2015-2016 Brisbane Marketing Annual Report by Brisbane Marketing

2015â&#x20AC;&#x201C;16 BRISBANE MARKETING

ANNUAL REPORT

CONTENTS Lord Mayor’s Foreword

Chairman’s Review

Brisbane Marketing Highlights C EO’s Review 2015-16

Key Performance Indicators

Our Board

Corporate Governance

Annual Financial Statements

2015–16

BRISBANE A wholly-owned subsidiary of Brisbane City Council, Brisbane Marketing takes a leadership role in shaping the city’s future prosperity. Brisbane Marketing’s chief responsibility is to facilitate economic growth and promote the city nationally and internationally as Australia’s New World City.

delivered by hosting the G20. On behalf of the Lord Mayor, Brisbane Marketing is driving implementation of the actions outlined in the seven-year plan.

In 2015-16 this has been demonstrated through the delivery of the Brisbane 2022 New World City Action Plan, in particular, the growth in investment attraction, a booming leisure tourism sector and programs to support Brisbane’s burgeoning startup community and the small business arena.

Brisbane’s $146 billion economy is on track to grow to more than $217 billion by 2031. Brisbane Marketing will continue to work in partnership with council to drive collaboration with government, business, industry and the community to advance the economic and social value of the city and the Greater Brisbane region.

Brisbane 2022 is an industry-led vision for the future to continue the momentum

MA RK E T I NG Our purpose To create a more prosperous Brisbane • Partner with council, government and business to drive economic growth through investment, talent attraction, tourism, events, conventions, commerce, innovation and education. • Promote Brisbane as Australia’s New World City, a great destination, a serious player on the world stage and hub for the Asia Pacific region.

• Create customer value by bringing together people and organisations for their mutual benefit and the broader benefit of Brisbane. • Persuade others to invest, visit, meet, study, work, live and play in Brisbane.

• Champion a commitment to high-quality service, unique visitor experiences, innovative ideas, and a globally competitive, digitally savvy business environment that attracts talent and enterprise.

2015–16

LORD MAYOR’S Following the success of an historic G20 host year in 2014, Brisbane has continued to grow as a thriving economic and cultural centre in the Asia Pacific region. With the delivery of the Brisbane 2022 New World City Action Plan in 2015, the city’s focus moved to advancing Brisbane’s eight priority economic sectors and laying the foundations for sustainable growth over the next seven years and beyond. Brisbane’s international recognition is at an all-time high thanks to a booming leisure tourism and business events sector. In 2015, for the first time we welcomed more than one million international visitors, and the announcement of four new airline routes to Brisbane – Tokyo, Vancouver, Christchurch

and Shanghai – will only increase numbers further. The city’s famous hospitality and Team Brisbane approach with industry has driven unprecedented results in our visitor economy. This year I am proud to have announced the city’s investment in a new innovation hub. The Capital will be located in Brisbane’s CBD and is designed to immerse startups into the city’s corporate business precinct and be the catalyst for local jobs in global industries. Nurturing Brisbane’s startup ecosystem and creating a dynamic innovation hub

FO R E WO R D was one of seven key economic priorities

The delivery of the Brisbane 2022 New

outlined in the Brisbane 2022 New World

World City Action Plan by Brisbane

City Action Plan.

Marketing and its Team Brisbane partners

Small and medium enterprises (SMEs)

will make Brisbane a better and more sustainable place to live, work and grow.

are also a key part of our economic

I look forward to working with the Brisbane

development towards 2022. We have

Marketing board in the coming year, and am

engaged with more than 10,000 SMEs

confident that our collaboration will ensure

as part of the city’s digital strategy since

Brisbane’s future continues to look brighter

2013 and provide support through multiple

than ever.

streams, including access to funding and

I would like to thank the Brisbane Marketing

talent resources, education and networking

board, CEO John Aitken and committed

opportunities. Further demonstrating our

team for their hard work and dedication over

dedication and appreciation to Brisbane’s

the past year, which placed Brisbane firmly

business sector, the 10th annual Lord Mayor’s

on the path towards becoming the world’s

Business Awards continued the tradition of

pre-eminent New World City.

celebrating the great contribution made to

Graham Quirk

our city by this sector.

Lord Mayor

2015–16

CHAIRMAN’S REVIEW In 2015-16 the City of Brisbane continued on its path of sustainable growth as outlined in the Brisbane 2022 New World City Action Plan. I presented the action plan to the Lord Mayor in May 2015 and Brisbane Marketing’s key purpose is to deliver this strategy for job creation, improving quality of life – now and for future generations – and entrenching the city as an economic and cultural hub for the Asia Pacific. In a globalising economy, our city needs to align its outputs with the needs of the world. We are recalibrating our urban economy to increase global exports of the city’s industry specialisations and shaping our New World City economic profile. Brisbane’s economy continues to expand, diversify and strengthen and in the year since the Brisbane 2022 New World City Action Plan was announced, there has been considerable activity. In the plan we committed to nurturing the startup ecosystem and supporting small businesses. More than 500 small businesses

and 200 startups have been engaged in our Digital Brisbane programs in 2015-16. Nurturing both SMEs and startups is vital to the future of the city’s economy, and the announcement during the year by the Lord Mayor of the city’s $5 million innovation hub, The Capital, further strengthens our commitment to Brisbane’s dynamic startup and business sector. With an ever-changing media landscape as well as the fast pace at which we consume information, Brisbane Marketing has revised our measurement of economic impact of traditional media to include the widespread use of digital and social channels for our visitor economy. In 2015-16, we adopted a Potential on Investment (POI) model which calculates the value of social media activity as economic benefit to the city. This new measurement is included in our annual report for the first time this year and reflects

a significant return on investment from Brisbane Marketing digital channels. In 2016-17, we will continue to focus on the sectors with the most growth potential and relevance to future demand: • • • • • • • •

knowledge-based and corporate services accommodation and the visitor economy food and agribusiness advanced manufacturing property development and construction creative and digital services higher and international education energy and resources.

