2007 Annual Report - West Australian Symphony Orchestra

CHAIRMAN’S REPORT2007 was a year of signifi cant artisticachievement for the WASO, with a fi neline-up of prominent and world-classguest conductors and soloists.The Orchestra was proud to performunder the baton of outstanding guestconductors such as Simone Young,Yan Pascal Tortelier, Jeffrey Tate andJames MacMillan. Our guest soloistsincluded Ilya Gringolts, GautierCapuçon, Tasmin Little, NikolaiDemidenko and Lukàš Vondràek.A highlight of 2007 was theannouncement of Paul Daniel asWASO’s Principal Conductor andArtistic Adviser from 2009. It wasfantastic to see the way in which ourstakeholders embraced theannouncement. Paul Daniel is apassionate man, with a greatknowledge and appreciation of music.He is committed to the continuingsuccess of the WASO and confi dent ofhis ability to realise his high aspirations.Under his direction, I am sure we will allshare the satisfaction and joy of musicmaking at the highest levels during histenure with the Orchestra.A signifi cant event for the WASO andPerth audiences, and a highlight of minewas the Ashkenazy Gala in October.This concert featuring VladimirAshkenazy received rave reviews.The standard of artistic excellencewithin the Orchestra itself, and theexperience and calibre of our musicianscontinue to develop; this enables theCompany to build strong relationshipswith guest artists and offer the best toour expanding audience base.This year we again receivedwonderful support from the community,our sponsors and our patrons.We sincerely thank them all.In 2007 Richard Goyder resigned fromthe Board in order to concentrate onhis activities at Wesfarmers. I thank himmost sincerely for his dedication anddiligence on the Orchestra’s behalf.Indeed, I would like to thank allmembers of the WASO Board for theirsupport, input, and on-goingcommitment. I welcome Keith Kessellto the Board, and appreciate theknowledge and expertise that he bringsto the position.On behalf of the Board I would liketo pay tribute and thank the musiciansfor their commitment to the companyand their superb performances.I would also like to acknowledge theprofessionalism of Keith Venning,CEO, and his executive team, whohave provided the operational andadministrative platforms for thecompany’s success.Janet Holmes à Court ACChairman03

Australian Premieres:Richard Mills – Concerto for clarinetand violinAndrew Ford – Scenes from BreughelMichel Van der Aa – Here [in circles]Michel Van der Aa – Here [to be found]Other Works:Iain Grandage – The SilencePeter Sculthorpe – KakaduBrett Dean – Wolf-LiederRoger Smalley – Concerto No 2 for pianoand orchestraCarl Vine – Symphony No 4.2 [excerpt]Ross Edwards – Oboe concertoBrett Dean – Viola concertoConcerto ProjectIn 2007 WASO celebrated the relationshipbetween some of the country’s fi nestcomposers and some of our mostcelebrated performers.Composers Richard Mills, James Ledger,Roger Smalley, Ross Edwards and BrettDean had their works interpreted by theWASO with guest conductors and soloistsAllan Meyer and Margaret Blades, DavidElton and Sachio Fujioka, John Chen andJames Macmillan, Diana Doherty and PaulDaniel, and Brett Dean and Lothar Zagrosek.Most of the works in the series wereconceived with the sound, virtuosic giftsand musical personalities of these particularperformers in mind.07

CollaborationsOur relationship with the PerthInternational Arts Festival continued in2007 with the world premiere season ofRichard Mills’ Love of the Nightingale forthree performances in February.Our collaborations with WestAustralian Opera continue from strengthto strength, and this year we joinedthem for performances of:Love of the Nightingale/conductorRichard MillsOrpheus in the Underworld/conductor Imre Pallo;Rigoletto/conductor Marko Letonja;La Boheme/conductor JosephColaneri.For West Australian Ballet we farewelledDobbs Franks as music director, andwelcomed guest conductor EnriqueCarreon-Robledo, and new artisticdirector Ivan Cavallari.The repertoire for 2007 was:Alice – music by ShostakovichCoppelia –music by DelibesIn May WASO joined forces with TURANew Music to present a concert of newworks for the newly re-formed WASONew Music Ensemble. Conducted byBrett Dean and featuring sopranoMerlyn Quaife, the program featuredworks by Brett Dean and Dutchcomposer Michel Van der Aa who wasfeatured guest composer-in-residence.BroadcastsThe ABC continues to providewonderful support through regularbroadcasts of WASO concertsthroughout the year, and special thanksmust go to Karl Akers and Chris Whiteat ABC Classic FM. This year saw areturn to live broadcasts, with our 4thMorning Symphony concert beingbroadcast live around the country.Pops in the ParkWASO’s groundbreaking work inorchestral collaborations continued in2007 with Melbourne-based indie popband Augie March thrilling audiences atKings Park in February.These performances were recordedand fi lmed and broadcast on JTV andTriple J radio, and six tracks werereleased on a special Augie March CDon Sony BMG limited 2CD edition ofMoo, You Bloody Choir.Recordings & BroadcastsTwo notable recording projects wereundertaken in 2007, both for ABCClassics. Iain Grandage’s The Silencewas recorded with conductor KenYoung and is due for release in 2008.Simone Young and Lisa Gasteen joinedthe orchestra in recording a program ofRichard Strauss and Wagner. WASO’srecording of Mozart Horn Concertos,featuring horn virtuoso Lin Jiang andconducted by the legendary BarryTuckwell, was released in 2007 onABC Classics.ALNG Composer-in-ResidenceComposer-in-Residence James Ledgerwas commissioned to write a numberof works throughout the year, includinga suite of arrangements of Schubertsongs for Teddy Tahu Rhodes, theabove-mentioned Trumpet Concerto, anoccasional piece Fresco for theCorporate Dinner, and a number ofarrangements of Augie March songs.In addition, James was animportant contributor in other areas ofthe company, including pre-concerttalks, education projects and mentoring.Youth Education andDevelopment ProgramMusic for young people continues to bea priority at WASO, and we welcomedover 14,000 young people at our Openrehearsals, Fabulous Fridays,Morning Symphony concerts, WASO 5and EChO performances. EChO touredthis year to the Pilbara and Kimberley,taking music to schools and toindividuals who may never get a chanceto experience live classical music.WASO’s Cushion Concerts continueto grow in number, and demand isexceeding capacity at present.Young Performers AwardWASO hosted the Grand Final of theABC Symphony Australia YoungPerformer Award which was broadcastlive on ABC Classic FM, and recordedfor delayed broadcast on ABC TV.WASO member Shaun Lee-Chenwas the 2007 winner, performing theShostakovich Violin Concerto No 1 withJames Judd conducting.WASO ChorusThe WASO Chorus has had aremarkably good year, commencingwith performances of Elgar’s Dreamof Gerontius with Richard Hickox hereand in Melbourne, and fi nishing withthe monumental German Requiemof Brahms. There is a notable growthin vocal quality amongst individuals,and chorus director Marilyn Phillips isdeveloping a distinctive WASO Chorus‘sound’. A series of vocal assessmentsintroduced in 2007 will ensure thatquality is maintained and developed.Symphony in the CityThe year ended with an outstandingperformance at the Esplanadefeaturing WASO conducted by GuyNoble with guest soloists ShaunLee-Chen, Nicole Youl and JamesEgglestone, to an audience of 12,000.This is the fi rst time this event has beenpresented at this venue, and it provedto be a stunning success. WASOwas joined by the Swan Bells and theartillery of the 7 Field Battery AustralianArmy for a rousing fi nale ofTchaikovsky’s 1812 Overture.08

EDUCATIONThe West Australian SymphonyOrchestra Youth Education andDevelopment Program seeks to providea dynamic, responsive educationprogram. Through a close partnershipwith schools and educators, WASO isable to give young people a wealth ofdiverse music and educationopportunities, creating a deeperunderstanding and appreciation ofclassical music.In 2007 the Youth Education andDevelopment Program presented 92concerts and workshops designedfor various student groups reachingover 14,000 young people throughoutWestern Australia.Early Childhood ProgramThe Early Childhood Programintroduces young children to theinstruments of the orchestra throughan interactive performance by TheEducation Chamber Orchestra (EChO).In 2007 EChO performed eleveninteractive Cushion Concerts. Theseconcerts included a have-a-gosession on an instrument along with theopportunity for the children to meet amusician. Young people attended withparents or child groups acknowledgingthe interactive needs of students atthis age and the importance of parentalinvolvement in the learning process.In 2007 2,759 young children attendedan EChO Cushion Concert.10

