ANNUALREPORT’05 - ppca.com.au Annual Report 200… · Beach Boys “Pet Sounds”. GEORGE ASH...

ANNUALREPORT’05PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LTD

Distribution surplus up

13.5%to $10,015,587

to 39,5408.4%Licences up

to $13,366,72712%Income up

26The PPCA Trust approved applications for funding:

18 related to further education and research8 for festivals, live musicand local artists

HIGHLIGHTS

PPCA revenues, distributions,

licences and registered artists

and groups continued to increase

in 2004-2005, maintaining

our unbroken succession of

improvements since 1990.

Chairman’s Report

The Company

Board Members

Management Report

Communications

Performers’ Trust Foundation

Most Broadcast Artists and Recordings

50 Most Broadcast Artists 2005

Most Broadcast Artists 2002 – 2004

100 Most Broadcast Recordings 2005

Special Purpose Financial Report

Performers’ Trust Balance Sheet

Appendix A: Sample PPCA Licence

Appendix B: Tariff Categories

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06

10

12

14

16

17

18

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CONTENTS

On behalf of the PPCA Board, it’s my pleasure

to report on another successful year for PPCA

and bring to your attention some of the many

achievements attained over the period.

In particular, I am pleased to report that

PPCA is in its fi fteenth consecutive year

of growth in income, licence numbers and

distributable surplus.

For the fi nancial year ending June 2005,

PPCA income was up 12% to $13,366,727.

The key contributors to this growth include an

implementation of a more aggressive prospecting

program by the licensing department, the

development and implementation of an

enforcement and escalation strategy, as well

as a number of key licensing agreements

negotiated over the period, including the

Universities agreement.

The strategies employed in the PPCA licensing

department contributed to an 8.4% increase in

public performance licences, which at 30 June

2005 stood at 39,540.

PPCA’s distributable surplus of $10,015,587,

represents another record and an increase of

13.5% on the previous year. We look forward

to distributing this amount to licensors and

registered Australian recording artists in

December 2005.

In June this year, PPCA launched its new logo

and website, which were part of a broader

program to unify the brand strategy of the

organisation. The look and feel developed

for PPCA has since been integrated into all

marketing and communication materials.

Earlier in the year, PPCA also launched an

educational video targeting potential licensees,

representative groups and students. The video

is a valuable resource for the organisation

and explains in basic terms the role and value

of copyright, the benefi ts of playing music

in business today and the need to obtain

appropriate licences to do so. The video

has been distributed to a number of key

industry groups and educational institutions

since its completion and has generated

positive feedback.

In order to promote PPCA to Australian

artists and potential licensors, this year PPCA

announced its partnership with “The AMP 2005”,

a new music industry prize that will award an

Australian artist (or group of artists) a cash prize

of $25,000 (provided by PPCA) in recognition

of their outstanding creativity during a particular

year. The organisation is very excited about this

partnership, as the initiative will not only promote

PPCA to a broad range of Australian artists, but

it will also promote the health and growth of the

local industry both here and abroad.

Over the period, PPCA has continued to engage

government at all levels. In particular, signifi cant

progress has been achieved with regard to

continuing to progress the removal of the 1%

statutory cap on radio broadcast licence fees,

with government currently reviewing the matter.

As foreshadowed in last years Chairman’s

report, the nightclub tariff review matter has

been referred to the Copyright Tribunal and we

expect the hearing to take place before the end

of the 05/06 fi nancial year.

Once again, our compliance with the Copyright

Collecting Society Code was the subject of

an independent review and we are pleased to

advise that PPCA’s compliance with the Code

has once again been confi rmed.

Considerable effort has been expended

throughout the year on the development of new

information technology systems to streamline

the distribution and catalogue modules of the

business. This project is now nearing completion

and should be deployed in January 2006.

Finally, I’d like to thank my fellow Board

members and the management team. Without

their contribution and hard work the company’s

many achievements would not be possible.

JOHN O’DONNELLPPCA Chairman

November 2005

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DIRECTORS,NOVEMBER 2005George William Ash

Elizabeth Ann Blakey

David William De Barran Cullen

Karen Ann Don

(Alternate for George William Ash)

Desmond Arthur Dubery

(Alternate for Edward Erskine St John.

Resigned 31 December 2004)

Michael William Golden

(Alternate for Elizabeth Ann Blakey)

Denis Anthony Handlin

Graham David Harris

(Alternate for John O’Donnell.

Resigned 1 August 2005)

Shaun James

(Resigned 27 August 2004)

Gregory John Macainsh

John Anthony O’Donnell

Belinda Morrison

Mark Narborough

(Alternate for Edward St John.

Appointed 27 August 2004)

Damian Peter Rinaldi

(Alternate for Denis Anthony Handlin)

Edward Erskine St John

Christopher Moss

(Appointed 27 August 2004,

Resigned 31 January 2005)

Deborah Veronica Gervay

(Alternate for John O’Donnell.

Appointed 1 August 2005)

Lynne Small

Manager – Finance,

Operations &

Administration

James Grierson

IT Manager

Stephen Peach

Chief Executive Offi cer

Maxine Chisholm

Licensing Manager

Jason McLennan

Head of Business &

Legal Affairs

Linda Courtney

Distribution Manager

EXECUTIVE SECRETARIAT

Christine Hayes

Communications Manager

REGISTERED OFFICELevel 4, 19 Harris Street

Pyrmont NSW 2009

A.C.N 000 680 704

A.B.N 43 000 680 704

BANKERSCommonwealth Bank of Australia

AUDITORSDeloitte Touche Tohmatsu

SOLICITORSGilbert & Tobin

THE

CO

MPA

NY DIRECTORS,

NOVEMBER 2005

4

BOARDMEMBERS

BOARD MEMBERS AS AT NOVEMBER 2005

TOP ROW FROM LEFT: John O’Donnell, George Ash SECOND ROW: Libby Blakey, Bill Cullen, Denis Handlin THIRD ROW: Greg Macainsh, Lindy Morrison, Ed St John.

5

JOHN O’DONNELLPPCA CHAIRMANJohn O’Donnell has worked in the Australian music

industry for over 15 years. After a period as a freelance

writer, he joined Rolling Stone Magazine as Music

Editor in 1988. In the early 90’s he co-founded and

was the original Editor of Juice Magazine. In 1994

he joined Sony Music to begin the Murmur label and

went on to sign a range of acts including silverchair,

Jebediah and Something For Kate.

In 1999, he was appointed head of A&R at Sony

Music Australia. In 2002 he joined EMI Australia and

was appointed Managing Director in July of that year.

In addition to his duties as a Board Member of ARIA,

John is also the Chairman of the ARIA Chart and

Marketing Committee. His favorite album remains The

Beach Boys “Pet Sounds”.

GEORGE ASH PPCA BOARD MEMBERGeorge Ash became a member of the PPCA Board

in August 2003. George is the Managing Director

of Universal Music Australia (UMA), a division of the

Universal Music Group. Prior to George’s current

position with Universal Music Australia, he held

positions as Managing Director at Universal Music

NZ, Managing Director at MCA Geffen NZ and held

key management roles at BMG NZ. George has also

held roles in Polygram Manufacturing and in the retail

sector. George’s passion for the music industry began

as a musician and has spanned 25 years including

holding a variety of roles in key industry bodies within

the New Zealand Industry before relocating to Australia

in his current role in 2001.

LIBBY BLAKEYPPCA BOARD MEMBERLibby Blakey is currently Director of Business Affairs for

Festival Mushroom Records and has also held a legal

position at Polygram Music. Libby has been a member

of the PPCA Board since September 2001.

BILL CULLENPPCA BOARD MEMBER – MANAGER REPRESENTATIVEBill became a member of board of the PPCA in 2004

as the Music Managers Forum (MMF) representative.

He was elected to the MMF board in 2002.

Bill is a partner in One Louder Entertainment, the

management home to Amiel, End Of Fashion, Shane

Nicholson, Sarah Blasko and The Morning After

Girls. He has been involved in the music business

since leaving school, working at Grant Thomas

Management with acts such as Crowded House

and The Rockmelons. After that Bill spent 5 years in

London where he worked with the legendary Pete

Jenner (manager of Pink Floyd, The Clash, Billy Bragg,

etc), before going on to co-manage New Zealand

act OMC (How Bizarre) who went on to a number

one single and gold album in the US. He returned to

Australia in 1999, and established One Louder, and

has since had platinum plus success with Alex Lloyd,

George and Amiel.

