Advisory Council Meeting

November 8, 2013

Administrative Housekeeping Outgoing Chair – Alan Dreeben Incoming Chair – George Seay, CEO,

Annandale Capital, LLC Incoming Vice Chair – Bob Zlotnik,

Managing Partner, BZMZ Interests, Ltd.

Welcome & Introductions George Seay Chair

New Advisory Council Members

Paul Aaron

Partner, Investment Banking

Goldman Sachs New York, NY

John Bass Principal, Chase Capital JP Morgan Securities, Inc. Houston, TX

New Advisory Council Members

Richard Folger

President and Chief Executive Officer

Warren Equipment Company

Midland, TX

Clement Marcus Partner, EP Marcus

Investments And Partner, MIMCO, Inc. El Paso, TX

New Advisory Council Members

Jimmy Nakfoor Owner Palm Street Capital, LP Houston, TX

Tony Schell Managing Director Escalate Capital Partners Austin, TX

New Advisory Council Members

Andrew Vo Managing Director Accenture Houston, TX

Shawn Wells Chief Operating Officer East Lodge Capital Partners London, UK

Members starting second term

Brian Gladden Aaron Kozmetsky John Lancaster Jr.

Steve McGaw Niloufar Molavi Shea Morenz Erin Nelson

Norma Petrosewicz Brien Smith Sam Susser

New life members

Alan Dreeben Paul Kinscherff Skip McGee III

Tom Ryan Stacy Smith Gary Weed

Introductions Please briefly introduce yourself Name Company Location

Recognitions Tom Gilligan Dean

Recognitions Dean’s Circle (gifts of $10,000+ September 1, 2012 – August 31, 2013)

Paul R. Aaron John L. Adams Les L. Allison Teresa D. Binning I. Jon Brumley J. Timothy Byrne Gary T. Crum Kenneth P. DeAngelis Alan W. Dreeben Robert D. Duncan Kathleen W. Farlow Mark D. Gibson John C. Goff William C. Helms

Charles M. Holley, Jr. Joe E. Holt Shawn M. Hurwitz Gary C. Kelly R. Paul Kinscherff S. Todd Maclin Clement L. Marcus John H. Massey J. Scott Mattei J. Marc Myers James M. Nakfoor Ray Nixon, Jr. William P. O'Hara Thomas L. Ryan

George E. Seay Paul Siegele Brien P. Smith Steven M. Sterin Bryan D. Stolle Sam J. Susser Jeffrey L. Swope Ralph B. Thomas Jere W. Thompson Lynn M. Utter James C. Weaver Charles M. Wender

Recognitions Endowments (Established September 1, 2012 – August 31, 2013)

Susie and John L. Adams Endowed Dean’s Scholarship in Business Susie and John L. Adams Endowed Presidential Scholarship in Business George R. and Pamela A. Ackert Endowed Dean’s Scholarship in Business Mr. and Mrs. Les L. Allison and Family Scholarship J. Timothy Byrne Endowed Excellence Fund in Real Estate Lorrie Byrd DeAngelis and Ken DeAngelis Endowed Presidential Scholarship in Business (Robert Duncan) Transwestern Endowed Excellence Fund in Real Estate (Mark Gibson) HFF Endowed Excellence Fund in Real Estate Jastrow Endowed Presidential Scholarship in Business Carol and Gary Kelly Endowed Scholarship Elizabeth S. Massey and John H. Massey Endowed Presidential Scholarship in Business Marc and Jan Myers Endowed Dean’s Scholarship in Business Ray and Denise Nixon Endowed Dean’s Scholarship in Business Ray and Denise Nixon Endowed Presidential Scholarship in Business (Tony Schell) Jim Nolen Award for Excellence in Graduate Teaching Jeffrey L. and Ann L. Swope Endowed Excellence Fund in Real Estate Andrew Phong Vo Endowed Presidential Scholarship in Business

Recognitions Lifetime Leaders (cumulative lifetime giving of $500,000+ through August 31, 2013)

Mr. and Mrs. John L. Adams Mr. and Mrs. Louis G. Baldwin II Mr. and Mrs. I. Jon Brumley Mr. and Mrs. John W. Carpenter III Mr. and Mrs. Gary T. Crum Mr. and Mrs. Jack D. Furst Mr. and Mrs. Robert H. Graham Mr. and Mrs. Thomas O. Hicks Mr. and Mrs. Kenneth M. Jastrow Mr. and Mrs. Herbert D. Kelleher

