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FINANCIALSTATEMENTS

Approved by the Board of Directorsin the meeting held on 28/04/2014

2013


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INDEX

1. STATUTORY BODIES

2. REPORT OF THE BOARD OF DIRECTORS

2.1 Mission report

A. Identity, mission and values B. Internal organisation B.1 Governance and activity of the Bodies B.2 Operating Structure

C. Activity: processes under-wayD. Institutional activities: overall view

D.1 Break the Barriers Program D.2 Challenges Program E. Resources for institutional activities

3. FINANCIAL STATEMENT AS AT 31st DECEMBER 2013

4. NOTES TO THE FINANCIAL STATEMENTS

5. REPORT OF THE BOARD OF AUDITORS

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06_

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The nancial statements consist of the BalanceSheet, Income Statement and ExplanatoryNotes. It is also accompanied by the directors’report which is divided into two sections:

A) MISSION REPORT

B) ECONOMIC ANDFINANCIAL REPORT

STATUTORYBODIES

STRUCTURE OFTHE FINANCIALSTATEMENTSFOR THE 2013FINANCIAL PERIOD

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REPORT OFTHE BOARD OFDIRECTORSDrawn up by the board of directorson 28/04/2014.

The Board of Directors of theAndrea Bocelli Foundationis pleased to present thereport of its activities and the

nancial statements for 2013.The nancial statements wereprepared in accordance withthe recommendations of theCommission for Non Pro t

Organizations of the NationalCouncil of Certi ed CharteredAccountants.The nancial statements weredrawn up in accordance withthe provisions of the ItalianCivil Code for companiestaking into account thefeatures which distinguish

the Foundation as well asthe principle of transparency,which requires the Foundationto give information about theprocedures through whichresources were acquiredand used in the individualmanagement areas in theyear of reference.

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“Dear friends,2013 has provided me with a certain satisfaction in theartistic eld. However, there is one thing that makesme prouder than any other which I wish to share withmy friends: this jewel is called ABF, it shines thanks to ateam of whom I am sincerely proud.I love remembering that the Andrea Bocelli Foundationis a tangible demonstration of a concept which is verydear to me: that the most explosive testimony, bypeople of good will, is consistency, or behaviour thatis in line with our own principles. What matters arepositive examples, concrete actions outperforming anystatement of intent.Every effort has its essential weight: ABF is a liveworkshop, where even the smallest contribution isappreciated. Without the formidable staff which movesits heart, without a small army of wonderful volunteers,and above all, those that, in the world, continue togrant me their trust, working side by side with me in thisadventure, without all of this, nearly nothing of all thathas already been done, would have been able to occur.Operational since 2012, the Foundation has alreadyrealized a number of speci c projects. Programmesaimed at overcoming barriers generated by poverty,disability, social exclusion, relying on the involvementof pro les of excellence such as Nobel Prize winnerMuhammad Yunus and joining hands with leading-edgeuniversity and research institutions in the world.2013 saw strong and direct contact between ABF andthe Island of Haiti: projects such as the “Water HealthEducation Action Time Project” contributed to theprimary needs of this wonderful but unfortunate land,with eighteen thousand litres of water distributed tothose in need, but also with the realisation of streetschools for approximately 1,200 children, who werepromptly provided with food to sustain their families.2013 was the year in which ABF, following the appeallaunched by Pope Francis, collaborated with theUNHCR (United Nations Refugee Agency), supportingthe purchase of basic necessities for refugee campsthat are home to millions of S yrian refugees forced toleave their homes and their lives due to the prevailingsituation in their country.

2013 was also the year in which the “The Fifth Sense”(vision assistance project, in collaboration with MIT -Massachusetts Institute of Technology of Boston), madesigni cant progress: last December I had the pleasureof personally participating in the workshop set up inBoston by ABF in collaboration with the MIT, thus beingable to verify the stimulating potential which emergedduring the workshop days. Results were obtained asa result of the fantastic synergy that we generated, inrelation to the development of innovative solutions toassist people to overcome the limits imposed by theirdisability, and speci cally to restore independence ofmovement to the blind.In short, dreams can become reality, if we really believein them, and if we are many to dream.... And ABFdemonstrated that it is able to energetically respond tothat principle that daily moves our actions: leaving ourchildren a better world.

Being optimistic is a moral duty, as well as being amedicine. The world belongs to those who do, to thosewho are passionate about life, to those who choose tobe on the side of good, without fear of getting involved.Because, as St. Francis said, “giving yourself youreceive, forgetting yourself you nd yourself”.In closing I would like to cite the words of St. Francisof Assisi, who inspired Pope Bergoglio, who took hisPonti cal name. Holy Father that, in June 2013, receivedmy family at a private audience, as well as the leadersof ABF, and who benevolently follows our enthusiasticefforts, in this philanthropic dream that has, thanks to allof you, become a reality.“

Andrea

Letter from the Founder OUR WORLDBELONGS TO THOSE WHOCHOOSE TO BE ON THESIDE OF GOOD

AND ARE NOT AFRAID OF

TAKE RISKS

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Letter from the President

Thanks to Fabio Vettori for his kind permission to use the image(www.fabiovettoriartista.it)

“This document represents the work carried out by theAndrea Bocelli Foundation, in its second year of life andis aimed at sharing the results achieved both in qualitativeand quantitative terms with our stakeholders, and brie ydescribes the objectives pursued and the reasons for thechoices made.2013 has represented the year of awareness of what afoundation such as the ABF, a “workshop institution”,may generate in terms of social capital and direct resultsregarding scienti c eld challenges and those regardingthe ght against poverty.It has been the year in which we have understood thatcombining, speaking for those who do not have a voicein the collection of material resources that can makea difference, is the road that must be travelled by aFoundation like ours, that represents an intermediary atthe service “of those working in non pro t organizations”and Institutions, in order to try and alleviate the sufferingof children and improve the quality of life of many.This awareness, together with unimaginable results, makesus responsible and obliges us to commit to adjust ourorganisation to all this.The month we spent in Boston, welcomed by our partnersat MIT, gave us the opportunity to involve some ItalianUniversities opening partnership channels and commonefforts to talented young people and teachers.The extraordinary operation of the young people of Haitiin streaming from MIT makes us responsible for constantdialogue and integration between research and work

