Annual Report 2011 Australian Grand Prix Corporation

1. Report of the ChairmanThe Australian Grand Prix Corporation has once again delivered two outstanding events over the past 12months, providing continued valuable exposure of Melbourne and Victoria on the international stage.Major events such as the Formula 1 Australian Grand Prix and the Australian Motorcycle Grand Prixprovide branding and positioning for Melbourne and Victoria nationally and internationally.The Victorian Government’s continued commitment to its major events strategy delivers extensiveeconomic benefits to the state and will ensure that Victoria maintains a year round competitiveadvantage and an ability to generate international and domestic tourism activity.Victoria’s major events deliver a combined economic impact to the State of approximately $1.4 billionannually and attract over 230,000 international visitors every year.2011 Formula 1 Qantas Australian Grand PrixAustralia’s Albert Park circuit hosted the opening round of the 2011 FIA Formula 1 World Championshipseason on 27 March after civil unrest in the Middle East and Gulf regions led to the cancellation of theBahrain Grand Prix.As the season opener, there was expectation in the air; Mark Webber was on his home track following anepic 2010 season in which he finished third after a four-man shoot-out for the Drivers’ World Championshipon the spectacular stage of Abu Dhabi’s Yas Island.While Webber’s gallant bid fell short, it was his electrifying performances in the Red Bull RB6 that helpedmake 2010 the most memorable year for Australian F1 fans in three decades and helped generatewidespread interest in the start of the 2011 season.In 2010, Webber tripled his career tally of race wins to six, taking out two of the sport’s most covetedprizes: the Monaco Grand Prix and the race at his second ‘home’ venue, Silverstone in the UK. Spain andHungary were the other two victories in a season where Webber stood on the podium 10 times.Webber’s success has ignited Australian fans who now have the opportunity to support another Australianin Formula 1. Young gun, Daniel Ricciardo, commenced as a test driver in Melbourne and made hisrace debut for the HRT F1 team at Silverstone. This marked the first time two Australians have racedagainst each other since Alan Jones and Vern Schuppan in 1977.For local F1 fans it all got off to the best possible start on Friday when Mark Webber planted his car at thetop of the timesheets in the first free practice session. After that it was all about Sebastian Vettel – andspeculation over new rules, moveable rear wings and new tyres from exclusive supplier Pirelli.Vettel made his Melbourne breakthrough to confirm, that once again, Red Bull Racing is the team theyall have to chase in 2011.In qualifying, he produced a display that was reminiscent of some of the best drivers in the history ofFormula 1. His pole-winning time of 1 min 23.529 secs was the quickest lap ever seen around Albert Park– and enough to eclipse the hard-chasing Lewis Hamilton by eight-tenths of a second.The sun shone on race day and the aerial shots of Albert Park were magnificent – especially down thesuperb pit lane, extended by the new dedicated facility for the Australian V8 Supercars.The 2010 World Champion had never managed to finish a race here on any of his previous three visits, sothe young German was understandably delighted when he and his Red Bull RB7 produced an imperiousperformance to kick-start his title defence in the best possible way. And his warmest words were reservedfor Melbourne itself, “We have to keep coming here.”2Australian Grand Prix Corporation Annual Report 2011

Second and third podium places were filled by McLaren’s Lewis Hamilton and Renault’s Vitaly Petrovrespectively.In addition to all the Formula 1 action, the 2011 Formula 1 Qantas Australian Grand Prix delightedrace-goers and motorsport enthusiasts with the biggest support category line-up to be seen at Albert Parkfor many years. This included the new exhilarating V8 Supercars Albert Park 400 endurance races whichrequired tyre changes and fuel stops utilising the new V8 pit building and garages.The V8 Supercars Albert Park 400 was the star attraction after Formula 1, and Jason Richards was perhapsits star performer. Fighting a particularly virulent form of cancer, the courageous Kiwi driver qualified fifthin the Team BOC Commodore and added a podium finish in the second of three races in the new-formatseries before heading to the United States for further treatment.Two wins for defending national champion Jamie Whincup did the trick for Team Vodafone, while theother race victory went to the ever-combative Garth Tander in the #2 Toll Holden Racing entry.Albert Park welcomed the reborn Porsche Carrera Cup’s first round, but the rest of the field knew they werein trouble when Craig Baird was in the line-up. The Kiwi commentator is also the world’s most successfulGT3 racer, and while he had to give up the first race to compatriot Jonny Reid, he duly won the next two,to stamp his class on the competition again.Add in a brace of victories for Mark Dwyer’s Lola T332 in the evocative Tasman Cup Revival F5000 races,matched by former Magpie favourite Sav Rocca in the Lexus CT200h Celebrity Challenge, and it wasanother wonderful weekend of racing.Australian Formula 1 World Champions Sir Jack Brabham and Alan Jones’ attendance at the eventproved to be very popular with fans and media alike. Both Alan and Sir Jack took part in a number ofmedia activities and interviews during the event, the most popular being a photo opportunity with MarkWebber and other former Australian Formula 1 drivers which attracted more than 50 photographers inthe Formula 1 Paddock on Saturday 26 March.Off track, across the four days, crowds estimated at almost 300,000 also enjoyed the atmosphere ofthe event, taking in an exciting array of amusements, activities and displays as well as music and liveentertainment.2011 saw a significant increase in corporate attendance and a corresponding increase of over 10% on2010 corporate revenues. This is testament to the exceptional new and upgraded corporate facilitiesincluding the Chicane Pavilion, Pit Exit Suites and V8 Alley. The event offers a truly unique opportunity forlocal, interstate, and international companies to entertain corporate clients and guests in an environmentunlike any other in Australia.Grandstand sales also saw a boost in 2011 as a result of flexible ticket offerings and competitive pricingand this lead to the extension of the Webber Grandstand on Pit Straight and the reintroduction of thePiquet Grandstand at Turn 3 for the first time since 2008. The increase in grandstand interest also translatedinto an increase in grandstand revenues from 2010.Once again, Network TEN was the official free-to-air broadcaster for the 2011 Formula 1 QantasAustralian Grand Prix, broadcasting 18 hours of live television on both TEN and ONE from the Albert Parkcircuit across the Friday, Saturday and Sunday of the event.In total, the 2011 Formula 1 Qantas Australian Grand Prix reached 4.23 million people across three dayson TEN and ONE. At peak there were 1.48 million viewers across the major capitals tuned in to the Formula1 race, with a total of 1.12 million different people who viewed the race for an extended period.Internationally, thanks to the twilight race time, free-to-air audiences in emerging markets such as Russia,India and China were able to view the race mid-morning or early afternoon on Sunday, providingunparalleled branding exposure for the huge Melbourne signs to international markets with a new interestAustralian Grand Prix Corporation Annual Report 2011 3

in Formula 1. Melbourne is the only Formula 1 circuit to have the privilege of this signage.When one compares the global exposure Melbourne receives from hosting a Formula 1 race to othermajor sports, there is no relative comparison.Our board acknowledges the continued generous contribution from the Government and compares itwith confidence against the confirmed economic, branding and industry benefits the Grand Prix providesto the State. When one takes into consideration that the cost of staging the Australian Open Tennis eachyear is estimated to be approximately $90m to fund the infrastructure investment alone there can be nodoubt as to the value for money provided by hosting the Formula 1 Australian Grand Prix in Melbourne.As recently stated by renowned Formula 1 journalist, Joe Saward, there are always going to be thosewho will argue that taxpayers should not be investing in Formula 1 races, largely because they eitherdon’t understand the benefits that the race brings – or choose to ignore them for political reasons. Thefact is that a Formula 1 race generates revenues of many different kinds for a region, in addition toattracting visitors and business.Cities spend far more to pay for an Olympic Games or a World Cup. London is spending as much as$15 billion on the 2012 Games. These will put the city in the global spotlight for a fortnight and will leavebehind some facilities. By comparison, Melbourne continues to be prominent on the international stagethrough the successful hosting of the Formula 1 Australian Grand Prix for a fraction of the cost.2010 IVECO Australian Motorcycle Grand PrixThe Australian Motorcycle Grand Prix is one of the biggest annual regional sporting events in Australia. Itprovides a significant boost to local tourism and attracts fans from all over Australia and across the globe.The Phillip Island circuit is blessed with breathtaking scenery, panoramic ocean views and great spectatorviewing all around the track. As one of the faster, more fluid tracks on the MotoGP calendar, it is not hardto see why the Island has a reputation for being one of the most unique destinations on the internationalcircuit.Strong winds and rain at Phillip Island meant that the event was not for the faint hearted, but in the truecharacter of the Island, the weather improved and by race day the clouds had vanished, leaving anemerald green circuit between blue sea and sky.A resilient crowd estimated at 88,000 enjoyed the action at the Island over the three days, demonstratingthe appeal of this world class event.Weather aside, there were many reasons for Australian fans to love what happened at the 2010 IVECOAustralian Motorcycle Grand Prix at Phillip Island, and many of them go by the name of Casey Stoner.On his 25th birthday, Stoner and his Ducati claimed pole position for the third straight year at the track hehas made his own and on race day he destroyed a MotoGP field full of World Champions to win his fourthstraight home race.While Stoner eclipsed the newly crowned World Champion Jorge Lorenzo, who finished over eightseconds behind, it was Lorenzo’s then team-mate Valentino Rossi who yet again provided many of theracing thrills for the strong Sunday crowd estimated at just over 41,000.Starting from eighth on the grid, Rossi powered his way through the field to be third at quarter-distance inthe 27-lap race. But Nicky Hayden on the second factory Ducati bike had other ideas and the Americanpowered past with just two laps remaining.4Australian Grand Prix Corporation Annual Report 2011

All that did was goad Rossi into another last-lap epic: forcing his YZR-M1 up the inside at Turn 4, he held offthe bitterly disappointed American by 0.038 of a second to complete the podium places.Also rising fast were the fortunes of Alex de Angelis. After a low-key early 2010 season, the veteran of over170 race starts made history as Phillip Island’s first winner in the new Moto2 class. Anyone who saw the39-bike charge of the 600cc machines round the magnificent Phillip Island circuit will feel it is a worthy,wheel-to-wheel successor to the old quarter-litre category.There was a rare runaway winner in the 125cc category, which will be phased out in 2012 to make way forMoto3. Spain’s tearaway teenager Marc Marquez posted his ninth win of a brilliant 2010 season to extendhis championship lead ahead of compatriots Nico Terol and Pol Espargaro.Aussie wild card riders Josh Hook and Jordan Zamora did superbly to qualify for the 125cc Grand Prix andbring their bikes home safely at the end.The notoriously fickle Bass Strait weather curtailed the support race programme on Friday, but Ducati hadthe last word there as well when Jamie Stauffer took out the last Australian Superbike race.Honda’s Shannon Johnson, took his first Superbike win in three years, and comeback kid Josh Waters,returned to the action for the first time in three months after a horrific accident in America, also won arace.AcknowledgementsFirst and foremost, my thanks go out to the incredible staff of the Australian Grand Prix Corporation fortheir tireless efforts over the past year, and to each of the volunteer marshals and officials without whomit would not be possible to stage these two great events.I would also like to thank all of our event delivery partners and key stakeholders for their valuablecontributions. Without their efforts, our events would not be the successful events we know them to be.I extend my sincere thanks to our sponsors. We are especially grateful to our naming rights sponsors,Qantas and IVECO, for their unwavering support.It is also with great appreciation that, I express my sincere thanks to the Corporation’s honorary Board:John Harnden, Gillian Franklin, James Strong, Alan Oxley, Laura Anderson, Patrick Flannigan, Ken Ryanand William Bowness. Their commitment, perseverance, skills and process are vital in supporting bothevents as part of the major events calendar of Melbourne and Victoria.Finally, a huge thank you to the many loyal supporters and fans. The atmosphere that they create is whatmakes Victorian major events so special.Ronald J Walker AC CBEChairmanAustralian Grand Prix Corporation Annual Report 2011 5

Strategic PrioritiesThe strategic priorities and associated supporting strategic objectives of the Australian Grand PrixCorporation are as follows:• To promote Melbourne and Victoria through the events○○Provide all interstate and international visitors with a first class event and broaderexperience where possible○○○○○○○○○○○○Improve the branding and visibility of Melbourne as a destinationStimulate national and international awareness of the events through partnerships withthird party agenciesShowcase opportunities for Victorian businessPartner with relevant government agenciesMaximise business and employment opportunities for Victorian businessIncrease the number of visitors to Melbourne and Victoria as a result of staging the events• To maximise attendances at the events○○Ensure marketing and communication strategies are clearly defined○○○○○○Provide clearly defined selling strategiesUnderstand our customers and provide them with products that satisfy their needsContinually challenge, refresh and improve the existing product mix and continue toexplore new product opportunities• To maximise revenues and minimise costs○○Understand our customers and provide them with products that satisfy their needs○○○○○○Continually challenge, refresh and improve existing product and event content andexplore new product opportunitiesEnsure appropriate understanding of our competition and market placeProvide robust financial review, control and processes including purchasing processes• To provide an exceptional event experience○○Align event to customers’ needs through research findings○○○○○○Refresh existing product mix and continually review, challenge and improveTrial, incubate and test new initiatives at each eventProvide our customers with exceptional basic needs, safety, social engagement andentertainment activities• To deliver events safely and to the highest standards○○Ensure clearly defined output that meets the Corporation’s expectations for ‘higheststandards’○○○○○○○○○○Empower all the corporation’s staff to be responsible for safety and quality at our eventsApply clearly stated safety management systems and event safety management plansAlign suppliers and contractors to the corporation’s safety requirements and standardsMaintan timely and effective communication between all partiesContinually update and review risk register and associated processesAustralian Grand Prix Corporation Annual Report 2011 7

• To cultivate positive event brand perceptions○○Continually maintain positive engagement with the community○○○○○○○○Educate the general public about the sport of F1Reinforce the ‘Pride’ of Melbourne being the events capital of the WorldEstablish a ‘Brand Identity’ that is sustainableContinue to develop strong media and stakeholder relationships for the benefit of theevents• To empower and support our staff.○○Provide an appropriate corporate structure and resources○○○○○○○○○○Install efficient internal proceduresDevelop clear and appropriate department strategiesProvide efficient workplace toolsEnsure business IP knowledge is retainedComply with all corporate governance requirementsThese seven strategic priorities define the way the Corporation will deliver both the Formula 1Australian Grand Prix and the Australian Motorcycle Grand Prix. Each is supported by a set ofinitiatives and specific tactical elements that are reviewed for each event on an annual basis.The reporting and consultative structures of the Formula One Grand Prix and the AustralianMotorcycle Grand Prix are set out as follows.8Australian Grand Prix Corporation Annual Report 2011

