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2017 Annual Report Contents 2017 ANNUAL REPORT CONTENTS WHO WE ARE 4 DELIVERING OUR STRATEGY 5 PRESIDENT’S REPORT 6 CHIEF EXECUTIVE’S REPORT 8 YOUR EKKA 12 A PASSION FOR PRODUCE 22 OUR BUSINESS 26 YOUR VENUE 30 BRISBANE SHOWGROUNDS PRECINCT 34 GOVERNANCE 38 FINANCIAL REPORT 45 HISTORICAL TIMELINE 67 2 2017 RNA ANNUAL REPORT MISSION The Royal National Agricultural and Industrial Association of Queensland (RNA) is committed to celebrating and championing agriculture and the essential role it plays in the everyday lives of Queenslanders. We do this by showcasing and rewarding the very best of the best in agriculture through our Royal Queensland Show (Ekka) and Royal Queensland Food and Wine Show (RQFWS) competitions. Our education programs and promotions are also designed to advocate for agriculture and reflect the association’s core charter. The RNA has been committed to ensuring the community recognises the vital role agriculture plays in everyday life since 1875. 2017 RNA ANNUAL REPORT3 WHO WE ARE OUR BUSINESS FOCUS Founded in 1875, the RNA is an independent, not for profit member based Governed by 21 elected Councillors, the RNA represents more than 4,000 association that has freehold title to the iconic Brisbane Showgrounds. members across Queensland and further afield, many whose families have been involved with the RNA for generations. The association’s guiding mission is to celebrate and champion the essential role agriculture plays in the everyday lives of Queenslanders. ROYAL QUEENSLAND SHOW ROYAL QUEENSLAND FOOD (EKKA) AND WINE SHOW (RQFWS) The Royal Queensland Show (Ekka) is Queensland’s largest and most Launched in 2009, the Royal Queensland Food and Wine Show loved annual event. It’s run by the RNA on behalf of the community for (RQFWS) is designed to recognise and reward outstanding producers 10 days each year in August. While providing entertainment and fun, and their produce through its individual competitions: Cheese and the show is also the platform for some serious competition, attracting Dairy Produce; Ice Cream, Gelato and Sorbet; Branded Beef; Branded more than 21,000 entries across 48 competition sections each year. Lamb; Wine; Ham, Bacon and Smallgoods; and Sausage King and International and national judges attend to award the best in agriculture, Best Butchers Burger. The RQFWS has grown rapidly in recognition fine arts, horse events, canine and feline, beef and dairy cattle, boer and awareness throughout the industry and is known as Queensland’s goats, fleece, poultry and birds, pisciculture, woodchop and sawing premier food and wine competition. and more. The show also provides an important educational focus for students, who compete for awards in art, gardening and multimedia. ROYAL INTERNATIONAL The Ekka, which has always been a place for businesses to show and CONVENTION CENTRE sell their wares, is Queensland’s largest and most targeted marketplace (ROYAL ICC) & BRISBANE attracting more than 400 retailers. SHOWGROUNDS PLACEMAKING The Brisbane Showgrounds is a venue business which hosts almost 300 events each year including exhibitions, conferences and music festivals, across its 22 hectares. The $2.9 billion, Brisbane Showgrounds Regeneration Project is one of the largest mixed-use, urban regeneration projects in Australia. The Royal International Convention Centre (Royal ICC) is a world-class, The revitalisation of the Showgrounds generates year round vitality two-level building featuring three halls with state-of-the-art rigging, seven throughout the precinct, while ensuring the Royal Queensland Show adaptable meeting rooms, two boardrooms, an open foyer, 140 car parks remains on the site where it first began in 1876. Once complete, more and cutting-edge catering facilities. It’s the only convention centre in than 15,000 people will live, work and play each day at the Brisbane Australia where guests can enjoy award-winning food and wine from the Showgrounds, which is fast becoming Queensland’s most prominent prestigious Royal Queensland Food and Wine Show (RQFWS) and iconic lifestyle and events precinct. Royal Queensland Show (Ekka). 4 2017 RNA ANNUAL REPORT DELIVERING OUR STRATEGY YEAR IN REVIEW - 2017 Strong growth in the RNA’s venue businesses coupled with cost 2017 was a watershed year for our $2.9 billion Brisbane Showgrounds efficiencies has resulted in an exceptional year for the 143 year old Redevelopment Project with construction starting on major stage association. three works including the Large Animal Pavilion and the world’s tallest engineered timber office building known as 25 King. The RNA recorded a positive EBITDA result for 2017 of more than $1.25 million - an improvement on 2016’s EBITDA result of $85,000, A major highlight was the continued emergence of the King Street an increase of more than $1.16 million. This was due to a 14 per cent dining precinct with eight new retailers opening including the two-hat increase in our venue business revenue, from $12.7 million in 2016 to French