in the eld, between those who study and those whoevaluate the operations and those who manage dailyemergencies.This network of relationships and connections that ABFhas promoted and made possible is a solid, robustand concrete basis that is generating and will generateimportant and innovative solutions; all this cannot bemeasured in economic and nancial terms, but is pricelessin terms of opportunities and creation of social capital.The days we spent in Haiti with our partners of theSaint Luc Foundation allowed us to see that the vision,determination together with the organisation and teamwork make the difference even in a context like that andare the key to being able to save lives and to generatedevelopment.I thank each of you, every individual small drop thathelped the Foundation as a whole and its ambitious work.I would like to thank Andrea, precious driver and coachof our team, our Deputy President, Veronica irreplaceableambassador of ABF in the world, the Bocelli family: fromlittle Virginia to mum Edi, all those involved in supportingevery action from the smallest to the largest.In closing I will try to summarise my words with an imagethat a dear friend of mine, a cartoonist, gave us torepresent the live workshop that we are building with you.Ad Maiora together.”

Laura

A VISIONARY IMAGINATION, DETERMINATION, AND WELLORGANIZED TEAMWORK ARE THE KEYS TO CREATINGPROGRESS AND SAVING LIVES

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MISSION REPORT

The Andrea Bocelli Foundation was establishedthrough a notarial deed by Notary SergioNapolitano in Pontedera on 12/07/2011, by thewill of its one subject Founder Andrea Bocelli.In accordance with the Articles of Association,the Foundation may use the title “AndreaBocelli Foundation” (ABF).The Foundation was granted legal status by thePrefecture of Pisa, Italy, on 12/10/2011. Sincethat date, it has been registered in the Bookof Legal Persons, Volume VI, no. 46, at theaforementioned Prefecture of Pisa.The Andrea Bocelli Foundation was establishedto enhance the value of relationships, theexchange of emotions, that bond of trust thatAndrea has created over time; it was born fromthe desire to create a strong relationship withpeople, a circle of individuals that can join theirstrengths and resources so that other people,who nd themselves in dif culty, can assertthemselves beyond all limits, socially, culturallyor personally.Over the years and confronting with manynational and international realities, Andrea hasbecome aware of the value that a committed,focused activity can have, that does notexhaust resources, but targets them to obtainresults which, even if small, are innovative,effective and long lasting.

Vision“It is by faith in love and justice that we arecalled to build a better world than we found,called to give back to the world the goodthat we had, so that even the less fortunateor weaker can be given the opportunity ofa lifetime full of chances and beauty, andthose who deserve it can nd true energy andoccasions to give the best of themselves”.Andrea BocelliThis is the belief that has led us to create theFoundation; making of it a living laboratory,a support column made up of many playersconnected by a passion for music who, from

every part of the globe, join together againstextreme poverty in developing countriesaccepting major challenges in the socialscenario and scienti c research.This statement represents the Founder’s vision,which forms the basis for the development ofits mission and is backed by some of the valuesidenti ed by the Founder himself and by theBoard of Directors as essential.

ValuesCourage to believe in small and large changesthat we can implement and begin somethingtrue; the courage to have and give trust.Care or taking care of people that arearound us, noticing their discomfort or theirunexpressed strength.Concreteness, working to provide real,tangible, measurable solutions to the problemswe are faced with.Competence, a fundamental element so thataction can be carried out with responsibilityand professionalism and is therefore useful andeffective.Cooperation means to establish positiverelationships between donors, the Foundationand bene ciaries, bringing together wantsand needs through humanitarian collaborativeactivities, so that anyone, big or small, canparticipate and contribute with human, materialand economic resources

The key value that summarizes our 5Cs isTRUST: trust which we inspire, which we ask for,which we give and which we experience.

A. IDENTITY, MISSION, VALUES

MissionAndrea Bocelli Foundation’s institutional missionis to help people in dif culty, as a result ofillness, disability, poverty conditions and socialexclusion, promoting and supporting nationaland international projects as well as encouragingfull self-expression and breaking barriers.The Foundation is committed to ensuring thatevery individual and community can expressthemselves to their full capabilities and beyondtheir limits. The Board of Directors has decidedto carry out the mission through the creation oftwo Programs:

The Break the Barriers Program aims tosupport and promote projects that in particularassist the populations of developing countries,and in any case those situations of poverty,illness, and complex social problems thatinvalidate or reduce the quality of life.

The Challenges Program aims to bring togetherthe best minds to nd innovative solutions tohelp people cope with and overcome the limitsimposed by their disability/discomfort.This program will therefore support projects inthe eld of scienti c/technological research andsocial innovation.

The Foundation, as a private legal personorientated towards the pursuit of socialutility purposes, plays a complex role, whosepeculiarity is to give support to the planningcapacity of Private Bodies or national andinternational public institutions, and to act asa catalyst of the existing actors and resourcesthrough the trust which is granted to theFounder by many individuals and institutions.The Foundation’s activities can be summarized asfollows:

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Map of stakeholders

In addition to internal stakeholders (operationalstructure being established and statutorybodies), the Foundation identi es in ThirdSector organizations and national andinternational institutions its stakeholderswith whom it constantly communicates andconfronts as to the choice of the projects to

nance as well as monitoring and evaluatinginitiatives, never forgetting however the

importance of the network of partners withwhom the Foundation is already establishingrelations and initiatives, especially in the start-up phase. While setting up the foundationand identifying its activities, we haveprepared a composite and complex map ofstakeholders, consisting of crucial players forthe achievement of the mission objectives.