CORPORATE DEVELOPMENT& PHILANTHROPYIn 2007, the West Australian SymphonyOrchestra’s revenue from corporatepartnerships and philanthropy remainedstrong. The total income from bothsponsorship and donations was$3,004,727.Corporate DevelopmentIn 2007, WASO had one hundredcorporate partnerships and totalrevenue from sponsorship was$2,659,139. Of this, $2,067,584or 78% was cash and the remaining$591,555 or 22% was in-kind.All in-kind support provided directoperational cash savings. Additionalrevenue to the amount of $17,338 wasreceived from corporate partners forspecial hospitality packages.Emirates Airline completed its fi fth yearas WASO’s Principal Partner. During2007 a further three year partnershipwas agreed between Emirates andWASO with Emirates remaining asWASO’s Principal Partner to the endof 2010. The partnership continues toprovide valuable mutual benefi ts.It remains one of the State’s mostprestigious sponsorships.Other major corporate partners during2007 were Ernst & Young (PlatinumPartner), Wesfarmers Arts (PlatinumPartner), Synergy (Summer SeriesPartner), Plan B Wealth Management(Great Classics Partner), BHP BillitonPetroleum (Gala Concert Partner), Cityof Perth (Civic Partner), WoodsideEnergy (Youth Education &Development Program Partner),University of Western Australia(Concertmaster Partner), CNOOC(China Exchange Program Partner),CBH Group (EChO Ensemble &Wheatbelt Project Partner), BPAustralia (North West Touring Partner),Chevron Australia (CommunityDevelopment & Symphony of SmilesPartner), Alcoa Foundation (WASOChorus Partner), Blake DawsonWaldron (WASO at the Gallery SeriesPartner), Hawaiian ManagementGroup (Morning Symphony SeriesPartner), ConocoPhillips (MentoringProgram Partner) and World ArtistPartners Ardross Group ofCompanies, Broad Construction,John Holland, Lepley Properties,Japan Australia (MIMI) Pty Ltd, Mitsui& Co (Australia) Ltd. and Vasse Felix.PhilanthropyWASO’s new philanthropy programcontinued its successful growth during2007. During these early stages ofdevelopment, the program’s growthand appeal is vitally important to itslong-term success. It was very pleasingto see that contributions had increasedby 83% over donations in 2006, withtotal donations of $328,250. Donationsfrom Patrons ($500 or above) totalled$314,704 while general donationsunder $500 totalled $13,546.The number of Patrons increased fromeighty-four (84) at the end of 2006 toone hundred and thirty-nine (139) bythe end of 2007.On 31 December 2007, WASO hadone hundred and thirty-nine Patrons, asfollows:2006 2007Stradivari Circle 1 2Symphony Circle 2 4Maestro Patrons 12 15Virtuoso Patrons 6 11Principal Patrons 21 34Tutti Patrons 42 7384 13912We welcomed the following newpartners during 2007: Home BuildingSociety (Symphony in the City Partner),Inpex (World Artist Partner), Lexus ofPerth (Luxury Vehicle Partner), RAC(Community Access Partner),Mondoluce Lighting (Illuminating NotesPartner), Barrington Consulting Group(Strategic Planning Partner), Abbott &Co Printers (Keynote Partner),Leighton (Keynote Partner),Maunsell (Keynote Partner), NWQCapital Management (KeynotePartner), Perron Group (KeynotePartner), Placer Management Group(Keynote Partner), Mitsui E&P (KeynotePartner) and Woodside ValleyFoundation (Keynote Partner).Pianohaas and Vegetal becameSymphony Supporter Partners.During 2007, several of WASO’sbusiness partnerships were recognisedwith Awards. WASO’s partnership withCBH Group to tour the Wheatbelt in2006 and 2007 won the prestigiousCity of Sydney Encouragement Awardin the Australian Business ArtsFoundation Awards. This Awardrecognised a major and successful fi rsttime arts partnership.At the Western Australian Business andthe Arts Partnership Awards the CBHGroup Wheatbelt Touring Partnershipwon the Award for Commitment toRegional Arts and Culture and WASO’spartnership with L7 Solutions wasHighly Commended in the category ofBest Small or Medium SizedPartnership.WASO’s success in corporatedevelopment can be attributed toWASO’s unique positioning in thecorporate sponsorship market in theState. A partnership with the Orchestracontinues to offer unique marketpositioning and networkingopportunities, brand profi ling andsuperior corporate hospitality. Inaddition, WASO always seeks to delivervaluable benefi ts beyond its contractualobligations. The Orchestra continuesto pride itself on its ability to meet theneeds and expectations of its corporatepartners.The Patrons & Friends Committee,with the support of WASODevelopment staff, developed andmanaged a number of activities andevents for the Patrons & Friends ofWASO. One of the most signifi cantevents was a Patrons’ Lunch at RoyalPerth Yacht Club. The lunch wasattended by about one hundred Patronsand ABC Classic FM presenter GrahamAbbott was the guest speaker.The lunch was very successful andappreciated by all who attended.Corporate Partners associated with thePatrons & Friends of WASO areThe Perth Mint and Plan B WealthManagement. The Perth Mint continuesto provide Patrons with a pin toacknowledge their support, as well asmaking the Perth Mint available as afunction space to Patrons and Friends.Plan B Wealth Managementsponsors the Patrons Lunch.The support from both partners hasprovided a very important contributionto the successful development of thePatrons & Friends of WASO.WASO gratefully acknowledges thecontribution made by members of thePatrons & Friends Committee, inparticular the President, ProfessorNorman Etherington and the VicePresident, Max Collins. We also thankthe many volunteers that contribute theirtime to our cause.

2007 CORPORATE PARTNERSCivic PartnerYouth Education &Development PartnerChina ExchangeProgram PartnerCommunity Development &Symphony of Smiles Partner14

The Perth MintIlluminating Notes PartnerStrategic Planning PartnerThe West Australian SymphonyOrchestra is assisted by theAustralian Government through theAustralia Council, its arts fundingand advisory body.15

WASO HOLDINGS LTDCORPORATE GOVERNANCEGeneralAs the largest performing arts groupin Western Australia, WASO iscommitted to high standards ofcorporate governance.The West Australian SymphonyOrchestra Pty Ltd is a wholly ownedsubsidiary of WASO Holdings Limited.The Board must consist of a maximumof ten directors.The Board of both companies isidentical and is currently made up ofeight highly qualifi ed individuals withcredentials across a wide spectrumincluding backgrounds in business,music, law, accounting, audit,marketing, investment and banking.Role of the BoardThe Board is responsible for providingstrategic guidance to the Group,and for the effective oversight ofmanagement. As such the Board isaccountable for the West AustralianSymphony Orchestra’s overallperformance and for ensuring theGroup performs its functions in amanner consistent with soundcommercial practice.The Board has adopted a formal charterwhich defi nes the roles andresponsibilities of the board andmanagement. A separate board policy(BS-004 “Authority Limits”) ensures anappropriate delegation of authority tomanagement.The Board sets the Group’s keyobjectives and strategies through arolling three year strategic plan, whichis revised annually. It also approves theartistic program and budget on anannual basis, and monitors the majorrisks facing the organisation.New Board members are providedwith appropriate information to ensurethat they understand their roles andresponsibilities, including the BoardCharter, Constitution and other relevantinformation.Board Sub-CommitteesIn order to deal with the many issuesthat confront the Orchestra and toassist the Board in the discharge of itsresponsibilities, a number of Boardsub-committees have been formed.These comprise the following:ArtisticProf Margaret Seares AOFinance, Risk & AuditFiona HarrisWilliam BlokingJulian SherDevelopmentBryan TaylorBarrie LepleyMarketing and SalesBryan TaylorAccommodationJanet Holmes à Court ACJulian SherBarrie LepleyThe sub-committees each have acharter that clearly defi nes the role ofthe committee, its members, termsof reference and duties.The sub-committees meet on aregular basis and meetings areformally minuted.The minutes are tabled at Boardmeetings and any issues raised fromthe minutes are discussed and dealtwith as appropriate.The Board sub-committee structureis regularly reviewed.This Committee reporting structureallows the Board to receive and reviewregular comprehensive reports on allkey business areas.Board Size, Composition &Terms of AppointmentThe Board is comprised of anappropriate number of wellqualifi ed individuals who have a properunderstanding of the current and futureissues facing the organisation.The composition of the Board isregularly reviewed to ensure that thecomposition meets the current andfuture needs of the Company.Directors are appointed for specifi cterms and re-appointment is notautomatic. The Board does not believethat a maximum term of tenure wouldbe in the best interests of the Company.Ethical Decision MakingThe Board is committed to maintainingethical and responsible decision makingprocesses based on the principles offairness, integrity and honesty and toensure compliance with Australian lawsand regulations.Directors who may have a materialpersonal interest in a matter to beconsidered by the Board or a boardcommittee are required to make thenature of that interest known and mustnot be present while the matter is beingconsidered. Details of such disclosuresare recorded in the minutes of themeeting. Where an issue to beconsidered by the Board or a boardcommittee is thought to present aDirector with a potential confl ict ofinterest, that Director will not beprovided with the related material inthe fi rst instance.The Board has adopted the code ofconduct promulgated by the AustralianInstitute of Company Directors.16