Restaurant Montrachet which is bringing more visitors to the $14.6 million last year, plus a 15 per cent reduction in administration area. In August 2017, a five level (375 bay) car park opened to the costs. public in King Street to accommodate these growing numbers. In 2017, the RNA’s overall turnover, excluding net redevelopment We look forward to many regeneration milestones in 2018. More revenue, increased by more than eight per cent to $31.8 million from retailers will open in King Street, with a permanent food truck stop and $29.2 million in 2016. A disciplined approach across all RNA business childcare centre opening in February 2018. The redevelopment ensures units led to improved cost management helping the association record the Ekka remains at the Showgrounds for future generations to enjoy, a net profit of more than $3.6 million. while securing the long term financial viability of the RNA. The Royal Queensland Show (Ekka) celebrated its 140th anniversary Other development milestones include the completion of the Large in 2017 and although attendance revenue did not meet expectations, Animal Pavilion in October, with partial use for Ekka 2018. The new the show was a great success operationally with record entries in our pavilion will accommodate up to 1,600 head of cattle and other large woodchop and beef competitions. animals. The Ekka was also recognised internationally at the annual International The RNA’s operating cash flow levels will continue to be marginal for Association of Fairs and Expositions (IAFE) awards. IAFE represents the next decade until the annuity assets being created through the more than 1,100 fairs around the world and the Ekka won a total of redevelopment project return cash flow to general RNA operations. 19 awards, including 10 awards for communications, and nine across Under our project agreement, earnings from the annuity assets are agriculture and competitions. retained under the RNA Development Fund and quarantined to service The RNA also recorded a net redevelopment revenue for the year loans and to fund future project costs. This outcome is consistent with of more than $7.8 million (funds to be deposited into the RNA the long term strategic plan and requires a very disciplined approach to Development Fund), resulting from the further settlements of The Yards cash flow management until these assets are returned to the RNA. residential apartments. 2017 RNA ANNUAL REPORT5 PRESIDENT’S REPORT In our 142nd year of operation, the RNA celebrated a remarkable is more vital today than ever before. We must continue to educate the milestone – the 140th anniversary of the state’s most iconic and beloved next generation as to the importance of agriculture – from the food we eat event – The Royal Queensland Show (Ekka). Even more remarkable is the to the clothes we wear. It is this mission that drives the RNA to ensure the show has endured through economic depressions in the late 1800s and show continues for future generations to enjoy. early 1900s, through decades of change, challenges and prosperity to In 2017, more than 30,000 children visited in school groups and were today. inspired, educated and entertained over the 10 days of show. The Only twice in the show’s history has the event not been held – in 1919 – Agricultural Education Hall featured more educational activities for due to Spanish influenza and during World War 2 when the Showgrounds children than ever before, with 11 activities making up a new Field to Fork was used as a staging depot for troops. No other event in this state has interactive rural journey. endured and prospered like the Ekka, and the reason is simple – the To mark the show’s 140th birthday, we celebrated by holding two people. fireworks displays – an early 6pm show for children culminating in the The show has been important to countless generations of Queenslanders famous finale fireworks. We introduced a half price twilight ticket. due to their love of all things Ekka. The heritage of the show can be Although the overall attendance was not at the level we expected, the earmarked against the state’s own historical timeline. In 1876, the 2017 Ekka was a great success operationally and featured record entries Showgrounds was the birthplace of the state’s cultural and social life, in some of our competition sections. More than 4,100 exhibitors vied hosting the inaugural Ekka and acting as the meeting place for country for their chance to take home a coveted blue ribbon and share in a prize and city to come together – today that ethos remains at the heart of the pool of more than $565,000. There were 1,378 new competitors. The event. competitions continued to grow in popularity in 2017, with a record 2,889 It is the reason why the RNA continues to stage the state’s largest entries received in the beef sections, while Woodchop and Sawing entries community event annually, when the bush comes to town to reached 2,000 for the very first time - an increase of 30 per cent on 2016.
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