Annual Report 2008 - Linking Business to Music Makers Annual Report 20… · 8 Management Report ... platinum and gold albums for EMI and SONY. ... music industry starters, utilising

Phonographic Performance Company of Australia

Annual Report 2008

HighlightsPPCA revenues, distributions, licences and registered artists and groups continued to increase in 2007-2008, maintaining our unbroken succession of improvements since 1990.

• Incomeup19.23%to$20,043,667

• Distributionsurplusup14.46%to$14,497,874

• Publicperformancelicencesup7.64%to50,974

ThePPCATrustapproved22applicationsforfunding:

• 16relatedtofurthereducationandresearch

• 6tofestivals,livemusicandlocalartists

2 Chairman’s Report

5 The Company

6 Board Members

8 Management Report

10 Communications

12 Performers’ Trust Foundation

13 2008 Most Broadcast Recordings and Artists

14 Top 100 Most Broadcast Recordings

16 50 Most Broadcast Artists

17 Most Broadcast Artists 2005–2007

18 Special Purpose Financial Report

39 Performers’ Trust Balance Sheet

40 Tariff Categories

Contents

2

IntroductionOhbehalfofthePPCABoard,it’swithgreatsatisfactionthatIreportonanothersuccessfulyearforPPCAandhighlightsomeofthisyear’smilestonesandachievements.Firstandforemost,I’dliketonotethatthispastyearwasPPCA’s18thconsecutiveyearofgrowth.

Details on finances IncomefortheyearendingJune2008wasatarecordhighofjustover$20m,representinganincreaseofaround19%onthepreviousfinancialyear.Thisincreasewasdrivenprincipallybyincreasedpublicperformancerevenues,resultingfromtariffratereviewsandthesupportingenforcementprogram.Attheendoftheyear,activelicencesstoodatalmost51,000,representingan8%increaseonJune2007.

Thedistributablesurplus,at$14.5m,representsa14.5%increaseonthepreviousyearandwillbedistributedtolabelsandregisteredAustralianartistsduringDecember2008.

NightclubsInthe2007reportwenotedtheCopyrightTribunaldecisioninrelationtothenightclubanddancepartytariffs.TheAustralianHotelsAssociation(AHA)subsequentlyappealedthatdecision.InMarch2008,theFederalCourtheardanddismissedtheirappealtooverturntheTribunal’sNovember2007order,therebyconfirmingtheoriginalruling.Thiswillseeartistsandlabelsfinallygettingabetterdealfortheirworkasthenightclubratesphaseupto$1.05perperson,pernightoverthecomingyears. FitnessOurreviewofthefitnessclasstariff,initiatedin2006,hasbeenthesubjectofmucheffortover

thepastyear.Currently,fitnesscentrespayamere$0.96perclassforuseofrecordedmusicwhichPPCAbelievesgreatlyundervaluesthecontributionmusicmakestotheselucrativebusinesses.Afterextensiveindependenteconomicresearch,PPCAhasproposedanewrateof$4.54permemberpermonthor$0.99percasualvisit.

TheCopyrightTribunalwillconsidertheevidencefrombothPPCAandthefitnessindustryinahearingcurrentlyscheduledforMarch2009.Wehopetobeabletoreporttheresultofthatdeterminationinournextreport.

EnforcementToprotecttheinterestsofourartistsandlabels,andtokeepthefaithwithourcompliantlicenseeswhoacknowledgetheirstatutoryobligations,PPCAoperatesanation-wideinspectionandenforcementprogram.PPCAtakesactionwhenbusinessowners,despitePPCA’srepeatedefforts,refusetotakeoutthenecessarylicencestoplayrecordedmusic.SincethenewnightclubanddancepartytariffscameintoplaceinDecember,severalnightclubshavefailedtopaytheirnewfees.PPCAispursuingthesebusinessesandanumberhavehadtheirlicencesterminatedandsubsequentlyundergoneinspectionforinfringement.OnesuchVictoriannightclubhasagreedtopayalllicencefeesowedandaccrued,plusadditionalcharges.Underthisnewenforcementinitiative,PPCAhascollectedoutstandingnightclubtarifflicencefeesfrommorethan50venues.

Sponsorships by PPCAPPCAcontinuestosponsormusiccausesincludingSupportActLimited,TheSongRoomandTheAustralianMusicPrize(AMP).

InFebruary,PPCApresentedSydneybandTheMessHallwiththeprizeof$25,000atthe2007AMP.Wehavesweetenedthepotforthe2008/09AMP,byincreasingtheprizecontributionto$30,000.PPCAhasalsobecomeinvolvedinanothergrassrootsmusiccompetitionthisyear–theNationalCampusBandCompetition(NCBC).AsaleadsponsoroftheNCBC,PPCAhasthechancetoreachyoungartistsbeforethey‘makeit’,whilepromotingthePPCAbrandintheindustry.

ACCC/Arts LawPPCA’sACCCreauthorisationprocesswassuccessfullyconcludedinSeptember2007.Verypleasingly,notonlywerePPCA’straditionalactivitiesre-authorised,butalsotheauthorisationwasextendedtoarangeofnewandadditionalactivitiesincludingmusicvideolicensing,contentsimulcastingandwebcasting.Thisre-authorisationofPPCA’sactivitieshasrequiredsomeadditionalworkforlicensorswhoarenowrequiredtodevelopandmakeavailabletheirownpolicyondirectlicensing.Tomakethiseasierforlicensors,PPCAhaspartneredwithTheArtsLawCentreofAustralia(ArtsLaw),anindependentlegalbodythatprovideslegaladviceandservicestotheartscommunity.ArtsLawhasalreadyhelpedmorethan20licensorspreparetheirowndirectlicensingpolicies.

New Licence SchemesDuring2007/08,PPCAdevelopedsomenewlicensingschemestomeetthechangingneedsofthemarket.ThisyearPPCAofferedforthefirsttime,onaninterimbasisfora12-monthperiod,blanketnon-interactivewebcastinglicences.Welookforwardtorollingtheselicencesoutacrossthesector,andgainingabetterunderstandingofthisnewmarket.

Chairman’sReport

Thisyearalsosawthelaunchofspecificmusicvideobroadcastlicenceschemesforbothfree-to-airandsubscriptiontelevisionservices.Theselicences,whichhavebeenofferedtoallfree-to-airandpayTVoperatorsviatheirrespectiveindustryassociations,provideanoptionforthosetelecasterstoobtaina‘one-stop’licenceforthebroadcastofmusicvideos.Whilstnonehaveyetavailedthemselvesofthisopportunity,wearepleasedtohavebeenabletoofferthisserviceandlookforwardtoincreasedinterestfromthesector.

1% CapFollowingthechangeoffederalgovernmentinNovember2007,PPCArecommenceditslobbyingfortheremovaloftheanomalous1%caponradiobroadcastlicencefees.PPCA’ssubmissionshavereceivedagoodhearingfromthegovernmentandwehopetoseesubstantialprogressonthislongstandingissueduringthe08/09financialyear.

PeopleAnniversariesI’mpleasedtonotethat,duringthecourseoftheyear,PPCA’sLicensingManager,MaxineChisholm,reachedthetwenty-yearservicemilestone–thefirstPPCAemployeetodoso.MaxhasworkedtirelesslytoimprovePPCApublicperformancelicencepenetrationandincreaselicencerevenue,andwecongratulateheronthisachievement.

Licensor RepresentativeEarlyin2008,theBoardreviewedtheprocessforelectionandappointmentoftheLicensorRepresentativetotheBoard.Itresolvedtomovetheprocesstoamoresuitabletimeoftheyear.ThetermofthisBoardpositionwillnowbeforafinancialyear(formerlycalendar),withtheelectionprocessoccurringthroughoutMarch–Mayeachyear.Inordertotransitiontothenewtimetable,SebastianChase’stermhasbeenextendedto30June2009,andwethankhimforhisco-operationineffectingthischange.

ConclusionFinally,IwouldliketoextendmythanksandcongratulationstoboththeBoardandstaffofPPCAfortheireffortsoverthepastverysuccessfulyear.Inparticular,IwouldliketoacknowledgetheenormouscontributionofoutgoingChairJohnO’Donnell,whohaspresidedoveraperiodofunprecedentedgrowthintheorganisation,andrepeatedlyfocusedonachievingequitablereturnfortheuseofourveryvaluablerepertoire.

George AshPPCAChairmanNovember6,2008

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4

Summary

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Public Performance Licences

5000

5200 99

00 13,100 16,050

18,726

21,421 26,965 30,285

32,961

33,290

34,451

35,496

36,469

39,540 42,613 47,356

0.487

0.729

1.045

1.280

1.811

2.512

3.476

4.013

4.073

4.215

5.846

7.215 8.127

8.827 10.016

10.329

12.667

1.616

1.806

2.204

2.621

3.185

4.110 5.462

5.963

6.336

6.618 8.419

9.897

11.183

11.934 13.367

14.617 16

.812

20.044

Gross Revenue (Millions)

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Distribution (Millions)

14.498

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

50,974

Executive Secretariat

TheCompanyRegistered Office

Level4,19HarrisStreet,Pyrmont,NSW2009A.C.N000680704A.B.N43000680704

BankersCommonwealthBankofAustralia

SolicitorsGilbert&Tobin

AuditorsDeloitteToucheTohmatsu

Directors November 2008

George Ash

Sebastian Chase

Paul Christie

Bill Cullen

Denis Handlin, AM

Belinda Morrison

Mark Poston

Ed St John

Stephen PeachChiefExecutiveOfficer

Lynne SmallManager-Finance,Operations&Administration

Maxine ChisholmLicensingManager

Linda CourtneyDistributionManager

Stephen ConwayManager-BusinessTechnologies

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George AshPPCACHAIRMAN

GeorgeAshbecameamemberofthePPCABoardinAugust2003.GeorgeistheManagingDirectorofUniversalMusicAustralia(UMA),adivisionoftheUniversalMusicGroup.PriortoGeorge’scurrentpositionwithUniversalMusicAustralia,heheldpositionsasManagingDirectoratUniversalMusicNZ,ManagingDirectoratMCAGeffenNZandheldkeymanagementrolesatBMGNZ.GeorgehasalsoheldrolesinPolygramManufacturingandintheretailsector.

