WASO 2009 Annual Report by Ian Wheaton

2009 ANNUAL REPORT

CONTENTS Chairman’s Report

Chief Executive’s Report

Key performance indicators

the Year in Brief

The Company

Artistic Report

Private Giving

Corporate Development

Corporate Governance

Financials Directors’ Report

Financial Statements

Notes to the Financial Statements

Directors’ Declaration

Auditor’s Report

Left ~ The West Australian Symphony Orchestra. Cover ~ Malcolm Stewart, French Horn. 3

Chairman’s Report

Directed by acclaimed Australian director, Patrick Nolan, this Australian premiere featured conductor Stefan Asbury and a wonderful cast of international soloists, including Rachelle Durkin who gave an outstanding performance. A Flowering Tree received rave reviews and won a prestigious Helpmann Award for Best Symphony Orchestra Concert.

In 2009 the West Australian Symphony Orchestra welcomed Principal Conductor Paul Daniel for the start of his three year tenure. During his first year with WASO, Paul guided the Orchestra through a fantastic program of orchestral works, demonstrating his clear commitment to the continuing success of WASO. The Orchestra excelled under his direction and leadership, and we look forward to continuing this productive partnership in 2010. WASO provided audiences with another year of outstanding performances presented with an excellent line up of internationally recognised guest conductors and soloists. During 2009, the Orchestra performed under several guest conductors including Simone Young, Nicholas Kraemer, Asher Fisch and Conductor Laureate, Vladimir Verbitsky. Guest soloists from Australia and around the world included Kari Kriikku, Kyoko Takezawa, Marc-Andre Hamelin, Piers Lane, Stephen Bennett, Adam Lopez and Aivale Cole. A highlight of 2009 was a new semi-staged production of John Adams’ A Flowering Tree, a collaboration between WASO, the West Australian Opera and the Perth International Arts Festival.

In keeping with our commitment to reach new audiences, Grammy Award winning soul diva Roberta Flack led the Contempo Series, which also featured Australian rock band Air Supply and trumpet legend James Morrison. During WASO’s Summer Symphony Series in Kings Park the Orchestra teamed up with pop favourites Human Nature. Melvin Tix presented the Family concert. The 2009 Symphony Under the Stars featured a collaboration with the Western Australian Youth Orchestra, and ARIA award winning singer Ben Lee also made a welcome return to WASO during the year.

On behalf of the Board I would like to acknowledge the professionalism and dedication of Chief Executive Craig Whitehead and his executive team, who have successfully guided the organisation through a very challenging year. I commend the musicians of WASO for their superb performances and their commitment to bringing music of the highest standard to the people of Western Australia. I would also like to extend my sincere thanks to the Board of Directors for its contribution in 2009. I appreciate the directors’ dedication and individual contributions, and look forward to working with them in 2010.

Janet Holmes à Court AC Chairman

The year finished on a high note with the City of Perth’s Symphony in the City. 2009 was the third year of this wonderful free community concert, and the event continues to grow in popularity. This concert provides an important opportunity to ensure that thousands of West Australian residents have the opportunity to experience the music of their symphony orchestra at no cost. 2009 was a year of worldwide economic uncertainty. However, WASO recorded strong financial results with a $313,076 profit. The Orchestra performed to more than 200,000 West Australians and continued to reach new and diverse audiences through initiatives such as webcasting, which enabled 3 performances to be streamed live on the internet.

Our Purpose

To touch souls & enrich lives through music Left ~Leanne Glover, Associate Principal Oboe 5

Chief Executive’s Report

WASO presented education concerts in 2009 to over 12,000 students in both metropolitan and regional areas. WASO’s Education Chamber Orchestra (EChO) toured to Esperance and Ravensthorpe performing for primary and secondary school children in surrounding areas. The WASO on the Road team travelled to Carnarvon, Exmouth, Mt Magnet, Meekatharra, Broome, Derby, Port Hedland and Karratha for education workshops and delivered presentations on School of the Air networks for children in remote areas. 2009 was a challenging but ultimately rewarding year for the West Australian Symphony Orchestra and the WASO Chorus, highlighted by the start of Paul Daniel’s tenure as Principal Conductor. WASO gave 177 performances and 37 workshops in 2009, reaching an audience of over 200,000. Our Education and Outreach program continued to grow and find innovative ways to connect children with classical music. In 2009 we introduced a series of performances at Princess Margaret Hospital for Children called Music for Health. I am very proud of this new initiative and of the way our musicians have embraced this opportunity and worked with the children to make this program such a success. I wish to acknowledge John Holland for supporting this initiative.

In 2009 WASO, in partnership with iiNet, streamed three of Paul Daniel’s concerts and people from around the world took the opportunity to watch these concerts live or on demand after the concert. This is an important new initiative and three more concerts will be streamed in 2010. At a time when the world was suffering from the worst economic conditions since the Great Depression, I am delighted to say that our audience, sponsors and donors continued their extraordinary support of WASO. I wish to thank each and every member of our community of supporters and to assure them that we do not take this support lightly or for granted. In particular I would like to acknowledge our Principal Partner, Emirates, who have supported us now for seven years, Platinum Partners Ernst & Young and Wesfarmers Arts, and all the generous individuals who make up our Patrons Program.

I would also like to thank the Western Australian Government and the Federal Government for their ongoing support of WASO. Without the support of the Western Australian community we would not be able to continue to bring artists of the highest calibre to Perth or engage in our important education and outreach programs. Each year we also benefit from the invaluable support of our team of hardworking volunteers and the Patrons and Friends committee. Our performances would not be possible without the collective and impressive talent and creative endeavor of all our people – our musicians, chorus and administrative team alike. I thank them all for their outstanding contribution and for their dedication to the ongoing success of the West Australian Symphony Orchestra. On behalf of all members of the Company, I would also like to pay tribute to our Chairman, Janet Holmes à Court, and our Board of Directors for their tireless support and wise counsel.

Craig Whitehead Chief Executive

2009

Key Performance Indicators Goal

WASO will become a leading orchestra in the region by 2012.

Ensure the sustained financial viability of the West Australian Symphony Orchestra.

Secure a home for the West Australian Symphony Orchestra.

2009 KPI’s •

Process for assessment of artistic vibrancy implemented.

•

2 new commissions.

•

Young artist program developed.

•

Achievement

•

This remains a work in progress.

•

3 commissions were undertaken in 2009 and will appear in the 2010 season.

•

In 2009, a young and emerging artist program was developed. This program provides young musicians access to workshops, tutorials, mentorships and masterclasses.

Increase % of sales to capacity across each program by 2%.

•

Sales to capacity increased by an average of 3.6% across all programs with only the Family series not achieving the 2% increase.

•

Donation income increased by 5%.

•

Donation income increased by 4.7% in 2009.

•

Major gift program established.

•

Major gift program was established along with a commissioning fund.

•

Breakeven or better result achieved.

•

A surplus of $313,076 was achieved in 2009.

•

Site of new home identified.

•

WASO identified the Perth Concert Hall as the preferred location for its new home.

The year in brief Sales Audience Type

2009 Sales

Subscription Sales

26,492

Single Night Sales

48,591

Summer Sales

19,247

Education Sales

8,025

Audience Numbers WASO performances were attended by 201,031 people during 2009 which represents an increase of 13.5% over the previous year. The main stage classical performances attracted a similar audience number to 2008 despite the Global Financial Crisis. No. Performances

2009 Attendances

Masters

22,670

Classics

21,257

Morning Symphony

7,856

Contempo

10,941

Family

11,305

Special events

21,309

Hire Concerts

500

(Workshops) 37

2,663

Education & Outreach

8,937

Opera

32,805

Ballet

40,788

20,000

Audience Numbers 2009 Subscription Series

Other Events

Touring

Free and other

Profitability As shown in the attached financial reports, WASO achieved a profit in 2009 of $313,076.

Right ~ Peter Miller, Principal Trumpet 8

The Company Orchestra Principal Conductor & Artistic Adviser

Paul Daniel

Viola

Bass Clarinet

Berian Evans Associate Principal

Alexander Millier Principal

Kierstan Arkleysmith Nikola Babic

Conductor Laureate

Alex Brogan

Vladimir Verbitsky

Katherine Drake

Composer-in-Residence

James Ledger Chorus Director

Marilyn Phillips Concertmaster

John Harding

Jane Kircher Principal Contra Bassoon

Simone Walters Principal

Rachael Kirk

Horn

Allan McLean

David Evans Principal

Helen Tuckey

Malcolm Stewart Associate Principal

Cello

Rod McGrath Principal Oliver McAslan Associate Principal

Robert Gladstones Principal 3rd Jennifer McLeod-Sneyd Rachel Silver

Associate Concertmaster

Matthew Hoy

Trumpet

Margaret Blades

Shigeru Komatsu

David Elton Principal

Eve Silver

Evan Cromie Associate Principal

Fotis Skordas

Peter Miller

Violin

Semra Lee Assistant Concertmaster Graham Pyatt Acting Principal First Violin John Ford Principal 2nd Violin Fleur Challen Anna Chomicka-Gorecka Stephanie Dean Dorothy Ford Beth Hebert

Tim South Xiao Le Wu Nicholas Metcalfe Double Bass

Andrew Rootes Principal Joan Wright Associate Principal Christine Reitzenstein Louise Ross

