Report of the statutory auditor

with financial statements as of 31 December 2015 of

Fédération Internationale de Volleyball (FIVB), Lausanne

EYBuilding a betterworking world

Ernst & Young Ltd Phone +41 58 286 51 11Avenue de la Gare 39aP.O. Box

Fax +41www.ey.com/ch

58 286 51 01

CH-1002 Lausanne

To the Board of Administration of

Fédération Internationale de Volleyball (FIVB), Lausanne

Lausanne, 7 April 2016th2/40.3

Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the accompanying financial statements of FédérationInternationale de Volleyball (FIVB), which comprise the balance sheet, income statement, cash flowstatement and notes, for the year ended 31 December 2015.

Board of Administration responsibilityThe Board of Administration is responsible for the preparation of the financial statements in accordancewith the requirements of Swiss law and the company's articles of incorporation. This responsibilityincludes designing, implementing and maintaining an internal control system relevant to the preparationof financial statements that are free from material misstatement, whether due to fraud or error. TheBoard of Administration is further responsible for selecting and applying appropriate accounting policiesand making accounting estimates that are reasonable in the circumstances.

Auditor's responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers the internal control system relevant to theentity's preparation of the financial statements in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control system. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of accounting estimates made, as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements for the year ended 31 December 2015 comply with Swiss lawand the company's articles of incorporation.

EYBuilding a betterworking world 2

Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act(AOA) and independence (article 69b Civil Code (CC) in connection with article 728 Code of Obligations(CO)) and that there are no circumstances incompatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirmthat an internal control system exists, which has been designed for the preparation of financialstatements according to the instructions of the Board of Administration.

We recommend that the financial statements submitted to you be approved.

Ernst You g Ltd

V

Mark HawkinsLicensed audit expert(Auditor in charge)

Michael AckermannLicensed audit expert

Enclosure■ Financial statements (balance sheet, income statement, cash flow statement and notes)

INTERNATIONAL VOLLEYBALL FEDERATIONLausanne

BALANCE SHEET

AS OF DECEMBER 31 2015 2014(in CHF) (in CHF)

ASSETS

CURRENT ASSETS

Cash and equivalents 16786789 12747795

Liquidity 6591'670 10734202

Portfolio cash 6043110 861'424

Short Term Investment 4'955009 1252'368

Trade receivables 13724'905 6128767

Trade receivables - third parties 11'333343 6036983

Trade receivables - related parties 3676470 1'658'396

Provision for doubtful debtors (1'483908) (1'566412)

Other current receivables 1'068707 734'924

Other Debtors 481791 0

Witholding tax 270'377 216901

VAT 316339 516023

Accrued income and prepaid expenses 1471'632 2770705

Prepaid expenses 1'471'632 2'373705

TOTAL CURRENT ASSETS 32'651'833 22'082'591

CAPITAL ASSETS

Financial assets 82740798 98'504168

Securities (Global Custody) 82'540798 96504'168

Tangible fixed assets 19242721 18436733

Operating fixed assets 441'679 276094

Property 16801'043 18'158639

Intangible fixed assets 771713 93750

IT Licence 653162 93750

Promotional Devices 116151 0

TOTAL CAPITAL ASSETS 102'554'832 117'034•651

TOTAL ASSETS 135'206'665 139'117'242

LIABILITIES

CURRENT LIABILITIES

Trade creditors 8'409'363 9245753

Trade creditors - third parties 3926315 4026002

Trade creditors - related parties 4'481'048 6217'551

Other creditors 7'332761 8'177703

Other creditors 7'332'761 8177'003

Deferred income and accrued expenses 8'304793 5756'042

Deferred income 6304393 5756042

TOTAL CURRENT LIABILITIES 24'046'517 23'178'598

NON-CURRENT LIABILITIES

Provisions and similar items required by law 889'387 903'539

Provision for litigations 165'848 180'000Provision general 723539 723539

TOTAL NON-CURRENT LIABILITIES 889'387 903'539

EQUITY

Capital at the beginning of the period 115035105 119'435'676

Final result for the period (4'764'345) (4'400'571)

TOTAL EQUITY 110'270'761 115'035'105

TOTAL LIABILITIES 135'206'665 139'117'242

Page 1

INTERNATIONAL VOLLEYBALL FEDERATION Page 2Lausanne

PROFIT AND LOSS

FOR THE PERIOD JANUARY 1ST TO DECEMBER 31TH

nom:

