2007–2008 Annual Report by Tennis Australia

Key contacts Glossary AIS (Australian Institute of Sport): a pre-eminent elite sports training institution based in Canberra, with world class facilities and support services for elite athlete development.

CoMPS (Coalition of Major Professional Sports): group comprising cricket, rugby union, rugby league, soccer, golf and tennis lobbying government for gaming legislation reform.

AIS Pro Tour Program: twenty four of Tennis Australia’s elite athletes, based in Australia for six months per year and in Europe and Italy for the remaining six months.

Dashboard reporting: the new online dashboard-style financial reporting system that presents information to Board Members in an easy to read format.

AO (Australian Open): one of the world’s four ‘major’ tennis tournaments along with Wimbledon, the French Open and the US Open. ASC (Australian Sports Commission): Australia’s primary national sports administration and advisory agency. Athlete Development Matrix: a matrix of empirically and scientifically relevant data that outlines, via six different developmental phases, when particular tennis competencies may be best-developed. ATP (Association of Tennis Professionals): the governing body of the men’s professional tennis circuit. australianopen.com: the Australian Open’s official website. Australian Open Series: Tennis Australia’s summer circuit of events that take place around Australia in the lead-up to the Australian Open. Australian Tennis Hall of Fame: institution established in 1993 that conducts a ceremony during the Australian Open in recognition of one legendary member of the Australian tennis fraternity each year. Australian Wheelchair Tennis Championships: Grand Slam event for the world’s top 16 wheelchair tennis players, incorporated into the Australian Open for the first time in 2007. Aviva Ballkids: the Australian Open’s squad of ballkids. Aviva Tennis Hot Shots: major participation program for five to 12-year-olds re-launched in January 2008. Business units: collective name for TA’s former departments and divisions following the organisational restructure. Closed loop recycling: system of recycling where the journey of waste material can be tracked from its origin (when discarded by a consumer), through the recycling progress and back to the manufacturer as recycled material ready for re-use.

Davis Cup: annual ITF men’s team tennis event. Disciplinary policy: Tennis Australia policy relating to off-court misconduct not covered by the Member Protection By-law, for example, theft and fraud. Extreme Heat Policy: Tennis Australia’s scientifically-based policy outlining the point at which tennis matches should be suspended due to extreme weather conditions was redeveloped. Fed Cup: annual ITF women’s team tennis event. Futures tournaments: week-long ITF tournaments for male players (staged globally) which make up part of the Pro Circuit in Australia, offering between USD$10,000 and USD$15,000 prize money. Grand Slam: refers to winning the four Grand Slam titles in a calendar year. Grand Slam of Asia/Pacific: the Australian Open. Hawk-Eye: system of video line-calling implemented at Rod Laver Arena from Australian Open 2007 and included at Vodafone Arena for the first time in 2008. Hisense Arena: formerly Vodafone Arena, naming rights changed on 1 July 2008. HRIS (Human Resources Information System): integrated Human Resources management system incorporating budgeting, remuneration management, labour forecasting, recruitment, personal development, employee and contractor induction. Independent Directors: members of the Tennis Australia Board who are not linked to a state/territory Member Association and who have not served on a Member Association for the previous three years. ITF (International Tennis Federation): international governing body of tennis with specific responsibility for organising the four Grand Slams, Futures tournaments, Davis and Fed Cups, veterans and junior events. Kids Tennis Foundation: Australian charity providing tennis coaching for financially and socially disadvantaged children. KPIs: staff set three to five key performance indictors for the next financial year.

Lawn Tennis Association of Australia: see Tennis Australia. MAs (Member Associations): Tennis’ state/territory governing bodies, responsible for implementing Tennis Australia initiatives. MDGP (Microsoft Dynamics Great Plains): finance system adopted by Tennis Australia from 1 July 2006 and implemented across all Member Associations in 2007–2008. Melbourne Park: home of Tennis Australia and venue of the Australian Open. Member Delegates: representatives of Tennis Australia’s eight state/territory governing bodies, responsible for implementing Tennis Australia initiatives. Members: see MAs. Meridian: Tennis Australia’s payroll system that has been implemented at Member Association level. NAs (National Academies): five structured training environments in Sydney, Perth, Brisbane, Adelaide and Melbourne for aspiring players who achieve measurable performance criteria. National Coach Education program: Tennis Australia’s national program of coaching courses. National Coach Membership program: Tennis Australia’s national coach registration system. National Court Rebate Scheme: Tennis Australia funding for clubs that construct, or upgrade their courts to one of the four Grand Slam surfaces. Optus Team Tennis Australia: Optus’ umbrella sponsorship of Australian representative teams. Player development pathway: a pathway that now has clear entry and exit points and the philosophy overturned to a coach-driven, athlete-centred program. Plexicushion: new national court surface and playing surface for the Australian Open, a cushioned acrylic surface. Pro Circuit: events that provide aspiring tennis professionals with a stepping stone onto the professional men’s (ATP) and women’s (WTA) tours. Roland Garros (French Open): the second Grand Slam of the year, held at Stade Roland Garros in Paris. Strategic Priorities: Tennis Australia’s five key strategic areas that drive the attainment of individual business units’ strategic objectives.

T-10 (Tennis 2010): The Tennis business unit’s old blueprint of strategic priorities and key performance indicators. T-12 (Tennis 2012): The Tennis business unit’s new revised blueprint of strategic priorities and key performance indicators for the next four years. TA (Tennis Australia): Trading name of the Lawn Tennis Association of Australia; tennis’ national governing body. Talent Search program: on-court tennis days designed to identify children with the desire and skill to excel in sport. TANTU (Tennis Australia’s Network and Telecommunications Upgrade): this project brought all the Member Associations on the same network as Tennis Australia. tennis.com.au: Tennis Australia’s official website. Tennis workout: fun, sociable, tennis-based workout program staged at Melbourne Park and Albert Reserve. TennisWorld: Tennis Australia’s e-newsletter (formerly Oz-e-tennis). The World’s Biggest Stage: theme for Australian Open 2009. US Open: the fourth and final Grand Slam of the year held at Flushing Meadows in New York. Video line-calling: a system that shows the last ball mark and used to rectify challenged line calls. Vodafone Arena: naming rights changed to Hisense Arena on 1 July 2008. Where the World Comes to Play: theme for Australian Open 2008. Who’s That Aussie?: Tennis Australia’s official media guide, profiling Australia’s top professional, junior and wheelchair players. Wildcard: free pass into the main draw or qualifying draw of a tournament, allowing the recipient to bypass ranking-based entry requirements. Wimbledon: the third Grand Slam of the year, held at the All England Club in London. Wonderful World of Tennis: part of the Tennis brand creating a bridge between the Tennis and Australian Open brands. WTA (Women’s Tennis Association): governing body of the women’s professional tennis circuit.

Sweeney Sports Report: a survey that conducts a multi-faceted measure of the Australian public’s interest in sport.

Glossary

Inside back cover

Tennis ACT Bruce Lilburn, President Gerard Corradini, CEO A: PO Box 44 Dickson ACT 2602 National Sports Club 1 Riggell Place Lyneham ACT 2602 P: +61 2 6247 8804 F: +61 2 6247 2029 E: tennis@tennisact.com.au W: www.tennisact.com.au Tennis NT Warren Martin, President Dianne MacDonald, General Manager A: Unit 1, 90 Ross Smith Avenue Fannie Bay NT 0820 P: +61 8 8981 5609 F: +61 8 8981 5616 E: tennis@tennisnt.com.au W: www.tennisnt.com.au Tennis Queensland Ashley Cooper, President Tom Larner, CEO A: PO Box 2366 Graceville Qld 4075 Unit 8, 148 Tennyson Memorial Drive Yeerongpilly Qld 4105 P: +61 7 3426 4888 F: +61 7 3392 8455 E: info@tennisqueensland.com.au W: www.tennisqueensland.com.au Tennis SA Bill Cossey, President Alistair MacDonald, CEO A: PO Box 43 North Adelaide SA 5006 Memorial Drive Complex War Memorial Drive North Adelaide SA 5006 P: +61 8 8212 6777 F: +61 8 8212 6518 E: info@tennissa.com.au W: www.tennissa.com.au

Tennis Tasmania Peter Armstrong, President Michael Roberts, General Manager A: PO Box 260 Newstead Tas. 7250 Level 1, 23 Racecourse Cres. Launceston Tas. 7250 P: +61 3 6108 8200 F: +61 3 6334 4564 E: info@tennistasmania.com.au W: www.tennistasmania.com.au Tennis Victoria David Stobart, President Ian Clark, CEO A: Locked Bag 6001 Richmond Vic. 3121 Olympic Park Administration Building, Level 1 Olympic Boulevard Melbourne Vic. 3001 P: +61 3 8420 8420 F: +61 3 9427 9698 E: tvreception@tennisvic.com.au W: www.tennisvic.com.au Tennis West Andrea Mitchell, President Andrew Stanbury, CEO A: PO Box 116 Burswood WA 6100 State Tennis Centre Victoria Park Drive Burswood WA 6100 P: +61 8 6462 8300 F: +61 8 9361 1500 E: info@tenniswest.com.au W: www.tenniswest.com.au International tennis governing bodies International Tennis Federation Francesco Ricci Bitti, President A: Bank Lane Roehampton London SW15 5XZ UK P: +44 208 878 6464 F: +44 208 878 7799 W: www.itftennis.com ATP Brad Drewett, CEO International Group A: PO Box N662 Sydney NSW 1220 Suite 203, Level 2, 234 George Street Sydney NSW 2000 P: +61 2 9250 2300 F: +61 2 9250 2333 W: www.atptennis.com

Sony Ericsson WTA Tour Larry Scott, CEO A: One Progress Plaza Suite 1500 St Petersburg Fl 33701 USA P: +1 727 895 5000 F: +1 724 894 1982 W: www.sonyericssonwtatour.com French Open Christian Bimes, President Federation Francais De Tennis A: Stade Roland Garros 2 Avenue Gordon Bennett 75016 Paris FRANCE P: +33 1 4743 4800 F: +33 1 4743 0494 W: www.rolandgarros.org

Other key contacts Tennis Umpires Australia Craig Glennon, Secretary A: 3 Shepard Court Novar Gardens SA 5040 P: +61 8 8376 6315 F: +61 8 8376 6315 E: operations@tennisofficials.org.au W: www.tennisofficials.org.au Australian Institute of Sport Brent Larkham, Head Coach AIS Pro Tour Program A: Private Bag 6060 Richmond Vic. 3121 P: +61 3 9914 4000 F: +61 3 9650 2743 W: www.ais.org.au/tennis

Wimbledon Tim Phillips, Chairman Ian Ritchie, Chief Executive A: All England Lawn Tennis Club Church Road Wimbledon London SW19 5AE P: +44 208 944 1066 F: +44 208 947 8752 W: www.wimbledon.org

Kids Tennis Foundation Susie Norton, CEO Paul McNamee, AM, Chairman Eric Campbell, President A: Suite 206, 620 St Kilda Road Melbourne Vic. 3004 P: +61 3 9510 9165 F: +61 3 9510 9166 E: snorton@kidstennisfoundation.com W: www.kidstennisfoundation.com

Lawn Tennis Association Stuart Smith, President Roger Draper, Chief Executive A: The National Tennis Centre 100 Priory Lane Roehampton London, SW15 5JQ ENGLAND P: +44 208 487 7000 F: +44 208 487 7301 W: www.lta.org.uk

Tennis Seniors Australia Denis Colette, President Carl Anjou, Secretary A: 29 Kenny Street North Balwyn Vic. 3104 P: +61 3 9857 7752 F: +61 3 9816 3620 E: anjouc@satlink.com.au W: www.tennisvets.org.au

US Open Jim Curley, Tournament Director A: USTA Billie Jean King National Tennis Centre Flushing Meadows Corona Park Flushing NY 11368 USA P: +1 914 696 7219 F: +1 914 696 7216 W: www.usopen.org

Australian Davis Cup Tennis Foundation Neale Fraser, AO MBE, President Graeme Cumbrae-Stewart, OAM, Secretary A: Suite 9, 50 Upper Heidelberg Rd Ivanhoe Vic. 3079 P: +61 3 9499 6228 F: +61 3 9497 4333 E: info@adctf.org.au

USTA Jane Brown Grimes, President and Chairman Arlen Kantarian, CEO, Professional Tennis A: 70 West Red Oak Lane White Plains NY 10604-3602 USA P: +1 914 696 7000 F: +1 914 696 7167 W: www.usta.com

Australian Fed Cup Tennis Foundation Margaret Court, Patron Judy Dalton, President A: PO Box 1206 Hawksburn Vic. 3142 P: +61 3 9826 8448 F: +61 3 9826 8808 E: sdove@nicholsonmedia.com International Club of Australia Frank Sedgman, President Cedric Mason, Secretary A: c/o Kooyong Tennis Club 489 Glenferrie Road Kooyong Vic. 3144 P: +61 3 9822 3333 F: +61 3 9822 5248 E: cedric@kooyongltc.asn.au

Tennis Australia Geoff Pollard President and Chairman Steve Wood CEO A: Private Bag 6060 Richmond Vic. 3121 Melbourne Park Batman Avenue Melbourne Vic. 3001 P: +61 3 9914 4000 F: +61 3 9650 2743 W: www.tennis.com.au

Australian Open Craig Tiley Tournament Director A: Private Bag 6060 Richmond Vic. 3121 P: +61 3 9914 4400 F: +61 3 9659 1040 W: www.australianopen.com

The Wonderful World of Tennis

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

AMT (Australian Money Tournaments): three-day, 56-player draw tournaments offering prize money, which complement Pro Circuit, Futures and ITF circuit events.

KPOs: staff set three to five key performance objectives for the next financial year.

Member Associations Tennis NSW Stephen Healy, President Glenn Tasker, CEO A: Sydney Olympic Park Tennis Centre PO Box 6204 Silverwater NSW 1811 Rod Laver Drive Sydney Olympic Park NSW 2127 P: +61 2 9763 7644 F: +61 2 9763 7655 E: tennis@tennisnsw.com.au W: www.tennisnsw.com.au

Making Australia

the greatest

tennis nation on the planet Tennis Australia 2007–2008 Annual Report

Previous Australian Tennis Hall of Fame Inductees include:

Contents

Australian Tennis Hall of Fame The Australian Tennis Hall of Fame

Inner cover Our Hall of Fame recipients and Neale Fraser’s honour 1 About Tennis Australia and our Annual Report 2 The Purpose Pyramid 4 Key moments and awards 6 Tennis Australia snapshot – a progress report 11 Senior Management reports 12 President’s report – Geoff Pollard 16 Chief Executive Officer’s report – Steve Wood 22 Finance, Legal and Administration report – David Roberts 24 Marketing, Media and e-Communications report – Digby Nancarrow 26 Commercial report – John Clark 28 Human Resources report – Raelene Turner 30 Tennis and Australian Open report – Craig Tiley 34 Operations report – Sarah Clements 36 Information Technology report – Chris Yates 38 Tennis Australia’s historical timeline 39 Tennis Australia Governance 40 Corporate Governance statement 43 Tennis Australia Board 44 Office Bearers, Life Members, Service Awards and Committees The Annual Report’s business unit sections are colour-coded with corresponding tabs to ease navigation. 45 Finance, Legal and Administration business unit 50 Risk management 51 Marketing, Media and e-Communications business unit 57 Commercial business unit 61 Sponsor acknowledgements 63 Human Resources business unit 68 Our team – staff photos Six-page fold-out section 70 Organisational structure 73 Australian Open 2008 77 Tennis business unit 83 Sustainability and the environment 87 Operations business unit 93 Information Technology business unit 99 Financial section 126 Index Inside back cover Glossary Back cover Key contacts

was established in 1993 and induction takes place at Rod Laver Arena on Australia Day (26 January) each year during the Australian Open. Induction is recognised

1993 1994 1997 2002 2006 Rod Laver and Margaret (Smith) Court

Roy Emerson, Evonne (Goolagong) Cawley, Neale Fraser

by a bronze bust which is later displayed

Fred Stolle, Jack Crawford, Gerald Patterson

1998 2003

in Garden Square at Melbourne Park. Pat Rafter joined the exclusive club

John Newcombe, Tony Roche, Lesley (Turner) Bowrey, Adrian Quist

in a ceremony on Australia Day during Australian Open 2008.

Managing Editor: Kim Trengove Editor: Daniela Toleski Contributors: Rob O’Gorman, Darren Pearce Design and production: room44.com.au, Lisa Minichiello and Dean Gorissen Photography: Getty Images, Mark Dadswell, Tennis Australia Print: Highway Press, Tim Smith

Fold-out cover for Australian Tennis Hall of Fame Inductees

Pat Cash

1999

Daphne Akhurst

Australian tennis great Neale Fraser was awarded the International Tennis Federation’s highest honour, the Philippe Chatrier Award, at the ITF World Champions’ Dinner in Paris on 3 June 2008 during the French Open.

2007

Mark Edmondson

Australia inducted into the International Tennis Hall of Fame

2004 1995 2000 2008 1996 2001 2005 Brian Tobin (first administrator to be inducted)

Lew Hoad, Ken Rosewall

Ken McGregor

Pat Rafter

Frank Sedgman, John Bromwich, Sir Norman Brookes, Ashley Cooper, Harry Hopman

Mal Anderson, Nancye (Wynne) Bolton

Credits

Mervyn Rose, Thelma (Coyne) Long

No induction – Australian Open Centenary

Fraser honoured in Paris

The award recognises Fraser’s outstanding achievements in the game of tennis where he has excelled as a player, coach, captain and administrator. He is only the third Australian, with Margaret (Smith) Court and Rod Laver also, to win the award. Other Philippe Chatrier award recipients include international tennis greats Billie Jean King, Stefan Edberg, Jack Kramer, Tony Trabert, Yannick Noah and Chris Evert. Fraser’s record is unlike any other, including 19 Grand Slam titles, a Wimbledon trophy and two US Open titles. He is also just one of eight men to have won all four Grand Slam doubles titles and was inducted into the International Tennis Hall of Fame in 1984. His role in Australia’s Davis Cup history has grown from player, to captain, to ambassador. He made his debut in the 1958 final against the US and lifted the trophy 11 times. He was a winning captain four times after succeeding Harry Hopman in 1970 and held the position for 24 years, becoming the competition’s longest serving captain. Since 1993 Fraser has served as a member of the Davis Cup Committee. He was also honoured as a Centenary Ambassador for Davis Cup and was the first recipient of the ITF and International Hall of Fame’s Davis Cup Award of Excellence.

Previous Australian Tennis Hall of Fame Inductees include:

Contents

Australian Tennis Hall of Fame The Australian Tennis Hall of Fame

was established in 1993 and induction takes place at Rod Laver Arena on Australia Day (26 January) each year during the Australian Open. Induction is recognised

1993 1994 1997 2002 2006 Rod Laver and Margaret (Smith) Court

Roy Emerson, Evonne (Goolagong) Cawley, Neale Fraser

by a bronze bust which is later displayed

Fred Stolle, Jack Crawford, Gerald Patterson

1998 2003

in Garden Square at Melbourne Park. Pat Rafter joined the exclusive club

John Newcombe, Tony Roche, Lesley (Turner) Bowrey, Adrian Quist

in a ceremony on Australia Day during Australian Open 2008.

Fold-out cover for Australian Tennis Hall of Fame Inductees

Pat Cash

1999

Daphne Akhurst

2007

Mark Edmondson

Australia inducted into the International Tennis Hall of Fame

2004 1995 2000 2008 1996 2001 2005 Brian Tobin (first administrator to be inducted)

Lew Hoad, Ken Rosewall

Ken McGregor

Pat Rafter

Frank Sedgman, John Bromwich, Sir Norman Brookes, Ashley Cooper, Harry Hopman

Mal Anderson, Nancye (Wynne) Bolton

Credits

Mervyn Rose, Thelma (Coyne) Long

No induction – Australian Open Centenary

Fraser honoured in Paris

About Tennis Australia and our Annual Report

0708

About Tennis Australia Tennis Australia (TA) is the governing body of tennis within Australia. The Company was established by the Victorian, New South Wales, Queensland, Western Australia, South Australia and Tasmanian Tennis Associations and the New Zealand Lawn Tennis Association in late 1904 to allow for the staging of the first Australasian Men’s Championships in 1905. Today TA has eight Member Associations (MAs) – state/territory–based governing bodies responsible for implementing TA initiatives. In 2005 TA celebrated its centenary, and that of its first event – the Australian Open (AO). During more than a century of history TA has developed into a AUD$100 million business operating as a one-team Company with a nine-person Board of Directors, 14 Member Delegates (representing the MAs), 145 full-time employees and several thousand casual employees. p66, 70 Melbourne Park is the home of TA and the AO. The venue is situated along the Yarra River on Batman Ave and has 22 outdoor courts including three show courts and seven indoor courts. The Company’s responsibilities include promoting and facilitating participation in tennis at all levels, staging tennis events including the AO, developing future stars, growing business revenues and honouring the sport’s heritage. These responsibilities are reflected in TA’s Purpose Pyramid. p2

Tennis on top The latest Sweeney Sports Report, which among other things conducts a multi-faceted measure of the Australian public’s interest in sport, has placed tennis at number one. The survey period was from October 2007 to April 2008 and tennis topped the poll for the second survey in a row, ahead of swimming, cricket, Australian Rules, soccer and other sports. p18

Introducing the TA 2007–2008 Annual Report The financial year 2007–2008 saw the restructure of the Company’s focus and strategic priorities with the overall purpose for TA refined to ‘Making Australia the greatest tennis nation on the planet.’ p2

The Australian Open is Tennis Australia’s marquee event.

This year’s report will feature some of the staff comments submitted during an employee communications session on 13 March 2008. These will be identified through the ‘post-it note’ image shown below. Based on Our Formula for Success in the Purpose Pyramid, p2 the comments show how staff will endeavour to work to this paradigm to achieve the Company’s overall objective. The ‘Half Canadian’ cover allows readers to open the report out flat and can be folded to reveal our past champions as they have been honoured through the Australian Tennis Hall of Fame. This section will also highlight the highest international honour – the Philippe Chatrier Award – bestowed on Australian great Neale Fraser. The TA 2007–2008 Annual Report is a concise summary of the Company’s performance and aims to provide ease of navigation between the various business units.

out Lookthe for staff new ments. co m

About Tennis Australia and our Annual Report

The Purpose Pyramid In late February 2008, Tennis Australia’s (TA’s) Senior Management Team (SMT) took part in a building for growth – vision, values and strategy – workshop during which they reviewed the Company’s strategic direction. Following an in-depth discussion, the SMT defined the overall purpose of the Company to be ‘Making Australia the greatest tennis nation on the planet’. They refined the Company’s direction into five strategic priorities which are clearly defined to take TA to the next level.

Why we exist

What we do

How we work

Immediate Priorities 2

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Our Purpose Making Australia the greatest tennis nation on the planet Our Formula for Success Great champions> Create champions – the mark of a great tennis nation. More highly ranking players and more Grand Slam champions. Active players> Spread the love of tennis within the community. More people playing more tennis more often. Devoted fans> Build the buzz of tennis – supporters and potential players. More people attending more tennis events. More people engaging with tennis and tennis brands. Invest in the game> Build sustainable resources to invest in the growth of the game. More money to grow more fans, more players and more champions.

Our Promise, Our Way Bringing a competitive edge> We are disciplined and aspire to be the best. Daring to be different> We are not afraid to step forward and try new things. Creating magical experiences> We know how to entertain and have some fun. Celebrating greatness> Success breeds success. We celebrate greatness in our people, our partners and our champions past, present and future. Giving awesome service> We don’t settle for OK or average. Playing as a team> We listen, develop, include and coach each other.

Our Strategic Priorities Champions> More champions and depth across all levels. Infrastructure> More and better national infrastructure. Grassroots> Building and delivering (more) effectively to the ‘grassroots’. Alignment> Getting the tennis community (internal and external to Tennis Australia) aligned behind our Purpose Pyramid to make the image of tennis in Australia more relevant and compelling. EventsCo> Running bigger, better and more tennis events.

The Purpose Pyramid

Key moments and awards

0708 3

dates 7 July 2007

6 7

Key moments Australian Davis Cup player Peter Luczak marries Katarina Queckfeldt. (See 4 above)

15 July 2007

Optus Australian Fed Cup team loses to Ukraine 1-4 on the Gold Coast.

18 July 2007

Lleyton Hewitt announces Tony Roche as his coach. (See 2 above)

19 July 2007

Tennis Australia (TA), in conjunction with Australian Turkish Business and Industry (ATBI), announces a new international junior tournament – the inaugural Gallipoli Youth Cup – to be held at Melbourne Park.

11 August 2007

The Optus Australian 14/u World Junior Tennis Team wins the final in Prostejov, Czech Republic, for the first time.

30 August 2007

Four Aviva Ballkids are chosen from Delhi, India, to participate at Australian Open (AO) 2008.

1 September 2007

AO Tournament Director Craig Tiley marries long-time partner Ali in Chicago. (See 5 above)

24 September 2007

Optus Australian Davis Cup team loses to Serbia 1-4 in Belgrade forcing Australia out of the elite World Group.

1 October 2007

Both the Optus Australian Junior Davis and Fed Cup teams win their respective Cups, with the boys defeating Argentina 2-0, and the girls winning over Poland 2-1. (See 3 above and 13 right)

2 October 2007

TA launches Where the World Comes to Play tennis campaign for AO 2008.

2 October 2007

The largest prize pool in the tournament’s history announced for AO 2008 – AUD$20.6 million.

2 October 2007

New blue Plexicushion surface unveiled at Rod Laver Arena. (See 1 above)

17 October 2007

Scott Tanner and Chris Freeman join the TA Board.

26 October 2007

Queensland wins the Bruce Cup, the prestigious national teams’ event for primary school children, for the 16th time since 1969.

9 December 2007

4 5

Bernard Tomic wins his third consecutive title at the prestigious Orange Bowl, Florida.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

9 10 23 December 2007

Australian Nathan Healey marries American Marnie Heller in Avoca, NSW.

14 January 2008

Redevelopment of the player restaurant for AO 2009 announced.

15 January 2008

Former Australian No.1 Nicole Pratt announces her retirement. (See 12 above)

17 January 2008

The highest ever Grand Slam day/night combined attendance achieved, with 62,885 fans through the gates. (See 9 above)

20 January 2008

Casey Dellacqua reaches the fourth round of the AO with wins over No.15 seed Patty Schnyder and former AO champion No.18 Amelie Mauresmo.

26 January 2008

Kia Motors Corporation extends its multi-million dollar sponsorship of the AO as major sponsor until 2013.

26 January 2008

Bernard Tomic wins AO junior boys’ singles title, while Jessica Moore is a finalist at the AO junior girls’ event. (See 8 left)

13 April 2008

Optus Australian Davis Cup team beats Thailand 5-0 and met Chile in the World Group play-off on clay in September 2008.

18 April 2008

Australian team of Luke Saville (SA), Jack Schipanski (SA) and Jordon Thompson (NSW) qualify for the World Junior Tennis final held in Czech Republic in August.

2 May 2008

James Duckworth (NSW), Maverick Banes (Qld) and Jarryd Chaplin (NSW) qualify for the Junior Davis Cup final held in Mexico in September.

17 May 2008

TA announces the women’s final at AO 2009 will be played at night.

7 June 2008

Casey Dellacqua is a finalist with Francesca Schiavone (ITA) in the women’s doubles at the French Open. (See 10 above)

10 June 2008

Casey Dellacqua breaks into the top 50, with a career-high singles ranking of No.41 after her efforts at Roland Garros. Inside back cover

21 June 2008

Popular Canberra tennis player Alun Jones retires. (See 7 left)

23 June 2008

Brydan Klein claims his fourth professional singles title, winning the Futures tournament in Belarus. (See 11 above)

Awards and honours 18 January 2008

John Whittaker, Judy Dalton and Alan Trengove presented with TA Awards for Service to the Game.

26 January 2008

Pat Rafter inducted in the Australian Tennis Hall of Fame on Australia Day at Rod Laver Arena.

18 February 2008

The 2007 inaugural Pro Circuit event in Kalgoorlie wins ‘Event of the Year’ in the Goldfields region.

3 June 2008

Neale Fraser receives top honour – the Philippe Chatrier Award – at the ITF World Champions’ dinner in Paris. Fold-out cover

3 June 2008

The 1950 Australian Davis Cup team receives the Team Sport Australian Award and its members are inducted into the Sport Australia Hall of Fame.

5 June 2008

TA presented with third consecutive gold award at the Australasian Reporting Awards dinner.

12 June 2008

Ken Rosewall AM, MBE recognised with an ITF Award for Service to the Game. (See 6 left)

Key moments and awards

Tennis Australia snapshot – a progress report

0708

Tennis Australia’s Strategic Priorities The following table provides a quick reference point to Tennis Australia’s (TA’s) activities for the financial year. It details key TA initiatives and objectives and is broken down according to business unit. Page references are provided where you can find additional information on each activity. Each initiative/objective also features a symbol that represents the Strategic Priorities it corresponds to.

Champions

More champions and depth across all levels.

Infrastructure

More and better national infrastructure.

Grassroots

Building and delivering (more) effectively to the ‘grassroots’.

Alignment

Getting the tennis community (internal and external to Tennis Australia) aligned behind our Purpose Pyramid to make the image of tennis in Australia more relevant and compelling.

EventsCo

Running bigger, better and more tennis events. Captions 1. Aviva Tennis Hot Shot participants run onto Margaret Court Arena. 2. Construction at the State Tennis Centre, Tennyson. 3. Bernard Tomic stretches for the ball during AO 2008.

1 2 6

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Tennis Australia snapshot Business unit

Objective 2007–2008

Strategic Priority

Activity

Progress

NEXT STEPS 2008–2009

More information

FINANCE, LEGAL AND ADMINISTRATION Improve shared financial services with Member Associations (MAs).

Ongoing

Continue shared services initiative and migrate other MAs accounting function to Tennis Australia (TA).

p23

Alignment

Microsoft Dynamics Great Plains system introduced to all eight MAs and Meridian payroll system into three MAs.

Complete

Implement the AntiCorruption Program at AO 2009 subject to any international developments.

p48

Infrastructure

Developed an Anti-Corruption Policy and Program, which was implemented at Australian Open (AO) 2008.

Complete

Ongoing review of procurement procedures.

p23,47

Infrastructure

Introduced new procurement guidelines including an online purchase order approval system.

Complete

Develop a web portal for Board Reporting.

p23,47

Infrastructure

Implemented new ‘dashboard’ style reporting system with more concise, relevant and accurate information.

True Blue colour used to transform Melbourne Park courts, signage and artwork.

Complete

Provide additional entertainment at AO and AO Series events.

p53

Communication tools such as posters, emails, brochures provided for individual programs, for example, Tennis Talent Search.

Ongoing

Ensure consistent approach to all marketing campaigns.

p54

Launched first live site in Shanghai for AO 2008.

Complete

Conduct major marketing campaigns across Asia.

p54

Introduced fan commenting on australianopen.com.

Complete

Produce player websites.

p55

Protect and maintain the integrity of tennis.

Simplify and streamline the procurement process. Improve reporting system to Board of Directors.

MARKETING, MEDIA AND e-COMMUNICATIONS Reignite AO brand. EventsCo Activate and promote brand Tennis. Grassroots Build AO’s position as the Grand Slam of Asia/Pacific.

EventsCo

Make the image of tennis in Australia more compelling. EventsCo

Redevelop tennis.com.au.

continued over Tennis Australia snapshot

Tennis Australia snapshot continued Objective 2007–2008

Business unit

Strategic Priority

Activity

Progress

NEXT STEPS 2008–2009

More information

COMMERCIAL Develop 10 sponsorship renewal proposals.

Re-signed nine out of 10 sponsorship contracts.

Complete

Develop a further six sponsorship renewal proposals.

p27, 58

Quantum Market Research was commissioned to find out what corporate clients valued.

Complete

Research used to guide new products/services for corporate clients at AO 2009.

p60

AO 2008 attracts a record 605,735 spectators.

Complete

A new range of ticket packages to be implemented for AO 2009 to break attendance record.

p59–60

Re-signed Seven Network until 2014.

Complete

High definition and extra broadcast court coverage for AO 2009.

p27

Improved communication across the Company.

Ongoing

Continue to focus on this objective.

p29

ConnX installed in December–January 2008.

Complete

Implement ConnX to the Member Associations.

p65

Empowering our Leaders for Success program delivered to three groups.

Ongoing

Continue to improve networking between employees.

p29, 64, 67

Appointment of a dedicated Safety Manager.

Complete

Increase safety awareness, ownership and participation.

p66

EventsCo

Conduct corporate client market research. EventsCo Review ticket package sales. EventsCo

Grassroots Strategy for renewal of host broadcast rights. EventsCo HUMAN RESOURCES Ensure the Tennis Australia team is engaged and aligned behind the Purpose Pyramid.

Alignment

Establish an online employee selfservice system. Infrastructure Empower Tennis Australia leaders. Alignment Focus on improved safety for employees. Alignment

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Objective 2007–2008

Business unit

Strategic Priority

Activity

Progress

NEXT STEPS 2008–2009

More information

AUSTRALIAN OPEN Implement Where the World Comes to Play campaign. Implementation of new ticketing initiatives to break attendance record.

AO 2008 comprehensively themed.

Complete

Launch of The World’s Biggest Stage campaign for AO 2009.

p25, 53

AO 2008 attracts a record 605,735 fans through the gates.

Complete

Additional packages designed to align with the changing needs of customers.

p27, 59

Prize money for AO 2008 increased to AUD$20.6 million.

Complete

Budget a seven per cent increase in AO prize money for 2009.

p76

Re-launched Aviva Tennis Hot Shots program for 5–12 year olds.

Ongoing

Increase the number of deliverers to the program.

p79

Membership in this program went from zero to 1637 members.

Ongoing

Attract, develop and retain the best coaches.

p32, 80

Talent Search identified 2706 kids.

Ongoing

Promote and grow the National Talent Search days.

p80

Over 250 courts were either resurfaced or constructed.

