REPORTERS SANS FRONTIERES RSF...Reporters Sans Frontières Year ended December 31st, 2019 3...

This is a translation into English of the statutory auditor’s report on the financial statements

of the Company issued in French and it is provided solely for the convenience of English

speaking users.

This statutory auditor’s report includes information required by French law, such as the

verification of the management report and other documents provided to the shareholders.

This report should be read in conjunction with, and construed in accordance with, French law

and professional auditing standards applicable in France.

REPORTERS SANS FRONTIERES

RSF Year ended December 31ST, 2019

Statutory auditor’s report on the financial statements

ERNST & YOUNG Audit

Ernst & Young Audit Tour First TSA 14444 92037 Paris - La Défense cedex

Tél. : +33 (0) 1 46 93 60 00 www.ey.com/fr

S.A.S. à capital variable 438 476 913 R.C.S. Nanterre Société de Commissaires aux Comptes Siège social : 1-2, place des Saisons - 92400 Courbevoie - Paris - La Défense 1

REPORTERS SANS FRONTIERES RSF Year ended December 31st, 2019

Statutory auditor’s report on the financial statements

To the Annual General Meeting of Reporters Sans Frontières’ association,

Opinion

In compliance with the engagement entrusted to us by your board of directors, we have audited the

accompanying financial statements of ‘Reporters Sans Frontières’ for the year ended December 31st,

2019. These financial statements were approved by the Board of Directors, on July 2, 2020, on the

basis of the elements available at that date, in the evolving context of the health crisis related to Covid-

19.

In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the

financial position of the Company as at December 31, 2019, and of the results of its operations for the

year then ended in accordance with French accounting principles.

Basis for Opinion

Audit Framework

We conducted our audit in accordance with professional standards applicable in France. We believe that

the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the ‘Statutory Auditor’s

Responsibilities for the Audit of the Financial Statements’ section of our report.

Independence

We conducted our audit engagement in compliance with independence rules applicable to us, for the

period from January 1st 2019 to the date of our report and specifically we did not provide any

prohibited non-audit services referred to in the French Code of Ethics for statutory auditors.

Reporters Sans Frontières

Year ended December 31st, 2019 2

Justification of Assessments

In accordance with the requirements of Articles L. 823-9 and R. 823-7 of the French Commercial Code

relating to the justification of our assessments, we inform you of the assessments that, in our

professional judgment, were of most significance in our audit of the financial statements of the current

period.

These matters were addressed in the context of our audit of the financial statements, as approved in

the above-mentioned context, and in forming our opinion thereon, and we do not provide a separate

opinion on specific items of the financial statements.

The last section in the notes sets out the requirements for establishing the annual resource utilization

account. As part of our assessment of the accounting principles followed, we verified that the methods

used to prepare the annual statement of use of resources are properly disclosed, comply with the

provisions of CRC regulation 2008-12 and have been correctly applied.

Specific verifications

We have also performed, in accordance with professional standards applicable in France, the specific

verifications required by laws and regulations.

We have no matters to report as to the fair presentation and the consistency with the financial

statements of the information given in the treasurer’s financial report, as approved on July 2, 2020,

and in the other documents with respect to the financial position and the financial statements provided

to the members. Regarding the events that occurred and the elements known after the date of

approval of the financial statements relating to the effects of the Covid-19 crisis, Management has

informed us that such events and elements will be communicated to the annual general meeting, called

to decide on these financial statements.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in

accordance with French accounting principles and for such internal control as Management determines

is necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, Management is responsible for assessing the 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 it is expected to liquidate the Company or to cease

operations.

The financial statements were approved by the Board of Directors.



Statutory Auditor’s Responsibilities for the Audit of the Financial Statements

Our role is to issue a report on the financial statements. Our objective is to obtain reasonable

assurance about whether the financial statements as a whole are free from material misstatement.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with professional standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

As specified in Article L. 823-10-1 of the French Commercial Code (Code de commerce), our statutory

audit does not include assurance on the viability of the Company or the quality of Management of the

affairs of the Company.

As part of an audit conducted in accordance with professional standards applicable in France, the

statutory auditor exercises professional judgment throughout the audit and furthermore:

► Identifies and assesses the risks of material misstatement of the financial statements, whether due

to fraud or error, designs and performs audit procedures responsive to those risks, and obtains

audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or

the override of internal control.

► Obtains an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the internal control.

► Evaluates the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by Management in the financial statements.

► Assesses the appropriateness of Management’s use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern.

This assessment is based on the audit evidence obtained up to the date of his audit report.

However, future events or conditions may cause the Company to cease to continue as a going

concern. If the statutory auditor concludes that a material uncertainty exists, there is a

requirement to draw attention in the audit report to the related disclosures in the financial

statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed

therein.