George’spassionforthemusicindustrybeganasamusicianandhasspanned25yearsincludingholdingavarietyofrolesinkeyindustrybodieswithintheNewZealandIndustrybeforerelocatingtoAustraliainhiscurrentrolein2001.

Paul ChristiePPCABOARDMEMBER–ARTISTREPRESENTATIVE

Paulisabassplayingmusician,currentlyperformingwithMondoRockandROCKHOUSE.Heconceived,managedandperformedinThePartyBoys,attainingrecordconcertticketsalesanda#1SinglealongwithplatinumandgoldalbumsforEMIandSONY.

Hehaspublishedtwo‘howto’booksformusicindustrystarters,utilisingthesetextsascurriculumforhistenureaslecturerattheAustralianInstituteofMusic.PaulhasalsoconsultedwiththeNSWMinistryforTheArts

oncontemporarymusiceducation,conductingseveralhighlysuccessfulseminarsfortheMinistryoverathree-yearperiod.

PaulhasexperienceandunderstandingofinformationtechnologiesandhaslivedandworkedinNewYorkfrom1995-1997,infilm,andLosAngelesinmusic.Heisapassionatemusicloverandstaunchsupporterofmusiciansandtheirrightstobroadbasedincomes.HeisamemberofAPRA,PPCAandaretiredmemberoftheAMMF.HeisalsoanactivememberofHarbourKeeperswww.harbourkeepers.org.auwhichrunsarangeofactivitiestoprotectandrestoreSydneyHarbourtoincludebushregeneration,cleanupsandfishsurveys.

Bill CullenPPCABOARDMEMBER–MANAGERREPRESENTATIVE

BillbecameamemberofthePPCABoardin2004,asthemanagerrepresentative.

BillistheManagingDirectorofOneLouderEntertainment,themanagementhometoPaulKelly,EndOfFashion,SarahBlaskoandTheDrones.Hehasbeeninvolvedinthemusicbusinesssinceleavingschool,anddidalongstretchworkingwithGrantThomasManagement,workingwithactssuchasCrowdedHouseandTheRockmelons.Afive-yearstintinLondonfollowed,whereheworkedwiththelegendaryPeteJenner(managerofPinkFloyd,TheClash,BillyBraggetc.),beforegoingontoco-manageNewZealandactOMC(HowBizarre)whowentontoanumberone

singleandgoldalbumintheUS.HereturnedtoAustraliain1999,andestablishedOneLouder,andhassincehadgoldplussuccesswithAlexLloyd,George,Amiel,SarahBlasko,EndOfFashionandPaulKelly.

Denis Handlin, AMPPCABOARDMEMBER

DenisistheChairmanandChiefExecutiveOfficerofSonyMusicEntertainmentAustraliaandNewZealand,havingpreviouslyheldanumberofseniorpositionswithinSonyMusicEntertainmentAustraliasince1970,includingtheCEOrolesince1984.

Denishasadeepinvolvementinthemusicindustry.HehasservedonthecommitteesofseveralindustryassociationsandhasheldvariouspositionsincludingChairmanofthePhonographicPerformanceCompanyofAustralia,ViceChairmanoftheAustralianRecordingIndustryAssociation(ARIA)andChairmanoftheARIAChart&MarketingCommittee.DenishasbeenaPPCAandARIABoardmembersince1984,andheldtheARIAChairmanpositionfor10consecutiveyearsfrom1999-2008.

In2005,DeniswasnamedaMember(AM)oftheOrderofAustraliaintheGeneralDivisionforhisservicetothemusicindustry,particularlythroughthepromotionofAustralianmusiciansandhiscontributionstoprofessionalorganisations,andtothecommunitythroughfundraisingforcharitableorganisations.Denisisaco-founderandaGovernoroftheSony

BoardMembersasatNovember2008

Foundationwhichhasraised$10millionintenyearsforcharitablecausessupportingAustralianyouth.HeisalsoPatronoftheYouthofftheStreetsscholarshipprogram.

Lindy MorrisonPPCABOARDMEMBER–ARTISTREPRESENTATIVE

LindyMorrisonhasbeenamemberofthePPCABoard,asarepresentativeofregisteredAustralianrecordingartists,since1994.Lindytouredtheworldasadrummer,withZero,TheGo-BetweensandCleopatraWong,from1978until1992.ShepresentlyplaysinTheRainySeason.Since1992,LindyhasworkedaroundAustraliaasthemusicaldirectororperformerinshows,paradesandfestivals,andhasleddrumandmusicworkshopswithmanydiverseandvariedcommunitygroups.ShehasbeenthemusicaldirectoroftheJunctionHouseBand,agroupofmusicianswithintellectualdisabilities,since1993.ShealsoteachesinMusicBusinesscoursesatbothUltimoandGymeaTAFEs.

LindyistheNationalCoordinatorforSupportActLtd–thebenevolentsocietyformusiciansandworkersinthemusicindustry.

Ed St JohnPPCABOARDMEMBER

EdStJohnbecameamemberofthePPCABoardinJuly2001.EdisthePresident&CEOofWarnerMusicAustralasia,adivisionoftheWarnerMusicGroup.PriortojoiningWarner

inFebruary2004,EdwastheManagingDirectorofBMGAustraliaforfouryears,havingpreviouslyheldanumberofseniorpositionswithinthecompanysincejoiningin1998.EdhasalsoheldthepositionofDirectorofMarketingatColumbiaRecords,adivisionofSonyMusicAustralia.

CurrentlytheChairmanoftheAustralianRecordingIndustryAssociation(ARIA)BoardofDirectors,Edhasalongassociationwiththemusicindustry.Hehasworkedasatelevisionwriterandproducer,specialisinginmusicandentertainment-focusedprogrammingandasafreelancemusicwriterandcontributortoseveralkeybooksonAustralianmusic.

Sebastian Chase PPCABOARDMEMBER–LICENSORREPRESENTATIVE

Sebastian,thenewestadditiontotheboard,isthefounderofMGMDistribution,nowAustralia’smostdiversedistributorofAustralianmusic,workingwithmanyindieartistsincludingJohnButler,TheWaifs,andTheBeautifulGirls.HehasplayedanintegralroleintheevolutionofAustralianmusic,startinghiscareerbymanaginglegendarybandssuchasRoseTattoo,DragonandtheearlydaysofColdChisel.

Inthe80s,SebastianestablishedChaseRecords,apioneeratofferingmajordistribution(viaCBS,nowSonyBMG)tootherindependentlabelssuchasSurvivalRecords.Fromthere,heestablishedrooArtRecordstogetherwithChrisMurphy&JustinVanStom,

leavinginthe90stobecomeapartnerinPhantomRecords.HelaterwentontofoundtheBlackYaklabelinpartnershipwithTimFreidmanfromTheWhitlams.

SebastianhasbecomeakeyadvisortosomeofAustralia’smosticonictalentsandhisDIYmodelischangingthewayindependentartistsbringtheirmusictothefans.

Mark Poston PPCABOARDMEMBER

Mark’spassionismusic-somuchsoit’slikelytobefoundinhisDNAoneday.Hehasworkedinmusicsince1989,inanumberofrolesfromrunningarecordstoretoworkinginvariousrolesatlabelsincludingSonyandBMG-workingwithmanyAustralianandinternationalartistsandmanagers.Bythetimeheturned30hewasheadofCapitolRecordsatEMIAustraliaworkingwithartistssuchasSilverchair,Coldplay,Jet,KeithUrban,PaulMac,RobbieWilliams,TheLivingEnd,KaseyChambers,JohnWilliamson,TheFinnBrothersandGorillaz.In2005,hewaspromotedtoDirector,GlobalMarketingforEMIbasedinLondon.InJuly2006,MarkwentontobeDirectorofanewEMIUKfrontlinelabelAngelMusicGroup/Charisma.InAugust2008,hereturnedtoAustraliaasChairmanandSeniorVicePresidentofMarketingforEMIAustralasia,basedinSydney.

Heneverwantstobecomecynicalorjaded,andcoulddowith30hoursinthedayinsteadoftheaverage24.

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ManagementReport

Financial Performance2007/08wasanotherrecordyearforPPCA,evidencedonceagainbysubstantialincreasesinbothrevenuesandsurplusavailablefordistributiontoartistandlabelstakeholders.

Duringtheyear,revenueincreasedby19%tojustover$20million.Thekeycontributorswereincreasesinpublicperformancelicencerevenue,drivenbybothgeneralgrowthinlicencepenetrationandmorefavourablelicencefeesfromthenightclubanddancepartysector,followingthesuccessfulconclusionofourapplicationtotheCopyrightTribunal.

Publicperformancelicencenumbersincreasedby8%and,attheendofJune2008,stoodatjustunder51,000Australiawide.Thiscontinuedgrowthisatestamenttothestrongcommitmentofthelicensingteam,whichhascontinuedtocontacthundredsofvenuestoexplainlicensingobligationsinregardtotheuseofmusic.Duringtheperiod,theteamalsovisitedhundredsofoutletsinshoppingandcommercialprecinctsinanefforttofurtherimprovecompliance.Notallvenuesarepreparedtomeettheirobligationsvoluntarily,andsomeinspectionshaveresultedinproceedingsintheFederalMagistrates’court,allofwhichhavebeensuccessfullyconcludedfromPPCA’sperspective.

