2012 13 bm annual report
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annual report
2012 - 2013Brisbane Marketing
06 lord mayor’s foreword
08 chairman’s review
10 ceo’s review
13 the year ahead
16 key performance indicators
18 our board
18 corporate governance
19 annual financial statements
contents
brisbanemarketing.com.au | 03
▼ Lord
Mayor’s
Business
Awards 2
013
Brisbane Marketing is Brisbane’s economic
development board. It aspires to be one of
the world’s leading city-based economic
development boards by championing new-world
thinking around investment and talent attraction,
industry and precinct development, destination
marketing, entrepreneurialism, innovation and the
visitation economy.
A wholly owned subsidiary of Brisbane City
Council, Brisbane Marketing drives an ambitious
agenda to shape the city’s future prosperity.
The organisation helps position Brisbane
as Australia’s new world city; an attractive
destination for major events, business and
investment, tourism, conventions and education.
Brisbane Marketing is also committed to
promoting Brisbane as a city of substance
on the world stage and a trailblazer of the Asia
Pacific region.
With its $135 billion economy on track to grow to
more than $217 billion by 2031, Brisbane has led
Australia’s economic growth in recent years.
Working in partnership with Brisbane City Council,
Brisbane Marketing collaborates with government,
business, industry and community to advance the
economic and social value of Brisbane and the
Greater Brisbane region.
Brisbane Marketing activates economic activity
in the major CBD and South Bank precincts and
coordinates the Asia Pacific Screen Awards, the
Lord Mayor’s Business Awards and the Brisbane
Innovation Scorecard.
Striving to support residents, business and
visitors, Brisbane Marketing is a passionate and
energetic organisation focused on facilitating
sustainable economic growth ensuring Brisbane,
its businesses and talent are globally competitive
and leaders in their fields.
Our purposeTo create a more prosperous Brisbane
• We partner with council, government,
business and industry to drive economic
growth for Brisbane through investment
and talent attraction, tourism, major events,
conventions, commerce, education and
innovation.
• We promote Brisbane as Australia’s new
world city.
• We encourage Brisbane to apply new-world
thinking to its economic development to
create and promote a global, goal-driven
outlook for the city.
• We persuade others to invest, visit, meet,
study, work, live and play in Brisbane.
• We encourage Brisbane businesses to be
globally competitive through innovation.
• We champion a commitment to high-quality
service, unique visitor experiences, state-of-
the-art ideas and technology adaptation, and
a business environment that attracts talent
and ambitious enterprise.
brisbane marketing
brisbanemarketing.com.au | 05
Over the past 12 months
Brisbane Marketing has
continued its important
work of driving long-term
economic growth for the
city. Through a range
of innovative programs,
Brisbane Marketing is
working to boost the city’s
credentials as a highly competitive destination
for conventions, tourism, major events and
international education.
By improving the economic future of the city, it
is in turn realising Council’s vision of building a
better Brisbane and maintaining a high quality of
life for all residents.
Brisbane Marketing Chairman Ian Klug continues
his good work leading the Lord Mayor’s Economic
Development Steering Committee, which I
initiated in 2011 to support local business and
encourage investment. Our aim is to increase jobs
and per capita income by 50 per cent over the
next 20 years.
As a city we have so much to offer and so much
untapped opportunity. The value of Brisbane’s
economy is measured at $135 billion, but is
predicted to grow to more than $217 billion by
2031. Brisbane Marketing will play a crucial role
in achieving this target through initiatives like the
Choose Brisbane campaign.
Launched this year, Choose Brisbane is a three-
year campaign targeting key decision-makers
in business investment, conventions, meetings
and international education. It complements
the Brisbane in Asia strategy and is active
predominantly in Hong Kong, mainland China and
Singapore but will eventually extend into the UK,
Europe, Japan, South Korea and the United States.
This year we also saw the launch of Digital
Brisbane, a five-year initiative to kick-start
a business revolution and ensure the city can
capitalise on the multi-trillion dollar global
digital economy.
As a means of advancing Brisbane’s international
student market, this year I began hosting regular
Friendship Ceremonies. These events, which are
all part of Brisbane Marketing’s Study Brisbane
campaign, aim to thank international students
for choosing Brisbane as their study destination
and encourage them to remain lifelong friends
of the city.
In a huge coup for Brisbane, Brisbane Marketing is
now the organising body for the prestigious Asia
Pacific Screen Awards (APSA) which will be held
in City Hall in December 2013. Brisbane is also
set to benefit from the many global connection
opportunities as host city of the 2014 G20 Leaders
Summit next November.
These events and the many other strategies are
placing Brisbane at the epicentre of the world’s
fastest-growing economic region: Asia Pacific.
I want to thank the Brisbane Marketing Board,
Chairman Ian Klug, CEO John Aitken and his very
capable team for all their work in the past year
delivering greater prosperity for the businesses
and residents of our city.
Graham Quirk
Lord Mayor
lord mayor’s foreword
06 | Brisbane Marketing Annual Report 2012-13
▼ Asia Pacific Screen Awards
“ “
These events and the many other strategies
are placing Brisbane at the epicentre of the world’s
fastest-growing economic region:
Asia Pacific.
brisbanemarketing.com.au | 07
The past year has seen
significant growth in
Brisbane Marketing. This is
evident in both the breadth
of work we are undertaking
and our involvement in
issues that impact on the
future direction of the city.
The support we get from
the Lord Mayor’s Office and our ability to draw
on the resources of the largest municipal council
in the country are important to the ongoing
success of Brisbane Marketing.
Some of the new activities we have
engaged in over the past year include
the activation and promotion of South
Bank, the implementation of the
Digital Brisbane strategy and the
attraction of major events like
the 2014 G20 Leaders Summit.
Collectively, these initiatives
serve to increase our capacity
to be in market and drive
investment in the city
from around the world,
particularly from Asia
and especially China.
The launch of the
Choose Brisbane
campaign,
closely
followed by
the Lord
Mayor’s
trade
mission to the Asia Pacific Cities Summit in
Taiwan and then China, is testament to our
commitment to attracting foreign investment.
Choose Brisbane was launched in Hong Kong
in March 2013 and within just a few months its
message had reached more than two million
people in Asia via a strong digital advertising
schedule as well as more than 1200 bus shelter
billboards.
Choose Brisbane showcases Brisbane as
Australia’s new world city and demonstrates our
capacity to embrace opportunities in the Asia
Pacific region.
As always, our measure of success is how
much economic value we bring to the city as
an organisation. Our target for 2012-13 was to
generate $418 million in overall economic value
to Brisbane. What we achieved was well beyond
that figure at $698 million.
One of our most important initiatives was the
launch of the Digital Brisbane strategy. It will
transform the way business is done in Brisbane
and provide a roadmap for businesses to excel in
the digital economy.
To this end, Brisbane Marketing is revisiting its own
suite of websites in a strategy underpinned by smart
web technologies and efficient digital marketing.
The 2013 Lord Mayor’s Business Awards program
has a new Digital Champion category, while a
key initiative in 2013-14 will be the introduction
of a new “way-finder” plan for visitors to the city,
integrating mobile digital technology with signs,
maps and city venues.
chairman’s review
08 | Brisbane Marketing Annual Report 2012-13
Digital Brisbane will create an improved
entrepreneurial start-up culture and aims
to double the number of companies selling
online within five years. It is mentoring
promising business start-ups and teaching
young people about digital coding through a
CoderDojo program.
I am passionate about the transformation that
is taking place in our city and as Chairman I am
proud of the role Brisbane Marketing is taking with
Brisbane City Council on the Digital Strategy.