► Evaluates the overall presentation of the financial statements and assesses whether these

statements represent the underlying transactions and events in a manner that achieves fair

presentation.

Paris-La Défense, July 10, 2020

The Statutory Auditor

French original signed by



ERNST & YOUNG Audit

Pierre Abily

ASS REPORTERS SANS FRONTIERES

Financial statements

Annual Financial

statements

As at 31/12/2019


Assets

Gross Depreciation and provision

Net at31/12/2019

Net at31/12/2018

Fixed assets Intangible assets

64 411 16 547 47 864 27 051

Start-up costs Other intangible assets (1) Advances and deposits 19 440

Tangible assets

2 192 500 1 342 797 849 703 959 328

Land Buildings Plant, equipment and industrial tools Other tangible fixed assets 546 191 521 223 24 967 29 100

Fixed assets subject to rights Tangible Fixed assets in progress

Advances and down payments Financial assets

42 015 42 015 35 099

Interests valued based on equity method Accounts receivable related to interests Other equity securities Loans Other long-term investments (2) 1 741 1 741 1 651

2 846 857 1 880 567 966 290 1 071 670TOTAL I Current assets Inventories

172 581 172 581

Raw materials, supplies Work in progress (goods and services) Intermediate and finished products Goods Advances and down payments on orders 3 095 3 095 7 734

756 052 756 052 763 136482 221 482 221 976 827

15 15 153 553 543 3 553 543 1 979 910

47 112 47 112 40 9695 014 620 172 581 4 842 038 3 768 591

112

ReceivablesUsers and related accounts Other ReceivablesInvestment securities Cash and equivalentsPrepaid expenses (3) TOTAL II

Expenses to be spread over several years Bond redemption premiums Active conversion differences

TOTAL ASSETS 7 861 477 2 053 148 5 808 329 4 840 373

1) Including right to lease2) Including less then one year3) Including more than one year

Annual Financial

statements

As at 31/12/2019


Liabilities

At31/12/2019

At31/12/2018

Equity59 455 59 455

2 152 130 2 223 679

-Association funds without the right of repossession-Revaluation differences-Reserves-Retained earnings-Result for the year 130 935 -71 549

Other association funds Association funds with right of repossession

-Contributions-Legacies and donations-Other associative funds-Result under the control of third party funders

2 342 521 2 211 586

21 612 1 612

40 000 40 00061 612 41 612

1 019 775 1 166 987

524 358 365 854

363 492 362 414

134 125 197 1371 362 152 494 489

3 403 902 2 586 882294 294

Revaluation differencesInvestment grants (on non-renewable goods) Regulated provisions Rights of owners (Commodat)Total I

PROVISIONS FOR RISKS AND CHARGES Provisions for risksProvisions for chargesTotal II

DEDICATED FUNDSDedicated funds from operating grants Dedicated funds from other resourcesTotal III

DEBTS (1)

Loans from financial institutionsLoans and debts with credit institutions (2) Miscellaneous borrowings and financial debts Advances and deposits receivedAccounts Payables and related accountsTax and social debts

Other debtsCash instrumentsPrepaid incomeTotal IVPassive conversion differences

TOTAL LIABILITIES 5 808 329 4 840 373869 387 1 018 390

2 534 515

1) Including more than one year2) Including less then one year3) Including current bank loans and bank credit balances 1 396

1 568 492

Annual Financial

statements

As at 31/12/2019

Association funds


Income statement

31/12/2019 31/12/2018

13 165 650

1 219 358 1 222 935

1 232 523 1 223 585

28 729 43 198

3 664 670 3 452 211

749 079 495 450

1 194 129 843 768

6 869 130 6 058 212

2 989

334 419 4 825

1 008 643 907 060

1 901 305 1 849 189

186 794 178 192

1 860 146 1 768 294

728 174 730 127

OPERATING PRODUCTS (1)Sale of goodsSold production of goods and servicesNet TurnoverStored productionCapitalised productionOperating subsidiesReversals of provisions and transfer of costs Contributions Other revenue TOTAL OPERATING INCOME OPERATING COSTS (2)

Purchases of goodsStock variationRaw material purchasesChange in raw material inventoryOther purchases not storedExternal charges (3) (4)Taxes, duties and related payments Salaries and wagesSocial securities chargesDepreciation and amortization

137 263 128 612

28 729 46 589

- On fixed assets: amortizations- On fixed assets: provisions- On current assets: provisions- On risks and charges: provisions

20 000

472 642 405 375

6 678 116 6 021 251191 015 36 961

Other expensesTOTAL OPERATING COSTS OPERATING RESULTQuotas of profit from joint operations

- Surplus or deficit transferred- Deficit or surplus transferred

35 603 10 502

35 603 10 502

55 593 28 889

32 687 84 693

88 280 113 583

-52 677 -103 081

FINANCIAL PRODUCTSNet income from VMP disposals Other financial productsTOTAL FINANCIAL PRODUCTS

FINANCIAL EXPENSES Interest and similar expensesNet charges on securities transfers Other financial chargesTOTAL FINANCIAL EXPENSES

FINANCIAL INCOME

PRE-TAX CURRENT RESULT 138 337 -66 120

Annual Financial

statements

As at 31/12/2019


Income statement (cont.)

