12020.. losses of £1,069kl and a net increase in funds of Ll,713k (2020.. net increase £659k) resulting from activities of the Charity. The particular accounting policies adopted by the Board of Directors have been applied consistently and are described below.

Annual Report 2020-21 54 Going concern The trustees consider that there are no material uncertainties about the charitsble company s ability to continue a5 a going concern. Key judgements that the charitable company has made which have a Significant effect on the accounts include estimating the liability from multi-year grant commitments. The trustees do not consider that there are anx sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the neYL reporting period. Public benefit The Trustees confirm that they have referred to the information contained in the Charity Commission's general guidance on public benefit when reviewing Asthma UK and Britlgh Lung Foundation Partnership s aims and objectives and In planning activities and setting policies and priorities for the year ahead. (b) Income All incorning resources are included in the statement of financial activities when the group is legally entitled to the income, the amount can be measured with reasonable accuracy and its receipt is probable. When income is received in advance of providing goods or services, it is deferred until the group becomes entitled to the income. Legacies are recognised when all the three Iriteria below are met.. Establish entitlement- entitlement to legacies Is taken as the eadier of the final estate accounts being approved or cash ￿(eiVed. b. Where receipt is probable- the charity is aware that probate hag been granted. c. The amount Is measurable- in practice this could come from final estate accounts, cash received or correspondence from executorslsolicitors confirming an amount to be distributed. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met. then the legacy is a treated as a contingent asset and di5c105ed if material. For both governtnent grants and grants received from other sources, income is accounted for as the charity earns the right to consideration by its performance. whe￿ the grant is received In advance of performance its recognition is deferred and included in creditors. Where entitlement occurs before the grant is received, It Is accrued In debtors. Gifts in kind are recognised at reasonable estimates of their gross value to the charity or the amount actually alised. Gift In kind in Note 3 relates to free ad words provided by Google which has been predominantly used to promote health messaging around agthma management, Investment income includes dividends and interest but excludes realised and unrealised investment gains and losses. (c) Expenditure Expenditure Is classified by reference to specific activity categories, so that all direct costs relating to a specific activity have been aggregated. Expenditure on raising funds comprise the costs associated with attracting voluntary income, the costs of trading for fundraiging purposes and the costs directly attributable to managing AsLhma UK and British Lung Foundation Partnership's investments. The cosLs of these activities also include expenditure of an Indirect nature necessary to support them.

Annual Report 2020-21 55 Expenditure on charitable activities are costs incurred to meet the objectives of Asthma UK and British Lung Foundation Partnership. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Liabilities in respect of research grants, senior research fellowships and professorial chairs are recognised at the point at which the grarrt is awarded which is when the future commitment represents a constructive obligation. Where a grant may run for more than one year the entire obligation is recognised at the time of the initial award. although disbursement of the funds may be made in subsequent accounting periods. (d) Allocation of support costs Support costs, which Include generxl functions such as general management, payroll administration, budgeting and accounting, information technology, human resource5 and finance are separately analysed and then allocated across the categories of charitable expenditure, governance costs and the cosLs of generating funds. Governance cosLs relate to general running of the charity and Include audit fees, legal advice for trusLees. costs associated with constitutional and statutory requirements and costs associated with the strategic management of the charity. The basis of allocation of sUPPOrt costs are reviewed regulady and al-e explained in detail in note 7(b}. The basis of the cost allocation has been explained in the notes to the accounts. (e) Pension costs AsLhma UK and British Lung Foundation Partnership operates two defined contribution pension schemes for its employees depending on historic￿ contractual arrangements. Contributions to the scheme are charged to the Statement of Financial Activities when incurred. (f) Depreciation Depreciation is provided to write off the cost of fixed asgets over their estimated useful lives on a straight-line basis at the following rate5', Long leasehold property Leasehold improvements General office equipment and furniture Fixtures, fitting and furniture specific to buildings Computer hardware and software over 3 years Tangible fixed a55ets are stated at Cost le55 accumulated depreciation or any provision for impairment. Items under £2,000 are not capitalised. over 50 years over the duration of the lease over 5 years over the duration of the lease (g) Fund accounting The company maintains four types of fund5. General unresLricted funds are funds available for use at the discretion of the trustees In furtherance of the general charitable objectives. Designated unrestricted funds are monies set aside trustees from unrestricted funding for specific purposes. Restricted funds are funds subject to specific conditions itnposed by donors. The purpose and use of the designated and restricted funds are set out In the notes to the financial statements. At the year-end any fund deficits are maintained only when the Directors a￿ of the opinion that such deficits will be eliminated by future committed giving. Income and expenditure on these funds are shown as restricted in the SOFA and analysed into the main components In Note 17.