DENIS HANDLIN AMPPCA BOARD MEMBERDenis is the Chairman and Chief Executive Offi cer of

Sony BMG Music Entertainment Australia and New

Zealand, having previously held a number of senior

positions within Sony Music Entertainment Australia

since 1971, including the CEO role since 1984.

Denis’ deep involvement in the music industry is

refl ected in his current position as Chairman of the

Australian Recording Industry Association (ARIA), and

his previous experience as Chairman of the ARIA Chart

Committee. Denis has also been a Chairman of PPCA

and has served on the committees of several industry

associations. In 2005, Denis was named a Member

(AM) of the Order of Australia in the General Division for

his service to the music industry, particularly through

the promotion of Australian musicians, to professional

organisations, and to the community through

fundraising for charitable organisations. Denis is a co-

founder and a Governor of the Sony Foundation which

has raised over $6 million in six years for charitable

causes. In 2003, he also accepted the invitation to

become a patron of Youth Off The Streets charity.

GREG MACAINSHPPCA BOARD MEMBER –ARTIST REPRESENTATIVEGreg Macainsh has been a recording artist, songwriter

and musician for over 25 years, forming the seminal

Australian group Skyhooks in 1973. Skyhooks

disbanded in 1980 and Greg moved into production,

management and songwriting tuition. A keen bass

player, he has toured with a number of artists, notably

John Farnham and Dave Warner.

Greg is a strong advocate for the contemporary

music industry, holding positions as a Director and

Chairperson of the Victorian Rock Foundation from

1989 to 1993 and a Writer Director of APRA from 1997

to 2000. He was elected to the PPCA board as an

Artist Representative in 2001

LINDY MORRISON PPCA BOARD MEMBER –ARTIST REPRESENTATIVELindy Morrison has been a member of the PPCA

Board, as a representative of registered Australian

recording artists, since 1993. Lindy toured the world

as a drummer, with Zero, The Go-Betweens and

Cleopatra Wong, from 1978 until 1992. Since then,

Lindy has worked around Australia as the musical

director or performer in shows, parades and festivals,

and has led drum and music workshops with many

diverse and varied community groups.

Lindy is also a Director on the Music Council of Australia

Board, and she is the National Coordinator for Support

Act Ltd – the benevolent society for musicians and

workers in the music industry.

ED ST JOHNPPCA BOARD MEMBEREd St John is the President & CEO of Warner Music

Australasia, a division of the Warner Music Group.

Prior to joining Warner in February 2004, Ed was the

Managing Director of BMG Australia for four years,

having previously held a number of senior positions

within the company since joining in 1998. Ed has also

held the position of Director of Marketing at Columbia

Records, a division of Sony Music Australia.

Ed’s long association with the music industry includes

work as a television writer and producer, specialising

in music and entertainment-focused programming and

as a freelance music writer and contributor to several

key books on Australian music. Ed became a member

of the PPCA Board in July 2001.

6

FINANCIAL PERFORMANCEOnce again we are pleased to report on another

successful year for PPCA, with record growth

achieved in the areas of revenue, distributable

surplus and licence coverage.

In the year ending 30 June 2005, PPCA’s

distributable surplus increased to over $10

million, representing an impressive 13.5%

increase on the previous year.

Revenue also increased substantially to over

$13 million, representing a 12% increase on last

year’s result. This growth can be attributed to an

increase in the number of licences established

and maintained by PPCA, which at the end of

the year stood at 39,540, an 8.4% increase on

the previous year.

This substantial growth in licence numbers is

a testament to the ongoing work of the PPCA

licensing department, which over the period

implemented a more aggressive prospecting

program and, with the assistance of the

legal department, implemented an improved

escalation and enforcement program. To date,

the enforcement program has resulted in PPCA

initiating civil proceedings against copyright

infringing businesses in Sydney, Adelaide and

Brisbane.

The graphs on page 8 of this report illustrate

the growth in PPCA’s revenue, distribution and

licence numbers over the past 14 years.

DISTRIBUTIONAs with previous years, PPCA completed the

distribution of surplus funds in late December,

issuing just over 1,100 cheques to licensors

and registered Australian recording artists.

It is pleasing to report that, over the period,

the number of PPCA licensors increased

to over 500 copyright owners representing

the catalogues of over 5,000 labels. PPCA’s

ongoing efforts to increase its number of

licensors and consequently, sound recordings

represented under a PPCA blanket licence,

ensure it continues to cover a wide range of

music styles and genres.

The number of Australian artists registered with

PPCA under the Artist Direct Distribution Scheme

also increased over the period, which resulted

in an increase in the overall direct payments to

artists. All eligible artists are reminded to register

each new recording with PPCA as it is released,

in order to maximise their potential annual

distribution. Any recording artist with questions

on the Artist Direct Distribution Scheme or the

registration process is encouraged to contact

PPCA’s Distribution Department for assistance.

Once again PPCA acknowledges the

co-operation of ARIA over the year, in granting

access to its extensive catalogue database to

assist in the analysis of usage logs.

COMMUNICATIONSPPCA’s range of communication activities

continued to expand over the year in an effort

to increase the profi le of PPCA within business

sectors and the artist community.

Over the period, the PPCA Board and

Management team worked together to develop

and implement an improved brand strategy for

the organisation. PPCA launched a new logo,

website and corporate style in June, unifying

and strengthening all PPCA marketing and

communications.

Throughout the year PPCA increased its

communication and association with key

trade groups, including the Australian Hotels

Association, Restaurant and Catering, Clubs

and Fitness groups. PPCA also continued the

production of the quarterly newsletter “In The

Loop” for PPCA licensees and “On The Record”

for registered artists and licensors.

As mentioned in last year’s report, PPCA

has devoted considerable time and effort to

producing a video to help business owners

and potential licensees understand their music

licensing responsibilities. The video was fi nalised

during the period and distributed to a number of

educational institutions and industry groups to

explain in plain English terms such concepts as;

music copyright, music licensing and the role of

PPCA in simplifying the licensing process.

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PPCA’s profi le in the artist community has also

been enhanced over the past year through

participation in a number of industry events and

education based programs. Of particular note

is PPCA’s partnership with ‘the Amp 2005’,

a new music industry prize which will award

an Australian music artist (or group of artists)

a cash prize of $25,000 (provided by PPCA)

in recognition of their outstanding creativity

during a particular year. This exciting initiative

will not only promote PPCA to a broad range

of Australian artists, encouraging them to

register with PPCA to be eligible to share in

licence fee revenue, but it will also promote the

health and growth of the local industry both

here and abroad.

During the year PPCA was also pleased

to sponsor the 2005 Deadlys, Australia’s only

national Aboriginal and Torres Strait Islander

music, sport, entertainment and community

awards.

SUPPORT ACT LIMITEDPPCA continued to support the Australian

music industry’s benevolent fund in 2005,

once again assisting Support Act Limited (SAL)

with their core program activities of providing

fi nancial, legal and medical assistance to artists

and families in need.

PPCA is proud to be a founding member of SAL

and will continue to provide practical assistance

with fundraising, administration and support.

CODE OF CONDUCTThe voluntary Code of Conduct for Collecting

Societies (the Code), to which PPCA and a

number of other Australian collecting societies

subscribe, was reviewed over the period to

ensure its continued relevance in protecting

the interests of those who deal with collecting

societies. The revised Code was announced

in March 2005 and is now available on the

PPCA website, along with comments by the

independent Code Reviewer, the Hon James

Burchett, QC, formerly a Justice of the Federal

Court of Australia.

The Code of Conduct was developed to

assist in ensuring greater transparency and

understanding in dealings between collecting

societies and their members and licensees.

During the period, PPCA’s compliance with the

Code also came under review. We are pleased

to announce that PPCA was once again noted

as having achieved a high degree of compliance

with the Code, affi rming PPCA’s efforts to ensure

fair and effi cient procedures are employed with

both copyright users and copyright holders.

INFORMATION SYSTEMSAs reported last year, considerable effort has

been expended redeveloping PPCA’s core

information technology systems to provide

the increased functionality required to support

growing operations.

Replacement catalogue and distribution

software applications have been developed and

will be deployed early in 2006.

