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Opera Australia Annual Report 2013 Opera Australia

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Opera Australia Annual Report 2013 Opera Australia Opera Australia Annual Report 2013 Vision Enriching Australia’s cultural life with exceptional opera. Mission To present opera that excites audiences and sustains and develops the art form. Corporate Governance Contents Opera Australia is a Company Limited by Guarantee. Its governance is the responsibility of its Board of Directors, who are elected by its Members. The Board is responsible for the overall strategic direction of the Company and its ongoing viability. The Company’s direction and activities are underpinned by its agreed Values: Vision, Mission, Corporate Governance 2 Pursuit of excellence in everything we do Chairman's Report 5 Respect for knowledge, imagination and creative ambition Chief Executive's Report 11 Honesty and integrity in all our dealings Our People 24 Fairness Artists - 2013 25 Sustainability Australian Opera and Ballet Orchestra Report 27 Encouragement of professional development Patron Program 30 Respect and compassion for people Opera Australia Capital Fund - Chairman's Report 35 Safe working environment Opera Australia Activities 40 Opera Australia Salutes its 2013 Partners 47 The Board of Directors of Opera Australia is also the Board of Directors of the Australian Opera and Ballet Orchestra Limited, a wholly-owned subsidiary company of Opera Australia. The Board of Directors delegates to the Chief Executive, and through him to the executive team, authority to manage, within the parameters set by the Board, the Company’s activities. Photographs The work of the Board is supported by: Jeff Busby, Branco Gaica, James Morgan, Lisa Tomasetti and Prudence Upton The Audit and Risk Committee, which comprises all Directors. The Chief Executive and Finance Director attend its meetings, and the Company’s Auditors meet with it regularly to report on their processes and findings. The Audit and Risk Committee meets before each Board meeting, and otherwise as required, and is responsible for Cover: Susan Bullock as Brünnhilde and Terje Stensvold as Wotan closely scrutinising the Company’s management systems, financial processes, risk management practices and the Der Ring des Nibelungen financial prudence of its strategies. The Remuneration Sub-Committee, which consists of the Chairman of the Board, the Chairman of the Audit and Risk Committee and one other Director. The Human Resources Director attends its meetings when required. The Remuneration Sub-Committee meets as necessary, and is responsible for overseeing the Company’s remuneration policy, including the remuneration of the Chief Executive and the executive team. Chairman's Report David Mortimer AO 2013 has been a great year of change and consolidation for Opera Australia. This is my first year as Chairman and it has been a pleasure to be part of such a wonderful organisation full of energy and talent. I am enthusiastic about being part of an exciting journey to make our company one of the most talented and innovative opera companies in the world. In September last year we welcomed our new Chief Executive, Craig Hassall, to the Company. Craig brings a unique portfolio of expertise and skills in the arts industry, having delivered very successful projects in the UK as Managing Director of English National Ballet, and subsequently Chief Operating Officer of the Raymond Gubbay group. Craig’s early days with Opera Australia left a memorable imprint on him and he has returned (16 years later) to our company with a love for Opera Australia and a determination to help future-proof it through the careful shaping and management of our new business model. We are delighted to have Craig on board. During the period following Adrian Collette’s departure and up to Craig’s arrival in Australia Narelle Beattie stepped up as Acting General Manager and has had a magnificent impact on our company. We all thank Narelle for her contribution and congratulate her on her appointment as Chief Operating Officer of the Company. Handa Opera on Sydney Harbour Carmen 5 Opera Australia Annual Report 2013 CHAIRMAN'S REPORT CONTINUED I am pleased to report that the financial result for the year ended 31 the Opera Australia Board in March 2014. As an art dealer, patron and December 2013 shows a consolidated surplus of $468,000. The overall philanthropist Philip is a senior member of the Australian arts world and position is satisfactory due to the very strong performance of the Opera has been an active supporter of Opera Australia for many years. Philip is Australia Capital Fund which returned net income of $2.8 million for a trustee of the Board of the Queensland Art Gallery, a member of the the year. This positive Capital Fund result has been largely offset by an Queensland Government’s Arts Investment Advisory Board, a member of operating deficit for Opera Australia of $2.4 million. This deficit is despite the Board of the Foundation of the National Gallery of Australia, a member strong box office performances during