DistributionItispleasingtonotetheincreaseinthedistributablesurplus,whichwasdistributedtoregisteredartistsandlicensorlabelsinDecember2008.Atjustunder$15million,thetotalavailablefordistributionis14.5%higherthanthepreviousyear,andmorethanthreetimeshigherthanthesurpluspostedin2000.Thishasbeenachievedatthesametimeassubstantialinvestmentsarebeingmadein

securingfutureincomestreams,whicharedescribedfurtherunder‘TariffReviews’.

ThenumberofPPCAlicensorscontinuestoincrease,particularlyasmoreself-releasedartistsbecomeawareofthebenefitsofincludingtheirrepertoireinPPCA’sblanketlicenceschemes.Similarly,thenumberofartistregistrationsundertheArtistDirectDistributionSchemeincreaseseachyear,andweaskthatallPPCAregisteredartistshelpspreadtheword,andletfellowAustralianartistsknowoftheopportunitytoregisterwithPPCAandshareintheannualdistribution.

CommunicationsPPCAcommunicationsactivityforthepastyearcontinuestoworkacrosstwoaudiences:artistsandbusinessowners.Throughadvertising,sponsorshipsandmediarelationsactivity,PPCAhasbeenraisingawarenessoftheorganisationamongthesetwokeyaudiencesdirectly,throughindustryorganisationsandviathemedia.

Forbusinesses,PPCAcontinuestospreadthemessagethatallbusinessesneedtobelicensedtopubliclyplayrecordedmusic.Inaddition,PPCAhasbeenincorporatingmessagesonenforcementtoensurebusinessownersareawarethattherearerepercussionsfornotobtainingalicence.

PPCAalsoboosteditsenforcementcommunicationsbycreatinganenforcementbulletin,entitledPPCA in Action,whichaimstoeducatebusinessownersaboutthevalueofobtainingaPPCAlicence,whileprovidingupdatesonourNationalEnforcementProgram.Thenewsletter,whichisdistributedtobusinessesthatrefusetoacknowledgetheircopyrightlicensingobligations,showcasesPPCA’ssuccessesinpursuingthose

businessesthatunlawfullyplayrecordedmusicwithoutalicence.

Inaddition,PPCAcontinuestoinformartistsoftheirneedtoregisterwithus.PPCAparticipatedintheinauguralS3SongSummitSydney,wherestaffengagedwithartistsone-on-onetoanswertheirquestionsabouttheorganisationandencouragethemtoregister.In2007-2008wealsocontinuedadvertisingtoartistsinindustrypublicationsandalertingartiststotheregistrationcut-offviathemedia.Finally,PPCA’ssponsorshipoftwomusiccompetitions,TheAustralianMusicPrize(AMP)andTheNationalCampusBandCompetition(NCBC),helpedtogrowouridentityamongtheartistcommunitythroughadvertising,mediarelationsanddirectcorrespondencewithparticipatingbands.

PPCAcontinuestodraftanddeliverourlong-standingartistandlicenseenewsletters,On the RecordandIn the Loop.Finally,www.ppca.com.aucontinuestobethehubofallcommunicationsactivityandisregularlyupdatedtoreflectthelatestPPCAnews.Pleaseseethecommunicationssectionformoredetailonthisyear’sactivities.

AuthorisationsAsreportedlastyear,inOctober2007PPCAsuccessfullyobtainedre-authorisationforitsactivitiesfromtheAustralianCompetitionandConsumerCommission(ACCC).

Whilstthere-authorisationwasaverypositivestepforPPCA,whichenabledtheexpansionoflicensingscopeandextendingcoveragetoallfuturelicensors,itdidresultinasignificantamountofadditionaladministrativework–bothforPPCAandindividuallicensors.

AllofPPCA’sstandardinputagreementswithlicensorshadtobeupdatedand,underthenew

Prepared by Stephen Peach and Lynne Small

conditionsoftheauthorisation,alllicensorshavebeenobligedtodevelopandpublishpoliciesondirectlicensing.

Werealisetheimplementationprocessresultedinasignificantincreaseincorrespondence.Wewouldliketotakethisopportunitytothanklicensorsfortheirpatienceduringthisperiod,andencourageanylicensorwhohasnotyetfinalisedtheirdirectlicensingpolicytodosoasamatterofurgency.Weremindlicensorsthatifyouamendyourpolicy(asyouareperfectlyfreetodoatanytime),youshouldprovideuswithacopyforourrecordssothatweareinapositiontoreporttotheACCCwhenrequired.

Finally,wewouldliketoacknowledgethesupportprovidedtoPPCAlicensorsbytheArtsLawCentreofAustralia(ALCA)onthisissue.TheALCAroutinelyprovidesindependentlegaladvicetopotentiallicensorsonthetermsofourinputagreementand,during2008,providedenormousassistancetoPPCAlicensorsontheformulationoftheirdirectlicensingpolicies.

Tariff Reviews – Public PerformanceFollowingthesuccessfulconclusionofthelongstandingCopyrightTribunalmatteronnightclubsanddanceparties,thenewrateswereimplementedlatein2007.TheappealagainsttheTribunal’sdeterminationlodgedbytheAustralianHotelsAssociation(AHA)washeardbytheFederalCourtinMarch2008.TheCourtdismissedtheappeal,upholdingtheTribunal’sdecision.

TheongoingTribunalreferenceinrelationtofitnessclasstariffsisalsoprogressing,withhearingdatessetforMarch2008.WearedelightedtoadvisethatFitnessAustralia,thepeakrepresentativebodyforfitnesscentres,hasagreedtoparticipateinaformalmediationprocessthatisscheduledforlateJanuary.Itisourhopethatallpartiescanagreeonthetermsofthelicencetoavoidalengthyhearing.

Throughout2008wehavealsobeenengagingwithRestaurant&CateringAustraliainordertoconsultonappropriatetarifflevelsforrestaurantsandcafés.Whilstwearestillgatheringdataandgainingadeeperunderstandingofthesector,

weexpecttobeabletotableaproposedschemefordiscussionearlyin2009.

Weremaincommittedtoensuringthatourtariffratesrepresentfairpaymentforuseofourstakeholders’creativeoutput.

Tariff Reviews – BroadcastingLastyearatthistimewereportedthecommencementofproceedingsintheCopyrightTribunalinrespectoftherateapplicabletothebroadcastofsoundrecordingsbycommercialfree-to-airtelevisionstations.

Althoughtherehasbeensomeprogress,thematterismovingveryslowlyandwedonotyethavedatesforahearing.

Earlyin2008,PPCAdevelopednewlicenceschemescoveringthebroadcastofmusicvideoclips,bothbyfree-to-airstationsbroadcastingdedicatedmusicvideoprogramsandsubscriptiontelecasterswithmusicvideochannels.Bothcommercialandsubscriptiontelecasterswereofferedtheselicencesbutalldeclinedtheoffer,advisingthattheybelievetheyhavetheappropriatedirectlicencesinplacewiththerelevantlabels.WetakethisopportunitytoremindlicensorsthatPPCArepresentsyourrepertoireonanon-exclusivebasisandyouarefreetomakeyourproductavailabletobroadcastersunderanytermsyouwish.Wedo,however,recommendthatwhensupplyingproducttotelecastersyouclearlyarticulatethetermsofthearrangement.

Code of ConductAlongwithanumberofotherAustraliancollectingsocieties,PPCAsubscribestoavoluntaryCodeofConductforCollectingSocieties(theCode).Eachyear,PPCA’scompliancewiththeCodeisindependentlyreviewed.Onceagain,PPCAreceivedafavourableCodecompliancereviewfromtheindependentCodeReviewer,theHonJamesBurchett,QC.ThereviewdemonstratesPPCA’scommitmenttofairandefficientdealingswithbothcopyrightusersandcopyrightholders.Inaddition,everythreeyears,theCodeitselfisreviewedtoseeifanyamendmentsneedtobemadetomaintaincurrencyandrelevance.

ThisreviewtookplacethisyearandwaspublishedinApril.BoththeTriennialReviewoftheCodeandtheComplianceReviewareavailableonthePPCAwebsite.

Support Act LimitedPPCAisafoundingmemberofSupportActLimited(SAL),themusicindustry’sbenevolentfund.Throughoutthe2007/08periodPPCAcontinueditssupportofSAL’sactivities,byprovidingpracticalassistanceintheareasoffundraisingandadministration.Itisencouragingtonotethecharity’sprogressovertherecentyear–mostparticularlythedevelopmentofactivestatechaptersinVictoriaandSouthAustralia,andtheappointmentofapart-timeadministrationmanagerinmid-2008.IfyouareunfamiliarwithSAL’sactivities,orwouldliketobecomemoreinvolved,pleasevisitwww.supportact.com.au.

Information SystemsAfteralengthyselectionprocess,wehaverecentlysettledonasuppliertoassistintheimplementationofanewfinancialsystem,whichwillcoverallaspectsoflicensingandcustomerrelationshipmanagement.Thereismuchtobedoneintermsofsystemconfigurationanddatamigration,andwehopetolaunchthenewsystemin2009.WebelievesuchanupdateisessentialtopositionPPCAforfurthergrowth,andallowustoflexiblyrespondtonewtariffmodelsandotherlicensingopportunities.

