Annual Report2014-2015

National Theatre

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National Theatre

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The Royal National Theatre is a company limited by guarantee, and a registered charity. The liability of members is limited to £1. It was established in 1963 for the advancement of education and, in particular, to procure and increase the appreciation and understanding of the dramatic art in all its forms as a memorial to William Shakespeare.

These objects are set out in the governing document, which is its Memorandum and Articles of Association, and have been developed into a set of aims and objectives as described within the this report on pages 8 and 19.

Public Benefit Statement

In developing the objectives for the year, and in planning activities, the Trustees have considered the Charity Commission’s general guidance on public benefit including the guidance on public benefit and fee charging. The repertoire is planned so that across a full year it will cover a wide range of theatre, appealing to a broad audience. Particular regard is given to ticket-pricing, affordability, access and audience development, both through the Travelex season and more generally in the provision of lower price tickets for all performances. Geographical reach is achieved through touring and NT Live broadcasts to cinemas in the UK and overseas. The National Theatre also seeks to develop new audiences and deepen engagement through its NT Learning programme and other activities, both on-site and via the website.

The Annual Report is available to download at www.nationaltheatre.org.uk/annualreport

If you would like to receive it in large print, or you are visually impaired and would like a member of staff to talk through the publication with you, please contact the Board Secretary at the National Theatre.

The Royal National Theatre,Upper Ground,London.SE1 9PX+44 (0)20 7452 3333

Company registration number 749504.

Registered charity number 224223.

Registered in England.

Financial StatementsFINANCIAL STATEMENTS

FOR THE 52 WEEKS ENDED 29 MARCH 2015

2 Public Benefit Statement

5 Structure, Governance and Management

7 Strategic Report

20 Trustees and Directors Report

28 Independent Auditors’ Report

30 Financial Statements

34 Notes to the Financial Statements

56 Reference and Administrative Details of the Charity, Trustees and Advisors

In this document The Royal National Theatre is referred to as “the NT”, “the National”, and “the National Theatre”.

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CURRENT BOARD MEMBERS

Board MembersJohn Makinson (Chairman)Kate Mosse OBE (Deputy Chair)Peter Bennett-JonesDame Ursula Brennan DCBDominic Casserley Tim ClarkHoward DaviesLloyd Dorfman CBEGlenn Earle Elizabeth Offord Farah Ramzan Golant CBERos HaighAlan RusbridgerClive Sherling

ExecutiveDirector Rufus NorrisExecutive Director Lisa Burger

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Management of the National Theatre

The BoardThe Board is the non-executive and unpaid governing body of the National. Board members are both directors of the company and charity trustees and under company and charity law are responsible for policy, administration and general control. The Board works with the Executive to ensure that the National’s remit is fulfilled, its work remains of the highest quality and it is managed efficiently and cost- effectively. The Board delegates to the Director the selection and staging of all productions and does not interfere in repertoire decisions. Following its normal practice, an annual review of the year’s artistic output was held in June 2014 with the Director, to reflect on the effectiveness of the artistic programme as against the National’s remit. During 2014-15, the Board met six times, with the Executive present, to ensure it was maintaining effective control over strategic, financial, organisational and compliance issues. The Board received and considered regular reports from its Committees and subsidiary companies.

The ExecutiveThe Director*, Nicholas Hytner (from April 2015 Rufus Norris), is formally responsible for furthering the artistic reputation of the National and ensuring its efficient and effective management. He works closely with the Executive Director, Lisa Burger (preceded by Nick Starr who left the organisation in October 2014). The Board appoints the Director and is directly involved in the appointment of the Executive.

During the year, Rufus Norris, the Director Designate, and Tessa Ross, the Chief Executive Designate, worked alongside the existing Executive to ensure a smooth handover when Nicholas Hytner left the organisation at the end of March 2015. Tessa Ross subsequently left the organisation in April 2015 and Lisa Burger was appointed Executive Director. Tessa Ross continues to work with the NT on a consultancy basis.

Associate Directors* and NT AssociatesNicholas Hytner was supported in making repertoire decisions by the National’s Associate Directors. Rufus Norris has appointed a new team of Associate Directors.

*The term “Director” is a traditional title used at the National. Neither the Director, the Associate Directors nor other members of the Executive, are directors under the Companies Act 2006.

Board MembershipThe Board is chaired by John Makinson and a list of Board members at the date of this Report is listed on page 4. Board members are appointed for an initial term of four years. Members may be appointed for a second term of up to four years which is extended only in exceptional circumstances.

Board Committees and Subsidiary CompaniesThe membership of the Committees is listed on pages 56 & 57 of this Report and details of the subsidiaries are set out in Note 23 to the financial statements.

Finance and Audit Committee Members of the Finance and Audit Committee are appointed by and from the Board. Key responsibilities are for Finance and Control, Audit and Risk. The Committee met five times during the year and also met as the Remuneration Committee to set the remuneration of the Executive.

NT Future Fundraising and NT Future Project CommitteesThe Committees have responsibility for fundraising for the NT Future project and delivery of the building works. The Committees comprise members of the Board, co-opted external members with particular expertise, the Executive and members of Senior Management. Following the completion of the NT Future project, both these committees have now been stood down.

The Nominations CommitteeThe Nominations Committee is appointed by and from the Board and reviews the structure, size and composition of the Board and, in the light of that review, makes recommendations to the Board with regard to the appointment of new members.

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Development CouncilThe Development Council assists in fundraising for the National. Its members, who are mainly co-opted onto the Council, are appointed by the Board for a specified term. It meets at least three times a year and reports regularly to the Board through its Chair, who is a member of the main Board.

For almost a decade Susan Chinn has chaired the Development Council and been instrumental in driving the growth in fundraising over that time and during a period in which £50m was raised from private sources for NT Future. She is succeeded as Chair by Elizabeth Offord.

Royal National Theatre Enterprises Limited (“RNTE”)RNTE is a wholly-owned trading subsidiary responsible for the National’s trading activities. The National’s Board appoints the directors of RNTE which comprise Board members, external experts and senior members of staff responsible for the trading areas.

National Theatre Productions Limited (“NTPL”)NTPL is a wholly-owned trading subsidiary of the National Theatre whose primary remit is responsibility for the commercial exploitation of NT productions and the exploitation of rights in any production via digital, broadcast or other media. The National’s Board appoints the directors of NTPL which comprise Board members, external experts and senior members of staff. The commercial activities have necessitated the creation of an additional subsidiary, National Theatre North America LLC (formerly named War Horse US LLC).

National Theatre Staging Limited (NTSL)NTSL, formerly NTPL Overseas Limited, is a wholly-owned trading subsidiary of the National Theatre, NTPL Overseas Limited was a 100% owned subsidiary of NTPL at 30 March 2014. On 15 January 2015, NTPL sold their £1 share to the National Theatre for £1. The company was subsequently renamed National Theatre Staging Limited. NTPL Overseas Limited was dormant during 2014/15 and National Theatre Staging Limited is also currently dormant. The subsidiary will be the vehicle for producing NT productions at the South Bank and on tour.

Connected CharitiesDetails of Connected Charities are set out in Note 21 to the Financial Statements.

Executive Management at the NationalThe review of activities shows that the National has many facets. Each area has a Senior Manager who reports to a member of the Executive who in turn report to the Board. In addition to a weekly meeting of the Senior Management Team, efficient cross-departmental working is managed through a series of groups meeting on a regular basis. The key decision-making groups include producing, planning, capital projects, Enterprises and Health and Safety.

Communication is key and the National aims to engage all its employees and others working at the National in its activities and achievements. All staff are invited to a weekly company meeting led by Rufus Norris and Lisa Burger and information from these meetings and other new developments and policies are available on the National’s intranet.

The National has a diversity action plan. All staff are required to cooperate with the National’s policies and procedures to promote inclusivity and diversity but particular focus has been given to understanding why the National’s workforce is not better representative of the UK population, what barriers if any there might be and what measures might be taken to improve diversity. The Health and Safety team is closely involved in the key risk areas of the organisation and advises and assists with health and safety aspects of productions, special events, accident investigations and training.

Other MattersTrustees’ TransactionsThe trustees are not remunerated for their work as Trustees of the National Theatre. From time to time, members of the Board or persons connected with them enter into transactions with the National in the normal course of business of both parties. Such transactions are conducted on an arm’s length basis, on normal commercial terms, and are in accordance with the specific provisions of clause 5 of the Memorandum of Association. It is the Board’s policy that they should be disclosed to and approved by the Board and disclosed in the financial statements.

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STRATEGIC REPORT

A. CHAIRMAN’S STATEMENT

This review appears on the cusp of two leaderships, referring back towards the extraordinary tenure of Nicholas Hytner and Nick Starr, to whom I paid tribute in last year’s report, and looking forward to the creative and commercial opportunities already being captured by their successors Rufus Norris and Lisa Burger.

It is very early days but that delicate balance of change and continuity essential in any transition of creative leadership is so far being achieved with huge success, as is evident from both the critical response to our recent productions and the strength of our box office figures.

We are all aware, however, that the quality and breadth of the work on the NT’s stages are going from strength to strength despite formidable financial challenges. Arts Council England has been both an imaginative and a generous supporter of the National Theatre but it is working within the financial constraints imposed by the current public spending climate. Realistically, we must expect some further erosion in public subsidy over the life of this Government. The NT has been sheltered from the effect of recent spending cuts by the remarkable buoyancy of our commercial box office income in general, and by the War Horse phenomenon in particular. Yet this windfall will not sustain us forever. In September 2015, we celebrated the launch of a Mandarin production of War Horse in Beijing, to great public and critical acclaim, and we have also announced that Joey’s seven year West End run will come to a close early in 2016.

We will of course continue to do more with less and to bolster other sources of revenue. NT Live, our groundbreaking live cinema initiative, is reaching an ever wider audience around the UK and internationally, contributing as much to our public purpose as to our coffers. Taking all of this activity on stages and screens together, the NT reached a paying audience of just over 4m people in the year under review and nearly three quarters of that audience was in the UK.

A creative programme this big and bold would simply not be possible without the help of our supporters and benefactors. Their generosity allows the NT to take risks and engage with new audiences, and underwrites our commitment to education and learning. We will, without a doubt, depend even further on their support in the years ahead, and we are grateful to all of them.

This same support has in the past two years delivered a building on the South Bank that is fit for every purpose that we can envisage. The NT Future project, described in some detail elsewhere in this report, has exceeded all our expectations and we owe a huge debt of gratitude to the legions of people who have contributed in so many different ways to its success. I do, though, want to make special mention of Lisa Burger, our Executive Director, who led the project to fruition with skill and tenacity.

I would also like to express the Board’s sincere thanks to Tessa Ross, who agreed to join the NT as its Chief Executive, working in partnership with Rufus Norris, early in 2014. Sadly , Rufus and Tessa concluded early in 2015 that the envisaged structure would not work effectively for the National Theatre, and Tessa decided that she should stand down at that point. She made an important contribution to the NT, both as a board member and during her time as an executive, and we wish her every success in the future.

We have also said farewell over the past year to four directors – Susan Chinn, Aminatta Forna, Neil MacGregor and James Purnell – who have helped the National Theatre in such a variety of ways over a period of many years. I thank them all. Finally, we are delighted to welcome to the board Elizabeth Offord and Alan Rusbridger. They join an organization filled with people of quite exceptional ability that, despite all the visible challenge and change, feels confident in its performance and its purpose.

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B. OUR PURPOSE

The National Theatre is dedicated to the constant revitalisation of the great traditions of the British Stage and to expanding the horizons of audiences and artists alike. In its three theatres on the South Bank in London, it presents an eclectic mix of new plays and classics from the world repertoire with seven or eight productions in repertoire at any one time. The National Theatre aspires to reflect in its repertoire the diversity of the nation’s culture. With a commitment to openness, wide reaching engagement and access for everyone, the National shares its resources, energy and creativity with audiences and theatre-makers around the globe: using its studio for research and development of new work, offering extensive learning and public engagement programmes, touring and broadcasting in the UK and internationally, and creating innovative digital content.

C. OUR VISION

The National Theatre strives to be a national centre of theatrical arts, central to the creative life of the country and unmatched in the world for scale, range of repertoire and audience reach. It aspires to produce the highest standards by attracting the best artists and staff and by providing an environment which stimulates them to realise the fullest extent of their talents. Education and public engagement are founding principles for the NT and are central to our vision of the future.

D. OUR STRATEGY

- The Artistic Programme and Artistic Development. The NT presents a balanced artistic programme, staging around 20 productions a year from the whole world of drama, with a specific responsibility for the creation of new work and representing the widest range of voices.

- Audiences. The NT is tireless in trying to reach more people, broaden our audiences and give them an unparalleled experience.

- Learning and Engagement. The NT aims to be an inspirational, internationally recognised resource for lifelong learning about and through theatre.

- Broadcast. The NT broadcasts a selection of its repertoire to cinemas in the UK and internationally.- Leadership. As a national theatre, the NT takes responsibility for fostering the health of the wider

British theatre. - Sustainability. The NT operates in a financially and environmentally responsible manner, whilst

striving to increase self-generated income.- Innovation. The NT actively considers the way in which it operates, and strives to innovate in all

areas of activity.

E. OUR ACHIEVEMENTS AND PERFORMANCE

i. IntroductionIn 2014-15, the ticketed audience for National Theatre productions and broadcasts of NT Live in the UK was 2.9m, 46% of whom were outside London. 4.1m tickets were sold globally. More people saw live theatre performances regionally than saw performances at the South Bank. National Theatre productions toured to 36 towns and cities across the UK, spending 82 weeks on the road, underlining the NT’s role as a truly national company. In the financial year, incoming resources were £137.9m with £125.6m of expenditure. Net assets at 29 March 2015 were £80.5m.

ii. ReviewThe National achieved a net surplus of £1.3m for the year, excluding NT Future income and expenditure which is treated as a long term project and movements in any other long term restricted funds; inclusive of these restricted project funds it generated a net surplus of £12.3m for the year. This position was achieved due to capital fundraising support for NT Future and strong ticket sales at the NT, in the West End and on tour and for NT Live. This was further supported by the part settlement of an insurance claim relating to the collapse of the ceiling at the Apollo Theatre during a performance of The Curious Incident of the Dog in the Night-Time back in December 2013.