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B1. GOVERNANCE AND ACTIVITIES OF THE BODIESAccording to their functions as outlined in the Articles of Association, the Foundation’s work iscarried out by the following bodies: Board of Directors, Advisory Board and Board of Auditors.The Board of Directors is made up of 3 to 5 members, one of whom serves as President, andholds of ce for three nancial years. The rst Board of Directors and its President were appointedat the time of incorporation directly by the Founder. Hence, with approval of these nancialstatements the appointed bodies will reach expiry.The powers of the Board pursuant to article 9 of the Articles of Association are as follows: - de ne the foundation’s general guidelines, within the objectives of the activity

referred to in Article 2 of these Articles, and approve the action programs preparedannually;

- approve the budget and nal account; - approve, where appropriate, the regulation relative to the organization and functioning

of the Foundation; - establish the membership criteria; - have the power to deliberate on more categories of Members also in relation to the

Foundation projects, as well as the extent and duration of participation; - approve, where appropriate, the Regulation for the breakdown of participants by

category of activity and participation; - appoint the Foundation’s President through internal selection on the Founder’s proposal; - appoint the Deputy President through internal selection; - appoint Advisory Board members; - appoint, as appropriate, the Director General, from a selection of people with speci c

skills and expertise; - appoint the members of the Board of Auditor; - approve any statutory changes; - approve the sale and purchase of any real estate, the acceptance of donations, either

charitable or related to inheritance; - vote on the proposal to the competent Authority for the dissolution of the Foundation

and the transfer of the assets. In the latter case, the quorum for deliberation will in anycase require a quali ed majority voting;

- delegate the executive functions of its decisions to the President or its members, forthe purpose of better management effectiveness;

- any other useful activity for the proper functioning and management of the Foundation.

The Advisory Board pursuant to art. 17 of the Articles of Association, is the Foundation’sadvisory and guarantee body and is composed of a minimum of 3 members chosen by theBoard among experts in the elds of the Foundation’s activities.

B. INTERNAL ORGANIZATION In particular, the Advisory Board, has the task of: - studying, developing and assisting the Foundation’s strategies and programs; - work together to de ne the Foundation’s guidelines and possible areas of

development; - to support, in an advisory capacity, the Board of Directors in the Foundation’s ordinary

and extraordinary management; - prepare a periodic report on the Foundation’s activity, to be submitted to all the

Foundation’s stakeholders.

It is currently composed of 5 members linked to the Foundation’s two programs.Prof. Yunus, Mr. Jameel Latif and Prof. La Ferrara, are connected to the program concerning the

ght against Poverty. - In 2006 Prof. Yunus was awarded the Nobel Peace Prize for the development of

micro-credit with Grameen Bank; in addition to this, for some time now, he has beenspreading his concept of social business as a business model to ght poverty;

- Mohammed Abdul Latif Jameel, besides being a successful entrepreneur, supportsmany important philanthropic initiatives around the world. In particular, he is an MIT(Massachusetts Institute of Technology) Board of Directors member and founder of JPAL(Jameel Poverty Action Lab), a world famous institution for the impact assessmentof social politics of governments and international cooperation projects and withwhose collaboration in 2013 we created the workshop in Boston;

- Prof. Eliana La Ferrara is a Professor in Development Economics at Bocconi University.Furthermore, she collaborates with other foreign universities such as MIT and World Bank.

The Challenges Program, on the other hand, is covered by Prof. Laura Giarrè who is a ControlSystem Professor at the University of Palermo. Prof. Giarrè is the scienti c director of ABF’s FifthSense Project.Finally, the last member of the Advisory Board is Mr. Antonio Danieli, an engineer who is currentlythe Golinelli Marino Foundation Director, and former director of the Nomisma Foundation.A management engineer, he supports the Foundation’s organizational development.

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In 2013, the events of the corporate bodies can be summarized as follows:

The Board of Auditors, pursuant to art. 18 of the Articles of Association, is the controlling bodyof the Foundation’s management and organization, participating, without voting r ights, in allthe meetings of the bodies. It is chaired by the Chairman of the Board of Auditors. It consists of3 members chosen from among chartered accountants enrolled in the register of Auditors.

The members of the Advisory Board were involved in individual areas of interest to study anddetermine operational guidelines.A priority for 2014 will be organizing the bodies’ activities in the best possible way as theyrepresent the Foundation’s strategic driving force and determine its development.The Board of Directors, in fact, will meet at least 4 times a year to decide on: FinancialStatements; review and veri cation of the mission report, and the achievement of pre-setobjectives, fundraising and investments, activity programming.An expansion of the Advisory Body will be sought possibly changing the Articles of Associationand, jointly with the formation of a Scienti c Committee of Honor composed of distinguishedmembers, the 3 work groups will be set up to provide operational support to the decisions ofthe Board of Directors in 3 areas:1. Institutional Activity: selection, monitoring, project evaluation;2. Fundraising and Development activities;3. Support in the eld of investment, nance and taxation.

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B.2 OPERATIONAL STRUCTUREAs of 31/12/2013, operational powerswere entrusted by the Board of Directorson 25/07/2011 to the President, with theoperational support of Counsellor AlbertoBocelli.The Advisory Board’s appointed membersprovided major support in the identi cationof the development strategy as well as theindividual activities and projects to endorse.Professionals and companies worked on avoluntary basis and offered their pro bono workboth for the establishment of the Foundation’sorganization and its institutional activity.During 2013 the Foundation renewed the workcontract with the employee recruited during2013, entering into a project secondmentcontract for the event in Boston.The rest of the operations are supported by agroup of voluntary staff.A secretariat and external relations of ceopen to the public every working day wasestablished. With reference to communication,material has been produced with the of cesand dissemination has been taken care of by anoutsourced press of ce.In addition to this, the accounts are maintainedby an external of ce that also provides forthe drafting of the nancial statements, incompliance with tax obligations, consulting ontax matters.

Projects in this start-up phase are followedby the President and body members, withthe support of the secretariat and a group ofvolunteers.The objective for 2014 as mentioned in the2014 Programming Document, will be to adjustthe operational structure to the activity and theposition reached by the Foundation.The acquisition of speci c professional skillsin the Third Sector, in the administration andfundraising sector are necessary for the creationof a team able to lend support in order todevelop a fundraising plan and a multi-year planof activities and fundraising.Expansion of the volunteer group and possibleinternships in collaboration with Institutions andUniversities will be evaluated.As soon as the organization is adjusted, aninformation system will be purchased forthe management of donations as well as themanagement of projects and contacts withstakeholders.A crucial goal to be pursued will be the creationof a team made up of employees, collaborators,external suppliers, volunteers having as acommon denominator the target of workingtogether: trust, transparency and teamwork.Below the hypothetical organizational structurefor the functions to be realized for 2014.

