AUSTRALIAN TECHNOLOGY PARKANNUAL REPORT 2014

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MINISTER’S LETTER

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LOCATED ON A CAMPUS OF AROUND 14 HECTARES THAT WAS ONCE THE EVELEIGH RAILWAY YARDS, THE ADAPTIVE REUSE AND DEVELOPMENT OF ATP IS NOW THE CENTREPIECE OF THE REVITALISATION OF REDFERN.

CONTENTS

PART I INTRODUCTION

Chairman and Managing Director’s review 06

PART II YEAR IN REVIEW

Structure and performance 08

Highlights and achievements 09

Outlook for next year 09

PART III CORPORATE ACTIVITIES

Governance 10

Property Services 12

Conference and Events Centre 14

Heritage 16

Sustainability 19

Community Programs 20

Sale and development 22

PART IV FINANCIAL STATEMENTS

Director's Report 24

Director's Declaration 32

Auditor's Independence Declaration 33

Auditor's Independent Report 34

Financial Statements 36

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PART I: INTRODUCTION

Chairman and Managing Director's ReviewWe are pleased to present the 2013/14 Annual Report for Australian Technology Park Sydney Limited (ATPSL).

We again had a successful year recording a net operating surplus of $6.1 million before valuation gains or losses. This is the best operating performance in ATPSL’s history.This year income from both the events centre and property services business grew. Conference and events activity was up, reflecting our drive to capture new clients and events during the refurbishment of the Sydney Convention and Exhibition Centre. Revenue from leasing also increased, demonstrating our ability to attract and retain tenants and achieve rental growth comparable to market expectations. Our costs were substantially down reflecting the efficiencies we have achieved through corporate restructuring and sound operational and business strategies.

This year we focused on preparing for growth and future development. In addition to meeting our financial targets, we progressed several key initiatives including a Registration of Interest for the three remaining development sites. Also, two highly successful community programs, Eveleigh Market and Koori Job Ready, were transferred to local partners that are better aligned to build on these initiatives and take them to the next stage.

Our capital investment program was lower than previous years as a number of major projects were reconsidered. Our expenditure focused on critical projects that were delivered on time and to budget. These included a new internal signage project in the Locomotive Workshop, amenities upgrades, a replacement car parking payment system as well as other environmental and capital initiatives.

These projects had a positive impact on amenity and will provide good returns from our investments now, or over time. Our environmental initiatives have already demonstrated substantial savings in energy use and costs that will continue to provide good returns.

We continued to champion our heritage values and in March we passed a significant milestone with the Heritage Council of NSW adopting the ATP Conservation Management Plan and the Heritage Office commending our Heritage Asset Management Strategy. In May we also held two Heritage Community Days which were well attended by interested groups and the public. Throughout the year we met all of our heritage and environmental responsibilities, which included maintaining and returning a number of movable heritage items to the Park.

Our focus for the year ahead is on continuing our strong financial performance and delivering the opportunity to develop the vacant sites. The preparatory work through the Registration of Interest and our alignment with the NSW Government’s Central to Eveleigh Urban Renewal and Transport Program means we are set up well to deliver this in 2015.

We take this opportunity to thank our tenants, event clients, staff, heritage volunteers and local community members for their ongoing interest and support.

Dr Colin Gellatly AO Chairman ATPSL

Mr David Pitchford CBE Managing Director ATPSL

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PART II: YEAR IN REVIEW

STRUCTURE AND PERFORMANCE Australian Technology Park (ATP) is a 14 hectare business precinct located in Eveleigh, near Redfern Railway Station. It features a unique integration of heritage architecture, premium commercial space and conferencing facilities in campus-style grounds with open space, tennis courts and cafes. The Park hosts leading Australian and global technology, communication and science companies. It also has significant development potential, with three future development sites comprising more than 100,000sqm of additional floor space.

ATPSL is a not for profit company wholly-owned by UrbanGrowth NSW Development Corporation (UGDC). It is a company limited by guarantee and is responsible for managing and operating ATPSL in accordance with the objectives of the company’s constitution. A Managing Director and Board of Independent Directors oversee and govern the performance of the company.

ATPSL has two core revenue generating activities: leasing of commercial space and the management of a conference and events centre. To operate these units effectively, ATPSL provides property management services such as leasing, tenant interaction, facilities management, capital works, asset management, finance, IT, security, cleaning, maintenance and conservation. These are managed directly by ATPSL staff or indirectly through the engagement of contractors. As an active member of the local community ATPSL also engages in activities that promote positive community outcomes. These activities support the commercial aspects of the business and nurture strong community relationships.

On 1 October 2013 two business units of ATPSL, Koori Job Ready and Eveleigh Market, were transferred out of the company.

AVERAGE TENANT OCCUPANCY

ZERO WHS LOST TIME INCIDENTS

PARTNERSHIP SINCE 2009 EVELEIGH MARKET AND KOORI JOB READY SUCCESSFULLY TRANSFERRED

SUCCESSFUL RETURN AND RELOCATION OF 12 HERITAGE ITEMS

VISITORS TO HERITAGE

COMMUNITY DAYS

475 EVENTS AND

IN NET TRADING INCOME, THE BEST PERFORMANCE EVER

$6.1M140K VISITORS

2014 HIGHLIGHTS AND ACHIEVEMENTS

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OF REDUNDANT ELECTRONIC

EQUIPMENT DIVERTED FROM LANDFILL FOR RECYCLING

4 TONNES

LAUNCH OF SYDNEY SWANS PARTNERSHIP

62%

38%

OUTLOOK FOR NEXT YEARThe Business Plan for ATPSL for next year (to 30 June 2015) sets out how the company will continue its strong and stable financial performance. It also recognises that the company has undergone significant change in the last 12 months and that more change is inevitable. A decision has been taken by UGDC, as park owner, to further investigate selling land in the Park and these investigations will continue throughout 2014. In the interim, the focus for the next year is to optimise the value of ATP for the long term and this relies on maintaining or increasing the profitability of ATP’s revenue generating activities.

REDUCTION

REDUCTION IN ELECTRICITY

USAGE

IN GAS USAGE

Core Activities

Conferences and events

Facilities management

Commercial leasing

Comm

unity

Com

mun

ity

Community

140K VISITORS

NICTA ACHIEVES 5 ½ STAR NABERS RATING

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PART III: CORPORATE ACTIVITIES

COMPANY GOVERNANCE

Objectives and charterATP was established as an initiative of the University of New South Wales, the University of Sydney and the University of Technology (Sydney), with support from the NSW Government and the Federal Government.

From July 2000, the Park was owned and managed by the Sydney Harbour Foreshore Authority. It became a wholly-owned subsidiary of the Redfern-Waterloo Authority (RWA) in April 2005 until January 2012 when RWA concluded. Responsibility for ATP was handed to the Sydney Metropolitan Development Authority until 1 January 2013 and is now with UrbanGrowth NSW Development Corporation.

Ownership Timeline

VISION: To create a world-class technology precinct through leadership, innovation, sustainability and community engagement that embraces our cultural heritage.

The purpose of ATP is to provide an environment for collaborative research, knowledge sharing and development where companies can forge alliances and access support for commercialisation. The aim is for ATP to be fully developed within the next ten years, with an ultimate workforce of more than 9,000 employees, making the precinct a key driver for the area’s economic growth. The Park is well on its way towards this goal already it has a workforce of around 4,500 employees and is a regular venue for conferences and events.

The long term objectives of the Company are set out in its constitution. In light of the NSW Government’s intentions for ATP and the broader Central to Eveleigh Urban Renewal and Transport Program, these objectives were reviewed in early 2014 by the ATPSL Management Team and the ATPSL Board of Directors. Subject to endorsement by UGDC, the Objects will be updated in 2014-15 to reflect ATPSL’s current and transitioning role.

The science and technology objectives of existing tenants will continue to be supported and new Objects reflecting the focus of the company on environmental sustainability and heritage outcomes will be introduced. The new Objects will continue to prohibit the distribution of dividends, as this is essential to the nature of a non-profit company limited by guarantee, and new Objects that reflect the focus of the company on environmental sustainability and heritage outcomes will be introduced.

Board of directorsThe ATPSL Board of Directors is responsible for corporate governance including setting the strategic direction, establishing goals for management and monitoring achievements. In 2013-14 the Board met six times.

On 30 June 2014 the Directors are: Dr Col Gellatly AO (Chairperson) David Pitchford CBE (Managing Director) Ms Lucy Turnbull AO Mr Richard Johnson MBE Mr John Mullaly The Company Secretary is Mr Duncan Read.

Mike Collins retired as a Director in March 2014 and Sean O'Toole was replaced as Managing Director in September 2013.

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Audit and risk managementAuditing activities are overseen by an independent Audit and Risk Management Committee which assesses the integrity of business operations the adequacy and appropriateness of internal policies, as well as controls and processes. The Committee meets quarterly to review financial reports and accounting matters; oversee the audit programs and recommendations; identify and monitor risks and management strategies and assure the Board that controls, policies and audits are functioning effectively.

Executive teamThe Executive comprises ATPSL senior managers and is responsible for the day-to-day management of the company. It is specifically responsible for implementing the business plan and corporate objectives as well as strategies and policies determined by the Board, its Committees and the Managing Director.

The Executive Team meet monthly and address all operational issues including progress against the business plan, financial performance, Board and sub-committee actions, WHS matters and staffing issues. On at least a quarterly basis the Executive review and update the ATPSL Strategic Risk Register and ensure that progress is made against all of its actions.

On 30 June 2014 the Executive is:

Duncan Read General Manager James Barry Director Finance & Corporate Services Ruby Chronis Director Sales & Marketing Mary Chapman Head of Leasing Gary Love Head of Facilities

Business planA Business Plan is prepared annually and establishes financial performance targets for each business unit.

The Business Plan for the year ending 30 June 2014 set the company’s financial targets and also established three other key business strategies. Firstly, to prepare the future developments sites for sale; secondly to rationalise its corporate social responsibilities by transferring Eveleigh Market to Carriageworks and Koori Job Ready to the National Centre for Indigenous Excellence and thirdly, to review the returns from the Conference Centre.

In 2014 the Company performed well against its Business Plan. It met the key financial targets and implemented each of the three business strategies.

ValuesThe ATPSL Staff Code of Conduct and policies reflect the principles of ethical decision-making. The Staff Code of Conduct is provided to new employees and is promoted to existing staff to enforce our key values of integrity, diligence, value for money and accountability. Our policies and practices seek a ‘beyond compliance’ outcome that is performance-driven.

Work health and safetyATPSL upholds the highest standards of work health and safety to ensure the wellbeing of staff and all those with whom we do business. Our operations are managed in accordance with a Work Health Safety and Environmental (WHSE) Plan that is monitored bi-monthly by the Board and audited twice a year. Implementation of the plan is monitored by a work health and safety consultative team that meets monthly and continues to develop systems that will improve safety of our staff and visitors. In April 2014 the Board adopted a WHSE Framework that clearly communicates WHSE responsibilities and promotes an awareness culture in our staff. This is reinforced with our induction programs and staff training.

Procurement The company implements a Procurement Policy to ensure work and services respect the principles and guidelines required by NSW Government. Key probity principles underpin our practices that at all times seek value for money, efficiency, equity and effective competition.

Access to information ATPSL proactively provides public access to information in accordance with the Government Information (Public Access) Act 2009 (GIPA). In 2013-14, we received no formal applications under the Act nor were any investigations or applications for review submitted. We have a yearly review program for the active release of information to the general public including a Policies Register featured on the ATPSL website.

ATPSL is also committed to complying with the requirements of the Privacy and Personal Information Act 1998 through its operations.

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PROPERTY SERVICESATPSL is responsible for the day-to-day management of the Park. The precinct includes eight buildings and three potential development sites. The current buildings under ATP management include the Locomotive Workshop, Biomedical Building, International Business Centre (IBC) and the NICTA Building. Other buildings on site include Media City (Seven Network/ Global Television/ Pacific Magazines), the Transport Management Centre and the National Innovation Centre.