Integrity in Financial ReportingThe Board requires the CEO andCFO (Executive Manager – BusinessServices) to attest in writing that theGroup’s fi nancial reports present a trueand fair view of the Group’sfi nancial condition and operationalresults and are in accordance withrelevant accounting standards.The Board has established an AuditCommittee that has a formal charterand includes at least one member whohas fi nancial expertise. The AuditCommittee considers the effectivenessof the external auditor on aregular basis.Management of Financial RiskThe Board has approved a riskmanagement policy and implemented arisk management program, designed toidentify the sources of risk, quantify theimpact of these risks and control andreduce risk through practical and costeffective measures.Remuneration PracticesThe Board adopts remuneration policiesthat are designed to attract and retaintalented and motivated individuals andto encourage enhanced companyperformance. The Board has input tothe remuneration of the CEO andPrincipal Conductor.Directors do not receive anydirectors fees.Interests of StakeholdersThe legitimate interests of stakeholdersare recognised by the Board.Procedures have been established toguide compliance with legal obligationsin areas such as OHS and to ensurethe timely provision of relevantinformation to funding agencies.The program involves the developmentof standards throughout the Group,which require awareness and actionfrom all sub-committees to minimiserisks and losses. In addition, theGroup uses risk hedgingtechniques, including insurance, toreduce the fi nancial impact of anyuncontrollable or catastrophic losses.The Group carries suffi cientinsurance for the size and nature of itsbusiness to protect its assets.The Group’s risk managementframework is reviewed annually by theBoard and the risk environment ismonitored regularly for changes thatmay be relevant to the Group.Board Performance AppraisalA comprehensive board performanceappraisal process has yet to beimplemented, however the Chairmanundertakes an ongoing review of theeffectiveness of the Board.Front L to R: Fiona Harris, Bryan Taylor, Prof. Margaret SearesBack L to R: Julian Sher, Barrie Lepley, Keith Kessell, William Bloking17

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FINANCIAL STATEMENTSWASO Holdings LimitedABN 22 122 779 739Annual Financial Reportfor the period from incorporation on21 November 2006 to 31 December 2007ContentsPageDirectors’ Report 20Income Statement 26Balance Sheet 27Statement of Changes in Equity 28Cash Flow Statement 29Notes to the Financial Statements 30Directors’ Declaration 48Auditor’s Independence Declaration 49Independent Audit Report 5019

DIRECTORS REPORTfor the period ended 31 December 2007The directors present their report together with the financial report of WASO Holdings Ltd (the ‘Company’)for the periodfrom incorporation on 21 November 2006 to 31 December 2007 and the independent auditor’s report thereon.DIRECTORSThe directors, at any time during or since the financial period, are:Janet Lee Holmes à Court (Chairman) Appointed 21 November 2006Julian Louis Sher Appointed 21 November 2006James Barris Lepley Appointed 21 November 2006Professor Margaret Seares Appointed 21 November 2006Richard James Barr Goyder Appointed 21 November 2006 Resigned 11 June 2007Fiona Elizabeth Harris Appointed 21 November 2006Bryan Richard Strangman Taylor Appointed 21 November 2006William Frederick Bloking Appointed 21 November 2006Keith Kessell Appointed 11 June 2007Janet Holmes à Court AC, BScJanet Holmes à Court is Chairman of Heytesbury Pty Ltd, a family-owned company with extensive business interests inAustralia. The main enterprises in the Heytesbury Group are: Heytesbury Beef, a large cattle breeding company whichexports live feeder and breeding cattle from properties in Australia to South East Asia; Vasse Felix, one of the major wineriesin the Margaret River Region of Western Australia; Heytesbury Thoroughbreds, a thoroughbred breeding operation, and theHolmes à Court Collection, one of Australia’s leading indigenous and 20th Century Australian art collections.Mrs Holmes à Court is also Chairman of the John Holland Group, Australia’s most diversified construction and engineeringcompany; the West Australian Symphony Orchestra Pty Ltd; the Australian Children’s Television Foundation and the UrbanDesign Centre of WA. She is also a Board Member of Vision 2020 Australia, a Governor of Sony Foundation Australia andBoard Member of the Rio Tinto WA Future Fund. She is a science graduate from the University of Western Australia andtaught science for a number of years before working more closely with family business matters.Janet has also received numerous awards and acknowledgements for her involvement in business, the arts, socialdevelopment, education and health.Julian Sher BA, LLB, MBAJulian Sher has been a Commercial Litigation Partner at Corrs Chambers Westgarth, Lawyers and its predecessor firm since1990. Julian acts for some of Australia’s largest corporations, specialising in commercial and corporate law, insolvency,banking and finance. Areas of speciality include corporate governance, commercial fraud, defamation and the operation ofthe wholesale electricity market. Julian has been a member of the Ethics Committee of the Law Society of Western Australiafor over 20 years. He is a former Partner-in-Charge of the Perth Office of Corrs Chambers Westgarth, Lawyers.Julian is also a Director of West Australian Symphony Orchestra Pty Ltd.James Barris Lepley BA (Yale), MBA (Wharton-Dist)After 20 years as a banker engaged principally in international arbitrage and international corporate finance, Mr Lepleynow devotes much of his time to two businesses of which he is chairman. Lepley Properties develops and owns commercialproperty principally in Australia, Germany and China. Sanur Pty Ltd is the holding company for Lepley Properties. SeacrestAsset Pty Ltd invests in private as well as public-listed companies in Europe.20

DIRECTORS REPORTfor the period ended 31 December 2007Mr Lepley is a Foundation Benefactor of the Art Gallery of Western Australia, a Life Member of the Beta Gamma SigmaSociety, a member of the Strategic Resources Committee of the University of Western Australia, Chevalier de Confrérie(Vougeot), author of Margaret River Style and a Director of the West Australian Symphony Orchestra Pty Ltd.Margaret Seares AO PhD (UWA), FAICD, AMusAMargaret Seares has been professionally involved with arts throughout her working life, having moved from being a lecturerin Music at The University of Western Australia, through to being the Head of the School of Music, and then on to beingthe Chief Executive of the West Australian Department for the Arts (now Culture & the Arts) and then Chair of the AustraliaCouncil for the Arts for the Federal Government. She has, over the past 5 years, been Senior Deputy Vice Chancellor atUWA. She has also been a director of a range of arts and culture boards and councils, both at the national and state levels.Margaret is also a Director of West Australian Symphony Orchestra Pty Ltd.Fiona Harris BComm FCA FAICDFiona Harris has been a professional non-executive director for the past 12 years, holding positions with a variety of publiclisted and private companies, public sector and not for profit boards. Fiona began her career with chartered accountantsKPMG and was a partner in their Sydney office when she left that organisation in December 1994. During her 14 years withKPMG, Fiona worked in Perth, San Francisco and Sydney specialising in financial services and superannuation. She was alsoinvolved in capital raisings, due diligence, flotations, capital structuring of transactions and litigation support.Fiona is Director of Vulcan Resources Limited, Perron Group Ltd, PG Holdings Ltd, Heytesbury Pty Ltd, West AustralianSymphony Orchestra Pty Ltd, and Chairman of Barrington Consulting Group Pty Ltd. She is President of the WA division ofthe Australian Institute of Company Directors and a member of their National Board.Bryan Taylor AFFAll, DipFP, CFP, FAICD, CDBryan commenced in the insurance industry at a time when the personal financial planning industry was in its infancy.His agency business specialised in investment advice from 1985 onwards and led to the formation of the specialist feebased advisory firm, which became Plan B Wealth Management. Bryan was succeeded by Denys Pearce as ManagingDirector in 2004, but has remained involved in guiding the strategic direction of Plan B in his role as Chairman and ChiefInvestment Officer.Bryan has over 25 years of experience in wealth management and was among the first group of Australian financialplanners to complete a Diploma of Financial Planning and to be awarded the designation “Certified Financial Planner” bythe International Association for Financial Planning (Australia).Bryan is currently Executive1Chairman Plan B Wealth Management Ltd and a director of West Australian SymphonyOrchestra Pty Ltd.William F. (Bill) Bloking FAICD, BS, Mechanical Engineering (summa cum laude)Bill Bloking has more than thirty-three years of experience in the international oil and gas sector, having worked both forExxonMobil and BHP Billiton Petroleum in Asia, Australia, Europe, the USA, and South America.Bill was formerly the President, Australia/Asia Gas for the BHP Billiton Group. In that role he had overall accountability forBHP Billiton’s international LNG business as well as its domestic gas business in Australia. Prior to joining BHP Billiton, Billspent 24 years with ExxonMobil, where he held a variety of senior executive positions.Bill is a Fellow of the Australian Institute of Company Directors. He is currently the Chairman of Norwest Energy, CoolEnergy Limited, and Cullen Wines (Australia), and Deputy Chairman of KAL Energy, Inc. He also is a non-executive directorof Nido Petroleum, the John Holland Group, Delta Pacific Mining, and the Lions Eye Institute, West Australian Symphony21

