here - the Auckland Philharmonia

AUCKLANDPHILHARMONIAORCHESTRAANNUAL REPORT2010

ContentsWho We Are 2APO Board & Management 42010 Chairman’s Report 5Chief Executive’s Report 6The APO Audience 92010 Performance Highlights 9New Zealand Artists 11APO at Work 12Knowledge Counts – APO Education 13Financials 16Financial Statements 17Funders and Sponsors 28Chair Donors 29The Final Word 30Page 12010 Auckland Philharmonia Orchestra ANNUAL REPORT

lWho We AreAuckland Philharmonia Orchestra – 30 years playing for AucklandFrom its founding in 1980, the Auckland PhilharmoniaOrchestra has established itself as a valued cultural asset forthe Auckland region and is the city’s only resident full-time,professional symphony orchestra.Like the community it serves, the APO is made up of a culturallyrich and diverse group of musicians, all of whom are proud tobe Aucklanders and proud to play for Aucklanders.Each year, the APO presents a full season of symphonic worksin the Auckland region, supports both the NBR New ZealandOpera and the Royal New Zealand Ballet and collaborateswith some of New Zealand’s most innovative artists, includingin 2010 The Topp Twins and in the past Mika, Dave Dobbyn,Shapeshifter and Little Bushman.Renowned for its innovation, passion and versatility, the APOhas been and is the orchestra of choice for visiting internationalartists from Luciano Pavarotti, Placido Domingo, Jose Carrerasand Dame Kiri Te Kanawa to popular musicians such as DianaKrall (2010), Natalie Cole, Burt Bacharach, and Serj Tankian.The APO is equally recognised for its role in the community.Through its comprehensive Education programme the orchestrareaches over 25,000 participants each year, providing a widerange of opportunities for students of any age and ability fromall over the country.Fulfi lling its aim to make orchestral music available to thewidest possible audience, the orchestra also maintains acomprehensive programme of low-cost and free-accessevents across the region each year. Additionally, most APOperformances are broadcast live nationally and streamed online,allowing everyone the chance to share the excitement of aworld-class performance.Phot o Adrian Mallochloch2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 2

Our PurposeWe exist to enliven and enrich the lives of Aucklanders throughorchestral music.Our VisionWe are central to Auckland’s cultural heart and New Zealandersare proud of us for our exciting performances and connectionto our community.Our PromiseThese behaviours are the foundation of our way of being andform our promise to each other, our partners and our audienceregardless of the role any of us has within the orchestra:• Communicate the music• Excellence every day• Share the excitement• Passionate about Auckland• Engage the imagination• Be responsible and sustainableOur IdentityWe will:• have courage• be ambitious• be energetic and engaging• be global thinking and progressive• have a distinctive style• be focused on service to others• be educators• pursue artistic excellence• be resourceful.Page 32010 Auckland Philharmonia Orchestra ANNUAL REPORT

APO BoardAPO Senior ManagementRosanne Meo (Chairman)Jonathan BakerRichard EbbettJonathan Mane-WheokiMichael MoyesGeraint MartinKieran RafteryCHIEF EXECUTIVEBarbara GlaserMANAGER OF ARTISTIC PLANNINGAntony Ernst (until March 2010)Ronan Tighe (from April 2010)BUSINESS MANAGERAnn McShaneEDUCATION MANAGERLee MartelliDIRECTOR OF OPERATIONSJohn UreMARKETING AND DEVELOPMENT MANAGERSamantha Walker2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 4

2010 Chairman’s ReportIt is my pleasure to report on the yearended December 2010 on behalf of theBoard of the APO.Although the economic recessionary pressures that fi rst madethemselves felt in late 2008 continued to suppress demandfor most sectors, particularly the Arts community, for the APOit was another year of excitement and exhilaration, with someof our highest acclaims from both audiences and critics andcontinued constructive growth. Of particular note were thereviews and audience acclaim for our performances with ourMusic Director, Eckehard Stier, 18 sell-out concerts, enteringinto a joint-venture with the Ministry for Culture and Heritagefor the innovative Sistema Aotearoa project and achievingLeadership status recognition from Creative New Zealand.2010 also marked the “birth” of the new Auckland Council,heralded with our own gift to the Council and the city, JohnPsathas’ Fanfare for A Super City. For the APO this newstructure and the articulation of a vision for this city to be theworld’s most liveable city has provided us with a platform toachieve recognition of the artistic status of the APO and of themany ways that the city’s professional orchestra can contributeto its vibrancy.With the new Auckland Council and the fi rst full calendar yearof regional funding in place, the APO signifi cantly stepped upits outreach, education and community work, seeing this as anopportunity to engage with, and unite, our broad community.International city orchestras are more than artistic structures.They are social entities with economic benefi ts for their cities,and are integral parts of the fabric that gains their city renownand status. This is the APO’s role for greater Auckland. Werecognise that orchestras have a role to play outside theconcert hall. The growth and development of our education andother community programmes such as Remix the Orchestraand the APO Connecting programme is now one of thefundamental platforms of our activities, and critical for our futuredevelopment. As we go to print today, William Dart writes thatthe most recent of our concerts “was very much a celebrationof what Auckland Philharmonia Orchestra stands for – reachingout to the diverse communities of our Super City.”In 2010 we achieved revenue of $8 million. Our box offi cerepresents 28% of our total revenue and is of course oneof our critical barometers of audience participation. It wasencouraging that we sustained strong ticket sales for theyear in spite of the economy, with subscription income inparticular up more than 15% on 2009. The other obvious keymeasurements of success are our artistic reviews and audiencefeedback. Both of these were generally very positive, refl ectingthe orchestra’s high and growing standard.Sponsorship commitment remained high and at the end of2010 we were delighted to renew our partnership with APNNews & Media as well as partnerships with Plan B, Qantas, VillaMaria and Siemens. These diverse contributions exemplify therange of ways our partners help us build a better orchestra, andhow invaluable they are to extending the APO’s services to ouraudiences and the wider community.It is enormously encouraging how philanthropy is sustained indiffi cult times. Wherever possible our donors have stood by us,recognising how dependent we are on the engaged goodwilland support of this important part of the APO family.Many of the key trusts were signifi cantly affected byinvestment returns and this impacted on their ability tosupport organisations such as ours but gradually one has feltrenewed energy in this sector and again, commitment to theAPO remains strong. The APO Foundation, Guild and Friendshave also been especially active during this year, with strongcontributions being received from the Guild and Friends.At the end of a challenging and exciting year, we were delightedto report a small surplus for the APO, for the fourth consecutiveyear. My thanks go to my fellow Board members, as well as toBarbara Glaser and the management team for their continuedpassion for and commitment to the APO.Once again on behalf of the Board, my hearty congratulations tothe players and to Music Director Eckehard Stier and PrincipalGuest Conductor Roy Goodman, for continuing to take us on anexciting musical journey each week. It is a real privilege for all ofus to hear the fruits of your labours every Thursday.Page 52010 Auckland Philharmonia Orchestra ANNUAL REPORT