Annual Report 2020-21 56 Endowed funds are funds to be held permanently, Whe￿ a donor specifies only income arising from a donation can be used and the income may also be restricted towards a particular purpose although their constituent assets may change from time to time. (h) Operating leases Rentals under operating leases are charged on a straight-line basis over the term of the lease or until the next review date if earlier. (i) Taxation The charity is a registered charity and is exempt from taxation on its income and gains to the extent that they are applied to its charitable purposes. The charity'5 Subsidiaries (Asthma UK, Asthma Enterprises Limited, BLF Services Limited, and BLF Trading Limited) have not incurred a tax charge In the period due to its policy of paying its taxable profits to the charity under Gift Aid. Asthma UK and British Lung Foundation Partnership is registered for VAT and has partial exemption in respect of it5 trading activities. (j) Judgement5 and estimates In the application of the charity's accounting policies, which are described in note I, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimateg and underlying assumptions a￿ reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period In which the estimate Is revised If the revision affects only that period, or in the period of the revision and future periods If the revision affects the current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are lilcely to result in a material adjusLment to their carrying amounts in the next financial year. The principal accounting policies, as set out above, have all been applied consistently throughout the year and the preceding year. (k) Financial instruments Financial assets and financial liabilities are recognised when Asthma UK and British Lung Foundation Partnership becomes a party to the contractual provision5 of the instrument. All financial assets and liabilities a￿ initially measured at transaction price (including transaction costs). Asthma UK and British Lung Foundation Partnership only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instrumentg are initially recogniged at transaction value and subsequently measured at their settlement value. Trade and other debtors are ￿CogniSed at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provision£ are recogni5ed where Asthma UK and Brit15h Lung Foundation Partnership ha5 a preserrt obligation resulting from a past event that will probably ￿sUIt In the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are nomially recognised at their settlement amount after allowing (or any trade discounts due. Invegtments, are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertaking is held at cost less impairment. Financial assets comprise cash at bank and debtors, excluding prepayments, as set out in Note 13. Financial liabilities comprise all creditors a5 Set out in Notes 14 and IS. At the balance sheet date the Group held financial assets at fair value through Income or expenditure of £8,809k {2020.. £5,925k) and Financial liabilities at amortised cost of £12,553k12020.. £9,441kl.

Annual Report 2020-21 57 3. Income Groyp UNRESTRlCtED FUNDS £,￿0 Group Group REStRICTED ENDOVIMEI FUNDS FUNDS 2021 TOTAL FVNDS cooo 2020 Group FUNDS £'ooo Income from charitable activities- Income from donatlons and legacies Legacie5 Donations from individU￿S and corporates Donations frorn trusts Donations from community and events fundraising 1,974 1,835 123 677 3.172 4,005 1,074 487 5.146 5.873 3,251 5.237 1.073 722 33 340 215 555 13,935 186 4,949 8,953 33 10,469 Intome from tharitable attivities Gian-.s Amounts received under the government's Coronawirus lob Retention Scherne 202 30 202 37 67 Income from trading activitie5 Corporate income Income from gaming Sale of merchandise and health a¢Jvice resources 87 87 414 57 441 43 54 97 318 461 558 890 Income from investments Intome from investment portfolio Interest frorn (￿h depostts 280 341 195 63 5,146 280 9.926 343 198 11.557 Tot&1 inctsme 33 15,105 Further detail on government grants Is provided in Note 22. During 2019-20 the British Lung Foundation nierged with Asthma UK to form the Asthma UK and British Lung Foundation Partnership. On the SOFA, the value of fairvalue of net as5et5 received on combining with Asthma UK 15 Shown. The figures above represent Income frorn continuing operations.

Annual Report 2020-21 58 4. Trading activities of subsidiaries Asthma UK and &ritish Lung Foundation Partnership has four trading subsidiaries.. Asthma UK. Asthma Enterprises Limited, BLF Serdice5 Limited, and BLF Limited. Asthma UK is the shell company and charity retained alter the mer8er with A5thrna UK on I january 2020. BLF Limited 15 dormant. Asthma UK Asthma UK Is a reg15tered company limited by guarantee in England and Wales (Company number 24224011 and a charity reigstered with the Charity CoMmlSSlOn for England and Wales18023641. It Is a wholly owned subsidiary ofthe Agthma UK and British Lun8 Foundation Partnership. Asthrna UK has been retained as an active company and shell chanty following the rnerger as a precaution to ensure the charity Is able to receive any and all donations granted to it. Since the date ofthe mergerthis has not been required and there were no transactions after I january 2020. save for the retention of 12 of share capital and a corresponding amount owed to the subsidiary from its parent. The net asgets of Agthma UK, as at 31 December 2019, were donated to the Asthma UK and Bntigh Lung Foundation Partnership to facilitate the n)er2er. The transfer Is shown as an exceptiond Income line in the prior year Comparitives on the Staten)ent of Asthma Enterprises Limited Asthma Enterprises Limited, a subsidiary, Is registered in England and Wales (Company number 023553141 and its share capital is wholly owned by the charity and 19 consolidated In these accounts. The company Is responsible forthe generation of Income through variou5 commercial aitiyitses for the financial benefit ofthe charity. Summarised financial results for the year ending 30lune 2021 and the financial position at 30 lune 2021 dates for Asthma Enterprises Limited. were.. Operating results: 12 months to 9 months to 30 lune 21 30 September 20 Turnover Cost of sales Gr055 profit Administrative expenses Net profit for the year before Gift Aid donation to the charity Gift Aid donation to the charity {91 Net profit for the year The positive adminisiraiive expenses In 2020 relate to the reversal olprovisions no longer required. Balance sheet Current assets credito￿.. amounts falling due within one year 104 14) Net assets 100 100 Share capital £hareholderg' funds 100 100 100 100 Up until 31 December 2019 Asthma Enterprises Limited a wholly owned subsidiary of Asthma UK. On this dats Asthma UK merged with the Briiish Lung Foundation. forming Asthma UK and British Lung Foundation Partnership and Asthma Enterprises became a wholly owned subsidiary olthe merged entity. Any profits made by Asthma Enterprises Limited are paid by Gift Aid to the parent charity.