THE YEAR AHEADAs reported in last year’s report, in May 2004

PPCA commenced a review of its “nightclub/

dance party” public performance tariff, and

initiated a lengthy period of consultation with

relevant parties. Due to wide ranging responses,

PPCA considered it to be in the best interest of

all parties that the Copyright Tribunal be asked

to consider and determine the appropriate

rate. As such, the matter was referred to the

Copyright Tribunal and is tentatively scheduled

for hearing in mid 2006.

We will continue to provide updates on our

website as the issue progresses.

In the meantime, PPCA has continued over

the past year to lobby government in relation

to the removal of the artifi cial cap on broadcast

licence fees for the use of sound recordings.

As foreshadowed in last year’s Annual Report,

during the period a review of this issue was

announced by the Attorney-General. While

it was anticipated an outcome in relation to

PPCA’s submissions would be reached in 2005,

the matter is still under consideration and we

are hopeful of a decision from government by

mid 2006.

PPCA has also commenced a review of the

current rate applicable to fi tness classes under

its relevant public performance tariff (Tariff ‘V’). A

consultation process has recently been initiated

with fi tness industry representative bodies, and

we look forward to providing further updates as

this matter progresses.

PPCA remains dedicated to representing

copyright owners and artists, working to

ensure they are appropriately recompensed

for the exploitation of their very valuable sound

recordings and music videos. During the

2005/06 fi nancial year PPCA will maintain focus

on increasing licence coverage and revenues as

well as closely controlling expenditure, in order

to maximise the surplus available for distribution

to licensors and registered artists.

Finally, PPCA would like to thank John

O’Donnell, PPCA Chairman, and the Board for

their continued dedication and support over the

period.

STEPHEN PEACHChief Executive Offi cer

LYNNE SMALLManager – Finance, Operations & Administration

36,4

69

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

5,00

0

5,20

0 9,90

0

13,1

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16,0

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18,7

26

21,4

21 26,9

65

30,2

85

32,9

61

33,

290

34,4

51

35,

496

39,5

40

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

91 92 93 94 95 96 97 98 99 00 01 02 03 04 050

3

6

9

12

15

1.61

6

1.80

6

2.20

4

2.26

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5 4.11

0 5.46

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5.96

3

6.33

6

6.61

8 8.41

9 9.89

7 11.183

11.934 13

.367

91 92 93 94 95 96 97 98 99 00 01 02 03 04 050

2

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0.48

7

0.72

9

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1.81

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2 3.47

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4.01

3

4.07

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4.21

5

5.84

6 7.21

5 8.12

7

8.82

7 10.016

GROSS REVENUE (Millions)

DISTRIBUTION (Millions)

NUMBER OF LICENCES

THE VERONICASGRINSPOONKISSCHASY

ALEX LLOYD ANTHONY CALLEAAMIEL

SHANNON NOLL PETE MURRAY GERLING

DO YOU PLAY MUSIC IN YOUR BUSINESS? Some people are surprised to learn that they need a licence to play music in their business. Most don’t understand that simply buying a CD, for example, doesn’t give them the right to play it in a commercial environment.

Generally speaking, any business that wants to play music has to first obtain the required licences.

WHY PLAY MUSIC IN MY BUSINESS?Research has shown that recorded music and music videos can help create an image, influence the experience and decisions of customers, motivate staff and positively impact sales. Most importantly, it helps yourbusiness stand out from its competitors!

Put simply, if the music played in your establishment is enjoyed by a customer, then it is likely that this positive response will be associated with your product, environment or experience – which is what every successful business needs.

PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LTD

ACN 000 680 704 ABN 43 000 680 704

LEVEL 4, 19 HARRIS ST,

PYRMONT NSW 2009

PO BOX Q20

QUEEN VICTORIA BUILDING NSW 1230

T. 02 8569 1111 F. 02 8569 1183

[email protected]

www.ppca.com.au

COMMUNICATIONS

A New PPCA Logo

B New Artist & Licensor Brochure

C New PPCA Website

D New PPCA Most broadcast Country Music Recording Artist 2004 - Kasey Chambers (pictured with Chris O’Hearn, EMI Music Australia Label Manager)

E Congratulations to the Hog’s Breath Café, Coffs Harbour for winning the PPCA sponsored ‘Best Themed Restaurant’ at the Restaurant and Catering NSW Regional Awards for Excellence (Pictured with Maxine Chisholm (left) PPCA Lincensing Manager)

F The Amp 2005 in partnership with PPCA, providing the $25,000 prize for the winner

G New PPCA Prospecting and General Licensing Information Brochure

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H PPCA Most Broadcast Australian

Recording 2004 – Delta Goodrem

for ‘Predictable’ (Pictured with Denis

Handlin, Chairman and CEO SONY

BMG Music Entertainment Australia and NZ)

I The 11th Deadlys. National Aboriginal & Torres

Strait Islander Awards – sponsored by PPCA

J New PPCA Artist & Licensor Ad

K In the Loop Quarterly Licensing Newsletter

L Congratulations to Omega in Sydney for winning

the PPCA sponsored ‘Best Greek Restaurant’ at

the Restaurant and Catering NSW Metropolitan

Awards for Excellence (Pictured with Maxine

Chisholm, PPCA Licensing Manager )

M Congratulations to The Grand Hotel in

Richmond for winning the PPCA

sponsored ‘Best Pub,Tavern or

Club’ category at the Reataurant and

Catering VIC Metropolitan Awards for

Excellence (Pictured with Lynne Small,

PPCA Manager of Finance, Operations

and Administration)

N New PPCA Licensing Ad

O PPCA Most Broadcast Artist (Act) 2004

– Powderfi nger. Darren Middleton (Powderfi nger

Guitarist), Pictured with George Ash (right)

Managing Director Universal Music Australia

and John O’Donnell (left),PPCA Chairman

and Managing Director EMI music Australia

P PPCA On The Record Artist &

Lincenser NewsletterH

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Since its inception, PPCA has funded and co-

administered with the Musician’s Union and the

Media Entertainment and Arts Alliance (formerly

Actor’s Equity) the “PPCA Trust”. The Trustees

during the period 1 July 2004 – 30 June 2005

were John O’Donnell, Stephen Peach, Patricia

Amphlett and Denis Shelverton.

In exercising their powers pursuant to the

provisions of the Trust, the Trustees have the

power to pay or to apply the Trust Fund to

or for the benefi t of such benefi ciaries as the

Trustees in their absolute discretion from time to

time determine in respect of one or more of the

following purposes:

1 performance at concerts at or for

charitable institutions such as hospitals or

homes for the aged; or,

2 scholarships for the promotion and

encouragement of musical and theatrical

education; or

3 the promotion and encouragement of the

performing arts to the general public; or, in

particular,

4 the aid or assistance of any benefi ciary

who in the opinion of the Trustees is

unable to adequately maintain herself/

himself by her/his own exertions and

other income.

Total funds provided since creating the Trust

have been $1,663,696 (up to 30 June 2005).

In the 2004-2005 year, four Trust meetings

were held and 38 applications were put to the

Trustees. Of these, 26 were approved totaling

$76,814.60. Of the successful applications 18

related to further education and research; and 8

to festivals, live music and local artists.

THE NAMES OF THE RECIPIENTSARE AS FOLLOWS:

Andrew Hewitt

Australian Musicals Development Inc.

Carla Blackwood

City of Hobart Eisteddfod Society

Emerson Shuey

Flutes of Adelaide

Hobart Jazz Club

Jane Baker

Karen Fletcher

Katherine Lukey

Mairi Ward

Mike Bevan

Music Council of Australia

Musicians Union of Australia

Rowan Harvey

Sean Foran

Straight off Da Street

Tahlia Petrosian

Tess Butler

Thomas Rann

Ty QuinnThe Trust Balance Sheet can be found

on page 41 of this report.

PERFORMER’S TRUST

FOUNDATION

1313

I write to send thanks from the Music Council of Australia for the PPCA

Foundation’s generous participation in the ‘Music, Play for Life’ campaign.

The campaign is underway, with strong supportive statements from people

ranging from the Federal Ministers for Education and the Arts and the Labor

Shadow Minister for the Arts, through to people at the grassroots level.

A quarter of a million campaign stickers have been distributed, there has been

coverage in major press and radio and two community service announcements

are playing on community radio stations across the country.