These sectors are the key to Brisbane’s economic future, promising higher-yielding jobs and the potential for international trade. Jobs in these sectors will ultimately deliver our goal for a $75,000 income per capita by 2031, up from $64,000 per capita today. Brisbane Marketing is a strategic organisation made up of operational departments all striving for a more prosperous Brisbane. My thanks to Chief Executive Officer John Aitken and Brisbane Marketing staff for their ongoing commitment and effort. Thank you as well to my fellow board members for their valuable time and expertise.

Thank you also to our Brisbane Marketing members and corporate partners for their ongoing support. My sincere thanks go to Lord Mayor Graham Quirk, Deputy Mayor and Infrastructure Committee Chair, Cr Adrian Schrinner, and new Finance, Economic Development and Administration Committee Chair, Cr Krista Adams. I would also like to acknowledge Cr Julian Simmonds who served as Finance, Economic Development and Administration Committee Chair for the majority of the 2015-16 year and all members of the Civic Cabinet for their commitment to the economic development of Brisbane. Finally, I want to thank Greg Bowden, Director of Strategy, Communications and Economic Development, and his team in the Lord Mayor’s Office for their guidance and commitment to Brisbane’s prosperity. Ian Klug Chairman

2015–16

CEO’S REVIEW The past 12 months have been a period of transformation for Brisbane’s economy as the energy and resources sector shifts from a period of capacity building to a production phase. As a result, the city’s economic development strategy has evolved to amplify a more diverse economy reliant on eight priority growth sectors as outlined in the Brisbane 2022 New World City Action Plan. In 2015-16, Brisbane Marketing’s performance against its budgeted Economic Impact KPI delivered an annual result of $1.175 billion, $50 million above the year’s budget ($1.125 billion) and $14 million above the prior year’s actuals. The achievement of this favourable result was assisted by Investment Attraction delivering an economic impact result of $731 million and the creation of over 330 new jobs despite a slowing of some key industry sectors and levels of investment. Brisbane’s visitor economy continued to thrive in 2015-16 driven by the $AUD, increased hotel rooms as a direct result of the city’s hotel investment strategy, increased direct aviation routes from our key source markets, increased interest from our key domestic and international target markets and supported by our activities in leisure tourism and major events. In 2015,

Brisbane reached an important milestone hosting more than one million international visitors for the first time and recorded unprecedented visitor spend. This sector was further buoyed by record Christmas event attendance of over 650,000 and the city’s hosting of the inaugural World Science Festival Brisbane – the first time outside of New York City. Our Brisbane 2022 commitment to host one major event each month is well underway, with some very exciting event opportunities to come. 2015-16 presented a challenge in the international education sector where, despite results reflecting a 4% growth, the ongoing loss of market share to our southern states remains an area of concern and focus. We know that Brisbane’s unique lifestyle and excellent universities and education providers are a drawcard to attract the best talent from around the world, and investing in Study Brisbane initiatives such as the Brisbane International Student Ambassador program and Welcome events will continue to drive interest in the city from our key

source markets. The Lord Mayor’s incentive for student accommodation has delivered significant investment in this sector with more than 1380 beds delivered to date and a further 5500 in the pipeline. Increased international marketing and outreach efforts to attract international students from several key source markets is well underway.

As Brisbane’s economic development

In 2015-16, Brisbane Marketing undertook a number of structural changes to align the organisation to deliver the Brisbane 2022 New World City Action Plan. We welcomed a new Chief Operating Officer to assist in the leadership and delivery of the city’s economic development plan. We implemented two important business areas – Talent and Skills and Precinct Development – to address key recommendations of the Brisbane 2022 New World City Action Plan. The variation in headcount can be attributed to these changes.

dedicated Brisbane Marketing team, whom

The 2015-16 year built upon Brisbane’s international profile that was generated in 2014-15 with the one-off investment in the staging and execution of the G20. This significant investment is evident in the spike in annual revenue and expenditure for that year. In 2015, the city maintained the post-event momentum by maximising opportunities in investment, tourism and business and major events. The city is already seeing the results of this investment as outlined in this report.

