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Fed Square Pty Ltd ACN 085 731 479 1 2 3 Fed Square Pty Ltd 4 5 6 7 8 Annual Report 9 For the year ended 30 June 2010 Fed Square Pty Ltd ACN 085 731 479 Table of Contents Chairman’s Statement .......................................................................................................... 1 Chief Executive Officer’s Report on Operations ................................................................. 2 Key Performance Indicators 2009-10 ................................................................................. 18 Statement of Corporate Governance ................................................................................. 22 Directors’ Report ................................................................................................................. 27 Auditor-General’s Independence Declaration .................................................................... 29 Comprehensive operating statement for the financial year ended 30 June 2010 ........... 30 Balance sheet as at 30 June 2010 ...................................................................................... 31 Cash flow statement for the year financial ended 30 June 2010 ..................................... 32 Statement of changes in equity for the financial year ended 30 June 2010 .................... 33 Notes to the financial statements for the year ended 30 June 2010 ................................ 34 Directors’ Declaration ......................................................................................................... 51 Audit Opinion ....................................................................................................................... 52 Fed Square Pty Ltd ACN 085 731 479 Chairman’s Statement I am pleased to provide the 2009/10 Fed Square Pty Ltd Annual Report. Most recently the milestone of 60 million visits to Fed Square since 2002 was recorded. This figure is evidence of ongoing success and public engagement underpinned by comprehensive and effective business management. The Board and I continue to note such achievements and highlights as: 2,432 activities and events which are testament to the diversity of community and cultural activity in the state and the hard work and service ethos of our staff. Another year of strong financial performance with a surplus before depreciation of $4.8 million. Continued exemplary performance in risk management across such a wide range of asset, business and event operations. 99% visitor satisfaction with 90% of Victorians, at last count, saying that that Fed Square is great for Melbourne The growth of our hallmark Light in Winter program and the extraordinary worldwide response to Rafael Lozano Hemmer‟s Solar Equation. June and July saw a significant rise in visitation as a result. Continuing national and international attention to Fed Square as a benchmark for great place management. Enhancements such as improved access and increased comfort for visitors. Positive results from our exploration of the „social media‟ space. The reduction in carbon footprint of nearly 60% over 3 years. It has also been a year of achievements for our onsite partners. The NGV Australia has opened its new Kids Corner offer as well as hosting the wonderful Rupert Bunny, Artist in Paris Exhibition and ACMI launched its engaging Screen Worlds permanent exhibition and opened the phenomenally successful Tim Burton exhibition. We were pleased to welcome the social enterprise, Streat, to the precinct as well as the No Vacancy Gallery and the popular ABBAWORLD exhibition. Thank you to the staff and Board for their hard work and to all our stakeholders, especially the State Government of Victoria, for their continued enthusiasm and the City of Melbourne for its welcome support of project initiatives. John Harvey Chairman - 1 - Fed Square Pty Ltd ACN 085 731 479 Chief Executive Officer’s Report on Operations “Dear Management at Fed Square, I just heard that the BMW Edge has been offered to the Choir of Hope and Inspiration as their home venue and would like to congratulate you on this enlightened and generous decision made by your team. It is very heartening to me as a member of the Melbourne community who is particularly interested in music and the arts to read of this wonderful support and sponsorship from our foremost gathering place in Melbourne. I thank you for taking this step and I hope other venues will take your inspirational lead in actively supporting the community to re-engage and re-connect various groups who seek to promote the arts as an mechanism for an inclusive community. I will spread this excellent news to my friends and once again – well done Fed Square – proud of you!!” (private citizen - email) INTRODUCTION I am pleased to report on continuing success across all areas of operation. Full year estimated visitation for 2009- 10 to Federation Square was 8 million and the precinct is ranked in the top 2 of Victoria‟s leading destinations for domestic and international visitation with 56% of visitors coming from Melbourne, 7% from Regional Victoria, 19% from interstate and 19% from overseas. Activity levels have remained consistently extremely high throughout the year with commercial, community, charitable, sporting, cultural and media activities reflecting and expressing Victoria‟s strengths. In total 2,432 activities were delivered over the full year with 80% free and accessible to the public. 6,414 media articles were generated with 851 being international. The most recent customer satisfaction survey showed 99% of visitors were satisfied with their visit and a significant 64% were extremely satisfied. Fed Square Pty Ltd continues to perform strongly in financial terms with a net operating surplus for the year before depreciation of $4.821 million, an excellent outcome given ongoing sensitivities in the consumer market affecting various sources of revenue. Notwithstanding these successes, we are mindful of the need to continually review and refresh both our organisation and the experiences in the precinct. With this in mind our corporate plan and performance measures for 2010-11 include aspirational focuses building on the successes of the past, sharpening our focus and fashioning our somewhat limited resources to achieve outside any comfort zone, as well as maintaining existing strengths. We have reframed our strategic objectives to emphasise: Great Place - ensuring Fed Square is Melbourne‟s primary meeting place and enhancing our position as a “place leader”. Great Staff - the importance of being considered an „employer of choice‟. Great Delivery - being known as a „can do‟ organisation because of the quality and timeliness of service delivery. Great Business Practice - continuing to advance a sustainable business through attention to „best practice‟ commercial, asset, risk management and governance programs. Great Visitor Experience - our commitment to refining and refreshing all aspects of the unique Fed Square experience. Great Reputation - working systematically to ensure Fed Square is regarded locally, nationally and internationally as an urban success story. Future documentation will report against these objectives. - 2 - Fed Square Pty Ltd ACN 085 731 479 INTERNATIONAL POSITION - CONTEMPORARY WORLD SITE “Wander Federation Square... a modern marvel of architecture, museums and restaurants all in one central city centre meeting spot.” ABC USA – A View from the Bay TV show – website “When I think of buzzing cities, I think Times Square in New York, Federation Square in Melbourne, Trafalgar Square in London.” Blog “Sandstone, glass and zinc are the integral components of Federation Square. These come together as an exuberant jumble of cubic buildings, which sit around an extensive piazza. Walking, talking, lazing or café- grazing and gazing are the human face of this piazza, which is paved with around half a million cobblestones of Kimberley sandstone.” The Star Online – Malaysia News Increasingly Federation Square is being established as a worldwide benchmark for public space design and management. In this year we have continued to consult to colleagues across Australia and in the UK and Asia as well as collaborating on activities in Shanghai and Seoul. We continue to position Federation Square as a hallmark image for Melbourne with a view to increasing tourism visitation. Examples include Fed Square being used as a hero image for: Melbourne such as in Tourism Australia's 'There's Nothing Like ..." campaign Tourism Victoria Brand Victoria Book The City of Melbourne's 'That's Melbourne' website postcard Victoria‟s contribution to the Shanghai World Expo In total there were 851 international media placements predominantly in the United States and United Kingdom as well as a strong interest and some dedicated coverage in China and Taiwan. Media articles in priority countries where we aim to source visitors are strong (UK 102, NZ 40, Singapore 14, China 26), as is the number of priority country tourism familiarisations (UK 6, NZ 4, Singapore 6, China 10). These follow establishment of networks with key tourism industry representatives in New Zealand, Singapore and United Kingdom. Representation with key tourism partners continued including with the Tourism Alliance Attractions Group, Backpacker Operator Alliance of Victoria Board, Tourism Victoria, Tourism Australia, Melbourne Convention & Visitors Burea. Production of bi-monthly tourism industry-specific, long lead e-newsletters provided a regular flow of information. In the year there were numerous formal filming hires
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