8.2 Continuity section

This section contains the operating and balance sheet forecast for the next five years. The operating forecast is based on the 2023 budget and the 2024-2027 multi-year forecast approved on December 16, 2022. The balance sheet is also based on that but starts from the balance sheet at the end of 2022 according to the financial statements. The forecast of student enrollment and staffing (excluding related parties) is shown in the table below.

Table 8.4 Forecast number of students and staffing level

	2022	2023	2024	2025	2026	2027
Number of students	19,931	20,500	22,223	22,675	23,126	23,478

Personnel in FTEs
- Board/Management	37	37	37	37	37	37
- Primary process staff	1,264	1,394	1,384	1,420	1,413	1,373
- Support staff	904	942	932	933	934	932
Total staffing	2,205	2,373	2,353	2,390	2,384	2,342

Following controlled growth in student enrollment and more externally funded research in recent years, Tilburg University aims to consolidate the number of enrolled students.

The budgeted negative operating results translate into a decrease in equity, in 2023 the main decrease is visible in line with the anticipated operating deficit of €9.9 million. With the current multi-year budget, Tilburg University's financial position remains healthy. Based on the signal value as used by the Education Inspectorate, there is also no question of potentially excessive public equity. The signal value for Tilburg University remains within the calculated standard of €188 million at €135 million.

Table 8.5 Forecast revenues and charges (amounts x €1,000)

	2022 (Realization)		2023	2024	2025		2026		2027
Revenues
Government contributions	196,694		210,143	214,076	221,297		226,243		221,361
Tuition fees	33,135		47,309	49,559	50,608		51,457		52,143
Revenues from work commissioned by third parties	50,826		54,945	58,312	60,521		62,063		62,291
Other Revenues	10,641		12,139	11,428	12,680		13,414		13,771
Total Revenues	291,296		324,536	333,375	345,106		353,177		349,566

Charges
Personnel costs	214,906		253,332	255,948	263,042		267,561		263,306
Depreciation	14,720		14,960	15,997	16,732		16,500		19,856
Accommodation expenses	14,064		20,224	15,594	18,411		17,272		17,353
Other Charges	41,032		45,688	45,517	47,046		48,536		48,487
Total Charges	284,721	-	334,204	333,056	345,231	-	349,869	-	349,002

Balance of revenues and charges	6,575		-9,668	319	-125		3,308		564
Balance of financial revenues and charges	-24		-	-263	-975		-1,800		-2,100
Taxes	147		168	200	265		260		249
Result of participating interests	4
Result third party share	-84		-14	-32	-70		-97		-132

Operating result	6,324		-9,850	-176	-1,435		1,151		-1,917

Result broken down by
- use of School reserves	-2,354		-1,394	-1,447	-848		-803		-299
- use of Division reserves	1,578		-6,344	-448	-299		3		23
- regular exploitation	7,100		-2,112	1,718	-288		1,951		-1,641
	6,324		-9,850	-177	-1,435		1,151		-1,917

Below is Tilburg University's consolidated balance sheet forecast. The planned investments, mainly for housing, will cause the balance sheet item of tangible fixed assets to increase in the coming years. These investments will be partially financed with loan capital, shown by the increase in long-term debt as of 2024, which rises to €54 million in 2027. A new campus vision including modern IT facilities was developed in 2022 for which the financial frameworks will be drawn up in 2023.

Table 8.6 Forecast Balance Sheet as of December 31 (amounts x €1,000) (source: budget 2023-2027)

	2022 (Realization)	2023		2024		2025		2026		2027
Assets

Fixed assets
Intangible fixed assets	1,272	917		562		207		-		-
Tangible fixed assets	152,256	171,342		179,564		199,402		223,411		229,619
Financial fixed assets	1,507	1,000		1,000		1,000		1,000		1,000
Total Fixed assets	155,035	173,259		181,126		200,609		224,411		230,619

Current assets
Receivables	21,729	22,809		23,849		24,708		25,473		26,049
Securities and liquid assets	98,091	61,378		61,777		65,443		65,718		66,536
Total Current Assets	119,820	84,187		85,626		90,151		91,191		92,585

Total Assets	274,854	257,446		266,752		290,760		315,602		323,204


Liabilities
			-		-		-		-
Shareholders' equity	150,327	140,477		140,300		138,865		140,016		138,099
General reserve	135,751	133,625		135,311		134,953		136,807		135,034
Earmarked reserve	13,784	6,046		4,151		3,004		2,204		1,928
Third party share	792	806		838		908		1,005		1,137

Facilities	7,702	8,500		8,500		8,500		8,500		8,500
Long-term liabilities	-			3,217		23,286		45,384		53,515
Current Liabilities	116,826	108,469		114,735		120,109		121,702		123,090

Total liabilities	274,854	257,446		266,752		290,760		315,602		323,204

The following table shows that Tilburg University's financial resilience remains solid despite operating deficits due to the intensification of education and research and planned investments in housing and IT. Tilburg University pursues active financial policies so that the ratios remain at least at the level of the standard value set by the university of 0.75 for the current ratio and 0.4/0.425 for solvency 1/solvency 2.

Table 8.7 Table of financial ratios (consolidated)

	2022	2023	2024	2025	2026	2027
Current ratio	1.03	0.78	0.75	0.75	0.75	0.75
Solvency 1	0.54	0.54	0.52	0.47	0.44	0.42
Solvency 2	0.57	0.58	0.55	0.50	0.47	0.45