Reporting & Consultative Structure - Formula One Grand PrixTreasurer of VictoriaThe Hon Kim Wells MPResponsible MinisterThe Hon Louise Asher MPMinister for Tourismand Major EventsInternationalFormula OneChampionshipAuthoritiesAUSTRALIAN GRAND PRIXCORPORATIONSponsorsCommittees of the BoardAudit & Risk CommitteeRemuneration CommitteeOperations CommitteeSales & Marketing CommitteeAGPC BoardPatronsCorporate,Grandstand &General AdmissionAGPC Chief ExecutiveOfficerMotorsport &EntertainmentOfficial SuppliersCaterers,Concessionaires& Merchandisers,Official SuppliersBusinessServicesAGPCCommitteesTraffic & Transport,Race Organising,Police & EmergencyServicesMarketing &CommunicationsSales &CommercialAlbert ParkStakeholdersParks Victoria, SportsUsers, Golf DrivingRange, Sports &Aquatic Centre,CommercialTenants, Golf CourseReportingOperationsHumanResourcesOthersTourism VictoriaTicketing AgencyAdvertising AgencyNetwork TenMotorsportgoverning bodyConsultation, Liaison and CoordinationLocal AuthoritiesCity of Port Phillip,City of Melbourne,City of StonningtonAustralian Grand Prix Corporation Annual Report 2011 9

Reporting & Consultative Structure - Motorcycle Grand PrixTreasurer of VictoriaThe Hon Kim Wells MPResponsible MinisterThe Hon Louise Asher MPMinister for Tourismand Major EventsInternationalMotorcycleChampionshipAuthoritiesAUSTRALIAN GRAND PRIXCORPORATIONSponsorsCommittees of the BoardAudit and Risk CommitteeRemuneration CommitteeOperations CommitteeSales & Marketing CommitteeAGPC BoardPatronsVIP Hospitality,Grandstand &General AdmissionCampgroundsAGPC Chief ExecutiveOfficerMotorsport &EntertainmentOfficial SuppliersCaterers,Concessionaires& Merchandisers,Official SuppliersMarketing &CommunicationsAGPCCommitteesCommunity Liaison,Traffic & Transport,Police & EmergencyServicesSales &CommercialBusinessServicesPhillip IslandOperations Pty Ltd(Circuit Owners &Operators)ReportingOperationsHumanResourcesOthersTourism VictoriaTicketing AgencyAdvertising AgencyNetwork TenMotorsportgoverning bodyConsultation, Liaison and CoordinationLocal AuthoritiesBass Coast ShireCouncil10Australian Grand Prix Corporation Annual Report 2011

e. Administrative StructureMembers of the CorporationThe Members of the Corporation act in an honorary capacity.The Members of the Corporation at the date of this report are:Ronald J Walker AC CBE – ChairmanMr Walker is a prominent Australian businessman, and has been Chairmanof the Australian Grand Prix Corporation since its inception in 1994. He isChairman of Evolve Development Pty Ltd, and a Director of the ASX-listedWAM Active Limited. His current honorary positions include: Chairman, 2011Victorian Floods Disaster Relief Fund; Member, FIA Formula One Commission(international body); and Director, Football Federation Australia. A formerLord Mayor of Melbourne serving two terms, Mr Walker established oneof Australia’s largest private chemical companies, and was co-founderand Joint Managing Director of Hudson Conway Limited, and co-founderof Crown Limited. Mr Walker was Chairman of Fairfax Media from 2004 to 2009, Chairman of theMelbourne 2006 Commonwealth Games Corporation for seven years; Chairman of the VictorianMajor Events Company for ten years; and a Trustee of the National Gallery of Victoria for eight years.Mr Walker recently retired from his 20 year tenure as Chairman of the O’Brien Institute and Foundationat St Vincent’s Hospital Melbourne, and as a Director of the Australian Tissue Engineering Centre.In 1977 Mr Walker was made a Commander of the Order of the British Empire for services to theCommonwealth. He became an Officer of the Order of Australia (AO) for service to the communityin 1987, and was appointed a Companion of the Order of Australia (AC) in 2003 for services tobusiness, arts, tourism and the community, and for raising the profile of Australia internationally withsignificant benefit for tourism and employment.John Harnden AM – Deputy ChairmanMr Harnden was appointed to the board of the Australian Grand PrixCorporation on 8 August 2006 and appointed Deputy Chairman of theAustralian Grand Prix Corporation on 27 March 2007. He is currently the ChiefExecutive of the South Australian Cricket Association. Mr Harnden’s previousroles include Chief Executive Officer of Village Roadshow InternationalTheme Parks, the Melbourne 2006 Commonwealth Games Corporation andthe Australian Grand Prix Corporation. Mr Harnden has also been involved ina range of engineering projects, including the management and design ofFormula One Grand Prix circuits around the world.Laura AndersonMs Anderson is a leading international advisor to industry, defence andgovernment and an active supporter of community and philanthropicorganisations. She is an Independent Company Director of SVI Global. Sheis a Fellow of the Chartered Institute of Transport and the Foundation for theAdvancement of Science and Technology in Schools. Laura is Chairman ofthe L’Oréal Melbourne Fashion Festival, The Good Foundation and The CEOCircle. She was the National Partner in Charge of Strategy and Developmentfor KPMG Australia and founding Partner of KPMG’s Risk and AdvisoryServices for Industry Practice. She was a Board Member of the Just Group where she was Chairman ofthe Risk Committee. She is a Governor of the American Chamber of Commerce, a Board Member ofthe American Australian Association, a member of the Australian Institute of Company Directors andthe National Association of Corporate Directors in Washington D.C.Australian Grand Prix Corporation Annual Report 2011 11

Patrick J FlanniganMr Flannigan is the Principal of WGK Investments Pty Ltd, a consultancyspecialising in infrastructure. Prior to that he was Head of Construction forNBN Co. Mr Flannigan was the founding Managing Director and ChiefExecutive Officer of Service Stream Ltd. Before joining Service Stream hefounded and was Non-Executive Chairman of the successful AustralasianMaintenance Services company. Mr Flannigan has also held GeneralManager and senior management positions in the publicly listed companySkilled Group and Jetset Travel. He is on the Board and Chairman of theFinance Committee of Western Chances.Gillian FranklinMs Franklin is recognised as one of Australia’s most innovative entrepreneurshaving quickly established a multi-million dollar business in the highlycompetitive cosmetic industry. An award winning businesswoman withover 20 years experience in strategic leadership and consumer marketing,she is Managing Director of her own company, The Heat Group Pty Ltdwhich represents, amongst others, the Procter & Gamble cosmetic brandsin Australia. Ms Franklin has previously held Managing Director andGeneral Management positions for some of Australia’s leading consumercompanies, including Creative Brands and Revlon. Ms Franklin is also onthe Board of ACCORD, the CTFAA (Cosmetic Toiletry Fragrance Association of Australia), and theMelbourne Theatre Company (MTC). Ms Franklin recently held Board positions with CEDA (Committeefor Economic Development of Australia), and the Microsurgery Foundation and was the Chairmanof Neopec.Alan OxleyMr Oxley is one of Australia’s leading strategic advisers on internationalpublic affairs. He runs Melbourne based ITS Global, consultants on globalissues. Mr Oxley was a diplomat for 20 years representing Australia inSingapore and at the United Nations in New York. He was AustralianAmbassador to the GATT, the predecessor of the World Trade Organisation.Currently Mr Oxley is Chairman of the Australian APEC Centre at RMITUniversity and is Chairman of the Washington based developmentNGO WorldGrowth.Ken RyanMr Ryan was appointed to the board of the Australian Grand Prix Corporationon 8 August 2006. Mr Ryan is the Regional General Manager Victoria andSouthern Australia for Qantas. He has worked for Qantas for 15 years in arange of senior management positions including Group General ManagerMarketing, Head of Corporate Development, and Chief ExecutivesRepresentative, Asia. Mr Ryan is also a Director of the Melbourne Convention& Visitors Bureau as well as Step Back Think, a registered harm preventioncharity. Mr Ryan has recently been appointed to the Board of the VictorianMajor Events Company and as a Commissioner of the Australian SportsCommission effective 1 October 2011.12Australian Grand Prix Corporation Annual Report 2011

James A Strong AOJames Strong is currently Chairman of Woolworths Limited, the AustraliaCouncil for the Arts and Kathmandu. He is a Director of Qantas AirwaysLimited. James is also a member of the Nomura Australia Advisory Board.James has recently been appointed as Chairman of the OrganisingCommittee for the ICC Cricket World Cup 2015. James was formerly theChief Executive and Managing Director of Qantas Airways Limited from 1993to 2001, Chairman of Insurance Australia Group (IAG) Limited, Chairman ofRip Curl Group Pty Limited, Group Chief Executive of DB Group Limited inNew Zealand, National Managing Partner and later Chairman of law firmCorrs Chambers Westgarth, Chief Executive of Trans Australian Airlines (later Australian Airlines) andExecutive Director of the Australian Mining Industry Council. He has been admitted as a barristerand/or solicitor in various state jurisdictions in Australia. In 2006 James was made an Officer of theOrder of Australia.William (“Bill”) BownessBill’s initial work background was in banking and investment banking.He was the Founder, Chairman and CEO of Melbourne based propertydeveloper Wilbow Corporation Pty. Ltd. Established in 1976, offices weresubsequently established in Brisbane, Queensland, Dallas, United Statesand Auckland, New Zealand (1989-2004). The Australian operations weresold to a major public company in late 2006 and the Dallas operationsretained. He was appointed a Director of what is now Housing ChoicesAustralia in 2007, a Member of Australian Grand Prix Corporation in 2008and a Director of Centro Retail Trust in 2009. From 2005 to 2009, he wasa Director of Defence Housing Australia (DHA) and since 2009 has beena Member of the Monash University Estates Committee. Bill was Chair of the Monash Gallery ofArt Committee of Management from 1998 to 2010 and is a Trustee of the Monash Gallery of ArtFoundation. He was appointed a Member of the National Gallery of Victoria Foundation and TheAustralian Ballet Foundation in 2010. He is currently actively involved in various cultural, communityand philanthropic activities. He is the Chair and CEO of Wilbow Group Pty. Ltd. which is involved inthe provision of structured property finance in Australia and in property development in USA.Audit and Risk Committee Membership and rolesThe Audit and Risk Committee consists of the following members:Bill Bowness (Chair)Laura AndersonAlan OxleyThe main responsibilities of the Audit and Risk Committee are to:• review and report independently to Members on the Annual Report and all other financialinformation published by the Corporation;• assist the Management of the Corporation in reviewing the effectiveness of the internalcontrol environment;• determine the scope of the internal audit function and ensure that its resources areadequate and used effectively, including coordination with the external auditors; and• oversee the effective operation of the risk management framework.Australian Grand Prix Corporation Annual Report 2011 13

Management of the Corporation as at 30 June 2011Chief Executive Officer – Andrew WestacottGeneral Manager – Sales and Commercial – Jeremy KannResponsibility areas include corporate hospitality and ticket sales, sponsorship and licensing, andcatering.General Manager – Marketing and Communications – Amanda ChaseResponsibility areas include event marketing, advertising and public relations campaigns, mediaand corporate communications and tourism.General Manager – Motorsport & Entertainment – Craig FletcherResponsibility areas include motorsport and all on track entertainment, delivery of a program of offtrackentertainment, supporting the commercialisation and marketing of entertainment.General Manager – Operations – Ashley DaviesResponsibility areas include engineering, circuit planning, event presentation, event and venueoperations, traffic and transport, Police and Emergency services liaison, cleaning and waste,credentials, engineering, Parks Victoria and local Council liaison, community relations and disabilityservices.General Manager – Business Services – Peter HoughResponsibility areas include government liaison, statutory and management reporting, financialmodelling and financial operations, legal, information technology and office management andadministration.Group Manager Legal – David ParkerResponsibilities include management of the legal affairs of the Corporation, the structuring andformation of the Corporation’s commercial arrangements and ensuring the Corporation meets itsstatutory and broader obligations.Group Manager – Human Resources – Philippa TaylorResponsibility areas include human resources.Group Manager – Safety and Risk – Wes LloydResponsibility areas include development of safety measures, insurance and risk management.14Australian Grand Prix Corporation Annual Report 2011

f. Workforce DataThe number of personnel employed by the Corporation as at 30 June 2011 was 51 (2010: 50).Aggregate Workforce Data 2011 2010Employment Status Male Female Total Male Female TotalPermanent 20 31 51 21 26 47Casual - - - 0 3 3Total 20 31 51 21 29 50The Corporation undertakes programs to ensure that the human and financial costs of occupationalinjury and illness to its staff are reduced. Initiatives undertaken in 2010-11 to help reduce injuriesincluded:• The identification of a team of dedicated Nominated First Aid Officers;• Increased first aid training and first aid equipment availability;• Event inductions for all staff;• Update and regular review of the Corporation’s risk register;• Conduct of regular risk workshops;• Staff training on safety management;• Identification and resolution of all office-based occupational hazards;• Safety inspection of the Altona storage site;• Improved processes for Event safety management;• Increased reporting on hazards and incidents; and• Implementation of updated safety business plan.Industrial RelationsWith the introduction of the Fair Work Act 2009 the Corporation continues to develop and implementrevised employment conditions and policies to align with various changes to workplace legislation.Employee contracts include a standard grievance and dispute resolution procedure. All suchmatters are addressed by the Chief Executive Officer and can be escalated to the Chair of theRemuneration Sub-Committee of the Board if required.In the event of any strike, standard stand-down provisions are incorporated into all employeecontracts. There was no time lost due to industrial disputes during the period.Equal OpportunityThe Corporation is an equal opportunity employer.Australian Grand Prix Corporation Annual Report 2011 15

g. Freedom of InformationFreedom of InformationThe Freedom of Information Act 1982 allows the public a right of access to documents held by theAustralian Grand Prix Corporation (AGPC). For the 12 months ending 30 June 2011, AGPC receivedtwo applications.Making a requestRequests for access to documents under the Freedom of Information Act 1982 should be addressedto the Freedom of Information Officer, Australian Grand Prix Corporation, 220 Albert Road, SouthMelbourne, 3205, foi@grandprix.com.auRequests must satisfy the formal requirements set out in the Freedom of Information Act 1982 and beaccompanied by a $24.40 as at 1 July 2011 ($23.40 as at 30 June 2010) application fee. In particular,applicants should ensure that the request provides sufficient information concerning the document asis reasonably necessary to enable the responsible officer of the Corporation to identify the document.Where a request does not comply with the necessary requirements, the applicant will be so advisedand given the opportunity to reformulate the request.Upon receipt of the request the Corporation will endeavour to provide a response as soon aspracticable and, in any case, not later than 45 days after the day on which the Corporation receivesthe request.The types of documents to which access will not be granted are detailed in Part 4 of the Freedom ofInformation Act 1982 and Section 49 of the Australian Grands Prix Act 1994. Where access is denied,applicants will be given reasons. Applicants may then apply for internal review of the decision. Theinternal review will be conducted by the Corporation’s Principal Officer or delegate. Further appealsto the Ombudsman or the Victorian Civil and Administrative Tribunal can be made in accordancewith the procedures set out in the Freedom of Information Act 1982.Further information regarding Freedom of Information can be found on FOI Online www.foi.com.au.ChargesRequests for access must be accompanied by a $24.40 application fee as at 1 July 2011 ($23.40 asat 30 June 2010). Further charges for the supply of documents in relation to freedom of informationrequests are made in accordance with the Freedom of Information Act 1982 and the Freedom ofInformation (Access Charges) Regulations 2004.Categories of DocumentsThe Corporation maintains records and files incorporating documents relating to general administrativematters, the Formula One event at Albert Park and the Motorcycle Grand Prix held at Phillip Island. Allrecords and files are maintained at the Corporation’s premises in South Melbourne or at an externaloffsite storage provider’s premises.The Corporation also maintains two websites at www.grandprix.com.au and www.motogp.com.auand produces promotional newsletters for sending to subscribers via access to these websites.h. Multicultural PolicyThe Corporation endeavours to promote policies applicable to a culturally and linguistically diversesociety. The Corporation participates in radio interviews with ethnic broadcasters and promotesevents throughout ethnic communities.16Australian Grand Prix Corporation Annual Report 2011

