SSO 2012 Annual Report by Ian Wheaton

2012

SYDNEY SYMPHONY ANNUAL REPORT

sydney symphony 2012 annual report

THE STORY OF SYDNEY SYMPHONY ONCE AGAIN DEMONSTRATES THE COMPANY’S ABILITY TO ADAPT, STAY RELEVANT AND CONTINUE TO FLOURISH.

Kees Boersma, Principal Double Basses with student at Playerlink Albury.

SYDNEY SYMPHONY 2012 ANNUAL REPORT

IN OUR 80TH ANNIVERSARY YEAR THE SYDNEY SYMPHONY CELEBRATES SUCCESS, RESILIENCE & GROWTH

Clockwise from top left: Sydney Symphony schools concert at the ABC, Ultimo; Carolyn Harris, Tutti Flute, digital Playerlink presentation to Albury at the Telstra Experience Centre, Sydney; Vladimir Ashkenazy, Anne-Sophie Mutter and the Sydney Symphony at the Sydney Opera House; Mahler Symphony No. 2 CD cover with Vladimir Ashkenazy; Cellist Jian Wang performs with the Sydney Symphony in Shanghai; Sydney Symphony brass section celebrate the 80 year anniversary of the Sydney Harbour Bridge.

Sydney Symphony Musicians 2012

Year in Review

Chairman's Review

Managing Director's Review

Five Year Performance Summary

Message from Vladimir Ashkenazy

Community

Supporters â&#x20AC;&#x201C; Donors & Sponsors

SYDNEY SYMPHONY MUSICIANS 2012 CONDUCTOR

Vladimir Ashkenazy Principal Conductor & Artistic Advisor Sponsored by Emirates

PATRON

ASSISTANT CONDUCTOR

Her Excellency Professor Marie Bashir AC CVO

FIRST VIOLINS

Sun Yi Associate Concertmaster

Kirsten Williams Associate Concertmaster

Fiona Ziegler Assistant Concertmaster

Julie Batty Jennifer Booth Marianne Broadfoot Brielle Clapson Sophie Cole Amber Davis Jennifer Hoy Georges Lentz Nicola Lewis Alexandra Mitchell Alexander Norton Léone Ziegler SECOND VIOLINS

Marina Marsden Principal

Kirsty Hilton Principal

Alexander Read Associate Principal

Emma West

Louise Johnson Principal

Tobias Breider

Janet Webb

Anne Louise Comerford

Robyn Brookfield Sandro Costantino Jane Hazelwood Veolia Environmental Services Chair

Graham Hennings Stuart Johnson Justine Marsden Felicity Tsai Leonid Volovelsky CELLOS

Catherine Hewgill Principal The Hon. Justice AJ & Mrs Fran Meagher Chair

Leah Lynn Assistant Principal

Kristy Conrau

Ruth & Bob Magid Chair

Christopher Pidcock Adrian Wallis David Wickham DOUBLE BASSES

PICCOLO

Rosamund Plummer Principal

OBOES

Diana Doherty Principal Andrew Kaldor AM & Renata Kaldor AO Chair

Shefali Pryor

Principal 3rd

COR ANGLAIS

Alexandre Oguey Principal

Lawrence Dobell Principal Anne Arcus & Terrey Arcus AM Chair

Francesco Celata Associate Principal

Christopher Tingay BASS CLARINET

Craig Wernicke Principal

BASSOONS

Matthew Wilkie Roger Brooke Associate Principal

Principal

Fiona McNamara CONTRABASSOON

David Campbell

Noriko Shimada

Steven Larson

Principal

Benjamin Ward

Associate Principal

John Foster Anthony Heinrichs TROMBONES

Scott Kinmont Associate Principal

Nick Byrne BASS TROMBONE

CLARINETS

Alex Henery

David Murray

Paul Goodchild

Principal

Richard Lynn

Principal

Ronald Prussing

Nicole Masters

Principal Emeritus

David Elton

David Papp

Principal

Neil Brawley

TRUMPETS

Associate Principal

Kees Boersma

Maja Verunica

Geoff O’Reilly

Marnie Sebire

Emily Long

Biyana Rozenblit

Principal

Carolyn Harris

Assistant Principal

Elizabeth Neville

Philippa Paige

Ben Jacks

Justin Williams

Principal Emeritus

Benjamin Li

Emma Sholl

Principal James & Leonie Furber Chair

Euan Harvey

Timothy Nankervis

Stan W Kornel

Principal

Robert Johnson

Associate Principal

Susan Dobbie

Shuti Huang

FLUTES

HORNS

Associate Principal Robert & Janet Constable Chair

Fenella Gill

Emma Hayes

HARP

Principal Kim Williams AM & Catherine Dovey Chair Principal

Dene Olding

Supported by Premier Partner Credit Suisse and Symphony Services International

Roger Benedict

Assistant Principal

Maria Durek sydney symphony 2012 annual report

VIOLAS

Jessica Cottis

CONCERTMASTER

Christopher Harris Principal

TUBA

Steve Rossé Principal

TIMPANI

Richard Miller Principal

Mark Robinson Assistant Principal Timpani/ Tutti percussion

PERCUSSION

Rebecca Lagos Principal

Colin Piper

Justice Jane Matthews AO Chair

Top to bottom: Rowena Watts, Sydney Symphony Fellow at St James Church concert in Sydney; Guangzhou Arts Festival poster featuring Vladimir Ashkenazy and the Sydney Symphony.

YEAR IN REVIEW

No. of Performances

No. of Programs

Paid Occupancy

57,085

Thursday Afternoon Symphony

19,877

Emirates Metro Series

16,104

Meet the Music

16,146

Kaleidoscope

17,261

Great Classics

15,020

Tea and Symphony

14,482

Mondays @ 7

10,716

Discovery Program

3,831

International Pianists in Recital

4,125

Mozart in the City

3,836

Gala performances

12,912

31,569

115

222,964

Series

Ausgrid Master Series

115

CONCERTS

The Sydney Symphony presented 115 concerts in the Sydney Opera House and City Recital Hall Angel Place to 222,964 patrons. These performances included 92 concerts to which subscriptions are sold across 11 series, six gala performances and a further 17 performances which fall outside the main subscription series.

Commercial concerts

70 EDUCATION ACTIVITIES

300,00 Total

IN 2012 THE SYDNEY SYMPHONY PERFORMED OVER 200 CONCERTS TO MORE THAN 300,000 PEOPLE.

sydney symphony 2012 annual report

THE EDUCATION PROGRAM 30,786 knowledge seekers attended 70 education activities in 2012, excluding the Discovery concerts.

Three open rehearsals were held at the Sydney Opera House, with 295 teachers and students attending.

23,890 teachers and students attended 39 schools concerts in Sydney and a further 2,178 teachers and students attended education programs in regional areas in conjunction with the Sydney Symphony’s other touring activities. Regional education activities took place in Coffs Harbour, Grafton, Newcastle, Taree, Singleton and Albury.

Five professional learning workshops were held in Sydney, attracting 525 teachers and students.

3,639 patrons attended 15 performances by the Credit Suisse Fellows in 2012 at venues including St James’ Church King St, Verbrugghen Hall, Blacktown Arts Centre, Goulburn Regional Conservatorium and the South Coast Correctional Centre.

A further eight professional learning workshops were held in regional areas for 259 teachers and students.

SYDNEY SYMPHONY APP DOWNLOADS

8,600 OVER

40 BROADCASTS ON ABC CLASSIC FM

31,569 ATTENDEES

COMMERCIAL COLLABORATIONS

00 525

TEACHERS & STUDENTS ATTRACTED TO LEARNING WORKSHOPS

The Sydney Symphony plans its seasons well in advance. Acknowledging that opportunities to perform in collaboration with popular commercial artists require a shorter planning window, the Company allocates a percentage of available orchestral playing time to these projects. This work is undertaken either with the Sydney Symphony taking the role of presenter or as a ‘band for hire’. In 2012 the Sydney Symphony performed in 17 concerts in this category which attracted 31,569 attendees.

TOURING & OUTREACH The Sydney Symphony performed at two free outdoor concerts in 2012:

Buzz Lightyear, Pixar in Concert.

Symphony in the Domain on January 21 – 35,000 Parramatta Park on March 10 – 4,500 The Sydney Symphony also gave concerts in Orange and Armidale, as well as its debut performance at The Concourse in Chatswood. As part of the orchestra’s annual regional touring activities the Sydney Symphony and Sinfonia ensembles performed in Grafton, Taree and Newcastle. Members of the Sydney Symphony Brass section performed in Armidale, Port Macquarie and Grafton. Further outreach also occurred in Singleton. 40 Sydney Symphony performances were broadcast on ABC Classic FM in 2012, and 10 concerts were sent to the European Broadcasting Union. Six performances were made available for streaming on the BigPond website and via the Sydney Symphony’s free mobile app. Three Mahler discs (Symphonies 9, 10 and 2) were released by the Sydney Symphony in 2012, in addition to recordings of Prokofiev’s Romeo and Juliet and Tchaikovsky’s Violin Concerto. ABC Classics also released Kalkadungu, which featured the Sydney Symphony.

Sydney Symphony musicians performed in four Music4Health events in 2012, at Montefiore Randwick, Montefiore Hunters Hill, Mt Pritchard Autism Advisory and Support Service and the Powerhouse Museum. Sydney Symphony musicians also continued to contribute to the wider community in their capacity as teachers and members of community music groups. Under the direction of Principal Conductor and Artistic Advisor Vladimir Ashkenazy, the Sydney Symphony toured China in 2012. Performances were given in Tianjin, Beijing, Guangzhou, Wuhan, Shanghai and Qingdao, with the tour marking the cultural highlight of year-long celebrations marking the 40th anniversary of diplomatic relations between Australia and China. Further outreach occurred at the Xinghai Conservatory, the first activities resulting from a Memorandum of Understanding with the institution signed in October 2012. Since April 2012, the Sydney Symphony’s mobile app has attracted approximately 4,500 visits per month. At the end of 2012, the Sydney Symphony App had received over 8,600 downloads across 51 countries.

CHAIRMAN’S REVIEW

John C Conde ao Chairman

In our 80th anniversary year the Sydney Symphony celebrated success, resilience and growth as an independent arts company, with its heritage dating back to 1932 and its formation by the Australian Broadcasting Commission. Our success over these eight decades reflects the strength of our mission, people, values and culture. The founders of the orchestra would be amazed by how far the orchestra has come, and would be excited about the opportunities ahead.

to substantially increase its international presence in Asia and has successfully signed Memorandums of Understanding with two significant cultural organisations in China, the Xinghai Conservatory, Guangzhou and The National Centre for the Performing Arts, Beijing. These agreements, combined with our outreach activities, including touring, will offer the Australian government and commercial entities substantial opportunities to further increase their exposure in the region.

The story of the Sydney Symphony once again demonstrates the Company’s ability to adapt, stay relevant and continue to flourish despite often challenging global economic and social changes. The Sydney Symphony proudly proclaims a heritage that is uniquely musical. From humble beginnings in 1932, the Sydney Symphony continues to adapt and to present classical music to a “high tech” 21st century community far removed from its initial radio audiences.

The Board’s focus on the key performance criteria embodied in our business plans, being Artistic Vibrancy, Access and Financial Stability, has again been soundly rewarded in 2012. We have exceeded targets in all key performance indicators in 2012 and produced a significant operating surplus of $425,613. I thank my fellow directors for their efforts during the year and I make special mention of Mr David Smithers AM who retired from the Board in May 2012 after 11 years of service. David was a dedicated Board member whose contributions as a director and as Chairman of the Board Finance Audit and Risk Committee were highly valued, and his governance skills were gratefully appreciated by directors, musicians and management.

sydney symphony 2012 annual report

The ability to adapt and stay relevant was also demonstrated clearly in 2012 when the Sydney Symphony embarked on a sixconcert tour of China, the second since 2009. This tour represented the climax to a celebratory year of events marking the 40th anniversary of diplomatic relations with the Peoples Republic of China. We are very proud, once again, to be flying the flag for Australia overseas and showcasing the calibre of our arts institutions to international audiences. The company has a bold vision

We acknowledge the continued support of our subscribers, donors and sponsors and thank the Australian Government, through the Australia Council for the Arts, and the NSW Government, through Arts NSW, for their invaluable assistance.

The fact that Sydney Symphony has grown to become a recognised brand, as well as a leader in orchestral music, shouldn’t be surprising to anyone who understands both the culture and spirit of the orchestra. And nothing is more important to delivering on our mission than the orchestra’s outstanding musicians. I am proud of the heights that the orchestra has reached under the inspirational leadership and guidance of Mr Vladimir Ashkenazy. We also are proud of the service of our dedicated management team led ably by our managing director Mr Rory Jeffes, and of the programs we have in place to serve our community. The passing of our 80th anniversary has seen many artistic highlights, with virtuoso solo performances from leading international and local artists. It is always a delight to view our passionate audiences enjoying classical music presented by such a world-class orchestra. We look forward to continuing in that vein for the next eighty years with equal energy and enthusiasm.