Staff milestonePPCAcongratulatesLicensingManagerMaxineChisholmfor20yearsatPPCA.Whenshebeganthejobin1988,MaxwastheonlypersondedicatedtolicensingatPPCA–nowshemanagesateamof14.Daytoday,Maxandherteamcommunicatewithawidevarietyofbusinesses,rangingfromsmallbowlingclubstolargecasinos,helpingthemtocomplywiththeircopyrightobligations.Overtheyears,shesaysshe’sseensomuchchangeintheindustry,notingthatPPCA’sprofileandcopyrightawarenessamongbusinessownershasincreaseddramatically.PPCAthanksMaxfortwodecadesofhardworkanddedication.

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CommunicationsIn 2007-2008, PPCA undertook the following communications activities to promote the organisation and support the music industry:

The DeadlysPPCAproudlysponsoredthe14thannualDeadlys,Australian’sNationalIndigenousmusic,sport,entertainmentandcommunityawards.BroadcastonSBS,ImparjaandNITV,TheDeadlyshasanestimatedaudienceofmorethan200,000people.PPCAcongratulatesallofthisyear’swinners.

Trade organisation membership, sponsorship and advertisingToengagewithexistingandpotentiallicensees,PPCAisasupporterofavarietyofindustryorganisations.TheseincludethestateRestaurant&Cateringorganisations,theAustralianHotelsAssociationandtheirstategroups,theHairandBeautyIndustryAssociation,thestate-basedClubsorganisationsandtheAustralianRetailAssociation.WesupportindustryeventssuchastheRestaurant&CateringAwardsandadvertiseinassociationpublicationsandavarietyoftrademagazines.

PPCAcongratulatesthefollowingwinnersoftheRestaurant&CateringAwards:

• BestGreekRestaurantNSW/ACT–Perama,Petersham

• BestIndianRestaurantNSW/ACT–Nilgiri’s,StLeonards

• BestRestaurantinaWineryNSW/ACT–Morrison’sRiverviewWinery&Restaurant

• BestFamilyEstablishmentRestaurantBrisbane,QLD–EnchiladasMexicanCantina,Aspley

• BestEuropeanRestaurantRegionalNSW–ZestRestaurant,NelsonBay

• BestPub/ClubTavernVIC–TheGrandHotelinRichmond.

• BestVenueCatererSA–EpicureCateringattheAdelaideTownHall

The AMPOnceagainPPCAprovidedthe$25,000cashprizetothewinneroftheAustralianMusicPrize.Congratulationsto2007AMPwinners–Sydney’sTheMessHall.

Artist advertisingPPCAcontinuestoencourageAustralianartiststoregisterwithPPCAfortheirshareofourannualdistribution.Weincludeeditorialinformationonwhyit’simportanttoregisterandalertstoourregistrationcut-offdateinmusicpress,musicassociationcommunicationssuchase-newsletters,andadvertisementsintheAustralianMusicIndustryDirectory,andtheannualTamworthCountryMusicFestivalGuideandothermusicpublications.

The Australian Songwriters Association – National Songwriting ContestOnceagain,PPCAsponsoredthebestliveperformanceonthenightattheAustralianSongwritersAssociation’sNationalSongwritingAwards.BoardmemberPaulChristieandLynneSmallwereonhandfortheevening.PPCAcongratulatesthisyear’sjointwinners:VanessaKelly,LindsayRimes&SimonShapiroandOpetaiaFoai/MalcolmSmith.

National Campus Band CompetitionForthefirsttime,PPCAsponsoredtheNationalCampusBandCompetition–thelargestlivebandcompetitioninthesouthernhemisphere.

OrganisedbytheAustralasianAssociationofCampusActivities(AACA),PPCAprovidedfundingandajudge,PPCABoardMemberLindyMorrison,forthefinals.Congratulationstothewinners:

1st Rubycon(ACT)2nd BehindTheseWalls(SA)3rd Wifey(NSW)

SongroomInAugustoflastyear,PPCAcommitted$50,000toawonderfulAustralianchildren’scharity–TheSongRoom.TheSongRoomisanot-for-profitorganisationdedicatedtoprovidingmusicandartsprogramsinAustralianschoolsandcommunities.ThankstoPPCA’ssupport,morechildrenacrossthecountrywillhaveaccesstomusicclassesandmusicalinstruments.

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Maxine Chisholm with Perama restaurant

Lynne Small with Morrison’s restaurant

Stephen Peach and The Mess HallA Song Room percussion workshop

Lindy Morrison with Rubycon

Maxine Chisholm with Perama restaurant

Paul Christie with winners Vanessa Kelly & Simon Shapiro, along with members of Opetaia Foai

PPCAPerformers’Trust

12

PPCA Trust ActivitiesSinceitsinception,PPCAhasfundedandco-administeredwiththeMusician’sUnionandtheMediaEntertainmentandArtsAlliance(formerlyActor’sEquity)the“PPCATrust”.TheTrusteesduringtheperiod1July2007–30June2008wereJohnO’Donnell,StephenPeach,PatriciaAmphlettandDenisShelverton.

InexercisingtheirpowerspursuanttotheprovisionsoftheTrust,theTrusteeshavethepowertopayortoapplytheTrustFundtoorforthebenefitofsuchbeneficiariesastheTrusteesintheirabsolutediscretionfromtimetotimedetermineinrespectofoneormoreofthefollowingpurposes:

1.performanceatconcertsatorforcharitableinstitutionssuchashospitalsorhomesfortheaged;or,

2.scholarshipsforthepromotionandencouragementofmusicalandtheatricaleducation;or

3.thepromotionandencouragementoftheperformingartstothegeneralpublic;or,inparticular,

4.theaidorassistanceofanybeneficiarywhointheopinionoftheTrusteesisunabletoadequatelymaintainherself/himselfbyher/hisownexertionsandotherincome.

TotalfundsprovidedsincecreatingtheTrusthavebeen$1,990,080(upto30June2008).

Inthe2007-2008year,fourTrustmeetingswereheldand37applicationswereputtotheTrustees.Ofthese,22wereapprovedtotaling$70,150.Ofthesuccessfulapplications16relatedtofurthereducationandresearch;and6tofestivals,livemusicandlocalartists.

The names of the recipients are as follows:

Aust.MusicExaminationsBoardBonnieBrownByronWestburyCamdenHavenMusicFestivalChristinaKatsimbardisCloseShaveBarbershopQuartetDanielChristoffersonEmilyGoddardGillianGregoryGuilderWorkshopHeatherLuptonHobartCityVeteransBrassBandLeeCheongMatthewSykesMediaEntertainment&ArtsAllianceMusiciansUnionofAustraliaNatalieNowakSue-EllenPaulsenTheAustralianBoysChoralInstituteWallaceGunnWestCoastYouthServicesIncZoePepper

TheTrustBalanceSheetcanbefoundonpage39ofthisreport.

Feedbackfrommanyofthegrantsrecipientshasbeenwelcomeanduseful.Herearesomeexamples:

Thank you very much for your generous grant of $500 for my trumpet studies in Hobart. It has been and will continue to be very helpful in assisting with the cost of lessons with Mr Levy, which are currently going extremely well.

Many thanks again,RosemaryTurner.

I am writing to thank you very much for the award of $2500 to further my studies and help with tuition fees at the Amsterdam Conservatorium this year. I would like to let you know that I am continuing with the project and I am currently in the Netherlands about to undertake my study. I have recognised the support from the PPCA Performers Trust on my website.

Thank you again,AlanaBlackburn

I am writing to acknowledge the generous support received from the PPCA Performers’ Trust Foundation which enabled me to attend the 8th World Symposium on Choral Music recently in Copenhagen. I was one of 38 delegates from Australia amongst a total of over one thousand from all around the world. The week-long conference was inspiring and enabled me to ‘re-charge the batteries’ as a choral conductor through attendance at workshops and seminars on the voice, choral conducting and repertoire and, of course, the immensely exciting opportunity to hear the world’s best choirs in concert. . .

I ask that you convey my thanks to the Trustees, without whose help I would not have been able to attend the Symposium.

Yours sincerely, NoelAncell,ArtisticDirector,TheAustralianBoysChoralInstitute.

The PPCA Most Broadcast Lists acknowledge Australian artists that receive extensive airplay according to PPCA’s broadcast logs. We compile these lists from the play list data used to distribute income to licensors, artists and the PPCA Performers’ Trust Foundation.

2008MostBroadcastRecordingsandArtists

The2008MostBroadcastArtistsandRecordingshavedemonstratedpositivegrowthinexposureforAustralianartists,withanunprecedented19actsmakingitintothe2008Top50MostBroadcastArtistReport.Thisisupfrom16in2007and15in2006.The2008Top100MostBroadcastRecordingReportwasalsoaboonforlocalartists,with28tracksfrom20differentactsmakingthelist.

Forthesecondconsecutiveyear,P!nktoppedthe2008Top50MostBroadcastArtistReport,followedbyMaroon5at#2,Matchbox20at#3,Fergieat#4andFallOutBoyat#5.TheVeronicaswerethetoprankedAustralianactat#6followedbyRogueTradersat#9.

Matchbox20hastoppedthe2008Top100MostBroadcastRecordingReportwithHow Far We’ve Come,followedbySantanaat#2withInto The NightandFergieat#3withBig Girls Don’t Cry (Personal).GoodCharlotteisat#4

withDance Floor AnthemandMatchbox20featuresagainat#5withAll Your Reasons.ThePotbelleezleadthewayforAustralianacts,at#6withDon’t Hold Back,withTheVeronicas,Silverchair,Ricki-LeeandDeltaGoodremmakingthetop20.MikaandFergiebothcontributedfourdifferentsongstotheTop100,withTheVeronicas,DeltaGoodrem,FallOutBoy,P!nk,SnowPatrolandMaroon5allplacingthreesongsinthereport.

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13

Top100MostBroadcastRecordings2008The chart is measured by collating titles that appear in the PPCA radio/TV broadcast logs during the period July to June each year.