Ongoing

Grow National Court Rebate Scheme.

p33, 84

Increased the number of competitive opportunities for athletes at senior and junior level.

Ongoing

Continue to offer the best competition environment to develop champions.

p79

EventsCo

Increase prize money EventsCo TENNIS Develop a successful national community program. Deliver a successful National Coach Membership program. Identify and provide opportunities for talented athletes. Improve the quality and sustainability of tennis facilities around the country. Maximise the quality and quantity of professional competitive opportunities.

Grassroots

Champions

Infrastructure

Champions

continued over Tennis Australia snapshot continued

Tennis Australia snapshot continued Business unit

Objective 2007–2008

Strategic Priority

NEXT STEPS 2008–2009

More information

Activity

Progress

Implemented more than 70 initiatives at AO 2008 including new court surface and court colour.

Complete

More initiatives launched at AO 2009.

p89

First draft of plan is completed and has been submitted for review.

Ongoing

Review process of first draft to be undertaken before a final version is produced. Next step is to generate individual Master Event Operating Plans for each AO Series event.

p90

Coordinated all Davis Cup and Fed Cup home and away ties.

Complete

Organise Australia’s international team events during the upcoming financial year.

p91

TANTU project implemented in all MAs.

Complete

Further technical support provided to the MAs with IT staff visiting each MA.

p98

Video line-calling used at Vodafone Arena during AO 2008.

Complete

Continue to feature video line-calling at Rod Laver Arena and Hisense (formally Vodafone) Arena.

p94–95

Effective use of Player Practice Booking system during AO 2008.

Ongoing

Continue to manage player practice bookings efficiently during AO 2009.

p95

OPERATIONS Deliver a revitalised AO. EventsCo Create a Master AO Event Operating Plan. EventsCo

Manage international events. EventsCo INFORMATION TECHNOLOGY Establish shared IT and phone systems for TA and MAs.

Infrastructure

Introduce video line-calling at Vodafone Arena. EventsCo Establish Player Practice Booking system. EventsCo

Delivered a revitalised Australian Open.

Serbian Novak Djokovic with the Norman Brookes Challenge Cup in the locker room after winning the AO 2008 men’s final. 10

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Senior Management reports

0708 Tennis Australia’s President, Chief Executive Officer and Senior Management Team report on the performance of the Company and their respective business units.

President’s report – Geoff Pollard

Chief Executive Officer’s report – Steve Wood

BUSINESS UNIT REPORTS

Finance, Legal and Administration – David Roberts

Marketing, Media and e-Communications – Digby Nancarrow

Commercial – John Clark

Human Resources – Raelene Turner

Tennis and Australian Open – Craig Tiley

Operations – Sarah Clements

Information Technology – Chris Yates

Tennis Australia’s historical timeline

Senior Management reports

President’s report GEOFF POLLARD

marquee event, 0708 Our Australian Open 2008,

BIOGRAPHY AM, MSc, AIA, FAIM, FAICD

Grand Slam of Asia/Pacific, continues to grow and establish many new records.

President TA since 1989 Non-executive Chairman TA since 2005 CEO TA 1989–2005 Councillor TA 1978–2006 Honorary Consul, Belgium since 2007 Vice President International Tennis Federation since 1999 President Oceania Tennis Federation since 1993 Director Grand Slam Committee since 1989 Chairman ITF Rules of Tennis Committee and Technical Commission since 1989 Trustee, Melbourne and Olympic Parks Trust since 1989 President NSW Lawn Tennis Association 1979–1989 Geoff Pollard was runner-up to John Newcombe in the 1961 Australian Junior Championships and represented Australia in the Junior Davis Cup with Tony Roche in 1961–1962 and 1962–1963. He is joint author of the text book Demographic Techniques and author of 15 academic research papers.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

The Sweeney Sports Report again recorded that tennis held the highest level of interest within the Australian public. Australia’s No.1 Casey Dellacqua.

TA’s David Roberts with the gold award from the Australasian Reporting Awards (ARA) for the 2006–2007 Annual Report.

This Annual Report of Tennis Australia (TA) highlights the activities and achievements of the Company during the financial year 2007–2008.

Corporate change continues At last year’s Annual General Meeting (AGM) in October 2007, the Members agreed to formally change the name of the Company from the historic Lawn Tennis Association of Australia Ltd to Tennis Australia Ltd, at that time just the trading name of the Company. Members also adopted a new Constitution, while the Board exercised its option under the Constitution to appoint two more independent Directors. This development not only strengthened the Board, but ensured that a majority of Directors (five of nine) were independent of any Member Association (MA) affiliation. Further, at this year’s AGM, the majority of independent Directors will increase to six of nine. Members strongly believe that this satisfies all requirements of modern Corporate Governance, but under pressure from the Australian Sports Commission (ASC), the MAs have agreed to gradually progress by 2012 to a fully independent Board. Following the adoption of the new Constitution, the Board also revisited the By-laws and adopted a new set of By-laws. The Board also adopted Charters for itself and its various Committees. Consistent with our commitment to full disclosure, the TA Annual Report again received a gold award from the Australasian Reporting Awards.

New Australian Open records Our marquee event, Australian Open (AO) 2008, Grand Slam of Asia/Pacific, continues to grow and establish many new records, including an attendance increase of nine per cent to 605,735 fans, the ninth consecutive year that attendance has exceeded half a million patrons. Once again the men’s singles produced a surprise finalist, Frenchman Jo-Wilfried Tsonga, whose explosive victories over No.9 Andy Murray, No.8 Richard Gasquet, No.14 Mikhail Youzhny and No.2 Rafael Nadal excited an adoring crowd. His dream run ended in the final against Serbian Novak Djokovic, who ended Swiss Roger Federer’s defence of the title in the semifinal. The women’s singles saw Maria Sharapova defeat No.11 Elena Dementieva, No.1 Justine Henin, No.3 Jelena Jankovic and finally No.4 Ana Ivanovic to score her first AO title, after being a finalist in 2007.

Lleyton Hewitt and Casey Dellacqua were Australia’s best performers, both reaching the round of 16. But hopes for future success emerged in the junior events where Bernard Tomic won the boys’ singles, following on from Brydan Klein’s success last year, and Jessica Moore was a finalist in the girls’ singles. Among the many initiatives for 2008 were the change of surface to Plexicushion, the change of colour to a distinctive AO blue and the introduction of video line-calling to Vodafone Arena in addition to Rod Laver Arena. The live sites in Shanghai, Sydney and Melbourne attracted 1,387,338 attendees. The official website powered by IBM recorded 7,456,693 unique visitors. Host Broadcaster, Seven Network, dominated the Australian summer, while internationally the AO was broadcast for a record 6700 hours in 157 countries, reaching 425.1 million households and potentially 1.9 billion viewers.

continued over President’s report

President’s report continued Pat’s performance and personality did much to stimulate interest in tennis in this country and wherever he played around the world. Pat Rafter was inducted into the Australian Tennis Hall of Fame on Australia Day 2008.

Exciting changes for Australian Open Series The AO Series consists of the ATP and WTA Tour tournaments in Sydney, Adelaide, Hobart and the Gold Coast that were played in the two weeks preceding the AO. The Medibank International Sydney was played at the Sydney Olympic Park Tennis Centre and the winners of the men’s and women’s singles were Russian Dmitry Tursunov and Belgian Justine Henin respectively. The Next Generation Adelaide International was played at Memorial Drive and the winner was France’s Michael Llodra. The Mondial Australian Women’s Hardcourts, which was played at Royal Pines Resort on the Gold Coast, was won by China’s Na Li. In Hobart, the Moorilla Hobart International women’s champion at the Domain Tennis Centre was Eleni Daniilidou of Greece. Special events played in Perth (Hopman Cup) and Melbourne (Kooyong Classic) are not part of the AO Series, which is restricted to ATP/ WTA Tour computer-ranking tournaments. As announced last year, and consistent with a growing trend worldwide to re-unite men’s and women’s tournaments, TA announced that the Adelaide (men’s) and Gold Coast (women’s) events will combine in 2009 and move to an exciting new tennis centre being constructed at Tennyson, Brisbane. Tennis SA has announced a special event to replace the Adelaide tournament in 2009. The ITF-owned Hopman Cup continues in Perth where the WA government plans to build a new venue.

Development at Melbourne Park The National Tennis Centre at Melbourne Park was constructed by the Victorian Government primarily for the AO and secondarily as the Sports and Entertainment Centre for Melbourne. The AO is committed to Melbourne Park until 2016, by which time the venue will be 28 years old. Substantial extensions were undertaken in 1995 and again in 2000, but since then crowds have grown to over 600,000 and there are deficiencies in the venue that need to be addressed. The first of these was the courts themselves – the bases of many courts had outlived their anticipated lifetime and needed to be replaced. TA took the opportunity to also review the court surface and after extensive analysis resolved to change from Rebound Ace to another cushioned acrylic surface – Plexicushion. The courts’ surface colour also changed from green to a distinctive AO blue. At AO 2008, the Victorian Government, TA and Melbourne and Olympic Parks Trust (MOPT) announced an AUD$2 million study into proposed developments over the next few years and a related business plan that will ensure Melbourne Park remains a first class tennis centre capable of continuing to host the AO well beyond 2016. p91

International teams The Optus Australian Davis Cup Team was defeated by Serbia in Belgrade in September 2007 and was consequently relegated to the Asia/Oceania Zone Group 1 for 2008. Australia defeated Chinese Taipei away in February and Thailand at home in Townsville in April and play Chile in September to regain a position in the World Group for 2009. After losing a play-off against Ukraine at home on the Gold Coast in July 2007, the Optus Australian Fed Cup Team competed in the Asia/Oceania Zone Group 1 in Thailand in February 2008. After three teams finished equal in their division following the round-robin stage, Australia missed the final on a count-back. Consequently, Australia will remain in the Asia/ Oceania Zone Group 1 for the 2009 competition. If the senior results were disappointing, the junior results were most encouraging. Australia won the Junior Davis Cup and the Junior Fed Cup finals, which are the 16/u group. Australia was also successful in the World Youth Cup for 14/u boys.

Tennis activities The Sweeney Sports Report again recorded that tennis held the highest level of interest within the Australian public. This means that tennis has topped the survey for both the summer and winter round of interviews Australia-wide. p18 TA continues to work with its Member Associations (MAs) to increase the number and range of national shared services initiatives. Great progress was made in Finance and IT services, while National Membership remains on the agenda. p81 The new Talent Search program to identify talented athletes and steer them towards tennis was introduced to 2706 children under the age of 12 during 2008. At the more advanced level,

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Tennis Australia continues to work with its Member Associations to increase the number and range of national shared services initiatives. National Academies (NAs) are now operating in five states and cover 63 partial scholarship holders and 11 full scholarships. The AIS Pro Tour Program is now fully incorporated in the TA Player Development Pathway and 15 men and nine women have full-time or part-time scholarships. p81 TA introduced Coach Membership last year and at 30 June 2008 had 1637 members. The commitment to attract, develop and retain the best coaches globally continues and a wide range of Coach Education and Professional Development activities were implemented in 2007–2008. Competition opportunities remain the cornerstone for player development and TA has continued to develop ATP/WTA Pro Circuits, Australian Ranking Tournaments and ITF Junior Tournaments within Australia and to send our best juniors overseas for international competition. Finally, the Tennis business unit recognises the importance of building and delivering more effectively at ‘grassroots’ level through our MAs. The Aviva Tennis Hot Shots program was completely revamped during the year to incorporate a competitions element. TA is working with the ASC on the Indigenous Tennis Pathway and with Tennis Seniors Australia to arrange and grow the participation rates of players aged 35 and over.

Financial standing The success of AO 2008 enabled the Company to grow revenue by 20 per cent with a commensurate growth in investment in the AO, AO Series, tennis development and tennis facilities through the National Court Rebate Scheme. However, the Company recorded a net deficit for the year of AUD$3,465,043 after taking into account a deterioration in the performance of the Company’s managed funds in the amount of AUD$5,508,276, which was in line with the general downturn in global financial markets.

Election results At the AGM in October 2007 all members of the Board seeking re-election were re-appointed. The Board exercised its right under the Constitution to appoint two independent Directors and appointed Chris Freeman and Scott Tanner. The Board now has a majority of independent Directors. p43 At the MA level, Stephen Healy replaced John Whittaker OAM, who retired as President of Tennis NSW after serving 17 years. Peter Armstrong replaced Ross Munro as President of Tennis Tasmania and Warren Martin replaced Sandra Smiles as President of Tennis NT.

Honours and heritage Former world No.1, dual US Open Champion and Wimbledon finalist Pat Rafter was inducted into the Australian Tennis Hall of Fame on 26 January 2008 in a moving ceremony at Rod Laver Arena. Pat’s performance and personality did much to stimulate interest in tennis in this country and wherever he played around the world. The Australian Tennis Hall of Fame enables TA to recognise our heritage, which contributes substantially to the AO being recognised as one of the four Grand Slams. Fold-out cover At the ITF AGM in Moscow in June 2008 one of the greatest players of all-time and certainly the one whose career at the top spanned the longest time period, Ken Rosewall AM, MBE, was recognised with an ITF Award for Service to the Game. At home, TA recognised former Tennis NSW President John Whittaker OAM, former Wimbledon finalist and Fed Cup Foundation President, Judy Dalton, and author, journalist and founding editor of Australian Tennis Magazine, Alan Trengove, with the TA Award for Service to the Game.

Challenges Globally, tennis continues to face challenges from other sports and activities and also from within the game. As the ATP and WTA Tour try to implement new tournament levels, new calendar dates and new player participation formulae from 2009, there are obviously winners and losers. For TA, the two greatest challenges are first to meet the ever increasing number of countries that compete at the highest level in international competition and, secondly, to ensure our showcase event, the AO, remains at the highest level as one of the four Grand Slams.

The official Davis Cup draw is conducted at Reef HQ Aquarium in Townsville.

Remembering It is with deep regret we record the passing of Libby Nicholl, wife of TA Vice President, Des Nicholl. Libby strongly supported Des through all his activities at TA and Tennis NSW and especially helped my wife Eleanor and me entertain guests at the AO and Davis Cup for the past 15 years.

Thanks Finally, I would like to express my appreciation to our sponsors as listed on p61–62 and to all the Directors, MA representatives and to CEO Steve Wood, the Senior Management Team and all staff at TA and the MAs and the volunteers whose energy, enthusiasm and commitment to the game continue to drive TA forward to meet the many national and international challenges as the governing body of tennis in Australia.

Geoff Pollard PRESIDENT AND CHAIRMAN

President’s report continued

Chief Executive Officer’s report STEVE WOOD

0708

We exist to deliver tennis all year round and to connect directly with the end consumers of tennis and strengthen their relationship to the game so that we can create more champions, get more active players and excite our devoted fans.

BIOGRAPHY B.Bus Marketing

CEO TA since 2005 President Nortel Networks Australia and NZ 2001–2005 Vice President Alteon WebSystems 1999–2001 Vice President Nortel Networks Asia 1997–1999 Vice President Bay Networks 1995–1997 Vice President Asia–Pacific SynOptics Communications Inc 1991–1995 Steve was a professional tennis player from 1985–1987. His last pro match was at the Australian Open, held at Kooyong, where he lost after having led American Paul Annacone two sets to love. With doubles partner Mark Tulloch he was runner-up at the Victorian 19/u junior doubles final losing to Pat Cash and Mark Hartnett. Twenty years later, he bought one of the first corporate memberships to Kooyong.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Devoted fans enjoy the AO in Garden Square, with ground pass ticket prices remaining the same.

The strength of the Tennis and Australian Open brands led to a 25 per cent increase in merchandise sales on site in 2007–2008. In 2007–2008, Tennis Australia (TA) achieved revenue growth of 20 per cent with many sponsorship and broadcast contracts successfully negotiated and record attendance at the Australian Open (AO). This provided a solid platform to take further strides in achieving our purpose of making Australia the greatest tennis nation on the planet.

Business success TA’s business success can be attributed to significant growth across our key revenue streams. A highlight of the year in Sponsorship was the re-signing and on-going partnership with our major AO sponsor, Kia Motors Corporation. We were pleased to see the renewals of nine key sponsors including Garnier, Tourism Victoria, Optus, Qantas, Evian, IBM, Coca-Cola and Heineken.

Business performance highlights • Defined the Company’s vision, values, purpose and strategy. • Contemporised the AO brand and delivered the greatest ever AO event. • The new Tennis brand gained more commitment from Member Associations (MAs) and key stakeholders. • Tennis became the number one sport of interest according to Sweeney research. • Delivered world class coach education and training programs and launched TA Coach Membership with more than 1600 members. • Player Development programs delivered National Academies in five capital cities. • Improved player results. • Community tennis programs led to better engagement in the community.

We commenced a broadcast partnership with Eurosport and saw the recommitment of ESPN Star Sports and Fox Sports as well as a five-year extension with the Seven Network, our domestic rights-holder, host broadcaster and world feed provider. MasterCard replaced AMEX as the official card, Rolex joined as the official timekeeper and important new suppliers such as Nike came on board. The French apparel giant Lacoste, founded by tennis great Rene Lacoste, signed a multi-million dollar deal to provide more than 1150 uniforms for linespeople, off icials and Aviva Ballkids for AO 2009.

• Professional tennis calendar became strategically aligned and controlled by TA.

We see the AO as a global super brand that will continue to target and attract other global super brands. The strength of the Tennis and AO brands led to a 25 per cent increase in merchandise sales on site in 2007–2008 and enabled us to license our range to Target department stores.

• The 2007–2008 budget delivered a AUD$8 million increase directly into tennis programs.

The demand for AO tickets enabled increase in prices for our most in-demand sessions while price levels for ground passes remained the same to ensure we served the needs of our devoted fans. The expansion and successful delivery of our business targets in 2007 led to streamlining of our Marketing functions. Additional focus was placed on commercial activities with the creation of a new business unit.

• Increased employee engagement with leadership development training.

• 2007–2008 revenue increased to AUD$120 million from AUD$100 million the year before. • 2008–2009 revenue predicted to exceed AUD$140 million.

• Implemented new business and technology systems across TA and MAs.

• TA’s governance reform continued with the TA Board to elect independent Directors. continued over Chief Executive Officer’s report

Chief Executive Officer’s report continued SPORT TENNIS Swimming

Cricket – Outdoor Australian Rules Soccer

Rugby League Rugby Union

Motor Car Racing

31 Gym Workout 30 Athletics – Track & Field 29 Bushwalking/Hiking 27 Jogging/Running/Marathons/Fun Runs 27 Motor Cycle Racing 27 Fishing 26 Basketball 25 Netball 25 Gymnastics 24 Golf 23 Boxing 21 Cycling

38 35

57 55 53 52

CHANGE 02–07

-4

-1

-2

-3

-4

-8

-2

-4

-13

-1

Percentage of Australian population 60 16 years and over who participated.

Table 1.1 The Sweeney Sports Report shows how tennis has become the No.1 sport of interest for the first time since 2002.

Tennis No.1 sport

Vision, values and purpose

The 2007–2008 Sweeney Sports Report found tennis to be Australia’s most popular sport, beating our closest competitors for this mantle – swimming, cricket and Aussie Rules football. The survey also found tennis to be the most widely watched sport on TV (53 per cent) ahead of cricket and Aussie Rules football, both at 49 per cent. p53 These results are a tribute to some bold marketing initiatives which saw the contemporisation of the Tennis and AO brands, and the transformation of the AO to a vibrant True Blue colour, with a complete resurfacing of 31 courts to the cushioned acrylic Plexicushion. This transformation was a resounding success and led to over AUD$3 million investment in tennis courts around Australia with the TA National Court Rebate Scheme. p84 With 272 courts resurfaced in the past 12 months, it appears Australian clubs are eager to adopt this state-of-the-art, environmentally sustainable court surface.

At the conclusion of AO 2008, TA’s management team spent a significant amount of time reflecting on the fundamental values of the Company. As we continue to grow our business, it has been necessary to reframe the type of Company that we will become in order to compete on the global stage. We are a sports, entertainment and media Company that markets and provides services globally. We operate in the highly competitive market for broadcast rights, sponsorship, corporate hospitality, ticket sales, merchandise and sports betting.

The Strategic Plan outlines what we stand for, what our purpose is, our formula for success and our key strategic themes. p2–3

We delivered the greatest ever AO in 2008 and the challenge for us is to make it even greater in 2009.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Our purpose is making Australia the greatest tennis nation on the planet. Our formula for success is> Great Champions Create champions: the mark of a great tennis nation.

Active Players Spread the love of tennis within the community.

Devoted Fans Build the buzz of tennis.

Invest in the Game Build sustainable resources to invest in the growth of the game. Past champions Margaret (Smith) Court and Rod Laver.

We delivered the greatest ever AO in 2008 and the challenge for us is to make it even greater in 2009. But our business is not all about the AO. We exist to deliver tennis all year round and to connect directly with the end consumers of tennis and strengthen their relationship to the game so that we can create more champions, get more active players and excite our devoted fans.

Growing numbers TA’s employees grew to 145 full-time staff as we upgraded offices and relocated large numbers of staff to make way for a new player restaurant, formerly the Garden Square Cafe. We have embarked on a comprehensive and rigorous Professional Development Review process, which is critical to the functioning of a successful business. I was delighted to take part as a mentor in our Empowering Our Leaders for Success program. p67

Business services One of TA’s key strategies is to invest in the game and develop a shared services business model for our stakeholders who assist in serving customers.

TA published a picture book titled Blue to celebrate the greatest AO ever.

The business functions of Information Technology (IT), Human Resources (HR) and Finance and Legal underpin our shared services business model, helping the MAs leverage TA’s expertise and resources. For example, TA is now processing the bulk of financial transactions for the majority of the MAs and providing policies, procedures and programs in the important area of HR. We are also providing selected legal advice with our small but growing legal team. TA IT has linked MA offices with one centralised voice and data network, which enables us to easily share information and communicate with each other.

One of TA’s key strategies is to invest in the game and develop a shared services business model for our stakeholders who assist in serving customers. continued over Chief Executive Officer’s report continued

Chief Executive Officer’s report continued Nurturing our Grand Slam status TA has a strong partnership with the other Grand Slams – the French Open, Wimbledon and the US Open. They have shown a significant propensity to invest and redevelop their facilities and capabilities to handle increasing crowd numbers and strengthen their position in global sport. Australia must also invest to ensure our ability to host a Grand Slam event continues. Massive reconfiguration of TA’s leased office space at Melbourne Park began post AO 2008 to pave the way for an expanded player restaurant, as facility upgrades are a constant expectation of international superstars. If we are to attract the best, we must continue to be the best. As the popularity of the AO swells and we pass 600,000 in attendance, we have looked for support from the State Government of Victoria to prepare the site for major redevelopment to ensure our Grand Slam status is maintained for many years to come. Together with the precinct managers, Melbourne and Olympic Parks Trust (MOPT), we are in the midst of a business case study, p91 the outcome of which will reveal what is required to be redeveloped first, costings and how we keep the facility to worldclass standards.

EventsCo EventsCo is a new business unit formed in early 2008 to focus on raising the profile and profitability of the AO Series events in Brisbane, Sydney and Hobart. Our initial goal is to break even with these events and ultimately make a surplus. As the underwriter of these events, TA will drive business efficiencies by using the expertise we have from running a Grand Slam tournament, the AO. These events will be operated with the same look and feel as the AO to ensure consistent delivery of our brands across the country, and will leverage opportunities in areas of sponsorship, ticketing and marketing from TA’s existing business. The newly created Brisbane International will be held for the first time in January 2009. The event brings together the former Next Generation Adelaide International for men with the Mondial Australian Women’s Hardcourts on the Gold Coast at one state-of-the-art AUD$77 million venue – the State Tennis Centre, Tennyson. Scheduled for completion by the end of 2008, the State Tennis Centre will feature all three Grand Slam tournament surfaces – grass, clay and hard court.

Channelling funds back into tennis The TA management team derives much satisfaction knowing that we are investing directly into the heart of tennis thanks to our business performance, injecting funds into player development, talent identification and our National Academies. We are unwavering in our commitment to deliver the programs, the procedures and the policies that will achieve the results of excellence we strive for. We have seen exceptional progress in player development with Australia winning both the Junior Davis Cup and Junior Fed Cup finals. During the year we had 10 junior boys in the world’s top 100 and five in the top 20, including 15-year-old Bernard Tomic, who won the Australian Open Boys’ Junior Singles title. Jessica Moore was a finalist in the Australian Open Girls’ Singles and continues to be a stand-out prospect while Casey Dellacqua broke into the women’s top 40 and is now a household name. In the pro ranks, we have 16 players ranked in the top 250 – up from nine in 2004.

EventsCo is a new business unit formed in early 2008 to focus on raising the profile of the AO Series events.

The Brisbane International will take place at a new state-of-the art venue – the State Tennis Centre, Tennyson.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

We won a third consecutive gold award for our Annual Report and tennis was named the number one sport of interest by Sweeney Sports research.

Economic climate TA reserves were affected by the global economic downturn and, as market conditions became increasingly difficult, led to an adverse affect on our business and overall Company performance. While handsome returns were made from investments in managed funds in 2005–2006, these investments performed poorly in 2007–2008, as they did worldwide. The negative outcome of these investments has been a key contributor to the overall performance of the Company for 2007–2008. p15

Highlights One of the highlights of the past year was delivering the greatest AO ever, with recordbreaking achievements across attendance, TV viewing and website visits. We won a third consecutive gold award for our Annual Report and tennis was named the number one sport of interest by Sweeney Sports research. We now have a better tournament and competitions calendar, a stronger and far-reaching high performance program and four world class events held in some of the best sports facilities in Australia. The progress we have made allows our sport to move forward with confidence. TA’s number one priority is to continue the growth of our business so that we can sustain investment back into the game and achieve the result of excellence we strive for.

We are unwavering in our commitment to deliver the programs, the procedures and the policies that will achieve the results of excellence we strive for. The winning 2007 Optus Australian Junior Davis Cup team (l to r:) Mark Verryth, Bernard Tomic, Alex Sanders and Peter Tramacchi (team captain).

World class team In closing, I would like to thank everyone at TA who has helped build a world class team and contributed to our phenomenal growth. To TA President, Geoff Pollard, the Board of Directors, MAs, stakeholders, volunteers and the TA team – congratulations on a stunning 12 months. We now have a truly integrated business, which is the AO event and Tennis – the sport – linked together and driving us towards becoming the greatest tennis nation on the planet.

Steve Wood CHIEF EXECUTIVE OFFICER

Kia Motors Corporation re-signed as Major Sponsor of the AO until 2013.

Chief Executive Officer’s report continued

Finance, Legal and Administration report DAVID ROBERTS

0708 BIOGRAPHY

Our new ‘dashboard’ style reporting dramatically improved reporting to our Board of Directors, with information graphically presented against their targets.

B.Bus, CPA

Chief Financial Officer TA since 1997 Kraft Foods Ltd Group Treasurer, 1990–1994 Co-founder, Direct Marketing Agency, Robe John Associates 1987 David holds life membership at Melbourne’s Caulfield Cricket Club, with 35 years involvement as a player, Secretary and later, President. As a teenager he played bass guitar in a rock band and travelled around Europe in a VW Kombi van for 18 months in 1976–1977 and the US and Canada for six months in 1980.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Our team undertook a range of projects that contributed to the significant revenue growth of the Company and helped increase efficiency in the delivery of our services. The Anti-Corruption Program was in place for the first time at AO 2008.

Tennis Australia’s (TA) Finance, Legal and Administration business unit is responsible for managing TA’s financial accounts and investment portfolio and implementing TA’s shared services program. The business unit also provides legal advice and assistance to protect the Company’s interests and minimise risk. Following IT’s expansion into a separate business unit, the Legal department merged with Finance and Administration to form a new business unit. Our business unit undertook a range of projects that contributed to the significant revenue growth of the Company and helped increase efficiency in the delivery of our services.

Improving shared services During the financial year, we continued to expand TA’s shared services initiative with the implementation of additional accounting, payroll and HR platforms across our Member Associations (MAs). The initiative included the roll-out of the Microsoft Dynamics Great Plains (MDGP) accounting system into all eight MAs and the Meridian payroll system into three MAs around Australia. Subsequently, the initiative was further enhanced by the consolidation of the accounting and payroll functions of four MAs into the TA office. With the introduction of these systems and the consolidation of administrative functions, efficiency for TA and its MAs has been greatly enhanced and the business unit’s progression towards a stronger and more robust national finance infrastructure has been accelerated. p46

Graphical dashboard reporting Our new ‘dashboard’ style reporting dramatically improved reporting to our Board of Directors, with information graphically presented against their targets. The reports deliver more concise, relevant and accurate information to Board Members, enhancing their ability to discharge their duties. p47

Maintaining the integrity of tennis For Australian Open (AO) 2008, TA established an Anti-Corruption Program, the first of its kind to be implemented at a Grand Slam event. TA’s Legal department engaged external professional security consultant Calibre International, who assisted in the development of the program and assisted in administering the program. Key components of the program included the establishment of a hotline to report alleged incidents of corruption, sanctions for breaches of the policy, and the creation of an Anti-Corruption Commission. p48

Investment strategy TA’s Investment Advisory Committee, which is a sub committee of the Board of Directors, met twice during the year to oversee the Company’s investment strategy. TA’s managed funds remain invested with the same three fund managers – UBS Wealth Management, Macquarie Private Portfolio Management and BT Financial Group. p15

department with the appointment of an additional Legal Counsel and Legal Assistant in September 2008.

Agreements and advice During the financial year, the Legal department provided legal advice to all business units and prepared a range of agreements. Our Legal team worked closely with the Commercial business unit to prepare and draft new commercial contracts with existing partners as well as new partnerships. The department also assisted to re-write TA’s Constitution and amend the Company’s By-laws to streamline both documents and meet good governance standards. p48

Contract management The Legal department developed a contract management policy, which aims to ensure that all Company agreements receive formal legal approval prior to contracts being executed by a TA-authorised representative. The policy received approval from both TA’s Senior Management Team (SMT) and the Audit and Risk Committee. The initiative aims to reduce the likelihood of overlap between TA’s various business units’ contractual obligations and lessen the Company’s potential for legal exposure.

Online procurement TA introduced new procurement guidelines including an online purchase order approval system. This system offers significant improvements including the ability for staff to receive approval for purchases by email. p47

Legal department expansion The continued growth of TA’s business interests led to an increased demand for legal services across all business units within the Company. To meet this requirement, TA expanded its Legal

David Roberts CHIEF FINANCIAL OFFICER

Finance, Legal and Administration report

Marketing, Media and e-Communications report DIGBY NANCARROW

0708 Tennis has become the sport of choice for Australians.

BIOGRAPHY AO 23 years TA Director of Marketing since 2005 Founder Nancarrow Marketing Company Digby has worked across Asia, America and Australia managing and leading global brands such as Coca-Cola, Phillips, Nestles, BMW and GM. He is an Arabian horse breeder and the father of five daughters. His association with the Australian Open began in 1985 when he masterminded the campaign, Clash of the Titans.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007â&#x20AC;&#x201C;2008 Annual Report

Greatest Australian Open The Australian Open brand grew dramatically whereby it achieved the following in January 2008: · The biggest single day Grand Slam attendance ever in the world at 62,885. · Record attendance for the total event of 605,735 – up from 554,858 the previous year. · Record attendance at live sites in Shanghai, Sydney and Melbourne to a total of 1,387,338. · Record global television audience 1.9 billion reach. · Record website response: 7,456,693 unique users to australianopen.com, up from 4.7 million in 2006–2007. · Top nine out of 20 TV summer shows broadcast domestically were the Australian Open telecast. The whole world came to play at AO 2008.

Tennis No.1 Tennis Australia’s three major brands – Tennis – Australia’s Favourite, the Australian Open – the Grand Slam of Asia/Pacific and the AO Series – have grown dramatically in the past year to the point where tennis has become the sport of choice for Australians. Independent research by Sweeney Sports conducted in 2007–2008 identifies tennis as the sport people are most interested in, coming from third position in over 17 years. Tennis also moved to the number one spot as the sport people want to watch most on television.

Turning blue Following the contemporisation of the AO logo, the AO brand turned blue – from the colour of the new Plexicushion courts at Melbourne Park, to television network graphics, programs, precinct signage, and a range of merchandise in the re-branded AO Shop. This vibrant blue served to re-energise the brand and provided great synergy for the theme of the 2008 tournament – Where the World Comes to Play. Dressed in tennis outfits that contrasted perfectly with the blue courts, the world’s best tennis players were beamed across TV screens worldwide giving rise to stunning visuals across all media. Even the retractable roofs at Rod Laver Arena and Vodafone Arena sparkled with blue lighting during night sessions. We are now identified with the blue courts globally. This distinguishes us and raises our status as a Grand Slam nation.

Australian Open Series The AO Series is in the process of rapid development as TA takes over management of the new Brisbane International, the Hobart International and Medibank International Sydney, which are all part of EventsCo. p20 These AO Series tournaments are poised to turn a profit in the coming years, strengthened and contemporised in line with the ‘mother’ brand. During the first six months of 2008, the Marketing department met with tournament organisers to formulate a unified marketing, media and communication strategy for the AO Series.

Focusing on our purpose The Marketing department was reformed during the course of 2007–2008 after completing major broadcast contracts including the renewal of the Seven Network as domestic rightsholder, host broadcaster and world feed provider, and other major sponsors such as Kia Motors, Garnier and Tourism Victoria. These revenue streams, including merchandise and ticketing, are now housed in the separate Commercial business unit, headed by John Clark. p26, 57 The Marketing department’s focus is now fully centered on brand awareness and developing customer relationships through Marketing, Media and e-Communications. The primary role of Marketing is to ensure we communicate with our customer base, to which end AO Membership moved into the business unit.

Towards alignment Together with Human Resources, Marketing also focused on achieving alignment of TA’s purpose: to become the greatest tennis nation on the planet. Our activities centred on getting a wide range of internal and external stakeholders in the tennis community engaged with

the common goal of making the image of tennis in Australia more relevant and more compelling. We have done this in a number of ways: through regular staff communication sessions led by CEO Steve Wood and a chic AO launch in October 2007, to reveal Rod Laver Arena’s new blue centre court. TA staff members were the first to have a hit on centre court, invited to a historic in-house session conducted during lunch. p63 To celebrate the record-breaking AO and visual transformation of the precinct, e-Communications – which delivers online and offline products – released a picture book titled Blue as a celebration of what we had achieved. This was distributed to all TA staff in May, presented as a gift to corporate clients and sponsors, and sold through the AO Shop.