Brisbane is fortunate to have a visionary Lord
Mayor who is engaged and champions the bold
initiatives being undertaken in relation to the
future of our city.
Brisbane Marketing’s brief is to showcase the
city as an attractive destination for major events,
business and investment, tourism, conventions
and education.
Throughout 2012-13, some blockbuster events
garnered plenty of attention for Brisbane
and each was supported by our team. These
included exhibitions such as Portrait of Spain:
Masterpieces from the Prado and the 7th Asia
Pacific Triennial.
The British and Irish Lions and Wallabies played
a Test in Brisbane, while other sporting highlights
included the Brisbane Racing Carnival and the
Brisbane International tennis event, which in 2014
will include Roger Federer in its draw. A million
people attended more than 90 performances
during the 2012 Brisbane Festival and, for the
first time, Brisbane hosted the Asia Pacific Screen
Awards which now come under the Brisbane
Marketing umbrella. The
QPAC International Series
brought us Russia’s legendary
Bolshoi Ballet, while award-
winning musicals like South Pacific
and Legally Blonde filled the house.
I extend my sincere thanks to our
Chief Executive Officer, John Aitken, and
our team at Brisbane Marketing for the
remarkable progress they have made in driving
the city’s growth. I am also grateful to my fellow
board members for their valuable time and
expertise. This year we thank and farewell Geoff
Harley, Anthony Hayes and Peter Sherrie and
welcome new board members Liz Savage and
Adam Penberthy. Thank you also to our Brisbane
Marketing members and corporate partners for
your support. My sincere thanks go to Lord Mayor
Graham Quirk, Deputy Mayor and Infrastructure
Committee Chair Cr Adrian Schrinner, Chair
of the Finance, Economic Development and
Administration Committee Cr Julian Simmonds,
and all members of Civic Cabinet. Finally, I want
to thank Greg Bowden, Director of Strategy,
Communications and Economic Development,
and his team in the Lord Mayor’s office. Without
the support of these people, Brisbane Marketing’s
achievements would not be possible.
My priority for 2013-14 is to continue our efforts
in delivering the recommendations of the Unique
Window of Opportunity report and ensure
continued growth for Brisbane.
Ian Klug
Chairman
brisbanemarketing.com.au | 09
The 2012-13 year has been
one of great achievement
for Brisbane Marketing.
As Brisbane’s economic
development board,
we have advanced the
commitment to strengthen
Brisbane’s position as
Australia’s new world city and our place as a leader
within the Asia Pacific region.
This period saw the introduction of many new
initiatives identified in the Unique Window of
Opportunity report, including the Global Resources
Hub, Brisbane Hotel Investment Project, Brisbane
Digital Strategy, Brisbane in Asia driving growth in
tourism, students and conventions from key source
markets in Asia, Brisbane Friendship Ceremonies for
International Students, growing weekend visitations
through major events, and the introduction of the
highly successful Brisbane Greeters project.
All of these new economic development projects,
combined with our existing responsibilities,
contributed to Brisbane Marketing’s most successful
year ever, generating an overall economic value of
$698 million, exceeding our forecast KPI scorecard
result by $280 million.
As detailed in the KPI scorecard, this result was
driven in the main by a successful investment
attraction campaign and was trending some $70
million above this final result. However, a number
of major investment projects were delayed from
maturing in the final quarter of 2012-13 but will
be reported as wins in the 2013-14 period. These
results were achieved in a challenging period for
many industry sectors due to tightening of market
conditions, especially in tourism and professional
services.
The diversification of our economic development
remit informed by industry in the Unique Window of
Opportunity report has proven to be insightful, and
this, coupled with the quality of our implementation
and the performance of our people, has
underpinned this strong result.
While these new directions will hold us in good
stead for the next few years, it is important Brisbane
Marketing continues to remain highly flexible and
responsive to market trends and industry needs.
To this end, Brisbane Marketing has clustered
its business units into core areas of economic
development activity: visitation economy;
investment and industry development; precinct
development, destination marketing, brand,
research and advocacy; and CEO, operations and
new projects. This clustering process has enabled
Brisbane Marketing to be a project and outcome-
driven organisation.
During 2012-13, Lord Mayor Graham Quirk and his
Council have deputised Brisbane Marketing to lead
the leveraging of Brisbane as the host city of the
2014 G20 Leaders Summit, deliver the Asia Pacific
Screen Awards and contracted to the City Parklands
Transitional Services to deliver the marketing and
activation of the South Bank Parklands. All of these
additional responsibilities have served to enhance
Brisbane Marketing’s economic development
capabilities while driving efficiencies for the city.
Some of the highlights of 2012-13 included:
Choose Brisbane campaign
The Choose Brisbane campaign was launched
in Hong Kong to target key decision-makers in
business investment, conventions, meetings and
incentives and international education.
Market research found the initial campaign in Hong
Kong had been seen by almost half the business
decision-makers surveyed and, more importantly,
for those who saw it, it doubled their likelihood to
consider Brisbane as an investment opportunity
(from 24% to 47%). It attracted 45,000 unique
visitors to the campaign website and attracted
media coverage in 23 Chinese outlets.
Strong investment secured
The Investment Attraction unit attracted $119.75
million of capital investment to Brisbane, which
translates into $430 million in total economic impact
and 258 jobs. Of this investment, 87.5 per cent of
projects were sourced from international markets,
continuing the trend of the unit’s focus on these
markets as the key source.
ceo’s review
10 | Brisbane Marketing Annual Report 2012-13
Its Global Resource Hub initiative continued to
build Brisbane’s reputation as a global resources
and energy hot spot by attracting international
investment into R&D for the sector, the city’s
resources supply chain and the resource exploration
sector.
The Brisbane Hotel Investment Project was
developed following research, commissioned
by Brisbane Marketing in conjunction with the
Queensland Government, which found the city’s
hotel market was experiencing supply pressures.
The project targets institutional property investors
and owner-operators in the global hotel industry,
connecting them to development opportunities in
Brisbane.
Brisbane’s growing reputation as a leading global education hub
The Export unit’s Study Brisbane team now
has more than 124,000 followers on Facebook,
becoming the biggest study destination social
media presence in Australia, and even bigger than
Study London. A new Study Brisbane website
was launched and more than 2500 students were
presented with a Certificate of Friendship at the
Lord Mayor’s International Student Friendship
Ceremonies. The Brisbane International Student
Ambassador program, established in 2009,
attracted a record number of entries. This year 33
ambassadors from 29 countries were chosen to
spread the good word on Brisbane.
The Brisbane in Asia Strategy targeted mainland
China, Hong Kong and Taiwan and is expected to
boost Chinese overnight visitors to Brisbane by
15 per cent in 2013-14. The strategy also saw the
appointment of a Business Development Manager as
well as a Public Relations Manager in China this past
year.
Study Brisbane and the Brisbane in Asia Strategy
brought a combined total of $60 million into the
Brisbane economy.
Major Events helped to show our colours
Our Major Events unit recorded that 2.5 million
people attended 16 major events in Brisbane,
delivering an estimated impact of $76 million.
The most popular events included exhibitions such
as Portrait of Spain: Masterpieces from the Prado
and the 7th Asia Pacific Triennial, Cirque du Soleil’s
OVO, Jersey Boys, South Pacific, Legally Blonde and
the Bolshoi Ballet.
The British and Irish Lions tour provided the impetus
for expanding the Show Your Colours campaign – a
month-long celebration of football that promoted
seven games in June.
