n meteorology, the term “sun showers” describes theweather phenomenon of simultaneous sunshine andrain. Our 2009-10 season felt like that: thrilling artistichighs, stellar reviews and expanding outreach initiatives

alternated with expense cuts, somber fiscal forecasts and the reality of a still-challenging economy. Our work was to balance these forces, taking full advantage of the goodweather and mitigating the rest.

The Orchestra opened the season in a blaze of sunshine,hosting live recording sessions with the great pianistStephen Hough, and concluded the year with anothermountain-top experience: a sold-out tour of Europeanfestivals that included high-visibility performances at theEdinburgh Festival, the Amsterdam Concertgebouw andarguably the world’s greatest music festival, the BBC Proms.

Over the course of the season, we also launched apartnership with BBC Radio 3, which shares our broadcastswith millions of listeners in the UK. We inaugurated thenew Music On Demand program and released threerecordings to high accolades. In March, when MusicDirector Osmo Vänskä and the Orchestra performedKullervo at Carnegie Hall, the reviews that followed werethe finest an orchestra could dream of, including The NewYorker’s assessment that on this evening the MinnesotaOrchestra seemed like “the greatest orchestra in the world.”Always our pride, our Young People’s Concerts—nowalmost a 100-year tradition—and Target Free Familyprograms shared the joy of music-making with 65,000youth and families.

On the financial front, we anticipated that Fiscal 2010would be as challenging as its predecessor, and we took aproactive approach to adversity. We cut expenses by $1.6million from the previous year and set realistic revenueexpectations for the season—which helped us weather anearly $1 million decrease in fundraising revenue. On theticket sales side, we strategically decreased our total numberof concerts to help achieve a modest increase in our totalpaid capacity for the year, which was 72 percent. Overall,rigorous planning, careful investment management andsignificant expense cuts have yielded a balanced operatingresult for our fourth consecutive season.

As we assess what weather the skies will bring us next,however, we see clearly that the Minnesota Orchestra—like allmajor orchestras around the nation—is facing structuralfinancial issues which are exacerbated by this economy andwill require bold new solutions. To address these issues, wewill engage in a strategic planning process in the season ahead,the goal of which is to create a sustainable business model thatmarries artistic greatness and long-term financial stability.

Finally, we note with pride and gratitude one other vital spot of sunshine over the last season: not only did KPMBArchitects unveil a visionary design for a renovated andexpanded Orchestra Hall, but our outstanding community—all of you—stepped forward to help us raise $43 milliondollars toward its construction in 2013, and our fundraisingcontinues with gusto! We offer you our utmost thanks andappreciation, along with our ongoing pledge to provideresponsible stewardship and great performances for ourcommunity, long into a bright-sky future.

A Letter from the Chair and the President

“The most satisfying [relationship in America] musically is this partnership between Vänskä and Minnesota.”

— The Mail on Sunday [London], September 5, 2010

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Michael HensonPresident and CEO

Richard DavisChair of the Board

Tumultuous applause greeted theMinnesota Orchestra and Osmo Vänskäthroughout an August tour of European

festivals. The public’s enthusiasm wasmore than matched by critics’

extraordinary praise for rivetingperformances of masterworks including

Beethoven’s Ninth Symphony, aspectacular event at the BBC Proms.

Tumultuous applause greeted theMinnesota Orchestra and Osmo Vänskäthroughout an August tour of European

festivals. The public’s enthusiasm wasmore than matched by critics’

extraordinary praise for rivetingperformances of masterworks including

Beethoven’s Ninth Symphony, aspectacular event at the BBC Proms.

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“What a stamping and a stomping and a whistling. The Prommers simply wouldn’t let the

Minnesota Orchestra go.” — The Times [London], August 31, 2010

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2D E C E M B E R 2010 M I N N E S OTA O R C H E STRA

“[Osmo Vänskä and] the Minnesotans…delivered a performance of uncanny, wrenching power, the kind you hear once or twice a decade…The Minnesota Orchestra sounded, to my ears,like the greatest orchestra in the world.”— The New Yorker [Alex Ross], March 22, 2010

“Minnesota scores knockout”— ClassicsToday.com, March 1, 2010

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a superlative seasonCharacterizing a season of great achievementswas a stunning Carnegie Hall performance ofSibelius’ epic Kullervo in March. Osmo Vänskäand the Minnesota Orchestra collaboratedwith vocal soloists Päivi Nisula and HannuNiemelä and with the YL Male Voice Choir ofFinland to deliver a magical, intenseexperience destined to become legendary.