Mr. and Mrs. John H. Massey Mr. and Mrs. Red McCombs Mr. and Mrs. John D. McStay Mr. and Mrs. James M. Neissa Mr. and Mrs. Ray Nixon, Jr. Mr. and Mrs. William P. O’Hara Mr. and Mrs. William E. Rosenthal Mr. and Mrs. Jeffrey L. Swope Mr. and Mrs. Robert S. Zlotnik

Corporate Recognitions

Ernst & Young for providing $500,000 grant to create the Ernst & Young Accounting Ambassadors Program Special thanks to Tim Griffy and Ellen Glazerman

Deloitte for $500,000 grant to support the creation of a unique interactive classroom Special thanks to Kathleen Farlow

Pepsico for $100,000 four-year commitment to be the Business Honors Program 2017 Class Sponsor Special thanks to George Legge and Gary Murtha

Corporate Recognitions

Walmart and Deloitte Consulting for involvement and leadership investment as founding executive sponsors of the Master of Science in Business Analytics Special thanks to Charles Holley, Kaye Cullum and Jonathan Trichel

Intel for committing $225,000 to create the Corporate Finance Fellows Program, a fellowship program focused on corporate finance Special thanks to Stacy Smith

Business Foundations David Platt, Associate Dean, Undergraduate Program Regina Hughes, Director of the Business Foundations Program Steve Limberg, Director, Master of Professional Accounting Program

Texas Business Foundations

Program (BFP)

David Platt Assoc. Dean for Undergraduate Programs

Regina Hughes Director, BFP Program

Stephen Limberg Faculty Director, MPA Program

Rob Schnieders Chief Learning Officer, Deltak

Texas Business Foundations Program (BFP)

What is the BFP?

“Certificate” program for non-business majors from all colleges on campus

Fundamentals of business 8 courses offered 6 courses required to earn

transcriptable certificate

Texas Business Foundations Program (BFP)

Brief History Created in 1993 under UT

President Bill Cunningham Allowed business majors greater

opportunity for small-class learning

Created separate program for non-business majors, giving them the ability to focus on their own major while incorporating the core concepts or “Foundations of Business”

Texas Business Foundations Program (BFP)

Statistics In 1992: 10,000 BBA students In 1993: 3600 BBA, 4000 BFP Currently: 4500 BFP students and

4400 BBA students, graduating 1000+ of each annually

The McCombs/BFP brand has now reached over 175,000 students

Brief History Created in 1993 under UT

President Bill Cunningham Allowed business majors greater

opportunity for small-class learning Created separate program for non-

business majors, giving them the ability to focus on their own major while incorporating the core concepts or “Foundations of Business”

Texas Business Foundations Program (BFP)

An Evolution… 20 years ago… BFP for UT-Austin Students

6 years ago… Integrated Summer BFP Program for UT-Austin students

Summer 2014… Health Care Summer BFP Program for UT-Austin students

2014… Rollout of On-line BFP Program for Non-UT students

2014-2015… Rollout of On-line BFP option for UT-Austin students

Texas Business Foundations Program (BFP)

All colleges participate Liberal Arts Communications Engineering Natural Sciences Social Sciences Education

All classes offered every semester Large lecture format Study abroad options

Program design Economics and Statistics

co-requisite Modeled after BBA core

Accounting Information Systems Management Marketing Business Law Finance

Also offered currently International Business Entrepreneurship

New Program Options for BFP Students Started with an idea at Halliburton

“Summer Institute” 2008 Collaborative effort with all

colleges on campus STEM focus: targets “best

and brightest” Sponsored since inception

by Halliburton An an 8 week/15 credit

“Boot Camp”

Texas Business Foundations Summer Institute July 2-July 31, 2014

Tremendous growth since 2008 Over 450 students from all colleges on campus have participated Students tell it best – let’s hear from a few of them!

New student opportunities for 2014 TBFSI- Industry is our original program, still supported by Halliburton

Special tuition reduction given to select STEM students Accounting, Finance, Marketing, Management, International Business.

TBFSI- Healthcare is our new version of the program opening in 2014 Targeting health professions majors, open to all students interested in “the

business of healthcare” Accounting, Finance, Management, Law, Entrepreneurship

TBFSI plans to register 200 students for Summer 2014.

