2O12ANNUAL REPORT 2 CONTENTS PAGE CHAIRMAN’S REPORT 4 MANAGING DIRECTOR’S REPORT 6 CORPORATE GOVERNANCE STATEMENT 8 THE YEAR IN PERFORMANCE 12 ARTISTIC SELF-ASSESSMENT PROCESS 19 ARTISTIC SURVEY RESULTS 20 AudIENCE AccESS TO THE MELBOURNE SYMPHONY ORCHESTRA 21 EducATION AND COMMUNITY OuTREACH 22 GOVERNMENT AND PRIVATE SECTOR SuPPORT 30 DONORS 32 KEY PERFORMANCE STATISTICS 33 ANNUAL FINANCIAL REPORT 34 SPONSORS 59 COVER: SIR ANDREW DAVIS CONDUCTING THE MELBOURNE SYMPHONY ORCHESTRA IN THE MELBOURNE TOWN HALL LEFT: MARKUS STENZ CONDUCTING THE MELBOURNE SYMPHONY ORCHESTRA IN A SPECTACULAR RETURN in the re-opened HAMER HALL 3 ANNUAL REPORT DESIGNED BY SPUTNIK AGENCY ABOUT THE MUSIC MENDELSSOHN AND BRAHMS CHAIRMAN'S Report The year just passed was one in which the It is important to stress, however, MSO was in transition. We bade farewell that 2013 will also be financially to Managing Director (2011-2012) challenging, especially as more time Matthew VanBesien in February, is needed to restore the subscriber base at which point the announcement that was adversely impacted by the of our major artistic appointments – closure of Hamer Hall, and to address of Sir Andrew Davis as Chief Conductor the significant increase in the cost of and Diego Matheuz as Principal Guest performing in our refurbished home. Conductor from the 2013 season – Management and the Board are currently were still some months away. We also reviewing the appropriate actions to began implementation of a major new restore the Company to a sustainable content management system, which saw financial footing. us begin the transition to a proprietary Artistically, the return to a beautifully box office and customer relationship refurbished and acoustically outstanding platform. This will have profound positive Hamer Hall was of course one of the benefits for our business. highlights of the year for the MSO Financially, 2012 was also a year instrumentalists, choristers and staff. of transition but a difficult one as, The three-concert festival A Spectacular mid-year, the MSO completed its two- Return reunited the musicians with their year relocation to the Melbourne Town former Chief Conductor Markus Stenz Hall, following the extensive renovation over varied and exciting programs, and in of Hamer Hall. While the MSO was able works that called for forces varying in size to post a small surplus in both 2010 and from solo cello to full orchestra, chorus 2011 due to the generous business and vocal soloists. These concerts interruption funding that was provided showcased the MSO’s superlative artistic by the Victorian Government to help achievements in this new space for music. offset the negative impact of the A week after these concerts, Sir Andrew relocation on revenue and costs, the Davis returned to Melbourne as Chief funding that was provided in 2012 was Conductor-designate, and directed not sufficient to make up for the loss Orchestra and Chorus in a beautifully in revenue and the increase in costs crafted program devoted largely to Percy following the return to Hamer Hall. Grainger. Many of these works were then More specifically, subscription revenue recorded for CD and digital download continued to be negatively impacted release on Chandos, as part of an through the entire year despite returning on-going series of MSO recordings to Hamer Hall in August, and the for the label. These form an important business interruption funding that had part of the work Sir Andrew is doing been expected from August to December in putting the MSO’s achievements did not materialise. in the international spotlight. As a result of consistently rigorous financial management over a long period, the MSO has a balance sheet that allows us to absorb a deficit for 2012 of slightly under $800,000 whilst still retaining reserves in excess of $3 million going forward. 4 The second annual Education Week saw At the same time, we announced that He brings a new outlook, energy us interact with some 10,000 students in Diego Matheuz would take up the and level of musical appreciation which five days, in events ranging from Classic position of Principal Guest Conductor. will allow the MSO to maintain its path Kids to the project in which MSO Diego made a huge impression on of innovation and artistic excellence, as musicians played alongside the members audience and Orchestra alike with his well as strong commercial, fundraising of the Melbourne Youth Orchestra, debut in the Sidney Myer Free Concerts and strategic skills which will help the Share the Chair. For the first time, we in 2012. We are thrilled that a conductor Orchestra continue to build a solid invited amateur musicians from around so clearly destined for great things will foundation of financial stability. Victoria to rehearse and perform with the be playing a major part in the life of the Thanks to our enduring relationship with Orchestra in Symphony in a Day under Orchestra and Chorus. Emirates, our Principal Partner since