2012SYDNEY

SYMPHONYANNUAL REPORT

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THE STORY OF SYDNEY SYMPHONY ONCE AGAIN DEMONSTRATES THE COMPANY’S ABILITY TO ADAPT, STAY RELEVANT AND CONTINUE TO FLOURISH.

Kees Boersma, Principal Double Basses with student at Playerlink Albury.

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SYDNEY SYMPHONY2012 ANNUAL REPORT

8Chairman's Review

9 Managing Director's Review

14 Community

18Supporters – Donors & Sponsors

11Five Year Performance Summary

12Message from Vladimir Ashkenazy

IN OUR 80TH ANNIVERSARY YEAR THE SYDNEY SYMPHONY CELEBRATES SUCCESS, RESILIENCE & GROWTH

Sydney Symphony Musicians 20124

Year in Review6

Clockwise from top left: Sydney Symphony schools concert at the ABC, Ultimo; Carolyn Harris, Tutti Flute, digital Playerlink presentation to Albury at the Telstra Experience Centre, Sydney; Vladimir Ashkenazy, Anne-Sophie Mutter and the Sydney Symphony at the Sydney Opera House; Mahler Symphony No. 2 CD cover with Vladimir Ashkenazy; Cellist Jian Wang performs with the Sydney Symphony in Shanghai; Sydney Symphony brass section celebrate the 80 year anniversary of the Sydney Harbour Bridge.

4 SYDNEY SYMPHONY MUSICIANS2012

FIRST VIOLINS

Sun YiAssociate Concertmaster

Kirsten Williams Associate Concertmaster

Fiona Ziegler Assistant Concertmaster

Julie BattyJennifer BoothMarianne BroadfootBrielle ClapsonSophie Cole Amber DavisJennifer HoyGeorges Lentz Nicola LewisAlexandra MitchellAlexander NortonLéone Ziegler

SECOND VIOLINS

Marina MarsdenPrincipal

Kirsty Hilton Principal

Alexander Read Associate Principal

Emma West Assistant Principal

Susan Dobbie Principal Emeritus

Maria Durek Emma HayesShuti HuangStan W KornelBenjamin LiEmily LongNicole MastersPhilippa PaigeBiyana RozenblitMaja Verunica

VIOLAS

Roger Benedict PrincipalKim Williams AM & Catherine Dovey Chair

Tobias Breider Principal

Anne Louise Comerford Associate Principal

Justin Williams Assistant Principal

Robyn BrookfieldSandro CostantinoJane HazelwoodVeolia Environmental Services Chair

Graham HenningsStuart JohnsonJustine Marsden Felicity Tsai Leonid Volovelsky

CELLOS

Catherine HewgillPrincipalThe Hon. Justice AJ & Mrs Fran Meagher Chair

Leah Lynn Assistant Principal

Kristy ConrauFenella GillTimothy NankervisElizabeth NevilleRuth & Bob Magid Chair

Christopher PidcockAdrian WallisDavid Wickham

DOUBLE BASSES

Kees Boersma Principal

Alex Henery Principal

Neil Brawley Principal Emeritus

David CampbellSteven LarsonRichard Lynn David MurrayBenjamin Ward

HARP

Louise JohnsonPrincipal

FLUTES

Janet Webb Principal

Emma Sholl Associate PrincipalRobert & Janet Constable Chair

Carolyn Harris

PICCOLO

Rosamund PlummerPrincipal

OBOES

Diana Doherty Principal Andrew Kaldor AM & Renata Kaldor AO Chair

Shefali Pryor Associate Principal

David Papp

COR ANGLAIS

Alexandre Oguey Principal

CLARINETS

Lawrence Dobell PrincipalAnne Arcus & Terrey Arcus AM Chair

Francesco Celata Associate Principal

Christopher Tingay

BASS CLARINET

Craig Wernicke Principal

BASSOONS

Matthew Wilkie Principal

Roger Brooke Associate Principal

Fiona McNamara

CONTRABASSOON

Noriko ShimadaPrincipal

HORNS

Robert Johnson PrincipalJames & Leonie Furber Chair

Ben Jacks Principal

Geoff O’Reilly Principal 3rd

Euan HarveyMarnie Sebire

TRUMPETS

David Elton Principal

Paul Goodchild Associate Principal

John FosterAnthony Heinrichs

TROMBONES

Ronald Prussing Principal

Scott Kinmont Associate Principal

Nick Byrne

BASS TROMBONE

Christopher Harris Principal

TUBA

Steve Rossé Principal

TIMPANI

Richard Miller Principal

Mark RobinsonAssistant Principal Timpani/Tutti percussion

PERCUSSION

Rebecca Lagos Principal

Colin PiperJustice Jane Matthews AO Chair

Vladimir AshkenazyPrincipal Conductor & Artistic Advisor Sponsored by Emirates

PATRON

Her Excellency Professor Marie Bashir AC CVO

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CONDUCTOR

ASSISTANT CONDUCTOR CONCERTMASTER

Jessica Cottis Supported by Premier Partner Credit Suisse and Symphony Services International

Dene Olding

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Top to bottom: Rowena Watts, Sydney Symphony Fellow at St James Church concert in Sydney; Guangzhou Arts Festival poster featuring Vladimir Ashkenazy and the Sydney Symphony.

SeriesNo. of

PerformancesNo. of

ProgramsPaid

Occupancy

Ausgrid Master Series 27 9 57,085

Thursday Afternoon Symphony 9 9 19,877

Emirates Metro Series 8 8 16,104

Meet the Music 8 4 16,146

Kaleidoscope 8 4 17,261

Great Classics 7 7 15,020

Tea and Symphony 8 8 14,482

Mondays @ 7 5 5 10,716

Discovery Program 4 4 3,831

International Pianists in Recital 4 4 4,125

Mozart in the City 4 4 3,836

Gala performances 6 3 12,912

Commercial concerts 17 6 31,569

Total 115 75 222,964

300,000 8,600

6 YEAR IN REVIEW

IN 2012 THE SYDNEY SYMPHONY PERFORMED OVER 200 CONCERTS TO MORE THAN 300,000 PEOPLE.

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115The Sydney Symphony presented 115 concerts in the Sydney Opera House and City Recital Hall Angel Place to 222,964 patrons.

These performances included 92 concerts to which subscriptions are sold across 11 series, six gala performances and a further 17 performances which fall outside the main subscription series.

CONCERTS

THE EDUCATION PROGRAM

30,786 knowledge seekers attended 70 education activities in 2012, excluding the Discovery concerts.

23,890 teachers and students attended 39 schools concerts in Sydney and a further 2,178 teachers and students attended education programs in regional areas in conjunction with the Sydney Symphony’s other touring activities. Regional education activities took place in Coffs Harbour, Grafton, Newcastle, Taree, Singleton and Albury.

3,639 patrons attended 15 performances by the Credit Suisse Fellows in 2012 at venues including St James’ Church King St, Verbrugghen Hall, Blacktown Arts Centre, Goulburn Regional Conservatorium and the South Coast Correctional Centre.

Three open rehearsals were held at the Sydney Opera House, with 295 teachers and students attending.

Five professional learning workshops were held in Sydney, attracting 525 teachers and students.

A further eight professional learning workshops were held in regional areas for 259 teachers and students.

SYDNEY SYMPHONY APP DOWNLOADS

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TOURING & OUTREACH

The Sydney Symphony performed at two free outdoor concerts in 2012:

Symphony in the Domain on January 21 – 35,000

Parramatta Park on March 10 – 4,500

The Sydney Symphony also gave concerts in Orange and Armidale, as well as its debut performance at The Concourse in Chatswood.

As part of the orchestra’s annual regional touring activities the Sydney Symphony and Sinfonia ensembles performed in Grafton, Taree and Newcastle. Members of the Sydney Symphony Brass section performed in Armidale, Port Macquarie and Grafton. Further outreach also occurred in Singleton.

40 Sydney Symphony performances were broadcast on ABC Classic FM in 2012, and 10 concerts were sent to the European Broadcasting Union.

Six performances were made available for streaming on the BigPond website and via the Sydney Symphony’s free mobile app.

Three Mahler discs (Symphonies 9, 10 and 2) were released by the Sydney Symphony in 2012, in addition to recordings of Prokofiev’s Romeo and Juliet and Tchaikovsky’s Violin Concerto. ABC Classics also released Kalkadungu, which featured the Sydney Symphony.

COMMERCIAL COLLABORATIONS The Sydney Symphony plans its seasons well in advance. Acknowledging that opportunities to perform in collaboration with popular commercial artists require a shorter planning window, the Company allocates a percentage of available orchestral playing time to these projects. This work is undertaken either with the Sydney Symphony taking the role of presenter or as a ‘band for hire’.

In 2012 the Sydney Symphony performed in 17 concerts in this category which attracted 31,569 attendees.

31,569ATTENDEES

525TEACHERS & STUDENTS ATTRACTED TO LEARNING WORKSHOPS

BROADCASTS ON ABC CLASSIC FM

Sydney Symphony musicians performed in four Music4Health events in 2012, at Montefiore Randwick, Montefiore Hunters Hill, Mt Pritchard Autism Advisory and Support Service and the Powerhouse Museum.

Sydney Symphony musicians also continued to contribute to the wider community in their capacity as teachers and members of community music groups.

Under the direction of Principal Conductor and Artistic Advisor Vladimir Ashkenazy, the Sydney Symphony toured China in 2012. Performances were given in Tianjin, Beijing, Guangzhou, Wuhan, Shanghai and Qingdao, with the tour marking the cultural highlight of year-long celebrations marking the 40th anniversary of diplomatic relations between Australia and China. Further outreach occurred at the Xinghai Conservatory, the first activities resulting from a Memorandum of Understanding with the institution signed in October 2012.

Since April 2012, the Sydney Symphony’s mobile app has attracted approximately 4,500 visits per month. At the end of 2012, the Sydney Symphony App had received over 8,600 downloads across 51 countries.

Buzz Lightyear, Pixar in Concert.

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CHAIRMAN’S REVIEW

THE COMPANY HAS... SUCCESSFULLY SIGNED MEMORANDUMS OF UNDERSTANDING WITH TWO SIGNIFICANT CULTURAL ORGANISATIONS IN CHINA.

John C Conde aoChairman

In our 80th anniversary year the Sydney Symphony celebrated success, resilience and growth as an independent arts company, with its heritage dating back to 1932 and its formation by the Australian Broadcasting Commission. Our success over these eight decades reflects the strength of our mission, people, values and culture. The founders of the orchestra would be amazed by how far the orchestra has come, and would be excited about the opportunities ahead.

The story of the Sydney Symphony once again demonstrates the Company’s ability to adapt, stay relevant and continue to flourish despite often challenging global economic and social changes. The Sydney Symphony proudly proclaims a heritage that is uniquely musical. From humble beginnings in 1932, the Sydney Symphony continues to adapt and to present classical music to a “high tech” 21st century community far removed from its initial radio audiences.

The ability to adapt and stay relevant was also demonstrated clearly in 2012 when the Sydney Symphony embarked on a six-concert tour of China, the second since 2009. This tour represented the climax to a celebratory year of events marking the 40th anniversary of diplomatic relations with the Peoples Republic of China. We are very proud, once again, to be flying the flag for Australia overseas and showcasing the calibre of our arts institutions to international audiences. The company has a bold vision

to substantially increase its international presence in Asia and has successfully signed Memorandums of Understanding with two significant cultural organisations in China, the Xinghai Conservatory, Guangzhou and The National Centre for the Performing Arts, Beijing. These agreements, combined with our outreach activities, including touring, will offer the Australian government and commercial entities substantial opportunities to further increase their exposure in the region.

The Board’s focus on the key performance criteria embodied in our business plans, being Artistic Vibrancy, Access and Financial Stability, has again been soundly rewarded in 2012. We have exceeded targets in all key performance indicators in 2012 and produced a significant operating surplus of $425,613. I thank my fellow directors for their efforts during the year and I make special mention of Mr David Smithers AM who retired from the Board in May 2012 after 11 years of service. David was a dedicated Board member whose contributions as a director and as Chairman of the Board Finance Audit and Risk Committee were highly valued, and his governance skills were gratefully appreciated by directors, musicians and management.

We acknowledge the continued support of our subscribers, donors and sponsors and thank the Australian Government, through the Australia Council for the Arts, and the NSW Government, through Arts NSW, for their invaluable assistance.

The fact that Sydney Symphony has grown to become a recognised brand, as well as a leader in orchestral music, shouldn’t be surprising to anyone who understands both the culture and spirit of the orchestra. And nothing is more important to delivering on our mission than the orchestra’s outstanding musicians. I am proud of the heights that the orchestra has reached under the inspirational leadership and guidance of Mr Vladimir Ashkenazy. We also are proud of the service of our dedicated management team led ably by our managing director Mr Rory Jeffes, and of the programs we have in place to serve our community.

