COLLEGE CREEK PROPERTY LEASE & ALUMNI CENTER PROJECT NAVAL ACADEMY ALUMNI ASSOCIATION AND FOUNDATION

PROPOSED ALUMNI CENTER LOCATION

NDAA for FY 2018

LONG RANGE TIMELINE*

TODAY

Lease

NDAA

*11/20/2017

QUESTIONS

CEO AND PRESIDENTS REPORT 07 December 2017

Byron Marchant 78 President & CEO

USNAAA Board of TrusteesPresidents Report

STAFFING UPDATE Mariola Baker, Senior Administrative Assistant, Athletic

and Scholarship Programs AJ Bauer, Major Gifts Officer Judy Buddensick, Events Coordinator Carrie Carroll, Member Services Coordinator Jill Cook, Assistant Director, Research Ted Jeffries, Major Gifts Officer Frankie Melvin, Major Gifts Officer Kate Peterson, Major Gift Officer Coordinator Casey Perkins, Event Planner

FAIR WINDS AND FOLLOWING SEAS

CAPT Hank Sanford, USN (Ret.) Chief Financial Officer and Treasurer

TODAYS NAVY AND MARINE CORPS

Rising Tensions New Threats

Operational Challenges Humanitarian Crises

TODAYS NAVAL ACADEMY Global Perspectives Emerging Disciplines

Leadership Experience Ethical Focus

TODAYS ALUMNI ASSOCIATION AND FOUNDATION SUPPORTS ALL OF THESE, AND MORE.

MILESTONES AND ACHIEVEMENTS

Academic attrition: 1%

Class of 2018 includes USNAs 51s Rhodes Scholar as well as Marshall and Schwarzman Scholars

Second Class of Cyber Ops majors graduated in 2017

310 midshipmen studied internationally in 2016-17

Won 2017 Cyber Defense Exercise

Won 2017 National Cyber Security Awareness Week Law & Policy Competition at NYU

2nd place in International Atlantic Council Cyber 9/12 Student Competition; Top Undergraduate Team

Nearly 16,300 applications for the Class of 2021 27% female 37% minority

88% four-year graduation rate

RECOGNITION

#1 in Forbes Public Colleges (USMA #2)

#4 in Forbes STEM Colleges, (USMA #NA)

#2 in U.S. News and World Reports Public Liberal Arts Colleges (USMA #1)

#1 in U.S. News and World Reports High School Counselor Rankings (USMA #2, tied with USAFA)

#6 in payscale.com 2017-18 Salary Report (USMA #5)

ACTIVE DUTY ALUMNI

ADM Harry Harris 78, USN Commander, U.S. Pacific

Command

VADM Terry Benedict 82, USN Director, Strategic Systems

Programs

BGEN Brian Cavanaugh 90, USMC Deputy Commander, U.S. Marine

Corps Forces, Pacific

MajGen Loretta Reynolds 86, USMC Commander,

Marine Corps Cyberspace Command

VADM Jan Tighe 84, USN Deputy Chief of Naval Operations for

Information Warfare/ Director ofNaval Intelligence

ADM John Richardson 82, USNChief of Naval Operations

ALUMNI IN THE NEWS

ADM Harry Harris 78, USN Commander,

Pacific Command The Old Goat, oldest

Naval Academy graduate on active duty

LT Kayla Barron 10, USN Member of newest astronaut

class Among the first female

submarine officers

CDR Brian Dreschler 98, Former CO, SEAL Team Five

2017 VADM James Bond Stockdale Award recipient

CDM Eric Sager 98, Former CO CALIFORNIA

2017 VADM James Bond Stockdale Award recipient

Billy Hurley III 04 PGA Golfer

Winner, 2016 Quicken Loans National

Hosted Inaugural Billy Hurley III and the Brave Golf Tournament

at Naval Academy

FINANCIAL REVIEW

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

9/30/2017 FY Change Evaluation

Assets $309.1M $14.5M

Net Assets $278.4M $14.1M

CONSOLIDATED STATEMENTS OF ACTIVTIES 9/30

2018 2017 Evaluation

Revenue $21.2M $23.2M

SUCCESS TO DATE(through 30 September 2017)

$400 MILLION GOAL

Public Launch Target: November 2018

Raised Needed

$303 Million $97 Million

GRACE HOPPER CYBER DONOR LEADERSHIP SOCIETY The newly established Grace Hopper Cyber Leadership Donor Society will recognize individuals that contribute $1M+ to the United State Naval Academy Center for Cyber Security Studies and Cyber-related programs.