HowFarWe’veComeIntoTheNightBigGirlsDon’tCry(Personal)DanceFloorAnthemAllYourReasonsDon’t Hold BackBleedingLove‘CuzICanPicturesOfYouWon’tGoHomeWithoutYouWakeUpCallUntouched ShadowOfTheDayHeyThereDelilahStraight LinesMiseryCan’t Touch It (Radio Edit)HappyEndingOpenYourEyesIn This LifeWayIAre,TheHook Me UpShutUpAndDriveStopAndStare-AlbumVersionClumsyOpinions Wont’ Keep You Warm At NightLongRoadToRuinLoveTodayDon’t You Wanna FeelMakesMeWonderDon’tStopTheMusicLeaveMeAlone(I’mLonely)PieceOfMe4InTheMorningBetter ThanThnksFrThMmrsIt’sNotOverStrongerNoOneParalyzerWhatI’veDoneI Never Liked YouNeverAgainSummerLoveDreamCatchMeTattooWhenYou’reGoneThis Heart Attack20 Good ReasonsThePretender

0102030405060708091011121314151617181920212223242526272829303132333435363738394041424344454647484950

14

Track Name Artist Name

Matchbox20SantanaFergieGoodCharlotteMatchbox20The PotbelleezLeonaLewisP!nkTheLastGoodnightMaroon5Maroon5The Veronicas LinkinParkPlainWhiteT’sSilverchairGoodCharlotteRicki-LeeMikaSnowPatrolDelta GoodremTimbalandThe VeronicasRihannaOneRepublicFergieKisschasyFooFightersMikaRogue TradersMaroon5RihannaP!nkBritneySpearsGwenStefaniThe John Butler TrioFallOutBoyDaughtryKanyeWestAliciaKeysFingerElevenLinkinParkRogue TradersKellyClarksonJustinTimberlakeNewtonFaulknerJordinSparksAvrilLavigneFakerThirsty MercFooFighters

DestinationCalabriaWorkI Don’t RememberLittleWondersLetMeThinkAboutIt(FreddeLeGrandClubMix)This LoveBubblyHotTeenagersIn PiecesWhenI’mGone(AcousticVersion)The Hard WayLow4MinutesLoudBetterThanMeDon’t Miss YouSweet About MeHowToSaveALifeI Don’t Do SurprisesLost And RunningBelieve AgainUFOHandsOpen2 HeartsTheTakeOver,TheBreaksOverGraceKellySuddenlyISeePerfectWithYouNineIntheAfternoonChasingCarsTheSweetEscapeApologizeLoveStoned/IThinkSheKnows(RadioEdit)SlowDownBabyBetterInTimeGimmeMoreDearMr.PresidentBlack Fingernails, Red WineGlamorousAmericanBoyThisAin’tAScene,It’sAnArmsRaceBeautifulGirlsBigGirl(YouAreBeautiful)Where I StoodYourLoveIsALie(AmendedAlbumVersion)OneMinuteYou Will Only Break My HeartHereICome

51525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100

Track Name Artist Name Track Name Artist Name

AlexGaudinoKellyRowlandPowderfingerRobThomasIdaCorrThe VeronicasColbieCaillatAvrilLavigneMyChemicalRomanceShannon NollSimplePlanThirsty MercFloRidaMadonnaShannon NollHinderAmy PearsonGabriella CilmiTheFrayAxle WhiteheadPowderfingerDelta GoodremSneaky Sound SystemSnowPatrolKylie MinogueFallOutBoyMikaKTTunstallVanessa AmorosiChrisBrownPanicAtTheDiscoSnowPatrolGwenStefaniTimbalandJustinTimberlakeChristinaAguileraLeonaLewisBritneySpearsP!nkEskimo JoeFergieEstelleFallOutBoySeanKingstonMikaMissy HigginsSimplePlanKellyClarksonDelta GoodremFergie

15

50MostBroadcastArtists2008

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

16

01.P!nk02.Maroon503.Matchbox2004.Fergie05.FallOutBoy06.TheVeronicas07.JustinTimberlake08.GoodCharlotte09.RogueTraders10.Timbaland11.U212.Powderfinger13.LinkinPark14.AvrilLavigne15.GwenStefani16.KellyClarkson17.DeltaGoodrem18.INXS19.TheJohnButlerTrio20.Mika21.ThirstyMerc22.KylieMinogue23.Santana24.SneakySoundSystem25.BritneySpears26.SnowPatrol27.Madonna28.LeonaLewis29.Silverchair30.RobbieWilliams31.RedHotChiliPeppers32.ThePotbelleez33.EskimoJoe34.Ricki-Lee35.TheLastGoodnight36.MissyHiggins37.NellyFurtado38.Kisschasy39.PlainWhiteT’s40.FooFighters41.Evermore42.ChristinaAguilera43.GreenDay44.CrowdedHouse45.SimplePlan46.Daughtry47.Coldplay48.Nickelback49.PeteMurray50.ColdChisel

MostBroadcastArtists2005-2007

17

2005 2006 2007

Kylie Minogue Maroon5 U2 Missy Higgins GreenDay SimplePlan AvrilLavigne BritneySpears Powderfinger Delta Goodrem Jet KellyClarkson Destiny’sChild Anastasia GwenStefani Nelly RobbieWilliams Eminem Guy Sebastian Pete Murray Killing Heidi GoodCharlotte Usher Matchbox20 INXS

01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.

01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.

KellyClarkson RobThomas Nickelback RobbieWilliams BlackEyedPeas Madonna The Veronicas GreenDay Shannon Noll U2 Rogue Traders GwenStefani JamesBlunt Pete Murray Coldplay BackstreetBoys Bernard Fanning Kylie Minogue INXS Ben Lee SimplePlan Sugababes FooFighters ThePussycatDolls DanielPowter

P!nkRobbieWilliamsNickelbackEskimo JoeU2NellyFurtadoJustinTimberlakeRedHotChiliPeppersSnowPatrolEvermorePussycatDollsThe Rogue TradersShannon NollINXSChristinaAguileraTheFrayGwenStefaniBeyonceKellyClarksonPete MurrayThe VeronicasPanic!AtTheDiscoColdplayEvanescenceJet

01.02.03.04.05.06.07.08.09.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.

SpecialPurposeFinancialReport2004-2007For the financial year ending 30 June 2008

Directors’Report 19

Auditor’sIndependenceDeclaration 21

IndependentAuditor’sReport 22

Directors’Declaration 23

IncomeStatement 24

BalanceSheet 25

StatementofRecognisedIncomeandExpense 26

CashFlowStatement 27

NotestotheFinancialStatements 28

18

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19

Directors’Report2004-2007ThedirectorsofPhonographicPerformanceCompanyofAustraliaLimitedsubmitherewiththeannualfinancialreportofthecompanyforthefinancialyearended30June2008.InordertocomplywiththeprovisionsoftheCorporationsAct2001,thedirectorsreportasfollows:

Thenamesofthedirectorsofthecompanyduringorsincetheendofthefinancialyearare:

George William Ash Managing Director, Record Company

Jonathan Carter (AlternateforJohnO’Donnell) Head of Business Affairs, Record Company

Sebastian Chase Chief Executive Officer, Record Company

Paul Adrian Christie Independent Artist

Raani Costelloe(AlternateforDenisAnthonyHandlin) General Manager, Legal & Business Affairs, Record Company

David William De Barran Cullen Director, Management Company

Karen Ann Don (AlternateforGeorgeWilliamAsh); Director, Legal & Business Affairs, Record Company

Deborah Veronica Gervay(AlternateforJohnAnthonyO’Donnell); Head of Business Affairs, Record Company

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

Belinda Morrison Independent Artist

Mark Narborough(AlternateforEdwardErskineStJohn); Director of Finance, Record Company

John Anthony O’Donnell Managing Director, Record Company

Mark Andrew Poston Managing Director, Record Company

Edward Erskine St John Managing Director, Record Company

David Andrew Vodicka Managing Director, Record Company

Theabovenameddirectorsheldofficeduringandsincetheendofthefinancialyearexceptfor:

Deborah Veronica Gervay Resigned 5 December 2007

David Andrew Vodicka Resigned 28 February 2008

John Anthony O’Donnell Resigned 27 August 2008

Sebastian Chase Appointed 8 May 2008

Jonathan Carter Appointed 5 December 2007

Mark Andrew Poston Appointed 27 August 2008

Directors’Report

20

Directors’ Meetings Thefollowingtablesetsoutthenumberofdirectors’meetingsheldduringthefinancialyearandthenumberofmeetingsattendedbyeachdirector(whiletheywereadirector).Duringthefinancialyear,fiveboardmeetingswereheld.

Directors Board of Directors Held Attended

George William Ash 5 3

Jonathan Carter (Alternate)(Appointed5December2007) - -

Sebastian Chase (Appointed8May2008) 2 2

Raani Costelloe (Alternate) 5 5

Paul Adrian Christie 5 5

David William De Barran Cullen 5 5

Karen Ann Don (Alternate) 2 -

Deborah Veronica Gervay (Alternate)(Resigned5December2007) - -

Denis Anthony Handlin 5 -

Belinda Morrison 5 5

Mark Narborough (Alternate) 1 -

John Anthony O’Donnell 5 5

Edward Erskine St John 5 4

David Andrew Vodicka (Resigned28February2008) 2 1

Company SecretaryLynne Maree SmallC.P.A.,Appointed16May1997

Principal activitiesTheprincipalactivityofthecompanyinthecourseofthefinancialyearwasactingforthecopyrightownersinthelicensingthroughoutAustraliaofthebroadcastandpublicperformanceofsoundrecordingsandmusicvideoclips.