The passing of our 80th anniversary has seen many artistic highlights, with virtuoso solo performances from leading international and local artists. It is always a delight to view our passionate audiences enjoying classical music presented by such a world-class orchestra. We look forward to continuing in that vein for the next eighty years with equal energy and enthusiasm.

John C Conde ao Chairman

9MANAGING DIRECTOR’S REVIEW

Rory JeffesManaging Director

The milestone of the Sydney Symphony’s 80th anniversary was marked through a season of ambitious artistic projects, both to showcase the outstanding quality of our ensemble of musicians and to present our community with a diverse range of musical experiences – in the company of some of the finest conductors and soloists in the world. There were many significant highlights to the year, and whilst the retail environment in which we operate remained subdued, I am pleased to report that this landmark season connected strongly with our audiences. We have again achieved a surplus for the year while continuing to invest in major artistic projects, growing our education program and continuing our annual touring program.

The success of the Company is built on the outstanding quality of our ensemble of musicians, supported by a dedicated and tireless administration team, Board and volunteers. It is truly a communal effort and all involved can be proud of the statement made through the Sydney Symphony’s 80th anniversary – both for the brilliance of the performances and for what this extraordinary organisation has become over the past eighty years.

Artistic achievements The Sydney Symphony celebrated a significant milestone across its entire 2012 season, marking the orchestra’s 80th anniversary year with an extensive program of special concert performances featuring many of the world’s finest performers. Record concert attendances were registered in Sydney and large audiences heard the orchestra beyond Australian shores, underlining the pre-eminent status of the orchestra in the minds of Australians and audiences further abroad. Vladimir Ashkenazy’s fourth season as the Sydney Symphony’s Principal Conductor and Artistic Advisor started with four powerful performances of Beethoven’s Ninth Symphony and culminated at the close of the year in a three-week Tchaikovsky Festival, which included two landmark opera-in-concert performances of Tchaikovsky’s opera Queen of Spades with Stuart Skelton and Dina Kuznetsova in the highly demanding leading roles of Herman and Lisa. The Sydney concert calendar also saw the much anticipated Australian debut performances of the remarkable German violinist Anne-Sophie Mutter, who performed Beethoven’s Violin Concerto on a program that also included Vladimir Ashkenazy’s authoritatively commanding performances of Shostakovich’s Fifth Symphony.

The 80th anniversary year was a year to celebrate many achievements and a year to revisit some of the historical milestones of previous years. A notable highlight of the season was the recreation of the orchestra’s first official performance in the Sydney Opera House on 29 September 1973, with Simone Young conducting these all-Wagner concerts and the American soprano Christine Brewer adding gala vocal splendour in excerpts from Tannhäuser, Tristan und Isolde and Götterdämmerung. The orchestra also remembered important visits to Sydney by eminent composers Igor Stravinsky and Aaron Copland, with compositions re-visited to mark the orchestra’s anniversary. In addition, the orchestra awarded an 80th Anniversary Composition Prize to the Sydney-born composer Elliott Gyger, whose on air, dialogue for orchestra was premiered by the orchestras under the direction of Vladimir Ashkenazy in March 2012. Further composer highlights of the season included performances of major orchestral works by Richard Strauss, concertos by Brahms, as well as three important symphonies by Shostakovich and Tchaikovsky.

A year of many celebrations included an important announcement securing a continuation of superlative artistic achievements in future seasons, with the appointment of the distinguished American conductor, David Robertson, as the Sydney Symphony’s Chief Conductor and Artistic Director from the start of the 2014 season. This announcement was greeted with much applause in the arts sector in Australia and overseas, and bodes extremely well for the future artistic health and vibrancy of the orchestra. David Robertson conducted two weeks of concerts in Sydney in June and July 2012, including a revival of William Barton’s and Matthew Hindson’s Kalkadungu, featuring William Barton as didjeridu soloist, and the Australian premiere of a piano concerto entitled Stumble to Grace

by American Steven Mackey, performed by Orli Shaham as piano soloist. These concerts further included performances of symphonies by Mozart, Prokofiev and Tchaikovsky, Thomas Adès’s stunning Violin Concerto Concentric Paths, with Anthony Marwood as soloist, and Vaughan Williams’s Fantasia on a Theme of Thomas Tallis.

Major international soloists performed with the Sydney Symphony throughout its 80th anniversary season, and included, in addition to those already mentioned, violinists Lisa Batiashvili, Isabelle Faust and Julian Rachlin, pianists Behzod Abduraimov, Nicholas Angelich, Philippe Bianconi, Alexander Gavrylyuk, Andreas Haefliger, Angela Hewitt, Stephen Kovacevich and Garrick Ohlsson, as well as the superlative French oboist François Leleux and the Chinese cellist Jian Wang. In October 2012, the orchestra returned to China to perform six concerts in six cities (Tianjin, Beijing, Guangzhou, Shanghai, Wuhan, Qingdao) to mark the 40th anniversary of diplomatic relations between China and Australia, with Jian Wang appearing as soloist in the Dvo�ák Cello Concerto and a specially commissioned encore for solo cello and four-part cello ensemble by Chinese composer Qigang Chen. In addition, the orchestra performed an orchestral encore entitled Reflection of the Moon on Erquan arranged by Jian’er Zhu.

At the start of the year, the Sydney Symphony performed to large audiences the annual Symphony in the Domain concert, presenting, under the banner headline “The Young Ones”, highly talented young Australian soloists Emily Sun (violin) and Nicholas Russoniello (saxophone), and young Australian conductor Nathan Aspinall. Also within the Sydney Festival program, the orchestra played three sold-out performances of the full soundtrack to newly remastered film classic West Side Story.

2012 WAS CLEARLY A YEAR OF VIBRANT ARTISTIC HEALTH, STRONG AUDIENCE CONNECTION AND BALANCED FINANCIAL OUTCOME.

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MANAGING DIRECTOR’S REVIEW

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Further stunning presentations of the Sydney Symphony’s 80th anniversary season, included the second instalment of Peter Jackson’s The Lord of the Rings: The Two Towers with live orchestra soundtrack, and appearances in the orchestra’s eclectic Kaleidoscope series of superb guest performers Chris Botti (trumpet), Bramwell Tovey (pianist-conductor), Miguel Harth-Bedoya (conductor) and the Los Angeles Guitar Quartet.

The year saw the return appearances of much-respected guest conductors Oleg Caetani, Hannu Lintu, Robert Spano, Hugh Wolff and David Zinman, and successful debut appearances of conductors Andrew Grams, Jakub Hru˚ !a, Lothar Koenigs, Matthias Pintscher and Michael Stern. The season was a strong one for appearances by Australian performers, as it featured conductors Nicholas Carter, Richard Gill, Brett Kelly, Michael Mulcahy and Simone Young, instrumental soloists William Barton, Scott Davie, Amy Dickson, Piers Lane, Kathryn Selby, Oliver She and David Thomas, as well as vocal soloists including Fiona Campbell, José Carbó, Deborah Humble, Jacqueline Porter and Sally-Anne Russell. Musicians of the orchestra also appeared as soloists, including fine performances by Roger Benedict and Dene Olding, as well as percussionists of the orchestra as soloists in Takemitsu’s From Me Flows What You Call Time, and the cello section of the orchestra in a special Tea & Symphony concert program.

RecordingsThe Sydney Symphony undertook two important commercial recordings during 2012, which featured live recordings of stellar concerto performances:

ROSS EDWARDS Full Moon Dances – For ABC ClassicsAmy Dickson, saxophone; Miguel Harth-Bedoya, conductor

TCHAIKOVSKY Piano Concerto No. 2 – For Sydney Symphony LiveGarrick Ohlsson, piano; Vladimir Ashkenazy, conductor

The Sydney Symphony Live catalogue now includes the MAHLER ODYSSEY cycle of the complete Mahler Symphonies conducted by its internationally acclaimed Principal Conductor and Artistic Advisor Vladimir Ashkenazy. Also completed and released in 2012 on the Sydney Symphony Live label is the recording of Prokofiev’s complete Romeo and Juliet ballet score, with Vladimir Ashkenazy conducting. These Mahler and Prokofiev recordings will appear in Japan and other Asian countries on the Japanese label OCTAVIA, by special arrangement.

Completed in late 2011 and not yet released is a recording for the BIS label, which will appear in Australia in 2013 on the Sydney Symphony Live label:

BRETT DEAN: The Lost Art of Letter Writing – Violin ConcertoFrank Peter Zimmermann, violin; conducted by Jonathan Nott

Audience development In 2012 Sydney Symphony achieved its second-highest classical ticket sales year, and also the third-highest number of seats sold per concert as compared to any year in the last 12 years of available records. In all, 191,401 subscription and single tickets were sold to 92 subscription and 6 special event performances, averaging 1,953 paid seats per performance.

The total number of subscription package seats sold increased by 2% over levels achieved in 2011, and more than 23,617 subscription packages were transacted. Subscription seats accounted for 63% of all seats sold, and over 120,000 seats were sold as part of subscription packages: also the highest level achieved of any year since 2001.

Paid tickets per concert overall were down slightly on 2011 levels. The company enjoyed full houses for many events, averaging 84% paid of available capacity; also down slightly from 86.4% paid of available capacity in 2011.

In 2012, 17 commercial performances of six discrete programs were presented to over 31,000 paying customers. The total paid audience footprint for all concert events in 2012 was 222,964.

Sydney Symphony partnersSydney Symphony is the only symphony orchestra in Australia that generates significantly more income through its own activities than the level of funding we receive from Federal and State governments. This funding is nevertheless critical to the success and vibrancy of the organisation and we acknowledge this support from Australia Council for the Arts and Arts NSW and remain committed to delivering both artistic excellence and excellent value through our work.

We are proud of our corporate partnerships and the relationships we have with individual patrons. The ongoing support of our Principal Partner, Emirates, is worthy of special mention – a wonderful partnership that is now in its 11th year; also our Premier Partner Credit Suisse, whose support enables so many of the outstanding gala presentations that we are able to bring to our audiences, as well as their support for our outstanding young Fellows.

The philanthropic support of our patrons has again played a key role in enabling us to achieve many of our artistic and education goals and I thank them all for this enlightened support on behalf of the whole Sydney Symphony community.

2012 was clearly a year of vibrant artistic health, strong audience connection and balanced financial outcome. Feedback from visiting conductors and soloists confirms the orchestra in exceptional form and I pay tribute to the extraordinary talent and skills of our players that make being in the audience such a pleasure and privilege.

In this, his fourth year as Principal Conductor and Artistic Advisor, we also celebrate the extraordinary and inspirational leadership of Vladimir Ashkenazy. He has brought so much to the Sydney Symphony over his tenure – we all owe him an enormous amount. An outstanding musician by any measure, we remain greatly honoured and invigorated by his boundless energy and enthusiasm for music-making; he is truly a unique and much loved leader.

Finally our thanks go to our Chairman, John Conde, and the Board of Directors for their wisdom and tireless support in helping the orchestra to achieve our ambitions. Their commitment, counsel and practical engagement contribute immeasurably to the success of the company.

Rory Jeffes Managing Director

WE ARE PROUD OF OUR CORPORATE PARTNERSHIPS AND THE RELATIONSHIPS WE HAVE WITH INDIVIDUAL PATRONS.

11FIVE YEAR PERFORMANCE SUMMARY

World and Australian Premieres

During 2012, the Sydney Symphony gave the first performances of the following works:

QIGANG CHEN You and Me For Solo Cello and Cello Ensemble

World premiere

BARRY CONYNGHAM Symphony World premiere

ROSS EDWARDS Full Moon Dances Saxophone Concerto – Revised, final version:

World premiere

ELLIOTT GYGER on air, dialogue for orchestra – 80th Anniversary Composition Prize - World premiere

LACHLAN SKIPWORTH nezasa For the Sydney Symphony Fellows – World

premiere

CARL VINE Piano Concerto No. 2 – World premiere

HENRI DUTILLEUX Mystère de l’instant

– Australian premiere

STEVEN MACKEY Stumble to Grace Piano Concerto – Australian premiere

In addition, the following works by Australian composers were programmed

at Sydney Symphony concerts:

WILLIAM BARTON and MATTHEW HINDSON Kalkadungu

BRETT DEAN Ariel’s Music

JIM COYLE Orchestra!

PHIL JAMESON Introduction and Rondo

ELENA KATS-CHERNIN Mater

PETER SCULTHORPE Sun Song

PAUL STANHOPE Groundswell

PAUL STANHOPE Jet-Stream

PAUL STANHOPE Spin Dance

PAUL TERRACINI Gegensätze

PAUL TERRACINI Pange Lingua

SELF GENERATED REVENUE AT 64% OF TOTAL INCOME.

0

10

20

30

RESERVES TO OPERATING EXPENSESReserves above mandatory limits.