DIRECTORS REPORTfor the period ended 31 December 2007Orchestra Pty Ltd, and is a Governor of the American Chamber of Commerce in Australia, a Councillor of the West AustralianBranch of the Australian Institute of Company Directors, a member of the Advisory Board of the University of WesternAustralia’s Confucius Centre, and an Adjunct Professor at Murdoch University.Keith KessellKeith is a senior executive with Wesfarmers, one of Australia’s largest public companies and is responsible for all aspectsof external affairs as well as overseeing the Group’s sustainability programme and approach to climate change and energyusage. He formerly worked as a senior adviser in national politics and in the media and has considerable experience in publicaffairs, policy development and issues management.Keith is currently a director of West Australian Symphony Orchestra Pty Ltd & Sotico Pty Ltd.COMPANY SECRETARYPeter Andrew Freemantle Appointed 21 November 2006Peter is currently the Executive Manager Business Services for West Australian Symphony Orchestra Pty Ltd. Peter hasextensive knowledge of the company having been a member of the staff since 1995.PRINCIPAL ACTIVITIESWASO Holdings Ltd acquired West Australian Symphony Orchestra Pty Ltd from the Australian Broadcasting Corporationwith effect from 31 December 2006. The principal activity of the Company and its subsidiary West Australian SymphonyOrchestra Pty Ltd (together referred to as the “Group”) during the period was the performance of symphonic music.There were no significant changes in the nature of the activities of the Group during the period.REVIEW AND RESULTS OF OPERATIONSThe profit for the Group for the period ended 31 December 2007 was $1,510,322. Of this amount $1,388,194 wascontributed by the acquisition of West Australian Symphony Orchestra Pty Ltd. The amount contributed to the profit fromnormal operations was $122,128.Operations of West Australian Symphony Orchestra Pty Ltd are dependent on funding received from the Commonwealthand State governments through WASO Holdings Ltd. This funding along with sales and sponsorship revenue was used topresent performances of symphonic music.The Group presented the West Australian Symphony Orchestra, the Education Chamber Orchestra (EChO) and ‘WASO 5’in 156 performances to over 180,000 people during the period ended 31 December 2007. Performances were presentedin Perth at the Perth Concert Hall, His Majesty’s Theatre, King’s Park, ABC studios, Lake Karrinyup Country Club, theRiverside Theatre. Concerts were also presented in the Supreme Court Gardens, the Art Gallery of WA, Government House,the Esplanade and regionally with EChO in Northam, Cunderdin, Merredin and York. Demonstrations and instrumentalworkshops with the ’WASO 5’ were also held at schools in Broome, Port Hedland, Karratha, Dampier and Roebourne.COSTS OF DIVESTMENT FROM THE AUSTRALIAN BROADCASTING CORPORATIONThe net cost of divestment of $121,581 was a significant burden for the Group and was incurred due to the ineligibility ofthe Group to remain within the Commonwealth superannuation scheme, workers compensation and general insuranceschemes. The Group will continue to incur these additional costs, which are expected to increase over time and will seekappropriate funding as part of the 2008 government review of the impact of divestment on the former ABC orchestras.22

DIRECTORS REPORTfor the period ended 31 December 2007STATE OF AFFAIRSOther than the aforementioned acquisition of West Australian Symphony Orchestra Pty Ltd and the costs of divestment,in the opinion of the directors, there were no significant changes in the underlying state of affairs of the Company thatoccurred during the financial period under review.LIKELY DEVELOPMENTSThe Group will continue to present performances of music during the next financial year, with 170 performances currentlyscheduled to be presented during this period. The Group’s continuing success is dependent on increasing its current level ofgovernment funding, corporate sponsorship and ticket sales.DIRECTORS’ INTERESTSThe company is limited by guarantee and accordingly does not issue shares.DIRECTORS’ MEETINGSThe numbers of directors’ meetings held during the period from incorporation on 21 November 2006 to 31 December 2007and the number of meetings attended by each director were as follows:Director’s Meetings WASO Holdings Ltd A BNo. of meetings held 6J L Holmes à Court AC 5 6J L Sher 5 6J B Lepley 6 6Prof. M Seares AO 5 6R J B Goyder 3 6F E Harris 5 6B R S Taylor 5 6W F Bloking 6 6K Kessell2 2Director’s Meetings West Australian Symphony Orchestra Pty Ltd A BNo. of meetings held 8J L Holmes à Court AC 7 8J L Sher 7 8J B Lepley 8 8Prof. M Seares AO 5 8R J B Goyder 2 5F E Harris 6 8B R S Taylor 7 8W F Bloking 7 8N C Fisenden 1 3K Kessell 4 423

DIRECTORS REPORTfor the period ended 31 December 2007Audit Committee A BNo. of meetings held 1R J B Goyder 1 1J L Sher 0 1B R S Taylor 0 1Accommodation A BNo. of meetings held 1J L Holmes à Court AC 1 1J L Sher 1 1J B Lepley 1 1Marketing and Sales Committee A BNo. of meetings held 2B R S Taylor 2 2Finance Committee A BNo. of meetings held 3F E Harris 3 3W F Bloking 2 3Committee A BNo. of meetings held 4J B Lepley 4 4B R S Taylor 4 4Finance & Audit A BNo. of meetings held 2F E Harris 2 2W F Bloking 1 2J L Sher 2 2Column A – indicates the number of meetings attendedColumn B – indicates the number of meetings held during a director’s membership24

DIRECTORS REPORTfor the period ended 31 December 2007DIRECTORS’ REMUNERATIONDirectors are not paid any fees for their services as directors of the company.Details of remuneration of key management personnel are disclosed in Note 16.INDEMNIFICATION AND INSURANCE OF OFFICERSThe Company, through Director Protection Deeds, indemnified all directors against any liability to any person (otherthan the Company or a Related Body Corporate of the Company), incurred as a director or employee of the Companyor its subsidiary. The indemnity does not extend to any claim arising out of conduct involving a lack of good faith orbreach of duty.During the period, the Group has paid premiums in respect of directors’ and officers’ liability, legal expenses and insurancecontracts for the period ended 31 December 2007. Since the end of the period, the Group has paid or agreed to paypremiums in respect of such insurance contracts for the year ending 31 December 2008. Such insurance contracts insurepersons who are or have been directors or officers of the Company and its subsidiary against certain liabilities (subject tocertain exclusions).The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid as suchdisclosure is prohibited under the terms of the contract.EVENTS SUBSEQUENT TO BALANCE DATENo events have occurred subsequent to balance date that materially affect the accounts and are not already reflected inthe income statement and balance sheet.AUDITOR’S INDEPENDENCEThe directors have received a declaration of independence from the auditors. This report can be found on page 28 andforms part of this report.Signed in accordance with a resolution of the directors:Janet Holmes à Court ACChairmanPerth, dated 26 March 200825

INCOME STATEMENTfor the period 21 November 2006 to 31 December 2007Continuing Operations Consolidated Parent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007Note $ $RevenueFunding revenue 4 7,977,086 7,741,218Ticket sales 5 4,299,612 -Sponsorship and donations revenue 6 3,004,727 -Other revenue 7 417,850 -Total revenue 15,699,275 7,741,218Other Income - Discount on / contribution from acquisition 23 1,388,194 1,388,194Total Income 17,087,469 9,129,412ExpensesEmployee expenses 8 8,572,111 -Artist fees and expenses 2,082,593 -Marketing expenses 1,002,224 -Production expenses 1,731,208 -Funding to Subsidiary - 7,741,218Other expenses 2,189,011 -Total expenses 15,577,147 7,741,218NET PROFIT FOR THE PERIOD 1,510,322 1,388,19426The above income statement should be read in conjunction with the accompanying notes

BALANCE SHEETas at 31 December 2007ConsolidatedParent31 December 2007 31 December 2007Note $ $ASSETSCurrent assetsCash and cash equivalents 15a 3,985,936 -Trade and other receivables 9 716,119 -Inventories 26,598 -Prepayments 283,744 -Total current assets 5,012,397 -Non-current assetsProperty, plant and equipment 10 944,268 -Investment in subsidiary 1,388,204Total non-current assets 944,268 1,388,204TOTAL ASSETS 5,956,665 1,388,204LIABILITIESCurrent liabilitiesTrade and other payables 11 1,220,735 10Prepaid revenue 12 1,978,966 -Provisions 13 1,113,390 -Total current liabilities 4,313,091 10Non-current liabilitiesProvisions 13 133,252 -Total non-current liabilities 133,252 -TOTAL LIABILITIES 4,446,343 10NET ASSETS 1,510,322 1,388,194EQUITYReserves 14 1,595,626 -Accumulated Profits (Losses) (85,304) 1,388,194TOTAL EQUITY 1,510,322 1,388,194The above balance sheet should be read in conjunction with the accompanying notes27

