Annual Report - Sydney Opera House

Sydney Opera House Annual Report FY18About Us AwardsAwardsSydney Opera House Annual Report FY182018 National Trust Heritage AwardThe fourth edition of the Opera House’s ConservationManagement Plan was published in October 2017, titledRespecting the Vision: Sydney Opera House – A ConservationManagement Plan. In May 2018, the plan won a NationalTrust Heritage Award in the Resources and Publicationscategory. Prepared by heritage architect and consultantAlan Croker and his team, the extensively illustrated planincorporates new conservation management tools to addressthe complexity of this World Heritage-listed site, to guidefuture management, conservation and change, and ensurea responsible balance with its use as Australia's pre-eminentperforming arts centre.Helpmann Awards 2018Sydney Opera House Presents productions earned twonominations and our Resident Companies 32 nominationsand 22 wins. Bangarra Dance Theatre won seven awards,including six for Bennelong, including Best Dance Productionand Best Choreography.Best Corporate Social Media Team of the Year 2018The Opera House Marketing team was awarded this honourat the Social Media Marketing Institute's Social MediaMarketing Awards.Australasian Annual Reporting AwardSilver Australasian Annual Reporting Award 2018. Dark Emu. Bangarra Dance Theatre. Photo by Daniel Boud2021

Sydney Opera House Annual Report FY18Chairman’sMessageSydney Opera House Annual Report FY18At its opening on 20 October 1973, QueenElizabeth II noted the Sydney Opera Househad captured the imagination of the world.We extend our thanks to everyone involved,including principal building contractor LaingO’Rourke and the theatre’s Resident Companies,The Australian Ballet and Opera Australia, fortheir collaboration in the planning and deliveryof these building works.Forty-five years later, it continues to grow asa cultural, social and economic asset.A new report by global professional servicesprovider Deloitte* estimates the Opera House’siconic value at 6.2 billion, up from 4.6 billionin 2013. The venue’s contribution to the nationaleconomy has increased by 55% over the sameperiod, to 1.2 billion a year.The JST upgrade was the first part of a 273million program of Renewal works, supportedby a 228 million investment from the NSWGovernment. The final works in this package, anew public lift and level passageway connectingthe southern foyer with all levels of the northernfoyer, will be opened November 2018.Already Australia’s premier tourist attraction,visits to the Opera House continue to increase,up 33% on 2013 to 10.9 million a year.In June 2018, the NSW Government committeda further 36.2 million to upgrade OperaHouse security systems and replace temporarysecurity infrastructure at the Macquarie Streetand East Circular Quay entry points.This year marked a milestone in the Renewalprogram, with significant upgrades to theTheatre (JST) completed on time and onbudget. These works replaced equipment atthe end of its operational life and upgradedacoustics, accessibility, the orchestra pit andrehearsal facilities to improve the experiencefor artists and audiences.It has been pleasing to see audiences enjoyingthe upgraded venue and companies exploringthe resulting artistic possibilities, such as theinnovative digital sets for Opera Australia’s July2018 production of Aida.22* Revaluing Our Icon: Midpoint in the Sydney Opera House’s Decade of Renewal by Deloitte.About Us Chairman’s MessageAbout Us Chairman’s MessageThese figures are particularly encouraging aswe mark the midpoint of the Opera House’sDecade of Renewal, launched in 2013 topreserve the building’s legacy and ensure itrises to 21st-century challenges that did notexist when it was conceived.We have now commenced construction ona new function centre to open in early 2019,while preparation continues for plannedupgrades to the Concert Hall, entry and foyers,as well as the new Creative Learning Centre.The Concert Hall works will involve closing thevenue for up to two years from early 2020, soa focus of the past year has been ensuring thiswork can proceed with minimal disruption tothe Opera House and our affected ResidentCompanies. We will be guided in this by thesuccessful upgrade to the JST and the newfourth edition of our Conservation ManagementPlan, prepared by heritage architect AlanCroker and his team, which was published inOctober 2017 and received a National TrustHeritage Award.Our staged approach has enabled the OperaHouse to remain operational as these worksproceed. We are pleased to have broadenedengagement with audiences and visitors,on site and online, throughout this process.The Opera House isestimated to havean iconic value of 6.2 billion.One of the world’s busiest performing artscentres, the Opera House staged almost 1,800events and performances over the year to anaudience of more than 1.2 million people. Thisyear we were pleased to launch the 2018-21Artistic Strategy, which cites as our artisticpurpose ‘to be unmissable’.Highlights have included the 10th Vivid LIVEfestival of contemporary music, attended bya record 44,000 people; Badu Gili, the dailylighting of the Opera House’s eastern Bennelongsails to celebrate First Nations culture, viewedby 760,000 people on site and online; andBangarra’s production of Bennelong, about theEora leader who gave his name to Bennelong23