There are campaign committees in Victoria and Queensland with additional

committees in the making in other states. There is a very rich campaign

website. And too much more to describe here.

There is no risk that this campaign will not proceed.

The PPCA contribution comes at an important time for the campaign as it

enters its second phase under a new manager. We intend to put the PPCA

funds to use in supporting identifi able aspects of the campaign.

Once again, our thanks to the Trustees for their support.

Sincerely

Richard Letts AM

Executive Director

On behalf of the President, Alderman Ron Christie, and the committee of the City of Hobart Eisteddfod, I am writing to thank

you for your very generous support of the 55th City of Hobart Eisteddfod 2005.

Your support has enabled the Eisteddfod to establish a high profi le for, and attracted very good interest in the Open Theatre

Music Award of $1,000, which is new to our programme this year. We feel sure that the addition of this award to our

programme, will add to the success and enjoyment which is associated with The City of Hobart Eisteddfod.

Thank you once again.

Susan Whitaker

Committee

City of Hobart Esteddford Society

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2005 PPCA MOST

BROADCAST

50100

The PPCA Most Broadcast Lists continue to acknowledge the outstanding

performance of certain acts in achieving extensive airplay, as represented

in PPCA’s Radio and TV Broadcast logs. The Most Broadcast Lists are

compiled from the play list data used by PPCA to distribute the annual

surplus to Licensors, Artists and the PPCA Performers’ Trust Foundation.

The annual PPCA lists (for the fi nancial year

ending June 2005) show thirteen of the 2005

Top 50 Most Broadcast Artists* were Australian

acts, while 22 local tracks featured in the

2005 Top 100 Most Broadcast Recordings*.

In 2005, Kylie Minogue was the PPCA

Most Broadcast Artist, a feat that Kylie had

achieved twice before in 2002 and 2003.

Last year Kylie was represented near top of

the PPCA list, falling just behind Brisbane

band Powderfi nger in the No.2 position. The

ongoing achievements of Kylie on the PPCA

Most Broadcast lists clearly refl ect the ongoing

appeal of her growing catalogue which has

recently included her Ultimate Kylie album.

Australian songstress Missy Higgins has

proven she has the talent to go the distance,

appearing at No.4 on the 2005 Most

Broadcast Artists list and No.2 on the 2005

Most Broadcast Recordings list for her ARIA

Award winning track ‘Scar’. In addition to

‘Scar’, ‘Ten Day’s and ‘The Special Two’ by

Missy Higgins were also placed in the Top 100

Most Broadcast Recordings for the period.

Multiple entries in the Top 100 Most Broadcast

Recordings for Australian artists include Pete

Murray with ‘So Beautiful’ and ‘Bail Me Out’;

Jet with ‘Look What You’ve Done’ and ‘Cold

Hard Bitch’; Guy Sebastian with ‘Out With

My Baby’ and ‘Oh Oh’ and Delta Goodrem

with ‘Out Of The Blue’ and ‘Mistaken Identity’.

* The period covered by this Award is the 04/05 fi nancial year.

1515

WOLFMOTHER

XAVIER RUDD

JIMMY BARNES

THE LVING END

FAKERESKIMO JOE

END OF FASHION CLARE BOWDITCH

MAGIC DIRT THIRSTY MERC

16

50 MOST BROADCAST

ARTISTS

This chart is measured by collating the titles that appear in the PPCA radio/TV broadcast

logs during the period July to June each year. Australian Artist.

1. Kylie Minogue 2. Maroon 5 3. U24. Missy Higgins 5. Green Day 6. Simple Plan 7. Avril Lavigne 8. Britney Spears 9. Powderfi nger 10. Delta Goodrem 11. Jet 12. Kelly Clarkson

13. Destiny’s Child 14. Anastasia 15. Gwen Stefani 16. Nelly

17. Robbie Williams 18. Eminem 19. Guy Sebastian

20. Pete Murray 21. Killing Heidi 22. Good Charlotte

23. Usher 24. Matchbox 20 25. INXS 26. Black Eyed

Peas 27. The Offspring 28. Ashlee Simpson 29. Christina

Aguilera 30. Evanescence 31. Armand Van Helden

32. Dido 33. Elton John 34. Counting Crows 35. The Killers

36. Jamiroquai 37. Evermore 38. Hoobastank 39. Fleetwood Mac

40. Madonna 41. Nickelback 42. Red Hot Chilli Peppers

43. Eskimo Joe 44. Gavin Degraw 45. George Michael 46. Natalie Imbruglia

47. The Beatles 48. Thirsty Merc 49. Rolling Stones 50. No Doubt

KYLIE MINOGUE

17

MOST BROADCAST 2002-2004

20031. Kylie Minogue 2. Avril Lavigne

3. Red Hot Chili Peppers

4. Eminem 5. Madonna

6. Jennifer Lopez 7. Silverchair

8. Robbie Williams 9. U2

10. Taxiride 11. Shakira

12. Delta Goodrem 13. Christina

Aguilera 14. Ronan Keating

15. Pink 16. Jamiroquai

17. Atomic Kitten 18. Disco

Montego 19. Matchbox 20

20. Enrique Iglesias 21.Santana

22. Holly Valance 23. The Beatles

24. John Mayer 25. Elton John

20021. Kylie Minogue 2. U2

3. Savage Garden 4. Madonna

5. Garbage 6. Elton John

7. Jennifer Lopez 8. Creed

9. The Beatles 10. Paul Mac

11. Ronan Keating 12. Lifehouse

13. Powderfi nger 14. Matchbox 20

15. No Doubt 16. Alex Lloyd

17. Nelly Furtado 18. Train

19. John Farnham

20. Robbie Williams

21. Smash Mouth

22. Shaggy 23. Gabrielle

24. Jamiroquai 25. Green Day

20041. Powderfi nger 2. Kylie Minogue

3. Delta Goodrem 4. Robbie Williams

5. Matchbox 20 6. Christina Aguilera

7. Evanescence 8. Pink 9. Nickelback

10. Jet 11. Red Hot Chili Peppers

12. U2 13. Kelly Clarkson

14. Jewel 15. Good Charlotte

16. Dido 17. Avril Lavigne

18. Madonna 19. Black Eyed Peas

20. John Mayer 21. Live

22. Justin Timberlake

23. Outkast 24. Linkin Park

25. No Doubt

This chart is measured by collating the titles that appear in the PPCA radio/TV broadcast logs during the period July to June each year. Bold denotes Australian Artist.

POWDERFINGER

18

100

MOST BROADCASTRECORDINGS

1 She Will Be Loved ...................................Maroon 5

2 Scar ........................................................Missy Higgins

3 The Reason .............................................Hoobastank

4 Boulevard Of Broken Dreams ..................Green Day

5 Sunday Morning ......................................Maroon 5

6 I Don’t Want To Be .................................Gavin Degraw

7 It’s Too Late .............................................Evermore

8 Four To The Floor ....................................Starsailor

9 What You Waiting For? ...........................Gwen Stefani

10 Welcome To My Life ................................Simple Plan

11 Call On Me ..............................................Eric Prydz

12 Push Up ..................................................Freestylers

13 I Just Wanna Live ....................................Good Charlotte

14 Spare Me The Details ..............................The Offspring

15 Pieces Of Me ...........................................Ashlee Simpson

16 Karma .....................................................Alicia Keys

17 Lonely No More .......................................Rob Thomas

18 Lose My Breath .......................................Destiny’s Child

19 I Believe In You .......................................Kylie Minogue

20 In The Shadows ......................................The Rasmus

21 Out Of The Blue ......................................Delta Goodrem

22 Accidentally In Love .................................Counting Crows

23 Since U Been Gone .................................Kelly Clarkson

24 Sick And Tired .........................................Anastacia

25 Popular ...................................................Darren Hayes

26 I Am ........................................................Killing Heidi

27 Nobody’s Home ......................................Avril Lavigne

28 Somebody Told Me .................................The Killers

29 Bail Me Out .............................................Pete Murray

30 Breakaway ..............................................Kelly Clarkson

MISSY HIGGINS

19

This chart is measured by collating the titles that appear in the PPCA radio/TV broadcast

logs during the period July to June each year. Australian Artist.