In January, a Stravinsky Festival marked by boththe Minnesota Orchestra and the Saint Paul ChamberOrchestra celebrated the composer’s genius withlandmark works including The Rite of Spring—forwhich the two orchestras took the Orchestra Hall stagetogether for a rare shoulder-to-shoulder performance.

At a community gathering hosted by Board Chair Richard Davis, KuwabaraPayne McKenna Blumberg Architects revealed a visionary design for theplanned renovation of Orchestra Hall—sparking excitement for the manyways it achieves aesthetic and practical goals. A bonding bill approved by theState Legislature assisted in raising funds for the project.

a superlative season

3 M I N N E S OTA O R C H E STRA AN N UAL R E P O RT 200 9-10

Great Performances

History was made whenthe BBC chose to air sixMinnesota Orchestrasubscription concerts on itsflagship Performance on 3program, heard throughoutthe British Isles. Key to the

collaboration wasPresident and CEOMichael Henson.

Osmo Vänskä and the Orchestra drew capacity audiences and rave reviews during a late-Augusttour of European musical festivals, starting with back-to-back BBC Proms performances atLondon’s Royal Albert Hall. Cellist Alisa Weilerstein performed Elgar at Usher Hall during the Edinburgh Festival, and violinist Gil Shaham delivered flourishes in an encore at theAmsterdam Concertgebouw. Thousands of fans at home followed the events via eTour postings;

hundreds of thousands more heard each of the Proms concerts viabroadcasts and streaming, thanks to the Orchestra’s vibrant partnershipwith the BBC, Minnesota Public Radio and American Public Media.

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“The Minnesotans are among the world’s most cultivated bands.And under Vänskä…their Beethoven Ninth was everything onehopes for but seldom hears in this towering masterpiece.”

— The Sunday Telegraph [London], September 5, 2010

triumph on tour

the future unveiled

“Spontaneity and passion…”— BBC Music Magazine,

September 2010

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Principal Second Violin Gina DiBello chose Mozart for hersubscription concert solo debut in February; April broughtPrincipal Flute Adam Kuenzel’s world premiere performancesof Manuel Sosa’s Eloquentia with the Orchestra and

Osmo Vänskä. Sarah Kwak, Anthony Ross, WendyWilliams, Burt Hara and Kathy Kienzle also took solo honors.

D E C E M B E R 2010 M I N N E S OTA O R C H E STRA

in the solo spotlight

Revered pianist Garrick Ohlsson, a Chopin expert, plumbed rich depthsin a concert celebrating the 200thanniversary of the composer’s birth.

Ingrid Fliter (top) and Simone Dinnerstein were cheeredfor their Orchestra Hall debuts, and Stephen Hough completed

a two-disc set of live, in-concert recordings of Tchaikovsky’scomplete piano-orchestra works.

5 M I N N E S OTA O R C H E STRA AN N UAL R E P O RT 200 9-10

“Orchestra delivers divinely”— Star Tribune, March 1, 2010

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music in the community

“There was a prevailingsense from this powerfulgroup of people that newmusic is truly a major partof this orchestra andcommunity.”— Spencer Topel, NewMusicBox.org blog,

November 20, 2009

“Truly one of the great artisticpleasures of a lifetime”

— Tim Gihring, Front and Center blog, March 25, 2010

Great Performances

Forging a new path with electronic media, the Orchestra made its music more availablethan ever before—and some 5,000 households took advantage of Music On Demand,downloading concert performances of selected symphonic masterpieces. The innovation was cheered by first-time listeners as well as longtime fans.

new media, newly accessible

Acclaim greeted Hyperion’s release of the Tchaikovsky set—as it did the BIS release of Bruckner’sFourth Symphony and the

eagerly anticipated box set of thecomplete Beethoven symphonies.

The disc of Beethoven’s Secondand Seventh Symphonies drew a

new honor—a nomination for aClassic FM Gramophone Award.

“Rapturous applause follows,every clapdeserved.” — The Times [London],March 26, 2010,reviewing the Tchaikovsky recordings

recording genius

“The playing is simply glorious…”— Audiophile Audition, July 18, 2010, reviewing the Bruckner recording

Versatile conductor and podium communicator Sarah Hicks took ona significant new post, Principal Conductor of Pops and Presentations,

while Courtney Lewis joined the artistic roster as Assistant Conductor.The lively Inside the Classics series, co-hosted by Hicks and

violist Sam Bergman, drew enthusiastic audiences—especially to a program focusing on Beethoven’s Pastoral Symphony.