Our stakeholders include tenants, contractors and suppliers, event clients, national and international delegations, study tours and local residents. More than 100 organisations employing approximately 4,500 people currently occupy the Park.

The Property Services team responsibilities include:

achieving commercial rentals on all tenancies and car parks;

minimising vacancies;

optimising net income;

ensuring compliance with all relevant legislation;

ensuring all physical assets are properly maintained;

arranging necessary upgrades and refurbishments; and

ensuring maximum capital value of the property assets including car parks.

LeasingThroughout 2013-14 our tenant occupancy levels remained high and stable between 97% and 100%. Renewal of the Top Education sub lease for a seven year term resulted in an increase in the lease expiry profile of the Park and an uplift in revenue. In addition, there was a 6% increase in car parking revenue compared to the previous year.

Our tenants include large, medium and small companies including information technology, research, development, government, media, education and both blue chip and start-up businesses.

We welcomed four new firms to the Park during the course of the financial year (Wilson Learning, Education Training and Employment Australia, Unitrends Australia and Transport Heritage NSW) as well as renewing many long standing sub leases with existing tenants including Top Education, 3801 Ltd, Odour Unit, Art of Multimedia, Dejan SEO, Laissez-Faire Catering, Universal Network Technologies and shorter term leases in the International Business Centre.

A new property management system VISION was implemented during the course of the financial year to improve the management of ATPSL’s head leases and sub leases and to enhance the processes and reporting relating to revenue collection.

Facilities managementIn 2013-14 we continued to monitor an Asset Management Plan. This identifies and prioritises the works required to maintain the buildings and grounds, as well as the mechanical systems and facilities that support our operational activities. A major component is the Capital Works Program focusing on critical projects to maintain and enhance the sites value.

In 2014 new internal wayfinding signage was installed to significantly enhance the ability of visitors to navigate around the Locomotive Workshops. The colourful signage effectively integrates modern practical signage technology with a heritage backdrop and has been well received by tenants and visitors.

In December 2013, the property and asset management system was migrated into a more effective database to improve the management of maintenance and replacement planning for assets. This will ensure successful tracking and delivery of our Capital Works Program.

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ATP INNOVATIONS RECOGNISED AS BEST INCUBATOR IN THE WORLDATP Innovations was crowned the 2014 Incubator of the Year at the NBIA International Conference on Business Incubation Global Awards in New Orleans in May 2014.

Located in the National Innovations Centre, ATP Innovations was selected by industry peer professionals based on its overall excellence in delivering business building services and its successful track record of building high growth technology companies with global reach. It also took home the Dinah Adkins Technology Focus Incubator of the Year Award.

Over 300 software, hardware and life science start-ups have been helped by ATP Innovations since 2000. Together, they have raised over $113 million in capital since 2006. In 2013, ATP Innovations’ companies had combined revenue of over $45 million, half of which was export related. They raised $8 million in equity capital, hired 69 new employees, launched 80 products and had seven patents granted.

Hamish Hawthorn, CEO of ATP Innovations, was thrilled to win the prestigious award saying, “We are honoured to be the first Australian technology incubator to be recognised

as the world’s best - it is a credit to both the hard work done by the team at ATP Innovations and recognition of the strength and significance of Australia’s start-up ecosystem.

"We owe our success to many factors - the support of our shareholder universities, the way the founders of the companies at ATP Innovations help each other, the experienced mentors helping our companies. Sharing the entrepreneurs' journey and being part of their success is the best part of it."

The awards recognised the on-going success of ATP Innovations in providing companies with assistance across a wide range of areas, including the negotiation of technology licences, insight into government support and financial assistance, access to a strong network of investors and advisors, as well as strategic guidance. Seven ATP Innovations companies have gone on to sell their businesses since 2006.

Mr Hawthorn added: “This award is a great endorsement of both ATP Innovations and Australia. It underlines the huge opportunity we have to capitalise on our human capital and strong research-base to create world-leading companies.”

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Expos and business developmentATPSL participated at the Australian Business Events Expo in August 2013 held at the Sydney Convention & Exhibition Centre. ATPSL met with many new and existing clients to promote ATP as a high quality, unique and flexible venue that can accommodate a wide variety of events. The Spice Magazine Stand Awards recognised ATPSL as one of the best small stands at the show.

In February ATPSL also participated at the Asia-Pacific Incentives & Meetings Expo in Melbourne (AIME), a popular industry event that attracts suppliers and buyers from across Australia, Asia-Pacific and the globe. As a result, ATP generated increased business opportunities like a successful contract with Hurricane Events for an event held in June 2014.

CONFERENCE AND EVENTS CENTRE As one of Sydney’s most unique venues, the number and scale of events held at ATP grew again in 2013-14. The strategic sales and marketing activities together with the focus on capturing market share has allowed ATPSL to capitalise on new business opportunities and develop new client relationships.

Key eventsThe Conference Centre continued to attract events both nationally and internationally with more than 140,000 delegates visiting the Park to attend 475 separate events over the year. Key events included:

Event Number of attendees Month

Austrade Destination Innovation Conference 300 July 2013

Sydney InDesign 15,000 August 2013

Brillient Portfolio Construction Forum 400 August 2013

Langhams Wine Tasting event 600 September 2013

Intelligent Transport Systems Summit 400 September 2013

Qantas Safety Conference 500 October 2013

Chifley Research Centre – Building a Progressive Future Conference 500 November 2013

NSW Business Chamber of Commerce Awards 900 November 2013

University of Sydney 8th Asian Aerosol Conference 400 December 2013

UN International Women’s Breakfast 1,800 January 2014

One Fine Day Wedding Fair 20,000 February 2014

Future Schools Conference 500 March 2014

MYOB Conference 700 March 2014

Biennale Launch Party 2,000 March 2014

Gartner UK 1,500 April 2014

Spinal Cords Injuries Australia Expo 1000 April 2014

Nike Soccer World 1000 May 2014

International Fertilizer Industry Association Conference 1000 May 2014

Pharmacy Guild of Australia Conference 800 June 2014

5th Congress of International Society of Applied Psychology 400 June 2014

Finders Keepers Market 20,000 June 2014

Sydney Children’s Hospital Foundation Dinner 380 June 2014

This year, the Conference and Event Centre strategies have responded to highly competitive market conditions by driving client engagement, offering flexibility for event needs, promoting technological developments and increasing face to face exposure at industry events. This has helped increase total event numbers and secure repeat business as well as attracting new clients.

DRIVING INNOVATION THROUGH DESIGNThe best in innovative and creative design was showcased at Sydney InDesign, a cutting edge event that attracted 15,000 industry leaders to ATP in August 2013.

Held in the Exhibition Hall, the event attracted the best designers, architects and creatives and provided a platform for over 500 high-end commercial brands and 117 exhibitors.

The event profiled the future for design and gave leaders in the industry a chance to share ideas, collaborate, socialise and curate. Along with presenting different design products and disciplines, it was also an avenue to explore design culture and brand in a technology focused and innovative world.

Ruby Chronis, ATPSL’s Director of Sales and Marketing, was thrilled to attract such a bold and pioneering event.

“The Exhibition Hall is such a unique venue and it served as the perfect backdrop for Sydney InDesign. The event gave attendees the opportunity to build on industry knowledge, develop strong relationships and discover new technology and this is what ATP as a business park is all about.”

To drive the best in the industry, a drawcard at Sydney InDesign was a collaborative project bringing exhibitors and delegates together to build impressive installations that demonstrated space, visual illusions, projections and interaction. Some of the Sydney Indesign 2013 exhibitors included AWM, Aquabocci, Big Ass Fans, Bolon by The Andrews Group, Caroma, Corporate Culture, Herman Miller, James Richardson, KE-ZU, Living Edge, PGH Bricks & Pavers, Polyflor, Polytec, Reece, Spence & Lyda, Tait and Zip Industries.

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HERITAGE ATPSL recognises the importance of our historical past and celebrating the Park’s rich history. As the site of the former Eveleigh Railyards, the maintenance of ATP’s 130-year-old buildings and heritage assets is a crucial element of the Park.

Conservation Management PlanThe Heritage Council of NSW formally endorsed ATPSL’s Heritage Conservation Management Plan (CMP) on 20 March 2014. The CMP provides a solid framework for heritage planning and conservation works at ATP. The CMP was prepared in accordance with the NSW Heritage Office Guidelines and the principles of the Burra Charter by expert heritage consultants at Godden Mackay Logan, with knowledge and experience of International Council on Monuments and Sites.

Heritage Asset Management StrategyIn January 2014 ATPSL received a letter of commendation from the Office of Environment and Heritage for our Heritage Asset Management Strategy (HAMS). HAMS is a time-bound action plan for heritage conservation and interpretation. This commitment to heritage was also recognised with ATPSL named a heritage finalist at the 2013 NSW Green Globe Awards.

Successful relocation of heritage itemsATPSL successfully relocated 12 items held in storage that were identified by heritage experts as surplus or of low heritage value. Instead of disposing of these items ATPSL consulted with heritage groups and the local community and was able to find them all new homes. One item, the Henry Berry & Co Hydraulic Pipe Bender, was returned to ATP for display in Bay 10 of the Locomotive Workshop and other surplus items were transferred to other organisations for restoration, re-use or display.

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ATP heritage community daysTo promote the important history of the Park, ATPSL held two Heritage Community Days on 16 and 17 May 2014. The event attracted more than 400 people with heritage tours conducted in Bays 1 & 2 and the Pump House, a blacksmith demonstration by Wrought Artworks and train displays courtesy of 3801 Ltd. ATP received excellent media coverage for the event including ABC 702 and positive feedback from the community.

Heritage volunteer programATPSL continued to run its Heritage Volunteer Program that engages interested community members to volunteer in customer service including heritage tours and the cataloguing and maintenance of machinery and equipment. We are grateful to have the services of a past Eveleigh Railway worker, Richard Butcher, and the dedication of volunteers John Gibson, Mohamed Chami, Alida Eiserman, Mani Sao, Julia Martin and Jillian Bartlett who all supported us enthusiastically throughout the year.

Adapting heritageATP is unique in its adaptation of heritage buildings. By avoiding demolition and retaining the Locomotive Workshop and International Business Centre in their original form, this has made them more energy efficient. ATPSL is minimising significant adverse energy and construction impacts on the environment. The two buildings are living testament that “the greenest building is one that already exists”.

Operating blacksmithWrought Artwork has been a tenant of Bay 1 & 2 since 1992 and continue the 130 year old black smithing history of the site. Visitors can experience the traditional tools, equipments and craftsmanship in operation most days, and during scheduled heritage tours.

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HERITAGE DAYS TRANSPORT VISITORS BACK IN TIME Over 400 visitors to ATP in May 2014 were transported to a bygone era of steam trains and handmade machinery at the ATP Heritage Community Days.

Held over two days, the community event showcased blacksmithing, locomotive machinery, train displays and guided heritage tours.

As part of the tours, former Eveleigh Railyards Engineer Richard Butcher and volunteers John Gibson and Mohamed Chami, took people on a journey of what the railway yards used to be like whilst tenant Wrought Artworks kept the atmosphere alive by forging red hot steel with traditional tools for awed onlookers as part of a Blacksmith demonstration.

3801 Ltd welcomed everyone aboard to explore restored art deco train carriages and engines dating from the 1930s outside the impressive Large Erecting Shed where the locomotives and carriages are restored.

Local Alexandria resident, Desley Haas, said the tours were very enjoyable and informative. “By the time we arrived at the Locomotives at the Large Erecting Shed, it was perfectly clear what life would have been like here.

“After seeing and imagining how much hard work, with simple tools and huge steam-driven machines, and how much care and attention to fine detail must have gone into creating a Locomotive, it is no wonder so much passion and fascination exist today for the old steam trains.”