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987 performances across 25 productions, of which 21 were new productions, were presented at the NT on the South Bank during the year, attracting audiences of 723,993. Three UK touring productions presented 663 performances across the UK and attracted audiences of 720,048.

NT Future, the project to transform our facilities, progressed throughout the year and many areas of the project, including the Dorfman Theatre, the Clore Learning Centre, the Sherling High-Level Walkway and the Max Rayne Production Centre successfully opened to the public. The NT’s northeast corner has been transformed with the opening of a new bar and café and the new Sackler Entrance Pavillion opens up views into the theatre from the riverside. Pledged funding towards the £83m fundraising target fell just £0.5m short of its total target at the end of the year, with £26.7m being spent on project expenditure. Performances have continued as normal throughout the year with the temporary performance space, The Shed, replacing the Cottesloe during its refurbishment. However, the building works have inevitably impacted on operating costs and trading income.

The opening of the Clore Learning Centre in September 2014 has transformed the National’s approach to education, embedding it at the heart of the building. New programmes for schools, 16-21 year olds, families and adult learners have been launched, drawing on the skills of artists and staff from across the NT to open up all aspects of theatre making from playwriting to design and technical skills. In the first six months, attendances were 8,951 across 150 projects, varying from an hour’s talk to a 10 week course.

NT Live continued to expand with 600 cinemas now in the UK. Catchment predictions show that 36 million adults live within 12 minutes drive of an NT cinema. This is approximately 68% of the population. The NT continues to partner with other theatres, including two productions from the Young Vic: A Streetcar Named Desire and A View From The Bridge.

The funding received from the Arts Council is vitally important to maintain the innovation and accessibility of which the NT is proud. This income is also multiplied several times over in order to vastly expand the reach of the NT beyond the South Bank. Arts Council funding was held at the same level as the prior year, at £17.6m. This represents 15% of the income received by the NT with the remainder coming from Box Office, Commercial Transfers, Fundraising and Trading.

Income from commercial transfers has significantly increased to offset the impact of the real term cut (25.9% since 2010-11) in Arts Council funding and delivered £5m net earnings in 2014/15 which were used in full to support activity at the NT. Over the last few years £7.5m of income from commercial transfers has been used to seed fund NT Future, with £1.7m being used to finance the Shed and £1m funding the Inside Out Festival. It is positive to be able to report this success and diversification of income, but it must be remembered that this income source is not guaranteed.

The Trustees have reviewed the financial outlook and, whilst acknowledging the risk surrounding box office income and earnings from commercial transfers, consider the recent financial performance and level of reserves to indicate that the National will be able to continue to operate on a going concern basis.

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iii Audiences

The table below shows the five year trend of attendances.

National Theatre paid attendances (thousands) 2014/15 2013/14 2012/13 2011/12 2010/11

Olivier 361 364 342 353 355Lyttelton 250 269 314 286 285Dorfman / Cottesloe 59 - 103 108 104Temporary Theatre 28 75 - - -West End 710 778 705 630 408UK Touring 720 392 97 63 79International Touring 775 869 770 - 2Other 25 32 16 8 -Total 2,928 2,779 2,347 1,448 1,233

NT Attendance as % of capacity 86% 86% 90% 90% 92%

Number of performances: 2014/15 2013/14 2012/13 2011/12 2010/11

Olivier 364 339 339 357 343Lyttelton 311 360 394 391 373Dorfman / Cottesloe 173 - 325 368 373Temporary Theatre 139 369 - - -West End 951 1,005 409 421 414UK Touring 663 251 96 70 98International Touring 725 727 476 - 2Other 54 98 61 50 -Total 3,380 3,149 2,100 1,657 1,603

29% of all attendees to the NT at the South Bank were first-time bookers and a total of 159,201 under-18s and college groups attended performances at the NT and in the West End.

Half-price tickets for under-18s continued to be available for all productions outside the Travelex season and the tickets sold represented a discount of £2.8m against average ticket price. Membership of the Entry Pass scheme providing discounted tickets for under-25s grew by 1.8% to 47,915 people.

The major access initiative continued to be the Travelex scheme. £15 tickets were made available for all productions at the NT during the year.

19,727 concessionary tickets were sold to disabled people and their companions for NT productions in London where we provided 37 captioned performances, two sign language interpreted performances, 36 audio-described performances, 26 touch tours and three relaxed performances.

On tour in the UK there were 35 audio described performances, 35 touch tours, 27 captioned performances and 27 sign language interpreted performances. In an expansion of the relaxed performance provision there were two relaxed screenings of NT Live.

A new scheme to widen access to tickets using contemporary trends, Friday Rush Tickets, was announced in April 2014. At least 10 tickets per performance, priced at £20, are released at 1pm for all performances the following week.

The NT’s rolling audience insight programme forms the backbone of the organisations research function. Audiences are surveyed post booking and post visit to understand motivations for attendance, experience, reactions to work, demographics, and lifestyle. The ability to spot trends is invaluable in evaluating success and informing future planning, and will inform the audiences plan for 2016-18.

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An extensive project focussing on UK NT Live audiences was undertaken. Additionally, geo-demographic data was crossed with industry data to analyse success in reaching non-theatre attending audiences.

iv The Artistic Programme and Artistic Development

Number of productions(new in brackets): 2014/15 2013/14 2012/13 2011/12 2010/11

Olivier 8 (7) 8 (6) 9 (6) 8 (7) 7 (6)Lyttelton 9 (8) 8 (6) 10 (7) 11 (9) 9 (6)Dorfman 3 (3) - - - - - - - -Temporary Theatre / Cottesloe 5 (3) 17 (12) 7 (5) 8 (7) 9 (9)

25 (21) 33 (24) 26 (18) 27 (23) 25 (21)

There were 25 productions in repertoire at the National during the year.

In addition to the 21 new productions built and staged at the National, there were productions of War Horse at the New London and on tour in the UK, North America, Berlin and Holland, and of Curious Incident at the Gielgud, on Broadway and on a UK Tour. In addition to a UK touring production of One Man, Two Guvnors, the National transferred Great Britain to the West End for a limited run as well as Elephantom which played during the day at the New London Theatre.

The Studio has continued to play a vital role in initiating, developing and generating much of the work that has been presented on the National’s stages over the year. Breadth of form is matched by the wide network of artists with whom we have worked. Alongside NT repertoire work is a commitment to support both emerging and established UK artists and companies, which this year included Birmingham Rep, Bristol Old Vic, the National Theatre of Wales and the New Vic in Stoke. 64 workshops took place involving theatre-makers of all kinds.

PRODUCTIONS OPENING IN 2014-15

A SMALL FAMILY BUSINESSAlan AyckbournDirector Adam PenfordDesigner Tim HatleyLighting Designer Paul AndersonMusic Grant OldingFight Director Alison De BurghSound Designer Gareth FryCompany Voice Work Jeannette NelsonStaff Director Daniel RaggettOlivier 8 April 2014

THE SILVER TASSIESean O’CaseyDirector Howard DaviesSet Designer Vicki MortimerCostume Designer John BrightLighting Designer Neil AustinMusic Stephen WarbeckMovement Director Scarlett MackminSound Designer Paul GroothuisFight Director Terry KingCompany Voice Work Kate GodfreyDialect Coach Charmian HoareStaff Director Will WrightsonLyttelton 23 April

Special Relationships Productions

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YELLOW FACEDavid Henry HwangDirector Alex SimsDesigner Lily ArnoldLighting Designer Joshua CarrSound Designer Isobel Waller-BridgeAssociate Director Zachary JamesTemporary Theatre 8 MayTemporary Theatre Partner Neptune Investment Management

A 1927 Production

THE ANIMALS AND CHILDREN TOOK TO THE STREETSWriter and Director Suzanne AndradeFilm, Animation & Design Paul BarrittCostume Esme Appleton & Sarah MunroMusic Lillian HenleyAnimation Assistant Derek AndradeProducer Jo CrowleyLyttelton 23 May 2015(previously at the Cottesloe in December 2011 & Lyttelton in December 2012)

HOTELPolly StenhamDirector Maria AbergDesigner Naomi DawsonLighting Designer David HolmesSound Designer Alex CaplenFight & Movement Director Kate WatersAssociate Designer Lucy SierraCompany Voice Work Jeannette NelsonDialect Coach Daniele LydonStaff Director Holly Race RoughanTemporary Theatre 5 JuneTemporary Theatre Partner Neptune Investment Management

GREAT BRITAINRichard BeanDirector Nicholas HytnerDesigner Tim HatleyVideo Design 59 ProductionsLighting Designer Neil AustinMusic Grant OldingSound Designer Paul ArdittiCompany Voice Work Kate GodfreyAssociate Director Alex BrownStory Consultant Clive ColemanLyttelton 30 JuneTheatre Royal Haymarket 9 September

MEDEAEuripides, in a new version by Ben PowerDirector Carrie CracknellDesigner Tom ScuttLighting Designer Lucy CarterChoreographer Lucy GuerinMusic Will Gregory & Alison GoldfrappSound Designer Gregory ClarkeFight Director Owain GwynnCompany Voice Work Jeannette Nelson & Daniele LydonStaff Director Ned BennettOlivier 21 July

Landmark Productions and Galway International Arts Festival

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BALLYTURKEnda WalshDirector Enda WalshDesigner Jamie VartanLighting Designer Adam SilvermanSound Designer Helen AtkinsonComposer Teho TeardoLyttelton 16 September

A co-production with the National Theatre of ScotlandAnd the Edinburgh International Festival

THE JAMES PLAYSJames I: The Key Will Keep The LockJames II: Day of the InnocentsJames III: The True MirrorRona MurrayDirector Laurie SansomDesigner Jon BausorLighting Designer Philip GladwellMovement Director Neil BettlesMusic J I & J III Paul Leonard-Morgan, J II Will GregorySound Designers J I & J II Christopher Shutt, J III Nick SagarPuppetry Director Mervyn MillarPuppet Designer Mervyn Millar for Significant Object LtdFight Directors Rachel Bown-Williams & Ruth Cooper-Brown of RC-Annie LtdAssociate/Staff Director Amanda GaughanAssociate Designer Jean ChanAssociate Lighting Designer Rob CaseyAssociate Sound Designer (JI & JII) Nick SagarPerforming Music Director Alasdair MacraeCompany Voice Work Jeannette NelsonOlivier 25 SeptemberSponsored by Travelex

The Public Theatre Production

HERE LIES LOVEConcept & Lyrics David ByrneMusic David Byrne & Fatboy SlimAdditional Music Thomas Gandey & José Luis PardoDirector Alex TimbersChoreographer Annie-B ParsonSet Designer David KorinsCostume Designer Clint RamosLighting Designer Justin TownsendSound Designers M L Dogg and Cody SpencerProjection Designer Peter NigriniMusic Supervisor Kimberly GrigsbyCollaborating Music Producer Justin LevineMusic Editor Matt StineAssociate Director Andrew ScovilleAssociate Choreographer Elizabeth DementUK Music Director Theo JamiesonAssociate Set Designer Amanda StephensAssociate Costume Designer Christopehr VergaraAssociate Lighting Designer Jake DeGrootAssociate Sound Designer Tony GayleFight Director Kate WatersCompany Voice & Dialect Work Jeannette Nelson & Daniele LydonAssistant Choreographer (London) Steve KirkhamStaff Director Elle WhileAssistant Director/Choreographer (NY) Richard J HindsCasting Director Pippa Ailion CDGDorfman 13 October

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Dorman Theatre Partner Neptune Investment Management

Revival of 2014 production

ROMEO AND JULIETWilliam ShakespeareIn a version for young audiences by Ben PowerDirector Bijan SheibaniDesigner Becs AndrewsLighting Designer Paul KnottMusic Soumik DattaChoreographer Aline DavidSound Designer Mike WinshipCompany Voice Work Kate GodfreyAssistant Director Rikki HenryTemporary Theatre 29 OctoberSupported by: The Ingram Trust, The Archie Sherman Charitable Trust, Behrens Foundation, Ernest Cook Trust, Mohamed S. Farsi Foundation, Goldsmiths’ Company Charity, Jill and David Leuw, Mulberry Trust, Newcomen Collett Foundation, St Olave's and St Saviour's Schools Foundation, Royal Victoria Hall Foundation, The Topinambour Trust.

