brisbane broncos limited and its controlled entities annual financial statements and reports 2003 brisbane broncos limited and its controlled entities annual financial statements and reports 2003 Contents Company directory Directors Donald Nissen Year in Review 2 Chairman Brian Cullen Directors’ Report 4 Managing Director Donald Jackson Keith Brodie Statement of Corporate Governance Practices 10 Peter Jourdain Dennis Watt Statement of Financial Performance for the year ended 31 December 2003 12 Company Secretary Louise Lanigan Registered Office Statement of Financial Position at 31 December 2003 13 Broncos Leagues Club Fulcher Road Statement of Cash Flows for the year ended 31 December 2003 14 Red Hill, Qld 4059 Auditors Notes to the Financial Statements 15 Ernst & Young 1 Eagle Street Brisbane, Qld 4000 Directors’ Declaration 29 Solicitors Creagh Weightman Independent Audit Report 30 Level 19, 200 Mary Street Brisbane, Qld 4000 Share Registry Shareholder Information 32 Computershare Investor Services Pty Ltd Level 27, Central Plaza One Notice of Annual General Meeting 34 345 Queen Street Brisbane, Qld 4000 Proxy Form 35 Stock Exchange The company is listed on the Australian Stock Exchange. The Home Exchange is Brisbane. 1 brisbane broncos limited and its controlled entities annual financial statements and reports Year in review FINANCIAL PERFORMANCE Storm. Sadly that was to be their last The Brisbane Broncos Group recorded victory as fatigue and injuries played a modest profit for the 2003 financial their part in a disappointing end to the year to 31 December of $313,480 Minor Premiership and an early exit compared to the $375,990 profit posted from the play-offs. in 2002. Directors of the Group were satisfied with the final result, achieved in BOARD AND SENIOR MANAGEMENT a difficult year of change and a mid The Non Executive Directors of the group season relocation to Suncorp Stadium. remained unchanged for the majority of the year with Chairman Don Nissen RELOCATION TO SUNCORP STADIUM leading the team of Don Jackson, The Broncos played their first game Keith Brodie, Peter Jourdain and at the redeveloped Suncorp Stadium Dennis Watt. Individual director details on 1 June 2003 after commencing the season at ANZ Stadium. Four games were are listed in the Directors Report in this played at ANZ prior to the move which publication. Managing Director Bruno affected average attendance for the Cullen, General Manager Administration season. Official average attendance and Finance, and Company Secretary for 2003 was just over 24,000 while Louise Lanigan and General Manager an average of over 28,000 was recorded Commercial Operations Craig Richards Donald Ian Nissen for the eight games at the new world made up the senior management team. Chairman class venue. While that was a very good Craig Richards resigned in December 2003 result, the success of the team there was to return to his business in Melbourne. not so good. Winning just one game at Suncorp, (against the Roosters), THE YEAR AHEAD was a disappointing start to what everybody hopes will be a long and 2004 is an important year for the successful tenure there. From a financial Brisbane Broncos Group both on perspective the new stadium provides the and off the field. After years of planning Group with an opportunity to increase and finally moving to the new stadium, profits to a level more commensurate to the expectation is for better results the size of the organisation. all round. The team can start afresh and build a winning culture there, BRISBANE BRONCOS RUGBY LEAGUE while at the same time providing the FOOTBALL TEAM organisation with a product that attracts The football team made the play-offs not only good crowds to the ground, despite a late season eight game losing but strong corporate and sponsorship streak. They were able to achieve that support as well. Already new sponsorship because of a wonderful start to the announcements have meant the playing Brian Patrick Cullen season and an exceptional performance strip is fully sponsored and the new look Managing Director throughout the State of Origin series. Broncos are in high demand from the They led the competition heading up to commercial world. There is an air of the series commencing in May, and won expectation about the place and renewed all three games played after each Origin game. This included a last minute win enthusiasm in the players, coaches and over the Sydney Roosters, a fantastic win support staff. Everybody is looking away to the Canberra Raiders in forward to the challenges ahead in a unpleasant conditions, and finally positive and exciting manner which a sudden death win over the Melbourne should see good results for the Group. 2 2003 The Broncos’ Sponsorship A strong portfolio of companies supports the Broncos for the 2004 and 2005 Media partners the Broncos as official sponsors. This seasons. Channel Nine Queensland – Queensland’s support is vital to delivering an number one television network, proudly XXXX – in 2002 Queensland’s favourite outstanding sporting team that unites supporting the Broncos and broadcasting beer renewed its long-term association and excites the Queensland community. all Broncos games to Queenslanders since with the Broncos for a further five years. 