31/12/2019

738

738

750 -2 125

906

1 656 -2 125

-918 2 125

6 484 7 554

6 905 471 6 068 714

6 774 536 6 140 263

130 935 -71 549

275 376 290 374

6 200 66 304

281 576 356 678

EXTRAORDINARY GAINSOn management operationsOn capital transactionsReversals of provisions and transfer of chargesTOTAL EXTRAORDINARY GAINS

EXTRAORDINARY COSTSOn management operationOn capital transactionDepreciation, amortization and provisions

TOTAL EXTRAORDINARY COSTSEXTRAORDINARY RESULTEmployee participation in the resultIncome taxCarryover of unused resources from previous years Commitments to be made from allocated resources

Total RevenuesTotal Expenses

NET PROFIT OR LOSS

EVALUATION OF VOLUNTARY CONTRIBUTIONS IN KIND

Resources

VolunteeringBenefits in kindDonations in kind

Total

UsesRelief in kindFree provision of goods and servicesBenefitsVolunteer staff

Total

1) Including income relating to previous years2) Including charges relating to previous years3) Furniture leasing4) Real estate leasing

Annual Financial

statements

As at 31/12/2019

31/12/2018

ASS REPORTERS SANS FRONTIERESAnnual financial statements As at 31/12/2019

Notes with the financial statements


Significant events

Significants events that affect the financial statements

Founded in 1985, Reporters Sans Frontières (RSF) - Reporters Without Borders - strives to carry the vision of a world in which all peoples have access to reliable information enabling them to fully understand current global challenges and build their own opinions.

RSF promotes the freedom, pluralism and independence of journalism, in particular by coming to the defense of those who embody these ideals. Thanks to its consultative status with the United Nations, UNESCO, the Council of Europe, the International Organization of the Francophonie (OIF), and the African Court on Human and Peoples' Rights, RSF is recognized worldwide as the key reference NGO for the defense and promotion of freedom of information.

Its global footprint through its vast international network (international secretariat based in Paris, fourteen sections and regional offices as well as correspondents in more than 130 countries) allows RSF to mobilize its support, take up challenges and exercise an influence on the ground, in ministries and constituencies where standards and media and Internet laws are written.

RSF's strategy revolves around the following priorities:

• Securing the future of investigative and reporting journalism• Guarantee a reliable journalism by protecting its independence• Fight against technological attacks on the freedom and pluralism of journalism• Counter global offensives aimed at reducing the space of journalism

The organization is independent of any political tendency, any economic interest and any religious belief. Its funding is based in a balanced manner on the generosity of the public, private sponsorship, the sale of "100 photos pour la liberté de la presse" albums on the one hand and public subsidies on the other. It acts transparently to provide guarantees to those who support us.

RSF is a member of the Reporters Without Borders international association, which coordinates the various national sections of the NGO. As such, in 2019, this contribution was set at € 59,000.For the record, the 2018 subscription amounted to € 60,000.

RSF signed at the beginning of 2017, with the Swedish agency for International Cooperation for Development (SIDA), a financing agreement starting on January 1, 2017, entitled "Promote Free, independent, sage and pluralist journalism", of an amount of SEK 42,800 K (equivalent to € 4,447 K on a conversion rate on the date of the contract signing). The duration of the agreement is 48 months.

For 2019, this contract contributes € 1,014 K to the association's resources, compared with € 1,183 K in 2018, and € 1,091 K in 2017.

RSF received two awards in 2019, including the Dan David prize for $ 450K (€ 396K). RSF also received a gain from national televison TF1 game "Who wants to win millions?" of € 72K. These awards and game's gains have been recorded in “other income”.

RSF received a donation from Craig Newmark Philanthropies to help implement the Journalism Trust Initiative (JTI). This donation amounts to 1.5 million USD over 2 years. RSF received 1 million USD in July 2019 (i.e. € 892K).

Annual financial statements As at 31/12/2019


Accounting rules and methods

Association description : REPORTERS SANS FRONTIERES

Notes on the balance sheet before distribution for the fiscal year ended 31/12/2019 showing a total of €5,808,329 and

on the income statement of the fiscal year showing a profit of €130,935.

The fiscal year covers a period of 12 months, from 01/01/2019 to 31/12/2019.

The notes or tables below are an integral part of the financial statements.

General RulesThe financial statements of the fiscal year ended 31/12/2019 were established and presented in accordance with the CRC 99-01 regulation on the procedures for drawing up the annual accounts of associations.