Directors’Report

21

Review of operationsThecompanydistributesthelicencefeesitcollectstotheCopyrightownersandartistsafterdeductingoperatingexpenses.Asaresultofthis,noprofitorlossisreportedandthedirectorsdonotrecommendthatadividendwillbepayableinthecurrentyear.Nodividendwaspayableintheprioryear.

Thecompany’sresultshaveagainshownasubstantialincreaseintheamounttobedistributedtocopyrightownersascomparedwiththepreviousyear.Theresultsoftheoperationsofthecompanyduringtheyearwerenot,intheopinionofthedirectorssubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.

Thecompany’sdistributiontoitslicensorsinrelationtothecurrentyearwas$14,497,874(2007:$12,666,828).

Thecompany’sresultsforthecurrentyearended30June2008wasaprofitof$nil(2007:$nil).

Changes in state of affairsTherewerenosignificantchangesinthestateofaffairsofthecompanyduringthefinancialyear.

Subsequent eventsTherehasnotbeenanymatterorcircumstanceoccurringsubsequenttotheendofthefinancialyearthathassignificantlyaffected,ormaysignificantlyaffect,theoperationsofthecompany,theresultsofthoseoperations,orthestateofaffairsofthecompanyinfuturefinancialyears.

Future developmentsDisclosureofinformationregardinglikelydevelopmentsintheoperationsofthecompanyinfuturefinancialyearsandtheexpectedresultsofthoseoperationsislikelytoresultinunreasonableprejudicetothecompany.Accordingly,thisinformationhasnotbeendisclosedinthisreport.

Environmental regulationsThecompany’soperationsarenotsubjecttoanyparticularandsignificantenvironmentalregulationsunderanyStateorFederallaws.

Indemnification of officers and auditorsDuringthefinancialyear,thecompanypaidapremiuminrespectofacontractinsuringthedirectorsofthecompany(asnamedabove),thecompanysecretary,LynneMareeSmall,andallexecutiveofficersofthecompanyandofanyrelatedbodycorporateagainstaliabilityincurredassuchadirector,secretaryorexecutiveofficertotheextentpermittedbytheCorporationsAct2001.Thecontractofinsuranceprohibitsdisclosureofthenatureoftheliabilityandtheamountofthepremium.

Thecompanyhasnototherwise,duringorsincethefinancialyear,excepttotheextentpermittedbylaw,indemnifiedoragreedtoindemnifyanofficerorauditorofthecompanyorofanyrelatedbodycorporateagainstaliabilityincurredassuchanofficerorauditor.

Auditor’s independence declarationTheauditor’sindependencedeclarationisincludedonpage4oftheannualreport.

Signedinaccordancewitharesolutionofdirectorsmadepursuanttos.298(2)oftheCorporationsAct2001.

Onbehalfofthedirectors,

George William AshDirectorSydney,6November2008

IndependentAuditReport

Wehaveauditedtheaccompanyingfinancialreport,beingaspecialpurposefinancialreport,ofPhonographicPerformanceCompanyofAustraliaLimited,whichcomprisesthebalancesheetasat30June2008,andtheincomestatement,cashflowstatementandstatementofrecognisedincomeandexpensefortheyearendedonthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandthedirectors’declarationassetoutonpages23to38.

Directors’ Responsibility for the Financial ReportThedirectorsofthecompanyareresponsibleforthepreparationandfairpresentationofthefinancialreportandhavedeterminedthattheaccountingpoliciesdescribedinNote2tothefinancialstatements,whichformpartofthefinancialreport,areappropriatetomeettherequirementsoftheCorporationsAct2001andareappropriatetomeettheneedsofthemembers.Thedirectors’responsibilityalsoincludesestablishingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.Noopinionisexpressedastowhethertheaccountingpoliciesused,asdescribedinNote2,areappropriatetomeettheneedsofthemembers.WeconductedourauditinaccordancewithAustralianAuditingStandards.TheseAuditingStandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludes

evaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialreport.

Thefinancialreporthasbeenpreparedfordistributiontothemembersforthepurposeoffulfillingthedirectors’financialreportingrequirementsundertheCorporationsAct2001.Wedisclaimanyassumptionofresponsibilityforanyrelianceonthisreportoronthefinancialreporttowhichitrelatestoanypersonotherthanthemembers,orforanypurposeotherthanthatforwhichitwasprepared.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.Auditor’s Independence DeclarationInconductingouraudit,wehavecompliedwiththeindependencerequirementsoftheCorporationsAct2001.

Auditor’s Opinion

Inouropinion,thefinancialreportofPhonographicPerformanceCompanyofAustraliaLimitedisinaccordancewiththeCorporationsAct2001,including: (a)givingatrueandfairviewofthecompany’sfinancialpositionas

at30June2008andofitsperformancefortheyearendedonthatdateinaccordancewiththeaccountingpoliciesdescribedinNote2;and

(b)complyingwithAustralianAccountingStandardstotheextentdescribedinNote2andtheCorporationsRegulations2001.

Deloitte Touche Tohmatsu

Gaile PearcePartnerCharteredAccountantsSydney,2008

22

Directors’Declaration

AsdetailedinNote2tothefinancialstatements,thecompanyisnotareportingentitybecauseintheopinionofthedirectorsthereareunlikelytoexistusersofthefinancialreportwhoareunabletocommandthepreparationofreportstailoredsoastosatisfyspecificallyalloftheirinformationneeds.Accordingly,this‘specialpurposefinancialreport’hasbeenpreparedtosatisfythedirectors’reportingrequirementsundertheCorporationsAct2001.

Thedirectorsdeclarethat: (a)inthedirectors’opinion,therearereasonablegroundstobelieve

thatthecompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable;and

(b)inthedirectors’opinion,theattachedfinancialstatementsand

notestheretoareinaccordancewiththeCorporationsAct2001,includingcompliancewithaccountingstandardsandgivingatrueandfairviewofthefinancialpositionandperformanceofthecompany.

Signedinaccordancewitharesolutionofthedirectorsmadepursuanttos.295(5)oftheCorporationsAct2001.

Onbehalfofthedirectors,

George William AshDirectorSydney,6November2008

23

24

IncomeStatementFor the financial year ending 30 June 2008

Note 2008 2007 $ $

Notestothefinancialstatementsareincludedonpages28to38

Continuing operations

Revenue

SubscriptionfeespaidorpayabletotheInternationalFederationofPhonographicIndustry

Employeebenefitsexpense

Depreciationandamortisationexpense

Occupancyexpense

Distributiontolicensors

Legalexpense

Otherexpenses

Profitbeforetax

Incometaxexpense

Profit for the year

Profit for the year attributable to members of the parent entity

20,043,667 16,811,529 (376,806) (476,613) (2,158,874) (1,919,855) (155,789) (173,148) (194,190) (182,822) (14,497,874) (12,666,828) (1,845,042) (652,780)

(815,092) (739,483) - - - -3 - - - -

25

BalanceSheetAs at June 2008

Note 2008 2007 $ $


Current assetsCashandcashequivalentsTradeandotherreceivablesOtherfinancialassets

Total current assets

Non-current assetsPlantandequipment

Total non-current assets

Total assets

Current liabilitiesTradeandotherpayablesProvisions

Total current liabilities

Non-current liabilitiesProvisions

Total non-current liabilities

Total liabilities

Net assets

EquityIssuedcapital

Total equity

1,263,730 898,113 5,569,181 3,908,471 14,766,320 14,466,320

21,599,231 19,272,904

261,638 376,870

261,638 376,870

21,860,869 19,649,774

21,539,167 19,373,499 210,370 168,931

21,749,537 19,542,430

111,320 107,332

111,320 107,332

21,860,857 19,649,762

12 12

12 12

12 12

11(a) 4 5

6

7 8

8

9

StatementofRecognisedIncomeandExpenseFor the financial year ending 30 June 2008

26

Note 2008 2007 $ $

Profitfortheperiod

Total recognised income and expense for the period

- -

- -


27


CashFlowStatementFor the financial year ending 30 June 2008

Cash flows from operating activitiesReceiptsfromcustomersPaymentstosuppliersandemployeesDistributionstolicensors

Netcashprovidedby/(usedin)operatingactivities

Cash flows from investing activitiesInterestreceivedPaymentsforproperty,plantandequipment

Netcashprovidedbyinvestingactivities

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year

Cash and cash equivalents at the end of the financial year

19,210,498 17,362,285 (6,865,898) (5,825,120) (12,666,828) (10,329,049) (322,228) 1,208,116 1,028,402 797,945 (40,557) (48,767) 987,845 749,178 665,617 1,957,294 15,364,433 13,407,139 16,030,050 15,364,433

Note 2008 2007 $ $

11(b)

11(a)

28

NotestotheFinancialStatementsFor the financial year ending 30 June 2008

1. General information

PhonographicPerformanceCompanyofAustraliaLimited(thecompany)isaproprietarycompany,incorporatedinAustraliaandoperatinginAustralia.PhonographicPerformanceCompanyofAustraliaLimited’sregisteredofficeanditsprincipalplaceofbusinessisasfollows:

Registeredofficeandprincipalplaceofbusiness:Level419HarrisStreetPYRMONTNSW2009Telephone(02)85691100

Theentity’sprincipalactivityisactingforthecopyrightownersinthelicensingthroughoutAustraliaofthebroadcastandpublicperformanceofsoundrecordingsandmusicvideoclips.

2. Significant accounting policies

Financial reporting frameworkThecompanyisnotareportingentitybecauseintheopinionofthedirectorsthereareunlikelytoexistusersofthefinancialreportwhoareunabletocommandthepreparationofreportstailoredsoastosatisfyspecificallyalloftheirinformationneeds.Accordingly,this‘specialpurposefinancialreport’hasbeenpreparedtosatisfythedirectors’reportingrequirementsundertheCorporationsAct2001.