Benjamin Northey’s direction, and the The quality of our classical presentations 2004, and to the support of our many result – in terms of the number during the year was consistently fine. other corporate partners, donors and of participants, the musical result and Particular highlights for me were the the MSO Friends, we are able to present the sheer joy of the whole experience – return of young Czech conductor Jakub an ever-broadening range of programs, exceeded everyone’s expectations. H r u˚ š a , who stepped in at short notice allowing us to reach out to the As I write, we are several months away to conduct a program which included a community more effectively than ever from the 2013 Symphony in a Day and thrilling performance of the Mussorgsky/ before. I would also like to thank my already have hundreds of applicants keen Ravel Pictures at an Exhibition. colleagues on the MSO Board for their to take part. Our presentation of The Planets under high level of involvement in and major The Orchestra’s versatility and success Alexander Shelley’s direction, in which contribution to the MSO’s activities. in engaging a wide range of audiences Holst’s music was married to vision taken came to the fore in concerts as diverse by NASA using the Hubble Space as the Doctor Who Symphonic Telescope, was an example of a wonderful Spectacular at Plenary Hall and the new concert-giving format. Tadaaki screen and symphony screening of the Otaka’s term as Principal Guest first film in the Lord of the Rings Conductor concluded with two programs HAROLD MITCHELL AC trilogy, The Fellowship of the Ring in presented in partnership with pianist CHAIRMAN Hamer Hall. We took Carnival of the Garrick Ohlsson. Their interpretation Animals to Melbourne Zoo with with the Orchestra of the two Brahms narrator Noni Hazlehurst during the piano concertos constituted a major event September school holidays and in the 2012 musical calendar. collaborated with Bell Shakespeare for In November, in another major a celebration in words and music of step forward, we welcomed André Shakespeare’s Romeo and Juliet. Gremillet as Managing Director. The appointment of Sir Andrew Davis He had been, from 2007, President and as Chief Conductor, which we announced CEO of the New Jersey Symphony in July, was a hugely important step Orchestra and made a major contribution forward for the Company. From his first to the turnaround of that organisation. downbeat of his first concert as a guest A native of Québec, Canada, he is a conductor in 2009, it was clear that the conservatory-trained pianist, and holds a musicians’ relationship with Sir Andrew Master’s degree from the Mannes College was a very special one. It is a privilege of Music, New York and an MBA from to have one of the most widely admired McGill University, Montreal. figures in classical music on the MSO podium, and we are looking forward to an extraordinary journey with this inspirational man and musician. 5 MANAGING DIRECTOR'S Report Since my arrival here at the end Needless to say, we are addressing of 2012, I have seen how deeply the the implications of our financial result community values the many roles swiftly and rigorously. We are, for the Melbourne Symphony Orchestra example, working on the expansion plays: as a cultural ambassador for the of our audience development programs City and State, as a point of aspiration and allocating more resources to artistically, and as an organisation that attracting philanthropic donations, breaks down barriers for people of all ages while looking carefully at our costs through its multi-faceted and extensive and our mix of activity. education, outreach and touring work. As I was not present for the first part Our Chairman, Harold Mitchell, has of the year, I draw your attention rightly characterised 2012 as a year of to the report by the Orchestra’s Director transition. In addition to our move back of Artistic Planning, Huw Humphreys, to Hamer Hall mid-year, we delivered on page 12, for a detailed chronicle of the a range of projects across Victoria year in music for the Orchestra and Chorus. which helped re-define the relationship In retrospect, and from my perspective, between instrumentalists, choristers and the key events of the year include Diego the communities we serve. Matheuz’ debut with the Orchestra at the These ranged from evening concerts and Sidney Myer Free Concerts in February, schools’ programs in Ballarat, Bendigo, which was hugely impressive for Orchestra Hamilton, Shepparton, Warragul and and audience alike, and quickly led to Warrnambool to our ongoing late his appointment as Principal Guest night Secret Symphony projects in Conductor from the 2013 season. collaboration with the City of Melbourne The announcement of this appointment and our inaugural Symphony in a Day in July coincided with the announcement program, in which we invited amateur of Sir Andrew Davis as Chief Conductor, musicians from all over the State to also from 2013.