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C. ACTIVITY: PROCESSES UNDER-WAYThe Andrea Bocelli Foundation has so far operated and will operate according to threemethods:1. support for projects submitted by or designed with national and international institutions orbodies, an activity which represents the Foundation’s core ;2. philanthropic activity in various capacities, in line with the Founder’s vision and values;3. institutional relationships, opportunities for analysis and actions in partnership initiatives inline with the Foundation’s vision and mission.

Parties eligible for nancingThe resources provided by the Foundation, apart from those used for actions of internalorigin referred to in points 2 and 3, may only relate to, as required by the Articles, Non Pro tOrganizations and national and international institutions, as the Foundation is not allowed toprovide resources directly to individuals.

Following the Strategic Plan and the setting of objectives and the annual budget, theresponsibility of which is divided jointly between the Board of Directors and the AdvisoryBoard, the receipt, investigation and evaluation of the projects took place throughout theyear. The Board of Directors has decided on a quarterly basis which projects to support in linewith the Foundation’s mission. An important aspect of the work ow, which will be increasinglyimplemented, will be the measurement and assessment of the projects effects as against theobjectives that are proposed.

Already in 2011, even before the establishment of the Foundation and together with thosewho were then appointed as members of the Advisory board, research and analysis had beenperformed on projects included in the Foundation’s programs and in the Founder’s intentions.The projects were selected and one of these, that was considered to be very important, waschosen as the rst project to be undertaken which also continued during the whole of 2013:The Fifth Sense Project.In 2012, in addition to the projects mentioned above, we received and evaluated projectspresented to us through direct contact and website.

In particular, during 2013 a partnership for projects was institutionalized with the Saint LucFoundation of Haiti, with whom the Founder already had long term relations. Such partnershipwas established in virtue of said friendship and trust the Founder has in Father Rick Frechette,soul and director of the Haitian organisation.

The work process: support for projects

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The Challenges Program aims to bringtogether the best minds to nd innovativesolutions to help people cope with andovercome the limits imposed by theirdisability/discomfort.The Foundation supports therefore scienti c

research projects, innovative and originaltechnological or social actions that allowpeople experiencing illness or social/economicdif culty to overcome or at least improve theirconditions. The projects supported in 2013 areshown in the table below.

The amounts approved and allocated were recorded according to the exchange rates prevailing on the date on which they arose.


Total disbursements as of 31/12/2013 divided into action programs are as follows.

Amount approved for Challenges program

Fifth Sense project

ABF MIT Challenges workshop

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D1.

BREAK THEBARRIERSPROGRAM“The BREAK THE BARRIERS program - Fight against poverty” aims to support and promote projects assisting weaker groups in Italyand in developing countries, where situations of poverty, illnessmalnutrition and complex social problems invalidate or reducethe quality of life.

The Foundation wants to promote actions to support health,education and social integration, and wants to do thisdirectly by measuring, where possible, the impact of itsactions in order to continuously improve them.ABF in this program for the year in progress haspredominately worked in Haiti.

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PROJECT NAME: W.H.E.A.T. Project

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PROJECT NAME:BREAK THE BARRIERS/WORKSHOP 2013

The workshop contents can be consulted on the website www.abfmit.com and on the Foundation’s YouTubechannel.

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PROJECT NAME:SACRO CUOREPRE-SCHOOL

PHILANTHROPIC ACTIVITY MONITORED BY FOUNDATION

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INITIATIVES AND PARTICIPATIONHAITI MISSION

June 2013

TENTH ANNIVERSARY CELEBRATIONSFROM THE BIRTH OF JPAL - BOSTON7th December 2013

In June, the Foundation went on a missionto Haiti to monitor the projects achievedthrough the contribution of Maestro Bocelliin the years before the establishment of ABFand to visit the Neonatology Ward of the St.Damien’s Children’s Hospital, of which theFoundation has been a supporter thanks tothe contribution allocated through the VirginiaProject in 2012. In addition, the Foundationhas initiated direct contact with those wholater became the ABF’s project partners inHaiti: Saint Luc Foundation.Prior to the establishment of the ABF, MaestroBocelli came to know the situation in Haiti byworking with the Francesca Rava NPH It alyOnlus Foundation, which in Italy represents

the Nuestros Pequenos Hermanos (NPH)organization. Through this collaboration theMaestro became aware of the work carriedout by Father Rick Frechette, doctor andpriest who has been working in the front linein Haiti for 27 years. Because of his work andwith the young Haitians who have grown upwith him in the NPH orphanages, the SaintLuc Foundation was founded in 2010, aninstitution guided solely by Haitians, whichspeci cally dedicates itself to the education,medical care and solutions to provide adigni ed life even in poverty for the Haitians.Saint Luc operates not only in Port-au-Princebut also in more remote areas of the island.

On 7th December, the Foundation, in theperson of the President and a delegation ofthe project partners in Haiti, took part in thecelebrations for the Tenth Anniversary of thebirth of J-PAL. The day was held in Boston,

at the Auditorium of the MassachusettsInstitute of Technology. During the day, J-PALresearchers from different parts of the worldtook turns on stage, detailing their researchand relative results achieved.

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The “CHALLENGES” programoperates within the area of scienti cand technological research and socialinnovation, accepting major challengesin terms of both investments and resultsto be achieved in the willingness to allowanyone who experiences economic or social

dif culties to express themselves.The Program aims to bring together thebest minds to nd innovative solutionsto help people cope with and overcomethe limits imposed by their disability ordiscomfort to achieve a better quality of life.

D2.

CHALLENGESPROGRAM

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PROJECT NAME:FIFTH SENSE

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PROJECT NAME:CHALLENGES/WORKSHOP BOSTON 2013

The workshop contents can be consulted on the website www.abfmit.com and on the Foundation’s YouTubechannel.