Sydney Opera House Annual Report FY18Sydney Opera House Annual Report FY18Point, which won six Helpmann awards.ThanksThe number of people taking a guided tour ofthe building has increased 80% over the pastfive years to 564,000, with 52% taking anAsian-language tour.The Trustees thank the NSW Government forthe operational endowment and maintenanceand capital grants it provides. We are gratefulto the Hon. Don Harwin MLC, Minister forthe Arts, for his direction of the Government’scultural vision.We have significantly grown our digitalaudiences. The Opera House has more than1.8 million social media followers and is oneof Australia’s most engaged Facebook brands.Online video views increased 34% duringthe year to 30 million and have tripled overthe past two years. The Lighting of the Sails(Metamathemagical) live stream receivedmore than 2.8 million views. An Opera Houserecording of Hannah Gadsby’s show Nanettewas distributed in more than 190 countriesthrough Netflix.We value the significant contribution made byour donors and corporate partners, who enablemany projects and help us provide a diverserange of experiences for audiences and visitors.Finally, we applaud the Opera House’sdedicated staff, who continue to demonstratetheir commitment to our mission, and to therenewal of the building, the organisation andthe breadth of experience it offers.The Opera House also participated in Sydney’sMardi Gras parade for the first time, withsupport from Major Partner EnergyAustralia.Governance and BoardAbout Us Chairman’s MessageI thank my fellow Trustees for their participationand CEO Ms Louise Herron and themanagement team for their leadership.New Rehearsal Room. The Australian Ballet. Photo by Daniel BoudNicholas MooreChairmanOn behalf of the Trust, I would like toacknowledge the three Trustees who completedtheir terms this year – the Hon. Helen Coonan,Mr Peter Mason AM and Ms CatherinePowell, all of whom have made an importantcontribution to the Opera House.We have welcomed four new Trustees –Ms Anne Dunn, Mr Michael Ebeid AM,Ms Kathryn Greiner AO and Ms Kylie Rampa,while Ms Deborah Mailman AM and I werereappointed for a further term. (See page 89for more information on the Trustees).25

