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Annual Report 09/10 SYDNEY OPERA HOUSE OPERA SYDNEY ANNUA l REPOR t 09/10 your annual report 09 / 1 0 house. sydneyoperahouse.com contents 09/10 The Hon. Kristina Keneally, MP NEW SOUTH WALES PREMIER We have the pleasure of presenting the Annual Report of the Sydney Opera House for p.1 Letter to Minister the year ended 30 June 2010, for presentation to Parliament. This report has been p. 3 High Points prepared in accordance with the provisions of the Annual Reports (Statutory Bodies) p. 4 Chairman’s Message Act 1984 and the Public Finance and Audit Act 1983. p. 6 CEO’s Message p. 8 Vision and Goals p. 10 Outcomes & Objectives p. 15 Performing Arts p. 27 Broadening the Experience KIM WILLIAMS AM RICHARD EVANS CHAIRMAN CHIEF EXECUTIVE p. 31 Building & Environment p. 35 Governance p. 38 The Trust p. 40 The Executive p. 42 People & Culture p. 45 Financials contents. p. 64 Government Reporting p. 74 Performance List p. 79 Our Donors p. 81 Image Credits p. 83 Contact Information p. 84 Index p. 85 Sponsors e MILY HAInes In tHe oPeRA tHeAtRe [VIVID LIVe , JUne 2010] IMAgInAtIon LIVes I nsIDe. 1 p. 1 HIgH sYDneY oPeRA HoUse 09/ 10 PoInts. ‘It’s such an icon of COMMUNITY ENGAGEMENT AND ACCESS + Open Day 2009 was the biggest free event ever held at Sydney Australia that it needs Opera House with some 50,000 people seeing behind the scenes. to be enjoyed by everyone + We broadened our reach and participation with initiatives such as the online dance competition MyMutation – 252,000 hits worldwide. and have the opportunity + Paralympian Louise Sauvage OAM was appointed as the inaugural to be enjoyed by all.’ Sydney Opera House Accessibility Ambassador to provide advice and help create public awareness of facilities and programs. LOUISE SAUVAGE OAm (AccESSIbILIty AmbASSAdOr) + Engagement with youth and Indigenous groups expanded this year to include Detours and Destinations, an initiative connnecting at-risk youth from Western Sydney with creative industry mentors. [See Broadening the Experience page 29.] ARTISTIC EXCELLENCE + 1,272,097 people attended 1,679 performances – an increase of 2%. EARNING OUR WAY + Helpmann Awards held at the House for the first time. Several programs + General operating cash flow was $0.9m, with the general operations performed here won awards: The Man in Black (Sydney Opera House), profit of $1.8m offset by investment in capital assets of $0.9m. Bliss and Peter Grimes (Opera Australia), Fire (Bangarra Dance Theatre). + Contributions from Food and Beverage increased by 5.2% and Retail + New programs at the House included Festival of Dangerous Ideas, by 37% through new commercial terms. [See Financials page 46.] Spring Dance, Late Night Lounge, Screen Live and the Full Swing series. + The inaugural CEO Award for Outstanding Service was launched. + 49% of Vivid LIVE attendees were new patrons to Sydney Opera House. + A new online Safety Induction Program commenced and some 200 + The first concerts by the London Philharmonic Orchestra in Australia for people attended safety management workshops. [See People & 24 years. [See Performing Arts page 17.] Culture page 43.] A VIBRANT AND SUSTAINABLE SITE + Awarded NSW Tourism Silver Medal for Major Tourist Attraction 2009. + New onsite experiences included French and German language tours and a new Studio Café. [See Broadening the Experience page 29.] + NSW Government funding of $152.1m was announced for the Vehicle Access and Pedestrian Safety Project – the biggest construction project for Sydney Opera House since 1973. 3 + The Accessibility and Western Foyers project was officially opened. It included the first public lift, escalator and refurbished western foyers. p. + The first Environmental Sustainability Plan endorsed by the Trust, setting targets and actions to reduce environmental impact over a three year period. [See Building & Environment page 33.] 3 ‘Underlying business performance will continue to grow with revenue generating activities coupled with fRoM tHe effective cost control measures.’ c HAIRMAn The Trust is committed to maintaining the momentum of the last four years which has seen significant improvements in theatre and foyer access and general site amenity. The Vehicle Access and Pedestrian Safety Project is an important step towards the full renewal of the building which will provide a fully accessible Sydney Opera House for the 21st century and more importantly secure its operational delivery in a transformative way better suiting contemporary standards. The long term renewal plan is especially important in securing the future of this world heritage site through the remainder of this century in such a way as to reflect the exterior vision in the internal delivery landscape, equally in all the House’s delivery touchpoints: venue stages, acoustics, professional and patron amenity. fUtURe oUtLook During the year the Sydney Opera House Trust fInAncIAL & oPeRAtIng PeRfoRMAnce I am pleased to engaged the Boston Consulting Group to undertake an efficiency and cHAIR. report that Sydney Opera