From 1886 until the 1980s, when the Park was still the Eveleigh Railway Yards and one of Australia’s largest industrial complexes, the Blacksmith Workshop produced equipment, tools and parts for the maintenance and manufacture of steam locomotives in Australia.

The workshop has been kept predominately in its original state and is easily accessible to the public on the doorstep of Redfern Station.

The Heritage Community Days offered the public a special insight into what the workshop was like during its heyday. ATPSL has maintained the Blacksmith Workshop original character and integrated modern, viable uses to be the successful business space it is today.

Richard Butcher has been giving public tours of the area since the improvement works were finished. He worked at the yards in the 1950s and '60s saying it is vital that this area be maintained and made available to the public as it is such an important part of Sydney’s history.

“The Eveleigh Rail yards was one of the largest of its kind and produced some of the finest steam locomotives in the world. This space represents a unique part of Sydney and Australia’s industrial heritage and it is fantastic that the public can now access and be involved in it,” said Mr Butcher.

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SUSTAINABILITYFollowing more than a century of intensive industrial use at the Eveleigh Locomotive Workshops ATPSL is focused on minimising the environmental impact of the Park. Like safety, sustainability has become a consideration in every business decision.

The 2010 Sustainability Strategy devised in consultation with the NSW Office of Environment and Heritage is implemented through the commitment of our staff, tenants and other stakeholders.

NABERS ratingsNational Australian Built Environment Rating System (NABERS) energy efficiency ratings for the Locomotive Workshop building have been improved from -½ star in 2010 to 3 stars in 2013. As a signal of other successful initiatives the NABERS ratings for the NICTA Building increased from 4½ stars in 2010 to 5½ stars in 2013 a rating shared by only 16 other buildings in NSW.

Energy efficiencyFundamental to ATPSL’s Sustainability Strategy is the principle that “there is nothing more efficient than off”. ATPSL has reduced electricity consumption across the Park by 38% and gas by 62% since 2010. This has been achieved by optimising delivery of mechanical services only when they are needed. Initiatives like solar electricity, drought resistant landscaping, automated irrigation, waterless urinals and sensor lighting have made a measurable impact on the buildings’ resource efficiency performance. The introduction of a utilities management dashboard that gives real-time visibility of energy consumption in specific zones helps to identify inefficiencies.

Sustainability and Innovation CommitteeThrough our tenant-based Sustainability & Innovation Committee, ATPSL facilitates a cost-free quarterly e-waste service. Since August 2012, over 4 tonnes of redundant electronic equipment has been diverted from landfill for recycling. The Committee has proven to be an effective mechanism for the sharing of sustainability experiences and stimulating new initiatives like car share (GoGet) vehicles being based at the Park.

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COMMUNITY PROGRAMSATPSL recognises the importance of working with the community to strengthen relationships and to create positive change in the local area. In 2013/14, ATPSL supported a number of important community initiatives:

Sydney SwansATPSL announced an exciting new partnership with the Sydney Swans in December 2013 to sponsor its Indigenous Community Program. A two-year sponsorship agreement means ATPSL will fund, facilitate and help to coordinate the Club’s school-based outreach initiatives. Sydney Swans players have already visited the local area to meet with children from the community to promote a healthy lifestyle.

Souths CaresATPSL is a proud and long-standing supporter of the South Sydney Rabbitohs charity arm Souths Cares. Souths Cares programs give children and young people from Redfern and the surrounding areas the opportunity to take part in a series of health and education workshops to aid social and physical development.

Alexandria Park Community SchoolATPSL understands the importance of education through innovation and technology. That is why the Park continues to strengthen its relationship with Alexandria Park Community School. In 2014, ATPSL provided sponsorship to the girls’ basketball team by providing uniforms. ATPSL also negotiated mentoring opportunities for students with tenants including ATP Innovations and SpeeDx to help students achieve their goals. We also offered in-kind use of our facilities for staff training and student development.

Playgroup in the ParkPlaygroup in the Park is a popular community event that attracts hundreds of families to Redfern Park for fun activities and entertainment. ATPSL sponsored the event in June 2014 to help raise our profile, engage with the community and build networks with other local organisations.

Event sponsorshipATPSL supported and hosted a number of important and high profile events including the UN International Women’s Breakfast, the Sydney Children Hospital Foundation's Gala Dinner, and the Biennale launch party. This support not only helped community initiatives but our sponsorship benefits also positively promoted the profile of ATP and brought thousands of visitors to the Park.

Since their inception, both Eveleigh Market and the Koori Job Ready Program have become important and thriving initiatives in the Redfern community. On 1 October 2013, both programs were transferred from ATPSL to organisations better suited to managing their ongoing needs. The management of Eveleigh Market was transferred to Carriageworks and Koori Job Ready is now under the umbrella of the National Centre for Indigenous Excellence (NCIE).

Eveleigh MarketEveleigh Market is considered one of the best Farmers’ Markets in Australia. Every week, more than 3,000 people visit the market to stock up on fresh, seasonal produce direct from the farm.

ATPSL supported Eveleigh Market for four years and was integral to creating the popular community hub it is today. Due to the Market’s location opposite Carriageworks, an important contemporary arts destination, it was a natural fit for the ownership to be transferred. ATPSL is proud of its role since the markets inception and continues to build on its strong relationship with Eveleigh Market and Carriageworks.

Koori Job ReadyKoori Job Ready offers training and job opportunities for Indigenous people in hospitality and construction. ATPSL supported Koori Job Ready since 2011 with the program training hundreds of Aboriginal people and creating over 1,000 employment opportunities since its inception.

Koori Job Ready is well aligned to the NCIE vision and the move to a locally based Indigenous institution has given the program more

opportunities to create jobs, network with industry partners and give the best support it can to students. As the program evolves, the new partnership with the NCIE will better fit its mission and business model.

Both Eveleigh Market and Koori Job Ready have been inspiring fixtures at ATPSL and are a central part of the local community. ATPSL is excited about the new opportunities for both initiatives and is looking forward to working with them both on future projects.

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NEW ERA FOR EVELEIGH MARKET AND KOORI JOB READY

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SALE AND DEVELOPMENTATP has been progressively developed since its establishment in 1996. The addition of the Biomedical Building in 2000, the National Innovation Centre in 2006, NICTA in 2008 and Media City in 2009 has seen hundreds of new businesses locate here and has created over 4,500 jobs. The further development and potential sale of land in the Park by the NSW Government is being investigated as a way to increase its employment potential, drive growth and facilitate urban renewal outcomes.

In November 2013, local and international investors, developers and tenants were asked to register their interest on developing the three remaining development sites at ATP, being:

Lot 8 – site area 1,937 m2 Lot 9 – site area 8,299 m2 Lot 12 – site area 11,850 m2

The future development sites are highlighted in the map below.

The registration of interest has ended and a number of submissions were received. In the first half of 2014 these were reviewed and UGDC met with respondents. The NSW Government is now considering the matter in light of the broader objectives for ATP in the Central to Eveleigh Urban Renewal and Transport Program.

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ATP is the size of 26 football fields and more than 100 businesses are located here, which means that some people have trouble finding their way. The installation of bright, modern and innovative signs in the Locomotive Workshop has made it easier for visitors to navigate around the space.

Built in 1887, the Locomotive Workshop is the site of the old Eveleigh Railyards. Following readaptation, the Park is now a thriving business hub with 4,500 people working on site and thousands more visiting every week.

“We know it can sometimes be hard finding your way around the Park so these signs make it easy to find what you’re looking for – not just within the Locomotive Workshop but within the whole Park and around Redfern and Alexandria too,” said Project Manager Mal Hartley. “The signs are colourful, bright and innovative and mix a modern touch with a heritage backdrop so when people walk into the Locomotive Workshop they know exactly where they are.”

Beata Kade from Art of Multimedia has been a tenant at ATP for 14 years. She is thrilled with the new signage saying: “The Park is such a unique space and there are many people who may be visiting us for the first time, whether to meet with a tenant or to attend an event. The new signage will help people find their way around and aesthetically it looks stunning against ATP’s heritage architecture.”

The Locomotive Workshop Bays are numbered with large suspended coloured cubes that hang from its cavernous roof. A bright neon sign perches over the Exhibition Hall and a photo of former Eveleigh Workers building train equipment is now imprinted on the wall of Bay 3 right next

to the very spot it was taken. The signs clearly label buildings and offices and incorporate the site’s railway heritage and industrial past, giving people a connection into the building’s former use.

NEW SIGNAGE MIXES THE OLD WITH THE NEW

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PART IV: FINANCIAL STATEMENTS

DIRECTOR’S REPORTThe Directors of ATPSL (“The Company”) present their report together with the financial report of the company for the year ended 30 June 2014 and the Auditor’s Report thereon.Board of DirectorsDuring the reporting period the Directors of the Company were:

Dr Colin Gellatly AOChairman B Ag Ec (Hons) UNE, M Comm (Hons) UNSW, Ph D NC State USA, FIPAA,FANZSOG

Colin Gellatly was formerly Chair of the Redfern-Waterloo Authority and was appointed Director and Chair of ATPSL in July 2007. He has held a number of senior management positions within the NSW public service including Executive Director for the Department of Agriculture and Director General of the Premier's Department, Department of Land & Water Conservation and the Department of Industrial Relations and Employment.

He currently holds some part time positions including Independent Chair of four Community Consultative Committees in the mining sector and Chair of the Audit Committee for Newcastle City Council.

Mr David Pichford CBE LVOManaging Director from 30 September 2013

David Pitchford, CEO of UrbanGrowth NSW and UrbanGrowth NSW Development Corporation as well as Managing Director of ATPSL, started his career in the Office of the Tasmanian Governor. An expert in major projects delivery, he has held a variety of roles including CEO of the UK Major Projects Authority and Head of Profession for Government Major Projects, CEO of the Palm Jumierah Development in Dubai, CEO of the City of Melbourne and Chief Operating Officer of the Melbourne 2006 Commonwealth Games. He is a Commander of the Order of the British Empire (CBE), Lieutenant of the Royal Victorian Order (LVO) and was awarded the Centenary of Federation Medal.

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Sean O’Toole Managing Director to 30 September 2013Dip T&CP, Dip Env Studies, FAICD, FRAPI

Sean O’Toole was the Managing Director of ATPSL up until 30 September 2013. He was at the time Chief Executive of UrbanGrowth NSW, a role he held since 1996. Prior to joining UrbanGrowth NSW he held senior positions in urban planning at both state and local government levels. He is a member of the Australian Property Institute, a Fellow of the Australian Institute of Company Directors and has qualifications in real estate valuation, town planning and environmental management.

Ms Lucy Hughes Turnbull AODirectorLLB (Sydney), MBA (UNSW)

Lucy Hughes Turnbull AO is a businesswoman and philanthropist with a longstanding interest in cities, technology and social innovation. She chairs the Committee for Sydney and is Chair of Prima BioMed Limited; an ASX-listed biomedical company, and is a director of Sealink Travel Group Limited. She is currently a board member of the US Studies Centre at Sydney University, the Redfern and Turnbull Foundations and the Grattan Institute. She was the first female Lord Mayor of the City of Sydney from 2003-04. In 2011 she became an Officer of the Order of Australia for distinguished service to the community, local government and business.

Mr Richard Johnson AO, MBEDirectorM Phil (UCL) B.Arch Hons 1 (UNSW) LFRAIA

Richard Johnson is an award winning architect and a director of Johnson Pilton Walker architects. He was awarded the 2008 RAIA Gold Medal for his exceptional body of work and his contribution to the profession. He is a Professor in the Faculty of the Built Environment at UNSW, a Life Fellow of the Australian Institute of Architects and a member of the Design Institute of Australia. He advises Parliament House Canberra on the future of the building and is a member of the City of Sydney Design Advisory Panel, Public Art Advisory Panel and the Eora Journey Public Art Working Group.