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INSTITUTIONAL ACTIVITIESBOSTON MISSION

June 2013The Foundation in the person of its Presidentvisited MIT in June 2013 to meet theresearchers involved in the 5th Sense Projectand evaluate the projects progress. Duringthe meeting were shown the instruments and

results obtained after months of study andwork carried out by the team were shown.Prof. Teller paid particular attention to theresults achieved with indoor navigation andtouch screen.

The Foundation was received at a privateaudience by the Supreme Pontiff, in a sittingroom in Casa Santa Marta at the Vatican.The meeting, which lasted about an hour,touched on the conspicuous commitment thatthe Foundation is making to support nationaland international projects aimed primarily at

ghting poverty (now an urgency that doesnot pertain only to developing countries), assolidarity is the only intelligent response to

inequality. Pope Francis received as a gift aHaitian fer forgé made with recycled metal,simple, but of great symbolic signi cance forthe work that ABF is doing. Pope Bergogliodeeply discussed the Foundation’s operationsin Haiti, in his opinion the Country is a symbolof poverty which destroys the dignity of theindividual. He then invited the Foundation tocontinue to operate in that country.

MEETING WITH POPE FRANCISVatican City - 26th June 2013

INITIATIVES AND PARTICIPATION

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FUNDRAISING INITIATIVE TEATRO DEL SILENZIOLajatico - July 2013The Foundation organized a fundraisingcampaign also for the Teatro del Silenzio2013 edition, aimed at supporting theWHEAT project for Haiti. With approximately35 volunteers and two dedicatedworkstations, the ABF was present at the

two evenings presenting their activities andinitiatives to concert guests. The occasion wasalso important to report on results achievedwith the TDS 2012 fundraising campaign.

FIRST ABF VOLUNTEER’S DAYLajatico - September 2013The Foundation organized a day dedicated tothe volunteers who each year decide to donatetime and their work to the Foundation.

The Founder and the President took theopportunity to thank everyone for their

valuable contribution in supporting the activitiesof the organisation and for the belief in acommon path.

For his humanitarian spirit that gave birthto the Foundation, Andrea Bocelli has beenawarded the Humanitarian Award from theLions International Foundation for this reason:“To Andrea Bocelli because his foundationis working to ght poverty in DevelopingCountries. It operates trying to ght disease,illiteracy and social exclusion throughcloseness and economic support.In addition, his Foundation supports a team of

MIT researchers who are developing wearabledevices for people who are blind or visuallyimpaired, a theme dear to the Lions aroundthe world.”The International Rotary Foundation, sharingthe aims of the ABF, has made the sum of US$250,000.00 available for projects in Haiti andfor the challenge towards independence ofthe blind.

HUMANITARIAN AWARD

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For its scienti c and cultural value, t heMinistry of Foreign Affairs has inserted theWorkshop organized by the Foundation andby the Massachusetts Institute of Technologyin the of cial program of the celebrationsfor the Year of Italian Culture in America thattook place throughout 2013 and in whichrepresentatives of Italian companies and

institutions participated.To celebrate the partnership ABF-MIT andat closing celebrations for the Year of ItalianCulture in America, the Italian Ambassador inWashington Claudio Bisogniero introducedthe works and was present on the day.

ABF AND THE CELEBRATIONS FOR THE YEAR OFITALIAN CULTURE IN AMERICA

EVENING IN HONOUR OF THE PARTNERSHIP MIT-ABFBoston - 6th December 2013The President of MIT (Massachusetts Instituteof Technology), Prof. Rafael Reif, organized anevening of honor at Grey House to celebratethe partnership established between theInstitute and the Foundation as well as thetenth anniversary of the birth of J-PAL.During the evening, which was attended by

leading members of the three institutionsas well as by the most important supportersof MIT, Prof. Teller (5th Sense Project) andProf. Esther Du o (J-PAL), respectively, havediscussed the objectives of their work andachievements as well as those expected.

Reasons for the award: Laura Biancalani isPresident of the Andrea Bocelli Foundation,which was founded to help people in needdue to illness, disability, poverty and socialexclusion through the promotion and supportof national and international projects. “Arno” ispleased to confer the solidarity award for havingdemonstrated through her determination and

tenacity that happiness is the right of everyhuman being and thus should be ardentlydefended. Your unwavering commitment andextraordinary strength are a source of pride andan example for our country but they are also amessage that you know how to proudly conveyto the world.

ARNo AWARD FOR SOLIDARITY TO LAURA BIANCALANIIN HER CAPACITY AS THE PRESIDENT OF THE ABFPisa

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B.1. DONATIONS RECEIVED FROM CAF AMERICA/ CHARITY AID FOUNDATIONThe Andrea Bocelli Foundation, with effect from 14/01/2013 to 14/01/2015, after a duediligence carried out by the CAF America’s Eligibility Committee, has been deemed eligible toreceive donations from CAF America, an organization that allocates donations worldwide, thushelping organizations, companies and individuals to donate without borders.In 2013 the Foundation received the following donations from CAF America.

C. CHARGES FROM CONTINGENCIES

B.2. OCCASIONAL FUNDRAISING COLLECTIONEven in 2013 the Foundation has carried out an occasional funding collection during the Teatrodel Silenzio event; net funds collected amounted to Euro 5,712.05.For further details concerning the operations refer to reports pursuant to Article 20 of thePresidential Decree 600/1973 as amended by Article 8 of Legislative Decree 460/1997annexed to these Financial Statements (Annex no.1).

Amount approved for programs

Amount allocated for programs

Challenges program

Break The Barriers program

Challenges program

Break The Barriers program


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D. CHARGES FOR THE PERFORMANCE OF THE ACTIVITY AS AT 31/12/2013Total charges for the performance of the activity of the Foundation were 65,534.00, of which for:

Pro t is equal to Euro 835,652.00. The Board of Directors in view of the resolution passedduring 2013 for the EDU project (Euro 178, 449.39), for the UCLA project (Euro 36,273.94), forthe 5th Sense Project (Euro 90,684.86) proposes to allocate the remaining part to increase freefunds at the disposition of the institutional activity.