John C Conde ao Chairman

THE COMPANY HAS... SUCCESSFULLY SIGNED MEMORANDUMS OF UNDERSTANDING WITH TWO SIGNIFICANT CULTURAL ORGANISATIONS IN CHINA.

MANAGING DIRECTOR’S REVIEW

Rory Jeffes Managing Director

The milestone of the Sydney Symphony’s 80th anniversary was marked through a season of ambitious artistic projects, both to showcase the outstanding quality of our ensemble of musicians and to present our community with a diverse range of musical experiences – in the company of some of the finest conductors and soloists in the world. There were many significant highlights to the year, and whilst the retail environment in which we operate remained subdued, I am pleased to report that this landmark season connected strongly with our audiences. We have again achieved a surplus for the year while continuing to invest in major artistic projects, growing our education program and continuing our annual touring program. The success of the Company is built on the outstanding quality of our ensemble of musicians, supported by a dedicated and tireless administration team, Board and volunteers. It is truly a communal effort and all involved can be proud of the statement made through the Sydney Symphony’s 80th anniversary – both for the brilliance of the performances and for what this extraordinary organisation has become over the past eighty years.

Artistic achievements The Sydney Symphony celebrated a significant milestone across its entire 2012 season, marking the orchestra’s 80th anniversary year with an extensive program of special concert performances featuring many of the world’s finest performers. Record concert attendances were registered in Sydney and large audiences heard the orchestra beyond Australian shores, underlining the preeminent status of the orchestra in the minds of Australians and audiences further abroad. Vladimir Ashkenazy’s fourth season as the Sydney Symphony’s Principal Conductor and Artistic Advisor started with four powerful performances of Beethoven’s Ninth Symphony and culminated at the close of the year in a three-week Tchaikovsky Festival, which included two landmark opera-inconcert performances of Tchaikovsky’s opera Queen of Spades with Stuart Skelton and Dina Kuznetsova in the highly demanding leading roles of Herman and Lisa. The Sydney concert calendar also saw the much anticipated Australian debut performances of the remarkable German violinist AnneSophie Mutter, who performed Beethoven’s Violin Concerto on a program that also included Vladimir Ashkenazy’s authoritatively commanding performances of Shostakovich’s Fifth Symphony.

2012 WAS CLEARLY A YEAR OF VIBRANT ARTISTIC HEALTH, STRONG AUDIENCE CONNECTION AND BALANCED FINANCIAL OUTCOME. The 80th anniversary year was a year to celebrate many achievements and a year to revisit some of the historical milestones of previous years. A notable highlight of the season was the recreation of the orchestra’s first official performance in the Sydney Opera House on 29 September 1973, with Simone Young conducting these all-Wagner concerts and the American soprano Christine Brewer adding gala vocal splendour in excerpts from Tannhäuser, Tristan und Isolde and Götterdämmerung. The orchestra also remembered important visits to Sydney by eminent composers Igor Stravinsky and Aaron Copland, with compositions revisited to mark the orchestra’s anniversary. In addition, the orchestra awarded an 80th Anniversary Composition Prize to the Sydney-born composer Elliott Gyger, whose on air, dialogue for orchestra was premiered by the orchestras under the direction of Vladimir Ashkenazy in March 2012. Further composer highlights of the season included performances of major orchestral works by Richard Strauss, concertos by Brahms, as well as three important symphonies by Shostakovich and Tchaikovsky. A year of many celebrations included an important announcement securing a continuation of superlative artistic achievements in future seasons, with the appointment of the distinguished American conductor, David Robertson, as the Sydney Symphony’s Chief Conductor and Artistic Director from the start of the 2014 season. This announcement was greeted with much applause in the arts sector in Australia and overseas, and bodes extremely well for the future artistic health and vibrancy of the orchestra. David Robertson conducted two weeks of concerts in Sydney in June and July 2012, including a revival of William Barton’s and Matthew Hindson’s Kalkadungu, featuring William Barton as didjeridu soloist, and the Australian premiere of a piano concerto entitled Stumble to Grace

by American Steven Mackey, performed by Orli Shaham as piano soloist. These concerts further included performances of symphonies by Mozart, Prokofiev and Tchaikovsky, Thomas Adès’s stunning Violin Concerto Concentric Paths, with Anthony Marwood as soloist, and Vaughan Williams’s Fantasia on a Theme of Thomas Tallis. Major international soloists performed with the Sydney Symphony throughout its 80th anniversary season, and included, in addition to those already mentioned, violinists Lisa Batiashvili, Isabelle Faust and Julian Rachlin, pianists Behzod Abduraimov, Nicholas Angelich, Philippe Bianconi, Alexander Gavrylyuk, Andreas Haefliger, Angela Hewitt, Stephen Kovacevich and Garrick Ohlsson, as well as the superlative French oboist François Leleux and the Chinese cellist Jian Wang. In October 2012, the orchestra returned to China to perform six concerts in six cities (Tianjin, Beijing, Guangzhou, Shanghai, Wuhan, Qingdao) to mark the 40th anniversary of diplomatic relations between China and Australia, with Jian Wang appearing as soloist in the Dvo ák Cello Concerto and a specially commissioned encore for solo cello and four-part cello ensemble by Chinese composer Qigang Chen. In addition, the orchestra performed an orchestral encore entitled Reflection of the Moon on Erquan arranged by Jian’er Zhu. At the start of the year, the Sydney Symphony performed to large audiences the annual Symphony in the Domain concert, presenting, under the banner headline “The Young Ones”, highly talented young Australian soloists Emily Sun (violin) and Nicholas Russoniello (saxophone), and young Australian conductor Nathan Aspinall. Also within the Sydney Festival program, the orchestra played three sold-out performances of the full soundtrack to newly remastered film classic West Side Story.

MANAGING DIRECTOR’S REVIEW Further stunning presentations of the Sydney Symphony’s 80th anniversary season, included the second instalment of Peter Jackson’s The Lord of the Rings: The Two Towers with live orchestra soundtrack, and appearances in the orchestra’s eclectic Kaleidoscope series of superb guest performers Chris Botti (trumpet), Bramwell Tovey (pianist-conductor), Miguel Harth-Bedoya (conductor) and the Los Angeles Guitar Quartet. The year saw the return appearances of muchrespected guest conductors Oleg Caetani, Hannu Lintu, Robert Spano, Hugh Wolff and David Zinman, and successful debut appearances of conductors Andrew Grams, Jakub Hru˚ ša, Lothar Koenigs, Matthias Pintscher and Michael Stern. The season was a strong one for appearances by Australian performers, as it featured conductors Nicholas Carter, Richard Gill, Brett Kelly, Michael Mulcahy and Simone Young, instrumental soloists William Barton, Scott Davie, Amy Dickson, Piers Lane, Kathryn Selby, Oliver She and David Thomas, as well as vocal soloists including Fiona Campbell, José Carbó, Deborah Humble, Jacqueline Porter and Sally-Anne Russell. Musicians of the orchestra also appeared as soloists, including fine performances by Roger Benedict and Dene Olding, as well as percussionists of the orchestra as soloists in Takemitsu’s From Me Flows What You Call Time, and the cello section of the orchestra in a special Tea & Symphony concert program.

Recordings The Sydney Symphony undertook two important commercial recordings during 2012, which featured live recordings of stellar concerto performances: ROSS EDWARDS Full Moon Dances – For ABC Classics Amy Dickson, saxophone; Miguel Harth-Bedoya, conductor

sydney symphony 2012 annual report

TCHAIKOVSKY Piano Concerto No. 2 – For Sydney Symphony Live Garrick Ohlsson, piano; Vladimir Ashkenazy, conductor

The Sydney Symphony Live catalogue now includes the MAHLER ODYSSEY cycle of the complete Mahler Symphonies conducted by its internationally acclaimed Principal Conductor and Artistic Advisor Vladimir Ashkenazy. Also completed and released in 2012 on the Sydney Symphony Live label is the recording of Prokofiev’s complete Romeo and Juliet ballet score, with Vladimir Ashkenazy conducting. These Mahler and Prokofiev recordings will appear in Japan and other Asian countries on the Japanese label OCTAVIA, by special arrangement. Completed in late 2011 and not yet released is a recording for the BIS label, which will appear in Australia in 2013 on the Sydney Symphony Live label: BRETT DEAN: The Lost Art of Letter Writing – Violin Concerto Frank Peter Zimmermann, violin; conducted by Jonathan Nott

Audience development In 2012 Sydney Symphony achieved its secondhighest classical ticket sales year, and also the third-highest number of seats sold per concert as compared to any year in the last 12 years of available records. In all, 191,401 subscription and single tickets were sold to 92 subscription and 6 special event performances, averaging 1,953 paid seats per performance. The total number of subscription package seats sold increased by 2% over levels achieved in 2011, and more than 23,617 subscription packages were transacted. Subscription seats accounted for 63% of all seats sold, and over 120,000 seats were sold as part of subscription packages: also the highest level achieved of any year since 2001. Paid tickets per concert overall were down slightly on 2011 levels. The company enjoyed full houses for many events, averaging 84% paid of available capacity; also down slightly from 86.4% paid of available capacity in 2011. In 2012, 17 commercial performances of six discrete programs were presented to over 31,000 paying customers. The total paid audience footprint for all concert events in 2012 was 222,964.

WE ARE PROUD OF OUR CORPORATE PARTNERSHIPS AND THE RELATIONSHIPS WE HAVE WITH INDIVIDUAL PATRONS.

Sydney Symphony partners Sydney Symphony is the only symphony orchestra in Australia that generates significantly more income through its own activities than the level of funding we receive from Federal and State governments. This funding is nevertheless critical to the success and vibrancy of the organisation and we acknowledge this support from Australia Council for the Arts and Arts NSW and remain committed to delivering both artistic excellence and excellent value through our work. We are proud of our corporate partnerships and the relationships we have with individual patrons. The ongoing support of our Principal Partner, Emirates, is worthy of special mention – a wonderful partnership that is now in its 11th year; also our Premier Partner Credit Suisse, whose support enables so many of the outstanding gala presentations that we are able to bring to our audiences, as well as their support for our outstanding young Fellows. The philanthropic support of our patrons has again played a key role in enabling us to achieve many of our artistic and education goals and I thank them all for this enlightened support on behalf of the whole Sydney Symphony community. 2012 was clearly a year of vibrant artistic health, strong audience connection and balanced financial outcome. Feedback from visiting conductors and soloists confirms the orchestra in exceptional form and I pay tribute to the extraordinary talent and skills of our players that make being in the audience such a pleasure and privilege. In this, his fourth year as Principal Conductor and Artistic Advisor, we also celebrate the extraordinary and inspirational leadership of Vladimir Ashkenazy. He has brought so much to the Sydney Symphony over his tenure – we all owe him an enormous amount. An outstanding musician by any measure, we remain greatly honoured and invigorated by his boundless energy and enthusiasm for music-making; he is truly a unique and much loved leader. Finally our thanks go to our Chairman, John Conde, and the Board of Directors for their wisdom and tireless support in helping the orchestra to achieve our ambitions. Their commitment, counsel and practical engagement contribute immeasurably to the success of the company.

Rory Jeffes Managing Director

FIVE YEAR PERFORMANCE SUMMARY World and Australian Premieres During 2012, the Sydney Symphony gave the first performances of the following works:

QIGANG CHEN You and Me For Solo Cello and Cello Ensemble World premiere

BARRY CONYNGHAM Symphony World premiere

ROSS EDWARDS Full Moon Dances

REVENUE BY CATEGORY

ATTENDANCES Attendance strong in Sydney & regional NSW.

SELF GENERATED REVENUE AT 64% OF TOTAL INCOME.

350 300

Saxophone Concerto – Revised, final version: World premiere

23,765

100

Sydney Opera House

22,121

50 0

19,543

ELLIOTT GYGER on air, dialogue for orchestra – 80th Anniversary Composition Prize - World premiere

LACHLAN SKIPWORTH nezasa For the Sydney Symphony Fellows – World premiere

64% Self generated revenue

– World premiere

HENRI DUTILLEUX Mystère de l’instant – Australian premiere

STEVEN MACKEY Stumble to Grace Piano Concerto – Australian premiere

RESERVES TO OPERATING EXPENSES Reserves above mandatory limits.

12,831

13,028

13,539

13,259

OPERATING PROFIT

Funding revenue

JIM COYLE Orchestra!

