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Australian Opera and Ballet Orchestra Report 25 Opera Australia Is a Company Limited and the Financial Prudence of Its Strategies

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Australian Opera and Ballet Orchestra Report 25 Opera Australia Is a Company Limited and the Financial Prudence of Its Strategies Vision Contents Enriching Australia’s cultural life with exceptional opera. Mission Vision, Mission, Corporate Governance 2 To present opera that excites audiences and The work of the Board is supported by: Chairman's Report 5 sustains and develops the art form. Audit Committee - meets before each Board Chief Executive's Report 11 meeting and otherwise as required and is Our People 22 Corporate Governance responsible for scrutinising the Company’s Artists - 2014 23 management systems, financial processes Australian Opera and Ballet Orchestra Report 25 Opera Australia is a Company Limited and the financial prudence of its strategies. Patron Program 28 by Guarantee. Its governance is the The Company’s auditors meet with the Audit Opera Australia Capital Fund - Chairman's Report 33 responsibility of its Board of Directors, Committee on a regular basis and report on Opera Australia Activities 40 who are elected by its Members. The Board is their processes and findings. Opera Australia Salutes its 2014 Partners 47 responsible for the overall strategic direction of the Company and its ongoing viability. Development and Government Committee - The Company’s direction and activities are meets as required and provides strategic advice underpinned by its agreed Values: on corporate partnerships, philanthropy and government engagement. • Pursuit of excellence in everything we do • Respect for knowledge, imagination and Property Advisory Committee - meets as creative ambition required and makes recommendations to Giacomo Puccini • Honesty and integrity in all our dealings the Board regarding the Company’s property • Fairness portfolio. • Sustainability • Encouragement of professional Remuneration and Nominations Committee - meets development as required and is responsible for overseeing • Respect and compassion for people the Company’s remuneration policy, including • Safe working environment remuneration of the senior management team. • The Board of Directors of Opera Australia is Risk Committee - meets four times a year and also the Board of Directors of the Australian is responsible for monitoring the Company’s Opera and Ballet Orchestra Limited, a risk management process and compliance wholly-owned subsidiary company of Opera framework. Australia. The Board of Directors delegates Photographs to the Chief Executive, and through him to Jeff Busby, Aidan Corrigan, Branco Gaica, Darcy Grant, Jim Lee, Limuel Martine, James Morgan, the executive team, authority to manage, Ben Symons, Nikki To, Lisa Tomasetti within the parameters set by the Board, the Company’s activities. Cover: Hyeseoung Kwon as Cio-Cio-San, Handa Opera on Sydney Harbour - Madama Butterfly Inside front and back cover spreads: Mazda Opera in the Bowl, Sidney Myer Music Bowl, Melbourne David Mortimer AO Throughout 2014, Opera Australia has again Stacey Alleaume with Maxine Buxton (interpreter). Photo by Albert by (interpreter). Photo Comper. Stacey Alleaume with Maxine Buxton demonstrated the Company’s artistic vibrancy, its commitment to a truly national presence and its ability to maintain the highest standards in a financially challenging environment. In common with opera companies around the world we have to handle the difficult balancing act Opera Australia had some significant box office between programming the operas people want successes during the year. Our New Year’s Eve to see, remaining fresh and contemporary, and performances and activities at the Sydney Opera managing the rising costs of presenting this very House were the most successful to date with all expensive art form. Our Artistic Director Lyndon events sold out. Handa Opera on Sydney Harbour Terracini has done a magnificent job in expanding saw an increase in audience from the previous two Opera Australia’s reach and accessibility with years and brought $20 million over three years five new mainstage productions over the year, into the NSW economy as well as new audiences a brilliant new production of Madama Butterfly to Opera Australia. Of the 42,000 people who for Handa Opera on Sydney Harbour and an attended Madama Butterfly, 41 per cent of them inaugural season of Opera on the Beach featuring had not previously been to an Opera Australia a family friendly production of The Magic Flute. An production in any venue. In wonderful news for expanded artistic program, however, inevitably Opera Australia, both Destination NSW and Dr brings more costs to the Company so it is Haruhisa Handa committed to a further three Nicole Car as Tatyana essential for Opera Australia to ensure revenue years of financial support for Handa Opera on Eugene Onegin rises to compensate. Sydney Harbour. 