Article 8 of Legislative Decree 460/97 introduced a legal obligation for non-commercial entities, to individuallyand analytically report on the nancial operations connected with the activity carried out at the public collectionof funds, in a “special and separate report” (within four months from nancial year close). Please note that taxexemption of the funds collected occurs on the condition that it is an event, awareness campaign, etc.).

Cost incidence on activity revenue

Income for ABF activities

Total taxes

ANNEX 1

Report of occasional collection of fundsTeatro del Silenzio - July 2013

Date: 25th October 2013

www.andreabocellifoundation.orgHeadquarter: Via Volterrana 49, Lajatico (Pisa) Italia

Tax Code n°: 90049390504Registration in the Book of Legal Persons, Prefecture of Pisa: Volume VI, n.246

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BYOURSELVESWE CAN ACHIEVE ONLY SO

MUCH,

BUTTOGETHER THERE ARENO LIMITS

65 4


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BALANCE SHEET LIABILITIES 31/12/2013 31/12/2012

A) Net assets I. Free capital

1) Operating pro t from previous years2) Statutory reserves3) Other…..

II. Endowment fund

IX. Operating pro t for the year

399,283

2

100,000

835,652

57,767

(1)

100,000

341,517

Total net assets 1,334,937 499,284

B) Provisions for risks and charges

C) Employee severance indemnities

D) Payables4) Advances5) Payables to suppliers6) Tax liabilities7) Payables to social and welfare agencies8) Other payables

4,3822,5651,7011,722

2,131

5,5412,3431,4481,558

434

10,370 10,890

E) Accruals and deferrals

Total liabilities 1,347,438 510,608

FINANCIALSTATEMENTSAs at 31/12/2013

BALANCE SHEET ASSETS 31/12/2013 31/12/2012

A) Receivables from shareholders forpayments still (of which already called up)

B) Fixed assetsI. Intangible assets

- (Amortization) - (Write-downs)

II. Tangible assets - (Amortization) - (Write-downs)

III. Financial- (Write-downs)

6,8321,329

5,503

3,632 363

3,269

Total Fixed Assets 5,503 3,269

C) Current AssetsI. Inventories

II. Receivables - within 12 months - over 12 months

III. Financial assets not held asFixed assets

IV. Cash and Cash Equivalents

793

32 793

1,340,670

32

32

507,156

Total current assets 1,341,463 507,188

D) Accruals and deferrals 472 150

Total assets 1,347,438 510,607

MEMORANDUM ACCOUNTS 31/12/2013 31/12/2012

1) Risks taken on by the companySureties

due to subsidiariesdue to associated companiesdue to parent companiesdue to subsidiary companies from parent companies

due to other companies

Guaranteesdue to subsidiariesdue to associated companiesdue to parent companies

due to subsidiary companies from parent companies due to other companies

Other personal guaranteesdue to subsidiariesdue to associated companiesdue to parent companies


Collateraldue to subsidiariesdue to associated companiesdue to parent companies


Other risks receivables transferred with recourse

other

2) Commitments taken on by company 306,891306,891

3) Third party assets held in the companygoods-in-processproperty held by the company under deposit or loan for useproperty held by the company as pledge or security depositother

4) Other memorandum accounts

Total memorandu m accounts 306,891

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NOTESTo the nancial statementsclosed at 31/12/2013CRITERIA FOR PREPARATIONWith reference to the Italian Civil Code that does not contain provisions on the nancialstatements of associations, foundations and other non pro t organisations but merelyindicates that these entities should convene at least once a year for their nancial statementsapproval (Article 20), in preparing this document the provisions issued by the National Councilof Certi ed Chartered Accountants were complied with. The Council developed somerecommendations and emanated the accounting standard no.1 regarding the preparation and

presentation of nancial statements of non pro t organisations and the Articles of Associationof the Foundation.

CRITERIA FOR EVALUATION(Ref. art. 2427, rst paragraph, no. 1, Italian Civil Code)The evaluation of the nancial statement items was made based on general criteria ofprudence and competence in view of continuing the activity.The application of the principle of prudence involved the individual evaluation of thecomponents of the single entries or items for assets and liabilities, to avoid offsetting lossesthat should have been recognised and pro ts not recognised as unrealised.In accordance with the principle of competence, the effect of transactions and other events wasaccounted for and allocated to the year to which such transactions and events are related, andnot to the year in which the associated cash movements (receipts and payments) are nalised.The continuity of application of the assessment criteria over time is necessary for the purposesof the comparability of the Foundation’s nancial statements in the various nancial periods.The evaluation applied allows the representation of transactions according to the economicreality underlying the formal aspects.

EXEMPTIONS(Ref. art. 2423, fourth paragraph, Italian Civil Code)There were no exceptional circumstances that required the use of exemptions under Article2423, paragraph 4 of the Italian Civil Code.In particular, the evaluations criteria adopted in preparing the nancial statements were as follows.

TANGIBLE ASSETSThese are stated at purchase cost and adjusted by the accumulated depreciation.Miscellaneous charges and costs incurred for asset use, leading trade discounts and cashdiscounts for a signi cant amount to cost reduction are taken into account in the value of theassets.Amortisation charged to the income statement is calculated according to the use, allocationand economic life of the assets, based on the criterion of the residual possibility of utilisation, acriterion that we considered well-represented by the rates applied.

PAYABLESPayables were recorded at their nominal value, adjusted for returns or billing corrections.

ACCRUALS AND DEFERRALSThey were determined on the basis of the accrual period.For multi-year accruals and deferrals the conditions that led to the original entry were veri edcarrying out, where necessary, appropriate modi cations.

EMPLOYEE SEVERANCE INDEMNITY PROVISIONThis represents the actual amount due to employees in accordance with the law and thecollective bargaining agreements, considering all forms of ongoing remuneration.The provision is the total of the indemnities due to employees at the nancial statements date,net of the advances paid, and is equal to what should have been paid to employees in case ofemployment termination on that date.

INCOME TAXESTaxes are allocated according to the principle of competence, therefore, they represent theprovisions for taxes to be paid for the year, determined in accordance with current rates andregulations.