More than 251,950 fans attended the games, and
many CBD hotels achieved 100 per cent occupancy
during the key weekend of the Bristish and Irish
Lions/Wallabies Test match. More than 7500 fans
visited our fan and live sites and a total of $3.2
million in media coverage was achieved, while
100-plus stakeholders engaged in city activation
strategies across the month.
Brisbane’s digital transformation underway
The Digital Brisbane Strategy was launched in
March and aims to double the number of companies
selling online, position Brisbane as a significant
digital player in the Asia Pacific and create an
improved entrepreneurial start-up culture over
the next five years.
Headed by Chief Digital Officer Kieran O’Hea, the
Digital Brisbane business unit is also geared towards
championing state-of-the-art digital services for
residents and visitors. Initiatives include the new-
look digitalbrisbane.com.au, a resource portal
for small businesses with the latest digital news,
information on digital events, and digital support
from experts through video content and blogs.
Other achievements in 2012-13 included launching
a free CBD wi-fi map, hosting a successful digital
speed networking event, launching the Lord Mayor’s
Budding Entrepreneurs Program and the Visiting
Entrepreneurs Program as well as the CoderDojo
program for school-aged children to learn how to
code, develop apps and build websites.
Growing tourism and our welcoming spirit
The Leisure Tourism unit launched the largest
tourism campaign ever for Brisbane Autumn/
Winter – undertaken through regional Queensland,
interstate in Sydney and Melbourne and
brisbanemarketing.com.au | 11
internationally in New Zealand. Results included
more than 6400 leads to operators generated; an
increase of unique website visits by Australians of
145% and New Zealand visitors by 264%; and a 12%
increase in the likelihood of potential visitors to
support Brisbane by spending money in the Greater
Brisbane region.
Brisbane Marketing also undertook its first leisure
tourism campaign targeting Chinese visitors. More
than 500 Brisbane room nights were sold for the
Domestic China Campaign (April–June 2013).
Primarily aimed at domestic Chinese with the aim
of stimulating word-of-mouth recommendations to
friends and family in mainland China, the campaign
also reached into mainland China through an online
partnership with Tuniu.
The campaign achieved 400,000 re-tweets and
200,000 comments on Brisbane Marketing’s
China social media campaign. A total of 126,000
Chinese visitors stayed in Brisbane during the year
ending March 2013, a 22 per cent increase from the
previous year.
The Brisbane Greeters volunteer base grew to
more than 100 Greeters, covering more than 20
languages. More than 6000 visitors took part in a
Brisbane “Greet”, and the initiative was named by
the Sydney Morning Herald in 2013 as “one of the 50
things we love about travel right now”.
The Convention Bureau had a strong year, with the
pinnacle of the year being the announcement by
the Federal Government that Brisbane would be the
host city of the 2014 G20 Leaders Summit. More
than $53 million in economic value was generated
from bids won, including Brisbane Convention
& Exhibition Centre-led bids in partnership with
Brisbane Marketing. The Convention Bureau
supported 153 Convention members, including 23
new members, and delivered more than 430,000
delegate days to Brisbane in 2012-13 generating more
than $260 million in economic benefit to the city.
Growing our precincts
Our CBD Retail unit facilitated 3381 performances in
the Queen Street Mall and surrounding precincts in
2012-13, including Australia’s largest free live music
program and artist mentoring program. The City
Sounds operated on 155 days and featured 646
registered artists putting on 2340 performances
in 2012 alone. Australia’s largest free Christmas
entertainment program – Christmas in The City 2012
– ran for six weeks, featuring 136 events and 400
performances, attracting 155,000 people and almost
$2 million in media coverage.
As its role continues to expand, Brisbane Marketing
is growing and evolving to fulfil its mission to be an
innovative economic leader for the city. We have
established new business development units for
the G20 and the Asia Pacific Screen Awards, and
welcomed the events and marketing team from
South Bank to our ranks.
The Brisbane Visitor Information and Booking
Centre continues its good work in the Queen Street
Mall, and we have also assumed responsibility for
Australia TradeCoast.
Team effort
None of our achievements would be possible
without the tireless efforts of the Brisbane Marketing
team and the support of Brisbane City Council.
I want to thank all our members and industry
partners, Lord Mayor Graham Quirk, Finance,
Economic Development and Administration
Committee Chair Cr Julian Simmonds, CEO of
Brisbane City Council Colin Jensen, our Chairman
Ian Klug and the Brisbane Marketing Board for their
support throughout the year.
The 2012-13 period has been a defining year for
Brisbane Marketing and one of transition for
Brisbane and the Australian economy as we depart
one economic cycle and move towards the next. We
are in good shape as a city to rise to the challenges
and convert the many opportunities that the next
few years present, especially those driven by the
heightened awareness the 2014 G20 Leaders
Summit offers Brisbane. I’m confident we have the
people, strategies, networks and importantly the
city attributes to shape our destiny as Australia’s
new world city.
John Aitken
Chief Executive Officer
ceo’s foreword continued...
12 | Brisbane Marketing Annual Report 2012-13
On a mission to create a more prosperous Brisbane
Brisbane Marketing’s programs and projects are projected to deliver $957 million in economic value to Brisbane
in the 2013-14 financial year, up from $698 million in 2012-13 and representing a return on investment of 45:1.
Progress will be reported quarterly.
Projects in focus
Brisbane Marketing’s brief is to successfully deliver
on all funded Unique Window of Opportunity
projects. These include:
• Asia Project The Brisbane in Asia Strategy
will continue to build brand awareness
and deliver $24.7 million to the economy in
2013-14 as well as increase Chinese student
enrolments and boost Chinese overnight
visitors to Brisbane by 15 per cent.
• Brisbane - Australia’s New World City will deliver $80 million in economic benefits
through the three-year Choose Brisbane
campaign active in Hong Kong, China and
elsewhere in Asia and throughout Europe,
and through domestic seasonal campaigns
and media coverage.
• Convention Strategy has a target of $60
million-plus in economic value by attracting
new conferences in key sectors and delivering
more than 450,000 delegate days.
• Digital Brisbane will strive to double
the number of companies selling online,
position Brisbane as a significant digital
player in the Asia Pacific and create an
improved entrepreneurial start-up culture.
It will also champion state-of-the-art digital
services for residents and visitors and drive
digitalbrisbane.com.au.
• 2014 G20 Leaders Summit will leverage
Brisbane’s reputation as Australia’s new world
city in the lead-up to an event which will have
the eyes of the world on Brisbane.
• South Bank will continue to showcase the
precinct as Brisbane’s premier recreational,
business and entertainment destination which
supports 5634 jobs and welcomes 10 million
visitors each year.
• Asia Pacific Screen Awards will deliver
the prestigious Asia Pacific Screen Awards in
Brisbane for 1000 film industry and corporate
guests, grow APSA’s international reputation,
manage the APSA Academy, increase
commercial sponsorship and leverage strong
economic benefits from Brisbane’s increased
networks in Asia.
• Brisbane Ambassador Program will
identify and appoint 2000 international
student advocates via the Brisbane
International Student Ambassador program
and six Lord Mayor’s International Student
Friendship Ceremonies, to aggressively
promote Brisbane globally as a leading study
destination.
• Global Resource Hub will leverage
Brisbane’s reputation as a resource sector
hub in the Asia Pacific region, generate jobs
and attract $12 million in new investment to
the city.
• The Hotel Development Strategy will
respond to research that highlights Brisbane’s
growing demand for new hotels by attracting
investment for two new hotel developments
and deliver an updated Brisbane hotel
investment guide.