Both programs include Rigorous 15 credits and 5 classes Marketplace and stock market simulations Professional development classes with mock interview day Leadership training and Ethical decision making Etiquette luncheon, guest speakers and more

Admission Requires 3.0 GPA Tuition: UT students $4,650 (includes books) Now open to current undergraduates outside of UT, space permitting

(check our website for special Texas Exes family pricing)

Texas Business Foundations Summer Institute July 2-July 31, 2014

6 7 8 9 10 11 12

9:00-10:30 ACC 3 Financial Statements

MKT 4 Consumer Decision

Making

FIN 4 Time Value of

Money

MKT 6 Segmenting & Target

Markets

JOINT SESSION FIN - Exam 1

10:30-12:00 FIN 3 Tools of Finance

ACC 4 Financial Statements

MKT 5 Business Marketing

FIN 5 Federal Reserve Monetary Policy

JOINT SESSION Guest Speaker

Intro to Law

12:00-1:30 LUNCH LUNCH LUNCH LUNCH LUNCH

1:30-3:00 MAN 3

Understanding Individual Behavior

I B 1 Global Markets

Quiz

MAN 5 Understanding

Groups and Teams

I B 2 Marketplace Simulation

PROF DEV 2 Resumes

3:00-4:30 MKT 3

Marketing Environment

MAN 4 Workplace and

Individual Behavior

PROF DEV 1 Cover Letters

MAN 6 Strategic Management

MAN 7 Leadership

Climbing Mt. Everest

Texas Business Foundations Summer Institute Sample Week Calendar

Everybody needs a little bit of business

For more information and/or Summer Institute application Visit McCombs Website: http://www.mccombs.utexas.edu/bba/business-foundations

Visit BFP Office CBA 2.210 & 2.214 Office Hours: Mon-Fri 9-10am

Video from Summer Institute

“Texas means Business – see you in class!”

BFP Online

Origins – early 1990s, dedicated to online education 33 institutions, 72 fully online programs, >1,500 courses Services provided: A to Z

Development 2013-14 Launch 2014 Roles Steve Limberg, BFP Online Development Coordinator/Liaison

Gaylen Paulson, BFP Online Business/Administrative Affairs

Institution-to-Institution (I to I)

Business-to-Business (B to B)

Business-to-Customer (B to C)

Potential Students

BFP Online

UT-Austin Students (non-MSB)

Non-UT students

BFP Online

Internal External Better serve UT-Austin Extend the MSB Brand

+

Purposes

BFP Online

Courses - BBA Core The Original Six . . . Accounting Information Systems Management Marketing Business Law Finance

All Six BFP Certificate

BFP Online

Course Design Open entry – exit dates Self-paced TA support Graded Identity verification

Initial Offerings Specific entry – exit dates Semi self-paced

BFP Online

Development Faculty 17 leading teachers

2-4 faculty per course 5 department chairs Teaching awards all, including - 2 Regents Outstanding Teaching Awards - 3 Academy of Distinguished Teachers - 3 Texas Exes Teaching Awards

Pedagogy Progressive . . .

interactive . . . engaging Examples follow…

BFP Online

Simulations/competitions Integrated cases Videos – faculty, experts, guests, students Voice-over & animated illustrations Student/instructor “community” Peer feedback and review Mobile devices

Course Experience

Student-Learning System Interface

BFP Online

Build/Buy/Rent Simulation

BFP Online

Integrated Cases

BFP Online

BFP Online

Video

Definition

Definition Design

Production and Programming

Production and Programming

Design

Definition

Definition

Definition

Definition Design

Production and Programming

Production and Programming

Design

Production and Programming

Production and Programming

Design

Design

2013 2014 June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June

Course 1

Course 2

Course 3

Course 4

Course 5

Course 6

Course Completion Timeline

BFP Online

Steve Limberg, Faculty Director MPA Program BFP Online Development Coordinator/Liaison (512) 471-5347 stephen.limberg@mccombs.utexas.edu

Gaylen Paulson, Assoc. Dean & Executive Ed. Director

BFP Online Business/Administrative Affairs (512) 471-8541 gaylen.paulson@mccombs.utexas.edu

BFP Online – MSB Contacts

Break

15 minutes

Rowling Hall Update Todd Schliemann Ennead Architects

School Update Tom Gilligan Dean

School Updates Financial Status and Program Performance McCombs School of Business AT&T Executive Education and Conference Center McCombs School of Business Foundation

Faculty Productivity Student Outcomes Student Quality External Support School Highlights

McCombs School of Business

McCombs School of Business

McCombs School of Business

AT&T Center Performance 2008-09 Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Actual

2013-14 Budget

Total Revenue

16,968,076 22,016,433 25,515,281 27,745,001 30,731,903 30,866,982

NOI after Amort.