Chief Executive’s ReportWe also want to thank our management team, led soadmirably by Barbara, for all their dedicated work and unfailingenthusiasm for our orchestra.2010 has been a great year. We look forward to continuing togrow and develop as an organisation, giving pleasure to manyAucklanders and New Zealanders each week, and contributingeven more back to the city and the orchestral sector as awhole. We look forward with real excitement for what thecoming year will bring.Rosanne Meo on behalf of the Board of the APO.I present the 2010 annual report withgreat pleasure and immense pride.2010 was the APO’s 30 th anniversary and one of the mostsuccessful years in its history, both artistically and at the boxoffi ce. The orchestra boasted 18 full houses during the year,with subscription revenue up 22% on 2009. Overall the APOperformed to more than 113,000 people, and many thousandsmore via broadcast. Thirty fi ve APO concerts were broadcast onRadio New Zealand Concert, including 19 live broadcasts (bothon radio and online).Music Director Eckehard Stier continued his drive to both satisfyand challenge our musicians and our audiences with greatmusic, played at a level any international orchestra could beproud of.Stand-out performances included the New Zealand premiereperformance of Strauss’s Elektra in our Westpac Opera inConcert, with internationally acclaimed Elizabeth Connell inthe title role, supported by an outstanding New Zealand cast.Eckehard also led a powerful performance of Shostakovich’sEighth Symphony, and Mahler’s late masterpiece Das Lied vonder Erde (Song of the Earth). Other artistic highlights includedacclaimed violinist James Ehnes returning to perform Walton’sViolin Concerto, as well as lead/direct a performance of Vivaldi’sFour Seasons. Our Splendour of Vienna series featured twomore full houses – both performances of Beethoven’s 9 thSymphony, paired with Schoenberg’s Survivor from Warsaw,featuring Auckland Choral Society.Bach’s St Matthew Passion conducted by our Principal GuestConductor Roy Goodman, with a superb cast led by IanHoneyman as Evangelist and Teddy Tahu Rhodes as Christuswon Metro magazine’s Best Classical Concert of 2010, withElektra a close runner-up.APO also won the NBR’s Most Exciting Arts & Culture Companyaward in its Exciting Companies awards in July, and, in theQantas Media Awards, the Best Entertainment Programme forthe TV3 recording of Topp Twins & the APO.We were also delighted to be involved in the re-launch of theAuckland Town Hall organ, with two sold-out performances ofSaint-Saëns’ Organ Symphony. These were recorded for the fi rst2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 6