DV8 Physical Theatre

JOHNConceived and directed by Lloyd NewsonCreative Associate Hannes LangolfAssistant to the Director David GrewcockChoregraphy Lloyd Newson with the performersSet & Costume Design Anna FleischleLighting Design Richard GodinSound Design Gareth FryLyttelton 4 NovemberSponsored by Travelex

BEHIND THE BEAUTIFUL FOREVERSDavid HareBased on the book by Katherine BooProduced in association with Scott RudinDirector Rufus NorrisDesigner Katrina LindsayLighting Designer Paule ConstableSound Designer Paul ArdittiVideo Designer Jack Henry JamesFight Director Kate WatersCompany Voice Work Jeannette Nelson & Daniele LydonDialect Coach Zabarjad SalamStaff Director Emily LimOlivier 18 NovemberSponsored by Travelex

3 WINTERSTena Štivičić Director Howard DaviesDesigner Tim HatleyLighting Designer James FarncombeMusic Dominic MuldowneyProjection Designer Jon Driscoll for cineluminaSound Designer Mike WalkerMovement Director Jack MurphyFight Director Terry KingCompany Voice Work Kate GodfreyStaff Director Mel HillyardLyttelton 3 December

TREASURE ISLANDRobert Louis StevensonAdapted by Bryony Lavery

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Director Polly FindlayDesigner Lizzie ClachanLighting Designer Bruno PoetMusic & Sound Dan JonesSongs John TamsFight Director Bret YountMovement Jack MurphyIllusionist Chris FisherMusic Supervisor Matthew ScottMusic Director Theo JamiesonComedy Consultant Clive MendusCreative Associate Carolina ValdésCompany Voice Work Jeannette Nelson & Daniele LydonStaff Director Sam CairdOlivier 10 DecemberSponsored by Royal Bank of Canada

DARAAdapted by Tanya Ronder from Shahid Nadeem’s playoriginally performed by Ajoka Theatre, PakistanDirector Nadia FallDesigner Katrina LindsayLighting Designer Neil AustinMusic Niraj ChagMovement Director Liam SteelSound Designer Carolyn DowningFight Director Kate WatersCompany Voice Work Kate GodfreyVocal Music Director Japjit KaurStaff Director Ola InceAssociate Sound Designer Ed FergusonProduction Consultant Anwar AkhtarLyttelton 27 January 2015

THE HARD PROBLEMTom StoppardDirector Nicholas HytnerDesigner Bob CrowleyLighting Designer Mark HendersonSound Designer Paul ArdittiMusic JS BachMusic Supervisor Matthew ScottCompany Voice Work Jeannette NelsonStaff Director Zachary JamesDorfman 28 JanuaryDorman Theatre Partner Neptune Investment Management

MAN AND SUPERMANBernard ShawDirector Simon GodwinDesigner Christopher OramLighting Designer James FarncombeVideo Designer Luke HallsMusic Michael BruceMovement Director Jonathan GoddardSound Designer Christopher ShuttIllusionist Darren LangCompany Voice Work Jeannette Nelson & Daniele LydonDialect Coach Kate GodfreyStaff Director Alice HamiltonLyttelton 25 February

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RULES FOR LIVINGSam HolcroftDirector Marianne ElliottDesigner Chloe LamfordLighting Designer Neil AustinMusic Adrian SuttonSound Designer Ian DickinsonFight Director Kate WatersCompany Voice Work Jeannette NelsonStaff Director Melanie SpencerDorfman 24 MarchDorman Theatre Partner Neptune Investment Management

v. NT Live and touringThe NT continued to reach wider audiences who cannot come to the theatre in London through live broadcast into cinemas, touring and its overseas productions.

NT Live grew its distribution in the UK and internationally, adding 10 new territories and expanding partner productions, including two sold-out Young Vic productions and a co-production with DV8. There were 8 NT Live broadcasts during the year to audiences of 0.7m in 600 UK venues and audiences of 0.5m overseas.

The National co-produced London Road, its first feature film adaptation, and will distribute it through NT Live to almost 300 cinemas, a huge release for a British independent film.

Three NT productions on tour in the UK, War Horse, The Curious Incident of the Dog in the Night-Time and One Man Two Guvnors visited 36 UK cities and spent 82 weeks on the road. Internationally, War Horse played in Berlin, Japan, toured the Netherlands and opened in Antwerp in April 2015. Curious Incident opened on Broadway, going on to win five Tony Awards, including Best Play. As part of the strategic partnership with the National Theatre of China, a Chinese language production of War Horse opened in Beijing in September 2015 before touring.

2010-11 2011-12 2012-13 2013-14 2014-15 -

200

400

600

800

1,000

1,200

1,400

1,600

Touring Trends

Tickets sold ('000)No of performancesNo of touring weeks

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vi AwardsDuring the year the National Theatre has won a series of awards

The 50+ Awards 2014Best 50+ Theatrical Show: Gold: War Horse

2014 Group Travel AwardsBest Live Stage/Theatrical Performance: War Horse

2014 Blueprint AwardsBest Sustainable Project: The Shed by Haworth Tompkins

2014 UK Event AwardsSmall Venue of the Year: The Deck

2014 Logo TV New Now Next Awards (US)Best New Broadway Production: The Curious Incident of the Dog in the Night-TimeBest New Broadway Lead Actor : Alex Sharp for The Curious Incident of the Dog in the Night-Time

2014 Writers’ Guild AwardsBest Play: James I by Rona Munro

2014 Falstaff Awards (playshakespeare.com)Best Principal Performance, Female: Kate Fleetwood for Goneril in King LearBest Director: Sam Mendes for King Lear

2014 Evening Standard AwardsBest Play: The James Plays by Rona MunroBeyond Theatre Award: Here Lies Love

2014 Whatsonstage.com AwardsBest Actress in a Play: Billie Piper for Great Britain

2014 Fleur du Cap Theatre Awards (South Africa)Best Puppetry Design: Adrian Kohler and Basil Jones for War Horse

2014-15 New York Outer Critics’ Circle AwardsOutstanding New Broadway Play: The Curious Incident of the Dog in the Night-TimeOutstanding Director of a Play: Marianne Elliott for Curious IncidentOutstanding Set Design: Bunny Christie for Curious IncidentOutstanding Lighting Design: Paule Constable for Curious IncidentOutstanding Actor in a Play: Alex Sharp for Curious Incident

2015 Drama League Awards (New York)Outstanding Production of a Broadway or Off-Broadway Play: The Curious Incident Of the Dog in the Night-Time

2015 RIBA London AwardsNT Future by Haworth Tompkins

2015 Drama Desk Awards (New York)Outstanding Play: Simon Stephens,The Curious Incident of the Dog in the Night-TimeOutstanding Actor in a Play: Alex Sharp for The Curious Incident of the Dog in the Night-TimeOutstanding Director of a Play: Marianne Elliott for The Curious Incident of the Dog in the Night-TimeOutstanding Lighting Design: Paule Constable for The Curious Incident of the Dog in the Night-TimeOutstanding Projection Design: Finn Ross for The Curious Incident of the Dog in the Night-TimeOutstanding Sound Design in a Play: Ian Dickinson (for Autograph) for The Curious Incident of the Dog in the Night-Time

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2015 Tony Awards (New York)Best Play: The Curious Incident of the Dog in the Night-TimeBest Performance by an Actor in Leading Role in a Play: Alex Sharp for The Curious Incident of the Dog in the Night-TimeBest Scenic Design of a Play: Bunny Christie and Finn Ross for The Curious Incident of the Dog in the Night-TimeBest Lighting Design of a Play: Paule Constable for The Curious Incident of the Dog in the Night-TimeBest Direction of a Play: Marianne Elliott for The Curious Incident of the Dog in the Night-Time

2015 RIBA National AwardsNational Theatre (NT Future) by Haworth Tompkins

vii. Learning and Engagement

The opening of the Clore Learning Centre placed the NT’s work with children and young people at the heart of the theatre. This has enabled the extension of the primary and secondary schools programmes and the introduction of a new focus on Further Education, a diverse programme for 16-21 year olds and regular family activity. New secondary and FE projects have focused on technical, craft and production skills and explored the NT archive resources, while new primary programmes support theatre-making and performances in schools at Key Stage 1 and 2. The 16-21 programme offers both skills-development and creative opportunities. The first year target to involve 100 schools new to the NT was exceeded in six months, with 129 schools participating.

The NT continues to develop the skills of teachers and practitioners. The first annual Drama Teachers’ conference led by senior artists at the NT attracted 121 teachers from across the UK and this year saw the first in-depth facilitation skills course for BAME artists.

The Learning programme reaches beyond the NT with growth in numbers taking part in Connections, education work linked to the Curious Incident tour and a developing network across London youth and community organisations to target diverse participants for our 16-21 and community programmes. The new schools streaming service, On Demand in Schools, was announced in January 2015 and has attracted more than 1,900 subscriptions from teachers. The NT has also been active in the development of the new Drama GCSE and A level, consulting with DfE, Ofqual and exam boards.

There were over 2.5 million downloads and streams of free digital content surrounding NT productions and theatre craft, an increase of 2.3 million on prior year figures. A digital publishing arm is being built that will drive engagement through content and has potential to be a new source of revenue. On site, the Lyttleton Lounge allows audiences to stream rights-restricted content from Archive over a private wireless network in curated exhibitions.

viii Financial Sustainability

Exclusive of restricted capital and project funding, the National Theatre achieved a close to break-even position of £1.3m on its operating activities. The NT’s current level of activity is heavily dependent on the funding received from the Arts Council for its core activities, which in 2014-15 was £17.6m.

In order to ensure financial sustainability, the National has a rolling three year business plan which looks in detail at potential challenges as well as opportunities for the organisation.

Over the past five years the NT has coped with cuts to its ACE funding and has been able to deliver activity growth by increasing its commercial transfer earnings. The recognised challenge for the NT is that the pipe-line of productions which have the capacity to extend beyond the South Bank is very uncertain. The strategy over the next three years is to reduce budgeted dependency on this income stream whilst continuing to consider the potential for further commercial exploitation of all shows presented at the NT to both extend our reach and provide much needed funding to support core activity. The business plan also includes a diversification strategy focussing principally on growing fundraising but also anticipating earnings growth from NT Live and on-site retail trading following the investment in new bars and cafes. In addition, the cost base and activity plans are reviewed constantly, ensuring value for money whilst delivering the breadth of work and reach that the National is keen to deliver.

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ix Environmental Sustainability

The National Theatre recognises that, as one of the world’s major production theatre companies, its activities have significant and wide-ranging environmental impacts and that it has a responsibility to minimise those impacts. As an organisation, the National Theatre also aspires to lead by example within the theatre sector. This is demonstrated by the Theatre’s NT Future project which is seeing the organisation’s energy use cut by around 20% by undertaking initiatives to maintain a downward trend of carbon reduction.

In 2014/15, the organisation achieved a 60% recycling rate. The NT has a zero-to-landfill policy which means that all waste is re-used. General waste is taken to an energy-from-waste facility where it is incinerated and the energy generated is put back into the National Grid.

FUTURE PLANS

The National Theatre strives to be a national centre of theatre arts, with education and public engagement being the founding principles that are central to the vision for the future. To this end, the NT sets specific objectives for the following financial year, to be worked on alongside the core objectives for the organisation. Progress against the 2014-15 objectives is reviewed throughout this document.

2015-16 Objectives

The following objectives have been set for the 2015-16 financial year

To present a diverse and popular repertoire to reach the widest possible audience of around 25 productions at the South Bank.

To continue to explore new ways of making theatre at the highest level and to encourage collaborative practices, including partnerships with other theatres nationally and internationally.

To develop the NT’s New Work department, to grow our support and encouragement to writers and artists in developing work for our stages alongside other theatre-makers.

To develop our use of the new facilities of the Clore Learning Centre and Max Rayne Centre to allow us to engage with young people and theatre makers in new ways, providing a space for sharing ideas and practices.

To continue to develop digital content of the highest quality working across on-line and broadcast platforms, with particular focus on developing our digital learning offer and accessibility of productions to schools.

The continued transition of the new leadership of Rufus Norris and Lisa Burger.

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TRUSTEES AND DIRECTORS REPORT

FINANCIAL REVIEW

Set out below is a summary statement of income and expenditure. It combines the National’s unrestricted income and expenditure with short term project expenditure funded by earmarked donations (restricted funds) and the element of the regular ACE grant which has been restricted to capital expenditure (£1.9m). It excludes NT Future income and expenditure which is treated as a long term project, as well as movements in any other long term restricted funds.

2015 2014£m £m

IncomeBox Office - NT South Bank 18.6 16% 18.3 18%Box Office - on tour in the UK & in the West End 40.8 35% 35.9 36%Box Office - International 14.0 12% 3.8 4%NT Live 6.1 5% 6.7 7%Trading and other income 13.0 11% 11.2 11%Fundraising 7.4 6% 6.5 7%ACE grants 17.8 15%   17.5 17%  117.7 100%   99.9 100%

ExpenditureProduction costs – NT South Bank 36.3 32% 36.5 37%Production costs – on tour in the UK & in the West End 39.3 34% 32.6 34%Production Costs – International 11.0 10% 4.1 4%NT Learning, NT Live and Public Engagement 10.6 9% 9.1 9%Research 1.9 2% 1.9 2%Trading 11.9 10% 10.7 11%Fundraising 1.8 2% 1.6 2%Irrecoverable VAT 0.9 1% 0.8 1%Governance 0.2 -   0.2 -  113.9 100%   97.5 100%

The NT makes an annual transfer to the Buildings and Equipment Fund of £2.5m to fund routine capital purchases.        Net result after transfers 1.3    

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PRINCIPAL FUNDING SOURCESThe National maintains a balance between self-generated income – box office, fundraising, exploitation of National Theatre productions in UK and internationally, catering and front of house trading – and public subsidy from Arts Council England (ACE).

ACE; 15%

Box office at NT; 16%

Box office on tour & West End, 35%

Box office International; 12%

NT Live; 5%

Trading & other in-

come; 11%

Fundraising; 6%

Box Office IncomeBox office income on the South Bank as well as income from the West End runs of War Horse and Curious Incident and UK tours of War Horse, One Man, Two Guvnors and The Curious Incident of the Dog in the Night Time together with international productions of War Horse and Curious Incident, as well as other UK transfers and NT Live represented 68% of the National’s total income.

Arts Council England FundingThe core revenue grant for 2014-15 was £15.7m and in addition £1.9m of the core grant was received in the form of a capital grant for regular major building maintenance. This element was therefore restricted as long term income and has been fully utilised for capital expenditure in the year.

The total grant of £17.6m is £0.1m higher than the amount received in the previous year. However since 2010-11, the grant has been cut by £2.1m, a real terms reduction of 25.9%.