3. Financial Informationa. Summary of Financial ResultsFormula One Grand PrixThe 2011 Formula 1 Qantas Australian Grand Prix was held on 24 – 27 March 2011.The Corporation was successful in delivering the Formula 1 event within budget expectations.The Corporation continued to provide innovative and flexible ticket options, which helped bothcorporate sales and grandstand sales increase revenue over 2010 levels.Expenditure increased from the 2010 Event as a result of a number of factors including: the increasein contractual commitments and an increase in the cost of grandstand and corporate facilities asa result of the increase in sales volume at the 2011 Event.The government contribution to the Formula 1 event was $50.050m in 2011 which was favourableto business plan expectations and should be considered in conjunction with the substantial benefitsto the State of Victoria both in terms of economic benefit and branding and advertising exposuregenerated by the international television coverage and media interest.Formula One Grand PrixFutureEvents$’0002011Event$’0002010Event$’0002009Event$’0002008Event$’0002007Event$’000Sales Revenue - 26,462 24,576 26,746 34,899 32,993Total Revenue - 33,402 31,095 35,317 43,257 43,441Total Expenditure - (83,452) (80,349) (75,547) (83,393) (78,068)Operating Surplus/(Deficit)before Government Investment,Depreciation & Unrealised- (50,050) (49,254) (40,230) (40,136) (34,627)Exchange Gain/(Loss)Government Investment 1,228 50,050 49,254 40,230 40,136 34,627Capital Works ActivitiesThe total capital allocation by the government for the 2010/11 financial year was $1,851k (2009/10$1,384k). The 2010/11 capital works expenditure relates to event requirements, such as constructionof the new V8 pitlane, safety requirements, office equipment and website development. Capitalworks in Albert Park are conducted under licence from Parks Victoria. Such items in the 2010/11financial year included park improvement and infrastructure works including the improvementand repair of drainage and sewer works in and around the pit buildings and the replacement ofguard rails.Australian Grand Prix Corporation Annual Report 2011 17

Motorcycle Grand PrixThe 2010 IVECO Australian Motorcycle Grand Prix was held on 15 - 17 October 2010.Whilst the Motorcycle Grand Prix event has enjoyed strong growth in revenues and attendancesince 2006, in 2010 revenues were severely affected by the inclement weather that prevailed in thelead up to and on the first two days of the event. As a consequence of the weather conditions,general admission revenues were significantly down when compared to prior years.Due to the fall in revenue, government funding required was $1.4m above both the prior year andfinancial expectations.Overall for the 2010 Motorcycle Grand Prix event there was a 2.0% increase in expenditure from the2009 event, predominantly due to an increase in contractual commitments and additional costsassociated with managing the adverse weather conditions.Motorcycle Grand Prix -Result by EventFutureEvents$’0002010Event$’0002009Event$’0002008Event$’0002007Event$’000Sales Revenue - 6,172 7,276 7,488 7,825Total Revenue - 7,583 8,656 8,785 8,970Total Expenditure - (14,204) (13,926) (13,584) (13,088)Operating Result beforeGovernment Contributions- (6,621) (5,270) (4,800) (4,118)& DepreciationGovernment Investment 3,074 6,621 5,270 4,800 4,118Motorcycle Grand Prix -Result by Financial Year2010/11$’0002009/10$’0002008/09$’0002007/08$’0002006/07$’000Sales Revenue 6,172 7,276 7,488 7,825 5,140Total Revenue 7,583 8,656 8,823 9,021 6,403Total Expenditure (14,204) (13,926) (12,568) (12,618) (12,708)Operating Result beforeGovernment Contributions(6,621) (5,270) (3,745) (3,597) (6,305)& DepreciationGovernment Investment 5,105 6,758 5,623 3,968 5,83618Australian Grand Prix Corporation Annual Report 2011

. Consultancy ServicesConsultancies costing less than $100,000No. of Consultancies Total Cost ($)Operating activities 6 $68,338Capital works activities - -Total (incl GST) 6 $68,338Individual consultancies costing greater than $100,000 were nil (2010: nil).c. Members’ MeetingsThe number of Members’ meetings held and the number of meetings attended by each of theMembers of the Corporation during the financial year was:MembersNumber of MeetingsAttendedNumber of MeetingsHeldMr Ronald J Walker AC CBE 6 8Ms Laura Anderson 7 8Mr John Harnden AM 8 8Mr William Bowness 8 8Mr Ken Ryan 6 8Mr Patrick Flannigan 7 8Ms Gillian Franklin 7 8Mr Alan Oxley 8 8Mr James Strong AO 5 8d. Building Act 1993In accordance with Section 48(1) of the Australian Grands Prix Act 1994, nothing in the BuildingAct 1993 applies to the carrying out of works authorised by and in accordance with the AustralianGrands Prix Act 1994 or at the request of the Corporation in the declared area.The Corporation has however undertaken to comply with the specifications of the Building Act 1993wherever practicable.Australian Grand Prix Corporation Annual Report 2011 19

e. Victorian Industry Participation Policy Act 2003In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003which requires public bodies and departments to report on the implementation of the VictorianIndustry Participation Policy (VIPP). Departments and public bodies are required to apply VIPP in alltenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria.Contracts commenced to which the VIPP applied:• During 2010-11, the Corporation commenced six multi-year contracts totallingapproximately $31 million accross the entire life of the contracts to which the VIPP applied.• Five of these contracts are entirely in metropolitan Melbourne.• The remaining contract ($3.1 million) is 60% in metropolitan Melbourne and 40% in NewSouth Wales• The commitments by these contractors under VIPP included:- 100% local content committed for five contracts;- 60% local content committed for one contract• The following benefits to the Victorian economy in terms of skills and technology transfer:- Development of the Victorian hospitality services industry through training andmentoring of casual staff (assisting transfer to other organisations);- Training to increase skill levels - more complex tasks over the life of the project.- Development of a cost control and supply ordering system.Contracts completed to which the VIPP applied:• During 2010-11, the Corporation completed one contract totalling approximately $4 millionto which the VIPP applied.• The contract was in metropolitan Melbourne.• The achievements by the contractor under VIPP included:- 100% local content for the contract• The following benefits to the Victorian economy in terms of skills and technology transfer:- Training and licensing of employees, including those engaged in materialshandling operations. Training in safe work practices, environmentally responsibleprocesses, increased skill base;- Increased number of trained operators;- Participation in OH&S accreditation and familiarity with working at heightslegislation; and- Review of technology, new materials and innovation as a result of the project.20Australian Grand Prix Corporation Annual Report 2011

Disclosure of Major ContractsDuring the year ended 30 June 2011, the Corporation did not enter into a contract greater than $10million dollars in total value.f. WhistleblowersThe following information is required in the Annual Report pursuant to section 104 of the WhistleblowersProtection Act 2001.NumberTypeThe number and types of disclosures made to public bodiesduring the yearThe number of disclosures referred to the Ombudsman fordetermination as to whether they are public interest disclosuresThe number and types of disclosed matters referred to the publicbody by the Ombudsman for investigationThe number and types of disclosures referred by the public bodyto the Ombudsman for investigationThe number and types of investigations taken over from thepublic body by the OmbudsmanThe number of requests made by a whistleblower to theOmbudsman to take over an investigation in a public bodyThe number and types of disclosed matters that the public bodyhas declined to investigateThe number and types of disclosed matters that weresubstantiated upon investigation and the action taken oncompletion of the investigationAny recommendations made by the Ombudsman that relate tothe public bodyNil -Nil -Nil -Nil -Nil -Nil -Nil -Nil -Nil -g. Available InformationInformation contained in this report has been prepared in accordance with the FinancialManagement Act 1994 and is available to the Minister for Tourism and Major Events, The HonourableLouise Asher, MP, the public on request and from the Corporation’s website - www.grandprix.com.au.Australian Grand Prix Corporation Annual Report 2011 21

h. Disclosure IndexThe Annual Report of the entity is prepared in accordance with all relevant Victorian legislation.This index has been prepared to facilitate identification of compliance with statutory requirements.Legislation Requirement PageMinisterial DirectionsReport of OperationsCharter and PurposeFRD 22B Manner of establishment and Relevant Ministers 6FRD 22B Objectives, functions, powers and duties 6FRD 22B Nature and range of services provided 6Management & StructureFRD 22B Organisational structure 9Financial & other informationFRD 22B Statement of workforce data and merit and equity 15FRD 22B Summary of financial results for the year 17FRD 22B Significant changes in financial position during the year 17FRD 22B Operational objectives 7FRD 22B Major changes or factors affecting achievement of objectives 7FRD 22B Events subsequent to balance date 64FRD 22B Application and operation of the Freedom of Information Act 1982 16FRD 22BCompliance with building and maintenance provisions of BuildingAct 199319FRD 22B Details of consultancies over and under $100,000 19FRD 22B Statement of availability of other information 21FRD 22B Occupational health and safety 15FRD 22B Whistleblowers 21FRD 15A Executive Officer disclosures 63FRD 12A Disclosure of Major Contracts 21FRD 10 Disclosure Index 22FinancialStatementsFinancial statements required under Part 7 of the FMASD 4.2 (a) Statement of Changes in Equity 26SD 4.2(b) Operating Statement 24SD 4.2(b)Balance Sheet25SD 4.2(b) Cash flow Statement 27SD 4.2(c)Compliance with Australian accounting standards and other28authoritative pronouncementsSD 4.2(c) Compliance with Ministerial Directions 28SD 4.2(c) Accountable officer’s declaration 68Other disclosures in notes to the financial statementsFRD 21A Responsible person and executive officer disclosures 62LegislationFreedom of Information Act 1982 16Building Act 1993 19Victorian Industry Participation Policy Act 2003 20Whistleblowers Protection Act 2001 21Dated at Melbourne on 2 September 2011Signed in accordance with a resolution of MembersRonald J Walker AC CBEChairman22Australian Grand Prix Corporation Annual Report 2011

Australian Grand Prix CorporationABN 86 947 927 4654. Financial Statementsfor the Year Ended 30 June 2011Australian Grand Prix Corporation Annual Report 2011 23

Comprehensive Operating Statementfor the Financial Year Ended 30 June 2011Note 2011 2010$000’s$000’sIncome from transactionsFormula One Grand Prix 86,043 82,665Motorcycle Grand Prix 9,780 14,395Future Grands Prix 4,302 11,819Total income from transactions 2 100,125 108,879Expenses from transactionsFormula One Grand Prix (86,562) (83,165)Motorcycle Grand Prix (14,502) (14,281)Total expenses from transactions 2 (101,064) (97,446)Net result from transactions (Net operatingbalance) (939) 11,433Other economic flows included in net resultNet gain/(loss) on financial instruments (4,593) 2,609Net gain/(loss) on sale of non-financial assets (48) 16Net gain/(loss) on reassessment of useful life of- (728)8non-financial assetsTotal other economic flows included in net result 2 (4,641) 1,897Net Result (5,580) 13,330Other non-owner changes in EquityTransfer to/(from) cash flow hedge reserve 15 (35,458) 10,334Transfer to asset revaluation reserve 15 3,357 -Comprehensive Result (37,681) 23,664The comprehensive operating statement is to be read in conjunction with the notes to andforming part of the financial statements set out on pages 28 to 67.24Australian Grand Prix Corporation Annual Report 2011

Balance Sheet as at 30 June 2011Note 2011 2010$000’s$000’sASSETSFinancial AssetsCash and deposits 6 20,411 19,865Receivables 7 4,808 7,900Derivatives 14 - 14,493Total Financial Assets 25,219 42,258Non-Financial AssetsInfrastructure, plant and equipment 9 14,234 9,064Intangible assets 10 346 64Total Non-Financial Assets 14,580 9,128TOTAL ASSETS 39,799 51,386LIABILITIESPayables 11 4,608 6,785Provisions 12 501 419Deferred income 13 5,582 2,949Derivatives 14 25,556 -TOTAL LIABILITIES 36,247 10,153NET ASSETS 3,552 41,233EQUITYContributed capital 15a 10,739 10,739Cashflow hedge reserve 15b (25,124) 10,334Asset revaluation reserve 15c 3,357 -Accumulated surplus 15d 14,580 20,160NET WORTH 3,552 41,233Commitments for expenditure 18Contingent assets and contingent liabilities 19The comprehensive operating statement is to be read in conjunction with the notes to andforming part of the financial statements set out on pages 28 to 67.Australian Grand Prix Corporation Annual Report 2011 25

Statement of Changes in Equityfor the Financial Year Ended 30 June 2011NotesCash flowhedgereserveAssetrevaluationreserveContributedcapitalAccumulatedsurplusTotal$000’s $000’s $000’s $000’s $000’sBalance at 1 July 2009 - - 10,739 6,830 17,569Net result for year - - - 13,330 13,330Transfer to cash flowhedge reserve15b 10,334 - - - 10,334Balance at 30 June 2010 10,334 - 10,739 20,160 41,233Net result for year 15d - - - (5,580) (5,580)Transfer to/(from) cashflow hedge reserve15b (35,458) - - - (35,458)Transfer to assetrevaluation reserve15c - 3,357 - - 3,357Balance at 30 June 2011 (25,124) 3,357 10,739 14,580 3,552The comprehensive operating statement is to be read in conjunction with the notes to andforming part of the financial statements set out on pages 28 to 67.26Australian Grand Prix Corporation Annual Report 2011