Musical creativity was celebrated—and composers’ professional developmentnurtured—throughout the Orchestra’s ninth Composer Institute, directed by Aaron Jay Kernis. In addition to seminars, readings and workshops withOrchestra members, the week included intensive one-on-one sessions. Working closely with Kernis was composer participant Kathryn Salfelder;

Spencer Topel reviewed details of his score with Osmo Vänska. The Orchestrapremiered great new music at the Institute’s culminating event, the annual FutureClassics concert, and other subscription programs—including major new worksby Kalevi Aho, Sally Beamish, Stanislaw Skrowaczewski and Manuel Sosa.

D E C E M B E R 2010 M I N N E S OTA O R C H E STRA 6

sounds of the future

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Great Performances

Starring both at the podiumand at the keyboard, SommerfestArtistic Director Andrew Littonled his eighth glorious festival, collaborating with guests including violinistVadim Gluzman and with tenor Carl Tanner and soprano Barbara Shirvis in a superb semi-staged Tosca. Another highlight: songstress Lizz Wright in a Piper Jaffray Jazz at Orchestra Hall event that also featured composer-clarinetist Evan Christopher premiering Treat it Gentle Suite; ArtisticDirector of Jazz Irvin Mayfield joined on trumpet.

D E C E M B E R 2010 M I N N E S OTA O R C H E STRA 8

“With Tosca, Sommerfest ends on a rich, satisfying note”— Star Tribune, July 26, 2010

Inside Orchestra Hall andoutside on Peavey Plaza, July’s Target Arts and Wonderperformances enthralled allages. Outdoor events alsoincluded Symphony for theCities concerts in Winona as well as the communities of Plymouth, Excelsior andHudson.

“The orchestra plays with a golden tone,rousing rhythms and a heavenly spirit.”

— La Crosse Tribune, July 19, 2010

a Symphony Ball saluteThe “SimplyUnforgettable”Symphony Ball 2010was beautifullychaired by GeorgiaThompson; OsmoVänskä was among the hundreds of happy guests. The Ball,which grossed more than $980,000 to support theOrchestra’s education and outreach programs, also paidtribute to Honorary Chairs Nancy and John Lindahl.

The young patrons group Crescendo Project took advantage of the Orchestra’s diverse offerings,engaging music lovers with the Orchestra in relaxed social settings linked to concerts. Enjoying a post-concert reception were Josh Rolnitzky, Pam Kaercher, Derrick Banks and Katie Imholte.

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holiday charm

“…A bewitching Hansel and Gretel…”

— Pioneer Press, November 27, 2009

Ushering in the holiday season were magicalperformances of Hansel and Gretel, with siblingsChristina Baldwin and Jennifer Baldwin Pedenshining in the roles of the fairy-tale brother andsister. Audiences also flocked to “ScandinavianChristmas” concerts and performances of Handel’sbeloved Messiah, featuring the Minnesota Chorale.

“‘Video Games Live’…rocked my world.”— Pioneer Press, April 11, 2010

In Sarah Hicks’ first season as principalpops conductor, the U.S. Bank PopsSeason encompassed a broad spectrumof music. Patti LuPone wowed fans, as did Pops Conductor Laureate Doc Severinsen,who dazzled in “Jingle Bell Doc” as well as anevening of Latin music with El Ritmo de la Vida.Special presentations also brought superb musiciansto Twin Cities audiences, including Brazilian legend

Gilberto Gil, singer-songwriter Ben Folds and a “Video Games Live” event that

featured game footage on giant video screens.

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“…Another electrifyingperformance…”

— Star Tribune, July 18, 2010 the wide world of pops

music in the community

7 M I N N E S OTA O R C H E STRA AN N UAL R E P O RT 200 9-10

Partnerships far and wide—with artistic,educational and civic organizations—contributed to the success of YoungPeople’s Concerts, the Adopt-A-Schoolprogram, UPbeat Metro and UPbeatGreater Minnesota.

Young People’s Concerts and Target Family Free Concerts included “American Salute” concertsin November and Hansel and Gretel in November; students attending January YPs received aspecial video greeting from Minnesota native Pete Docter, director of the hit animated film Up, and were treated to the world premiere of an orchestral suite from the film.

Maureen Armstrong and Judy Ranheim ably chaired the SchoolMusic Auditions in January, which drew applications from 47 talentedyoung musicians in grades 7 to 12. Finalists received scholarship supportand performance opportunities, with first prize being the privilege ofperforming with theMinnesota Orchestra.

Reaching out to communitiesacross the state, UPbeatGreater Minnesota broughtmultiple offerings tailored to each locale—schoolpresentations, chamber music residencies, clinics and public concerts.