• The Major Events Strategy will achieve
an economic impact of $65 million in 2013-
14. Strong growth is expected from events,
including the Brisbane International tennis
event and Cai Guo-Qiang: Falling Back to
Earth at the Gallery of Modern Art.
• The Brisbane Greeters Program will
recruit an extra 150 Greeters to welcome
visitors to Brisbane with free walking
“greets”, support at least one major city
event each quarter and help 4000 visitors.
This volunteer program will be increased in
preparation for the 2014 G20 Summit.
the year ahead
brisbanemarketing.com.au | 13
Additional projects under development include:
Australia TradeCoast will attract and retain
business investment, market and promote the
airport and port precinct, and coordinate long-
term land use and infrastructure planning to
support growth. ATC will evolve into a forum
for key infrastructure assets to support the
development and implementation of Brisbane’s
economic development plan.
Enable (Brisbane Innovation Scorecard) provides a forum to measure, nurture and
showcase innovation in Australia’s new world
city, bringing together industry, academia and
government.
Greater Brisbane Tourism Strategy will see
Brisbane and its regions (Somerset, Scenic Rim,
Logan City, Ipswich, Moreton Bay, Redlands and
Lockyer Valley) embark on a new approach to
marketing under a unified message.
Business units in focus:Investment and Industry Development
Our Investment Attraction unit will:
• Continue to attract interstate and overseas
investment where Brisbane is already globally
competitive or where gaps in key supply
chains exist.
• Continue to grow the key source markets of
Western Europe and North America and build
on engagement with Singapore, Hong Kong
and other Asian markets.
• Develop and implement capital attraction
strategy targeting Asian investors.
• Continue to competitively position Brisbane
as a global resources and energy hub, a
global centre of excellence for mining and
energy technologies, and the centre of
Queensland’s exploration industry.
• Continue to attract and grow Brisbane’s
hotel investment market by working
with government, industry associations
and private sector stakeholders to foster
investment leads and networks, generate
industry contacts, identify opportunities and
gain market intelligence to secure new hotel
supply for Brisbane.
• Support the Choose Brisbane campaign to
attract continued investment in Brisbane from
Asia.
• Leverage the lead-up to Brisbane hosting the
G20 to ensure Brisbane builds a reputation as
an attractive investment location.
Our Digital Brisbane unit will:
• Deliver the leading Digital Brisbane website
to provide online resources for small and
medium businesses to encourage them to
adopt their own digital strategies.
• Deliver the Digital Business Power-Up
program to support digitally advanced, active
and novice businesses.
• Deliver the Digital Start-Up Kick-Start
program supporting local start-ups, budding
entrepreneurs and young people.
• Support the Cyber City program, including
exploring a new “way-finder” system
integrating mobile digital technology with
signs, maps and city venues.
Brisbane as a destination for study, major events,
conventions and tourism (Visitation Economy)
Our Export unit will:
• Expand its membership and ambassador
programs, including hosting on-campus Lord
Mayor’s International Student Friendship
Ceremonies.
• Continue to promote the city’s profile via the
Brisbane in Asia strategy.
• Build its Study Brisbane social media
presence.
• Launch a new Study Brisbane International
Student Guide.
• Create a discount card for international
students.
the year ahead continued...
14 | Brisbane Marketing Annual Report 2012-13
• Leverage the Choose Brisbane campaign
and work with the Leisure Tourism unit on
attracting family visitors to graduation and
orientation events for international students.
• Work with Brisbane’s educational institutions
to engage their alumni in showcasing
Brisbane as a study destination.
Our Major Events unit will:
• Strive to achieve an economic impact of $65
million for the city through event leveraging,
marketing and development for new, existing
and home-grown events.
• Enact the major events strategy to ensure a
balanced calendar of events and strengthen
Brisbane’s events culture.
• Leverage Brisbane’s diverse events to drive
visitation and increase hotel occupancy,
particularly on weekends and holidays.
Our Convention Bureau unit will:
• Complete a market opportunity assessment
research project in conjunction with
stakeholders to drive the bureau’s three-year
strategy.
• Assist in growing convention opportunities
for the city.
• Support and work with our members to
maximise the economic value of confirmed
conferences to the city.
• Strive to exceed its target of $60 million
in economic value by attracting new
conferences in key sectors.
• Continue to offer members a range of
campaign opportunities that target business
event decision-makers and deliver return on
investment for their membership.
Our Leisure Tourism unit will:
• Increase leisure visitation through two major
domestic marketing programs focused on
high-profile events in both summer and
winter.
• Deliver targeted campaigns in China and New
Zealand to increase awareness of Brisbane’s
events calendar and leverage it as a major
trigger for visitation.
• Deliver an international program in key source
markets, including New Zealand, UK, US,
European and Southeast Asian markets.
• Work with Study Brisbane to maximise
visiting friends and relatives in the
international student market through
targeted programs, including graduation and
orientation itineraries.
Precinct Development
Our CBD Retail unit will:
• Continue marketing the CBD precinct as a
key retail, business, workforce and tourism
destination.
• Produce, program, facilitate and activate
more than 1000 events throughout the CBD,
including The City Sounds – Australia’s largest
free live music program – and Christmas in
The City.
• Increase stakeholder engagement through
business-to-business and industry strategies.
• Work with the property development industry
and local and state governments to ensure
a commercially viable precinct and ongoing
investment attraction.
Our South Bank unit will:
• Create places where locals want to be, places
which inspire creativity, co-creation and
socially conscious living.
• Attract events which generate economic
benefit to the city and deliver high levels of
return for South Bank businesses.
• Ensure the precinct remains relevant and
inclusive while setting a new standard
of experience immersion for the city in
partnership with our key partners.
brisbanemarketing.com.au | 15
key performance indicators
Brisbane Marketing Total Operating Costs
Budgeted Economic Benefit to the City
Verified Actual Economic Benefit to the City
100
200
300
400
500
600
700
800
140$23m
Brisbane Marketing Pty Ltd Economic Value to Brisbane for the 2012/13 Financial Year
$418m
$698mWhile the result is above target, a number of major investment projects were delayed from maturing in the final quarter of 2012-13, but will be reported as wins in the 2013-14 period.
Asia Project
Investment Attraction Leisure Tourism Convention Strategy
BANWC Strategy Major Events Study Brisbane
69
430
053
79
76
34
26
60
54
50
3510
16 | Brisbane Marketing Annual Report 2012-13
OUR BOARDIan Klug (Chairman), Company Director
Belinda Walters, Company Director
Sean Ryan, General Manager, Nova 106.9
Malcolm Hall-Brown, Company Director and Property Developer
Phillip Di Bella, Founder, Di Bella Coffee
David Askern, Company Secretary and Chief Legal Officer with Brisbane City Council
Liz Savage, Company Director and Aviation Industry Consultant
Adam Penberthy, Founder and Creative Director, Fresh
CORPORATE GOVERNANCEAudit and Risk Management CommitteeThe Audit and Risk Management Committee
supports and advises the Board on the Company’s
financial reporting, risk management function,
control environment and legal and regulatory
compliance. It has a clear operating charter and
seeks independent advice where appropriate.
The Board determines membership of the
Committee. The Audit and Risk Management
Committee consists of two Directors (currently
pending the appointment of a third member), all
of whom are independent.
The Committee met four times over the reporting
period.