Min 20% Required by Australia Council

In addition, the following works by Australian composers were programmed at Sydney Symphony concerts:

BRETT DEAN Ariel’s Music

Surplus

12,493

WILLIAM BARTON and MATTHEW HINDSON Kalkadungu

200 150

20,443

CARL VINE Piano Concerto No. 2

250

Metropolitan and NSW regions

24,540

AUD ('000)

('000)

('00) 15

36%

10 5 0 -5

PHIL JAMESON Introduction and Rondo

-10

ELENA KATS-CHERNIN Mater PETER SCULTHORPE Sun Song PAUL STANHOPE Groundswell

PAID OCCUPANCY Main stage occupancy at 84%.

PAUL STANHOPE Jet-Stream

FUNDING INDEXATION vs CPI Funding indexation lags CPI rate. (%)

(%)

PAUL STANHOPE Spin Dance PAUL TERRACINI Gegensätze PAUL TERRACINI Pange Lingua

3.5

2.5

1.5

CPI – All groups Government Funding Index

sydney symphony 2012 annual report

In 2012 I was proud to conduct the Sydney Symphony in its 80th anniversary season. We opened the year with the stirring music of Beethoven and his Symphony No.9 with a superb cast of soloists and Sydney Philharmonia Choirs. Throughout the year we welcomed a wonderful array of guest artists including the Australian debut performances of violinist Anne-Sophie Mutter, the return of the wonderful cellist Jian Wang and pianist Garrick Ohlsson. To round out the year, we focussed on the music of Tchaikovsky including a concert version of The Queen of Spades, not heard in Australia for some 30 years. International touring is a significant annual event in the orchestraâ&#x20AC;&#x2122;s calendar and in 2012 we toured China. Our tour was a major cultural highlight in a year which marked the 40th anniversary of diplomatic relations between Australia and China. It was an honour to present the Sydney Symphony to Chinese audiences under such a banner. I am supremely excited to be surrounded by the talented musicians of the Sydney Symphony. It was a year of outstanding music-making by this ensemble of musicians who are amongst the very best in the world. Vladimir Ashkenazy Principal Conductor and Artistic Advisor

COMMUNITY EDUCATION AND ARTIST DEVELOPMENT “Music gives a soul to the universe, wings to the mind, flight to the imagination and life to everything. Education is teaching our children to desire the right things.” Plato Initiative and innovation without compromise was the 2012 motto of the Education team. As more and more companies compete for a voice in the education market, many of them mirroring our programs in their own organisations, we need to remain vibrant and groundbreaking without compromising on quality or relevance.

sydney symphony 2012 annual report

The bulk of our reach remains with schools concerts and we delivered thirty schools concerts and a number of main stage performances in our Meet the Music and Discovery programs, reaching a vast number of children. These concerts are performed in the Sydney CBD and Homebush and regionally in the north this year in Grafton, Taree and Newcastle. Playerlink was in Albury, which drew a large pool of players from the Riverina and Canberra districts down to the border. As always, every education performance included at least one Australian work, and we were pleased to debut Orchestra! by Jim Coyle, especially written for our schools performances in 2012, and a number of works by Paul Stanhope which he also tailored to our concert needs. This meant we were able to have the composers in the room with the students as they heard this music played live for the very first time – a truly enriching experience for players and audience members. The reach of our Professional Learning Program continues to expand as we for the first time presented workshops in Brisbane and Perth. Digital initiatives have been trialled in partnership with the Sydney Opera House. We simultaneously presented our Meet the Music workshop to four hundred people in the concert hall and sixty students in the Orange Regional Conservatorium. Later in the year we trialled a digital teacher training workshop beamed into eight remote public schools. Despite the success of these activities, it seems that nothing replaces the opportunity for teachers to get together and workshop collegially, so we will continue with our vast national program of professional learning in centres around Australia while we can afford it. Having been heavily involved in the development of the Australian Curriculum in the Arts which will be implemented in all schools over the next few years, the education team have started tailoring their materials accordingly and were approached to provide teacher resources to support the rolling out of the curriculum around the country. The importance of training teachers was highlighted in a speech by Minister of School Education, Peter Garrett, who said he would be looking to organisations such as ours to continue the good work in equipping teachers with the materials and confidence to deliver quality music programs in their classrooms. This initiative remains a focal point of the education program as we move forward.

Clockwise from above: Sydney Symphony schools concert at the ABC, Ultimo; Sydney Symphony Sinfonia training orchestra and Sydney Conservatorium students at a repertoire reading at the ABC, Ultimo, with conductor Daniel Carter; Jessica Cottis, Assistant Conductor, on the China tour with the Sydney Symphony.

Our regional outreach widened with the instigation of a community orchestra workshop incorporated into the regional tour program. Supporting the often isolated regional conservatoriums is a valuable way we can enrich the wider musical communities we pass through, and we are expanding the range of workshops for teachers and students we offer in these institutions. In 2012 we were delighted to meet the local members of the Upper Hunter Regional Conservatorium Orchestra and join their rehearsal, spending a number of hours making music. 2012 also marked Richard Gill’s twentieth anniversary as the Artistic Director of the Education Program. During his time with us Richard has been the inspiration behind the Sinfonia mentoring orchestra and the format of our schools program, and he initiated and presents the main stage Discovery Concert series. A work by Barry Conyngham was commissioned by the orchestra and conducted by Richard in the final Meet the Music concert of the year to celebrate this occasion. His vision for the program continues undaunted and his passion improving for music education for all continues to be his motivating catchcry. Richard’s involvement with the orchestra has changed over the years as the Education Program has expanded, from being very hands on, and presenting many of the Schools programs, evolving into more of an advisory role. In 2012 he facilitated a training workshop for the Sinfonia Mentors, focussing on the goals and objectives of our developing artist program and consideration of best practice and role modelling. The

Sydney Symphony Sinfonia mentoring orchestra continues to deliver the majority of the education programs, and an increase to the stipend and travel assistance program resulted in a large pool of individuals auditioning for this amazing apprenticeship type opportunity from around the country. Richard also ran the Discovery concert series and the Sinfonietta composition project workshops which focussed upon the art of writing counterpoint. The majority of the Fellowship program in 2012 continued to lie in a series of chamber music performances in and around the greater Sydney region. A new initiative was a visit to the South Coast Correctional Centre in Nowra, part of our week long residency at the Bundanon Trust property on the South Coast of NSW. The Fellows and Roger spent two mornings working with Maximum Security inmates at this new gaol, working with a group of 30 inmates and focussing upon working together and communicating both on and off the stage, with the ensemble as the model. They played excerpts of works by Mozart, Beethoven and Prokofiev and all involved found it quite a life-changing experience. The Fellows performed at the launch event for the Sydney Symphony Vanguard initiative. Here they mesmerised the audience playing the Martin Nonet with a break dancer posing as the conductor. This extraordinary event can be viewed on the Sydney Symphony YouTube channel. Sydney Symphony Vanguard is a natural fit for the Fellows, which introduced these, the orchestra’s youngest performers, to some of the young professional supporters of the orchestra.

Perhaps the most exciting initiative for 2013 was the relationship formed with the Xinghai Conservatorium of Music in Guangzhou, China. This relatively young conservatorium has a student population of almost four thousand and the administrators have welcomed our overtures to work with them on a regular basis. October saw the principal players of the orchestra working with the members of the student orchestra and other instrumentalists, a rehearsal under Mr Ashkenazy’s baton whilst on the China Tour, and a later master class with student soloists and a chamber ensemble in December presented in front of the Hon Simon Crean, who was visiting as part of the celebration of forty years of China and Australia trade relations. We look forward to a reciprocal visit from students and teachers of the Xinghai Conservatorium in 2013. The breadth and reach of the education program of the Sydney Symphony continues to be unparalleled in this country. We offer a unique apprenticeship to the next generation of performers and composers; and deliver a quality education package of classroom music learning culminating in a concert experience which is second to none. The vision and enlightenment of our corporate and individual sponsors and donors, the orchestra’s desire to share their knowledge and nurture emerging artists, and hours of hard work from a selfless body of volunteers and staff combine to create something unique with an international reputation for excellence.

COMMUNITY TOURING China tour As part of celebrations marking the 40th anniversary of diplomatic relations between Australia and China, the Sydney Symphony embarked on a six-city tour of China in October 2012. Under the direction of Sydney Symphony Principal Conductor and Artistic Advisor, Mr Vladimir Ashkenazy, the musicians performed in the Chinese cities of Tianjin, Wuhan, Qingdao, Shanghai at the Oriental Arts Centre, Guangzhou at the city’s newly built opera house and in Beijing at the famous National Centre for the Performing Arts – commonly referred to as ‘The Egg’. The China Tour was another demonstration of the orchestra’s position as one of Australia’s leading cultural institutions. On tour, the Sydney Symphony performed Shostakovich’s Symphony No. 10, Beethoven’s Symphony No. 4 and was joined on stage in Tianjin, Beijing, Wuhan and Shanghai by one of the world’s most acclaimed cellists, Jian Wang, performing the Dvorˇák Cello Concerto.

THE TOUR PROGRAM SCHEDULE WAS AS FOLLOWS: WEDNESDAY 17 OCTOBER

TIANJIN, TIANJIN GRAND THEATRE FRIDAY 19 OCTOBER

BEIJING, NATIONAL CENTRE FOR THE PERFORMING ARTS

sydney symphony 2012 annual report

SUNDAY 21 OCTOBER

GUANGZHOU, GUANGZHOU OPERA HOUSE TUESDAY 23 OCTOBER

WUHAN, WUHAN QINTAI CONCERT HALL WEDNESDAY 24 OCTOBER

SHANGHAI, ORIENTAL ARTS CENTRE FRIDAY 26 OCTOBER

QINGDAO, QINGDAO GRAND THEATRE

The orchestra also premiered a newly commissioned arrangement for cello ensemble of a piece by Chinese composer Qigang Chen titled You and Me. In addition to concert performances, the Sydney Symphony undertook a range of outreach activities in the city of Guangzhou in partnership with the Guangzhou Opera House and the Xinghai Conservatory of Music (XCM), the only higher music education institution in Southern China. Whilst in Guangzhou, a number of Sydney Symphony musicians plus cellist Jian Wang led instrument tutorials for students in orchestral technique and tradition. The students then took part in a rehearsal conducted by Vladimir Ashkenazy. These were pilot phase activities in the lead up to the development of a long-term program of masterclasses, exchanges, orchestral workshops, commissions and tour performances which will be further enhanced and facilitated through digital technology. These activities will be conducted under the umbrella of the Memorandums of Understanding with both the Xinghai Conservatory, Guangzhou and The National

Centre for the Performing Arts, Beijing completed in the course of 2012. These relationships will also set the framework for the orchestra to make a significant contribution to Australian engagement in the Asian Century through culture and people-topeople diplomacy. The Sydney Symphony’s 2012 China Tour was made possible thanks to the support of the NSW Government through the Arts NSW, the Australian Government through the Australia Council, and corporate organisations. Touring sponsors played an integral role, with longterm partners Xstrata Australia and Tianda Australia using the concerts to showcase Australian excellence and as an opportunity to develop closer commercial relationships. Assistance was also provided by the Australia China Council and government agencies.

THE CHINA TOUR WAS ANOTHER DEMONSTRATION OF THE ORCHESTRA’S POSITION AS ONE OF AUSTRALIA’S LEADING CULTURAL INSTITUTIONS.

Regional and Interstate Touring Summary The following table summarises all regional and interstate activity conducted by the Sydney Symphony in 2012.

10 MARCH

Free outdoor concert, Parramatta Park

3 0 M AY

15-17 JUNE

Fellowship, School Concerts, Nowra

Sydney Symphony/Sinfonia Regional Tour, Taree

27 APRIL

3 1 M AY

Brass Tour, Armidale

26 APRIL

Playerlink, Albury

30 AUGUST

10 MARCH

Fellowship concert, Goulburn

Fellowship concert, Nowra

Sydney Symphony/Sinfonia School Concerts, Taree

Fellowship concert, Berry

Sydney Symphony/Sinfonia Regional Tour, Grafton

13 APRIL

3 0 M AY

11 MARCH

Sydney Symphony, Mozart, Orange

COMMUNITY ACCESS

Below: Violinist Sun Yi, originally from Shanghai, rehearses with the Sydney Symphony in his home town

Sydney Symphony/Sinfonia School Concerts, Grafton

31 AUGUST

Brass Tour, Port Macquarie

2 9 M AY

1 JUNE

Sydney Symphony/Sinfonia Regional Tour, Newcastle School Concerts, Newcastle

Sydney Symphony/Sinfonia Community Orchestra Workshop, Muswellbrook/ Singleton

The Sydney Symphony continued its awardwinning music4health program, providing performances to patients in aged care centres and working with people with disabilities in various institutions across the Sydney metropolitan area. A practical manifestation of the health industry’s recognition of the therapeutic power of music, the program provides entertainment and a deep level of engagement for people with health, aged care and disability needs who have little or no access to live music. In 2012, four music4health visits were made to a range of audiences. As part of the initiative of the Australian Music Therapy Association and ‘Music-Play for Life’ (a program of the Music Council of Australia), a group of musicians performed at the Montefiore aged care facility in Randwick for a group of 150 residents. The success of the event saw the Sydney Symphony perform an additional recital at Montefiore’s Hunters Hill campus. In conjunction with the Autism Advisory and Support Service, musicians engaged with 400 children with autism, cerebral palsy and Down syndrome as well as their carers and families, in a concert that saw lots of children take to the stage and enthusiastically perform alongside our musicians. Sydney Symphony also visited the Powerhouse Museum, performing with the in-house musicians of ThinkSpace, the Museum’s digital learning centre that provides music workshops to adults with disabilities. The performance was part of the NSW Government’s monthlong campaign ‘Don’t DIS my ABILITY’.