Cash Flow Statementfor the Financial Year Ended 30 June 2011Note 2011 2010$000’s$000’sCash flows from operating activitiesReceiptsReceipts from customers, sponsors and commercialentities47,248 44,014Interest received 1,845 1,251Government contributions – Motorcycle Grands Prix 4,948 3,323Government contributions – Formula One Grands Prix 55,055 54,180Government contributions – future Grands Prix 4,732 13,001Government contributions attributable to Grand Prixinfrastructure900 248Government contributions attributable tocapital works1,136 1,274Total receipts 115,864 117,291PaymentsPayments to suppliers and employees (106,110) (100,362)GST paid to the ATO* (4,563) (5,878)Total payments (110,673) (106,240)Net cash flows from operating activities 20 5,191 11,051Cash flows from investing activitiesNon-financial assetsPayments for furniture and equipment (303) (467)Payments for Grand Prix infrastructure, plant andequipment attributable to the Corporation(3,464) (840)Payments for foreign exchange contracts - (2,467)Payments for capital works subsequently transferredto Parks Victoria(886) (70)Proceeds from the sale of property, plant &equipment8 24Net cash flows from/(used in) investing activities (4,645) (3,820)Cash flows from financing activitiesRepayment of finance lease - (19)Net cash flows from/(used in) financing activities - (19)Net increase/(decrease) in cash & cash equivalents 546 7,212Cash & cash equivalents at the beginning of the year 19,865 12,653Cash & cash equivalents at the end of financial year 6 20,411 19,865*Goods and Services Tax paid to the ATO is presented on a net basis.The comprehensive operating statement is to be read in conjunction with the notes to andforming part of the financial statements set out on pages 28 to 67.Australian Grand Prix Corporation Annual Report 2011 27

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011The annual financial statements represent the audited general purpose financial statements forthe Australian Grand Prix Corporation (the Corporation).The purpose of the report is to provide users with information about the Corporation’s stewardshipof resources entrusted to it.To gain a better understanding of the terminology used in this report, a glossary of terms and styleconventions can be found in Note 26.1. Summary Of Significant Accounting Policies(a) Statement of ComplianceThe Corporation’s financial statements are a general purpose financial report which has beenprepared on an accrual basis in accordance with the Financial Management Act 1994 andapplicable Australian Accounting Standards and Interpretations (AASs). AASs include Australianequivalents to International Financial Reporting Standards.In complying with AASs, the Corporation has, where relevant, applied those paragraphs applicableto not-for-profit entities.The annual financial statements were authorised for issue by the Chairman of the Board on 2September 2011.(b) Basis of Accounts Preparation and MeasurementThe accrual basis of accounting has been applied in the preparation of these financial statementswhereby assets, liabilities, equity, income and expenses are recognised in the reporting period towhich they relate, regardless of when cash is received or paid.These financial statements are presented in Australian dollars, the functional and presentationcurrency of the Corporation.In the application of AASs, management is required to make judgements, estimates and assumptionsabout carrying values of assets and liabilities that are not readily apparent from other sources.The estimates and associated assumptions are based on historical experience and various otherfactors that are believed to be reasonable under the circumstances, the results of which form thebasis of making the judgements. Actual results may differ from these estimates. The estimates andassumptions that have a significant risk of causing a material adjustment to the carrying amounts ofassets and liabilities within the next financial year are discussed below.• Estimated impairment of non-financial assetsThe Corporation assesses impairment of all assets at each reporting date by evaluatingconditions specific to the Corporation and to the particular asset that may lead to impairment.These may include asset performance, economic and political environments and futureexpectations. Given the specific nature of the Corporation’s assets, management consideredthat the indicators of impairment were significant enough and as such have been tested forimpairment in this financial period.• Useful lives of non-financial assetsThe Corporation’s management, with the assistance of the Valuer-General Victoria determinesthe estimated useful lives and related depreciation charges for its infrastructure, furnitureand equipment and intangible assets. (Refer Note 1(i)). Management will increase the28Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011depreciation charge where useful lives are less than previous estimated useful lives, or will writeoffor write-down obsolete assets or those that are no longer considered useful.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions toaccounting estimates are recognised in the period in which the estimate is revised if the revisionaffects only that period or in the period of the revision, and future periods if the revision affects bothcurrent and future periods. Judgement made by management in the application of AASs that havesignificant effects on the financial statements and estimates, with a risk of material adjustments inthe subsequent reporting period, are disclosed throughout the notes to the financial statements.The report has been prepared in accordance with the historical cost convention. Historical cost isbased on the fair values of the consideration given in exchange for assets.Exceptions to the historical cost convention include:• Non-financial physical assets which, subsequent to acquisition, are measured at a revaluedamount being the fair value at the date of the revaluation less any subsequent accumulateddepreciation and subsequent impairment losses. Revaluations are made with a sufficientregularity to ensure that the carrying amounts do not materially differ from their fair value;• The fair value of an asset is generally based on its depreciated replacement value;• Derivative financial instruments, which, after recognition are measured at fair value throughthe profit and loss.Accounting policies are selected and applied in a manner which ensures that the resulting financialinformation satisfies the concepts of relevance and reliability, thereby ensuring that the substanceof the underlying transactions or other events is reported.The accounting policies set out below have been applied in preparing the financial statements forthe year ended 30 June 2011 and the comparative information presented for the year ended 30June 2010.(c) Reporting EntityThe Corporation is a statutory authority established pursuant to the Australian Grands Prix Act 1994(as amended) (“AGP Act”).The principal address is :Australian Grand Prix Corporation220 Albert RoadSouth Melbourne VIC 3205The Corporation is subject to the direction and control of the Minister administering the AGP Act. Atthe time of this report this was the Minister for Tourism and Major Events, the Honourable Louise Asher,MP. The Corporation has complied with all Ministerial Directives, during the financial year ended 30June 2011.Objectives and FundingThe Corporation’s overall objective is to provide Melbourne and Australia with the bestinternational event experiences that deliver increased promotional and economic benefits to theState of Victoria.Australian Grand Prix Corporation Annual Report 2011 29

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011The Corporation is predominantly funded by ticket sales and sponsorship of the events and fundsprovided by the Victorian Government.(d) Scope and Presentation of Financial StatementsComprehensive Operating StatementIncome and expenses in the comprehensive operating statement are classified according towhether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistentwith the whole of government reporting format and is allowed under AASB 101 Presentation offinancial statements.‘Transactions’ and ‘other economic flows’ are defined by the Australian system of governmentfinance statistics: concepts, sources and methods 2005 Cat. No. 5514.0 published by the AustralianBureau of Statistics (see note 26)‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions,usually an interaction between two entities by mutual agreement. They also include flows withinan entity such as depreciation where the owner is simultaneously acting as the owner of thedepreciating asset and as the consumer of the service provided by the asset. Taxation is regardedas mutually agreed interactions between the government and taxpayers. Transactions can bein kind (e.g. assets provided/given free of charge or for nominal consideration) or where the finalconsideration is cash.‘Other economic flows’ are changes arising from market remeasurements. They include:• Gains and losses from disposals, revaluations and impairments of non-financial physical andintangible assets;• Fair value changes of financial instruments.The net result is equivalent to profit or loss derived in accordance with AAS’s.Balance SheetAssets and liabilities are presented in liquidity order with assets aggregated into financial assets andnon-financial assets.Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12months) are disclosed in the notes, where relevant.Cash Flow StatementCash flows are classified according to whether or not they arise from operating, investing or financingactivities. This classification is consistent with requirements under AASB 107 Statement of cash flows.Statement of Changes in EquityThe statement of changes in equity presents reconciliation of each non-owner and owner equityopening balance at the beginning of the reporting period to the closing balance at the end of thereporting period. It also shows separately changes due to amounts recognised in the comprehensiveresult and amounts recognised in other comprehensive income related to no-owner changesin equity.30Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Rounding of AmountsAmounts in the financial statements (including the notes) have been rounded to the nearestthousand dollars, unless otherwise stated. Figures in the accounts may not equate due to rounding.(e) Events after Reporting DateAssets, liabilities, income or expenses arise from past transactions of other past events. Disclosure ismade about events between the reporting date and the date the statements are authorised forissue where the events relate to conditions which arose after the reporting date and which mayhave a material impact on the results of subsequent years.(f) Goods and Services Tax (GST)Income, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case it is recognised as part of the costof acquisition of the asset or as part of the expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. Thenet amount of GST recoverable from, or payable to, the taxation authority is included with otherreceivables or payables in the balance sheet.Cashflows are presented on a gross basis. The GST components of cash flows arising from investingor financing activities which is recoverable from, or payable to, the taxation authority are presentedas operating cash flow.(g) Income TaxThe Corporation is exempt from income tax under Section 24AR of Division 1B of the Income TaxAssessment Act, 1936.(h) Income from TransactionsIncome is recognised to the extent that it is probable that the economic benefits will flow to theCorporation and the income can be reliably measured.Sales and Sponsorship RevenueSales and sponsorship revenues are not controlled by the Corporation until the event has occurred.Hence, such revenues are recognised in the financial year in which an event is conducted.Interest RevenueInterest includes interest received on deposits and other investments and the unwinding over timeof the discount on financial assets. Interest income is recognised using the effective interest methodwhich allocates the interest over the relevant period.Net realised and unrealised gains and losses on the revaluation of investments do not form part ofincome from transactions, but are reported either as part of income from other economic flowsin the net result or as unrealised gains or losses taken directly to equity, forming part of the totalchange in net worth in the comprehensive result.Australian Grand Prix Corporation Annual Report 2011 31

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Government Contributions - RecurrentGovernment contributions are recognised as revenue when the Corporation gains control of theunderlying assets. The Corporation is deemed to have assumed control when the contributionswere received or receivable.Government Contributions – Non-recurrentThe Corporation undertakes works within Albert Park under licence from Parks Victoria in its capacityas the Committee of Management for Albert Park. Government contributions in relation to capitalworks have been recorded as revenue in the current financial year. These capital works have beentransferred to Parks Victoria.Fair Value of Assets and Services received free of charge or for nominal considerationContributions of resources received free of charge or for nominal consideration are recognised atfair value when control is obtained over them, irrespective of whether these contributions are subjectto restrictions or conditions over their use. Contributions in the form of services are only recognisedwhen a fair value can be reliably determined and the services would have been purchased if notreceived as a donation.(i) Expenses from TransactionsExpenses are recognised as they are incurred and reported in the financial year to which theyrelate.Event management and staging and recurrent engineeringEvent management and staging and recurrent engineering expenses include those costs relatingto the assembly, dismantling and servicing of event infrastructure. It includes any non-capitalexpenditure on areas in and around the Albert Park and Phillip Island circuits.Administration expensesDepreciation and amortisationAll items of infrastructure, plant and equipment that have finite useful lives are depreciated.Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value,less any estimated residual value, over its estimated useful life.The estimated useful lives, residual values and depreciation method are reviewed at the end ofeach reporting period, and adjustments made when necessary.Intangible assets are amortised over the useful lives of the assets.The following are typical useful lives for the different asset classes for current and prior years.Asset classComputer EquipmentOffice Furniture and EquipmentGrand Prix InfrastructureIntangible AssetsUseful life3 years5 years3 – 20 years5 - 6 yearsBad and doubtful debts32Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Refer to Note 1(l) Impairment of financial assetsMarketing / promotion and cateringMarketing and promotion expenses are those costs incurred in ensuring that the event is promotedto the general public and corporate clients thereby increasing sales revenue. Catering costs arepredominantly incurred in the provision of high class facilities to corporate and VIP clients. A largeproportion of these costs are recovered from ticket sales.Employee ExpensesEmployee expenses are included in the costs of the department to which they relate. Theseexpenses include all costs related to employment (other than superannuation which is accountedfor separately) including wages and salaries, fringe benefits tax, leave entitlements, redundancypayments and WorkCover premiums.SuperannuationContributions are made by the Corporation to an employee superannuation fund and are chargedas expenses when incurred (Refer note 23).(j) Other Economic FlowsOther economic flows measure the change in volume or value of assets or liabilities that do notresult in transactions.Gain/(loss) on financial assetsAt the end of each reporting period, the Corporation assesses whether there is objective evidencethat a financial asset or group of financial assets is impaired. Objective evidence includes financialdifficulties of the debtor, default payments, debts which are more than 60 days overdue, andchanges in debtor credit ratings.Bad and doubtful debts are assessed on a regular basis. The provision for doubtful receivables isadjusted as an ‘other economic outflow’. Bad debts are written off against the provision.Disposal of non financial assetsAny gain or loss on the sale of non-financial assets is recognised at the date that control of the assetis passed to the buyer and is determined after deducting from the proceeds the carrying value ofthe assets at the time of sale.Revaluations gains/(losses) of non-financial assets physical assetsRefer to Note 1(m)Revaluation gains/losses arising from transactions in foreign exchangeNet gain/(loss) on derivatives includes realised and unrealised gains and losses from revaluationsof derivatives (being foreign exchange forward contracts and foreign exchange options) that aredesignated at fair value through profit and loss.Refer to Note 1(q)Australian Grand Prix Corporation Annual Report 2011 33

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Impairment of non-financial assetsGoodwill and intangible assets not yet available for use or with indefinite lives are tested annually forimpairment (as described below) and whenever there is an indication that the asset may be impaired.All other assets are assessed annually for indications of impairment.If there is any indication of impairment, the assets concerned are tested as to whether their carryingvalue exceeds their recoverable amount. Where an asset’s carrying value exceeds the recoverableamount, the difference is written off as an ‘other economic flow’, except to the extent that the writedowncan be debited to an asset revaluation surplus amount applicable to that class of asset.If there is an indication that there has been a change in the estimate of an asset’s recoverableamount since the last impairment loss was recognised, the carrying amount shall be increased to itsrecoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’scarrying amount does not exceed the carrying amount that would have been determined, net ofdepreciation or amortisation, if no impairment loss had been recognised in prior years.It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arisingfrom the use of the asset will be replaced unless a specific decision to the contrary has been made.The recoverable amount for most assets is measured at the higher of depreciated replacement costand fair value less costs to sell. Recoverable amount for assets held primarily to generate net cashinflows is measured at the higher of the present value of future cash flows expected to be obtainedfrom the assets and fair value less costs to sell.Refer to Note 1(m) in relation to the recognition and measurement of non-financial assets.Gain/(loss) on financial instrumentsNet gain/(loss) on financial instruments includes:• realised and unrealised gains and losses from revaluations of financial instruments at fair value;• impairment and reversal of impairment for financial instruments at amortised cost (refer to Note1(k)); and• disposals of financial assetsRevaluations of financial instruments at fair valueRefer to Note 1(k) Financial InstrumentsOther gains/(losses) from other economic flowsOther gains/(losses) from other economic flows include the gains or losses from:• transfer of amounts from reserves and/or accumulated surplus to net result due to disposal orderecognition of reclassification; and• the revaluation of the present value of the long service leave liability due to changes in thebond interest rates.34Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(k) Financial InstrumentsFinancial instruments arise out of contractual agreements that give rise to a financial asset ofone entity and a financial liability or equity instrument of another entity. Due to the nature of theCorporation’s activities, certain financial assets and financial liabilities arise under statute ratherthan a contract. Such financial assets and financial liabilities do not meet the definition of financialinstruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivablesarising from taxes, fines and penalties do not meet the definition of financial instruments as they donot arise under contract. However, guarantees issued by the Treasurer on behalf of the Corporationare financial instruments because, although authorised under statute, the terms and conditions foreach financial guarantee may vary and are subject to an agreement.Where relevant, for note disclosure purposes, a distinction is made between those financial assetsand financial liabilities that meet the definition of financial instruments in accordance with AASB 132and those that do not.The following refers to financial instruments unless otherwise stated.Categories of non-derivative financial instrumentsLoans and receivablesLoans and receivables are financial instrument assets with fixed and determinable payments thatare not quoted on an active market. These assets are initially recognised at fair value plus anydirectly attributable transaction costs. Subsequent to initial measurement, loans and receivablesare measured at amortised cost using the effective interest method, less any impairment.Loans and receivables category includes cash and deposits (refer 1(l)), term deposits with maturitygreater than 3 months, trade receivables, loans and other receivables, but not statutory receivables.Held-to-maturity financial assetsIf the Corporation has the positive intent and ability to hold nominated investments to maturity, thensuch assets may be classified as held-to-maturity. Held-to–maturity financial assets are recognisedinitially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition,held-to-maturity financial assets are measured at amortised cost using the effective interest method,less any impairment losses.The held-to-maturity category includes certain term deposits and debt securities for which theCorporation intends to hold to maturity.The Corporation makes limited use of this classification because any sale or reclassification of morethan an insignificant amount of held-to maturity investments not close to their maturity, would resultin the whole category being reclassified as available-for–sale. The Corporation would also beprevented from classifying investment securities as held-to-maturity for the current and the followingyears.Financial assets and liabilities at fair value through profit and lossFinancial assets are categorised as fair value through profit and loss at trade date if they areclassified as held for trading or designated as such upon initial recognition. Financial instrumentassets are designated at fair value through profit or loss on the basis that the financial assets formAustralian Grand Prix Corporation Annual Report 2011 35