The Audit and Risk Management Committee
comprises:
• Malcolm Hall-Brown (Chairman)
• Geoff Harley (departed Oct 2012)
• Peter Sherrie (departed Mar 2013)
• Adam Penberthy (joined Sep 2012)
• Ian Klug (ex-officio member)
Committee meetings are also attended by internal
and external auditors, the Chief Executive Officer,
the Director Finance, I.T. and Operations and
others, at the discretion of the Committee.
During the reporting period, the following
functions were reviewed by internal audit:
• Contracts Management
• Key Performance Indicators – Data Collection
& Reporting processes
• Delegation & Segregation of Duties
The structure and adequacy of Brisbane
Marketing’s insurances are evaluated every year.
The business risk register is reviewed quarterly
by the Executive Management team led by the
Chief Executive and Director of Finance, I.T. and
Operations, and presented to the Audit and Risk
Management Committee for review and approval.
Remuneration and Succession CommitteeThe Remuneration and Succession Committee
supports and advises the Board in relation to
Brisbane Marketing’s remuneration and succession
policies and practices.
The Board determines membership of the
Committee. The Remuneration and Succession
Committee consists of three Directors, all of whom
are independent.
The Committee met four times during the
reporting period.
The members of the Remuneration and
Succession Committee are:
• Geoff Harley (Chairman – departed Oct 2012)
• Liz Savage (Chairman - joined Oct 2012)
• Sean Ryan (joined Dec 2012)
• Belinda Walters
• Ian Klug (ex-officio member)
Committee meetings are also attended by the Chief Executive Officer, the Director Finance, I.T. and Operations, the Manager People and Culture and others at the discretion of the Committee.
18 | Brisbane Marketing Annual Report 2012-13
20 directors’ report
22 auditor’s independence declaration
23 statement of comprehensive income
24 statement of financial position
25 statement of changes in equity
25 statement of cash flows
26 notes to and forming part of the financial statements
37 directors’ declaration
38 independent auditor’s report
annual financial statements
brisbanemarketing.com.au | 19
BRISBANE MARKETING PTY LTD
DIRECTORS’ REPORTThe directors present their report together with
the financial report of Brisbane Marketing Pty Ltd
for the financial year ended 30 June 2013 and the
auditor’s report thereon.
DirectorsThe names of directors in office at any
time during or since the end of the
financial year were:
Ian Klug
Belinda Walters
Sean Ryan
Malcolm Hall-Brown
Phillip Di Bella
Liz Savage
(Commencement Date 15/10/2012)
Adam Penberthy
(Commencement Date 24/09/2012)
Anthony Hayes
(End Date 10/08/2012)
Geoff Harley
(End Date 31/10/2012)
Peter Sherrie
(End Date 31/03/2013)
Principal ActivitiesThe Company’s primary operations and
responsibilities are to drive long-term social and
economic benefits to Brisbane and the greater
Brisbane region.
Operating ActivitiesThe profit from ordinary activities of the Company
for the financial year ended 30 June 2013 was
$745,780, and the financial year ended 2012 was a
profit of $515,496.
Review of OperationsThe majority of revenue received by the Company
was by way of grants from the Brisbane City
Council. The majority of expenses incurred
were in relation to labour costs, advertising, and
promotional events.
Future DevelopmentsBrisbane Marketing Pty Ltd expects to continue
to create financial and social economic value for
the residents and businesses of Brisbane through
its various business activities. Its direction will
continue to be guided by the Brisbane Economic
Development Plan 2012 - 2032 and the Unique
Window of Opportunity report.
Directors’ BenefitsRelated party transactions are disclosed in note
17 of the financial statements.
Company DetailsThe Company is an Australian proprietary
company limited by shares, incorporated and
registered in Brisbane, Queensland.
The Brisbane City Council is the sole shareholder.
The registered address is:
Level 23, Brisbane Square
266 George Street
Brisbane QLD 4000
Australia
The principal place of business is:
Level 8, Roy Harvey House
157 Ann Street
Brisbane QLD 4000
Australia
20 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
DIRECTORS’ MEETINGSDuring the year, the number of directors’ meetings and number of meetings attended by each of the
directors of the company were:
Key Announcements During The Financial YearDuring the 2013 financial year Brisbane Marketing Pty Ltd paid a single dividend of $1,500,000 on 4
April, 2013.
Key Announcements Subsequent to The Financial YearThere have been no other matters or circumstances that have arisen since the end of the year that have
significantly affected or may significantly affect either:
i) The entity’s operations in future financial years
ii) The results of those operations in future financial years; or
iii) The entity’s state of affairs in future financial years
Auditor’s Independence DeclarationA copy of the auditor’s independence declaration as required under s.307C of the Corporations Act
2001 is set out on page 4.
Signed in accordance with a resolution of the directors.
..………….......................... ..…………..........................
Ian Klug Malcolm Hall-Brown
Chairman Director
27/9/2013 27/9/2013
Names Number eligible to attend Number attended
Ian Klug 10 10
Belinda Walters 10 10
Sean Ryan 10 8
Malcolm Hall-Brown 10 10
Phillip Di Bella 10 9
Peter Sherrie 7 6
Geoff Harley 4 4
Liz Savage 7 7
Adam Penberthy 8 7
Anthony Hayes 1 1
brisbanemarketing.com.au | 21
BRISBANE MARKETING PTY LTD
AUDITOR’S INDEPENDENCE DECLARATIONTo the Directors of the Brisbane Marketing Pty Ltd
This audit independence declaration has been provided pursuant to s.307C of the
Corporations Act 2001.
Independence DeclarationAs lead auditor for the audit of Brisbane Marketing Pty Ltd for the year ended 30 June 2013, I declare
that, to the best of my knowledge and belief, there have been –
a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b. no contraventions of any applicable code of professional conduct in relation to the audit.
P.J. FLEMMING CPA Queensland Audit Office
As Delegate of the Auditor-General of Queensland Brisbane
..…………..........................
22 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2013
Note 2013 $
2012 $ Restated
REVENUE
Ticket sales through Visitor Information Centre 2,085,918 2,035,747
Advertising, sponsorship and membership income 2,846,215 2,793,471
Grants, subsidies and sponsorships - Brisbane City Council
16,778,831 10,203,233
Grants, subsidies and sponsorships - Other 1,319,890 1 , 1 1 1 , 173
Interest income 320,661 315,523
Other income 244,759 166,015
Total Revenue - Core Operating Activities 23,596,274 16,625,162
Other Revenue
Contribution - Brisbane Convention & Visitors Bureau 3 - 249,537
Contribution - Australia TradeCoast Limited 3 452,368 -
Total Revenues 24,048,642 16,874,699
EXPENSES
Employee expenses 8,647,084 6,495, 717
Materials and services 4,306,171 4,168,357
Advertising and publications 7,519,363 4,026,590
Business development 2,647,703 1,446,006
Depreciation and amortisation 93,005 115,907
Bank charges 31,125 28,683
Loss on disposal of assets - 30,790
Auditing fees - Queensland Audit Office (audit of accounts)
31,909 22,491
Auditing fees - Brisbane City Council (internal audit) 26,502 24,662
Total Expenses 4 23,302,862 16,359,203
Net Surplus/(Deficit) 745,780 515,496
The above Statement of Comprehensive Income should be read in conjunction with the notes to and forming part of the financial statements set out on the attached pages.