of the APO’s new recording label, APO Live. We look forwardto adding to the label in coming years, capturing highlights ofselected concerts for future enjoyment by our audience and awider community.The orchestra happily welcomed back artists with whom it hashad previous successful collaborations: Baldur Brönnimann,Arvo Volmer, Otto Tausk and Marko Letonja. We performed andrecorded with Maestro Letonja for our fi rst international releaseon Naxos – Ross Harris’s second and third symphonies.Many artists made their New Zealand and/or APO debuts in2010, none more eagerly anticipated than the internationallyacclaimed violinist Midori, who gave her fi rst Auckland concert,performing Beethoven’s Violin Concerto. We were also treatedto memorable performances from Andreas Boyde (New Zealandpremiere of Schoenfi eld’s Four Parables), Peter Jablonski,Andreas Brantelid, and many others.Our commitment to New Zealand music and musiciansremained strong, with performances by over 40 New Zealandartists and works by 17 New Zealand composers featuredthrough the year.We were proud to announce John Psathas as Composerin-Residencefor 2010 and 2011. Although the fruits of theresidency will be mainly evident in 2011, John’s input into theAPO’s education portfolio in 2010 was immense and rangedfrom inspiring the hip-hop artists in Remix the Orchestra, tomentoring young and emerging composers throughout the year.In 2010, our musicians visited 60 schools across the region,with our 30 APOPS (partnership) schools receiving six visitseach as part of this programme. APO musicians support musicteachers as well as mentor ensembles and individuals duringthese important and highly valued visits.APO Open Days were introduced to North Shore and Manukauin 2010, in addition to our regular Auckland appearance.Together these three days reached a total audience of almost5,000, many of whom took the opportunity to get “up close”to the orchestra, speaking with players and staff, trying theirhands at conducting and at the vast array of APO’s battery ofpercussion instruments. They witnessed performances from ourpartner schools’ ensembles as well as the entire APO, and therewere also backstage tours, open lessons with APO players, anda multi-media composition demonstration. These were welcomeopportunities to meet new friends and engage the public with itscity’s orchestra.Our connection to the South Auckland community is one ofwhich we are particularly proud, and in 2010 we developedthis in several ways. Our highly regarded Remix the Orchestraprogramme was continued with two events and attractedconsiderable positive media and artistic attention. The youngurban musicians who participate in the programme value theopportunity to get to know classically trained musicians, andin turn, our APO musicians enjoy the opportunity to expandtheir musical horizons in ways not normally associated with“orchestral” music.We also took Connecting with Music, a free education concert,to South Auckland, offering access to low decile schools in thearea. And through an intensive workshop/performance withManurewa High School, we workshopped and performed ahip-hop/classical crossover interpretation of Mozart’s opera DonGiovanni, directed by well-known opera director Linda Kitchen.We continued to build new initiatives to introduce audiencesto the delights of orchestral music, as well as deepen theenjoyment and understanding of our existing patrons. Unwrapthe Music, a new initiative which illustrates the history andconstruction of popular works before performing them, wasvery well received and will be further developed in 2011. As partof our 30 th year celebrations we introduced a low-cost accessprogramme for youth and people in their 30s (the latter called“$30 for 30s”).In the education arena we introduced The Big Play-In, anopportunity for secondary school students to play with theentire APO. We were joined by the North Shore Youth Orchestrafor the inaugural event, which was very successful and will befurther developed for a wider community in 2011.In the non-classical fi eld the orchestra had enormous fun withthe Topp Twins, with a specially produced concert that has sincebecome an award-winning TV programme and an internationallyreleased DVD. Anyone who attended that concert will neverlisten to the William Tell overture in quite the same way again!Page 72010 Auckland Philharmonia Orchestra ANNUAL REPORT

The APO Audience2010 Performance HighlightsGraph showing geographic profileof APO Audiences in 2010*25%NorthAuckland9%WestAuckland11%SouthAuckland4%Other51%AucklandCentral*source represents APO subscribers and supplied datafrom external ticketing provider.• Eckehard Stier conducts the New Zealand premiere ofRichard Strauss’ Elektra• Two sell-out performances with leading British organistThomas Trotter mark the orchestra’s fi rst performancewith the newly refurbished Auckland Town Hall organ. Theconcerts were recorded and issued as the fi rst CD releaseon APO Live• Midori makes her Auckland debut with the APO, performingBeethoven’s Violin Concerto• The APO presents the second performance of Ross Harris’scritically acclaimed second symphony and records the workfor release on the Naxos label• An outstanding performance of Bach’s St Matthew Passionwith Roy Goodman conducting and soloists including TeddyTahu Rhodes named Best Classical Concert of the Year byMetro magazine• Eckehard Stier conducts NZ premiere of Schoenfi eld’s FourParables, performed by pianist Andreas Boyde, whoseinterpretation is considered the benchmark• James Ehnes returns to play with the APO in a performanceof the Walton Violin Concerto• An outstanding Splendour of Vienna series which includedperformances of Mahler’s Das Lied von der Erde as well astwo sell-out performances of Beethoven’s Ninth symphonywith the Auckland Choral SocietyPage 92010 Auckland Philharmonia Orchestra ANNUAL REPORT

New Zealand ArtistsInstrumentalists:John Chen PIANOStephen Larsen VIOLINJohn Wells ORGANEmma Sayers PIANOLauren Bennett VIOLINSingers:Madeleine PierardAnna PierardAivale ColeChristopher LincolnHelen MedlynRichard GreagerTeddy Tahu RhodesRebecca RyanMorag AtchisonConal CoadRichard GreagerEmma SlomanGrant DicksonRachelle PikeKate SpenceEmma RoxburghJenny WollermanAndrew GloverDavid Griffi thsBen MakisiChoreographer:Sue McCraeDirector:Chris MooreOther Artists:The Topp TwinsMikaActors:Stuart DevenieTom McLeodMC:Owen ClarkeKevin KeysHelen MedlynJohn PuluChoirs:Auckland Choral SocietyAuckland UniversityChamber ChoirBlack Watch Singers ofSt Cuthbert’sThe Chapman Tripp OperaChorus of the NBR NewZealand OperaThe Graduate Choir, NZHamilton Civic ChoirLe’o Pacifi c VoiceMusica SacraConductors:Owen ClarkeDavid KayHamish McKeichMarc TaddeiKenneth YoungUwe GroddRupert d’CruzeIndra HughesPenny DoddComposers:Kenneth YoungGareth FarrPenny DoddWesley WebbYvette AudainDorothy BuchananJohn WellsStephen ClothierJohn FullerAnthony RitchieMichael VintenChris AdamsStephen MatthewsRobbie EllisAlex TaylorJohn ElmslyRoss HarrisComposer-in-Residence:John PsathasPage 112010 Auckland Philharmonia Orchestra ANNUAL REPORT