STATEMENT OF CHANGES IN EQUITYfor the period from 21 November 2006 to 31 December 2007Consolidated Accumulated Totalprofits (losses) Reserves Equity(Note 14)$ $ $As at 21 November 2006 - - -Net profit for the period 1,510,322 - 1,510,322Transfer to Reserves Incentive Funding Scheme Reserve (1,595,626) 1,595,626As at 31 December 2007 (85,304) 1,595,626 1,510,322Parent Retained TotalEarningsEquity$ $As at 21 November 2006 - -Net profit for the period 1,388,194 1,388,194As at 31 December 2007 1,388,194 1,388,19428The above statement of changes in equity should be read in conjunction with the accompanying notes

CASH FLOW STATEMENTfor the period from 21 November 2006 to 31 December 2007ConsolidatedParent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007Note $ $Cash flows from operating activitiesCash receipts from customers 7,045,793 -Cash payments to suppliers and employees (14,434,943) -Grants received from government funding bodies 7,898,146 7,571,218Cash funding to subsidiaryNet cash provided by operating activities 15b 508,996(7,571,218)-Cash flows from investing activitiesNet cash on acquisition of subsidiary 23 3,264,269 -Interest received 323,273Payments for property, plant and equipmentNet cash flows provided by investing activities(110,602)3,476,940Cash flows from financing activitiesAmounts drawn down under loan 2,753,442 2,753,442Repayment of loan (2,753,442)(2,753,442)Net cash flows provided by financing activities - -Cash and cash equivalents at beginning of the period - -Net increase/(decrease) in cash held 3,985,936 -Cash and cash equivalents at end of the period 15a 3,985,936 -The above cash flow statement should be read in conjunction with the accompanying notes29

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 20071. CORPORATE INFORMATIONThe financial report of WASO Holdings Ltd and its controlled entity for the period from incorporation on 21 November2006 to 31 December 2007 was authorised for issue in accordance with a resolution of the directors on 26 March 2008.WASO Holdings Ltd (the parent) is a public company limited by guarantee, incorporated and domiciled in Australia.The address of the registered office is:GROUND FLOOR, 445 HAY STREET PERTH, WA 6000The nature of the operations and principal activities of the Group was the performance of symphonic music.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa) Basis of preparationThe consolidated financial report is a general purpose financial report and complies with the requirements of theCorporations Act 2001 and Australian Accounting Standards and other authoritative pronouncements of the AustralianAccounting Standards Board.The consolidated financial report has been prepared on a historical cost basis, and presented in Australian dollarsb) Statement of complianceThe consolidated financial report complies with Australian Accounting Standards, which include Australian equivalentsto International Financial Reporting Standard (‘AIFRS’). Some AIFRS and other Australian Accounting Standards containrequirements specific to not-for-profit entities that are inconsistent with IFRS requirements. The following AustralianAccounting Standards include not-for-profit specific requirements which have been applied in preparing this financialreport:AASB 1004: CONTRIBUTIONSCertain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yeteffective and have not been adopted by the Group for the reporting period ended 31 December 2007.c) Adoption of new accounting standardsThe Group has early adopted AASB 7 Financial Instruments; Disclosures which became applicable on 1 January 2007.The adoption of this standard has only affected the disclosure in these financial statements. There has been no affect onprofit and loss or the financial position of the Group.d) Basis of consolidationThe consolidated financial statements comprise the financial statements of WASO Holdings Ltd and its subsidiary as at 31December 2007.The financial statements of subsidiaries are prepared for the same reporting period as the parent company, usingconsistent accounting policies.In preparing the consolidated financial statements, all inter company balances and transactions, income and expensesand profit and losses resulting from intra-Group transactions have been eliminated in full.Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to beconsolidated from the date on which control is transferred out of the Group.30

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 2007The acquisition of West Australian Symphony Orchestra Pty Ltd (formerly West Australian Symphony Orchestra HoldingsPty Ltd) on 31 December 2006 was accounted for using the purchase method of accounting. The purchase method ofaccounting involves allocating the cost of the business combination to the fair value of the assets acquired and the liabilitiesand contingent liabilities assumed at the date of acquisition. Accordingly, the consolidated financial statements include theresults of West Australian Symphony Orchestra Pty Ltd for the period from its acquisition on 31 December 2006. Wherethe cost of acquisition is less than the Group’s share of the net fair value of the identifiable net assets of the subsidiary,the difference is recognized as a gain in the income statement, but only after reassessment of the identification andmeasurement of the net assets acquired.e) Going ConcernThe ability of the Group to maintain its operations is dependent inter alia on the continuing support of various Governmentsby way of grants. The Tripartite Agreement was renewed for the period 2007 - 2009 with Australia Council for the Arts andArtsWA. Therefore the financial statements have been prepared under the going concern principle.f) Revenue recognitionRevenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of goods andservices tax (GST). Revenue is recognised for the major business activities as follows:CONTRIBUTION INCOMEContribution income represents the fair value of assets received in excess of the cost of the assets where there is a nonreciprocal transfer and is recognised as income once the asset is controlled by the Group.FUNDING REVENUEFunding revenue is received from the Australia Council for the Arts (represented by the Major Performing Arts Board) andthe West Australian Department of Culture and the Arts. Funding is received based on payment schedules contained in afunding agreement between the funding bodies and West Australian Symphony Orchestra Pty Ltd and is recognised in thecalendar year for which it is intended under the terms of the agreement due to the conditional nature of the funding. Anyfunding not spent on the planned activities agreed between the parties at the start of each calendar year is required to berepaid. Special purpose funding, which requires the Group to fulfil an obligation outside its normal operations, is recognisedat the time the obligation is fulfilled.TICKET SALESRevenue from ticket sales is recognised in the Income Statement at the time of concert performance. Revenue from ticketsales in respect of productions not yet performed is included in the Balance Sheet as prepaid ticket sales under the CurrentLiabilities heading “Prepaid revenue”.SPONSORSHIP AND DONATIONS REVENUESponsorshipSponsorship commitments are brought to account as income in the year in which sponsorship benefits are bestowed.DonationsAll donations are brought to account as received.INTEREST INCOMERevenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortisedcost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, whichis the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the netcarrying amount of the financial asset.31

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 2007g) Foreign currency translationBoth the functional and presentation currency of the Company and its subsidiary is Australian dollars (A$).Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date ofthe transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchangeruling at the balance sheet date.Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-endexchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.h) Income Tax and other taxesThe Company and its subsidiary are exempt from income tax, capital gains tax and payroll tax by virtue of being a culturalorganisation established for the encouragement of music and a charitable institution.Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amountof GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances, the GST is recognised aspart of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated with theamount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset orliability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST componentsof cash flows arising from investing and financing activities which are recoverable from, or payable to, the AT0 are classifiedas operating cash flows.i) Acquisitions of assetsAcquired assets are accounted for at cost. Cost is measured as the fair value of assets given or liabilities incurred or assumedat the date of exchange plus costs directly attributable to the acquisition.j) Cash and cash equivalentsCash and cash equivalents include cash at bank and on hand, deposits held at call with financial institutions, and other shortterm,highly liquid investments with original maturities of three months or less that are readily convertible to known amountsof cash which are subject to an insignificant risk of changes in value.k) Trade receivablesTrade receivables, which generally have 14 day terms, are recognised initially at fair value and subsequently measured atamortised cost using the effective interest method, less an allowance for impairment.Collectibility of trade receivables is reviewed on an ongoing basis at an operating unit level. Individual debts that areknown to be uncollectible are written off when identified. An impairment provision is recognised when there is objectiveevidence that the Group will not be able to collect the receivable. Financial difficulties of the debtor or default paymentsare considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amountcompared to the present value of estimated future cash flows, discounted at the original effective interest rate.l) Property, plant and equipmentAll items of property, plant and equipment are stated at historical cost less accumulated depreciation and any impairmentlosses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only whenit is probable that future economic benefits associated with the item will flow to the Group and the cost of the item canbe reliably measured. All other repairs and maintenance are charged to the income statement during the financial period inwhich they are incurred.32