Min 20% Required by Australia Council

Surplus

08 09 10 11 12

REVENUE BY CATEGORY

0

100

50

300

250

200

150

350

ATTENDANCESAttendance strong in Sydney & regional NSW.

Sydney Opera House

Metropolitan and NSW regions

('000)

08 09 10 11 12

PAID OCCUPANCYMain stage occupancy at 84%.

08 09 10 11 12

(%)

0

30

60

90

FUNDING INDEXATION vs CPIFunding indexation lags CPI rate.

CPI – All groupsGovernment Funding Index

09 10 11 12 13

(%)

3.5

2.5

1.5

OPERATING PROFIT

08 09 10 11 12

('00)

-10

10

5

0

-5

15

08 09 10 11 12

12,493

20,44319,543

22,121

24,54023,765

12,831 13,02813,259

13,539

Fund

ing

reve

nue

Self

gen

erat

ed r

even

ue

64%

36%

AUD ('000)

In 2012 I was proud to conduct the Sydney Symphony in its 80th anniversary season. We opened the year with the stirring music of Beethoven and his Symphony No.9 with a superb cast of soloists and Sydney Philharmonia Choirs.

Throughout the year we welcomed a wonderful array of guest artists including the Australian debut performances of violinist Anne-Sophie Mutter, the return of the wonderful cellist Jian Wang and pianist Garrick Ohlsson. To round out the year, we focussed on the music of Tchaikovsky including a concert version of The Queen of Spades, not heard in Australia for some 30 years.

International touring is a significant annual event in the orchestra’s calendar and in 2012 we toured China. Our tour was a major cultural highlight in a year which marked the 40th anniversary of diplomatic relations between Australia and China. It was an honour to present the Sydney Symphony to Chinese audiences under such a banner.

I am supremely excited to be surrounded by the talented musicians of the Sydney Symphony. It was a year of outstanding music-making by this ensemble of musicians who are amongst the very best in the world.

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Vladimir Ashkenazy Principal Conductor and Artistic Advisor

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COMMUNITYEDUCATION AND ARTIST DEVELOPMENT

“Music gives a soul to the universe, wings to the mind, flight to the imagination and life to everything. Education is teaching our children to desire the right things.” Plato

Initiative and innovation without compromise was the 2012 motto of the Education team. As more and more companies compete for a voice in the education market, many of them mirroring our programs in their own organisations, we need to remain vibrant and groundbreaking without compromising on quality or relevance.

The bulk of our reach remains with schools concerts and we delivered thirty schools concerts and a number of main stage performances in our Meet the Music and Discovery programs, reaching a vast number of children. These concerts are performed in the Sydney CBD and Homebush and regionally in the north this year in Grafton, Taree and Newcastle. Playerlink was in Albury, which drew a large pool of players from the Riverina and Canberra districts down to the border. As always, every education performance included at least one Australian work, and we were pleased to debut Orchestra! by Jim Coyle, especially written for our schools performances in 2012, and a number of works by Paul Stanhope which he also tailored to our concert needs. This meant we were able to have the composers in the room with the students as they heard this music played live for the very first time – a truly enriching experience for players and audience members.

The reach of our Professional Learning Program continues to expand as we for the first time presented workshops in Brisbane and Perth. Digital initiatives have been trialled in partnership with the Sydney Opera House. We simultaneously presented our Meet the Music workshop to four hundred people in the concert hall and sixty students in the Orange Regional Conservatorium. Later in the year we trialled a digital teacher training workshop beamed into eight remote public schools. Despite the success of these activities, it seems that nothing replaces the opportunity for teachers to get together and workshop collegially, so we will continue with our vast national program of professional learning in centres around Australia while we can afford it.

Having been heavily involved in the development of the Australian Curriculum in the Arts which will be implemented in all schools over the next few years, the education team have started tailoring their materials accordingly and were approached to provide teacher resources to support the rolling out of the curriculum around the country. The importance of training teachers was highlighted in a speech by Minister of School Education, Peter Garrett, who said he would be looking to organisations such as ours to continue the good work in equipping teachers with the materials and confidence to deliver quality music programs in their classrooms. This initiative remains a focal point of the education program as we move forward.

Clockwise from above: Sydney Symphony schools concert at the ABC, Ultimo; Sydney Symphony Sinfonia training orchestra and Sydney Conservatorium students at a repertoire reading at the ABC, Ultimo, with conductor Daniel Carter; Jessica Cottis, Assistant Conductor, on the China tour with the Sydney Symphony.

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Our regional outreach widened with the instigation of a community orchestra workshop incorporated into the regional tour program. Supporting the often isolated regional conservatoriums is a valuable way we can enrich the wider musical communities we pass through, and we are expanding the range of workshops for teachers and students we offer in these institutions. In 2012 we were delighted to meet the local members of the Upper Hunter Regional Conservatorium Orchestra and join their rehearsal, spending a number of hours making music.

2012 also marked Richard Gill’s twentieth anniversary as the Artistic Director of the Education Program. During his time with us Richard has been the inspiration behind the Sinfonia mentoring orchestra and the format of our schools program, and he initiated and presents the main stage Discovery Concert series. A work by Barry Conyngham was commissioned by the orchestra and conducted by Richard in the final Meet the Music concert of the year to celebrate this occasion. His vision for the program continues undaunted and his passion improving for music education for all continues to be his motivating catchcry.

Richard’s involvement with the orchestra has changed over the years as the Education Program has expanded, from being very hands on, and presenting many of the Schools programs, evolving into more of an advisory role. In 2012 he facilitated a training workshop for the Sinfonia Mentors, focussing on the goals and objectives of our developing artist program and consideration of best practice and role modelling. The

Sydney Symphony Sinfonia mentoring orchestra continues to deliver the majority of the education programs, and an increase to the stipend and travel assistance program resulted in a large pool of individuals auditioning for this amazing apprenticeship type opportunity from around the country. Richard also ran the Discovery concert series and the Sinfonietta composition project workshops which focussed upon the art of writing counterpoint.

The majority of the Fellowship program in 2012 continued to lie in a series of chamber music performances in and around the greater Sydney region. A new initiative was a visit to the South Coast Correctional Centre in Nowra, part of our week long residency at the Bundanon Trust property on the South Coast of NSW. The Fellows and Roger spent two mornings working with Maximum Security inmates at this new gaol, working with a group of 30 inmates and focussing upon working together and communicating both on and off the stage, with the ensemble as the model. They played excerpts of works by Mozart, Beethoven and Prokofiev and all involved found it quite a life-changing experience.

The Fellows performed at the launch event for the Sydney Symphony Vanguard initiative. Here they mesmerised the audience playing the Martin� Nonet with a break dancer posing as the conductor. This extraordinary event can be viewed on the Sydney Symphony YouTube channel. Sydney Symphony Vanguard is a natural fit for the Fellows, which introduced these, the orchestra’s youngest performers, to some of the young professional supporters of the orchestra.

Perhaps the most exciting initiative for 2013 was the relationship formed with the Xinghai Conservatorium of Music in Guangzhou, China. This relatively young conservatorium has a student population of almost four thousand and the administrators have welcomed our overtures to work with them on a regular basis. October saw the principal players of the orchestra working with the members of the student orchestra and other instrumentalists, a rehearsal under Mr Ashkenazy’s baton whilst on the China Tour, and a later master class with student soloists and a chamber ensemble in December presented in front of the Hon Simon Crean, who was visiting as part of the celebration of forty years of China and Australia trade relations. We look forward to a reciprocal visit from students and teachers of the Xinghai Conservatorium in 2013.

The breadth and reach of the education program of the Sydney Symphony continues to be unparalleled in this country. We offer a unique apprenticeship to the next generation of performers and composers; and deliver a quality education package of classroom music learning culminating in a concert experience which is second to none. The vision and enlightenment of our corporate and individual sponsors and donors, the orchestra’s desire to share their knowledge and nurture emerging artists, and hours of hard work from a selfless body of volunteers and staff combine to create something unique with an international reputation for excellence.

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China tourAs part of celebrations marking the 40th anniversary of diplomatic relations between Australia and China, the Sydney Symphony embarked on a six-city tour of China in October 2012.

Under the direction of Sydney Symphony Principal Conductor and Artistic Advisor, Mr Vladimir Ashkenazy, the musicians performed in the Chinese cities of Tianjin, Wuhan, Qingdao, Shanghai at the Oriental Arts Centre, Guangzhou at the city’s newly built opera house and in Beijing at the famous National Centre for the Performing Arts – commonly referred to as ‘The Egg’.

The China Tour was another demonstration of the orchestra’s position as one of Australia’s leading cultural institutions. On tour, the Sydney Symphony performed Shostakovich’s Symphony No. 10, Beethoven’s Symphony No. 4 and was joined on stage in Tianjin, Beijing, Wuhan and Shanghai by one of the world’s most acclaimed cellists, Jian Wang, performing the Dvorák Cello Concerto.

The orchestra also premiered a newly commissioned arrangement for cello ensemble of a piece by Chinese composer Qigang Chen titled You and Me. In addition to concert performances, the Sydney Symphony undertook a range of outreach activities in the city of Guangzhou in partnership with the Guangzhou Opera House and the Xinghai Conservatory of Music (XCM), the only higher music education institution in Southern China. Whilst in Guangzhou, a number of Sydney Symphony musicians plus cellist Jian Wang led instrument tutorials for students in orchestral technique and tradition. The students then took part in a rehearsal conducted by Vladimir Ashkenazy.

These were pilot phase activities in the lead up to the development of a long-term program of masterclasses, exchanges, orchestral workshops, commissions and tour performances which will be further enhanced and facilitated through digital technology. These activities will be conducted under the umbrella of the Memorandums of Understanding with both the Xinghai Conservatory, Guangzhou and The National

Centre for the Performing Arts, Beijing completed in the course of 2012. These relationships will also set the framework for the orchestra to make a significant contribution to Australian engagement in the Asian Century through culture and people-to-people diplomacy.

The Sydney Symphony’s 2012 China Tour was made possible thanks to the support of the NSW Government through the Arts NSW, the Australian Government through the Australia Council, and corporate organisations. Touring sponsors played an integral role, with long-term partners Xstrata Australia and Tianda Australia using the concerts to showcase Australian excellence and as an opportunity to develop closer commercial relationships. Assistance was also provided by the Australia China Council and government agencies.

COMMUNITYTOURING

THE CHINA TOUR WAS ANOTHER DEMONSTRATION OF THE ORCHESTRA’S POSITION AS ONE OF AUSTRALIA’S LEADING CULTURAL INSTITUTIONS.

THE TOUR PROGRAM SCHEDULE WAS AS FOLLOWS:

W E D N E S D A Y 1 7 O C T O B E R

TIANJIN, TIANJIN GRAND THEATRE

F R I D A Y 1 9 O C T O B E R BEIJING, NATIONAL CENTRE FOR THE

PERFORMING ARTSS U N D A Y 2 1 O C T O B E R

GUANGZHOU, GUANGZHOU

OPERA HOUSET U E S D A Y 2 3 O C T O B E R

WUHAN, WUHAN QINTAI CONCERT HALL

W E D N E S D A Y 2 4 O C T O B E R

SHANGHAI, ORIENTAL ARTS CENTREF R I D A Y 2 6 O C T O B E R

QINGDAO, QINGDAO GRAND THEATRE

Community performances for health and wellbeingThe Sydney Symphony continued its award-winning music4health program, providing performances to patients in aged care centres and working with people with disabilities in various institutions across the Sydney metropolitan area. A practical manifestation of the health industry’s recognition of the therapeutic power of music, the program provides entertainment and a deep level of engagement for people with health, aged care and disability needs who have little or no access to live music.

In 2012, four music4health visits were made to a range of audiences. As part of the initiative of the Australian Music Therapy Association and ‘Music-Play for Life’ (a program of the Music Council of Australia), a group of musicians performed at the Montefiore aged care facility in Randwick for a group of 150 residents. The success of the event saw the Sydney Symphony perform an additional recital at Montefiore’s Hunters Hill campus.

In conjunction with the Autism Advisory and Support Service, musicians engaged with 400 children with autism, cerebral palsy and Down syndrome as well as their carers and families, in a concert that saw lots of children take to the stage and enthusiastically perform alongside our musicians.

Sydney Symphony also visited the Powerhouse Museum, performing with the in-house musicians of ThinkSpace, the Museum’s digital learning centre that provides music workshops to adults with disabilities. The performance was part of the NSW Government’s month-long campaign ‘Don’t DIS my ABILITY’.

Outdoor concertsSymphony in the Domain is one of Sydney’s landmark free events, traditionally ending with Tchaikovsky’s 1812 Overture, complete with cannons and fireworks. In 2012 the concert attracted an audience of 35,000. The Sydney Symphony also performed at Parramatta Park to an audience of 4,500 people.