Statement of complianceThefinancialreporthasbeenpreparedinaccordancewiththeCorporationsAct2001,therecognitionandmeasurementrequirementsspecifiedbyallAccountingStandardsandInterpretations,andthedisclosurerequirementsofAccountingStandardsAASB101‘PresentationofFinancialStatements’,AASB107‘CashFlowStatements’andAASB108‘AccountingPolicies,ChangesinAccountingEstimatesandErrors.’

Basis of preparationThefinancialreporthasbeenpreparedonthebasisofhistoricalcost,exceptfortherevaluationofcertainnon-currentassetsandfinancial

instruments.Costisbasedonthefairvaluesoftheconsiderationgiveninexchangeforassets.AllamountsarepresentedinAustraliandollars,unlessotherwisenoted.

Deficiency of working capitalAsat30June2008thecompanyhasaworkingcapitaldeficiencyof$150,306(2007:$269,526).Includedinthecompany’scurrentliabilitiesareaggregateamountsrepresentingthelicensefeesreceivedinadvancefor$5,431,079(2007:$5,465,901)andamountspayabletolicensorsof$14,497,874(2007:$12,666,828).WhiletheamountpayabletothelicensorswillbesettledinDecember2008,thelicensefeesreceivedinadvancewillbeusedtosupporttheoperationsofthecompanyinthenextfinancialyearwithonlythesurplusformingpartoftheamountwhichwillbedistributedtothelicensorsinrelationtothefinancialyearending30June2009.

Consequently,theworkingcapitaldeficiencypositionat30June2008isduetothenatureofPPCA’sbusinessanddoesnothighlightanissuerelatingtothegoingconcernassumptionofthecompany.

Critical accounting judgements and key sources of estimation uncertaintyIntheapplicationofthecompany’saccountingpolicies,managementisrequiredtomakejudgments,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

Adoption of new and revised Accounting StandardsInthecurrentyear,thecompanyhasadoptedallofthenewandrevisedStandardsandInterpretationsissuedbytheAustralianAccountingStandardsBoard(theAASB)thatarerelevanttoitsoperationsandeffectiveforthecurrentannualreportingperiod.

29

Detailsoftheimpactoftheadoptionofthesenewaccountingstandardsaresetoutintheindividualaccountingpolicynotessetoutbelow.ThecompanyhasalsoadoptedAASB101‘PresentationofFinancialStatements(revisedOctober2006)’inrespectofdisclosure.

Thefollowingsignificantaccountingpolicieshavebeenadoptedinthepreparationandpresentationofthefinancialreport:

(a) Goods and services tax Revenues,expensesandassetsarerecognisednetofthe

amountofgoodsandservicestax(GST),except:

i.wheretheamountofGSTincurredisnotrecoverablefromthetaxationauthority,itisrecognisedaspartofthecostofacquisitionofanassetoraspartofanitemofexpense;or

ii.forreceivablesandpayableswhicharerecognisedinclusiveofGST.

ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayables.

Cashflowsareincludedinthecashflowstatementonagrossbasis.TheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,thetaxationauthorityisclassifiedasoperatingcashflows.

(b) Revenue Revenueisbroughttoaccountoverthetermsofthe

licencesissuedonthefollowingbasis:

•Publicperformancelicencefeesarenormallyissuedforaperiodofoneyear,althoughshorterperiodsareaccommodated.Inallcaseslicencefeesarepayableinadvance.Incomeisbroughttoaccountonamonthlybasisoverthelifeofthecontract.

•Broadcastlicencesareissuedforvariousterms-incomeisbroughttoaccountonamonthlybasisoverthelifeofthecontract.

•Interestrevenueisrecognisedonatimeproportionatebasisthattakesintoaccounttheeffectiveyieldonthefinancialasset.

•Revenuefromthedisposalofotherassetsisrecognisedwhentheentityhaspassedcontroloftheotherassetstothebuyer.

Interest revenue Interestrevenueisaccruedonatimebasis,byreference

totheprincipaloutstandingandattheeffectiveinterestrateapplicable,whichistheratethatexactlydiscounts

estimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothatasset’snetcarryingamount.

(c) Income tax Thecompanypreparesitsincometaxreturnsonthe

basisthatitactsasagentforthecopyrightholdersthatitrepresents.Assuch,itdoesnotderiveincomeonitsownaccount.Rather,itisentitledunderitsconstituentdocumenttobereimbursedforexpenditureincurredinthecourseofitsactivities.ThebasisofassessmenthasbeenagreedwiththeAustralianTaxationOffice.

Theneteffectoftemporaryandpermanentdifferencesarisingfromexpenditureincurredbythecompanyispassedontotherecipientsoftheroyaltiescollected.

(d) Cash and cash equivalents Cashcomprisescashonhandanddemanddeposits.

Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesinthebalancesheet.

(e) Financial assets

Loans and receivables Tradereceivables,loans,andotherreceivablesthathave

fixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedas‘loansandreceivables.’


30


2. Significant accounting policies (continued)

Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethodlessimpairment.

Interestincomeisrecognisedbyapplyingtheeffectiveinterestrate.

(f) Impairment of financial assets Financialassets,otherthanthoseatfairvaluethrough

profitorloss,areassessedforindicatorsofimpairmentateachbalancesheetdate.Financialassetsareimpairedwherethereisobjectiveevidencethatasaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialassettheestimatedfuturecashflowsoftheinvestmenthavebeenimpacted.

Forfinancialassetscarriedatamortisedcost,theamountoftheimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.

Thecarryingamountoffinancialassetsincludinguncollectibletradereceivablesisreducedbytheimpairmentlossthroughtheuseofanallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainsttheallowanceaccount.Changesinthecarryingamountoftheallowanceaccountarerecognisedinprofitorloss.

(g) Plant and equipment Plantandequipment,leaseholdimprovementsarestated

atcost,lessaccumulateddepreciationandimpairment.Costincludesexpenditurethatisdirectlyattributabletotheacquisitionorconstructionoftheitem.Intheeventthatsettlementofallorpartofthepurchaseconsiderationisdeferred,costisdeterminedbydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.

Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildings,butexcludingland.

Depreciationiscalculatedonastraight-linebasissoastowriteoffthenetcostorotherrevaluedamountofeachassetoveritsexpectedusefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedovertheperiodoftheleaseorestimatedusefullife,whicheveristheshorter,usingthestraight-linemethod.Theestimatedusefullives,residualvaluesanddepreciationmethodarereviewedattheendofeachannualreportingperiod,withtheeffectofanychangesrecognisedonaprospectivebasis.

Thegainorlossarisingondisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthedifferencebetweenthesalesproceedsandthecarryingamountoftheassetandisrecognisedinprofitorloss.

(h) Leased assets Leasesareclassifiedasfinanceleaseswhentheterms

oftheleasetransfersubstantiallyalltherisksandrewardsincidentaltoownershipoftheleasedassettothelessee.Allotherleasesareclassifiedasoperatingleases.

Operatingleasepaymentsarerecognisedasanexpenseonastraight-linebasisovertheleaseterm,exceptwhereanothersystematicbasisismorerepresentativeofthetimepatterninwhicheconomicbenefitsfromtheleasedassetareconsumed.Contingentrentalsarisingunderoperatingleasesarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

(i) Employee benefits Aliabilityisrecognisedforbenefitsaccruingtoemployees

inrespectofwagesandsalaries,annualleaveandlongserviceleavewhenitisprobablethatsettlementwillberequiredandtheyarecapableofbeingmeasuredreliably.

Liabilitiesrecognisedinrespectofemployeebenefitsexpectedtobesettledwithin12months,aremeasuredat

31


theirnominalvaluesusingtheremunerationrateexpectedtoapplyatthetimeofsettlement.

Liabilitiesrecognisedinrespectofemployeebenefits

whicharenotexpectedtobesettledwithin12monthsaremeasuredasthepresentvalueoftheestimatedfuturecashoutflowstobemadebythecompanyinrespectofservicesprovidedbyemployeesuptoreportingdate.

Defined contribution plans Contributionstodefinedcontributionsuperannuationplans

areexpensedwhenemployeeshaverenderedserviceentitlingthemtothecontributions.

(j) Provisions Provisionsarerecognisedwhenthecompanyhasapresent

obligation(legalorconstructive)asaresultofapastevent,itisprobablethatthecompanywillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.

Theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatreportingdate,takingintoaccounttherisksand

uncertaintiessurroundingtheobligation.Whereaprovision ismeasuredusingthecashflowsestimatedtosettlethe presentobligation,itscarryingamountisthepresentvalue ofthosecashflows.

Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognisedasanassetifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

(k) Financial instruments issued by the company

Other financial liabilities Otherfinancialliabilities,includingborrowings,areinitially

measuredatfairvalue,netoftransactioncosts.Otherfinancialliabilitiesaresubsequentlymeasuredatamortised

costusingtheeffectiveinterestmethod,withinterestexpenserecognisedonaneffectiveyieldbasis.

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialliabilityandofallocatinginterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsthroughtheexpectedlifeofthefinancialliability,or,whereappropriate,ashorterperiod.

(l) Standards and Interpretations issued not yet effective

Atthedateofauthorisationofthefinancialreport,theStandardsandInterpretationslistedbelowwhichareexpectedtobeapplicabletothecompanywereinissuebutnotyeteffective.