During the year, the NT received a further £8.6m from the Arts Council’s Capital Lottery Fund and £1.5m from the Heritage Lottery Fund towards NT Future building works. This takes the amount received to date to £17.6m of the total Lottery funding of £20m.

FundraisingThe development department had a strong year raising £20.2m for NT Future as well as £8.1m for revenue activity, of which £0.6m was in relation to commercial promotion and is recorded within RNTE.

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Trading and Other IncomeTrading operations, including catering, bookshop, programmes, car park, costume hire and commercial promotion, are conducted through the National’s wholly-owned subsidiary Royal National Theatre Enterprises Limited. The car park is operated under a franchise and the new Green Room restaurant is operated by the National but under a joint arrangement with Coin Street Community Builders. All the other businesses are operated directly by the National.

Due to the continued impact of NT Future works, several trading areas, including the Lyttelton Bookshop and the Mezzanine, were not able to trade for the full financial year and access to other areas was significantly disrupted. As a result, the total profit before the management charge payable to the National was £1.3m compared to £1.7m in the prior year.

Other income included bank interest receivable and income from education activities.

The National Theatre continues to benefit from its culturally-exempt VAT status, which means that there is no VAT on ticket income at the National Theatre but that a proportion of VAT on expenditure is irrecoverable.

REVENUE EXPENDITURE

Production CostsProduction expenditure at the National Theatre, in the West End and on tour represented 76% of total expenditure for the year which can be analysed as follows:

Performance Running; 29%

Actors and Musicians;

17%

Production Build, 22%

Planning and Direction; 18%

Writers, Direc-tors and De-signers, 14%

Touring, 0%

NT Learning and Public EngagementTotal spend for the year for the NT Learning (Education) programme was £2.4m. £0.4m was covered by fundraising, £0.5m generated through ticket and fee income and the remainder covered by core funding.

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Spend for other public engagement activities was £8.1m. This included £6.8m for NT Live and £0.5m for Digital Projects.

Research and DevelopmentExpenditure on research and development totalled £1.9m, including £1.1m expenditure in the NT Studio.

Support CostsSupport costs cover expenditure on front of house staff responsible for contact with the audience; marketing, box office and press; management and maintenance of the building including insurance and energy costs; and finance, HR and IT. These costs are allocated against the activities listed above. Costs increased by £1.3m to £16.8m in the year primarily due to increased expenditure around building operations and IT resources as the building entered the final completion stages of the NT Future project.

Capital ExpenditureTotal capital expenditure for the year (excluding NT Future) was £3.9m. This spend includes several major projects, including the new website development and services layer, furnishing the new Green Room Restaurant, Fire alarm panel replacement, Centralised data storage replacement and the scheduling system redevelopment.

Capital expenditure in relation to NT Future totalled £25.9m in 2014-15 (2013-14 £21.6m) with both Phase A and Phase B and the Technical and Environmental Master Plans nearing completion.

The annual transfer from the operations fund to the designated funds for capital was £2.5m in line with the transfer made in 2013-14. Irrecoverable VAT capitalised in the year was £0.9m (2013-14 £0.9m).

RESERVES AND OTHER FINANCIAL POLICIESUnrestricted Operations FundThe policy for budgeting annual income and expenditure is directed towards enabling the National to continue its current level and quality of activity. In order to avoid accumulating a deficit, the National seeks each year to match income and expenditure, whilst taking into account the level of grant receivable from the Arts Council.

The unrestricted reserves target increased to £5m in recognition of the volatility of box office revenue and the knock-on impact of a reduction in box office attendance on catering profits and fundraising, and the risk of future cuts in public funding. Unrestricted reserves as at March 2015 of £3.9m fall short of this target level; the intention is to reach this target over the next three years.

Buildings and Equipment Designated FundThe policy is to ensure that sufficient money is set aside in the reserve so that over a three-year period the National is able to maintain and renew the building in accordance with its rolling capital plan. Expenditure planned beyond 2014-15 is in excess of the sum which could be reasonably anticipated to be covered from recurring surpluses and fundraising sources; however this is being addressed within NT Future.

NT Future Designated FundIn addition to the new building and refurbishment works, the NT Future project includes two strands to address the essential technical and infrastructure works to be completed in the next five years: the Technical Master Plan and the Environmental and Engineering Master Plan.

NT Future capital project work will generate irrecoverable VAT which will be covered by the VAT repayments received in 2010-11 and designated to offset this cost.

Restricted FundsThese are funds which have been earmarked by the donor for specific purposes within the overall aims of the organisation. The funds are analysed between long-term and short-term – long-term being mostly for capital purposes, including NT Future, and short-term for project activity, as set out in note 18 of the accounts. Short term funds will be spent in full in the next 18 months. The balance on the long-term capital funds represents funds received from donors to purchase fixed assets less the depreciation charged on an annual basis. Over time, these reserves will reduce to zero as the assets are fully depreciated.

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Investment PolicyThe policy is to hold investments in liquid funds so they are available to meet predicted cash-flow needs. In selecting suitable cash deposits the policy is to maximise the return and maintain low transaction costs whilst ensuring high levels of capital security by minimising credit risk and interest rate risk. The policy was reviewed by the Finance and Audit Committee in 2014/15 and deposits and interest rates are reviewed each time the Finance and Audit Committee meets. At 29 March 2015, the cash deposits were spread between four major clearing banks and CCLA. The bank interest earned for the year was £0.04m (2013-14 £0.2m) reflecting the expenditure during the year on NT future and fact that cash was on instant access rather than long term deposits.

Creditor Payment PolicyIt is the National’s policy to pay creditors in accordance with terms of payment agreed at the start of business with each supplier.

C. INTERNAL CONTROL AND RISK MANAGEMENT

The Trustees are responsible for ensuring the National Theatre has effective risk management and control systems in place. Agreed processes are in place by which the Trustees review, identify and assess major risks and agree with management the controls that already are, or will be, put in place to manage those risks. The details form part of the Risk Register, which Trustees review on a regular basis. Senior management has responsibility for managing resources, monitoring performance and establishing and maintaining effective internal control systems. The system of internal control and risk management is designed to:

Identify and prioritise strategic and operational risks to the achievement of the National Theatre’s aims and objectives;

Evaluate the likelihood of those risks being realised and their potential impact; and Manage these risks efficiently, effectively and economically.

The Trustees are satisfied that appropriate internal control systems and risk management processes are in place.The key components of the National Theatre’s risk management include:

A three year strategic plan and annual budget approved by the Trustees, against which progress is reported regularly, including monthly financial reporting of results;

Regular consideration by the Trustees of financial results and variance from budgets; Delegation of authority and segregation of duties; Senior management review of key strategic and operational risks on a regular basis. Consideration is

given to progress on mitigating actions, new and emerging risks, and opportunities. The Internal Auditor reviews risks and internal controls on a regular basis and reports findings to the

Finance and Audit Committee. The Trustees review the National Theatre’s risk register on a regular basis. Clear policies on health and safety and safeguarding children and vulnerable adults to ensure

compliance with statutory requirements.

The system is designed to manage rather than to eliminate the risks faced by the National Theatre and it must be recognised that such a system can provide only reasonable and not absolute assurance.

PRINCIPAL RISKS AND UNCERTAINTIES

The National Theatre faces the following principal risks and challenges:

Balancing its artistic and audience development objectives with commercial considerations necessary to ensure continued financial viability in the current public funding climate.

The risk of further cuts to its public funding which would have an adverse effect on its current activity levels.

Ensuring sufficient annual surpluses are generated from primary and secondary trading to allow for the maintenance and renewal of its existing facilities and operating assets to continue to meet its artistic production and audience needs.

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Financial Risk ManagementThe following statements summarise the Board’s policy in managing identified forms of financial risk.

Price risk: Payments to employees or individuals represent 37% of total expenditure at the National and higher levels of inflation represent a risk as 15% of the National’s income, which comes from the Arts Council, has fallen for the past three years and is not expected to reach 2010-11 levels in the next two years. The National has freedom over its ticket pricing, and ticket income represents 62% of revenue. However the aim is to limit ticket price increases to no more than inflation and hold the lowest ticket price at an accessible level as this has been found to be the best way of maximising revenue and increasing access.

Credit risk: Risk on amounts owed to the charity by its customers is low as payment for ticket sales and operations through the trading subsidiary are mostly settled at point of purchase.

Liquidity risk: The National has no long-term borrowings.

Interest rate cash flow risks: The National places surplus funds on short-term deposit split between four major clearing banks and CCLA. Interest rates available on longer term deposits are kept under review but longer term deposits will only be made for specific major project funds where the term of the deposit matches the anticipated cash flow requirement.

Property InterestsThe National has a lease of its building on the South Bank site from Arts Council England for a term expiring in March 2138. The Building is Grade 2* listed. The freehold of the Old Vic Annexe (the Studio), The Cut, London SE1 is owned by the National and this building was listed in March 2006. The Studio building has been provided as security in the form of a 30 year legal mortgage in relation to a grant for refurbishment of the Studio.

In 2012, a fixed and floating charge lasting 30 years was provided as security for the potential repayment obligations under a grant of £17.5m from Arts Council England for the NT Future project.  In addition, in 2013 a fixed and floating charge lasting 25 years will be provided as security for the potential repayment obligations under a grant of £2.5m from Heritage Lottery Fund for the NT Future project. 

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS

The trustees (who are also directors of Royal National Theatre for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume

that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company’s auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any

relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Trustees IndemnitiesAs permitted by the Articles of Association, the Trustees have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Company also purchased and maintained throughout the financial year Trustees’ and Officers’ liability insurance in respect of itself and its Trustees.

Statement on disclosure of information to the auditors

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company’s auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any

relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AuditorsPricewaterhouseCoopers LLP will continue in office as auditors of the Charity for the next financial year.

The Strategic Report and Trustees and Directors Report were approved by the Board of Directors and authorised for issue on 28 September 2015 and signed on its behalf by

John MakinsonChairman28 September 2015

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE ROYAL NATIONAL THEATRE

Report on the financial statementsOur opinion

In our opinion, The Royal National Theatre’s group financial statements and parent charitable company financial statements (the “financial statements”):

give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 29 March 2015 and of the group’s incoming resources and application of resources, including its income and expenditure and the group’s cash flows for the 52 weeks then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

What we have auditedThe Royal National Theatre’s group financial statements and parent charitable company financial statements comprise:

the balance sheets as at 29 March 2015; the group statement of financial activities (including an income and expenditure account) for

the 52 weeks then ended; the group cash flow statement for the 52 weeks then ended; and the notes to the financial statements, which include a summary of significant accounting

policies and other explanatory information.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

In our opinion the information given in the Trustees’ Annual Report, including the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exceptionAdequacy of accounting records and information and explanations receivedUnder the Companies Act 2006 we are required to report to you if, in our opinion:

we have not received all the information and explanations we require for our audit; or adequate accounting records have not been kept by the parent charitable company, or

returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting

records and returns.

We have no exceptions to report arising from this responsibility.

Trustees’ remuneration

Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of trustees’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the auditOur responsibilities and those of the trustees

As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

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Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the charity’s members and trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose.

We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What an audit of financial statements involves

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:

whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

We primarily focus our work in these areas by assessing the directors’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements.We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.

In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Nicholas Boden (Senior Statutory Auditor)for and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsLondonSeptember 2015

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GROUP STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT)for the 52 weeks ended 29 March 2015

52 Weeks ended

52 Weeks ended

29 March 30 March2015 2014

Unrestricted Funds Restricted Funds

Operations Designated ProjectsLong Term Total Total

£m £m £m £m £m £mIncoming resources NoteIncoming resources from generated funds:

Voluntary income 2(a)/(b) 21.9 - 1.4 22.1 45.4 47.6Activities for generating funds 23 24.4 - 0.2 - 24.6 11.3Investment income - - - - - 0.2

Incoming resources from charitable activities 2(c) 67.9 - - - 67.9 65.0   

TOTAL incoming resources 18 114.2 - 1.6 22.1 137.9 124.1

Resources expendedCosts of generating funds:

Costs of generating voluntary income (1.8) - - - (1.8) (1.6)Costs of commercial activities 23 (26.2) - - - (26.2) (10.7)

Charitable activities 3(a) (84.1) (1.3) (1.6) (10.4) (97.4) (90.9)Governance costs 3(b) (0.2) - - - (0.2) (0.2)   

TOTAL resources expended 18 (112.3) (1.3) (1.6) (10.4) (125.6) (103.4)

Net incoming / (outgoing) resources before transfers 1.9 (1.3) - 11.7 12.3 20.7

Transfers 18 (0.6) 2.5 - (1.9) - -

Net movement in funds 1.3 1.2 - 9.8 12.3 20.7

Reconciliation of fundsFund balances brought forward at 31 March 18 2.6 17.0 0.2 48.4 68.2 47.5

Fund balances carried forward at 30 March 18 3.9 18.2 0.2 58.2 80.5 68.2

All incoming resources and resources expended are derived from continuing activities.A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities.There is no difference between the net income for the year and its historical cost equivalent. Accordingly no separate income and expenditure statement has been presented.

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The Notes on pages 33 to 55 constitute part of the financial statements.