He has served on the Boards of the Redfern-Waterloo Authority and the Australian Architects Association. Mr Johnson holds a Bachelor of Architecture from UNSW

and a Masters of Philosophy (Town Planning) from University College London. In 1976 he was made a member of the Order of the British Empire and in 2014 was awarded an Order of Australia for his contribution to architecture.

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Mr John MulallyDirectorBA LLB (Hons)

John Mulally has over 40 years experience as a lawyer specialising in major property and infrastructure projects. He has acted for major Australian and off-shore developers and investors, Australian and State Government instrumentalities and off-shore Governments. This has included the acquisition, development and sale of major projects in all capital cities of Australia as well as in Vanuatu, Jakarta, Bangkok, Singapore, Tokyo, London, Paris, St Petersburg, Kiev, Moscow and New York. He has also advised on major energy projects in Australia and off-shore. He is currently advising on major infrastructure and renewable energy projects in China and Africa. John's role in these projects includes the funding structure, legal requirements and the integration of the commercial with the legal outcomes required to achieve project development.

Mr Michael Collins Director to 7 March 2014 FRICS

Mike Collins is a Sydney property practitioner. He has been involved in property economics, real estate valuation, property consultancy and asset management for over 35 years, professionally qualified in property economics and valuation. He runs his own property advisory company based in the Sydney CBD. Mike was a former Chairman of the Heritage Council of NSW and a former National and NSW President of the Australian Property Institute. Mike Collins retired as a Director of ATPSL in March 2014 after nine years of service.

The number of meetings of the Company’s Board of Directors during the year ending 30 June 2014 and the number of meetings attended by each Director is set out below.

Board meetings Jul 13 Oct 13 Dec 13 Feb 14 Apr 14 Jun 14 Total

Colin Gellatly þ þ þ þ þ þ 6/6

Sean O’Toole þ 1/1

David Pitchford þ þ ý þ ý 3/5

Lucy Hughes-Turnbull þ þ þ þ þ ý 5/6

Richard Johnson þ þ þ þ þ þ 6/6

John Mulally ý þ ý þ þ ý 3/6

Michael Collins ý þ þ þ 3/4

The April 2014 Board Meeting was held out of sessions by Circular Resolution

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Company SecretaryUp until 22 July 2013 the Company Secretary was Mr Chris Saunders. On 22 July 2013 Duncan Read, General Manager of ATPSL was appointed Company Secretary.

Mr Duncan Read Company Secretary and General Manager BSc (Hons), Dip TP, MPIA, AAICD

Duncan Read is a manager, advisor and consultant with nearly 20 years experience in property development and planning, including 10 years with executive and managerial responsibilities. Duncan has qualifications in town planning and is a member of the Planning Institute of Australia and Royal Town Planning Institute. His former roles include Operations Manager for UrbanGrowth NSW, Project Director for Urbex Pty Ltd and Associate at JBA Planning Consultants. Duncan is an affiliate to the Australian Institute of Company Directors.

Audit and Risk Management CommitteeThe Company’s Audit and Risk Management Committee (ARMC) is conducted in accordance with the NSW Government Treasury Policy Paper 09/05. The number of ARMC meetings held and attended by members last year is set out below.

ARMC meetings Jul 13 Sept 13 Dec 13 Apr 14 Total

Ms B Boezeman AO þ þ þ þ 4/4

Ms Victoria Weekes þ þ þ þ 4/4

Ms Siang How þ 1/1Ms How was appointed March 2014

Company ParticularsATPSL is a public not for profit company limited by Guarantee and incorporated in Australia. The address of the registered office is:

Australian Technology Park Sydney Limited Suite 3220 Locomotive Workshop 2 Locomotive Street Eveleigh NSW 2015

Principal Activity The Company operates a 14 hectare technology park on the site of the heritage listed old Eveleigh Railway yard. The principal activity during the financial year was to manage the operations of ATPSL in accordance with its Constitution. This includes promoting innovation through the management of leases to technology and scientific research organisations and related businesses; the provision of convention and exhibition facilities; and the maintenance and capital investment in the park and its related services and infrastructure. For part of the year, the company also managed Eveleigh Market and Koori Job Ready, an Aboriginal employment program. These are local, social and community initiatives that were transferred out of the business on 1 October 2013.

ObjectivesThe long term objectives of the Company are set out in its Constitution and relate to the maintenance and operation of a science and technology park that links

businesses and encourages innovation, education and training. This is primarily achieved in the short term through the leasing of space to businesses in accordance with a defined set of entry criteria, and managing and operating a conference centre within the Park.

Property Management and DevelopmentOver the last year, the property services team reduced outgoings and increased revenue from rentals.

The mix of tenants is a balance between large, medium and small companies including information technology, development, research, government, media, education and blue chip and start-up businesses. New firms continue to make a positive contribution towards a vibrant community. The leasing market for ATPSL has steadily improved and occupancy rates averaged 97% over the year.

Conference and Events CentreConference Centre revenue increased by $700,000 during the current year as compared to 2012-13. This increase reflects a strong sales and marketing effort over the year and the success of the company in retaining long standing clients and attracting new events to ATP. Our campaigns continue to target national events like trade shows, multi-day conferences, special events, gala dinners, product launches, entertainment and media events. In the year ending 30 June 2014 the Centre hosted a number of major events including the Sydney Children’s Gala Dinner, the International Women’s Breakfast and Finders Keepers.

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Community programsATPSL recognises the importance of working with the community to strengthen relationships and to create positive change in the local area. In 2013/14, ATPSL supported a number of important community initiatives*

Review and result of operations Performance against the key financial indicators used by the Company are summarised below:

The net surplus from ordinary activities for the year excluding valuation gains and losses amounted to $6.1m. This is an increase of $0.4m compared to the previous year (2013: $5.7m).

The Company has a net positive liquid assets postion of $9.9m at 30 June 2014 (2013 : $2.4m) an improvement of $7.5m. This improvement takes into account the repayment of $5.0m in debt outlined below.

Over the year capital works expenditure of $1.2m included works to the Locomotive Workshop signage, Locomotive Workshop bathrooms, Conference Centre carpets and the upgrade of our CCTV. Other projects to enhance site amenity and value were also implemented.

Debt positionThere is a loan agreement between the Company and UGDC. At 30 June 2014 the loan balance was $20m. This is down from $25.006m in June 2013. A repayment of $5m was made during the year in accordance with the Board approved debt reduction strategy.

DividendsThe Company is a not for profit entity limited by guarantee in accordance with its Constitution. To this end it does not pay dividends and all surplus funds are reinvested in the Company.

Liability of membersIn accordance with the Company’s Constitution the liability of members is limited in an amount not exceeding $20.

State of affairsIn the opinion of the Directors, there were no significant changes in the state of affairs of the Company that occurred during the financial year under review, other than the transfer of Eveleigh Market and Koori Job Ready that were foreshadowed in the business plan and strategies. This occurred in October 2013 and had no material impact on the business.

*See pages 20 for details

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Environmental regulationThe Company’s operations are subject to various environmental regulations under both Commonwealth and State legislation, which set the minimum requirements that the Company must meet. ATPSL has established and implemented a comprehensive and detailed Environmental Management Plan for the ATP site.

The Company monitors compliance with environmental regulations and the Directors are not aware of any breaches during the period covered by this report.

Likely developmentsIn 2013-14 the Company explored opportunities to sell the vacant development sites in the Park (Lots 8, 9 and 12). This was carried out through an open Registration of Interest (ROI) that invited prospective developers, tenants or investors to respond to the sale offer.

The ROI responses are now being considered in light of the objectives of NSW Government in the broader Central to Eveleigh Urban Renewal and Transport Program.

Auditor’s independence declaration The auditor’s independence declaration is attached and forms part of the Directors’ Report for the year ended 30 June 2014.

Directors benefitsSince 30 June 2014, no Director has received, or has become entitled to receive a benefit because of a contract that the Director, a firm of which the Director is a member, or any entity in which the Director has a substantial financial interest has made (during the year ended 30 June 2014 or at any other time) with:

a) the Company, or b) an entity that the contact was made or when the Director

received, or became entitled to receive, any benefit (if any)

Indemnification and insurance of officers and auditorsDuring or since the financial year, the Company has not indemnified, or made a relevant agreement for indemnifying, against liability of any present or former officer or auditor of the Company as contemplated by subsections 309A (1) and (2) of the Corporations Act 2001.

During the financial year, the Company paid a premium under a contract of Directors and Officers Insurance. Disclosure of the nature of the liability and the amount of the premium is prohibited by the confidentiality clause of the contract of insurance.

Rounding offThe Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the Financial Report and Directors’ Report have been rounded to the nearest thousand dollars, unless otherwise stated.

This report is made in accordance with a resolution of the Directors made pursuant to S295(5)(a) of the Corporations Act 2001.

Signed on behalf of the Directors,

David Pitchford CBE Managing Director, ATPSLOn 19 September 2014

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Directors Declaration

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Auditor’s Independence Declaration

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Auditor’s Independence Report

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Statement of Comprehensive IncomeFor the year ended 30 June 2014

2014 2013

note $'000 $'000

Expenses excluding losses

Operating expenses

Employee related 2(a) (2,590) (2,955)

Other operating expenses 2(b) (12,538) (12,719)

Depreciation and amortisation 2(c) (3,269) (2,831)

Finance costs 2(d) (1,573) (2,178)

Total expenses excluding losses (19,970) (20,683)

Revenue

Sale of services 3(a) 24,203 24,383

Investment revenue 3(b) 924 1,079

Grants 3(c) 600 600

Other revenue 3(d) 370 372

Total revenue 26,097 26,434

Gain/(loss) on disposal 3(i) (82) -

Other gains/(losses) 3(ii) (13,601) 2,856

Net result (7,556) 8,607

Other comprehensive income

Items that will not be reclassified to net result

Net increase/(decrease) in asset revaluation surplus 14(a) (6,513) 4,845

Total other comprehensive income (6,513) 4,845

Total comprehensive income (14,069) 13,452

The above statement should be read in conjunction with the accompanying notes.

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Statement of Financial PositionAs at 30 June 2014

2014 2013

note $'000 $'000

ASSETS

Current assets

Cash and cash equivalents 4 19,419 27,358

Receivables 5 874 1,304

Other financial assets 6 11,028 505

Other - lease incentive asset 10 374 389

Total current assets 31,695 29,556

Non-current assets

Other financial assets 6 1,826 2,368

Property, plant and equipment 7

- Land and buildings 39,092 55,900

- Plant and equipment 2,028 1,891

- Furniture and fittings 525 517

- Motor vehicles - 14

- Art and artefacts 5 5

- Work in progress 238 861

Total property, plant and equipment 41,888 59,188

Investment property 8 67,312 72,143

Intangible assets 9 98 149

Other - lease incentive asset 10 1,051 1,406

Total non-current assets 112,175 135,254

Total assets 143,870 164,810

LIABILITIES

Current liabilities

Payables 11 2,914 5,448

Borrowings 12 20,544 5,505

Provisions 13 172 286

Total current liabilities 23,630 11,239

Non-current liabilities

Borrowings 12 8,471 28,669

Provisions 13 8 69

Lease incentive liabilities 16(b)(ii) 18,952 17,955

Total non-current liabilities 27,431 46,693

Total liabilities 51,061 57,932

NET ASSETS 92,809 106,878

EQUITY

Reserves 14 (a) - 6,513

Accumulated funds 14 (b) 92,809 100,365

TOTAL EQUITY 92,809 106,878

The above statement should be read in conjunction with the accompanying notes.