Annual Report 2020-21 59 BLF Services Limited BLF Service5 Limited. a subsidiary, is reg15tered in England and ￿￿eS (Company number 023410271 and its share capital Is wholly owned by the charity and 15 con501idated In these accounts. The company is regponsible for the generation of income through various commercial activities forthe financial benefit of the charity. Summar15ed financial result5 lorthe year endin8 30lune 2021 and the financial position a5 at 30 lune 2011 of BLF Servile5 Limited, were. Operating results.. 12 months to 12 mnths to 30 June 2021 30 lune 2010 £'ooo Turnover Cost of sale5 205 1471 1231 107 Gros9 profit Administratsve expenses Net profit for the year before Gift Aid donation to the charity Gift Aid donation to the charity 19} 98 1981 140 Net proflt for the year Balance sheet Current assets Creditory.. amounts falling due within one year 55 155) Net assets Share capital Shareholders. funds Any profits made by ELF Services Limited are paid by Gift Aid to the parent charity. 5. Research 2021 2020 £'ooo 824 64 cooo Awarded during the year Grants written back 4.360 (266) Total research gran¢5 rharged in the year 4.094 760 A full list of research Erants made during the year Is detailed in Note 21. 6. Expenditure 2021 £,￿0 2020 £'oty) This is stated after charging-. Depreciation Auditors remuneration 60 35 37 310 42 Operating lease Operating lease othe 210 18

Annual Report 2020-21 60 7a. Analysis of total resources expended GRANTS TO INSTITUTIONS ACTivmES UNDERTAKEN DIREaLY SUPPORT COSTS 2021 TOTAL 2020 TOTAL £'ooo £'wo £'ooo £'wo C05t of generating funds.. Fundra15ing costs Investment management fees 2,432 1,580 4,012 2.949 36 2,543 1.580 4,123 2.985 Charitable expenditure= Cosis of activities In furtherance of the charity's objects-. Research 4.360 247 4.988 2,520 3,768 11,276 Improving tare Advice and support 1,528 2,284 4,193 992 1,923 4,271 7,806 1,484 2,723 4,360 Total 4,360 6,736 4.303 15.399 10,791 7b. Allocation of support costs RNANCE GOVERNAIKE EXEcimvE HR FACILMES 2021 TOTAL 2020 TOTAL Cost of generating funds Regearch Improving care Advice and support 245 38 154 37 223 35 140 669 105 420 177 28 229 1,580 247 697 175 491 1,053 35 144 23 35 992 230 210 628 166 215 1.484 667 608 1,822 482 623 4,303 2,416 Support costs have been apportioned on the b￿lS of the direct Costs of each area ol expenditure (excluding resear(h grants awarded) ag a proportion of total direct CQgts. Thig was reviewed againgt previous methodologies and it was determined that the result would be maienally the same reEardless of the methodology chosen. Governance costs Incurred In 2021 wetr £131k 12020.. £112kl. Governance costs include staff time spent on thi5 activity. internal and external audit fees, the charity's AGM and direct costs Incurred by the board and It's sub-committees which are allocated per distinct budgetary activity.