Trombone

Joshua Davis Principal Bruce Thompson Bass Trombone

Philip Holdsworth Principal Tuba

Cameron Brook Principal

Andrew Tait

Timpani

Mark Tooby

Alex Timcke Principal

Shaun Lee-Chen

Flute

Percussion

Ken Peeler

Mary-Anne Blades Associate Principal

Tim White Principal

Piccolo

Troy Greatz Associate Principal Percussion/Timpani

Daniel Ispas Jane Johnston

Melanie Radke Zak Rowntree Brendon Richards Louise Sandercock Jolanta Schenk Ellie Shalley

Michael Waye Principal Oboe

Joel Marangella Principal Leanne Glover Associate Principal

Jane Serrangeli

Cor Anglais

Jacek Slawomirski

Jay Harrison Principal

Bao Di Tang Cerys Tooby Rebecca White David Yeh

Alison Hall

Bassoon

Clarinet

Allan Meyer Principal Lorna Cook

Harp

Sarah Bowman Principal

Administration EXECUTIVE OFFICE

Craig Whitehead

Corporate Development

Chief Executive

Michael Kar Human Resources Manager Jo Nevill Administration and Special Projects Officer (part time) Sarah Tompkin Executive Assistant (part time)

Phil Gallagher Executive Manager, Corporate Development Kate Hawkes Corporate Relations Manager Kathryn Clements Corporate Relations Executive Sarah John Corporate Functions Coordinator Private Giving

Artistic Planning

Marshall McGuire Executive Manager Artistic Planning Stephen McAllan Artist Liaison and Chorus Administrator Callum Moncrieff Programming Assistant Paula Phillips Artistic Program Manager Brendon Pearn

Education Coordinator

Orchestral Management

Gabrielle Waters Executive Manager, Orchestral Management Keith McGowan

Orchestra Manager

David Cotgreave

roduction and P Technical Manager

Basil Petsas

Operations Manager

Noel Rhind

Production Assistant

Allan Tyrrell

Librarian

Business Services

Peter Freemantle

xecutive Manager E Business Services

Clare Bannister Payroll Manager (part time) Liz Mather

Accountant

Diane Wilson

usiness Services B Assistant

Alecia Benzie

Sarah Tompkin

New West Australian Symphony Orchestra employees

John Chaplin Orchestral Operations Manager David Cotgreave Production and Technical Manager Alecia Benzie Executive Manager, Private Giving Phil Gallagher Executive Manager, Corporate Development Hilary McKenna

Marketing Coordinator

xecutive Manager, E Private Giving (part time)

Alex Morris

Orchestra Manager

Brendon Pearn

Education Coordinator

hilanthropy P Coordinator (part time)

Paula Schibeci Public Relations Manager

Sarah Gallinagh Donations & Bequests Coordinator (part time)

Sarah Tompkin Philanthropy Coordinator & Executive Assistant

Marketing

Marina Woodhouse Corporate Relations Executive

Kelli Carnachan Executive Manager, Marketing

Simone Walters

Contra Bassoon

Sarah Gallinagh Sales Coordinator (part time) Francine Tonkin

ublic Relations P Manager

And farewell to

Elsa Beilharz

Marketing Coordinator

Will Ainger

Graphic Designer

Kathryn Clements Corporate Relations Coordinator

Elsa Beilharz

Marketing Coordinator

Rebecca Willday Customer Service Manager

Basil Petsas

Josie Aitchison Customer Service Officer (part time)

Francine Tonkin Public Relations Manager

Margaret Daws Customer Service Officer (part time)

Gabrielle Waters Executive Manager, Orchestral Management

Vicki Prince Customer Service Officer (part time)

Daniel Ispas

Violin

Matthew Hoy

Cello

Beverley Trolio Customer Service Officer (part time) Robyn Westbrook Customer Service Officer (casual)

Operations Manager

Callum Moncrieff Programming Assistant

Anne Henderson Bassoon (Associate Principal) We thank them for their professional and personal contributions to the company.

Artistic REPORT 2009 Highlights In 2009 Paul Daniel took up the reins as Principal Conductor of WASO and conducted nine programs with us. Having announced his appointment in 2007, our Orchestra, audiences and other stakeholders were very pleased to welcome him for his first concerts with us in this new role in May 2009. Disappointingly, our May tour to Japan was cancelled due to the Global Financial Crisis. Welcome return guests to WASO included Oleg Caetani, Simone Young and Asher Fisch. Joining us for the first time were conductors Jakub Hrusa and Marko Letonja. WASO is committed to young Australian conducting talent and we welcomed Benjamin Northey on two occasions in 2009. Vladimir Verbitsky, our Conductor Laureate, received his Australian Citizenship on stage following performances with us in June. There were a number of outstanding performances from exceptional artists this year, including: Nicholas Kraemer conducting Messiah; Kyoko Takezawa playing Beethoven; Marc-Andre Hamelin playing Brahms; Kari Kriikku performing Lindberg’s Clarinet Concerto; and Asher Fisch conducting Strauss.

Australian Artists

Existing Australian works

Australian artists continue to make a valuable contribution to the ongoing success of WASO’s musical development. In 2009 we engaged the following performers:

Ross Edwards Maninyas Violin Concerto Richard Mills Passion According to St Mark

Conductors

Collaborations

Matthew Coorey; Benjamin Northey; Sean O’Boyle; Sarah-Grace Williams; Vladimir Verbitsky; Guy Noble; Warwick Potter; Richard Mills; Simone Young; Peter Moore. Guest Artists

Piers Lane; Margaret Blades; James Morrison; Adam Lopez; Sara Macliver; Sally-Anne Russell; Angus Wood; Stephen Bennett; Stuart Laing; Elizabeth Campbell; Rachelle Durkin; Shaun Lee-Chen; Penelope Mills; Fiona Campbell; James Egglestone; Paul Whelan; Katya Webb; Joel Marangella; Paul Wright; Rod McGrath; Anna Sleptsova; David Wickam.

New Australian Works World Premieres

James Ledger Arcs and Planes written as part of the ALNG Composer-in-Residence program James Ledger Chronicles written as part of the ALNG Composer-in-Residence program

Australian Premieres John Adams A Flowering Tree Julian Anderson Alleluia Elena Kats-Chernin Ornamental Air Magnus Lindberg Clarinet concerto

Our collaborations with West Australian Opera continue to go from strength to strength and in 2009 WASO joined them for performances of: Donizetti L’elisir d’amore conductor Simon Kenway Mozart The Marriage of Figaro conductor Mischa Santora Bizet The Pearl Fishers conductor Ollivier-Philippe Cuneo Puccini The Girl of the Golden West conductor Aldo Salvagno

For West Australian Ballet the repertoire for 2009 was: Giselle music by Adam conductor Myron Romanul Romeo and Juliet music by Prokofiev conductor Enrique Carréon-Robledo

WASO, WA Opera and Perth International Arts Festival presented a semi-staged production of John Adams’ A Flowering Tree, conducted by Stefan Asbury and directed by Patrick Nolan, with Rachelle Durkin, Sanford Sylvan, Russell Thomas and the WA Opera Chorus.

Paul Daniel ~ Principal Conductor & Artistic Adviser 13

ARTISTIC Report [cont]

Broadcasts

Composer-in-Residence

The ABC continues to provide wonderful support with regular broadcasts of WASO concerts throughout the year. A total of 30 broadcasts of WASO performances were heard on ABC Classic FM around Australia and the world. WASO webcast three of our performances live via iiNet, which are also available on demand.

2009 saw the end of a three-year residency by James Ledger, a period in which James composed the following works for WASO: The Madness and Death of King Ludwig [2008]; Bellweather [2008]; Arcs and Planes [2009]; Chronicles [2009]; Trumpet Concerto [2006]; 3 Schubert lieder [2007]. He also contributed to our education program and Composition Competition in 2009.

Broadcasts

WASO Chorus

Delayed broadcasts on ABC Classic FM

Live broadcasts on ABC Classic FM

Webcasts on iiNet

Total Broadcasts

Recordings WASO recorded Just Classics II: The Gold Collection, under the direction of Benjamin Northey in January 2009.

Under the musical direction of Marilyn Phillips, and following an outstanding season in 2008, the 2009 WASO Chorus continued to grow in size and strength. The WASO Chorus gave outstanding performances in our Masters and Classics series, featuring in Mozart Requiem; Handel’s Messiah; Richard Mills’ Passion According to St Mark and Julian Anderson’s Alleluia.

Hire Concerts WASO supported the Australian Singing Competition in the finals event presented at His Majesty’s Theatre on 2nd November 2009.

Awards WASO received the following awards in 2009: • Helpmann Award: Best Classical Concert [A Flowering Tree] • Classical Music Award [national]: Best Performance of an Australian work [Carl Vine Symphony No 7, conductor Arvo Volmer] • Classical Music Award [state]: Best Performance of an Australian work [James Ledger The Madness and Death of King Ludwig, conductor Asher Fisch]

Symphony in the City The year ended with an outstanding free performance by WASO at The Esplanade with conductor Guy Noble for an audience of approximately 20,000. Once again, WASO was joined by the Swan Bells and the artillery of the 7 Field Battery Australian Army for a rousing finale of Tchaikovsky’s 1812 Overture. Soprano Katya Webb sang a scene from Tchaikovsky’s Eugene Onegin in this Russian-inspired concert.

DISCOVER! Education & Outreach Program Music for young people continues to be a priority at WASO and in 2009 we welcomed nearly 13,000 young people at our Open Rehearsals, Fabulous Fridays, Morning Symphony concerts, WASO on the Road and Education Chamber Orchestra (EChO) performances. EChO toured to Esperance and Ravensthorpe, and WASO on the Road toured the Pilbara and Kimberley, the Gascoyne and the Midwest, taking music to schools and to students who may never have the opportunity to experience live classical music. WASO’s Cushion Concerts continue to grow in popularity and our mainstage education concerts continue to offer programs for primary, secondary and tertiary students. 2009 also saw new initiatives such as the Music and Health series at Princess Margaret Hospital and the Composition Competition established as part of the Education and Outreach Program.