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Statement of Changes in EquityFor the year ended 30 June 2014

Asset revaluation

surplus

Accumulated funds

Total

$'000 $'000 $'000

Balance at 1 July 2013 6,513 100,365 106,878

Net result - (7,556) (7,556)

Other comprehensive income

Net increase/(decrease) in asset revaluation surplus (6,513) - (6,513)

Total other comprehensive income (6,513) - (6,513)

Total comprehensive income (6,513) (7,556) (14,069)

Transactions with owners - - -

Balance at 30 June 2014 - 92,809 92,809

Balance at 1 July 2012 2,665 103,024 105,689

Correction of prior period errors (997) (11,266) (12,263)

Restated total equity at 1 July 2012 1,668 91,758 93,426

Net result - 8,607 8,607

Other comprehensive income

Net increase/(decrease) in asset revaluation surplus 4,845 - 4,845

Total other comprehensive income 4,845 - 4,845

Total comprehensive income 4,845 8,607 13,452

Transactions with owners - - -

Balance at 30 June 2013 6,513 100,365 106,878

The above statement should be read in conjunction with the accompanying notes.

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Statement of Cash FlowsFor the year ended 30 June 2014

The above statement should be read in conjunction with the accompanying notes.

2014 2013

$'000 $'000

inflow/ inflow/

note (outflow) (outflow)

Cash flows from operating activities

Payments

Employees related (2,785) (2,891)

Finance costs (1,569) (2,178)

Other (16,660) (14,359)

Total payments (21,014) (19,428)

Receipts

Sales of services 28,591 27,039

Interest received 809 1,081

Grants 600 600

Total receipts 30,000 28,720

Net cash flows from operating activities 15 8,986 9,292

Cash flows from investing activities

Purchases of property, plant and equipment (1,310) (4,129)

Purchases of investments (10,485) -

Proceeds from sale of plant and equipment 27 -

Net cash flows from investing activities (11,768) (4,129)

Cash flows from financing activities

Repayment of borrowings to parent entity (5,157) (5,128)

Net cash flows from financing activities (5,157) (5,128)

Net increase/(decrease) in cash and cash equivalents (7,939) 35

Opening cash and cash equivalents 4 27,358 27,323

Closing cash and cash equivalents 4 19,419 27,358

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Notes to the Financial StatementsFor the year ended 30 June 2014

1 Summary of significant accounting policies

(a) Reporting entityAustralian Technology Park Sydney Limited (the Company) is a not for profit Company limited by guarantee which is a wholly owned controlled entity of UrbanGrowth NSW Development Corporation (“UGDC”) a Statutory Body constituted by the Growth Centres (Development Corporations) Act 1974 on 17 December 2010 to promote the development of land identified as potential urban renewal precincts including Redfern-Waterloo and Granville and other precincts to be identified in the future. The reporting entity is consolidated as part of the NSW Total State Sector Accounts, as per Note 1(a) of the Financial Reporting Code.

The Company is responsible for the day-to-day management of the Australian Technology Park Sydney Limited (ATPSL) located at Eveleigh in Sydney, NSW in accordance with its Constitution. This includes the operations of the Park to establish a technology and scientific research precinct, being property management and development and the provision of convention and exhibition facilities, the Eveleigh Markets and Koori Job Ready Aboriginal Employment Program.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the parent entity.

The financial statements for the year ended 30 June 2014 were authorised for issue by the Board on 19 September 2014.

(b) Basis of preparationThe Company’s financial statements are general purpose financial statements which have been prepared in accordance with applicable Australian Accounting Standards (which include Australian Accounting Interpretations) and the requirements of the Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2010, Corporations Act 2001 and the Financial Reporting Directions published in the Financial Reporting Code for NSW General Government Sector Entities or issued by the Treasurer.

The financial statements have been prepared under the historical cost convention and on an accrual accounting basis, except for:

• non-current physical assets measured at fair value; and • investment properties measured at fair value

In the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.

All judgements, key assumptions and estimations management has made are disclosed in the relevant notes to the financial statements.

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency.

(c) Statement of complianceThe financial statements and notes comply with Australian Accounting Standards, which include Australian Accounting Interpretations.

(d) Finance costsFinance costs are expensed in the period in which they are incurred in accordance with the Treasurer’s Mandate to not–for-profit general government sector agencies.

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(e) InsuranceThe Company’s insurance activities are conducted through the NSW Treasury Managed Fund scheme of self insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claim experience.

(f) Taxes(i) Accounting for the Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except when the GST incurred on a purchase of goods and services is not recoverable from the Australian Taxation Office, is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

Receivables and payables are stated with the amount of GST included.

Cash flows are included in the statement of cash flows on a gross basis. However, the GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the Australian Taxation Office, are classified as operating cash flows.

(ii) Income tax

On 16 February 2005, a private ruling was made in favour of the Company, where it was deemed that Section 24AM of Income Tax Assessment Act 1936 applies to exempt the Company’s income from the imposition of income tax. The ruling has been reconfirmed several times since 2005, with a further extension to 30 June 2015 approved by the Australian Taxation Office in a private ruling advice dated 2 March 2010 and 29 June 2011.

(g) Revenue recognitionRevenue is measured at the fair value of the consideration or contribution received or receivable. Amounts disclosed as revenue are net of allowances, rebates and amounts collected on behalf of third parties.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s activities as described below.

Revenue is recognised for the major business activities as follows:

i) Grants

Grants are recognised as income when the Company obtains control over the assets comprising appropriations/contributions. Control over appropriations/contributions is normally obtained upon the receipt of cash.

Unspent Grant Income is recognised as liabilities rather than income, as the authority to spend money lapses and the unspent amount must be repaid. The liability is disclosed as ‘Current liabilities - Other’. The amount will be repaid and the liability extinguished next year.

ii) Rendering of services

Revenue from a contract to provide services is recognised by reference to the stage of the completion (based on hours incurred to date) of the contract.

(iii) Investment revenue

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. Investment income comprises interest income on funds invested with financial institutions. In addition, any changes in fair value of financial assets held with the NSW Treasury Corporation's Hour-Glass facilities represented by a number of units of a management investment pool at fair value through profit and loss.

Rental revenue from operating leases is recognised in accordance with AASB 117 Leases on a straight line basis over the lease term. The lease payments received in advance are recorded as a liability and recognised as revenue over the lease term.

(iv) Other income

Other income is recognised when the right to receive the income has been established.

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Notes to the Financial StatementsFor the year ended 30 June 2014

(h) ExpenditureAll expenses incurred on an accrual basis are recognised as expenditure for the year to the extent that the Company has benefited by receiving goods or services and the expenditure can be reliably measured.

• Employee benefits expenses

Employee benefits expenses include salaries and wages for the period, workers compensation insurance premium for the period and 9.25% superannuation contribution incurred for employees. Annual leave and long service leave expenses are charged as stated in Note 13.

(i) Assetsi) Acquisition of assets

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the Company. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction or, where applicable the amount attributed to that asset when initially recognised in accordance with the measurements requirements of other Australian Accounting Standards.

Assets acquired at no cost or for nominal consideration are initially recognised at their fair value at the date of acquisition.

Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arms length transaction.

ii) Capitalisation thresholds

Property, plant and equipment and intangible assets costing $5,000 and above, individually or forming part of a network costing more than $5,000, are capitalised.

When assets are completed and ready for service, the costs are capitalised to the relevant property, plant and equipment account, either directly or from the capital work in progress when relevant.

The remaining capital expenditure is carried forward as construction in progress and included in property, plant and equipment in the statement of financial position.

iii) Revaluation of property, plant and equipment

Physical non-current assets are valued in accordance with NSW Treasury’s Accounting Policy TPP 14-01: Valuation of Physical Non-Current Assets at Fair Value. This policy adopts the fair value in accordance with AASB 116 Property, Plant & Equipment and AASB 140 Investment Property. Information on investment property is separately discussed at note 1 (i)(x).

Property, comprising land and buildings, is measured on an existing use basis, where there are no feasible alternative uses in the existing natural, legal, financial and socio-political environment. However, in the limited circumstances where there are feasible alternative uses, assets are valued at their highest and best use.

Fair value of property, plant and equipment is based on a market participants’ perspective, using valuation techniques (market approach, cost approach, income approach) that maximise relevant observable inputs and minimise unobservable inputs. Also refer to Note 7 and Note 20 for further information regarding fair value.

Property, plant and equipment are initially recognised at acquisition cost, including any costs directly attributable to the asset and any restoration costs associated with the asset. Cost is the amount of cash and cash equivalents paid or the fair value of the other consideration given to acquire the asset at the time of its acquisition or construction.

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. When revaluing non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated.

For other assets, any balances of accumulated depreciation at the revaluation date in respect of those assets are credited to the asset accounts to which they relate. The net asset accounts are then increased or decreased by the revaluation increments or decrements.

Revaluation increments are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of assets, they are debited directly to the asset revaluation surplus.

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As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class of non-current assets, but not otherwise.

Land and buildings are reported at fair value, based on annual fair value assessments prepared by independent, professional real estate valuers. The last independent assessment was conducted on 30 June 2014 by Knight Frank, independent valuers not related to the Company. Knight Frank are members of the Australian Institute of Valuers and they have the appropriate qualifications and recent experience in the valuation of properties in the Redfern-Waterloo area. The valuation, which conforms to Australian Valuation Standards, was arrived at by reference to market evidence of transactions prices for similar properties.

Land and buildings, including open spaces and roads, are revalued at least every three years or with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at reporting date.

Leasehold improvements are included as part of land and buildings and are depreciated over the shorter of the lease term and their useful lives, unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.

iv) Impairment of Property, plant and equipment

As a not-for-profit entity AASB 136 Impairment of Assets is unlikely to arise. AASB 136 modifies the recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This means that, where an asset is already measured at fair value, impairment can only arise if selling costs are material. Selling costs for the entity are regarded as immaterial.

Any reversals of impairment losses are reversed through the statement of comprehensive income, where there is objective evidence. However, reversals of impairment losses on an investment in an equity instrument classified as “available for sale” must be made through the reserve. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

v) Depreciation of property, plant and equipment

Depreciation is provided for on a straight line basis for all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the Company.

All material identifiable components of assets are depreciated separately over their useful lives.

Heritage assets that have been improved to provide rental income will be depreciated over 40 years and therefore valued under the income approach.

Land is not a depreciable asset. Certain heritage assets including original artworks and collections may not have a limited useful life because appropriate and curatorial and preservation policies are adopted. Such assets are not subject to depreciation. The decision not to recognise depreciation for these assets is reviewed annually.

The estimated useful lives for the current and comparative periods are as follows:

• Furniture and fittings 4-5 years • Plant and equipment 3-4 years • Motor vehicles 5 years • Buildings 40 years

vi) Major inspection costs

When each major inspection is performed, the labour cost of performing inspections for faults is recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are satisfied.

vii) Restoration costs

The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an asset, to the extent it is recognised as a liability.

viii) Maintenance costs

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement of a part or component of an asset, in which case the costs are capitalised and depreciated.

ix) Leased assets

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to the ownership of the leased assets, and operating leases under which the lessor does not transfer substantially all the risks and benefits.

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Notes to the Financial StatementsFor the year ended 30 June 2014

Where a non-current asset is acquired by means of a finance lease, at the commencement of the lease term, the asset is recognised at its fair value or, if lower, the present value of the minimum lease payments at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the statement of comprehensive Income in the periods in which they are incurred.

x) Investment properties

The Company owns properties held to earn and/or for capital appreciation. Investment properties are stated at fair value supported by market evidence at the statement of financial position date. These valuations are reviewed annually by Knight Frank.

Gains or losses arising from changes in fair values are included in the net result for the year in the period in which they arise. No depreciation is charged on investment properties.

xi) Intangible assets

The Company recognises intangible assets only if it is probable that the future economic benefits will flow to the Company and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost.

Where an asset is acquired at no or nominal cost, the cost is its fair value as at the date of acquisition.

All research costs are expensed. Development costs are only capitalised when certain criteria are met. These include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where the group has an intention and ability to use the asset.

IT development and software costs incurred in developing products or systems, and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction, are capitalised to software and systems.

Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project.

Intangible assets are subsequently measured at fair value only if there is an active market. As there is not an active market for the Company’s intangible assets, the assets are carried at cost, less any accumulated amortisation.

The Company’s intangible assets are amortised on a straight line method over a period of two and a half years.