WebcastingIn 2012, the Sydney Symphony’s webcasting activity continued, in collaboration with Telstra BigPond and ABC Classic FM, with six concerts being streamed live and made available free on demand through BigPond TV. These can be viewed at http://bigpondmusic.com/sydneysymphony and are also available on the SSO App.

Webcasting is an important addition to our outreach both nationally and internationally, and is of particular benefit to those less mobile, and to people in regional or remote areas of Australia who want to experience an orchestral performance but are unable to attend in person.

10 MARCH Free outdoor concert, Parramatta Park

10 MARCH Fellowship concert, Goulburn

11 MARCH Fellowship concert, Berry

13 APRIL Sydney Symphony, Mozart, Orange

26 APRIL Fellowship, School Concerts, Nowra

27 APRIL Fellowship concert, Nowra

29 MAY Sydney Symphony/Sinfonia Regional Tour, Grafton

30 MAY Sydney Symphony/Sinfonia School Concerts, Grafton

30 MAY Sydney Symphony/Sinfonia Regional Tour, Taree

31 MAY Sydney Symphony/Sinfonia School Concerts, Taree

1 JUNE Sydney Symphony/Sinfonia Regional Tour, Newcastle School Concerts, Newcastle

2 JUNE Sydney Symphony/Sinfonia Community Orchestra Workshop, Muswellbrook/Singleton

15-17 JUNE Playerlink, Albury

30 AUGUST Brass Tour, Armidale

31 AUGUST Brass Tour, Port Macquarie

1 SEPTEMBER Brass Tour, Grafton

1 SEPTEMBER Sydney Symphony, Mozart Chatswood

Regional and Interstate Touring SummaryThe following table summarises all regional and interstate activity conducted by the Sydney Symphony in 2012.

COMMUNITYACCESS

“THE CONTINUAL AND AUDIBLE CHEERING OF THE CHILDREN SHOWED HOW MUSIC CAN CUT THROUGH THEIR CONDITION. THE MUSIC’S ENCHANTING QUALITIES BROUGHT COUNTLESS SMILES TO [THEIR] FACES...IT WAS AN INSPIRING DAY.”Mr Nick Lalich MP, Member for Cabramatta.

Below: Violinist Sun Yi, originally from Shanghai, rehearses with the Sydney Symphony in his home town

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Philanthropy ReportIn 2012, patrons of the Sydney Symphony facilitated many special initiatives for the orchestra.

Gagliano & PressendaThrough a series of donations to the Instrument Fund, the orchestra was able to acquire two outstanding violins to support the quality of sound in the string section. These were a GF Pressenda violin made in Turin in 1845 and a Gagliano violin made in Naples in 1769. The Pressenda is being played by Marianne Broadfoot and the Gagliano by Associate Concertmaster, Sun Yi. These new instruments, the ninth and tenth instruments purchased by the Sydney Symphony, form a collection that is capable of producing great beauty and richness of sound – creating a string section that is far greater than the sum of its parts. The Instrument Fund, which is funded entirely by donors, ensures these instruments remain on the concert platform where they belong, and at the same time strengthens the financial position of the Sydney Symphony.

Joan Mackenzie Memorial ScholarshipIn May 2012, the Sydney Symphony community was saddened by the death of Mrs Joan Mackenzie – one of its greatest advocates and life-long friends. Through a generous bequest left to the orchestra by Joan and the matching of that gift by Joan’s nephew Gavin Solomon and his wife Catherine Solomon,

the orchestra was honoured to inaugurate the Joan Mackenzie Memorial Scholarship. This is an annual award covering all travel expenses and private lessons for an outstanding applicant to the SSO’s Sinfonia mentoring orchestra.

Sydney Symphony VanguardIn March 2012, the Sydney Symphony Vanguard was launched at the Sydney Opera House with great fanfare and a raised eyebrow or two! The brainchild of a group of gen-x Sydney movers and shakers, Vanguard is a membership program, professional network, social group and succession plan – all in one. Responding to the needs of its members, the steering group has created an opportunity to experience the excitement of live classical music performances – in a shorter format, usually with a twist – and with the great benefit of meeting and getting to know members of the SSO. With an expanding member base and growing awareness and interest in the incredible benefits the orchestra returns to its communities, Vanguard is about harnessing energy and passion and demonstrating the impact a member can make by becoming a donor of this flagship cultural institution.

Maestro’s CircleThe Maestro’s Circle continued to support the special projects of Mr Vladamir Ashkenazy which included special guest performances from internationally acclaimed artists. In 2012 Sydney Symphony audiences were enthralled by the March performances

with visiting guest violinist, Anne-Sophie Mutter. Visiting Australia for the first time, Ms Mutter joked with media that she now could not understand ‘what took me so long!’ Her performances of the Beethoven Violin Concerto were a highlight of a stunning year celebrating the orchestra’s 80th Anniversary. What is not well known is that Anne-Sophie’s concerts in Sydney were made possible by the dedicated support of a group of patrons – the Maestro’s Circle. Since 2009, members of the Maestro’s Circle have contributed more than $2 million to support the great artistic initiatives of the ‘Ashkenazy era’. We owe the members a great deal of thanks – for these, without doubt, were performances that will be remembered for a lifetime.

Giving BackIn 2012, the Sydney Symphony was privileged to be able to support the work of 54 fellow not-for-profit organisations. By providing gift vouchers to support fundraising initiatives in the arts, social welfare, health and education sectors, the Orchestra contributed $12,000 of in-kind assistance to these important organisations.

VolunteersIn 2012, Sydney Symphony volunteers contributed 361 hours of work in the areas of education, marketing, box office, philanthropy and administration. This represents a cost saving of approximately $16,000 to the Orchestra, and the Sydney Symphony offers its grateful thanks to all volunteers for their generous contributions.

SUPPORTERS – DONORS & SPONSORS

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Geoff Ainsworth am & Vicki Ainsworth

Tom Breen & Rachael Kohn

John C Conde ao Chairman

In memory of Hetty & Egon Gordon

Andrew Kaldor am & Renata Kaldor ao

Roslyn Packer ao

Penelope Seidler am

Mr Fred Street am & Mrs Dorothy Street

Peter Weiss ao Founding President & Doris Weiss

Westfield Group

Brian & Rosemary White

Ray Wilson oam in memory of James Agapitos oam

SYDNEY SYMPHONY MAESTRO’S CIRCLE SYDNEY SYMPHONY LEADERSHIP ENSEMBLE

Alan Fang, Chairman, Tianda Group

Tony Grierson, Braithwaite Steiner Pretty

Insurance Australia Group

Stephen Johns, Chairman, Leighton Holdings, & Michele Johns

Andrew Kaldor am, Chairman, Pelikan Artline

Lynn Kraus, Sydney Office Managing Partner, Ernst & Young

David Livingstone, CEO, Credit Suisse Australia

Macquarie Group Foundation

John Morschel, Chairman, ANZ

Shell Australia Pty Ltd

James Stevens, CEO, Roses Only

ENERGY & PASSION

DIRECTORS' CHAIRS

Roger Benedict Principal ViolaKim Williams AM & Catherine Dovey Chair

Lawrence DobellPrincipal ClarinetAnne Arcus & Terrey Arcus AM Chair

Diana DohertyPrincipal Oboe Andrew Kaldor AM & Renata Kaldor AO Chair

Richard Gill oamArtistic Director EducationSandra & Paul Salteri Chair

Jane HazelwoodViolaVeolia Environmental Services Chair

Catherine Hewgill Principal CelloThe Hon. Justice AJ & Mrs & Fran Meagher Chair

Robert JohnsonPrincipal HornJames & Leonie Furber Chair

Elizabeth NevilleCelloRuth & Bob Magid Chair

Colin PiperPercussionJustice Jane Matthews AO Chair

Emma Sholl Associate Principal FluteRobert & Janet Constable Chair

For information about the Directors' Chairs program, please call (02) 8215 4619.

Nacho Pop with the Sydney Symphony Fellows at the Sydney Symphony Vanguard launch at the Sydney Opera House

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PLATINUM$20,000+Brian Abel

Geoff Ainsworth AM & Vicki Ainsworth

Robert Albert AO & Elizabeth Albert

Terrey Arcus AM & Anne Arcus

Tom Breen & Rachael Kohn

Sandra & Neil Burns

Mr John C Conde AO

Robert & Janet Constable

Michael Crouch AO & Shanny Crouch

James & Leonie Furber

Dr Bruno & Mrs Rhonda Giuffre

In memory of Hetty & Egon Gordon

Andrew Kaldor AM & Renata Kaldor AO

D & I Kallinikos

James N. Kirby Foundation

The late Joan MacKenzie

Mrs Roslyn Packer AO

Paul & Sandra Salteri

G & C Solomon in memory of Joan MacKenzie

Mrs W Stening

Mr Fred Street AM & Mrs Dorothy Street

Peter William Weiss AO & Doris Weiss

Mr Brian & Mrs Rosemary White

Kim Williams AM & Catherine Dovey

Ray Wilson OAM in memory of James Agapitos OAM

GOLD$10,000 – $19,999 Stephen J Bell

Alan & Christine Bishop

Ian & Jennifer Burton

Copyright Agency Cultural Fund

Edward Federman

Nora Goodridge

Mr Ross Grant

The Estate of the late Miss Ida Gugger

Helen Lynch AM & Helen Bauer

Ruth & Bob Magid

Justice Jane Mathews AO

The Hon Justice A J Meagher & Mrs Fran Meagher

Mrs T Merewether OAM

Mr B G O'Conor

Mrs Penelope Seidler AM

Henry & Ruth Weinberg

June & Alan Woods Family Bequest

SILVER$5,000 – $9,999Doug & Alison Battersby

Mr Robert Brakspear

Mr David & Mrs Halina Brett

Mr Robert & Mrs L Alison Carr

Howard Connors

Mrs Joyce Sproat & Mrs Janet Cooke

Ian Dickson & Reg Holloway

Colin Goldschmidt

The Greatorex Foundation Pty Ltd

Mr Rory Jeffes

Mr Ervin Katz

The Estate of the late Patricia Mary Lance

William McIlrath Charitable Foundation

Timothy & Eva Pascoe

Rodney Rosenblum AM & Sylvia Rosenblum

Manfred & Linda Salamon

Michael & Mary Whelan Trust

Caroline Wilkinson

Anonymous (2)

BRONZE$2,500 – $4,999Bob & Julie Clampett

Ewen Crouch AM

& Catherine Crouch

The Hon. Ashley Dawson-Damer

Stephen Freiberg & Donald Campbell

Firehold Pty Ltd

Vic & Katie French

Michael & Anna Joel

Gary Linnane

R & S Maple-Brown

Mora Maxwell

Matthew McInnes

J A McKernan

James & Elsie Moore

Drs Keith & Eileen Ong

In memory of Sandra Paul Pottinger

In memory of H St P Scarlett

David & Isabel Smithers

Marliese & Georges Teitler

Mr & Mrs Yim

Anonymous (1)

BRONZE$1,000 – $2,499Mrs Antoinette Albert

Andrew Andersons AO

Mr Henri W Aram OAM

Richard & Christine Banks

David Barnes

Nicole Berger

Mark Bethwaite AM & Carolyn Bethwaite

Allan & Julie Bligh

Dr & Mrs Hannes Boshoff

Colin Draper & Mary Jane Brodribb

Lenore P Buckle

M Bulmer

In memory of R W Burley

Debby Cramer & Bill Caukill

Constable Estate Vineyards

Mr John Cunningham SCM & Mrs Margaret Cunningham

Greta Davis

Lisa & Miro Davis

Matthew Delasey

Mr & Mrs Grant Dixon

Mrs Margaret Epps

Mr Ian Fenwicke & Prof. Neville Wills

Mr James Graham AM & Mrs Helen Graham

Warren Green

Akiko Gregory

Edward & Deborah Griffin

Mr Richard Griffin AM

In memory of the late Dora & Oscar Grynberg

Janette Hamilton

Mrs Jennifer Hershon

Michelle Hilton

The Hon. David Hunt AO QC & Mrs Margaret Hunt

Mr Andrew C Patterson

Piatti Holdings Pty Ltd

Andy & Deirdre Plummer

Robin Potter

Ernest & Judith Rapee

Kenneth R Reed

Patricia H Reid Endowment Pty Ltd

Dr John Roarty OAM in memory of Mrs June Roarty

Juliana Schaeffer

In memory of Lorna Wright

Judge David S Shillington

Dr Agnes E Sinclair

Catherine Stephen

John & Alix Sullivan

The Hon. Brian Sully QC

Mildred Teitler

John E Tuckey

Mrs M Turkington

In memory of Joan & Rupert Vallentine

J F & A van Ogtrop

Dr Alla Waldman

Mr Robert & Mrs Rosemary Walsh

Ann & Brooks Wilson AM

Dr Richard Wing

Dr John Yu

Anonymous (10)

