FED SQUARE PTY LTD ANNUAL REPORT 2 0 1 9 - 2 0 2 0 TRADITIONAL OWNER ACKNOWLEDGEMENT Fed Square proudly acknowledges that Federation Square is situated on the traditional lands of the Boon Wurrung and Woiwurrung peoples of the Kulin nation and pays respect to their Elders past and present. We acknowledge Aboriginal people as Australia’s first people and as the Traditional Owners and custodians of the land and water on which we rely. We recognise and value the ongoing contribution of Aboriginal people and communities to Victorian life and how this enriches us. We embrace the spirit of reconciliation, working towards the equality of outcomes and ensuring an equal voice. CONTENTS FED SQUARE ANNUAL REPORT 2019 - 2020 About Fed Square 3 Fed Square’s Purpose 4 Vision 4 Mission 4 Values 4 Service Goal 5 Message from Chair and CEO 6 About Fed Square 10 Corporate Governance 10 Fed Square Ptd Ltd Functional Structure 11 Fed Square’s Board 12 The Year’s Activity 16 Strategic Imperatives 17 Enhance Fed Square’s reputation as a globally recognised place for 1. 18 meaningful, visitor centred experiences Grow the Fed Square Family exponentially, by connecting people to the 2. 28 enduring power of community 3. Ensure a sustainable future for Fed Square 32 Build a social enterprise culture that is engaged, aligned and committed to 4. 36 delivering the Corporate Plan 2019-2022 The Year Ahead 38 5 Year Financial Summary 42 Key Performance Indicators 44 Statement of Corporate Governance 46 CONTENTS Directors’ Report 52 Financial Report 56 Contact Information 122 PAGE 1 Enjoying the Australian Open on the Digital Facade. PAGE 2 FED SQUARE ANNUAL REPORT 2019 - 2020 ABOUT FED SQUARE PAGE 3 ABOUT FED SQUARE Please note that throughout the Annual Report, ‘Federation Square’ will refer to the place and ‘Fed Square’ will refer to the management entity (Fed Square Pty Ltd). FED SQUARE’S PURPOSE The Civic and Cultural Charter outlines Fed Square’s purpose as achieving the following objectives for Victoria: • to provide a stimulating, educational, comfortable and entertaining destination venue to Victorians, and to interstate and international visitors; • to represent Melbourne as a leading city for the arts and for innovation and creativity in all forms of cultural expression; • to communicate the City’s leadership in contemporary ideas and expression; • to provide a focal point for arts and cultural festivals and activities and important civic commemorations; • to reflect Melbourne’s cultural diversity in its overall operations and programming; and • to attract local, national and international visitors to Federation Square. VISION To be internationally recognised as Melbourne’s inspirational public place where visitors come to celebrate, learn, innovate and connect. MISSION To manage and develop Federation Square to actively support and reflect Melbourne’s pre-eminent civic and cultural strengths. Federation Square desires to be an iconic destination that delivers a memorable visitor experience. VALUES Community commitment • Aspiring to help foster a stronger and healthier society • Support for our diverse community • Inclusivity through accessibility and the promotion of harmony and engagement Integrity • Honesty and transparency in all our practices • Trustworthiness in the sincerity of our actions and dealings • Accountability in delivering on expectations and outcomes ABOUT FED SQUARE ABOUT PAGE 4 FED SQUARE ANNUAL REPORT 2019 - 2020 Leadership • Inspiration through passion and animated influence • Commitment to quality service, systems, experiences, safety and sustainability • Efficacy as a goal for each individual • High performance which is respected in business and the community Innovation • Creativity in bringing new ideas to life • Boldness in applying innovation to the business • Flexibility to embrace change and adapt to new challenges Teamwork • Pride in our work and shared results including with contractors and stakeholders • Respect for each other and our differing personalities and styles • Support for each other and sensitivity to individual interests and responsibilities • Resilience in working to achieve our goals • Balance combining hard work with a fulfilling personal life SERVICE GOAL To be recognised for providing exceptional customer service that will inspire visitors, customers and clients to return time and again. Our core service commitments are: • Providing consistent, reliable customer service and value • Ensuring that what we do, we do with pride • Establish a reputation for excellence • Be a positive ambassador for Victoria In delivering this service, we will be: • Welcoming • Helpful • Respectful • Accountable ABOUT FED SQUARE ABOUT PAGE 5 MESSAGE FROM THE CHAIR AND CEO We are pleased to present the 2019-2020 