FOUNDATION OFFICE MOVE Foundation Staff (40 people) to move to

former medical clinic space

Estimated relocation date: Summer 2018

Expected to occupy new space (13,500 net sq. ft.) approximately 5 years

Currently working with USNA Public Works to ensure space needs addressed

Capital and moving expense: $650k - $800k (estimated) FY18 budget (March-June): $245k FY19 budget (July 1, 2018) - $505k

Lease Execution March 2018 (estimated)

FOUNDATION OFFICE MOVE

Current Foundation Offices (8,500 ft2) 2017-2018

Future Foundation Offices (13,500 ft2bldgs 274, 252 1stfloor, and computer room in 275) 2018-2023

Honor Our Fallen Heroes5th Anniversary

Veterans Day Classic

Run to Honor Dinner

VETERANS DAY WEEKEND

UPCOMING EVENTS

9 December: Army/Navy Football

10-11 May 2018: Alumni Association Board of Trustees Meeting

13 April 2018: Foundation Board of Directors Meeting

28 December: Navy Football vs ???

23 March 2018: Distinguished Graduate Award Ceremony

21-25 May 2018: Commissioning Week Activities

2018 KNOWN FOOTBALL SCHEDULE(SUBJECT TO CHANGE)

Date Opponent Location

August 25 Lehigh Annapolis, MD

September 1 Hawaii Honolulu, HI

October 6 Air Force Colorado Springs, CO

October 20 TBDHomecoming Annapolis, MD

October 27 Notre Dame San Diego, CA

December 8 Army Philadelphia, PA

American road games: UCF, Cincinnati, SMU, Tulane

ENGAGEMENT UPDATEBILL DAWSON 82 Executive Vice President

ALUMNI ASSOCIATION SNAPSHOT

79,000 living Alumni

More than 62,000 Members

10 Decades of Classes Represented

99 Chapters

84 Parents Clubs

3,100 Parent Members

PLAN 2020 OBJECTIVES OVERVIEW

2016 2017 Program Area

Board Composition/DiversitySteadily increase board diversity to reflect makeup of the alumni.

Organizational Development & Alumni ServicesProvide services that engage our members in support of the Mission and Vision. Sustain the Alumni Association as a high performing organization.

Membership: Numbers & ProfileBuild and sustain lifelong and meaningful relationships with increasing numbers of alumni, parents, families and friends.

Physical Plant, FacilitiesModern, low maintenance infrastructure minimum cost

Equipment & TechnologyState-of-the-art management and communications technologies to meet the demands of an increasingly IT-sophisticated membership, but not ignoring the needs of older alumni.

PLAN 2020 OBJECTIVES OVERVIEW

2016 2017 Program Area

Engagement (Strategic Communications & Outreach)More effectively engage Alumni, families and friends via strategic communication and outreach. Build and sustain lifelong and meaningful relationships Be a trusted source of information.

Relevance & Support of USNABe relevant to, and in full partnership with the Naval Academy in support of its mission. Demonstrate an understanding of Naval Academy leaders key concerns and needs.Engage members in support of USNA strategic imperatives.

Financial SecurityImprove financial resources to promote self-sufficiency.Enhance and preserve Alumni Association fiscal health with financial integrity, strategic budgeting and cost-effective programs.