Dr & Mrs Michael Hunter

In Memory of Bernard M H Khaw

BRONZE$1,000 – $2,499Mr Justin Lam

Mr Peter Lazar AM

Prof. Winston Liauw

Carolyn & Peter Lowry OAM

Dr David Luis

Macquarie Group Foundation

Renee Markovic

Deidre & Kevin McCann

Ian & Pam McGaw

Ms Jackie O'Brien

BRONZE$500 – $999Mrs Lenore Adamson

Mr & Mrs Garry S Ash

Dr Francis J Augustus

Barlow Cleaning Pty Ltd

Beauty Point Retirement Resort

Mrs & Dr Margaret Bell

Mrs Jan Biber

Minnie Biggs

Dr Anthony Bookallil

Jan Bowen

R D & L M Broadfoot

Arnaldo Buch

Pat & Jenny Burnett

Ita Buttrose AO OBE

Hon. Justice J C & Mrs Campbell

Dr Rebecca Chin

Mrs Sarah Chissick

R A & M J Clarke

Mr & Mrs Coates

Coffs Airport Security Car Park

Mr B & Mrs M Coles

Mrs Joan Connery OAM

Chris J Kitching

Anna-Lisa Klettenberg

Mr Luigi Lamprati

Dr & Mrs Leo Leader

Margaret Lederman

Ms Irene Lee

Erna & Gerry Levy AM

Sydney & Airdrie Lloyd

Mrs A Lohan

Panee Low

Melvyn Madigan

Alan & Joy Martin

Philip & Catherine McClelland

Mrs Toshiko Meric

Ms Irene Miller & Ms Kim Harding

P J Miller

Mr David Mills

Kenneth N Mitchell

Ms Margaret Moore OAM & Dr Paul Hutchins AM

Chris Morgan-Hunn

Mrs Milja Morris

A Nhan

BRONZE$500 – $999Mr David Cross

Philip Diment AM & Bill Zafiropoulos

Elizabeth Donati

The Dowe Family

Malcolm Ellis & Erin O'Neill

In memory of Peter Everett

John Favaloro

Mr Tom Francis

Mr John Gaden

Vivienne Goldschmidt

Clive & Jenny Goodwin

Mr Tony Grierson

Mr Roger Henning

Harry & Meg Herbert

Sue Hewitt

Dorothy Hoddinott AO

Mr Joerg Hofmann

Mrs Kimberley Holden

Mr Gregory Hosking

Bill & Pam Hughes

Niki Kallenberger

Mrs Margaret Keogh

Dr Henry Kilham

Dr Heng Tey & Mrs Cilla Tey

Mrs Alma Toohey & Mr Edward Spicer

Kevin Troy

Gillian Turner & Rob Bishop

Prof. Gordon E Wall

Ronald Walledge

Mrs Margaret Wallis

Ms Elizabeth Wilkinson

A Willmers & R Pal

Audrey & Michael Wilson

Dr Peter Wong & Mrs Emmy K Wong

Geoff Wood & Melissa Waites

Mr Graham North

Dr Mike O'Connor AM

Mr R A Oppen

Origin Foundation

Dr A J Palmer

Dr Kevin Pedemont

Dr Natalie E Pelham

Michael Quailey

Renaissance Tours

Anna Ro

Lesley & Andrew Rosenberg

Mrs Pamela Sayers

Garry Scarf & Morgie Blaxill

Caroline Sharpen

Peter & Virginia Shaw

Mrs Diane Shteinman AM

Ms Stephanie Smee

Ms Tatiana Sokolova

Doug & Judy Sotheren

Mrs Judith Southam

Mrs Karin Spiegel-Keighley

Margaret Suthers

Norman & Lydia Taylor

Glenn & Everly Wyss

Mrs Robin Yabsley

Anonymous (22)

DONORS & SPONSORS

SYMPHONY

AUSTRALIAS E R V I C E S

2MBS FM 102.5 Fine Music Station

Television - Audio

PRINCIPAL PARTNER

COMMUNITY PARTNER

EDUCATION PARTNER

GOLD PARTNERS

SILVER PARTNERS

REGIONAL TOUR PARTNERS

MARKETING PARTNER

PREMIER PARTNER

GOVERNMENT PARTNERS

PLATINUM PARTNERS

MAJOR PARTNERS

executive search

THE SYDNEY SYMPHONY APPLAUDS THE LEADERSHIP ROLE OUR PARTNERS PLAY AND THEIR COMMITMENT TO EXCELLENCE, INNOVATION AND CREATIVITY.

www.sydneysymphony.com

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Sydney Symphony Limited

AND ITS CONTROLLED ENTITIES

A.B.N. 50 121 561 528

ANNUAL FINANCIAL REPORT

31 December 2012

Sydney Symphony Limited A.B.N. 50 121 561 528

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Contents Page Directors Report 2

Corporate Governance Statement 8

Auditor’s Independence Declaration 10

Income Statement 11

Statement of Comprehensive Income 12

Balance Sheet

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Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Financial Statements 16

Directors’ Declaration 31

Independent Audit Report 32

Sydney Symphony Limited A.B.N. 50 121 561 521

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Directors Report The Directors present their report together with the financial report of Sydney Symphony Limited, the Parent Entity and its controlled entity Sydney Symphony Orchestra Holdings Pty Limited (the Group) for the year ended to 31 December 2012. Directors The Directors in office, at any time during or since the financial period until the date of this report, are: John Conde AO (Chairman)

Rory Jeffes (Managing Director) Terrey Arcus AM Ewen Crouch AM

Ross Grant Jennifer Hoy

Andrew Kaldor AM Irene Lee David Livingstone Goetz Richter

David Smithers AM Resigned 7th May 2012 Company Secretary John Horn Qualification of Directors Director Experience and Qualifications John Conde AO (Chairman)

BSc, BE (Hons), Syd; MBA (Dist), Harv. Chairman of BUPA Australia Pty Limited Deputy Chairman of Whitehaven Coal Limited President of The Commonwealth Remuneration Tribunal Chairman Destination New South Wales and associated entities Director of DEXUS Property Company Director of AFC Asian Cup (2015) Chairman of the Australian Olympic Committee (NSW) Fundraising Committee Board Member of the McGrath Foundation

Rory Jeffes (Managing Director)

MA, Oxon Director Symphony Services Australia Limited

Terrey Arcus AM

BSc, BE (Hons), Syd; MBA (Dist), Harv. Director of Port Jackson Partners Limited

Ewen Crouch AM BEc (Hons) LLB, SYD, FAICD Director, BlueScope Steel Limited Director, Westpac Banking Corporation Chairman, Mission Australia Alternate Director, Working Links (Employment) Limited Consultant, Allens (formerly Allens Partner 1988-2013 and Chairman of Partners 2009-2012)

Ross Grant

BSc (Hons), MCom (Hons), MBA Chairman of Grant Samuel Group Director of The Centre for Independent Studies Director of Australian Wildlife Conservancy Director of Australian Mitochondrial Disease Foundation Director of Waratahs Rugby

Jennifer Hoy MMus (P); BMus Hons (P) Syd; Dip Law (LPAB) Violinist - Sydney Symphony Orchestra

Andrew Kaldor AM BEc (Hons) Syd; MBA, Wharton Chairman of Pelikan Artline Pty Limited Chairman of Supertex Industries

Sydney Symphony Limited A.B.N. 50 121 561 521

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Irene Lee

BA, Smith College, USA Barrister at Law, Inns of Court, School of Law, Gray's Inn, UK Non-Executive Director of QBE Insurance Company Independent Non-Executive Director, Cathay Pacific Airways Ltd Chairman of Hysan Development Company Ltd Member, Advisory Council, J.P. Morgan Independent, Non-Executive Director, Noble Group Limited Independent Non-Executive Director, CLP Holdings

David Livingstone

BEc (Hons) Macq; MA Cantab Managing Director, Credit Suisse

Dr. Goetz Richter

Kstl, Staatsdiplom (Munich), BA (Hons I), Syd; PhD, Syd Violinist Associate Professor & Chair Strings, Sydney Conservatorium President, Sydney Schubert Society Inc. Artistic Director, Kendall National Violin Competition President, Live Music Sydney

David Smithers AM

FCA Director of Genea Limited (formally Sydney IVF Limited) Director of Country Education Foundation Pty Limited Director of James N Kirby Foundation Limited

Principal Activities The principal activity of the Group was the performance of symphonic music. There were no significant changes in the nature of the activities of the Group during the year. Strategy The Group’s vision is to occupy the position of being a pre-eminent orchestra across the Asia-Pacific region within twenty years. This vision was updated during the year in conjunction with the formulation of a new five year strategic plan which was in transition in 2012. The strategy will be achieved through a combination of outstanding concert performances domestically and abroad, internationally-recognised education and artist development programs, and unparalleled accessibility and reach through the SSO’s competitive advantage in quality of performance, artistic vibrancy and digital dissemination and content production. Achievements against key strategic priorities in the 2012 financial year are outlined below; • Artistic Leadership

The Principal Conductor and Artistic Advisor between 2009 and 2013 is Vladimir Ashkenazy. Vladimir Ashkenazy has led the orchestra in numerous important projects in the 80th anniversary year of the orchestra. The orchestra has announced the appointment of David Robertson as Chief Conductor and Artistic Director designate for five years from the 2014 season.

• Emerging Artists The Group continues to support emerging artists through the promotion of young talented performers through vehicles such as the Sydney Symphony Assistant Conductor programme, Young and Emerging artist mainstage performances, Sydney Symphony Fellowship programme, Sydney Sinfonia training orchestra and the Sydney Symphony Sinfonietta programme for young composers.

• International Touring

The Group plans to continue with its programme of international touring to raise the profile and experience of the orchestra. In October 2012, the Orchestra performed to excellent reviews and full houses in China, as part of a series of cultural events to mark the 40th anniversary of diplomatic relations between Australia and the People’s Republic of China.

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• International Presence

The Group plans to increase its presence in Asia through consolidated touring, education, and outreach activities. In 2012 the priority was to align domestic interests in Australia and develop relationships that would allow the group to progress the strategy in 2013 and onwards. The Group was successful in signing a Memorandum of Understanding with both the Xinghai Conservatory, Guangzhou and The National Centre for the Performing Arts, Beijing in 2012. These relationships will set the framework for the orchestra to make a significant contribution to Australian engagement in the Asian Century through culture and people-to-people diplomacy.

• Orchestral Instruments To improve the quality of sound produced by the orchestra, the Group has an Instrument Reserve which continues to acquire fine instruments. The Group also supports musicians who wish to acquire fine instruments independently. Instrument Reserve funds were utilised to acquire three significant instruments, one cello and two violins, during the financial year.

• Acoustic Improvement Sydney Opera House The Group is the resident orchestra at the Sydney Opera House and is in regular consultation with the Sydney Opera House to improve the acoustics in the main concert hall.

• Education The Group has an award winning education programme and plans to continue with on line delivery and content innovations to increase the reach and impact of this programme throughout Sydney and regional NSW.

• Regional Touring The Group tours annually to regional NSW to promote live symphonic music to the rural communities of NSW through a series of classical and education concerts.

In addition to the above priorities, the Group continues with its strategic endeavours in respect of ongoing financial viability having significantly exceeded financial operating targets in 2012.

Process for Self Assessment of Artistic Quality There is an approved process in place for self-assessment of artistic quality and the Board confirms that;

a) the nature and the outcomes of this process have been discussed during the 2012 financial year; b) these outcomes have informed the future planning of the group; and c) the self assessment process in place draws on a variety of verifiable internal and external sources

primarily: - The Orchestra’s Artistic Committee. - Listening panel sessions with musicians and administration. - Peer Review panel c omprised of ex pert ac ademics, c ritics and c lassical m usic

industry professionals. - Assessment by Principal Conductor and Artistic Advisor. - Assessment by visiting conductors and soloists. - Assessment by ABC recording producers. - Review through national and international press coverage. - Audience feedback, through surveys and other communication channels.

Reserves Policy The Group maintains a number of reserves as outlined in the financial statements and related notes to the financial statements. The Group, by virtue of the Tripartite Agreement between the controlled entity, the Australia Council and Arts NSW, is mandated to use reasonable endeavours to maintain and improve its overall financial viability, having regard to both reserves and annual results. The Group plans to maintain reserves at the minimum level of 20% of the group’s annual costs. At 31st December 2012, the level of reserves totalled 28% of the Groups’ annual costs (2011 - 27%).

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5

Key Performance Indicators The Group’s business plan outlines the objectives and strategy for the Group and dictates the key performance indicators (KPIs) that the Group monitors, targets and measures. A summary of the 2012 KPI targets and achievements is outlined below; KPI Definition Target Results Orchestra Artistic Performance

Analysis and compilation of the results of the Artistic Self Assessment Process.