Intangible assets are tested where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss.

xii) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, short term deposits with original maturities of three months or less, and short term Hourglass facility held with NSW Treasury Corporation (T-Corp). These are readily convertible to cash and classified as cash and cash equivalents.

For statement of cash flows presentation purposes, cash and cash equivalents consist of cash and cash equivalents as defined above.

xiii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial assets are recognised initially at fair value, usually based on the transaction cost, or face value. Subsequent measurement is amortised at cost using the effective interest method, less an allowance for any impairment of receivables. Any changes are recognised in the net result for the year when impaired, derecognised or through the amortisation process.

Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

xiv) Impairment of financial assets

All financial assets, except those measured at fair value through profit and loss, are subject to an annual review for impairment. An allowance for impairment is used when there is objective evidence that the Company will not be able to collect all amounts due.

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 120 days overdue) are considered indicators that the trade receivable is impaired.

For financial assets carried at amortised cost, the amount of the impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the impairment loss is recognised in the net result for the year.

Any reversals of impairment losses are reversed through the net result for the year, where there is objective evidence. Reversals of impairment losses of financial assets carried at amortised cost cannot result in a carrying amount that exceeds what the carrying amount would have been had there not been an impairment loss.

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xv) De-recognition of financial assets and financial liabilities

A financial asset is derecognised when the contractual rights to the cash flows from the financial assets expire; or if the Company transfers the financial asset:

• where substantially all the risks and rewards have been transferred or;

• where the Company has not transferred substantially all the risks and rewards, if the Company has not retained control.

Where the Company has neither transferred substantially all the risks and rewards nor transferred control of the financial asset, the asset is recognised by the Company to the extent of its continuing involvement in the asset.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires.

xvi) Other assets-lease incentives

Other assets are recognised on a cost basis. The Company’s lease incentives include upfront cash payments to the lessee or the reimbursement or assumption by the Company, as the lessor, of costs of the lessee (such as relocation costs, leasehold improvements, fit-out contributions and costs associated with a pre-existing lease commitment). Alternatively, the initial period of the lease term may be agreed to be rent-free or at a reduced rent, and shall be recognised, in accordance with the Australian Accounting Interpretations.

(j) Liabilitiesi) Payables

These amounts represent liabilities for goods and services provided to the Company and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.

ii) Borrowings

Loans are not held for trading or designated at fair value through profit or loss and are recognised at amortised cost using the effective interest rate method. Gains or losses are recognised in the net result for the year on derecognition.

The finance lease liability is determined in accordance with AASB 117 Leases.

iii) Employee benefits

• Wages and salaries, annual leave and sick leave and on-costs

ATPSL staff are employed under conditions in accordance with the Fair Work Act 2009.

Liabilities for wages and salaries, including non-monetary benefits and annual leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the service are recognised and measured in respect of employees’ services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.

Long term annual leave that is not expected to be wholly settled within twelve months is measured at present value in accordance with AASB 119 Employee Benefits. Markets yields on Commonwealth government bonds 3% are used to discount long-term leave.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the benefits accrued in the future.

The outstanding amounts of workers’ compensation, insurance premiums and fringe benefits tax, which are consequential to employment, are recognised as liabilities and expenses when the employee benefits to which they relate have been recognised.

• Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on Commonwealth government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date. The Commonwealth government bond rate of 3% (2013: 3%) was applied for discounting purposes.

• Termination benefits

Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.

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Notes to the Financial StatementsFor the year ended 30 June 2014

(k) Other provisionsProvisions are recognised when the Company has a present legal or constructive obligation as a result of a past event. The obligation can be measured reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. The discount rate used to determine the present value reflects current assessments of the time value of money, and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense.

Other provisions exist when the entity has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

(l) Equity and reserves(i) Revaluation surplus

The revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. This accords with the Company’s policy on the revaluation of property, plant and equipment as discussed in Note 1 (i) (iii).

(ii) Accumulated funds

The category ‘accumulated funds’ includes all current and prior period retained funds.

(m) Comparative informationExcept when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous period for all amounts reported in the financial statements.

(n) Budgeted amountsBudget comparisons and service group statements are not included in the Australian Technology Park Sydney Limited Financial Statemetns as the Company is not part of the General Government Sector.

(o) Fair value hierarchyA number of the entity’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring fair value, the valuation technique used maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Under AASB 13, the entity categorises, for disclosure purposes, the valuation techniques based on the inputs used in the valuation techniques as follows:

• Level 1 - quoted prices in active markets for identical assets / liabilities that the entity can access at the measurement date.

• Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

• Level 3 – inputs that are not based on observable market data (unobservable inputs).

The entity recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Refer Note 19 and Note 20 for further disclosures regarding fair value measurements of financial and non-financial assets.

(p) New Australian Accounting standards and interpretations issued but not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2014 reporting period. The following new Accounting Standards and Interpretations have not been applied and are not yet effective. This is due to NSW public sector companies not being permitted to early adopt new Australian Accounting Standards, unless Treasury determines otherwise.

Accounting Standards/Interpretations Effective for annual reporting periods beginning on or after

Impact of standards issued but not yet effective Expected to be initially applied in the financial year ending

AASB 9 Financial Instruments and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).

1 January 2017 and 1 January 2015 respectively

No material impact. Financial assets and financial liabilities are to be measured at fair value. An entity is permitted to designate a previously recognised financial asset and/or financial liability at fair value through profit or loss.

30 June 2015

AASB 1055 Budgetary Reporting and AASB 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements

1 July 2014 Not applicable as explained in Note 1(n). Not applicable

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(q) Application of new and revised Australian Accounting StandardsThe following table outlines the way the Company has applied the new and revised Accounting Standards applicable to the Company for the first time in 2013-14:

Accounting Standards Application

AASB 119 Employee Benefits and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011).

The Company has no contributing member to a defined benefit superannuation scheme. As a result, the change in net interest expense calculation has no impact on the Company. Further, the amendment to the definition of ‘short term employee benefits’ has little or no impact on the Company as the majority of annual leave liability is considered short-term and any liability not expected to be wholly settled within twelve months is considered to be immaterial.

AASB 13 Fair Value Measurement, AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 and AASB 2012-1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements.

These Accounting Standards have little or no impact on the Company as land and buildings, including open spaces and roads and investment properties are already stated at fair value using independent assessments.

The Company determines the fair value of other non-financial assets with reference to best available market evidence, including current market selling prices for the same or similar assets. Where there is no available market evidence, the asset’s fair value is measured at its market buying price, the best indicator of which is depreciated historical/replacement cost. The Fair Value Hierarchy is disclosed at note 20.

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.

These Accounting Standards and any likely Treasury mandate for Tier 1 reporting requirements have no impact on the Company as Tier 1 reporting requirements have already been applied instead of Tier 2 reduced disclosure requirements.

AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities – AASB 7 Financial Instruments: Disclosures and AASB 132 Financial Instruments: Presentation.

These Accounting Standards have no impact on the Company as no netting arrangement of financial assets and financial liabilities is in place and gross amounts of financial assets and financial liabilities are measured and disclosed.

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Notes to the Financial StatementsFor the year ended 30 June 2014

2 Expenses excluding losses2014 2013

$'000 $'000

(a) Employee related expensesSalaries and wages (including recreation leave) 2,059 2,490

Superannuation contribution 161 196

Long service leave - 18

Workers' compensation insurance 20 19

Fringe benefit tax 10 16

Other employee expenses 340 216

2,590 2,955

(b) Other operating expenses include the following:Auditor's remuneration

- audit of the financial statements 74 73

Conference Centre cost of sales 2,821 3,135

Koori Job Ready cost of sales - 19

Operating lease rental expense

- minimum lease payments - 77

Consultants 448 677

Contractors 559 1,065

Property expenses 3,291 2,536

Repairs & maintenance 280 311

Insurance 122 124

Legal 167 261

Operating lease costs 997 998

Advertising & public relations 418 621

Administration 309 408

Cleaning 481 403

IT expenses 553 433

Security 735 761

Other 1,283 817

12,538 12,719

(c) Depreciation and amortisation expenseDepreciation

- Land and buildings 2,149 1,895

- Furniture and fittings 188 189

- Plant and equipment 830 655

- Motor vehicles 4 6

3,171 2,745

Amortisation

- Software 98 86

3,269 2,831

(d) Finance costsFinance lease interest charges 351 332

Interest expense 785 1,147

Debt guarantee levies 437 699

1,573 2,178

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3 Revenue2014 2013

$'000 $'000

(a) Sales of ServicesRendering of services 24,203 24,383

24,203 24,383

(b) Investment revenueBank deposits 367 113

Interest revenue from financial assets not at fair value through profit or loss 192 226

NSW Treasury Corporation Hour-Glass cash facility 365 740

924 1,079

(c) Grants 600 600

(d) Other revenueOther operating income 370 372

26,097 26,434

3 (i) Gain/(loss) on DisposalNet gain/(loss) on disposal of plant and equipment (82) -

3 (ii) Other gains/(losses)Net gain/(loss) on revaluation of Property, plant and equipment less reversal of revaluation surplus (note 7(a) & note 14(a))

(8,770) -

Gain/(loss) on revaluation of investment property (note 8) (4,831) 2,856

(13,601) 2,856

4 Current assets - cash and cash equivalents2014 2013

$'000 $'000

Cash at bank and on hand 7,491 8,595

Restricted asset - tenant deposits 241 485

Short-term deposits 5,045 -

NSW Treasury Corporation Hour-Glass cash facility 6,642 18,278

19,419 27,358

For the purposes of the statement of cash flows, cash and cash equivalents includes cash at bank, cash on hand, liquid investment in NSW Treasury Corporation Hour-Glass cash facility, short-term deposits and NAB term deposits (three months or less). The restricted asset represents funds held as tenant deposits (refer note 11). Cash and cash equivalent assets recognised in the statement of financial position are reconciled at the end of the financial year to the statement of cash flows as follows:

Cash and cash equivalents (per statement of financial position) 19,419 27,358

Closing cash and cash equivalents( per statement of cash flows) 19,419 27,358

Refer Note 19 Financial Instruments for details regarding credit risk, liquidity risk and market risk arising from financial instruments.

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Notes to the Financial StatementsFor the year ended 30 June 2014

5 Current/non-current assets – receivables2014 2013

$'000 $'000

CurrentSale of services 386 414

Less: Allowance for impairment (5) (5)

381 409

Prepayments 352 481

Other receivables 141 414

874 1,304

Movement in the allowance for impairment Balance at 1 July 2013 5 5

(Decrease) in allowance recognised in profit or loss - -

Amounts written off during the year - -

Balance at 30 June 2014 5 5

Details regarding credit risk, liquidity risk and market risk, including financial assets that are either past due or impaired, are disclosed in Note 19 Financial Instruments.

(i) Loans receivable represents the fitout costs receivable from the Department of Defence over the term of lease of 10 years. The fixed interest rate is 7.24% per annum and the maturity date is 30 May 2018. Management considers that the carrying amount of the loan best represents the maximum credit risk exposure at the balance sheet date and that there is no indication at that date that the counterparty will not meet its obligations.

(ii) The deposits represent NAB term deposits greater than three months.

Refer to Note 19 Financial Instruments for further information regarding credit risk, liquidity risk and market risk arising from financial instruments.