1991. With 7 major sponsors, 3 media partners This partnership will enable two and 21 additional corporate and support Queensland icons to further entrench B105 FM – Brisbane’s number one rating sponsors in 2003, the Broncos celebrated their position in not only the Queensland radio station behind the Broncos since three new partnerships (Hans, Streets and marketplace but also in other states 1991. QR) and a continuation of the successful where the XXXX brand is becoming more partnerships fostered in 2002 and widely recognised. The Courier Mail – our nations second previous years. Significantly, the 2003 highest selling broadsheet, the Broncos Jupiters Gaming (Keno) – the sleeve season was an important year for proudly boast The Courier Mail as its sponsor of the Broncos for 2003, Jupiters sponsorships with more than 50% preferred paper. Gaming leverage this important scheduled for renewal at the close of the sponsorship to extend the brand period. Corporate sponsors awareness and participation of ‘Keno’ in Australia Post, Greenbank RSL, Harvey the Queensland and New South Wales 2004 and Beyond Norman, Birch Carroll and Coyle, Samuel market place. Jupiters Gaming continues At the commencement of 2004 more than Smith & Son, Ticketek, Yellow Cabs, QR, to support the Broncos as a major sponsor 90% of sponsorships scheduled for Trendwest and Four N Twenty. in 2004. renewal were re-committed, in addition to the signing of three new sponsors – Nike – sharing strong and common brand Support sponsors Mortgage House as sleeve sponsor, NRMA values as market leaders, in 1996 the Beiersdorf, Gainsborough Greens, Musashi, Insurance as short sponsor and Jim Beam Broncos established a partnership with Budget, Hans, Driza-Bone, Tenderplus, as cheer squad sponsor. These signings Nike as our exclusive apparel, accessory TDK, Cha Cha Cha and Il Centro. are of great significance to the Broncos as and equipment sponsor. Our close for the first time since 2001, the entire working relationship has allowed for many New sponsors for 2004 playing strip is sponsored. This success new and exciting Nike product Mortgage House – Joining the Broncos in can be attributed to the commitment of innovations on the football field and 2004 as Sleeve and home game Coach the Broncos Commercial Operations Team beyond. sponsor, Mortgage House is one of to making sure its sponsors generate a Coca Cola – another market leader and a Australia’s fastest growing home lenders. commercial return from their investment, longstanding partner of the Broncos, Mortgage House offer an exclusive the team’s continued popularity in the Coca-Cola are the official non-alcoholic discount home loan rate for Broncos valuable Queensland market, and the drink supplier of the Broncos and supporters as an important element of strength of the Broncos brand. importantly, a major sponsor of the their partnership. Featured are summaries of the Broncos Broncos junior development programs. NRMA Insurance – Australia’s largest major sponsors and media partners for Broncos Leagues Club – sharing our general insurer made its first move into season 2003. intellectual property and many associated NRL when it became the Broncos Short resources, the success of both the sponsor in 2004. Also a supporter of the Major sponsors Broncos Leagues Club and the Broncos Broncos Junior Development program, Ergon Energy Principal Sponsor - for the Football club is of great importance. As NRMA Insurance are in the business of third season running, the Broncos jersey such, our partnership is a strong and helping Queenslanders and are proud to in 2003 proudly displayed the logo of effective one. be behind the Broncos. Ergon Energy. Like all great partnerships the Broncos and Ergon Energy continually Holden – the first ‘all-Australian’ car Jim Beam – on board in 2004 as the develop the relationship towards manufacturer and a trusted Australian Broncos official bourbon of choice, Jim achieving business objectives set by both brand, Holden are the exclusive motor Beam are the presenting sponsors of the parties. Importantly, Ergon Energy has vehicle company of the Broncos. new Brisbane Broncos cheer squad. renewed their principal sponsorship with 3 brisbane broncos limited and its controlled entities annual financial statements and reports Memories of 2003 Wayne Bennett Darren Lockyer Neville Costigan Shaun Berrigan Coach Player of the Year Rookie of the Year 100 Games Best Back Players’ Player Gorden Tallis Shane Webcke Michael De Vere Casey McGuire Captain Best Forward Hit of the Year Most Improved Cyril Connell Petero Civoniceva Stuart Kelly Barry Berrigan Gold Pass member Most Consistent Play of the Year Queensland Cup Player of the Year Players’ Player John Dixon and Paul Dyer Broncos Colts Broncos Colts Coaching Staff 2003 Premiers 4 2003 Directors’ Report Your Directors submit their report for the financial year ended 31 December 2003.