I also want to thank all our members and

organisation, we remain proud of our ongoing achievements across the 2015-16 period and are well positioned to deliver upon the New World City vision of our Lord Mayor Graham Quirk and his council in growing our economic future in the years to come. None of this would be possible without the I wish to congratulate on another successful year. I also wish to extend my sincere thanks to the Lord Mayor Graham Quirk and his team, Finance and Economic Development Chair Cr Krista Adams (and her predecessor Cr Julian Simmonds), and Brisbane City Council CEO Colin Jensen. Thanks also to our highly engaged Brisbane Marketing Board and I recognise the leadership and service of our Chairman Ian Klug.

industry partners for their ongoing support and passion for Brisbane. It continues to be a privilege to serve Brisbane in this role and may I commend this 2015-16 annual report and results for your review. John Aitken Chief Executive Officer

BRISBANE HIGHLIGHTS OF 2015-16 Brisbane 2022 New World City Action Plan Adopted and implemented by the Lord Mayor in 2015, the Brisbane 2022 New World City Action Plan identifies seven key economic priorities and outlines more than 100 recommendations to guide Brisbane’s economic development strategy through to the year 2022. Following this plan, Brisbane will continue growing into a globally significant, regionally connected and vibrant metropolis. During the past year, Brisbane Marketing has achieved several goals identified in the Brisbane 2022 New World City Action Plan, making significant strides towards the vision of a better Brisbane for current residents and for future generations to come.

Innovation Hub – The Capital The Lord Mayor announced a $5 million innovation hub called The Capital to support the city’s growing startup sector. The Capital will immerse startups into the city’s corporate business precinct, with a view to creating a co-working space that will continue to grow over time. Nurturing Brisbane’s startup ecosystem and creating a dynamic innovation hub was one of the seven key economic priorities outlined in the Brisbane 2022 New World City Action Plan.

Investment Attraction The Investment Attraction team continues to pursue its strategy to attract international capital to Brisbane across key industry sectors. Over 83% of the investment during the year came from international sources. The team assisted in facilitating and attracting investment that generated $327 million in capital investment and created more than 330 new jobs. Overall, the Investment Attraction team was responsible for generating $731 million in economic impact for the city. Brisbane was awarded winner of the best foreign direct investment strategy in the 2015-16 Asia Pacific Cities of the Future rankings by fDi Intelligence, a division of the Financial Times.

Digital Brisbane The Brisbane 2022 New World City Action Plan recommends supporting and nurturing the city’s startup businesses and small and medium enterprises to reach their full potential. During 2015-16, Digital Brisbane hosted events and workshops attended by over 500 small and medium enterprises and reached more than 40,000 people online. Additionally, the Lord Mayor’s Budding Entrepreneurs Program awarded grants totalling $100,000 to 20 successful entrepreneurs. The Visiting Entrepreneur Program hosted six high-profile entrepreneurs from around the world to conduct public lectures and hold roundtable discussions with local private and public stakeholders. The popular Coder Dojo kids coding program was doubled to include 1,300 pariticpants in eight locations.

MA RK E T I NG The Visitor Economy

Major Events

Brisbane experienced a record number of tourists in 2015, surpassing one million international visitors for the first time and pumping nearly $2 billion into the local economy. Brisbane Marketing, as the regional tourism organisation for the Greater Brisbane region, capitalised on this momentum by continuing to roll out the successful Give me Brisbane Any Day tourism campaign.

Brisbane annually plays host to a number of international and domestic events and festivals, and this past year was no exception.

New Air Routes The Brisbane 2022 New World City Action Plan recommends creating new direct flight paths between Brisbane and key source markets as well as increasing the number of established direct flight routes. Accordingly, three new direct flight routes, Brisbane to Vancouver via Air Canada, Brisbane to Tokyo via Qantas, and Brisbane to Christchurch via Qantas, have launched in the past year. Singapore Airlines increased to four its number of weekly direct flights between Brisbane and Singapore, and EVA Air announced it will double its weekly direct flights between Brisbane and Taiwan starting October 2016. It was also announced that China Eastern Airlines will commence a direct regular route between Brisbane and Shanghai in December 2016.

Of particular note was the inaugural World Science Festival Brisbane, making Brisbane the first city to host a World Science Festival outside of New York City since the festival’s inception. Thousands of locals and visitors attended the festival in South Bank’s Cultural Precinct. In 2015 Brisbane once again held the Wonder of Christmas event, attracting over 350,000 visitors to the CBD and 300,000 visitors to South Bank over the Christmas period. These visitors spent more than $3.4 million per day in the CBD during this period.

Study Brisbane This past year, 40 individuals from 29 countries were selected as student ambassadors for the Brisbane International Student Ambassador program. The 40 students were selected from a record number of applicants and nearly doubles the number of ambassadors from previous years. These ambassadors represent some of Brisbane’s largest source markets including China, India and Japan. Brisbane’s reputation as a warm and welcoming destination for international students is reinforced by the staging of the Welcome and Friendship ceremonies throughout the year.

Brisbane Marketing Pty Ltd

Economic Value to Brisbane for 2015-16 Financial Year $1125m

1200

1100

$1175m 4 112

75 43

1000

103

113

900

800

700

600

500

400

727

731

300

200

100

$34m Brisbane Marketing Total Operating Costs

Investment & Industry Development Investment Attraction

Budgeted Economic Benefit to the City

Visitation Economy & Precinct Development

Actual Economic Benefit to the City

Destination Marketing & Cultural Initiatives

Convention Bureau (Incl. Asia)

BANWC Strategy*

Study Brisbane (Incl. Asia)

Asia Pacific Screen Awards/ Brisbane Asia Pacific Film Festival

Leisure Tourism (Incl. Asia) Major Events CBD (Xmas)

* Includes Social Media Valuation assumptions 1) The Channel impact (Ci) figure on consumer purchasing, developed for the USA market, is considered reasonable to apply to the Australian market. 2) The ‘Average Trip Expenditure per Visitor’ is published on a quarterly basis by Tourism Research Australia, and applied in the monthly valuation as the variable which estimates the total average amount spent by consumers during a visit to Brisbane.