Growing our numbers Our focus continues to be on communicating openly and in a collaborative manner with all our stakeholders. We continue to build our position as the Grand Slam of Asia/Pacific by becoming the most watched Grand Slam tournament in the region, by conducting major marketing campaigns across Asia, including the Shanghai AO live sites, and through the exploration of further business relationships in Asia. The next challenge is to grow attendance at our events in ever increasing numbers and provide an additional entertainment that attracts more people to our major events.

Digby Nancarrow DIRECTOR MARKETING

Marketing, Media and e-Communications report

Commercial report JOHN CLARK

0708 BIOGRAPHY B.Bus Sport Management & Marketing

General Manager TA since 2006 General Manager Commercial Operations MCC 2001–2006 Marketing Manager MCC 2000–2001 Commercial Manager Skiing Australia 1996–1998 John grew up in Tongala, country Victoria, and ran the family’s agribusiness for 15 years before returning to university (Deakin) as a mature-aged student. The family’s horses have won numerous world championships including Olympic Gold medals in three-day eventing in 1996 and 2000.

YEARS WITH TA

Commercial’s sole focus is the continued growth of these core revenues to provide funds that are then invested into the expansion of tennis.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Broadcast overall was a huge growth area with AO 2008 having an incredible global audience reach of 1.9 billion.

Ground pass tickets remained the same price for AO 2008.

Such was the sustained growth of the core revenue sources of our business that in October 2007 the Commercial business unit moved out of what had previously been the Marketing, Media and Sales business unit.

We entertained approximately 80,000 corporate clients at AO 2008 with 48 per cent taking up various dining options. p60

Commercial’s departments include Merchandise, Broadcast, Sponsorship, Corporate Hospitality, and Ticketing and Tourism. The more concentrated focus has already paid a dividend with all areas exceeding their metric from the previous year.

The devoted fan

Commercial’s sole focus is the continued growth of these core revenues to provide funds that are then invested into the expansion of tennis.

Merchandise rise After the restructure of Merchandise in 2006–2007 a team of expert managers, planners, buyers and retailers was appointed and this secured a 25 per cent increase in sales. The strength of the Tennis and Australian Open (AO) brands enabled us to license our range to Target department stores nationally and Target will stock the AO 2009 range exclusively for the first time. p60

Long-term broadcast agreement The obvious highlight was a new long-term multi-level agreement with our domestic rights holder, the Seven Network, which gives them free-to-air, new media and subscription television rights until AO 2014. The new deal continues one of the most enduring and successful partnerships in Australian sports broadcasting that dates back to AO 1973. Broadcast overall was a huge growth area with AO 2008 having an incredible global audience reach of 1.9 billion. p59

Sponsorship renewals The Sponsorship department embarked on an intense period of negotiation with 10 key sponsorships due for renewal at the end of 2007. This process was one of the major challenges for the team with major sponsor contracts including Garnier, Optus, Qantas and Evian up for renewal. At the end of these negotiations an impressive nine of 10 sponsors renewed for 2008 with MasterCard taking the place of American Express as official card of the AO. We also added to our suite of global brands with the signing of Rolex just prior to AO 2008 as the official timekeeper and time piece provider for the event. Undoubtedly one of the highlights of the year was the re-signing of another true global brand, our major sponsor Kia Motors Corporation. The new agreement extends a wonderful and mutually beneficial relationship through to AO 2013. p57

Corporate success Our Corporate Hospitality program is well received in the market and the AO has become an event to be seen at. We have appointed four official hospitality agents and are looking to expand our international business.

We had an incredible record attendance of 605,735 – smashing the previous year’s attendance by more than 50,000. Our Ticketing and Tourism department devised new ticketing and pricing strategies to address the ongoing challenge of meeting the demand for value-for-money ticketing options with the need to maximise revenue for reinvestment in tennis. p59 Ground pass tickets remained at the same price for AO 2008. One of the initiatives introduced this year was the five-day non-consecutive ground pass, giving fans the opportunity to come along on any five days of the tournament and enjoy tennis, live bands and entertainment for AUD$99.00.

Commercial outlook Our major focus over the next 12 months will be to examine the whole commercial structure and develop strategies that can take us to the next sphere. We are currently at the growth stage and need to move on to the development phase. We will continue to strive and dare to be different in order to provide the consumer with a product that will provide a lasting impression and ensure a powerful loyalty to both the AO and Tennis brands.

John Clark GENERAL MANAGER COMMERCIAL

Commercial report

Human Resources report RAELENE TURNER

0708 BIOGRAPHY Grad Dip Bus. HR Management

General Manager Human Resources TA since 2006 National HR Manager Royal Australian College of General Practitioners 2004–2005

Ultimately, we’re enabling our people to maximise their personal and professional contribution to the business.

HR Manager Nine Network Melbourne 2000–2003 Workers Compensation Manager Crown Ltd 1996–2000 Raelene has worked across a range of dynamic and high profile organisations. Balancing a career and family, she completed post graduate studies in her field of passion – HR. She was part of the opening of Southbank’s Crown Casino – the largest single site employer in the southern hemisphere – and enjoyed many laughs with TV legends, Lou Richards and Pete Smith. Family highlights include backpacking around Europe with her husband and two children.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Talent management has emerged as the number one issue across the world facing companies: how to recruit and retain the best people. A popular benefit of working at TA is lunch-time tennis workouts.

Towards alignment

Visioning

The over-arching goal of Human Resources (HR) is to ensure the Tennis Australia (TA) team is fully engaged and aligned behind the purpose, formula, promise and strategy as outlined in the Purpose Pyramid. p2–3 In 2007–2008, HR strove to achieve this by implementing better processes and systems, through improved communication across the Company, by developing stronger and more consistent leadership, and by providing a more stimulating and enjoyable work environment. This will continue to be our focus in the coming year.

The Employee Engagement Project reported that some staff were unclear about TA’s vision. As a result, SMT went off site to a facilitated strategic forum and developed the Purpose Pyramid. p2–3

Employee Engagement Project HR undertook a survey of all TA staff in 2007–2008 – the Employee Engagement Project – with Hewitt and Associates. This took the form of focus groups, employee communication sessions and feedback forums. The Senior Management Team (SMT) set about addressing those top-ofmind issues which directly contribute to employee engagement. p64 Major themes identified were around: • Leadership • Communication • Systems and processes.

Getting it right In response to the feedback requesting improved leadership, TA embarked on the Leadership Development Program, Empowering our Leaders for Success the Tennis Australia Way. The first program included all managers of TA, from middle management through to supervisors. We have conducted three programs to date, two within TA and one with managers from Member Associations (MAs). A spin-off has been our mentoring program, where graduates of the Empowering Our Leaders for Success program are buddied with graduates of the next program. Case study p67

Communications Addressing the need for improved communication across the Company, HR developed an online induction system through iLearn, which was launched before the Australian Open (AO). In future, all new TA staff and eventually MA staff will participate in an online induction on their first day. We continued with monthly drinks and morning teas to celebrate employee occasions, welcome new starters and farewell those leaving the Company. CEO Steve Wood and SMT leaders also took part in regular employee communication sessions, such as that conducted at the Melbourne Cricket Club on 13 March to launch the new strategic plan and Purpose Pyramid, including TA’s vision of becoming the greatest tennis nation on the planet. Staff were also polled on preferred charities TA should support, with Beyond Blue getting the most votes. TA’s official charities are Beyond Blue, the Kids Tennis Foundation, United Way and the Bone Growth Foundation.

We have since focused on improving the effectiveness of the SMT and ensuring a common understanding and communication of the strategy. This has translated into clear operational plans. The Professional Development Review (PDR) process has since been revised with departmental and individual KPOs and KPIs linked to business objectives outlined in TA’s Strategic Plan.

Employee growth TA reached 145 full-time staff members at the end of the financial year, where two years ago the Company had 101 employees. p67 There are growing career opportunities across the Company and quite a few employees have moved into different areas. Talent management has emerged as the number one issue across the world facing companies: how to recruit and retain the best people, and how to develop and engage them strategically to achieve a true competitive edge. This drives all that we have done in HR and all that we are planning to do: creating better systems, improving communications, stronger and more consistent leadership and a stimulating, enjoyable work environment. Ultimately, we’re enabling our people to maximise their personal and professional contribution to the business.

Raelene Turner GENERAL MANAGER HUMAN RESOURCES

Human Resources report

Tennis and Australian Open report CRAIG TILEY

0708 BIOGRAPHY Tournament Director TA since 2005 Director Tennis since 2006 Head Coach/Director of Tennis, University of Illinois 1999–2005 Captain South African Davis Cup team 1998–2001 Vice-Chair USTA’s High Performance Committee Academic degrees in Sports Science, Kinesiology and Business Administration US National Coach of the Year award (twice) Craig comes from a sporting family that includes a professional boxer and professional yatchmen. Craig completed two years of military service in South Africa which included nine months of officer’s training. Hobbies are sailing, coaching and corporate speaking.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

T-12 is the Tennis business unit’s blueprint of strategic priorities and key performance indicators that will guide our activities over the next four years.

We have a surface that now rewards good shots, is environmentally sustainable and remains consistent in pace and performance. The Plexicushion courts were unveiled at the AO launch in October 2007.

During 2007–2008 the Tennis business unit continued with its Tennis 2010 strategy, also known as T-10. We had specific metrics against each of our strategies for the next three years. In February, the Senior Management Team (SMT) attended a strategy workshop p2–3 and extended our focus to Tennis 2012, redefining our strategies to fit into the Company’s overall formula for success. T-12 is the Tennis business unit’s blueprint of strategic priorities and key performance indicators that will guide our activities over the next four years. The Tennis business unit is divided into four departments. These are: Community Tennis, Tournaments and Competitions, Coach Development and Athlete Development.

Increase in investment Not only have participants seen an increase in prize money at the Australian Open (AO), but Australian Money Tournaments (AMTs) and Pro Circuit Events have also seen an increase in investment. The total prize money was more than AUD$25 million in Australia including the AO, AO Series, Pro Circuits and AMTs. We also invested over AUD$3 million to develop more than 200 new courts through the Tennis Australia (TA) National Court Rebate Scheme. p84

Improved player development We completely overhauled the player development pathway by eliminating the governance and unnecessary roadblocks in the development of players. The player development pathway now has clear entry and exit points and we have overturned the philosophy from one of athletedriven programs – where direct handouts were the norm – to one of coach-driven, athletecentred programs where our investment is in athlete training and competition opportunities. TA is committed to the development of world-class training opportunities and an increased number of quality competitions. A complete system of accountability has been created through the establishment of objective scholarship criteria, where athletes qualify themselves based on ranking, results and participation.

Plexicushion success The new AO Plexicushion surface received wide acclaim from players and clubs throughout the country. We have a surface that now rewards good shots, is environmentally sustainable and remains consistent in pace and performance. This transformation was a resounding success and led to investment in tennis courts at clubs around Australia. With 272 courts resurfaced in the past 12 months, it appears Australian clubs are eager to adopt this state-of-the-art, environmentally sustainable court surface. The National Court Rebate Scheme has been developed to support all the Grand Slam surfaces including natural grass, clay and hard courts. p84

Talent progress We are well on our way to identifying talented athletes and offering the world’s leading athlete development environment. All 24 players in the AIS Pro Tour Program reached career high rankings in the past year. Specific highlights include Casey Dellacqua with a career high ranking of No.41, Chris Guccione with a career high ranking of No.67 and Sam Stosur back in the top 100 after just six events in 2008. Younger players such as Jessica Moore, Greg Jones, Brydan Klein, Robert Smeets, Carsten Ball and Sam Groth have improved their ATP or WTA rankings by an average 400 spots. Under our original criteria, the AIS Pro Tour Program has also grown from three athletes to now include 24 athletes with 12 full-time coaches. We have reversed the downward trend in players’ rankings and now have the highest number of top 250 players since 2002. p33 In the juniors, we have had AO winners, AO and French Open finalists, 14/u champions and Junior Davis Cup and Junior Fed Cup champions. We have introduced a new Talent Search program, which has identified 2706 kids. We have created five National Academies (NAs) in the metropolitan areas, designed to provide world-class training for full and partial scholarship athletes. These academies are led by national coaches and a fully integrated sport science team. continued over Tennis and Australian Open report

Tennis and Australian Open report continued

Not only have participants seen an increase in prize money at the AO, but Australian Money Tournaments and Pro Circuit events have also seen an increase in investment.

Chris Guccione trains at the AIS in Canberra.

Having the best coaches In developing, attracting and retaining the best coaches, we continue to accomplish further growth and development. We introduced Tennis Australia Coach Membership, which has gone from zero to 1637 members. We were also the first nation to receive an ITF endorsement for our Coach Education structure. There has been a 65 per cent increase in the number of courses offered in Junior Development, Club Professional and High Performance. Five coach development coordinators were appointed and each resides in one of the major metropolitan areas. We announced an annual Grand Slam Coachesâ&#x20AC;&#x2122; Conference and the Coach Development department produced valuable coaching resources such as the long-term Athlete Development Matrix and a coaching DVD outlining the technical and tactical fundamentals.

Competition environment We continue to offer the best competition environment for developing champions. There were 18 AMTs and 22 Pro Circuit events. In 2008 we also offered 141 junior athlete opportunities on 23 international tours.

The Wonderful World of Tennis Presents Tennis Australia 2007â&#x20AC;&#x201C;2008 Annual Report

At AO 2008 we introduced more than 70 initiatives and defined a 10-point player experience that will maintain and grow the tournament’s position as the players’ favourite Grand Slam.

20 16

11 10 9

9 10 11 9

30 June

8 9 9 8 8

8 10

5 6 5 4 4 4 3 3

TTOP 250 T TOP 100

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Table 1.2 Progress of Australian player rankings as at 30 June 2008.

Community development Our initiatives in infrastructure continue to deliver excellent results. We have invested more than AUD$3 million in our National Court Rebate Scheme that has resulted in more than 200 new or redeveloped tennis courts nationwide. Over 130 business plans and 125 government grants have been approved. The Melbourne Park community tennis facility has increased its year-round occupancy from 18 to 35 per cent. We have created cost effective services for clubs with the establishment of a facility blueprint and design service. In January, we also re-launched the Aviva Tennis Hot Shots program, which is now delivered at more than 280 venues and continues to grow. p79

World class events Through the AO Series we have created a lead-in to the AO with consistencies and commonalities across all events and we have also created a commercial model for their operation to ensure future AO Series events are profitable. In 2009, the new Brisbane International will be held at the AUD$77 million State Tennis Centre, Tennyson in a combined men’s and women’s event. The Medibank International Sydney will have initiatives in place to deliver an even better tournament and the Moorilla Hobart International will continue to be solely a women’s event.

At AO 2008 we introduced more than 70 initiatives and defined a 10-point player experience that will maintain and grow the tournament’s position as the players’ favourite Grand Slam. AO 2009 will see a brand new player restaurant and player gym that will once again provide players with a quality service. This is an exciting time for tennis in Australia. We have a committed team delivering the sport of tennis and we are working tirelessly toward a clearly defined strategy with measurable targets. Change never guarantees overnight results. Together with the Member Associations (MAs), we have made great strides, but we still have a way to go. However, our future is bright. In Australia, we have the passion and drive to make success happen.

Craig Tiley DIRECTOR TENNIS AND AUSTRALIAN OPEN TOURNAMENT DIRECTOR

Tennis and Australian Open report continued

Operations report SARAH CLEMENTS

0708

Our team maintained its commitment to developing a process for continuous improvement to set standards of excellence across Tennis Australia’s major events.

BIOGRAPHY Since 1991: AO Tournament Assistant, Tournament Coordinator, Executive Assistant, Tournament Administration Manager, Operations Manager, General Manager Operations TA Receptionist, Advertising Coordinator Vogue Living Advertising Coordinator, Retail Advertising Executive Vogue Australia 1987–1991 Sarah arrived in Australia in 1981 having lived in Zambia, Botswana and Malawi. Her parents spent 30 years in Africa pioneering and mapping unknown territories for the British Government.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

One of the biggest challenges our unit has ever faced was a move to the new Plexicushion court surface and introduction of the new official blue court colour. The new blue court at Melbourne Park.

Tennis Australia’s (TA’s) Operations business unit comprises four key areas: Site and Facilities, Event Operations, Access Control and Operations and Events Administration. The business unit has a large portfolio of responsibilities and is in the unique position of working intimately with all of TA’s business units to deliver the Company’s strategic priorities, with a primary focus on delivering the Australian Open (AO).

Delivering world class major events The Operations business unit had another successful year highlighted by the delivery of the record-breaking AO 2008. The tournament set crowd records with attendance figures reaching an all-time record of 605,735 patrons. Our team maintained its commitment to developing a process for continuous improvement to set standards of excellence across TA’s major events.

Challenging change to blue AO 2008 brought one of the biggest challenges our unit has ever faced with a move to the new blue Plexicushion court surface. The colour change was part of a major push to create the best possible playing conditions for players. It was a 12-month project that required a huge amount of effort and included an upgrade of all court equipment to move in line with the new brand and to meet the needs of stakeholders including players, fans, officials, sponsors and media. p89

Improving the customer experience AO 2008 also saw the introduction of more than 70 initiatives that revitalised the event and saw an enhancement in all customer experiences at the tournament. The most notable initiatives included an early start to the AO qualifying event, new chair umpire palm scoring systems, ticketing of Vodafone Arena, revised heat policy and the improvement of player practice service desks. p89

Events Operating Plan TA completed the first draft of an AO Event Operating Plan that provides the Company with a comprehensive guide and framework for the delivery of the event. This was designed to ensure a consistent approach and a clear outline of approved operating procedures and principles is achieved. The draft will be reviewed early in the new financial year with plans to release the final version in late 2008 and soon after that assist with generating individual plans for all AO Series events. p90

Restoring Melbourne Park to world class status TA stepped closer toward achieving its Melbourne Park Master Redevelopment Plan after the Victorian Government announced an AUD$2 million investigation into upgrading the Melbourne and Olympic Parks Trust (MOPT) precinct. p91

Player experience As outlined in the Finance, Legal and Administration section p49 TA began the first phase of a facility upgrade at Melbourne Park. The upgrade was part of a move to enhance the player experience at the AO with the construction of a new player restaurant for 2009.

Stakeholder coordination A high turnover of staff in a number of our stakeholder groups required additional stakeholder coordination and integration from our staff throughout the year.

Looking ahead Moving forward, TA has created a new business unit – EventsCo – to focus solely on the role of delivering bigger, better and more tennis events. We look forward to assisting the new unit and contributing to the continuous improvement of the delivery of all TA major events. We will also deliver more initiatives at AO 2009 including enhanced on-site entertainment, night sessions on Hisense Arena (formerly Vodafone Arena) and a new player restaurant.

Managing international team competition During the year the Operations business unit conducted one home Davis Cup tie, two away Davis Cup ties, one home Fed Cup tie – the first in four years - and one away Fed Cup tie, with mixed results. p91 Sarah Clements GENERAL MANAGER OPERATIONS

Operations report

Information Technology report CHRIS YATES

0708

The IT business unit underwent a challenging reorganisation and restructure to build a team of IT specialists.

BIOGRAPHY B.Sc Ph.D reproductive biology Chief Information Officer TA since 2007 IT Consultant Unisuper, Rio Tinto, AIG 2006–2007 IT Consultant CSTIM, Price Waterhouse Coopers 2006 CIO George Patterson Partners 2002–2005 Andrology Scientist Monash IVF 1983–1991

Chris studied science at Monash University and completed a doctorate in the use of artificial reproductive technologies for the treatment of male infertility while working as a laboratory manager at Monash IVF. He saw the Monkees live at their only Australian concert and was a waiter at Shane Warne’s wedding. He has a ‘serious weakness’ for Rickenbacker and Taylor guitars and plays rhythm guitar and the ukulele.

YEARS WITH TA

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

One of the strategies of Tennis Australia is to invest in the game and to continually improve the infrastructure to support tennis nationally at all levels. Technology is a crucial requirement for all employees.

Information Technology (IT) became an independent business unit in November 2007 to focus entirely on the technological requirements of Tennis Australia (TA). Previously, IT was part of the Finance, IT and Administration business unit but, with the continually increasing reliance on technology within tennis, it was decided that a separate and more focused approach was required. TA had previously engaged IBM to conduct an extensive Business Systems Review on IT and it was concluded that restructuring and an expanded set of skills was required to further develop the growing IT needs of the Company. As such it was decided to recruit a Chief Information Officer, who would sit on the Senior Management Team (SMT), and have a transition plan created to move TA to a more applicable IT environment.

Maximising IT potential To address some of the issues raised in the IBM review, the IT business unit underwent a challenging reorganisation and restructure to build a team of IT specialists that are introducing new procedures and designing the new IT architecture. IT is now structured specifically to address infrastructure, desktop development and key projects. These areas are coordinated to take a holistic view as to how they can be better managed. IT also transitioned to view tennis not only as a sport, but tennis as a major community and a key role of the unit is to make the technology transparent and the transition to new software or hardware as simple and straightforward as possible. One of the key tenets is to ensure that the technology is invisible and does not get in the way of the tennis but rather enhances it.

National network One of the strategies of TA is to invest in the game and to continually improve the infrastructure to support tennis nationally at all levels. For TA to function effectively as a national institution, it is critical that IT delivers substantial services nationwide and strongly supports the Member Associations (MAs). The 2007â&#x20AC;&#x201C;2008 financial year saw the completion of the TA national network. p98 This included a major upgrade to the internet connections between TA and MAs, incorporating the expansion of the TA Voice over IP telephone system and a significant network security upgrade. This national network now allows all the MAs to be connected on the same system and, as a result, links TA and all other MAs with both phone systems and data. During this project, IT also took the opportunity to upgrade servers in Queensland and the ACT and will upgrade servers for all of the MAs in the second half of 2008. While the server upgrades take place, IT will fine tune desktop machines in all states and significantly improve the ability to support the MAs remotely. However, to ensure that support is maintained at a high level throughout Australia, a policy has been introduced that guarantees that each of the state offices is visited at least twice a year by IT.

Service desk As the size of TA grows, the need for a more professional service desk grows and, with this, the introduction of established guidelines in using the IT services has been introduced. While in place before, the IT Service Desk has been revisited and restructured and is undergoing a continuous improvement process. The number of staff working on the Service Desk has been increased as the general staff requirements have continued to increase with the more pervasive use of technology. Regardless of the improvements that have been made, there is still a high level of demand and, as such, improvements to the Service Desk area have been put in place, with the management of the desktop environment falling under this area. This has led to the introduction of a Standard Operating Environment (SOE) p94 which has made the desktops far more stable. A new Service Desk system was installed in the second half of 2008 which has been significantly improved to monitor and respond to issues. The exciting experience of AO 2008 has presented IT with a huge number of opportunities and we look forward to AO 2009 where we will once again raise the quality of IT services and support.

Chris Yates CHIEF INFORMATION OFFICER

Information Technology report

Tennis Australia’s historical timeline

0708

dates

1. Rod Laver 2. Davis Cup 1999

1880

Victoria stages first tennis championships in the Colonies.

3. Woodies gold

1885

NSW stages its first championships and introduces Inter-Colonial matches.

4. Margaret (Smith) Court

1904

Lawn Tennis Association of Australasia formed by six State Associations and New Zealand.

1905

First Australasian Men’s Championships staged.

1907

Norman Brookes first Australian to win Wimbledon.

1907

Australasia wins its first Davis Cup.

1922

First Australasian Women’s Championships staged.

1926

Name changed to Lawn Tennis Association of Australia, Sir Norman Brookes becomes President.

1933

Jack Crawford wins the Australian, French and Wimbledon Championships. He reaches the final of the US Championships and the term ‘Grand Slam’ is coined.

1939

Australia wins its first Davis Cup title.

1950

Australia regains Davis Cup and Hopman golden era begins under captain Harry Hopman.

1962

Rod Laver wins the Grand Slam. Inside back cover

1967

Australia wins Davis Cup for 15th time in 18 years.

1969

Australian Championships become ‘Open’ to both amateurs and professionals and Rod Laver becomes the only player to win the Grand Slam twice.

1970

Margaret (Smith) Court wins the Grand Slam. (See 4 left)

1972

Kooyong, Victoria, adopted as the home of the AO.

1988

Tennis Australia (TA) and the Australian Open (AO) move to new permanent home at Flinders Park (now Melbourne Park).

1994

Board of Directors established separate to Council.

1996

AUD$25 million expansion of Melbourne Park facilities.

(See 1 above)

1996

The ‘Woodies’ win first Olympic tennis gold medal. (See 3 above)

1999

Australia wins Centenary Davis Cup in France on clay. (See 2 above)

2000

AO attendance exceeds 500,000 for the first time.

2001

Second arena at Melbourne Park opened with retractable roof.

2003

Australia wins 28th Davis Cup title, beating Spain in Melbourne.

2005

TA splits the roles of President and CEO.

2006

All decision-making powers transferred from Council to Board.

2007

TA undertakes review of its Constitution.

2008

AO attendance exceeds 600,000.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Tennis Australia Governance

0708

The Board of Directors is responsible for guiding and monitoring the Company, its strategic direction, setting its goals for management, and monitoring its performance. Corporate Governance statement

Tennis Australia Board

Office Bearers, Life Members, Service Awards and Committees

Director Bill Beischer at a TA Board meeting. Tennis Australia Governance

Corporate Governance statement TA – the Company and Governance structure Tennis Australia (TA) is a not-for-profit Company limited by guarantee and registered in Victoria. The Company’s purpose is to control the game of tennis in Australia and to grow, manage, promote and showcase the game of tennis domestically and represent Australia’s tennis interests internationally. The Australian Open (AO), which is the Grand Slam of Asia/Pacific, is owned and organised by TA each year at Melbourne Park. The Members (shareholders) of TA are the six state and two territory tennis associations also known as the Member Associations (MAs). The Annual General Meeting (AGM) of TA was held on 29 October 2007. In addition, the Company met twice in Special General Meetings (SGM) to consider items specifically reserved for members (loans to a MA and proposed Constitution changes). All other decision-making powers rest with the Board of Directors.

TA significant changes TA continued the significant development in Corporate Governance reform as outlined in recent Annual Reports. On 1 October 2007 the Board exercised its option, as provided under the Constitution, and appointed two additional independent Directors, Chris Freeman and Scott Tanner. With these additions, the Board achieved the objective of a majority of independent Directors with no involvement at MA level. At the AGM on 29 October 2007 the members adopted a new Constitution which changed the name of the Association from the Lawn Tennis Association of Australia to Tennis Australia (previously the trading name) and adopted a new modern Constitution. In a SGM on 24 January 2008, the Members agreed to the principle that over the period 2010 to 2012 the number of Directors with some involvement at MA level would gradually decrease so that by the 2012 AGM any person appointed a Director of TA and holding some position at MA level will be required to resign from that MA position. The formal Constitution changes will be presented at a forthcoming SGM.

Des Nicholl, David Stobart and CEO Steve Wood take part in a Board meeting.

Composition of the Board of Directors The Board comprises nine Directors appointed at the AGM using its provision to appoint two additional Directors in October 2007. Under the new Constitution adopted by the AGM in October 2007, all other seven Directors will resign at the 2008 AGM, but may seek re-election. The President (Chairman) and the six other Directors, three of whom can be members of MAs and three of whom must be independent of MAs, will be elected for staggered two year terms (that is, initially half will be elected to 2009 and half to 2010). However, there is also a requirement that any Director who has served for at least eight consecutive years will be required to seek re-election annually. The Board elected Des Nicholl to serve as Vice President/Deputy Chairman for a two year term 2006–2008.

Activities of the Board of Directors The Board of Directors is responsible for guiding and monitoring the Company, its strategic direction, setting its goals for management, and monitoring its performance against these goals on behalf of the MAs. The Board met nine times during the year and received reports from the Chief Executive Officer (CEO) and other members of staff where appropriate. The names and qualifications of Directors are shown on p43 and a record of attendance at the nine meetings held during the year and other relevant data for the Directors is shown in the Directors’ report. p100 The Articles permit re-election, and all Directors whose terms of office had expired were re-elected.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

The responsibility for the management and administration of the Company is undertaken by the CEO, who reports directly to the Board.

Rod Laver Arena lights up during AO 2008.

Reviewing the performance of TA’s Board of Directors The Board continued to implement the recommendations included in the KPMG Performance Review of the Board referred to in last year’s Annual Report. A new Constitution was adopted by the 2007 AGM and further changes recommended by the Board have been approved in principle by the Members for presentation at the next AGM. In November 2007 the Board adopted a Charter to clearly specify the duties and operations of the Board. The Board also adopted similar Charters for each of its Committees. In particular the Board has engaged in a process of self-assessment and succession planning.

The role of the Chief Executive Officer (CEO) The responsibility for the management and administration of the Company is undertaken by the CEO, who reports directly to the Board. While it is primarily the responsibility of the CEO to ensure that suitably qualified and experienced personnel are retained, the Board is made aware on a continuous basis of any changes in key personnel and the quality of replacement staff to ensure that the Senior Management Team (SMT) is appropriately qualified and sufficiently experienced to discharge its responsibilities.

TA Audit and Risk Committee The Board has an Audit and Risk Committee of three non-executive Directors, which is chaired by the Vice President (Des Nicholl) and contains one Board Member who is a representative of the MAs (David Stobart) and one Board Member who is not a representative of the MAs (Chris Freeman who replaced Bill Beischer in December 2007). The role of the Committee is to assist the Board in discharging its responsibilities for financial reporting, risk management, maintaining an internal control system and addressing matters of Corporate Governance. The Audit and Risk Committee achieves this through overseeing the financial reporting process and interacting with management and the external auditors on behalf of the Board.

The Audit and Risk Committee, appointed by the Board of Directors, assists the Board to fulfil its oversight responsibilities relating to: • the preparation and integrity of TA’s financial accounts and statements • the internal controls, policies and procedures that TA uses to identify and manage business risks • the qualifications, independence, engagement, fees and performance of TA’s external auditor • the external auditor’s annual audit of TA’s financial statements • the resources, performance, and scope of work of TA’s internal audit function, if any • TA’s compliance with legal, regulatory requirements and compliance policies • reviewing the annual budget and making recommendations to the Board • reviewing the risk management system. The Committee met twice during the year.

continued over Corporate Governance statement

Corporate Governance continued TA’s Remuneration Committee Activities of the Nominations Committee TA’s Remuneration Committee consists of all nine members of the Board of Directors and is chaired by the Vice President. Apart from the President, no Director receives any remuneration from the Company. The Remuneration Committee determines matters affecting the terms and conditions of employment of the CEO and senior executives of the Company and oversees the Company’s normal salary review process. The Committee met twice during the year.

TA’s Investment Advisory Committee The Board has appointed an Investment Advisory Committee to assist the Board to manage its investment policy, monitor investment transactions and to invest funds. The Committee also has a responsibility to evaluate and monitor the risk factors within the investment environment, recognising the Board’s policy of risk aversion and its position as trustee of Members’ funds. The Committee consists of Peter Ritchie (Chairman), Des Nicholl, Scott Tanner, Geoff Pollard, Steve Wood and David Roberts, with provision for up to two people from outside TA appointed by the Board each financial year. No outside appointments were made during the financial year 2007–2008.

The Nominations Committee is chaired by the President and consists of all Directors and the CEO ex-officio. It met in Executive Sessions during Board meetings to discuss and recommend the new Directors appointed on 1 October 2007 and to discuss succession planning for the 2008 AGM and subsequent AGMs.

TA’s relationship with its MAs Although the MAs are shareholders of TA they are more involved in certain activities than normal company shareholders in that they implement many of TA’s programs and activities. The Board of Directors adopts a policy of continuous disclosure with shareholders with a phone call briefing to all MAs following each Board meeting and the circulation of the minutes to all MAs. Further, the CEO conducts regular meetings with the CEOs of each MA as does the Director of Tennis with High Performance Managers in each MA, and with Community Tennis staff at MA level. The Board and CEO meet at least twice a year with the MA Presidents and additional Member Delegates in a strategic planning forum.

Safeguarding the tennis community All Directors, Committee Members, selectors, executives, managers and employees are expected to adhere to a code of conduct, acting with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Company. They are required to declare any conflict of interest, perceived or otherwise, they may have in matters before the Board or Committees as appropriate. They may not vote on, or participate in the debate on, matters in which they have a conflict and, where appropriate, they must absent themselves from meetings featuring discussions and votes on that issue. As the only shareholders in the Company are the eight MAs, trading in company securities is not applicable. TA has a Member Protection Policy, an Events Disciplinary Policy and a TA Disciplinary Policy that protect all members of the tennis community. For further details see tennis.com.au.

Although the MAs are shareholders of TA they are more involved in certain activities than normal company shareholders in that they implement many of TA’s programs and activities. Alicia Molik is a strong supporter of TAs kids’ starter program – Aviva Tennis Hot Shots. 42

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Tennis Australia Board

Geoff Pollard AM (President)

Des Nicholl (Vice President)

MSc, AIA, FAIM, FAICD

FCA

Chairman, Tennis Australia (since 1989). Councillor, Tennis Australia (1978–2006). Vice President, Director, International Tennis Federation. Trustee, Melbourne and Olympic Parks Trust. President, Oceania Tennis Federation.

Councillor, Tennis Australia (1983–2003). Treasurer, Tennis New South Wales (since 1980). Chairman, Australian Dairy Corporation (1998–2003). Chairman, Australian Meat Processor Corporation. Fellow, Institute of Charted Accountants in Australia.

0708 Bill Beischer

Ashley Cooper AO (Qld)

Chris Freeman

Director, Tennis Australia (since 1993). Chairman, Vision Systems (1991–2005). Director, Pacific Dunlop (1975–1989).