Kiwi KapersThis curriculum-linked concert for primary schools, featuresNZ music.• 4,515 attendees over 3 concerts in 2010Music Education Support for SchoolsEnsembles in Schools• Ensemble visits to schools reaching more than 2,200students (see Table 2 below)• Community performances in the Museum, public librariesand the Aotea Centre, for THE EDGE public programmeentitled Pick ’n’ MixTABLE 2Ensemble groups from the APO visited schools throughoutthe year. With an average audience of 140 students at eachensemble visit, more than 2200 students were exposed tothis facet of the APOPS programme.Albany Junior High School Howick CollegeAlbany Senior High School Liston CollegeBucklands Beach Intermediate Matipo Primary SchoolSt Kentigern School for Girls Parnell District School– CorranPasadena IntermediateGlendowie CollegeRangeview IntermediateGlenfi eld CollegeRosmini CollegeHenderson Valley Primary Te Atatu IntermediateSchoolWhangerei Boys High SchoolSecondary School Scholarships• Individual mentoring for 4 students interested in a career asan orchestra playerSecondary School Young Performers’ Competition• Platform for students with aspirations of a career as a soloist– 5 fi nalists in 2010Secondary Composers’ Competition• Opportunity for students achieving beyond the schoolcurriculum, with mentoring by APO Composer-in-Residence• There were 91 participants in 2010 with 7 fi nalists attendingthe recording session• 85 participants at the fi rst community access workshop;7 participants at the second advanced-level workshopAPOPS mentoring (APO partnership schools)• APO musicians visited 32 schools through the year workingon special projects (see Table 3 below)• Auckland Youth Orchestra received 80 hours of mentoringfrom APO musiciansTABLE 315 musicians from the APO visited schools in a mentorcapacity. These musicians provided 540 hours of inputin individual, ensemble, sectional / full orchestra andcomposition tuition.Auckland Grammar School40 hrsAlbany Junior High School10 hrsAlbany Senior High School10 hrsAuckland Youth Orchestra80 hrsBaradene College20 hrsCorran (St Kentigern School for Girls)10 hrsDiocesan School for Girls20 hrsEpsom Girls Grammar School40 hrsGlendowie College10 hrsGlenfi eld College10 hrsHenderson Valley Primary School10 hrsKristin School20 hrsListon College10 hrsMt Roskill Grammar School20 hrsOtahuhu College20 hrsPapatoetoe Intermediate School20 hrsParnell District Primary School10 hrsPt Chevalier Primary School20 hrsRangeview Intermediate School10 hrsRemuera Intermediate School20 hrsRosmini College10 hrsSacred Heart College20 hrsSt Cuthbert’s College20 hrsSt Kentigern College20 hrsSt Peter’s College20 hrsTe Atatu Intermediate School10 hrsTironui Trust Schools20 hrsWhangerei Boys High School10 hrs2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 14

Music Education Opportunities for FamiliesAPO 4 Kids• Six foundation-level interactive concerts for 2-6 yearolds,with a walk-through-the-orchestra and audienceparticipation e.g. conducting, clapping, singing• Bruce Mason Centre – 1,183 attended; TelstraClear – 947attended; Auckland Town Hall – 2,182 attendedMusic Education DevelopmentComposers’ Workshop• 65 adults have their new pieces for orchestra played andrecorded, and are mentored by the APO Composer-in-ResidenceConductors’ Workshop• Siemens Conducting Experience – 8 students from lowdecilehigh schools in the Penrose/Onehunga area• Community conducting with Eckehard Stier – 4 studentsand 6 community conductorsOrchestral Summer School• An intensive holiday course of professional full-orchestralmentoring• 65 people participated in the course• 220 attended the 2 concertsRemix the OrchestraTwo week-long intensive courses in Otara with APO musicians,professional hip-hop artists and the APO Composer-in-Residence; one designed for advanced young musicians, andone to support at-risk youth who are composing in the hip-hopmedium and require further role model support.• 30 participants across the 2 courses• 100 attended each performanceAPO Young Achievers ProgrammeA programme for high-achieving secondary and tertiarystudents to link them with APO artists and musicians with afocus on behind-the-scenes experiences. These students alsopresented a recital concert to the Governor-General and guestsat Government House.• 24 students participated in the programmeNew Tracks:Innovations in APO EducationAPO Open DayFollowing the successful Open Day at Auckland Town Hallin 2009, these free events were also taken to Manukau andTakapuna in 2010.• 3,700 estimated audience at 3 performances acrossAuckland Town Hall, Manukau Telstra Clear Pacifi c EventsCentre and Bruce Mason Centre TakapunaBig Play InYoung musicians from around the North Shore participated at theBruce Mason Centre Play In, rehearsing and then performing tofamily and friends playing alongside APO musicians.• 36 participantsPage 152010 Auckland Philharmonia Orchestra ANNUAL REPORT