Brisbane Marketing Pty Ltd

Year-on-Year Comparison $1175m

$1161m

1200

4 112

1100

G20 – 195 48 1000

113

900

800

104 57 49

700

95 600

51 500

400

731 300

532 200

100

$36m

$34m

2014-15

2015-16

Brisbane Marketing Total Operating Costs

Actual Economic Benefit to the City

Brisbane Marketing Total Operating Costs

Actual Economic Benefit to the City

Investment & Industry Development Investment Attraction

Visitation Economy & Precinct Development

Destination Marketing & Cultural Initiatives

Convention Bureau (Incl. Asia)

BANWC Strategy*

Study Brisbane (Incl. Asia)

Asia Pacific Screen Awards/ Brisbane Asia Pacific Film Festival

Leisure Tourism (Incl. Asia) Major Events CBD (Xmas)

OUR BOARD Ian Klug (Chairman), Company Director David Askern, Company Secretary and Chief Legal Officer with Brisbane City Council Monica Bradley, Director - Purposeful Capital Malcolm Hall-Brown, Company Director Phillip Di Bella, Founder/ Managing Director Di Bella Coffee Adam Penberthy, Founder and Creative Director - Fresh Elizabeth Savage, Company Director John Shepherd, Managing Partner Gallus Partnerships Pty Limited

CORPORATE GOVERNANCE Audit and Risk Management Committee The Audit and Risk Management Committee supports and advises the Board on the Company’s financial reporting, risk management function, control environment and legal and regulatory compliance. It has a clear operating charter which is reviewed every two years, and, if appropriate, updated by the Board on recommendation from the Audit and Risk Management Committee. By carrying out these functions, the Committee maintains unobstructed lines of communication between the Committee, the internal auditors, the external auditors, and Brisbane Marketing management and has the power to seek advice from external parties or specialists where the committee believes it appropriate. Committee members are appointed by the Board. The Audit and Risk Management Committee consists of at least three Directors, the majority of whom are independent. The Committee meets no less than four times over a reporting period. The Audit and Risk Management Committee comprises: • Malcolm Hall-Brown (Chair) • John Shepherd • Ian Klug (Ex-officio member)

Committee meetings are also attended by internal (Assurance Services) and external auditors, the Chief Executive Officer, the Chief Operating Officer (appointed December 2015), Chief Financial Officer and others, at the discretion of the Committee. Assurance Services reviews completed during the 2015-16 financial year were as follows: • Records management • Business continuity planning health check • Review of sponsorship arrangements, including cash sponsorship arrangements and notional supply arrangements The structure and adequacy of Brisbane Marketing’s insurances are evaluated every year. The business risk register is reviewed at least annually by the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, and presented to the Audit and Risk Management Committee for review and approval.

Human Resource and Remuneration Committee The Human Resource and Remuneration Committee supports and advises the Board in relation to Brisbane Marketing’s human resource and remuneration policies and practices. The Board determines membership of the Committee. The Human Resource and Remuneration Committee consists of three Directors, the majority of whom are independent. The Committee has a Charter to govern its operation. The Charter is reviewed every two years, and, if appropriate, updated by the Board on recommendation from the Committee. The Committee meets no less than three times over a reporting period. The members of the Human Resource and Remuneration Committee are: • Elizabeth Savage (Chair) • Adam Penberthy • Ian Klug (Ex-officio member) Committee meetings are also attended by the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Head of People, Performance & Culture and others, at the discretion of the Committee. The Committee has the right to seek advice from external parties or specialists.

ANNUAL FINANCIAL S TAT E M E N T S 15 Directors’ Report 17 Auditor’s Independence Declaration 18 Financial Report 18 Statement of Comprehensive Income 19 Statement of Financial Position 20 Statement of Changes in Equity 20 Statement of Cash Flows 21 Notes to and forming Part of the Financial Statements 30 Directors’ Declaration 31 Independent Auditor’s Report

BRISBANE MARKETING PTY LTD

DIRECTORS’ REPORT The directors present their report together with the financial report of Brisbane Marketing Pty Ltd for the financial year ended 30 June 2016 and the auditor’s report thereon.

Directors The names of directors in office at any time during or since the end of the financial year were: Ian Klug Monica Bradley Malcolm Hall-Brown Phillip Di Bella Adam Penberthy Elizabeth Savage John Shepherd

Principal Activities The Company’s primary operations and responsibility is to drive long-term social and economic benefits to Brisbane and the Greater Brisbane region.

Operating Activities The surplus from ordinary activities of the company for the financial year ended 30 June 2016 was $1,178,639, and the financial year ended 30 June 2015 was a deficit of $1,187,695.

Review of Operations The majority of revenue received by the Company was by way of grants from the Brisbane City Council. The majority of expenses incurred were in relation to labour costs, city marketing and promotion costs.

Future Developments The Company expects to continue to create economic and social value for the residents and businesses of Brisbane through its various business activities. Its direction will continue to be guided by the Brisbane Economic Development Plan 2012 - 2032 and the Brisbane 2022 New World City Action Plan.

Directors’ Benefits Related party transactions are disclosed in note 10 of the financial statements.