31 Vertigo .....................................................U2

32 Just Lose It .............................................Eminem

33 Look What You’ve Done ..........................Jet

34 These Kids ..............................................Joel Turner

35 Over And Over ........................................Nelly

36 Shiver ......................................................Natalie Imbruglia

37 These Words ...........................................Natasha Bedingfi eld

38 My Happy Ending ....................................Avril Lavigne

39 Rich Girl ..................................................Gwen Stefani

40 Ten Days .................................................Missy Higgins

41 The Weekend ..........................................Michael Gray

42 Out With My Baby ...................................Guy Sebastian

43 Everytime ................................................Britney Spears

44 Calm Down .............................................Killing Heidi

45 1985 .......................................................Bowling For Soup

46 Stupidisco ...............................................Junior Jack

47 So Beautiful .............................................Pete Murray

48 Left Outside Along ...................................Anastacia

49 Tilt Ya Head Back ...................................Nelly

50 Lola’s Theme ...........................................Shapeshifters

51 Summer Rain ..........................................Slinkee Minx

52 My Prerogative ........................................Britney Spears

53 Solder .....................................................Destiny’s Child

54 This Love .................................................Maroon 5

55 Addicted .................................................Simple Plan

56 Beautiful Soul ..........................................Jesse Mccartney

57 From The Sea ..........................................Eskimo Joe

58 Breaking The Habit ..................................Linkin Park

59 Someday, Someday ................................Thirsty Merc

60 Here Without You ....................................3 Doors Down

61 Take Me Out ............................................Franz Ferdinand

62 Nasty Girl ................................................Nitty

63 The Special Two ......................................Missy Higgins

64 Car Wash ................................................Christina Aguilera

65 1 2 Step ..................................................Ciara

66 Bless My Soul .........................................Powderfi nger

67 Almost Here ............................................Brian McFadden

68 Let Me Love You .....................................Mario

69 Let’s Get Retarded ..................................Black Eye Peas

70 Caught Up ..............................................Usher

71 Trick Me ..................................................Kelis

72 Like Toy Soldiers .....................................Eminem

73 Perfect ....................................................Simple Plan

74 Leave (Get Out) .......................................Jo Jo

75 Hollaback Girl ..........................................Gwen Stefani

76 Amazing ..................................................George Michael

77 Cold Hard Bitch .......................................Jet

78 My Immortal ............................................Evanescence

79 Giving It Up .............................................Kylie Minogue

80 So Somethin’ ..........................................Britney Spears

81 Mistaken Identity .....................................Delta Goodrem

82 Broken ....................................................Seether Feat. Amy Lee

83 Holiday ....................................................Green Day

84 Beautiful .................................................Alex Lloyd

85 It’s My Life ...............................................No Doubt

86 Signs .......................................................Snoop Dogg

87 Sunshine (Feat Anthony Hamilton) ...........Twista

88 Flashdance ..............................................Deep Dish

89 Put Em High ............................................Stonebridge

90 Oh Oh .....................................................Guy Sebastian

91 Learn To Fly .............................................Shannon Noll

92 Girl ..........................................................Destiny’s Child

93 Hear My Name ........................................Armand Van Helden

94 Move Ya Body .........................................Nina Sky

95 Flashdance .............................................Deep Dish

96 Everybody’s Fool .....................................Evanescence

97 Rumors ...................................................Lindsay Lohan

98 My, My, My ..............................................Armand Van Helden

99 Feelin’ Way Too Dam Good .....................Nickelback

100 With You .................................................Jessica Simpson

DELTA GOODREM

2020

SPECIAL PURPOSEFINANCIAL REPORTFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005

Director’s Report

Independant Audit Report

Director’s Declaration

Statement Of Financial Performance

Statement Of Financial Position

Statement Of Cash Flows

Notes To The Financial Statements

18

22

23

24

25

26

27

21

The directors of Phonographic Performance Company of Australia Limited, submit

herewith the annual fi nancial report for the fi nancial year ended 30 June 2005.

In accordance with the provisions of the Corporations Act 2001 the directors

report as follows:

The names and particulars of the directors of the company in offi ce during or since the end of the fi nancial year are:

George William Ash ............................................. Managing Director, Record Company

Elizabeth Ann Blakey ........................................... Director of Business Affairs, Record Company

David William De Barran Cullen .......................... Director, Management Company

Karen Ann Don .................................................... (Alternate for George William Ash); Director, Legal & Business Affairs, Record Company

Desmond Arthur Dubery ...................................... (Alternate for Edward Erskine St John); Director, Business Affairs, Record Company

Deborah Veronica Gervay .................................... (Alternate for John O’Donnell); Head of Business Affairs, Record Company

Michael William Golden ....................................... (Alternate for Elizabeth Ann Blakey); Chief Operating Offi cer, Record Company

Denis Anthony Handlin ........................................ Chairman and CEO; Australia and New Zealand, Record Company

Graham David Harris ........................................... (Alternate for John O’Donnell); Executive Vice President, Record Company

Shaun James ....................................................... CEO and Chairman, Record Company

Gregory John Macainsh ...................................... Independent Artist

Belinda Morrison ................................................. Independent Artist

Christopher Moss ................................................ Managing Director, Record Company

Mark Narborough ................................................ (Alternate for Edward St John); Director of Finance, Record Company

John Anthony O’Donnell ..................................... Managing Director, Record Company

Damian Peter Rinaldi ........................................... (Alternate for Denis Anthony Handlin) Director, Business Affairs, Record Company

Edward Erskine St John ...................................... Managing Director, Record Company

The above named directors held offi ce during and since the end of the fi nancial year except for:

Shaun James ....................................................... Resigned 27 August 2004

Mark Narborough ................................................ Appointed 27 August 2004

Christopher Moss ................................................ Appointed 27 August 2004, Resigned 31 January 2005

Desmond Arthur Dubery ...................................... Resigned 31 December 2004

Graham David Harris ........................................... Resigned 1 August 2005

Deborah Veronica Gervay .................................... Appointed 1 August 2005

DIR

EC

TOR

’SR

EP

OR

T

22

Directors’ Meetings

The following table sets out the number of directors’ meetings held during the fi nancial year and the number of meetings attended by each director (while

they were a director). During the fi nancial year, 7 board meetings were held.

Directors Board of Directors

Held Attended

George William Ash 7 5

Elizabeth Ann Blakey 7 5

David William De Barran Cullen 7 6

Karen Ann Don (Alternate) 1 1

Desmond Arthur Dubery (Alternate) (Resigned 31/12/04) 4 1

Deborah Veronica Gervay (Alternate) (Appointed 1/8/05) - -

Michael William Golden (Alternate) 2 -

Denis Anthony Handlin 7 -

Graham David Harris (Alternate) (Resigned 1/8/05) - -

Shaun James (Resigned 27/8/04) 2 2

Gregory John Macainsh 7 7

Belinda Morrison 7 6

Christopher Moss (Appointed 27/8/04) (Resigned 31/1/05) 2 2

Mark Narborough (Alternate) (Appointed 27/8/04) 2 1

John Anthony O’Donnell 7 7

Damian Peter Rinaldi (Alternate) 7 7

Edward Erskine St John 7 1

Principal Activity

The principal activity of the company in the course of the fi nancial year was acting for the copyright owners in the licensing throughout Australia of the

broadcast and public performance of sound recordings and music video clips. During the year there was no signifi cant change in the nature of this

activity.

Changes In State Of Affairs

During the fi nancial year there was no signifi cant change in the state of affairs of the company other than that referred to in the fi nancial statements or

notes thereto.

DIRECTOR’S REPORT

23

Review Of Operations

The company distributes the licence fees it collects to the Copyright owners and artists after deducting operating expenses. As a result of this, no profi t

or loss is reported and the directors do not recommend that a dividend will be payable in the current year. No dividend was payable in the prior year.

The company’s results have again shown a substantial increase in the amount to be distributed to Copyright owners as compared with the previous year.

The results of the operations of the company during the year were not, in the opinion of the directors substantially affected by any item, transaction or

event of a material and unusual nature.

The company’s distribution to its licensors in relation to the current year was $10,015,587 (2004: $8,826,957). The company’s results for the current year

ended 30 June 2005 was a loss of $100,000 (2004: Nil).