CRITERIA FOR THE CONVERSION OF FOREIGNCURRENCY VALUESFinancial statement items are recorded according to the exchange rates prevailing on the dateon which they arose.For a proper comparison with the previous nancial year, it should be noted that the gains/losses resulting from currency conversion or the exchange rate from the sale of one currencyand the purchase of another are credited to the Management Statement under item 4.2Financial income and gains from other assets.

GUARANTEES, COMMITMENTS, THIRD PARTY ASSETS AND RISKSThe amount disclosed under commitments represents the residual value of the amounts tobe allocated by the Foundation at the end of the period in which these nancial statements

refer. These commitments, under execution for various intervention programs, are analyticallydescribed in the Mission Report.

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DREAMS CAN BECOME

REALITY WHEN WEBELIEVE IN THEM AND

WHEN WE

ALL DREAM

THEMTOGETHER75 4


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ASSETS

LIABILITIES

The balance represents the liquid assets available and the existence of ready cash and values on closure of the nancial period.Payables are stated at their nominal value and their expiration is as follows (Article 2427, rst paragraph, no. 6, Italian Civil Code).

The provision represents the Company’s liability as at 31/12/2013 to t he employees in force at that date, net of theadvances paid.The provision represents the actual amount due to employees in accordance with the law and the collective bargainingagreements, considering all forms of ongoing remuneration.

“Payables to suppliers” are recorded net of trade discounts; on the contrary, cash discounts are recorded at the time ofpayment. The nominal value of these liabilities was adjusted for returns and trade discounts (billing corrections), to theextent agreed upon with the other party.The item “Tax liabilities” only includes certain and determined income tax liabilities. There are no probable or uncertaintax liabilities in the amount or on the date of occurrence, or for deferred taxes; to be entered in the liability item B2(Tax provision).The item tax liabilities includes IRAP (Italian regional tax on productive activities) payable equal to Euro 1,363.00.There are no signi cant changes in the amount of the item “Tax liabilities”.

They measure revenues and charges to be paid in advance or postponed with respect to cash collection ordocumentary process; they are independent from the date of payment or collection of the related revenues andcharges, common to two or more nancial periods and distributable over time.

C) Current assets

II. Receivables

Balance as at 31/12/2013793

DescriptionFrom customersFrom subsidiariesFrom af liated companiesFrom parent companiesFor tax creditsFor prepaid taxesFrom othersRounding

IV. Cash and Cash Equivalents

Balance as at 31/12/20131,340,670

DescriptionBank and postal depositsChequesCash and cash equivalents on handRounding

Balance as at 31/12/2012 32

Within 12 months

793

793

Balance as at 31/12/2012 507,156

Over 12 months

31/12/2013 1,340,670

1,340,670

Over 5 years

31/12/2012 507,156

507,156

Changes761

Total

793

793

Changes 833,514

D) Accruals and deferrals


Balance as at 31/12/2012 150

Changes322

A) Net assets

(Ref. Article 2427, rst paragraph, points 4, 7 and 7-bis of the Italian Civil Code)


1,334,937

DescriptionEndowment fundVarious other reservesOtherRoundingOperating pro t from previous yearsOperating result

Balance as at 31/12/2012 499,283

31/12/2012 100,000 (1)

57,767 341,517

Increases

3

341,517 494,135

Decreases

Changes 835,654

31/12/2013 100,000 2

399,283 835,652

499,283 835,652 1,334,937

C) Employee severance indemnities

(Ref. article 2427, rst paragraph, no. 4, Italian Civil Code )


2,131

The change is as follows.

ChangesEmployee severance indemnities,transactions during the period

Balance as at 31/12/2012 434

31/12/2012

Increases 1,697

Decreases

Changes1,697

31/12/2013 1,697

D) Payables

(Ref. article 2427, rst paragraph, no 4, Italian Civil Code)


10,370

DescriptionPayables to suppliers

Tax liabilitiesPayables to social and welfare agenciesOther accounts payableRounding

Balance as at 31/12/2012 10,890

Within 12 mesi4,382

2,565 1,701 1,722

10,370

Over 12 mesi Over 5 anni

Changes (520)

Total 4,382 2,565 1,701 1,722

10,370

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For a detailed description of the projects and operations, please refer to the Mission Balance Sheet.

The taxes for the nancial period under examination were recorded.

GENERAL INFORMATIONPursuant to the law, it should be noted that the members of the Board of Directors and theSupervisory Body waived remuneration due for the work completed on the Foundation’sbehalf. In implementation of Recommendation no. 3 issued by the National Council of Certi edChartered Accountants, we declare that the Foundation’s proceeds donations did not givedonors the right to any deductions for tax purposes.These nancial statements, including the Balance Sheet, management statement and Notesto the Financial Statements, give a true and fair view of the nancial position and pro t for theyear and correspond to the accounting records.

Lajatico (PI) 28/04/2014

President of the Board of Directors

Laura Biancalani

1) Revenue from contingencies

Balance as at 31/12/20131,206,777

4) Proventi nanziari e pa trimoniali

Saldo al 31/12/20133,626

DescriptionFrom equity investments

From long-term receivablesFrom securities held as xed assetsFrom securities held as current assetsIncome other than above(Interest and other nancial charges)Gains (losses) on foreign exchange

1) Charges from contingencies

Balance as at 31/12/2013 305,854

DescriptionChallenges ProgramOrganisation Workshop Challenges

MIT Fifth Sense Project Break the Barries Program

Organisation Workshop BTB Expenses Haiti Wheat project Haiti Wheat project

Syria Emergency project La Lucciola ONLUS Emilia Eatrhquake project

Project Virginia for Haiti

Balance as at 31/12/2012 826,970

Saldo al 31/12/2012 6,085

31/12/2013

3,397 229

3,626

Balance as at 31/12/2012 453,104

31/12/2013 20,767

20,767 0

285,087 17,750 7,978 249,359 10,000 0 0

305,854

31/12/2012

630 2 5,453 6,085

31/12/2012 359,021

16,027 342,994

94,083 23,232 0 0 0 10,000 60,851

453,104

Changes

2.767 227 (5,224) (2,459)

Changes (338,254)

4,740 (342,994) (76,333) (5,482) 7,978 249,359 10,000 (10,000)

(60,851)

(147,250)