BOARD COMPOSITION/DIVERSITY

MAY10 MAY13 DEC17Ave Age 66 56 57 (YG82)M/F ratio 28/0 25/3 23/5

Trustee demographics concern; Classes represented now includes 4 Trustees from Millennial

Generation (McCarthy 00, Lane 02, Augusto 02, Spivey 13) Female Membership = 5 (Rogers*, Vernazza, Cragin, Lowndes*,

Greenberg)* May 2018 Rogers and Lowndes last BOT

ALUMNI DEMOGRAPHICS

Dec 15 Dec 17Total Grads 56,264 56,487 Female Grads (1980 on) 4,431 4,684% female 7.9% 8.3%

As of 11/30/16 Living Alumni with a Female Classmate (>80) = 65% Millennials ( 00

0

200

400

600

800

1000

1200

1941

1943

1945

1947

1949

1951

1953

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

AVERAGE AGE OF A LIVING ALUM

1987

REUNION PARTICIPATION (2012 2017)

Average Attendance rising 2018 Challenges Week Zero game (25AUG) . 73 and 93 reunions @ Hawaii; @ USAFA Notre Dame @ San Diego AAC road games @ UCF, Cincinnati, SMU, Tulane

2012 2013 2014 2015 2016 2017Reunion

Year Class Total Class Total Class Total Class Total Class Total Class TotalReunion

Year Ave75 1937 40 0 0 1939 88 1935 1 1941/42 90 75 4470 1943 42 0 0 1945 95 1940 17 1946 16 1947 42 70 3565 1947 247 1948 120 1949 101 1950 153 1951 116 1952 160 65 15060 1952 240 1953 280 1954 175 1955 143 1956 290 1957 362 60 24855 1957 450 1958 477 1959 412 1960 380 1961 481 1962 499 55 45050 1962 811 1963 885 1964 886 1965 672 1966 823 1967 958 50 83945 1967 695 1968 613 1969 583 1970 708 1971 763 1972 760 45 68740 1972 757 1973 817 1974 725 1975 842 1976 699 1977 851 40 78235 1977 550 1978 644 1979 540 1980 625 1981 768 1982 751 35 64630 1982 730 1983 872 1984 765 1985 964 1986 843 1987 958 30 85525 1987 833 1988 444 1989 790 1990 772 1991 1100 1992 975 25 81920 1992 557 1993 1200 1994 831 1995 863 1996 842 1997 1038 20 88915 1997 443 1998 415 1999 496 2000 418 2001 455 2002 401 15 43810 2002 277 2003 411 2004 282 2005 471 2006 470 2007 899 10 4685 2007 237 2008 427 2009 315 2010 312 2011 152 2012 167 5 268

6909 7605 7084 7341 7908 8821 7619

Sheet1

2017 Reunion Totals

ClassReunion YearAlumni RegisteredTotal Registrants

1947 (Luncheon Only)70742

19526563160

195760188362

196255258499

196750

197245

197740

198235405751

198730461958

199225446975

1997204441038

200215

200710424899

20125119167

Total28155851

Sheet2

201220132014201520162017

Reunion Year ClassTotalClassTotalClassTotalClassTotalClassTotalClassTotalReunion YearAve20126909

7519374000193988193511941/4290754420137605

7019434200194595194017194616194742703520147084

651947247194812019491011950153195111619521606515020157341

601952240195328019541751955143195629019573626024820167908

551957450195847719594121960380196148119624995545020178821

5019628111963885196488619656721966823196795850839

4519676951968613196958319707081971763197276045687

4019727571973817197472519758421976699197785140782

3519775501978644197954019806251981768198275135646

3019827301983872198476519859641986843198795830855

25198783319884441989790199077219911100199297525819

201992557199312001994831199586319968421997103820889

1519974431998415199949620004182001455200240115438

1020022772003411200428220054712006470200789910468

52007237200842720093152010312201115220121675268

6909760570847341790888217619

201220132014201520162017690976057084734179088821

Sheet3

REUNION PARTICIPATION (2011 2016)

AAC scheduling rhythm driving class behavior

5000

5500

6000

6500

7000

7500

8000

8500

9000

9500

2012 2013 2014 2015 2016 2017

REACHABLE ALUMNI (EMAIL %)

0

10

20

30

40

50

60

70

80

90

100

1940

1942

1944

1946

1948

1950

1952

1954

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

% Reachable 82.9%Up from 72% in 2 yrs

ALUMNI MENTORING PROGRAM (AMP)

Class of- Number of

2017 2016

Participants 352 449

Active matches 50 89

Pending matches 29 3

34

Number of DEC 17 DEC16

Participants 2,254 1,777Active matches 685 579

Pending matches

55 60

At a glanceAMP

December2017

Steady growth Satisfied users Fully funded On budget Under Study: New AMP.2!