Annual Report, a year of continued transformation at Federation Square in which foundations have been built upon for an exciting new chapter for Melbourne’s gathering place. Over the course of the year Fed Square’s Board and Management have continued to drive the organisation forward with the delivery of several key initiatives, which we are proud to detail in this Annual Report. MS DEBORAH BEALE AM CHAIR DR XAVIER CSAR CEO PAGE 6 FED SQUARE ANNUAL REPORT 2019 - 2020 Throughout 2019-2020 Fed Square was actively involved in the Victorian Government Review of Federation Square, which was announced in April 2019. Fed Square’s Board and Management provided the Federation Square Review Panel with the information, insights and access required to conduct a thorough review and determine meaningful outcomes for Federation Square and the organisation. Fed Square was also involved in facilitating community and stakeholder consultation as part of the review process and, upon the release of the community consultation report in December 2019, sought to immediately address the key feedback received. The recommendations of the Review, publicly released in August 2020, have further established Federation Square’s position as the premier gathering place for all Victorians. In September 2019, Jonathan Tribe stepped down as CEO of Fed Square after a three-year tenure in the position. During his time in the role, Jonathan delivered a number of key initiatives for the organisation including the installation and unveiling of the Digital Façade, the development of a rolling program and event strategy to ensure continued delivery of high quality public events, activations and experiences, and the development of a more sustainable business framework. Following Jonathan’s retirement, Xavier Csar was appointed to the position of CEO. Xavier brought extensive executive experience leading Victoria’s TAFE system, state and regional development and economic policy in the Victorian and Commonwealth Governments. In the relatively short time he has been in the position, Xavier has made a significant impact upon the organisation and the future direction of Federation Square, as demonstrated in the various initiatives highlighted throughout this Annual Report. Fed Square undertook an organisational restructure in December 2019, consolidating the number of internal departments from four to two: Business Operations and Support Services and Customer Experience. This simplification allows Fed Square to benefit from synergies between different areas of the business and improved communication and collaboration amongst staff. A significant moment in the history of Federation Square came about when it received heritage listing from the Heritage Council of Victoria in August 2019. Following the announcement, Fed Square worked with heritage experts to develop Design Integrity Guidelines and a Conservation Management Plan. This will help guide the management of the site into the future and protect the architecture and design that make the precinct unique. Fed Square has continued to foster relationships with its tenants, and in particular the cultural institutions that call Federation Square home. The result has been greater collaboration with tenants across events and activities, a greater sharing of information and learnings between organisations, and most importantly a more holistic experience for ABOUT FED SQUARE ABOUT visitors to the Square. PAGE 7 Over the course of the year Federation Square was home to a kaleidoscope of events and activations that reflected the vibrancy and diversity of Melbourne. The public flocked to the Main Square for cultural festivals including Diwali, the African Music and Cultural Festival, and the NAIDOC Week concert, as well as community celebrations for the likes of Christmas and New Year’s Eve. A wide range of third party activations, such as the full site takeover of the Australian Open, the display of Terrance Plowright’s statue of Tayla Harris ‘The Kick’ on Swanston Street Forecourt, and the captivating Cartier: Into the Wild exhibition were all hosted. Fed Square also produced some of its own wonderful events during the year including the sold out Sensory Underground dining experience, the Little Food Festival, and the Fed Beach activation, all of which added to the excitement of the precinct for visitors. Prior to March 2020, Fed Square oversaw strong financial performance for the organisation, with a substantial end of year operating surplus anticipated based on forecasts for the remainder of the 2019-2020 year. The onset of the coronavirus (COVID-19) pandemic has had a significant impact upon the financial position of Fed Square, with revenue sources dramatically impacted and unforeseen costs incurred. Decrease