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 2007Items of plant and equipment, leasehold improvements, computer equipment, musical instruments, music library items andmotor vehicles are depreciated using the straight-line method over their estimated useful lives. Each class of asset in thecurrent period was depreciated over the following useful lives:ASSET CLASSLeasehold improvementsMusical instrumentsComputer equipmentStaging & other equipmentMusic libraryMotor vehiclesUSEFUL LIFE6 years15 yearsBetween 3 and 5 yearsBetween 3 and 15 years33 years5 yearsm) ImpairmentThe carrying values of plant and equipment are reviewed for impairment at each reporting date, with a recoverable amountbeing estimated when events or changes in circumstances indicate the carrying value may not be recoverable.The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. Impairmentlosses are recognised in the income statement.n) Leased plant and equipmentThe determination of whether an arrangement is or contains a lease is based on the substance of the arrangement andrequires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assetsand the arrangement conveys a right to use the asset. Payments made under operating leases (net of any incentives receivedfrom the lessor) are charged to the income statement on a straight-line basis over the period of the lease.o) Trade and other payablesTrade payables and other payables are carried at amortised cost and due to their short term nature they are not discounted.They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaidand arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.The amounts are unsecured and are usually paid within 30 days of recognition.p) Employee benefitsWAGES, SALARIES AND ANNUAL LEAVEThe provisions for employee benefits to wages, salaries and annual leave represent the amount which the Company hasa present obligation to pay resulting from employees’ services provided up to the balance date. The provisions have beencalculated at undiscounted amounts based on wage and salary rates which are expected to be paid when the liability issettled and include related on-costs.EMPLOYEE LOANSSome employees are lent monies which are used in turn to purchase musical instruments. These loans are secured by theinstruments themselves. Amounts outstanding are recouped over time through contributions withheld from musicians’ salaries.SUPERANNUATION PLANSThe Company contributes to several superannuation plans. Employer contributions in relation to the period ended 31December 2007 have been expensed against income.LONG SERVICE LEAVEThe long service leave liability represents the present value of the estimated future cash outflows to be made by theemployer resulting from employees’ services provided up to the balance date. Liabilities for employee benefits which are33

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 2007not expected to be settled within twelve months are discounted using the rates attaching to national government securitiesat balance date which most closely match the terms of maturity of the related liabilities. In determining the liability foremployee benefits, consideration is given to future increases in wage and salary rates, and the Group’s experience with staffdepartures. Related on-costs have also been included in the liability.q) Investment in subsidiaryInvestments in a subsidiary are initially accounted for at cost being the fair value at the date of acquisition. After initialrecognition, investments are carried at cost less any provision for impairment.3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONSThe preparation of the financial statements requires management to make judgements, estimates and assumptions thataffect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates inrelation to assets, liabilities, contingent liabilities, revenue and expenses. The following critical accounting policies have beenidentified for which significant judgements, estimates and assumptions are made.Impairment of Non-financial assetsThe Group assesses impairment of its non-financial assets at each reporting date by evaluating conditions specific tothe Group and to the specific asset. If an impairment trigger exists the recoverable amount of the asset is determined.Management do not consider that the triggers for impairment have been significant and these assets have not been testedfor impairment in this financial period.Estimate of Useful LivesThe estimation of useful lives of assets is based on historical experience. The condition of assets is assessed periodically andconsidered in relation to the remaining useful life of the asset and adjustments made to useful lives as appropriate.4. FUNDING REVENUE Consolidated Parent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $Australia Council for the ArtsBase funding 5,431,691 5,431,691Orchestral review funding 440,608 440,608ArtsWABase funding 1,733,722 1,733,722Orchestral review funding 135,197 135,197Touring funds 53,300 -Multicultural Arts Marketing Ambassadors Strategy funding 22,300 -Additional hall hire funds 160,268 -Total funding revenue 7,977,086 7,741,21834

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 2007The Group currently has a three year contract securing base funding in place with the Australia Council for the Arts and theWestern Australian Department of Culture and the Arts which commenced on 1 January 2007 and expires on 31 December2009. The Group also has an Orchestra review Funding Agreement in place which provides additional funding for theimplementation of certain recommendations of the “A NEW ERA - Orchestras Review Report 2005” from 1 January 2007to 31 December 2009. This agreement is with the Australia Council for the Arts and the Western Australian Department ofCulture and the Arts and expires on 31 December 2009.Under the agreements, funding is initially provided to WASO Holdings Ltd and is subsequently transferred to West AustralianSymphony Orchestra Pty Ltd under a separate funding agreement between the parent company and its subsidiary.5. TICKET SALES Consolidated Parent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $Subscriptions 1,461,341 -Single night 2,838,271 -Total ticket sales 4,299,612 -6. SPONSORSHIP AND DONATIONS REVENUE Consolidated Parent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $Sponsorship 2,659,139 -Donations 328,250 -Other private sector revenue 17,338 -Total sponsorship and donations revenue 3,004,727 -7. OTHER REVENUE Consolidated Parent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $Interest 323,273 -Other revenue 94,577 -Total other revenue 417,850 -35

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 20078. EXPENSESThe net profit from ordinary activities has been arrived at after charging the following items:ConsolidatedParent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $Funding to subsidiary - 7,741,218Depreciation:Leasehold Improvements (70,821) -Musical Instruments (37,477) -Music Library Scores (4,393) -Computers (32,134) -Plant & Equipment (38,687) -Motor Vehicles (17,951) -Total Depreciation (201,463) -Operating lease rental expense 128,907 -Net loss on disposal of property, plant & equipment 600 -Employee expenses:Salaries and wages 7,267,976 -Superannuation 1,010,877 -Workers compensation 153,103 -Other employee expenses 140,155 -Total employee expenses 8,572,111 -36

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 20079. TRADE AND OTHER RECEIVABLESThe net profit from ordinary activities has been arrived at after charging the following items:a) Trade and other receivablesConsolidatedParent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $CurrentTrade debtors 716,119 -Total trade and other receivables 716,119 -b) Past due but not impairedTrade debtors aging0 to 60 days 709,357 -61 to 90 days 6,762 -Over 90 days - -Total trade debtors 716,119 -As of 31 December 2007, trade debtors of $6,762 were past due but not considered to be impaired as there is no objectiveevidence at reporting date that the Group will not be able to collect all amounts due.c) Fair ValueDue to the short term nature of these receivables, the carrying value is assumed to approximate their fair value.37

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200710. PROPERTY, PLANT AND EQUIPMENT - CONSOLIDATEDReconciliation of carrying amounts at the end of the periodPeriod ended 31 December 2007LeaseholdImprovementsMusicalInstrumentsMusic LibraryScoresComputersPlant &EquipmentMotorVehicles$ $ $ $ $ $ $TotalBalance at 21 November 2006 - - - - - - -Acquisition of subsidiary (Note 23) 206,880 474,380 130,889 31,131 145,598 46,851 1,035,729Additions 49,263 17,783 8,699 34,857 - - 110,602Disposals - (600) - - - - (600)Depreciation expenses (70,821) (37,477) (4,393) (32,134) (38,687) (17,951) (201,463)Balance at 31 December 2007net of accumulated depreciation 185,322 454,086 135,195 33,854 106,911 28,900 944,268At 31 December 2007Cost 256,143 491,563 139,588 65,988 145,598 46,851 1,145,731Accumulated depreciation (70,821) (37,477) (4,393) (32,134) (38,687) (17,951) (201,463)Closing balance 185,322 454,086 135,195 33,854 106,911 28,900 944,268The parent company does not hold any property, plant and equipment, so only the consolidated property, plant andequipment are shown.38

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200711. TRADE AND OTHER PAYABLESConsolidatedParent31 December 2007 to 31 December 2007$ $Accruals 230,299 -Trade and other creditors 990,436 10Total trade and other payables 1,220,735 10Total trade and other payables ageing0 to 60 days 990,436 1061 to 90 days - -Over 90 days - -Total trade creditors 990,436 10Fair ValueDue to the short term nature of these payables, the carrying value is assumed to approximate their fair value.12. PREPAID REVENUEPrepaid ticket sales 1,708,619 -Prepaid other 270,347 -Total prepaid revenue 1,978,966 -13. PROVISIONSEmployee benefitsCurrent provision for employee benefits 1,113,390 -Non-current provision for employee benefits 133,252 -Total Provisions 1,246,642 -39

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200714. EQUITY – CONSOLIDATEDConsolidated31 December 2007$ReservesReserves Incentive Funding scheme 1,595,626The amounts paid or payable by each of the parties to the scheme are as follows:Consolidated$Australia Council 469,000ArtsWA 469,000Donations received 469,000Interest less Charges 188,6261,595,626Reserves Incentive Funding Scheme ReserveThese funds have been set aside in accordance with the Reserves Incentive Funding Scheme Agreement between the Group,Australia Council and the State of Western Australia. The funds received under the Reserves Incentive Funding SchemeAgreement, together with the Group’s contribution, are held in escrow for a period of 15 years ending 9 January 2022 andare subject to the terms of the Reserves Incentive Scheme Funding Agreement.The funds have not been used to secure any liabilities of the Group.40

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200715. CASH FLOW STATEMENT RECONCILIATIONa) Reconciliation of CashFor the purposes of the cash flow statement, cash includes cash on hand and at bank and short-term deposits at call.Cash and cash equivalents as at the end of the financial period as shown in the cash flow statement are as follows:ConsolidatedParent31 December 2007 31 December 2007$ $Cash 2,390,310 -Restricted cash assets (Note 14) 1,595,626 -(Reserves Incentive Funding Scheme)3,985,936 -b) Reconciliation of net profit from ordinary activities to net cash provided by operating activitiesNet profit 1,510,322 1,388,194Adjustments for:Loss on disposal of non-current assets 600 -Interest received (323,273) -Add non-cash items: Depreciation (201,463) -Sponsorship - -Less non-cash items: Discount on acquisition (1,388,194) -Contribution from acquisition -(1,388,194)Net cash provided by operating activitiesbefore change in assets and liabilities (402,008) -Changes in assets & liabilitiesDecrease / (increase) in receivables 323,994 -Decrease / (increase) in other assets (190,058) -Increase / (decrease) in payables 243,484 -Increase / (decrease) in prepaid revenue 97,243 -Increase / (decrease) in provisions 33,415 -Changes in assets & liabilities 508,078 -Net cash provided by operating activities 106,070 -41