Annual Report 2020-21 61 8. Employees 2021 £'ooo 2020 S,559 573 4,520 428 Natsonal Insurance contributions Employer's pension contributions Redundancy costs Temporary staff 257 238 47 27 514 6,950 5.526 2021 2020 Number of Staff (head count based on number of Staff employed)= Charitable services 84 43 25 73 Fundraising Ceniral 5erwices 38 22 Chief Executive Office 158 Employer pension contribution5 have been Jlocated to the fund to which the salary of the respective staff mernber has been charged. 9. Remuneration of the charity's key management personnel The key management personnel of the charity Include the Trustees. Chief Executive. Chief Operating Officer. Director of Research & Innovation, Director of Fundraising & Engagement, Director ol Serviies and Director of External Affair5. 2021 £'ooo 2020 Total remuneration of key management personnel 707 800 The number of employees receiving remuneration of over £60,000 forthe year was as follow £60.001-£70,000 £70.001-£80,000 £80.001-190,000 £90.001-1100.000 £ioo,001-1110,000 £I10.001-(120.000 £120,001-£130,000 £130,001-£140.000 £140.001-1150,000 The pension lost5 in respect ofthese ernployee5 Included In the above. amounted to £48k The salary of the Chief Executive Officer wa5 £75,833. The Chief Executive Officer was not employed for the whole of the rinancial year. l O. Trustees, expenses None of the trustees received any remuneration during the year. Trustees expenses represent virtual training costs totaling £4812019120.. £3391. incurred by one trustee12019120.. tyvo tru5tee51.

Annual Report 2020-21 62 I l . Fixed assets CONSOUDATED LONG OFFICE comP￿ER TOTAL LEASEHOLD FURNITURE EQUIPME￿[ PROPERTY CHARITY TOTAL LONG OFFICE comP￿ER LEASEHOLD FURNITURE EQUIPMENT PROPERTY EQUIPMENT EQUIPMENT É'ooo £'NJo £Tho £wio £I￿J0 Cost At I july 2020 25 30 86 25 30 86 Additions 86 86 Disposals At 30lune 2021 25 1,457 25 1,457 Depreciation At I july 2020 Char£e forthe period Disposals 455 34 25 30 26 510 455 34 25 30 26 sio 60 60 At 30lune 2021 489 25 56 570 489 25 56 570 Net book value At 30 lune 2021 827 60 887 827 60 887 At 30lune 2020 861 861 861 Capilal commitments tontracted but not provided for In the financial siatements comprise 1418.000 lor the development ora new Customer Relationship Manager system.

Annual Report 2020-21 63 12. Investments: consolidated 2021 TOTAL INYESTMEII 2020 TOTAL INVESTMENTS Market value as at I july 2020 15,497 5,599 Investments aquired on mergerwith Asthma UK Acquisillons Sales proceed5 Investment management fee5 Movement in cash deposits Investment gainlllossl 10,957 1,004 11,0221 1361 64 2.324 (1,5841 (6781 2.141 Market value as at 30 June 2021 17.589 15,497 Investments.. Charity only 2021 TOTAL £'No I￿0 TOTAL UK common invegtment funds Cash 16.605 984 14,330 17,589 15,497 Historical cost as at 30 lune 2021 12,796 12,895 The charity has lour wholly owned 5ubsidiaries,- Asthma Enterprises Limited. BLF Service5 Limited. Asthma UK and BLF Limited. The first two subsidiaries gupport the chatity by carrying out ancilliary trading activitie5, Asthma UK has had no activity during the year and the latier Is dormant. The results ofthe two active trading subsidiaries are get oui In Note 4. 13. Debtors CONSOUDATED 2021 2020 CHARttY 2020 2021 £'ooo Trade debtors Amounts due from BLF Serwices Limited Income tax recoverable- Gift Aid 88 62 88 39 32 100 10 239 239 109 664 970 100 Oiher debtors 76 76 Prepayments Accrued income 708 665 664 974 708 674 2.070 2.085 1.629 At 30lune 2021. Legacies which had been notified bui not recognised as Incoming ￿sOUrCeS In the statewent of financial activities had an estimated value of 14.2 million12019120-. 13.5 million), which had not been accrued.

Annual Report 2020-21 64 14. Creditors, amounts falling due within one year CONSOUDATED 2021 2020 CHAMTY 2020 £'Th)o 2021 eooo Trade credito Tax & Social Security Research grants accrual Other creditors Other accrua15 995 157 995 157 5,665 402 1,537 5.263 5,665 403 1,532 107 274 5,263 94 537 535 Deferred Income Provisions 274 238 238 6.777 9.133 6.750 Research grants represent the value of grants made up to the balance sheet date that are payable within one year. Deferred Income CO￿P￿lse$ £70k ofiottery Incorne for subscriptioDs collected where the draw hds not yet tdken pldce. dDd 138k of sponsorship income from fundraising events. such as marathons. where the event has not yet taken place. Provisions comprise of £144k forthe Breathe Easy transition proiect12020.. £144kl and provision for property dilapidations £129k 12020.. 142kl. 15. Creditors, amounts falling due after one year CONSOUDATED 2021 2020 CHARITY 2020 £,￿0 2021 £'ooo Research grants Other creditors 3,314 88 2.546 3,314 88 2,546 3.402 2,664 3.402 2.664 16. Grants 2021 TOTAL eooo 2020 TOTAL Balance as at I july 2020 Grani commitments taken on from Asthma UK on meoer Grant5 awarded during the year Grant5 written back 7.809 4,778 4,526 824 4.360 12661 12.924) 1641 12,2551 Payments during the year Balance as at 30 lune 2021 8,979 7,809 Research iomrnitment5 Award5 falling due within one year Award5 lalling due after more than one year 5,665 3,314 5,263 2,546 8,979 7,809