brisbanemarketing.com.au | 23
BRISBANE MARKETING PTY LTD
STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2013
Note 2013 $
2012 $ Restated
2011 $
CURRENT ASSETS
Cash and cash equivalents 5 7,968,917 5,380,514 5,182,834
Trade and other receivables 6 674,861 346,197 530,056
Inventories 7 9,443 4,660 17,709
Prepayments 8 121,645 126,188 96,912
Total Current Assets 8,774,866 5,857,558 5,827,511
NON CURRENT ASSETS
Plant and equipment 9 270,234 313,974 242,680
Intangible assets 10 184,008 10,887 32,201
Total Non Current Assets 454,242 324,861 274,881
Total Assets 9,229,108 6,182,419 6,102,392
CURRENT LIABILITIES
Trade and other payables 11 4,489,708 2,228,471 2,258,389
Provisions 13 473,124 365,539 212,093
Deferred income 12 2,054,342 625,573 1,039,846
Total Current Liabilities 7,017,174 3,219,583 3,510,328
NON CURRENT LIABILITIES
Provisions 13 31,670 28,352 23,538
Deferred income 12 - - 149,537
Total Non Current Liabilities 31,670 28,352 173,075
Total Liabilities 7,048,844 3,247,935 3,683,404
Net Assets 2,180,264 2,934,484 2,418,988
SHAREHOLDER’S EQUITY
Contributed equity 1 1 1
Retained earnings 14 2,180,263 2,934,483 2,418,987
Total Shareholder's Equity 2,180,264 2,934,484 2,418,988
The above Statement of Financial Position should be read in conjunction with the notes to and forming part of the financial statements set out on the attached pages.
24 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2013
BRISBANE MARKETING PTY LTD
STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2013
2012/13 Note Total $
Contributed Equity
$
Retained Profits $
Balance at beginning of year 2,934,484 1 2,934,483
Net surplus/(deficit) 745,780 - 745,780
Dividends (1,500,000) - (1,500,000)
Balance at Year End 14 2,180,264 1 2,180,263
2011/12 Restated Note Total $
Contributed Equity
$
Retained Profits $
Balance at beginning of year 2,418,988 1 2,418,987
Net surplus/(deficit) 515,496 - 515,496
Dividends - - -
Balance at Year End 14 2,934,484 1 2,934,483
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
Note 2013 $
2012 $ Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 9,218,260 6,804,623
Proceeds from subsidies and grants 18,098,721 11,314,406
Cash payments in the course of operations (22,171,275) (17,393,981)
Interest received 320,661 315,523
GST paid to the Australian Tax Office (1,155,579) (646,213)
Net Cash Flows used in operating activities 15 4,310,788 394,358
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of plant and equipment (38,377) (196,678)
Acquisitions of intangibles 10 (184,008) -
Net Cash Flows used in investing activities (222,385) (196,678)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to Shareholder (1,500,000) -
NET (DECREASE) / INCREASE IN CASH HELD 2,588,403 197,680
Cash at the beginning of the year 5,380,514 5,182,834
Cash at the end of the year 5 7,968,917 5,380,514
brisbanemarketing.com.au | 25
1. Basis of Preparation
The financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Australian Accounting Standards and Interpretations (AASBs) and the Corporations Act 2001.
The financial statements were authorised for issue by the directors on 27 September 2013.
The financial report is prepared on an accruals basis. It is based on historical costs, and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. The accounting policies have been consistently applied, unless otherwise stated. The Company is a for-profit entity.
Amounts included in the financial statements and directors’ report have been rounded off to the nearest dollar.
2. Statement of Significant Accounting Policies
The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report.
(a) Income Tax The Company is exempt from Commonwealth Income Tax as a State/Territory Body under Section 24AT of the Income Tax Assessment Act 1936.
(b) Goods and Services Tax Revenues, expenses, intangibles, plant and equipment 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 of an item of 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 Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis. 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.
(c) Revenue Recognition Revenue from the sale of goods is recognised upon the delivery of goods to the customer, and measured at fair value.
Revenue from the rendering of services is recognised upon the delivery of the service to the customer, and measured at fair value.
Grants, subsidies and sponsorships are recognised on a systematic basis over the periods in which the entity recognises the expenses relating to the costs for which the grants were intended to compensate.
Interest revenue is brought to account when earned.
(d) Non-Monetary Benefits Non-monetary benefits represent benefits derived by the company for services received pursuant to the terms and conditions of various sponsorship agreements. Non-monetary benefits are recognised in the financial report at their estimated fair market value at time of consumption (revenues and expenses being shown gross and not offset).
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
26 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
(e) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.
(f) Trade and Other Receivables Receivables are due for settlement in 30 days and are carried as amounts due. An analysis of outstanding receivables is shown in Note 22.(d). The collectability is assessed at period end and an allowance is made for impairment.
(g) Inventories Inventories represent ticket stock and are measured at the lower of cost and net realisable value.
(h) Plant, Equipment and Intangibles Plant, equipment and intangibles are carried at cost, less where applicable, any accumulated depreciation. Items of plant, equipment and intangibles with a total cost of less than $1,000 are treated as an expense in the year of acquisition. All other items of plant, equipment and intangibles are capitalised and subject to impairment testing.
The depreciation and amortisation rates used for each class of asset are:
Depreciation rates: Furniture and fittings - Diminishing Value - Between 4 and 20 years Furniture and fittings - Straight line - Between 4 and 20 years Computer equipment - Diminishing Value - Between 3 and 4 years
Amortisation rates: Computer software - Straight Line - 2.5 years
Depreciation represents the consumption of the service potential embodied in the asset. To achieve systematic and rational allocation over their estimated useful lives. The estimated lives are reviewed annually.
(i) Trade and Other Payables Creditors and accruals represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. These amounts are unsecured and are usually paid within 30 days.
(j) Employee Benefits Employee benefits relate to amounts expected to be paid to or on behalf of employees for wages earned, bonuses, annual leave, long-service leave, workers’ compensation and superannuation.
Accrued annual leave is recognised in other payables and represents the amount which Brisbane Marketing Pty Ltd has a present obligation to pay, resulting from employees’ services provided up to balance date. The accrual has been calculated on remuneration rates expected to be paid when the liability is settled and includes related on-costs.
The provision for long-service leave represents the present value of the estimated future cash outflows to be made by the company resulting from employees’ services provided up to balance date.
The provision comprises amounts that the company has a present obligation to pay, resulting from employees’ services provided up to balance date and an estimate of future obligations taking into account future increases in wage and salary rates, periods of service and experience of employee departures. Related on-costs have also been included in the provision.
Contributions are made by the company to an employee superannuation fund and are charged as an expense when incurred.
brisbanemarketing.com.au | 27
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
2013 $
2012 $ Restated
3. Revenue
Total Revenue 24,048,642 16,874,699
(a) Contribution - Brisbane Convention & Visitors Bureau - 249,537
Proceeds from Brisbane Convention & Visitors Bureau Limited. These funds are to be held in restricted retained earnings, reserved for future operational activities within the convention attraction industry.
(b) Contribution - Australia TradeCoast Limited 452,368 -
Proceeds from Australia TradeCoast Limited. These funds are to be held in restricted retained earnings, reserved for future operational activities within the promotion and development of Australia TradeCoast. Refer note 18.
4. Expenses
Total Expenses 23,302,862 16,359,203
Included in Materials and Services is the cost of goods sold through the Visitor Information Centre amounting to:
1,792,132
1,754,696
(k) Correction of Prior Period Accounting ErrorManagement of Brisbane Marketing Pty Ltd, whilst preparing the financial statements for the period ending 30 June 2013, noted that third party trust accounts for the period ended 30 June 2012 should have been recorded off statement, as the company does not own or control these accounts.
Retrospective restatement for the period ending 30 June 2012 has occurred to correct the error in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The following is an extract of the most recent financial statements which reconciles the reported to the restated.