General accounting rules were applied in compliance with the conservatism principle in line with basic assumptions :

- on-going business,- consistency of accounting methods from one year to the next,- independence of financial years.

and in compliance with general rules for the preparation and presentation of the financial statements.

The basic method selected for the valuation of items recorded in the books is the historical cost method.

Valuation and presentation methods adopted for this fiscal year have not changed compared to the previous fiscal year.

Preparation of the financial statements in compliance with :

- the regulation of the Accounting Standards Authority N ° 2014-03 of June 05, 2014, modified by the ANC regulation N °2016-07 of November 04, 2016- Articles L123-12 to L123-28 of the French Commercial Code

Only significant information is expressed. Unless otherwise stated, amounts are expressed in euros.

Intangible and tangible fixed assets

Tangible fixed assets are valued at their acquisition or production cost, in consideration of the costs required to put these goods operational, and after deduction of commercial discounts, rebates, discount payments obtained.

The following decisions were made regarding the presentation of annual accounts:

- identifiable assets: the entity was not able to define identifiable assets or the distribution thereof has no significant impact,- non-identifiable assets: benefiting from tolerance measures, the entity chose to maintain the useful lives for thedepreciation of non-identifiable goods.

Interests on loans specific to the production of fixed assets are not included in the production cost of these fixed assets.




Depreciations

Depreciations for impaired values are computed with the straight-line method based on the expected life :

* Buildings : 10 to 20 years* Fixtures and fittings : 5 years* Hardware : 3 years* Computer equipment : 3 years* Furniture : 3 years

The depreciation period adopted for simplification is the duration of use for goods that cannot be divided in the beginning.

The residual values of fixed assets are considered to be zero because they are not significant or cannot be measured.

Inventories

The acquisition cost of inventories includes the purchase price, customs duties and other taxes, excluding taxes subsequently recoverable by the entity from the tax authorities, as well as transport, handling and other costs costs directly attributable to the cost price of raw materials, goods, work in progress and finished products. Trade discounts, rebates, cash discounts and other similar items are deducted to determine acquisition costs.

Inventories are valued based on the First-in First-out method. For practical needs and unless there is a significant difference, the purchase price used correspond to the last known purchase price.

Stock of albums :

Since 2006, Reporters Without Borders has been using a tool to track the stock of unsold albums in Presstalis warehouses. During 2019, in order to limit storage costs, a significant reduction was made. The number of copies albums published on the exercise is defined according to the result of the latter’s sales and its commercial potential.

The previous year there had already been a reduction in stock to 10,000 copies per album instead of 30,000.

Albums stocks are valued at a cost supported by RSF. On this basis, the impairment in value is estimated at 100% because the selling rate for such quantities is insignificant.

Stock of T-shirts :

T-shirt stocks were valued at the cost price supported by RSF. A depreciation of 100% was practiced since the commercialsale rate of these quantities is negligible. However, T-shirts inventories were donated to POYA, an aid to the literacy ofAfghan families and to "Vestiaire des Migrants "(Saint Bernard solidarity) on December 13, 2019.




Accounts receivable and payable

Accounts receivable and accounts payable are valued at par value. The value is impaired when the inventory value is less than the book value.

Provisions

Any current liability resulting from a past event of the entity towards a third party, that can be estimated with sufficient reliability, and covering identified risks, is subject to recognition as a provision.

Exceptional income and expenses

Exceptional income and expenses include operations which are not linked to the current activity of the association.

Transactions in foreign currency

For assests bought in foreign currency, the conversion rate used is the exchange rate on the entry date or, if applicable, the hedging exchange rate if it was acquired before the transaction. The hedging cost is also included in the acquisition cost.Debts, receivables, availability in foreign currencies appear on the balance sheet for their equivalent value at the end of the fiscal year. The difference resulting from the updating of debts and receivables in foreign currencies at this last rate is carried in the balance sheet in translation difference. Unrealized exchange losses are subject to a provision for risks, in full in accordance with regulatory policies.


Valuation of uncountable goods in current assets

These items are valued in the balance sheet at input value. The comparison with the current value determined in reference to a market price is not significant.


Notes on the Balance sheet

Fixed asset

Statement of fixed assets

Upon Year commencement

Increase Decrease Upon

Year end

103 418 11 693 50 700 64 411

103 418 11 693 50 700 64 411

2 192 500 2 192 500

337 410 337 410

280 326 14 091 85 636 208 781

2 810 235 14 091 85 636 2 738 691

66 750 7 066 30 060 43 756

- Starts-up, research and development costs- Goodwill- Other intangible fixed assetsIntangible assets

- Lands- Buildings on freehold- Buildings on non-freehold- Facilities, fixtures, buildings

- Plant, equipment and tools- Other facilities, fixtures and fittings- Transport equipment- Office equipment, hardware and furniture- Recoverable packages, miscellaneous- Tangible fixed assets in progress- Advances and down paymentsTangible assets