President, Tennis Queensland (since 2004). Director, Tennis Australia (since 2004). Councillor, Tennis Australia (1998–2006). Director, Tennis Queensland (since 1997). International Tennis Hall of Fame (inducted 1991). Australian Tennis Hall of Fame (inducted 1995).

B.Com FAICD FAIBF FDIA

Andrea Mitchell (WA)

Peter Ritchie AO

David Stobart (Vic.)

Scott Tanner

B.PhysEd

B.Com, FCPA

B.Com

B.App.Sc, MBA

Director, Tennis Australia (since 1997). Councillor, Tennis Australia (1995–2006). President, Tennis West (since 1996). Manager, Regional services, Department of Sport and Recreation WA. Director, Hopman Cup (since 2001).

Director, Tennis Australia (since 2004). Director and deputy Chairman, Seven Network Limited (since 1991). Chairman, Mortgage Choice Australia Limited (since April 2004). Chairman, Reverse Corp Ltd (since 1999). Chief Executive and Chairman, McDonalds Australia Limited (1973–2001).

President, Tennis Victoria (since 2004). Director, Tennis Australia (since 2007). Director, Tennis Australia (since 2005). Director, Bain & Company, Inc. Director, Tennis Victoria (since 2000). Fellow, Australian Institute Chairman, Victorian Government of Company Directors. Manufacturing and Industry Consultative Council (since 2002). President, Beaumauris Tennis Club (since 1997). Trustee, Melbourne and Olympic Parks Trust.

Director, Tennis Australia (since 2007) Chairman, United Arab Emirates, United Kingdom and Queensland Mirvac (since 2008) CEO Mirvac Development for Queensland (since 1998) Committee member, Queensland Government’s Q150 Celebration Committee (Since 2007) Adjunct-Professor of the University of Queensland (Since 2006)

Member Delegates

Office Bearers

MAs are represented by the following delegates at TA’s AGM and at strategic forums.

Steve Wood (Chief Executive Officer) B.Bus

David Roberts (Company Secretary) B.Bus, CPA

Vic. David Stobart Geoff Stone

Qld Ashley Cooper Ian Rodin

SA Bill Cossey Kent Thiele

NSW Stephen Healy Harry Beck

WA Andrea Mitchell Michael Lee

Tas. Peter Armstrong Graeme Holloway

ACT Bruce Lilburn NT Warren Martin

Tennis Australia Board

Office Bearers, Life Members, Service Awards and Committees T.M. Kennedy 1960–1964 J.P. Young, OBE 1964–1974 J.N. Watt 1966–1968 G.W. Sample 1968–1970 G.E. Brown 1970–1974 E.R. Stephens, MBE 1974–1975 J.K. Hall, OAM 1974–1979 C.E. Sproule, OBE 1975–1977 V.W. Austin 1977–1983 G.N. Pollard, AM 1979–1989 D.L. Nicholl 1983–2003 K.C. Sheel, OAM 1989–1991 J.C. Whittaker, OAM 1991–2007 M. Bergman 2003–2006 S. Healey 2005– H. Beck 2008–

For South Australia Council (Member Representative from March 2006) W.P. Dunlop 1926 T.H. Hicks 1926 P.B. Wald 1926–1941 H.W. Pownall 1926–1930 E.F.K. McIver 1930–1931 E. Lewis 1931–1938 Judge Piper 1938–1940 R.R.P. Barbour 1940–1954 D.M. Frankenberg 1941–1969 Board of Directors F.E. Piper 1954–1957 (Since 23 May 1994) J.K. Hall, OAM 1957–1968 G.N. Pollard, AM 1994– W.H. Carlier 1968–1974 D.L. Nicholl 1994– C.J. Woodgate 1970–1974 W. Beischer 1994– J.P. Young, OBE 1974–1975 For Queensland J.G. Fraser, OAM 1994–1997 G.D. Fair 1974–1991 Council (Member Representative G.E. Brown 1975–1976 A.R. Hicks 1994–1997 from March 2006) H.E. Macmillan 1997–2004 J.D.C. Nelson 1976–1977 F. Peach 1926 Ms A.R Mitchell 1997– W.H. Carlier 1977–1981 E. Martin 1926 J. Reynolds 1994–2003 B.F. McMillan 1981–1984 L.A. Baker 1926–1949 A.J. Ryan 1994–2005 R.J. Green 1984–1995 W.S. Sproule 1926–1938 P. Ritchie, AO 2004– C.J. Altman 1991–1996 A.H. Barraclough 1938–1950 A. Cooper, AO 2004– I.R. Beadmeade 1995–1997 G.A. Bitcon 1949–1961 D. Stobart 2005– D. Dall 1996–2005 G. Elliot 1951–1959 C. Freeman 2007– K. Thiele 1997– R. Mitchell 1960–1965 S. Tanner 2007– W. Cossey 2005– C.A. Edwards, OBE 1961–1962 Councillors Judge A.M. Fraser 1962–1979 For Victoria (Since withdrawal of New Zealand N.C. Vickers, MBE 1965–1975 Council (Member Representative on 30 June 1922) from March 2006) G.E. Griffith 1975–1991 (TA Council disbanded March J.L.C. McInnes, OAM 1979–1989 S.E. Jamison 1926 2006) R.M. Kidston 1924 F.G. Hennessy 1989–1991 W.J. Lampard 1924–1926 For New South Wales J.F. Brown 1991–1993 H. Malcolm 1926–1938 Council (Member Representative B.D. Thomas 1991–1992 from March 2006) W.J. Daish 1926–1931 G.E. Griffith 1992–1993 B.C. Fuller 1926 R.R. Treloar 1931–1934 D.A. Keating, OAM 1993–1999 M.H. Marsh 1926 C.R. Cowling 1934–1951 J.C. Reynolds 1993–1994 R.C. Wertheim 1926–1933 A.R. Bingle 1938–1941 I.C. Klug 1994–1996 P.W. Sandral 1926–1927 A.L. Hughes 1941–1947 J. Roney 1996–1997 M. McL Duigan 1927–1930 J.K. Hall, OAM 1947–1949 S. Nucifora 1997–1999 H. Siminton 1930–1938 R.N. Vroland 1950–1964 M. Philp 1999–2004 J. Clemenger, OBE 1933–1938 W.B. Barnett 1951–1957 A. Cooper, AO 1999– G. Rennick 1938–1950 J.J. Courtney 1958–1968 M. Ford 2004–2005 G. Cross 1938–1940 Dr. J.N. Diggle 1964–1978 S. Ayles 2005–2007 N.W. Strange, OBE 1940–1960 I.R. Carson 1968–1975 I. Rodin 2008– A.W. Cobham 1950–1965 J.P. Young, OBE 1975–1980

Office Bearers

Presidents W.H. Forrest 1904–1909 P.B. Colquhoun 1909–1926 Sir N.E. Brookes 1926–1955 D.M. Ferguson 1955–1960 N.W. Strange, OBE 1960–1965 C.A. Edwards, OBE 1965–1969 W.V. Reid, OBE 1969–1977 B.R. Tobin, AM 1977–1989 G.N. Pollard, AM 1989–

Dr J.G. Fraser, OAM 1978, 1980–1996 Dr J.L. Foster 1978–1980 K.W. Howard 1980–1985 H.E. Macmillan 1985–2004 P. Bellenger 1996–2003 G. Stone 2003– D. Stobart 2005–

A.R. Hicks 1990–1996 Ms. A.R. Mitchell 1995– D.P. Rundle 1996–1998 M. Lee 1998–

E.D. Gilchrist 1926–1930 H.A. Pitt, CMG, OBE 1926–1954 T.E. Robinson 1930–1964 Justice E.A. Dunphy 1954–1968 Judge J.X. O’Dirscoll 1964–1969 G.B. Davis 1968–1969 J. Loughrey 1969–1990 J. Heathcote 1972–1976 B.S. Sanders 1976–1982 H.M. Spilsbury 1982–1995

Company Secretaries A.H. Barraclough 1933–1938 J.F. Fullarton 1938–1951 J.A.C. Andrew 1951–1979 C.C. McDonald 1979–1987 T.J. Dohnt 1987–97 D.A. Roberts 1997–

For Australian Capital Territory Council (Member Representative from March 2006) G.C. Scott 1980* For Tasmania Council (Member Representative G.R. Gordon 1980–1984* from March 2006) R.F. Smalley 1984–1989*, 1989–1993 A.H. Bunting 1926 D.K. Barker 1993–2001 H.S. Utz 1926 C. Mason 2001–2005 E.B. Coles 1926–1929 T. Lane 2005–2006 G. Cragg 1926–1934 B. Lilburn 2006– Sir T. Nettlefold 1929–1947 W.H. Walker 1934–1965 For Northern Territory D.M. Ferguson 1947–1955 Council (Member Representative J.T. Tomasetti 1955–1965 from March 2006 W.V. Reid, OBE 1965–1969 M.F. Horton, OAM 1981–1989*, N.A. Fraser, AO, MBE 1969–1974 1989–2001 Ms S. Smiles 2001–2008 B.R. Tobin, AM 1965–1977 W. Martin 2008– V. Holloway, OAM 1974–1981 A.J. Ryan 1977–2005 Honorary Treasurers E.C. Stewart 1981–1982 L.M. Howell 1925 M. McMullen 1982–1992 H.G. Jefferson 1925–1926 J. Barrenger 1992–1993 W.J. Daish 1926–1931 W.J. Fitzgerald 1993–2003 R.R. Treloar 1931–1934 R. Munro 2003–2007 D.M. Ferguson 1935–1953 G. Holloway 2005– J.K. Hall, OAM 1953–1961 P. Armstrong 2007– T.M. Kennedy 1961–1968 J.K. Hall, OAM 1968–1979 For Western Australia Council (Member Representative J.L.C. McInness, OAM 1979–1994 from March 2006) Honorary Secretaries L.M. Howell 1926 T.M. Hicks 1904–1926 R. Eagle 1922 H. Malcolm 1926–1934 H.G. Jefferson 1922–1926

Life Members John Andrew † Sir Norman Brookes † Bill Edwards, OBE † Donald Ferguson, OBE † Dr John Fraser, OAM

Neale Fraser, AO, MBE Ken Hall, OAM † Viv Holloway, OAM † Harry Pitt, CMG, OBE † Wayne Reid, OBE

Tony Ryan Fred Small † Cliff Sproule, OBE† Brian Tobin, AM Harold Walker †

Roy Youdale † †

deceased

Tennis Australia National Award for Service to the Game 1997 Kevin Bolton David Bierwirth Bill Carlier Dr John Diggle Jim Entink Graeme Fair Dorn Fogarty, OAM Ron Green Geoff Kerr John McInnes, OAM Max McMullen Harry Spilsbury John Young, OBE

1999 Ian Occleshaw

2004 Peter Bellenger

2001 Max Atkins Bill Gilmour John Newcombe, AO, OBE Tony Roche, AO Max Horton, OAM

2005 Dennis Dall Hamish Macmillan Todd Woodbridge, OAM

2003 Jack May Colin McDonald Barry McMillan

2006 Ian Basey Lindsay Cox Mike Daws Jim Sheppard Colin Stubs

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

2007 John Whittaker, OAM Alan Trengove Judy Dalton

*Observer status at Council meetings

Tennis Australia Committees (as at 30 June 2008) Audit and Risk Committee Des Nicholl (Chairman) Chris Freeman Geoff Pollard David Stobart Investment Advisory Committee Peter Ritchie (Chairman) Des Nicholl Geoff Pollard David Roberts Scott Tanner Steve Wood Remuneration Committee Des Nicholl (Chairman) All members of the TA Board

Nominations Committee Geoff Pollard (Chairman) All members of the TA Board Australian Open Focus Group Steve Wood (Chairman) John Clark Sarah Clements Digby Nancarrow Darren Pearce Geoff Pollard David Roberts Selina Ross Craig Tiley Raelene Turner Chris Yates

Finance, Legal and Administration

The Finance, Legal and Administration business unit is responsible for managing Tennis Australia’s (TA’s) financial accounts and investment portfolio. It implements TA’s shared services program and also provides legal advice and assistance to protect the Company’s interests and minimise risk.

0708

Finance, Legal and Administration

Risk management

TA’s CEO Steve Wood and Detective Superintendent Jack Blayney outline TA’s Anti-Corruption Commission at a media conference on 21 December 2007. Finance, Legal and Administration

Strategy

Objectives

Finance, Legal and Administration

Alignment

Broaden the scope of Tennis Australia’s shared services initiative.

Alignment

Improve reporting method to Board of Directors.

Alignment

Finalise the implementation of a shared financial system.

Alignment

Provide legal services across the entire Company.

Alignment

Provide timely, accurate and practical legal advice.

Alignment

Minimise the risk and exposure of the Company.

Establish a national accounting system. Implement new dashboard financial reporting system. Develop new procurement guidelines. Deliver strategic legal advice across all business units in TA and its Member Associations (MAs).

National accounting system During 2007–2008, Tennis Australia’s (TA’s) Finance department completed the national roll-out of its new financial Microsoft Dynamics Great Plains (MDGP) system that centralises the Company’s accounting systems and provides MAs with access to a shared, web-based finance system with data backed up at TA. The initiative has greatly enhanced efficiency across the Company and improved the processing of the Company’s finances. Tennis Tasmania became the first MA to have its full accounting, payroll and financial processing undertaken by TA with Tennis ACT, Tennis NT and Tennis West joining soon after. It is envisaged that Tennis SA will bring their accounting and payroll functions across to TA in the early part of 2008–2009. This substantially reduces the financial function cost for the MAs as it alleviates the need to have a dedicated finance manager or accountant as part of its business. The cost to TA is minimal due to the enhanced infrastructure, internal controls and robust systems that are already in place.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

The e-requisition system greatly enhances the efficiency of processing invoices and supplier accounts. The new e-requisition system implemented by Procurement.

Paperless payroll TA moved further towards a completely paperless payroll system with the implementation of the Meridian software program. Since being used for the first time in July 2007, the new system has enhanced the efficiency of the payroll process for administrators by substantially simplifying the process. As part of its shared services infrastructure, TA has since implemented Meridian at Tennis Victoria, Tennis Tasmania and Tennis ACT. A new online Human Resources module – ConnX – was also made available to TA staff in March 2008.

Dashboard reporting In October 2007, TA upgraded to a new online dashboard-style financial reporting system. The system presents information to Board Members in an easy to read format with the performance of key business areas presented graphically against their respective targets. Board Members can quickly and clearly gauge the health of the business through a comparison of the main revenue streams against key performance indicators. The reports provide concise, relevant and accurate information to assist Board Members in discharging their responsibilities. Included is a powerful visual of the financial vitals with graphical displays of ticket sales, broadcast rights, sponsorship revenue, investment returns, managed investments, debtors, creditors and cash flow. Non-financial measurements including Aviva Tennis Hot Shots participation levels, player rankings, employee turnover, outstanding annual leave, internet traffic p50 and coach membership figures are also presented in the same reporting method. Other reporting achievements during the year included the provision of online financial reporting to all TA managers.

A new Constitution As outlined in the Corporate Governance section, p40 TA adopted a new Constitution at the Annual General Meeting (AGM) in October 2007. The Legal department assisted the Constitutional Review Committee in drafting the new Constitution, which features modernised language, an updated Board structure and amendments designed to address changing business requirements including the use of technology. As part of the overall Constitutional review process, the Legal department amended and streamlined the Company’s By-Laws to incorporate procedural provisions which were previously contained in the Constitution itself.

A new online Human Resources module – ConnX – was also made available to TA staff in March 2008.

Online procurement During the financial year, TA’s Senior Management Team (SMT) endorsed the Company’s new procurement guidelines including a new online purchase order system, which was implemented in July 2007. Briefing sessions were held to educate staff, including all TA Australian Open (AO) Series event employees, about the new purchasing procedures and a demonstration of the e-requisition system was provided. The system greatly enhances the efficiency of processing invoices and supplier accounts through the use of system-generated purchase order numbers distributed by electronic approval. Procurement was also responsible for successfully completing the tender, evaluation and request for pricing for services such as AO hotel accommodation, new court surfaces, giant screens, office supplies, broadcast production and the furniture fit-out of TA’s new office space.

Extending partnerships In June 2007, the Legal department commenced a tender process to appoint the Company’s official law firm. The previous occupant of the role, Middletons, was re-appointed for a further three years until 2010. Middletons has worked with the Legal department exclusively since 2006 and during the past year provided assistance on a range of legal matters including the sizeable task of re-writing TA’s Constitution.

continued over Finance, Legal and Administration

Finance, Legal and Administration continued Agreements and advice The Legal department provided advice to business units across the Company and assisted with strategy development and various projects. The Legal department also produced a range of agreements such as venue, accommodation, sponsorship and supplier agreements for Australia’s Davis Cup tie against Thailand in Townsville. Legal also assisted the Commercial Tennis department to draft agreements for ‘Tennis World – Australia’s Favourite Tennis Centres’. This involved preparing relevant terms and conditions for coaching, members, court hire and casual attendees.

AO 2008 To help protect the quality and consistency of AO Corporate Hospitality as well as TA’s intellectual property, the Legal department worked with the Ticketing and Corporate Hospitality departments to prevent the sale of corporate hospitality packages by unauthorised vendors. The Legal department also worked with the Sponsorship department to set up staff agreements with IBM allowing it to work with TA staff members to create blogs about employee’s roles, experiences and preparations for the tournament.

Anti-Corruption Program

The policy led to the establishment of the Tennis Australia Anti-Corruption Commission (TAACC) as a key component of its Anti-Corruption Program designed to protect the integrity of AO 2008. The program was the first of its kind to be implemented at a Grand Slam event and included: • the appointment of Mr Brian Collis QC to chair the TAACC • the establishment of an independent and confidential Integrity Hotline for those involved in the tournament to report alleged corruption • sanctions for breaches of the policy, which ranged from substantial fines through to contract termination and/or life bans • an education and awareness program to run in the lead-up to and throughout the event • a ban on unauthorised use of laptops courtside • a block on gambling websites on publicly accessible computers at the AO • increased security vigilance during the AO including increased restrictions to access of players. As part of the program, TA also developed a memorandum of understanding with Victoria Police to assist in dealing with any matters of a criminal nature and formed an information sharing relationship with several leading betting operators. All individuals accredited at the tournament including players, coaches, officials and media were subject to the jurisdiction of the program. The Anti-Corruption Program will again be implemented at AO 2009 subject to any international developments surrounding the issue.

Professional bodies CoMPS The Legal department continued to represent the Company in CoMPS (the Coalition of Major Professional Sports) on all issues related to the integral protection and development of sport in Australia. In March 2007 CoMPS prepared a joint submission to a Senate inquiry into the Alcohol Toll Reduction Bill 2007, specifically challenging the proposals which would regulate the manner in which alcohol can be advertised in relation to sport and sporting events. CoMPS supported

In response to the issue of player/tennis integrity generally and illegal gambling and match fixing specifically, in October 2007 TA formed a working group to address the issue. The group, which comprised members from TA Legal, Administration, Media and Tennis departments, engaged an external professional security consultant (Calibre International) to assist in the development and implementation of an Anti-Corruption Policy.

The Legal department manages the Company’s risk management program. Legal assisted in drafting agreements for ‘Tennis World – Australia’s Favourite Tennis Centres’.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

the objective of the Bill but questioned whether the proposed mechanisms would achieve the desired outcomes of creating a culture of responsible drinking within Australian society and reducing the toll on society of excess alcohol consumption. In June 2008, the Senate inquiry determined not to recommend passing the Bill. CoMPS also liaised with the Victorian Commission for Gambling Regulation during the implementation of the Gambling and Racing Legislation Amendment (Sports Betting) Act 2007. TA assisted in the development of a process for the Commission to approve sporting bodies to become the Sports Controlling Body for the purpose of sports betting. The Act, which was passed in 2007, requires all betting providers to reach an agreement with the Sports Controlling Body before they can offer betting on a sport in Victoria. TA has since independently submitted an application to the Victorian Commission for Gambling Regulation to become Sports Controlling Body for tennis.

International TA also continued its involvement with the Sports Rights Owners Coalition (SROC), a body established to deal with the protection of commercial rights for international sporting organisations. During 2007–2008, TA contributed to a SROC case study into the digital piracy of sporting events around the world.

FUTURE • Finance will continue to expand TA’s shared services initiative including rolling out the Meridian payroll system to all MAs and migrating their accounting function to TA. • Legal has commenced the process of establishing the Australian Tennis Foundation, which will be charged with the responsibility to assist intellectually disabled athletes, wheelchair athletes, Indigenous Australians and people experiencing financial hardship to participate in tennis, as well as opportunities for selected high performance athletes. • A new web portal for all management and Board reporting will be created. • TA will create online systems covering areas including expense management, staff travel authorisation, tournament prize money and staff training as well as pre-recorded Webinars. • The Legal department will work closely with the EventsCo business unit to establish venue, commercial including broadcast and sponsorship, supplier and service agreements for the inaugural Brisbane International as well as drafting agreements for all other existing AO Series events. The Legal department will also provide general advice and assist with risk management for all AO Series events. • Finance will develop a financial procedures induction program for all new employees to TA as well as develop a presence in all business unit communication sessions. • The Legal department will continue to work with IT to source a new software system for the electronic storage of contracts to assist in the development of more effective contract management processes.

CASE STUDY STAFF OFFICE MOVES Following AO 2008, TA undertook the first phase of a multi-million dollar facility upgrade at Melbourne Park. The centrepiece of the project was the building of a new Australian Open Player Restaurant, which is due for completion prior to AO 2009. The first phase of the upgrade involved the construction of a new office space for over half of TA’s full-time staff. TA’s Administration department led the project management of the office development supported by the Site Operations team and Melbourne and Olympic Parks Trust (MOPT). In preparation for the building of the player restaurant, the AO player gym was moved to a more suitable location that was central for both the players and year-round operations. During AO 2009, the player gym and restaurant will be located within a central area to enhance the overall player experience. TA’s new expanded office area incorporated 55 permanent employee work stations as well as workspace for an additional 16 temporary tournament staff. The office move enabled the various Tennis business unit departments and the Operations team to be brought together in the one space to work in a productive open-plan office environment. Additionally, staff no longer have to be re-located during the AO tournament period and TA now has two distinct office areas compared to previously having several satellite spaces around the facility. The new office area caters for more than 70 staff and includes three new meeting rooms, break-out work areas and a staff kitchen. The move of staff into the new facility was seamlessly completed in a matter of days in July 2008, with involvement from the Site, Administration and IT departments.

Tennis Australia’s new expanded office area incorporated

permanent employee workstations.

TA Coach Membership Consultant Karen Clydesdale moves into her new work area. continued over Finance, Legal and Administration continued

Finance, Legal and Administration continued RISK MANAGEMENT

AO Series risk management

TA’s Legal department manages the Company’s risk management program, reporting to the Company’s Audit and Risk Committee on matters relating to risk management, contingency planning, risk management audits and compliance.

The Legal department provided Member Associations with template risk management documents including risk registers and checklists to assist them in enhancing their own risk management programs. These templates were also designed to assist relevant MAs to prepare for the AO Series events.

Managing risk at major events

In June 2007, the Legal department engaged an external consultant, Reliance Risk, to assist in the expansion of the Company’s risk management program enterprise-wide. Previously, TA’s program had focused predominantly on the AO and other tennis events including the AO Series, Fed Cup and Davis Cup ties and overseas tours. After undertaking a review of the Company’s risk management practices during 2007–2008, the Legal department recognised the need to manage other risks faced by TA on a day to day basis.

During the financial year, the Legal department implemented the AO 2008 risk management program. This process involved consultations prior to the tournament with each business unit to review, validate and update their existing risk register. A risk management program was also implemented for Australia’s home Davis Cup tie in Townsville, which involved assessment of risks for areas including operations, IT, media and administration.

Expanding risk management enterprise-wide

The 12-month project, which is due for completion in May 2009, will deliver a risk management framework that will set out how TA manages its risks enterprise-wide. While TA’s Legal department will continue to manage the Company’s enterprise-wide risk management program, each business unit will also develop its own risk register to support and manage its own risks. TA’s existing significant risk register will also be subsequently updated and cross-referenced against the individual business units’ risk registers. Moving forward, an Events Risk Committee will also be set-up to develop a more effective risk reporting process and accountability structure. The system is designed to ensure effective Board insight and oversight and will include progress reporting to the Board of Directors via the TA Audit and Risk Committee on all risks affecting TA.

The new online dashboard-style financial reporting system presents information to Board Members in an easy to read format.

INTERNET TRAFFIC SOURCES FOR tennis.com.au FOR FEBRUARY 2008

26.2

31.4

DIRECT TRAFFIC 61,424 (31.4%) SEARCH ENGINES 78,498 (40.4%) REFERRING SITES 51,183 (26.2%) OTHER 3972 (2%)

40.4

A risk management program was implemented for the 2008 Davis Cup tie in Townsville. 50

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Table 3.1 An example of the performance of key business areas presented graphically for the TA Board.

Marketing, Media and e-Communications

0708 It’s a tradition we pass on to our sons and daughters, who pick up racquets from the time they can walk, bringing forth a new generation of Lavers and Rafters, Courts and Goolagongs.

An example of one of TA’s marketing campaigns during 2007–2008. Marketing, Media and e-Communications

Objectives

Marketing, Media and e-Communications

Grassroots

More people playing tennis more frequently and for longer.

EventsCo

More people attending tennis events more frequently.

Grassroots

More people viewing tennis on TV more frequently and for longer.

Strategy

Grow brands that attract global sponsors and strengthen the relationship with our customers and stakeholders. Leverage the Australian Open brand to strengthen the Australian Open Series and Tennis brands. Become a leading sports and entertainment broadcaster. Leverage the Australian Open’s position as the Grand Slam of Asia/Pacific to expand our business in the region. Ensure the wide range of internal and external stakeholders in the tennis community are engaged with the common goal of making the image of tennis in Australia more relevant and more compelling.

Restructure m.au is.co n n e t

The Marketing department was reformed during the course of 2007–2008. Formerly, it included the key revenue streams of Ticketing, Sponsorship, Corporate Hospitality, Merchandise and Broadcast. Following the attainment of key goals, such as a new pricing structure for tickets and renewals of major broadcasting and sponsorship contracts, p58–60 these revenue streams moved to a separate Commercial business unit, headed by John Clark. p26 The Marketing department’s focus became fully centered on developing the Australian Open (AO), Tennis and AO Series brands and communicating with our customers through a myriad of multi-media channels. AO Membership moved from AO Tennis into Marketing with the objective to develop a single source database segmented into Tennis Australia’s (TA’s) many and varied customers. The Media department continued to work with the media yearround to promote the sport, most notably TA’s events, players and programs. The new e-Communications department delivered online and offline products including websites, e-newsletters and a raft of publishing titles.

People’s choice The greatest measure of Marketing’s success in establishing tennis as the sport of choice across Australia was the independent Sweeney Sports survey conducted between October 2007 and April 2008, which named tennis as the sport people were most interested in and the sport they most wanted to watch on television. This represented a jump from third position achieved in 2005–2006.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Tennis is the sport people are most interested in

The Veronicas showcased finals day in Garden Square at AO 2008.

Canvassing 1000 people between the ages of 16–65 the report found:

INTEREST

• Tennis is now the most widely watched sport on TV (53 per cent) followed by cricket and Australian Rules (both at 49 per cent).

TENNIS Swimming

• 2007 has seen an increase in TV viewing for both tennis (up five percentage points) and swimming (up four percentage points).

Cricket - Outdoor

• Tennis is the sport people are most interested in (57 per cent) followed by swimming (55 per cent), outdoor cricket (53 per cent) and Australian Rules football (52 per cent).

Australian Rules

The financial year saw the further growth of TA’s three major brands: Tennis, the Australian Open and Australian Open Series.

Rugby League

The AO brand was reignited with the complete transformation of Melbourne Park to the vibrant blue tones depicted in the modernised AO logo. Not only were 31 courts resurfaced using the cushioned acrylic Plexicushion in a True Blue tone, but blue re-energised the whole event from rubbish cans and precinct signage to merchandise in the AO Shop, accreditation passes, programs and PowerPoint presentations. Many international stars of tennis attending the Grand Slam of Asia/Pacific dressed in blue or colours that contrasted well with the new surface such as eventual men’s champion Novak Djokovic and women’s champion Maria Sharapova, coolly marching to the final in crisp white tennis clothes. The tournament lived up to theme for the 2008 event – Where the World Comes To Play. The Veronicas showcased finals day in Garden Square and many records were broken. These included:

Motor Car Racing

Soccor

Rugby Union

57 55 53 52 46 42 38 35

53 49 Cricket - Outdoor 49 Swimming 43 Soccor 42 Rugby League 39 Rugby Union 35 Motor Car Racing 34 TENNIS

Australian Rules

• Record attendance for the total event at 605,735 up from 554,858 the previous year. This marked the ninth consecutive year that the tournament attracted more than half a million patrons. • Live sites in Shanghai, Sydney and Melbourne attracted a combined estimated attendance of 1,387,338. • The AO was the biggest single news and sports story across Australia during the fortnight with 71,912 separate items broadcast on television or radio, or published online or in newspapers.

• Host broadcaster Seven Network dominated over summer with nine of the 20 most viewed programs featuring the tennis.

Table 4.1 Interest in sport.

• The official website – australianopen.com – attracted 7,456,693 unique users, up from 4.7 million in 2006–2007.

TV VIEWING

• The biggest single day/night Grand Slam attendance at 62,885 on day four of the tournament. This broke the record of 61,083 achieved by the US Open on Saturday 1 September 2007.

• The men’s final was the most watched program with 2.45 million viewers domestically and a record global television audience of potentially over 1.9 billion viewers for the duration of the tournament.

The 2007–2008 Sweeney Sports Report shows tennis as the number one sport of interest and television viewing.

continued over Marketing, Media and e-Communications

Marketing, Media and e-Communications continued Live sites

AO Membership

The first AO live site in Shanghai ran from 25–27 January, featuring live bands, hip hop dancers, on-site tennis courts and cheer squads. Five live telecasts at Century Square were broadcast on two giant LED screens and despite it being the coldest winter in 40 years, the venue proved popular with local tennis fans and the passing parade along Nanjing Road pedestrian mall. Live sites were again staged at Circular Quay, Sydney, and Federation Square, Melbourne.

AO Membership attracted 3004 members with the first ever offer of priority booking to the AO included as a benefit. As part of a AUD$69 package, members also received a complimentary ground pass to attend any day of the AO, access to the VIP members’ lounge during the event, discount on merchandise and a free Tennis Workout session or court hire session at Melbourne Park. These benefits will expand in 2008–2009 with the focus on retention of members and expansion of membership numbers.

Record ratings with an increase of

Brand tennis

After successfully launching the new Tennis brand in 2007 with a revised ‘Tennis – Australia’s Favourite’ logo, the next 12 months were spent activating and promoting the sport with clear, consistent campaigns. These included: • Promoting tennis in Federation Square during the AO featuring a world first Totem Tennis World Record of seven hours, 35 minutes continuous play. • Delivering a national marketing campaign for Coach Membership. • Creating national guidelines for brand Tennis.

The AO website attracted a record 7.4 million unique users. Marketing produced Tennis-branded participation certificates for an Aviva Tennis Hot Shots fun day competition.

Developing e-Communications The new e-Communications team was established to grow, develop and consolidate online and offline communications. A large focus of the department was to further improve TA’s web platforms, in particular tennis.com.au, which will undergo extensive redevelopment in 2008–2009 and a streamlining of its 7000-plus pages. These include 300 club websites, eight Member Association websites and AO Series tournament sites. Website traffic for tennis.com.au grew significantly over the period, averaging 85,000 absolute unique visitors a month, up from 66,000 at the start of the financial year.

• Providing communication tools such as posters, emails and brochures for individual programs, for example, Tennis Talent Search. • Assisting Community Tennis with new Aviva Tennis Hot Shots television and print campaign. • Rebranding AO Tennis to Tennis World – Australia’s Favourite Tennis Centres. • Working with Member Associations to ensure consistent approach to all marketing campaigns.

Live sites in Shanghai, Sydney and Melbourne attracted a combined estimated attendance of

1,387,338 The first AO live site in Shanghai offered visitors a unique tennis experience.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

The official AO tournament website enjoyed record ratings. tennis.com.au metrics Metric

2007–2008

2006–2007

Percentage increase

Visits

2,913,493

1,925,925

51.28 %

Unique visitors

1,022,123

795,688

28.46 %

Page views

9,018,847

7,278,988

23.90 %

Time on site

3:55 minutes

3:21 minutes

16.80 %

Table 4.2 TA’s website experienced healthy traffic.

australianopen.com The official AO tournament website – australianopen.com – enjoyed record ratings with 7,456,693 unique users, up from 4.7 million in 2006–2007, and 218 million page views, an increase of 55 per cent. The site introduced fan-friendly features such as the AO Acer and Fan of the Day photos, which allowed fans to send in comments and images. This proved so popular, subsequent Grand Slam tournament websites at the 2008 French Open and Wimbledon opened the door to moderated fan commenting. The most popular women’s biography on the AO website was Serbian Ana Ivanovic with 888,126 page views and the men’s was Frenchman Jo-Wilfried Tsonga with 773,475 page views.

TennisWorld

2003

2004

2005

2006

2007

2008

Page views (millions)

106

149

141

218

55%

Visits (millions)

9.8

10.9

17.1

18.1

22.6

30.8

36%

The TennisWorld newsletter moved to a more sophisticated platform enabling advanced analysis, design, delivery and production. Subscriber numbers grew from 53,969 to 78,023 at the end of the financial year. The e-newsletter was delivered weekly instead of fortnightly, with a special daily edition produced throughout the AO. The e-newsletter system was later rolled out to the Player Development Update (3100 subscribers) and CoachesWorld e-newsletter (3300 subscribers). A free SMS service was trialled at AO 2008 providing daily news and results updates. Using a simple subscriber registration, AO SMS attracted 2000 subscribers, who were surveyed after the tournament. Of the 307 respondents, 73.3 per cent said they were ‘very likely’ and 23.1 per cent said they were ‘quite likely’ to subscribe to an SMS service in 2009.