Young & Emerging Artists A new initiative in 2009, the Young and Emerging Artists program, saw WASO bring together a number of development programs for young artists under one banner. A group of 18 brass and string players were involved in the Orchestral Training Program and were mentored by WASO musicians. We hosted the ABC Symphony Australia Young Performer Awards Stage III final, and trialed a series of conductor masterclass sessions with three talented young conductors, under the guidance of Principal Conductor Paul Daniel. We also visited AbMusic in the first of several proposed sessions to engage indigenous musicians who are training for careers in the music industry.

Right ~ Stephanie Dean, Tutti Violin 14

Private Giving It is often during the more difficult and troublesome moments in our lives that we turn to the power of music to make sense of our lives and to provide both relief and reflection. Despite the economic uncertainties that prevailed throughout 2009, our community of loyal Patrons remain committed to the Orchestra’s vision to touch souls and enrich lives through music. We also welcomed new Patrons. Our heartfelt thanks to all our Patrons for their support. Patrons are critical to the future of WASO. With a high fixed cost base of over 80 full-time musicians and a busy schedule of concerts and events that reach hundreds of thousands of Western Australians annually, WASO relies not only on box office but on significant levels of government funding and corporate support. We are very grateful for this support; however, it is not enough. Increasingly, it is the ongoing and growing support of our community of donors that strengthens our ability to:

• achieve artistic excellence; • secure the finest guest conductors and soloists; • grow our education and outreach programs that reach children from all across Western Australia; • present an annual series of special events, including family events, which form the heart of our commitment to touch as many West Australians as possible. Support through our Private Giving Program is absolutely vital. Our link to our Patrons is very important to us and we are committed to strengthening our connection to the special individuals who support WASO’s vision through their gift.

WASO PATRONS 2009

VIRTUOSO PATRON

THANK YOU TO OUR PATRONS:

$2500-$4999

STRADIVARI CIRCLE

Mrs Margaret Affleck Mrs Sally Burton Ms Monika Dunnet Mrs Bridget Faye Michael Harding Dr Bryant Macfie Mrs Morrell Dr WB Muston Mr John Phillips Margaret & Roger Seares Ms Ros Thomson Jan & Ken Williams Anonymous (2)

Recognises patrons who have made a special contribution or donates substantial amounts over a number of years to the Orchestra. Dr Peter R Dawson The Taylor Family

SYMPHONY CIRCLE Recognises Patrons who have made a provision in their Will to the Orchestra. Tosi Nottage (In memory Edgar Nottage) Anonymous (9)

CORPORATE SUPPORTERS WASO acknowledges the support of its corporate partners who have assisted with the Private Giving Program. We are grateful to the Perth Mint and Plan B Wealth Management for their support.

MAESTRO PATRON $5000 and above

Dr & Mrs T & J Arkley Siobhan & Jonathan Beilin Prof Norman Etherington Mrs Janet Holmes a Court AC Dr Patricia Kailis Susan & Michael Kiernan Gwenyth & Tony Lennon Jude & Barrie Lepley McCusker Charitable Foundation Jill Mulheron Frank & Doris Roda (Loving memory of Johann Gustav Hamann) Catriona Woodall Andrew & Marie Yuncken Anonymous (7)

PRINCIPAL PATRON $1000-$2499 Neil Archibald & Alan Dodge Suzanne & David Biddles Mr John Bonny Mrs Debbie Borshoff Dr G H Campbell-Evans Arthur & Nerina Coopes Dr Stephen Davis Gilbert George James & Elizabeth Glass Miss Robyn Glindemann Graham & Barbara Goulden Mrs Jannette Gray Mr Joe & Deidre Greenfeld Ms Jacqueline Grove David & Valerie Gulland Michael & Liz Hollingdale Lilian & Roger Jennings Dr Rob Kirk Gloria & Ulrich Kunzmann Jane & Jock Morrison Simon Moncrieff SC Betty & Con Michael AO Gregg & Sue Marshman Stella Monger-Hay Val & Barry Neubecker John Overton Pamela Platt John & Alison Rigg Mr Chester Reeve Judy Sienkiewicz Anne & Frank Sibbel Dr R & J Schwenger Dr Robert Turnbull

John & Mary Townsend M & H Tuite Dr & Mrs John Venerys Stan & Valerie Vicich Watering C oncepts Dr Heather Whiting & Richard Hatch Ian & Jean Williams Anonymous (4)

TUTTI PATRON $500-$999 Peggy Blain Mr & Mrs Beckett Robert & Judith Bower Emeritus Professor Cora Baldock Merle Bardwell Winfred Bissett Shirley Barraclough S & L Bourguignon Dr Andrew Black Dr Vin & Diane Brennan Kay Brice Gavin Bunning Mrs Betty Barker Ann Butcher & Dean Kubank Catherine Bagster Matthew JC Blampey BJ & JM Barnwell Max Collins Hon June Craig AM Brian Cresswell Lyn & Harvey Coates AO Dr & Mrs Neil Cumpston Mr Ron Dyer (in memory of Ivy Dyer) Hon Ron Davies Jop & Hanneke Delfos Vera Djulbic Mr & Mrs Dolinschek Mrs G Ewan Annette Finn Don & Marie Forrest Mrs Isobel Glencross Geoffrey & Patricia Gates

Prof Alan Harvey & Dr Paulien de Boer Dr Penny Herbert (in memory of Dunstan Herbert) Richard B Hammond Dr David & Annie Haultain IT Vision Australian Pty Ltd John & Jill Isherwood Catherine & Bernth Johansson John Kobelke Anthea Kingsley B M Kent Dr Paul Lee Dr Mary Ellen MacDonald & Michael Pauly Clare & Philip Moore Marshall McGuire John McKay & Claire Brittain Dr Peter Moss Tosi Nottage Dr Peter & Dr Margaret Petros Alpha & Richard Pilpel OAM Sheila Pinch Fay & Trevor Pitcher Thomas Potter Clarissa Repton James & Nicola Ridsdill-Smith Audrey Rogers Judith E Shaw Tony & Gail Sutherland Grant Sutherland & Robert Hinkelman Garnett Skuthorp Ross Smith Mrs Joan Tonkin MBE JP Judith Wilton & David Turner SR Vogt Wouterus Van Oyen Dr Agatha Van der Schaaf Bob & Lisa Von Felton Max & Adrienne Walters Diana Warnock Dr & Mrs Chris Whitaker Ann Whyntie Violette M William Janet & David Williams Roma Wilson Dr Peter Winterton Anonymous (6)

FRIENDS OF WASO The Friends of WASO is a membership program with over 450 members. In 2009 the Patrons & Friends Committee organised a number of musical events, including the popular Tea & Symphony mornings, for the Patrons and Friends of WASO. These events provide valuable opportunities for music lovers to mingle with like-minded friends, to meet Orchestra members and to increase their musical knowledge and appreciation. Our thanks to all Committee members for their hard work and support, including President Fred Affleck, and our thanks and best wishes to members who left the Committee in 2009, including founding President Norman Etherington, Vice President Michael Harding and Secretary Margaret Lalchere.

VOLUNTEERS, CORPORATE SUPPORTERS Thank you also to our invaluable group of volunteers who contribute their time in the office and at the Perth Concert Hall. Your support of WASO is greatly appreciated.

<$500 296 individuals made donations under $500

Corporate Development The contribution and support of corporate and government sponsors remain critical to the success and financial viability of the West Australian Symphony Orchestra. It is through their support that we are able to continue to bring classical music to the people of Western Australia. 2009 was a difficult year for Corporate Development due to the prevailing economic conditions. Corporate sponsorship went through a difficult period in all areas and WASO was not immune to the effects of the Global Financial Crisis. Thankfully, nearly all of WASO’s Corporate Partners were able to honour their existing partnership agreements and WASO had a successful year with its Corporate Partnerships. The cancellation of the WASO 2009 Tour to Japan was an unfortunate casualty of the economic conditions at the time, and WASO thanks Australia LNG for its continued support. We look forward to rescheduling the tour at an appropriate time in the future. Emirates Airline completed its seventh year as WASO’s Principal Partner. The partnership continues to provide valuable mutual benefits, and remains one of the State’s most prestigious sponsorships. WASO thanks Emirates for their continued support throughout 2009. Other major corporate partners during 2009 were Ernst & Young (Platinum Partner), Wesfarmers Arts (Platinum Partner), Synergy (Summer Series Partner), Plan B Wealth Management (Classics Series Partner), City of Perth (Civic Partner), Blake Dawson (WASO Chamber Players Series Partner), Lotterywest, University of Western Australia (Concertmaster Partner), John Holland (Music and Health Partner), CBH Group (EChO Ensemble & Wheatbelt Project Partner), BP Australia (North West Touring Partner), Chevron Australia (CoMasters Series Partner), Alcoa Foundation (WASO Chorus Partner), ConocoPhillips

(Mentoring Program Partner) and World Artist Partners Ardross Group of Companies, Broad Construction, Lepley Properties, Japan Australia LNG (MIMI) Pty Ltd, Mitsui & Co (Australia) Ltd and Mitsui E&P Australia Pty Ltd, and Vasse Felix. WASO works with its Corporate Partners to create community programs and events that bring the Orchestra to remote and disadvantaged communities throughout Western Australia. Highlights from the community programs in 2009 included the John Holland Music and Health Program at Princess Margaret Hospital. An ensemble of WASO musicians and Principal Conductor Paul Daniel visited Princess Margaret Hospital and played for patients in the Starlight Theatre. It was quite moving as children in the hospital watched the performance live or through the inhouse closed circuit television system and were able to phone questions directly to Paul Daniel and Captain Starlight. The WASO on the Road tour to the Mid West region visited the Yulga Jinna remote indigenous school north west of Meekatharra. The children at this school had never experienced anything like it and the WASO musicians were very warmly welcomed by the school. These programs highlighted the broad role that WASO plays in the community and our ability to bring joy to different people in society; they would not be able to happen without the continued support of WASO’s Corporate Partners. In 2009 WASO expanded our program of streamed concerts live over the internet, thanks to a partnership with Internet Service Provider iiNet. This has proven to be a popular and successful innovation with over 10,800 people logging on and watching WASO performances either live or later on demand.