- Interests valued using the equity method- Other equity interests- Other fixed securities- Loans and other financial assetsFinancial assets 66 750 7 066 30 060 43 756

FIXED ASSETS 2 980 403 32 850 166 396 2 846 857




The flows can be analized as follows :

IntangibleAssets

TangibleAssets

FinancialAssets

Total

11 693 14 091 7 066 32 850

11 693 14 091 7 066 32 850

1 620 1 620

50 700 84 016 30 060 164 776

Breakdown of increasesPeer to peer transfersCurrent assets transfersAcquisitions

Contributions

Creations

Reassessment

Incresases of the fiscal year

Breakdown of thedecreases Peer to peer transfersTransfers from current asstes DisposalsSplitsDiscards

Decreases of the fiscal year 50 700 85 636 30 060 166 396




Financial assets

The gross value includes the purchase cost excluding ancillary costs. When the inventory value is lower than the gross value, a depreciation is recorded for the difference.

Depreciation of fixed assets

Upon year commencement

Increases Decreases Upon Year end

56 926 10 320 50 700 16 547

56 926 10 320 50 700 16 547

1 233 172 109 625 1 342 797

325 998 6 651 332 648

262 637 10 668 84 730 188 575

- Starts-up, research and development costs- Goodwill- Other fixed assetsIntangible assets

- Lands- Buildings on freehold- Buildings on non-freehold- Facilities, fixtures, buildings- Plant, equipment and tools- Other facilities, fixtures and fittings- Transport equipment- Office equipment, hardware and furniture- Recoverable packages, miscellaneousTangible assets 1 821 807 126 943 84 730 1 864 020

FIXED ASSETS 1 878 733 137 263 135 430 1 880 567




Current assets

Statements of receivables

Receivables at the end of the fiscal year amounted to € 1,329,142 and the detailed classification by due date is as follows:

Grossamount

Less thanone year

More thanone year

42 015 42 015

1 741 1 741

756 052 756 052

482 221 482 221

47 112 47 112

1 329 142 1 285 386 43 756

6 916

Receivables in fixed assets : Receivables linked to investmentsLoansOthers

Receivables in current assets : Receivables from customersOthersPrepaid expenses

Total

Granted loans in the fiscal yearLoans repaid in the fiscal year

Products to be received

Amount

415 429

4 543

617

34 176

CUSTOMERS - UNBILLED REVENUE SUPPLIERS - DISCOUNTS TO BE RECEIVED

SOCIAL SECURITY

OTHERS

Total 454 765

Investments securities

The chosen method is the Fisrt In First Out




Depreciation of assets

The flows can be analized as follows:

DepreciationsUpon Year

commencement

Provisionof the fiscal year

Reversalof the fiscal year

DepreciationsYear end

30 000 30 000

478 271 28 729 334 419 172 581

40 080 40 080

548 351 28 729 404 499 172 581

28 729 374 499

30 000

Intangible assets

Tangibles assets

Financial assetsInventoriesReceivables and Investments securities

Total

Breakdown of provisions and reversals : Operating FinancialsExceptional

Equity

Statement of changes in equity

CHANGES IN ASSOCIATION FUNDS

Upon YearCommencement

Allocation ofthe results

Increase Decrease orconsumption

UponYear End

59 455 59 455

2 223 679 -71 549 2 152 130

-71 549 71 549 130 935 130 935

2 211 586 130 935 2 342 521

Association funds without the right of repossessionAssociation funds with the right of repossessionRevaluation differences ReservesRetained earningsProfit or loss of the fiscal year Net equityAssociation funds consumables Investment subsidies Regulated provisionsProperties rights (Commodat) TOTAL 2 211 586 130 935 2 342 521




Provisions

Statement of provisions

Provisions

Upon YearCommencement

Provisionof the year

Reversalsused in the

year

Unusedreversals of

the year

Provisions

Upon Year end

1 500 20 000 21 500

112 112

40 000 40 000

41 612 20 000 61 612

20 000

DisputesGuaratees given to customersLosses on future marketsFines and penalitiesExchange lossesPensions and obligations

TaxesRenewal of fixed assetsMajor Charges on paid leaveOther provisions

Total

Breakdown of provisions and reversals of the year :OperatingFinancialsExceptionals




Debts

Debts statement

The debts total at the year end amounts to 3,403,902 euros and the detailed classification by maturity is as follows :

GrossMaturity

Less than one yaerMaturity

Between 1 and 5 years

MaturityMore than 5 years

Convertible bonds (*) Other convertible bonds (*) Borrowings and debts from financial institutions (*) :

1 019 775 150 388 631 459 237 929

524 358 524 358363 492 363 492

134 125 134 125

- Less than 1 year- More than 1 yearOther borrowings and financial debts (*) (**)