5 Income and Expenditure Components 2014 Income CHAIRMAN'S REPORT CONTINUED The musical The King and I exceeded all targets, extended its season and went on to be the highest grossing show in the history of the Sydney Opera House. Once again, the Opera Australia Capital Fund generated a strong investment income 77% ($82.4 m) Box office, earned income and contributions of $1.1 million. However, even after taking into 23% ($24.9m) Government grants account this investment income, the financial result for the year ended 31 December 2014 reveals a consolidated deficit of $918,000 and an operating deficit for Opera Australia of $2 million. This is a disappointing outcome that cannot be Expenditure sustained over time and operating results must be largely due to The King and I tour which resulted improved significantly in 2015. in paid attendance of 253,000 compared to 2013’s South Pacific with paid attendance of 140,000 (the The deficit was impacted by a noticeable full South Pacific tour was spread over 2012, 2013 reduction in mainstage opera box office in and early 2014). For the year ended 31 December comparison to budget expectations even 2014 Opera Australia’s total paid attendance though expenditure was well controlled and was 539,000 (excluding touring and outreach) moderate savings were achieved. The impact compared to 354,000 in 2013. Clearly, 2014 should of intergenerational change on donations is have been a good year. The reality however is increasingly significant and we must find ways mainstage average ticket prices are declining to create the next generation of donors. Revenue whilst production costs, salaries and employment from corporate sponsorship was also lower in expenses are increasing. Our Board together with 54% ($58.2 m) Staff and employment expenses 2014 than in 2013. There is an increasing demand management must continue to identify ways to 14% ($15.7 m) Venue, transport and travel costs in Australia for corporate sponsorship and with contain costs and increase revenue. 21% ($22.2 m) Depreciation, other production and overhead costs this comes increased pressure from corporates 11% ($12.4 m) Marketing and promotion to demonstrate the benefits of brand association As part of our mission to bring opera to as and ways of activating the sponsorship. many people as possible, we worked with ABC TV to broadcast three operas during On a more positive note, sales revenue for 2014 2014. During May and June the ABC broadcast was up by $15 million compared to 2013. This was Roger Hodgman’s production of the light and 7 CHAIRMAN'S REPORT CONTINUED delicious comedy Don Pasquale, La Fura dels Baus’ brilliant re-imagining of A Masked Ball and John Bell’s justifiably legendary production of Tosca. In October we held our inaugural Opera Ball to raise money to support the Moffatt Oxenbould Young Artist Program. The scenery dock at Sydney Opera House was transformed into a glamourous opera set replete with operatically themed cocktails, cabaret performances by our singers and the Australian Opera and Ballet Orchestra masquerading as The Opera Horns! In order to realise our vision of being a leading opera company on a global basis it is essential that we are financially strong. To achieve this Opera In September 2014 Federal Attorney-General Australia needs a strong Board with expertise George Brandis announced a National Opera across all significant business areas. I was Review, chaired by Dr Helen Nugent AO. The delighted to welcome back Philip Bacon AM to the review is charged with examining the artistic Opera Australia Board in April. A well regarded vibrancy, engagement with audiences and art dealer and patron and philanthropist, Philip financial positions of Opera Australia, State is one of Australia’s leading philanthropists and a Opera of South Australia, West Australian Opera great friend of Opera Australia. It was with great and Opera Queensland. With public consultation disappointment that I announced in November sessions and submissions completed the review that Simon Mordant AM had resigned from the panel is expected to report their findings and Board due to increased commitments locally recommendations around June 2015. and internationally. Simon is an intelligent contributor who has much to offer and I thank I would like to acknowledge the importance of him for his support during his time with us. the financial support we receive from our major stakeholders including patrons, subscribers and corporate sponsors. Without you, we would be unable to deliver such a strong, innovative and professional season of operas. The work of the Opera Australia Capital Fund is also vital to the ongoing success of our company and I would like to acknowledge its Board and supporters. Finally I want to acknowledge our government partners, the Federal Government through the Australia Council for the Arts, and the governments of New Teddy Tahu Rhodes as Don Giovanni South Wales and Victoria. Don Giovanni 9 Craig Hassall From world renowned theatres to outback school halls, from the harbour and even to the beach, 2014 has been a year of consolidation and expansion for Opera Australia. Under the inspired artistic leadership of Lyndon Terracini, Opera Australia has once again shown it is uniquely Australian and holds a unique place in the world. When I returned to the Company in 2013, I the first of three Mozart operas directed by Sir thought the spectacle of Handa Opera on Sydney David McVicar; and an effervescent, award- Harbour was about as iconic an Australian event winning production of The King and I that made as one could get.
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