Company Details The Company is an Australian proprietary company limited by shares, incorporated and registered in Brisbane, Queensland. The Brisbane City Council is the sole shareholder. The registered address is: Level 23, Brisbane Square 266 George Street Brisbane QLD 4000 Australia The principal place of business is: Level 8, Roy Harvey House 157 Ann Street Brisbane QLD 4000 Australia

BRISBANE MARKETING PTY LTD

DIRECTORS’ MEETINGS During the year, the number of directors’ meetings and number of meetings attended by each of the directors of the company were: Names

Number eligible to attend

Number attended

Ian Klug

Monica Bradley

Malcolm Hall-Brown

Phillip Di Bella

Adam Penberthy

Elizabeth Savage

John Shepherd

Key Announcements During The Financial Year In March 2016 the Company executed a five-year lease on 155 Queen St, centrally located in the heart of the Queen Street Mall. The 2108sqm building will house “The Capital”, a Lord Mayoral, Brisbane 2022 New World City Action Plan initiative that will see two independent operators provide co-working space to entrepreneurs and startups. The Capital will also operate as a community space to initiate and foster collaboration across the startup ecosystem and business community.

Post-Balance Sheet Events There have been no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect either: (i) The entity’s operations in future financial years (ii) The results of those operations in future financial years; or (iii) The entity’s state of affairs in future financial years

Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under s.307C of the Corporations Act 2001 is set out on page 17. Signed in accordance with a resolution of the directors.

..………….......................... ..…………..........................

Ian Klug Malcolm Hall-Brown Chairman Director 28/9/2016 28/9/2016

BRISBANE MARKETING PTY LTD

AUDITOR’S INDEPENDENCE DECLARATION To the Directors of Brisbane Marketing Pty Ltd This auditor’s independence declaration has been provided pursuant to s.307C of the

Corporations Act 2001.

Independence Declaration As lead auditor for the audit of Brisbane Marketing Pty Ltd for the financial year ended 30 June 2016, I declare that, to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit b) no contraventions of any applicable code of professional conduct in relation to the audit.

..…………..........................…...…...…...…...

J MACGREGOR CPA as delegate of the Auditor-General of Queensland

Queensland Audit Office

Brisbane

BRISBANE MARKETING PTY LTD

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Note

2016 $

2015 $

REVENUE

Ticket sales through Visitor Information Centre Advertising, sponsorship and membership income Grants, subsidies and sponsorships Brisbane City Council

10c

Grants, subsidies and sponsorships - Other

1,714,264

1,953,322

3,905,969

5, 241 , 1 79

25,956,438

24,358,736

2,165,386

1,944,304

Interest income

176,684

148,232

Other income

828,805

980,239

34,747,546

34,626,012

1 3,710,276

13,506,830

Total Revenues

EXPENSES

Employee expenses

Materials and services

6,341,326

6,046,400

City marketing and promotion

9,227,225

10,901,130

4,076,527

5 ,1 3 9 ,1 1 7

72,523

153,229

26,400

1 9,200

1 8,772

3,992

95,858

43,809

33,568,907

35,813,707

1,178,639

(1,187,695)

Business development expenses

Depreciation and amortisation Auditing fees - Queensland Audit Office (audit of accounts) Auditing fees - Brisbane City Council (internal audit) Other Expenditure Total Expenses Net Surplus/(Deficit)

10c

The above Statement of Comprehensive Income should be read in conjunction with the notes to and forming part of the financial statements set out on the attached pages.

BRISBANE MARKETING PTY LTD

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Note

2016 $

2015 $

CURRENT ASSETS Cash and cash equivalents

Trade and other receivables Inventories Prepayments Total Current Assets

6,129,318

3,150,621

272,154

1,513,079

7,1 6 6

512,164

380,559

6,913,636

5,051,425

97,479

1 89,998

36,802

97,479

226,800

7,01 1 ,1 1 5

5,278,225

3,539,696

2,581,561

1 50,776

137,605

NON CURRENT ASSETS Plant and equipment Intangible assets Total Non Current Assets Total Assets CURRENT LIABILITIES Trade and other payables

Provisions for employee benefits Deferred income

624,213

1 ,1 02,958

4,314,685

3,822,124

Provisions for employee benefits

329,561

267,871

Total Non Current Liabilities

329,561

267,871

Total Liabilities

4,644,246

4,089,995

Net Assets

2,366,869

1,188,230

2,366,868

1,188,229

2,366,869

1,188,230

Total Current Liabilities NON CURRENT LIABILITIES

SHAREHOLDERâ&#x20AC;&#x2122;S EQUITY Contributed equity Retained earnings Total Shareholder's Equity

The above Statement of Financial Position should be read in conjunction with the notes to and forming part of the financial statements set out on the attached pages.