Looking forward

1. Focused growth2. Adding online teaching modules to improve

participant skills, mentoring effectiveness3. Citizenship: Continue to information share

with other institutions (e.g., USAFA, College Mentoring Roundtable, etc.)

35

0

20

40

60

80

10019

5019

5519

5819

6019

6219

6419

6619

6819

7019

7219

7419

7619

7819

8019

8219

8419

8619

8819

9019

9219

9419

9619

9820

0020

0220

0420

0620

0820

1020

1220

14

Our two biggest barriers to growth Getting the word out Overcoming inertia

The above chart excludes2016 449 Participants2017 - 352 Participants

AMP PARTICIPATION BY CLASS

NEW OVERALL MEMBERSHIP GROWTH

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

NOV10-NOV11 NOV11-NOV12 NOV12-NOV13 NOV13-NOV14 NOV14-NOV15 NOV15-NOV16 NOV16-NOV17

New Alumni New Parent New MIDN

Goal: 1700 NewMembers Annually

NEW PARENT MEMBERSHIP GROWTH

0

100

200

300

400

500

600

700

800

900

NOV10-NOV11 NOV11-NOV12 NOV12-NOV13 NOV13-NOV14 NOV14-NOV15 NOV15-NOV16 NOV16-NOV17

New Parent Membership

New Annual Parent New Life Parent

ENGAGEMENT REVENUE vs EXPENSES

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

FY 12 Actual FY 13 Actual FY 14 Actual FY 15 Actual FY 16 Actual FY17 Actual

Engagement

Total Revenue Total Expense

COMMUNICATIONS UPDATE KRISTEN PIRONIS

LESSONS LEARNED

THE WAY FORWARD

CAMPAIGN COMMUNICATIONPLANNING & EXECUTION

DEVELOPMENT UPDATEBILL OCONNOR

SUCCESS TO DATE(through 30 September 2017)

$400 MILLION GOAL

Public Launch Target: November 2018

Raised Needed

$303 Million $97 Million

San Diego 25 27 October - NAAA Announcement of reaching goal- Navy vs. Notre Dame

Annapolis 7 10 November - BOD Meeting- Philanthropy Awards Gala- Programing for top donors/PC donors/all constituents

Regional Launches Winter/Spring/Summer 2019- New York City - Houston/Dallas - Midwest/Chicago - Northern California and Southern California

CAMPAIGN PUBLIC LAUNCH: TARGET $388M DECEMBER 2018

COLLEGE CREEK Property Lease & Alumni Center Project PROPOSED ALUMNI CENTER LOCATIONNDAA for FY 2018LonG RANGE TIMELINE*Slide Number 5USNAAA Board of TrusteesPresidents Report STAFFING UPDATE FAIR WINDS AND FOLLOWING SEAS Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15FINANCIAL REVIEW SUCCESS TO DATE(through 30 September 2017) GRACE HOPPER CYBER DONOR LEADERSHIP SOCIETY FOUNDATION OFFICE MOVE Foundation office moveSlide Number 21UPCOMING EVENTS 2018 KNOWN Football schedule(Subject to Change)Slide Number 24Alumni Association SNAPSHOT Plan 2020 Objectives OverviewPlan 2020 Objectives OverviewBoard Composition/DiversityAlumni DemographicsSlide Number 30Reunion Participation (2012 2017)Reunion Participation (2011 2016)Reachable Alumni (Email %)Alumni mentoring program (AMP)AMP PARTICIPATION BY CLASS New Overall Membership GrowthNEW PARENT MEMBERSHIP GROWTH ENGAGEMENT REVENUE vs EXPENSESCOMMUNICATIONS UPDATE KRISTEN PIRONIS Slide Number 40Slide Number 41Slide Number 42DEVELOPMENT UPDATEBILL OCONNOR SUCCESS TO DATE(through 30 September 2017) Slide Number 45