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200716. DIRECTORS AND EXECUTIVE DISCLOSURESa) Details of key management personnelDirectors:J L Holmes à Court AC (Chairman) Appointed 21 November 2006J L Sher Appointed 21 November 2006J B Lepley Appointed 21 November 2006Professor M Seares AO Appointed 21 November 2006R J B Goyder Appointed 21 November 2006 Resigned 11 June 2007F E Harris Appointed 21 November 2006B R S Taylor Appointed 21 November 2006W F Bloking Appointed 21 November 2006K Kessell Appointed 11 June 2007Executives:J K VenningJ S M BoydK N CarnachanP A FreemantleM G McGuireG A WatersChief Executive OfficerExecutive Manager Corporate DevelopmentExecutive Manager MarketingExecutive Manager Business ServicesExecutive Manager Artistic PlanningOrchestra Managerb) Compensation of Key Management PersonnelConsolidatedParent2007 2007$ $Short term 724,601 -Other employment benefits 73,824 -798,425 -Directors have not received any payments for their services as directors.42

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200717. RELATED PARTIESa) DirectorsTransactions with DirectorsMs J L Holmes à Court AC has an interest as Chairman of the John Holland Group. John Holland Group contributed $25,000as a cash sponsorship to the Group during the period. Ms Holmes à Court also has an interest as Chairman of Vasse Felix PtyLtd. The Group paid $3,781 to Vasse Felix of which $2,891 was provided back to the Group as an in kind sponsorship.Ms Holmes à Court also contributed cash sponsorship of $30,000 in the name of Vasse Felix Pty Ltd to the Group duringthe period. Additionally, Ms Holmes à Court contributed a donation to the Group of $27,000 during the period.Mr J Sher has an interest as a partner in the firm Corrs Chambers Westgarth. His firm renders legal advice to the Group.All dealings with the firm are transacted under normal terms and conditions of business. During the period, the Group paidfees to Corrs Chambers Westgarth amounting to $91,816. Of this amount, $14,000 was provided as an in kind sponsorship.Additionally, Corrs Chambers Westgarth provided $11,000 cash sponsorship during the period.Ms F E Harris has an interest as a director of the company Barrington Consulting Group. Barrington Consulting Group hasprovided consultancy in relation to strategic planning. All dealings with the firm are transacted under normal terms andconditions of business. During the period, the Group paid fees to Barrington Consulting Group amounting to $19,836.The total amount was provided back to the Group as an in kind sponsorship.Mr B R S Taylor has an interest as Chairman of Plan B Wealth Management Ltd. Plan B manages the default superannuationfund for the employees of the Group. Amounts paid on behalf of the employees of the Group into this superannuation fundfor the period, amounted to $274,028. Plan B contributed $65,000 cash sponsorship to the Group and Mr Taylor’s wifecontributed $50,000 as a donation to the Group during the period.Mr J B Lepley has an interest as Chairman of Sanur Pty Ltd. Sanur Pty Ltd contributed $30,000 cash sponsorship to theGroup during the period. Mr Lepley also contributed a donation of $252 to the Group during the period.Mr W F Bloking has an interest as a Director of Cullen Wines (Australia) Pty Ltd. The Group paid $17,833 to Cullen Winesof which $7,568 was provided back to the Group as an in kind sponsorship. Mr Bloking also has an interest as a Director ofthe John Holland Group who as stated above contributed sponsorship of $25,000 to the Group. Mr Bloking also contributeda donation of $1,275 to the Group during the period.Transactions between the Group and entities of which directors have declared an interest, are transacted under normalterms and conditions of business. There were no contracts involving directors’ interests subsisting at period end exceptingsponsorship agreements under normal terms and conditions of business.b) SubsidiaryThe consolidated financial statements of WASO Holdings Ltd at 31 December 2007 include the parent Company’s whollyowned subsidiary, West Australian Symphony Orchestra Pty Limited which is incorporated in Australia and has the samebalance date as that of the parent entity. The carrying value of the investment is $1,388,194.43

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200718. AUDITORS REMUNERATIONConsolidatedParent21 November 2006 21 November 2006to 31 December 2007 to 31 December 2007$ $Auditing of the financial report 30,750 -No other benefits were received by the auditor19. COMMITMENTS AND CONTINGENCIESConsolidatedParent31 December 2007 31 December 2007$ $Operating lease (non-cancellable)Not later than one year 93,384 -Later than one year and not later than five years 146,631 -240,015 -The Group has operating leases for office accommodation and photocopier rental.Artist fees contracted for but not provided for and payableNot later than one year 176,065 -Later than one year and not later than five years 862,670 -1,038,735 -The Group has entered into contracts for performances scheduled to take place during 2008 and subsequent years.These amounts include the maximum expenditure required to satisfy the contracts with the artists.20. SEGMENT INFORMATIONThe Group operates predominantly in one business segment being the performing arts industry, specifically the staging ofsymphonic music within one geographic segment being Australia.44

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200721. FINANCIAL RISK MANAGEMENTThe Group’s principal financial instruments comprise cash and short-term deposits, receivables and payables.The disclosures are included under the relevant notes to the financial statements.The Group manages its exposure to key financial risks, including interest rate and currency risk in accordance with theGroup’s financial risk management policy. The disclosures are included under the relevant notes to the financial statementsa) Interest rate risk exposuresThe Group’s only financial asset that is exposed to variable rate interest is cash and cash equivalents of $3,982,736.The weighted average interest rate was 5.94%The parent company does not hold any cash or financial assets or liabilities so only the consolidated position is shown.b) Interest rate sensitivityThe following sensitivity analysis is based on the interest rate risk exposures in existence at the balance sheet date.The 0.5% sensitivity is based on reasonably possible changes, over a financial year, using an observed range of historicalAustralian deposit rate movements over the last 3 years.At 31 December 2007, if interest rates had moved, as illustrated in the table below, with all other variables held constant,net profit and equity relating to financial assets of the Group would have been affected as follows:ConsolidatedCompany2007 2007Judgements of reasonably possible movements: $ $Net profit - higher / (lower) 0.50% 27,121 --0.50% (27,121) -Equity* - higher / (lower) 0.50% - --0.50% - -*Excludes accumulated profits/ (losses)c) Net fair valueThe net fair value of financial assets and liabilities is equivalent to the carrying amount at balance date as disclosed in thebalance sheet and related notes. This is because either the carrying amounts approximate net fair value or because of theirshort term to maturity.d) Credit risk exposureThe Group’s maximum exposure to credit risk at balance date in relation to recognised financial assets which consist ofcash and cash equivalents and receivables is the carrying amount of those assets as indicated in the balance sheet andrelated notes.e) Liquidity riskThe Group’s objective is to secure sufficient funding from the federal and state governments for the next 5 years and tomaintain adequate cash balances. At 31 December 2007, the group has received commitments from these entities to befunded at current levels for 2008 and 2009. In addition, the funding agencies have undertaken to conduct a review offunding during 2008 in order to identify any funding deficiencies as a result of the implementation of the findings of the2004 orchestral review.45

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 200722. GOING CONCERNA significant portion of the Group’s annual revenue consists of funding from federal and state governments, through theAustralia Council for the Arts and the Western Australian Department of Culture and the Arts. As a result, the Group has aneconomic dependency on these entities.The Group currently has a three year contract securing base funding in place with the Australia Council for the Arts and theWestern Australian Department of Culture and the Arts which commenced on 1 January 2007 and expires on 31 December2009. The Group also has an Orchestra review Funding Agreement in place which provides additional funding for theimplementation of certain recommendations of the “A NEW ERA - Orchestras Review Report 2005” from 1 January 2007to 31 December 2009. This agreement is with the Australia Council for the Arts and the Western Australian Department ofCulture and the Arts and expires on 31 December 2009.The accounts have been prepared on a going concern basis as the Directors believe the Company will be able to pay itsdebts as and when they fall due within the next 12 months from the date of signing this report23. BUSINESS COMBINATIONOn 31 December 2006, WASO Holdings Limited acquired 100% of the shares of West Australian Symphony Orchestra PtyLtd (WASO) for a nominal value of $10 pursuant to the divestment plan from Australian Broadcasting Corporation (ABC).At the date of acquisition WASO was involved in the performance of symphonic music. The cost of business combinationwas settled by cash.The fair value and carrying amounts of assets and liabilities acquired as at the date of acquisition were:Consolidated$Property, plant and equipment 1,035,729Cash and cash equivalents 3,264,279Trade and other receivable 918,262Inventories 43,254Prepayments 77,0305,338,554Trade and other payablePrepaid revenueProvisions( 855,397)( 1,881,736)( 1,213,227)3,950,360Fair value of identifiable net assets acquired 1,388,204Discount on acquisition( 1,388,194)10Net cash inflow provided by acquisition is as followsNet cash acquired with the subsidiary 3,264,279Cash paid( 10)Net consolidated cash inflow 3,264,26946