(4,483,267) 568,130 2,038,889 3,790,390 5,374,614 4,932,219

Total Debt Svc & Interest

5,551,507 4,723,711 4,728,731 4,741,472 4,711,260 4,753,142

Occupancy Percentage

56.4% 71.6% 76.4% 77.3% 80.2% 79.8%

Avg Daily Rate

$139.09 $148.48 $158.15 $169.67 $183.97 $185.29

McCombs School of Business Foundation Total Assets (8/31/13) = $18,854,660 Foundation Activities Student Investment Fund Diversity Scholarships Faculty Development Strategic Investments

Land purchase for Rowling Hall Online Business Foundations Development

Supporting Vehicle for Executive Development Program

Faculty Productivity

Faculty Productivity

Faculty Productivity Teaching awards UT System Academy of Distinguished Teachers

inaugural year; McCombs awarded 2 of 12 Robert Prentice, Chair of BGS and Faculty Director

of BHP John Daly, Liddell Carter Professor in UT’s College

of Communications and a Texas Commerce Bancshares Professor in the McCombs Department of Management

Faculty Productivity Teaching awards McCombs Teaching Awards Faculty Honor Roll

In the past four years, students have ranked our professors in the top 10 best - #2 this year (Princeton Review)

Student Outcomes: PhD Program

Student Outcomes: BBA Program

Student Outcomes: BBA Program

Student Outcomes: MBA Program

Student Outcomes: MBA Program

Student Outcomes: Specialty Masters Programs

Student Quality: BBA Program

Student Quality: BBA Program

Student Quality: MBA Program

External Support: Campaign for Texas

$13,835

$9,339

$35,969

$13,491

$19,257 $28,306

$41,260

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Goal = $225,000,000 Current total = $164,155,016*

(thousand)

*Includes 2013/14 contributions

Our Turn campaign Living Alumni MBA = 19,294 BBA = 68,186 MPA = 6,973

Alumni giving participation met goal of 8% in 2012-13 2013-14 goal is 10%

External Support: Annual Giving

External Support: Annual Giving McCombs Alumni Participation Rates

FY 2000-01 through FY 2012-13

External Support: McCombs Scholars Program Overall Scholarship giving

Goal of 375 scholarships

External Giving: Endowment Growth Endowments

External Support: Institutional Giving Corporate and Foundation Giving

External Support: Top Institutional Partners Top 25 Corporate Partners

Accenture AMD AT&T BBVA Compass BP Chevron ConocoPhillips Dell Inc. Deloitte Dr Pepper Snapple Group Exxon Mobil Corporation EY

GM Foundation Goldman Sachs Halliburton KPMG PepsiCo, Inc. Phillips 66 PwC Shell Oil Company Southwest Airlines Target Corporation USAA Walmart Inc. Wells Fargo

(5 years, alphabetical)

School Highlights MBA Scholarships for Entrepreneurs MSTC Completes Strong Year with

Competition Wins First runners-up 30th Annual Global Venture Labs

Investment Competition Wells Fargo Clean Energy Prize winners

MSTC #5 in the world! (Eduniversal Best Master Ranking for Engineering and Project Management)

School Highlights Minority Student Outreach Continues

Undergraduate Subiendo (26% now at UT-Austin; 15% at McCombs)

McCombs Future Executive Academy Discover Yourself in Accounting Majors & Careers McCombs Diversity Council Student Orgs (such as ALPFA, BBSA, HBSA…)

Graduate Texas MBA Diversity Forum Forte Foundation (founding member)

Consortium for Graduate Study in Management (member for 27 years)

School Highlights Stepping Forward in Healthcare Solutions

School Highlights

Undergraduate Energy Management Program 18 hours of energy management coursework

Geology, Oil and Gas Law, Real Estate Law, Petroleum Operations, Energy Technology & Policy

Open to any major at UT Recognized on transcript

First cohort launched Summer of 2013 33 students (12 from McCombs)

Raising endowment for long-term support

Questions, comments, discussion?

Dates to Remember Spring 2014 March 27 – Advisory Council Dinner March 28 – Council Meeting and Spouse

Program

Thank you for attending!