House had an increase of 2% over the prior year strategy review to assess options for future operating models that in overall attendances to 1,272,097 (1,679 performances). include operational and commercial improvements. The enterprise The four resident companies – Sydney Symphony, Opera Australia, needs to regularly refresh its thinking and approaches in order to sustain The Australian Ballet and Sydney Theatre Company – presented 529 efficient delivery of services in ways that respond relevantly to the performances to audiences of 649,172, an increase of 3%. Refer page 18. many disciplines and demands of the modern funding and operational Sydney Opera House itself presented 810 performances to audiences of environment. The results of that study have highlighted opportunities 327,528. Expenditure on Sydney Opera House programs was $19.7m ($22.2m in such areas as: retail; food and beverage operations; marketing and in 2008/09) with a net cost of $3.5m ($4.2m in 2008/09). Refer page 22. new performance revenue opportunities; further transformation of the tourism experience; reinforcement of the programming identity; and During 2009/10 the general operating cash flow was $0.9 million with the addressing organisational complexities that will release fresh energies general operations profit of $1.8 million offset by investment in capital and approaches. Plans are in development to determine relevant action assets of $0.9 million. The solid general operating profit was achieved across the various strands identified in the review. with cost control and the delivery of productivity improvements across the business although depreciation more than consumed the surplus. Refer BoARD cHAnges Mr John Ballard completed his final term on page 46 for the full financial overview. 31 December 2009 after serving nine years on the Trust. Mr Ballard was Underlying business performance will continue to grow as we strengthen Chair of the Trust’s Philanthropy Committee and made an invaluable the business with revenue generating activities coupled with effective cost contribution to the Trust, gaining the respect of colleagues and control measures. management. Dr Thomas Parry AM commenced on 24 February 2010 and Mr Wesley Enoch and Ms Catherine Brenner were reappointed, all for a BUILDIng RenewAL On behalf of the Trust I would like to period of three years to 31 December 2012. Each is a welcome contributor acknowledge the New South Wales Government for supporting some to the Trust’s deliberations and provides an invaluable contribution. major building projects, including the newly refurbished Western Foyers, which were officially opened this year. I would also highlight the recent tHAnk YoU On behalf of the Trust I would like to acknowledge important funding announcement of $152.1m for the Vehicle Access and the support received from our many personal donors and corporate Pedestrian Safety Project – a major and most welcome commitment. sponsors and in particular our principal supporter the Government of This project will see the biggest building works on the site since its NSW. I also acknowledge major partner Sony and partners NAB and opening in 1973. The project will improve safety and security; preserve Sennheiser & Neumann. Their generosity allows the House to make essential site heritage and conservation values; and also dramatically fresh investments in its performing arts program, ensuring a greater improve efficient management of the site. A new tunnel will be built number of community, education and free public events. from the bottom of Macquarie Street to a new underground loading On behalf of my fellow Trustees I congratulate our resident dock – removing about 1,000 heavy vehicle movements a week from the companies, our CEO Richard Evans, the fine management team and Forecourt and facilitating smoother operational arrangements for users. our remarkable workforce for a successful year in meeting the many p. Additional tunnels will connect the new underground loading dock to financial and operational challenges so effectively (and I am pleased new lifts for deliveries to the Opera Theatre, Concert Hall and the three to say constructively and cheerfully). I also extend thanks to my fellow 4 kIM wILLIAMs AM, cHAIRMAn smaller theatres on the western side of the building. Construction will Trustees for the quality and consistency of their commitment to begin in early 2011 with completion planned for mid 2013. deliberations and for the support offered me as Chairman. ‘the year has been busy and rewarding and we have made strong progress in the four fRoM tH e strategic priority areas.’ c HIef execUtIVe In early May we opened a live and interactive exhibition called Detours and Destinations, presenting work created by young people from Western Sydney through a youth engagement program. Some 70,000 children have attended our popular House:Ed and Kids at the House programs this year, with 2,065 children enjoying a House:Ed performance as part of our Arts Assist program. See page 25.
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