1.76

1.77

2.95

4.29

4.74

7.45

57%

Blue book

Visits from search engines (millions)

0.696

0.843

1.523

0.256

0.579

4.062

602%

% Visits from search engines

7.1%

7.7%

8.9%

1.4%

2.6%

13.2%

10.6%

Visits from commercial referral (millions)

0.399

0.708

0.783

0.520

0.555

1.219

120%

% Visits from commercial referrals

4.1%

6.5%

4.6%

2.9%

2.5%

4.0%

1.5%

Repeat unique visitors (millions)

0.686

0.699

1.172

1.560

1.759

2.407

37%

% Repeat unique visitors

39%

40%

36%

37%

34%

-3%

Visits/visitor

5.60

6.16

5.81

4.23

4.77

4.39

-8%

Average page views/ visitor

42.36

39.64

35.80

34.70

29.70

31.07

Avg time on site/ visitor

79.11

73.64

78.60

65.84

75.92

68.41

-10%

Top 10 visitor countries to australianopen.com 5. France: 852,505 6. Switzerland: 720,693 7. Germany: 687,243 8. Poland: 643,759

1. United States: 7,048,290 visits 2. Australia: 4,942,549 3. United Kingdom: 1,279,243 4. Canada: 1,210,149

Traffic overview

9. China: 621,158 10. Spain: 592,337

% CHG 2007– 2008 TREND

Reach (volume)

Unique visitors (millions) Acquisition (growth)

The publishing wing of e-Communications produced an attractive picture book to commemorate the ‘greatest Australian Open ever’. Released in May, this was distributed to all staff, sold through the online shop and presented as a gift to sponsors, corporate clients and Grand Slam counterparts. In addition, TA’s 2006–2007 Annual Report received a third consecutive gold award from the Australasian Reporting Awards.

Retention (loyalty)

GOLD AWARD

Stickiness ESTABLISHED 1950

continued over

Table 4.3 australianopen.com website statistics 2003–2008. Marketing, Media and e-Communications continued

Marketing, Media and e-Communications continued CASE STUDY MANAGING THE MEDIA A record 1654 media representatives (up from 1367 in 2007) produced a record amount of coverage across print, radio, television and the internet at AO 2008. This representation included 990 Australian media and 664 internationals. TA’s public relations strategy looked to optimise the new contemporary AO brand and blue court colour.

The AO launch was a huge success with the dramatic reveal of the new blue Plexicushion surface on centre court at Rod Laver Arena.

The official launch began with guests gathered on centre stage at Rod Laver Arena, curtained off from centre court. The function moved towards a dramatic reveal of the court resplendent in the new blue colour scheme and futuristic court furniture, with talented young players of the future hitting up. The media team developed a campaign around the tearing up of the old green Rebound Ace courts and filmed more than 17 hours of time lapse vision in Rod Laver Arena, producing a short, quirky video which led into the launch reveal. The biggest challenge regarding the change to Plexicushion was to educate people that the court surface was still cushioned acrylic and that the pace range would remain the same. Plexicushion attracted plenty of scrutiny in the lead-up events and was the subject of overwhelming endorsement from the players. The introduction of integrity measures for AO 2008 also attracted interest given the amount of worldwide speculation on corruption several months prior to the event. Much of the pre-event talk centered around Swiss No.1 Roger Federer, who arrived in Australia unwell. Australian Casey Dellacqua’s run to the fourth round captured the imagination of the Australian media and dominated domestic coverage. The all-glamour women’s final between Maria Sharapova and Ana Ivanovic was lauded around the world and sat perfectly with the contemporised brand of the AO.

Lleyton Hewitt against the clock at the AO.

4:34 am

Frenchman Jo-Wilfried Tsonga commanded world headlines with his breakout run to the final and the demise of Federer gave rise to the brilliance of the incredibly determined Serbian, Novak Djokovic, who became a popular first-time Grand Slam winner. The middle Saturday was an epic after a full day of rain and some marathon matches led to a very late start for what turned out to be a classic battle between Australian Lleyton Hewitt and Greek Cypriot Marcos Baghdatis. The incredible five-setter finished at 4:34 am setting a world record in Grand Slam finishes.

The all-glamour women’s final.

The new blue courts at AO 2008 provided a striking background for eventual women’s champion, Maria Sharapova.

FUTURE • Drive towards a personalised, contemporary and uplifting relationship with customers and stakeholders. • Continue to build our position as the Grand Slam of Asia/Pacific by becoming the most watched Grand Slam tournament in the region and by conducting major marketing campaigns across Asia. • Use the internet as a key media vehicle in our growing customer relationship. Refocus on website development and the provision of content second to none in the sports and entertainment world. • Grow attendance to our events in ever increasing numbers and provide an additional entertainment that attracts more people to our major events. 56

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Commercial

0708

The Commercial business unit works towards growing the financial resources of tennis by strengthening Tennis Australiaâ&#x20AC;&#x2122;s knowledge of its stakeholders, and building tennis products around the needs of the customers, major sponsors and media partners.

Commercial

Sponsor acknowledgements

Kia Motors Corporation re-signs as major sponsor of the AO. Commercial

Strategy

Objectives

Commercial

EventsCo

Identify and develop new revenue opportunities.

EventsCo

Grow existing revenue base.

EventsCo

Grow customer base.

EventsCo

Continue to manage costs.

Implement a new sponsorship sales strategy. Strengthen relationships with all of our broadcast partners. Strengthen relationships with suppliers, retailers and licensees. Reignite the Corporate Hospitality packages on offer through product development. Develop strategies with Marketing to maximise ticket sales for Australian Open and Australian Open Series.

The French apparel giant Lacoste signed a multi-million dollar deal to provide more than 1150 uniforms for linespeople, officials and ballkids at AO 2009.

Integrity of the brand The Commercial business unit works towards growing the financial resources of tennis by strengthening Tennis Australia’s (TA’s) knowledge of its stakeholders, and building tennis products around the needs of the customers, major sponsors and media partners while ensuring the integrity of the brand is maintained. The other focus is on customer service and ensuring TA works with the brand and doesn’t overcommercialise, but rather strives for a happy medium, still utilising the commercial attractiveness of the sport and events to drive revenue.

Further Sponsorship developments In addition to Kia Motors Corporation extending its multi-million dollar sponsorship of the Australian Open (AO) as major sponsor until 2013 and the renewal of nine of 10 sponsorship contracts, the Sponsorship department had many highlights during 2007–2008. A partnership commenced with Eurosport and ESPN Star Sports, while Fox Sports recommitted. Important new suppliers such as Nike came on board showcasing their range of products in a retail superstore located on the concourse at Melbourne Park during the AO. The French apparel giant Lacoste signed a multi-million dollar deal to provide more than 1150 uniforms for linespeople, officials and ballkids at AO 2009. Once again, Garnier World in Garden Square proved to be a hit with more than 28,500 fans passing through its doors culminating in Garnier Girls’ Day, when more than 2000 patrons visited the site. Over the fortnight 44 staff members provided 10,500 mini facials, 11,000 hair styles, 7000 massages and used 42,750 bobby pins. The free gift bag (worth over AUD$50), which contained shampoo, hair product, sunscreen, a tanning kit and other items, was one of the hottest items at AO 2008.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

28,500 Garnier World fans

Broadcast increase The AO had an incredible global TV reach of 1.9 billion viewers. AO 2008 was shown for 6700 hours with broadcasts available in 425 million households across 157 countries. It was broadcast for 3416 hours in the Asia/Pacific region – the most hours of any region. The French terrestrial broadcaster France 3 drew the highest individual audience of 4.4 million during the men’s final. This was higher than the 2007 French Open men’s final in France. Fox Sports showed 305 hours and had two million viewers with the host broadcaster – the Seven Network – filling nine of the top 20 most watched programs over summer. The men’s final ranked number one with 2.47 million viewers. Case study p60 Broadcast is looking to grow even further and a direct deal into China has been signed with Yuantai Advertising. TA will move the women’s final to a night time slot for AO 2009 which will guarantee more exposure in the Australian, European and Asian markets. This sits within Commercial’s strategic focus of daring to be different and to reach the consumer.

550,550

554,858

605,735

2004

543,873

MasterCard delivered AO Radio, with MasterCard holders receiving a free radio allowing them to tune in while on site. In keeping with MasterCard’s “Priceless” campaign, a competition was held, offering winners the opportunity to watch the men’s semifinal and women’s semifinal from the radio booth – the best seat in the house.

620,000 600,000 580,000 560,000 540,000 520,000 500,000 480,000 460,000

521,691

Garnier announced the winners of its Rising Star awards, Jason Kubler (Qld) and Alex Nancarrow (ACT). They were both presented with an AUD$10,000 scholarship by Garnier CEO Mark Tucker, with tennis identities Alicia Molik and Ken Rosewall on hand at the annual Garnier Girls’ Day breakfast.

Garnier Rising Star award recipients Jason Kubler (left) and Alex Nancarrow. CROWD ATTENDANCE

Inside Garnier World.

2005 2006

2007

2008

Table 5.1 AO attendance 2004–2008.

Demand for tickets Ticket prices for Rod Laver Arena and Vodafone Arena were increased for AO 2008 while ground pass prices remained the same. This year for the first time Vodafone Arena was ticketed as a fully reserved venue and this decision proved popular with fans with most sessions being sold out prior to each day’s play. It also ensured that the long queues of previous years diminished and patrons knew they were guaranteed a seat for the whole session of play. Based on this success, TA will add additional sessions at Hisense Arena (formerly Vodafone Arena) so more people can experience watching the best players in a stadium atmosphere.

AO 2008 was shown for 6700 hours with broadcasts available in 425 million households across 157 countries. The AO radio booth at Rod Laver Arena.

continued over Commercial

Commercial continued Following a review of package sales, TA will implement a range of different packages at both Rod Laver and Hisense Arenas for AO 2009. These packages will be designed to align with the changing needs of our customers. Ground pass prices will remain the same. Our licensed Tour Operators Program, both domestically and internationally, was reviewed prior to AO 2008. As a result of this review, an increased number of operators were introduced along with other initiatives that resulted in an increase in revenue and sales. We will continue to review this area of our business with the aim to broaden our market, particularly in Asia, US, UK and Europe.

Market research results Following an extensive market research program involving more than 300 corporate clients, TA has been able to review the product offering through the hospitality program and offer packages more suited to the requirements of the client. The program was conducted in three phases including qualitative research prior to the tournament, post tournament research and quantative research post tournament. The results showed that the dining rooms and service along with the atmosphere on the Corporate Oval were areas that required review. TA identified the critical need to be in the market place as early as possible to ensure clients are extending invitations to their valued guests well in advance of the tournament and as such Corporate Hospitality packages officially went on sale 16 July 2008.

The first week of the event was extremely successful, with TA looking at next year improving activity in the second week to improve foot traffic on site and further increase merchandise sales. New point-of-sale equipment will be installed prior to the AO in the Pro Shop to maximise sales as the hype of the AO hits customers before the tournament. In the coming months, Merchandise will be working closely with architects on the new shop design for AO 2009 with a focus on improving the ceiling and flooring. Planning will also continue on the new website for the total merchandise range to be launched in October.

FUTURE BUSINESS DEVELOPMENT STRATEGY A draft Business Development Strategy has been prepared that outlines the key area of business retention and opportunities for new sales for Sponsorship. This work researches a range of categories that are not currently covered across AO and TA properties. TA is currently conducting a strategic review of the sponsorship business and this will incorporate all properties and the sponsorship structure.

CASE STUDY WORLDWIDE COVERAGE TA has a contract with the Seven Network to provide the host broadcast and the world feed of the AO each year. The host broadcast comprises production of seven individual courts featuring live play, replays and graphics/scores which is known as the ‘dirty feed’ and live play, replays and no graphics/scores known as the ‘clean feed’. Each court has varying production levels depending on its importance. Broadcast rights holders have the option of coming on site and enhancing the host broadcast feeds or taking the world feed. Broadcasters who elect to be on site fill out a host broadcaster rate card outlining their technical and production requirements. The Seven Network then builds a portable production facility according to their specifications. The advantage of being on site is that the broadcaster can mould the host broadcast feeds into its own production by adding their own commentators, graphics/scores, colour stories and so on. Broadcasters are also able to select which matches they wish to televise from the seven available feeds. The world feed is a single feed, distributed via satellite by TA for broadcast rights holders who elect not to come on site. The world feed has its own production and commentators and each day TA receives the broadcasters match requests and then decides which matches will be telecast on the world feed that day. A broadcaster can request a match that is not appearing on the world feed via a unilateral feed that is distributed via a separate satellite path. Broadcasters have to add their own commentary from their studios on unilateral feeds.

Merchandise strength

TA also produces a one hour highlights program after each of the 25 individual sessions. These are distributed two hours after the completion of the session to on site broadcasters and via satellite on the world feed.

The strength of the Tennis and AO brands led to a 25 per cent increase in merchandise sales on site in 2007–2008 and has enabled TA to license its range to Target department stores nationally. During the tournament, 18,099 official towels, 29,389 caps/visors and 7483 can coolers were sold.

TA also produces and distributes its own digital content. Broadcast has a video broadband service on our official website – australianopen.com – called AOTV that offers various levels of content depending on the territory you are in. This includes simultaneous live streaming of all televised courts, long and short form video on demand – including match highlights, press conferences, interviews, colour stories and archive content. TA produces and sells short form content to broadband and mobile clients and also licences news distribution companies to provide news access footage to non-rights holders around the world.

increase in merchandise sales.

Some of the dessert available to corporate clients and a Gold Corporate ticket. 60

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Merchandise on sale at the AO Shop.

Sponsor acknowledgements (1 July 2007–30 June 2008) Tennis Australia Partners, Sponsors and Suppliers

Australian Open Partners, Sponsors and Suppliers 2008 Australian Open Series Events’ Major Sponsors

Australian Paralympic Committee Wheelchair Athlete Development and Paralympic and World Team Cup Supporter.

Australian Sports Commission/Australian Institute of Sport Sports Development Grant for Participation and AIS Tennis Program.

Australian Davis Cup Tennis Foundation

Channel Seven Official Host Broadcaster of Tennis Australia.

Optus Naming rights to Optus Team Tennis Australia which includes naming rights to the Optus Australian Davis Cup team, the Optus Fed Cup team, the Optus Australian Junior Davis Cup and the Optus Australian Junior Fed Cup team. Optus is also an official partner of the Australian Open and the official telecommunications provider of the Australian Open, sponsor of the Australian Open Wheelchair Championships, naming rights sponsor of the Optus Junior Tour and the Optus High Performance players.

Wilson Official tennis ball and equipment provider. Official ball Pro Circuit, Optus Junior Tour, other player development programs and Australian Open Series events.

Partners

Rolex Official Timekeeper and Timepiece. Medibank Private Medibank International Sydney, Olympic Park Tennis Centre, Sydney.

Moorilla Wines, Events Tasmania Moorilla Hobart International, Hobart, Tasmania.

IBM Official Information Technology Partner.

Optus Official Telecommunications Provider.

Aviva Official Insurance, Superannuation and Investment Services Provider. Next Generation Clubs, Australian Major Events Next Generation Adelaide International, Memorial Drive, Adelaide, South Australia.

State Government of Victoria Sponsors

Qantas Airways Limited Official Airline of Tennis Australia.

Plexicushion Official Court Surface.

Sport 927 Radio Official Partner of the Australian Wheelchair Championships.

Mondial Assistance, Queensland Events Corporation, Gold Coast City Council Mondial Australian Women’s Hardcourts, Royal Pines Resort, Gold Coast, Queensland. Australian Open 2008 Sponsors: Major Sponsor

Kia Motors Official Supplier of Motor Vehicles. Associate Sponsors

Garnier Official Supplier of Skin Care, Hair Care and Body Products.

GE Money Official Lender.

Australia Post Official Supplier Expedited Mail Services and Parcel Services.

Coca-Cola Official Soft Drink and Sports Drink Supplier.

Evian Official Still Water Supplier.

Heineken Official Beer Supplier.

Qantas Airways Limited Official Airline of the Australian Open.

Wilson Official Tennis Ball and Equipment Provider.

MasterCard Official Card. Sponsor acknowledgements

Sponsor acknowledgements (1 July 2007–30 June 2008)

Official Suppliers

Fox FM Official FM Radio Station.

Nintendo Official Gaming Console.

Cadbury Official Supplier Confectionery.

Sanford Official Supplier Markers.

Grand Hyatt, Melbourne Official Player Hotel.

ESPN Star Sports Pan-Asia (excl. China and Japan).

Staging Connections Official Audio Visual, Styling & Production Services Supplier.

Hilton on the Park, Melbourne Official Media, Broadcast and Officials’ Hotel.

Eurosport Pan-Europe.

TCL Official Supplier Televisions.

Park Hyatt, Melbourne Official Tournament Guests’ Hotel.

City of Melbourne

Supersport Pan-Africa.

3AW Official AM Radio Station. The Langham, Melbourne Official Tournament Guests’ Hotel.

Herald Sun Official Newspaper.

Nike Official Supplier of On-court Apparel and Footwear.

WOWOW Japan.

Konica Minolta Official Supplier Office Equipment.

Canningvale Official Towel Supplier. Living Edge Furniture Rentals Official Supplier of Prestige Furniture. Aquila Official Supplier Men’s and Women’s Fashion Shoes. Melbourne & Olympic Parks Trust Official Supplier Venue Services.

Middletons Lawyers Official Law Firm.

National Foods Official Supplier Milk.

Sofitel, Melbourne Official Tournament Guests’ Hotel.

Seven Network Free-to-air TV/Host Broadcaster.

Fox Sports Subscription TV.

Shanghai TV China.

Beijing TV China. ART Pan-Middle East.

Top Serve Official Stringing Service and Stringing Machine.

CCTV Golf and Tennis Channel China.

International Broadcasters:

Nestle Peters Official Supplier Ice Cream.

Jacobs Creek Official Wine Supplier.

FIJI TV Fiji.

Official Broadcast Partners Domestic Broadcasters:

Rudy Project Official Supplier Sunglasses.

News Custom Publishing Publisher Official Tournament Program and Daily Schedule.

Sky New Zealand New Zealand.

Official Hotel Suppliers

Bayview on the Park, Melbourne Official Junior Player Hotel.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

ESPN International Central and South America.

ESPN North America.

Guandong TV China.

CSPN Media China.

Human Resources

0708 The Human Resources business unit enables Tennis Australia employees to maximise their personal and professional contribution to the Company.

Human Resources

Our team â&#x20AC;&#x201C; staff photos

Organisational structure

TA staff warm-up for their first hit on the newly resurfaced centre court at Rod Laver Arena. Human Resources

Strategy

Objectives

Human Resources

Alignment

Deliver HR strategies and programs that make a real difference and a measurable contribution to the achievement of Tennis Australia’s (TA’s) strategic priorities.

Alignment

Be recognised as a highly-regarded employer in the sport and recreation sector, attracting, developing and retaining the best people to enable the delivery of TA’s strategic priorities.

Alignment

Engage and align the TA team behind the Company’s purpose, formula for success, its promise and strategy.

Improve processes and systems. Improve communication across the Company. Develop stronger and more consistent leadership. Provide a more stimulating and enjoyable work environment.

Tennis Australia growth

The financial year activities flowed directly from the Employee Engagement Project, most notably in areas covering leadership, communication and the delivery of improved systems and processes. 64

A key goal of the HR business unit is to attract and retain the best staff by providing a great working environment. This process began in earnest two years ago when the Company had 101 employees. During the financial year, Tennis Australia’s (TA’s) ranks swelled to 145, with hundreds more joining for the best Australian Open (AO) ever. Sophisticated programs and services were delivered to ensure TA’s workforce became fully professional and equipped to deal with the rigours of delivering a Grand Slam tournament and growing tennis, the sport, 52 weeks of the year.

Engagement In 2007–2008, HR responded to feedback provided by the Hewitt and Associates Employee Engagement Project which involved extensive staff surveys. HR and the Senior Management Team (SMT) followed up with a series of forums with the Chief Executive Officer, Steve Wood and by multiple staff communication sessions. The financial year activities flowed directly from the Employee Engagement Project, most notably in areas covering leadership, communication and the delivery of improved systems and processes.

Developing leaders The Empowering our Leaders for Success program was delivered to three groups, starting with all managers at TA, who were assigned a mentor from the SMT. With 25 participants in each group, graduates of the first program became mentors of subsequent leadership trainees. A third program involved MA managers and supervisors, who began a phone-based coaching relationship with TA graduates. This led to improved networking between employees and a better understanding of departmental roles. Using the services of Inspired Workforce Performers, one-day training opportunities were offered to all staff covering the subjects of ‘influencing and persuasion’ and time management.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Systems and processes The IBM Business Systems Review was established to clearly identify main areas of deficiency, and led to the expansion of the IT department from six employees to 13. Chris Yates joined the SMT as Chief Information Officer, and a large investment was made in IT infrastructure. HR’s Information Systems (HRIS) entered a new level of sophistication with the introduction of iLearn, an online induction program. iLearn minimised needless face-to-face training, providing instead, specific interactive induction content for a variety of positions. AO tournament staff, including full-time TA employees, were required to ‘pass’ a generic course, and future modules will be customised to specific areas. For this inaugural online induction, HR created an assessment activity modelled on the AO tournament where learners progress through the tournament (starting at the qualifying round and ending at the Grand Slam final). Learners are required to correctly answer a series of questions each round in order to progress to the next round of the tournament. In 2008–2009, HR will expand the use of the online e-learning tool to deliver the TA Induction. ConnX, an online employee self-service system, was installed in December–January 2008. This application enables employees to view personal information, leave details, pay advices and Company information through an online portal. Managers have the ability to view employee data including qualifications, employment history, leave information and performance management information. The introduction of the system made many paperbased processes redundant, for example, submitting leave requests and distributing pay advices. In 2008–2009, TA’s Performance Development Review process will be delivered online for the first time via ConnX and rolled out to several MAs as part of TA’s shared services model. Big Red Sky – a world-class e-Recruitment system – was introduced in March 2008 via australianopen.com and tennis.com.au. This application automates and manages Tennis Australia’s recruitment processes for both AO and TA vacancies. This is particularly important for TA given the high volume of recruitment it undertakes. It enables HR to be in constant contact with job-seekers, predominately via email (as opposed to post) and candidates receive notifications throughout the whole recruitment process. The online booking system enables candidates to schedule themselves for interviews once they progress through to the ‘interview’ stage. Customised messages are created by HR to candidates, such as PDF documents outlining directions to Melbourne Park.

TA Assistant Web Producer Antonio Vong checks out the new online self-service system, ConnX.

Fun Club A key goal of HR is to provide a great working environment for staff. To this end HR held monthly Happy Hours aimed at welcoming new staff, farewelling those leaving, celebrating successes and sharing information across departments. The Fun Club continued for the second year, with 52 members, who paid AUD$8 a month for discounted get-togethers. These included a singing competition, lawn bowls, strike bowling, a night at the Moonee Valley races, trivia night and the ‘Amazing Race’ quiz around Melbourne.

WorkSafe Week Following the success of TA’s inaugural WorkSafe Week in 2006, the Company once more joined this Victorian State Government initiative from 22–26 October 2007 to remind staff about the importance of health and safety in the workplace. Activities included Tennis Workout, yoga, work–life balance seminars, neck and shoulder massages, ergonomic workstation assessments, Bootcamp conducted by Trewhealth, health and nutrition seminars and 10-minute healthy heart checks assessing cholesterol, blood glucose and blood pressure levels.

The good life TA staff enjoy a range of benefits including:

The most popular benefit is unlimited Tennis Workouts – 45-minute fitness drills based around tennis.

• free on-site parking • paid parental leave (mum’s six weeks, dad’s one week) • employee counselling assistance • health and lifestyle services • on-site flu injections • regular health check and program seminars • weekly fruit delivery • salary packaging • discounts on Optus phones, KIA vehicles and Kent Removalists • TA superbox seats for Rod Laver Arena concerts • AO tickets • AO uniforms • heavily discounted Tennis and AO merchandise • executive health checks. continued over

TA staff have access to free lunch-time tennis workouts as part of their subsidised Tennis World membership. Human Resources

Human Resources continued Tennis World membership TA employees can also join Tennis World for AUD$9 a month. Formerly called Australian Open Tennis, Tennis World was re-branded in January 2008 and expanded its services to Albert Reserve, with two more Melbourne centres in the pipeline. Monthly membership is AUD$69 for external clients and 50 per cent of TA staff took up the offer, with HR picking up AUD$60 of the tab. The most popular benefit is unlimited Tennis Workouts – 45-minute fitness drills based around tennis. The upgraded gym is also popular, with free fitness assessment and program provided by Trewhealth. Membership also includes free court hire at Melbourne Park and Albert Reserve, entry into social competitions and tournaments, discount on coaching and Tennis World Pro Shop.

Safety manager appointed During 2007–2008 TA continued its commitment to safety with the appointment of a dedicated Safety Manager to implement an Occupational Health and Safety (OHS) Management System in accordance with Australian standards. Key projects undertaken during the year included the formation of an OHS strategic plan, hazard and risk assessments of employees’ roles, ergonomic and workplace assessments, safety and emergency upgrades to the Albert Reserve facility, policy and procedure development, emergency training and the expansion of the OHS committee. Future key projects include the continuation of the establishment and implementation of the OHS Management System, targeted training programs and presentations for both full-time and tournament staff, a National Safety Committee (sub-committee to Event Risk Committee), and many other initiatives aimed at increasing safety awareness, ownership and participation.

Included in TA staff benefits is access to the upgraded gym, including a free fitness assessment and tailored programs.

AO tournament launch On average 3500 applications are received each year for AO tournament positions. This was the case in 2007–2008 when there were 1500 positions available across 155 roles in 30 tournament areas. HR does not actively advertise tournament positions due to the sheer volume of interest, relying on word-of-mouth, the Tennis e-newsletter (TennisWorld) and the AO website as advertising mediums. Staff retention rate for AO 2008 was 68 per cent. As well as the online induction, tournament staff attended a launch on 21 December 2007 where, in groups of 300, they were shown the new courts and marketing campaign, as well as hearing from Tournament Director Craig Tiley and CEO Steve Wood. They had area-specific training, team leader training and collected uniforms and accreditation. This was a huge, logistical enterprise, but a great advancement on previous years where no such mass welcome occurred. Media Staff

Junior Tournament Practice

Changerooms

TV Liaison

Community Tennis

Information Services Group

Website

Transport Operations

Scoring Operations

Player Medical

Corporate Staff

Albert Reserve

Office Administration

Tournament Control & Practice

Court Services & Court Operations

Aviva Ballkids Supervisors/ Visitor Program Supervisory Team 42

Beautician & Hairdresser 2

Aviva Ballkids

VIP Hospitality Drivers Accreditation

200 20

AO Membership

Player Services

Balls & Towels

Retail Staff

Child Care Attendants

113

Site Operations AO Wheelchair Open

6 13 1 319

Umpires

365

TOTAL

1562

Table 6.1 Staff employed by TA for AO 2008.

Aviva Ballkids

TA elevated its commitment to safety in the workplace with the appointment of Safety Manager, Callum Michener. 66

AO 2008 saw a 319-strong Aviva Ballkid squad with 275 coming from Melbourne, 20 from interstate, 20 from Korea and four from India. Post AO, overall responsibility for this area moved from Operations to Community Tennis in order to dedicate a year-round resource to the role, which could increase participation in tennis and coach involvement in the program. Coaches continued to recommend kids at the Level 1 stage of screening. Following Level 2 trials, the squad was finalised and underwent five training sessions for new ballkids, four for returning members of which there were 141. Overall, there were 1500 applicants for AO 2008 and when applications opened for the 2009 intake in March, there were 1700 applications. Georgia Sverns and Benjamin Ramsay were named as the AO 2008 Aviva Ballkids Most Outstanding Boy and Most Outstanding Girl for their consistent performance on court, team work and overall commitment to the program. They won AUD$1000 each. A group of 20 kids was selected to take part in the finals ceremonies as flag bearers and ceremony assistants, handing presents to the finalists.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Suddenly, his world turned around 360 degrees as the diffident accountant embraced a whole new level of responsibility...

George Petaroudas (left) receives advice from TA CEO Steve Wood as part of HR’s developing leaders program.

FUTURE CASE STUDY GRADUATING FROM LEADERSHIP: GEORGE PETAROUDAS

• TA staff engaged and aligned behind the Company’s new purpose and strategy.

George Petaroudas joined TA in November 2000 as Financial Accountant and, after five years with the Company, was promoted to the role of Financial Controller. Suddenly, his world turned around 360 degrees as the diffident accountant embraced a whole new level of responsibility within the finance department. Instead of three people indirectly reporting to him, George had six people in his charge, a young family to support and a Masters of Business Administration (MBA) to complete part-time through Deakin University.

• All new TA staff to participate in an online induction process through ConnX.

“I was right out of my comfort zone at the start,” he says. “But I think that’s how you grow. For the first few months it was just trial and error. I did a HR module with the MBA course but hadn’t put the theory into practice.” George took part in TA’s first Empowering Our Leaders for Success program along with 24 of the Company’s managers, and was given a mentor from the Senior Management Team – Chief Executive Officer, Steve Wood. “We scheduled half an hour for the first meeting, but it went for 90 minutes,” says George. “Steve was great. He talked about what the best companies in the world do in finance and how to replicate those practices. I established a contact at the AFL, who had implemented the shared services model TA has been developing.

• HR section of the Company intranet to include extensive Company information and easy access to a suite of policies, procedures and staff benefits. • Professional Development Review delivered through ConnX with all individual KPOs and KPIs linked to business unit objectives, and flowing directly into TA’s new Strategic Plan. • Major industrial relations review of all our agreements as a result in changes to the Federal Government’s workplace relations laws. • Develop a remuneration framework and an employee mobility plan to assist TA with international assignments and recruitment.

“Steve spoke a lot about the importance of thanking staff and getting to know them over lunch or a coffee. He also advised me to encourage staff to work through solutions to problems, and to empower them with decision-making.”

• Maintenance and continuous improvement of current programs.

Following his sessions with the CEO, George – as a graduate of the Empowering Our Leaders for Success program – became a coach to the next intake of trainee leaders. In 2007–2008, TA conducted three programs including one for Member Association staff.

TENNIS AUSTRALIA STAFF GROWTH 2004–2008

150

George coached Tennis NSW HR Coordinator Alison Farah and, at TA, Pro Circuit Coordinator Mark Handley.

120

“I’d never done anything like this before,” says George. “It has been a great way of getting to know fellow managers and applying theory in real life, such as doing a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) with the people I am coaching.” As a result of his position at TA and connection with mentor Steve Wood, George became custodian of TA’s Strategic Plan after attending the Senior Management Team’s off-site planning session in February 2008. “I became the owner of the document and any changes made to the Strategic Plan come through me. I make sure it aligns with the overall document because I understand how it has been set up. The Strategic Plan covers the key areas of activity TA has identified to help us become the greatest tennis nation on the planet.”