Critical Rating greater than the 80th percentile during the year.

Achieved with overall performances in Australia and ChinaTour locations assessed as exceeding expectations.

Education Programme Development

Develop and enhance the Sydney Symphony’s world class education programme.

Complete and deliver on line kits to NSW school educators and enhance whiteboard kits.

Completed with online kits well received by educators.

Artform Development - Australian Compositions

Feature contemporary Australian composers and promote new commissions.

Achieve 2012 Australian content as per season programme and continue commission work for Australian premieres.

Australian content delivered as per programme. Three commissions have been completed in 2012 and a further three donor funded co-commissions are underway with leading Australian composers.

Audience Development - Occupancy -Online Development and New Media

Occupancy levels for mainstage core programs. Online web content and services.

80% average occupancy target. Enhance content and improve services.

84% occupancy levels achieved for 2012. A new website was constructed and launched in August 2012 with extended features and simplified sales and subscription processes.

Financial Stability - Reserves

Reserves to total group expenses.

Meet or exceed 20%. Exceeded - actual reserves at 28% of group expenses.

Financial Stability - Operating result

Net operating result before reserve activities.

Meet or exceed annual budget.

Exceeded.

Review and Results of Operations The Group achieved a net operating result for the year of $361,708 (2011: $1,022,396) after including Maestro Circle donations of $230,000 (2011: $256,000). In the Group’s 80th anniversary season, a number of exclusive gala concerts were performed to appreciative audiences, including a sold-out concert with leading international soloist, Anne-Sophie Mutter. The net operating result for the year was however impacted by inflationary pressures on costs exceeding the indexation levels on Government funding. The Group also increased its investment in the China Tour in line with the new strategy to increase the Groups presence and relationships in the Asian region. Instrument reserve donations received during the year were $63,905 (2011: $500,000) and accordingly the net profit for the 2012 financial year was $425,613 (2011: $1,522,396). The Group presented the Sydney Symphony, the Sydney Sinfonia and the Sydney Symphony Fellows in performances to a total audience of more than 300,000 people during the year ended 31 December 2012 in Sydney, outer metropolitan and regional NSW performing arts centres. In October 2012, the Company continued its international touring programme with a successful tour to China, achieving critical acclaim for its performances. Principal Conductor and Artistic Advisor, Mr Vladimir Ashkenazy, was conductor on the tour with guest soloist, Jian Wang.

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State of affairs Other than as mentioned elsewhere, in the opinion of the Directors, there were no other significant changes in the underlying state of affairs of the Group that occurred during the year. Likely developments The Group has scheduled performances of symphonic and other orchestral music, which it will continue to present during the next financial year. The Group’s continuing viability is dependent on maintaining its current level of funding, especially government funding. The Group has the intention to continue with international touring in 2013 and has recently announced a tour to Russia and Europe. Dividends No dividends have been paid by the Group. Events subsequent to balance date No events have occurred subsequent to balance date and up to the date of this report that materially affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years. Environmental regulations and performance The Group is not subject to any particular or significant environmental regulation. Directors’ Meetings The number of meetings of the Board of Directors and of the Board Committees during the financial year are set out in the table as follows;

Meeting Type Board Finance Audit & Risk

Nomination & Remuneration

Number of Meetings Attended (A)

Number of Meetings Eligible (B) A B A B A B

John Conde AO - Note 1 6 6 - - 2 2

Rory Jeffes – Note 1 5 6 4 - 2 -

Terrey Arcus AM 4 6 - - 2 2

Ewen Crouch AM 6 6 4 4 - -

Ross Grant 5 6 1 2 - -

Jennifer Hoy 6 6 - - - -

Andrew Kaldor AM 6 6 4 4 - -

Irene Lee 5 6 - - - -

Goetz Richter 6 6 - - 2 2

David Livingstone 6 6 4 4 - - David Smithers AM 2 2 2 2 - -

Note 1- Both the Chairman of the Board and the Managing Director and the Director of Finance attend meetings of the Finance Audit and Risk Committee by invitation. All other directors who are not committee members and the external auditors may attend the meetings of the Finance Audit and Risk Committee at their discretion.

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Directors’ Remuneration Directors are not paid any fees for their services as Directors of the Group. Details of directors’ remuneration are disclosed in Note 21. Indemnification and insurance of Officers Information on the indemnification and insurance of officers can be found in Note 25. Auditor’s Independence Declaration The Auditor’s Independence Declaration forms part of the Directors Report, and is set out on page 10. Signed in accordance with a resolution of the Directors:

John Conde AO Chairman Sydney, dated 28th March 2013

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Corporate Governance Statement

This statement outlines the Group’s corporate governance practices and addresses the Essential Governance Practice Principles published and monitored by the Australia Council for the Arts. These principles are based on the recommendations published by the ASX Corporate Governance Council. As at 31 December 2012, the Group has achieved substantial compliance with the recommendations as outlined below;

Principle 1: Lay Solid Foundations for Management and Oversight The Group’s Governance Framework incorporates Board and Board Committee Charters and a Code of Conduct. There is also a formal statement of delegated authority to management and an induction procedure for new directors.

A Board agenda is set at the start of the year and includes meetings for the Board to determine group strategy, five-year business plans, and the programme for the following season, the budget for the following year and the Group’s annual risk review.

Principle 2: Structure the Board to Add Value The Board includes Directors with a range of skills including finance and accounting, business (both public companies and private business) and commercial experience, public affairs, law, performance of orchestral music and music education. This experience is set out in their biographies.

The Board is supported by a Finance, Audit and Risk Committee (refer Principle 5) and a Nomination and Remuneration Committee, each of which has an individual charter setting out its responsibilities and operating principles.

The Nomination and Remuneration Committee has a number of responsibilities including reviewing, evaluating and making recommendations to the Board with regard to the election and re-election of Members, Directors and Sydney Symphony Councillors, and executive remuneration.

The Nomination and Remuneration Committee also advises the Board on the process for the Board performance review, reviews the performance of the Chief Conductor, Managing Director and senior management and establishes policies for recruitment, retention and succession planning for senior management.

Principle 3: Promote Ethical and Responsible Decision Making

The Group’s Governance Framework includes a Code of Conduct, Delegations of Authority, Board and Committee charters, Risk Management policies as well as clearly defined roles and responsibilities for key appointments. Principle 4: Promote Diversity The group aims to be an organisation that fosters an organisational culture that embraces diversity. “Diversity” includes, but is not limited to, gender, age, ethnicity, disability and cultural background. During the course of the current year, further work on the diversity action plan will be finalised with measurable objectives designed to enhance our commitment to promote diversity in the workplace. Progress against this plan will be incorporated in the Annual Report for the year ending 31 December 2013.

Principle 5: Safeguard Integrity in Financial Reporting (both internal and external)

The Finance, Audit and Risk Committee meets at least quarterly and its functions include:

• Reviewing and reporting to the Board on quarterly and annual financial statements

• Making recommendations regarding the appointment, evaluation and removal of the Group’s external auditor and reviewing and reporting to the Board on the adequacy, scope and quality of the annual statutory audit and on the integrity and reliability of the financial statements

• Reviewing the effectiveness of the Group’s internal control environment, including the effectiveness of internal control procedures

• Monitoring and reviewing the reliability of financial reporting

• Monitoring and reviewing the compliance of the Group with applicable laws and regulations

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9

• Monitoring the scope of any key control reviews and approving the engagement of qualified consultants to complete specified reviews

• Monitoring and reviewing the financial management and position of the Group.

The Finance, Audit and Risk Committee meets with the external auditors at least once per year.

The Committee requires the Managing Director and Director of Finance to attest in writing that the Group’s financial reports present a true and fair view of the Group’s financial condition and operational results and are in accordance with relevant accounting standards.

This statement is requested at the time of the consideration and approval of the Statutory Accounts. It is reviewed by the Finance, Audit and Risk Committee prior to its consideration by the Board.

The Committee consists of up to four Directors and, by invitation, the Chairman of the Board, the Managing Director and the Director of Finance and includes members with appropriate audit, finance and risk management skills. Principle 6: Recognise the Legitimate Interests of Stakeholders

The Group has numerous stakeholders and a calendar is maintained in order to monitor requirements and reporting obligations. The calendar is approved by the Board, which oversees compliance with stakeholder reporting and associated obligations.

The Group has a set of Workplace Health & Safety (WHS) manuals, which provide legislative and procedural guidance to ensure that the Group’s responsibilities continue to be met. There is a comprehensive, regular training programme, including first aid and WHS committee training. Group policies and procedures are reviewed in consultation with staff representatives. Directors are briefed on WHS policies and procedures and review the company WHS plan annually. Appropriate site visits are also made by the directors. Principle 7: Recognise and Manage Risk Quarterly updates of the Group’s risk register are undertaken by management and presented to the Finance, Audit and Risk Committee. Management undertakes annual workshops to identify further risks and develop a Risk Management Plan. The output of the workshops is reviewed by this Committee and the Board.

Principle 8: Remunerate Fairly and Responsibly The Nomination and Remuneration Committee meets at least annually to review the Group’s remuneration strategies and policies. The Committee sets the parameters within which senior management negotiates musician and administration Staff Agreements. The Committee approves all senior management remuneration arrangements. Signed on behalf of the Board of Directors

John Conde AO Chairman Sydney, dated 28th March 2013

Sydney Symphony Limited A.B.N. 50 121 561 528

Income Statement for the period ended 31 December 2012

The Income Statement should be read in conjunction with the notes to the financial statements.

11

2012

2011

Notes Consolidated Consolidated $ $ Revenue Funding revenue 4 13,538,957 13,259,864 Ticket sales 5 16,452,892 16,507,920 Sponsorship and general donations Maestro’s Circle donations Instrument Reserve donations

6 4,015,763 230,000

63,905

3,738,258 256,000 500,000

Other income 7 3,002,045 3,537,520 Total revenue 37,303,562 37,799,562 Expenses Employee expenses 8 20,964,146 20,125,282 Artist fees and expenses 5,420,872 4,771,272 Marketing expenses 3,093,005 3,509,400 Production expenses 4,638,541 5,184,916

Depreciation and amortisation 8 378,639 338,010 Other expenses 2,382,746 2,348,286

Total expenses 36,877,949 36,277,166

Net profit/(loss) for the year 425,613 1,522,396 Income tax expense 9 - - Profit/loss after income tax 425,613 1,522,396

Sydney Symphony Limited A.B.N. 50 121 561 528

Statement of Comprehensive Income for the period ended 31 December 2012

The Statement of Comprehensive Income should be read in conjunction with the notes to the financial statements.

12

2012

2011

Notes Consolidated Consolidated $ $ Profit/(loss) after income tax 425,613 1,522,396 Other comprehensive income

Cash flow hedges:

Gain/(loss) taken to equity 24 40,006 13,342

Income tax on items of other comprehensive income

-

Total comprehensive income 465,619 1,535,738

Sydney Symphony Limited A.B.N. 50 121 561 528

Balance Sheet as at 31 December 2012

The Balance Sheet should be read in conjunction with the notes to the financial statements.