WASO’s success in corporate development can be attributed to its positioning in the corporate sponsorship segment in Western Australia. A partnership with the Orchestra continues to offer unique market positioning and networking opportunities, brand profiling and superior corporate hospitality. In addition, WASO always seeks to deliver valuable benefits beyond its contractual obligations, and continues to pride itself on its ability to meet and exceed the needs and expectations of its Corporate Partners. West Australian Symphony Orchestra thanks all our Corporate Partners in 2009 and applauds their commitment to excellence, innovation and creativity.

Australian Broadcasting Corporation

Japan Australia LNG (MIMI)

The Globe

Adshel

John Holland Group

The West Australian

ALCOA Foundation

Juniper Estate

UMAMU Estate

Aquinas College

Kailis

University of Western Australia

Ardross Group of Companies

L7 Solutions

Vasse Felix

Australia LNG

Leeuwin Estate

Veget채l Fresh Flowers

Australia Post

Leighton Contractors

Vivid Group

Barrington Consulting Group

Lenton Brae Wines

Voyager Estate

Blake Dawson

Lepley Properties

Water Corporation

BP Australia

Lexus of Perth

Wesfarmers Arts

Broad Construction

Liz Davenport

Wise Wines

Cape Mentelle

Lotterywest

Woodside Valley Estate

CBH Group

M2 Technology

Yacht Grot

Channel Nine

Marketforce

Yamaha Music Australia

Chevron Australia

Marsh Pty Ltd

City of Perth

Matilda Bay Brewery

CITIC Pacific Mining

Midwest Corporation Ltd

Clairault Wines

Mitsubishi Corporation

Clough

Mitsui & Co

Commonwealth Bank

Mitsui E & P

Computershare

Mondoluce

ConocoPhillips

Moss Wood

Corrs Chambers Wesgarth

OMV Australia

Cullen Wines

Penrhos College

David Langdon Australia

Perron Group

Elmstock Tea

Perth Convention Exhibition Centre

Emirates

Perth Mint

Ernst & Young

Pianohaass

Fraser Gallop Estate

Pierro Margaret River Vineyards

Grace Removals Group

Placer Management Group

GHD Pty Ltd

Plan B Wealth Management

Hamelin Bay

Royal Automotive Club (RAC)

Happs

RICOH Australia

Healthway

Shell Development (Australia)

Howard Park Wines

Simon Lee Foundation

Hyatt Regency Perth

Skywest

iiNet

Synergy

Corporate partners 19

Corporate Governance General

Board Sub-Committees

As the largest performing arts company in Western Australia, WASO is committed to high standards of corporate governance.

In order to deal with the many issues that confront the Orchestra and to assist the Board in the discharge of its responsibilities, a number of Board sub-committees have been formed. These comprise the following:

WASO is a wholly owned subsidiary of WASO Holdings Limited. The Board consists of a maximum of 10 directors. The Company’s Board is currently made up of 8 highly qualified individuals with credentials across a wide spectrum including backgrounds in business, music, law, accounting, audit, marketing, investment and banking.

Artistic

The Board is responsible for providing strategic guidance to the Company, and for the effective oversight of management. As such the Board is accountable for the West Australian Symphony Orchestra’s overall performance and for ensuring the Company performs its functions in a manner consistent with sound commercial practice. The Board has adopted a formal charter which defines the roles and responsibilities of the board and management. A separate board policy (BS-004 “Authority Limits”) ensures an appropriate delegation of authority to management. The Board sets the Company’s key objectives and strategies through a rolling three year strategic plan which is revised annually. It also approves the artistic program and budget on an annual basis, and monitors the major risks facing the organisation. New Board members are provided with appropriate information to ensure that they understand their roles and responsibilities, including the Board Charter, Constitution and other relevant information.

The Board is comprised of an appropriate number of well qualified individuals who have a proper understanding of the current and future issues facing the organisation. All Board members are non-executive.

Prof. Margaret Seares, AO Mark Coughlan Keith Kessell

The composition of the Board is regularly reviewed to ensure that it meets the current and future needs of the Company.

Development

Directors are appointed for specific terms and re-appointment is not automatic. The Board does not believe that a maximum term of tenure would be in the best interests of the Company.

Barrie Lepley Bryan Taylor Accommodation

Role of the Board

Board Size, Composition & Terms of Appointment

Janet Holmes à Court, AC Julian Sher Barrie Lepley Finance, Risk & Audit

Fiona Harris Barrie Lepley William Bloking Julian Sher Marketing & Sales

Bryan Taylor The sub-committees each has a charter that clearly defines the role of the committee, its members, terms of reference and duties. The sub-committees meet on a regular basis and meetings are formally minuted. The minutes are tabled at Board meetings and any issues raised from the minutes are discussed and dealt with as appropriate. The Board subcommittee structure is regularly reviewed. This committee reporting structure allows the Board to receive and review regular comprehensive reports on all key business areas.

Ethical Decision Making The Board is committed to maintaining ethical and responsible decision making processes based on the principles of fairness, integrity and honesty and to ensure compliance with Australian laws and regulations. Directors who may have a material personal interest in a matter to be considered by the Board or a board committee are required to make the nature of that interest known and must not be present while the matter is being considered. Details of such disclosures are recorded in the minutes of the meeting. Where an issue to be considered by the Board or a board committee is thought to present a Director with a potential conflict of interest, that Director will not be provided with the related material in the first instance. The Board has adopted the code of conduct promulgated by the Australian Institute of Company Directors.

Integrity in Financial Reporting

Board Performance Appraisal

The Board requires the CEO and CFO (Executive Manager – Business Services) to attest in writing that the Company’s financial reports present a true and fair view of the Company’s financial condition and operational results and are in accordance with relevant accounting standards.

The Board has conducted a self assessment of performance in 2008 and identified areas for its future development which were implemented in 2009.

The Board has established a Finance, Audit & Risk Committee that has a formal charter and includes at least one member who has financial expertise. The Finance, Audit & Risk Committee considers the effectiveness of the external auditor on a regular basis.

Management of Financial Risk

Remuneration Practices

Interests of Stakeholders The legitimate interests of stakeholders are recognised by the Board. Procedures have been established to guide compliance with legal obligations in areas such as occupational health and safety and to ensure the timely provision of relevant information to funding agencies.

The Board adopts remuneration policies that are designed to attract and retain talented and motivated individuals and to encourage enhanced company performance. The Board is responsible for setting the remuneration of the CEO and Principal Conductor. The Board does not receive any remuneration from the Company.

The Board has approved a risk management policy and implemented a risk management program, designed to identify the sources of risk, quantify the impact of these risks and control and reduce risk through practical and cost effective measures. The program involves the development of standards throughout the Company, which require awareness and action from all subcommittees to minimise risks and losses. In addition, the Company uses risk hedging techniques, including insurance, to reduce the financial impact of any uncontrollable or catastrophic losses. The Company carries sufficient insurance for the size and nature of its business to protect its assets. The Company’s risk management framework is reviewed annually by the Board and the risk environment is monitored regularly for changes that may be relevant to the Company.

Financials

Directors’ Report

Qualifications and experience of directors Janet Holmes à Court AC, BSc

The directors present their report together with the financial report of WASO Holdings Ltd (the ‘Company’) for the year ended 31 December 2009 and the independent auditor’s report thereon.

