Board of Directors

Situation Analysis, SWOT and Success

July 9, 2021 Agenda

I. Introductions

II. Process

III. Situation Analysis Report / SWOT

IV. Defining Success Exercise

V. Next Steps Meeting Outcomes  Share Initial Observations

 SWOT Assessment

 Define Success Founded in the belief that arts, culture and entertainment enhance people's daily lives and the communities in which they live. Meet the AMS Team

Steven Wolff Michele Walter Lynette Turner Kristian Otten Principal/ Managing Sr. Associate/ Consultant and Thought Partner Director/Project Project Manager Research Lead Advisor and resource Project Plan

Assessment of Assets and Strategic Monitoring Current State Opportunities Framework

Background Review Defining Success- A Vision of Defining the Goals Monitoring the Future strategic plan Environmental Scan and Future Scenario (s) process Competitive Venues External Interviews Objectives and Business Context Industry Trends and Best Strategies Practices Key Informant Interview Recommendation and Organizational Change Implementation Internal Alignment Survey Final Workshop & SWOT Analysis and Defining Presentation Success Workshop We are here Interviewees

Board Staff . Citizen Members: Clyde Wagner, CEO Internal . Robert Foster, Chair . Sandra Bellisario, VP Development Stakeholder . Mustafa Humayun . Matt Farrell, VP Operations Interviews . Owais Lightwala . Leslie Lester, VP STLC Redevelopment . Gabriel Michaan . William Milne, VP Finance

. Kathleen Sharpe . Josephine Ridge, VP Programming

. Paul Bernards . Jeff Rohrer, VP Marketing and Communications . Gillian Smith

. Myriam Gafarou

. Kevin Garland

. Dawn Maracle (in progress)

City Councillors: . Gary Crawford, Vice Chair

. Kristyn Wong-Tam AMS . John Filion Page 6 PLANNING • RliSiARCH• Mission Vision TO Live believes that the arts are crucial to create healthy, vibrant, and engaged Building a diverse communities. TO Live strives for better city excellence in everything that we do. We through are stewards of landmark city theatres and activate our spaces through programming the arts. and rentals. We are a creative hub for audiences, artists, and all those who work for us.

AMS PLANNING • RliSiARCH• DIVERSITY AND INCLUSION: We foster a sense of belonging in everything we do. We strive to be an anti-racist organization.

INNOVATIVE: We are unafraid to experiment and to push the Core Values boundaries of creativity.

EXCELLENCE: We strive to be the best in class in all we do.

ACCOUNTABILITY: We value responsibility and take ownership of our work and actions.

ADAPTABLE: We see opportunity in embracing our changing world.

COMMUNITY-MINDED: We listen to and are responsive to the people and groups we serve. TO L ive SWOT

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS External Environment

TO Live Wide variety of venue types in the city of Toronto (music halls, exhibition places, cultural centers) Findings . Growing competition from new or planned venues

A growing and Surrounding municipalities typically have one large diverse PAC marketplace . Potential impact on access to content progressively . Balance of local venues exist as part of community met with centers growing competition in the The region is known for its diversity and as a entertainment home for immigrants space Strong economic and job growth projections, with an economy driven by the financial sector

Page 11 Community . Awareness of TO Live is limited . Deepen community engagement Interview . Desire to engage with smaller organizations Perceptions The City Interviewees . City bureaucracy can be challenging cite . Concern about potential change in city leadership opportunities . TO Live identity tied to City of Toronto seen as positive and negative and threats Competition . Increased venue competition is troubling

Partnerships . Nurture and increase partnerships and develop stronger, deeper connections and ‘ownership’

Page 12 Environmental Scan

Environmental Scan Anchor Arts & Multiple Culture Marketplace ‘lenses’ give us Institutions insight into the forces Corporate / impacting TO City Support, Workplace Live Plans & Priorities Environment Study Area

Towns Included: Toronto – pop. 3M Mississauga – pop. 828k Brampton - pop. 603k Burlington – pop. 205k St. Catharines – pop. 140k

Page 14 Marketplace 104 8 in 10 Toronto and Regional venues Venues under 1,000 Mississauga examined have the seats largest concentration of venues 3 in 4 Venues consider rentals a primary source of earned income AMS Page 15 PLANNING • RliSiARCH• A diverse marketplace with llots of competition

Danforth Music ,,.,,u,~ _N, Massey Hall .,..,,,,_,.,,,_ Hall (1,145) ..~_,, .....,.._ ...... ,.,.... (2,765) A

The Carlu (1,500) ·-­

Four Seasons PAC (2,071)

Ed Mirvish Theatre (2,200)