Subsequent Events

There has not been any matter or circumstance, other than that referred to in the fi nancial statements or notes thereto, that has arisen since the end of

the fi nancial year, that has signifi cantly affected, or may signifi cantly affect the operations of the company, the results of those operations, or the state of

affairs of the company in fi nancial years.

Future Developments

Disclosure of information regarding likely developments in the operations of the company in future fi nancial years and the expected results of those

operations is likely to result in unreasonable prejudice to the company. Accordingly, this information has not been disclosed in this report.

Indemnifi cation Of Offi cers And Auditors

During the fi nancial year, the company paid a premium in respect of a contract insuring the directors of the company (as named above), the company

secretary, and all executive offi cers of the company and of any related body corporate against a liability incurred as such a director, secretary or

executive offi cer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and

the amount of the premium.

The company has not otherwise, during or since the fi nancial year, indemnifi ed or agreed to indemnify an offi cer or auditor of the company or of any

related body corporate against a liability incurred as such an offi cer or auditor.

Auditor’s Independence Declaration

The auditor’s independence declaration is included on page 4 of the fi nancial report.

Signed in accordance with a resolution of the directors made pursuant to Section 298(2) of the Corporations Act 2001.

On behalf of the Directors

John O’Donnell

Director

Sydney 2005

DIRECTOR’S REPORT

24

Scope

We have audited the attached fi nancial report, being a special purpose fi nancial report, of

Phonographic Performance Company of Australia Limited for the fi nancial year ended 30 June

2005 as set out on pages 7 to 19. The company’s directors are responsible for the fi nancial report

and have determined that the accounting policies used and described in Note 1 to the fi nancial

statements which form part of the fi nancial report are appropriate to meet the requirements of

the Corporations Act 2001 and are appropriate to meet the needs of the members. We have

conducted an independent audit of the fi nancial report in order to express an opinion on it to the

members of Phonographic Performance Company of Australia Limited. No opinion is expressed

as to whether the accounting policies used, and described in Note 1, are appropriate to the needs

of the members.

The fi nancial report has been prepared for distribution to members for the purpose of fulfi lling

the directors’ fi nancial reporting requirements under the Corporations Act 2001. We disclaim any

assumption of responsibility for any reliance on this audit report or on the fi nancial report to which it

relates to any person other than the members, or for any purpose other than that for which it was

prepared.

Our audit has been conducted in accordance with Australian Auditing Standards. Our procedures included examination, on a test basis, of evidence

supporting the amounts and other disclosures in the fi nancial report and the evaluation of signifi cant accounting estimates. These procedures have

been undertaken to form an opinion whether, in all material respects, the fi nancial report is presented fairly in accordance with the accounting policies

described in Note 1, so as to present a view which is consistent with our understanding of the company’s fi nancial position, and performance as

represented by the results of its operations and its cash fl ows. These policies do not require the application of all Accounting Standards and other

mandatory professional reporting requirements in Australia.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, the fi nancial report of Phonographic Performance Company of Australia Limited is in accordance with:

(a) the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s fi nancial position as at 30 June 2005 and of its performance for the

year ended on that date in accordance with the accounting policies described in Note 1; and

(ii) complying with Accounting Standards in Australia to the extent described in Note 1 and the Corporations

Regulations 2001; and

(b) other mandatory professional reporting requirements in Australia to the extent described in Note 1.

DELOITTE TOUCHE TOHMATSU Julia Bickerstaff

Partner

Chartered Accountants

Sydney, 2005

INDEPENDENTAUDIT REPORT

25

As detailed in Note 1 to the fi nancial statements, the company is not a reporting entity because in the opinion of the directors there are unlikely to exist

users of the fi nancial report who are unable to command the preparation of reports tailored so as to satisfy specifi cally all of their information needs.

Accordingly, this “special purpose fi nancial report” has been prepared to satisfy the directors’ reporting requirements under the Corporations Act 2001.

The directors declare that:

(a) The attached fi nancial statements and notes thereto comply with Accounting Standards;

(b) The attached fi nancial statements and notes thereto give a true and fair view of the fi nancial position and performance of the

company;

(c) In the directors’ opinion, the attached fi nancial statements and notes thereto are in accordance with the Corporations Act 2001;

and

(d) In the director’s 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.

Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.

On behalf of the Directors

John O’Donnell

Director

Sydney 2005

DIRECTOR’SDECLARATION

2626

Revenue from ordinary activities 2 13,366,727 11,934,005

Employee benefi ts expense (1,670,575) (1,508,525)

Subscription fees paid or payable to the

International Federation of Phonographic Industry (447,555) (427,823)

Occupancy expense (153,448) (168,707)

Depreciation and amortisation expense (106,105) (108,498)

Other expenses from ordinary activities (1,073,457) (893,495)

Distribution to licensors (10,015,587) (8,826,957)

Loss From Ordinary Activities Before

Income Tax Expense (100,000) -

Income tax expense relating to ordinary activities - -

Net Loss (100,000) -

Total Changes in Equity Other than those Resulting from

Transactions with Members as Members 13 (100,000) -

Note 2005 2004

$ $

STATEMENT OF FINANCIAL PERFORMANCEFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005

Notes to the fi nancial statements are

included on pages 29 to 36.

26

2727

Note 2005 2004

$ $

CURRENT ASSETS

Cash assets 2,939,334 1,356,250

Receivables 5 2,202,081 2,083,532

Other fi nancial assets 6 9,766,320 9,916,320

TOTAL CURRENT ASSETS 14,907,735 13,356,102

NON-CURRENT ASSETS

Plant and equipment 7 451,141 251,468

TOTAL NON-CURRENT ASSETS 451,141 251,468

TOTAL ASSETS 15,358,876 13,607,570

CURRENT LIABILITIES

Payables 8 15,210,818 13,381,344

Provisions 9 102,114 87,289

TOTAL CURRENT LIABILITIES 15,312,932 13,468,633

NON-CURRENT LIABILITIES

Provisions 10 45,926 38,919

TOTAL NON-CURRENT LIABILITIES 45,926 38,919

TOTAL LIABILITIES 15,358,858 13,507,552

NET ASSETS 18 100,018

EQUITY

Contributed equity 11 18 18

Reserves 12 - 100,000

Retained profi ts 13 - -

TOTAL EQUITY 18 100,018

STATEMENT OF FINANCIAL POSITIONFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005



27

28

Cash fl ows from operating activities

Receipts from operating activities 14,402,144 12,777,090

Payments for operating activities (4,382,259) (4,113,028)

Interest received 545,935 486,339

Distribution to licensors (8,826,958) (8,127,028)

Net cash provided by operating activities 16(b) 1,738,862 1,023,373

Cash fl ows from investing activities

Payment for plant and equipment (305,778) (65,947)

Net cash used in investing activities (305,778) (65,947)

Cash fl ows from fi nancing activities

Net cash used in fi nancing activities - -

Net increase in cash held 1,433,084 957,426

Cash at beginning of fi nancial year 11,272,570 10,315,144

Cash at the end of the fi nancial year 16(a) 12,705,654 11,272,570

STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005



Note 2005 2004

$ $

28

29

NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005

1. SUMMARY OF ACCOUNTING POLICIES

Financial Reporting Framework

The company is not a reporting entity because in the opinion of the directors there are unlikely to exist users of the fi nancial report who are unable

to command the preparation of reports tailored so as to satisfy specifi cally all of their information needs. Accordingly, this “special purpose fi nancial

report” has been prepared to satisfy the directors’ reporting requirements under the Corporations Act 2001.

The fi nancial report has been prepared on the basis of historical cost and except where stated, does not take into account changing money values

or current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

The fi nancial report has been prepared in accordance with the Corporations Act 2001, the basis of accounting specifi ed by all applicable Accounting

Standards and UIG Consensus Views and the disclosure requirements of Accounting Standards AASB 1001 “Accounting Policies”, AASB 1018

“Statement of Financial Performance”, AASB 1034 “Financial Report Presentation and Disclosures” and AASB 1040 “Statement of Financial

Position”.

Signifi cant Accounting Policies

Accounting policies are selected and applied in a manner which ensures that the resulting fi nancial information satisfi es the concepts of relevance

and reliability, thereby ensuring that the substance of the underlying transactions and other events is reported.

The following signifi cant accounting policies have been adopted in the preparation and presentation of the fi nancial report:

a Going Concern

The fi nancial report has been prepared on the basis that the company is a going concern which assumes continuity of normal business

activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.

