SAT-7 will soon be operating a total of 18 legal entities in 12 different countries. SAT-7’s income growth was negative in 2017, however - as witnessed by this Annual Report - our ambitions and the scope of our operations continue to grow, across the organisation. We therefore continue to challenge ourselves to be even more efficient, despite the limited financial and human resources, to see these ambitions realised. 2017 FINANCES OVERVIEW Our total global income for 2017 was about USD 14.5 million, exclusive of gifts-in-kind of about USD 1.2 million. This was some 7 percent below the 2017 budgeted income (USD 15.6 million) and was down by 3 percent on actual income in 2016 (USD 15.0 million). SAT-7’s 2017 expenditures totalled USD 15.5 million, plus another USD 0.8 million, that was invested in fixed assets. This total expenditure was 6 percent below the 2017 budget (USD 17.4 million) and 1 percent above the total expenditure in 2016 (USD 16.2 million). Due to the delayed launch of the SAT-7 ACADEMY channel, few direct expenses for the channel were incurred during the first 8 months of 2017, helping to keep total SAT-7 expenditure in 2017 manageable. The rise in the value of the US Dollar (USD) had a material impact on the 2017 accounts, reducing the apparent value of income received in GBP and EUR and allowing more to be done with the USD income in countries like Egypt, Turkey and Cyprus. Overall, a favourably strong USD in 2017 helped SAT-7 get through what otherwise would have been a very challenging year. A DROP IN LIQUIDITY We started 2017 with a liquidity (including restricted funds) of USD 2.3 million. This helped facilitate cash management over the year. However, income was lower than projected and, consequently, this had a negative impact on our liquidity, which dropped to USD 1.5 million by 31 December 2017. INCREASE IN RESTRICTED FUNDS Over the years, SAT-7 donors and Partners have increasingly provided their support in the form of “restricted funding”- for specific projects, programs and items of capital expenditure. This has necessitated SAT-7 building up its capacity to manage the proposals and reports on such projects. We do thank God for the faithfulness and sacrificial support of our Partners and friends, and for the tireless efforts and good stewardship of our staff – all of whom helped maximise the impact of our resources in 2017. SAT-7  INCOME AND EXPENSES FOR 2017 SAT-7 ANNUAL INCOME 1996-2017 (2018 GOAL) Income goal 2018 $17,800,000 ANNUAL REPORT 2017 32