FinancialsIn 2010 the Auckland Philharmonia Orchestra’s turnoverwas $8,065,000, an increase of $530,000 on 2009.Main areas of income were:• Performance income $2,327,000• Central government funding $2,179,000 ($2.0M corefunding, $100K to boost reserves, $71K Lotteries Grant,$8K project funding)• Local Government funding $1,810,000 from the AucklandRegional Amenities Act• Trust funding $850,0000. Major funding came from ASBand Lion Foundation• Corporate sponsorship $459,000• Fundraising $371,000 includes donations, Annual Appeal,APO Guild and APO FriendsTotal expenditure was $7,733,000Main areas of expenditure were:• Remuneration for musicians and staff $5,141,000• Venue and production costs $672,000• Artists’ costs $658,000• Administration $644,000• Marketing $618,000The surplus for the year was $331,914, including $100,000from the CNZ Reserves Incentive Scheme.Auckland Philharmonia Orchestra 2010IncomeAuckland Philharmonia Orchestra 2010Expenditure11%TrustFunding6%CorporateSponsorship5%Fundraising9%Artists’Costs8%Administration1%Other8%Marketing22%LocalGovernmentFunding27%CentralGovernmentFunding28%PerformanceIncome9%Venue andProduction66%Remuneration2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 16

Auckland Philharmonia TrustFinancial StatementsFor the year ended 31 December 2010IndexDirectory 18Auditors’ Report 19Statement of Financial Position 20Statement of Financial Performance 21Statement of Movements in Equity 22Notes to the Financial Statements 23-27Page 172010 Auckland Philharmonia Orchestra ANNUAL REPORT

Auckland Philharmonia TrustDirectoryPatronsDame Catherine Tizard, GCMG, GCVO, DBE, QSODame Kiri Te Kanawa, ONZ, DBEJames Wallace, ONZMVice Patrons Dame Jenny Gibbs, CNZMTrusteesRosanne Meo, OBE – ChairpersonJonathan BakerRichard EbbettJonathan Mane-Wheoki (from February 2010)Geraint Martin (from February 2010)Michael MoyesKieran RafteryAuditorsHayes Knight AuditBankersASB Bank LimitedAddress1 St Albans AvenueP O Box 56-024Dominion RoadMt EdenAuckland, New Zealand2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 18

Independent Auditor’s ReportTO THE TRUSTEES OFAUCKLAND PHILHARMONIA TRUSTWe have audited the fi nancial statements of Auckland Philharmonia Trust on pages 20 to 27 which comprise the balance sheet as at31 December 2010, and the statement of fi nancial performance and statement of movements in equity for the year then ended, and asummary of signifi cant accounting policies and other explanatory information.Trustees’ Responsibility for the Financial StatementsThe trustees are responsible for the preparation and fair representation of these fi nancial statements in accordance with generallyaccepted accounting practice in New Zealand and for such internal control as the trustees determine is necessary to enable thepreparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordancewith International Standards on Auditing (New Zealand).Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the fi nancial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of thefi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevantto the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well asevaluating the overall presentation of the fi nancial statements.We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.Other than in our capacity as auditor we have no relationship with, or interests in, Auckland Philharmonia Trust.OpinionIn our opinion the fi nancial statements on pages 20 to 27 fairly, in all material respects, the fi nancial position of Auckland PhilharmoniaTrust as at 31 December 2010, and its fi nancial performance for the year then ended in accordance with generally acceptedaccounting practice in New Zealand.HAYES KNIGHT AUDITAUCKLAND, NEW ZEALAND29 March 2011Page 192010 Auckland Philharmonia Orchestra ANNUAL REPORT

Auckland Philharmonia TrustStatement of Financial PositionAs at 31 December 2010Note 2010 2009$ $ACCUMULATED FUNDS 766,481 434,567Represented by:CURRENT ASSETSBank 2 2,119,350 1,554,521Accounts Receivable 312,839 441,222GST Receivable 31,939 1,831Prepayments 164,359 151,740Inventory 9,818 2,233Total Current Assets 2,638,305 2,151,547LESS CURRENT LIABILITIESAccounts Payable 3 465,671 392,607Income in Advance 5 2,042,537 1,921,967Finance Lease 8 – 2,133Total Current Liabilities 2,508,208 2,316,707WORKING CAPITAL (DEFICIT) 130,097 (165,160)NON – CURRENT ASSETSProperty, Plant and Equipment 6 636,384 599,727Total Non-current Assets 636,384 599,727NON-CURRENT LIABILITIESFinance Lease 8 – –Total Non-current Liabilities – –NET ASSETS 766,481 434,567For and on behalf of the Trust, which authorised the issue of the fi nancial statements on the 23rd March 2011.TrusteeTrusteeThe notes on pages 23-27 form part of and are to be read in conjunction with these fi nancial statements.2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 20

Auckland Philharmonia TrustStatement of Financial PerformanceFor the year ended 31 December 20102010 2009Note $ $OPERATING REVENUEAudience Revenue 1,503,508 1,405,185Hire of Orchestra 711,795 799,636Sponsorship & Corporate Support 865,930 1,014,711Fundraising 268,861 289,707Merchandise & Other 131,240 123,442Interest 83,005 42,113Other Donations 6,341 19,974Grant from Creative New Zealand 2,071,110 1,871,110Grants from Local Bodies 1,810,000 1,092,767Grant from the ASB Trust 250,000 250,000Grants from Other Organisations 11 263,500 426,0507,965,290 7,334,695LESS EXPENDITUREArtistic & Event Costs 5,771,557 5,521,506Administration 1,528,741 1,402,423Audit Fee 10,478 9,500Occupancy 194,539 196,651Fundraising 21,693 12,903Marketing and Communication 127,523 114,119Interest 117 –Depreciation 9 63,565 58,986Bad and doubtful debts 15,164 187,733,377 7,316,106OPERATING SURPLUS 231,914 18,589Revenue From Reserves Incentive Scheme 10 100,000 200,000NET SURPLUS 331,914 218,589The notes on pages 23-27 form part of and are to be read in conjunction with these fi nancial statements.Page 212010 Auckland Philharmonia Orchestra ANNUAL REPORT