Sydney Opera House Annual Report FY18CEO’sMessageSydney Opera House Annual Report FY18The Sydney Opera House exists because a fewbrave people dared to think differently. Theymade the impossible possible, and inspired anation. And so we stand as testament to, and thebeneficiaries of, the power of dreaming in public,and the transformative potential of art and ideas.PeopleBuilding–Living our values: Provide the leadership,environment and tools our staff need to thriveand plan for the long-term sustainability of theOpera House and its operations.––Safety and security: Safeguard the health,safety and wellbeing of our staff andeveryone on site through appropriate riskmanagement, infrastructure, systems andresourcing. This includes the injury- andincident-free delivery of our capital works.Capital works: Complete all buildingrenewal projects within the availablebudget, including the Concert Hall andentry upgrades, and the new functionand creative learning centres. Our aim isto optimise artistic, audience and visitoramenity, accessibility, safety and securityimprovements, while minimising disruption.–Conservation and maintenance: Takeresponsibility for conserving the OperaHouse for current and future generations,extending the life of the building through abest-practice asset maintenance program.–Sustainability: Continue to be a leader insustainability, including by achieving andmaintaining a six-star green-star ratingand developing a strategy to becomecarbon-positive.Five years on, nearing the halfway point in thatdecade, we reviewed progress against the goalsof our 2013 Enterprise Strategy. The resultsof that review are set out on the opposite page,divided into three streams: the many people,inside and outside the organisation, involvedin bringing the Opera House to life;the experiences we offer; and the building.–At the same time, in preparation for thesecond half of the Decade of Renewal, wehave refreshed our strategic goals, takinginto account significant changes in the worldaround us. These include changes in artistictaste, technology and the demographics of thecommunity we serve, as well as increases insecurity concerns and building costs.–A defining project will be renewing theConcert Hall, which will close for up to twoyears from early 2020 while we undertakesignificant artistic, acoustic and accessibilityimprovements in our largest internal venue.At the same time, we will expand the spectrumof art and experiences we offer, fosteringnew and diverse art forms, showing them attheir best and encouraging participation andcreativity more broadly.The resulting Sydney Opera House Strategy2018-23 outlines what we aim to achieve byour 50th anniversary in the same three streams.In summary:26Relationships: Deepen and enrich ourrelationships with the community and ourmany stakeholders, including ResidentCompanies and artists, government, donors,partners and the architecture, design,heritage and engineering professions.ExperiencesAbout Us CEO’s MessageAbout Us CEO’s MessageAt its 40th anniversary in 2013, the Opera Houseembarked on a Decade of Renewal to ensurethis remarkable building continues to inspiregenerations of artists, audiences and visitors.Audiences and visitors: Broaden theOpera House’s reach, across Australiaand globally, through: Art: Aiming for excellence in everythingwe do – with artists, colleagues andaudiences – to realise our mandate forcreativity, engagement and entertainment. Visitor experience: Making it moreappealing, on site and online, foreveryone to explore the full rangeof Opera House experiences – itshistory, performances, events, barsand restaurants, tours and retail –and delivering a consistently excellentcustomer experience. Digital engagement: Investingstrategically in digital capability,technology and creative content toshare and amplify what we offer,reaching new audiences and drivingdeeper engagement.The Sydney OperaHouse exists becausea few brave peopledared to thinkdifferently. They madethe impossible possible,and inspired a nation.I would like to thank our Trustees, staff and themany others who use, visit and love the OperaHouse for their input and vision in refreshing ourstrategy and look forward to working togetherto implement it over the next five years.27

Our first seasonof Unwrappedwas attended by3,200 people.Sydney Opera House Annual Report FY18Sydney Opera House Annual Report FY18I would like to add to the Chairman’s acknowledgement of severalimportant moments from the year:Performing ArtsAbout Us CEO’s MessageOur Artistic Strategy 2018-21, developed by Executive Director,Performing Arts Kate Dundas, includes a new Artistic and SectorDevelopment Program aimed at supporting independent Australianartists, small companies and producers. Our first season of Unwrapped,a curated series of contemporary performance works rarely seenbeyond their premiere seasons, was attended by 3,200 people.Further details of FY18 performances and achievements, including byour Resident Companies and hirers, is provided from page 37.Two Jews Walk into a Theatre, Unwrapped. Photo by Anna Kucera28 A Faint Existence, Unwrapped. Photo by Daniel Boud29