In Bemidji, violinist Catherine Schubilske worked with high school students, as did brass players Michael Gast, Robert Dorer, Charles Lazarus, Douglas Wright and Steven Campbell. Closer to home, within the Orchestra’s Community Links program,residents at the Hennepin County Women’s Adult Corrections Facility who had readThe Soloist were treated to a conversation and performance by Katja Linfield, whoplayed the Bach Cello Suite that figures prominently in the book.

YPSCA enabled all Robbinsdale School Districtthird-graders to attend a Young People’s Concert—

after being prepared for it in theirown schools by the inspiring

Vecchione-Erdahl duo.Support from Musical Mentors

and other donors, alongwith funds raised fromcandy sales at Sounds of Cinema Festivalperformances, helpedprovide tickets andbusing.

ypsca young people’s symphony concert association

Volunteer Opportunities

WAMSO volunteers are the heart and soul of its musiceducation programs—and they are essential to manyMinnesota Orchestra events. This year WAMSO provided:

• 105 Coffee Concert volunteers (ushers, hostesses, bus captains)

• 72 volunteers for Kinder Konzerts and Kinder Konzerts on the Road

• 65 volunteers for the Symphony Ball

• 45 volunteers for Target Free Family Concert lobby activities

• 15 volunteers for the Fanfare Evening Usher program

Education and Outreach | Volunteers

10D E C E M B E R 2010 M I N N E S OTA O R C H E STRA9 M I N N E S OTA O R C H E STRA AN N UAL R E P O RT 200 9-10

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music in the communityMembers of YPSCA, the Minnesota Orchestra’s oldest volunteer organization, supported music education throughmany activities linked to Young People’s Concerts—and began preparing to celebrate their centennial in 2011-12.

To receive WAMSO’s annual report, with moreinformation on season highlights, call (612) 371-5654.

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“UPbeat levels the artsplaying field for allstudents…. It’s an eventin itself for them to passthrough the doors ofOrchestra Hall and ownthe music and the place.”

— Aura Wharton-Beck, principal, Jenny Lind Elementary School, Minneapolis

Orchestra violinist Rebecca Corruccini worked with Joshua Holritz at a side-by-sidewith the University of Minnesota Symphony Orchestra, one of many Minnesota

Orchestra-U of M collaborationssupported by the Pennock endowment.Student orchestras performing prior toMinnesota Orchestra subscriptionconcerts included the Andover HighSchool Orchestra with conductor

Nancy Stutzman.

young and UPbeat

“The music made me feel confident and strong!” — Third-grader, Stillwater Area Schools, November 2009

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More than 50,000 eager students attended theseason’s 28 Young People’s Concerts, guided byYPSCA volunteer ushers who expertly filled, thenemptied and refilled Orchestra Hall according toa tightly choreographed plan. Organizing the 52volunteer ushers were Herb and Alice Cederberg.

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Celebrating its 60th year of partnership with the Minnesota Orchestra, WAMSOsupported the Guaranty Fund with a gift of $50,000 for general operations andcommitted $60,000 to the Building for the Future campaign.

WAMSO continued to provide superb music education for children and adults.Volunteers donated more than 3,400 hours in direct service to the MinnesotaOrchestra, and WAMSO’s Kinder Konzerts in Orchestra Hall and on the Roadreached more than 8,000 children, parents and teachers.

Collaborating with the Orchestra and Target topresent pre-concert activities at Target FreeFamily Concerts, WAMSO made it possible forfamily members to learn more about musicalinstruments. Mike Forbes helped eageryoungsters touch and play stringed instruments.

Leading off WAMSO’s second year of Accent –Music Appreciation for Adults was Burt Hara, the Orchestra’s principal clarinet. Featured insubsequent programs were Norbert Nielubowski,Adam Kuenzel, Sarah Kwak and Anthony Ross.

n a year of continued economic ups and downs, I’m pleased tonote that the Minnesota Orchestra has maintained a steadycourse and achieved a balanced operating result for the fourthconsecutive season. Key to this result: assessing realistically our

revenue potential in an uncertain economy, and continuing tomake significant budget cuts to reduce our operating expenses.

In the latter area, our administrative team deftly continues to findmore efficient ways to deliver our concert product. Overall,rigorous budget management reduced our total expenses by $1.6 million, or 5 percent, over the previous year. The Board isgrateful to our staff for continuing the pay cuts undertaken inFiscal 2009 and to our musicians for offering contractmodifications that resulted in a wage freeze in Fiscal 2010.