Annual Report 2020-21 65 17. Statement of Funds NOTES I IULY 2020 INCOME EXPENDifiiRE REALLOCATION 30JiINE 2021 FUND BALANCE INCLUDING INCLUDING BEtWEEN FIJND BIF INVE￿mE1￿ INVESTMENT FUNDS BALANCE GAINS LOSSES IF £'ooo £'ooo £'ooo Endowment fund5 Wells Evetts 84 767 146 2.001 2,998 29 299 1.066 Glaxo Endowment fund Total endowment 259 638 2,260 3,636 Restricted funds GSK-BLF Chair 14751 922 67 14231 430 648 Mesothelioma research Victor Dahdelah charitable fund Asthma UK Centre for Applied Research IPF Networks of Excellence Other research funds 11,4071 14661 Idl 270 689 13351 12271 141 624 Tasl<force for Lung Health Garfield Weston Long Covid fund NHS En2land Lon2-Covid (und Fidelity Foundation Infrastructure funds Ph05p Covid fund Breathe Easy funds Other restncted funds 135 367 150 150 300 1601 1951 215 In 300 58 707 1,732 52 752 4,765 1671 43 828 (3,147) (169) Restricted to Agthma 5.907 6,442 {3,537) {4.717) 4,095 Total restricted 7.639 11.207 16,684) (4.8861 7.276 Designated funds Fixed a55et5 26 887 Research fund- COVID-19 Strategy. brand, and Investment fund Total designated 500 15001 1.000 1,000 1.000 1,887 1,361 (474) General fund Unrestricted Total general funds 1,552 1.552 5,401 5,401 18,2411 (8.241) 3,886 3.886 2,598 2.598 Total unrestricted 2,913 5,401 {8,715) 4,886 4,485 Total funds 13.550 17.246 (15.399) 15,397

Annual Report 2020-21 66 17. Statement of Funds (continued) lal Beryl Evetts Fund capital Is Invested in perpetuity and income restricted for use for research purposes. Ibl The Glaxo Endowment Fund and the restricted Glaxo Chair fund relate io a pemianent endowment. the Incon)e from which Is used to a research Chair p05t. The balance on the restrictsd fund Is currently In deficit but will be replenished with the income received from the investment fund in which the endowynent is held. Going foward. the trustees plan to implement a policy oftotal reium which will Euarantee a minimum of £80k Income will be paid Into the resincied fuDd per annum. Icl Several donor5, including an insurance company, have restricted their donations to fund various research prDjects into mesothelioma. Idl Funding from the Victor Dahdaleh Chtntable FoLJndation is used to fund rEsearch Into Mesoihelioma and has bEen used to launch the rnesotheliorna research rnetwo￿. lel Research projects funds atE used to meet the direct Cogts of the Charitys medical research projects. 10 The Fidelity Foundation has provided lunding towards the building of a new Customer Relationship M3na£er systeml1270,0001 and to fund various Strategic projects1£30.0001 which will be completed during 2022. Igl Other restricted funds consist largely of project-related activity funds. or condibon-specific funds which may be spent relating only to a tondition of set of conditions within the portfolio of tonditions the charity supports. Ihl The restricted fund for asthma was created upon the meTrer of A5thrna UK and the British Lung Foundation. consisting ofthe net agsets of Agthma UK as at 31 December 2019. Income raised vnderthe Asthma UK brand Is deemed regtricted to agthma and Is added io this fund. Direct expenditure dnd the costs of raising money ttstricted to asthma are charged directly to the fund. Under the legal agreement forthe merger, It was agreed that 45°A of all indirect COSts IncurrEd forthe benefit of all lung conditions would be transferred Into unrestricted fLJnds. These are principally the generd running costs ofthe organisation, and any charitable spend whith benefits all IunE tonditions IncludinE asthma. lil The fixed asset fund relate5 to the charitys office in G05well Road, London. The property is held on a long-term1974 year unexpired) lease, Ill In 2019120. a new designated fund wts created to contribute to the ttsearch effort lor COVID-19. with a total value of £500.000 with 1400.000 taken from the fund for asLhma, and 1100,000 taken from general unrestricted funds. Dunng the 2020121 financial year, this fund used to award research grants. Ikl In 2020121. a new designated lund was created to lund strategic projects Including the developn)ent of a new brand and the building of a new Customer Relationship Management System. These projects are expected to be completed in 2022. Group Group DESIGNATED UNR￿RICTED FUNDS FUNDS Group RESTRI￿ED FUNDS Group ENDOWMEP FUNDS 2020 TOTAL FUNDS £'L¥JO É'ooo £Tho £'(KJo Fund balances as at 30 June 2020 are represented by.. Tangible fixed assets Investments Current assets 887 887 1,000 3.073 3.099 13.4861 1881 2,598 9,881 6.374 15,6651 3,626 17,590 9,473 13.4021 15,397 Tot&1 funds 1.887 7,276 3.636 18. Taxation Asthma UK and Bntish Lung Foun¢Jation Partnership is a chanty wrthin the meaning of Part l of the Chanties Act 2011 and as such Ig a charity Within the n)eanin£ of Paragraph I Schedule 6 to the Finance Act 2010. Accordingly. the Charity Is e%empt from taxation In respect of Income or capital gains received within categories covered by sectlOn5 478-488 of the Corporation Tax Act 2010 ICTA 20101 Iformerly enacted In Section 505 ofthe Income and Corporation Taxes Act 1988 IICTAII or £ection 256 ofthe Taxation of CharEeable Gains Act 1992 10 the extent that such Income or gains are applied to exclusively charitable purposes.