Brass Tour, Grafton

1 SEPTEMBER

2 JUNE

Community performances for health and wellbeing

1 SEPTEMBER

Sydney Symphony, Mozart Chatswood

Outdoor concerts Symphony in the Domain is one of Sydney’s landmark free events, traditionally ending with Tchaikovsky’s 1812 Overture, complete with cannons and fireworks. In 2012 the concert attracted an audience of 35,000. The Sydney Symphony also performed at Parramatta Park to an audience of 4,500 people.

Webcasting In 2012, the Sydney Symphony’s webcasting activity continued, in collaboration with Telstra BigPond and ABC Classic FM, with six concerts being streamed live and made available free on demand through BigPond TV. These can be viewed at http://bigpondmusic. com/sydneysymphony and are also available on the SSO App. Webcasting is an important addition to our outreach both nationally and internationally, and is of particular benefit to those less mobile, and to people in regional or remote areas of Australia who want to experience an orchestral performance but are unable to attend in person.

“THE CONTINUAL AND AUDIBLE CHEERING OF THE CHILDREN SHOWED HOW MUSIC CAN CUT THROUGH THEIR CONDITION. THE MUSIC’S ENCHANTING QUALITIES BROUGHT COUNTLESS SMILES TO [THEIR] FACES...IT WAS AN INSPIRING DAY.” Mr Nick Lalich MP, Member for Cabramatta.

SUPPORTERS – DONORS & SPONSORS Philanthropy Report In 2012, patrons of the Sydney Symphony facilitated many special initiatives for the orchestra.

Gagliano & Pressenda Through a series of donations to the Instrument Fund, the orchestra was able to acquire two outstanding violins to support the quality of sound in the string section. These were a GF Pressenda violin made in Turin in 1845 and a Gagliano violin made in Naples in 1769. The Pressenda is being played by Marianne Broadfoot and the Gagliano by Associate Concertmaster, Sun Yi. These new instruments, the ninth and tenth instruments purchased by the Sydney Symphony, form a collection that is capable of producing great beauty and richness of sound – creating a string section that is far greater than the sum of its parts. The Instrument Fund, which is funded entirely by donors, ensures these instruments remain on the concert platform where they belong, and at the same time strengthens the financial position of the Sydney Symphony.

Joan Mackenzie Memorial Scholarship In May 2012, the Sydney Symphony community was saddened by the death of Mrs Joan Mackenzie – one of its greatest advocates and life-long friends. Through a generous bequest left to the orchestra by Joan and the matching of that gift by Joan’s nephew Gavin Solomon and his wife Catherine Solomon,

the orchestra was honoured to inaugurate the Joan Mackenzie Memorial Scholarship. This is an annual award covering all travel expenses and private lessons for an outstanding applicant to the SSO’s Sinfonia mentoring orchestra.

Sydney Symphony Vanguard In March 2012, the Sydney Symphony Vanguard was launched at the Sydney Opera House with great fanfare and a raised eyebrow or two! The brainchild of a group of gen-x Sydney movers and shakers, Vanguard is a membership program, professional network, social group and succession plan – all in one. Responding to the needs of its members, the steering group has created an opportunity to experience the excitement of live classical music performances – in a shorter format, usually with a twist – and with the great benefit of meeting and getting to know members of the SSO. With an expanding member base and growing awareness and interest in the incredible benefits the orchestra returns to its communities, Vanguard is about harnessing energy and passion and demonstrating the impact a member can make by becoming a donor of this flagship cultural institution.

Maestro’s Circle The Maestro’s Circle continued to support the special projects of Mr Vladamir Ashkenazy which included special guest performances from internationally acclaimed artists. In 2012 Sydney Symphony audiences were enthralled by the March performances

sydney symphony 2012 annual report

SYDNEY SYMPHONY MAESTRO’S CIRCLE

with visiting guest violinist, Anne-Sophie Mutter. Visiting Australia for the first time, Ms Mutter joked with media that she now could not understand ‘what took me so long!’ Her performances of the Beethoven Violin Concerto were a highlight of a stunning year celebrating the orchestra’s 80th Anniversary. What is not well known is that Anne-Sophie’s concerts in Sydney were made possible by the dedicated support of a group of patrons – the Maestro’s Circle. Since 2009, members of the Maestro’s Circle have contributed more than $2 million to support the great artistic initiatives of the ‘Ashkenazy era’. We owe the members a great deal of thanks – for these, without doubt, were performances that will be remembered for a lifetime.

Giving Back In 2012, the Sydney Symphony was privileged to be able to support the work of 54 fellow not-for-profit organisations. By providing gift vouchers to support fundraising initiatives in the arts, social welfare, health and education sectors, the Orchestra contributed $12,000 of in-kind assistance to these important organisations.

Volunteers In 2012, Sydney Symphony volunteers contributed 361 hours of work in the areas of education, marketing, box office, philanthropy and administration. This represents a cost saving of approximately $16,000 to the Orchestra, and the Sydney Symphony offers its grateful thanks to all volunteers for their generous contributions.

SYDNEY SYMPHONY LEADERSHIP ENSEMBLE

Geoff Ainsworth am & Vicki Ainsworth

Mr Fred Street am & Mrs Dorothy Street

Alan Fang, Chairman, Tianda Group

Tom Breen & Rachael Kohn

Peter Weiss ao Founding President & Doris Weiss

Tony Grierson, Braithwaite Steiner Pretty

John C Conde ao Chairman In memory of Hetty & Egon Gordon Andrew Kaldor am & Renata Kaldor ao Roslyn Packer ao Penelope Seidler am

Westfield Group Brian & Rosemary White Ray Wilson oam in memory of James Agapitos oam

Insurance Australia Group Stephen Johns, Chairman, Leighton Holdings, & Michele Johns Andrew Kaldor am, Chairman, Pelikan Artline Lynn Kraus, Sydney Office Managing Partner, Ernst & Young

David Livingstone, CEO, Credit Suisse Australia Macquarie Group Foundation John Morschel, Chairman, ANZ Shell Australia Pty Ltd James Stevens, CEO, Roses Only

ENERGY & PASSION Nacho Pop with the Sydney Symphony Fellows at the Sydney Symphony Vanguard launch at the Sydney Opera House

DIRECTORS' CHAIRS For information about the Directors' Chairs program, please call (02) 8215 4619.

Roger Benedict

Lawrence Dobell

Diana Doherty

Richard Gill oam

Jane Hazelwood

Principal Viola Kim Williams AM & Catherine Dovey Chair

Principal Clarinet Anne Arcus & Terrey Arcus AM Chair

Principal Oboe Andrew Kaldor AM & Renata Kaldor AO Chair

Artistic Director Education Sandra & Paul Salteri Chair

Viola Veolia Environmental Services Chair

Catherine Hewgill

Robert Johnson

Elizabeth Neville

Colin Piper

Emma Sholl

Principal Cello The Hon. Justice AJ & Mrs & Fran Meagher Chair

Principal Horn James & Leonie Furber Chair

Cello Ruth & Bob Magid Chair

Percussion Justice Jane Matthews AO Chair

Associate Principal Flute Robert & Janet Constable Chair

DONORS & SPONSORS PLATINUM $20,000+

SILVER

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Allan & Julie Bligh

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$1,000 – $2,499

$500 – $999

Brian Abel

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Mr Robert Brakspear

Colin Draper & Mary Jane Brodribb

Mr Peter Lazar AM Prof. Winston Liauw

Philip Diment AM & Bill Zafiropoulos

Lenore P Buckle

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Elizabeth Donati

M Bulmer

Dr David Luis

The Dowe Family

In memory of R W Burley

Macquarie Group Foundation

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Debby Cramer & Bill Caukill Constable Estate Vineyards

Renee Markovic

John Favaloro

Mr John Cunningham SCM & Mrs Margaret Cunningham

Deidre & Kevin McCann

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Mr John Gaden

Ms Jackie O'Brien

Vivienne Goldschmidt

Robert Albert AO & Elizabeth Albert Terrey Arcus AM & Anne Arcus Tom Breen & Rachael Kohn

Mr David & Mrs Halina Brett Mr Robert & Mrs L Alison Carr Howard Connors

Sandra & Neil Burns

Mrs Joyce Sproat & Mrs Janet Cooke

Mr John C Conde AO

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Colin Goldschmidt

Michael Crouch AO & Shanny Crouch

The Greatorex Foundation Pty Ltd

James & Leonie Furber

Mr Rory Jeffes

Dr Bruno & Mrs Rhonda Giuffre

Mr Ervin Katz

In memory of Hetty & Egon Gordon Andrew Kaldor AM & Renata Kaldor AO D & I Kallinikos

The Estate of the late Patricia Mary Lance William McIlrath Charitable Foundation Timothy & Eva Pascoe

James N. Kirby Foundation

Rodney Rosenblum AM & Sylvia Rosenblum

The late Joan MacKenzie

Manfred & Linda Salamon

Mrs Roslyn Packer AO

Michael & Mary Whelan Trust

Paul & Sandra Salteri G & C Solomon in memory of Joan MacKenzie

Caroline Wilkinson Anonymous (2)

Mr Fred Street AM & Mrs Dorothy Street Peter William Weiss AO & Doris Weiss Mr Brian & Mrs Rosemary White Kim Williams AM & Catherine Dovey Ray Wilson OAM in memory of James Agapitos OAM

GOLD

$10,000 – $19,999 Stephen J Bell Alan & Christine Bishop Ian & Jennifer Burton Copyright Agency Cultural Fund

Greta Davis Lisa & Miro Davis Matthew Delasey Mr & Mrs Grant Dixon Mrs Margaret Epps Mr Ian Fenwicke & Prof. Neville Wills Mr James Graham AM & Mrs Helen Graham Warren Green Akiko Gregory Edward & Deborah Griffin Mr Richard Griffin AM In memory of the late Dora & Oscar Grynberg

In memory of Peter Everett

Clive & Jenny Goodwin

BRONZE

$500 – $999 Mrs Lenore Adamson

Mr Tony Grierson Mr Roger Henning Harry & Meg Herbert Sue Hewitt

Mr & Mrs Garry S Ash

Dorothy Hoddinott AO

Dr Francis J Augustus

Mr Joerg Hofmann

Barlow Cleaning Pty Ltd

Mrs Kimberley Holden

Beauty Point Retirement Resort

Mr Gregory Hosking

Mrs & Dr Margaret Bell

Niki Kallenberger

Mrs Jan Biber Minnie Biggs Dr Anthony Bookallil

Bill & Pam Hughes Mrs Margaret Keogh Dr Henry Kilham Dr Heng Tey & Mrs Cilla Tey

Janette Hamilton

Jan Bowen

Mrs Jennifer Hershon

R D & L M Broadfoot

Mrs Alma Toohey & Mr Edward Spicer

Michelle Hilton

Arnaldo Buch

Kevin Troy

The Hon. David Hunt AO QC & Mrs Margaret Hunt

Pat & Jenny Burnett

Gillian Turner & Rob Bishop

Ita Buttrose AO OBE

Prof. Gordon E Wall

Mr Andrew C Patterson

Ronald Walledge

Piatti Holdings Pty Ltd

Hon. Justice J C & Mrs Campbell

Andy & Deirdre Plummer

Dr Rebecca Chin Mrs Sarah Chissick

Ms Elizabeth Wilkinson

Robin Potter

Stephen Freiberg & Donald Campbell

Ernest & Judith Rapee

R A & M J Clarke

Kenneth R Reed

Mr & Mrs Coates

Firehold Pty Ltd

Patricia H Reid Endowment Pty Ltd

Coffs Airport Security Car Park

Dr John Roarty OAM in memory of Mrs June Roarty

Mr B & Mrs M Coles

Geoff Wood & Melissa Waites

Mrs Joan Connery OAM

Mr Graham North

Juliana Schaeffer

Chris J Kitching

Dr Mike O'Connor AM

In memory of Lorna Wright

Anna-Lisa Klettenberg

Mr R A Oppen

Judge David S Shillington

Mr Luigi Lamprati

Origin Foundation

Dr Agnes E Sinclair

Dr & Mrs Leo Leader

Dr A J Palmer

Catherine Stephen

Margaret Lederman

Dr Kevin Pedemont

John & Alix Sullivan

Ms Irene Lee

Dr Natalie E Pelham

The Hon. Brian Sully QC

Erna & Gerry Levy AM

Michael Quailey

Mrs W Stening

BRONZE

$2,500 – $4,999 Bob & Julie Clampett Ewen Crouch AM & Catherine Crouch The Hon. Ashley Dawson-Damer