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011part of a group of financial assets that are managed by the Corporation based on their fair values,and have their performance evaluated in accordance with documented risk management andinvestment strategies.Financial instruments at fair value through profit or loss are initially measured at fair value andattributable transaction costs are expensed as incurred. Subsequently, any changes in fair valueare recognised in the net result as ‘other economic flows’. Any dividend or interest on a financialasset is recognised in the net result from transactions.Financial liabilities at amortised costFinancial instrument liabilities are initially recognised on the date they are originated. They areinitially measured at fair value plus any directly attributable transaction costs. Subsequent toinitial recognition, these financial instruments are measured at amortised cost with any differencebetween the initial recognised amount and the redemption value being recognised in the profitand loss over the period of the interest bearing liability, using the effective interest rate method.Financial instrument liabilities measured at amortised cost include all payables, deposits held andadvances received, and interest-bearing arrangements other than those designated at fair valuethrough profit or loss.Offsetting financial instrumentsFinancial instrument assets and liabilities are offset and the net amount presented in the balancesheet when, and only when, the Corporation has the legal right to offset the amounts and intendeither to settle on a net basis or to realise the asset and settle the liability simultaneously.Reclassification of financial instrumentsSubsequent to initial recognition and under rare circumstances, non-derivative financial instrumentsassets that have not been designated at fair value through profit or loss upon recognition, may bereclassified out of the fair value through profit or loss category, if they are no longer held for thepurpose of selling or repurchasing in the near future.Financial instrument assets that meet the definition of loans and receivables may be reclassified outof the fair value through profit and loss category into the loans and receivables category, wherethey would have met the definition of loans and receivables had they not been required to beclassified as fair value through profit and loss. In these cases, the financial instrument assets may bereclassified out of the fair value through profit category, if there is the intention and ability to holdthem for the foreseeable future or until maturity.Derivative financial instrumentsDerivative financial instruments, being foreign exchange forward contracts and foreign exchangeoptions, are held to hedge the Corporation’s foreign currency exposures. The Corporation applieshedge accounting where applicable.On the initial designation of a hedge, the Corporation formally documents the relationship betweenthe hedging instrument(s) and the hedged item(s), including risk management objectives andstrategy in undertaking the hedge transaction, together with methods that will be used to assess36Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011the effectiveness of the hedging relationship. The Corporation makes an assessment, both at theinception of the hedge relationship and, on an ongoing basis, whether the hedging instrumentsare expected to be ‘highly effective’ in offsetting the changes in fair value or cash flows of therespective hedged items during the period for which the hedge has been designated, and whetherthe actual results of each hedge are within a range of 80-125 percent. For a cash flow hedge ofa forecast transaction, the transaction should be highly probable to occur and should present anexposure to variations in cash flows that could ultimately affect the reported net income.Derivatives are recognised initially at fair value; attributable transactions costs are recognised in theprofit and loss as incurred. Subsequent to initial recognition, derivatives are measured at fair valueand therein accounted for as described below.Changes in fair value of the derivative hedging instrument designated as a cash flow hedge arerecognised under other comprehensive income to the extent the hedge is effective. To the extentthe hedge is ineffective; changes in fair value are recognised in the profit and loss.If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold,terminated or exercised, or the designation is revoked, the hedge accounting is discontinuedprospectively. The cumulative gain or loss previously recognised in other comprehensive incomeand presented in the hedging reserve in equity remains there until the forecast transactions affectsthe profit or loss. If the forecast transaction is no longer expected to occur, then the balance in othercomprehensive income is recognised immediately in the profit and loss.(l) Financial AssetsCashCash is held at call with Treasury Corporation of Victoria and other financial institutions.For the purpose of the Cash Flow Statement, cash and cash equivalents includes notes and coinsheld, cash at bank and deposits with a maturity of 3 months or less, which are readily convertible tocash on hand and are subject to insignificant risk of changes in value.ReceivablesReceivables consist predominantly of debtors in relation to goods and services and accruedinvestment income that are not quoted on the active market.Receivables that are contractual are classified as financial instruments. Statutory receivables arenot classified as financial instruments.Receivables are initially recognised at fair value plus any attributable transaction cost andsubsequently measured at amortised cost using the effective interest method less an allowance forimpairment.A provision for doubtful receivables is made when there is objective evidence that the debts maynot be collected and bad debts are written off when identified.Australian Grand Prix Corporation Annual Report 2011 37

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Impairment of financial assetsAt the end of each reporting period, the Corporation assesses whether there is objective evidencethat a financial asset or group of financial assets is impaired. Objective evidence includes financialdifficulties of the debtor, default payments, debts which are more than 60 days overdue, andchanges in debtor credit ratings. All financial instrument assets, except those measured at fair valuethrough profit and loss, are subject to annual review for impairment.Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debtsconsidered as written off by mutual consent are classified as a transaction expense. Bad debts notwritten off by mutual consent and the allowance for doubtful receivables are classified as ‘othereconomic flows’ in the net result.The amount of the allowance is the difference between the financial asset’s carrying amount andthe present value of the estimated future cash flows, discounted at the effective interest rate.In assessing impairment of statutory (non-contractual) financial assets, which are not financialinstruments, professional judgement is applied in assessing materiality using estimates, averagesand other computational methods in accordance with AASB 13 Impairment of Assets.(m) Non-financial AssetsInfrastructure, Plant and EquipmentItems of non-financial physical assets are measured initially at cost and subsequently revalued at fairvalue less depreciation and impairment.The fair value of infrastructure, plant and equipment is normally determined by reference to theasset’s depreciated replacement cost. For infrastructure, plant and equipment, existing depreciatedhistorical cost is generally a reasonable proxy for depreciated replacement cost because of theshort lives of the assets concerned.The cost of constructed non-financial physical assets includes the cost of all materials used inconstruction, direct labour on the project, and an appropriate proportion of variable and fixedoverheads.Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at thedate of acquisition.For the accounting policy on impairment of non-financial physical assets, refer to impairment ofnon-financial assets under Note 1(j) Impairment of non-financial assets.Non-financial physical assets constructed by the CorporationThe cost of constructed non-financial physical assets includes the cost of all materials used inconstruction, direct labour on the project, and an appropriate proportion of variable and fixedoverheads.38Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Revaluation of non-current assetsNon-financial physical assets are measured at fair value in accordance with FRD 103D issued by theMinister of Finance. A full revaluation of assets normally occurs every 5 years and is based on theasset’s Government Purpose Classifications. Independent valuers are used to conduct scheduledrevaluations.Revaluation increases and decreases arise from differences between an asset’s carrying value andfair value.Net revaluation increases (where the carrying amount of a class of assets is increased as a resultof a revaluation) are recognised in ‘Other economic flows – other movements in equity’ andaccumulated in equity under the revaluation surplus. However the net revaluation increase isrecognised in the net result to the extent that it reverses a net revaluation decrease in respect ofthe same class of infrastructure, plant and equipment previously recognised as an expense (othereconomic flows) in the net result.Net revaluation decreases are recognised immediately as expenses (other economic flows) in thenet result, except that the net revaluation decrease shall be recognised in other comprehensiveincome to the extent that a credit balance exists in the revaluation surplus in respect of the sameclass of infrastructure, plant and equipment. The net revaluation decrease recognised in othercomprehensive income reduces the amount accumulated in equity under revaluation surplus.Revaluation increases and decreases relating to individual assets within a class of infrastructure,plant and equipment, are offset against one another within that class but are not offset in respect ofassets in different classes. Any revaluation surplus is not normally transferred to accumulated fundson de-recognition of the relevant asset.Capital WorksAll fixed capital works constructed within Albert Park have been transferred to a third party, ParksVictoria free of charge, in accordance with the licence agreements.Intangible assetsPurchased intangible assets are initially recorded at cost. Subsequently, intangible assets with finiteuseful lives are carried at cost less accumulated amortisation and accumulated impairment losses.Costs incurred subsequent to initial acquisition are capitalised when it is expected that additionalfuture economic benefits will flow to the State.When recognition criteria in AASB 138 Intangible Assets are met, internally generated intangibleassets are recognised at cost less accumulated amortisation and impairment.Refer to Note 1(i) Depreciation and Amortisation and Note 1(j) Impairment of non-financial assets.Australian Grand Prix Corporation Annual Report 2011 39

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(n) LiabilitiesPayablesPayables consist of:• contractual payables, such as accounts payable, and unearned income including deferredincome from concession arrangements. Accounts Payable represent liabilities for goods orservices provided to the Corporation prior to the end of the financial year that are unpaidand arise when the Corporation becomes obliged to make future payments in respect of thepurchases of goods and services; and• statutory payables, such as goods and services tax and fringe benefits tax payables.Contractual payables are classified as financial instruments and categorised as financial liabilitiesat amortised cost (refer to Note 1(k)). Statutory payables are recognised and measured similarlyto contractual payables, but are not classified as financial instruments and not included in thecategory of financial liabilities at amortised cost, because they do not arise from a contract.Deferred incomeDeferred income consists of revenue received during the period which relates to activities to beconducted in future financial years.ProvisionsProvisions are recognised when the Corporation has a present obligation, the future sacrifice ofeconomic benefits is probable and the amount of the provision can be measured reliably.The amount recognised as a provision is the best estimate of the consideration required to settlethe present obligation at reporting date, taking into account the risks and uncertainties surroundingthe obligation. Where a provision is measured using the cashflows estimated to settle the presentobligation, its carrying amount is the present value of those cashflows using the discount rate thatreflects the time value of money and risks specific to the provision.When some or all of the economic benefits required to settle a provision are expected to be receivedfrom a third party, the receivable is recognized as an asset if it is virtually certain that recovery will bereceived and the amount of the receivable can be measured reliably.Provision is made for benefits accruing to employees in respect of wages and salaries, annual leaveand long service leave for services rendered to the reporting date.Wages and salaries and annual leaveLiabilities for wages and salaries, including non-monetary benefits and annual leave are recognisedin the provision for employee benefits, classified as current liabilities. Those liabilities which areexpected to be settled within 12 months of the reporting date are measured at their nominal values.Those liabilities that are not expected to be settled within 12 months are also recognised in theprovision for employee benefits as current liabilities, but are measured at the present value of theamounts expected to be paid when the liabilities are settled using the remuneration rate expectedto apply at the time of settlement.40Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Long Service LeaveLiability for long service leave (LSL) is recognised in the provision for employee benefits.Unconditional LSL is disclosed in the notes to the financial statements as a current liability even wherethe corporation does not expect to settle the liability within 12 months because it will not have theunconditional right to defer the settlement should an employee take leave within 12 months.The components of this current LSL liability are measured at:- Nominal value – component that the Corporation expects to settle within 12 months- Present value – component that the Corporation does not expect to settle within 12 monthsConditional LSL is disclosed as a non-current liability. There is an unconditional right to defer thesettlement of the entitlement until the employee has completed the requisite years of service.The non-current liability is measured at present value. Any gain or loss following revaluation of thepresent value of the non-current LSL liability is recognised as a transaction, except to the extent thata gain or loss arises due to changes in bond interest rates, for which it is then recognised as an ‘othereconomic flow’.(refer note 1 (j))Employee benefits on-costsEmployee benefits on-costs such as payroll tax, workers compensation and superannuation arerecognised separately from the provision for employee benefits.(o) LeasesA lease is a right to use an asset for an agreed period of time in exchange for payment.Leases are classified at their inception as either operating or finance leases based on the economicsubstance of the agreement so as to reflect the risks and rewards incidental to ownership. Leasesof property, plant and equipment are classified as finance leases whenever the terms of the leasetransfer substantially all the risks and rewards of ownership to the lessee. All other leases are classifiedas operating leases.Operating LeaseOperating lease payments are recognised as an expense in the comprehensive operatingstatement on a straight line basis over the lease term, except where another systematic basis is morerepresentative of the time pattern of the benefits derived from the use of the asset. The leased assetis not recognised in the balance sheet.The cost of leasehold improvements is capitalised as an asset and depreciated over the remainingterm of the lease or the estimated useful life of the improvements, whichever is the shorter.Australian Grand Prix Corporation Annual Report 2011 41