Debts to suppliers and related accountsFiscal and social security debtsDebts on fixed assets suppliersOther debts (**)

Prepaid income 1 362 152 1 362 152

3 403 902 2 534 515 631 459 237 929

145 618

Total

(*) Borrowings of the year(*) Borrowings repaid during the yaear (**) Towards shareholders

Accruals

Amount

131 568

1 385

109 822

55 773

11 956

257

47 335

SUPPLIERSINTERESTS ON BORROWINGSDEBT RELATED TO PAID LEAVE PROVISION SOCIAL SECURITY CHARGES ON PAID LEAVE PROVISION ACCRUALS ON SOCIAL SECURITY AND TAXESCUSTOMERS - CREDIT NOTES TO ISSUE

Total 358 096




ACCRUALS

Prepaid expenses

Operatingexpenses

Fincancialexpenses

Exceptionalexpenses

PREPAID EXPENSES 47 112

Total 47 112

Prepaid income

Operatingincome

Financialincome

Exceptionalincome

PREPAID INCOME 1 362 152

Total 1 362 152

Prepaid income are related to : subsidies for € 1,271,749 ; Interform and Presstalis sales for € 70,403 and donations for € 20,000.



Notes on the Income statement

Turnover and ressources

Breakdown by line of business

Line of business 31/12/2019

1 106 512

6 200

6 965

50 000

18 817

44 029

Albums salesAuctionsLicense and sales of promotional itemsRebilling of operating costs to RSF International Rebilling of transportation feesOther ancillary income

TOTAL 1 232 523

Operating and financial expenses and income

Statutory auditor's fees

Statutory auditor Certification fees : 19 200 eurosOther services fees : 0 euros

Operating subsidies

Subsidies are recorded as they are used.When the payments received during the year are not completly used, the difference is recorded in prepaid income.

31/12/2019

1 013 731599 313518 971321 780409 136154 606

3 664 670

382 475107 555157 103

SIDACraig NewmarkAFDAdessiumIEDDH (1) (Projet Consortium)MAE SyrieOMIDYARMinistère de la culture et de la communicationAutres subventions

TOTAL

(1) European instrument for democracy and human rights – IEDDH



Notes on the Income statement

Operating and financial expenses transfered

Operatingexpenses

Financialexpenses

384 588

-10 009

Hiring subsidy

ERENA Subsidy Daily subsistence allowanceVarious customers

TOTAL 374 579

Exceptional income and expenses

Exceptional result

Operations of the year

Expenses Income

750

906

738

Penalties and finesNet book value of assets disposed of Revenue from sale of assets

TOTAL 1 656 738

VAT and corporate tax

The line of business "publications" has been subject to VAT since 2000.The entity is liable for VAT at 100% for all its commercial activity but is completely exempt on its "research" line of business. The entity applies a pro rata of VAT of 88% for operating expenses. This proportion is re-evaluated each year according to the turnover.RSF is liable for commercial taxes on the publication activity since the beginning of the 2004 fiscal year.



Other information

Subsequent events

Information on the Coronavirus pandemic handling in regards to the annual accounts

The Coronavirus epidemic broke out in China in December 2019. As of December 31, 2019, the World Health Organization (WHO) was reporting only a limited number of people infected with this virus. Following its subsequent spread, the WHO declared a health emergency on January 30, 2020. WHO classified the epidemic into a global pandemic on March 11, 2020

In France, the first measures were taken through the decree of March 14, 2020 for establishments open to the public.

On March 16, 2020, the French government has adopted the 2020-260 decree, which regulates travels in order to fight against the spread of the Covid-19 virus. A lockdown policy has been enforced throughout the territory from Tuesday, March 17, 2020.

In accordance with the provisions of article L 833-2 of the General Chart of Accounts, the entity's annual accounts as at 31/12/2019 were closed without any adjustment related to the Coronavirus pandemic.

The valuation of assets and liabilities only take into account the existed conditions at the year end, without the latests developments .

During the lockdown, RSF has maintained its activity. However, there were delays in the subsidies reception (sales of SEK to maintain cash) and a drop in album sales. Indeed, album n ° 63 was released shortly before confinement.

The COVID-19 consequences on RSF's operations cannot be assessed and reliable on the the financial statements closing date.

On the financial statements closing date by the association's Board of Directors, the management is not aware of significant uncertainties which question the entity's ability to pursue its operations.



Other information

Number of employees

Average number of staff : 42 persons.

Men Women Totalstaff

Full timeequivalent staff

16 22 38 38

1 3 4 4

ExecutivesEmployeesWorkperson

Total 17 25 42 42



Other information

Provision for retirement compensation

The collective agreement provides for retirement compensation but there is not any agreement signed. The commitments under this agreement have not been recorded in the books.The middle age of the employees on December 31, 2019 being 36.13 and their seniority 2.84 years, the retirement compensation value appears to be insignificant and is not valued on the financial statements closing date.