(AS OF JUNE 30 EACH YEAR)

145

90 60

30 June

101

116

80 65

30 0

2004 2005 2006 2007 2008

Table 6.2 Full-time employee statistics. continued over Human Resources continued

Human Resources: our team 1. Geoff Pollard

2. Steve Wood

3. Craig Tiley

4. Digby Nancarrow

5. John Clark

6. Sarah Clements

7. Raelene Turner

8. Chris Yates

9. David Roberts

10. Steve Ayles

11. Maxine McKendrick

12. Liz Meloni

13. Rosalyn Kane

14. Lisa Meehan

15. Brent Larkham

16. John Fitzgerald

17. David Taylor

18. Sandon Stolle

19. Paul Kilderry

20. Jaslyn Hewitt

21. Anthony Lane

22. James Trotman

23. Shannon Nettle

24. Milo Bradley

25. Paul Baccanello

26. Ian Prangley

27. Damian Prasad

28. Craig Morris

29. Wendy Shipp

30. Michael Robertson

31. Geoff Quinlan

32. Machar Reid

33. Kim Kachel

34. Wally Masur (Syd.)

35. David Hodge (Bris.)

36. Broderick Dyke (Adel.)

37. Chris Mahony (Melb.)

38. Travis Atkinson

39. Karen Clydesdale

40. Marina Toskas

41. Karen Annear

42. Patrick McInerney

43. Joe Kubizniak (NSW)

44. Lawrence Latisenka (SA) 45. Tim Bray (Vic.)

46. Rob Leeds (Qld)

47. Andrea Buckeridge

48. Belinda Kleverlaan

49. Cameron Pearson

50. Kathryn Oyeniyi

51. Fiona Luscombe

52. Mark Handley

53. Mark Edney

54. Francis Soyer

55. Wayne Spencer

56. Melissa Jelliff

57. Robin O’Neill

58. Vicki Garrett

59. Kylie Buckley

60. Brenden Sharp

61. Juhi Gupta

62. Emily Hewett

63. Chris Head

64. Brenda Tierney

65. Sallee Trewin (m/l)

66. Steve Lock

67. Di MacDonald

68. Mark Buttifant

69. Jamie Parrott

70. Michael Allder

71. Troy Murrell

72. Andrew Nield

73. Andrew Reynolds

74. Glenn Kellett

75. Paul Kattestaart

76. Angela McCalman

77. Cate Murray

To match the face to the role see the organisational chart on pp 70–72 68

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

78. Meghan Tozer

79. Marnie Bignell (m/l)

80. Kristy Plunkett

81. Anna Eagle (m/l)

82. Chanh Lam

83. Darren Pearce

84. Maggie Ellis

85. Prue Ryan

86. Kim Trengove

87. Daniela Toleski

88. Rob Oâ&#x20AC;&#x2122;Gorman

89. Nick Davies

90. Antonio De Carvalho Vong 91. Darren Saligari

92. Jenny Watson

93. Lauren Hamilton

94. Nathalie Gibson

95. Ashlee Butera

96. Brad Smith

97. Renata Capela

98. Joanne Louder

99. Max Goonan

100. Sarah Borsitzky

101. Danielle Malthouse

102. Sarah Mithen

103. Karl Budge

104. Tricia Armstrong

105. Rachel Cahill

106. Jannelle Jorgensen

107. Joanne Brown (m/l)

108. Melissa King

109. Frances Travers

110. Gayle Pohl

111. Gracie Costanzo

112. Adrian Richardson

113. Paul Daly

114. Fenton Coull

115. Sascha Miller

116. Rob Miraglia

117. Brant Davey

118. Jordan Culley

119. Liz Hill

120. Louise Brown

121. Kerrie Clarke (m/l)

122. Carla Verzulli

123. Sylvia Lokollo

124. Alexandra Yosifidis

125. Natalie Thompson

126. Callum Michener

127. Jan Moran

128. Sandra Fabris

129. Karen Jeffress

130. Jodie Foy

131. Isabelle Kluger

132. Luke Petterson

133. Melissa Patton

134. Andrew Player

135. Luke Kuret

136. Adam Beames

137. Samantha Jones

138. Matthew Wood

139. Ann West

140. Kevin Byrne

141. George Petaroudas

142. Mary Sebire

143. Lynda Whiteley

144. Alex Foxall

145. Wendy Owen

146. Jemelle McGuiness

147. Donna Godfrey

148. Selina Ross

149. Peta Hiscock

150. Mandy Shutie

151. Craig Watson

152. Kim Dannoun

153. Laura Michell

154. Cassie Keith

To match the face to the role see the organisational chart on pp 70â&#x20AC;&#x201C;72 Human Resources

Tennis Australia organisational structure Tennis and AO Manager Tournaments & Competitions 49. Cameron Pearson

General Manager Community Tennis 57. Robin O’Neill Junior Tennis Coordinator 58. Vicki Garrett

Manager Coach Development 38. Travis Atkinson

Tournaments & Competitions Assistant 50. Kathryn Oyeniyi

Community Tennis Coordinator 59. Kylie Buckley

Camps and Tours Coordinator 53. Mark Edney

National Programs Administrator 61. Juhi Gupta

Junior Competitions Coordinator 54. Francis Soyer

Ballkid Program Coordinator 62. Emily Hewett National Facilities Manager 63. Chris Head

Talent Search Coordinator 33. Kim Kachel

Coach Development Coordinators 43. Joe Kubizniak (NSW) 44. Lawrence Latisenka (SA) 45. Tim Bray (Vic.) Vacant (WA) 46. Rob Leeds (Qld)

Chief of Officials 55. Wayne Spencer Officiating Coordinator 56. Melissa Jelliff

National Coaches 34. Wally Masur (Sydney) 35. David Hodge (Brisbane) 36. Broderick Dyke (Adelaide) 37. Chris Mahony (Melbourne) Vacant (Perth)

Executive Assistant 13. Rosalyn Kane

Head Tennis Professionals – Melbourne Park 69. Jamie Parrott

President 1. Geoff Pollard

Program Team Leader – Melbourne Park & Albert Reserve 73. Andrew Reynolds

Centre Manager – Albert Reserve 74. Glenn Kellett

Chief Executive Officer 2. Steve Wood

Marketing, Media and e-Communications

Commercial Tennis Administration Coordinator 76. Angela McCalman

Executive Assistant 11. Maxine McKendrick Administration Assistant 12. Meloni Liz Meloni Liz

Director Marketing

Tennis Professionals 70. Michael Allder 71. Troy Murrell

National Membership Coordinator 92. Jenny Watson

Manager e-Communications 86. Kim Trengove

Manager Media 83. Darren Pearce

Publishing Assistant 87. Daniela Toleski Communications Assistant 88. Rob O’Gorman

Media Operations Coordinator 84. Maggie Ellis Media & Public Relations Coordinator 85. Prue Ryan

Web Producer 89. Nick Davies Assistant Web Producer 90. Antonio De Carvalho Vong e-Communications Coordinator 91. Darren Saligari

Vacant Communications Assistant Vacant

Manager Corporate Hospitality 104. Tricia Armstrong

Manager Sponsorship 99. Max Goonan

Account Executive 105. Rachel Cahill 106. Jannelle Jorgensen 107. Joanne Brown (m/l)

Sponsor Account Manager 100. Sarah Borsitzky 101. Danielle Malthouse 102. Sarah Mithen

Corporate Hospitality Administration Assistant 108. Melissa King

Sponsorship Coordinator 103. Karl Budge

Manager Broadcast 96. Brad Smith Broadcast Production Manager 97. Renata Capela Broadcast Technical Coordinator 98. Joanne Louder

Event Operations Assistant Vacant

Human Resources Manager 121. Kerrie Clarke (m/l)

HR Team Leader - AO & HR Systems 122. Carla Verzulli

HR Coordinator Corporate Services 125. Natalie Thompson

Site Operations Assistant 118. Jordan Culley

Safety Manager 126. Callum Michener

Des Nicholl Vice President Bill Beischer Ashley Cooper AO

Reception Supervisor 127. Jan Moran

Chris Freeman

Receptionists 128. Sandra Fabris 129. Karen Jeffress

HR Coordinator - AO Recruitment 123. Sylvia Lokollo

Andrea Mitchell Peter Ritchie AO

HR Officer 124. Alexandra Yosifidis

David Stobart

Information Technology

Scott Tanner Service Desk 131. Isabelle Kluger

8. Chris Yates

Network 134. Andrew Player

Development 137. Samantha Jones

132. Luke Petterson

135. Luke Kuret

133. Melissa Patton

136. Adam Beames

Office Bearers

138. Matthew Wood

David Roberts Company Secretary

Finance, Legal and Administration Executive Assistant 77. Cate Murray

Brand Manager – Tennis 79. Marnie Bignell (m/l) Marketing Administrator – Tennis 80. Kristy Plunkett

Manager Business Operations 139. Ann West

9. David Roberts

Brand Manager – Events 81. Anna Eagle (m/l) Marketing Administrator – Events 82. Chanh Lam

Manager Merchandise & Licensing 93. Lauren Hamilton Merchandise Planner Analyst Vacant Merchandise Coordinator – Retail 94. Nathalie Gibson Merchandise Coordinator – Uniforms & Corporate Catalogue 95. Ashlee Butera

General Manager Commercial 5. John Clark

Procurement Coordinator 140. Kevin Byrne

Finance Administration Assistant Vacant

Building Services and Maintenance Coordinator Vacant

Financial Controller 141. George Petaroudas Financial Analyst 142. Mary Sebire Payroll Manager Vacant

EventsCo Sydney International Tournament Director 151. Craig Watson Administration & Events Coordinator 152. Kim Dannoun

General Counsel 148. Selina Ross

Financial Accountant 143. Lynda Whiteley Assistant Financial Accountant 144. Alex Foxall Accounts Payable Officer 145. Wendy Owen Bank Reconciliation Officer 146. Jemelle McGuiness

To put a face to

Legal Counsel Assistant 149. Peta Hiscock

the name, match

Legal Counsel 150. Mandy Shutie

the number next to the

Accounts Payable Assistant 147. Donna Godfrey

Manager EventsCo 10. Steve Ayles

employee with

EventsCo is a new business unit that was formed in early 2008 to focus on raising the profile and profitability of the Australian Open Series events for 2009. p20

the photographs on pages 68–69.

Brisbane International Tournament Director 10. Steve Ayles

Operations Manager 154. Cassie Keith

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

p43

Steve Wood Chief Executive Officer

PA/IT Administration Support 130. Jodie Foy

Administration Assistant 153. Laura Michell

p43

Geoff Pollard AM President

Site Operations Manager 117. Brant Davey

4. Digby Nancarrow

Brand Manager – Acting 78. Meghan Tozer

Commercial

Manager Ticketing and Tourism 109. Frances Travers

General Manager Human Resources

Human Resources Administration Assistant 120. Louise Brown

Physio/Strength & Conditioning Coaches – AIS Pro Tour Program 26. Ian Prangley 27. Damian Prasad Vacant

Business Development Coordinator 75. Paul Kattestaart

Event Operations Coordinator 115. Sascha Miller

Board

Site Administration Assistant 119. Liz Hill

7. Raelene Turner

Commercial Tennis Customer Service Manager 72. Andrew Nield

Manager Facilities & Development 116. Rob Miraglia

Human Resources

Manager Tennis NT 67. Di MacDonald Manager Commercial Tennis 68. Mark Buttifant

Manager Event Operations 114. Fenton Coull

Manager Access Control 112. Adrian Richardson Access Control Assistant 113. Paul Daly

Operations Administration Assistant 110. Gayle Pohl

22. James Trotman 23. Shannon Nettle 24. Milo Bradley 25. Paul Baccanello

Professional Development Coordinator 48. Belinda Kleverlaan

Research Coordinator 66. Steve Lock

Operations Administration Manager 111. Gracie Costanzo

6. Sarah Clements

3. Craig Tiley

Men’s Coaches – AIS Pro Tour Program 21. Anthony Lane

Coach Development Project Manager 47. Andrea Buckeridge

Facility Development Assistant 64. Brenda Tierney 65. Sallee Trewin (m/l)

General Manager Operations

Women’s Coaches – AIS Pro Tour Program 18. Sandon Stolle 19. Paul Kilderry 20. Jaslyn Hewitt

Sports Science Manager 32. Machar Reid

Coach Education Coordinator 42. Patrick McInerney

Player Services Administrator 14. Lisa Meehan

Fed Cup Captain & Women’s Coach – AIS Pro Tour Program 17. David Taylor

NA & Sports Science Coordinator 31. Geoff Quinlan

Coach Membership Administrator 41. Karen Annear

Director Australian Open & Tennis

Davis Cup Captain 16. John Fitzgerald

High Performance Academy Manager 30. Michael Robertson

Coach Membership Coordinator 40. Marina Toskas

Pro Circuits Coordinator 52. Mark Handley

Head Coach AIS Pro Tour Program 15. Brent Larkham

Athlete Development Assistant 29. Wendy Shipp

Coach Membership Consultant 39. Karen Clydesdale

Pro Circuits Manager 51. Fiona Luscombe

National Programs Consultant 60. Brenden Sharp

Manager Athlete Development 28. Craig Morris

Operations

m/l – Maternity leave

Tennis Australia organisational structure

Australian Open 2008

0708

It was a magical fortnight at Melbourne Park, with each day of Australian Open 2008 providing the drama and action that the first Grand Slam of the year is renowned for.

Resurfacing the courts at Melbourne Park. Australian Open 2008

Australian Open 2008 The Australian Open is much more than a tennis tournament. It is an event, a series, an experience, an excitement that exemplifies all that is best about being Australian. We are aspirational to Asia/Pacific and inspirational to Australians.

AO Brand Statement

We are classic in stature but contemporary in style. We are a leader who moves forward by example. We celebrate our individuality, but collectively we are greater than any individual. We are uniquely and clearly Australian, but we embrace visitors from all around the world. We attract the best tennis players in the world, but our strength comes from being affordable and accessible to the broadest audience. We use technology to enhance the sport. We use the sport to create a complete entertainment experience. We are innovative. We are passionate. We are welcoming. And we do it with attitude. It is the biggest sporting event in our own country. The biggest in the Southern Hemisphere. It is a showcase of The Wonderful World of Tennis.

The Big Blue Picture

It is unique. It is us. It is Australian.

Prize money:

AUD$20.6 million

Men’s and women’s singles prize money:

AUD$1,370,000

Surface:

Plexicushion

Sessions of play:

12 days, 11 nights and two twilight sessions.

• A fleet of 81 official cars supplied by the tournament’s major sponsor, Kia Motors, made in excess of 35,000 journeys transporting players to and from Melbourne Park, clocking up more than 300,000 km.

Quick facts

• Favourite player profiles among the fans on australianopen.com saw both men’s and women’s finalists Jo-Wilfried Tsonga and Ana Ivanovic top the poll ahead of world No.1 Roger Federer and Maria Sharapova. • Jo-Wilfried Tsonga led the men’s competition for aces served at 100, with Serena Williams topping the women’s at 40. • The fastest serves of the tournament were recorded by Andy Roddick (237 km/h) while Venus and Serena Williams recorded the women’s fastest serves (199 km/h). • The racquet stringers strung more than 3067 racquets using over 37 km of string. • Entertaining the crowds were some of Australia’s top music acts including The Veronicas, Thirsty Merc, James Reyne, Mental as Anything, Evermore and Jess McAvoy.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

An all-time record of patrons

The profiles of Ana Ivanovic and Jo-Wilfried Tsonga were the most popular on australianopen.com.

AO Play-off The Australian Open (AO) Play-off was held from 15–21 December at Melbourne Park. This event gives top 16 male and 16 female Australian contestants – next to those already in the main draw – the opportunity to seal a spot in the AO. Tennis fans living in Melbourne, or those visiting the city, could watch the action free of charge. Victorians Christina Wheeler and Joseph Sirianni were the winning duo who entered the AO main draw. Wheeler defeated Olivia Rogowska 6-0 6-4 and Sirianni overcame Adam Feeney 6-3 4-6 6-3 6-4.

Record attendance AO 2008 set crowd records with attendance figures reaching an all-time record of 605,735 patrons, surpassing the record of 554,858 set in 2007. p59 It is the ninth consecutive year that the tournament has attracted more than half a million patrons. Day four of the tournament saw another record set with the highest ever Grand Slam day/ night combined attendance achieved, with 62,885 fans through the gates. This broke the record of 61,083 achieved by the US Open on Saturday 1 September 2007. The live sites in Shanghai, Sydney and Melbourne attracted a combined estimated attendance of 1,387,338. Those who couldn’t get along in person made sure they kept in touch through the official website australianopen.com powered by IBM with 7,456,693 million unique users recorded.

Attracting the world’s top players A star-studded men’s and women’s singles draw included eight men’s Grand Slam champions, seven women’s Grand Slam champions, all of the top 32 women and 30 of the top 32 men. A total of 45 nations were represented in the singles main draws (32 countries in the men’s singles and 37 countries in the women’s singles). Fans saw Serbia’s Novak Djokovic win his first Grand Slam title, and witnessed the incredible performance of Jo-Wilfried Tsonga from France, who came through the draw unseeded to reach the final, upsetting ninth seed Andy Murray, eighth seed Richard Gasquet, No.14 seed Mikhail Youzhny and world No.2 Rafael Nadal en route.

Photographer’s capture the action at AO 2008.

In the women’s singles final two 20 year olds battled it out, with Russian Maria Sharapova overcoming Ana Ivanovic from Serbia. For the second consecutive year an Australian won the Australian Open Junior Boys’ Championships. Bernard Tomic became the youngest winner in the Open era at 15 years and three months of age.

Behind the scenes Making it all happen behind the scenes were more than 4500 members of staff, including 319 Aviva Ballkids and 365 umpires. Internationally, a group of 28 Aviva Ballkids from Korea (24) and India (4) were selected to take part in the Aviva International Ballkids program, reinforcing the AO’s position as the Grand Slam of Asia/Pacific. p66

Strengthening links with Asia The mixed doubles final featured players from the Asia/Pacific region. But it was Tiantian Sun from China who teamed up with Nenad Zimonjic of Serbia who claimed victory over Indian pair Sania Mirza and Mahesh Bhupathi. The first two AO wildcard recipients were Denis Istomin and Iroda Tulyaganova, both of Uzbekistan, as the winners of the Asian Championships. continued over Australian Open 2008

Australian Open 2008 continued Video line-calling

Overcoming AO challenges

Video line-calling was once again an on-court highlight at Rod Laver Arena and, for the first time, it was used at Vodafone Arena. p94–95

Heat wasn’t a problem at AO 2008, with the revised and scientific Extreme Heat Policy in place. But a challenge was faced on the middle Saturday when rain completely washed out play on the outside courts.

Free kids’ day In a Grand Slam first, the AO opened its courts to the public on Australia Day from 10:30 am to 1:00 pm. All kids 12 years and under entered free with a paying adult and had the chance to experience playing tennis on an AO court, where the world’s best come to play. This initiative was part of TA’s commitment to grassroots.

The main event The AO was the biggest single news and sports story across Australia during the fortnight with 71,912 separate items broadcast on television or radio or published online or in newspapers. Exposure in domestic newspapers was valued at a record AUD$37.8 million.

On day six of the tournament, world No.1 Roger Federer took nearly four and a half hours to overcome unseeded Janko Tipsarevic, forcing the night session at Rod Laver Arena to begin after 9:00 pm with the men’s third round encounter between Lleyton Hewitt and Marcos Baghdatis beginning at 11:49 pm and finishing at 4:34 am. This match will go down in history as one of the epic battles fought out at Melbourne Park. In illegal gambling, TA had a zero tolerance policy in place for AO 2008. This focus was on illegal gambling, match fixing and the communication of sensitive information that may have affected the outcome of a match. The use of laptops was prohibited in spectator viewing areas of all tournament courts without prior authorisation from TA management. Pressure from global tennis remains constant with record prize money at Wimbledon, the US Open and increases across ATP/WTA tour events. In order to meet this pressure, TA will budget at least a seven per cent increase in AO prize money for 2009 taking the total prize money to over AUD$22 million.

Wildcard opportunities Wildcards were awarded to eight male and eight female Australian and international players. Seventeen Australian players were granted qualifying wildcards, which enabled them to gain valuable experience from playing the qualifying rounds. The wildcard exchange with the French Tennis Federation and the United States Tennis Association provides Australian players with valuable reciprocal opportunities at other Grand Slams.

Australia promoted worldwide A total of 1654 representatives of the media were accredited at AO 2008 – with the world’s major newspapers, TV and radio broadcasters all strongly represented.

AO 2008 results Men’s singles

[3] Novak Djokovic (SRB) d Jo-Wilfried Tsonga (FRA) 4-6 6-4 6-3 7-6(2)

Of these, there were 664 international and 990 Australian members of the media. AO 2008 was broadcast for a record 6700 hours in 157 countries around the globe reaching 425.1 million households.

Women’s singles

[5] Maria Sharapova (RUS) d [4] Ana Ivanovic (SRB) 7-5 6-3

Men’s doubles

[8] Jonathan Erlich/Andy Ram (ISR) d [7] Arnaud Clement/Michael Llodra (FRA) 7-5 7-6(4)

Women’s doubles

Alona Bondarenko/Kateryna Bondarenko (UKR) d [12] Victoria Azarenka/ Shahar Peer (BLR/ISR) 2-6 6-1 6-4

Asia continues to be the dominant market, accounting for 3416 hours of coverage, the highest of any region. Exposure and gross media value were at their highest in China with 898 hours televised across nine separate broadcasters.

Mixed doubles

[5] Tiantian Sun/Nenad Zimonjic (CHN/SRB) d Sania Mirza/Mahesh Bhupathi (IND) 7-6(4) 6-4

Australian Open 2008 main draw

Australian Open Junior Championships Boys’ singles

[5] Bernard Tomic (AUS) d [10] Tsung-Hua Yang (TPE) 4-6 7-6(5) 6-0

Girls’ singles

[14] Arantxa Rus (NED) d Jessica Moore (AUS) 6-3 6-4

Boys’ doubles

Cheng Peng Hsieh/Tsung-Hua Yang (TPE) d [2] Vasek Pospisil/Cesar Ramirez (CAN/MEX) 3-6 7-5 [10-5]

Girls’ doubles

[1] Ksenia Lykina/Anastasia Pavlyuchenkova (RUS) d Elena Bogdan/Misaki Doi (ROU/JPN) 6-0 6-4

Australian Wheelchair Tennis Championships Men’s wheelchair singles

[1] Shingo Kunieda (JPN) d [4] Michael Jeremiasz (FRA) 6-1 6-4

Women’s wheelchair singles

[1] Esther Vergeer (NED) d [2] Korie Homan (NED) 6-3 6-3

Men’s wheelchair doubles

[1] Shingo Kunieda/Satoshi Saida (JPN) d [2] Robin Ammerlaan/ Ronald Vink (NED) 6-4 6-3

Women’s wheelchair doubles

[1] Jiske Griffioen/Esther Vergeer (NED) d [2] Korie Homan/ Sharon Walraven (NED) 6-3 6-1

Quad wheelchair singles

[2] Peter Norfolk (GBR) d [1] David Wagner (USA) 6-2 6-3

Quad wheelchair doubles

[1] Nicholas Taylor/David Wagner (USA) d [2] Sarah Hunter/ Peter Norfolk (CAN/GBR) 5-7 6-0 [10-3]

Aviva Ballkids do a wonderful job during the tournament. 76

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Tennis

0708 The Tennis business unit is divided into four departments. These are: Community Tennis, Tournaments and Competitions, Coach Development and Athlete Development.

Tennis

Sustainability and the environment

Aviva Tennis Hot Shots is TAâ&#x20AC;&#x2122;s kidsâ&#x20AC;&#x2122; starter program. Tennis

Strategy

Objectives

Tennis

Champions

Identify talented athletes and offer the leading athlete development environment globally.

Champions

Attract, develop and retain the best coaches globally.

Champions

Offer the best competition environment to develop champions.

Infrastructure

Run a successful commercial operation at Melbourne Park as a model for other facilities.

Infrastructure

Improve the quality of the experience delivered by tennis facilities.

Infrastructure

Fund improvement of tennis infrastructure.

Infrastructure

Encourage and support the development of new facilities where they are needed most.

Infrastructure

Monitor, maintain and improve court and equipment standards.

Grassroots

Adopt a National Membership program.

Grassroots

Increase the number and depth of engagement of active players.

More champions and depth across all levels. More and better national infrastructure. Building and delivering (more) effectively to the ‘grassroots’.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

272

TA assisted in the construction or improvement of 272 courts during 2007–2008.

Increasing participation at grassroots level is a major objective.

Re-launch of Aviva Tennis Hot Shots

Innovation through research

In 2007–2008, Community Tennis worked to develop successful national community programs. The main focus was the re-launch of Aviva Tennis Hot Shots, a modified ball competition program, with the main objective being to add deliverers to the program. As of 30 June 2008, 281 deliverers were registered, and this continues to grow as more coaches become interested in providing this program for their students. Aviva Tennis Hot Shots enables kids under the age of 12 to participate in a competition program that makes playing tennis more fun and a lot easier.

National tennis research was conducted and the data has been completed and distributed internally for review. TA has also put ball testing procedures in place and established benchmarks for operational performance. The court pace testing protocol, which TA developed, has been internationally accepted.

Community Tennis also provided targeted support to indigenous athletes and athletes with intellectual disability by developing competition and training opportunities.

Improved tennis facilities Developing welcoming tennis facilities has been a major objective of the Commercial Tennis department. This has incorporated running a successful commercial operation – renamed Tennis World – at Melbourne Park, as well as creating funding opportunities for improved facility standards. A National Facility Blueprint is being developed in partnership with the Member Associations (MAs) to ensure new facilities are built where and how they are needed in order to be successful. The blueprint will also be used to support and open communication with local councils. The National Court Rebate Scheme is in its second year of operation. This was launched to stimulate court growth and improve facilities nationally. The demand for this rebate continues to grow with the Board approving an extra AUD$1 million towards the scheme. MAs are invited to submit applications for funding to develop or upgrade court surfaces and associated infrastructure. p82 TA assisted in the construction or improvement of 272 courts during 2007–2008.

User-friendly national tournament calendar Developing a user-friendly national tournament calendar was a major objective to enable athletes to compete at their peak. TA has increased the number of competitive opportunities for athletes, both at the junior and senior level, with 22 Pro Circuits events, 18 Australian Money Tournaments (AMTs) and more than 20 major junior events. Giving players an increased opportunity to compete during the year has helped TA to integrate tournaments and competitions into a national framework. TA has also maintained and continued to develop the Australian Ranking System.

The court pace testing protocol, which TA developed, has been internationally accepted. The National Talent Search program identifies and provides opportunities for talented athletes.

continued over Tennis

Tennis continued New partnership for Pro Circuits The Tournaments and Competitions department maximised the quality and quantity of professional competitive opportunities for athletes and will increase the number of Pro Circuit events to 24 in 2008–2009. TA will have an 80 per cent buy-in from local communities in the support of these events. The Pro Circuit has moved to an independent promoter model, where TA is in partnership with the local promoters at these events. TA also signed with Sporting Spectrum to be a partner to deliver these events. This is an exciting arrangement that will help to realise the full potential of the Australian Pro Circuit. The success of the Pro Circuit so far can be credited to a terrific partnership between TA and the many dozens of dedicated and hard-working local communities. By adding a professional organisation like Sporting Spectrum to the mix, TA is planning to take the Pro Circuit to the next level and generate a benefit that will be felt in the local communities and throughout the sport. Forming part of the official worldwide tour, the Pro Circuit offers Australian and international athletes the opportunity to gain valuable WTA and ATP world ranking points. The Pro Circuit continues to be a vital step in the athletes’ professional journey and has provided valuable competitive opportunities for player such as Lleyton Hewitt, Pat Rafter, Alicia Molik, Samantha Stosur, and more recently Chris Guccione and Casey Dellacqua. This partnership will enhance the global recognition of the Pro Circuit and a key feature is that the majority of the events will be staged through regional Australia. The Pro Circuit season comprising the 24 events started in Rockhampton on 8 September showcasing a combined men’s USD$15,000 Futures and women’s USD$25,000 circuit event.

National Coach Education program The Coach Development department worked on delivering a successful National Coach Education program. Education takes place primarily in three streams: Junior Development, Club Professional and High Performance. During the course of the year 13 Junior Development Courses, five Club Professional Courses and one High Performance Course operated. TA also ran a successful Grand Slam Coaches’ Conference at the Australian Open (AO) in January and decided to hold this international coaches’ conference every year instead of once every two years. After hiring five coach development coordinators in each of the MAs recently, TA has more momentum to provide further coaching resources in 2008–2009. This will include developing more educational DVDs. TA operates a year-round calendar of coaching courses and workshops creating learning opportunities on the latest techniques in coaching and allows coaches to update their knowledge and skills on a regular basis.

National Coach Membership program TA currently has 1637 coaches registered as part of TA’s Coach Membership program. The program offers three main membership categories (Premium, Standard and Associate Member) with a range of benefits. These include insurance cover protecting against all coaching-related liability exposures, subscription to a regular e-newsletter, hardcopy newsletters, articles in Australian Tennis Magazine, mail-outs, website information and discounts on a range of coaching products.

Opportunities for talented athletes TA has the National Talent Search in place to identify and provide opportunities for talented athletes. Talent Search is a year-round national program that is open for all young athletes from regional and metropolitan Australia. The program is divided into two activities, the first being Talent Search Days and the second phase is the training and coaching opportunities for the identified talent. During 2007–2008 Talent Search Days engaged 2706 kids aged between six and 11, with another 500 kids participating from last year. Each MA also has its own Talent ID coaching team and the program has a support manual that details the coaching activities, physical testing and game exercises that should take place during Talent Search Days.

Highly focused collective training environments National Academies (NAs) have been established in Adelaide, Brisbane, Melbourne, Perth and Sydney. Each of these academies is led by a TA national head coach and supported by a team, which includes strength and conditioning coaches, assistant coaches and services and support from the state institute and academy programs. Athletes training in NAs are on a scholarship status, and athletes can either be a full scholarship holder or a partial scholarship holder. Participants reach scholarship status by achieving national and international criteria. These environments are also supported by underpinning state programs as well as state academies in ACT, Tasmania and the Northern Territory. In 2007–2008, 11 NA members were on a full scholarship while 63 were on a partial scholarship. The final phase in developing our NAs will be undertaken over the next 12 months, with TA now underwriting and taking full control of our national scholarship holders.

TA currently has

1637

coaches registered as part of TA’s Coach Membership program.

Coaches are covered for all coaching-related liability exposures as part of the Coach Membership program. 80

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

The winning 2007 Optus Australian 14/u World Junior Tennis Team (l to r:) Ben Wagland, Jason Kubler, Derek Burden (coach) and Joey Swaysland.

Sport science and medicine TA appointed Dr Machar Reid to lead its sports science team as well as Dr Tim Wood as the Chief Medical Advisor. In addition, TA established national fitness protocols with benchmarks and every scholarship athlete in Australia is required to meet the minimum fitness benchmarks to continue their scholarship status. National biomechanics and technical benchmarks have been established through Dartfish, an effective and complete video analysis software package, which includes all necessary functionality to analyse technical performance during and after training and competition.

Australian Institute of Sport (AIS) Pro Tour Program The AIS Pro Tour Program helps to foster successful professional athlete performance and the program has 12 full-time staff. The program continues to expand, with 24 athletes involved this year, up from 17 in 2007, with all athletes in the program enjoying career high rankings. Several world-class coaches also came into the program to foster the development of Australia’s future champions. Based in Australia for six months, and split between Sutton, England and Varese, Italy for the remaining six months of the year. The AIS Pro Tour Program is an integral part of the player development pathway and the program will continue to grow. Its main focus is to service these athletes to maintain and build on the results achieved to date.

Player achievements 2007–2008 A number of Australian players achieved excellence on the world stage during 2007–2008, with the juniors showing immense promise. The 2007 Optus Australian 14/u World Junior Tennis Team consisting of Ben Wagland, Jason Kubler and Joey Swaysland won the final on 11 August for the first time. Mark Verryth, Bernard Tomic and Alex Sanders won the Junior Davis Cup on 1 October 2007.

AIS Pro Tour Program members Men Miles Armstrong (WA) Carsten Ball (US) Andrew Coelho (Vic.) Colin Ebelthite (SA) Adam Feeney (NSW) Samuel Groth (Vic.) Chris Guccione (Vic.) Alun Jones (ACT) Greg Jones (NSW) Dayne Kelly (Vic.) Brydan Klein (WA) Nick Lindahl (NSW) Peter Luczak (Vic.) Robert Smeets (Qld) Mark Verryth (Vic.) Women Alison Bai (ACT) Casey Dellacqua (WA) Jarmila Gajdosova (Vic.) Shayna McDowell (Qld) Marija Mirkovic (Vic.) Jessica Moore (WA) Sally Peers (Vic.) Olivia Rogowska (Vic.) Samantha Stosur (Qld)

Isabella Holland, Sally Peers and Olivia Rogowska won the Junior Fed Cup on 1 October 2007. Bernard Tomic hoisted his third prestigious international Orange Bowl trophy on 9 December 2007. Tomic became the youngest player in the Open era to win the AO junior boys’ singles title on 26 January 2008. Jessica Moore was a finalist in the AO junior girls’ singles title on 26 January 2008. Casey Dellacqua was a finalist with Francesca Schiavone (ITA) in the women’s doubles event at the French Open on 7 June 2008 and entered the top 50 on 10 June 2008. Brydan Klein claimed his fourth professional singles title, winning the F2 Futures tournament in Belarus on 21 June 2008.

FUTURE NATIONAL MEMBERSHIP PROGRAM The National Membership program will be a key focus of TA’s Community Tennis team in 2008– 2009. TA has defined a membership program in partnership with the MAs. As ongoing discussions take place, the overall objective is to roll out the National Membership Program in 2009. The National Membership program will identify where and how people access tennis and what they want out of the game. It will recognise and motivate the provider of tennis services to register its participants as the program will provide a platform that creates a sustainable base for growth. TA will work to cater to three different groups of people: the tennis fans, the competition player and the social player. This program will lead to the development of a national rankings system that will ultimately cover competitions nationally.

Chris Guccione and Sam Stosur are members of the AIS Pro Tour Program.

continued over Tennis continued

AIS Pro Tour Program Varese Milano

Tennis continued

Italy Darwin Tennis NT

England London Tennis Queensland Brisbane Gold Coast

Tennis SA

Sutton

Sydney Tennis NSW ACT Tennis ACT

Perth Tennis West

AIS Pro Tour Program

Melbourne Tennis Victoria

AO Series 2008 events Mondial Australian Women’s Hardcourts Next Generation Adelaide International Medibank International Sydney Moorilla Hobart International Australian Open

TENNIS AUSTRALIA

National Academies Brisbane National Academy Adelaide National Academy Sydney National Academy Hobart National Academy Melbourne National Academy

Hobart Tennis Tasmania

Map not to scale

CASE STUDY LAHARUM TENNIS CLUB UPGRADES The upgrade to Plexicushion courts at AO 2008 created a lot of interest in the new court surface and this led to an increase in National Court Rebate Scheme applications in the second half of the financial year.

Plexipave has the same playing characteristics as Plexicushion but is cheaper to install for clubs. The Laharum Tennis Club is one example of a club that undertook the application procedure and received over AUD$40,000 funding to transform its facilities. Established in 1924, the club is located on Cameron Oval Reserve, in Laharum, west Victoria. This was its second major upgrade, the first back in 1954 when the club’s dirt courts were sealed for the first time. It was a big project to undertake, but the club desperately needed to replace its courts. “Although planning and preparation took five years, the project was constructed within a seven month timeframe, three months ahead of our best-expected schedule,” Club Secretary Jo Gardner said. “We really valued the ease of application and appropriateness of the funding process to our project.” Works were completed in March 2008 with six new courts built from the ground up on a cement base. The redevelopment also included fencing, nets, posts, sleeves, caps and lighting for two courts. “We have been able to raise our profile as a sporting club within the district and have welcomed the opportunity to share our experience with other clubs who have been inspired by our work to improve their own facilities,” she said.

The redeveloped courts at Laharum Tennis Club.

“The upgrade has provided the club with a sound basis for the future.”

IDENTIFYING TALENTED ATHLETES

4000

200

IDENTIFIED ATHLETES ATHLETE FORECAST

5,000 4,000

3000 2000

AVIVA TENNIS HOT SHOTS JANUARY TO JUNE 2008

2,706 2,139

1000 0

2006–2007 2007–2008 2008–2009 2009–2010

Table 8.1 Talent Search analysis.

NO. OF DELIVERERS/VENUES

NO. OF ATHLETES

5000

58/123

DELIVERERS VENUES

TOTAL 158 DELIVERERS 281 VENUES

150

39/59

100

28/43 15/24

50 0

STATE VENUES

1/5 ACT

13/22

3/4 NSW

QLD

TAS

1/1 VIC

Table 8.2 Aviva Tennis Hot Shots deliverer/venue analysis since the re-launch of the program.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Sustainability and the environment

0708

Tennis Australia has long demonstrated its commitment to the sustainability of our sport and the Australian environment through its use of a closed loop recycling system in its year-round and Australian Open operations.