DIRECTORS The directors, at any time during or since the financial period, are: Janet Lee Holmes à Court, AC Chairman Appointed 21 November 2006 Julian Louis Sher Appointed 21 November 2006 James Barris Lepley Appointed 21 November 2006 Professor Margaret Seares, AO Appointed 21 November 2006 Fiona Elizabeth Harris Appointed 21 November 2006 Resigned 31 December 2009 Bryan Richard Strangman Taylor Appointed 21 November 2006 William Frederick Bloking Appointed 21 November 2006 Keith Kessell Appointed 11 June 2007 Mark Dudley Coughlan Appointed 15 October 2009

COMPANY SECRETARIES The secretaries, at any time during or since the financial period, are: Peter Andrew Freemantle Appointed 21 November 2006 Craig Michael Whitehead Appointed 10 June 2009

Mrs Holmes à Court is chairman of the John Holland Group, Australia’s most diversified construction and engineering company; the West Australian Symphony Orchestra Pty Ltd; the Australian Children’s Television Foundation and the Urban Design Centre of WA. She is also a Board Member of Vision 2020 Australia, the Australian Chamber Orchestra, the Australian National Academy of Music and the Rio Tinto WA Future Fund. She is a science graduate from the University of Western Australia and taught science for a number of years before working more closely with family business matters. Janet has also received numerous awards and acknowledgements for her involvement in business, the arts, social development, education and health. Julian Sher BA, LLB, MBA

Julian Sher is a barrister specialising in commercial litigation. Previously he was a litigation partner at a national law firm for about 20 years, with significant experience in matters involving commercial and corporate law, insolvency, banking and finance, corporate governance, commercial fraud and defamation. Julian is the Convenor of the Ethics Committee of the Law Society of Western Australia, a member of the Legal Practice Board of Western Australia, a member of the Legal Profession Complaints Committee of Western Australia and a member of the Disciplinary Panel of CPA Australia. He is a director of West Australian Symphony Orchestra Pty Ltd. Barrie Lepley BA, MBA

After 20 years as a banker engaged principally in international arbitrage and international corporate finance, Barrie now devotes much of his time to two businesses of which he is chairman. Lepley Properties develops and owns commercial property principally in Australia, Germany and China. Sanur Pty Ltd is the holding company for Lepley Properties. Seacrest Asset Pty Ltd invests in private as well as listed companies in Europe. Barrie is a Foundation Benefactor of the Art Gallery of Western Australia, a Life Member of the Beta Gamma Sigma Society, a member of the Strategic Resources Committee of the

University of Western Australia, Chevalier de Confrérie (Vougeot), Author of Margaret River Style and a director of the West Australian Symphony Orchestra Pty Ltd. Margaret Seares AO PhD (UWA), FAICD, AMusA

Margaret Seares has been professionally involved with the arts throughout her working life, having moved from being a lecturer in Music at The University of Western Australia (UWA), through to being the Head of the School of Music, and then on to being the Chief Executive of the West Australian Department for the Arts (now Culture & the Arts) and then Chair of the Australia Council for the Arts for the Federal Government. She was, over the past 5 years, Senior Deputy Vice Chancellor at UWA, a position from which she retired at the end of 2008. She has also been a director of a range of arts and culture boards and councils, both at the national and state levels. Margaret is also a director of West Australian Symphony Orchestra Pty Ltd. Fiona Harris BComm, FCA, FAICD

Fiona Harris has been a professional nonexecutive director for the past 14 years, holding positions with a variety of public listed and private companies, public sector and not for profit boards. Fiona began her career with chartered accountants KPMG and was a partner in their Sydney office when she left that organisation in December 1994. During her 14 years with KPMG, Fiona worked in Perth, San Francisco and Sydney specialising in financial services and superannuation. She was also involved in capital raisings, due diligence, flotations, capital structuring of transactions and litigation support. Fiona is a director of Vulcan Resources Limited, Territory Resources Limited, Perron Group Ltd, PG Holdings Ltd, GESB Mutual Limited, West Australian Symphony Orchestra Pty Ltd, and Chairman of Barrington Consulting Group Pty Ltd. She is past President of the WA division of the Australian Institute of Company Directors and is a member of their National Board. Bryan Taylor AFFAll, DipFP, CFP, FAICD, CD

Bryan commenced in the insurance industry at a time when the personal financial planning industry was in its infancy.

Left ~ Margaret Blades, Associate Concertmaster 23

Directors’ Report [cont]

His agency business specialised in investment advice from 1985 onwards and led to the formation of the specialist fee based advisory firm, which became Plan B Wealth Management. Bryan was succeeded by Denys Pearce as Managing Director in 2004, but has remained involved in guiding the strategic direction of Plan B Group Holdings Ltd (“PLB”) in his role as Chairman and Chief Investment Officer.

where he had been responsible for all aspects of external affairs as well as overseeing the Group’s sustainability program and approach to climate change and energy usage. Prior to that he worked as a senior adviser in national politics and in the media and has considerable experience in public affairs, policy development and issues management. Keith is currently a director of West Australian Symphony Orchestra Pty Ltd.

Bryan has over 25 years of experience in wealth management and was among the first group of Australian financial planners to complete a Diploma of Financial Planning and to be awarded the designation “Certified Financial Planner” by the International Association for Financial Planning (Australia).

Mark Coughlan

Bryan is also a director of Plan B Wealth Management Ltd and of West Australian Symphony Orchestra Pty Ltd. William F. (Bill) Bloking FAICD, BS, Mechanical Engineering (summa cum laude)

Bill Bloking has more than thirty-six years of experience in the international oil and gas sector, having worked both for ExxonMobil and BHP Billiton Petroleum in Asia, Australia, Europe, the USA, and South America. Bill was formerly the President, Australia/ Asia Gas for the BHP Billiton Group. In that role he had overall accountability for BHP Billiton’s international LNG business as well as its domestic gas business in Australia. Prior to joining BHP Billiton, Bill spent 24 years with ExxonMobil, where he held a variety of senior executive positions. Bill is a Fellow of the Australian Institute of Company Directors. He is currently the Chairman of Nido Petroleum and KAL Energy. He is also a non-executive director of the John Holland Group, Miclyn Express Offshore, the Lions Eye Institute, and the West Australian Symphony Orchestra Pty Ltd, and is a Governor of the American Chamber of Commerce in Australia and an Adjunct Professor at Murdoch University. Keith Kessell

Keith retired in late 2008 from a senior executive position with Wesfarmers, one of Australia’s largest public companies,

Mark Coughlan is a concert pianist, musical director, educator and writer. He is artistic director of the Government House Ballroom concert series, Music on the Terrace, and is music critic for The Australian newspaper. He has previously been a director of Musica Viva Australia and the WA Youth Orchestra and was chairman of AMEB Ltd, Australia’s largest music education publisher and examination organisation. For eight years he held the position of Head of the School of Music at The University of Western Australia. Mark is currently executive director of the Leeming Medical Group, chairman of the Government House Foundation of WA, a council member of the St George’s Cathedral Arts Foundation and a director of the West Australian Symphony Orchestra.

COMPANY SECRETARIES Peter Freemantle

Peter holds the position of Executive Manager Business Services of the West Australian Symphony Orchestra Pty Ltd. Prior to the formation of the company he held a similar position with the Australian Broadcasting Corporation, and was part of the executive team that oversaw the transition of the West Australian Symphony Orchestra from a department of the Australian Broadcasting Corporation to a public company. Craig Whitehead BA, GDBA, MBA

Craig is currently the Chief Executive of the West Australian Symphony Orchestra. He has extensive experience in senior roles within the arts industry having previously been the Chief Executive of West Australian Opera, and General Manager of La Boite Theatre Company. Craig has also

served as a Board Director of Future Now, Youth Arts Queensland, Brisbane Writers Festival, and was a Committee Member of the Brisbane City Council’s Music and Performing Arts Advisory Committee and a Member of the Queensland Department of State Development’s Creative Industries Performing Arts Segment Group.

PRINCIPAL ACTIVITIES The principal activity of the Company and its subsidiary, West Australian Symphony Orchestra Pty Ltd (together referred to as “the Group”) during the period was the performance of symphonic music. There were no significant changes in the nature of the activities of the Group during the period.

REVIEW AND RESULTS OF OPERATIONS The profit for the Group for the year ended 31 December 2009 was $313,076 (year ended 31 December 2008: $428,689). Operations of West Australian Symphony Orchestra Pty Ltd are dependent on funding received from the Commonwealth and State governments through WASO Holdings Ltd. This funding, along with sales and sponsorship revenue, was used to present performances of symphonic music. The Group presented the West Australian Symphony Orchestra and the Education Chamber Orchestra (EChO) in 177 performances to over 200,000 people during the year ended 31 December 2009. Performances were presented at the Perth Concert Hall, His Majesty’s Theatre, the Supreme Court Gardens, The Perth Esplanade and Kings Park. Concerts were also presented at several local schools, and regionally with EChO in Esperance and Ravensthorpe. Demonstrations and instrumental workshops with the ‘WASO on the Road’ were also held at schools across the Gascoyne, Midwest, Pilbara and Kimberley regions.

STATE OF AFFAIRS There were no significant changes in the underlying state of affairs of the Company that occurred during the financial period under review.

EVENTS SUBSEQUENT TO BALANCE DATE

Marketing & Sales Committee

Except as otherwise disclosed in the notes to the financial statements, no events have occurred subsequent to balance date that materially affect the accounts and are not already reflected in the Statement of Comprehensive Income and Statement of Financial Position.

B R S Taylor

A B

2 2

Directors’ Meetings West Australian Symphony Orchestra Pty Ltd A B

J L Holmes à Court

7 7

J L Sher

6 7

LIKELY DEVELOPMENTS

J B Lepley

7 7

The Group will continue to present performances of music during the next financial year, with 159 performances currently scheduled to be presented during this period. The Group’s continuing success is dependent on increasing its current level of government funding, corporate sponsorship, philanthropy and ticket sales.

Prof. M Seares

5 7

F E Harris

6 7

B R S Taylor

5 7

W F Bloking

6 7

K Kessell

7 7

M D Coughlan

2 2

DIRECTORS’ INTERESTS

Accommodation Committee

A B

J L Holmes à Court

2 2

J L Sher

2 2

J B Lepley

2 2

The Company is limited by guarantee and accordingly does not issue shares.

DIRECTORS’ MEETINGS The number of directors’ meetings held during the year ended 31 December 2009 and the number of meetings attended by each director were as follows: Directors’ Meetings WASO Holdings Ltd

A B

J L Holmes à Court

7 7

J L Sher

6 7

J B Lepley

7 7

Prof. M Seares

5 7

F E Harris

6 7

B R S Taylor

5 7

W F Bloking

6 7

K Kessell

7 7

M D Coughlan

2 2

Artistic Committee

Finance, Audit & Risk Committee A B

F E Harris

7 7

W F Bloking

7 7

J L Sher

6 7

J B Lepley

1 1

Development Committee

A B

J B Lepley

5 5

B R S Taylor

3 5

Column A - indicates the number of meetings attended Column B - indicates the number of meetings held during a director’s membership

DIRECTORS’ REMUNERATION Directors are not paid any fees for their services as directors of the Company. Details of remuneration of key management personnel are disclosed in Note 16.