Off-balance sheet

Mortgage

Crédit Coopératif stands surety up to € 54 K on behalf of RSF.

The purpose of this surety is to cover album returns from the supplier "Interforum".

Off-balance sheet commitments are made up of the mortgage guarantee on the premises in rue Vivienne up to € 2,350 K according to the deed of sale.

Subsidies

Significant commitments related to multi-annual contracts:

Signed with SIDA : SWEDLISH INTERNATION DEVELOPMENT COOPERATION AGENCYA contract signed in early 2017 for 48 months (project starting in Jan 2017) : the maximum contractual amount of the lessor's contribution is SEK 42,800 KS (corresponding to € 4,447 K at the conversion rate on the date of signature of the contract), SEK 33,500 K were collected at the end of 2019.

For 2019 fiscal year, this contract contributed for € 1,014,000 to the association's resources.

Donations

Craig Newmark Philantropies :

Craig Newmark Philantropies Philantropies has pledged to donate 1.5 million USD over two years. RSF received 1 million

USD in July 2019.

Bank Guarantee


ACCOUNT OF USE OF RESOURCES FOR REPORTERS SANS FRONTIERES, 2019

USES in 2019 = Income statement

(1)

Allocation per use of resources collected from the

public, used in 2019 (3)

RESOURCES COLLECTED in 2019 =

Income statement (2)

Tracking of resources collected from the public and

used in 2019 (4)

Resources collected from the public not allocated and not used upon year commencement carried forward 0 T1

5 720 783 257 230 ST1 482 904 482 904 T2

3 543 063 257 230

1 RESOURCES COLLECTED FROM THE PUBLIC

1.1 Donations and legacies collected in France and abroad 482 904 482 9043 543 063 257 230 472 904 472 904

0 0

10 000 10 000

-Individual donations NOT allocated (including membership fees)

-Individual donations allocated

-Legacies and other gifts NOT allocated

-Legacies and other gifts allocated 0

1 SOCIAL MISSIONS

1.1 Conducted in France-Informative, advocacy, awareness-raising mission(conducted directly)

1.2 Conducted abroad 2 177 719 0 1.2 Other income related to the public generosity 0 01 632 248 0

545 471 0

-Direct support to journalists and media-Informative, advocacy, awareness-raising mission(conducted via local sections based abroad)

2. OTHER PRIVATE FUNDS 3 193 9326 200

554 287 225 674 ST2 1 403 972

225 674 225 674 413 827

164 488

-Auction sales

-Sponsoring and foundations

-Prizes (awards received)

-Publications and derivative products 1 369 934

164 125

2 760 728

450 736 0 ST3

3 SUBSIDIES AND OTHER PUBLIC CREDITS

4 OTHER INCOME 63 4077 067

50 000

2 FUND RAISING COSTS

2.1 Costs for appealing to the public generosity

2.2 Costs for searching for other private funds

2.3 Costs related to the application for subsidies and other public credits

3. OPERATING COSTS

Amount of resources collected and used during the year 482 904 T3 = ST1+ST2+ST3

Other proceeds (copyright, trip…)

RSF International recharging

Extraordinary financial income, previous year and transfer of charges 6 341

6 725 806 I TOTAL RESOURCES FOR THE YEAR POSTED IN INCOME STATEMENT 6 500 972

48 729 II WRITE-BACK OF PROVISIONS 404 499

0 III NON-USED ALLOCATED RESOURCES FROM PREVIOUS YEARS CARRIED FORWARD 0

IV CHANGE IN DEDICATED FUNDS COLLECTED FROM THE PUBLIC 0 T4

130 935 V INSUFFICIENT RESOURCES FOR THE YEAR

6 905 471 6 905 471 482 904

0 T5

0 T5 bis

482 904 482 904 = T6

0

281 576 Volunteering 0

Services in kind 275 376

0 Donations in kind 6 200

281 576 Total 281 576

=T2+T4

VI Reversal of allowances for depreciation of fixed assets funded from the first application of the policy using resources collected from the public

VII Total uses funded through resources collected from the publicT6

= T3+T5 -T5bis VI Total uses funded with resources collected from the public

Balance of resources collected from the public not allocated and not used upon year-endT7

= T1

+T2 +T4

-T6VALUATION OF VOLUNTARY CONTRIBUTIONS IN KIND

VI GRAND TOTAL

RESOURCES

I TOTAL FUND USES FOR THE YEAR POSTED IN INCOME STATEMENT

Social MissionsFund-raising costsOperating costs and other charges

USES

V GRAND TOTAL

V Share of acquisitions of gross fixed assets for the year funded through resources collected from the public

II PROVISIONS

III COMMITMENTS TO BE MADE ON ALLOCATED RESOURCES

IV SURPLUS ON RESOURCES FOR THE YEAR

Following the approval of Policy No. 2008-12 of the Accounting Regulations Committee, a new annual accounting model for resources and uses account should be prepared by associations appealing to the public generosity. In this respect, RSF shows an account for the use of resources prepared in compliance with regulatory provisions applicable for the year closed on 31 December 2019.