6 Current/non-current assets – other financial assets2014 2013

$'000 $'000

CurrentLoans receivable - Department of Defence (i) 543 505

Deposits (ii) 10,485 -

11,028 505

Non-currentLoans receivable - Department of Defence (i) 1,826 2,368

12,854 2,873

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7 Non-current assets - property, plant and equipment 2014 2013

$'000 $'000

Land and buildingsGross carrying amount 39,092 55,900

Accumulated depreciation - -

Net carrying amount at fair value 39,092 55,900

Plant and equipmentGross carrying amount 5,828 4,886

Accumulated depreciation (3,800) (2,995)

Net carrying amount at fair value 2,028 1,891

Furniture and fittingsGross carrying amount 2,100 1,912

Accumulated depreciation (1,575) (1,395)

Net carrying amount at fair value 525 517

Motor vehiclesGross carrying amount - 32

Accumulated depreciation - (18)

Net carrying amount at fair value - 14

Art and artefactsGross carrying amount 5 5

Accumulated depreciation - -

Net carrying amount at fair value 5 5

Work in progress 238 861

Total property, plant and equipment At gross value 47,263 63,596

Accumulated depreciation (5,375) (4,408)

Carrying amount at fair value 41,888 59,188

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Notes to the Financial StatementsFor the year ended 30 June 2014

7a Reconciliation of property, plant and equipment Land and buildings

Plant and equipment

Furniture and fittings

Art and artefacts

Motor vehicles

Work in progress

Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000Year ended 30 June 2014Net carrying amount at start of year

55,900 1,891 517 5 14 861 59,188

Additions 170 603 209 - - 238 1,220Transfer in/out 454 388 19 - - (861) -Disposals/write-offs - (24) (32) - (10) - (66)Net revaluation increment less revaluation decrements (i)

(15,283) - - - - - (15,283)

Depreciation expense (2,149) (830) (188) - (4) - (3,171)Net carrying amount at end of year 39,092 2,028 525 5 - 238 41,888

Year ended 30 June 2013Net carrying amount at start of year

49,750 880 658 5 20 1,764 53,077

Additions 2,165 1,042 48 - - 836 4,091Transfer in/out 1,035 624 - - - (1,659) -Transfer out to intangibles (note 9)

- - - - - (80) (80)

Net revaluation increment less revaluation decrements

4,845 - - - - - 4,845

Depreciation expense (1,895) (655) (189) - (6) - (2,745)Net carrying amount at end of year 55,900 1,891 517 5 14 861 59,188

8 Investment Property2014 2013

$'000 $'000

Opening balance as at 1 July - fair value 72,143 69,287

Net gain/(loss) from fair value adjustment (4,831) 2,856

Closing balance as at 30 June - fair value 67,312 72,143

Investment properties are valued annually at fair value by an independent valuer. Investment property consists of the International Business Centre, NICTA and Biomedical buildings.

The following amounts have been recognised in the net result for the year:

Rental income 9,067 8,948

Direct operating expenses arising from investment properties that generated rental income (1,318) (1,171)

(i) The 30 June 2014 valuation conducted by Knight Frank of the technology park resulted in a net reduction in the overall value of the park of $6.4m. This valuation included a material re-allocation of value between park land and buildings. As a consequence, ATPSL experienced a decrease in value in its buildings of $20.1m inclusive of investment property (refer note 8: $4.831m) while the net impact on consolidation of both entities was however a net decrement of $6.6m.

Further details regarding the fair value measurement of property, plant and equipment are disclosed in Note 20.

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9 Intangible assets 2014 2013

$'000 $'000

SoftwareGross carrying amount 618 633

Accumulated amortisation (520) (484)

Carrying amount at fair value 98 149

Net carrying amount at start of year 149 117

Additions 90 38

Disposals (43) -

Transfer in from work in progress (note 7(a)) - 80

Amortisation (recognised in depreciation and amortisation) (98) (86)

Net carrying amount at end of year 98 149

10 Current/non-current assets - other 2014 2013

$'000 $'000

Lease Incentive AssetCurrent 374 389

Non-current 1,051 1,406

1,425 1,795

11 Current liabilities - payables2014 2013

$'000 $'000

CurrentAccrued salaries, wages and on-costs 268 289

Creditors and accruals (i) 1,612 3,806

Event and tenant deposits (ii) 678 779

Unearned revenue 313 527

Goods and Services Tax payable 43 47

2,914 5,448

(i) The average credit period on purchase of services is 30 days. The Company has financial risk management policies in place to ensure that all payables are paid within the credit time frame.

(ii) The tenant deposit of $241k are also represented as restricted asset in Note 4 Cash and cash equivalents.

Details regarding credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings, are disclosed in Note 19 Financial Instruments.

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Notes to the Financial StatementsFor the year ended 30 June 2014

Details regarding the credit risk, liquidity risk and market risk, including a maturity analysis of the above borrowings are disclosed in Note 19 Financial Instruments.

The loans from the parent entity were received to fund the construction of buildings. A loan agreement is in place and the Company incurs commercial rates of interest payable to the parent entity. The Company paid 2.74% interest for the current year (2013: 3.4%). The total loan facility is for $45m.

In May 2010, the Company’s Board approved commencement of a discretionary debt reduction strategy for the floating rate loan facility.

The 10 year fixed interest rate loan relates to the fitout costs recoverable from the Department of Defence over the term of the lease (refer note 6).

12 Current/non-current liabilities - borrowings2014 2013

$'000 $'000

CurrentLoan from parent entity - 10 year fixed interest 543 505

Loan from parent entity at variable rates 20,001 5,000

20,544 5,505

Non-currentLoan from parent entity - 10 year fixed interest 1,826 2,368

Loan from parent entity at variable rates - 20,006

Finance lease liability (Note 16(c)) 6,645 6,295

8,471 28,669

29,015 34,174

13 Current/non-current liabilities - provisions2014 2013

$'000 $'000

Employee benefits and related on-costsCurrentRecreation leave 73 173

Long service leave 99 113

172 286

Non-currentLong service leave 8 69

180 355

Aggregate employee benefits and related on-costsProvisions - current 172 286

Provisions - non-current 8 69

Accrued salaries, wages and on-costs (note 11) 268 289

448 644

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14 Reserves and accumulated funds2014 2013

note $'000 $'000

(a) ReservesRevaluation surplus - property, plant and equipmentBalance at beginning of the year 6,513 2,665

Correction of prior period errors - (997)

Balance as restated 6,513 1,668

Net increase/(decrease) in asset revaluation surplus 7(a) (6,513) 4,845

Balance at end of the year - 6,513

(b) Accumulated fundsBalance at beginning of the year 100,365 103,024

Correction of prior period errors (11,266)

Balance as restated 100,365 91,758

Net result (7,556) 8,607

Balance at end of the year 92,809 100,365

15 Reconciliation of net cash flows from operating activities to net result2014 2013

$'000 $'000

Net cash used on operating activities 8,986 9,292

Depreciation and amortisation (3,269) (2,831)

Gain/(loss) on revaluation of investment property (4,831) 2,856

Gain/(loss) on revaluation of Property, plant and equipment (8,770) -

Net gain/(loss) on disposal of plant and equipment (82) -

Recognition of operating lease incentive in accordance with:

Interpretation of AASB 115 (370) (11)

Operating lease (997) (998)

Allowance for impairment on receivables - -

Increase/(decrease) in prepayments and other assets (934) 183

(Increase)/decrease in creditors 2,536 146

(Increase)/decrease in provisions 175 (30)

Net result (7,556) 8,607

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Notes to the Financial StatementsFor the year ended 30 June 2014

(b) Operating lease commitments(i) Disclosures for the Company as lessorOperating leases relate to the investment property referred to in Note 8 to the financial statements. Tenancy lease terms vary with terms ranging up to 99 years, however the majority fall within the 2-10 year range. Depending on the commercial arrangements, many leases also provide for renewal options. All operating lease contracts contain periodic escalation provisions, as well as market review clauses in the event that the lessee exercises an option to renew. Lessees do not have an option to purchase the property at the expiry of the lease period.

Non-cancellable operating lease receiptsNot later than one year 16,691 15,023

Later than one and not later than five years 44,283 46,321

Later than five years 9,982 13,957

Total including GST 70,956 75,301

The above includes GST output tax of $6.45m (2013: $6.85m) that is expected to be paid to the Australian Taxation Office. The income commitments relate to rent leases. All receivable leases are entered into at commercial rates and terms. Regular market valuations and tendering processes are carried out to ensure commercial arrangements are maintained.

(ii) Disclosures for the Company as lesseeOperating leases relate to the heritage land and buildings with lease term of 99 years. The Company does not have an option to purchase the leased asset at the expiry of the lease period.

Future non-cancellable operating lease rentals not provided for and payableNot later than one year - -

Later than one and not later than five years 4,375 3,125

Later than five years 94,375 95,625

98,750 98,750

It should be noted that ATPSL has elected to reflect the valuation at the inception of the lease as the fair value of the rental payments will commence in 2016. In respect of non-cancellable operating leases the following have been recognised:

Non-current - other liabilityOperating lease payable in arrears 18,952 17,955

(c) Finance lease commitmentsFinance leases relate to the Biomedical Building, International Business Centre, NICTA, Locomotive Workshop and Conference Centre and Exhibitions buildings with lease term of 99 years. The Company does not have an option to purchase the leased asset at the expiry of the lease period.

It should be noted that a peppercorn nominal rent of $1 p.a is charged for all buildings with the exception of the Biomedical Building.

Minimum lease payments, later than 5 years * 30,525 30,525

Less: Future finance charges (23,880) (24,230)

Present value of minimum lease payments 6,645 6,295

Included in the financial statements as:Non-current finance lease liability (Note 12) 6,645 6,295

* Minimum future lease payments includes the aggregate of all lease payments and any guaranteed residual.

16 Commitments for expenditure2014 2013

$'000 $'000

(a) Capital commitmentsAggregate capital expenditure contracted for at balance date and not provided for (inclusive of GST):

Not later than one year 291 89

Later than one and not later than five years - -

Later than five years - -

Total including GST 291 89

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17 Directors and executives disclosure (a) Details of key management personnel

Directors Dr Colin Gellatly AO - Chairman Mr Michael Collins - (resigned on 7 March 2014)Mr Richard Johnson Ms Lucy Hughes Turnbull AOMr John Mulally Mr Sean O’Toole - Managing Director (resigned on 30 September 2013) Mr O’Toole was remunerated via UrbanGrowth NSWMr David Pitchford - Managing Director (appointed on 30 September 2013) Mr Pitchford is remunerated via UrbanGrowth NSW

(b) Compensation of key management personnel

2014 Salary & fees Superannuation Total

$ $ $

Directors compensationDr Colin Gellatly AO 30,000 2,775 32,775

Mr Michael Collins (From 1 July 2013 to 7 March 2014) 9,500 879 10,379

Mr Richard Johnson1 - - -

Ms Lucy Hughes Turnbull AO 13,000 1,203 14,203

Mr John Mulally 12,386 - 12,386

Mr David Pitchford2 (appointed 30 September 2013) - - -

Mr Sean O’Toole2 (From 1 July 2013 to 30 September 2013) - - -

64,886 4,857 69,743 1 this position is not remunerated.2 remunerated by UrbanGrowth NSW.

2013 Salary & fees Superannuation Total

$ $ $

Dr Colin Gellatly AO 30,000 2,700 32,700

Mr Michael Collins 13,000 1,170 14,170

Mr Richard Johnson1 - - -

Ms Lucy Hughes Turnbull AO 13,000 1,170 14,170

Mr John Mulally 15,959 - 15,959

Mr Sean O’Toole2 - - -

Mr Roy Wakelin-King AM2 - - -

71,959 5,040 76,999 1 this position is not remunerated.2 remunerated by UrbanGrowth NSW from 1 January 2013.

Directors did not receive any loans or advances or other forms of compensation during the financial year.

Executives’ compensation

The Company’s objective is to reward executives with a level and mix of compensation commensurate with their position and responsibilities within the Company as to:

- Reward executives for Company, business unit and individual performance against targets set by appropriate benchmarks;

- Link rewards with the strategic goals and performance of the Company; and

- Ensure total compensation is competitive by market standards.

Executives Mr Duncan Read - General Manager Mr James Barry - Director Finance & Corporate Services Ms Ruby Chronis - Director Sales & Marketing Mr Gary Love - Head of FacilitiesMs Mary Chapman - Head of Leasing

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Notes to the Financial StatementsFor the year ended 30 June 2014

17 Directors and executives disclosure (Continued)2014 2013

$ $

(b) Compensation of key management personnel (continued)Executives' CompensationShort-term employee benefits 918,089 777,925

Post employment benefits 65,996 87,227

984,085 865,152

(c) Related party disclosuresTerms and conditions of transactions with related parties

Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on normal commercial terms.

