8.3 Continuity Section

This section comprises the forecast for operations and the balance sheet for the next five years. The operational forecast is based on the multi-annual budget for 2022–2026, as approved on December 16, 2021. The balance sheet is based this budget as well, but it starts from the balance sheet at the end of 2021 according to the annual statement of accounts. The forecast for the number of enrolled students and staffing levels (excluding related parties) is presented in the table below.

Table 8.5 Forecast for number of students and staffing level

	2021	2022	2023	2024	2025	2026
Number of students	20,254	21,000	22,825	23,440	23,896	23,944

Staffing level (in FTE)
- Governance / Management	30	30	30	30	30	30
- Primary process staff	1,158	1,232	1,254	1,291	1,308	1,298
- Support staff	894	908	896	900	894	894
Total staffing level	2,082	2,170	2,180	2,221	2,232	2,222

Following controlled growth in student enrollment and an increase in externally funded research in recent years, Tilburg University aims to consolidate its market share of enrolled students.

Tilburg University pursues a multi-pronged financial policy. Available reserves will be used in various ways within the framework of Strategy 2027: to fund strategic innovations and quality improvements in education, investments to improve the student-to-staff ratio, and investments in research.

Due to the planned investments and the negative operating results, we will draw on the available reserves in a controlled manner until 2024.

Table 8.6 Forecast of income and expenses (in €1,000)

	2021 (Actual)		2022	2023	2024		2025		2026
Income
National government funding	173,152		191,120	177,708	185,310		191,133		193,351
Statutory tuition / course / examination fees	36,086		32,724	48,348	49,993		51,100		51,669
Income from work commissioned by third parties	49,037		53,972	55,353	56,679		58,339		60,255
Other income	10,220		10,377	9,091	9,630		9,804		9,997
Total Income	268,496		288,193	290,500	301,612		310,376		315,272

Expenses
Personnel expenses	199,640		219,020	222,489	228,286		232,454		233,958
Depreciation/amortization	14,084		15,220	15,374	15,908		17,621		17,505
Accommodations expenses	14,261		14,123	13,254	15,120		14,771		14,343
Other expenses	33,527		42,717	41,175	42,637		43,033		44,089
Total expenses	261,514	-	291,080	292,292	301,951	-	307,879	-	309,895

Balance of income and expenses	6,982		-2,887	-1,792	-339		2,497		5,377
Balance of financial income and expenses	-2,552		-411	-543	-553		-788		-820
Taxes	244
Results of participating interests	-6
Results of third-party shares	-62		9	-53	-95		-139		-215

Operating results	4,117		-3,289	-2,388	-987		1,570		4,342

Results broken down by
- deployment of school reserves	-2,773		-3,660	-1,554	-644		-375		-219
- deployment of division reserves	-1,019		-1,891	-501	23		23		23
- regular operations	7,909		2,262	-333	-366		1,922		4,538
	4,117		-3,289	-2,388	-987		1,570		4,342

The balance forecast for the planning period is presented in the table below.

Table 8.7 Balance forecast as of December 31 (Source: budget for 2022–2026, in €1,000)

	2021 (Actual)	2022	2023	2024	2025	2026
Assets

Fixed assets
Intangible fixed assets	1,627	1,271	916	561	206	-
Tangible fixed assets	153,209	162,349	176,733	181,570	210,602	222,804
Financial fixed assets	1,541	1,000	1,000	1,000	1,000	1,000
Total Fixed assets	156,377	164,620	178,649	183,131	211,808	223,804

Current assets
Receivables	21,692	24,987	25,901	26,673	27,447	28,208
Securities and Liquid assets	66,512	61,805	81,321	83,858	84,057	85,322
Total Current assets	88,204	86,792	107,222	110,531	111,504	113,530

Total Assets	244,581	251,412	285,871	293,662	323,312	337,334


Liabilities

Equity	143,927	140,637	138,249	137,260	138,829	143,172
General reserve	130,299	132,569	132,183	131,720	133,502	137,826
Special purpose reserve	12,920	7,369	5,314	4,693	4,341	4,145
Third-party share	707	698	751	846	985	1,200

Facilities	7,782	7,500	7,500	7,500	7,500	7,500
Long-term debts	-	-	35,000	40,000	67,000	74,000
Short-term debts	92,872	103,275	105,122	108,902	109,983	112,662

Total Liabilities	244,581	251,412	285,871	293,662	323,312	337,334

The value of the tangible fixed assets increased significantly due to investments in accommodations and IT. This is based on the current campus vision. A new campus vision including modern IT facilities will be developed in 2022. The decrease in intangible assets is due to the straight-line depreciation of goodwill at TIAS. The liquid assets will be used to intensify teaching and research.

Tilburg University does not have excessive equity and falls within the Tilburg University does not have excessive equity and falls within the signaling value of the Ministry of Education, Culture and Science (actual equity of €128 million, as compared to normative equity of €180 million).

The investments in accommodations and IT will be financed by new long-term loans totaling approximately €74 million. Provisions will decrease slightly in 2022, due to settlement of a few reorganizations.

As shown in the table below, Tilburg University’s financial resilience remains solid despite the operating deficits resulting from the intensification of teaching and research and the pre-financing of growth. The current ratio and solvency remain above the lower limits set by the University of 1.0 (0.8 allowed temporarily) for the current ratio and 0.4/0.425 for the ratio of Solvency 1 to Solvency 2.

Table 8.8 Financial ratios (consolidated)

	2021	2022	2023	2024	2025	2026
Current ratio	0.95	0.84	1.02	1.01	1.01	1.01
Solvency 1	0.59	0.56	0.48	0.46	0.43	0.42
Solvency 2	0.62	0.59	0.51	0.49	0.45	0.44