13

2012

2011

Notes Consolidated Consolidated $ $ Current Assets Cash and cash equivalents 3,962,217 4,051,660 Term deposits 8,170,865 9,608,627 Other financial assets 10 81,145 93,190 Trade and other receivables 11 1,376,880 1,562,426 Prepayments 434,675 153,209

Total Current Assets 14,025,782 15,469,112 Non-Current Assets Property, plant and equipment 12 2,591,170 2,108,358 Intangible assets 13 267,723 57,669 Other financial assets 10 494,857 361,415 Term deposits 8,250,000 7,585,000

Total Non-Current Assets 11,603,750 10,112,442 Total Assets 25,629,532 25,581,554 Current Liabilities

Trade and other payables 14 2,265,607 2,747,520 Prepaid revenue 15 7,825,144 7,822,709 Provisions 16 4,065,610 3,958,976 Deferred revenue 85,714 85,714 Derivative financial Instruments 24 19,848 48,441

Total Current Liabilities 14,261,923 14,663,360 Non-Current Liabilities Provisions 16 757,326

- 335,715

676,403 11,413

421,429 Derivative financial instruments Deferred revenue

24

Total Non-Current Liabilities 1,093,041 1,109,245 Total Liabilities 15,354,964 15,772,605 Net Assets 10,274,568 9,808,949 Equity Symphony Reserve 17 1,943,743 1,943,743 International Touring Reserve 18 661,180 958,911 Instrument Reserve 19 111,897 666,270 Maestro’s Circle Reserve 20 - 457,032 Cash Flow Hedge Reserve 24 (19,848) (59,854) Retained Earnings 7,577,596 5,842,847

Total Equity 10,274,568 9,808,949

Sydney Symphony Limited A.B.N. 50 121 561 528

Statement of Changes in Equity as at 31 December 2012

The Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

14

Consolidated Symphony International Cash Flow Instrument Maestro's Circle Retained Reserves Touring Reserve Hedge Reserve Reserve Reserve Total

Notes Earnings (Note 17) (Note 18) (Note 24) (Note 19) (Note 20) Equity$ $ $ $ $ $ $

As at 1 January 2012 5,842,847 1,943,743 958,911 (59,854) 666,270 457,032 9,808,949Net (loss)/profit for the year 425,613 425,613Other comprehensive income 40,006 40,006Transfer from/(to) Symphony Reserve 17 -Transfer from/(to) International Touring Reserve 18 297,731 (297,731) -Transfer from/(to) Instrument Reserve 19 (95,940) 95,940 -Transfer from/(to) Instrument Reserve 19 650,313 (650,313) -Transfer from/(to) Maestro's Circle Reserve 20 457,032 (457,032) -

-As at 31 December 2011 7,577,596 1,943,743 661,180 (19,848) 111,897 - 10,274,568

Consolidated Symphony International Cash Flow Instrument Maestro's Circle Retained Reserves Touring Reserve Hedge Reserve Reserve Reserve Total

Notes Earnings (Note 17) (Note 18) (Note 24) (Note 19) (Note 20) Equity$ $ $ $ $ $ $

As at 1 January 2011 4,970,933 1,892,042 896,658 (73,196) 131,286 455,488 8,273,211Net (loss)/profit for the year 1,522,396 1,522,396Other comprehensive income 13,342 13,342Transfer from/(to) Symphony Reserve 17 (51,701) 51,701 -Transfer from/(to) International Touring Reserve 18 (62,253) 62,253 -Transfer from/(to) Instrument Reserve 19 (500,000) 500,000 -Transfer from/(to) Instrument Reserve 19 (34,984) 34,984 -Transfer from/(to) Maestro's Circle Reserve 20 (256,000) 256,000 -Transfer from/(to) Maestro's Circle Reserve 20 254,456 (254,456) -As at 31 December 2011 5,842,847 1,943,743 958,911 (59,854) 666,270 457,032 9,808,949

Sydney Symphony Limited A.B.N. 50 121 561 528

Cash Flow Statement for the period ended 31 December 2012

15

2012 2011 Notes Consolidated Consolidated $ $ Cash flows from operating activities

Cash receipts from box office and sponsors 20,928,611 21,729,838 Cash receipts from bequests - 51,701 Cash receipts general donations 1,672,743 1,977,803 Cash payments to suppliers and employees (37,160,845) (34,606,040) Grants received from government funding bodies 13,538,957 13,259,864

Interest received 1,351,232 1,357,919 Net cash provided by/(used in) operating activities

330,698

3,771,085 Cash flows from financing activities

Employee instrument loans granted (217,550) (45,491) Proceeds from repayments on employee instrument loans

96,153

108,649

Net Cash flows used in financing activities

(121,397)

63,158

Cash flows from investing activities

Payments for property, plant and equipment (756,977) (209,287) Payments for intangible assets (314,529) (4,850) Redemption/Investment in Term deposits 772,762 (3,108,627)

Net cash flows used in investing activities (298,744) (3,322,764) Net (decrease)/increase in cash held (89,443) 511,479 Cash and cash equivalents at beginning of financial year 4,051,660 3,540,181 Cash and cash equivalents at end of year

3,962,217

4,051,660

The Cash Flow Statement should be read in conjunction with the notes to the financial statements.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

16

1. CORPORATE INFORMATION The financial report of the Group for the year ended 31 December 2012 was authorised for issue in accordance with a resolution of the directors on 28th March 2013. Sydney Symphony Limited (the parent) is a public company limited by guarantee, incorporated and domiciled in Australia. The address of the registered office is 35 Harrington Street Sydney, NSW 2000. The nature of the operations and principal activities of the Group are described in the Directors’ Report. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation The consolidated financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards – Reduced Disclosure Requirements, and other authoritative pronouncements of the Australian Accounting Standards Board. The consolidated financial report has also been prepared on a historical cost basis except for derivative financial instruments which have been measured at fair value. The consolidated financial report is prepared in Australian dollars. At 31 December 2012, the Group was in a net current liability position of $236,141. This has arisen due to the classification of prepaid revenue of $7.8m as current liabilities, for which no cash outflow is required for settlement. Furthermore, the Group has sufficient non-current term deposits of $8.25 million at 31 December 2012 to finance its liabilities as and when they fall due. As a result, the financial report has been prepared on a going concern basis. Statement of compliance The Group is a not for profit private sector entity. Therefore, the Group has elected to present Tier 2 General Purpose Financial Statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (AASB-RDRs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB), and the Corporations Act 2001. Financial risk management objectives and policies The Group’s principal financial instruments consist of cash and term deposits, receivables and payables. The Group manages its exposure to key financial risks, including interest rate and currency risk, in accordance with the Group’s financial risk management policy. The disclosures are included under the relevant notes to the financial statements. The Group enters into derivative transactions, principally forward currency contracts, to manage the currency risk arising from the Group’s operations. The Board reviews and agrees policies for managing foreign currency risk which arises from transactional currency exposures due to sales or purchases by the controlled entity in currencies other than the functional currency. It is the Group’s policy not to enter into forward foreign currency contracts until a firm commitment is in place and to negotiate the terms of the hedge derivatives to exactly match the terms of the hedged item to maximise hedge effectiveness. The Group trades derivative products only with recognized credit worthy third parties with an equivalent S&P credit rating of AA or higher.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

17

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

a) Basis of consolidation The consolidated financial statements consist of the financial statements of Sydney Symphony Limited and its subsidiary as at 31 December 2012. The financial statements of its subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-Group transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

b) Going concern The ability of the Group to maintain its operations is dependent inter alia on the continuing support of various Governments by way of grants. The Tripartite Agreement was renewed for the period 2012 – 2014 with Australia Council for the Arts and Arts NSW. Funding for this three year period has been confirmed, subject to the company continuing to meet the requirements of the Tripartite Agreement. Therefore, the financial statements have been prepared under the going concern principle.

c) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of goods and services tax (GST). Revenue is recognised for the major business activities as follows:

i. Contribution income Contribution income represents the fair value of assets received in excess of the cost of the assets where there is a non-reciprocal transfer and is recognised as income once the asset is controlled by the Company.

ii. Funding revenue Funding revenue is received from the Australia Council for the Arts (as represented by The Major Performing Arts Board) and Arts NSW. Funding is received based on payment schedules contained in a funding agreement between the funding bodies and the Group’s controlled entity and is recognised in the calendar year for which it is intended under the terms of the agreement due to the conditional nature of the funding. Any funding not spent on the planned activities agreed between the parties at the start of each calendar year is required to be repaid.

iii. Ticket sales Revenue from ticket sales is recognised in the Income Statement at the time of concert performance. Revenue from ticket sales in respect of productions not yet performed is included in the Balance Sheet as prepaid ticket sales under the Current Liabilities heading “Prepaid revenue”.

iv. Sponsorship and donations revenue Sponsorship – Sponsorship cash and in-kind commitments are brought to account as income in the year in which sponsorship benefits are bestowed. Donations – All donations are brought to account as received.

v. Orchestral hire revenue Revenue from orchestral hire is recognised as these services are performed.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

18

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

vi. Interest income Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

d) Foreign currency translation Both the functional and presentation currencies of the Group are Australian dollars (A$). Transactions in foreign currencies are recorded initially in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

e) Income tax and other taxes Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. The Group’s operating subsidiary Sydney Symphony Orchestra Holdings Pty Limited is exempt from income tax, by virtue of being a cultural organisation established for the encouragement of music and a charitable institution. Accordingly no income tax or deferred income tax is provided. Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included gross in the statement of cash flows. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

f) Acquisitions of assets Acquired assets are accounted for at cost. Cost is measured as the fair value of assets given or liabilities incurred or assumed at the date of exchange plus cost directly attributable to the acquisition.

g) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

19

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

h) Trade and other receivables Trade receivables, which generally have 60 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectible amounts. Collectability of trade receivables is reviewed continually. Debts that are known to be uncollectible are written off when identified. An allowance for provision for impairment of trade receivables is used when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the impairment loss is recognised in the income statement within Other Expenses.

i) Property, plant and equipment All items of property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Items of plant and equipment, leasehold improvements, computer equipment and musical instruments are depreciated using the straight-line method over their estimated useful lives. Where musical instruments are deemed to appreciate in value, no depreciation is applied. Each class of asset in the current period was depreciated over the following useful lives as set out in the following table:

Asset class Useful Life Computer equipment 3 years Furniture and fittings Between 6 and 8 years Plant and equipment 8 years Musical instruments Between 5 and 15 years

Derecognition and disposal An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Income Statement in the period the asset is derecognised.

j) Intangible assets Software licences have a finite useful life and are carried at cost less accumulated amortisation and impairment losses. Licences are tested for impairment where an indicator of impairment exists. Amortisation is calculated using the straight line method to allocate the cost over the estimated useful life of 3 years.

k) Impairment The carrying values of plant and equipment are reviewed for indicators of impairment at each reporting date, with a recoverable amount being estimated when events or changes in circumstances indicate the carrying value may not be recoverable. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. Impairment losses are recognised in the income statement.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

20

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

l) Leased plant and equipment Leases of plant and equipment are classified as operating leases as the lessors retain substantially all of the risks and benefits of ownership. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

m) Trade and other payables Trade payables and other payables are carried at amortised cost. Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the Group. Trade accounts payable are normally settled within 30 days.

n) Provisions A provision is recognised when there is a legal, equitable or constructive obligation as a result of a past event and i t is pr obable t hat a f uture s acrifice o f ec onomic benef its w ill be r equired, t o s ettle t he obligation, the t iming or amount of which is uncertain. P rovisions are det ermined by di scounting t he expected future cash flows required to settle the obligation at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Make good provision The Group provides for costs of restoration or removal in relation to fixed assets when there is legal or constructive obligation. These costs include obligations relating to the dismantling, removal, remediation, restoration and other expenditure associated with fixed assets or site fit-outs.

o) Employee benefits Wages, salaries and annual leave Liabilities for employee benefits for wages, salaries and annual leave expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided up to the reporting date. These are calculated at undiscounted amounts based on compensation rates that the consolidated entity expects to pay, including related on-costs. Long service benefits The provision for employee benefits for long service leave represents the present value of the estimated future cash outflows to be made, resulting from employees’ services provided up to the reporting date. The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to Commonwealth government bonds at balance date which most closely match the terms of maturity of the related liabilities. Superannuation The Group contributes to employees’ superannuation funds. Contributions are recognised as an expense as they are made. The Group has no ongoing l iability for superannuation benef its ul timately payable to employees.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

21

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Employee loans Some employees are lent monies which are used in turn to purchase musical instruments. These loans are secured by the instruments themselves and are interest bearing. Amounts outstanding are recouped over time through contributions withheld from musicians’ salaries. These are recorded within other financial assets.

p) Changes in accounting policies All accounting policies have been applied on a consistent basis with those of the previous period.

q) Derivative Financial Instruments and Hedging Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure to fluctuations in foreign currency rates on forecasted transactions. The effective portion of the gain or loss on the financial instrument is recognised directly in equity and transferred out of equity when the forecast transaction occurs. 3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the financial statements requires management to make judgements, estimates and assumptions t hat a ffect the r eported am ounts i n t he f inancial s tatements. Management c ontinually evaluates i ts judgements and es timates i n r elation t o assets, l iabilities, contingent liabilities, r evenue and ex penses. T he f ollowing c ritical ac counting pol icies hav e been i dentified for w hich s ignificant judgements, estimates and assumptions are made. Impairment of non-financial assets The G roup as sesses i mpairment o f its non -financial as sets at eac h r eporting dat e by e valuating conditions specific t o t he G roup and t o t he specific as set. I f an im pairment t rigger e xists, the recoverable a mount o f t he as set i s det ermined. M anagement do not c onsider t hat t he t riggers f or impairment existed in this financial period. Make good provision A pr ovision has been made for the pr esent value o f ant icipated c osts as sociated w ith t he future restoration o f the l eased office pr emises. T he es timate i s per iodically r eviewed and updat ed. T he related carrying amounts are disclosed in note 16. Estimate of useful lives The estimation of useful lives of assets i s based on h istorical experience. The condition of assets is assessed periodically and considered in relation to the remaining useful life of the asset. Adjustments are made to useful lives as appropriate.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

22

4. FUNDING REVENUE 2012 2011 Consolidated Consolidated $ $ Australia Council for the Arts Annual Grant 10,326,304 10,101,230 Arts NSW Base Funding