Annual Report 2020-21 67 19. Lease commitments At 30 lune 2021 Asthma UK and British Lung Foundation Partnership had arnnu￿ commitments under non cancellable operating leases as set out below-. 2021 LAND AND BUILDINGS £000 306 354 2021 Other 2020 LAND AND BUILDINGS £000 398 2020 Otl Operating leases which expire: Vlithin one year In the second to fifth year5 inclusive Over five years £0 440 660 838 10 20. Related party transactions The Trustees in office during the year are listed on page 38. Asthrna UK and Bnl15h Lung Foundalion Partnership Is a reElStered chanty and company limited by guarantee and does have share capital. The trustees have no financial Interest In the charity's result5 or assets and received no remunerabon for acbng in that capacity. During the financial year, the charity charged BLF Service5 Ltd £8k12019120-. £8kl for provision of staff and £55k12019120.- £25kl for expenses incurred on behalf ofthe subsidiary. Addibonally. the charity collectsd £104k12019120-. £49kl of Income on behalf of BLF Serviceg Lid. At 30th lune 2021, BLF Services Ltd owed the charity 18k12019120. £32kl. During the financial year, the charity charged Asthma Enterpnse5 Ltd £lk12019120. Ilk) for expense5 incurred on behalf of the At 30th lune 2021, Asthma Enterprises Ltd owed the charity £2k12019120.. 10.4kl. There are no other disclosable related partytransactions otherthan those disc105ed in Note 10.

Annual Report 2020-21 68 21. Grants awarded during the year During the yearthe Trustees awarded the following grants. Grant Awayded to 3moun¢ Grant duratson Grant descriptSon £OOO's 250 Prof Richard Body l year COVID.19 Nation￿ Diagnostic Research and Ev￿￿ation Platform ICONDORI A Scott, University of Birrningharn IMa50nlt PhD Student) 98 3 years Evaluating the impact of e-cigarettes on the innate immune response in chronic obstructive pulmonary disease 250 Dr Ben Goldacre 1.5 years Urgent research and surveillance on COVID-19 usin2 the new OpenSAFELY secure platform across 55 mllion patient5 full linked primary care record5. 40 john Blaikley, Uni of Manchester 12020 Full Pulmol Prof Lin£ Ho, University of Oxford 3 years The effect of circadian disruptionlsleep on IPF incidence and prognos15 12Q 2.5 year5 Defining the immune drivers of fibrotic pulmonary sarcoid0515 125 Dr R Kurukulaaratchy. University of Southampto Innovate UK, Dr Clare Murray 3 yearg Innovate UK, Dr Thomas Brow Dr Robert Rintoul. Papworth Hospital A Byrne. Impenal College London S Marciniak, University Cambridge D Murphy. University of Glasgow D Fennell. University of Leicester Circulating miRNAs as a diagnostic test for asthma and to Ideniify asthma severity nsk Novel diagnostic approaches to asthma In chIld￿n Diagnosing and phEnotyping asThm3 using thE InflarnmacheCkTM Breath- PrinT- The DETECT study, 3 years 140 2 years 532 5 years MesoBank and Research Fellowslpost docs 3 years Itaconate as a novel therapeutic strategy for IPF Harnessing single cell RNA sequencing technology to improve early diagnosis and prognostication Differential Expression of By5tanderTranscriptomes for Mesothelioma Diagnos1s' DEBiT-Meso En8¥ing Clonal Neoanti8en-Specific T-cell reactivity in Me50thelioma for Per50nalized Immunotherapy rhe Role of Gaqll I In Controlling the Extracellular Matrix and Cellular Crosstalk in Pulmonary Fibrosis Remote monitoriDg to predict and prevent asthma attatks In preschool l year 305 2 years 40 l year 40 A Goodwin, University of Nottingham 3 year5 Prof Se1￿ Saglani 2 years 578 Dr Gerrard ftaferty 2 years The use of Symmetric Projection Attractor Reconstruction ISPARI as a novel asse55menttool in asthma Prof Rafael Calvo 2 years Impmvin£ asthma care throJ£h pe￿OrnaliSed risk assessment and support from a conversational agent A Randomised Phase111111 trial of maintenance Niraparib versus active symptom control In patients with chemosensitive Nalignant Mesothelioma Study acronym.. NERO INirapirib Efficacy in unResectable Mesothelioma) Core Fundin8 Support for. Nesotheliorna Stratified Therapy IMISTI". A straified multi-arm ph￿e Ila clinical trial to enable accelerated evaluation of targeted therapies for ￿lapSed malignant mesothelioma. The mutational landgcape of non-malignant pleura following agbestos exposure 1.5 year5 Understanding the local immune response In malignant pleurJ mesothelioma 15 years Technology Enhanced Inte8rAted asthma care. TEAM-care Investigation of a digital health solution providing ￿al-time Inhalertechnique guidance. Pro( Dean Fennell 4 year5 900 ProfAnne Thom l year Dr Luke Wylie 4 years Dr Lucy lackson-lone5 Dr In8rid Wolfe 500 Dr Elizabeth Crawford 2 yeai-s 58 4,360 Other Total grants awarded