Vic & Katie French Michael & Anna Joel Gary Linnane R & S Maple-Brown Mora Maxwell Matthew McInnes J A McKernan

Mrs Margaret Wallis A Willmers & R Pal Audrey & Michael Wilson Dr Peter Wong & Mrs Emmy K Wong

Edward Federman

James & Elsie Moore

Nora Goodridge

Drs Keith & Eileen Ong

Mr Ross Grant

In memory of Sandra Paul Pottinger

Mildred Teitler

Sydney & Airdrie Lloyd

Renaissance Tours

In memory of H St P Scarlett

John E Tuckey

Mrs A Lohan

Anna Ro

Helen Lynch AM & Helen Bauer

David & Isabel Smithers

Mrs M Turkington

Panee Low

Lesley & Andrew Rosenberg

Marliese & Georges Teitler

Melvyn Madigan

Mrs Pamela Sayers

Ruth & Bob Magid

Mr & Mrs Yim

In memory of Joan & Rupert Vallentine

Alan & Joy Martin

Garry Scarf & Morgie Blaxill

Justice Jane Mathews AO

Anonymous (1)

Dr Alla Waldman

Philip & Catherine McClelland

Caroline Sharpen

Mr Robert & Mrs Rosemary Walsh

Mrs Toshiko Meric

Mrs Diane Shteinman AM

The Estate of the late Miss Ida Gugger

sydney symphony 2012 annual report

Mark Bethwaite AM & Carolyn Bethwaite

The Hon Justice A J Meagher & Mrs Fran Meagher Mrs T Merewether OAM Mr B G O'Conor Mrs Penelope Seidler AM Henry & Ruth Weinberg June & Alan Woods Family Bequest

BRONZE

$1,000 – $2,499 Mrs Antoinette Albert Andrew Andersons AO Mr Henri W Aram OAM Richard & Christine Banks David Barnes Nicole Berger

J F & A van Ogtrop

Ann & Brooks Wilson AM

Ms Irene Miller & Ms Kim Harding

Dr Richard Wing

P J Miller

Dr John Yu

Mr David Mills

Anonymous (10)

Kenneth N Mitchell

Dr & Mrs Michael Hunter

Ms Margaret Moore OAM & Dr Paul Hutchins AM

In Memory of Bernard M H Khaw

Peter & Virginia Shaw Ms Stephanie Smee Ms Tatiana Sokolova Doug & Judy Sotheren Mrs Judith Southam Mrs Karin Spiegel-Keighley Margaret Suthers

Chris Morgan-Hunn

Norman & Lydia Taylor

Mrs Milja Morris

Glenn & Everly Wyss

A Nhan

Mrs Robin Yabsley Anonymous (22)

THE SYDNEY SYMPHONY APPLAUDS THE LEADERSHIP ROLE OUR PARTNERS PLAY AND THEIR COMMITMENT TO EXCELLENCE, INNOVATION AND CREATIVITY. PRINCIPAL PARTNER

GOVERNMENT PARTNERS

PREMIER PARTNER

COMMUNITY PARTNER

PLATINUM PARTNERS

EDUCATION PARTNER

MAJOR PARTNERS

GOLD PARTNERS

SYMPHONY S E R V I C E S

AUSTRALIA SILVER PARTNERS

executive search

Television - Audio

REGIONAL TOUR PARTNERS

MARKETING PARTNER

2MBS FM 102.5 Fine Music Station

www.sydneysymphony.com

Sydney Symphony Limited AND ITS CONTROLLED ENTITIES A.B.N. 50 121 561 528

ANNUAL FINANCIAL REPORT 31 December 2012

Sydney Symphony Limited A.B.N. 50 121 561 528

Contents

Page

Directors Report

Corporate Governance Statement

Auditorâ&#x20AC;&#x2122;s Independence Declaration

Income Statement

Statement of Comprehensive Income

Balance Sheet

Statement of Changes in Equity

Cash Flow Statement

Notes to the Financial Statements

Directorsâ&#x20AC;&#x2122; Declaration

Independent Audit Report

Sydney Symphony Limited A.B.N. 50 121 561 521

Directors Report The Directors present their report together with the financial report of Sydney Symphony Limited, the Parent Entity and its controlled entity Sydney Symphony Orchestra Holdings Pty Limited (the Group) for the year ended to 31 December 2012. Directors The Directors in office, at any time during or since the financial period until the date of this report, are: John Conde AO (Chairman) Rory Jeffes (Managing Director) Terrey Arcus AM Ewen Crouch AM Ross Grant Jennifer Hoy Andrew Kaldor AM Irene Lee David Livingstone Goetz Richter David Smithers AM Company Secretary John Horn

Resigned 7th May 2012

Qualification of Directors Director Experience and Qualifications John Conde AO BSc, BE (Hons), Syd; MBA (Dist), Harv. (Chairman) Chairman of BUPA Australia Pty Limited Deputy Chairman of Whitehaven Coal Limited President of The Commonwealth Remuneration Tribunal Chairman Destination New South Wales and associated entities Director of DEXUS Property Company Director of AFC Asian Cup (2015) Chairman of the Australian Olympic Committee (NSW) Fundraising Committee Board Member of the McGrath Foundation Rory Jeffes MA, Oxon (Managing Director) Director Symphony Services Australia Limited Terrey Arcus AM BSc, BE (Hons), Syd; MBA (Dist), Harv. Director of Port Jackson Partners Limited Ewen Crouch AM BEc (Hons) LLB, SYD, FAICD Director, BlueScope Steel Limited Director, Westpac Banking Corporation Chairman, Mission Australia Alternate Director, Working Links (Employment) Limited Consultant, Allens (formerly Allens Partner 1988-2013 and Chairman of Partners 2009-2012) Ross Grant BSc (Hons), MCom (Hons), MBA Chairman of Grant Samuel Group Director of The Centre for Independent Studies Director of Australian Wildlife Conservancy Director of Australian Mitochondrial Disease Foundation Director of Waratahs Rugby Jennifer Hoy MMus (P); BMus Hons (P) Syd; Dip Law (LPAB) Violinist - Sydney Symphony Orchestra Andrew Kaldor AM BEc (Hons) Syd; MBA, Wharton Chairman of Pelikan Artline Pty Limited Chairman of Supertex Industries

Sydney Symphony Limited A.B.N. 50 121 561 521

Irene Lee

David Livingstone Dr. Goetz Richter

David Smithers AM

BA, Smith College, USA Barrister at Law, Inns of Court, School of Law, Gray's Inn, UK Non-Executive Director of QBE Insurance Company Independent Non-Executive Director, Cathay Pacific Airways Ltd Chairman of Hysan Development Company Ltd Member, Advisory Council, J.P. Morgan Independent, Non-Executive Director, Noble Group Limited Independent Non-Executive Director, CLP Holdings BEc (Hons) Macq; MA Cantab Managing Director, Credit Suisse Kstl, Staatsdiplom (Munich), BA (Hons I), Syd; PhD, Syd Violinist Associate Professor & Chair Strings, Sydney Conservatorium President, Sydney Schubert Society Inc. Artistic Director, Kendall National Violin Competition President, Live Music Sydney FCA Director of Genea Limited (formally Sydney IVF Limited) Director of Country Education Foundation Pty Limited Director of James N Kirby Foundation Limited

Principal Activities The principal activity of the Group was the performance of symphonic music. There were no significant changes in the nature of the activities of the Group during the year. Strategy The Group’s vision is to occupy the position of being a pre-eminent orchestra across the Asia-Pacific region within twenty years. This vision was updated during the year in conjunction with the formulation of a new five year strategic plan which was in transition in 2012. The strategy will be achieved through a combination of outstanding concert performances domestically and abroad, internationally-recognised education and artist development programs, and unparalleled accessibility and reach through the SSO’s competitive advantage in quality of performance, artistic vibrancy and digital dissemination and content production. Achievements against key strategic priorities in the 2012 financial year are outlined below; • Artistic Leadership The Principal Conductor and Artistic Advisor between 2009 and 2013 is Vladimir Ashkenazy. Vladimir Ashkenazy has led the orchestra in numerous important projects in the 80th anniversary year of the orchestra. The orchestra has announced the appointment of David Robertson as Chief Conductor and Artistic Director designate for five years from the 2014 season. • Emerging Artists The Group continues to support emerging artists through the promotion of young talented performers through vehicles such as the Sydney Symphony Assistant Conductor programme, Young and Emerging artist mainstage performances, Sydney Symphony Fellowship programme, Sydney Sinfonia training orchestra and the Sydney Symphony Sinfonietta programme for young composers. • International Touring The Group plans to continue with its programme of international touring to raise the profile and experience of the orchestra. In October 2012, the Orchestra performed to excellent reviews and full th houses in China, as part of a series of cultural events to mark the 40 anniversary of diplomatic relations between Australia and the People’s Republic of China.

Sydney Symphony Limited A.B.N. 50 121 561 521

• International Presence The Group plans to increase its presence in Asia through consolidated touring, education, and outreach activities. In 2012 the priority was to align domestic interests in Australia and develop relationships that would allow the group to progress the strategy in 2013 and onwards. The Group was successful in signing a Memorandum of Understanding with both the Xinghai Conservatory, Guangzhou and The National Centre for the Performing Arts, Beijing in 2012. These relationships will set the framework for the orchestra to make a significant contribution to Australian engagement in the Asian Century through culture and people-to-people diplomacy. • Orchestral Instruments To improve the quality of sound produced by the orchestra, the Group has an Instrument Reserve which continues to acquire fine instruments. The Group also supports musicians who wish to acquire fine instruments independently. Instrument Reserve funds were utilised to acquire three significant instruments, one cello and two violins, during the financial year. • Acoustic Improvement Sydney Opera House The Group is the resident orchestra at the Sydney Opera House and is in regular consultation with the Sydney Opera House to improve the acoustics in the main concert hall. • Education The Group has an award winning education programme and plans to continue with on line delivery and content innovations to increase the reach and impact of this programme throughout Sydney and regional NSW. • Regional Touring The Group tours annually to regional NSW to promote live symphonic music to the rural communities of NSW through a series of classical and education concerts. In addition to the above priorities, the Group continues with its strategic endeavours in respect of ongoing financial viability having significantly exceeded financial operating targets in 2012. Process for Self Assessment of Artistic Quality There is an approved process in place for self-assessment of artistic quality and the Board confirms that; a) the nature and the outcomes of this process have been discussed during the 2012 financial year; b) these outcomes have informed the future planning of the group; and c) the self assessment process in place draws on a variety of verifiable internal and external sources primarily: The Orchestra’s Artistic Committee. Listening panel sessions with musicians and administration. Peer Review panel c omprised of ex pert ac ademics, c ritics and c lassical m usic industry professionals. Assessment by Principal Conductor and Artistic Advisor. Assessment by visiting conductors and soloists. Assessment by ABC recording producers. Review through national and international press coverage. Audience feedback, through surveys and other communication channels. Reserves Policy The Group maintains a number of reserves as outlined in the financial statements and related notes to the financial statements. The Group, by virtue of the Tripartite Agreement between the controlled entity, the Australia Council and Arts NSW, is mandated to use reasonable endeavours to maintain and improve its overall financial viability, having regard to both reserves and annual results. The Group plans to maintain reserves at the minimum level of 20% of the group’s annual costs. At 31st December 2012, the level of reserves totalled 28% of the Groups’ annual costs (2011 - 27%).

Sydney Symphony Limited A.B.N. 50 121 561 521

Key Performance Indicators The Group’s business plan outlines the objectives and strategy for the Group and dictates the key performance indicators (KPIs) that the Group monitors, targets and measures. A summary of the 2012 KPI targets and achievements is outlined below; KPI Orchestra Artistic Performance

Definition Analysis and compilation of the results of the Artistic Self Assessment Process.

Target Critical Rating th greater than the 80 percentile during the year.