3,212,653 3,158,634

Total funding revenue

13,538,957

13,259,864

A significant portion of the Group’s annual revenue consists of funding from Federal and State governments, through the Australia Council for the Arts and Arts NSW. As a result, the Group has an economic dependency on these entities. The Funding Agreement with the Australia Council for the Arts and Arts NSW was renewed for the period 2012 to 2014 whereby amounts will be provided to Sydney Symphony Limited. As required, amounts received by the Group during the financial year were transferred to the subsidiary, Sydney Symphony Orchestra Holdings Pty Limited, to fund its operations and activities in accordance with the Funding Agreement with the Australia Council for the Arts and Arts NSW. 5. TICKET SALES 2012 2011

Consolidated Consolidated $ $ Subscriptions 7,926,414 7,312,683 Single night 8,526,478 9,195,237 Total ticket sales

16,452,892

16,507,920

6. SPONSORSHIP AND GENERAL DONATIONS 2012 2011 Consolidated Consolidated

$ $ Sponsorship

2,636,925

2,464,754

General donations

1,378,838 1,273,504

Total sponsorship and general donations

4,015,763

3,738,258

7. OTHER INCOME 2012 2011 Consolidated Consolidated $ $ Orchestral hire income 1,066,720 1,656,869 Interest 1,351,232 1,357,919 Other income 584,093 522,732

Total other income

3,002,045

3,537,520

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

23

8. EXPENSES

2012

2011

Consolidated Consolidated $ $

Depreciation of fixed assets 274,165 262,525 Amortisation of intangible assets 104,474 75,485 Total depreciation and amortisation

378,639

338,010

Operating lease rental expense 413,965 380,869 Employee expenses: Salaries and wages 16,691,372 15,820,016 Superannuation 2,354,845 2,391,761 Other employee expenses 1,917,929 1,913,505

Total employee expenses

20,964,146

20,125,282

9. INCOME TAX 2012 2011 Consolidated Consolidated

$ $ Accounting profit (loss)

425,613

1,522,396

At Group’s statutory tax rate (30%)

127,684

456,719

Less non taxable items (127,684) (456,719) Income tax expense

-

-

The company’s subsidiary Sydney Symphony Orchestra Holdings Pty Limited, is exempt from income tax, capital gains tax and payroll t ax by virtue o f being a cultural organisation established f or t he encouragement of music and a charitable institution. 10. OTHER FINANCIAL ASSETS 2012 2011 Consolidated Consolidated $ $ Current asset Employee instrument loans 81,145 93,190 Non-current asset Employee instrument loans 494,857 361,415

Total other financial assets

576,002

454,605

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

24

11. TRADE AND OTHER RECEIVABLES 2012 2011 Consolidated

$ Consolidated

$ Current Trade debtors 729,502 904,325 Other receivables 114,714 106,100 Accrued income 532,664 552,001 Total trade and other receivables

1,376,880

1,562,426

12. PROPERTY, PLANT AND EQUIPMENT – Consolidated Plant and

equipment Fixtures

and fittings

Musical instruments

acquired through the Instrument

Reserve

Musical instruments

acquired

Computer equipment

Total

$ $ $ $ $ $ Year ended 31 December 2012 At 1 January 2012, net of accumulated depreciation and impairment

182,351 709,493 787,774 267,756 160,984 2,108,358

Additions 4,214 15,701 650,313 23,991 62,758 756,977 Depreciation charge for the year (26,319) (126,792) - (41,915) (79,139) (274,165) As at 31 December 2012, net of accumulated depreciation and impairment

160,246 598,402 1,438,087 249,832 144,603 2,591,170

At 31 December 2012 Cost or fair value 400,999 851,233 1,438,087 971,900 1,049,918 4,712,137 Accumulated depreciation (240,753) (252,831) - (722,068) (905,315) (2,120,967) Net carrying amount 160,246 598,402 1,438,087 249,832 144,603 2,591,170

$ $ $ $ $ $ At 31 December 2011 Cost or fair value 396,785 835,532 787,774 947,909 987,160 3,955,160 Accumulated depreciation (214,434) (126,039) - (680,153) (826,176) (1,846,802) Net carrying amount 182,351 709,493 787,774 267,756 160,984 2,108,358

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

25

13. INTANGIBLE ASSETS - Consolidated Consolidated Consolidated 2012

$ 2011

$ At 1 January, net of accumulated amortisation and impairment

57,669 128,304

Additions 314,529 4,850 Amortisation charge for the year (104,475) (75,485) As at 31 December, net of accumulated amortisation and impairment

267,723

57,669

At 31 December Cost or fair value 702,364 387,835 Less written-off as fully depreciated (387,835) - Cost or fair value carried forward 314,529 387,385 Accumulated amortisation (434,641) (330,166) Less written-off as fully depreciated 387,835 - Accumulated amortisation carried forward (46,806) (330,166) Net carrying amount

267,723

57,669

14. TRADE AND OTHER PAYABLES

2012 2011 Consolidated Consolidated $ $ Accruals 1,265,331 1,765,070 Trade creditors 958,266 937,098 Other payables 42,010 45,352 Total trade and other payables

2,265,607

2,747,520

The fair value of financial liabilities is equivalent to the carrying amount at balance date as disclosed in the balance sheet and related notes. This is because either the carrying amounts approximate to their fair value or because of their short term to maturity. 15. PREPAID REVENUE

2012 2011 Consolidated Consolidated $ $ Prepaid ticket sales 7,809,412 7,689,853 Prepaid other 15,732 132,856 Total prepaid revenue

7,825,144

7,822,709

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

26

16. PROVISIONS 2012 2011 Consolidated Consolidated $ $ Current provision for employee benefits 4,065,610 3,958,976 Non-current provision for employee benefits

607,326

527,535

Make good provision 150,000 148,868 Total Non-current provisions 757,326 676,403 Total provisions

4,822,936

4,635,379

17. SYMPHONY RESERVE 2012 2011 $ $ Accumulated funds at 1 January 1,943,743 1,892,042 Transfer from retained earnings in relation to:

Current year bequests - 51,701 Accumulated funds at 31 December

1,943,743

1,943,743

The Symphony Reserve was established under protocols agreed by the Board to raise and accumulate capital to support the aims of the company and its long-term financial security. 18. INTERNATIONAL TOURING RESERVE 2012 2011 $ $ Accumulated funds at 1 January 958,911 896,658 Transfer (to)/from retained earnings in relation to:

Net surplus/(deficit) from touring (297,731) 62,253 Accumulated funds at 31 December

661,180

958,911

19. INSTRUMENT RESERVE 2012 2011 $ $ Accumulated funds at 1 January 666,270 131,286 Transfer from retained earnings for interest earned 32,035 34,984 Transfer from retained earnings in relation to:

Instrument Reserve donation 63,905 500,000 Transfer to retained earnings for instruments acquired (650,313) - Accumulated funds at 31 December

111,897

666,270

The assets purchased using the Instrument Reserve are included in the Property Plant and Equipment - Musical Instruments. There were no purchases in 2011.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

27

20. MAESTRO’S CIRCLE RESERVE 2012 2011 $ $ Accumulated funds at 1 January 457,032 455,488 Transfer from retained earnings in relation to:

Maestro’s Circle donations - 256,000 Transfer to retained earnings in relation to:

Maestro’s Circle expenses (457,032) (254,456) Accumulated funds at 31 December

-

457,032

The Maestro’s Circle Reserve was created in 2009 to assist with the costs associated with special activities planned by the incoming Principal Conductor and Artistic Advisor, Mr Vladimir Ashkenazy. The Maestro’s Circle expenses reflect the net expenditure associated with gala concert activities, other recordings and new music compositions during the course of Mr Ashkenazy’s tenure with the orchestra in the period 2009 to 2012. 21. DIRECTORS AND EXECUTIVE DISCLOSURES a) Details of key management personnel The names of each person holding the position of Director or Executive Director of the Company during the financial period are listed on page 2 in the Directors’ Report. Unless otherwise stated in the Directors’ Report, the Directors have been in office for the financial period. b) Compensation of key management personnel 2012 2011 Consolidated Consolidated $ $ Total Compensation

596,016

447,492

Payments were made to directors for their services as employees of the company and not for their services as Directors of the Group for which no fee is paid. Non-executive Directors are not paid any fees for their services as Directors of the Group. 22. RELATED PARTIES a) Directors Transactions with Directors Mr. Ewen Crouch AM, a director of the Group, was a partner with Allens during the year. During the year, this firm provided pro-bono professional services to the Group. Transactions between the Group and entities in which Directors have declared an interest, are transacted under normal terms and conditions. There were no contracts involving Directors' interests subsisting at period end excepting sponsorship agreements under normal terms and conditions of business. Sponsorship from director-related entities is on terms and conditions no more favourable than those offered to other sponsors.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

28

23. COMMITMENTS AND CONTINGENCIES a) Operating lease (non cancellable)

2012 2011 Consolidated Consolidated

$ $ Not later than one year 439,039 440,242 Later than one year and not later than five years 1,721,273 1,757,358 Later than five years - 402,953

2,160,312

2,600,553

The Group has operating leases for office accommodation. b) Artist fees contracted for but not provided for and not payable 2012 2011

Consolidated Consolidated $ $ Not later than one year 1,077,758 1,011,258 Later than one year and not later than five years - 242,032

1,077,758

1,253,290

The Group has entered into contracts for performances scheduled to take place during 2013. These amounts include the expenditure required to satisfy the contracts with the artists. c) Guarantees The Group has issued bank guarantees in support of;

i. the operating lease over premises at 35 Harrington Street, The Rocks, NSW for the amount of $225,000 expiring on 31 December 2017 (2011: $225,000).

ii. credit collateral on advertising contracts for $200,000, (2011: $200,000).

No liability is expected to arise from these guarantees. 24. FINANCIAL INSTRUMENTS a) Fair value The Group has used the Level 2 method in estimating the fair value of its financial instruments. The fair value of financial instruments is derived using valuation techniques with only observable market inputs or unobservable inputs that are not significant to the overall valuation. The fair value of financial instruments and the methods used to estimate the fair value are summarised in point (e) below.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

29

24. FINANCIAL INSTRUMENTS (continued) b) Credit risk exposure The Group’s maximum exposure to credit risk at the balance sheet date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the balance sheet and related notes. c) Liquidity statement Short term deposits consist of a number of term deposits held with different maturity dates less than one year. These funds are available at call should they be required, subject to minor early withdrawal penalties. d) Sensitivity analysis A Sensitivity Analysis of the effect of interest rate and foreign currency movements on assets and liabilities was not undertaken as the prospective impacts were not considered material at balance date. e) Derivative financial instruments Valuation Technique Market Observable Inputs (Level 2) 2012 2011

Consolidated Consolidated $ $ Current Liabilities Forward currency contracts –cash flow hedges (19,848) (48,441) Non-current liabilities Forward currency contracts –cash flow hedges

-

(11,413)

(19,848)

(59,854) Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure to fluctuations in foreign currency rates. (i) Forward currency contracts – cash flow hedges The Group purchases the services of artists under contracts denominated in foreign currencies. In order to protect against exchange rate movements and to provide certainty against future cash flows, the Group has entered into forward currency contracts to purchase Swiss francs. The cash flows are expected to occur between one and twelve months from 1 January 2013 and total A$19,848, (2011 A$59,854) with average exchange rates of CHF 0.9051, (2011 CHF 0.8590). The forward currency contracts are considered to be highly effective hedges as they are matched against forecast purchases and any gain or loss on the contracts attributable to the hedged risk is taken directly to equity. When the service is delivered, the amount recognised in equity is adjusted to artist’s fees and expenses in the Income Statement. (ii) Movement in forward currency contract cash flow hedge reserve

2012 Consolidated

2011 Consolidated

$ $

Opening balance Taken to other comprehensive income

(59,854) 40,006

(73,196) 13,342

Closing balance

(19,848)

(59,854)

The fair value of the derivative financial instruments is calculated using quoted prices in active markets.

Sydney Symphony Limited A.B.N. 50 121 561 528

Notes to the Financial Statements

30

25. INDEMNIFICATION AND INSURANCE OF OFFICERS Insurance and indemnity arrangements established in previous years concerning officers of the Group were renewed and continued during 2012. Sydney Symphony Orchestra Holdings Pty Limited paid the premium on a contract insuring each of the Directors of the Group, named earlier in this report, and each of the full-time executive officers of the consolidated entity, against all liabilities and expenses arising as a result of work performed in their respective capacities, to the extent permitted by law. 26. INFORMATION RELATING TO SYDNEY SYMPHONY LIMITED (“the Parent Entity”)

2012

2011

$ $

Current assets - - Non-current assets 8,578,559 8,578,559 Total assets 8,578,559 8,578,559 Current liabilities Total liabilities 330 330 Net assets 8,578,229 8,578,229 Equity Retained earnings 8,578,229 8,578,229

Total equity Profit or loss of Parent Entity Total comprehensive income of parent company

8,578,229 8,578,229 - -

- -