INDEMNIFICATION AND INSURANCE OF OFFICERS The Company, through Director Protection Deeds, indemnified all directors against any liability to any person (other than the Company or a Related Body Corporate of the Company), incurred as a director or employee of the Company or its subsidiary. The indemnity does not extend to any claim arising out of conduct involving a lack of good faith or breach of duty. During the period, the Company has paid premiums in respect of directors’ and officers’ liability, legal expenses and insurance contracts for the period ended 31 December 2009. Since the end of the period, the Group has paid or agreed to pay premiums in respect of such insurance contracts for the year ending 31 December 2010. Such insurance contracts insure persons who are or have been directors or officers of the Company and its subsidiary against certain liabilities (subject to certain exclusions). The directors have not included details of the nature of the liabilities covered or the amount of the premium paid as such disclosure is prohibited under the terms of the contract.

Auditor’s Independence The directors have received a declaration of independence from the auditors. This declaration can be found on page 46 and forms part of this report. Signed in accordance with a resolution of the directors:

A B

Prof. M Seares

3 3

K Kessell

3 3

M D Coughlan

1 1

Janet Holmes à Court AC Chairman Perth, dated 31 March 2010

Statement of Comprehensive Income FOR THE YEAR ENDED 31 DECEMBER 2009

Continuing Operations

Notes

Consolidated 2009 $

Consolidated 2008 $

Parent 2009 $

Parent 2008 $

Revenue

Funding revenue

8,444,054

8,388,556

8,179,054

8,054,744

Ticket sales

4,121,893

4,236,523

Sponsorship and donations revenue

3,237,512

3,167,953

Other revenue

719,098

798,792

16,522,557

16,591,824

8,179,054

8,054,744

9,248,193

9,260,960

Artist fees and expenses

1,686,013

1,815,470

Marketing expenses

1,226,337

1,065,563

Production expenses

1,880,289

1,645,631

8,179,054

8,054,744

Other expenses

2,168,649

2,375,511

Total expenses

16,209,481

16,163,135

8,179,054

8,054,744

Net profit for the period

313,076

428,689

Total comprehensive income for the period

313,076

428,689

Total revenue Expenses

Employee expenses

Funding to subsidiary

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Statement of financial position AS AT 31 DECEMBER 2009

Notes

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

15a

282,260

2,554,227

4,782,700

2,666,063

946,634

568,277

11,038

28,948

355,618

75,606

6,378,250

5,893,121

759,753

894,318

1,388,204

759,753

894,318

1,388,204

7,138,003

6,787,439

1,388,204

Assets Current assets

Cash and cash equivalents Other short term deposits Trade and other receivables

Inventories Prepayments

Total current assets

Non-current assets

Property, plant and equipment

Investment in subsidiary

Total non-current assets Total assets Liabilities Current liabilities

Trade and other payables

664,126

1,571,532

Prepaid revenue

2,883,796

2,108,951

Provisions

1,207,874

1,076,614

4,755,796

4,757,097

130,120

91,331

130,120

91,331

Total liabilities

4,885,916

4,848,428

Net Assets

2,252,087

1,939,011

1,388,194

1,773,146

1,711,149

478,941

227,862

1,388,194

2,252,087

1,939,011

1,388,194

Total current liabilities

Non-current liabilities Provisions

Total non-current liabilities

Equity Reserves

Retained Profits Total Equity

The above Statement of Financial Position should be read in conjunction with the accompanying notes. 27

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2009

Consolidated As at 31 December 2007

Net profit and comprehensive income for the period Transfer to Reserves Incentive Funding Scheme Reserve As at 31 December 2008

Net profit and comprehensive income for the period Transfer to Reserves Incentive Funding Scheme Reserve As at 31 December 2009

Retained Profits / (Accumulated Losses) $

Reserves (Note 14) $

Total Equity $

( 85,304)

1,595,626

1,510,322

428,689

( 115,523)

115,523

227,862

1,711,149

1,939,011

313,076

( 61,997)

61,997

478,941

1,773,146

2,252,087

Retained Profits s

Total Equity $

1,388,194

Parent As at 31 December 2007

Net profit and comprehensive income for the period As at 31 December 2008

Net profit and comprehensive income for the period As at 31 December 2009

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2009

Consolidated 2009 $

Consolidated 2008 $

Parent 2009 $

Parent 2008 $

Cash receipts from customers

4,961,025

5,271,703

Cash receipts from sponsors and other private sector

1,613,484

2,369,824

355,426

339,580

Cash payments to suppliers and employees

( 15,726,005)

( 15,360,340)

Grants received from government funding bodies

8,444,054

8,388,556

8,179,054

8,054,744

Cash funding to subsidiary

( 8,179,054)

( 8,054,744)

( 352,016)

1,009,323

254,164

371,933

( 2,116,637)

( 2,666,063)

( 57,478)

( 146,902)

( 1,919,951)

( 2,441,032)

Amounts drawn down under loan

Repayment of loan

Net cash flows provided by financing activities

2,554,227

3,985,936

( 2,271,967)

( 1,431,709)

282,260

2,554,227

NOTES

Cash flows from operating activities

Cash receipts from donors

Net cash provided by / (used in) operating activities

15b

Cash flows from investing activities Interest received Other short term deposits Payments for property, plant and equipment

Net cash flows (used in) investing activities Cash flows from financing activities

Cash and cash equivalents at beginning of the period Net decrease in cash held Cash and cash equivalents at end of the period

15a

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL StatementS

CORPORATE INFORMATION 1

The financial report of WASO Holdings Ltd and its controlled entity for the year ended 31 December 2009 was authorised for issue in accordance with a resolution of the directors on 31 March 2010. WASO Holdings Ltd (the parent) is a public company limited by guarantee, incorporated and domiciled in Australia. The address of the registered office is: Ground Floor, 445 Hay Street, Perth, WA 6000 The nature of the operations and principal activities of the Group was the performance of symphonic music.

AASB 101 Presentation of Financial Statements (Revised). The revised Standard separates owner and non-owner changes in equity and requires a statement of comprehensive income to be prepared which discloses all changes in equity during a period resulting from non-owner transactions. The Group has elected to present comprehensive income in one statement. Other Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Group for the reporting period ended 31 December 2009. These new or amended Standards are not expected to have a material impact on the financial report. c) Basis of consolidation

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2

a) Basis of preparation

The consolidated financial report is a general purpose financial report and complies with the requirements of the Corporations Act 2001 and Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The consolidated financial report has been prepared on a historical cost basis, and presented in Australian dollars. b) Statement of compliance

The consolidated financial report complies with Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. Changes in accounting policy and disclosure The adoption of new and amending Australian Accounting Standards and Interpretations mandatory for annual periods beginning on or after 1 January 2009 did not result in any significant changes to the accounting policies. The impact of new and amending Standards on the financial statements is as follows:

The consolidated financial statements comprise the financial statements of WASO Holdings Ltd and its subsidiary as at 31 December 2009. The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all inter-company 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. d) 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 terms of the main funding grants from Australia Council for the Arts and the Western Australian Department of Culture and the Arts are set out in the Tripartite Funding Agreement. This agreement has been updated with a deed of variation to extend funding to 31 December 2010.

An undertaking has also been given by these government funding agencies for this funding to continue up to 31 December 2011 subject to the Company continuing to comply with the terms and conditions of the Tripartite Agreement. Therefore the financial statements have been prepared under the going concern principle. e) 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:

• 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 Group. • Funding revenue Funding revenue is received from the Australia Council for the Arts (represented by the Major Performing Arts Board) and the Western Australian Department of Culture and the Arts. Funding is received based on payment schedules contained in a funding agreement between the funding bodies and WASO Holdings Ltd and is recognised in accordance with 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. Special purpose funding, which requires the Group to fulfil an obligation outside its normal operations, is recognised at the time the obligation is fulfilled. • Ticket sales Revenue from ticket sales is recognised in the Statement of Comprehensive Income at the time of concert performance. Revenue from ticket sales in respect of productions not yet performed is included in the Statement of Financial Position as prepaid ticket sales under the Current Liabilities heading “Prepaid revenue”.

â&#x20AC;˘ Sponsorship and donations revenue Sponsorship Sponsorship 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. â&#x20AC;˘ 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. f) Foreign currency translation

Both the functional and presentation currency of the Company and its subsidiary is Australian dollars (A$). Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated 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 recognised in the Statement of Comprehensive Income. g) Income tax and other taxes

The Company and its subsidiary are exempt from income tax, capital gains tax and payroll tax by virtue of being a cultural organisation established for the encouragement of music, and a charitable institution. Revenues, expenses and assets are recognised net of the amount of 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 of an item of 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 Statement of Financial Position. Cash flows are included in the statement of cash flows on a gross basis. 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. h) 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 costs directly attributable to the acquisition. i) Cash and cash equivalents

Cash and cash equivalents include cash at bank and 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 which are subject to an insignificant risk of changes in value. j) Trade receivables

Trade receivables, which generally have 14 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for impairment. Collectability of trade receivables is reviewed on an ongoing basis at an operating unit level. Individual debts that are known to be uncollectable are written off when identified. An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable. Financial difficulties of the debtor or default payments are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at the original effective interest rate.

k) 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 Statement of Comprehensive Income during the financial period in which they are incurred. Items of plant and equipment, leasehold improvements, computer equipment, musical instruments, music library items and motor vehicles are depreciated using the straight-line method over their estimated useful lives. Each class of asset in the current period was depreciated over the following useful lives:

sset class and Useful Life A Leasehold improvements Between 3 and 6 years or the term of the lease Musical instruments 15 years Computer equipment Between 3 and 5 years Staging & other equipment Between 3 and 15 years Music library 33 years Motor vehicles 5 years l) Impairment

The carrying values of plant and equipment are reviewed for 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.