The financial statements were approved by the Board of Trustees on 28 September 2015 and signed on its behalf by:

John Makinson Howard DaviesChair Trustee

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Group Company Group Company as at 29

March as at 29

March as at 30

March as at 30

March

2015 2015 2014 2014

Note £m £m £m £m

Fixed assets

Tangible fixed assets 11 74.3 74.3 53.4 53.4

Investments 12 0.2 0.2 0.2 0.2

Total fixed assets 74.5 74.5 53.6 53.6

Current assets

Stocks 13 0.5 0.1 0.5 0.1

Cost of productions not yet opened 14 0.6 0.6 1.3 0.6

Debtors 15 10.3 11.0 7.9 9.2

Cash at bank and in hand 16 13.8 10.5 20.0 18.9

Total current assets 25.2 22.2 29.7 28.8

Creditors: amounts falling due within one year 17 (19.0) (16.6) (15.1) (14.2)

Net current assets 6.2 5.6 14.6 14.6

Total assets less current liabilities 80.7 80.1 68.2 68.2

Creditors: amount falling duein over one year 17 (0.2) (0.2) - -

NET ASSETS 18/19 80.5 79.9 68.2 68.2

Represented by:

Operations fund 18/19 3.9 3.3 2.6 2.6

Designated funds 18/19 18.2 18.2 17.0 17.0

Total unrestricted funds 22.1 21.5 19.6 19.6

Restricted funds 18/19 58.4 58.4 48.6 48.6

TOTAL FUNDS 18/19 80.5 79.9 68.2 68.2

GROUP CASH FLOW STATEMENT

Group Group52 Weeks

ended 52 Weeks ended

29 March 30 March

2015 2014

Note £m £m

Net cash inflow from operating activities i 23.0 23.8

Returns on investments Interest received - 0.3

Capital expenditure and financial investmentPurchase of tangible fixed assets (29.2) (25.9)

Management of liquid resources

Decrease in short term deposits 16 2 11.0

(Decrease)/increase in cash in the year ii (4.2) 9.2

i NET CASH INFLOW FROM OPERATING ACTIVITIES

2015 2014£m £m

Net incoming resources before transfers 12.3 20.7Depreciation and amortisation charge 8.7 4.2Loss on disposals 0.2 -Increase in tax credit receivable (1.0) -Investment income - (0.2)

Net operating income 20.2 24.7

Decrease in stock - 0.3Decrease in work in progress 0.7 (0.2)Increase in debtors (less tax credit receivable) (1.4) (0.9)Decrease in creditors (less capital accruals) 3.5 (0.1)

Net cash inflow from operating activities 23.0 23.8

Page 31 of 66

GROUP CASH FLOW STATEMENT

ii ANALYSIS OF NET CASH RESOURCESAs at 30 As at 29

March 2014 Cashflow March 2015£m £m £m

Cash 16 18.0 (4.2) 13.8Short term deposits 16 2.0 (2.0) -

TOTAL 20.0 (6.2) 13.8

iii RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS

2015 2014£m £m

(Decrease)/increase in cash in the year 16 (4.2) 9.2Cash (outflow) from increase in liquid resources 16 (2.0) (11.0)

Movement in net funds in the year (6.2) (1.8)

Net funds at 30 March 2014 20.0 21.8

Net funds at 29 March 2015 13.8 20.0

Page 32 of 66

Notes to the Financial Statements

1 PRINCIPAL ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

A BASIS OF PREPARATION

The financial statements have been prepared on the going concern basis, under the historical cost convention and in accordance with applicable United Kingdom accounting standards, the Companies Act 2006, the Charities Act 2011, and the recommendations of the Statement of Recommended Practice "Accounting and Reporting by Charities" (“the SORP”) issued in March 2005. The Charity has adapted the Companies Act formats to reflect the Charities SORP and the special nature of its activities.

A separate statement of financial activities and income and expenditure account are not presented for the Charity itself as permitted by Section 408 of the Companies Act 2006 and paragraph 397 of SORP 2005. The net income of the company for the year was £12.3m (2014: £19.3m).

The principal accounting policies adopted in the preparation of the financial statements are set out below.

B BASIS OF CONSOLIDATION

The Group financial statements consolidate those of The Royal National Theatre (“the National” or “the NT”) and its wholly owned non-charitable subsidiaries (as set out in note 23) on a line by line basis in accordance with FRS 2. The results of Royal National Theatre Enterprises Limited, National Theatre Productions Limited, National Theatre Staging Limited, National Theatre North America LLC (formally War Horse US LLC) and Curious Incident Broadway LP have been included in the group statement of financial activities throughout the year.

Transactions and balances outstanding between the entities are eliminated on consolidation.

During 2013/14, the National entered into a contractual arrangement with Cuba Pictures (London Road) Limited, to engage in joint activities in relation to making and distributing the feature film ‘London Road’. The National has a 50% interest in the arrangement with the remaining interest of 50% held by Cuba Pictures (London Road) Limited. The results of Cuba Pictures (London Road) Limited have not been consolidated as they are immaterial to the group.

The National Theatre has taken advantage of the exemption given by Financial Reporting Standard 8, Related Party Disclosures, from disclosing transactions with its wholly owned subsidiaries.

C FUND ACCOUNTING

Unrestricted funds are those funds which can be used for any charitable purpose at the discretion of the trustees; designated funds are those funds which have been set aside by the trustees for particular purposes; restricted funds may only be used in accordance with the specific wishes of donors.

The expendable endowment fund is held in long term restricted funds. Under the terms of donation this will be converted at the trustees’ discretion into expendable income at the end of the 20 year term.  D INCOMING RESOURCES

All incoming resources are included in the Statement of Financial Activities when the Charity has legal entitlement, there is reasonable certainty over receipt and the amount of income can be quantified with reasonable accuracy.

Voluntary IncomeVoluntary income comprises all incoming resources from sponsorships, donations, legacies, grants, membership subscriptions. Voluntary income is recognised in the appropriate fund on a receivable basis and when any conditions for receipt are met. Income in respect to the NT Future project is recognised on a cash basis. Any income from connected charities is recognised at the point at which the amount payable is confirmed.

Where the donor imposed conditions require that the resource is expended in a future accounting year, income is recorded as deferred income at the balance sheet date.

Income from individual membership schemes eligible for Gift Aid is recognised in full on receipt. Corporate and Advance Membership income is apportioned over the year of the subscription and the element relating to a future year is recorded as deferred income at the balance sheet date.

Gift Aid is included in the financial statements based on amounts recoverable at the balance sheet date.

Page 33 of 66

Notes to the Financial Statements

Goods and services received in kind, where material, are included within ‘Voluntary Income’ and under the appropriate expenditure heading, depending on the nature of goods and services provided. These are recognised at an estimated value to the charity at the time of receipt.

Activities for Generating FundsActivities for generating funds comprise:

income generated by Royal National Theatre Enterprises Limited from trading activities; royalty and profit share income generated by other National Theatre subsidiaries from the commercial exploitation of

the NT’s productions overseas.

Income is recognised on a receivable basis.

Incoming Resources from Charitable ActivitiesIncoming resources from charitable activities comprises:

Box office income: income from performances at the South Bank; income from touring activities (excluding grants); and ticket sales for productions which have transferred to the West End under direct NT management.

All other income: income from NT Learning performances, NT Live ticket income, events and workshops; exploitations and rights, advance members subscription and other sundry income.

Box office income and income generated by NT Learning projects and NT Live is recognised in the Statement of Financial Activities on maturity of the performance or event. Advance bookings comprise ticket sales for future performances.

Income from exploitations and rights, and other income, is recognised on a receivable basis. Income from advance members is recognised on a straight line basis over the year of subscription.

Investment IncomeInvestment income comprises interest receivable on cash balances and short-term deposits.

E RESOURCES EXPENDED

All expenditure is accounted for on an accruals basis and is classified under the relevant activity within the Statement of Financial Activities.

Resources expended which relate directly to the National’s charitable objectives are analysed between:

performances at the South Bank or elsewhere under direct management; performances on tour; NT Learning (education and participation work) and Public Engagement (including Archive, NT Live, Inside Out, Platforms,

Foyer Music and Digital); and research and development (including the NT Studio and commissioning costs).

Resources expended which form part of the Group’s trading activities and commercial exploitations are separately disclosed as costs of commercial activities.

The costs of generating voluntary income represent the costs of securing sponsorship and donations including the costs of providing membership benefits.

Governance costs include the costs of the Legal Counsel and associated support, board expenses, internal audit and external audit fees.

Support costs relating to a single activity are allocated directly to that activity. Where support costs relate to several activities, they have been apportioned as set out in note 3(c). Staff canteen costs are shown net of contributions.

Provision has been made, where appropriate, for expenses where a present obligation exists at the balance sheet date in accordance with the requirements of FRS 12.

F LEASE OF THE NATIONAL

The National holds a lease on its building from its freeholder, Arts Council England, at a peppercorn rent. This lease expires in 2138. Under the terms of the lease, the National is responsible for maintaining the fabric of the building and its mechanical and electrical equipment. In order to meet this obligation, funds are transferred from the National’s own resources, namely the operations fund, to a building and equipment fund (see note 18).

Page 34 of 66

Notes to the Financial Statements

G FIXED ASSETS AND DEPRECIATION

Fixed assets are held at cost less accumulated depreciation within the relevant fund. Only assets over £2,000 are capitalised.

Depreciation is provided on a straight line basis to write off the assets over their anticipated useful economic lives and is charged to the relevant fund as follows:

Freehold land & buildings 50 years (excluding land, which is not depreciated)Leasehold improvements 5 years, 10 years and 20 yearsEquipment 3 years, 5 years and 10 years

A full year’s depreciation is charged in the first period in which the asset is ready for use.

Included in the above are three new asset classes which were added during the year due to the capitalisation of NT Future works. The new asset classes are 5 years and 20 years for Leasehold improvements and 5 years for Equipment.

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Assets within work in progress are not depreciated until they are brought into use.

H STOCKS

Stocks held by the National’s trading subsidiary comprises catering, bookshop and programme supplies for resale. Other stock (“production stock”) comprises consumables for use in the making of sets and costumes.

All stock is valued at the lower of cost and net realisable value. Cost is based on the latest purchase price for catering, bookshop and programme stock, and on actual cost for production stock.

I COSTS OF NEW PRODUCTIONS NOT YET OPENED

The cost of materials for new productions and associated creative team fees are carried forward on the balance sheet until they are expensed on the date of the press night performance. Internal labour and rehearsal costs are expensed as incurred.

J OPERATING LEASES

Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the term of the lease.

K PENSIONS

The National offers a stakeholder scheme to its employees and contributes to defined contribution schemes for certain of its other employees (see note 9). These costs are expensed in the Statement of Financial Activities as they become payable.

L TAXATION

The National is a culturally exempt organisation under Schedule 9 of the VAT Act 1994 and during the year VAT returns have been submitted on a culturally exempt basis. Irrecoverable VAT is charged against the cost of charitable activities, where it is incurred. Irrecoverable VAT on capital expenditure has been capitalised and will be written off over the life of the assets. The National is a registered charity and therefore is not liable to income tax and corporation tax on income and gains derived from its charitable activities as it falls within the various exemptions available to registered charities.

The National’s UK subsidiaries pay any taxable profits to the charity under Gift Aid.

National Theatre North America LLC pays a profit distribution to the National. The National has received dispensations in the US to be treated as a charity and as such, there is no corporation tax charge on the distribution.

M FOREIGN CURRENCIES

Transactions in foreign currencies undertaken during the year have been translated at the prevailing rate of exchange at the date of the transaction. Non-monetary assets are recorded at the prevailing rate of exchange at the date of the original transaction. Monetary assets and liabilities in foreign currencies are translated at rates of exchange prevailing at the balance sheet date.

Foreign exchange differences incurred in respect of overseas operations are recorded in the Statement of Financial Activities within the charitable activity income or expenditure for the year in which they are incurred.

Page 35 of 66

Notes to the Financial Statements

The results of foreign operations consolidated within the Group financial statements are translated using the temporal method described above. Any exchange gains or losses are accounted for in the Statement of Financial Activities.

Page 36 of 66

Notes to the Financial Statements

2 INCOMING RESOURCES

(a) Voluntary income – analysis by fund type52 Weeks

ended52 Weeks

ended

29 March 30 MarchUnrestricted Funds Restricted Funds 2015 2014

Operations Designated Projects Long Term Total Total

£m £m £m £m £m £m

Arts Council England:

Revenue grant 15.7 - - - 15.7 15.0

Capital and other grants (including Lottery)

- - 0.3 12.0 12.3 10.2

Total Arts Council   15.7 - 0.3 12.0 28.0 25.2

Performances 0.7 - 0.4 - 1.1 0.8

NT Learning - - 0.4 - 0.4 0.3

Public Engagement - - - - - 0.3

Research & development - - 0.1 - 0.1 0.1

Long Term Projects - - 0.2 - 0.2 -

NT Live - - - - - -

NT Future - - - 10.1 10.1 16.4

General activity 5.5 - - - 5.5 4.5

Total other 6.2  - 1.1 10.1  17.4 22.4

         

TOTAL voluntary income 21.9 -  1.4 22.1  45.4 47.6

(b) Voluntary income – analysis by income type2015 2014

Sponsorship Donations, Grants Total Total subscriptions

& legacies £m £m £m £m £m

Arts Council England - - 28.0 28.0 25.2

Performances 0.7 - 0.4 1.1 0.8NT Learning 0.3 0.1 - 0.4 0.3Public Engagement - - - - 0.3Research & development 0.2 - 0.1 0.3 0.1NT Future - - 10.1 10.1 16.4General activity 1.7 3.8 - 5.5 4.5

TOTAL other 2.9 3.9 10.6 17.4 22.4

TOTAL voluntary income 2.9 3.9 38.6 45.4 47.6

Page 37 of 66

Notes to the Financial Statements

Income of £0.6m (2014: £0.6m) in relation to commercial promotion is recognised in Activities for Generating Funds. In total, the fundraising department raised £8.1m (2014: £6.0m) in annual giving and £5.1m (2014: £16.4m) for NT Future. The National received total Gifts in Kind of £1.1m during the year (2014: £0.5).