Results Achieved with overall performances in Australia and ChinaTour locations assessed as exceeding expectations.

Education Programme Development

Develop and enhance the Sydney Symphony’s world class education programme.

Complete and deliver on line kits to NSW school educators and enhance whiteboard kits.

Completed with online kits well received by educators.

Artform Development - Australian Compositions

Feature contemporary Australian composers and promote new commissions.

Achieve 2012 Australian content as per season programme and continue commission work for Australian premieres.

Australian content delivered as per programme. Three commissions have been completed in 2012 and a further three donor funded cocommissions are underway with leading Australian composers.

Audience Development - Occupancy

Occupancy levels for mainstage core programs.

80% average occupancy target.

84% occupancy levels achieved for 2012.

-Online Development and New Media

Online web content and services.

Enhance content and improve services.

A new website was constructed and launched in August 2012 with extended features and simplified sales and subscription processes.

Financial Stability - Reserves

Reserves to total group expenses.

Meet or exceed 20%.

Exceeded - actual reserves at 28% of group expenses.

Financial Stability - Operating result

Net operating result before reserve activities.

Meet or exceed annual budget.

Exceeded.

Review and Results of Operations The Group achieved a net operating result for the year of $361,708 (2011: $1,022,396) after including th Maestro Circle donations of $230,000 (2011: $256,000). In the Group’s 80 anniversary season, a number of exclusive gala concerts were performed to appreciative audiences, including a sold-out concert with leading international soloist, Anne-Sophie Mutter. The net operating result for the year was however impacted by inflationary pressures on costs exceeding the indexation levels on Government funding. The Group also increased its investment in the China Tour in line with the new strategy to increase the Groups presence and relationships in the Asian region. Instrument reserve donations received during the year were $63,905 (2011: $500,000) and accordingly the net profit for the 2012 financial year was $425,613 (2011: $1,522,396). The Group presented the Sydney Symphony, the Sydney Sinfonia and the Sydney Symphony Fellows in performances to a total audience of more than 300,000 people during the year ended 31 December 2012 in Sydney, outer metropolitan and regional NSW performing arts centres. In October 2012, the Company continued its international touring programme with a successful tour to China, achieving critical acclaim for its performances. Principal Conductor and Artistic Advisor, Mr Vladimir Ashkenazy, was conductor on the tour with guest soloist, Jian Wang.

Sydney Symphony Limited A.B.N. 50 121 561 521

State of affairs Other than as mentioned elsewhere, in the opinion of the Directors, there were no other significant changes in the underlying state of affairs of the Group that occurred during the year. Likely developments The Group has scheduled performances of symphonic and other orchestral music, which it will continue to present during the next financial year. The Group’s continuing viability is dependent on maintaining its current level of funding, especially government funding. The Group has the intention to continue with international touring in 2013 and has recently announced a tour to Russia and Europe. Dividends No dividends have been paid by the Group. Events subsequent to balance date No events have occurred subsequent to balance date and up to the date of this report that materially affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years. Environmental regulations and performance The Group is not subject to any particular or significant environmental regulation. Directors’ Meetings The number of meetings of the Board of Directors and of the Board Committees during the financial year are set out in the table as follows;

Meeting Type

Finance Audit & Risk

Board

Number of Meetings Attended

(A)

Number of Meetings Eligible

(B)

Nomination & Remuneration

John Conde AO - Note 1

Rory Jeffes – Note 1

Terrey Arcus AM

Ewen Crouch AM

Ross Grant

Jennifer Hoy

Andrew Kaldor AM

Irene Lee

Goetz Richter

David Livingstone

David Smithers AM

Note 1- Both the Chairman of the Board and the Managing Director and the Director of Finance attend meetings of the Finance Audit and Risk Committee by invitation. All other directors who are not committee members and the external auditors may attend the meetings of the Finance Audit and Risk Committee at their discretion.

Sydney Symphony Limited A.B.N. 50 121 561 521

Directors’ Remuneration Directors are not paid any fees for their services as Directors of the Group. Details of directors’ remuneration are disclosed in Note 21. Indemnification and insurance of Officers Information on the indemnification and insurance of officers can be found in Note 25. Auditor’s Independence Declaration The Auditor’s Independence Declaration forms part of the Directors Report, and is set out on page 10.

Signed in accordance with a resolution of the Directors:

John Conde AO Chairman th Sydney, dated 28 March 2013

Sydney Symphony Limited A.B.N. 50 121 561 521

Corporate Governance Statement This statement outlines the Group’s corporate governance practices and addresses the Essential Governance Practice Principles published and monitored by the Australia Council for the Arts. These principles are based on the recommendations published by the ASX Corporate Governance Council. As at 31 December 2012, the Group has achieved substantial compliance with the recommendations as outlined below; Principle 1: Lay Solid Foundations for Management and Oversight The Group’s Governance Framework incorporates Board and Board Committee Charters and a Code of Conduct. There is also a formal statement of delegated authority to management and an induction procedure for new directors. A Board agenda is set at the start of the year and includes meetings for the Board to determine group strategy, five-year business plans, and the programme for the following season, the budget for the following year and the Group’s annual risk review. Principle 2: Structure the Board to Add Value The Board includes Directors with a range of skills including finance and accounting, business (both public companies and private business) and commercial experience, public affairs, law, performance of orchestral music and music education. This experience is set out in their biographies. The Board is supported by a Finance, Audit and Risk Committee (refer Principle 5) and a Nomination and Remuneration Committee, each of which has an individual charter setting out its responsibilities and operating principles. The Nomination and Remuneration Committee has a number of responsibilities including reviewing, evaluating and making recommendations to the Board with regard to the election and re-election of Members, Directors and Sydney Symphony Councillors, and executive remuneration. The Nomination and Remuneration Committee also advises the Board on the process for the Board performance review, reviews the performance of the Chief Conductor, Managing Director and senior management and establishes policies for recruitment, retention and succession planning for senior management. Principle 3: Promote Ethical and Responsible Decision Making The Group’s Governance Framework includes a Code of Conduct, Delegations of Authority, Board and Committee charters, Risk Management policies as well as clearly defined roles and responsibilities for key appointments. Principle 4: Promote Diversity The group aims to be an organisation that fosters an organisational culture that embraces diversity. “Diversity” includes, but is not limited to, gender, age, ethnicity, disability and cultural background. During the course of the current year, further work on the diversity action plan will be finalised with measurable objectives designed to enhance our commitment to promote diversity in the workplace. Progress against this plan will be incorporated in the Annual Report for the year ending 31 December 2013. Principle 5: Safeguard Integrity in Financial Reporting (both internal and external) The Finance, Audit and Risk Committee meets at least quarterly and its functions include: •

Reviewing and reporting to the Board on quarterly and annual financial statements

•

Making recommendations regarding the appointment, evaluation and removal of the Group’s external auditor and reviewing and reporting to the Board on the adequacy, scope and quality of the annual statutory audit and on the integrity and reliability of the financial statements

•

Reviewing the effectiveness of the Group’s internal control environment, including the effectiveness of internal control procedures

•

Monitoring and reviewing the reliability of financial reporting

•

Monitoring and reviewing the compliance of the Group with applicable laws and regulations 8

Sydney Symphony Limited A.B.N. 50 121 561 521

•

Monitoring the scope of any key control reviews and approving the engagement of qualified consultants to complete specified reviews

•

Monitoring and reviewing the financial management and position of the Group.

The Finance, Audit and Risk Committee meets with the external auditors at least once per year. The Committee requires the Managing Director and Director of Finance to attest in writing that the Group’s financial reports present a true and fair view of the Group’s financial condition and operational results and are in accordance with relevant accounting standards. This statement is requested at the time of the consideration and approval of the Statutory Accounts. It is reviewed by the Finance, Audit and Risk Committee prior to its consideration by the Board. The Committee consists of up to four Directors and, by invitation, the Chairman of the Board, the Managing Director and the Director of Finance and includes members with appropriate audit, finance and risk management skills. Principle 6: Recognise the Legitimate Interests of Stakeholders The Group has numerous stakeholders and a calendar is maintained in order to monitor requirements and reporting obligations. The calendar is approved by the Board, which oversees compliance with stakeholder reporting and associated obligations. The Group has a set of Workplace Health & Safety (WHS) manuals, which provide legislative and procedural guidance to ensure that the Group’s responsibilities continue to be met. There is a comprehensive, regular training programme, including first aid and WHS committee training. Group policies and procedures are reviewed in consultation with staff representatives. Directors are briefed on WHS policies and procedures and review the company WHS plan annually. Appropriate site visits are also made by the directors. Principle 7: Recognise and Manage Risk Quarterly updates of the Group’s risk register are undertaken by management and presented to the Finance, Audit and Risk Committee. Management undertakes annual workshops to identify further risks and develop a Risk Management Plan. The output of the workshops is reviewed by this Committee and the Board. Principle 8: Remunerate Fairly and Responsibly The Nomination and Remuneration Committee meets at least annually to review the Group’s remuneration strategies and policies. The Committee sets the parameters within which senior management negotiates musician and administration Staff Agreements. The Committee approves all senior management remuneration arrangements.

Signed on behalf of the Board of Directors

John Conde AO Chairman Sydney, dated 28th March 2013

Sydney Symphony Limited A.B.N. 50 121 561 528

Income Statement for the period ended 31 December 2012

Notes

Revenue Funding revenue Ticket sales Sponsorship and general donations Maestroâ&#x20AC;&#x2122;s Circle donations Instrument Reserve donations Other income

4 5 6 7

Total revenue Expenses Employee expenses Artist fees and expenses Marketing expenses Production expenses Depreciation and amortisation Other expenses

Total expenses Net profit/(loss) for the year Income tax expense

Profit/loss after income tax

2012 Consolidated $

2011 Consolidated $

13,538,957 16,452,892 4,015,763 230,000 63,905 3,002,045

13,259,864 16,507,920 3,738,258 256,000 500,000 3,537,520

37,303,562

37,799,562

20,964,146 5,420,872 3,093,005 4,638,541 378,639 2,382,746

20,125,282 4,771,272 3,509,400 5,184,916 338,010 2,348,286

36,877,949

36,277,166

425,613

1,522,396

425,613

1,522,396

The Income Statement should be read in conjunction with the notes to the financial statements.

Sydney Symphony Limited A.B.N. 50 121 561 528

Statement of Comprehensive Income for the period ended 31 December 2012

Notes

2012 Consolidated $

2011 Consolidated $

425,613

1,522,396

40,006

13,342

Profit/(loss) after income tax Other comprehensive income Cash flow hedges: Gain/(loss) taken to equity

Income tax on items of other comprehensive income

Total comprehensive income

465,619

1,535,738

The Statement of Comprehensive Income should be read in conjunction with the notes to the financial statements.

Sydney Symphony Limited A.B.N. 50 121 561 528

Balance Sheet as at 31 December 2012 Notes

Current Assets Cash and cash equivalents Term deposits Other financial assets Trade and other receivables Prepayments

2012 Consolidated $

2011 Consolidated $

3,962,217 8,170,865 81,145 1,376,880 434,675

4,051,660 9,608,627 93,190 1,562,426 153,209

14,025,782

15,469,112

2,591,170 267,723 494,857 8,250,000

2,108,358 57,669 361,415 7,585,000

Total Non-Current Assets

11,603,750

10,112,442

Total Assets

25,629,532

25,581,554

2,265,607 7,825,144 4,065,610 85,714 19,848

2,747,520 7,822,709 3,958,976 85,714 48,441

14,261,923

14,663,360

757,326 335,715 1,093,041

676,403 11,413 421,429 1,109,245

Total Liabilities

15,354,964

15,772,605

Net Assets

10,274,568

9,808,949

1,943,743 661,180 111,897 (19,848) 7,577,596

1,943,743 958,911 666,270 457,032 (59,854) 5,842,847

10,274,568

9,808,949

10 11

Total Current Assets Non-Current Assets Property, plant and equipment Intangible assets Other financial assets Term deposits

Current Liabilities Trade and other payables Prepaid revenue Provisions Deferred revenue Derivative financial Instruments

12 13 10

14 15 16 24

Total Current Liabilities Non-Current Liabilities Provisions Derivative financial instruments Deferred revenue Total Non-Current Liabilities

Equity Symphony Reserve International Touring Reserve Instrument Reserve Maestroâ&#x20AC;&#x2122;s Circle Reserve Cash Flow Hedge Reserve Retained Earnings

16 24

17 18 19 20 24

Total Equity

The Balance Sheet should be read in conjunction with the notes to the financial statements.