2015(in CHF(

2014(in CHF)

REVENUES

Net proceeds from sales

Yearly subscriptions, broadcast and various rights

Transfer fees

IOC funds

60'946'593

59'86T582

56'846559

3'021'024

0

59'289'247

53781'869

50'381'714

2909155

4735029IOC funds o 4235029

Other income 1'079'010 1772749Other income 1'079010 1 772 349

EXPENDITURE (43'994'368) (50'854'393)International competitions a (31'414213) (31'303226)FIVE Programs s (2'046579) (9896419)Confederations allocations e (3759000) (3'759000)Development r (4'498'229) (4'112240)Transfer refunds 8 (2288147) (1'792'508)

OPERATING RESULT 16'952'224 8'434'854

Salaries and social charges e (7'979684) (6129468)Administrative costs )0 (9057040) (14'200'672)Other operating costs 1i (3'153'978) (1'632700)Depreciation and amortization 12 (1'481'601) (1'316101)

OPERATIONAL RESULT (4'720'080) (16'846'086)

Financial result, net Is (159705) 12369518Extraordinary result, net a 115440 84'997

FINAL RESULT OF THE PERIOD (4'764'345) (4'400'571)

INTERNATIONAL VOLLEYBALL FEDERATION Page 1

Lausanne

CASH FLOW STATEMENT

AS OF DECEMBER 31 2015(in CHF)

2014(in CHF)

NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating Cash flow (V858'217) (2'641'319)

Net Result (4'764'345) (4'400'571)

Depreciation 1'481'601 1'318'101

Net financial result 177'560 (44'777)

Others non-cash items (14'152) 0

Unrealized gains/losses of financial assets 1'261'119 485'928

Working capital variation (5'962'528) 4'739'061

Trade receivables (7'395'938) 14'996

Other current receivables (333'583) (246'716)

Accrued income and prepaid expenses 899'073 3'940'124

Trade creditors (836'190) 4'011'189

Other creditors (844'242) 1'579'592

Deferred income and accrued expenses 2'548'351 (4'560'124)

NET CASH PROVIDED BY OPERATING ACTIVITIES (7'820'745) 2'097'742

NET CASH PROVIDED BY INVESTING ACTIVITIES

Financial assets 14'702'252 897'509

Securities (Global Custody) 14'702'252 897'509

Tangible fixed assets (2V20'068) (1 245205)

Operating fixed assets (370'000) (258'640)

Property (1'650'068) (986'565)

Intangible fixed assets (945'084) (125'000)

IT Licence (787'549) (125'000)

Promotional Devices (157'535) 0

NET CASH PROVIDED BY INVESTING ACTIVITIES 11'737'100 (472'696)

NET CASH USED IN FINANCING ACTIVITIES

NET CASH USED IN FINANCING ACTIVITIES 0 0

CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 12'847'995 11'178'172

Effect of exchange rate fluctuations (177'560) 44777

Net decrease/increase in cash and equivalents 3'916'355 1'625'046

CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 16'586'789 12'847'995

Notes to the financial statements 31.12.2015

1) General information on the federation

Goal of the federation

The FIVB support the development and the growth of the volleyball worldwide in all

its forms and promote the creation of national federations; the FIVB ensure to

promote, coordinate, spread, regulate, lead and govern volleyball around the world.

Head office

The FIVB has its headquarters located in Lausanne, Switzerland.

Legal form

The FIVB is an association governed by the articles 60 and following of the Swiss

Civil Code.

Public interestThorugh its role of helping and promoting the volleyball worldwide, the FIVB is

recognized as public interest by the Swiss authorities and is a non-governmental

entity.

Connection to the IOCFor several years the FIVB is recognized by the IOC as the sport federation for

Volleyball and Beach Volleyball.

Confderation and national federation connection

As of the 31st December 2015, 221 (2014: 220) national federations are connected tothe FIVB. The national federations are distributed among the following

confederations:

AVC (Asia)CAVB (Africa)

CEV (Europe)

CSV (South America)NORCECA (Central and North America)