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(p) Accounting for goods and services tax (GST)Income, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case, it is recognised as part of thecost of acquisition of the asset or as part of the expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. Thenet amount of GST recoverable from, or payable to, the taxation authority is included with otherreceivables or payables in the balance sheet.Cash flows are presented on a gross basis. The GST components of the cash flows arising frominvesting or financing activities which are recoverable from, or payable to the taxation authority,are presented as operating cash flow.(q) Foreign Currency Transactions and BalancesAll foreign currency transactions during the financial year are brought to account using theexchange rate in effect at the date of the transaction. Foreign monetary items existing at the endof the reporting period are translated at the closing rate at the date at the end of the reportingperiod. Non-monetary assets carried at fair value that are denominated in foreign currencies aretranslated at the rates prevailing at the date when the fair value was determined.Foreign currency translation differences are recognised in ‘other economic flows’ and accumulatedin the cash flow hedge reserve in the period in which they arise.(r) Contingent assets and contingent liabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but aredisclosed by way of a note and if quantifiable are measured at nominal value. Contingent assetsand liabilities are presented inclusive of GST receivable and payable respectively.(s) New accounting standards and interpretationsCertain new accounting standards and interpretations have been published that are not mandatoryfor the 30 June 2011 reporting period. The Department of Treasury and Finance has assessed theimpact of the new standards and has advised the Corporation of their applicability and earlyadoption where applicable.As at 30 June 2011, the following standards and interpretations (applicable to the Corporation) hadbeen issued but were not mandatory for the financial year ending 30 June 2011. The Corporationhas not early adopted these standards.42Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Standard/InterpretationAASB 9 FinancialInstrumentsAASB 124 Relatedparty disclosures (Dec2009)AASB 1053 Applicationof Tiers of AustralianAccounting StandardsAASB 2009-11Amendments toAustralia AccountingStandards arising fromAASB 9 [AASB 1, 3,4, 5, 7, 101, 102, 108,112, 118, 121, 127, 128,131, 132, 136, 139,1023 and 1038 andInterpretations 10 and112]SummaryThis standard simplifiesrequirements forthe classificationand measurementof financial assetsresulting from Phase 1of the IASB’s project toreplace IAS 39 FinancialInstruments: Recognitionand Measurement(AASB 139 FinancialInstruments: Recognitionand Measurement)Government relatedentities have beengranted partialexemption with certaindisclosure requirementsThis Standard establishesa differential financialframework consistingof two tiers of reportingrequirements forpreparing generalpurpose financialstatementsThis Standard giveseffect to consequentialchanges arising fromthe issuance of AASB 9.Applicable for annualreporting periodsbeginning onBeginning 1 Jan 2013Beginning 1 Jan 2011Beginning 1 July 2013Beginning 1 Jan 2013Impact on Corporationfinancial statementsDetail of impact is stillbeing assessed.Preliminary assessmentsuggests that impact isinsignificant. However,the Corporation is stillassessing the detailedimpact and whetherto early adopt.The VictorianGovernment iscurrently consideringthe impacts ofReduced DisclosureRequirements (RDRs)for certain publicsector entities and hasnot decided if RDRswill be implementedto the Victorian PublicSector.Detail of impact is stillbeing assessedAustralian Grand Prix Corporation Annual Report 2011 43

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Standard/InterpretationAASB 2009-12Amendments toAustralian AccountingStandards [AASB5,8,108,110,112,119,133,137,139,1023,1031and Interpretations2,4,16,1039 and 1052]SummaryThis standard amendsAASB to require anentity to exercisejudgement in assessingwhether a governmentand entities known tobe under the control ofthat government areconsidered a singlecustomer for purposesof certain operatingsegment disclosures.Thisstandard also makesnumerous editorialamendments to otherAASBs.Applicable for annualreporting periodsbeginning onBeginning 1 Jan 2011Impact on Corporationfinancial statementsThe amendments onlyapply to those entitiesto whom AASB 8applies, which are forprofitentities exceptfor-profit governmentdepartments. Detailof impact is still beingassessed.AASB 2009-14Amendmentsto AustralianInterpretation –Prepayments ofminimum fundingrequirement [AASBInterpretation 14]Amendments toInterpretation 14 arisingfrom the issuanceof prepayments ofa minimum fundingrequirementBeginning 1 Jan 2011Expected to have nosignificant impactAASB 2010-2Amendments toAustralian AccountingStandards arising fromReduced DisclosureRequirementsAASB 2010-4 FurtherAmendments toAustralian AccountingStandards from theAnnual ImprovementsProject [AASB 1,7, 101 & 134 andInterpretation 13]This Standard makesamendments to manyAustralian AccountingStandards, includingInterpretations, tointroduce reduceddisclosure requirementsto the pronouncementsfor the application bycertain types of entities.This Standardmake numerousimprovements designedto enhance the clarityof standards.Beginning 1 July 2013Beginning1 Jan 2011Does not affectfinancial measurementor recognition, so is notexpected to have anyimpact on financialresult or position. Mayreduce some notedisclosures in financialstatements.No significant impacton the financialstatements.44Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Standard/InterpretationAASB 2010-5Amendments toAustralian AccountingStandards [AASB 1,3, 4, 5, 101, 107, 112,118, 119, 121, 132,133, 134, 137, 139,140, 1023 & 1038 andInterpretations 112,115, 127, 132 &1042]AASB 201-6Amendments toAustralian AccountingStandards – Disclosureson Transfers ofFinancial Assets [AASB1 & AASB 7]AASB 2010-7Amendments toAustralian AccountingStandards arising fromAASB 9 (December2010) [AASB 1, 3, 4, 5,7, 101, 102, 108, 112,118, 120, 121, 127, 128,131, 132, 136, 137,139, 1023 &1038 andInterpretations 2, 5, 10,12, 19, 127]AASB-8 Amendmentsto AustralianAccounting Standards– Deferred Tax:Recovery of UnderlyingAssetsSummaryThis amendmentcontains editorialcorrection to a range ofAustralian AccountingStandards andInterpretations, whichincludes amendmentsto reflect changesmade to the text ofIFRSs by the IASB.This amendment addsand changes disclosurerequirements aboutthe transfer of financialassets. This includes thenature and risk of thefinancial assets.These amendmentsare in relation to theintroduction of AASB 9.This amendmentprovides a practicalapproach for measuringdeferred tax assets anddeferred tax liabilitieswhen measuringinvestment propertyby using the fair valuemodel in AASB 140Investment Property.Applicable for annualreporting periodsbeginning onBeginning1 Jan 2011Beginning1 Jan 2011Beginning 1 Jan 2013Beginning 1 July 2012Impact on Corporationfinancial statementsNo significant impacton the financialstatementsThis may impact ondepartments andpublic sector entitiesas it creates additionaldisclosure for transfersof financial assets.Detail of this is stillbeing assessedThis amendmentmay have an impacton departmentsand public sectorbodies as AASB 9is a new standardand it changes therequirements ofnumerous standards.Detail of impact is stillbeing assessed.Amendment unlikelyto impact on publicsector entities.Australian Grand Prix Corporation Annual Report 2011 45

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Standard/InterpretationAASB-9 Amendmentsto AustralianAccounting Standards– Severe Hyperinflationand Removal of FixedDates for the First-timeAdopters [AASB 1]AASB 2011-1Amendments toAustralian AccountingStandards arising fromthe Trans-TasmanConvergence Project[AASB 1, 5, 101, 107,108, 121, 128, 132, 134,and Interpretations 2,112 & 113]AASB 2011-3Amendments toAustralian AccountingStandards – OrderlyAdoption of Changesto the ABS GFSManual and RelatedAmendments [AASB1049]Applicable for annualreporting periodsbeginning onSummaryThis amendment Beginning 1 July 2011provides guidance forentities emerging fromsevere hyperinflationwho are going toresume presentingAustralian AccountingStandards financialstatements or entitiesthat are to presentAustralian AccountingStandards financialstatements for thefirst time. It providesrelief for first-timeadopters from having toreconstruct transactionsthat occurred beforetheir date of transition toAustralian AccountingStandards.This amendment affects Beginning 1 July 2013multiple AustralianAccounting Standardsand AASB Interpretationfor the objective ofincreased alignmentwith IFRSs and achievingharmonisationbetween bothAustralian and NewZealand Standards.It achieves this byremoving guidanceand definitions fromsome AustralianAccounting Standards,without changing theirrequirements.This amends AASB 1049 Beginning 1 July 2012to clarify the definitionof the ABS GFS Manual,and to facilitate theadoption of changesto the ABS GFS Manualand related disclosuresImpact on Corporationfinancial statementsThis amendment willhave no impact onpublic bodies.The VictorianGovernment iscurrently consideringthe impacts ofReduced DisclosureRequirements(RDRs) and has notdecided if RDRs willbe implemented toVictorian Public Sector.This amendmentprovided clarificationto users of the versionof the GFS Manual tobe used and what todisclose if the latest GFSManual is not used. Noimpact on performancemeasurements willoccur.46Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 20112. Revenue And Expenses From Ordinary Activities2011Formula OneGrand Prix2010MotorcycleGrand PrixFutureGrandsPrixJune 2011FinancialYear Total2010Formula OneGrand Prix2009MotorcycleGrand PrixFutureGrandsPrixJune 2010FinancialYear Total$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’sIncome from transactionsSales revenue 26,462 6,172 - 32,634 24,576 7,276 - 31,852Sponsorship/Commercial revenue 5,748 1,451 - 7,199 6,222 1,505 - 7,727Interest received 1,721 100 - 1,821 1,185 80 - 1,265Government Contributions – recurrent* 50,050 2,031 4,302 56,383 49,254 5,488 3,996 58,738Government Contributions – non recurrent 1,851 - - 1,851 1,384 - 7,823 9,207Other operating revenue 211 26 - 237 44 46 - 90Total income from transactions 86,043 9,780 4,302 100,125 82,665 14,395 11,819 108,879Expenses from transactionsEvent Management and Staging** 43,802 7,333 - 51,135 42,070 6,789 - 48,859Recurrent Engineering** 26,841 3,030 - 29,871 24,544 3,213 - 27,757Administration*** 4,794 1,804 - 6,598 5,271 1,855 - 7,126Marketing/Promotion and Catering**** 11,125 2,335 - 13,460 11,280 2,424 - 13,704Total expenses from transactions 86,562 14,502 - 101,064 83,165 14,281 - 97,446Net Result from Transactions (net operatingbalance)(519) (4,722) 4,302 (939) (500) 114 11,819 11,433Other economic flows (4,640) (1) - (4,641) 1,893 4 - 1,897Net Result (5,159) (4,723) 4,302 (5,580) 1,393 118 11,819 13,330* Includes $1,228,305 for recurrent spending on the 2012 Formula One event and $3,074,000 for recurrent spending on the 2011 Motorcycle event received in the 10/11financial year (2010: $204,000 for the 2011 Formula One Event and $3,737,000 for the 2010 Motorcycle Event)** Includes costs associated with the assembly, dismantle and servicing of event infrastructure*** Includes depreciation and amortisation**** Catering costs of $976,990 relating to the 2009 Motorcycle event have been deducted from Event Management and Staging and reallocated to Marketing/Promotion and CateringAustralian Grand Prix Corporation Annual Report 2011 47

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 20113. Expenses From Transactions2011Formula OneGrand Prix2010MotorcycleGrand PrixJune 2011FinancialYear Total2010Formula OneGrand Prix2009MotorcycleGrand PrixJune 2010FinancialYear Total$000’s $000’s $000’s $000’s $000’s $000’sDISCLOSUREItems of expenses from transactions included in the comprehensiveoperating statement requiring specific disclosure:Bad and doubtful debts 7 - 7 45 - 45Depreciation and amortisation- Amortisation - finance lease - - - 14 - 14- Amortisation – intangibles 65 - 65 13 - 13- Depreciation - furniture & equipment 256 86 342 164 55 219- Depreciation - Grand Prix infrastructure 1,174 35 1,209 2,349 49 2,398Employee Benefits- Salaries, wages, annual leave, long service leave 6,111 65 6,176 5,791 75 5,866- Superannuation contributions 483 - 483 434 - 434- Termination payments 187 - 187 80 - 80Operating lease expenses 593 - 593 494 - 494(Profit)/Loss on sale of property, plant and equipment 48 - 48 (16) - (16)Assets provided free of charge to Parks Victoria 886 - 886 70 - 70Realised Foreign Exchange (Gains) Losses - 1 1 - - -Unrealised Foreign Exchange (Gains) Losses* 4,592 - 4,592 (2,609) - (2,609)* Foreign exchange contracts were entered into at the request of the Victorian Government’s Department of Treasury and Finance and the Treasury Corporation of Victoria.48Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 20114. Correction to Prior PeriodDue to an overvaluation, the non-current foreign exchange options contracts for the year ended30 June 2010 were overstated by $2,467,000. This had the effect of overstating receivables, totalassets and total equity by $2,467,000 as at 30 June 2010.Each of the affected financial statement line items for the prior year has been corrected.5. Auditors’ Remuneration2011 2010$000’s$000’sAmounts received or due and receivable by theauditors of the Victorian Auditor-General’s Office 62 606. Cash & DepositsCash on hand 1 1Cash at callAustralian dollar accounts 12,410 3,064Term Deposits:Australian dollar term deposits < 3 months8,000 16,80020,411 19,8657. ReceivablesTrade debtors - current* 3,452 5,989Prepayments 824 750Other debtors - current 539 1,2064,815 7,945Provision for doubtful debts (7) (45)4,808 7,900As at 30 June 2011, current receivables of the Corporation with a nominal value of $6,554 (2010:$44,677) were impaired. The amount of the provision was $6,554 (2010: $44,677). The Corporationis actively seeking recovery of this debt.As at 30 June 2011, trade debtors of $564,882 (2010: $1,511,286) were past due but not impaired.These amounts relate to a number of independent customers for whom there is no recent historyof default. The ageing analysis of these receivables is as follows:Less than 60 days 407 66860 to 120 days 151 139Over 120 days 7 704565 1,511Australian Grand Prix Corporation Annual Report 2011 49

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Movements in the provision for doubtful debts are as follows:2011 2010$000’s$000’sCarrying amount at beginning of year (45) (377)Provision recognised during the year (7) (45)Receivables recovered during the year 45 -Receivables written off during the year - 377(7) (45)* A provision has been made for estimated irrecoverable amounts from the sale of goods and services when thereis objective evidence that an individual receivable is impaired. The increase was recognised in the net result forthe current financial year.8. Other economic flows included in net profit(a) Net FX gain/(loss) arising from financial instruments (4,593) 2,609(b) Other gains/(losses) from other economic flowsNet gain/(loss) on sale of non-financial assets (48) 16Net gain/(loss) on reassessment of useful life offixed assets- (728)Total gains/(losses) from other economic flows (4,641) 1,8979. Infrastructure, Plant and Equipment(a) Classification by ‘Purpose Group’ - Carrying amount*Public Safety & EnvironmentFurniture and Equipment – at fair value 503 551Grand Prix infrastructure 13,731 8,513Net carrrying amount of infrastructure plant &equipment14,234 9,064*Infrastructure, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used,according to one of six purpose groups based upon government purpose classifications (GPC). All assets withina purpose group are further sub categorised according to the asset’s nature (i.e. buildings, plant and equipment,etc) with each sub category being classified as a separate class for financial reporting purposes.(b) Gross Carrying amount and accumlated depreciationGross carryingamountAccumulateddepreciationNet carryingamount2011 2010 2011 2010 2011 2010$000’s $000’s $000’s $000’s $000’s $000’sFurniture andequipment at fair valueGrand Prix infrastructureat fair value1,952 1,808 (1,449) (1,257) 503 55113,731 20,613 - (12,100) 13,731 8,51315,683 22,421 (1,449) (13,357) 14,234 9,06450Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(c) Public Safety and Environment Purpose Group – Movements in carrying amountsFurniture andequipment at fairvalueGrand Prixinfrastructure at fairvalueTotal2011 2010 2011 2010 2011 2010$000’s $000’s $000’s $000’s $000’s $000’sOpening balance 551 303 8,513 10,076 9,064 10,379Additions 303 467 4,350 910 4,653 1,377Disposals (9) - (47) (5) (56) (5)Revaluation of Grand- - 3,357 - 3,357 -Prix infrastructureReallocation to- - (347) - (347) -intangible assets*Transfer to Parks Victoria - - (886) (70) (886) (70)Depreciation (342) (219) (1,209) (2,398) (1,551) (2,617)Closing balance 503 551 13,731 8,513 14,234 9,064* The cost of the Corporation’s website had previously been included as a work in progress in infrastructure, plantand equipment. During the year it was transferred to intangible assets.(d) Aggregate depreciation recognised as an expense during the year2011 2010$000’s$000’sFurniture and equipment at fair value 342 219Grand Prix infrastructure 1,209 2,3981,551 2,617* The useful lives of assets as stated in Policy Note 1 are used in the calculation of depreciation.Grand Prix InfrastructureAn independent valuation of the Grand Prix infrastructure was performed by Opteon Plant andMachinery Valuers in conjunction with the Valuer-General Victoria, to determine the fair value ofthe infrastructure. The valuation, which conforms to Australian Valuation Standards, was determinedby reference to the amounts at which assets could be exchanged between knowledgeable willingparties in an arm’s length transaction. The valuation was based on independent assessments. Theeffective date of the valuation is 30 June 2011.Australian Grand Prix Corporation Annual Report 2011 51