Auckland Philharmonia TrustStatement of Movements in EquityFor the year ended 31 December 20102010 2009$ $Equity at beginning of year 434,567 215,978Total recognized revenue and expenses 331,914 218,589Equity at end of year 766,481 434,567The notes on pages 23-27 form part of and are to be read in conjunction with these fi nancial statements.2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 22

Auckland Philharmonia TrustNotes to the Financial StatementsFor year ended 31 December 20101. STATEMENT OF ACCOUNTING POLICIESReporting EntityThe Auckland Philharmonia Trust is established by a deed of trust. The fi nancial statements of the Auckland PhilharmoniaTrust are a general purpose report which has been prepared in accordance with generally accepted accounting practices.Measurement BaseThe accounting principles recognized as appropriate for the measurement and reporting of fi nancial performance andfi nancial position on a historical cost basis are followed by the Trust.Specific Accounting PoliciesThe following specifi c accounting policies which materially affect the measurement of fi nancial performance and thefi nancial position have been applied:1. Audience RevenueRevenue in the accounts includes subscriptions for the 2010 season. Any bookings for concerts in the 2011season or beyond have been included as Income in Advance, in order to match revenue and expenditure.Production and promotion expenses in respect of the 2011 season have also been deferred.2. Grants and Sponsorship IncomeGrants and sponsorship income are generally either for a specifi ed time period or for a specifi ed event. Thosefor a specifi ed time period are recognized on a straight line basis over that period, whereas those that relate tospecifi ed events are recognized at the time of the event.3. DepreciationThe following lives have been estimated:Offi ce & EquipmentComputer EquipmentMusical InstrumentsMusic StandsMusic3-20 years3-5 years5-25 years10 years25 years4. Accounts ReceivableAccounts Receivable are stated at expected realisable value.5. InventoryInventory has been valued at the lower of cost and net realizable value.6. LeasesOperating lease payments, where the lessor effectively retains substantially all the risks and benefi ts of ownershipof the leased item, are included in the determination of the excess of income over expenditure in equalinstalments over the lease term.Page 232010 Auckland Philharmonia Orchestra ANNUAL REPORT

Auckland Philharmonia TrustNotes to the Financial Statements (continued)For year ended 31 December 20107. Income TaxThe Trust is exempt from income tax on non-business income provided that such income is applied for charitablepurposes. The Trust is also exempt from income tax on business income derived for charitable purposes. TheTrust is registered with the Charities Commission, registration number CC23611.8. Goods and Services TaxThe Auckland Philharmonia Trust is a registered person as defi ned by the Goods and Services Act 1985. All itemsin the fi nancial statements are exclusive of GST with the exception of receivables and payables, which are statedGST inclusive.Differential ReportingThe Trust qualifi es for differential reporting as it is not publicly accountable and it is not large as defi ned in the Frameworkfor Differential Reporting. The Trust has applied all the differential reporting exemptions available.Changes in Accounting PoliciesThere have been no changes in accounting policies since the date of the last audited fi nancial statements. The policieshave been applied on a basis consistent with previous years.2. BANK2010 2009$ $ASB Bank Ltd. 2,118,557 1,553,859Petty Cash Floats 793 6622,119,350 1,554,521The Auckland Philharmonia Trust has a Flexible Finance Facility account in place with a credit facility limit of $250,000.00.This is secured by way of a guarantee from the Auckland Philharmonia Foundation.3. ACCOUNTS PAYABLE2010 2009$ $PAYE and Withholding Tax 58,713 37,362Accounts Payable & Accruals 406,958 355,245465,671 392,6074. RELATED PARTIESThe Auckland Philharmonia Foundation, the Friends of the Auckland Philharmonia and the Auckland Philharmonia Guildare related parties of the Auckland Philharmonia Trust. Transactions with related parties include donations, grants, hire ofthe orchestra, reimbursement of expenses incurred and rental of premises.2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 24

Auckland Philharmonia TrustNotes to the Financial Statements (continued)For year ended 31 December 2010The Auckland Philharmonia Foundation may appoint up to three members of the Auckland Philharmonia Trust Board. (TheBoard shall consist of not less than fi ve and not more than nine members). In 2010 there were seven Board members,three of whom were appointed by the Foundation.The Auckland Philharmonia Guild and the Friends of the Auckland Philharmonia Orchestra are charitable organisationswho raise money for the orchestra by staging events. The friends also offer practical help.Related Party Transactions were as follows:2010 2009$ $The Auckland Philharmonia Trust received from related parties:Auckland Philharmonia Foundationgrants 2,000 35,000directed funding 42,000 44,850reimbursement of expenses 313 3,047fundraising subsidy 0 54,00044,313 136,897Auckland Philharmonia Friendsgrants 17,000 17,000Auckland Philharmonia Guildhire of orchestra 19,000 18,739grant 75,000 61,500purchases 9,000 9,585103,000 89,824The Auckland Philharmonia Trust paid to related parties:Auckland Philharmonia Foundationlevy 25,772 22,953rental 93,000 93,000Amounts outstanding on behalf of the above transactionsat 31 December 2010 were:Owing to AP Trust (included in accounts receivable) 1,713 93,579Owing by AP Trust (included in accounts payable) 131,560 (127,578)5. INCOME IN ADVANCESubscription Sales in Advance 658,775 588,818Grants Received in Advance 1,105,000 882,500Other Income in Advance 278,762 450,6492,042,537 1,921,967Page 252010 Auckland Philharmonia Orchestra ANNUAL REPORT

