THE JOHNS HOPKINS UNIVERSITY

1 THE JOHNS HOPKINS UNIVERSITY Consolidated Financial Statements June 30, 2021 and 2020 (With Independent Auditors Report Thereon) Independent Auditors Report The Board of Trustees The JOHNS HOPKINS UNIVERSITY : We have audited the accompanying consolidated financial statements of The JOHNS HOPKINS UNIVERSITY , which comprise the consolidated balance sheets as of June 30, 2021 and 2020, the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

2 Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

3 In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements 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 entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

4 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The JOHNS HOPKINS UNIVERSITY as of June 30, 2021 and 2020, and the changes in its net assets and its cash flows for the years then ended in accordance with generally accepted accounting principles. Baltimore, Maryland October 4, 2021 KPMG LLP750 East Pratt Street, 18th FloorBaltimore, MD 21202 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

5 THE JOHNS HOPKINS UNIVERSITYC onsolidated Balance SheetsJune 30, 2021 and June 30, 2020(Dollars in thousands)Assets20212020 Cash and cash equivalents$571,173 531,954 Operating investments2,085,455 1,820,418 Cash, cash equivalents and operating investments2,656,628 2,352,372 Sponsored research accounts receivable, net500,393 447,125 Accounts receivable, net207,806 244,240 Contributions receivable, net277,899 269,688 Prepaid expenses and deferred charges52,637 45,142 Student loans receivable, net20,967 23,191 Investments10,443,599 7,643,728 Property and equipment, net2,787,391 2,623,506 Operating lease right-of-use assets, net233,864 226,328 Investment in and loans to affiliates338.

6 190 323,381 Other assets375,460 341,481 Interests in trusts and endowment funds held by others142,917 116,032 Total assets$18,037,751 14,656,214 Liabilities and Net AssetsAccounts payable and accrued expenses$792,068 685,173 Sponsored research deferred revenues373,847 344,649 Other deferred revenues148,138 123,432 Debt1,516,023 1,743,522 Operating lease liabilities254,138 246,871 Other long-term liabilities450,117 409,718 Pension and postretirement obligations73,255 306,574 Liabilities under split-interest agreements84,460 81,292 Endowment and similar funds held for others817,469 614,149 Total liabilities4,509,515 4,555,380 Net assets:Without donor restrictions3,897,483 3,033,930 With donor restrictions9,630,753 7,066,904 Total net assets13,528,236 10,100,834 Total liabilities and net assets$18,037,751 14,656,214 See accompanying notes to consolidated financial JOHNS HOPKINS UNIVERSITYC onsolidated Statements of ActivitiesYears ended June 30, 2021 and 2020(Dollars in thousands)20212020 Changes in net assets without donor restrictions:Operating revenues.

7 Tuition and fees, net of financial aid of $455,972 and$417,091, respectively$679,200 703,360 Grants, contracts, and similar agreements 1,434,639 1,403,326 Facilities and administrative cost recoveries377,250 366,779 Applied Physics Laboratory contract revenues1,892,959 1,844,310 Sponsored research revenues3,704,848 3,614,415 Contributions 179,087 124,988 Net assets released from restrictions 99,393 99,218 Contributions and donor support278,480 224,206 Clinical services, net 776,564 705,107 Reimbursements from affiliated institutions 623,264 656,918 Other revenues 173,414 130,673 Net endowment payout used to support operations299,041 256,408 Auxiliary enterprises58,609 92,259 Maryland State aid 29,034 29,066 Investment return36,572 58,166 Total operating revenues 6,659,026 6,470,578 Operating expenses.

8 Compensation3,148,032 3,075,083 Benefits971,829 944,861 Compensation and benefits4,119,861 4,019,944 Subcontractors and subrecipients476,537 503,182 Contractual services 931,809 907,652 Supplies, materials, and other 608,627 583,399 Depreciation223,023 220,926 Travel 40,520 116,027 Interest 46,045 44,789 Total operating expenses 6,446,422 6,395,919 Excess of operating revenues over operating expenses212,604 74,659 3(Continued)THE JOHNS HOPKINS UNIVERSITYC onsolidated Statements of ActivitiesYears ended June 30, 2021 and 2020(Dollars in thousands)20212020 Other changes in net assets without donor restrictions.

9 Investment return in excess of (less than) endowment payout$337,185 (5,908) Change in benefit plans funded status, excluding benefit cost227,516 (126,094) Other net periodic benefit (cost) credit(3,712) 2,281 Change in fair value of interest rate swap agreements9,474 (10,918) Gain on asset disposal57,644 Other, net6,431 21,353 Net assets released from restrictions16,411 880 Other changes in net assets without donor restrictions650,949 (118,406) Total changes in net assets without donor restrictions863,553 (43,747) Changes in net assets with donor restrictions:Contributions550,854 1,057,242 Investment return in excess of (less than) endowment payout2,128,414 (9,624) Net assets released from restrictions(115,804) (100,098)

10 Other, net385 Total changes in net assets with donor restrictions2,563,849 947,520 Total change in net assets3,427,402 903,773 Net assets at beginning of year 10,100,834 9,197,061 Net assets at end of year $13,528,236 10,100,834 See accompanying notes to consolidated financial JOHNS HOPKINS UNIVERSITYC onsolidated Statements of Cash FlowsYears ended June 30, 2021 and 2020(Dollars in thousands)20212020 Cash flows from operating activities: Total change in net assets$3,427,402 903,773 Adjustments to reconcile total change in net assets to net cash provided by operating activities:Depreciation, amortization, and other adjustments223,025 205,664 Noncash gift of investments(448) (377,977) Contributions restricted for long-term investment (360,895) (616,688) Net realized and unrealized gains from investments(2,738,858) (236,532) Net unrealized (gains) losses from swaps(9,474) 10,918 Earnings from joint ventures(32,964) (13,965) Change in benefit plans funded status(233,319) 121,962 Gain on asset disposal(57,644) Changes in operating assets and liabilities.