2) Financial organisation of the federation

The President

Dr. Ary Da Silva Graça Filho

The Treasurer

Dr. Amr M. Elwani

The Finance Director

Mr. Yves Eymann

The Finance team is made up of 6 staff members

Board of Administration

Dr. Ary Da Silva Graça Filho

Mr. Jizhong Wei

Sr. Cristobal Marte Hoffiz

Mr. André Meyer

Dr. Amr M. Elwani

Dr. Saleh Ahmad Bin Nasser

Dr. Rafael Llordea Currea

Mrs. Rita Subowo

Mr. Habu Ahmed Gumel

Mr. Aleksandar Boricic

Mr. Saul Castro Verdugo

Mrs. Marta Eugenia Centeno O. De Sajche

Mr. Essa Hamza Ahmad Al Failakawi

Sr. Roberto Wilfrido Escobar Gonzalez

Mr. Carlo Magri

Mr. Stay Jacobi

/-/113

President

Honorary Life President

1st Executive Vice-President

2^d Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Vice-President

Executive Co-Opted Member

Executive Co-Opted Member

Mr. Kenji Kimura

Mr. Theofanis Tsiokris

Mr. Vicente Henrique Goncalves De Araujo

Mr. Stanislav Shevchenko

Mr. Miroslaw Przedpelski

Mr. Shanrit Wongprasert

Mr. Mushtaque Mohammed

Cdor. Julio Perez Alfaro

Mr. Douglas P. Beal

Mr. Hugh Wong

Mr. Majoré Louis Timba

Mr. Yi Cai

Mr. Renato Arena

Mr. Issiaka Sawadogo

Mr. Agustin Martin Santos

Mr. Philip Berben

Dr. Han Too Eom

Mr. Craig Carracher

Mr. Marco Tullio Teixeira

Finance Commission

Mr. André Meyer

Dr. Amr M. Elwani

Mr. Essa Hamza Ahmad Al Failakawi

Sr. Cristobal Marte Hoffiz

Mr. Habu Ahmed Gumel

Mr. Majoré Louis Timba

Mr. Jan Zaremba

FI

Executive Co-Opted Member

Honorary Executive Vice-President

Executive Board Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

Board of Administration Member

President

Treasurer

Secretary

Member

Member

Member

Member

F/Y'3

Mr. Alberto Arreola Sanchez Member

Mr. Minoru Ihara Member

Mr. Robert Urbanek Member

Mr. Achilleas Mavromatis Member

The Controller

Mr. Olivier Zysset

The Internal Auditors

Mrs. Eva Kheil

Mr. Nasiwu Zaid Sadik

The External Auditors

Ernst & Young SA

3) Financial statements

--......_

The financial statements of the FIVB consist of the following elements:• The profit and loss

• The balance sheet• The cash-flow• The notes to the financial statements

4) Basis of preparation of the financial statements

The financial statements are presented in accordance with the Swiss Code ofObligations. Title 32 of the Swiss Code of Obligations deals with the commercialaccounting and financial reporting.

The financial statements are presented in accordance with the New Law onAccounting and Financial Reporting. Presentation adjustments were made to 2014figures for comparison purpose.

F/1/3

The accounting of the FIVB respects the principle of regularity. This principlecontains in particular:a) The complete, truthful and systematic recording of transactions and

circumstancesb) Documentary proof for individual accounting proceduresc) Clarity

d) Fitness for purpose given the form and size of the undertakinge) Verifiability.

The accounts of the FIVB reflect the economic situation of the company in such amanner that third parties can make a reliable assessment of the same.

Expenditure and income are entered separately depending on the date and nature ofthe transaction.

The following principles in particular apply to the financial statements:a) Clarity and intelligibility ;b) Completeness ;c) Reliability ;d) Relative importance ;e) Consistency of presentation and evaluation ;f) Prohibition of offsetting assets and liabilities, as well as expenses and income.

The sum entered for the individual items on the balance sheet is proven by aninventory or by some other method.

5) Currencies

The accounting of the FIVB is kept in Swiss Francs (CHF). A monthly exchange rate isused for the conversion during the year.

The exchange rates used in the balance sheet and the profit and loss at the annualclosing are the following:

Currency 31.12.2015 31.12.2014EUR 1.0874 1.2024GBP 1.4753 1.5493JPY = for 100 yen 0.8321 0.8287USD 1.0010 0.9936

6) Related parties

The confederations and national federations as member of the FIVB are considered asrelated parties. The assets and liabilities of the related parties are presentedseparately in the financial statements.

7) Legal information

Fees associated with the revision of the annual accounts

2014 : CHF 82'117.-

2015 : CHF 74'200.-

Number of full time equivalent employees

2014 : 58

2015: 56

Contingent liabilities

Contractual engagements related to the development.