Changes379,807

Variazioni (2,459)

Changes(147,250)

Income taxes for the nancial period

Balance as at 31/12/20131,363

Taxes

Current taxes: IRES IRAP

Balance as at 31/12/2012 1,793

Balance as at 31/12/2013 1,363

1,363

1,363

Balance as at31/12/2012 1,793 1,500 293

1,793

Changes

(430) (1,500) 1,070

(430)

Changes (430)

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MINUTES OF THE MEETING OF THE BOARD OF AUDITORSOn 10th April 2014 at 6 p.m. at the of ces of the Studio Commerciale Associato Martinelli inCascina (PI), Via Tosco Romagnola nc, 742 the Board of Auditors met, in the persons of theundersigned: - Franco Martinelli - Chairman

- Stefano Monti - acting auditor- Fabio Gambini - acting auditor- Arianna Nesti - consultant retained by Studio Comm. Ass. Martinelli

In order to carry out controls on the nancial statements closed at 31/12/2013 and to preparethe Board of Auditors Report.The nancial statement’s individual items are examined through the analytical examinationof accounting records and particular reference to the matching of accounting records to theresolutions of the Board.

The meeting of the Board of Auditors closed at 8.30 p.m. following preparation of the Reportof the Board of Auditors which is annexed to these minutes and forms an integral and essentialpart thereof.

The Board of Auditors

REPORT OFTHE BOARDOF AUDITORSDear Board Members of the ANDREA BOCELLI FOUNDATION,The Board of Auditors,, for the nancial period ended 31/12/2013, performed both thefunctions provided for by Articles 2403 et seq. of the Italian Civil Code and those provided forby Article 2409-bis of the Italian Civil Code.This unitary report contains in its rst part the “Audit report pursuant to Article 14 of the Italian

Legislative Decree no. 39 of 27 January 2010”, and in the second part the “Report pursuant toArticle 2429, paragraph 2, of the Italian Civil Code”.

First partAudit report pursuant to article 14 of Italian Legislative Decree no. 39 of 27 January 2010

A) We carried out the statutory audit of the ANDREA BOCELLI FOUNDATION ended31/12/2013. The ANDREA BOCELLI FOUNDATION’s administrative body is responsible forpreparing the nancial statements in accordance with the regulations governing reportingcriteria. It is our responsibility to express a professional opinion on the nancial statementsbased on our statutory audit.

B) Our audit was performed in accordance with generally accepted auditing standards.In accordance with those principles, the statutory audit was planned and performed to obtain theinformation necessary to determine whether the nancial statements are free of misstatementand, taken as a whole, are reliable. The audit was carried out in a manner consistent with thesize of the Foundation and its organisational structure. It includes examining, on a test basis,the evidence supporting the amounts and disclosures in the nancial statements, as well asevaluating the appropriateness of the accounting standards used and the reasonableness of theaccounting estimates made by the directors. we believe that the work performed provides areasonable basis for the expression of our professional opinion.With reference to the opinion on the nancial statements of the prior nancial period, the data ofwhich is presented for comparative purposes as required by law, reference is made to the reportissued by us for the nancial period ended 31/12/2012.

C) In our opinion, the aforementioned nancial statements as a whole are in compliance withthe rules governing reporting criteria; they are clearly prepared and give a true and fair view ofthe nancial position and results of operations of the ANDREA BOCELLI FOUNDATION for the

nancial period ended 31/12/2013.

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Second partReport pursuant to article 2429, paragraph 2 of the Italian Civil Code

1. During the nancial period ended 31/12/2013 our business was inspired by the provisionsof law and the Rules of Conduct of the Board of Statutory Auditors as well as the principles forthe preparation of non pro t organisations nancial statements promulgated by the NationalCouncil of Certi ed Chartered Accountants.

2. In particular: - We monitored compliance with the law and the articles of association, as well as the

principles of good administration. - We attended the meetings of the Administrative Body held in compliance with

statutory requirements, laws and regulations that govern its operation and for whichwe can reasonably ensure that the resolutions adopted were in conformity with thelaw and the articles of association and were not clearly imprudent, risky, in potentialconflict of interest or such as to compromise the integrity of the corporate assets.

- Through the information obtained and the examination of the documentationreceived, we assessed and monitored the adequacy of the administrative andaccounting system as well as its reliability in correctly representing the results ofoperations, and in this regard we have nothing particular to report.

3. During the nancial period, in accordance with the provisions of the Articles, we wereregularly informed by the Directors of the management performance and its outlook. We cantherefore reasonably ensure that the actions taken were in accordance with the law and withthe Articles, and were not manifestly imprudent, risky, in potential con ict of interest or incontrast with the resolutions adopted by the Foundation’s bodies or such as to compromise theintegrity of the corporate assets.

4. The Board of Auditors found no atypical and/or unusual transactions, including thosecarried out with related parties.

5. The Board of Auditors, during the nancial year, did not issue any opinions in accordancewith law.

6. We examined the draft nancial statements for the nancial period ended 31/12/2013,

which was made available to us in appropriate terms and on which we report as follows: - for an attestation that the nancial statements as of 31/12/2013 is a true and fair view

of the nancial position and results of operations of your Foundation pursuant to Article 14 of Italian Legislative Decree no. 39/2010, please refer to the rst part of our report. - the directors, in preparing the nancial statements, did not depart from the rules of

law pursuant to Article 2423, paragraph 4, of the Italian Civil Code.

Monitoring and control did not reveal any signi cant facts to be reported or mentioned in this report.

As mentioned above, the Board of Auditors found no impediment and can thereforerecommend approval of the nancial statements for the nancial year ended 31/12/2013

prepared by the Board of Directors.

Lajatico, 10th April 2014

The Board of Auditors

Franco MartinelliStefano MontiFabio Gambini

The directors, in preparing the nancial statements, did not depart from the rules of lawpursuant to Article 2423, paragraph 4, of the Italian Civil Code:

Assets

Liabilities Shareholders’ equity (excluding pro t for the nancial years Operating pro t for the nancial year

Accounts, commitments, contingencies and othermemorandum accounts

1.347.438

12.501 499.285 835.652

306.891

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