As disclosed in the Statement of Financial Performance for the year ended 30 June 2005, the company made a loss of $100,000. However,

as disclosed in the Statement of Financial Position as at 30 June 2005, the company is in a positive net assets position. The company acts

as an agent for the copyright holders and is entitled to be reimbursed for expenditure incurred in the course of its activities. The ability of

the company to continue as a going concern and pay its debts as and when they fall due is guaranteed as part of the agreement in place

between the company and the copyright holders it represents.

b Depreciation

Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line basis so as to write off the net cost or other

revalued amount of each asset over its expected useful life. Leasehold improvements are depreciated over the period of the lease or

estimated useful life, whichever is shorter, using the straight line method.

The following estimated useful lives are used in the calculation of depreciation.

Offi ce furniture 5 years

Offi ce equipment 4 years

Computer equipment 3 years

Leasehold improvements 5 years

29

3030


1. SUMMARY OF ACCOUNTING POLICIES Continued

c Income Tax

The company prepares its income tax returns on the basis that it acts as agent for the copyright holders that it represents. As such, it does

not derive income on its own account. Rather, it is entitled under its constituent document to be reimbursed for expenditure incurred in the

course of its activities. The basis of assessment has been agreed with the Australian Taxation Offi ce.

The net effect of timing and permanent differences arising from expenditure incurred by the company is passed on to the recipients of the

royalties collected.

d Revenue Recognition

Unearned revenue is brought to account over the terms of the licences issued on the following basis:

i. Public performance fees are normally issued for a period of one year, although shorter periods are accommodated. In all cases licence

fees are payable in advance. Income is brought to account on a monthly basis over the life of the contract.

ii. Broadcast licences are issued for various terms - income is brought to account on a monthly basis over the life of the contract.

e Leased Assets

Operating lease payments are recognised as an expense on a basis which refl ects the pattern in which economic benefi ts from the

leased asset are consumed.

f Recoverable Amount of Non-Current Assets

Non-current assets are written down to recoverable amount where the carrying value of any non-current asset exceeds recoverable amount.

In determining the recoverable amount of non-current assets, the expected net cash fl ows have not been discounted to their present value.

g Employee Benefi ts

Provision is made for benefi ts accruing to employees in respect of wages and salaries, annual leave and long service leave when it is

probable that settlement will be required and are capable of being measured reliably.

Provisions made in respect of wages and salaries and annual leave expected to be settled within 12 months, are measured at their nominal

values, using the remuneration rate expected to apply at the time of settlement.

Provisions made in respect of long service leave which are not expected to be settled within 12 months are measured as the present value

of the estimated future cash outfl ows to be made by the company in respect of services provided by employees up to reporting date.

3131



h Receivables

Trade receivables and other receivables are recorded at amounts due less any allowance for doubtful debts.

i Accounts Payable

Trade payables and other accounts payable are recognised when the company becomes obliged to make future payments resulting from

the purchase of goods and services.

j Acquisition of Assets

Assets acquired are recorded at the cost of acquisition, being the purchase consideration determined as at the date of acquisition plus costs

incidental to the acquisition.

In the event that settlement of all or part of the cash consideration given in the acquisition of an asset is deferred, the fair value of the

purchase consideration is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.

k Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an

asset or as part of an item of expense; or

ii. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash fl ows are included in the statement of cash fl ows on a gross basis. The GST component of cash fl ows arising from investing and

fi nancing activities which is recoverable from, or payable to, the taxation authority is classifi ed as operating cash fl ows.

l Adoption of International Financial Reporting Standards

The company will be required to prepare fi nancial reports using Australian Accounting Standards that are equivalent to International Financial

Reporting Standards (A-IFRS) and their related pronouncements for all periods beginning on or after 1 January 2005.

The fi rst fi nancial report to be prepared by the company in accordance with A-IFRS will be the fi nancial report for the year ending 30 June

2006. As a result, the opening statement of fi nancial position of the company as at 1 July 2004 will be restated so that all transactions and

balances are recognised and measured in accordance with A-IFRS. Transitional adjustments will be refl ected either as a reclassifi cation of

items in the statement of fi nancial position, or an adjustment of opening retained earnings.

3232


l Adoption of International Financial Reporting Standards

Management has reviewed the effects of the adoption of A-IFRS and due to size of the entity and the nature of its operations believe that

they will be able to transition smoothly to A-IFRS when required and have begun to plan this process.

On fi rst-time adoption of A-IFRS, the company will be required to restate its comparative balance sheet such that the comparative balances

presented comply with the requirements specifi ed in the A-IFRS. That is, the balances that will be presented in the fi nancial report for

the year ended 30 June 2005 may not be the balances that will be presented as comparative numbers in the fi nancial report for the

following year, as a result of the requirement to retrospectively apply the A-IFRS. In addition, certain assets and liabilities may not qualify for

recognition under A-IFRS, and will need to be derecognised. As any adjustments on fi rst-time adoption are to be made against opening

retained earnings, the amount of retained earnings at 30 June 2004 presented in the 2005 fi nancial report and the 2006 fi nancial report

available to be paid out as dividends may differ signifi cantly.

The impact of the changes in accounting policies on fi rst-time adoption of A-IFRS will be affected by the choices made. The company is

evaluating the effect of the options available on fi rst-time adoption in order to determine the best possible outcome for the company.

Property, plant and equipment

On transition to A-IFRS, the entity has several options in the determination of the cost of each tangible asset, and can also elect to use the

cost or fair value basis for the measurement of each class of property, plant and equipment after transition. At the date of this report, the

entity has not decided which options and measurement basis will be adopted and the likely impacts therefore cannot be determined.

Impairment of assets

Non-current assets are written down to recoverable amount when the asset’s carrying amount exceeds recoverable amount.

Under A-IFRS, if the company were to elect to measure both current and non-current assets, including property, plant and equipment at fair

value basis, they are required to test for impairment. In addition, A-IFRS has a more prescriptive impairment test, and requires discounted

cash fl ows to be used where value in use is used to assess recoverable amount. Consequently, on adoption of A-IFRS, an impairment of

certain assets may need to be recognised, thereby decreasing opening retained earnings and the carrying amount of assets - the company

has not yet determined the impact, if any, of any further impairment which may be required. It is not practicable to determine the impact of

the change in accounting policy for future fi nancial reports, as any impairment or reversal thereof will be affected by future conditions.

Employee benefi ts

Under A-IFRS, the company will no longer be able to recognise provisions for annual leave on a nominal basis, regardless of when the leave

is expected to be taken, but will instead be required to discount the portion of annual leave liabilities expected to be taken more than twelve

months from the reporting date. This change in accounting policy is likely to reduce the aggregate provision for annual leave, but is unlikely

to signifi cantly affect the income statement.


3333

2. AGENCY REVENUE AND EXPENDITURE

Agency Revenues

Licence fees 12,820,792 11,447,666

Other Agency Revenues

Interest - other persons 545,935 486,339

Total Agency Revenue 13,366,727 11,934,005

Less:

Agency Expenses

Allowance for doubtful debts (note 3) 5,793 26,464

Depreciation of plant and equipment 106,105 108,498

Auditors’ Remuneration

Auditing the fi nancial report 18,000 15,600

Other services 38,160 28,900

Other

Operating lease payments 327,754 322,231

Other agency expenses 2,855,328 2,583,194

Distribution to Licensors 10,015,587 8,826,957

3. BAD AND DOUBTFUL DEBTS

a) Bad debts written off against allowance for doubtful debts - trade receivables 13,272 49,246

b) Amount set aside to allowance for doubtful debts - trade receivables 5,793 26,464

4. DIRECTORS’ REMUNERATION

Payments to artist representative directors

(Member company representatives are ineligible for fees) 2,218 4,178

2005 2004

$ $


3434

5. CURRENT RECEIVABLES

Trade receivables 1,887,165 1,970,238

Allowance for doubtful debts (56,031) (63,510)

1,831,134 1,906,728

Prepaid expenses 7,665 7,397

Other licence receivables 156,427 134,875

Other receivables 206,855 34,532

2,202,081 2,083,532

6. OTHER CURRENT FINANCIAL ASSETS

Cash on deposit 9,766,320 9,916,320

7. PROPERTY, PLANT AND EQUIPMENT

Gross Carrying Amount

Balance at 30 June 2004 59,866 67,694 182,718 183,049 493,327

Additions - - 305,778 - 305,778

Disposals - - - - -

Balance at 30 June 2005 59,866 67,694 488,496 183,049 799,105

Accumulated Depreciation

Balance at 30 June 2004 (19,350) (39,470) (141,035) (42,004) (241,859)

Depreciation expense (10,912) (15,870) (42,713) (36,610) (106,105)

Disposals - - - - -

Balance at 30 June 2005 (30,262) (55,340) (183,748) (78,614) (347,964)

Net Book Value

As at 30 June 2004 40,516 28,224 41,683 141,045 251,468

As at 30 June 2005 29,604 12,354 304,748 104,435 451,141

Offi ce Offi ce Computer Leasehold Total

Furniture Equipment Equipment Improvement

At Cost At Cost At Cost At Cost

2005 2004

$ $


3535

Note 2005 2004

$ $

7. PROPERTY, PLANT AND EQUIPMENT Continued

Aggregate depreciation recognised as an expense during the year.