Sydney Symphony Limited A.B.N. 50 121 561 528

Statement of Changes in Equity as at 31 December 2012 Consolidated Notes

As at 1 January 2012 Net (loss)/profit for the year Other comprehensive income Transfer from/(to) Symphony Reserve Transfer from/(to) International Touring Reserve Transfer from/(to) Instrument Reserve Transfer from/(to) Instrument Reserve Transfer from/(to) Maestro's Circle Reserve

Retained Earnings $ 5,842,847 425,613

International Cash Flow Instrument Maestro's Circle Touring Reserve Hedge Reserve Reserve Reserve (Note 18) (Note 24) (Note 19) (Note 20) $ $ $ $

1,943,743

958,911

(59,854)

666,270

457,032

40,006 17 18 19 19 20

As at 31 December 2011

297,731 (95,940) 650,313 457,032 7,577,596

Consolidated Notes

As at 1 January 2011 Net (loss)/profit for the year Other comprehensive income Transfer from/(to) Symphony Reserve Transfer from/(to) International Touring Reserve Transfer from/(to) Instrument Reserve Transfer from/(to) Instrument Reserve Transfer from/(to) Maestro's Circle Reserve Transfer from/(to) Maestro's Circle Reserve As at 31 December 2011

Symphony Reserves (Note 17) $

Retained Earnings $

(297,731) 95,940 (650,313) (457,032) 1,943,743

Symphony Reserves (Note 17) $

661,180

(19,848)

111,897

International Cash Flow Instrument Maestro's Circle Touring Reserve Hedge Reserve Reserve Reserve (Note 18) (Note 24) (Note 19) (Note 20) $ $ $ $

4,970,933 1,522,396

1,892,042

(51,701) (62,253) (500,000) (34,984) (256,000) 254,456 5,842,847

51,701

896,658

(73,196)

131,286

455,488

13,342 17 18 19 19 20 20

62,253 500,000 34,984

1,943,743

958,911

(59,854)

666,270

The Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

256,000 (254,456) 457,032

Total Equity $ 9,808,949 425,613 40,006 10,274,568

Total Equity $ 8,273,211 1,522,396 13,342 9,808,949

Sydney Symphony Limited A.B.N. 50 121 561 528

Cash Flow Statement for the period ended 31 December 2012

Notes

2012 Consolidated $

2011 Consolidated $

Cash flows from operating activities Cash receipts from box office and sponsors Cash receipts from bequests Cash receipts general donations Cash payments to suppliers and employees Grants received from government funding bodies Interest received

20,928,611 1,672,743 (37,160,845) 13,538,957 1,351,232

Net cash provided by/(used in) operating activities

330,698

Cash flows from financing activities Employee instrument loans granted Proceeds from repayments on employee instrument loans

21,729,838 51,701 1,977,803 (34,606,040) 13,259,864 1,357,919

3,771,085

(217,550)

(45,491)

96,153

108,649

Net Cash flows used in financing activities

(121,397)

63,158

Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Redemption/Investment in Term deposits Net cash flows used in investing activities Net (decrease)/increase in cash held

(756,977) (314,529) 772,762 (298,744) (89,443)

(209,287) (4,850) (3,108,627) (3,322,764) 511,479

Cash and cash equivalents at beginning of financial year

4,051,660

3,540,181

Cash and cash equivalents at end of year

3,962,217

4,051,660

The Cash Flow Statement should be read in conjunction with the notes to the financial statements.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 1. CORPORATE INFORMATION The financial report of the Group for the year ended 31 December 2012 was authorised for issue in accordance with a resolution of the directors on 28th March 2013. Sydney Symphony Limited (the parent) is a public company limited by guarantee, incorporated and domiciled in Australia. The address of the registered office is 35 Harrington Street Sydney, NSW 2000. The nature of the operations and principal activities of the Group are described in the Directors’ Report. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation The consolidated financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards – Reduced Disclosure Requirements, and other authoritative pronouncements of the Australian Accounting Standards Board. The consolidated financial report has also been prepared on a historical cost basis except for derivative financial instruments which have been measured at fair value. The consolidated financial report is prepared in Australian dollars. At 31 December 2012, the Group was in a net current liability position of $236,141. This has arisen due to the classification of prepaid revenue of $7.8m as current liabilities, for which no cash outflow is required for settlement. Furthermore, the Group has sufficient non-current term deposits of $8.25 million at 31 December 2012 to finance its liabilities as and when they fall due. As a result, the financial report has been prepared on a going concern basis. Statement of compliance The Group is a not for profit private sector entity. Therefore, the Group has elected to present Tier 2 General Purpose Financial Statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (AASB-RDRs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB), and the Corporations Act 2001. Financial risk management objectives and policies The Group’s principal financial instruments consist of cash and term deposits, receivables and payables. The Group manages its exposure to key financial risks, including interest rate and currency risk, in accordance with the Group’s financial risk management policy. The disclosures are included under the relevant notes to the financial statements. The Group enters into derivative transactions, principally forward currency contracts, to manage the currency risk arising from the Group’s operations. The Board reviews and agrees policies for managing foreign currency risk which arises from transactional currency exposures due to sales or purchases by the controlled entity in currencies other than the functional currency. It is the Group’s policy not to enter into forward foreign currency contracts until a firm commitment is in place and to negotiate the terms of the hedge derivatives to exactly match the terms of the hedged item to maximise hedge effectiveness. The Group trades derivative products only with recognized credit worthy third parties with an equivalent S&P credit rating of AA or higher.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) a) Basis of consolidation The consolidated financial statements consist of the financial statements of Sydney Symphony Limited and its subsidiary as at 31 December 2012. The financial statements of its subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-Group transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. b) Going concern The ability of the Group to maintain its operations is dependent inter alia on the continuing support of various Governments by way of grants. The Tripartite Agreement was renewed for the period 2012 – 2014 with Australia Council for the Arts and Arts NSW. Funding for this three year period has been confirmed, subject to the company continuing to meet the requirements of the Tripartite Agreement. Therefore, the financial statements have been prepared under the going concern principle. c) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of goods and services tax (GST). Revenue is recognised for the major business activities as follows: i. Contribution income Contribution income represents the fair value of assets received in excess of the cost of the assets where there is a non-reciprocal transfer and is recognised as income once the asset is controlled by the Company. ii. Funding revenue Funding revenue is received from the Australia Council for the Arts (as represented by The Major Performing Arts Board) and Arts NSW. Funding is received based on payment schedules contained in a funding agreement between the funding bodies and the Group’s controlled entity and is recognised in the calendar year for which it is intended under the terms of the agreement due to the conditional nature of the funding. Any funding not spent on the planned activities agreed between the parties at the start of each calendar year is required to be repaid. iii. Ticket sales Revenue from ticket sales is recognised in the Income Statement at the time of concert performance. Revenue from ticket sales in respect of productions not yet performed is included in the Balance Sheet as prepaid ticket sales under the Current Liabilities heading “Prepaid revenue”. iv. Sponsorship and donations revenue Sponsorship – Sponsorship cash and in-kind commitments are brought to account as income in the year in which sponsorship benefits are bestowed. Donations – All donations are brought to account as received. v. Orchestral hire revenue Revenue from orchestral hire is recognised as these services are performed.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) vi. Interest income Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. d) Foreign currency translation Both the functional and presentation currencies of the Group are Australian dollars (A$). Transactions in foreign currencies are recorded initially in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. e) Income tax and other taxes Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current periodâ&#x20AC;&#x2122;s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. The Groupâ&#x20AC;&#x2122;s operating subsidiary Sydney Symphony Orchestra Holdings Pty Limited is exempt from income tax, by virtue of being a cultural organisation established for the encouragement of music and a charitable institution. Accordingly no income tax or deferred income tax is provided. Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included gross in the statement of cash flows. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. f) Acquisitions of assets Acquired assets are accounted for at cost. Cost is measured as the fair value of assets given or liabilities incurred or assumed at the date of exchange plus cost directly attributable to the acquisition. g) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) h) Trade and other receivables Trade receivables, which generally have 60 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectible amounts. Collectability of trade receivables is reviewed continually. Debts that are known to be uncollectible are written off when identified. An allowance for provision for impairment of trade receivables is used when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the impairment loss is recognised in the income statement within Other Expenses. i) Property, plant and equipment All items of property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the assetâ&#x20AC;&#x2122;s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Items of plant and equipment, leasehold improvements, computer equipment and musical instruments are depreciated using the straight-line method over their estimated useful lives. Where musical instruments are deemed to appreciate in value, no depreciation is applied. Each class of asset in the current period was depreciated over the following useful lives as set out in the following table: Asset class Computer equipment Furniture and fittings Plant and equipment Musical instruments

Useful Life 3 years Between 6 and 8 years 8 years Between 5 and 15 years

Derecognition and disposal An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Income Statement in the period the asset is derecognised. j) Intangible assets Software licences have a finite useful life and are carried at cost less accumulated amortisation and impairment losses. Licences are tested for impairment where an indicator of impairment exists. Amortisation is calculated using the straight line method to allocate the cost over the estimated useful life of 3 years. k) Impairment The carrying values of plant and equipment are reviewed for indicators of impairment at each reporting date, with a recoverable amount being estimated when events or changes in circumstances indicate the carrying value may not be recoverable. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. Impairment losses are recognised in the income statement.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) l) Leased plant and equipment Leases of plant and equipment are classified as operating leases as the lessors retain substantially all of the risks and benefits of ownership. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. m) Trade and other payables Trade payables and other payables are carried at amortised cost. Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the Group. Trade accounts payable are normally settled within 30 days. n) Provisions A provision is recognised when there is a legal, equitable or constructive obligation as a result of a past event and i t is pr obable t hat a f uture s acrifice o f ec onomic benef its w ill be r equired, t o s ettle t he obligation, the t iming or a mount o f w hich is unc ertain. P rovisions ar e det ermined by di scounting t he expected future cash flows required to settle the obligation at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Make good provision The Group provides for costs of restoration or removal in relation to fixed assets when there is legal or constructive obligation. These costs include obligations relating to the dismantling, removal, remediation, restoration and other expenditure associated with fixed assets or site fit-outs. o) Employee benefits Wages, salaries and annual leave Liabilities for employee benefits for wages, salaries and annual leave expected to be settled within 12 months of the reporting date represent present obligations resulting from employeesâ&#x20AC;&#x2122; services provided up to the reporting date. These are calculated at undiscounted amounts based on compensation rates that the consolidated entity expects to pay, including related on-costs. Long service benefits The provision for employee benefits for long service leave represents the present value of the estimated future cash outflows to be made, resulting from employeesâ&#x20AC;&#x2122; services provided up to the reporting date. The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to Commonwealth government bonds at balance date which most closely match the terms of maturity of the related liabilities. Superannuation The Group contributes to employeesâ&#x20AC;&#x2122; superannuation funds. Contributions are recognised as an expense a s they are m ade. The Group has n o ongoi ng l iability for superannuation benef its ul timately payable to employees.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Employee loans Some employees are lent monies which are used in turn to purchase musical instruments. These loans are secured by the instruments themselves and are interest bearing. Amounts outstanding are recouped over time through contributions withheld from musiciansâ&#x20AC;&#x2122; salaries. These are recorded within other financial assets. p) Changes in accounting policies All accounting policies have been applied on a consistent basis with those of the previous period. q) Derivative Financial Instruments and Hedging Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure to fluctuations in foreign currency rates on forecasted transactions. The effective portion of the gain or loss on the financial instrument is recognised directly in equity and transferred out of equity when the forecast transaction occurs. 3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the financial statements requires management to make judgements, estimates and assumptions t hat a ffect the r eported am ounts i n t he f inancial s tatements. Management c ontinually evaluates i ts judgements and es timates i n r elation t o assets, l iabilities, c ontingent liabilities, r evenue and ex penses. T he f ollowing c ritical ac counting pol icies hav e been i dentified for w hich s ignificant judgements, estimates and assumptions are made. Impairment of non-financial assets The G roup as sesses i mpairment o f its non -financial as sets at eac h r eporting dat e by e valuating conditions specific t o t he G roup and t o t he specific as set. I f an im pairment t rigger e xists, the recoverable a mount o f t he as set i s det ermined. M anagement do not c onsider t hat t he t riggers f or impairment existed in this financial period. Make good provision A pr ovision has been made for the pr esent value o f ant icipated c osts as sociated w ith t he future restoration o f the l eased office pr emises. T he es timate i s per iodically r eviewed and updat ed. T he related carrying amounts are disclosed in note 16. Estimate of useful lives The estimation of useful liv es of assets i s ba sed on h istorical experience. The c ondition of assets is assessed periodically and considered in relation to the remaining useful life of the asset. Adjustments are made to useful lives as appropriate.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 2012 Consolidated $