Auckland Philharmonia TrustNotes to the Financial Statements (continued)For year ended 31 December 20106. PLANT & EQUIPMENTCost Accum. Depn. Book Value2010 2009 2010 2009 2010 2009$ $ $ $ $ $Musical Instruments 591,060 560,267 164,044 128,721 427,016 431,546Music Stands 12,888 11,353 5,201 3,938 7,687 7,415Music 151,887 132,749 21,711 16,018 130,176 116,731Offi ce Equipment 57,895 51,237 40,076 34,500 17,819 16,737Computer Equipment 139,179 144,001 85,493 116,703 53,686 27,298952,909 899,607 316,525 299,880 636,384 599,7277. OPERATING LEASESAt balance date the Trust had the following operating lease commitments2010 2009$ $Current 127,200 115,046Non-current 104,900 196,578Total 232,100 311,624On 1 January 2008 the Trust signed a fi ve year lease on the buildings at 1 St Albans Avenue and 427 Dominion Road (foroffi ce facilities and rehearsal facilities respectively) The owner of these premises is the Auckland Philharmonia Foundation.On 1 September 2006 the Trust signed a 2 year lease on the property at 425a Dominion Road, Mt Eden for offi ce facilitiesand the music library with rights of renewal in 2008 and 2010. In 2008 the Trust exercised a right of renewal and extendedthe lease for 2 further years.8. FINANCE LEASEThe fi nance lease of the telephone system is capitalized at the present value of the minimum lease payments. The leasedasset and corresponding liability is recognized in the Statement of Financial Position. The leased asset is depreciated on astraight line basis over the period that the Auckland Philharmonia Trust is expected to benefi t from its use.2010 2009$ $Current – 2,133Term – –– 2,1332010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 26

Auckland Philharmonia TrustNotes to the Financial Statements (continued)For year ended 31 December 20109. DEPRECIATION2010 2009$ $Musical Instrumentals 35,323 33,770Music Stands 1,263 1,009Music 5,693 5,062Offi ce Equipment 6,172 6,608Computer Equipment 15,114 12,53763,565 58,98610. RESERVES INCENTIVE SCHEMEThe Reserves Incentive Scheme is funded by Creative New Zealand to assist selected arts organisations to strengthentheir balance sheets by improving working capital. Provided working capital targets continue to be met the AucklandPhilharmonia Trust will receive a further $500,000 over a period of 2 years.11. GRANTS FROM OTHER ORGANISATIONSIn 2010 these grants included $20,000 from New Zealand Community Trust.12. FUTURE ACTIVITIESIt is the Trustees’ view that the fi nancial statements should be presented on a going-concern basis as the Trust hasadequate fi nancial resources to enable it to meet its obligations in the ensuing 12 months from the date of these fi nancialstatements. If the Trust were unable to continue operational existence, assets may need to be realised at amounts whichcould differ from amounts at which they are recorded in the Statement of Financial Position and, in addition, the Trust mayhave to provide for further liabilities that might arise.13. SUBSEQUENT EVENTSThere have been no events subsequent to 31 December 2010 which have materially affected the fi nancial position of theAuckland Philharmonia Trust.14. IFRS DEFERRALAuckland Philharmonia defers adoption of the New Zealand International Reporting Standards in line with the decisionsmade by the Accounting Standard Review Board (ASRB) and the Financial Reporting Standards Board about therequirement for small and medium sized for-profi t and not-for-profi t entities to adopt New Zealand International FinancialReporting Standards (NZ IFRS).The Trust is exempt from the requirement of the Auckland Regional Amenities Act that otherwise would have required theTrust to present IFRS compliant fi nancial statements.15. CONTINGENT LIABILITYThere are no contingent liabilities at balance date.Page 272010 Auckland Philharmonia Orchestra ANNUAL REPORT

