Level 3 South Bank House Stanley Street Plaza PO Box 2001, South Bank Queensland 4101 T 07 3867 2000 F 07 3844 4067 www.south-bank.net.au South Bank Corporation ABN 95 927 817 538 SOUTH BANK CORPORATION ANNUAL REPORT 08 09 A timeless journey About Our Reporting Process This report provides you with an overview of our highlights and key milestones for the reporting period. It also outlines our future direction and commitment to creating a world-class urban precinct by collaborating with our partners to create meaningful experiences for visitors. We strive not only to develop sustainable business practices, but to foster growth and strong relationships with customers and stakeholders, including: • visitors to the precinct, and the wider Queensland community • our employees • our shareholders • retailers in the precinct; and • residents in the precinct, and business and industry partners. We welcome your feedback on this report, which is available on our website: www.southbankcorporation.com.au Welcome to a timeless journey At a time when Brisbane is experiencing rapid growth and change, we understand the importance of creating places and experiences which stimulate social exchange and provide respite from the pressures of everyday life. There is no other place like South Bank in the world. We are the business behind South Bank and we believe we now have a unique destination to showcase to the world. The evolution of South Bank continues. Enjoy our timeless journey! SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 1 Part One Workplace Health & Safety Page 50 Our Business Page 3 Chairman’s Message Page 4 Part FOUR Sustainability Performance Page 51 Chief Executive Officer’s Report Page 6 Our Sustainable Journey Page 52 Our Highlights Page 9 The Green Team Page 53 Performance Overview 2008-09 Page 12 Water Efficiency Page 53 Who We Are Page 20 South Bank Corporation Profile Page 21 Part FIVE Our Board of Directors Page 22 Corporate Governance Page 55 Our Executive Management Team Page 26 Board of Directors Page 56 Board Meetings Page 56 Part TWO Member Benefits Page 56 Operational Performance Page 29 Audit Committee Page 57 Our Customers Page 30 Remuneration Committee Page 57 Our Visitors Page 33 Code of Conduct Page 57 Our Places Page 35 Crisis Management Page 58 Part THREE Consultants Page 58 Social Performance Page 41 Keeping Visitors Safe Page 58 Our People Page 42 Freedom of Information Page 58 Our Communities Page 46 Risk Management & Insurance Page 59 Our Corporate Partners Page 47 Part SIX Financial Performance Page 61 CONTENTS 2 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 PART ONE 01 Our Business SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 3 Chairman’s Message Growing our Business South Bank Corporation entered into a phase of further transformation during the year, which will result in major changes across all aspects of the business. While our destinations have evolved considerably since the Corporation’s inception, the development phase we have now entered will take us to another level and enhance South Bank Corporation’s reputation as one of Australia’s most dynamic public place managers. The emergence of new public spaces is coupled with a strong financial result which underscores the success of the activities during 2008-09. Improving Financial Performance We recorded an improved net cash flow for 2009 of $5.6 million excluding extraordinary government grants; this contribution reflects a positive swing of $7.1 million when compared to last year’s results. The significant improvement in operating performance and cash flows is derived from higher contributions from retail rental income and car parking, sustained revenue and profitability of the Brisbane Convention & Exhibition Centre, revenue generated by the completion of long term lease agreements over development property, and a reduction in asset re-investment costs. The enhanced trading performance of our retail assets minimised the negative impact of market revaluations across the investment property portfolio of $2 million (3.8 percent of asset value). 4 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Given the retail appetite for the South Bank precinct, we look visitors to enjoy. As Brisbane’s population increases, we are forward to expanding the Corporation’s income producing asset forward planning to create new multi-use public spaces so base over the next year. Continued commercial and residential that visitors take full advantage of our authentic, world-class growth within the immediate area has aided the ongoing destination. demand for development opportunities (generating profits in favour of the Corporation). Delivering into the Future Next year will see the commencement of the exciting Southpoint South Bank Corporation will continue to strive for excellence. project at the corner of Vulture and Grey Street and the We will continue working on securing new and exciting retail development of the ABC headquarters on Grey Street, reinforcing offers which complement our places and add new dimensions the Corporation’s aim to transform Grey Street into Australia’s to visitor experiences. We will continue delivering world-class best cultural boulevard. developments that ensure we meet the expectations of our shareholders and customers. South Bank Corporation’s Contribution to Queensland We face exciting challenges ahead. Though spirit, industry and strong stakeholder partnerships - hallmarks of our Corporation, The South Bank precinct and Brisbane Convention & Exhibition we will positively build on this year’s achievements, next year Centre are major contributors to the Queensland economy, and into the future. generating approximately 800 jobs and contributing $70 million I would like to thank the Board and employees at the to regional economies annually. Corporation for their ongoing commitment to the evolution of Given the current developments underway across the precinct, the precint. we expect the Corporation’s contribution to the State economy We now have a solid foundation on which to achieve our growth to grow at an even greater rate during the next five years and objectives and continue as an innovative and successful and beyond. organisation. The Emergence of New Quality Public Spaces For several years, South Bank Corporation has worked in partnership with the State Government, Brisbane City Council, Brisbane Marketing, Tourism Queensland and current and prospective partners to promote the South Bank precinct to the Steve Wilson people of Brisbane as a place where they can enjoy an array of CHAIRMAN great experiences, unlike anything else in Brisbane. We have implemented a number of major initiatives to increase the quality and quantity of green space. We have created two hectares of new open space on Little Stanley Street, which has contributed to the vibrancy and variety of experiences for SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 5 Chief Executive Officer’s Report Responding to the Challenges This year South Bank Corporation faced diverse challenges arising from a market which is placing greater demands on our precinct as well as a rapidly growing inner-city population. In taking up these challenges, we have continued to invest in planning for the future by improving the quality and accessibility of our spaces. We are confident that this investment will deliver the best results for Queensland. While our focus was on several large and significant developments, including the expansion of the Brisbane Exhibition and Convention Centre, the Corporation is redoubling its efforts to maintain high levels of customer satisfaction and meaningful visitor experiences. Expanding on our Delivery Capability This year marked the announcement that the Parklands will see one of the most significant design changes in over ten years through the redevelopment of the original Boardwalk site. This exciting public space will deliver 70 metres of new riverfront parkland for the people of Brisbane to enjoy. Visitors will be able to engage with the river more than ever; realising a long-held dream to revitalise our city’s relationship with the river. In a major coup for the precinct, we also announced that the Australian Broadcasting Corporation (ABC) headquarters will be relocating to the precinct. Our cultural and educational partners as well as the wider Brisbane population will benefit from having a state-of-the-art media centre in the heart of the 6 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 city where they can see and learn about how electronic media I want to personally thank all staff for their ongoing operates, a Brisbane first. commitment and their desire to take our organisation to a new level. While pursuing our entrepreneurial community role, we simultaneously focus on achieving efficiencies and cost control and we build on the success achieved to date by Supporting our Communities creating memorable visitor experiences, outstanding customer This year, as part of our commitment to being a responsible relationships and delivering operational excellence. corporate citizen, we continued to engage the local community and support charity organisations. Evolving our Business We actively participated in a number of fundraising initiatives We are committed to being a high performing organisation, including Clean Up Australia Day, Yalari Foundation, Talk Like a driven by continuous improvement. These cultural drivers are Pirate Day and Zoe’s Place. vital in delivering value to customers and stakeholders and in our long-term business success – critical