(c) Total incoming resources from charitable activities

2015 2014 Total Total

£m £m National Theatre box office Olivier 9.1 10.2Lyttelton 7.1 6.5Temporary Theatre 0.4 1.1Dorfman 1.9 -West End Commercial Transfers 24.3 20.2UK Touring 16.6 16.1

59.4 54.1

NT Live 6.1 7.1UK Touring - 1.9Other box office 0.1 0.1

6.2 9.1

International Touring 0.2 0.6NT Learning 0.4 0.4Exploitation and rights 0.2 0.1Other income 1.5 0.7

2.3 1.8

TOTAL incoming resources from charitable activities 67.9   65.0

All income from charitable activities is unrestricted.

Touring income includes co-production and touring fees where appropriate.

Page 38 of 66

Notes to the Financial Statements

3 RESOURCES EXPENDED

(a) Costs of charitable activities

2015 2014Unrestricted Unrestricted Unrestricted Restricted Total TotalOperations Operations Designated

Direct Support Total Project Long term£m £m £m £m £m £m £m

Performances:National Theatre 25.2 10.2 35.4 - 0.9 - 36.3 36.4West End Commercial Transfers 17.6 1.9 19.5 - - - 19.5 26.3UK Touring 14.4 1.8 16.2 - - - 16.2 9.5International Touring 0.4 - 0.4 - - - 0.4 0.9

57.6 13.9 71.5 - 0.9 - 72.4 73.1

NT Learning & Public Engagement 8.4 1.5 9.9 - 0.6 - 10.5 9.1NT Future - - - - - 3.2 3.2 1.6Research & development 1.4 0.4 1.8 - 0.1 - 1.9 1.9

67.4 15.8 83.2 - 1.6 3.2 88.0 85.7

Depreciation excluding that directly related to assets used in performances - - - 1.3 - 7.2 8.5 4.2

Asset disposals and other charges to the buildings and equipment fund - - - - - - - 0.2Non recoverable VAT * 0.9 - 0.9 - - - 0.9 0.8

0.9 - 0.9 1.3 - 7.2 9.4 5.2

TOTAL costs of charitable activities 68.3 15.8 84.1 1.3 1.6 10.4 97.4 90.9

Further analysis of expenditure by fund type is given in Notes 4, 5 and 6.* Under cultural exemption, the National is not able to fully recover input VAT.

(b) Governance costs

Unrestricted Unrestricted UnrestrictedOperations Operations Designated Restricted 2015 2014

Direct Support Total Project Long term Total Total£m £m £m £m £m £m £m £m

Governance Costs 0.2 - 0.2 - - - 0.2 0.2

Included within Governance costs are the auditors’ remuneration which consists of the group audit fee of £49k (2014 £48k) and fees for tax compliance and non–audit services due to PricewaterhouseCoopers of £17k (2014 £11k) .

Page 39 of 66

Notes to the Financial Statements

(c) Analysis of support costs

2015 2014Promotion Theatre Support Total Total

operations services£m £m £m £m £m

Trading operations - 0.4 0.6 1.0 1.6

Charitable activities:Performances:

National Theatre 1.8 5.3 3.1 10.2 9.6West End Commercial Transfers 0.7 - 1.2 1.9 2.1UK Touring 0.6 - 1.2 1.8 0.6International Touring - - - - -

NT Learning & Public Engagement 0.3 0.5 0.7 1.5 1.2Research & development 0.1 0.2 0.1 0.4 0.4

3.5 6.0 6.3 15.8 13.9

Total support costs 3.5 6.4 6.9 16.8 15.5

Promotion comprises Marketing and Press. Theatre Operations comprises Front of House, Building Services, Insurance, Cleaning and Security. Support Services comprises Finance, IT, HR, Pensions, and Staff Canteen net of cost recoveries of £0.5m (2014: £0.6m).

Support costs relating to trading activities are included in costs of trading operations (Note 23).

Support costs are allocated using the following bases:For Marketing, Front of House, Finance, and IT – Management review of estimated usageHuman Resources – HeadcountBuilding Services – Management review of estimated space usage

Page 40 of 66

Notes to the Financial Statements

4 ANALYSIS OF EXPENDITURE ON PERFORMANCES BY FUND TYPE

2015 2014Unrestricted Designated Restricted Total Total

Operations Direct Costs Projects£m £m £m £m £m

National Theatre:Capitalisation & running costs 14.7 - 0.9 15.6 17.1Workshops & stages 12.7 - - 12.7 12.5Producing & direction 8.0 - - 8.0 6.8The Shed - - - - -

35.4 - 0.9 36.3 36.4

West End Commercial Transfers 19.5 - - 19.5 26.3UK Touring 16.1 - - 16.1 9.5International Touring 0.5 - - 0.5 0.9

36.1 - - 36.1 36.7

TOTAL expenditure 71.5 - 0.9 72.4 73.1

5 ANALYSIS OF EXPENDITURE ON NT LEARNING AND PUBLIC ENGAGEMENT BY FUND TYPE2015 2014

Unrestricted Designated Restricted Total TotalOperations Direct Costs Projects

£m £m £m £m £m

Connections 0.5 - 0.1 0.6 0.4Primary education & early years 0.2 - 0.1 0.3 0.3Secondary & further education 0.1 - - 0.1 0.2Training & development 0.1 - - 0.1 0.1Education Endowment Fund 0.1 - - 0.1 -Digital & other (including department costs) 1.1 - 0.1 1.2 0.8

TOTAL NT Learning expenditure 2.1 - 0.3 2.4 1.8

NT Live 6.8 - - 6.8 6.2Inside Out (including Watch This Space) 0.2 - 0.1 0.3 0.1Platforms & Foyer Music 0.1 - - 0.1 0.2Archive 0.1 - - 0.1 0.2Access 0.1 - 0.1 0.2 0.1Digital & other initiatives 0.5 - 0.1 0.6 0.5

TOTAL Public Engagement 7.8 - 0.3 8.1 7.3

TOTAL NT Learning & Public Engagement expenditure 9.9 - 0.6 10.5 9.1

Page 41 of 66

Notes to the Financial Statements

6 ANALYSIS OF EXPENDITURE ON RESEARCH AND DEVELOPMENT BY FUND TYPE

2015 2014Unrestricted Restricted Total Total

Operations Projects Long Term£m £m £m £m £m

NT Studio 1.0 0.1 - 1.1 1.1Commissioning new scripts 0.5 - - 0.5 0.5Associates and other 0.3 - - 0.3 0.3

TOTAL expenditure 1.8 0.1 - 1.9 1.9

7 STAFF COSTS AND NUMBERS

Group 2015 2014£m £m

Wages and salaries 42.4 41.5Social security costs 3.1 4.2Other pension costs 1.4 1.2

46.9 46.9

Average monthly full time equivalents employed in the year: *2015 2014

Number Number

Artistic 314 236Technical and production 391 441Trading and front of house 263 225Education, touring, NT Studio and other projects 39 42Marketing and box office 62 63Support services 73 71Engineering 25 25Fundraising 31 31

1,198 1,134

* All staff are employed by the National Theatre and the cost of their employment is recharged to the NT’s subsidiaries where relevant.

Page 42 of 66

Notes to the Financial Statements

7 STAFF COSTS AND NUMBERS (cont’d)

The number of employees with emoluments greater than £60,000 was as follows:

2015 2014Number Number

£60,000-£70,000 24 23£70,001-£80,000 4 7£80,001-£90,000 2 3£90,001-£100,000 4 1£100,001-£110,000 1 1£110,001-£120,000 - -£120,001-£130,000 1 1£130,001-£140,000 1 -£140,001-£150,000 - 1£150,001-£160,000 - -£160,001-£170,000 - 1£170,001-£180,000 1 1

38 39

Pension contributions of £0.2m (2014: £0.2m) were made to defined contribution schemes for the above members of staff during the year.

8 TRUSTEES’ EMOLUMENTS

No trustees of the company received any remuneration during the year or in the previous year. Expenses for travel and entertainment totalling £7,820 (2014: £401) were incurred by two trustees wholly and necessarily on the National's business and were reimbursed during the year. Trustees are offered two tickets for each production to enable them to carry out their duties.

9 PENSION CONTRIBUTIONS

The National makes payments to defined contribution schemes which are available to all permanent employees on completion of their probationary year. The charge for the year was £1.4m (2014: £1.2m) with £0.3m (2014: £0.1m) payable at the balance sheet date.

10 TAXATION

The National's charitable activities fall within the exemptions afforded by Part 11 Corporation Taxes Act 2010. The trading and commercial subsidiaries, Royal National Theatre Enterprises Limited, National Theatre Productions Limited and National Theatre Staging Limited, passes profits on which tax would be payable to the National under a Gift Aid arrangement. Accordingly, there is no corporation tax charge in these financial statements. Similarly, because of the Gift Aid, there is no difference in the net movement in funds for the National and the Group as a whole.

The National will be submitting two Theatre Tax credit claims to HMRC in relation to productions qualifying for the scheme during 2014/15. A provision for the total expected tax credits receivable of £1.0m has been included in unrestricted income.

National Theatre North America LLC pays a profit distribution to the National. The National has received dispensations in the US to be treated as a charity and as such, there is no corporation tax charge on the distribution.

Page 43 of 66

Notes to the Financial Statements

11 TANGIBLE FIXED ASSETS – Group and Company

Freehold Land &

Buildings

Leasehold Improvements

(20 years)

Leasehold Improvements

(10 years)

Leasehold improvements

(5 years)

Equipment (10 years)

Equipment (5 years)

Equipment (3 years)

Work in Progress (NT

Future)

Work in Progress

(Other)

Total

£m £m £m £m £m £m £m £m £m £m

Cost

As at 30 March 2014

6.6 - 34.8 - 0.2 - 34.8 40.5 1.2 118.1

Additions - - - - - - - 25.9 3.9 29.8

Disposals - - (0.3) - - - (0.4) - - (0.7)

Transfers from work in progress

- 56.0 0.9 0.2 4.5 2.2 4.3 (64.9) (3.2) -

As at 29 March 2015

6.6 56.0 35.4 0.2 4.7 2.2 38.7 1.5 1.9 147.2

Accumulated Depreciation

As at 30 March 2014 0.8 - 32.9 - - - 31.0 - - 64.7

Charge for year0.1 2.8 0.4 0.1 0.5 0.4 4.4 - - 8.7

Disposals- - (0.2) - - - (0.3) - - (0.5)

As at 29 March 2015

0.9 2.8 33.1 0.1 0.5 0.4 35.1 - - 72.9

Net book value

As at 29 March 2015

5.7 53.2 2.3 0.1 4.2 1.8 3.6 1.5 1.9 74.3

As at 30 March 2014

5.8 - 1.9 - 0.2 - 3.8 40.5 1.2 53.4

Page 44 of 66

Notes to the Financial Statements

NOTE 11 CONTINUED

Freehold land and buildings include NT Studio land at a cost of £0.7m (2014: £0.7m) and the NT Studio building refurbishment at a cost of £5.7m (2014: £5.7m). The Studio building has been provided as security in the form of a 30 year legal mortgage in relation to a grant for refurbishment of the Studio, of £0.9m from Arts Council England in 2010. The mortgage is 14% of the cost of the NT Studio land and building (excluding the NT Studio car park land).

In 2012 a fixed and floating charge lasting 30 years was provided as security for the potential repayment obligations under a grant of £17.5m from Arts Council England for the NT Future project.

12 INVESTMENTS

Group Company Group Company2015 2015 2014 2014

£m £m £m £m

Expendable endowment (20-year gilt) 0.2 0.2 0.2 0.2

In 2008, the Charity invested £200,000 into a 20-year gilt in accordance with the terms of a donation received from a long-term benefactor. At the end of the 20-year term, the capital sum (£166,000) will become available for use by the National Theatre. Interest on the gilt accrues to the Theatre on a received basis. The initial premium on the gilt is amortised over the life of the gilt. The trustees believe that the carrying value of the investments is supported by their underlying net assets.

See Note 23 for details of investments in subsidiary undertakings.