NOTES TO THE FINANCIAL StatementS

m) Leased plant and equipment

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. 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. n) Trade and other payables

Trade payables and other payables are carried at amortised cost and due to their short term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. o) Employee benefits

• Wages, salaries and annual leave The provisions for employee benefits to wages, salaries and annual leave represent the amount which the Company has a present obligation to pay resulting from employees’ services provided up to the balance date. The provisions have been calculated at undiscounted amounts based on wage and salary rates which are expected to be paid when the liability is settled and include related on-costs. • Employee loans Some employees may be lent monies which are used in turn to purchase musical instruments. These loans are secured by the instruments themselves. Amounts outstanding are recouped over time through contributions withheld from musicians’ salaries. • Superannuation plans The Company contributes to employees’ superannuation plans. Employer contributions in relation to the period ended 31 December 2009 have been expensed against income.

• Long service leave The long service leave liability represents the present value of the estimated future cash outflows to be made by the employer resulting from employees’ services provided up to the balance date. Liabilities for employee benefits which are not expected to be settled within twelve months are discounted using the rates attaching to national government securities at balance date which most closely match the terms of maturity of the related liabilities. In determining the liability for employee benefits, consideration is given to future increases in wage and salary rates, and the Group’s experience with staff departures. Related on-costs have also been included in the liability. p) Investment in subsidiary

Investments in a subsidiary are initially accounted for at cost being the fair value at the date of acquisition. After initial recognition, investments are carried at cost less any provision for impairment. q) Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS 3

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. The following critical accounting policies have been identified for which significant judgements, estimates and assumptions are made.

• Impairment of non-financial assets The Group assesses impairment of its nonfinancial assets at each reporting date by evaluating conditions specific to the Group and to the specific asset. If an impairment trigger exists the recoverable amount of the asset is determined. There have been no impairment triggers and these assets have not been tested for impairment in this financial period. • Estimate of useful lives The estimation of useful lives of assets is based on historical experience. The condition of assets is assessed periodically and considered in relation to the remaining useful life of the asset and adjustments made to useful lives as appropriate.

Funding revenue

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

6,092,518

5,946,756

6,092,518

5,946,756

52,585

132,239

52,585

132,239

15,000

2,017,707

1,919,901

2,017,707

1,919,901

16,244

40,848

16,244

40,848

100,000

158,544

15,000

165,000

160,268

8,444,054

8,388,556

8,179,054

8,054,744

Australia Council for the Arts

Base funding Orchestral review funding Strategic Business Initiative Grant Department of Culture and the Arts

Base funding Orchestral review funding Touring funds Market research funding Additional hall hire funds Total funding revenue

The Group had a three year contract in place securing base funding with the Australia Council for the Arts and the Western Australian Department of Culture and the Arts which commenced on 1 January 2007 and expired on 31 December 2009. The Group also had an Orchestra Review Funding Agreement in place which provided additional funding for the implementation of certain recommendations of the â&#x20AC;&#x153;A NEW ERA - Orchestras Review Report 2005â&#x20AC;? from

1 January 2007 to 31 December 2009. This agreement is with the Australia Council for the Arts and the Western Australian Department of Culture and the Arts and expired on 31 December 2009. This agreement has been updated with a deed of variation to extend funding to 31 December 2010. An undertaking has also been given by these government funding agencies for this funding to continue up to 31 December 2011 subject to the Company

continuing to comply with the terms and conditions of the Tripartite Agreement. Therefore the financial statements have been prepared under the going concern principle. Under the agreements, funding is initially provided to WASO Holdings Ltd and is subsequently transferred to West Australian Symphony Orchestra Pty Ltd under a separate funding agreement between the parent company and its subsidiary.

Ticket sales

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

Subscriptions

1,463,610

1,551,592

Single night

2,658,283

2,684,931

4,121,893

4,236,523

Total ticket sales

NOTES TO THE FINANCIAL StatementS

Sponsorship and donations revenue

Sponsorship and donations revenue Sponsorship Donations

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

2,863,495

2,800,182

355,426

339,580

18,591

28,191

3,237,512

3,167,953

Reserves Incentive Funding Scheme Other private sector revenue Total sponsorship and donations revenue

Sponsorship includes an amount of $45,000 received by the Group through a sponsorship agreement with Western Australian Health Promotion Foundation.

Other revenue Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

Interest

254,164

371,933

Orchestral Hire Revenue

210,238

280,016

Other revenue

254,696

146,843

719,098

798,792

Other revenue

Total other revenue

Expenses

The net profit from ordinary activities has been arrived at after charging the following items:

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

8,179,054

7,741,218

Leasehold Improvements

75,865

76,035

Musical Instruments

43,484

40,432

Music Library Scores

4,952

4,743

Computers

28,509

28,476

Plant & Equipment

28,400

29,213

Motor Vehicles

10,833

17,953

192,043

196,852

181,240

162,228

Salaries and wages

7,796,903

7,828,159

Superannuation

1,070,842

1,017,294

Workers compensation

261,182

241,573

Other employee expenses

119,266

173,934

9,248,193

9,260,960

Funding to subsidiary

Depreciation

Total depreciation

Operating lease rental expense

Employee expenses

Total employee expenses

NOTES TO THE FINANCIAL StatementS

Trade and other receivables Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

Trade debtors

895,227

441,277

Provision for impairment loss

( 8,000)

( 13,000)

887,227

428,277

59,407

140,000

Total current receivables

946,634

568,277

Total trade and other receivables

946,634

568,277

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

0 to 14 days

526,807

403,373

15 to 60 days

359,812

22,514

61 to 90 days

608

2,390

Over 90 days

887,227

428,277

A) Trade and other receivables Current

Carrying amount of trade receivables

Accrued revenue

b) Past due but not impaired Trade debtors ageing

Total trade debtors

As of 31 December 2009, trade debtors over 14 days were past due but not considered to be impaired as there is no objective evidence at reporting date to indicate that the Group will not be able to collect all amounts due. c) Fair Value

Due to the short term nature of these receivables, the carrying value is assumed to approximate their fair value. d) Provision for impairment

The Group has provided for a provision of $8,000 for impairment of receivables in accordance with its accounting policy.

Property, plant and equipment - Consolidated

Reconciliation of carrying amounts at the end of the period. Leasehold Improvements $

Musical instruments $

Music Library Scores $

Computers $

Plant & Equipment $

Motor Vehicles $

Total $

109,287

498,134

138,973

48,069

88,908

10,947

894,318

Additions

3,681

7,180

9,493

37,124

57,478

Disposals

( 75,865)

( 43,484)

( 4,952)

( 28,509)

( 28,400)

( 10,833)

( 192,043)

33,422

458,331

141,201

29,053

97,632

114

759,753

256,143

579,724

155,289

118,172

193,932

46,851

1,350,111

( 222,721)

( 121,393)

( 14,088)

( 89,119)

( 96,300)

( 46,737)

( 590,358)

33,422

458,331

141,201

29,053

97,632

114

759,753

185,322

454,086

135,195

33,854

106,911

28,900

944,268

Additions

84,480

8,521

42,691

11,210

146,902

Disposals

Depreciation expenses

( 76,035)

( 40,432)

( 4,743)

( 28,476)

( 29,213)

( 17,953)

( 196,852)

Balance at 31 December 2008 net of accumulated depreciation

109,287

498,134

138,973

48,069

88,908

10,947

894,318

256,143

576,043

148,109

108,679

156,808

46,851

1,292,633

( 146,856)

( 77,909)

( 9,136)

( 60,610)

( 67,900)

( 35,904)

( 398,315)

109,287

498,134

138,973

48,069

88,908

10,947

894,318

Period ended 31 December 2009 At 1 January 2009, net of accumulated depreciation and impairment

Depreciation expenses

Balance at 31 December 2009 net of accumulated depreciation At 31 December 2009

Cost Accumulated depreciation Closing balance Period ended 31 December 2008 At 1 January 2008, net of accumulated depreciation and impairment

At 31 December 2008

Cost Accumulated depreciation Closing balance

The parent company does not hold any property, plant and equipment, so only the consolidated property, plant and equipment are shown. 37

NOTES TO THE FINANCIAL StatementS

Trade and other payables Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

Accruals

218,769

390,157

Trade creditors

445,357

672,215

Other creditors

509,160

664,126

1,571,532

443,406

672,215

61 to 90 days

1,906

Over 90 days

445,357

672,215

Total trade and other payables Maturity analysis of trade payables 0 to 60 days

Total trade creditors Fair Value

Due to the short term nature of these payables, the carrying value is assumed to approximate their fair value.