4. FUNDING REVENUE Australia Council for the Arts Annual Grant Arts NSW Base Funding Total funding revenue

2011 Consolidated $

10,326,304

10,101,230

3,212,653

3,158,634

13,538,957

13,259,864

A significant portion of the Groupâ&#x20AC;&#x2122;s annual revenue consists of funding from Federal and State governments, through the Australia Council for the Arts and Arts NSW. As a result, the Group has an economic dependency on these entities. The Funding Agreement with the Australia Council for the Arts and Arts NSW was renewed for the period 2012 to 2014 whereby amounts will be provided to Sydney Symphony Limited. As required, amounts received by the Group during the financial year were transferred to the subsidiary, Sydney Symphony Orchestra Holdings Pty Limited, to fund its operations and activities in accordance with the Funding Agreement with the Australia Council for the Arts and Arts NSW. 5. TICKET SALES

Subscriptions Single night Total ticket sales

2012

2011

Consolidated $

7,926,414 8,526,478

7,312,683 9,195,237

16,452,892

16,507,920

6. SPONSORSHIP AND GENERAL DONATIONS 2012 Consolidated $

2011 Consolidated $

Sponsorship General donations

2,636,925 1,378,838

2,464,754 1,273,504

Total sponsorship and general donations

4,015,763

3,738,258

2012 Consolidated $

2011 Consolidated $

7. OTHER INCOME

Orchestral hire income Interest Other income

1,066,720 1,351,232 584,093

1,656,869 1,357,919 522,732

Total other income

3,002,045

3,537,520

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 8. EXPENSES 2012 Consolidated $

2011 Consolidated $

Depreciation of fixed assets Amortisation of intangible assets

274,165 104,474

262,525 75,485

Total depreciation and amortisation

378,639

338,010

Operating lease rental expense

413,965

380,869

Employee expenses: Salaries and wages Superannuation Other employee expenses

16,691,372 2,354,845 1,917,929

15,820,016 2,391,761 1,913,505

Total employee expenses

20,964,146

20,125,282

9. INCOME TAX

Accounting profit (loss) At Groupâ&#x20AC;&#x2122;s statutory tax rate (30%) Less non taxable items Income tax expense

2012 Consolidated $

2011 Consolidated $

425,613

1,522,396

127,684 (127,684)

456,719 (456,719)

The companyâ&#x20AC;&#x2122;s subsidiary Sydney Symphony Orchestra Holdings Pty Limited, is exempt from income tax, capital gains tax and payroll t ax by virtue o f being a cultural organisation established f or t he encouragement of music and a charitable institution. 10. OTHER FINANCIAL ASSETS 2012 Consolidated $

2011 Consolidated $

Current asset Employee instrument loans Non-current asset Employee instrument loans

81,145

93,190

494,857

361,415

Total other financial assets

576,002

454,605

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 11. TRADE AND OTHER RECEIVABLES

Current Trade debtors Other receivables Accrued income Total trade and other receivables

2012 Consolidated $

2011 Consolidated $

729,502 114,714 532,664

904,325 106,100 552,001

1,376,880

1,562,426

12. PROPERTY, PLANT AND EQUIPMENT â&#x20AC;&#x201C; Consolidated Plant and equipment

Fixtures and fittings

Musical instruments acquired through the Instrument Reserve $

Musical instruments acquired

Computer equipment

182,351

709,493

787,774

267,756

160,984

2,108,358

4,214 (26,319)

15,701 (126,792)

650,313 -

23,991 (41,915)

62,758 (79,139)

756,977 (274,165)

160,246

598,402

1,438,087

249,832

144,603

2,591,170

400,999 (240,753)

851,233 (252,831)

1,438,087 -

971,900 (722,068)

1,049,918 (905,315)

4,712,137 (2,120,967)

160,246

598,402

1,438,087

249,832

144,603

2,591,170

Total

Year ended 31 December 2012 At 1 January 2012, net of accumulated depreciation and impairment Additions Depreciation charge for the year As at 31 December 2012, net of accumulated depreciation and impairment At 31 December 2012 Cost or fair value Accumulated depreciation Net carrying amount

$ At 31 December 2011 Cost or fair value Accumulated depreciation Net carrying amount

396,785 (214,434)

835,532 (126,039)

787,774 -

947,909 (680,153)

987,160 (826,176)

3,955,160 (1,846,802)

182,351

709,493

787,774

267,756

160,984

2,108,358

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 13. INTANGIBLE ASSETS - Consolidated Consolidated 2012 $ At 1 January, net of accumulated amortisation and impairment Additions Amortisation charge for the year As at 31 December, net of accumulated amortisation and impairment

Consolidated 2011 $

57,669

128,304

314,529 (104,475)

4,850 (75,485)

267,723

57,669

At 31 December Cost or fair value Less written-off as fully depreciated Cost or fair value carried forward

702,364 (387,835) 314,529

387,835 387,385

Accumulated amortisation Less written-off as fully depreciated Accumulated amortisation carried forward

(434,641) 387,835 (46,806)

(330,166) (330,166)

267,723

57,669

Net carrying amount 14. TRADE AND OTHER PAYABLES

2012

2011

Consolidated

Accruals Trade creditors Other payables

1,265,331 958,266 42,010

1,765,070 937,098 45,352

Total trade and other payables

2,265,607

2,747,520

The fair value of financial liabilities is equivalent to the carrying amount at balance date as disclosed in the balance sheet and related notes. This is because either the carrying amounts approximate to their fair value or because of their short term to maturity.

15. PREPAID REVENUE 2012

2011

Consolidated

Prepaid ticket sales Prepaid other

7,809,412 15,732

7,689,853 132,856

Total prepaid revenue

7,825,144

7,822,709

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 16. PROVISIONS 2012 Consolidated

Current provision for employee benefits Non-current provision for employee benefits Make good provision Total Non-current provisions Total provisions

2011 Consolidated

4,065,610

3,958,976

607,326 150,000 757,326

527,535 148,868 676,403

4,822,936

4,635,379

17. SYMPHONY RESERVE

Accumulated funds at 1 January Transfer from retained earnings in relation to: Current year bequests Accumulated funds at 31 December

2012 $

2011 $

1,943,743

1,892,042

51,701

1,943,743

The Symphony Reserve was established under protocols agreed by the Board to raise and accumulate capital to support the aims of the company and its long-term financial security. 18. INTERNATIONAL TOURING RESERVE

Accumulated funds at 1 January Transfer (to)/from retained earnings in relation to: Net surplus/(deficit) from touring Accumulated funds at 31 December

2012 $

2011 $

958,911

896,658

(297,731)

62,253

661,180

958,911

2012 $ 666,270

2011 $ 131,286

32,035

34,984

63,905 (650,313)

500,000 -

111,897

666,270

19. INSTRUMENT RESERVE Accumulated funds at 1 January Transfer from retained earnings for interest earned Transfer from retained earnings in relation to: Instrument Reserve donation Transfer to retained earnings for instruments acquired Accumulated funds at 31 December

The assets purchased using the Instrument Reserve are included in the Property Plant and Equipment - Musical Instruments. There were no purchases in 2011.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 20. MAESTRO’S CIRCLE RESERVE

Accumulated funds at 1 January Transfer from retained earnings in relation to: Maestro’s Circle donations Transfer to retained earnings in relation to: Maestro’s Circle expenses

2012 $

2011 $

457,032

455,488

256,000

(457,032)

Accumulated funds at 31 December

(254,456) 457,032

The Maestro’s Circle Reserve was created in 2009 to assist with the costs associated with special activities planned by the incoming Principal Conductor and Artistic Advisor, Mr Vladimir Ashkenazy. The Maestro’s Circle expenses reflect the net expenditure associated with gala concert activities, other recordings and new music compositions during the course of Mr Ashkenazy’s tenure with the orchestra in the period 2009 to 2012. 21. DIRECTORS AND EXECUTIVE DISCLOSURES a) Details of key management personnel The names of each person holding the position of Director or Executive Director of the Company during the financial period are listed on page 2 in the Directors’ Report. Unless otherwise stated in the Directors’ Report, the Directors have been in office for the financial period. b) Compensation of key management personnel

Total Compensation

2012 Consolidated $

2011 Consolidated $

596,016

447,492

Payments were made to directors for their services as employees of the company and not for their services as Directors of the Group for which no fee is paid. Non-executive Directors are not paid any fees for their services as Directors of the Group. 22. RELATED PARTIES a) Directors Transactions with Directors Mr. Ewen Crouch AM, a director of the Group, was a partner with Allens during the year. During the year, this firm provided pro-bono professional services to the Group. Transactions between the Group and entities in which Directors have declared an interest, are transacted under normal terms and conditions. There were no contracts involving Directors' interests subsisting at period end excepting sponsorship agreements under normal terms and conditions of business. Sponsorship from director-related entities is on terms and conditions no more favourable than those offered to other sponsors.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 23. COMMITMENTS AND CONTINGENCIES a) Operating lease (non cancellable) 2012 Consolidated $

2011 Consolidated $

439,039 1,721,273 -

440,242 1,757,358 402,953

2,160,312

2,600,553

Not later than one year Later than one year and not later than five years Later than five years

The Group has operating leases for office accommodation. b) Artist fees contracted for but not provided for and not payable

Not later than one year Later than one year and not later than five years

2012 Consolidated

2011 Consolidated

1,077,758 -

1,011,258 242,032

1,077,758

1,253,290

The Group has entered into contracts for performances scheduled to take place during 2013. These amounts include the expenditure required to satisfy the contracts with the artists. c) Guarantees The Group has issued bank guarantees in support of; i. ii.

the operating lease over premises at 35 Harrington Street, The Rocks, NSW for the amount of $225,000 expiring on 31 December 2017 (2011: $225,000). credit collateral on advertising contracts for $200,000, (2011: $200,000).

No liability is expected to arise from these guarantees. 24. FINANCIAL INSTRUMENTS a) Fair value The Group has used the Level 2 method in estimating the fair value of its financial instruments. The fair value of financial instruments is derived using valuation techniques with only observable market inputs or unobservable inputs that are not significant to the overall valuation. The fair value of financial instruments and the methods used to estimate the fair value are summarised in point (e) below.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 24. FINANCIAL INSTRUMENTS (continued) b) Credit risk exposure The Group’s maximum exposure to credit risk at the balance sheet date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the balance sheet and related notes. c) Liquidity statement Short term deposits consist of a number of term deposits held with different maturity dates less than one year. These funds are available at call should they be required, subject to minor early withdrawal penalties. d) Sensitivity analysis A Sensitivity Analysis of the effect of interest rate and foreign currency movements on assets and liabilities was not undertaken as the prospective impacts were not considered material at balance date. e) Derivative financial instruments Valuation Technique Market Observable Inputs (Level 2)

2012 Consolidated

2011 Consolidated

Current Liabilities Forward currency contracts –cash flow hedges

(19,848)

(48,441)

Non-current liabilities Forward currency contracts –cash flow hedges

(11,413)

(19,848)

(59,854)

Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure to fluctuations in foreign currency rates. (i) Forward currency contracts – cash flow hedges The Group purchases the services of artists under contracts denominated in foreign currencies. In order to protect against exchange rate movements and to provide certainty against future cash flows, the Group has entered into forward currency contracts to purchase Swiss francs. The cash flows are expected to occur between one and twelve months from 1 January 2013 and total A$19,848, (2011 A$59,854) with average exchange rates of CHF 0.9051, (2011 CHF 0.8590). The forward currency contracts are considered to be highly effective hedges as they are matched against forecast purchases and any gain or loss on the contracts attributable to the hedged risk is taken directly to equity. When the service is delivered, the amount recognised in equity is adjusted to artist’s fees and expenses in the Income Statement. (ii) Movement in forward currency contract cash flow hedge reserve 2012 Consolidated

2011 Consolidated

Opening balance Taken to other comprehensive income

(59,854) 40,006

(73,196) 13,342

Closing balance

(19,848)

(59,854)

The fair value of the derivative financial instruments is calculated using quoted prices in active markets.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements 25. INDEMNIFICATION AND INSURANCE OF OFFICERS Insurance and indemnity arrangements established in previous years concerning officers of the Group were renewed and continued during 2012. Sydney Symphony Orchestra Holdings Pty Limited paid the premium on a contract insuring each of the Directors of the Group, named earlier in this report, and each of the full-time executive officers of the consolidated entity, against all liabilities and expenses arising as a result of work performed in their respective capacities, to the extent permitted by law. 26. INFORMATION RELATING TO SYDNEY SYMPHONY LIMITED (â&#x20AC;&#x153;the Parent Entityâ&#x20AC;?) 2012

2011 $

Current assets Non-current assets Total assets Current liabilities Total liabilities

8,578,559 8,578,559

$ 8,578,559 8,578,559

330

Net assets Equity Retained earnings

8,578,229

Total equity Profit or loss of Parent Entity Total comprehensive income of parent company

8,578,229 -