As for revenue generation, our total contributions of $13.1 millionwere down by approximately $1 million, a decrease we anticipatedin this economy and budgeted for accordingly. As a result, ourfundraising budgets for the year were met. Earned revenuedecreases from the prior season were primarily due to ourdeliberate strategy of reducing risk by producing fewer concerts.

We offered 16 fewer performances in 2009-10—most of these inthe “presentations” realm—and increased our total paid capacityto 72 percent for the season. We are pleased by these steadyreturns in a down economy.

Our total investments for Fiscal 2010 climbed to $147 million, a $10 million increase fueled both by an 8 percent return for theyear and an influx of payments specifically earmarked for the Hallrenovation. While these Hall pledges—which have been placed inFDIC-insured CDs—temporarily increase our total investments, it is important to be aware that we will draw on these funds to payfor construction costs as the renovation project progresses.

Looking forward, the Minnesota Orchestra faces structuralfinancial issues that are made more challenging by the currenteconomy. Our upcoming strategic planning process will allow usto confront these issues directly in order to develop a viablebusiness model that aligns our greatest artistic offerings with long-term financial stability.

In the meantime, there are times when holding steady is a victoryof its own. This season, we proudly celebrate the achievement ofstability, due to the tremendous support of our outstandingaudiences, donors and community at large. Our hats are off to you!

AUGUST 31 AUGUST 31ASSETS 2010 2009

Current AssetsCash & Cash Equivalents $1,744 $2,056 Contributions & Other Receivables 9,190 8,928 Prepaid Expenses & Other 1,164 1,490 Total 12,098 12,474

Long Term Pledges & Receivables 14,576 11,772

INVESTMENTS

Endowment Funds 74,599 74,008Beneficial Interest held in trusts 56,088 55,046 Hall Investment Fund 6,342 6,258 Hall Renovation 8,132 Other Investments 2,260 2,120 Total Investments 147,421 137,432

Hall Renovation Project Spending 1,884 323 Capital Assets, 6,260 6,809

Net of Depreciation

Other Assets 948 1,283

TOTAL ASSETS $183,187 $170,093

AUGUST 31 AUGUST 31LIABILITIES 2010 2009

Current LiabilitiesAccounts Payable $3,128 $2,883 Line of Credit 0 1,465

Deferred Concert Revenue 3,434 3,610

Long Term LiabilitiesLong Term Debt 10,940 12,690 Unfunded Pension Liability 9,649 6,982

TOTAL LIABILITIES $27,151 $27,630

Unrestricted Net AssetsOperations ($10,356) ($12,124)Pension Minimum Liability (9,649) (6,981)

Total Operations & Pension (20,005) (19,105)Hall Financing, Capital Assets & Annuities 11,388 10,568Board-Designated Endowment (4,684) (1,557)

Total Unrestricted Net Assets (13,301) (10,094) Temporarily Restricted Net Assets 35,573 20,030 Permanently Restricted Net Assets 133,764 132,527 TOTAL NET ASSETS $156,036 $142,463

TOTAL NET ASSETS & LIABILITIES $183,187 $170,093

YEAR ENDING YEAR ENDINGAUGUST 31 AUGUST 31

2010 2009

REVENUE, GAINS & OTHER SUPPORT

Earned RevenueConcert Ticket Sales & Fees $7,246 $8,500 Touring Fees 421 535 Other Revenue 2,059 1,883 Total 9,726 10,918

Contributions & GiftsGeneral Support & Restrictive Grants 7,624 8,199 Tour Funding 1,600 2,000 Symphony Ball 980 981 Oakleaf & St. Paul Fdn. Distributions 2,976 3,028 Total 13,180 14,208

Board-Designated Draws 7,930 7,377

TOTAL REVENUE & SUPPORT $30,836 $32,503

EXPENSES

Salaries & Benefits $21,031 $21,359 Direct Concert Expense 3,884 4,613 Tour Expense 1,056 1,521 Advertising & Promotion 1,908 2,076 Administration & Facility 1,918 1,988 Symphony Ball 345 241 Financing Expense 686 694

TOTAL EXPENSES $30,828 $32,492

NET OPERATIONS $8 $11

summar y of operating results

This is a summarized version of the financial statements audited by LarsonAllen LLP.

11 M I N N E S OTA O R C H E STRA AN N UAL R E P O RT 200 9-10

($000 OMITTED)summar y of f inancial posit ion

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A Message fromthe Treasurer

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INCOME BY SOURCE

EXPENSE

BY ACTIVITY

Earned Revenue31%

Contributions43%

Board-DesignatedDraws26%

Program88%

Fundraising4%Administration

8%

12D E C E M B E R 2010 M I N N E S OTA O R C H E STRA