BRISBANE MARKETING PTY LTD

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 2016

Note

Contributed Equity $

Retained Profits $

Total $

Balance at beginning of year

1,188, 2 2 9

1,188,230

Net Surplus

1,178,639

2,366,868

2,366,869

Note

Contributed Equity $

Balance at Year End

2015

Balance at beginning of year Net Deficit Balance at Year End

Retained Profits $

Total $

2,375,924

2,375,925

(1,187, 695 )

(1,187,695)

1,188,229

1,188,230

The above Statement of Changes in Equity should be read in conjunction with the notes to and forming part of the financial statements set out on the attached pages.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 Note

2016 $

2015 $

CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers Proceeds from subsidies and grants Interest received

7,072,660

7,783,298

30,934,006

28,933,344

176,684

Payments to suppliers and employees

148,232

(33,372,767)

(36,790,930)

(1,831,886)

(1,478,199)

2,978,697

(1,404,255)

Acquisitions of plant and equipment

(34,042)

Net Cash Flows used in investing activities

(34,042)

NET INCREASE/(DECREASE) IN CASH HELD

2,978,697

(1,438,297)

Cash at the beginning of the year

3,150,621

4,588,918

6,129,318

3 ,1 5 0, 6 2 1

GST paid to the Australian Taxation Office Net Cash Flows generated/(used) in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Cash at the end of the year

The above Statement of Cash Flows should be read in conjunction with the notes to and forming part of the financial statements set out on the attached pages.

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 1. Basis of Preparation The financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Australian Accounting Standards Board and Interpretations (AASBs) and the Corporations Act 2001. The financial statements were authorised for issue by the directors on 28 September 2016. The financial report is prepared on an accruals basis. Except where stated, the historical cost convention is used. The accounting policies have been consistently applied, unless otherwise stated. The company is a not-for-profit entity. Amounts included in the financial statements and directorsâ&#x20AC;&#x2122; report have been rounded off to the nearest dollar. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

2. Statement of Significant Accounting Policies The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. (a) Income Tax The company is a state body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax and Goods and Services Tax. Fringe Benefits Tax and Goods and Services Tax are the only taxes accounted for by the Company. (b) Goods and Services Tax Revenues, expenses, intangibles, plant and equipment are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part 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. (c) Revenue Grants and subsidies that are non-reciprocal in nature are recognised as revenue in the year in which the Company obtains control over them (control is generally obtained at the time of receipt). Where grants and subsidies are received that are reciprocal in nature, revenue is progressively recognised as it is earned, according to terms of the funding agreements. (d) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 (e) Employee Benefits Employee benefits relate to amounts expected to be paid to or on behalf of employees for wages earned, bonuses, annual leave, long service leave, workers’ compensation and superannuation. Accrued annual leave represents the amount which the Company has a present obligation to pay, resulting from employees’ services provided up to balance date. The accrual has been calculated based on remuneration rates expected to be paid when the liability is settled and includes related on-costs. The provision for long service leave represents the present value of the estimated future cash outflows to be made by the Company resulting from employees’ services provided up to balance date. The value of the liability is calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. The estimates are adjusted for the probability of the employees remaining in the Company’s employment or other associated employment which would result in the Company being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value. Contributions are made by the Company to an employee superannuation fund and are charged as an expense when incurred. (f) Trade and Other Receivables Receivables are due for settlement in 30 days and are carried at amounts due. The collectability is assessed at period end and an allowance is made for impairment if required. As at 30 June 2016 and 2015, there were no impaired trade & other receivables. (g) Trade and Other Payables Creditors and accruals represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid. These amounts are unsecured and are usually paid within 30 days from statement. (h) Financial Instruments Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Company becomes party to the contractual provisions of the financial instrument. Classification Financial instruments are classified and measured as follows: -Receivables - held at amortised cost -Payables - held at amortised cost (i) Accounting Estimates and Judgements The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Estimates and assumptions that have potential significant effects are outlined in the following financial statements notes: Depreciation and Amortisation Provision for Employee Benefits (j) New and Revised Accounting Standards At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with future commencement dates are as set out below.

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 AASB 15 Revenue from Contracts with Customers will become effective from reporting periods beginning on or after 1 January 2018. This standard contains much more detailed requirements for the accounting for certain types of revenue from customers. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from sales of the Company’s goods and services, such that some revenue may need to be deferred to a later reporting period to the extent that the Company has received cash but has not met its associated obligations (such amounts would be reported as a liability (unearned revenue) in the meantime). The Company is yet to complete its analysis of current arrangements for sale of its goods and services, but at this stage does not expect a significant impact on its present accounting practices. AASB 9 Financial Instruments and AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) will become effective from reporting periods beginning on or after 1 January 2018. The main impacts of these standards on the Company are that they will change the requirements for the classification, measurement, impairment and disclosures associated with the Company’s financial assets. AASB 9 will introduce different criteria for whether financial assets can be measured at amortised cost or fair value. Currently the Company discloses related parties and transaction of directors (note 10). From 1 July 2016 AASB 124 Related Party Disclosures will apply to the Company’s directors and key management, which means the Company will disclose more information about related parties and transactions with those related parties.