Sydney Opera House Annual Report FY18Sydney Opera House Annual Report FY18Visitor ExperienceThere were 2.5 milliontransactions at our foodand beverage outlets.In Food and Beverage, the Trippas White Groupexpanded its role, being appointed to operatethe Opera House’s theatre bars, cateringservices and new function centre (which willopen in early 2019). They complement thedining experiences offered by leading chefsPeter Gilmore and Robert Cockerill(Bennelong) and Matt Moran (Opera Bar).We also welcomed chef Michael Moore,who took over the reins at Opera Kitchenand has earned glowing reviews. I would liketo thank the team from Events by Aria whowere our functions caterer from 2006 andtook on management of the Concert Hall andJST theatre bars in April 2016. Overall, therewere 2.5 million transactions at our food andCoburn's Curtain of the Sun Tapestry. Photo by Jacquie Manningbeverage outlets, an average of more than6,800 a day. Further Visitor Experienceportfolio highlights are on pages 58-61.About Us CEO’s MessageHeritageIt was a very significant year for heritage, withthe publication of a new (fourth) edition of theOpera House’s Conservation ManagementPlan to help us manage change as the buildingadapts to current and future needs. I would liketo thank everyone involved in this complex andmomentous undertaking, particularly authorAlan Croker, our Conservation Council, themembers of our expert peer review panel andthe broader heritage community.9 April 2018 marked the centenary of JørnUtzon’s birth. In his honour, we organised aspecial program of events as part of theOpera House’s 45th anniversary celebrationsin October 2018 (page 64).Opera Bar. Photo by Hamilton Lund30We are exploring options for an appropriateon site acknowledgement of the role playedby Peter Hall, the architect who completedthe building after Jørn Utzon’s departure.We have also made significant progress towardspublic exhibition of two original and marvellousOpera House artworks, John Coburn’s Curtainof the Sun and Curtain of the Moon tapestries,which served as the house curtains in the JoanSutherland Theatre (JST) and Drama Theatreuntil the 1980s.Partners and SupportersThanks to all of our corporate partnersand donors for their valued support andengagement, and for enabling so manythings that would not otherwise be possible.Principal Partner Samsung’s innovativeand immersive audio-visual installationThe Night. Reimagined. attracted 133,000visitors during Vivid. Our donors enablednumerous initiatives aligned to the OperaHouse’s strategy and objectives, includingsupport for classical, contemporary and FirstNations performances and experiences, andenabling access for audiences living withdisability and experiencing disadvantage.31

Sydney Opera House Annual Report FY18Team and CapabilityFinancial PerformanceThanksLast year, we made extensive preparations forthe seven-month closure of the JST with our staffand the Media, Entertainment and Arts Alliance.We also focused on our internal communicationsand leadership capabilities. These actionshelped the Opera House achieve a strong staffengagement score of 78% in the June 2018employee survey, up from 74% in FY17.As noted on page 95, the Opera House’s incomecomprises self-generated revenue from multiplesources and grants from the NSW Government,distributed through the Department of Planningand Environment. Government grants fluctuatesignificantly, based on size and timing. The FY18group result comprises:As always, I would like to thank our Trustees, led by ChairmanNicholas Moore, for their support and wise counsel, as well asthe members of our Eminent Architects Panel and ConservationCouncil. Thanks also to the NSW Government, the Ministerfor the Arts, the Hon. Don Harwin MLC, and our colleagues inthe Department of Planning and Environment, and the NSWCultural Institutions.–A loss from general operations of 3.5million, 1.2 million ahead of budget; and–A gain of 76.1 million from buildingmaintenance and capital grants, includingfor the JST Renewal program and futuresecurity infrastructure projects.All of our achievements depend on the hard work and inspiringcommitment of the Opera House’s staff. It is an honour towork with them. I would like to give particular thanks to threeexecutives who departed this year after making outstandingcontributions to the organisation: Deputy CEO – Operations& General Counsel Michelle Dixon; Director, Engagement &Development Brook Turner; and Director, People & CultureFatima Abbas.Gross box officerevenue increased by 2.4m since FY17, dueto a strong result fromcontemporary musicForecourt concerts.Self-generated revenue totalled 104.5 millionin FY18. This represented 89% of operatingrevenue and was only 1.8% lower than in FY17,despite the closure of the JST in the first half ofFY18. Key drivers included:–Continued growth in tours revenue to 14.4m, up 8% on FY17;–Food and beverage revenue of 12.2m, adecrease of 0.8m on FY17, with the JSTclosure leading to lower overall patronactivity in the first half of FY18;–Increased gross box office revenue from theOpera House’s own programming of 26.2million, 2.4 million higher than in FY17, dueto a strong result from contemporary musicForecourt concerts;–Venue hire revenue of 8.0 million, 1.6million lower than in FY17, driven by the JSTclosure and variations in Resident Companyand presenting partner progra

Opera House. 1966 Jørn Utzon resigns. 2002 Utzon Design Principles published. 1954 The Hon. JJ Cahill, Premier of NSW, convenes a conference to discuss the establishment of an opera house in Sydney. 1957 Jørn Utzon wins Sydney Opera House design competition. 1959 Work begins on Stage 1 of the Sydney Opera House – the foundations. 06