Year Amount (in kCHF)

2016 1'878

2017 72

2018 18

2019 8

Totals 1'976

Forward exchange contracts a of 31st December 2015

Currency Amount Underlying Rate Maturity

EUR 270'000.- USD 1.095170 27.01.2016

GBP 135'000.- USD 1.533300 27.01.2016

EUR 5'500'000.- USD 1.137700 26.02.2016

EUR 400'000.- USD 1.099550 11.03.2016

EUR 100'000.- USD 1.089000 11.03.2016

CHF 290'000.- USD 0.983050 11.03.2016

FIV3

Amounts due to the occupational pension funds

2014 : CHF 88'402.-

2015 : CHF 252'973.-

8) Internal system of control

The internal system of control (ISC) of the FIVB is based on the principles of the Swiss

Code of Obligations. The ISC covers all the aspects of the bookkeeping, the

preparation of the financial statements and the rules of the FIVB. The documentation

of the ISC was implemented in order to comply with the legal principles and mainly

the article 728a of the Swiss Code of Obligations. The existence of the ISC is legally

controlled yearly by the external auditor.

9) Financial risk management

Credit risk

The credit risk concurs with the risk of non-recovery of the amount of the current

assets in the balance sheet. The amounts to be received by the FIVB are the subject of

a regular monitoring. The economic risk of non-recovery is provisioned to the best of

its knowledge.

Financial investment risk

The risk on financial investments is low. The strategy of the portfolio is based on the

yield and not on the growth of the portfolio. This means that the strategy is based on

a minimal risk and that the investments are focused on high-security bonds.

Investment allocation

A corridor related to the evolution of the investments has been defined. When the

investments are out of this corridor a review of the position is made in order to knowif the position is kept or sold.

Currency risk

The major currencies used are the Swiss Francs, the American Dollar and the Euro.

The currency management is realized considering the needs in foreign currency.

Most of the expenses linked to the competition are in paid Dollar whereas most of the

overhead costs are paid in Swiss Francs.

The income are as far as possible formalized according to needs.

~=/Y3

10) Notes on the profit and loss

Income

2015

(in CHF)

2014

(in CHF)

1. Net proceeds from sales 59'867'582 53'281'869

Licence fees / Entry fees 22'481'162 17'698'726

TV rights 13'112'585 19'044'833

Homologation rights for material 6'372'566 5'985'744

Sponsoring fees 1'816'600 1'200'000

Rights for Olympic qualifications 8'300'000 6'000'000

Transfer fees 3'021'024 2'900'155

FIVB marketing rights 3'924'000 0

Others 839'646 452'411

Revenue recognition

The income of the competitions are recognized the year of the event. The deposits

received for future competitions are recognized in accordance with the deposits

schedules in the contracts, corresponding to the status of the preparatory work.

2. IOC Funds

Olympic Games - IOC contributions

2015 2014

(in CHF) (in CHF)

0 4235'029

0 4'235'029

The funds received for the London Olympic Games have been allocated to the years

2012, 2013 and 2014.

In the future the funds related to the Olympic Games will be allocated over a period

of 4 years, starting as soon as they have been received.

The distribution will be :

50% the year of the Olympic Games

20% year 2

15% year 3

15% year 4

3. Other income

Various income

2015 2014

(in CHF) (in CHF)

1'079'010 1772'349

1'079'010 1'772'349

Exepenses

The expenses are recorded at the time of the engagement of the FIVB. The imparity principle

is used to allocate costs during the year concerned.

2015

(in CHF)

2014

(in CHF)

4. International competitions -31414713 -31'303226

Prize Money -18'495'561 -18'846'404

Travel, hotel and per diem -10'170'355 -10'178'296

Awards & Recognitions -243'124 -332'352

Banners & Stand -203'608 -526'857

Commentaries costs -116'729 -142'726

Others -2'184'836 -1'276'592

2015

(in CHF)

2014

(in CHF)

5. FIVB Programs -2'043'579 -9'896'419

Support to organiser national federation -1'750'000 -6'201'995

Confederation support 0 -3'457'738

Antidoping -209'903 -183'286

Others -83'676 -53'400

6. Confederations allocations

Confederations allocations

2015 2014

(in CHF) (in CHF)

-3750'000 -3750'000

-3'750'000 -3'750'000

F1113

2015

(in CHF)

2014

(in CHF)