2016 $

2015 $

3. Employee Expenses Salaries & Wages

10,280,006

9,834,690

Temporary Staff

487,628

680,775

Superannuation

1,122,567

9 9 1 ,1 73

787,183

1,074,655

13,581

8,423

Annual Leave and Long Service Leave Workers Compensation Fringe Benefits Tax

123,050

122,899

Payroll Tax

599,887

490,660

Other Employee Expenses

296,374

303,555

13,710,276

13,506,830

123

118

Market Research

228,832

577,832

Event Activation

2,341,398

2,725,429

Event Contractors

801,638

1,005,630

Event Performers

671,91 7

813,376

32,743

16,850

4,076,527

5,139,117

Number of full-time equivalent employees at 30 June (including casual employees)

4. Business Development Expenses

Other Event Costs

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

2016 $

2015 $

5. Cash and Cash Equivalents Cash on Hand

4,189

3,300

1,893,334

1,079,087

Cash at Bank Cheque Account Cheque Account - USD

1 2 1,954

3,572,366

1,553,720

Visitor Information Centre Trust Account

2 2 3,165

1 73,701

CBA - Australia TradeCoast

3 1 4 ,310

340,813

6,129,318

3,150,621

QTC - Capital Guaranteed Fund

Excess funds are invested in the Queensland Treasury Corporation (QTC) Capital Guaranteed Cash Fund Account. Based on financial instruments held at 30 June 2016, a 1% increase or decrease in market interest rates would have an impact of $61,293 (2015: $31,506) on the Companyâ&#x20AC;&#x2122;s Statement of Comprehensive Income.

6. Trade and Other Payables Trade Creditors

2,498,034

1 , 345,958

Other Creditors

443,502

608,370

Employee Benefits

598,160

627,233

3,539,696

2,581,561

Trade and other payables are not interest bearing with maturity dates of less than one (1) year.

7. Deferred Income Services proportionately rendered

255,544

584,009

Membership subscriptions in advance

176,734

32 2 ,02 1

Event deposits received

191,935

196,928

624,213

1,102,958

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

2016 $

2015 $

Retained Earnings

The Companyâ&#x20AC;&#x2122;s retained earnings are subject to a number of restrictions from third parties which limit amounts available for distribution and/or execution to specific activities for which they were received.

Restricted Retained Earnings (i) Retained Earnings - Convention Bids These funds are held in restrictive retained earnings for incentives offered to conferences in future financial years. The decisions on whether the conferences will be held in Brisbane are still pending a final approval and do not constitute a liability as at 30 June. Balance at the beginning of year

274,425

310,774

Current period expenditure

(89,506)

(165,849)

Current period revenues

254,238

129,500

Balance at end of year

439,157

274,425

(ii) Retained Earnings - Brisbane Convention & Visitors Bureau ontributions from Brisbane Convention & Visitors Bureau Limited. These funds are to be held in C restricted retained earnings, reserved for future operational activities within the convention attraction industry. Balance at the beginning of year Current period expenditure Current period revenues Balance at end of year

56,537

(iii) Retained Earnings - Australia TradeCoast Limited he Company was assigned the responsibilities for strategic projects within the Australia TradeCoast T precinct. These funds are held in restricted retained earnings, reserved for future promotional and development activities within the Australia TradeCoast precinct. Balance at the beginning of year

338,980

362,329

Current period expenditure

(42,500)

(31,146)

Current period revenues Balance at end of year

3,665

7,797

300,145

338,980

(iv) Retained Earnings - Asia Pacific Screen Awards Film Fund hese are funds held in restricted retained earnings for Motion Picture Association film grant T recipients. Recipient entitlements relating to these grant funds were not firm at 30 June, and therefore no liability existed at year-end. Balance at the beginning of year

138,127

142,500

Current period expenditure

(10,198)

(4,373)

Current period revenues Balance at end of year

127,929

138,127

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

2016 $

2015 $

(v) Retained Earnings - Queen Street Mall Levy These funds have been received from the Queen Street Mall Levy and are reserved for promotional and activation activities within the Queen Street Mall precinct. Balance at the beginning of year Current period expenditure Current period revenues Balance at end of year

1 5 2 ,1 41

(4,024,450)

(3,321,528)

4,439,450

3,169,387

415,000

(vi) Retained Earnings - Lord Mayorâ&#x20AC;&#x2122;s Budding Entrepreneurs Program These are funds held in restricted retained earnings for the Lord Mayorâ&#x20AC;&#x2122;s Budding Entrepreneurs Program grant recipients. Recipient entitlements relating to these grant funds were not firm at 30 June, and therefore no liability existed at year-end. Balance at the beginning of year

11,588

Current period expenditure

(36,588)

(13,412)

Current period revenues

25,000

11,588

Total Restricted Retained Earnings

1,338,768

819,657

Unrestricted Retained Earnings

1,028,100

368,572

Total Retained Earnings

2,366,868

1,188,229

1,178,639

(1,187,695)

Balance at end of year

9. Cash Flow Information Reconciliation of surplus/(deficit) to the net cash flows used in operating activities Net Surplus/(Deficit) Non-cash flows in surplus/(deficit) from ordinary activities Depreciation & amortisation

72,523

153,229

Write-off of assets

56,798

131

Changes in assets and liabilities (Increase)/decrease in Trade and other receivables Inventories Prepayments

1,240,925 7,1 6 6 (131,605)

(845,247) (1,533) (265,627)

Increase/(decrease) in Trade and other payables Deferred income Provisions Net cash flows generated/(used) in operating activities

958,135 (478,745) 74,861 2,978,697

(24,984) 516,851 250,620 (1,404,255)

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 10. Related Party Transactions Directors The names of persons who have held the office of director during the year are: Ian Klug Phillip Di Bella

Monica Bradley Adam Penberthy

Malcolm Hall-Brown Elizabeth Savage

John Shepherd

2016 $

2015 $

(a) Directors’ remuneration Directors’ Fees Superannuation

234,038

2 18, 474

15,437

14,008

249,475

232,482

2,010,569

1,875,426

(b) Key management personnel remuneration Senior Management Team - Employee remuneration for the period ended 30 June 2016, as described in Note 2 (e). Number of Senior Management Positions

