Directors’ Report

For The Year Ended 31 December 2022

The Directors present their report together with the financial report of Melbourne Symphony Orchestra Pty Limited (the Company) for the year ended 31 December 2022 and the auditor’s report thereon.

Directors

The Directors of the Company during the financial year and until the date of this report are as follows: Name

Shane Buggle 18 August 2021

Andrew Dugdeon AM

Daniel Gorog

Sophie Galaise (Managing Director)

Lorraine Hook

Margaret Jackson AC

David Krasnostein AM

Farrel Meltzer

Gary McPherson

Hyon-Ju Newman

Glenn Sedgwick

Company Secretary

27 February 2019

19 February 2014

21 April 2016

27 February 2019

8 May 2015

12 August 2014

22 November 2022

18 August 2021

14 February 2017

10 April 2018

Mr Oliver Carton Appointed 16 February 2004

Principal Activities

During the financial year, the principal activities of the Melbourne Symphony Orchestra were:

• the performance of symphonic music on stage;

• live-streaming music experiences via digital channels;

• delivery of learning and community outreach activities on-stage and online. There was no significant change in the nature of the activities of the Company during the year.

Review And Results Of Operations

The total comprehensive income for the year ended 31 December 2022 was a surplus of $2,367,279 (2021: $2,488,993). The impact of the change in fair value of financial assets was a loss of $828,093 in 2022, compared to a gain of $447,842 in 2021. The Company received $768,483 in donations of endowment nature in 2022 (2021: $1,178,002), in addition to $2,350,000 donations of special purposes (2021:nil).

The operating result for the year prior to the fair value adjustment of financial assets and donations of endowment nature and special purposes was $76,889 (2021: $863,149).

Through 2022, the Group continued to face operational and financial challenges due to the impact of the Coronavirus variants, Geopolitics, supply chain disruptions, skill shortages and the impact of inflation with Australia’s rising cost of living.

The Melbourne Symphony Orchestra is very grateful that, in 2022, it received a total of $4,000,000 in Arts Sustainability Grants from the Federal Government to support the Company to stabilise its financial position and preserve its artistic capability. In addition, the Victorian State Government provided a $500,000 Special Grant to support the Company with the costs to deliver the Artistic Programs and Community Engagement Programs throughout 2022.

In 2022, the Company transformed its artistic programs with its new Chief Conductor, Jaime Martin, and a strong and vibrant artistic family. The integration of business functions and the implementation of business systems have laid a solid foundation for the future of the MSO.

The Company purchased a vacant land site located in the arts precinct in Southbank and plans to begin construction activities on this land.

The table below presents the operating result for the Melbourne Symphony Orchestra for the year ended 31 December 2022.

The Melbourne Symphony Orchestra Management Operating Statement

Significant Changes In The State Of Affairs

In the opinion of the Directors, there were no significant changes in the state of affairs of the Company that occurred during the year under review.

Environmental Regulation

The Company’s operations are not subject to any significant environmental regulations under either Commonwealth or State legislation. However, the Board believes that the Company has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements, as they apply to the Company.

Dividends

No dividends were paid, declared or recommended during or since the end of the financial year.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS Indemnification

Since the end of the previous financial year, the Company has not indemnified, nor made a relevant agreement for indemnifying against a liability, any person who is or has been an officer or auditor of the Company.

Insurance premiums

During the financial year, the Company has paid premiums in respect of Directors’ and Officers’ liability, legal expenses, and insurance contracts. Since the end of the financial year, the Company has paid or agreed to pay premiums in respect of such insurance contracts for the year ended 31 December 2023. Such insurance contracts insure persons who are or have been Directors or Officers of the Company against certain liabilities (subject to certain exclusions).

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.

Matters Subsequent To The End Of The Financial Year

Unless otherwise stated in this report, no matter or circumstance has arisen since 31 December 2022 that has significantly affected, or may significantly affect:

(a) the Company’s operations in future financial years, or

(b) the results of those operations in future financial years, or

(c) the Company’s state of affairs in future financial years.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under s. 60-40 of the Australian Charities and Not for Profits Commission Act 2012 is set out on page 5.

Signed in accordance with a resolution of the Directors:

David Li AM Chairman

Melbourne 27 April 2023

Sophie Galaise Managing Director

Melbourne 27 April 2023

Tel: +61 3 9288 8000 Fax: +61 3 8650 7777

Auditor’s independence declaration to the directors of Melbourne Symphony Orchestra Pty Limited

In relation to our audit of the financial report of Melbourne Symphony Orchestra Pty Limited for the financial year ended 31 December 2022 , and in accordance with the requirements of Subdivision 60-C of the Australian Charities and Not -for-profits Commission Act 2012 , to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of any applicable code of professional conduct; and b. No non-audit services provided that contravene any applicable code of professional conduct.