The Directors or Executives of the Company do not currently hold or have held positions with organisations that the Company had dealings with.

The Managing Director of the Company is not remunerated by the Company.

18 Related party transactions and balances2014 2013

$'000 $'000

The Company is a wholly owned controlled entity of UGDC. The balances outstanding at the end of the year and the value of the transactions with the related parties during the year are set out in the table below:

Related party balancesLoans from the parent entity 29,015 34,174

Related party transactions Provision of staff services by the parent entity - (80)

Development activity support from the parent entity - (80)

Eveleigh Market rental paid to parent entity - (77)

Interest paid to parent entity on the loan (785) (1,147)

Debt guarantee levy paid to parent entity on the loan (437) (699)

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Carrying Carrying

amount amount

2014 2013

Asset class note Category $'000 $'000

(a) Financial instruments categoriesFinancial assetsCash and cash equivalents 4 N/A 19,419 27,358

Receivables1 5 Loans and receivables (at amortised cost) 522 823

Other financial assets 6 Loans and receivables (at amortised cost) 2,369 2,873

Held-to-maturity (at amortised cost) 10,485 -

32,795 31,054

Financial liabilitiesPayables2 11 Financial liabilities measured at amortised cost 2,558 4,874

Borrowings 12 Financial liabilities measured at amortised cost 29,015 34,174

31,573 39,048

1. Excludes statutory receivables and prepayments.

2. Excludes statutory payables and unearned revenue.

19 Financial instrumentsThe Company’s principal financial instruments are outlined below. These financial instruments arise directly from the Company’s operations or are required to finance the Company’s operations. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Company’s main risks arising from financial instruments are outlined below, together with the Company’s objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements.

The Board has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Company, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit and Risk Committee on a continuous basis.

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Notes to the Financial StatementsFor the year ended 30 June 2014

19 Financial instruments (continued)(b) Credit risk

Credit risk arises when there is the possibility of the Company’s debtors defaulting on their contractual obligations, resulting in a financial loss to the Company. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment).

Credit risk arises from the financial assets of the Company, including cash, receivables, and authority deposits. No collateral is held by the Company. The Company has not granted any financial guarantees.

Credit risk associated with the Company’s financial assets, other than receivables, is managed through the selection of counterparties and establishment of minimum credit rating standards. Company deposits held with NSW Treasury Corporation (TCorp) are guaranteed by the State.

Cash

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System and NAB term deposits. Interest is earned on daily bank balances at the monthly average NSW TCorp 11am unofficial cash rate, adjusted for a management fee to NSW Treasury. The TCorp Hour Glass cash facility is discussed in paragraph (d) below.

Receivables - trade debtors

All trade debtors are recognised as amounts receivable at balance date. In determining the recoverability of a trade receivable, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base for the conference centre and the markets making an upfront payment of monies due before the event is held. It should be noted that the receipt of monies before the event occurs does not apply to government agencies. While the property part of the business collects rental monies for up to 3-6 months before the commencement of the lease.

Collectability of trade debtors is reviewed on an ongoing basis. The Company is certain that all of that debt will be recovered during the year. The Company meets with these debtors on a regular basis to make sure that the debt is paid on time. Where necessary, debtors are placed on a payment plan, and/or prompt formal recovery action is initiated by the Company. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the Company will not be able to collect all amounts due.

When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are reversed in net result.

Included in the Company's trade receivable balances are debtors with a carrying amount of *$386k (2013: $398k) which are past due at the reporting date for which the Company has not provided as there has not been significant change in credit quality and the amounts are still considered recoverable.

Total Past due but not impaired

Considered impaired

$'000 $'000 $'000

2014< 3 months overdue 377 377 -

3 - 6 months overdue 9 9 -

> 6 months overdue - - -

2013< 3 months overdue 398 398 -

3 - 6 months overdue - - -

> 6 months overdue - - -

*Entire payment received in July 2014

Authority Deposits

The Company has placed funds on deposit with TCorp, which has been rated 'AAA' by Standard and Poor’s. These deposits are similar to money market or bank deposits and can be placed 'at call' or for a fixed term. The deposits at balance date were earning an average interest rate of 2.86% (2013: 3.61%), while over the year the weighted average interest rate was 2.88% (2013: 3.62%) on a weighted average balance during the year of $12.667m (2013: $20.069m). None of these assets are past due or impaired.

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(c) Liquidity risk

Liquidity risk is the risk that the Company will be unable to meet its payment obligations when they fall due. The Company continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts and loans.

During the current and prior year, there were no defaults of loans payable. No assets have been pledged as collateral. The Company has a $35k business credit card facility which is not utlised at balance date. The company's exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

(d) Market riskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s exposures to market risk are primarily through interest rate risk on the Company’s borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment Facilities. The Company has no exposure to foreign currency risk and does not enter into commodity contracts.

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking into account the economic environment in which the Company operates and the time frame for the assessment (i.e. until the end of the next annual reporting period). The sensitivity analysis is based on risk exposures in existence at the statement of financial position date. The analysis is performed on the same basis as for 2013. The analysis assumes that all other variables remain constant.

Interest rate risk

Exposure to interest rate risk arises primarily through the Company’s interest bearing liabilities. This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp via the parent entity. A +/-1% is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the possible change in interest rates.

Weighted average effective

interest rate

< 1 year 1-5 years > 5 years Total

% $'000 $'000 $'000 $'000

2014Non-interest bearing payables - 2,558 - - 2,558

Fixed rate loan from parent 7.24% 543 1,826 - 2,369

Variable rate loan from parent 2.74% 20,001 - - 20,001

Finance lease liability 5.50% - - 6,645 6,645

23,102 1,826 6,645 31,573

2013Non-interest bearing payables - 4,874 - - 4,874

Fixed rate loan from parent 7.24% 505 2,368 - 2,873

Variable rate loan from parent 3.37% 5,000 20,006 - 25,006

Finance lease liability 5.50% - - 6,295 6,295

10,379 22,374 6,295 39,048

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Notes to the Financial StatementsFor the year ended 30 June 2014

19 Financial instruments (continued)Carrying -1% 1%

amount Profit Equity Profit Equity

$'000 $'000 $'000 $'000 $'000

(d) Market risk (continued)2014

Financial assets

Cash and cash equivalents 12,777 (128) (128) 128 128

Receivables 522 (5) (5) 5 5

Other financial assets 12,854 (129) (129) 129 129

-

Financial liabilities -

Payables 2,558 26 26 (26) (26)

Borrowings 29,015 290 290 (290) (290)

2013Financial assets

Cash and cash equivalents 9,080 (91) (91) 91 91

Receivables 823 (8) (8) 8 8

Other financial assets 2,873 (29) (29) 29 29

- -

Financial liabilities - -

Payables 4,874 49 49 (49) (49)

Borrowings 34,174 342 342 (342) (342)

Other price risk – TCorp Hour-Glass facilities

Exposure to 'other price risk' primarily arises through the investment in the TCorp Hour-Glass Investment Facilities, which are held for strategic rather than trading purposes. The Company has no direct equity investments. The Company holds units in the following Hour-Glass investment trusts:

2014 2013

Facility Investment sectors Investment horizon $'000 $'000

Cash facility Cash, money market instruments Up to 1.5 years 6,642 18,278

The unit price of each facility is equal to the total fair value of the net assets held by the facility divided by the number of units on issue for that facility. Unit prices are calculated and published daily.

NSW TCorp is trustee for the above facility and is required to act in the best interest of the unit holders and to administer the trust in accordance with the trust deed. As trustee, TCorp has appointed external managers to manage the performance and risks of the facility in accordance with a mandate agreed by the parties. However, TCorp acts as manager for part of the Cash and Strategic Cash Facilities.

Investment in the Hour-Glass facilities limits the Company’s exposure to risk, as it allows diversification across a pool of funds with different investment horizons and a mix of investments.

NSW TCorp provides sensitivity analysis information for its investment facilities, using historically based volatility information collected over a ten year period, quoted at two standard deviations (i.e. 95% probability). A reasonably possible change is based on the percentage change in unit price (as advised by TCorp) multiplied by the redemption value as at 30 June each year for cash facility (balance from Hour-Glass statement).

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(e) Fair value compared to carrying amount

Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are measured at fair value. The value of the Hour-Glass Investments is based on the Company's share of the value of the underlying assets of the facility, based on the market value. All of the Hour Glass facilities are valued using ‘redemption’ pricing.

The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value because of the short-term nature of many of the financial instruments.

(f) Fair value recognised in the statement of financial position The Company uses the following hierarchy for disclosing the fair value of financial instruments by valuation technique:

• Level 1 - Derived from quoted prices in active markets for identical assets or liabilities.

• Level 2 - Derived from inputs other than quoted prices that are observable directly or indirectly.

• Level 3 - Derived from valuation techniques that include inputs for the asset or liability not based on observable market data (unobservable inputs).

Impact on profit/loss

2014 2013

Change in unit price $'000 $'000

Hour Glass Investment – Cash facility +/- 1% 66 183

2014 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000

Financial assets at fair value

Short term cash investments - TCorp - 6,642 - 6,642

2013 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000

Financial assets at fair value

Short term cash investments - TCorp - 18,278 - 18,278

The table above includes only financial assets, as no financial liabilities were measured at fair value in the statement of financial position. There were no transfers between Level 1 and 2 during the period ended 30 June 2014.

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Notes to the Financial StatementsFor the year ended 30 June 2014

20 Fair value measurement of non-financial assets2014 Level 1 Level 2 Total fair value

$'000 $'000 $'000

(a) Fair value hierarchyProperty, plant and equipment (Note 7)

Land and buildings - 39,092 39,092

Investment property (Note 8) - 67,312 67,312

- 106,404 106,404

There were no transfers between Level 1 or 2 during the period.

(b) Valuation techniques, inputs and processes

Fair value of investment property and land and buildings is based on external independent assessments prepared by professional real estate valuers.

The external valuers follow income and market approaches, using the discounted cashflow and income capitalisation methods coupled with market comparisons to assess the fair value. These methods comprise observable inputs within an active market for similar assets with appropriate adjustments specific to the ATPSL's assets.

Description Fair value at 30 June 2014

$'000

Observable inputs Range of inputs - (probability - weighted average)

Relationship of observable inputs to fair value

Land and buildings 39,092 Rental Income p.a (net of outgoings)

$4,988k The higher the rental growth, the higher the fair value

Capitalisation rate 9.5% The higher the capitalisation rate, the lower the fair value

Discount rate 9.5% The higher the discount rate, the lower the fair value

Investment property 67,312 Rental Income p.a (net of outgoings)

$267k -$4,780k The higher the rental growth, the higher the fair value

Capitalisation rate 8.0% - 8.5% The higher the capitalisation rate, the lower the fair value

Discount rate 9.0% - 9.25% The higher the discount rate, the lower the fair value

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21 Events after reporting period The Company has not identified any events or transactions after the reporting period that are material which require adjustments or

disclosure in the financial statements.

22 Contingent assets and liabilities Australian Technology Park Sydney Limited has no known contingent assets or contingent liablities as at reporting date (2013: nil).

23 Members’ guarantee Australian Technology Park Sydney Limited is limited by guarantee and has one member (2013: one). If the Company is wound up, the

Company’s Constitution states that each member is required to contribute $20 towards meeting any outstanding liability of the Company.

END OF AUDITED FINANCIAL STATEMENTS

Australian Technology Park Sydney Limited

2 Locomotive St, Suite 3220 Locomotive Workshop Eveleigh NSW 2015

Phone: (02) 9209 4220 Facsimile: (02) 9209 4222

Office hours: 8.30am to 5.30pm Monday to Friday ISSN: 1445-7369