Accounting for the 7.2% year-on-year increase in Key management personnel remuneration, it’s noted that the position of General Manager – Events was appointed on 2 March 2015 as a member of the Senior Management Team. As a result, the 2014-15 comparative reflects a four-month allocation of remuneration for the financial year, as compared to 12 months for the 2015-16 financial year. (c) Transactions with the Brisbane City Council and its controlled entities, the ultimate and Australian controlling entity During the year, Brisbane City Council and City Parklands Services Pty Ltd, provided grants and subsidies to Brisbane Marketing Pty Ltd with a total value of $25,956,438 (2015: $24,358,736). In addition, the amounts for goods and/or services supplied by Brisbane City Council and City Parklands Services Pty Ltd, based on normal commercial terms and conditions to the Company were as follows: Advertising

1,842,774

2,324,463

Repayment of Unused Grants

487,858

Lease 157 Ann Street, Brisbane

152,690

170,933

Promotional services

56,190

30,000

Internal audit services

18,772

3,992

Legal services

18,540

25,312

Insurance services

16,624

16,139

Work cover costs

13,042

8,423

Parking

5,530

5,649

Labour hire

2,076

11,436

Contract Staff and Services

317,770

Tickets - City Sights Tours

24,998

2,614,096

2,939,1 1 5

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

(d) Transactions with directors/officers/related parties Directors

Related Party

Transaction

Ian Klug

Brisbane Festival

Sponsorship & tickets

Purchases $

Sales $

150,756

Membership, function & shows Phillip Di Bella

Di Bella Coffee

21,559

Coffee products

137

Membership Griffith University

Function & shows

350 27,330

Sponsorship & promotional activities Monica Bradley

Qld University of Technology

Sponsorship & promotional activities

30,984 140,076

Membership, function & shows John Shepherd

Brisbane Racing Club

Function & shows

19,809 466

Promotional activities

955 318,765

73,657

11. Segment Reporting The Company operates predominantly in one geographical segment and one industry segment as Brisbane’s economic development board.

12. Events Subsequent to Reporting Date There have been no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect either: i) The entity’s operations in future financial years ii) The results of those operations in future financial years; or iii) The entity’s state of affairs in future financial years

13. Contingencies As at 30 June 2016 the Company had no material contingencies.

BRISBANE MARKETING PTY LTD

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 $

2015 $

14. Commitments (a) Lease Rental Commitments The operating lease rentals of property, plant and equipment contracted for as at 30 June 2016 but not provided in the financial statements are payable as follows: Not later than 1 year

2,1 17,276

628,290

Later than 1 year but not later than 5 years

6,737,973

1,463,732

8,855,249

2,092,022

(b) Contractual Commitments in respect of Operating Expenditure Contractual commitments as at 30 June 2016 but not provided for in the financial statements are payable as follows: Not later than 1 year

47,362

Later than 1 year but not later than 5 years

94,723

142,085

189,447

15. Economic Dependency The Companyâ&#x20AC;&#x2122;s activities are dependent upon grant funding from the Brisbane City Council. Funding support has been agreed to by the council for the 2016-2017 financial year. 2016 $

16.

2015 $

Administered Funds

In 2011-12 a separate bank account (CBA - City Bid Fund Joint Account) was set up, and is administered by the Company on behalf of the members of the fund. These funds are not included in the statement of financial position as they are trust moneys. Opening Cash Balance Contributions received Interest earned Conferences supported Closing Cash Balance

2,128,003

2,032,440

507,170

261,660

65,561

60,224

(317,068)

( 226,321)

2,383,666

2,128,003

BRISBANE MARKETING PTY LTD

DIRECTORS’ DECLARATION

In the opinion of the directors of Brisbane Marketing Pty Ltd: 1. T he financial statements and notes, as set out on pages 18 to 29, are in accordance with the Corporations Act 2001, including:

a) g iving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and

b) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001. 2. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. On behalf of the Board

..………….......................... ..…………..........................

Ian Klug Malcolm Hall-Brown Chairman Director 28/09/2016 28/09/2016

BRISBANE MARKETING PTY LTD

INDEPENDENT AUDITOR’S REPORT To the Members of Brisbane Marketing Pty Ltd. Report on the Financial Report I have audited the accompanying financial report of Brisbane Marketing Pty Ltd, which comprises the statement of financial position as at 30 June 2016, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant. In conducting the audit, the independence requirements of the Corporations Act 2001 have been complied with. I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Brisbane Marketing Pty Ltd, would be in the same terms if given to the directors as at the time of this auditor’s report.

Opinion In my opinion, the financial report of Brisbane Marketing Pty Ltd is in accordance with the Corporations Act 2001, including

(i) giving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Other Matters - Electronic Presentation of the Audited Financial Report Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

..………….............….............….....................

J MACGREGOR CPA

(As Delegate of the Auditor-General of Queensland)

Queensland Audit Office

Brisbane

brisbanemarketing.com.au Level 8 Roy Harvey House, 157 Ann Street, BRISBANE CITY QLD 4000 PO Box 12260, George Street BRISBANE CITY QLD Australia 4003 T: +61 7 3006 6200 F: +61 7 3006 6250 E: enquiries@brisbanemarketing.com.au