the year; overall audience numbers of the Board of the Brisbane Festival and a director of the Opera Australia were in line with our plans. We achieved excellent ticket sales in a fiercely Capital Fund. With Simon and Philip we have two outstanding Australians competitive environment. Despite good sales the deficit is a setback and is both with a deep knowledge of the arts community. We will continue to largely due to 'other income areas' not achieving targets and, most concerning, consider board structures and composition on a regular basis to ensure our high expenditure in a year with multiple large-scale productions. The Board is board is fit for purpose, alert and agile in a most demanding industry. I will looking to establish sustained growth in reserves. Whilst a robust Capital Fund now take the opportunity to thank my board colleagues for their support will underpin reserves growth, operating results must be significantly improved. and contributions during the past year. We are blessed with a passionate and well informed board, determined to see Opera Australia continue to Opera Australia is entering a period where significant change has to be succeed and produce outstanding performances and artists. implemented if we are to achieve our vision of being a leading opera company on a global basis. The Company’s underlying cost structures are In the past year, Opera Australia has presented enormously successful being scrutinised and new lines of income must be secured to ensure a works. The Melbourne Ring Cycle has been praised by critics, audiences and strong future. The Board of Opera Australia believes it is critical that we partners alike. I heartily congratulate Lyndon Terracini, Anthony Legge and have a financially robust company. If we get that right we will be able Neil Armfield for their artistic leadership of the project, and the standards it to continue to offer an outstanding artistic experience. Artistically the achieved. It was an undertaking for the entire company to be proud of, and Company is in great shape; the positive response of our audience has been a success to build on in coming years. unambiguous. On completion of the second year of a new business model it’s clear that our expanded activity portfolio is achieving our goals and that John Bell’s stunning production of Tosca was a great success in Sydney it sets the best way forward. The journey however is only possible if we are Opera House. As director he brought out the timelessness of its central strong financially. stories, and layered these with imagery and chemistry that resonated with audiences of today. The outstanding performances of principal artists Alexia As part of the changes process, we have also been reviewing the structure Voulgaridou and Yonghoon Lee, and conductor Christian Badea in particular, of our Board. In doing so we have looked to see that all the required skills brought this story to life and showed how opera, at its absolute best, is an sets are covered, helping us move in new directions. Simon Mordant AM art form like no other. joined the Board in January 2014. We welcome his unique knowledge and expertise in both Australian business and as a major arts philanthropist and Handa Opera on Sydney Harbour had its second successful year, with an supporter. Simon is a director of The Australian Broadcasting Corporation, outstanding production of Carmen that shook the harbour and lit up the Chairman of the Museum of Contemporary Art Australia and is the Sydney skyline. Spectacular images of this event are fast becoming part Australian Commissioner for the 2015 Venice Biennale. He is a former of Sydney’s tourism iconography. This event aligns Opera Australia artistry board member of Sydney Theatre Company. Philip Bacon AM joined with the NSW Government’s tourism goals to achieve a special kind of 7 Income and Expenditure Components 2013 Income CHAIRMAN'S REPORT CONTINUED partnership that bodes well for the future, as we seek to create projects that attract financial support, and audience appeal, beyond traditional presentations. The international opera landscape has irrevocably changed and Opera Australia must embrace the new reality, and adapt to thrive. Opera audiences around the world have dropped, sustainable box office is a challenge, and competition for other sources of income, both public and private, is tight. There are so many opportunities for an opera company which embraces 75% ($74.8 m) Box office, earned income and contributions change, and strides confidently forward in presenting work that connects 25% ($25.2 m) Government grants with a wider range of audiences. This means productions with the highest production values, and with the most spectacular design, that can be achieved through co-presentations (and cost sharing) with other international companies. It means singers at the highest international standards, cast in the roles of best fit. And it means formats that are Expenditure familiar and welcoming to wider potential audiences, be that outdoor events, festival-style presentations or music theatre.
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