2012 13 bm annual report

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annual report 2012 - 2013 Brisbane Marketing

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Transcript of 2012 13 bm annual report

Page 1: 2012 13 bm annual report

annual report

2012 - 2013Brisbane Marketing

Page 2: 2012 13 bm annual report
Page 3: 2012 13 bm annual report

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

Page 4: 2012 13 bm annual report

▼ Lord

Mayor’s

Business

Awards 2

013

Page 5: 2012 13 bm annual report

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

Page 6: 2012 13 bm annual report

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

Page 7: 2012 13 bm annual report

▼ 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

Page 8: 2012 13 bm annual report

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

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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

Page 10: 2012 13 bm annual report

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

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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

Page 12: 2012 13 bm annual report

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

Page 13: 2012 13 bm annual report

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

Page 14: 2012 13 bm annual report

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

Page 15: 2012 13 bm annual report

• 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

Page 16: 2012 13 bm annual report

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

Page 17: 2012 13 bm annual report
Page 18: 2012 13 bm annual report

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

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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

Page 20: 2012 13 bm annual report

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

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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

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Page 22: 2012 13 bm annual report

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

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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.

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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

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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

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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

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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.

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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

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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.

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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

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(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

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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

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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.

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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:

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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

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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.

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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

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..…………..........................

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

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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

E: [email protected]

brisbanemarketing.com.au