7. Development -4'498229 -4'112240

Development centers -986'556 -1'371'810

Zoanl volleyball association -539'960 -541'856

Coaching support -113'698 -36'400

Confederation support -1'422'745 -500'599

National federation support -492'799 -6'802

Travel, hotel and per diem -642'812 -827'985

Others -299'659 -826'789

8. Transfer refunds

Transfer refunds

2015 2014

(in CHF) (in CHF)

-2288'347 -1792'508

-2'288'347 -1'792'508

2015

(in CHF)

2014

(in CHF)

9. Salaries and social charges -7'979'684 -8'129'468

Gross salaries -7'305'349 -6'487'328

Social insurances -633'193 -1'584'096

Others -41'143 -58'044

2015

(in CHF)

2014

(in CHF)

10. Administrative Costs -9'057'040 -14'200'672

Office Costs -848'662 -600'663

FIVB property costs -117'263 -414'655

IT & Office equipment costs -780'684 -832'892

Telecommunications costs -150'136 -150'299

Courrier costs -559'064 -224'677

Audit fees -118'234 -161'230

Translation fees -49'602 -220'902

Consultant fees -1'031'134 -1'469'312

Management expenses -2'414'667 -2'531'953

Publication costs -300'520 -1'562'561

Communication costs 384'878 -3'057'067

Insurance premiums -142'070 -186'663

Travel, hotel and per diem -2'749'260 -2'076'230

Others -180'622 -711'568

FIV3

2015

(in CHF)

2014

(in CHF)

11. Other operating costs -3'153'978 -1'632700

Legal fees -288'675 -472'283

Agency fees -2'574'243 -809'518

Taxes -373'565 -190'120

Provision on debtors 82'504 93'678

Others 0 -254'457

2015 2014

(in CHF) (in CHF)

12. Depreciation and amortization -1481'601 -1'318'101

Depreciation on assets -473'936 -150'640

Depreciation on property -1'007'665 -1'167'461

2015

(in CHF)

2014

(in CHF)

13. Financial result -159705 12'360'518

Financial income 12'446'785 17'163'167

Exchange gains realized 8'284'438 11'657'875

Portfolio income 4'120'194 5'470'630

Other income 42'152 34'662

Financial costs -12'606'490 -4'802'649

Exchange losses realized -8'539'852 -2'723'043

Portfolio losses -3'969'864 -2'060'520

Other costs -96'774 -19'086

2015 2014

(in CHF) (in CHF)

14. Extraordinary result 115'440 84'997

Extraordinary income 206'355 84'997

Extraordinary costs -90'915 0

The extraordinary products consist of the refund for the World Championships trophy, thecancellation of previous years' expenses and income concerning competitions in 2014. Theextraordinary costs consist of the cancellation of invoices linked to non-recoverable licensefees.

FIV3 j

11) Notes on the balance sheet

Cash and equivalents

Cash and equivalents consist of all the UBS and BCV current accounts as well as the currentaccount and the short term investment of the portfolio.

Trade receivables

The trade receivables are split between the related parties and the third parties. In addition aprovision for doubtful debtors is included.

Accrued income and prepaid expenses

This consists of all the expenses paid in advance and all the income to be received.

Securities (Global Custody)

The financial assests are the securities held by the FIVB through the bank Pictet inSwitzerland. Management mandates have been given to 5 banks as of the 31St December2015. The main investment vehicles are the following:

Shares

Bonds- Investment funds

- Structured products

- Liquid assets

The securities are recognized at their nominal value at the time of the acquisition andconverted with the daily exchange rate. For the sale of securities the average value is used tocalculate the realized gain or loss. At the end of the year all securities are converted at theirmarket value to calculate an unrealized gain or loss.

FIV3

Fixed assets

The tangible and intangible fixed assets represent the assets which have a useful life longerthan a year.

These assets are allocated in the following sections:

-

Operating fixed assetsPropertyIT Licence

- Promotional devices

All the fixed assets are capitalised at the nominal value of the invoice and converted with therate of the day of the acquisition.

The depreciation rates used are the following:

0% for all assets under construction

4% for all assets linked to the property

25% for all other assets

Trade creditors

The trade creditors are split between the related parties and the third parties.

Other creditors

Other creditors is composed primarily of previsions made for the payment of the socialcharges as well as the possible refund for the pending litigation for the commissions of Mr.Acosta.

Deferred income and accrued expenses

This consists of all the expenses to be paid and all the income received in advance.

Provisions

Consistent with the risks linked to pending disputes. The provisions cover with a reasonableassurance the amounts potentially due.