Water saving promotion featuring former Olympic swimmer Matt Welsh at AO 2008. Sustainability and the environment

Sustainability and the environment AUD

$14.8m of infrastructure development.

Fewer red porous clay fines (brick dust) are lost due to the material used to treat courts.

TA supports new Water Conservation Plan Tennis Australia (TA) widened its sustainability activity by introducing a short-term extension to the National Court Rebate Scheme in November 2007 with the Tennis Court Treatment Subsidy available to all MA affiliated clubs, centres and associations where red porous courts are used.

New Water Conservation Plan Tennis Victoria worked together with the metropolitan water retailers (Yarra Valley Water, City West Water, South East Water and Western Water) to develop a solution that increases water savings and provides greater flexibility in the use of tennis courts. The alternative Water Conservation Plan for tennis clubs with red porous courts was developed and approved. TA supported this plan by providing up to AUD$200,000 in 2007–2008 to assist clubs that undertook specific actions to treat courts with a water saving product to reopen all red porous courts. The material used to treat the courts is either magnesium chloride (MgCl2) or calcium chloride (CaCl2). MgCl2 and CaC12 salts are used in road and mine maintenance to reduce dusting and to melt snow. Both materials dissolve readily in water, so over time rain will have a diluting effect, with trials on full courts showing water usage reducing by 60 to 80 per cent. Results also indicated a reduced expenditure on water and red porous clay fines (brick dust) as water consumption is substantially reduced and fewer fines are lost. The new plan is optional and clubs may continue to follow the old rules of watering one in two courts if they wish.

National Court Rebate Scheme Environmental factors, maintenance requirements and cost are all considerations when clubs are considering upgrading their courts. The National Court Rebate Scheme demonstrates TA’s commitment to proactively improving the quality and sustainability of tennis facilities around the country. Over the last 12 months, TA approved 39 National Court Rebate Scheme applications, stimulating AUD$14.8 million of infrastructure development. Resurfacing of 70 existing courts to Plexicushion took place and 44 courts were resurfaced to Plexipave. Over 30 of the applications also included lights, fencing, ancillaries (for example, nets and posts) and water saving measures. In 2007–2008 a total of 272 courts were resurfaced and 50 new courts constructed with ITF approved surfaces. To qualify for the National Court Rebate Scheme, clubs must: • be affiliated with a TA MA • have had works completed on or after 1 January 2007 • have a fully costed financial plan that demonstrates financial resources to undertake the work • have a current documented business plan that demonstrates the future benefits of any projected works • be developing or upgrading existing acrylic, clay or natural grass surfaces • agree to implement TA programs and club development initiatives. The tiered-level funding is in line with TA’s surface policy, which supports the four Grand Slam surface types.

Court surface type

Grand Slam played on the surface type

Plexicushion

Australian Open

A maximum rebate of AUD$16,000 per court.

Acrylic (brands within ITF Approved categories 1 and 2)

US Open

A maximum rebate of AUD$11,000 per court.

Natural clay

French Open

A maximum rebate of AUD$11,000 per court.

Natural grass

Wimbledon

A maximum rebate of AUD$11,000 per court.

Rebate

Table 9.1 Funds offered for installing or upgrading to the four Grand Slam surfaces.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Signage used around the grounds during the AO. The dust rises on a dry red porous court.

Albert Jacoby Innovation Grant TA encourages innovation in facility improvement and management, recognising innovators through the Albert Jacoby Innovation Grant*. Grant nominations are open to the entire Australian tennis industry and community but must be submitted by their state MA. Grant nominations are judged according to a range of criteria. Nominated innovations must: • be novel/new • be practical to future community tennis facility application • be of quantum benefit to tennis clubs/centres or associations • be considerate of future maintenance/replacement • reduce impact on the environment • be cost-effective or revenue generating. The maximum grant awarded is AUD$10,000 and, in recognition of current environmental challenges, in 2007–2008 MAs were encouraged to give preference to applications that focused on, or were related to, court surfaces. *The late Albert Jacoby was an innovator and the driving force behind tennis facility development in Australia.

TA and recycling TA is committed to ensuring the sustainability of our environment through the implementation of effective waste management processes, teaming with landlords Melbourne and Olympic Parks Trust (MOPT), site caterers Delaware North Australia, Visy Closed Loop and K&S Environmental to collectively operate a ‘closed loop’ recycling system.

Clearview bins are a key part of TA and MOPT’s proactive strategy to encourage staff and patrons to participate in waste recycling. Introduced in 2004, they have clear outer shells designed to build public awareness of the importance of recycling, assist waste sorting and content visibility. Of the other types of waste recycled, wooden pallets are made into new pallets or broken down into kindling for fires, concrete bricks are crushed and used as bedrock in road construction, waxed cardboard is turned into fire briquettes and food is composted at a farm in the Dandenong Ranges. The AO recycles thousands of used match tennis balls each year, selling them to the public as souvenirs and to clubs, coaches and players around the country. TA gives used balls to coaches, sells them to the public through the on-site shop or donates them to charity. Tennis ball cans are also recycled and recycled rubber was used to create the new on-court matting as part of the total on-court upgrade for AO 2008.

This on-site waste management program is constantly being updated utilising the latest in waste recycling practices. Year-round a sustainable waste management program operates at Melbourne Park. In 2007–2008 this encompassed day-to-day TA business operations including administration and the National Academies, and events including the Australian Open (AO), 18s National Camp, Talent Search Days, Futures and ITF Women’s Circuit events. The AO is TA and MOPT’s largest annual event. In 2008 the 14-day tournament attracted 605,735 spectators, and employed more than 4500 staff. The tournament takes a holistic approach to recycling that includes the use of 100 per cent recyclable packaging. The AO’s recycling program recovers and processes multiple streams of waste. AO 2008 generated 402.71 tonnes of waste, an increase of 28.46 tonnes from AO 2007. Of this waste, 72.94 per cent was recycled. Table 9.2 p86 The new waste stream that was added to the recycling system in 2007 continued with 80,000 plastic bags used by staff to collect litter, and ‘Clearview’ and wheelie bins were sent to the same plastics recycling centre as shrink wrap is sent. These bags, which previously went to landfill, will create items such as park benches and signage.

The clear view bins assist waste sorting and improve security. continued over Sustainability and the environment

Sustainability and the environment continued The new plan is optional and clubs may continue to follow the old rules of watering one in two courts. The alternative Water Conservation Plan allows all courts to be watered.

AO water reduction

Reduced energy consumption

Over the last two AOs, TA and MOPT have achieved a water usage reduction of approximately 54 per cent, saving almost six million litres of water each year.

To reduce energy consumption, temporary air-conditioning and refrigeration systems and photocopier units were reviewed and consolidated. Site water features were decommissioned.

Drought tolerant plants have been introduced into the gardens around Rod Laver Arena and Vodafone Arena with recycled water used in corporate areas and surrounding gardens.

During the AO, cleaning services only used chemicals that were non toxic and low hazardous with no impact on the sewer system. TA also supported the Sport 4 the Environment campaign during AO 2008. This provided a valuable on-site awareness opportunity which proved most successful from a patron engagement and media coverage perspective as swimming stars had 60 second showers in Garden Square. p83

During 2007, on-site rainwater harvesting tanks were installed and water from these tanks was used to clean match courts during AO 2008. Wetting agents were introduced during irrigation to ensure maximum moisture absorption into the soil and subsurface hydration systems, in preference to “above ground” were used. Dry flush urinals (desert cubes) were installed in all men’s urinals. These urinals save 150,000 litres of water per year per urinal. Flush time and flush quantity, where possible, were also reduced. TA and MOPT also retrofitted shower outlets with water saving devices.

AO amenities

Paperless environment TA focused on adopting a ‘paperless office’ with minimal paper being used as fewer documents are printed and more focus is put on scanning and converting all forms of documentation to a digital form such as in payroll. p47 Printers have also been set on default to print double sided to reduce the consumption of paper. By employing responsible recycling practices and developing sports facilities suited to the Australian climate, TA demonstrates its commitment to the sustainability of the Australian environment, and tennis, on a daily basis.

Waste type

2004

2005

2006

2007

2008

% increase/decrease 2007–2008

Total waste recycled

173.65

216.21

297.14

280.04

293.73

4.89%

Commingled waste (paper, plastic, cardboard, glass, aluminium)

148.77

186.72

210.09

204.8

211.42

3.23%

Food organic waste

24.32

31.05

32.49

48.06

57.85

20.37%

Polystyrene

560 kg

440 kg

550 kg

25%

Waste to landfill

107.17

96.83

148.42

94.21

108.98

15.68%

Waxed cardboard

420 kg

140 kg

210 kg

50%

Timber pallets

13.5

14.94

10.67%

Steel

2.32

-42%

Dirty plastic

2.4

6.44

168.33%

Table 9.2 AO waste recycled 2004 –2008 86

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

* Figures not available. Measures in tonnes unless otherwise specified.

Operations

0708 The Operations business unit is in the unique position of working intimately with all of Tennis Australiaâ&#x20AC;&#x2122;s business units to deliver the Companyâ&#x20AC;&#x2122;s strategic priorities, with a primary focus on delivering the Australian Open.

World No.2 Rafael Nadal approaches the new furniture on centre court at AO 2008. Operations

Objectives

Operations

EventsCo

To set standards of excellence for TA’s major events.

EventsCo

Deliver the Australian Open.

For all Tennis Australia major events Develop and implement an Events Operating Plan for TA events.

Strategy

Develop and implement a process for continuous improvement. For the Australian Open Project manage critical path. Stakeholder integration and coordination. Venue manager operations. Event resourcing plan. Deliver world class management and Grand Slam services and facilities. Functional area responsibilities.

Australian-owned company WM Loud was contracted to supply the new court surface … and commenced the civil and surface works in June 2007. Reconstruction of a new centre court takes place at Rod Laver Arena.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

The state-of-the-art automatic weather station monitored temperature, humidity and barometric pressure and provided the tournament with precinct specific weather measurements.

The new blue court at Rod Laver Arena.

A new experience at AO 2008 The Operations business unit implemented more than 70 initiatives at Australian Open (AO) 2008 with a focus on revitalising the event in as many areas as possible. A number of initiatives were geared towards enhancing the customer experience at the tournament including revised gate opening times, an enhanced weather bureau service, installation of new large screens on The Oval, a new retail superstore, fully ticketed Vodafone Arena and the creation of a new food court concept on the Rod Laver Arena concourse. Drawing on the success of AO 2007, Tennis Australia (TA) also made a conscientious decision to incorporate video line-calling at Vodafone Arena in addition to again using the technology at Rod Laver Arena. This involved the installation of two giant video screens, which added an exciting new dimension to the arena.

Changing the court surface AO 2008 saw the introduction of a new Plexicushion court surface and new official blue court colour, marking the most radical change to the tournament since it moved from grass at Kooyong to Rebound Ace at Melbourne Park more than 20 years ago. After an annual review of the courts, it was determined a major rebuild was required due to their age and condition. New technology was used during the layering process to guarantee a more consistent, medium to medium-fast pace across all courts at Melbourne Park and around Australia.

Australian-owned company WM Loud was contracted to supply the new court surface for five years and commenced the civil and surface works in June 2007. The new cushioned acrylic surface was first laid at Melbourne Park and Albert Reserve and has since been laid on an additional 272 courts around Australia. The entire project was completed in time for the AO in January and resulted in a huge success with the players.

continued over Operations

Operations continued Revised Extreme Heat Policy

Drafting Event Operations Plan

AO 2008 saw the tournament’s amended Extreme Heat Policy take effect, with players required to complete only the current set of a match that is under way once the extreme heat rule is invoked at the Referee’s discretion. Previously, players who had started a match had to complete it, regardless of whether the extreme heat rule had been invoked.

During the financial year, the Operations business unit developed the first draft of our AO Event Operating Plan. Due to the large scale of the AO, TA deemed it critical that all parties have a clearly defined scope of operating procedures and deliverables to ensure they meet not only their own objectives but also those of the event as a whole. This plan provides a comprehensive guide and framework for the delivery of the event.

To coincide with the new heat policy and for the first time in the event’s history, a weather forecaster and weather station was moved on site. The state-of-the-art automatic weather station monitored temperature, humidity and barometric pressure and provided the tournament with precinct specific weather measurements.

The draft captures key operational information including phases of project planning, event communications, issue resolution, safety risk management, tournament organisational structure and venue descriptions. It was designed to ensure a consistent approach and a clear outline of approved operating procedures and principles are achieved. While this particular draft plan provides a guide for the delivery of the AO tournament, it also offers a framework for other TA events, providing event managers with a practical tool to ensure a consistent process of planning. A final version will be produced prior to AO 2009. Moving forward, it is also envisaged that individual plans will be generated for AO Series events.

AO 2008 saw the continued development of safety policies, procedures and controls introduced over previous years with the additional goal of setting a higher safety standard for all user groups. The revised Extreme Heat Policy was introduced at AO 2008.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

AO OHS Safety management at AO 2008 was enhanced during each of the build, tournament and dismantle phases of the event. Due to the high risk nature of construction and the increasingly congested nature of logistics on site, the Site safety team focused its efforts on the build and dismantle phases. AO 2008 saw the continued development of safety policies, procedures and controls introduced over previous years with the additional goal of setting a higher safety standard for all user groups. Improvements included the introduction of a formal warning system and breach notices for safety code violations, random audits and a dedicated Safety Officer to support the Safety Manager. WorkSafe increased its presence on site with 10 site inspections during the three phases. A total of six incidents were reported to WorkSafe with only two of these resulting in lost time. This was an increase on AO 2007 but can be attributed to more diligent reporting rather than poor safety performance. The event had one accident investigation conducted, which resulted in some minor remedial works but no official provisional improvement notice was issued.

Following various government stakeholder meetings in January 2008 the Victorian Government announced an AUD$2 million investigation into the upgrade and redevelopment of Melbourne Park.

Managing international events During the financial year, Operations staff coordinated two Davis Cup away ties and one home tie. The first, a World Group play-off against Serbia on clay in Belgrade, took place from 21–23 September 2007. Australia lost the tie 1-4 and was relegated to the Asia/ Oceania Zone Group 1. The second tie took place from 8–10 February 2008 and was a first round against Chinese Taipei in Kaohsuing on hard court, which Australia won 5-0. Australia then played a semifinal tie against Thailand in Townsville on hard court, which took place from 11–13 April 2008. The team completed its second successive 5-0 victory earning them the right to play a final away tie against Chile in September 2008 for the right to return to the World Group in 2009. Operations also managed two Fed Cup ties during the financial year. The first of these, from 14–15 July 2007, was a World Group II play-off on the Gold Coast – the first home Fed Cup tie for four years – against Ukraine on outdoor hard court. The Optus Australian Fed Cup team lost 1-4 and was relegated to the Asia/Oceania Zone 1 play-offs. The eightteam round robin play-off event was held in Thailand from 30 January–2 February 2008. Australia defeated New Zealand and India but lost to Indonesia and Chinese Taipei to finish fourth overall. This result means that the team will remain in the Asia/Oceania Zone Group 1 in 2009 and contest the same play-off event in February 2009.

Melbourne Park master plan Following various government stakeholder meetings in January 2008 the Victorian Government announced an AUD$2 million investigation into the upgrade and redevelopment of Melbourne Park. The Government contributed AUD$1.5 million with TA and the Melbourne and Olympic Parks Trust (MOPT) also funding AUD$250,000 each to develop a business case for the project. The Operations and Tennis business units, in conjunction with the Marketing business unit and CEO Steve Wood, have since undertaken a series of meetings with MOPT and the State Government to develop a project management plan. A Project Steering Group and Project Working Group have been appointed to actively develop a business case for submission to the Government by the end of 2008. continued over Operations continued

Operations continued FUTURE • TA has created a new business unit – EventsCo – commissioned to focus on delivering bigger, better and more tennis events. This will commence with the revamped AO Series staged during 2008–2009 including the inaugural Brisbane International, to be played at Brisbane’s new home of tennis – the AUD$77 million State Tennis Centre, Tennyson. There are several operational challenges that come with staging a new event at a new venue and the alignment of our unit under the EventsCo umbrella promises an exciting year ahead. • Operations will oversee the construction of the new AO Player Restaurant and all associated site works and overlay impacts. • AO 2009 will feature enhanced on-site entertainment, night sessions on Hisense Arena, the first women’s singles night final and a new corporate hospitality layout on The Oval. • Introduction of improved business processes such as event risk management, disciplined scope of service documentation, online information dissemination and document management. • Development of a new site strategy for AO 2010 to maintain efficient delivery of a major event.

CASE STUDY CHANGING THE COURT EQUIPMENT Several operational and logistical challenges accompanied the move to a new court colour at AO 2008 including changing all court equipment to the trademarked ‘Australian Open True Blue’. After several months of testing, officials decided on the colour, choosing two tones of blue, a darker tone for the court itself, surrounded by a lighter tone to allow the players to hone their range and get a feel for the baseline at the opposite end of the court. Changing the court surface also enabled TA to revitalise the appearance of the courts and strengthen the unique identity of the AO as the ‘happy slam’, as coined by world No.1 tennis player Roger Federer in 2007. TA employed the services of Cobalt Niche Design Pty Ltd to assist establishing the new look of on-court furniture and equipment for AO 2008 and beyond. The 24 courts at Melbourne Park were re-fitted according to the level of presentation and facilities required on each court, depending on its size, level of TV coverage and utilisation. Changing the on-court set up was a 12-month project from development through to implementation during January 2008. The Operations business unit was responsible for the design and construction of all court equipment including central chair, player and line umpire seats, umbrellas, backdrops, serve speed displays, shade canopies, ball guards and court entry arches. AO 2008 new on-court equipment: > 12 player seat units > 24 central umpire chairs (including chair, shade canopy and seat) > 132 line umpire seats (including plinth and seat) > 10 serve speed displays > 1 player entry arch (including base, shade canopy, carpet and arch) > 20 statisticians seats (including plinth, shade canopy and seat) > 16 officials seating (including plinth, shade canopy and seat) > 80 ballguards

central umpire chairs

Operations will oversee the construction of the new Australian Open Player Restaurant and all associated site works and overlay impacts.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Information Technology

0708

Previously, IT was part of the Finance, IT and Administration business unit but, with the continually increasing reliance on technology within tennis a separate and more focused approach was required.

The technological requirements of TA grew significantly in 2007â&#x20AC;&#x201C;2008. Information Technology

Strategy

Objectives

Information Technology

Infrastructure

Develop a stable working environment.

Infrastructure

Move to a more collaborative working environment.

Infrastructure

Create an effective remote access environment.

Infrastructure

Deliver projects to Tennis Australia’s strategies.

Infrastructure – maintain a stable and effective environment. Transactional – ensure that data is collected easily and effectively. Informational – data is easily accessible and can be readily analysed. Strategic – deliver an environment that enhances the ability to deliver TA’s strategic plans.

Remote access Because of the distributed nature of tennis, it is critical that IT supply a number of remote access methods so that all staff have the ability to access information wherever they are. The ubiquitous Blackberry is available to staff, but this is purely limited to email. IT’s strategy is to create greater fidelity of information available and, to that end, wireless modems have been deployed predominately to the staff of the Tennis business unit.

Video line-calling at Vodafone

It is critical that IT supply a number of remote access methods.

Extended technology was used to enhance Australian Open (AO) 2008 with video line-calling introduced at Vodafone Arena. With the success of the system being installed at Rod Laver Arena for AO 2007, having the system on an extra court allowed for more players to have the opportunity to challenge disputed line calls. This has become a huge success with players and fans alike. In the men’s and women’s singles there were a total of 172 successful challenges from 496 attempts. The men didn’t leave anything to chance, challenging more often than the women, with 286 and 210 challenges respectively. p95

Standard Operating Environment Many of the issues that are faced by the users on their computers are caused by people making changes to their machines, such as changing settings or installing new software. While the flexibility of computers is often seen as one of their great strengths, it is this flexibility that often causes headaches for the IT business unit. All of these differences make it very hard to fix a computer when it does start having issues.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

HAWKEYE STATISTICS

RLA Men Total

Challenge Correct 74

Percentage

Incorrect

Total

% Correct

124

198

37.37

Challenge

% Incorrect

Total %

No. Sets Played

No. Challenges

62.63

100.00

104

177

Percentage

RLA Women

Correct

Incorrect

Total

% Correct

% Incorrect

Total %

No. Sets Played

No. Challenges

Total

127

33.07

66.93

100.00

107 No. Challenges

Challenge

Percentage

Total RLA

Correct

Incorrect

Total

% Correct

% Incorrect

Total %

No. Sets Played

Total

116

209

325

35.69

64.31

100.00

165

284

VA Men Total

Challenge

Percentage

Correct

Incorrect

Total

% Correct

% Incorrect

Total %

No. Sets Played

No. Challenges

38.64

61.36

100.00

Challenge

Percentage

VA Women

Correct

Incorrect

Total

% Correct

% Incorrect

Total %

No. Sets Played

No. Challenges

Total

26.51

73.49

100.00

Total VA Total

AO 2008

Challenge

Percentage

Correct

Incorrect

Total

% Correct

% Incorrect

Total %

No. Sets Played

No. Challenges

115

171

32.75

67.25

100.00

161

Total

% Correct

Total %

No. Sets Played

No. Challenges

Challenge Correct

Incorrect

Percentage % Incorrect

172

successful line-call challenges.

Table 11.1 Statistics based on the video line-calling challenges at Rod Laver Arena and Vodafone Arena. The official review displays on the giant screen at Rod Laver Arena.

As such, IT has introduced a Standard Operating Environment (SOE). This means that all of the machines have all of their software installed exactly the same way and the users are unable to make any changes to the settings or install their own software. This has led to a significantly more stable environment and much happier and more productive users.

AO systems A new IT team was in place for AO 2008, delivering technology requirements and working with external vendors. The Player Practice Booking system was well received by players, users and other staff in making the management of practice courts and player coordination significantly easier.

Extended technology was used to enhance Australian Open 2008 with video line-calling introduced at Vodafone Arena. continued over Information Technolgy

Information Technology continued

A TA staff member stays in contact with the office using a Blackberry.

Infrastructure at national events IT networking was required for the Australia versus Thailand home Davis Cup tie held in Townsville from 11–13 April. The approach here was taken from the perspective that the Davis Cup Event Manager Fenton Coull was considered as a client even though he was from an internal department within TA. This worked as he had a list of requirements that needed to be carried out and as such a checklist approach was established. IT turned into consultant mode and supplied all those requirements within a given timeframe.

It is critical, in a fast growing business such as TA, that employees from around the country are able to easily share information with each other.

FUTURE

More shared services IT intends to offer more shared services now that TA is linked with the Member Associations (MAs), in areas such as Finance and HR. IT will provide more collaboration tools over the coming 12 months as it is critical, in a fast growing business such as TA, that employees from around the country are able to easily share information with each other. TA will supply the server infrastructure to the MAs as well as the network infrastructure. All states have now had their servers upgraded recently. Also, as a matter of procedure, it has been asked that when upgrades are carried out on site that the IT staff involved stay for an extra day to deal with any outstanding issues. This has now been set as a standard procedure as part of the planning and deployment process.

Synchronising networks Planning has commenced on the integration of the TA and AO networks which still run separately, albeit communicating with each other. This is not an optimum solution so the creation of a single network will improve both speed and stability.

AO Series events IT will be heavily involved with the AO Series events in 2009 – the Brisbane International, Medibank International Sydney and the Moorilla Hobart International. The work that has been carried out this year to link all of the MAs can now be expanded to support these events. TA IT staff will also be in attendance during the events to provide support.

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

IT networking was required for the Australia versus Thailand home Davis Cup tie held in Townsville from 11â&#x20AC;&#x201C;13 April. Optus Australian Davis Cup coach John Fitzgerald gives advice to Paul Hanley (left) and Lleyton Hewitt in their doubles rubber against Thailand.

Change of email application Work is beginning on the decommissioning of Lotus Notes, which is to be replaced by Microsoft Outlook. It is expected that the move to the new email system will occur in October. There has to be a significant period of testing before cutting over to the new email system. The key is timing staff training throughout Australia to ensure that usability issues are addressed and everyone is comfortable with the transition.

Software development The consultant review of the internally developed software for the AO has been completed and now a two-year strategy for its replacement is being designed. For the coming 12 months, IT is expected to replace the current stand alone system with outsourced software, while the linked AO software will be modified so that it is easier to support. After the next AO, it is intended to outsource or redevelop the AO software. Recent upgrades to Baseline, which is used by clubs to manage their members, have significantly reduced the issues with this system. These have been related to the network upgrades that have been performed in each state. IT is looking at rebuilding the computer room and further expanding the number of servers and space that is available.

IT is looking at reviewing and refreshing the technology foundations to have better capabilities moving forward.

continued over Information Technology continued

Information Technology continued The three major aims of project TANTU were to centralise, consolidate and increase efficiency.

CASE STUDY NATIONAL NETWORK Over the past several months, TA IT has been working on project TANTU – Tennis Australia Network and Telecommunications Upgrade. It’s a suite of initiatives designed to link all of the MA offices with TA, onto the one centralised network. The three major aims of project TANTU were to centralise, consolidate and increase efficiency. TA IT included several technology improvements in this project. We commissioned new internet links with greater capacity, installed firewalls to enable MA offices to access systems on the TA network with better security, and upgraded phone systems to enable TA and MA staff to interact seamlessly on the one phone network. Not only do the capital city offices link to TA in Melbourne, but now IT can provide improved remote support and management of the technical infrastructure. This also means that TA staff visiting the state offices can connect to their own network. This has been a major technical step forward for TA in terms of communication, and it acts as a solid foundation for our future collaboration capabilities. One of the largest advantages is that there is now one Australia-wide TA phone system, and staff can call almost anyone using an extension, rather than the full number. With the foundations of a national network in place thanks to project TANTU, IT can now look at upgrading servers and improving desktop performance in each MA office, as well as offering more shared services in areas such as finance and HR. IT will provide more collaboration tools over the coming 12 months, as it is critical for states to easily share information with TA.

Tennis Australia

IT is taking over the management of the MAs infrastructure at the server level, but IT also has a schedule for IT specialists to go around visiting throughout the year and aiming at doing various refreshers that need to be installed. This is a major step forward for TA, but IT will continue to grow and enhance the service provided to MAs.

Not only do the capital city offices link to TA in Melbourne, but now IT can provide improved remote support and management of the technical infrastructure.

Tennis WEST

Tennis NSW

Tennis Tennis Tennis ACT NT QLD

Tennis Tennis Tennis SA TAS VIC

Table 11.2 TA is now connected with all of the Member Associations. 98

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

Financial section

0708

$25

% 19 12 9

$10

Investing in the game

Table 12.1 Investment in tennis.

2005

9,779,438

Community Tennis Administration Coach Development Athlete Development Pro Circuits Junior tournaments and tours TennisWorld AIS Pro Tour Program Davis/Fed Cups

8,183,643

13 8 8

2006

13,129,325

$15

2007

18,458,494

$20

$000,000

23,162,785

30 June

2008

2009E

Table 12.2 Investment in tennis.

$140

30 June

$120

$40

26 Table 12.3 Sources of revenue.

Revenue

2005

2006

99,378,010

$60

87,308,169

$80

Ticket sales Sponsorship TV Rights Merchandise Other

$000,000

84,212,306

$100

115,863,274

147,325,959

$160

$20

2007

2008

2009E

Table 12.4 Tennis Australia revenue.

Financial section

Balance sheet

104

Financial section highlights

Statement of cash flows

105

Directors’ report

100

Notes to the financial statements

106

Lead auditor’s independence declaration

101

Income statement

102

Directors’ declaration, independent auditor’s report

124

Statement of changes in equity

103

Auditor’s opinion, independence declaration 125

Financial section

Finance for the year ended 30 June 2008 DIRECTORS’ REPORT Tennis Australia Limited (formerly Lawn Tennis Association of Australia Limited) (A Company limited by guarantee) ABN 61 006 281 125

1. Directors The Directors of the Company at any time during or since the end of the financial year are: The Directors present their report together with the financial report of Tennis Australia Limited (‘the Company’) for the financial year ended 30 June 2008 and the auditor’s report thereon.

President

G N Pollard, AM

Director

Director since 1984

Vice-president

D L Nicholl

Chartered Accountant

Director since 1984

W R Beischer

Company Director

Director since 1994

A J Cooper, AO

Administrator

Director since 2004

C Freeman

Property Developer

Director since 2007

A R Mitchell

Manager

Director since 1997 (resigned 30 July 2008)

P Ritchie, AO

Company Director

Director since 2003

D Stobart

Consultant

Director since 2005

S M Tanner

Strategy Consultant

Director since 2007

Directors

2. Directors’ meetings The number of Directors’ meetings (including meetings of Committees of Directors) and number of meetings attended by each of the Directors of the Company during the financial year are:

Director

Board Meetings

Audit and Risk Committee Meetings

Remuneration Committee Meetings

Investment Advisory Committee Meetings

Nomination Committee Meetings

G N Pollard

D L Nicholl

A R Mitchell

A J Cooper

W R Beischer

P Ritchie

D Stobart

C Freeman S Tanner

A – Number of meetings held during the time the Director held office during the year. B – Number of meetings attended.

100

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

DIRECTORS’ REPORT/LEAD AUDITOR’S INDEPENDENCE DECLARATION

3. Corporate Governance The Audit and Risk Committee met on two occasions in the year under review. The Investment Advisory Committee also met on two occasions during the year. The Board of Directors meets as a separate Remuneration Committee and met twice in the year under review. The Board of Directors also meets as a separate Nomination Committee and met once in the year under review.

4. Principal activities The principal activities of the Company during the course of the financial year were the promotion and development of the game of tennis in Australia, including the conduct of tournaments and youth development programs.

5. Operating and financial review The Company’s net result for the year ended 30 June 2008 was a net deficit of $3,465,043. This compares with a net surplus of $2,679,617 for the year ended 30 June 2007. The Company recorded a net deficit after taking into account a deterioration in the performance of the Company’s managed funds in the amount of $5,508,276, which was in line with the general downturn in global financial markets. The Company has continued its activities and expenditures for tennis development and promotion and has also continued to target player development, community tennis, marketing and media. Significant changes in the state of affairs There have been no significant changes in the state of affairs of the Company during the financial year under review.

6. Events subsequent to reporting date There have been no events subsequent to balance date which would have a material effect on the Company’s financial statements

7. Likely developments Information about likely developments in the operations of the Company and the expected results of those operations in future financial years has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Company.

8. Indemnification and insurance of officers Indemnification The Company has agreed to indemnify the Directors of the Company against all liabilities to another person (other than the Company or a related body corporate) that may arise from their position as Directors of the Company, except where the liability arises out of conduct involving a lack of good faith. The agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and expenses. Insurance premiums The Company has an insurance policy in place in respect of Directors’ and Officers’ liability, legal expenses and insurance contracts, for current and former directors and officers of the Company. In the current year the Company paid premiums totalling $24,642 in respect of this policy (2007: $24,420).

9. Lead auditor’s independence declaration The Lead auditor’s independence declaration is set out on page 125 and forms part of the Directors’ report for the financial year ended 30 June 2008. This report is made in accordance with a resolution of the Directors:

Financial section

101

Finance for the year ended 30 June 2008 INCOME STATEMENT Tennis Australia Limited (formerly Lawn Tennis Association of Australia Limited) (A Company limited by guarantee) ABN 61 006 281 125

NOTE

2008

2007

Revenue from sale of goods

4,925,993

4,483,793

Revenue from operations and events

104,973,363

87,243,072

Other revenues from operating activities

Total revenue Other income

298,700

259,951

110,198,056

91,986,816

3,869,208

2,180,643

Operations & Events Expenses

(75,325,501)

(66,921,310)

Tennis Expenses

(18,458,494)

(13,129,325)

Commercial Expenses

(2,012,996)

(1,630,555)

Marketing & Media Expenses

(4,628,577)

(4,412,232)

EventsCo Expenses Borrowing costs

(193,805)

(1,857)

(311,711)

Other expenses

(11,680,974)

(10,271,760)

Total expenses

(112,302,204)

(96,676,893) 5,521,621

Finance Income

1,796,010

Finance Expenses

(7,026,113)

(332,570)

Net finance income/(expense)

(5,230,103)

5,189,051

Net surplus/(deficit) for the year

(3,465,043)

2,679,617

The income statement is to be read in conjunction with the notes of the financial statements set out on pages 106 to 123.

102

The Wonderful World of Tennis Presents Tennis Australia 2007â&#x20AC;&#x201C;2008 Annual Report

STATEMENT OF CHANGES IN EQUITY

NOTE Balance at beginning of period

Balance at beginning of period restated Total non-profit items recognised directly in equity

2008

2007

27,658,385

24,978,768

27,658,385

24,978,768

Net result for the period

(3,465,043)

2,679,617

Total recognised income and expense for the period

(3,465,043)

2,679,617

24,193,342

27,658,385

Distribution paid or provided Balance at end of period

The statement of changes in equity is to be read in conjunction with the notes of the financial statements set out on pages 106 to 123.

Financial section continued

103

Finance for the year ended 30 June 2008 BALANCE SHEET Tennis Australia Limited (formerly Lawn Tennis Association of Australia Limited) (A Company limited by guarantee) ABN 61 006 281 125

NOTE

2008

2007

Assets Cash and cash equivalents

5,986,439

9,570,897

Trade and other receivables

7,058,935

6,258,983

Inventories

449,447

75,178

Other financial assets

28,581,325

28,301,034

42,076,146

44,206,092 2,418,406

Total current assets Trade and other receivables

1,771,034

Intangible assets

32,500

Property, plant and equipment

5,012,141

4,219,159

6,815,675

6,670,065

48,891,821

50,876,157

7,549,375

5,953,088

Total non-current assets Total assets Liabilities Trade and other payables

Employee benefits

1,166,961

1,165,128

Income received in advance

10,840,690

13,490,209

19,557,026

20,608,425

Total current liabilities Employee benefits

141,453

109,347

Income received in advance

5,000,000

2,500,000

5,141,453

2,609,347

Total liabilities

24,698,479

23,217,772

Net assets

24,193,342

27,658,385

Total non-current liabilities

Members’ Equity Retained earnings

4,193,342

7,658,385

Reserves

20,000,000

24,193,342

27,658,385

Total members’ equity

The balance sheet is to be read in conjunction with the notes to the financial statements set out on pages 106 to 123.