Resources (without profit or loss of the year and reversals of provisions) :

They amounted to €6 501 K in 2019 (vs €5 896 K in 2018)

The two main sources of funding for RSF in 2019 were derived from :

- Other private funds, particularly sales of publications and derivative products (mainly albums of

photographs) representing 21% of the resources of the year, showing a decrease in terms of

proportion vs. 2018 (25%)

- Resources related to subsidies and other public credits contributing to total resources up to 42%

vs. 53% in 2018

Subsidies and other public credits of the year mainly includrecç funds granted by the following

institutions : Sida, AFD, and the European Union via the IEDDH instrument.

Resources derived from the generosity of the public are decreasing and represent 7% of resources of

the year vs. 9% in 2018.

They include donations received from individuals from France and from aboard and from legacies

received. RSF has not received any significant legacies in 2019 and 2018.

Resources received from the generosity of the public in 2019 were used to :

- Cover the costs of fund-raising actions made possible by the generosity of the public

- Complete social missions

Corporate sponsorship and resources derived from projects funded by foundations which represented 12% of resources in 2018, represented 22% in 2019.

The prices received represent 6% of resources in 2019 (414 K€) compared to 0% in 2018.

Finally, other earnings represent 1% of resources vs. 1% in 2018. Those earnings mainly include the

repayment of part of premiums related to insurance policies subscribed by freelance journalists at the

insurance provider April through RSF, rebilling of services to the international organisation (RSF

International), financial gains (mostly foreign exchange gains), earnings from previous years and

transfers of costs.

Uses:

They amount to €6 726 K in 2019 (excluding provisions and profit or loss for the year (vs. €6 097 K in 2018)).

Social missions completed represent 85% of total uses of funds by Reporters sans Frontières in 2019,

i.e. €5 720 K vs. €5 188 K and 85% in 2018.

RSF’s social missions are of two types:

- Mission to provide information, advocate for causes, raise awareness, based on the activity ofresearch and publication centres, advocacy, communications from contacts and representativesof the organisation (approximately 130 worldwide) to denounce violations of the freedom toinform. Awareness is raised by a number of tools, including press releases, investigationreports, communication campaigns – in 2019, campaigns mostly focused on the world rating ofthe freedom of the press and also on the state of freedom to inform in some countries in

particular (including Turkey, Saudi Arabia and the JTI initiative in 2019).

This awareness-raising mission also involves the publication, three times a year, of albums of photographs which highlight the work of photo-reporters and the freedom of the press. Please note that in 2019 RSF was involved in training activities in 3 different areas : How to get round censorship on the Internet

How to practice journalism in difficult areas and conflict zones

How to practice journalism while covering elections.

The international sections of the organisation are also actively involved in this informative, advocacy, and awareness-raising action – particularly offices located in Washington, Brussels, Tunis, Rio de Janeiro, London, Taipei and Dakar. Costs related to the financing of these entities based abroad are therefore shown in the class of social missions carried out abroad.

- A mission of assistance and support to journalists, bloggers, media and organisations involvedas partners carried out by a specific department in the Operations Division. In 2019, grants weregiven to make it possible to exfiltrate threatened journalists, cover medical care expenses, legalcosts or essential products. In addition to these grants, the scheme designed to support mediainvolved in the most closed countries on the planet continued through the financing of RadioErena, a free and independent radio broadcasting from Paris to Eritrea.This scheme is mainly targeted at journalists, bloggers and media residing abroad and istherefore considered as conducted abroad.

Funds researches’ costs represent 8.2% of the uses of the year (7.5% in 2018) and include both:

- The cost of fund-raising calls made via paper-format campaigns and via the Website and

electronic mailings

- The cost for printing and sending Libre Court, a quarterly newsletter intended for members and

donators

- Costs related to the search for private funds and public subsidies (payroll costs and travels)

Finally, operating costs decreased by 6.7% of the uses of the year vs. 7.4% in 2018. That drop is mainly due to exchange losses that are less significant, recorded during the year (€33 K vs. €55 K in 2018), related in particular to subsidies contracts in foreign currencies.

Note on voluntary contributions: In 2019, RSF was given access to:

- Advertising spaces in the media free of charge to promote its action up to €207 K vs. €290 K in

2018

- Sponsoring in kind except for free-of-charge spaces for €69 K vs. €66 K in 2018.

- €6 K in kind donations (watches).

REPORTERS SANS FRONTIERES RSF...Reporters Sans Frontières Year ended December 31st, 2019 3...

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