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 201110. Intangible AssetsComputer software Trademark Total2011 2010 2011 2010 2011 2010$000’s $000’s $000’s $000’s $000’s $000’sOpening balance - - 999 999 999 999Additions 347 - - - 347 -Disposals - - - - - -Closing balance 347 - 999 999 1,346 999Accumulatedamortisation (52) - (948) (935) (1,000) (935)Closing balance 295 - 51 64 346 64The Corporation has capitalised the cost of trademarks and intellectual property. The useful life of the assetwas reviewed in 2009 and it will be fully amortised by 2015. The cost of the Corporation’s webite has also beencapitalised and will be fully amortised by 2016.11. Payables2011 2010$000’s$000’sSupplies and other services 4,608 6,784Sundry creditors – current - 14,608 6,785(a)Maturity analysis of contractual payablesPlease refer to note 16 for maturity analysis of contractual payables(b)Nature and extent of risks arising from contractual payablesPlease refer to note 16 for the nature and extent of risks arising from contractualpayables12. ProvisionsCurrent ProvisionsEmployee benefits* - annual leave:Unconditional and expected to settle within 12 months 302 253Employee benefits* – long service leave:Unconditional and expected to settle after 12 months** 98 80Total employee benefits 400 333Provision related to employee benefit on-costs:Unconditional and expected to settle within 12 months 48 48Unconditional and expected to settle after 12 months** 16 15Total employee benefit on-costs 64 63Total Current Provisions 464 39652Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 20112011 2010$000’s$000’sNon-Current ProvisionsEmployee benefits* 32 19Employee benefit on-costs 5 4Total Non-Current Provisions 37 23Total Provisions 501 419* Provisions for employee benefits consist of amounts for annual leave and long service leave accrued byemployees, not including on-costs.** The amounts disclosed are discounted to present values.(a) Employee benefits and related costsCurrent employee benefitsAnnual leave entitlements 302 253Long service leave entitlements 98 80400 333Non-current employee benefitsLong service leave entitlements 32 19Total employee benefits 432 352Current on-costs 64 63Non-current on-costs 5 4Total on-costs 69 67Total employee benefits and related on-costs 501 419(b) Movement in provisionsEmployeebenefitsOn-costsTotal2011$000’s2011$000’s2011$000’sOpening balance 352 67 419Additional provisions made 80 2 82Closing balance 432 69 501Current 400 64 464Non-current 32 5 37432 69 50113. Deferred IncomeAdvanced sponsorship 79 130Advance ticket sales 5,503 2,8195,582 2,949Australian Grand Prix Corporation Annual Report 2011 53

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 201114. Derivatives2011 2010$000’s$000’sCurrent foreign exchange forward contracts (7,296) 672Non-current foreign exchange forward contracts (19,483) 7,507Non-current foreign exchange options contracts 1,223 6,314(25,556) 14,493Foreign exchange contracts were entered into at the request of the Victorian Government’sDepartment of Treasury and the Treasury Corporation of Victoria.15. Equity(a) Contributed CapitalContributed Capital at the beginning of the year 10,739 10,739Contributed Capital at the end of the year 10,739 10,739(b) Cashflow hedge reserveReserve at the beginning of the year 10,334 -Current year reserve (35,458) 10,334Reserve at the end of the year (25,124) 10,334(c) Asset revaluation reserveReserve at the beginning of the year - -Current year reserve 3,357 -Reserve at the end of year 3,357 -(d) Accumulated surplusAccumulated surplus at the beginning of the year 20,160 6,830Current year net (loss)/ surplus (5,580) 13,330Accumulated surplus at the end of the year 14,580 20,16016. Additional Financial Instrument DisclosuresThe Corporation’s financial instruments comprise of:• Cash assets;• Term deposits;• Receivables;• Payables; and• Derivatives.Details of the significant accounting policies and methods adopted, including the criteria forrecognition, the basis of measurement, and the basis on which income and expenses are recognised,with respect to each class of financial asset, financial liability and equity instrument are disclosed inNote 1 to the financial statements.The Corporation’s activities expose it to a variety of financial risks including interest rate risk, foreignexchange risk, liquidity risk and credit risk. The Corporation manages these financial risks in accordancewith the financial risk policy. The Corporation uses different methods to measure different types ofrisk to which it is exposed. Primary responsibility for the identification and management of financialrisks rests with the Audit and Risk Committee of the Corporation.54Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(a) Categorisation of financial instruments2011 Contractualfinancial assetsdesignatedat fair valuethrough profit/lossContractualfinancial assets– loans andreceivablesContractualfinancialliabilities atamortisedcostTotal$000’s $000’s $000’s $000’sContractual financial assets:Cash and deposits - 20,411 - 20,411Receivables: *Trade and other debtors-4,484-4,484Investments and otherfinancial assets:Financial derivatives - - - -Total contractual financial assets - 24,895 - 24,895Contractual financial liabilities:Payables:*Trade and other payables - - 4,417 4,417Financial derivatives 25,556 - - 25,556Total contractual financialliabilities 25,556 - 4,417 29,973* The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input taxcredit recoverable, and taxes payable.2010 Contractualfinancial assetsdesignatedat fair valuethroughprofit/lossContractualfinancial assets– loans andreceivablesContractualfinancialliabilities atamortisedcost$000’s $000’s $000’s $000’sContractual financial assets:Cash and deposits - 19,865 - 19,865Receivables: *Trade and other debtors-7,900-7,900Investments and otherfinancial assets:Financial derivatives 14,493 - - 14,493Total contractual financial assets 14,493 27,765 - 42,258TotalContractual financial liabilities:Payables:*Trade and other payables - - 6,785 6,785Total contractual financialliabilities - - 6,785 6,785* The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input taxcredit recoverable, and taxes payable.Australian Grand Prix Corporation Annual Report 2011 55

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(b) Net holding gain/(loss) on financial instruments by category2011Net holdinggain/lossTotal interestincome/expenseTotal$000’s $000’s $000’sContractual financial assets:Financial assets designated at fair valuethrough profit/loss - - -Financial assets – loans and receivables - 1,821 1,821Total contractual financial assets: - 1,821 1,821Contractual financial liabilities:Payables - - -Total contractual financial liabilities - - -2010Net holdinggain/lossTotal interestincome/expense$000’s $000’s $000’sContractual financial assets:Financial assets designated at fair valuethrough profit/loss - - -Financial assets – loans and receivables - 1,265 1,265Total contractual financial assets - 1,265 1,265TotalContractual financial liabilities:Payables - - -Total contractual financial liabilities - - -The net holding gains and losses disclosed above are determined as follows:• for cash and cash equivalents, loans or receivables and available-for-sale financial assets, thenet gain or loss is calculated by taking the movement in the fair value of the asset, the interestincome, plus or minus foreign exchange gains or losses arising from revaluation of financialassets, and minus any impairment recognised in the net result.• for financial liabilities measured at amortised cost, the net gain or loss is calculated by takingthe interest expense, plus or minus foreign exchange gains or losses arising from the revaluationof financial liabilities measured at amortised cost.56Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(c) Credit riskCredit risk arises from contractual financial assets of the Corporation, comprising cash anddeposits, non-statutory receivables, and derivative instruments. Credit risk represents the loss thatwould be recognised if counterparties failed to perform as contracted. Credit risk is measured atfair value and is monitored on a regular basis.On-Balance Sheet financial instrumentsThe credit risk on the Corporation’s financial assets is the carrying amount of receivables, net ofthe provision for doubtful debts. Credit risk is measured at fair value and is monitored on a regularbasis.Credit risk associated with the Corporation’s contractual financial assets is minimal becausethe main debtor is the Victorian Government. For debtors other than government, it is theCorporation’s policy to deal with only creditworthy counterparties. Credit risk is controlledthrough the Corporation’s risk management policies which deal with credit exposure limits andcounterparty limits (refer note 7).Provision of impairment for contractual financial assets is recognised when there is objectiveevidence that the Corporation will not be able to collect a receivable. Objective evidenceincludes financial difficulties of the debtor, default payments, debts which are more than 60 daysoverdue, and changes in debtor credit ratings.Off – Balance Sheet financial instrumentsThe maximum credit risk exposure on foreign currency contracts is the full amount of the foreigncurrency the Corporation pays when settlement occurs should the counterparty fail to pay theamount which it is committed to pay to the Corporation.As the Corporation transacts all foreign currency contracts with the Treasury Corporation ofVictoria the credit risk is minimal.Australian Grand Prix Corporation Annual Report 2011 57

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 20112011FinancialinstitutionsTriple-Acredit ratingGovernmentAgenciesTriple-Acredit ratingOther MinTriple-Bcredit ratingTotal$000’s $000’s $000’s $000’sCash and deposits 20,411 - - 20,411Receivables - - 4,808 4,808Derivatives - - - -Total contractual financialassets 20,411 - 4,808 25,2192010FinancialinstitutionsTriple-Acredit ratingGovernmentAgenciesTriple-Acredit ratingOther MinTriple-Bcredit ratingTotal$000’s $000’s $000’s $000’sCash and deposits 1,565 18,300 - 19,865Receivables - 2,714 5,186 7,900Derivatives - 14,493 - 14,493Total contractual financialassets 1,565 35,507 5,186 42,258(d) Liquidity RiskLiquidity risk arises when the Corporation is unable to meet its financial obligations as they falldue. The Corporation operates under the Government fair payments policy of settling financialobligations within 30 days and in the event of a dispute, make payments within 30 days from thedate of resolution.The Corporation manages its liquidity risk by:• maintaining an adequate level of uncommitted funds that can be drawn at short notice tomeet its short-term obligations; and• careful maturity planning of financial obligations based on forecasts of future cash flows.The Corporation’s exposure to liquidity risk is deemed insignificant based on prior periods’ dataand current assessment of risk. Adequate controls and processes are in place to ensure sufficientcash is available when debts fall due.Maturity DatesCarrying Nominal Less than 11-3 monthsamount amount month$000’s $000’s $000’s $000’s2011 Payables 4,608 4,608 4,608 -2010 Payables 6,785 6,785 6,785 -58Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(e) Market riskThe Corporation’s exposures to market risk are primarily through foreign currency risk and interest raterisk. Objectives, policies and processes used to manage each of these risks are disclosed below.Foreign currency riskThe Corporation has entered into forward foreign exchange contracts and foreign exchange optionsto hedge certain commitments denominated in US dollars. These contracts extend to 2016. Currentderivatives relate to forward contracts that fall due within the next 12 months and non currentderivatives relate to forward contracts and foreign exchange options that fall due after this date.These forward foreign exchange contracts and foreign currency options have been entered into withfull compliance of guidelines from, and with the approval of, the Treasurer of Victoria in accordancewith the requirements of Section 24(2) of the Australian Grands Prix Act 1994.The Corporation has not disclosed the gross value payable and receivable under the foreign currencycontracts and is exempted from doing so under Section 49 of the Australian Grands Prix Act 1994.Disclosure of this information would constitute a breach of the international agreements as defined innote 25.Interest rate riskThe Corporation has an interest rate risk with respect of monies held on account and on term depositwith the bank (at floating interest rate) and Treasury Corporation of Victoria (at fixed and floatinginterest rates).The Corporation manages this risk by mainly undertaking fixed rate financial instruments with relativelyeven maturity profiles, with only minimised amounts of financial instruments at floating rates. TheCorporation has concluded for cash at bank, these financial assets can be left at floating interest rateswithout exposing the Corporation to significant bad risk, and monitors movements in interest rates on aregular basis.The Corporation does not have any interest rate risk in respect of financial liabilities.The Corporation’s exposure to interest rate risk is set out below:2011Weightedaverageeffectiveinterest rate %Carryingamount$’000Fixedinterest rate$’000Variableinterest rate$’000Non-interestBearing$’000Financial assetsCash at bank 4.63 12,411 - 12,411 -Cash on deposit 4.89 8,000 8,000 - -Receivables 4,808 - - 4,808Derivatives - - - -Total financial assets 25,219 8,000 12,411 4,808Financial liabilitiesPayables 4,608 - - 4,608Derivatives 25,556 - - 25,556Total financialliabilities30,164 - - 30,164Australian Grand Prix Corporation Annual Report 2011 59

