Brisbane Broncos Limited and its controlled entities annual financial statements and reports 2004 Brisbane Broncos Limited and its controlled entities annual financial statements and reports Contents Year in Review 2 2004 Sponsor Overview 4 Directors’ Report 6 Statement of Corporate Governance Practices 11 Statement of Financial Performance for the year ended 31 December 2004 14 Statement of Financial Position at 31 December 2004 15 Statement of Cash Flows for the year ended 31 December 2004 16 Notes to the Financial Statements 17 Directors’ Declaration 33 Independent Audit Report 34 Shareholder Information 36 Notice of Annual General Meeting 38 Proxy Form 39 Company Directory Directors Brian Cullen Managing Director Donald Jackson Peter Jourdain Dennis Watt Company Secretary Louise Lanigan Registered Office Level 1 Broncos Leagues Club Fulcher Road, Red Hill, Qld 4059 Auditors Ernst & Young 1 Eagle Street, Brisbane, Qld 4000 Solicitors Creagh Weightman Level 19, 200 Mary Street, Brisbane, Qld 4000 Share Registry Computershare Investor Services Pty Ltd Level 27, Central Plaza One 345 Queen Street, Brisbane, Qld 4000 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 this time and won all three games Somerville as a director. This was The Brisbane Broncos Group (“the Group”) following the Origin matches. A review of effective from the board meeting of the recorded a very satisfying and much the season highlighted the horrendous Company on 24 February 2005. improved profit for the 2004 financial injury toll the team suffered from mid Individual director details are listed in year ended 31 December of $996,210 season which resulted in another the Directors’ Report in this publication. compared to the $313,480 recorded in disappointing end. Barry Berrigan, Brett Seymour and Mick De Vere were all out for 2003. Managing Director Bruno Cullen, General the season before the half way mark and Manager Finance and Administration, and serious injuries to Darren Lockyer, Shane SUNCORP STADIUM Company Secretary Louise Lanigan and Webcke, Gorden Tallis, Shaun Berrigan Marketing Manager Fraser Kendall made After the move to Suncorp Stadium in mid and Craig Frawley all impacted on the up the senior management team. Fraser season 2003, 2004 was our first full year important build up to the finals. However Kendall was appointed in April 2004 at the new venue and directors of the the reward for the team’s solid form following the resignation of Craig Group were very satisfied with the final throughout the season was a home final Richards in December 2003. result. against Melbourne Storm. This then led to the remarkable staging of the Broncos The official average attendance for 2004 verse Cowboys semi final in Townsville. THE YEAR AHEAD was 28,605 which included a ‘sellout’ Despite the loss which ended the team’s After the first full season at Suncorp game against the Canterbury Bulldogs on season, the game was a huge boost for Stadium the future looks bright for 15 August 2004 and a crowd of 37,745 rugby league in Queensland and credit improved financial returns for the Group. against the Penrith Panthers on Anzac goes to all those associated with its The experiences of 2004 combined with Day. This average was a 17% improvement staging, particularly those from the new sales strategies are expected to on the average attendance for 2003 of Broncos including the coaching and produce these improved results. 24,404, which included four games at ANZ playing staff. The Broncos was proudly Stadium. represented by Darren Lockyer (captain), As a result of the team’s performance in 2004 and the work of the sponsorship The visiting teams have really taken to Shane Webcke, Petero Civoniceva, Tony team, sponsorship levels are at an all the stadium and enjoy the rare experience Carroll, Brent Tate and Shaun Berrigan in time high. Confirmed new sponsors for of playing there. This is reflected in the the Australian Tri Nations tour of New 2005 include the Q.L.D Group, Queensland fact that the Broncos won ten of twelve Zealand and Great Britain. Health, Queensland Country Credit Union, games on the road and only seven of and CDS Gourmet Foods. It is pleasing to twelve at home. The coaching staff and BOARD AND SENIOR MANAGEMENT see the new companies come on board players realise that gaining a home There were some changes to the non- and it is equally satisfying to have the ground advantage at Suncorp Stadium executive directors of the Company during vast majority of the existing sponsors will be much more difficult than at normal the 2004 financial year. Most renew and upgrade their association with suburban grounds. Despite these facts, significantly, Chairman