Previously Reported Adjustment 2012 Restated
Revenues
Contribution - City Bid Fund (1,852,655) 1,852,655 -
Expenses
Advertising and publications 4,055,841 (29,251) 4,026,590
Assets
Cash and cash equivalents 7,232,682 (1,852,168) 5,380,514
Trade and other receivables 346,683 (487) 346,197
Liabilities
Trade and other payables (2,257,722) 29,251 (2,228,471)
28 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
2013 $
2012 $ Restated
5. Cash and Cash Equivalents
Current
Cash on hand 2,500 2,500
Cash at bank
Cheque Account 1,215,735 1,060,945
QTC - Capital Guaranteed Fund 5,585,980 159,916
Suncorp - Term Deposit - 4,000,000
Visitor Information Centre Trust Account/Client Travel Account 149,447 157,153
NAB - Term Deposit 1,015,255 -
7,968,917 5,380,514
6. Trade and Other Receivables
Current
Trade 658,953 243,204
Income accrual 15,908 102,993
674,861 346,197
7. Inventories
Current
Stock of tickets 9,443 4,660
8. Prepayments
Current
Prepayments 121,645 126,188
The company operates a Client Travel Account in which amounts are held pending payment of operators. This fund is maintained in accordance with the Travel Compensation Fund Guidelines.
In 2011/12 a separate bank account (CBA - City Bid Fund Joint Account) was set up, and is administered by Brisbane Marketing Pty Ltd on behalf of the members of the fund. For the financial year ended 30 June 2013 the balance held in trust by Brisbane Marketing Pty Ltd on behalf of the City Bid Fund was $1,870,003 (2012: $1,852,168). These funds are not included in the above as they are trust monies.
Excess funds are invested in the QTC Capital Guaranteed Cash Fund account and Term Deposit accounts with National Australia Bank and Suncorp.
brisbanemarketing.com.au | 29
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
2013 $
2012 $ Restated
9. Plant and Equipment(a) Plant and Equipment
Computer equipment –
At cost 263,715 255,715
Accumulated depreciation (214,030) (167,085)
49,685 88,630
Office furniture and equipment –
At cost 117,929 116,338
Accumulated depreciation (83,401) (74,617)
34,528 41,721
Fixtures and fittings –
At cost 221,828 193,041
Accumulated depreciation (64,191) (42,532)
157,637 150,509
Motor Vehicle -
At cost 37,845 37,845
Accumulated depreciation (9,461) (4,730)
28,384 33,115
270,234 313,975
2013 $
2012 $ Restated
10. Intangibles(a) Intangibles
Computer software –
At cost 265,507 81,499
Accumulated amortisation (81,499) (70,612)
184,008 10,887
(b) Movements in Carrying Amounts
ComputerEquipment
$
Office Furniture & Equipment
$
Fixtures &Fittings
$
Motor
Vehicle $
2013 Total
$
2012
Restated $
Balance at the beginning of year
88,630 41,721 150,509 33,115 313,975 242,680
Additions 8,000 1,590 28,787 - 38,377 196,678
Disposals/write-offs - - - - - (30,789)
Depreciation expense (46,945) (8,783) (21,659) (4,731) (82,118) (94,594)
Carrying amount at the end of year
49,685
34,528
157,637
28,384
270,234
313,975
30 | Brisbane Marketing Annual Report 2012-13
(b) Movements in Carrying Amounts
Computer Software
Total 2013
$
Total 2012
$ Restated
Balance at the beginning of year 10,887 10,887 32,200
Additions 184,008 184,008 -
Disposals - - -
Amortisation expense (10,887) (10,887) (21,313)
Carrying amount at the end of year 184,008 184,008 10,887
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
2013 $
2012 $ Restated
11. Trade and Other Payables
Current
Trade creditors 3,691,846 1,701,672
Other creditors 797,862 526,799
4,489,708 2,228,471
12. Deferred Income
Current
Sales income in advance 1,817,734 524,317
Membership subscriptions in advance 236,608 101,256
2,054,342 625,573
13. Provisions
Current
Employee benefits 473,124 365,539
Non-Current
Employee benefits 31,670 28,352
504,794 393,891
Number of full-time equivalent employees at year end 87.8 61.3
brisbanemarketing.com.au | 31
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
14. RETAINED PROFITS
Brisbane Marketing Pty Ltd’s retained profits are subject to a number of restrictions which limit amounts available for future distribution or investment into operations.
2013 $
2012 $ Restated
Restricted Retained Profits(i) Retained Profits - Convention Bids
Balance at the beginning of year 328,534 384,589
Current period expenditure (296,490) (251,179)
Current period revenues 74,995 195,124
Balance at end of year 107,039 328,534
(ii) Retained Profits - BCVB*
Balance at the beginning of year 199,537 -
Current period expenditure (100,000) (50,000)
Current period revenues - 249,537
Balance at end of year 99,537 199,537
(iii) Retained Profits - Australia TradeCoast Limited
Balance at the beginning of year - -
Current period expenditure - -
Current period revenues 452,368 -
Balance at end of year 452,368 -
Total Restricted Retained Profits 658,944 528,071
Retained Profits 1,521,319 2,406,412
Total Retained Profits 2,180,263 2,934,483
* Brisbane Convention & Visitors Bureau
15. Cash Flows Information
Reconciliation of profit to the net cash flows used in operating activities:
Net surplus/(deficit) 745,780 515,496
Non-cash flows in profit from ordinary activities
Depreciation & amortisation 93,005 115,907
Write-off of assets - 30,790
Changes in assets and liabilities:
(Increase)/decrease in
Trade and other receivables (328,664) 183,860
Inventories (4,783) 13,049
Prepayments 4,542 (29,276)
Increase/(decrease) in
Trade payables and other payables 2,261,237 264,421
Deferred income 1,428,768 (563,810)
Provisions 110,903 (136,079)
Net cash flows used in operating activities 4,310,788 394,358
32 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
16. Segment Reporting
The Company operates predominantly in one geographical segment and one industry segment as Brisbane's economic development board.
17. Related Party Transactions
Directors
The names of persons who have held the office of director during the year are:
Ian Klug Peter Sherrie Sean Ryan Malcolm Hall-Brown Belinda Walters Geoff Harley Phillip Di Bella Adam Penberthy Anthony Hayes Liz Savage
2013 $
2012 $
(a) Directors’ remuneration
Directors’ Fees 248,456 215,516
Superannuation 15,431 14,447
263,887 229,963
(b) Key management personnel remuneration
Short-term employee benefits 1,466,865 1,358,168
(c) Transactions with the Brisbane City Council, the ultimate and Australian controlling entity
During the year, Brisbane City Council provided grants and subsidies to Brisbane Marketing Pty Ltd with a total value of $16,778,831 (2012: $10,203,233).In addition, the amounts for goods and/or services supplied by Brisbane City Council based on normal terms and conditions to the company were as follows:
Car lease - 933
Cleaning 564 2,327
Advertising 1,318,000 -
Insurance services 8,579 6,238
Internal audit services 26,502 24,662
Labour hire 10,508 22,109
Legal services 8,570 13,330
Parking 6,741 4,964
Promotional services 84,685 36,759
Tickets - City Sights Tours 105,165 94,315
Venue hire 51,996 6,179
Work cover costs 10,333 13,353
1,631,643 225,169
The advertising expense above relates to an advertising arrangement between JCDecaux CityCycle Australia Pty Ltd and Brisbane City Council.