NOTES TO FINANCIAL STATEMENTSfor the period from 21 November 2006 to 31 December 2007The excess of the fair value of net assets over the cost of business combination of $1,388,194 has been recognised asa discount on acquisition in the consolidated income statement as other income. This excess has been accounted foras a contribution in the books of the parent company.AASB 3 requires the Group to disclose the effect on the profit and revenues had the business combination taken placeon 21 November 2006, however it is impracticable to determine this as the date of incorporation of the parent is part waythough an accounting period.47

DIRECTOR’S DECLARATIONIn the opinion of the directors of WASO Holdings Ltd:(a) the financial statements and notes of the company and of the consolidated entity are in accordance with theCorporations Act 2001, including:(i) giving a true and fair view of the financial position of the Company as at 31 December 2007 and of their performance,as represented by the results of their operations for the financial period ended on that date; and(ii) complying with Accounting Standards and the Corporations Regulations 2001; and(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become dueand payable.Signed in accordance with a resolution of the directors:Janet Holmes à Court ACChairmanPerth, dated 26 March 200848

THE COMPANYPaul DanielPrincipal Conductor DesignateVladimir VerbitskyConductor LaureateVIOLINSJohn Harding (Concertmaster)Margaret Blades (Associate Concertmaster)Graham Pyatt (Acting Principal First Violin)Neil BarclayFleur ChallenAnna Chomicka-GoreckaStephanie DeanDorothy FordBeth HebertJane JohnstonDaniel IspasKen PeelerLouise SandercockJolanta SchenkJacek SlawomirskiBao Di TangJohn Ford (Section Principal 2nd Violin)Semra Lee (Associate Principal)Geoffrey BlackChristine ForstatZak RowntreeDavid PhillipsBrendon RichardsEllie ShalleyJane SerrangeliCerys ToobyDavid YehRebecca WhiteShaun Lee-ChenVIOLASBerian Evans(Associate Principal)Kierstan ArkleysmithNikola BabicAlex BroganKatherine DrakeAlison HallRachael KirkAllan McLeanHelen TuckeyCELLOSRod McGrath (Section Principal)Oliver McAslan (Associate Principal)Matthew HoyShigeru KomatsuEve SilverFotis SkordasTim SouthXiaole WuDOUBLE BASSESAndrew Rootes (Section Principal)Joan Wright (Associate Principal)Christine ReitzensteinLouise RossAndrew TaitMark ToobyFLUTESMary-Anne Blades(Associate Principal)Jill HaynesPICCOLOMichael Waye (Principal)OBOESJoel Marangella (Section Principal)Leanne Glover (Associate Principal)COR ANGLAISJay Harrison (Principal)CLARINETSAllan Meyer (Section Principal)Lorna CookBASS CLARINETAlexander Millier (Principal)BASSOONJane Kircher (Section Principal)Anne HendersonCONTRA BASSOONWendy Cooper (Principal)HORNSDavid Evans (Section Principal)Malcolm Stewart (Associate Principal)Robert Gladstones (Principal 3rd)Jennifer McLeod-SneydRachel SilverTRUMPETSDavid Elton (Section Principal)Evan Cromie (Associate Principal)Peter MillerTROMBONESJames Mann (Section Principal)Bruce ThompsonBASS TROMBONEPhilip Holdsworth (Principal)TUBACameron Brook (Principal)TIMPANIAlex Timcke (Principal)PERCUSSIONTim White (Section Principal)Troy Greatz (Associate Principal Percussion/Timpani)HARPSarah Bowman (Principal)52

EXECUTIVE OFFICEKeith VenningJo NevillARTISTIC PLANNINGMarshall McGuireCallum MoncrieffStephen McAllanPaula PhillipsAlicia WalterORCHESTRA MANAGEMENTGabrielle WatersAndrew ChambersKeith McGowanYvette SouthwoodBUSINESS SERVICESPeter FreemantleClare BannisterLiz MatherDiane WilsonCORPORATE DEVELOPMENTJames BoydJessica WaalMonique BeaudoireKathryn ClementsChief Executive Offi cerExecutive AssistantExecutive Manager Artistic PlanningProgramming AssistantArtist Liaison and Chorus AdministratorArtistic Planning CoordinatorEducation ManagerOrchestra ManagerProduction ManagerAssistant Orchestra ManagerMusic LibrarianExecutive Manager Business ServicesPersonnel AdministratorAccountantBusiness Services AssistantExecutive Manager Corporate DevelopmentCorporate Functions CoordinatorCorporate Relations CoordinatorCorporate Relations CoordinatorNew West Australian Symphony Orchestra employees:Stephanie Dean - tutti violinAlex Brogan - tutti violaEve Silver - tutti celloAndrew Rootes - Section Principal Double BassCallum Moncrieff - Programming AssistantAndrew Chambers - Production and Events ManagerLiz Mather - AccountantJessica Waal - Corporate Functions CoordinatorDavid Young - Graphic DesignerVicki Prince - Customer Service Offi cerAND FAREWELL TO:Sophie Kesoglidis - tutti violaJon Tooby - tutti celloBoguslaw Szczepaniak - Section Principal Double BassNeil Fisenden - Section Principal FluteCassandra Lake - Programming AssistantPaul Doyle - Production ManagerStephen Parish - Production AssistantAngela Miller - AccountantPaula McIndoe - (acting) AccountantMarisa Farrell - Administrator Corporate DevelopmentMike Barker - Graphic DesignerKellie Martin - Customer Service Offi cerWe thank them for their professional and personal contribution to the company.MARKETINGKelli CarnachanAlana ArnoldElsa BeilharzDavid YoungSarah GallinaghFrancine TonkinJosie AitchisonMargaret DawsVicki PrinceBeverley TrolioRobyn WestbrookExecutive Manager MarketingCustomer Service ManagerMarketing CoordinatorGraphic DesignerSales CoordinatorPublic Relations CoordinatorCustomer Service Offi cersFront L to R: Kelli Carnachan, Keith Venning (CEO), Gabrielle WatersBack L to R: Marshall McGuire, James Boyd, Peter Freemantle53

2007 GUEST ARTISTSCONDUCTORSGraham AbbottDavid AthertonStefan AsburyVladimir AshkenazyOleg CaetaniBrad CohenPaul DanielGeorge EllisKevin FieldSachio FujiokaJohn HardingRichard HickoxJames JuddJames MacMillanGuy NobleBen NortheySean O’BoyleKathy RubbiccoLalo SchifrinJeffrey TateMelvin TixRichard TognettiYan Pascal TortelierVladimir VerbitskySimone YoungLothar ZagrosekSOLOISTSGROUPSBurt Bacharach (piano/vocals) Augie MarchMargaret Blades (violin)Christchurch Grammar SchoolJoshua Bloom (bass)Hale SchoolJutta Boehnert (soprano)Penrhos CollegeGautier Capuçon (cello)Melbourne ChoraleJohn Chen (piano)The WhitlamsJosep Colom (piano)James Crabb (accordion)Brett Dean (viola)Nikolai Demidenko (piano)Diana Doherty (oboe)Phil Doncon (artist)Rachelle Durkin (soprano)Jimmy James Eaton (actor)James Egglestone (tenor)David Elton (trumpet)Evelyn Glennie (percussion)Ilya Gringolts (violin)Tasmin Little (violin)Nancy Maultsby (mezzo soprano)Allan Meyer (clarinet)Xavier Michelidis (actor)Cynthia Millar (ondes martenot)James Morrison (trumpet)Sue Noonan (presenter)Dianne Reeves (vocalist)Teddy Tahu Rhodes (baritone)Sally-Anne Russell (mezzo soprano)George Spartels (vocalist/presenter)Pamela Helen Stephen (mezzo soprano)Mark Storen (presenter)Cédric Tiberghien (piano)Lukáš Vondrácek (piano)Anton Scharinger (baritone)Dionne Warwick (vocals)Glenn Winslade (tenor)Alexey Yemtsov (piano)Nicole Youl (soprano)54

CONTACT DETAILSWASO Holdings LtdABN 22 122 779 739West Australian Symphony Orchestra Pty LtdABN 26 081 230 248PO Box 3041Perth Adelaide TerraceWA 6832445 Hay StreetPerth WA 6000Tel: 08 9326 0011Fax: 08 9326 0080Box Offi ce:Tel: 08 9326 0000Fax: 08 9326 0099waso.com.au