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 20112010Weightedaverageeffectiveinterest rate %Carryingamount$’000Fixedinterest rate$’000Variableinterest rate$’000Non-interestBearing$’000Financial assetsCash at bank 2.72 3,065 - 3,065 -Cash on deposit 4.76 16,800 16,800 -Receivables 7,900 - - 7,900Derivatives 14,493 - 14,493Total financial assets 42,258 16,800 3,065 22,393Financial LiabilitiesPayables 6,785 - - 6,785Total financialliabilities6,785 - - 6,785(f) Sensitivity Disclosure AnalysisThe Corporation’s sensitivity to market risk is determined based on the observed range of actualhistorical data for the preceding five year period, with all variables other than the primary riskvariable held constant. Taking into account past performance, future expectations, economicforecasts, and management’s knowledge and experience of financial markets, the Corporationbelieves the following movements are reasonably possible over the next 12 months (base rates aresourced from Treasury Corporation of Victoria): a parallel shift of +1.0 per cent and -1.0 per cent inthe market interest rates from year-end rates.The impact on net operating result and equity for each category of financial instrument, other thanderivatives, held by the Corporation at year-end as presented to key management personnel, if theabove movements were to occur, is immaterial for the 2010 and 2011 years. For financial derivatives,the Corporation is exempt from disclosing gross values (refer note 16 (e)).(g) Net fair valuesValuation approachThe fair values and net fair values of financial instrument assets and liabilities are determined asfollows:• Level 1 – the fair value of financial instruments with standard terms and conditions and tradedin active liquid markets are determined with reference to quoted market prices;• Level 2 – the fair value is determined using inputs other than quoted prices that are observablefor the financial asset or liability, either directly or indirectly; and• Level 3 – the fair value is determined in accordance with generally accepted pricing modelsbased on discounted cash flow analysis using unobservable market inputs.The Corporation considers that the carrying amount of financial instrument assets and liabilitiesrecorded in the financial statements is a fair approximation of their fair values because of the shorttermnature of the financial instruments and the expectation that they will be paid in full.60Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Off – Balance Sheet financial instrumentsThe Corporation has not disclosed the net fair value payable for forward future commitmentsunder foreign exchange forward contracts and is exempted from doing so under Section 49 ofthe Australian Grands Prix Act 1994. Disclosure of this information would constitute a breach of theinternational agreements.17. Leases2011 2010$000’s$000’sOperating Lease CommitmentsOperating leases relate to office facilities.Non-cancellable operating leases payable:- Not longer than one year 531 415- Longer than one year but not longer than five years 279 211810 62618. CommitmentsThe Corporation has commitments associated with foreign exchange forward and options contracts(refer note 14).19. Contingent LiabilitiesThe Corporation received a Notice pursuant to section 264 of The Income Tax Assessment Act1936 requiring it to produce documents and furnish information to the Australian Taxation Office.The Corporation has responded to the Notice. The Corporation continues to cooperate with theAustralian Taxation Office in relation to the Notice and the Corporation’s response. The financialeffect (if any) cannot be quantified and the timing of the outcome of the audit cannot be specifieddue to the audit process still being in progress. (2010:nil)20. Reconciliation of net result for the period to netcash flows from operating activities.2011 2010$000’s$000’sNet result for the period (5,580) 13,330Non-cash movements:Capital works transferred to Parks Victoria 886 70(Gain)/loss on sale of non-current assets 48 (16)Depreciation and amortisation of non-current assets 1,616 2,645Movements in assets and liabilities:Decrease/(Increase) in receivables 3,092 (3,224)(Decrease)/Increase in payables (2,177) 1,109(Decrease)/Increase in provisions 82 70(Decrease)/Increase in deferred income 2,633 (185)(Decrease)/Increase in derivatives 4,591 (2,748)Net cash flows from/(used in) operating activities 5,191 11,051Australian Grand Prix Corporation Annual Report 2011 61

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 201121. Responsible-Person Related Disclosures(a) Responsible PersonsPersons who hold the position of Responsible Persons in relation to the Corporation during the yearare:Responsible Minister- The Honourable Tim Holding, MP, Minister for Tourism and MajorEvents – 1 July 2010 to 2 December 2010- The Honourable Louise Asher, MP, Minister for Tourism and MajorEvents – 2 December 2010 – 30 June 2011Accountable Officer - Mr Drew Ward 1 July 2010 to 9 August 2010- Mr Andrew Westacott 9 August 2010 to 30 June 2011Members of the Board - Mr Ronald Walker AC CBE 1 July 2010 to 30 June 2011- Ms Laura Anderson 1 July 2010 to 30 June 2011- Mr William Bowness 1 July 2010 to 30 June 2011- Mr Patrick Flannigan 1 July 2010 to 30 June 2011- Ms Gillian Franklin 1 July 2010 to 30 June 2011- Mr John Harnden AM 1 July 2010 to 30 June 2011- Mr Alan Oxley 1 July 2010 to 30 June 2011- Mr Ken Ryan 1 July 2010 to 30 June 2011- Mr James Strong AO 1 July 2010 to 30 June 2011(b) Remuneration of Responsible PersonsMembers of the Board act in an honorary capacity.The remuneration of the Accountable Officer in connection with the management of the Corporationduring the reporting period was in the range $300,000 - $309,999 (2010: $330,000 - $339,999).The remuneration of the Responsible Minister is reported in the financial report of the Department ofPremier and Cabinet.(c) Other transactions of Responsible Persons and their related entitiesDuring the financial year, in respect of the Formula One Grand Prix and the Motorcycle Grand Prix,the Corporation entered into the following types of transactions with entities of which ResponsiblePersons of the Corporation are Directors, and entities related to Responsible Persons including entitiesunder the significant influence or control of people directly related to the Responsible Persons:Ticket Sales (Corporate Hospitality / Grandstand / General Admission)The Heat Group (Gillian Franklin)Qantas Airways Limited (Ken Ryan, James Strong)Urban Maintenance Systems Pty Ltd(son of Ronald Walker AC CBE is a director of Urban Maintenance Systems Pty Ltd)Sponsorship ArrangementsQantas Airways Limited (Ken Ryan, James Strong)62Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011Provision of ServicesQantas Airways Limited (Ken Ryan, James Strong)Urban Maintenance Systems Pty Ltd(son of Ronald Walker AC CBE is a director of Urban Maintenance Systems Pty Ltd)Peer Group Media Pty Ltd(daughter of Ronald Walker AC CBE is managing partner of Peer Group Media)The above transactions were entered into under normal trading terms and conditions. Pursuant toapproval obtained under section 47(1) of the Financial Management Act (1994), the Corporation isexempt from disclosing the aggregate amount of transactions with related entities.A total of 416 tickets (retail value: $135k exc GST) for the 2011 Formula One Grand Prix (2010: 657tickets) and 100 tickets (retail value: $20k exc GST) for the 2010 Motorcycle Grand Prix (2009: 124tickets) were either used by Responsible Persons free of charge or were provided to entities relatedto Responsible Persons under contractual obligation.22. Executive Officer RemunerationThe number of executive officers, whose total remuneration, inclusive of bonuses, exceeded$100,000 during the year, are shown below in their relevant income bands. Total remuneration alsoincludes final contractual payments to departing executives.Base RemunerationTotal Remuneration2011 2010 2011 2010No. No. No. No.$380,000 - $389,999 - - - 1$360,000 - $369,999 - - - -$330,000 - $339,999 - 1 1 -$320,000 - $329,999 - - - -$300,000 - $309,999 1 - - -$230,000 - $239,999 - - - 1$220,000 - $229,999 - - 1 -$210,000 - $219,999 - 1 - 1$200,000 - $209,999 1 - - -$190,000 - $199,999 - 2 1 1$180,000 - $189,999 - - 1 -$170,000 - $179,999 1 - 2 1$160,000 - $169,999 1 1 2 -$150,000 - $159,999 4 - 1 1$140,000 - $149,999 - - - 2$130,000 - $139,999 - 2 - -$120,000 - $129,999 - 1 1 -$110,000 - $119,999 1 - - -$100,000 - $109,999 - - - -Total remuneration of executive $1,572,273 $1,508,433 $1,898,164 $1,644,456officers for the year includedabove amounted toNumber of Executives 9 8 10 8Australian Grand Prix Corporation Annual Report 2011 63

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 201123. SuperannuationEmployees of the Corporation are entitled to receive superannuation benefits. Superannuationcontributions are included as part of employee benefits in the comprehensive operating statementof the Corporation.Contributions were made on behalf of employees to Lifetrack Corporate Superannuation (theCorporation’s employer nominated fund). These contributions are based on the requirements of theSuperannuation Guarantee (Administration) Act 1992 and its regulations. This fund is an accumulationtype fund. The Corporation therefore has no exposure to any unfunded liabilities.Contributions amounting to $220,060 (2010: $245,820) were made to the fund by the Corporationduring the year, this was in accordance with the statutory superannuation contribution rate of 9%(2010: 9%). There were no amounts owing at the end of the year. The total number of currentemployees in the fund at 30 June 2011 was 22 (2010: 36).Contributions were also made to 18 other eligible superannuation funds where employees exerciseda choice of fund. Contributions amounting to $263,265 (2010: $188,575) were made to these fundsby the Corporation during the year. This was in accordance with the statutory superannuationcontribution rate of 9% (2010: 9%). There were no amounts owing at the end of the year.24. Events Subsequent to Balance DateThere has not arisen in the interval between the end of the financial year and the date of signingthese financial statements, any item, transactions or event of a material and unusual nature likely toaffect significantly the operations of the Corporation, the results of those operations, or the state ofaffairs of the Corporation, in subsequent financial years.25. Economic DependencyThe ongoing activities of the Corporation are dependent upon the Corporation being able to exerciseits rights and perform its obligations under the Australian Grands Prix Act 1994 and the continuedexistence of certain contracts with international bodies concerning the staging of the Formula OneGrand Prix at Albert Park and the staging of the Motorcycle Grand Prix at Phillip Island. The contractin respect of the Formula One Grand Prix runs until 2015. The contract in respect of the MotorcycleGrand Prix runs until 2016.The Corporation is economically dependent upon funding from the Victorian State Government.26. Glossary of TermsAmortisationAmortisation is the expense which results from the consumption, extraction or use over time of a nonproducedphysical or intangible asset. This expense is classified as an ‘other economic flow’.Comprehensive ResultTotal comprehensive result is the change in equity for the period other than changes arising fromtransactions with owners. It is the aggregate of net result and other non-owner changes in equity.64Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011CommitmentsCommitments include those operating, capital and other outsourcing commitments arising fromnon-cancellable contractual or statutory sources.DepreciationDepreciation is an expense that arises from the consumption through wear or time of a producedphysical or intangible asset. This expense is classified as a ‘transaction’ and so reduces the ‘net resultfrom transaction’.Employee Benefits ExpensesEmployee benefits expenses include all costs related to employment including wages and salaries,leave entitlements, redundancy payments and superannuation contributions.Financial AssetA financial asset is any asset that is cash or a cash equivalent.Financial InstrumentA financial instrument is any contract that gives rise to a financial asset of one entity and a liabilityor equity instrument of another entity. Financial assets or liabilities that are not contractual (suchas statutory receivables or payables that arise as a result of statutory requirements imposed bygovernments) are not financial instruments.Financial LiabilityA financial liability is any liability that is:(a)(b)A contractual obligation:i. To deliver cash or another financial asset to another entity; orii. To exchange financial assets or liabilities with another entity under conditions thatare potentially unfavourable to the entity; orA contract that will or may be settled in the entity’s own equity instruments and is:i. A non-derivative for which the entity is or may be obliged to deliver a variablenumber of the entity’s own equity instruments; orii. A derivative that will or may be settled other than by the exchange of a fixedamount of cash or another financial asset for a fixed number of the entity’sown equity instruments. For this purpose the entity’s own equity instruments do notinclude instruments that are themselves contracts for the future receipt or deliveryof the entity’s own equity instruments.Financial StatementsDepending on the context of the sentence where the term ‘financial statements’ is used, it mayinclude only the main financial statements (i.e. comprehensive operating statement, balance sheet,cash flow statements and statement of changes in equity); or it may also be used to replace the oldterm ‘financial report’ under the revised AASB 101 (September 2007), which means it may include themain financial statements and the notes.Australian Grand Prix Corporation Annual Report 2011 65

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011GrantsGrants can either be operating or capital in nature. Grants can be paid as general purpose grantswhich refer to grants that are not subject to conditions regarding their use. Alternatively, they maybe paid as specific purpose grants which are paid for a particular purpose and/or have conditionsattached regarding their use.Intangible AssetsIntangible assets represent identifiable non-monetary assets without physical substance.Interest IncomeInterest revenue includes interest received on bank term deposits, interest from investments andother interest received.Net Acquisition of Non-Financial Assets (from transactions)Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financialassets less depreciation plus changes in inventories and other movements in non-financial assets.Includes only those increases or decreases in non-financial assets resulting from transactions andtherefore excludes write-offs, impairment write-downs and revaluations.Net ResultNet result is a measure of financial performance of the operations for the period. It is the net result ofitems of revenue, gains and expenses (including losses) recognised for the period, excluding thosethat are classified as ‘other non-owner changes in equity’.Net Result from transactions / Net Operating BalanceNet result from transactions or net operating balance is a key fiscal aggregate and is revenue fromtransactions minus expenses from transactions. It is a summary measure of the ongoing sustainabilityof operations. It excludes gains and losses resulting from changes in price levels and other changes inthe volume of assets. It is the component of the change in net worth that is due to transactions andcan be attributed directly to government policies.Net WorthAssets less liabilities, which is an economic measure of wealth.Non-Financial AssetsNon-financial assets are all assets that are not ‘financial assets’.Other Economic FlowsOther economic flows are changes in the volume or value of an asset or liability that do not resultfrom transactions. It includes gains and losses from disposals, revaluations and impairments of noncurrentphysical and intangible assets. In simple terms, other economic flows are changes arisingfrom market re-measurements.PayablesIncludes short and long term trade debt and accounts payable, grants and interest payable.66Australian Grand Prix Corporation Annual Report 2011

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011ReceivablesIncludes short and long term trade credit and accounts receivable, grants, taxes and interestreceivable.Sales of Goods and ServicesRefers to revenue from the direct provision of goods and services and includes fees and chargesfor services rendered, sales of goods and services and fees from regulatory services. User chargesincludes sale of goods and services revenue.Supplies and ServicesSupplies and services generally represent cost of goods sold and the day-to-day running costs,including maintenance costs, incurred in the normal operations of the Corporation.TransactionsTransactions are those economic flows that are considered to arise as a result of policy decisions,usually an interaction between two entities by mutual agreement. They also include flows within anentity such as depreciation where the owner is simultaneously acting as the owner of the depreciatingasset and as the consumer of the service provided by the asset. Taxation is regarded as mutuallyagreed interactions between the government and taxpayers. Transactions can be in kind (e.g.assets provided/given free of charge or for nominal consideration) or where the final consideration iscash. In simple terms, transactions arise from the policy decisions of the government.Australian Grand Prix Corporation Annual Report 2011 67

Statement of the Members of the Board and OfficersIn the opinion of the Members of the Board, the Chief Executive Officer and the Chief FinanceOfficer of the Australian Grand Prix Corporation:(a)the financial statements present fairly the financial transactions during the financial yearand the financial position at the end of the year;(b)the financial statements are drawn up in accordance with Standing Direction 4.2 of theFinancial Management Act 1994, applicable Financial Reporting Directions, AustralianAccounting Standards and other mandatory professional reporting requirements; and(c)there are no circumstances at the date of signing which would render any particulars inthe financial statements to be misleading or inaccurate.Dated at Melbourne on 2 September 2011Signed in accordance with a resolution of the Members of the Board.Ronald J Walker AC CBEChairmanAndrew WestacottChief Executive OfficerPeter HoughChief Finance Officer68Australian Grand Prix Corporation Annual Report 2011

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70Australian Grand Prix Corporation Annual Report 2011

The Australian Grand Prix Corporation proudly acknowledges its sponsors andofficial suppliers of the 2011 Formula 1 Qantas Australian Grand PrixAustralian Grand Prix Corporation Annual Report 2011 71

The Australian Grand Prix Corporation proudly acknowledges its sponsors andofficial suppliers of the 2010 IVECO Australian Motorcycle Grand Prix72Australian Grand Prix Corporation Annual Report 2011

Australian Grand Prix Corporation220 Albert Road, South Melbourne 3205, Victoria, Australia