13 STOCKSGroup Company Group Company

2015 2015 2014 2014£m £m £m £m

Goods for resale 0.4 - 0.4 -Consumable items 0.1 0.1 0.1 0.1

0.5 0.1 0.5 0.1

14 COST OF PRODUCTIONS NOT YET OPENED

Group Company Group Company2015 2015 2014 2014

£m £m £m £m

Curious – UK Tour 0.1 0.1 - -War Horse – International 0.1 0.1 - -Other Commercial Transfers - - 0.2 0.2National Theatre 0.4 0.4 0.4 0.4London Road (film) - - 0.7 -

0.6 0.6 1.3 0.6

Page 45 of 66

Notes to the Financial Statements

15 DEBTORSGroup Company Group Company

2015 2015 2014 2014£m £m £m £m

Trade debtors 2.4 1.8 2.4 2.4Amounts owed by group undertakings - 2.2 - 1.8Other debtors 1.6 1.3 0.7 0.6Prepayments and accrued income 6.3 5.7 4.8 4.4

10.3 11.0 7.9 9.2

16 CASH AT BANK AND IN HANDGroup Company Group Company

2015 2015 2014 2014£m £m £m £m

Cash and bank balances 13.8 10.5 18.0 16.9Short-term deposit - - 2.0 2.0

13.8 10.5 20.0 18.9

17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company Group Company2015 2015 2014 2014

£m £m £m £m

Trade creditors 1.0 0.7 0.6 0.5Taxation and social security 1.1 1.1 1.1 1.1Advance bookings 3.8 3.8 2.8 2.8Other creditors and accruals 10.7 8.8 9.1 8.8Deferred income – all utilised in the year 1.2 1.0 1.4 0.9Provisions 1.2 1.2 0.1 0.1

19.0 16.6 15.1 14.2

CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

Group Company Group Company2015 2015 2014 2014

£m £m £m £m

Other creditors and accruals 0.2 0.2 - -

0.2 0.2 - -

Page 46 of 66

Notes to the Financial Statements

18 FUNDS Balance as Balance as

at 30 March 2014 Income Expenditure Transfers

at 29 March 2015

£m £m £m £m £m UNRESTRICTED: Operations fund * 2.6 114.2 112.3 (0.6) 3.9

Designated: NT Future 9.9 - 0.4 - 9.5Building and equipment fund 7.0 - 0.8 2.5 8.7Front of house capital fund - - - - -The Temporary Theatre 0.1 - 0.1 - -TOTAL Designated funds 17.0 - 1.3 2.5 18.2

TOTAL Unrestricted funds 19.6 114.2 113.6 1.9 22.1

RESTRICTED: Project funds NT LEARNING Connections - 0.1 0.1 - -Primary & Early Years - 0.1 0.1 - -Secondary & Further Education - - - - -Other - 0.2 0.2 - -

PUBLIC ENGAGEMENTWatch This Space 0.1 - 0.1 - -Other 0.1 - 0.1 - -

PERFORMANCE Productions - 0.9 0.9 - -Touring - - - - -

RESEARCH & DEVELOPMENT Studio projects - 0.3 0.1 - 0.2

TOTAL Project funds 0.2 1.6 1.6 - 0.2

RESTRICTED: Long term funds NT Future fund 32.3 10.1 7.6 - 34.8ACE NT Future fund 9.7 10.1 2.5 - 17.3ACE Lottery fund 1.3 - 0.2 - 1.1ACE Capital fund - 1.9 - (1.9) -Studio refurbishment fund 4.9 - 0.1 - 4.8Expendable endowment 0.2 - - - 0.2

TOTAL Long term funds 48.4 22.1 10.4 (1.9) 58.2

TOTAL Restricted funds 48.6 23.7 12.0 (1.9) 58.4

TOTAL FUNDS 68.2 137.9 125.6 - 80.5

Page 47 of 66

Notes to the Financial Statements

£m* Analysis of unrestricted funds held between parent and subsidiaries: Unrestricted retained surplus held by the Charity 3.3 Unrestricted retained surplus/deficit held by trading subsidiaries 0.6 Group unrestricted operations fund 3.9

DESIGNATED FUNDS

NT Future FundExpenditure against this fund in the year was costs associated with the NT Future project which were not capitalised, primarily decant costs and staff salaries.

£nil (2014: £nil) was transferred from the operations fund for the development of the NT Future project.

Buildings and Equipment FundThe buildings and equipment fund is a designated fund set aside by the Board in order to enable monies to be made available over a three year year for the renewal and maintenance of the National's buildings and mechanical and electrical equipment in accordance with its lease and obligations under Lottery funding.

£0.6m (2014: £0.6m) was transferred from the operations fund and £1.9m (2014: £1.9m) was transferred from the ACE Capital Fund into the buildings and equipment fund during the year. The expenditure for the current year represents depreciation on assets acquired through this fund and the £2.5m transferred was used to fund the refurbishment of the Drum Revolve, the Pillinger pump and Dorfman Theatre dimmers.

Front of House Capital FundThe expenditure in the year represents depreciation on assets acquired through this fund.

The Temporary TheatreThe Temporary Theatre opened in March 2012 and was originally planned to operate whilst the Cottesloe Theatre was closed. Planning permission has now been extended with The Temporary Theatre remaining open until 2017.

RESTRICTED FUNDS: PROJECT FUNDS

These represent funds made available for projects generally completed within two years or activities funded on an annual basis.

NT Learning and Public Engagement ProjectsThe NT Learning and Public Engagement Project Fund represents restricted funding and related expenditure, for participation projects and training initiatives, along with funds received in support of activities in the external public spaces at the NT and various access, archive and digital initiatives.

NT Studio ProjectsThe NT Studio projects fund represents restricted funding for activity at the NT Studio, including new writing and directing initiatives.

Page 48 of 66

Notes to the Financial Statements

RESTRICTED FUNDS: LONG-TERM FUNDS:

Long-term funds represent funds used for capital or where there is an expectation that the fund will be used over the longer term.

NT Future Fund£10.1m was received in the year as grants and donations for the NT Future project. Expenditure was £7.6m and represents depreciation on NT Future assets.

ACE NT Future Fund£10.1m was received in the year from Arts Council England for the NT Future project. Expenditure was £2.5m and represents depreciation on NT Future assets and direct project expenditure.

ACE Lottery FundThe expenditure in the year represents depreciation on assets acquired through this fund.

ACE Capital FundA £1.9m (2014: £1.9m) grant was received in the year for capital expenditure from Arts Council England. This was fully spent during the year on fixed assets which have an unrestricted use and as such is transferred to the Buildings and Equipment Fund.

Studio Refurbishment FundThis fund was created to support a major refurbishment of the NT Studio, completed in 2008. The balance reflects future depreciation on the assets acquired through this fund.

Page 49 of 66

Notes to the Financial Statements

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets Cash

Other net assets /

(liabilities)

Total net assets as at

29 March 2015

Total net assets as at

30 March 2014

£m £m £m £m £m

UNRESTRICTED:

Operations fund - 11.7 (7.8) 3.9 2.6

Designated: NT Future 9.5 - - 9.5 9.9Building and equipment fund 6.0 2.7 - 8.7 7.0Front of house capital fund - - - - -Temporary Theatre - - - - 0.1

TOTAL Designated funds 15.5 2.7 - 18.2 17.0

TOTAL Unrestricted funds15.5 14.4 (7.8) 22.1 19.6

RESTRICTED: Project funds

NT LEARNING & PUBLIC ENGAGEMENTConnections - - - - -Other NT Learning & Public Engagement - - - - 0.2

RESEARCH & DEVELOPMENTStudio projects - 0.2 - 0.2 -

TOTAL Project funds - 0.2 - 0.2 0.2

RESTRICTED: Long term funds

NT Future fund 35.5 (0.7) - 34.8 32.3ACE NT Future fund 17.3 - - 17.3 9.7ACE Lottery fund 1.1 - - 1.1 1.3Studio refurbishment fund 4.9 (0.1) - 4.8 4.9Expendable endowment - - 0.2 0.2 0.2

TOTAL Long term funds 58.8 (0.8) 0.2 58.2 48.4

TOTAL Restricted funds 58.8 (0.6) 0.2 58.4 48.6

TOTAL FUNDS 74.3 13.8 (7.6) 80.5 68.2

Page 50 of 66

Notes to the Financial Statements

20 CAPITAL COMMITMENTS: GROUP AND COMPANY2015 2014

£m £mNT Future related commitments:Fitting out - 1.4Mechanical and Electrical services 0.2 4.6Building work 0.2 2.1Cladding - 0.7Steelwork - 0.2Roofing work - 0.2Logistics - 0.6Metalwork - 0.1External Works - 2.9Olivier Fly System 0.4 0.2Technical Equipment and services 1.3 -Phase C Foyer Refurbishment 0.3 -Other NT Future 0.4 0.4

Other commitments:Excelnet Redevelopment Phase 1 0.1 -CAFM Software 0.2 -Asbestos removal 0.2 -Website development project 0.2 -Drum works - 0.8Other commitments (<100k) 0.7 0.6

Approved and contracted 4.2 14.8

The amount payable within one year is £4.2m (2014: £14.8m).

Page 51 of 66

Notes to the Financial Statements

21 CONNECTED CHARITIES AND OTHER RELATED PARTY TRANSACTIONS

Connected CharitiesRoyal National Theatre FoundationThe Royal National Theatre Foundation has objects related to those of the National and makes grants to the NT from time to time. The foundation has 12 trustees, three of whom have a direct connection to the NT.

The National Theatre entered into a joint arrangement in March 2012 to create a new Education endowment fund within the Royal National Theatre Foundation to further the NT’s national remit in terms of education. A legacy campaign has been launched by the NT and all unrestricted legacies directed to the NT will in future go to the Royal National Theatre Foundation. It has been agreed with the Foundation that this arrangement should be simplified and made more flexible in terms of the operation and accessibility of the endowment fund; and extended so as to enable donors to indicate that their legacies be specifically directed to a broader range of NT activities and needs (premises, new work, productions in general, as well as learning) or to NT’s general purposes. Pending utilisation of the funds so directed, the donations will be held in appropriately named sub-funds of the endowment fund.

During the year, the NT received legacy income of £109,534 (2014: £25,000) which will be paid to the Royal National Theatre Foundation.

A pledge of £200,000 was made during the year towards the production of ‘Here Lies Love’, which opened the new Dorfman Theatre. A pledge of £93,125 was also made during this financial year towards the National Theatre’s Digital Publications project. The first instalment of £46,625 was paid in March 2015 and the second instalment is expected to be paid during 2015/16. The Foundation also made benevolent grants to members and former members of the staff and company.

American Associates of the Royal National TheatreThe American Associates of the Royal National Theatre is an independent s.501c3 not-for-profit charity registered in New York. In the year, $3.9m (2014: $2.6m) was due to the NT.

Other Related Party Transactions

Lloyd Dorfman is a trustee of the Dorfman Foundation and a trustee of the National Theatre. In 2010/11, the Foundation pledged a leadership gift of £10m for the NT Future project. During the period £2.7m (2014: £2.9m) was paid to the National Theatre, being the final instalment of the gift. Lloyd Dorfman is also the Founder, President and a major shareholder of Travelex, sponsors of the National Theatre £15 Travelex season.

During the year, 7 Trustees attended the National Theatre’s Fast Forward gala, a fundraising event specifically for NT Future. These Trustees donated a total of £34,200 in addition to the cost of their tickets.

The National has a limited power to enter into transactions with its Trustees. This power is in its governing document, the Memorandum of Association, and it is limited by conditions which protect the interests of the National as a charity.

See Note 23 for details of transactions with subsidiaries.

Page 52 of 66

Notes to the Financial Statements

22 OPERATING LEASE COMMITMENTS: GROUP AND COMPANY

At 29 March 2015 the National was committed under non-cancellable operating leases to make the following payments during the next year:

2015 2014£m £m

Property leases which expire within one to two years 0.1 0.3

Property leases which expire within two to five years - -

Property lease commitments relate to lease contracts for the rental of properties at Kennington Park, London SW9.

23 SUBSIDIARIES & JOINT ARRANGEMENTS

All subsidiaries have coterminous year ends with the parent company.

As at 29 March 2015, The National had an interest in the following subsidiary undertakings and joint arrangements:

Organisation Name

Country of Incorporation

Nature of Business

Class of share capital

held

Issued Share Capital

Parent company interest

ConsolidationMethod

Royal National Theatre Enterprise Limited

UK Trading activities

Ordinary 2 x £1 Ord Shares

100% Yes (Line-by-line)

National Theatre Productions Limited

UK Commercial exploitation of productions

Ordinary 2 x £1 Ord Shares

100% Yes (Line-by-line)

National Theatre Staging Limited+

UK Commercial exploitation of productions

Ordinary 1 x £1 Ord Share

100% Yes(Line-by-line)

National Theatre North America LLC*

US Commercial exploitation of productions

Ordinary 2 x $1 Ord Shares

100% Yes (Line-by-line)

NT War Horse LP*

US Commercial exploitation of productions

N/A N/A 55.35% (Indirect holding)

Yes (Proportionate)

Curious Incident Broadway LP**

US Commercial exploitation of productions

N/A N/A 50% (Indirect holding)

Yes (Line-by-line)

+NTPL Overseas Limited (incorporated on 16 December 2011) was a 100% owned subsidiary of National Theatre Productions Limited as at 30 March 2014. On 15 January 2015, National Theatre Productions Limited sold their £1 share to the National Theatre for £1. The company was subsequently renamed National Theatre Staging Limited. NTPL Overseas Limited was dormant during 2014/15 and National Theatre Staging Limited is also currently dormant.

* The National Theatre is the sole Managing Member of National Theatre North America LLC. National Theatre North America LLC is the sole General Partner for NT War Horse LP which represents a joint arrangement between National Theatre North America LLC and National Angels.

**The National Theatre is the sole Managing Member of National Theatre North America LLC. National Theatre North America LLC is one of two General Partner for Curious Incident Broadway LP which represents a joint arrangement between National Theatre North America LLC and Wombat Crossing 2 LLC. National Theatre North America LLC holds the casting vote in any decisions made and so controls the LP. Therefore in accordance with FRS 2, it has been consolidated as a subsidiary undertaking.