In addition, the Company leases office spaces from the City of Brisbane Investment Corporation Pty Ltd for a period of 7 years from November 2011. This company is also a 100% owned and controlled entity of Brisbane City Council. Total rent expensed during the year in relation to this lease amounted to $502,176 (2012: $395,097). This transaction was based on normal commercial terms and conditions.
brisbanemarketing.com.au | 33
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
17. Related Party Transactions (Continued)
(d) Transactions with directors / officers / related parties
Director / Officer
Related Party Transaction Purchases $
Sales $
Belinda Walters
Consultant
Review of Convention Bureau strategy
5,123
Phillip Di Bella
Di Bella Coffee Membership and sponsorship 4,215
Griffith University Performance fees and sponsorship
15,579 3,678
Tourism and Events Queensland
Grants and promotional services 18,975 1,311,053
Sean Ryan Nova 106.9 Advertising promotional activities
8,723
John Aitken*
Australia TradeCoast Limited
Proceeds from closure of company (Note 3.b)
452,368
39,677 1,780,037
*In his capacity as a director of Australia TradeCoast Limited (refer note 18)
18. Events Subsequent to Reporting Date
From 1 July 2013, Brisbane Marketing was assigned the lead role and responsibility for the marketing and activation of the South Bank precinct. Staff who perform the operating activities are seconded to the company from City Parklands Transition Services Pty Ltd, a subsidiary of Brisbane City Council.
Australia TradeCoast Limited, a company limited by guarantee, consisting of members from State Government, Brisbane City Council, Brisbane Marketing, Port of Brisbane, as well as Brisbane Airport Corporation, was formed in 2002 to promote the interests of the ATC region. During the 2012/13 financial year a decision was taken by the ATC Board to cease trading, and to wind up the entity. From 1 July 2013, Brisbane Marketing was assigned the responsibilities for strategic projects within the Australia TradeCoast precinct. To this end the Australia TradeCoast Ltd cash balance of $452,368 was transferred to Brisbane Marketing Pty Ltd, to be applied to future projects as agreed by the Australia TradeCoast Advisory Board.
19. Contingencies
Brisbane Marketing Pty Ltd has a Security Deposit Guarantee to the amount of $199,606 in favour of ING Management Ltd for lease of building premises.
20. Commitments
(a) Lease Rental Commitments
The operating lease rentals of property, plant and equipment contracted for at year ended 30 June 2013 but not provided in the financial statements are payable as follows:
34 | Brisbane Marketing Annual Report 2012-13
2013 $
2012 $
Not later than 1 year 515,908 491,604
Later than 1 year but not later than 5 years 2,543,626 2,221,813
3,059,534 2,713,417
(b) Contractual Commitments in respect of Operating Expenditure
Contractual commitments at balance sheet date but not provided for in the financial statements are payable as follows:
Not later than 1 year 35,514 35,514
Later than 1 year but not later than 5 years 85,826 121,340
121,340 156,854
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
21. Economic Dependency
Brisbane Marketing’s activities are dependent upon grant funding from the Brisbane City Council. Funding support has been agreed to by the Council for the 2013-2014 financial year.
22. Financial Instruments Disclosure
(a) Financial Risk Management Objectives and Policies
The Board provides written policies for overall risk management.
Risk management is carried out by the executive management team, and risk management activities are reviewed by Brisbane Marketing’s Audit and Risk Management Committee.
(b) Liquidity risk
Liquidity risk refers to the ability of an entity to meet its obligations associated with financial liabilities. The Company manages liquidity risk by continously monitoring cashflows. The following sets out the maturity of the Company’s Financial Liabilities.
2012/13
Note Floating Interest Bearing
$
Non-Interest Bearing
$
Total
$
Financial Liabilities
Trade & other payables 11 - 4,489,708 4,489,708
Total financial liabilities - 4,489,708 4,489,708
2011/12
Note Floating Interest Bearing
$
Non-Interest Bearing
$
Total
$
Financial Liabilities
Trade & other payables 11 - 2,228,471 2,228,471
Total financial liabilities - 2,228,471 2,228,471
brisbanemarketing.com.au | 35
BRISBANE MARKETING PTY LTD
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2013
22. Financial Instruments Disclosure (Continued)
(c) Interest Rate Risk
Interest rate risk refers to possible fluctuations in the values of financial instruments as a result of changes in market rates. Exposure to interest rate risk arises predominantly from assets and liabilities bearing variable interest rates as the Company intends to hold financial assets and liabilities to maturity.
Interest rate sensitivity The following table details the Company’s sensitivity to an expected 1% maximum fluctuation in interest rates if all other variables were held constant:
Increase / (Decrease) in Operating Capability and Equity 2013 $
2012 $ Restated
1% increase in interest rate 79,689 53,805
1% decrease in interest rate (79,689) (53,805)
(d) Credit Risk
Credit risk is the risk that a counterparty fails to meet its obligation and the Company’s exposure is limited to cash and receivables.
The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount of those assets, net of any allowance for impairment, as disclosed in the Statement of Financial Position and notes to the financial statements.
The Company pays its debts in accordance with the entity’s credit policies and management of cash flows.
The following table represents an analysis of the age of the Company’s financial assets:
Trade and Other Receivables 2013 $
2012 $ Restated
Less than 30 days 594,939 90,260
Past due 1 - 30 days 21,370 203,702
31 - 60 days 32,900 18,889
61 - 90 days 18,412 7,534
over 90 days 7,240 25,812
Total 674,861 346,197
Trade and Other Receivables have been assessed for impairment
(e) Fair Values
Due to the nature of cash, accruals, other financial assets and liabilities, their net fair value approximates their carrying value.
36 | Brisbane Marketing Annual Report 2012-13
BRISBANE MARKETING PTY LTD
DIRECTORS’ DECLARATIONIn the opinion of the directors of Brisbane Marketing Pty Ltd:
1. The financial statements and notes, as set out on pages 23 to 36, are in accordance with the Corporations Act 2001, including:
a) giving a true and fair view of the Company’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and
b) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.
2. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
On behalf of the Board
..………….......................... ..…………..........................
Ian Klug Malcolm Hall-Brown
Chairman Director
27/9/2013 27/9/2013
brisbanemarketing.com.au | 37
..…………..........................
P.J. FLEMMING CPA Queensland Audit Office
As Delegate of the Auditor-General of Queensland Brisbane
Report on the Financial Report
I have audited the accompanying financial report of Brisbane Marketing Pty Ltd, which comprises the statement of financial position as at 30 June 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Directors’ declaration.
Directors’ Responsibility for the Financial Report
The Directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.
In conducting the audit, the independence requirements of the Corporations Act 2001 have been complied with. I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors of Brisbane Marketing Pty Ltd, would be in the same terms if given to the Directors as at the time of this auditor’s report.
Opinion
In my opinion –
The financial report of Brisbane Marketing Pty Ltd is in accordance with the Corporations Act 2001, including -
(i) giving a true and fair view of the company’s financial position 30 June 2013 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Other Matters - Electronic Presentation of the Audited Financial Report
Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.
To the Members of Brisbane Marketing Pty Ltd.
BRISBANE MARKETING PTY LTD
INDEPENDENT AUDITOR’S REPORT
38 | Brisbane Marketing Annual Report 2012-13
Level 8 Roy Harvey House, 157 Ann Street, BRISBANE CITY QLD 4000
PO Box 12260, George Street BRISBANE CITY QLD Australia 4003
T: +61 7 3006 6200 F: +61 7 3006 6250
brisbanemarketing.com.au