Annual Report 2020-21 69 22. Grants received In accotfjance with agreements entered Into with grantors. the charity aCkno￿edgeS the receipt ofthe following grants Included within the total in the statement of financial activities. FurKI* Incamlng RÈ$ouYtes Puryosè of fundlhg resources 2021 2021 NHS England 150 Product development to support people affected by Long COVID. funded by NHS England For Active Steps. supporting people wih lung conditions to increase physical activity Sport England University of Leicester 202 The charity a150 acknowledges the receipt o(the lollowinE Eifts received and disdosed In Note 3a.- Iniome from donations and Funder Incoming Pun105e of funding 2021 Nesta Nabonal Lottery Community Fund. supported by the Department for CulLure Media and Sport Garfield Weston Foundation 40 loo Delivery of Integrated Breathe Easy peer support groLJPS Support for our helplines 150 Product development to support people affected by Long COVID Research Into Idiopathic Pulmonary Fibrosis Developing our regiond Clean Air Campaign Network Strategy development and CRM transformation Medical research Into Pulmonary Fibrosis Medical research into Sarcoisosis Janus Henderson Foundation Clean Air Fund Fidelity UK Foundttion Pulmonary Fibmsis Trust SILA The Sarcoidosis Charity 300 20 60

Annual Report 2020-21 70 23. SOFA split for prior year (2020) between unrestricted, restricted and endowment Group Group Notss UNREsTRl￿ED RE￿RICTED ENDOWMENT FUNDS FVNDS FUNDS £'ooo £'ooo £'ooo 2020 TOTAL FUNDS Income from: Donations and legacies Charitable activities Othertrading activities Investments 21bl. 3 5,078 4.679 30 9.787 1,420 108 1.572 198 90 Total income before combination 5,320 6.207 30 Fair value of net agsets received on combining with Asthma UK 31bl 7.463 1.069 ,532 Total income 5.320 13.670 1.099 20.089 Expenditure on: Expenditure on raising donatlOn5 and legacie5 Investment management costs Total expenditure on raising funds 2,985 2,985 2,985 2.985 Net intomlngresour￿S awailable for charitable applI￿tiOn 2.335 13.670 1.099 17.104 Charitable activities: Research 851 1,612 1,923 4.270 Improving care Advice and SLJPPOrt 372 3,662 608 Total expenditure on charitable activities 5,975 7,805 Total Expenditure 8,960 10,790 Net incomellexpenditutEI before investment gains 13,6391 1,099 9.299 Net gains on Investments Net incomellexpenditurel Transfers between funds 13751 724 (1.0691 8,230 14.3491 4,272 1771 14,2721 7,583 Net movement in funds 724 8,230 Reconclllation of funds.. Fund balances brought forward at I july 2019 Fund balances carried forward at 30 lune 2020 2,990 2.913 56 2,274 2.998 5.320 13.550 17 7,639

Annual Report 2020-21 71 23. Statement of funds for prior year (continued) Restated Acquired on Inwne Expenditure Be￿10ratIon l Oetober 2019 31 December Ihduding Including bEtviee Fund Balance Bff 2019 on merger investment investment funds ith Asthma UK gain5 losse5 £woo Restated 30 lune 1010 Fund Balance tJP' £'ooo £Tho £'ooo Endowment Funds Wells 93 814 161 pi 1781 84 Eveits 30 766 Glaxo EndowmeDt fund 2,274 2.274 2,002 2.998 Total endowment 1.069 30 103 Restricted Funds Research Peggy Wells Memorial Beryl Evetts Margaret Mitchell Memori Research into Asthma Burrow Hill Training Fund GSK-BLF Chair 121 1591 59 15571 52 92 12821 38 14751 998 Mesoihelioma trseaFch 908 Mesothelioma Research- Victor Dahdaleh Chaniable Foundaiion Mick Knighton Megothelioma Research Fund Regearch funds Tuberculosis Fund 660 16601 69 26 1951 412 359 (367) 15 {1.186) 905