Page 53 of 66

Notes to the Financial Statements

23 SUBSIDIARIES & JOINT ARRANGEMENTS (cont’d)

The financial results for the year were:

Royal National Theatre

Enterprises Limited

National Theatre Productions

Limited

National Theatre Staging Limited

National Theatre North America

LLC

Curious Incident

Broadway LP Total** Total**

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

£m £m £m £m £m £m £m £m £m £m £m £m

Activities for generating funds: Trading operations 9.7 9.8 2.1 1.1 - - 0.5 0.4 12.3 - 24.6 11.3

Cost of trading operations+ (10.1) (10.0) (3.7) (0.5) - - (0.2) (0.2) (12.2) - (26.2) (10.7)

                   

Net Surplus (0.4)  (0.2)  (1.6)  0.6  -  -  0.3  0.2 0.1 -  (1.6)  0.6

Add back consolidation adjustments

0.9  0.8 1.4  - -  -   -  - 0.5 -  2.8  0.8

Tax on profit on ordinary activities - - 0.2 - - - - - - - 0.2 -

Net Surplus for the year 0.5 0.6 -   0.6 - -  0.3  0.2 0.6 - 1.4  1.4

Gift aid/Profit distribution due to parent company (0.5) (0.6)  -  (0.6) - -  (0.3)  (0.2) - -  (0.8)  (1.4)

Retained in the subsidiary  - -  - - -  -  -  - 0.6 -  0.6  -

Net Assets / (Liabilities)  - -     - -    -    - 0.6 -  0.6 -

** The financial results for NT War Horse LP are immaterial and have therefore not been detailed above.

+Included in cost of trading operations are administration expenses charged by the National Theatre as follows:

Entity Basis Payments to National Theatre2015 (£m) 2014 (£m)

Royal National Theatre Enterprises Limited Turnover (11%) 0.9 1.2

National Theatre Productions Limited Usage 0.2 0.5

National Theatre North America LLC Usage - 0.1

National Theatre Staging Limited Usage - -

Curious Incident Broadway LP Usage - -

1.1 1.8

Page 54 of 66

Notes to the Financial Statements

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, TRUSTEES, COMMITTEE MEMBERSHIP AND ADVISERS FOR THE YEAR 30.03.2014 – 29.03.2015

Board MembersJohn Makinson (Chairman)Kate Mosse OBE (Deputy Chair)Peter Bennett-JonesDame Ursula Brennan DCBDominic Casserley Susan Chinn CBE (Resigned 31 March 2015)Tim ClarkHoward DaviesLloyd Dorfman CBEGlenn Earle Aminatta Forna (Resigned 2 February 2015)Farah Ramzan Golant CBERos HaighNeil MacGregor (Resigned 1 June 2015)James Purnell (Resigned 23 June 2015)Clive Sherling

Finance & Audit Committee Howard Davies (Chair)Dame Ursula BrennanTim ClarkRos HaighLloyd Dorfman CBEJohn MakinsonClive Sherling

Royal National Theatre Enterprises BoardRos Haigh (Chair)Alex BayleyLisa BurgerFarah Ramzan Golant CBEMark HixKaren JonesJohn LangleyRobyn LinesGeoffrey MatthewsKate MosseNick Starr

National Theatre Productions Ltd (NTPL)Peter Bennett-Jones (Chair)Lisa BurgerTim ClarkChris HarperRobin HawkesAndré PtaszynskiTessa RossDavid SabelNick Starr

Page 55 of 66

Notes to the Financial Statements

NT Future Fundraising Committee Clive Sherling (Chair)Susan ChinnTim ClarkDavid HallJohn MakinsonGlenn Earle

NT Future Project CommitteeJohn Makinson Dominic CasserleyTim ClarkLloyd Dorfman CBEGlenn Earle (Chair)Ros HaighAlan LeibowitzClive Sherling

Nominations Committee Tim Clark (Chair)Peter Bennett JonesKate MosseJames Purnell

Development Council Susan Chinn (Chair)Clive Sherling (Vice Chair)Graham BarkerRoyce BellDr Neil Brener Sarah BrenerRuss CarrTim ClarkSimon Dingemans Charles DorfmanDavid HallCaroline HoareRosie HytnerElizabeth OffordOliver PawleCharlotte WarshawCharlotte Weston

Honorary CouncilSir David BellTony BloomDr David Cohen CBEJustin DowleyDavid DuttonMichael GeeMichael Grade CBERobert NorburyOliver PrennLois Sieff OBEMax UlfaneEdgar Wallner

Page 56 of 66

Notes to the Financial Statements

ExecutiveDirector Rufus NorrisExecutive Director Lisa BurgerChief Executive Tessa Ross (Resigned 30 April 2015)Director Nicholas Hytner (Resigned 01 April 2015) Executive Director Nick Starr (Resigned 31 October 2014)

BankersCoutts & Co440 Strand, London WC2R 0QS

AuditorsPricewaterhouseCoopers LLP7 More London RiversideLondon SE1 2RT*The term “Director” is a traditional title used at the National.Neither the Director, the Associate Directors, nor other members of the Executive are directors under the Companies Act, 2006

NT Heads of Department at 29 March 2015

Artistic AdministrationRobin HawkesBroadcast & DigitalDavid SabelCastingWendy SponCommercial OperationsRobyn LinesDevelopmentJohn RodgersEngineeringKieron LillisExternal Relationships & PartnershipsJohn LangleyFinanceKate BarraballGeneral CounselPeter TaylorHuman ResourcesTony PeersInformation TechnologyJoe McFaddenLearningAlice King-FarlowMarketingAlex BayleyMusicMatthew ScottNT StudioLaura CollierPlanningJo HornsbyPlatforms & WTSAngus MacKechniePressLucinda MorrisonPrint & PublicationsLyn HaillTechnical & Production

Page 57 of 66

Notes to the Financial Statements

Mark Dakin Mark DaviesSacha MilroyTechnical ProducerKatrina GilroyVoiceJeannette Nelson

Associate ProducerPádraig CusackNT ProductionsChris HarperRos Brooke-TaylorNT AmericaTim Levy

PERFORMERS 2014-15

The Acting CompanyHiran AbeysekeraVivienne AcheampongT’Jai Adu-YeboahMike AherneLace AkpojaroGareth AledGeraldine AlexanderEsh AlladiChristine AlladoJames AlperSuzanne AndradeSarah AnnisAntony AntunesSue ApplebyEsme AppletonNathalie ArminLee ArmstrongRosie ArmstrongPal AronPeter AshChris AshbyEmily AstonGia Macuja AtchisonKristin AthertonVanessa BabiryeLaure BachelotJames Backway Raj BajajJasmyn BanksTracy BargateCameron BarnesElliot Barnes-WorrellNeal BarryEmma BartonMark BautistaTom BeardCharlotte BeaumontStephen BeckettTaylor BenjaminPhilip BertioliAdam BestSheena Bhattessa

Page 58 of 66

Notes to the Financial Statements

Oliver BirchKM Drew BoatengRoss BoatmanNicholas BishopLucy BlackClaudie BlakleyTony BonczaLee BoggessSam BondCaroline BowmanKen BradshawLorna BrownRicco Godfrey BrownJoanna BurnettGraham ButlerPeter CaddenDaniel CahillAnthony CalfRobert CalvertHayley CanhamVivien CarterDaniel CaseyAbby CassidyFaye CastelowGabriel CastilloGemma ChanGavinder Singh CheraLauren ChiaAshley ChinTia-Lana ChinapyelOliver ChrisAdrian ChristopherVera ChokWilliam ChubbChristopher ChungMatthew ChurcherClare CliffordMichaela CoelEmmanuella ColeNisa ColeClare Louise ConnollyDaniel CoonanClare-Louise CordwellJohn CormackMatt CostainMatthew CottleJonathan CoyAlasdair CraigAli CraigNaomi CranstonSophie CrawfordJim CreightonDermot CrowleyLaura CubittJoe DarkeArthur DarvillAlicia Davies  Matthew Lloyd DaviesNicholas DelvalleAngela de Castro

Page 59 of 66

Notes to the Financial Statements

Harry de MoravilleSimon DesboroughRudi DharmalingamChristopher DickinsDrew DillonBenjamin DillowayHasan DixonJo DockeryPaul DoddsJames Donovan Emilio DoorgasinghDarren DouglasCharlotte DuberyBlythe DuffJames DuncanHeather DuttonMichael Dylan  Vincent EbrahimJulius EbreoNick Elliott Derek ElroyDavid EmmingsSusan EngelGeorge EvansJoe EvansHenry EverettPatsy FerranJim Andrew FerrerRalph FiennesNick Figgis Deborah FindlayOwen FindlaySiobhan FinneranDavid FleeshmanBrendan FlemingPatrick FlemingNick FletcherDaniel FlynnKeiran FlynnMatthew FlynnMatt ForbesPeter ForbesAdam FosterBob FoxAlan FrancisAndrew FraserChristian FromJason FurnivalSartaj GarewalKieran GarlandIan GarsideEoin GeogheganDebra GillettRobert GlenisterThomas GilbeyColm GormleyErmira GoroSophie GråbølEdward GraceGawn Grainger

Page 60 of 66

Notes to the Financial Statements

Oliver GrantAmy GriffithsAdrian GroveOwen GuerinHermione GullifordAmanda HadingueColin HaighIan HallardEdward HancockFinn HanlonGillian HannaMariam HaqueLucas HareJames HarknessElliot HarperRhiannon Harper-RaffertyTom Rhys HarriesSusan HarrisonNicholas HartMark HaydenKarl HaynesAdam Henderson ScottNick HendrixKaren HenthornJo HerbertSarah HigginsRosie HilalSteven HillmanDominic HodsonHazel HolderPernilla HollandIan HoughtonLi-Tong HsuDonnla HughesMichael HumphreysStephanie HyamDamson IdrisJulia InnocentiGina IsaacMark JacksonDaisy JacobElan JamesJoshua JamesThusitha JayasunderaTendayi JembereJoshua JenkinsSimon JenkinsCorey JohnsonGarth JohnsonLinford Johnson Dean John-WilsonAlex JordanIndira JoshiEmily JoyceMiles JuppScott KarimRichard KatzLena KaurChristine KavanaghAndrew Keay

Page 61 of 66

Notes to the Financial Statements

Mary KeeganChris KelhamAidan KellyGordon KennedyStephen KennedyRoberta KerrMuzz KhanNicholas KhanRebecca KillickFerdinand KingsleyBarbara KirbyDaniel KobbinaRanjit KrishnammaGerald KydStuart LaingFred LancasterDavid LanghamJason LangleyHannes LangolfTom LarkinJames LaurensonMaria LawsonJohn LeaderJane LeaneyJamie Lee-MorganNicholas le PrevostAvye LeventisNyron LevyTim LewisKok-Hwa LieNigel LindsayJonathan LivingstoneDylan LlewellynAndrew LondonBrian LonsdaleJack LoxtonNicholas LumleyHelena LymberyHelen MacFarlaneAlasdair MacraeJohn McAndrew Lucia McAnespieAidan McArdleJames McArdleFrances Mayli McCannShaun McCourtHelen McCroryJoel McDermottTony McGeeverPenelope McGhieJayne McKennaSean McKenzieRebecca McKinnisAoife McMahonTim McMullanJodie McNeeJonny MagnantiAlexandra MaherStephen ManganManjeet Mann

Page 62 of 66

Notes to the Financial Statements

Ben MansfieldAnn MarcusonDavid MaraSimon MarkeyKate MarlaisBeth MarshallAmy MarstonCaroline MartinDaisy MaywoodNikita MehtaNatalie MendozaAaron Jan MercadoChristy MeyerJordan MifsudChris MilfordGary MitchinsonIain MitchellMiles MitchellThomas MittelheuserAnjli MohindraBunmi MojekwuDamien MolonyGerard MonacoAlex MoranKatherine MorazRona MorisonCatherine MorrisVictoria MoseleyDeirdre MullinsMikel MurfiCillian MurphyBen MurrayNtonga MwanzaEmily MyttonSimon NagraAaron NeilDavid NellistSuzanne NixonTom NormanJonathan NyatiSam O’MahoneyJoseph O'MalleyNorman PaceTia PalamathananRoxanne PalmerWill PalmerAlastair ParkerUmar PashaRonak PataniBharti PatelJude PearceRueben PearceLewis PeploeDavina PereraClare PerkinsBillie PiperGeorge PottsAlex PriceLucy PunchPrasanna Puwanarajah

Page 63 of 66

Notes to the Financial Statements

Ronan RafteryPehrr RamrakhyaniYuyu RauMark RawlingsAdrian RawlinsStephen ReaJoseph RichardsonLucy RobinsonJudith RoddyJohn RoganAbram RooneyAnneika RoseAndrew RothneyDominic RowanMark RowleySophie RundleJonah RussellNick SampsonRoy SampsonTim SamuelsBebe SandersJack SandleDanny SapaniMartin SarrealMarkus SchabbingJohn SchwabMaggie ServiceKevin ShenJan ShepherdJoe ShireKellie ShirleyChook SibtainAlisdair SimpsonPaul SimpsonGurjeet SinghJamie SivesPaul SockettMitesh SoniPetra SöörGay SoperGavin SpokesKiruna StamellBen StarrDavid SternePaul StockerLisa StevensonJulian StolzenbergStephanie StreetClemmie SveaasGavin SwiftMeera SyalAlice SykesNaomi TadevossianMichael TaibiSharon TarbetLiya TassisaJames Alexander TaylorSamuel TaylorNicolas TennantParth Thakerar

Page 64 of 66

Notes to the Financial Statements

Ben ThompsonEmma ThornettHarriet ThorpeSimeon TrubyMartin TurnerTony TurnerPeter TwoseTim Van EykenRupert VansittartZubin VarlaIndira VarmaAnjana VasanDavid VerreyOlivia VinallRichard VorsterJosie WalkerNiky WardleyPatrick WarnerLowri WaltonDaisy WaterstoneEloise WebbMartin WennerAndrew WestfieldToby WhartonCath WhitefieldScarlet WilderinkJoseph WilkinsJessica WilliamsShaun WilliamsonVictoria WillingSam WilmottArthur WilsonKyron WilsonRoger WilsonTom WiltonSusan WokomaSimon WolfeFiona WoodGary WoodTracey Ann WoodVivien WoodAndrew WoodallSarah WoodwardJane WymarkAndi XhumaJulie YammaneeMiles YekinniSargon YeldaSunny YeoDavid YipAssad ZamanShane Zaza

The Show MusiciansRobert AmesCorin BuckeridgeAlan BrownJoby BurgessSarah Crisp

Page 65 of 66

Notes to the Financial Statements

Neil CrossleyKaviraj Singh DhadyallaPatrick DoddsZands DugganTom EllisChris FishChristian ForshawThomas GouldMatthew GunnerSimon Haram Richie HartRichard HarwoodFelix HigginbottomTheo JamiesonRobin JeffreyNawazish KhanTorquil MunroAdam PleethColin RaeLlinos RichardsVikaash SankadechaOliver Seymour-MarshMagnus Metha Andrew SimmondsBilly StookesFraser Tannock Alan W TaylorJudith TemplemanPhilip Murray WarsonIan WatsonKate WilkinsonBen Woodgate

Page 66 of 66