Prepaid revenue Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

Prepaid ticket sales

1,821,721

1,707,516

Prepaid other

1,062,075

401,435

2,883,796

2,108,951

Total prepaid revenue

Provisions Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

1,207,874

1,076,614

130,120

91,331

1,337,994

1,167,945

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

1,773,146

1,711,149

Consolidated $

Australia Council For the arts

469,000

ArtsWA

469,000

Donations received

469,000

Interest less Charges

366,146

304,149

1,773,146

1,711,149

Employee benefits Current provision for employee benefits Non-current provision for employee benefits Total Provisions

Equity - Consolidated

Reserves Reserves Incentive Funding Scheme

The amounts paid or payable by each of the parties to the scheme are as follows:

Reserves Incentive Funding Scheme Reserve

These funds have been set aside in accordance with the Reserves Incentive Funding Scheme Agreement between the Group, the Australia Council for the Arts and the State of Western Australia. The funds received under the Reserves Incentive

Funding Scheme Agreement, together with the Groupâ&#x20AC;&#x2122;s contribution, are held in escrow for a period of 15 years ending 9 January 2022 and are subject to the terms of the Reserves Incentive Scheme Funding Agreement.

The funds have not been used to secure any liabilities of the Group. The funds consist of short term deposits of $1,773,146 (2008 : $1,666,063) and cash and cash equivalents of nil (2008 : $45,086).

NOTES TO THE FINANCIAL StatementS

Cash flow statement reconciliation

a) Reconciliation of cash

For the purposes of the cash flow statement, cash includes cash on hand and at bank and short-term deposits at call. Cash and cash equivalents as at the end of the financial period as shown in the cash flow statement are as follows:

Cash Restricted cash assets (Note 14)

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

282,260

2,509,141

45,086

282,260

2,554,227

b) Reconciliation of net profit from ordinary activities to net cash provided by operating activities Net profit

313,076

428,689

( 254,164)

( 371,933)

192,043

196,852

250,955

253,608

Decrease / (increase) in receivables

( 378,357)

110,380

Decrease / (increase) in other assets

( 262,102)

205,788

Increase / (decrease) in payables

( 907,406)

( 133,888)

Increase / (decrease) in prepaid revenue

774,845

639,132

Increase / (decrease) in provisions

170,049

( 65,697)

Changes in assets & liabilities

( 602,971)

755,715

Net cash provided by / (used in) operating activities

( 352,016)

1,009,323

Adjustments for

Interest received Add non-cash items: Depreciation

Net cash provided by operating activities before change in assets and liabilities

Changes in assets & liabilities

Directors’ and executives’ disclosures

a) Details of key management personnel Directors

J L Holmes à Court (Chairman) Appointed 21 November 2006 J L Sher Appointed 21 November 2006 J B Lepley Appointed 21 November 2006 Professor M Seares Appointed 21 November 2006 F E Harris Appointed 21 November 2006 (Resigned 31 December 2009) B R S Taylor Appointed 21 November 2006 W F Bloking Appointed 21 November 2006 K Kessell Appointed 11 June 2007 M D Coughlan Appointed 15 October 2009

Executives

C M Whitehead Chief Executive Officer K N Carnachan Executive Manager, Marketing P A Freemantle Executive Manager, Business Services M G McGuire Executive Manager, Artistic Planning G A Waters Orchestra Manager (Resigned 26 September 2009) M D Kar Human Resources Manager P J Gallagher Executive Manager, Corporate Development (Appointed 18 March 2009) A J Benzie Executive Manager Private Giving (Appointed 10 March 2009) K J McGowan Executive Manager, Orchestral Management (Appointed 28 September 2009)

B) Compensation of Key Management Personnel Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

Short term

890,382

754,031

Other employment benefits

109,096

56,903

999,478

810,934

Directors have not received any payments for their services as directors.

NOTES TO THE FINANCIAL StatementS

Related parties

a) Directors Transactions with directors

Mrs J L Holmes à Court has an interest as Chairman of the John Holland Group. John Holland Group contributed $45,000 as a cash sponsorship to the Group during the year. Additionally, Ms Holmes à Court contributed donations to the Group of $50,500 during the year. Prof. Margaret Seares contributed a donation of $3,000 to the Group during the year. Ms F E Harris has an interest as a director of the company Barrington Consulting Group. During the year, $20,000 worth of services were available to the Group as part of an in-kind sponsorship. However this was not utilised and no payments were made to Barrington Consulting Group. Ms Harris also has an interest as a director of the Perron Group. Perron Group contributed $15,000 cash sponsorship to the Group. All dealings with these firms are transacted under normal terms and conditions of business.

Mr B R S Taylor has an interest as Chairman of Plan B Group Holdings. Plan B manages the default superannuation fund for the employees of the Group. Amounts paid on behalf of the employees of the Group into this superannuation fund for the period, amounted to $141,511. Plan B contributed $65,000 cash sponsorship to the Group during the year. Mr J B Lepley has an interest as Chairman of Sanur Pty Ltd. Sanur Pty Ltd contributed $30,000 cash sponsorship to the Group during the year. Sanur Pty Ltd also contributed a donation of $5,500 to the Group during the year.

b) Subsidiary The consolidated financial statements of WASO Holdings Ltd at 31 December 2009 include the parent Company’s wholly owned subsidiary, West Australian Symphony Orchestra Pty Limited which is incorporated in Australia and has the same balance date as that of the parent entity. The carrying value of the investment is $1,388,204.

Mr W F Bloking has an interest as a Director of the John Holland Group which as stated above contributed sponsorship of $45,000 to the Group. Transactions between the Group and entities of which directors have declared an interest, are transacted under normal terms and conditions of business.

Auditor’s remuneration

Auditing of the financial report

No other benefits were received by the auditor.

There were no contracts involving directors’ interests subsisting at period end excepting sponsorship agreements under normal terms and conditions of business.

Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

34,245

32,400

Commitments and contingencies Consolidated 31 December 2009 $

Consolidated 31 December 2008 $

Parent 31 December 2009 $

Parent 31 December 2008 $

51,768

95,813

3,550

55,418

55,318

151,231

Operating lease (non-cancellable) Not later than one year Later than one year and not later than five years

The Group has operating leases for office accommodation and photocopier rental.

Artist fees contracted for but not provided for and payable Not later than one year

820,220

593,185

Later than one year and not later than five years

300,300

587,670

1,120,520

1,180,855

The Group has entered into contracts for performances scheduled to take place during 2010 and subsequent years. These amounts include the maximum expenditure required to satisfy the contracts with the artists.

Financial risk management

The Groupâ&#x20AC;&#x2122;s principal financial instruments comprise cash and short-term deposits, receivables and payables. Risk management is carried out by management under delegation from the Board. The Group does not enter into derivative financial instruments for trade or speculative purposes. The Group manages its exposure to key financial risks, including interest rate and currency risk in accordance with the Groupâ&#x20AC;&#x2122;s financial risk management policy.

a) Interest rate risk exposures

b) Interest rate sensitivity

The Groupâ&#x20AC;&#x2122;s only financial asset that is exposed to variable rate interest is cash, cash equivalents and term deposits of $5,061,760 (2008: $5,217,090). The weighted average interest rate at 31 December 2009 was 5.0% (2008: 6.8%). The Group regularly analyses its interest rate exposure. Consideration is given to potential renewals of existing positions and the mix of fixed and variable interest rates.

The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance sheet date. The 1.5% sensitivity is based on reasonably possible changes, over a financial year, using an observed range of historical Australian deposit rate movements over the last 3 years.

The parent company does not hold any cash or financial assets or liabilities so only the consolidated position is shown.

At 31 December 2009, if interest rates had moved, as illustrated in the table below, with all other variables held constant, net profit and equity relating to financial assets of the Group would have been affected as follows:

NOTES TO THE FINANCIAL StatementS

Consolidated 2009 $

Consolidated 2008 $

Parent 2009 $

Parent 2008 $

1.50%

76,249

82,044

-1.50%

( 76,249)

( 82,044)

1.50%

-1.50%

Judgements of reasonably possible movements:

Net profit - higher / (lower)

Equity* - higher / (lower)

*Excludes accumulated profits / (losses)

c) Net fair value The net fair value of financial assets and 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 net fair value or because of their short term to maturity.

The Group’s maximum exposure to credit risk at balance date in relation to recognised financial assets which consist of cash, cash equivalents, term deposits and receivables is the carrying amount of those assets as indicated in the balance sheet and related notes. e) Liquidity risk

d) Credit risk exposure

Receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. The Group monitors the credit risk arising from cash, cash equivalents and term deposits through holding its cash through banks with a Standard and Poor’s rating of AA/A-1+ or greater.

The Group’s liquidity objective is to secure sufficient funding from the federal and state governments for the next 5 years and to maintain adequate cash balances. At 31 December 2009, the Group has received commitments from these entities to be funded at current levels for the years ending 31 December 2010 and 2011.

f) Exchange rate risk

The Group has a minimal exposure to changes in foreign exchange rates.

Directorsâ&#x20AC;&#x2122; Declaration In the opinion of the directors of WASO Holdings Ltd: (a) the financial statements and notes of the Company and of the consolidated entity are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the financial position of the Company and consolidated entity as at 31 December 2009 and of their performance, as represented by the results of their operations for the financial period ended on that date; and (ii) complying with Accounting Standards and the Corporations Regulations 2001; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

Janet Holmes Ă Court AC Chairman

Perth, dated 31 March 2010

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

Independent Audit Report

WASO1001

WASO HOLDINGS Limited

abn 22 122 779 739 west australian symphony orchestra pty ltd

abn 26 081 230 248 445 hay street, perth wa 6000 | po box 3041, perth adelaide terrace, wa 6832 office p 08 9326 0011 f 08 9326 0080 | box office p 08 9326 0000 f 08 9326 0099 www.waso.com.au 48