Auckland PhilharmoniaOrchestraFunders 2010Auckland PhilharmoniaOrchestraSponsors 2010The Auckland Philharmonia Orchestra gratefullyacknowledges the contributions made by the followingorganisations and trusts.The Auckland Philharmonia Orchestra gratefullyacknowledges the signifi cant contributions made by thefollowing corporate sponsors.Platinum$50,000+ASB Community TrustAuckland RatepayersAuckland Philharmonia FoundationAuckland Philharmonia Orchestra GuildTed & Mollie Carr Charitable Trust (Guardian Trust)Creative New ZealandFour Winds FoundationThe Lion FoundationWilliam & Lois Manchester TrustPub CharityThe Trusts Charitable Foundation (Portage)The James Wallace Arts TrustGold$25,000-$49,999SKYCITY Auckland Community TrustStout TrustSilver$10,000-$24,999Auckland Philharmonia Orchestra FriendsSir Henry Kelliher Charitable TrustSir John Logan Campbell Residuary EstateNew Zealand Lottery Grants BoardNew Zealand Community TrustThe Trusts Charitable Foundation (Waitakere)Platinum$50,000+APN News & MediaHilton AucklandMazda New ZealandQantasThe Radio NetworkVeroVilla Maria EstateGold$25,000-$49,999DeloitteMalcolm Pacifi cMarquePlan B Wealth ManagementSilver$10,000-$24,999Chapman TrippDawsonsMakeReadySiemensWestpacBronze$2,500-$9,999Adrian MallochPhotography LtdCogitaDilworth Hearing LtdEurovillas and ToursImpressions InternationalKarajoz CoffeeKBB MusicMarshall Day AcousticsOrongo Bay HomesteadPhantom BillstickersPhonak Hearing LimitedRoses FloristWhitestone CheeseZane HolmesBronze$3,000-$9,000Deane Endowment TrustIkebana International Auckland TrustMinistry of EducationMount Wellington FoundationSouthern TrustRua & Clarrie Stevens Charitable TrustA H Watson Charitable Trust (Guardian Trust)2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 28

AucklandPhilharmoniaOrchestraChair Donors 2010AucklandPhilharmoniaFoundation2010AucklandPhilharmoniaOrchestraGuild 2010The Auckland Philharmonia Orchestra gratefullyacknowledges the generous donations to our ChairDonor programme. The minimum contribution tobecome a chair donor is $4,000 annually.Concertmaster Chairs(Minimum donation $10,000+)The David & Genevieve Becroft FoundationDame Jenny GibbsThe James Wallace Arts TrustPrincipal Chairs(Minimum donation $6,000)Tony and Deirdre AnselmiJohn BoscawenAdrian BurrCanterdale TrustMarshall Day AcousticsRichard & Elizabeth EbbettColin and Mary HarveyStephen & Gail HofmannThe Lion FoundationGary and Dot PaykelPolymers International LtdJanet SmithAdrienne, Lady StewartThe Trusts Charitable Foundation (Portage)Peter Wilson & Gerda McGechanAn anonymous donorTutti Chairs(Minimum donation $4,000)Auckland Philharmonia Orchestra FriendsChip DawsonEurovillas and ToursRichard Frechtling & Carole McIntoshBarbara GlaserMakeReady LimitedJonathan Mane-WheokiRosanne MeoDr.Tom & Mrs Ann MorrisRalph & Penny RobertsSylvia RosevearShortland TrustDavid TylerLeigh & Carole WebbPenelope WeberFrances Wilson & Stephen FitzgeraldChairmanRichard EbbettTrusteesJohn Boscawen (until August)Mark GatwardSarah KerrDavid Maunsell (until May)Haydn StaplesDon Turkington (until May)Belinda VernonSimon WilliamsPeter Wilson, ONZMAucklandPhilharmoniaOrchestraFriends 2010Co-PresidentsBarry ClaphamErica DonkinSecretaryRobyn JohnstonTreasurerRona ColbertMembership SecretaryRobyn JohnstonPresidentAlex BakerVice-PresidentSylvia RosevearTreasurer & Membership SecretaryCarole McIntoshNewsletter & CommunicationsGuy HalpeAucklandPhilharmoniaOrchestraSociety ExecutiveCommittee 2010SecretarySimon WilliamsExecutive Committee MembersMark CloseDianna CochraneCarl WellsPage 292010 Auckland Philharmonia Orchestra ANNUAL REPORT

The Final Word“To us, APO is the heart-beat of our super city. It can rock and pop with thegreatest superstars. It can challenge us with outstanding classical and modernmusic. It attracts the highest calibre of internationally renowned conductorsand soloists. It brings exquisite romance and drama to opera and ballet. Itsprogramming is exciting and innovative. Every year there is a wealth of eventswhich we truly look forward to. And intermingled with this demanding schedule,APO is totally committed to educating young and not-so-young with thehappiest involvement in music in countless ways.”APO Subscriber“There was poetry froman orchestra that our cityand country have everyreason to cherish”William Dart, The New Zealand Herald, 2010“I thought the best thingabout the concert was theway our students respondedto the music and the wholeexperience. A lot had neverbeen to the Town Hall or heardclassical music before – theconcert gave the studentsthe opportunity to experiencesomething out of their normalevery day scope.”“It sounded like the violinswere having a conversationwith the cello and then theyall started speaking andthen they all laughed. Itlooked like the music wentright through the conductorand he was like the tuner ona radio, getting it just rightand tweaking the volume. Itwas really awesome – I justloved it.”“I think the best feedback I can give you is that mydaughter went to bed last night in tears because the APO[Summer School] was over and she just loved it and was sosad she had to wait for another year to pass before therewould be another one! She learnt so much in terms of sightreading and listening to other players. Highlights for herwere everything! Friendships/chamber/swimming/reading.Not one complaint. Thank you so much.”ParentSchool teacher after attending aneducational concert10 year old APO fan“A big bouquet for the fabulous ‘Unwrap the Music’ last night. I usedit to introduce our 26 year old son to Beethoven and share with him mypassion for Beethoven’s music. He found it most interesting and I have afeeling we have him hooked! Now he wants to hear the organ in full flight.It was so encouraging to see a full town hall, so what a great idea thisseries has been: good time and good price. More please. Thanks a heap.”APO supporter2010 Auckland Philharmonia Orchestra ANNUAL REPORT Page 30

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