Don Nissen retired the Broncos. All corporate partners, the administration team is working on in October after six years on the Board of headed by our Principal Sponsor Ergon angles to improve the experience of the Broncos. He joined the Board in Energy, are vital contributors to the coming to Broncos games at the stadium November 1998 and became Chairman in Broncos overall success and we thank and improving the financial returns from November 2001. Mr Nissen made an them for their invaluable support. these events. outstanding contribution to the Broncos during his tenure and helped build From a financial perspective, it is evident tremendous support with the Group’s from the 2004 result that Suncorp corporate partners. The Board sincerely Stadium will provide the Group with an thank him for his input and commitment opportunity to produce results that are and wish him well in his future more commensurate to the size of the endeavours. organisation. Other changes to the Board during 2004 BRISBANE BRONCOS RUGBY LEAGUE include the appointment of Wayne Goss as FOOTBALL TEAM a director on 24 May 2004 who recently The Broncos NRL team made huge gains resigned on 14 February 2005. Keith on the previous year improving their Brodie also resigned on 13 April 2004. overall position from eighth in 2003 to The directorships of Don Jackson, Peter third in 2004. The players again began Jourdain and Dennis Watt remained the season in excellent form and entered unchanged during the reporting period. the State of Origin in a prime position. The Board announced on 17 February Brian Patrick Cullen The team performed magnificently during 2005 the appointment of Mr Darryl Managing Director 2 2004 Broncos Achievements 2004 Wayne Bennett Petero Civoniceva Shaun Berrigan Tonie Carroll Coach Player of the Year Best Back Most Consistent Players’ Player Best Forward Corey Parker Karmichael Hunt Neville Costigan Gorden Tallis Most Improved Rookie of the Year Hit of the Year Clubman of the Year Craig Frawley Darren Lockyer Special Awards in 2004 Play of the Year People’s Choice Shane Webcke - 200 games, Dane Carlaw - 100 games, Player of the Year Tonie Carroll - 100 games, Brad Meyers - 100 games. Toowoomba Clydesdales award winners 2004 Kangaroo Tour Representatives Matt Ballin - Most Consistent, Joe Clarke - Most Improved, Darren Lockyer, Tonie Carroll, Petero Civoniceva, Adrian Vowles - Best Forward and Nick Parfitt - Best Back. Shane Webcke, Brent Tate and Shaun Berrigan. 3 Brisbane Broncos Limited and its controlled entities annual financial statements and reports Brisbane Broncos’ Sponsorship BRISBANE BRONCOS SPONSORSHIP PORTFOLIO – 2004 AND BEYOND 2004 marked another solid year of successful partnerships for the Brisbane Broncos. Following a season of much positive change for the sponsorship department – particularly, the implementation of a three person account management team in 2003 - the sponsorship portfolio grew by 8% from season 2003 to 2004. Another 9% growth is projected for the 2005 season. New sponsors signed at the beginning of 2004 included the two year renewal of Ergon Energy as the club’s principal sponsor, three year deals for Mortgage House as the sleeve sponsor and NRMA Insurance as the shorts sponsor, as well as the introduction of cheer squad sponsor, Jim Beam. With a portfolio almost at maximum capacity at the season commencement, the later part of 2004 saw some expected and some unexpected resignations of sponsors including long-time supporters Jupiters Keno and surprisingly, Samuel Smith & Sons as well as new sleeve sponsor Mortgage House. Despite this interruption, the department’s 9% forecasted increase for 2005 will be met with new signings including three year deals with Q.L.D Group as the new sleeve sponsor, the Queensland Health department, Queensland Country Credit Union and a year by year signing with CDS Gourmet Foods. Also contributing to this improvement, is growth in existing sponsor investment – a result of increased servicing and dedication to ensuring our business partners receive return on investment. The introduction of a clear corporate structure will be implemented in season 2005 as shown. Brisbane Broncos Corporate Partner Hierarchy for Season 2005 and Beyond Corporate Partners Sponsors Principal Sponsor Platinum (Major) Sponsors Major Sponsors Corporate Supporters Season Suite Holders Associate Sponsors Season Box Holders Season Boardroom Members Season Trophy Room Members Official Suppliers Season Legends Corner Members 4 2004 Featured are the Broncos principal and awareness helping to increase major sponsors for the 2004 season. participation of the game in the Queensland and New South Wales market