104

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

STATEMENT OF CASH FLOWS

NOTE

2008

2007

Cash flows from operating activities Cash receipts from customers

113,513,807

98,862,110

(109,385,275)

(92,718,204)

Interest received

803,083

1,843,421

Borrowing costs

(1,857)

(311,711)

4,929,758

7,675,616

Cash paid to suppliers and employees

Net cash from operating activities

Cash flows from investing activities Proceeds from sale of property, plant and equipment Net payment of member/affiliate loans receivable Contribution to long term deposit

1,925

18,443

(412,794)

55,595

(442,865)

Acquisition of property, plant and equipment

(2,141,363)

(1,073,561)

Acquisition of intangible assets

(32,500)

Disposal /(acquisition) of investments in associates

80,000

(5,961,984)

(5,841,133)

(8,514,216)

(7,236,021)

Repayment of borrowings

(5,468,002)

Net cash from financing activities

(5,468,002)

Net increase in cash and cash equivalents

(3,584,458)

(5,028,407)

Cash and cash equivalents at 1 July 2007

9,570,897

14,599,304

5,986,439

9,570,897

Acquisition of investments Net cash from investing activities Cash flows from financing activities

Cash and cash equivalents at 30 June 2008

The statement of cash flow is to be read in conjunction with the notes to the financial statements set out on pages 106 to 123.

Financial section continued

105

Finance for the year ended 30 June 2008 NOTES TO THE FINANCIAL STATEMENTS Tennis Australia Limited (formerly Lawn Tennis Association of Australia Limited) (A Company limited by guarantee) ABN 61 006 281 125

1. Basis of preparation The financial statements were approved by the Board of Directors on 25 August 2008. (a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The Company’s financial report also complies with the International Financial Reporting Standards (‘IFRSs’) and interpretations adopted by the International Accounting Standards Board (IASB). (b) Basis of measurement The financial report has been prepared on the historical cost basis except that derivative financial instruments and trading investments are stated at their fair value. The methods used to measure fair values are discussed further in note 3. (c) Functional and presentation currency The financial report is presented in Australian dollars, which is the Company’s functional currency. (d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates 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 any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes: • Note 16 – property, plant and equipment (impairment assessment and determination of useful lives) • Note 22 – financial instruments (fair value determination)

2. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in this financial report. Certain comparative amounts have been reclassified to conform with the current year’s presentation. (a) Foreign currency transactions Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Australian dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to Australian dollars at foreign exchange rates ruling at the dates the fair value was determined. (b) Financial instruments (i) Non-derivative financial instruments Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition non-derivative financial instruments are measured as described below. A financial instrument is recognised if the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Company’s contractual rights to the cash flows from the financial assets expire or if the Company transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the Company’s obligations specified in the contract expire or are discharged or cancelled. Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

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NOTES TO THE FINANCIAL STATEMENTS

2. Significant accounting policies continued Investments at fair value through profit or loss An instrument is classified as at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Financial instruments are designated at fair value through profit or loss if the Company manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Company’s documented risk management or investment strategy. Upon initial recognition, attributable transaction costs are recognised in profit or loss when incurred. Financial instruments at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss. Other Other non-derivative financial instruments are measured at amortised cost using the effective interest method, less any impairment losses. (ii) Derivative financial instruments The Company uses derivative financial instruments to manage its exposure to foreign currency risks arising from operating, financing and investing activities. In accordance with its treasury policy, the Company does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. Derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. The fair value of forward exchange contracts is their quoted market price at the balance sheet date, being the present value of the quoted forward price. (c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost or deemed cost less accumulated depreciation (see below) and impairment losses. The cost of property, plant and equipment at 1 July 2004, the date of transition to AASBs, was determined by reference to its cost at that date. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located, and an appropriate proportion of production overheads. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives in the current and comparative periods are as follows: • plant and equipment • fixtures and fittings • leasehold improvements • memorabilia

3–10 years 5–10 years 3–16 years Indefinite

The residual value, the useful life and the depreciation method applied to an asset are reassessed at least annually.

Financial section continued

107

2. Significant accounting policies continued (d) Intangible assets (i) Recognition and measurement Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated amortisation and impairment losses. (ii) Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss when incurred. (iii) Amortisation Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of intangible assets, other than goodwill, from the date they are available for use. The estimated useful life for the current and comparative periods are as follows: • Domain names 10 years (e) Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. (f) Impairment (i) Financial assets A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. Individual significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment losses are recognised in profit or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised, and this reversal is recognised in profit or loss. (ii) Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated. For intangible assets that have indefinite lives or that are not yet available for use, recoverable amount is estimated at each reporting date. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

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NOTES TO THE FINANCIAL STATEMENTS

2. Significant accounting policies continued (g) Employee benefits (i) Long-term employee benefits The Companyâ&#x20AC;&#x2122;s net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Government bonds at the balance sheet date which have maturity dates approximating to the terms of the Companyâ&#x20AC;&#x2122;s obligations. (ii) Short-term benefits Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present obligations resulting from employeesâ&#x20AC;&#x2122; services provided to reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Company expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. A provision is recognised for the amount expected to be paid under short-term cash bonus or profitsharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. (h) Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and the risks specific to the liability. (i) Revenue (i) Goods sold Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods. (ii) Services Revenue from services rendered is recognised in the profit or loss in proportion to the stage of completion of the transaction at reporting date. The stage of completion is assessed by reference to surveys of work performed. (iii) Australian Open revenue Under agreements entered into with Melbourne & Olympic Parks Trust, the Company is responsible for and is entitled to bring to account all of the income and expenditure for the Australian Open. This financial report includes the results from the 2008 Australian Open. Under the Agreements a percentage of agreed revenue items is payable to the Melbourne and Olympic Parks Trust and has been accrued or paid during the current financial period. Where income is received in advance, the amount is deferred and recognised as revenue upon completion of the applicable Australian Open. (j) Other income (i) Government grants Grants that compensate the Company for expenses incurred are recognised as other income in the income statement on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the Company for the cost of an asset are recognised in the income statement as other income on a systematic basis over the useful life of the asset. (k) Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Financial section continued

109

2. Significant accounting policies continued (l) Finance income and expenses Finance income comprises interest income on funds invested, dividend income, changes in the fair value of financial assets at fair value through profit or loss and foreign currency gains. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised on the date that the Company’s right to receive payment is established. Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, foreign currency losses, changes in the fair value of financial assets at fair value through profit or loss and impairment losses recognised on financial assets. All borrowing costs are recognised in profit or loss using the effective interest method. (m) Income tax The income of the Company is exempt from income tax, and accordingly, no provision has been made in the accounts for income tax payable. Withholding tax from other jurisdictions is provided when the liability is due and payable. (n) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part 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 balance sheet. 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. (o) Facility loans and member association loans Member Association loans are secured and interest is payable over the term of the loan at the published 180 day bank bill swap rate. The rate is adjusted at six monthly intervals on 30 June and 31 December each year. Facility loans are repayable over a maximum of 8 years with interest charged at the bank bill 180 day swap rate. (p) New standards and interpretations not yet adopted The following standard, amendment to standard and interpretation has been identified as one which may impact the entity in the period of initial application. This is available for early adoption at 30 June 2008, but has not been applied in preparing this financial report: AASB 101 Presentation of Financial Statements introduces as a financial statement (formerly “primary” statement) the “statement of comprehensive income”. The revised standard does not change the recognition, measurement or disclosure of transactions and events that are required by other AASBs. The revised AASB 101 will become mandatory for the Company’s 30 June 2010 financial statements. The Company has not yet determined the potential effect of the revised standard on the Company’s disclosures.

3. Determination of fair values A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (i) Intangible assets The fair value of intangible assets is based on the discounted cash flows expected to be derived from the use and eventual sale of the assets. (ii) Investments in equity and debt securities The fair value of financial assets at fair value through profit or loss and available-for-sale financial assets is determined by reference to their quoted bid price at the reporting date.

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NOTES TO THE FINANCIAL STATEMENTS

3. Determination of fair values continued (iii) Trade and other receivables For receivables with a remaining useful life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables are discounted to determine the fair value. (iv) Derivatives Forward exchange contracts are marked to market using listed market prices or by discounting the contractual forward price and deducting the current spot rate. Where discounted cash flow techniques are used, estimated future cash flows are based on management’s best estimates and the discount rate is a market related rate for a similar instrument at the balance sheet date. Where other pricing models are used, inputs are based on market related data at the reporting date.

4. Financial risk management The Company has exposure to the following risks from their use of financial instruments: • Credit risk • Liquidity risk • Market risk. This note presents information about the Company’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included throughout this financial report. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board has established the Audit & Risk Committee, which is responsible for developing and monitoring risk management policies. The committee reports regularly to the Board of Directors on its activities. Risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through their training and management standards and procedures, aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit & Risk Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Trade and other receivables The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company’s customer base including the default risk of the industry and country, in which customers operate, has less of an influence on credit risk. Approximately 8 per cent (2007: 7 per cent) of the Company’s revenue is attributable to transactions with a single customer. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment conditions are offered. The majority of the Company’s customers have been transacting with the Company for a number of years, and losses have been minimal. The Company has established an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments. The main components of this allowance are a specific loss component that relates to individual exposures. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.

Financial section continued

111

4. Financial risk management continued Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions without incurring unacceptable losses or risking damage to the Company’s reputation. Typically the Company ensures that it has sufficient cash to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of investments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Price risk Price risk is the risk that the fair value of investment securities will fluctuate because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. Price risk exposure arises from the Company’s investment portfolio. These investments are classified on the balance sheet as fair value through profit or loss. All investments present a risk of loss of capital. The maximum risk resulting from these investments is determined by the fair value of these investments. The Board has established the Investment Advisory Committee, which monitors the mix of debt and equity securities in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis by the Fund Managers who have discretionary power to make buy and sell decisions, subject to being within the guidelines established with the Fund Managers. The primary goal of the Company’s investment strategy is to achieve optimum return relative to risk. The Company is assisted by external advisors in this regard. In accordance with this strategy, investments are designated at fair value through profit or loss because their performance is actively monitored and they are managed on a fair value basis. Currency risk The Company is exposed to currency risk on trade receivables and trade payables that are denominated in a currency other than the functional currency of the Company, being the Australian dollar (AUD). The currencies in which these transactions primarily are denominated are euro and USD. The Company hedges at least 95 per cent of all trade receivables and trade payables denominated in a foreign currency. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date. When necessary, forward exchange contracts are rolled over at maturity. Investment management The Board has appointed the Investment Advisory Committee to monitor, on its behalf, the effectiveness of the investment process of the Company in achieving optimum return relative to risk. The investment Advisory Committee’s function is to: • Make recommendations for the appointment of advisers on asset allocation and manager selection, fund managers, custodians and other service providers; • Review the performance of these service providers; • Review management’s brief to asset allocation advisers regarding acceptable levels of risk and projected operating financial performance of the Company; • Review asset allocation advisers’ recommendations on asset allocation and make recommendations to the Board of Directors; • Review advisers’ recommendations on manager selection and make recommendations to the Board of Directors; • Review management’s reports on investment performance and outlook and make appropriate recommendations to the Board of Directors; and • Review compliance with and the ongoing appropriateness of, the organisation’s Reserves Policy and Investment strategy. 112

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NOTES TO THE FINANCIAL STATEMENTS

4. Financial risk management continued Capital management The Company is a company limited by guarantee. Every member of the Company undertakes to contribute to the property of the Company in the event of the Company being wound up while they are a member, or within one year after they cease to be a member, for payment of the debts and liabilities of the Company contracted before the time they cease to be a member and of the costs, charges and expenses of winding up and for adjustment of the rights of the contributories among themselves, such amount as may be required, not exceeding $100. The Company is not subject to externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the year.

5. Segment reporting The Company operates predominantly in the area of administration and event co-ordination with respect to the sport of tennis. The Company’s operations and customers are predominantly in Australia.

6. Revenue 2008 Revenue from sale of goods Revenue from operations & events

2007

4,925,993

4,483,793

104,973,363

87,243,072

Other revenues: Interest received: - affiliated clubs / associations & Member Associations - other parties

Total revenue

36,191

36,077

262,509

223,874

298,700

259,951

110,198,056

91,986,816

7. Other income Profit on sale of property, plant & equipment

708

4,643

Government grants

3,868,500

2,176,000

Total other income

3,869,208

2,180,643

Government grants The Company has been awarded government grants from the Australian Sports Commission (‘ASC’), Australian Olympic Committee (‘AOC’), Australian Paralympic Committee (‘APC’) and Tourism Victoria. One of the grants from the ASC relates to a sport grant and is dependent upon the Company supporting its sport development initiatives, including the implementation of recommendations arising from the High Performance Advisory Panel. A second ASC grant relates to Indigenous sport programs and is dependent upon the Company providing Indigenous tennis programs. The AOC grant is provided to support and develop international competition, the APC grant is provided to support high performance programs in wheelchair tennis and the Tourism Victoria grant is provided to promote Melbourne and Victoria. These grants are recognised as income at their fair value at the time they became receivable.

Financial section continued

113

8. Other expenses The Company has the following expenses: 2008

2007

1,857

311,711

1,287,013

1,119,118

60,151

87,623

3,047,475

2,000,000

2,599,025

2,030,998

Borrowing costs - other parties Depreciation expense - plant and equipment - leasehold improvements Facility grants Cost of goods sold - cost of inventories - write down in value of inventories Movement in the provision for employee entitlements Operating lease rental expense

245,163

14,705

33,939

180,804

377,031

390,205

The facility grants of $3,047,475 above relate to Tennis Australiaâ&#x20AC;&#x2122;s National Court Rebate Scheme. The facility grant of $2,000,000 in 2007 relates to a grant to a Member Association.

9. Finance income and expenses Recognised in profit or loss Interest income on investments at fair value through profit or loss

585,196

123,351

Interest income on bank deposits

504,383

1,583,470

Dividend income on investments at fair value through profit or loss

676,183

1,031,491

Net change in fair value of other financial assets at fair value through profit or loss Finance income Net foreign exchange loss Net change in fair value of financial assets at fair value through profit or loss Impairment loss on trade receivables

30,248

2,783,309

1,796,010

5,521,621

(153,618)

(315,290)

(6,769,655)

(102,840)

(17,280)

Finance expense

(7,026,113)

(332,570)

Net finance income and expense

(5,230,103)

5,189,051

The above finance income and expense include the following in respect of assets (liabilities) not at fair value through profit or loss:

Total interest income on financial assets No finance income and expenses are recognised through equity. This is consistent with the Statement of changes in equity on page 103.

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504,383

1,583,470

NOTES TO THE FINANCIAL STATEMENTS

10. Auditorsâ&#x20AC;&#x2122; remuneration 2008

2007

Audit services Auditors of the Company KPMG Australia: Other regulatory audit services Audit and review of financial reports

1,500

51,000

49,000

52,500

50,500

10,714

60,752

2,703,492

5,136,260

Other services Auditors of the Company KPMG Australia

11. Cash and cash equivalents Bank balances Call deposits

3,282,947

4,434,637

5,986,439

9,570,897

Trade receivables

3,056,720

3,693,956

Other receivables

1,655,223

949,380

Prepayments

Cash and cash equivalents

12. Trade and other receivables Current

2,198,052

1,499,171

Facility loans receivable from member affiliated clubs

105,542

116,476

Secured loans receivable from Member Associations

43,398

7,058,935

6,258,983

Facility loans receivable from member affiliated clubs

188,039

269,041

Secured loans receivable from Member Associations

582,995

149,365

1,000,000

2,000,000

1,771,034

2,418,406

449,447

75,178

449,447

75,178

Non-current

Prepayments

13. Inventories Inventory on hand

Financial section continued

115

14. Other financial assets NOTE

2008

2007

28,551,078

28,295,674

Current Investments designated at fair value through profit or loss Derivatives recognised at fair value 22

30,247

5,360

28,581,325

28,301,034

The financial assets designated at fair value through profit or loss are debt and equity securities that otherwise would have been classified as available-for-sale. The Companyâ&#x20AC;&#x2122;s exposure to credit, currency and interest rate risks related to investments is disclosed in note 22.

15. Intangible assets Cost Balance at 1 July

32,500

Acquisitions Balance at 30 June

32,500

16. Property, plant and equipment Note

2008

Cost Balance at 1 July 2006 Other acquisitions Disposals Balance at 30 June 2007

2008

Plant and Equipment

Memorabilia

Total

1,701,646 159,853 1,861,499

6,355,591 913,708 (115,842) 7,153,457

1,876,397 1,876,397

9,933,634 1,073,561 (115,842) 10,891,353

1,861,499 62,816 (1,352,758) 571,557

7,153,457 2,078,547 (4,111) 9,227,893

1,876,397 1,876,397

10,891,353 2,141,363 (1,356,869) 11,675,847

1,544,379 87,623 1,632,002

4,023,116 1,119,118 (102,042) 5,040,192

5,567,495 1,206,741 (102,042) 6,672,194

1,632,002 60,151 (1,352,758) 339,395

5,040,192 1,287,013 (2,895) 6,324,310

6,672,194 1,347,164 (1,355,653) 6,663,705

Carrying amounts At 1 July 2006 At 30 June 2007 At 1 July 2007

157,267 229,497 229,497

2,332,475 2,113,265 2,113,265

1,876,397 1,876,397 1,876,397

4,366,139 4,219,159 4,219,159

At 30 June 2008

232,162

2,903,583

1,876,397

5,012,142

Balance at 1 July 2007 Other acquisitions Disposals Balance at 30 June 2008 Depreciation and impairment losses Balance at 1 July 2006 Depreciation charge for the year Disposals Balance at 30 June 2007

2008

Leasehold Improvements

Balance at 1 July 2007 Depreciation charge for the Year Disposals Balance at 30 June 2008

The carrying value of the memorabilia collection was tested for impairment at balance date and no such impairment was noted. The useful life of the collection has been determined to be indefinite taking into consideration the expected usage of the collection and the lack of external factors that could lead to the collection being deemed obsolete. 116

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NOTES TO THE FINANCIAL STATEMENTS

17. Trade and other payables NOTE Trade creditors Other creditors and accrued expenses 22

2008

2007

857,836

552,903

6,691,538

5,400,185

7,549,375

5,953,088

18. Interest-bearing loans and borrowings This note provides information about the contractual terms of the Companyâ&#x20AC;&#x2122;s interest-bearing loans and borrowings. For more information about the Companyâ&#x20AC;&#x2122;s exposure to interest rate and foreign currency risk, see note 22.

Financing facilities Bank overdraft facility 22

500

Financing arrangements Bank overdrafts The bank overdraft is secured by a floating charge from the Company. Interest on bank overdrafts is charged at prevailing market rates.

19. Employee benefits Current Provision for long service leave

326,684

329,435

Provision for annual leave

840,277

835,693

1,166,961

1,165,128

Non Current Provision for long-service leave

141,453

109,347

141,453

109,347

10,100,030

13,106,721

20. Income received in advance Current Australian Open Tournaments

740,660

383,488

10,840,690

13,490,209

Non current Australian Open

5,000,000

2,500,000

5,000,000

2,500,000

Financial section continued

117

21. Capital and reserves Reconciliation of movement in capital and reserves Hedge Reserve

2008

Balance at 1 July 2006

Facility Development Reserve

Player & Participation Development Reserve

Retained earnings

Total equity

24,978,768

Creation of Player & Participation Development Reserve

8,000,000

(8,000,000)

Creation of National Facility Development Reserve

12,000,000

(12,000,000)

Total recognised income and expense

2,679,617

Balance at 30 June 2007

12,000,000

8,000,000

7,658,385

27,658,385

Balance at 1 July 2007

12,000,000

8,000,000

7,658,385

27,658,385

Creation of Player & Participation Development Reserve

Creation of National Facility Development Reserve

Total recognised income and expense

(3,465,043)

Balance at 30 June 2008

12,000,000

8,000,000

4,193,342

24,193,342

Share capital The Company is a company limited by guarantee. Every member of the Company undertakes to contribute to the property of the Company in the event of the Company being wound up while they are a member, or within one year after they cease to be a member, for payment of the debts and liabilities of the Company contracted before the time they cease to be a member and of the costs, charges and expenses of winding up and for adjustment of the rights of the contributories among themselves, such amount as may be required, not exceeding $100.

22. Financial instruments Credit risk Exposure to credit risk The carrying amount of the Company’s financial assets represents the maximum credit exposure. The Company’s maximum exposure to credit risk at the reporting date was: Carrying amount NOTE

118

2008

2007

Trade and other receivables (less prepayments)

5,631,917

5,178,218

Cash and cash equivalents

5,986,439

9,570,897

Other financial assets

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

28,581,325

28,301,034

40,199,681

43,050,149

NOTES TO THE FINANCIAL STATEMENTS

22. Financial instruments continued At reporting date, 95 per cent of the Company’s Trade and other receivables (less prepayments) and Cash and cash equivalents exposed to credit risk were located in Australia (2007: 99 per cent). Approximately 15 per cent of other financial assets exposed to credit risk were allocated outside of Australia (2007: 15 per cent). The Company’s most significant customer accounts for 22 per cent or $660,000 of the trade receivables carrying amount at 30 June 2008 (2007: 40 per cent or $1,495,409).

Impairment losses The aging of the Company’s trade receivables at the reporting date was: 30 June 2008 (GROSS) Not past due Past due 1–30 days Past due 31–90 days Past due 90 days

2008

2007

1,594,443

2,493,126

180,558

401,396

1,066,942

790,099

350,403

42,115

3,192,346

3,726,736

32,780

15,500

The movement in the allowance for impairment in respect of trade receivables during the year was as follows: Balance at 1 July Impairment loss recognised Balance at 30 June

102,840

17,280

135,620

32,780

Liquidity risk The following are the contractual maturities of financial liabilities, including interest. 30 June 2008 Carrying amount

Contractual cash flows

6 mths or less

Trade and other payables

7,549,375

(7,549,375)

Bank Overdraft

500

(500)

7,549,875

(7,549,875)

Note

Carrying amount

Contractual cash flows

6 mths or less

Trade and other payables

5,953,088

(5,953,088)

Bank Overdraft

500

(500)

5,953,588

(5,953,588)

2008

Note

Non-derivative financial liabilities

30 June 2007

Non-derivative financial liabilities

There are no non-derivative financial liabilities with contractual maturities greater than 6 months. Refer to note 4 for details on the Company’s approach to managing liquidity risk.

Financial section continued

119

22. Financial instruments continued Currency risk Exposure to currency risk The Companyâ&#x20AC;&#x2122;s exposure to foreign currency risk at balance date was as follows, based on notional amounts: 30 June 2008

30 June 2007

AUD

EURO

USD

214,529

21,850

161,670

1,214,294

412

Gross balance sheet exposure

214,529

21,850

161,670

1,214,294

412

1,001,408

Forward exchange contracts

(31,928)

(20,000)

(1,149,135)

(1,000,000)

Net exposure

182,601

1,850

161,670

65,159

412

1,408

Trade and other receivables Trade and other payables

AUD EURO

USD 1,001,408

Forward exchange contracts relate to balances within trade receivables where the exchange rate has been hedged at a specified rate. There is no currency risk associated with these items.

Sensitivity analysis A 10 per cent strengthening of the Australian dollar against the following currencies at 30 June 2008 would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2007.

2008

30 June 2008 Equity

Profit or loss

Euro

276

(276)

USD

16,395

(16,395)

Euro

(62)

USD

163

(163)

30 June 2007

A 10 per cent weakening of the Australian dollar against the above currencies at 30 June 2008 would have increased (decreased) equity and profit or loss by the amounts shown below, on the basis that all other variables remain constant. The analysis is performed on the same basis for 2007.

2008

30 June 2008 Equity

Profit or loss

Euro

(337)

337

USD

(20,038)

20,038

Euro

(76)

USD

(199)

199

30 June 2007

All transactions are processed through profit and loss. No transactions are processed through equity.

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NOTES TO THE FINANCIAL STATEMENTS

22. Financial instruments continued Interest rate risk continued Profile At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was: Carrying amount 2008

2007

4,129,133

4,480,714

Fixed rate instruments Financial assets – investments Variable rate instruments Financial assets – bank accounts

2,703,492

5,136,260

Financial assets – call deposits

3,282,947

4,434,637

Financial assets – facility loans

293,581

385,517

Financial assets – secured loans

626,393

149,365

1,358,167

1,102,699

Financial assets – investments

Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for 2007. 30 June 2008 Equity 100bp increase 100bp decrease

Variable rate instruments

82,923

(82,923)

Cash flow sensitivity (net)

82,923

(82,923)

2008

Profit or loss 100bp increase 100bp decrease

30 June 2007 Profit or loss 100bp increase 100bp decrease

Equity 100bp increase 100bp decrease

Variable rate instruments

112,085

(112,085)

Cash flow sensitivity (net)

112,085

(112,085)

Sensitivity analysis – price risk At 30 June 2008, if the investment prices had increased by 15 per cent (2007: 5 per cent) with all other variables held constant, this would have increased net assets attributable to the Company (and net operating profit/(loss) by approximately $4,282,662 (2007: $1,414,784). Conversely, if the investments had decreased by 15 per cent (2007: 5 per cent), this would have decreased net assets attributable to the Company (and net operating profit/ (loss) by approximately $4,282,662 (2007: $1,414,784). The analysis is performed on the same basis for 2007.

Fair values versus carrying amounts The carrying amount of assets and liabilities shown in the balance sheet approximate their fair value. Financial section continued

121

23. Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows 2008 Less than one year Between one and five years More than five years

2007

261,515

301,623

1,162,634

1,062,859

1,089,288

1,195,457

2,513,437

2,559,939

The Company leases property under non-cancellable operating leases expiring from 1 to 10 years. Leases generally provide the Company with a right of renewal at which time all terms are renegotiated. During the financial year ended 30 June 2008, $377,031 was recognised as an expense in the income statement in respect of operating leases (2007: $390,206).

24. Capital and other commitment Capital expenditure commitments Contracted but not provided for and payable: Within one year One year or later and no later than five years Later than five years

1,500,000

1,000,000

1,500,000

2,000,000

3,000,000

As a requirement of the Relationship Agreement entered into with Melbourne and Olympic Parks Trust, the Company is required to make payments into a special purpose sinking fund jointly managed by the Company and the Trust. The annual amount payable is $500,000 and is payable each year from 2010 to 2016.

25. Reconciliation of cash flows from operating activities Cash flows from operating activities Surplus/(deficit) for the year

(3,465,043)

2,679,617

1,347,164

1,206,741

Adjusted for: Depreciation

Unrealised foreign exchange losses

(24,888)

(5,360)

(120,744)

5,706,580

(3,867,969)

(708)

(4,643)

Loss on sale/(revaluation of associate)

13,290

Share of profit of associates net of dividends received

3,563,105

(99,068)

(Reversal of ) foreign exchange losses Investment income Profit on sale of property, plant & equipment

Operating profit before changes in working capital and provisions (Increase)/decrease in trade and other receivables

260,214

7,024,670

(Increase)/decrease in inventories

(374,269)

181,842

(Decrease)/increase in trade and other payables

1,596,287

1,201,685

(Decrease)/increase in income received in advance

(149,518)

(814,317)

33,939

180,804

4,929,758

7,675,616

(Decrease)/increase in provisions and employee benefits Net cash from operating activities

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The Wonderful World of Tennis Presents Tennis Australia 2007â&#x20AC;&#x201C;2008 Annual Report

NOTES TO THE FINANCIAL STATEMENTS

26. Other related party transactions The Company has a related party relationship with its associates and key management personnel. The names of each person holding the position of Director of the Company during the financial year were: Geoffrey N Pollard, AM (Chairman), Desmond L Nicholl, William R Beischer, Andrea R Mitchell, Peter Ritchie, AO, Ashley Cooper, AO, David Stobart, Scott M Tanner and Chris Freeman. Mr P Ritchie is a Director of the Seven Network, which has a significant contract with the Company that is on normal commercial terms and conditions. Mr P Ritchie absents himself from the meeting where Seven Network contract matters are discussed. Messrs A Cooper, D Nicholl, D Stobart and Ms A Mitchell were office bearers of Member Associations during the financial year and each absents themselves from the meeting, where appropriate, when matters relative to their particular Member Association are discussed. Key management personnel compensation 2008

2007

2,760,205

2,215,536

2,760,205

2,215,536

In AUD Total compensation

In addition to salaries paid, key management personnel receive cash incentive bonuses based on key performance indicators.

27. Subsequent events There have been no events subsequent to balance date which would have a material effect on the Companyâ&#x20AC;&#x2122;s financial statements.

Financial section continued

123

Finance DIRECTORS’ DECLARATION Tennis Australia Limited (formerly Lawn Tennis Association of Australia Limited) (A Company limited by guarantee) ABN 61 006 281 125

Directors’ declaration In the opinion of the Directors of Tennis Australia Limited (‘the Company’): (a) the financial statements and notes set out on pages 4 to 28, are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the financial position of the Company as at 30 June 2008 and of their performance, as represented by the results of their operations and their cash flows, for the financial year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; (b) the financial report also complies with International Financial Reporting Standards as disclosed in note 1(a); (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Independent auditor’s report to the members Tennis Australia Limited (formerly Lawn Tennis Association of Australia Limited) We have audited the accompanying financial report of Tennis Australia Limited (the “Company”), which comprises the balance sheet as at 30 June 2008, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a description of significant accounting policies and other explanatory notes 1 to 27 and the Directors’ declaration set out on pages 102 to 124. Directors’ Responsibility for the Financial Report The Directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In note 1(a), the Directors also state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

124

The Wonderful World of Tennis Presents Tennis Australia 2007–2008 Annual Report

INDEPENDENT AUDITOR’S REPORT AND AUDITOR’S OPINION

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 entity’s preparation and fair presentation of the financial report 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 entity’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. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards (including the Australia Accounting Interpretations), a view which is consistent with our understanding of the Company’s financial position, and of its performance. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s opinion In our opinion: (a) the financial report of Tennis Australia Limited 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 2008 and of its performance for the ended on that date; and (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001. (b) the financial report also complies with International Financial Reporting Standards as disclosed in note 1(a).

Lead auditor’s independence declaration under Section 307C of the Corporations Act 2001 To: the Directors of Tennis Australia Limited I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2008 there have been: • no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and • no contraventions of any applicable code of professional conduct in relation to the audit.

Financial section continued

125

Index AGM (Annual General Meeting)

13, 15, 40, 41, 42, 43, 47

AIS Pro Tour Program

15, 31, 81, 82, Inside back cover (IBC)

AMT (Australian Money Tournaments)

31, 32, 79, IBC

Anti-Corruption Program

7, 23, 48

Member Delegates

1, 42, 43, IBC

Meridian

7, 23, 47, 49, IBC

MOPT (Melbourne and Olympic Parks Trust)

14, 20, 35, 43, 49, 85, 86, 91, 109, 122

NAs (National Academies)

14, 15, 17, 20, 31, 80, 82, 85, IBC

National Coach Education program

80, IBC

National Coach Membership program

9, 80, IBC

Athlete Development Matrix

32, IBC

ATP (Association of Tennis Professionals)

14, 15, 31, 76, 80, IBC

Attendance

5, 8, 9, 13, 17, 20, 21, 25, 27, 35, 38, 40, 53, 54, 59, 75, 96

National Court Rebate Scheme

9, 15, 18, 31, 33, 79, 82, 84,114, IBC

australianopen.com

7, 25, 53, 55, 60, 65, 74, 75, IBC

Office Bearers

44, 123

Australian Open Series

7, 10, 14, 15, 20, 21, 25, 31, 33, 35, 47, 49, 50, 52, 53, 55, 58, 61, 82, 90, 92, 96, IBC

66, 91

Australian Tennis Hall of Fame Fold-out cover, 1, 5, 14, 15, 43, IBC

OHS (Occupational Health and Safety)

Aviva Ballkids

4, 17, 66, 67, 75, 76, IBC

Organisational structure

70, 71, 72, 90

Aviva Tennis Hot Shots

9, 15, 33, 42, 47, 54, 77, 79

Player development pathway 15, 31, 81, IBC

Awards

Fold-out cover, 1, 5, 13, 21, 30, 44, 55, 59, 76, 85

Plexicushion

4, 13, 14, 18, 25, 31, 35, 53, 56, 61, 74, 82, 84, 89, IBC

Benefits

54, 65, 66, 67, 80, 84, 104, 107, 108, 109, 117, 122

Policy

Board

1, 4, 7, 13, 15, 17, 21, 22, 23, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 49, 50, 72, 79, 100, 101, 106, 111, 112

7, 23, 35, 37, 42, 48, 66, 76, 84, 90, 101, 107, 111, 112, IBC

Pollard, Geoff

12, 15, 21, 42, 43, 44, 68, 71, 72

17, 58, 62

Procurement

7, 23, 46, 47

Coach Development

32, 77, 80

Purpose Pyramid

1, 2, 3, 6, 8, 29

Committees

13, 41, 42, 44, 100

Rafter, Pat

Fold-out cover, 5, 14, 15, 80

CoMPS

48, 49

Recycling

83, 85, 86, IBC

ConnX

8, 47, 65, 67

Remuneration

42, 44, 67, 100, 101, 109, 115

Constitution

13, 15, 23, 38, 40, 41, 47

Risk management

41, 48, 49, 50, 90, 92, 107, 111, 112

Corporate clients

8, 25, 27, 55, 60

Sharapova, Maria

13, 53, 56, 74, 75, 76

Corporate Governance

13, 40, 41, 42, 47, 101

2, 11, 15, 23, 29, 31, 37, 41, 47, 64, 67

Council

38, 43, 44

SMT (Senior Management Team)

Dashboard reporting

7, 22, 23, 46, 47, 50, IBC

Snapshot

6, 7, 8, 9, 10

Davis Cup

Fold-out cover, 4, 5, 10, 12, 14, 15, 20, 21, 31, 35, 38, 48, 50, 61, 81, 91, 96, 97, IBC