InitialapplicationofthefollowingStandardwillnotaffectanyoftheamountsrecognisedinthefinancialreport,butwillchangethedisclosurespresentlymadeinrelationtothecompanyandthecompany’sfinancialreport:

•AASB101‘PresentationofFinancialStatements’(revisedSeptember2007),AASB2007-8‘AmendmentstoAustralianAccountingStandardsarisingfromAASB101’Effectiveforannualreportingperiodsbeginningonorafter1January2009,expectedtobeinitiallyappliedinthefinancialyearending30June2010.

TheinitialapplicationoftheexpectedissueofanAustralianequivalentaccountingstandardtothefollowingstandardisnotexpectedtohaveamaterialimpactonthefinancialreportofthecompany:

•ImprovementstoIFRSs(2008)Effectiveforannualreportingperiodsbeginningonorafter1July2009.

32


3. Profit for the year

LicencefeesInterestrevenue–otherparties

Lossonsaleofplantandequipment

Depreciationandamortisationofnon-currentassets

Employeebenefitsexpense

Operatingleaseexpense

4. Trade and other receivables

TradereceivablesAllowancefordoubtfuldebts

PrepaidexpensesOtherlicencereceivablesOther

19,015,265 16,013,584 1,028,402 797,945 20,043,667 16,811,529 - (614) (155,789) (173,148) (2,158,874) (1,919,855) (194,190) (182,822)

2008 2007 $ $

4,817,475 3,527,559 (102,789) (64,703) 4,714,686 3,462,856

11,361 22,123 538,894 167,814 304,240 255,678 5,569,181 3,908,471

33


4. Trade and other receivables

TradereceivablesAllowancefordoubtfuldebts

PrepaidexpensesOtherlicencereceivablesOther

5. Other financial assets

Cashondeposit

4,817,475 3,527,559 (102,789) (64,703) 4,714,686 3,462,856 11,361 22,123 538,894 167,814 304,240 255,678 5,569,181 3,908,471

2008 2007 $ $

14,766,320 14,466,320

34


6. Plant and equipment

2008

GrosscarryingamountAccumulateddepreciation

2007

GrosscarryingamountAccumulateddepreciation

61,525 62,255 646,886 218,929 989,595 (59,867) (54,658) (407,381) (206,051) (727,957) 1,658 7,597 239,505 12,878 261,638

60,921 52,894 616,294 218,929 949,038 (50,893) (51,954) (298,425) (170,896) (572,168) 10,028 940 317,869 48,033 376,870

Office furniture

at cost$

Office equipment

at cost$

Computer equipment

at cost$

Leashold improvements

at cost$

Total$

Thefollowingusefullivesareusedinthecalculationofdepreciation:• Officefurniture 5years• Officeequipment 4years• Computerequipment 3years• Leaseholdimprovements 5years

35


TradepayablesGoodsandservicestaxpayableDeferredrentLicencefeesreceivedinadvanceAmountspayabletolicensors

8. Provisions

CurrentEmployeebenefits

Non-currentEmployeebenefitsLeasemakegoodprovision(i)

(i)PhonographicPerformanceCompanyofAustraliaLimitedhasrenewedtheoperatingleaseagreementforafurtherthreeyearsinthecurrentyear,commencing1April2008.Consequently,theleasemakegoodprovisionhasbeenclassifiedasnon-currentinthecurrentfinancialyear.

1,087,658 735,595 522,556 490,055 - 15,120 5,431,079 5,465,901 14,497,874 12,666,828 21,539,167 19,373,499

2008 2007 $ $7. Trade and other payables

2008 2007 $ $

210,370 168,931 51,320 47,332 60,000 60,000 111,320 107,332

36


12fullypaidordinaryshares(2007:12)

Fully paid ordinary sharesBalanceatbeginningoffinancialyear

Balanceatendoffinancialyear

Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.

ChangestothethenCorporationsLawabolishedtheauthorisedcapitalandparvalueconceptinrelationtosharecapitalfrom1July1998.Therefore,thecompanydoesnothavealimitedamountofauthorisedcapitalandissuedsharesdonothaveaparvalue.

12 12

2008 2007 $ $9. Issued capital

2007 No. $

2008 No. $

12 12 12 12

12 12 12 12

Other expenditure commitmentsNon-cancellable operating lease payments (i)Notlongerthan1yearLongerthan1yearandnotlongerthan5years

(i)PhonographicPerformanceCompanyofAustraliaLimitedhasrenewedtheoperatingleaseagreementforafurtherthreeyearsintheprioryear,commencing1April2008.

403,989 271,710 839,251 - 1,243,240 271,710

2008 2007 $ $10. Commitments for expenditure

37


CashandcashequivalentsCashontermdeposits Note5

1,263,730 898,113 14,766,320 14,466,320 16,030,050 15,364,433

2008 2007 $ $

11. Notes to the cash flow statement

(a) Reconciliation of cash and cash equivalentsForthepurposesofthecashflowstatement,cashandcashequivalentsincludescashonhandandinbanksandinvestmentsinmoneymarketinstruments,netofoutstandingbankoverdrafts.Cashandcashequivalentsattheendofthefinancialyearasshowninthecashflowstatementisreconciledtotherelateditemsinthebalancesheetasfollows:

Profitfortheyear

Lossonsaleordisposalofnon-currentassetsDepreciationandamortisationInterestincomereceivedandreceivable

Changes in net assets and liabilities(Increase)/decreaseinassets: TradeandotherreceivablesIncrease/(decrease)inliabilities: Tradeandotherpayables Provisions(current) Provisions(non-current)

Netcash(usedin)/providedbyoperatingactivities

- - - 614 155,789 173,148 (1,028,402) (797,945) (1,660,710) (1,138,821) 2,165,668 2,951,488 41,439 23,751 3,988 (4,119) (322,228) 1,208,116

2008 2007 $ $

(b) Reconciliation of profit for the period to net cash flows from operating activities

38


38,514 35,200 8,569 13,300 47,083 48,500

2008 2007 $ $12. Remuneration of auditors

Auditor of the parent entityAuditorreviewofthefinancialreportOthernon-auditservices–distributionservicesandpreparationofthetaxreturn

39

Performers’TrustFoundationBalanceSheetAs at 30 June 2008

Current assetsCashandcashequivalentsTradeandotherreceivablesTermdeposits

Total current assets

Total assets

Current liabilitiesTradeandotherpayablesGrantsallocatedandunexpendedattheendofthefinancialyearheldbytrusteesforbeneficiariesof: ProfessionalMusician’sUnionofAustralia MediaEntertainment&ArtsAlliance

Total current liabilities

Total liabilities

Net assets

FundsFundsretainedintheTrust

Total funds

163,405 153,664 3,359 5,548 500,000 500,000 666,764 659,212 666,764 659,212 4,379 4,001 357,122 287,274 45,735 35,733 407,236 327,008 407,236 327,008 259,528 332,204 259,528 332,204 259,528 332,204

2008 2007 $ $

40

TariffCategories

GeneralLicences–openairevents;school,danceacademyorchurchconcerts;motivationalspeakers.(Singleeventlicencesareavailable).

Eventsandfestivals

Cinemasandtheatres

Dancestudios,danceinstructors,linedanceinstructors

Liveperformancegroups,dancecompanies,liveperformancepromoters

Nightclubs

Dancesanddanceparties

Foregroundmusicinbars

Mobilediscothequeoperators/DJs

Mobilevideodiscothequeoperators

Halls

Musiconhold

Factories,industrialpremisesandoffices.

Audiojukeboxes

Audiojukeboxoperators

Videojukeboxoperators

Amusementcentres,poolrooms,squashcourts,swimmingpools,tenpinbowlingcentres

Commercialorprofessionalpremises–includingartgalleries,bars,clubs,elevators,foyers,functionrooms,funeralparlours,hairdressers,health/medicaloffices(egdoctors,dentists,chiropractors,massagetherapists,osteopaths,physiotherapists),hotels,libraries,lounges,motels,museums,receptionareas,retailstores,taverns,zoos,and/orsimilarestablishments.Thistariffalsocoverstheuseofprotectedsoundrecordingsfordemonstrationpurposesinelectrical,video/DVDrentalandhi-fistores.

Electricalandhi-fistores

Shoppingcentres,plazas,concourses

Publicvehicles(egaircraft,buses,charterboats,coaches,ferries,hirecars,lightrail,monorail,ships,taxis,trains,trams)

Restaurants,cafes

Sportsarenas,racetracks,showgrounds,outdooramusementparks

Outdoorrecreationalareas(egbeaches,parks)

Skatingrinks

Fitnesscentres,gymnasiums,healthclubs

Musicvideoclips

Musicvideoclipsinnightclubs

Concertvenues

Conferencerooms

A

B

C

D

DD

E1

E2

E3

F

FW

H

HM

I

J

JO

JW

K

Licencefeesarecalculateddifferentlyineachcategory(e.g.,feesmaybeflatfeesperannum,feesperpersonorpermachine,orfeesdeterminedbysizeofvenuedependingoncategory)–contactPPCAforfulldetails.Itisquitepossible,dependingonyourneeds,thatyoumayhavealicencewithanynumberofTariffse.g.,ahotelmayhaveanumberofbarareas(TariffM),restaurants(TariffR),night-clubs(TariffE1),gymnasium(TariffV),andvideojukebox(TariffW).

PPCAlicencesareavailabletocovertheusebypublicperformanceofprotectedsoundrecordingsand/orpublicexhibitionofmusicvideoclipsin:

Public performance licences

M

MW

N

P

R

S

SS

U

V

W

W-E

X

U

41

PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LTD

ACN 000 680 704 ABN 43 000 680 704LEvEL 4, 19 HArriS St, PyrMoNt NSw 2009 Po Box q20, quEEN viCtoriA BuiLDiNG NSw 1230t. 02 8569 1100 f. 02 8569 1183 [email protected] www.ppca.com.au

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