Offi ce furniture 10,912 10,637

Offi ce equipment 15,870 14,651

Computer equipment 42,713 47,148

Leasehold improvements 36,610 36,062

106,105 108,498

8. CURRENT PAYABLES

Trade payables 628,641 489,517

Goods and Services Tax (GST) payable 429,602 325,274

Deferred rent 55,440 75,600

Licence fees received in advance 4,081,548 3,663,996

Amounts payable to licensors 10,015,587 8,826,957

15,210,818 13,381,344

9. CURRENT PROVISIONS

Employee benefi ts 17 102,114 87,289

10. NON-CURRENT PROVISIONS

Employee benefi ts 17 45,926 38,919

11. CONTRIBUTED EQUITY

18 Fully paid ordinary shares (2004: 18) 18 18

Fully paid ordinary shares carry one vote per share and no right to dividend.


3636

12. RESERVES

General Reserve

Balance at beginning of fi nancial year 100,000 100,000

Transfer to profi t (100,000) -

Balance at the end of fi nancial year - 100,000

The general reserve is used from time to time to transfer profi ts from retained profi ts. There is no policy of regular transfer. In the current fi nancial

year the general reserve has been utilised in connection with data cleansing. The reserve had been set aside for this purpose a few years ago when

the project to upgrade to a new technology system commenced.

13. RETAINED PROFITS

Balance at beginning of fi nancial year - -

Net loss (100,000) -

Transfer from general reserve 100,000 -

Balance at end of fi nancial year - -

14. LEASES

Non-cancellable operating leases

Phonographic Performance Company of Australia Limited

has an operating lease for its offi ce premises.

The lease expires 31 March 2008 with an option to renew.

Lease commitments are as follows:

No longer than 1 year 342,635 335,414

Longer than 1 year and not longer than 5 years 627,637 1,001,518

970,272 1,336,932

15. SEGMENT REPORTING

The company operates in one industry being the derivation of revenue from licensing the broadcast and public performance of

sound recordings and music video clips wholly within Australia.

2005 2004

$ $


3737

Note 2005 2004

$ $

16. NOTES TO THE STATEMENT OF CASH FLOWS

a) Reconciliation of Cash

For the purposes of the statement of cash fl ows, cash includes cash on hand and in banks and investments in money market instruments, net

of outstanding bank overdrafts. Cash at the end of the fi nancial year as shown in the statement of cash fl ows is reconciled to the related items

in the statement of fi nancial position as follows:

Cash assets 2,939,334 1,356,250

Cash on term deposit 9,766,320 9,916,320

12,705,654 11,272,570

b) Reconciliation of result from ordinary activities

to net cash fl ows from operating activities

Loss from ordinary activities (100,000) -

Depreciation and amortisation of non-current assets 106,105 108,498

Changes in net assets and liabilities:

(Increase)/decrease in assets:

Current receivables (118,549) (192,823)

Increase/(decrease) in liabilities

Current payables 1,829,474 1,092,392

Current provisions 14,825 5,608

Non-current provisions 7,007 9,698

Net cash provided by operating activities 1,738,862 1,023,373

17. EMPLOYEE BENEFITS

The aggregate employee benefi ts liability recognised and included

in the fi nancial statements is as follows:

Provision for employee benefi ts

Current 9 102,114 87,289

Non-current 10 45,926 38,919

148,040 126,208

No. No.

Number of employees at end of fi nancial year 35 28

18. ADDITIONAL COMPANY INFORMATION

Phonographic Performance Company of Australia Limited is a limited company, incorporated and operating in Australia.

Principal Registered Offi ce and Place of Business: Level 4, 19 Harris Street, Pyrmont NSW 2009 Telephone: (02) 8569 1100


3838

PERFORMERS’ TRUST FOUNDATIONSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005

Note 2005 2004

$ $

FUNDS RETAINED IN THE TRUST 347,380 339,309

Represented by:

CURRENT ASSETS

Cash assets 61,734 115,979

Accrued income 4,113 3,555

Deposits - at call 167,318 80,539

Term deposits 400,000 400,000

TOTAL CURRENT ASSETS 633,165 600,073

TOTAL ASSETS 633,165 600,073

Less:

CURRENT LIABILITIES

Payables and accrued charges 3,600 3,000

Grants allocated and unexpended at year end held by trustees for benefi ciaries of:

Professional Musician’s Union of Australia 227,235 196,576

Media Entertainment & Arts Alliance 54,950 61,188

TOTAL CURRENT LIABILITIES 285,785 260,764

TOTAL LIABILITIES 285,785 260,764

NET ASSETS 347,380 339,309

38

39

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c c

c c

40

Licence fees are calculated differently in each category (eg, fees may be fl at fees per annum, fees per person or per machine, or fees determined by size of venue depending

on category) – contact PPCA for full details. It is quite possible, depending on your needs, that you may have a licence with any number of Tariffs eg a hotel may have a

number of bar areas (Tariff M), restaurants (Tariff R), nightclubs (Tariff E), gymnasium (Tariff V), and video jukebox (Tariff W).

PPCA licences are available to cover the use by public performance of protected sound recordings and/or public exhibition of music video clips in:

A General Licences – open air events; school, dance

academy or church concerts; motivational speakers.

(Single event licences are available).

B Arts, fi lm, music events and similar festivals

C Cinemas and theatres

D Dance studios, dance instructors, line dance

instructors

DD Live performance groups, dance companies,

performance promoters

E Nightclubs, discotheques, discotheque promoters,

foreground music in bars

F Mobile discotheque operators/DJs

FW Mobile video discotheque operators

H Halls

HM Music on hold

I Factories, industrial premises and offi ces.

J Audio Jukeboxes

JO Audio Jukebox operators

JW Video jukebox operators

K Amusement centres, pool rooms, squash courts,

swimming pools, ten pin bowling centres

M Commercial or professional premises – including art

galleries, bars, clubs, elevators, foyers, function rooms,

funeral parlours, hairdressers, health/medical offi ces (eg

doctors, dentists, chiropractors, massage therapists,

osteopaths, physiotherapists), hotels, libraries, lounges,

massage parlours, motels, museums, reception areas,

retail stores, taverns, zoos, and/or similar establishments.

MW Electrical and hi-fi stores

N Shopping centres, plazas, concourses

P Public vehicles (eg aircraft, buses, charter boats,

coaches, ferries, hire cars, light rail, monorail, ships, taxis,

trains, trams)

R Restaurants, cafes

S Sports arenas, race tracks, showgrounds, outdoor

amusement parks

SS Outdoor recreational areas (eg beaches, parks)

U Skating rinks

V Fitness centres, gymnasiums, health clubs

W Music video clips

W-E Music video clips in nightclubs, fi xed discotheques and

discotheque operators

X Concert venues

Y Conference rooms

AP

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1

PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LTD

ABN 43 000 680 704

LEVEL 4, 19 HARRIS STREET, PYRMONT NSW 2009

PO BOX Q20, QUEEN VICTORIA BUILDING NSW 1230

T. 02 8569 1100 F. 02 8569 1183

[email protected] www.ppca.com.au

ANNUALREPORT’05 - ppca.com.au Annual Report 200… · Beach Boys “Pet Sounds”. GEORGE ASH...

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