Annual Report 2020-21 72 .continued Restated A￿uired on Inwne EXpendI￿re RdIO￿tIon l Oetober 2019 31 Detembtr Indudlhg Intludlhg bÈtweeh Fund Balance 2019 on merzer invesfynent investment nds ith ￿thrna UK gains losse5 £￿00 Restated 30 luhe 2020 Fund Balance ¢yP' £'ooo Other Adviceline Including the Sarah Leonard & Polly Cambell Funds Vlhatsapp for Youn8 adults BUPA HelpliThe- COVID 19 Sport England- children with asthma Dept of Health Asthma Attack Reduction Programme RF Eumpean funding.. myAirCoach Activities For All Clean Air for Children Monitoring Project Breathe Easy Fund5 Breathing Green Air- Roche Clean Air Champions Clean Air Parenis Netkn'ork Covid Response East Midlands Respiratory Programme Helping You Help Yourself Helpline- IPF nurse advisor NESTA 59 59 42 32 121 30 30 20 1201 53 58 45 70 70 98 45 26 54 182 Other Singing for Lung health Sport England- Active Steps Taskforce for Lung He￿th Wale5 ResL Bay Fund 66 243 52 75 337 1791 1391 1731 13751 230 23 174 136 423 123 7,325 7,464 (901) 827 5,907 7,639 Restricted to Asthma 2,854 6,207 (4,272) {4,2721 Total restricted 56 12,087) Designated Funds Fixed a55ets 896 1,000 1351 13581 861 Investment fund Research fund- COVID-19 Total designated 16421 500 {1421 500 1,896 {393) General fund Unrestricted 1,094 1,094 5,320 5,320 19,2761 {9,276) 4.414 4,414 1.552 1,552 Total General Funds Total unrestricted 2.990 5.320 9.670 4.272 2,913 Total Funds 5,320 8.533 11.557 11.860 13,550 24. Post balance sheet events There are no post balance sheet events,

Annual Report 2020-21 73 Company information Company number 01863614 (England and Wales) 005851 F (Isle of Manl Charity number 326730 (England and ￿￿e$} SC038415 (Scotland) 1177 (Isle of Manl Bankers National Westmin5Ler Bank plc Tavistock House Tavistocl< Square London WCIH 9IA HSBC plc Onslow Square Branch 15ydney Place London SW7 3NW Presidents Profe550r Sir Michael Marmot (British Lung Foundation) The RT Hon Sirlohn Major, KG, CH (Asthma UK) Bank of Scotland Pentland House 8 Lochside Avenue Edinburgh EH12 901 Auditors Patron HRH The Duchess of Gloucester, GCVO (Asthma UK) Trustees Baroness Tessa BlacksLone- Chair Professor lan Hall Vice Chair john Graham- Chair of the Finance & Audit Committee lim Bowes - Chair of the Nominations & Remuneration Committee Emily Bushby Ralph Bernard CBE (until December 2020) Dr Isabel Divanna Professor Edwin Chilvers Niren Patel Katherine Morgan Professor lan Sabroe lean Francois Bessiron (until February 2021) Caroline Cartellieri Karlsen (from February 20211 Michael O'connor (from February 20211 Crowe U.K. LLP 55 Ludgate Hill London EC4M 7IW Solicitors Bates Wells LLP 10 Queen Street Place London EC4R IBE Investment managers Newton InvesLment Management Limited BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA Key senior management Sarah Woolnough - Chief Executive (from December 2020) Kay Boycott- Chief Executive (until November 20201 Ben Clarkson - Chief Operating Officer Dr Alison Cook- D1￿ctOr of Extemal Affairs james Culling- Oirector of Fundraising and Engagement Mike mCKe￿￿tt- Director of Services Dr Sarnantha Walker- Director of Research and Innovation Cazenove Capital I, London Wall Place London EC2Y SAU Property advisors Cluttons LLP Portman House Portman Street London WIH 6DU Registered office address 18 Mansell Street London El 8AA www.asthma.org.uk www.blf.org.uk

asthma UK We're working to change the lives of everyone affected by asthma, bronchiectasis, COPD, ILD, mesothelioma• pulmonary fibrosis and all other lung conditions. Our support help5 people who struggle to breathe manage their lung condition and live well. Our world-leading research finds new ways to prevent. treat and cure lung disease. Our campaigns help make vital, lasting change. Asthma UK British Lung Foundation [e-mail] blf.org.uk [e-mail] asthma.org.uk @ Asthma UK and the 8rit15h Lung Foundation P3rtDer5hip 2021.