Harbourfront Elgin and Winter ro , to ,.-1an11 \•Q Centre I Garden Theatres JOJfONtt) IU.AHO (422) (2, 149; 1,410)

w,. i.~· 91 -

~b AMS Page 16 I" l AK 111 I N 4 r. ~(J.C "-"CM KEY COMPETITORS ALSO HOST RESIDENTS AND TOURS

$31.4 million Not available $23.4 million $12.4 million $8.2 million $5.6 million

(2019) Annual Expenses (2019) MH: 3,191 2,200 2,752 1,561 1,315 770 SLC: 868; 499 2,000 2,630 992 400 500 MAC: 1,036; 574; 1,244 300 296; 183; 150 770 210 300 210 199

City of Toronto Mirvish Massey Hall and Roy Ontario Heritage City of Mississagua City of St. Catharines Productions Thomson Hall Trust / Brock University Operator Venues (capacity) Resident Broadway theatre Concerts, corporate Plays, opera, Resident companies, Resident companies, companies, meetings, community concerts, Toronto concerts, theatre, university concerts, theatre, events, film shoots International Film dance programming, dance, events, Festival concerts comedy Page 17 Programs History Toronto Venues Massey Hall: Under will become part of a multi- stage music complex; Construction closed since 2018 and aiming for 2021 reopening Renovations and new venues Clark Centre for the Arts: coming online new multipurpose facility shortly, 2,500 capacity venue situated in will house art studios and presenting new the heart of the Beaches be home to creative and renewed neighborhood at 1663 Queen programs for residents and competition for Street East. Expected completion visitors; Opening 2022 entertainment Summer 2021. dollars Purpose: to host 200 concerts, live entertainment, or galas annually.

Page 18 Existing and Growing Sports Market

Sports

Established sports market represents competition for entertainment dollars A new $500M, 7,000-seat entertainment facility is slated to be erected on the Exhibition grounds in Toronto, with an expected completion date of 2025. Purpose: home to OverActive Media’s esports teams

Page 19 Toronto Arts $18.7m $274m Council (TAC) awarded in grants raised by TAC grant recipients Toronto is home to a wide array of arts organizations $6.45 495 organizations and collectives and artists granted to the arts per Toronto funded, in addition to 407 resident individuals 19,500 35% artists paid through TAC funded new applicant awards (320) organizations and projects AMS Page 20 PLANNING • RliSiARCH• New Investment: realizing the potential of Toronto’s artists and arts organizations Toronto Arts Council (TAC) Strong Partnerships: extend opportunities, reach and Toron t o profile of Toronto artists Economic Development Urban Leadership: speak with a compelling voice for a and Culture, as creative, equitable and thriving city well as TAC priorities, provide Responsive Granting: reflect the city, embrace additional technology and build on success context Also… . City Covid-19 Impacts & Opportunities Arts and Culture is an economic $26.7b 300,000 driver for Contributed to Ontario GDP by Ontario residents work in the Ontario the arts and culture sector arts and culture sector And, Toronto is home to 2x as many artists as any other Canadian City

Page 22 Toronto Demographics 3 million residents (6.2m 10-year growth projection of 13% (3.5 million) A growing and Toronto urban area) very diverse marketplace

49.5% of residents Median age of 39.3 are immigrants

th 52% visible minorities, many from 4 largest indigenous south and east Asia population in Canada (46,000+) The Growth Plan (2019) forecasts 1,720,000 jobs in the Toronto City of Toronto by 2041 workforce 2.4% GDP growth rate (versus national rate of 1.8%) development Second largest financial centre in North America The financial (behind NYC), serving as an engine for economic services sector continues to growth drive Toronto’s Toronto Workforce job 250,000 marketplace 200,000 150,000

Jobs 100,000 50,000 0 Corporate

Corporate financial and media sponsors for the Toronto Arts Council are indicative of a larger body of corporate support for the 5/29/18: Toronto Arts Council and TD Bank Partnership: supporting arts programs including Making a Living Making Art, TD Community Arts Award, and the Emergence Symposium

Page 25 Wide variety of venue types in the city of Toronto (music halls, exhibition places, cultural centers) Findings . Growing competition from new or planned venues

A growing and Surrounding municipalities typically have one large diverse PAC marketplace . Potential impact on access to content progressively . Balance of local venues exist as part of community met with centers growing competition in the The region is known for its diversity and as a entertainment home for immigrants space Strong economic and job growth projections, with an economy driven by the financial sector

Page 26 What does the externa l environment suggest?

KEY QUESTIONS OPPORTUNITIES • Growing marketplace inclusive of those with a What are the possible ways for TO Live to propensity to engage with arts and culture further align with the priorities of the City? • Further engagement with diverse communities • Corporate growth and interest How does TO Live best embrace a growing • Deeper connection with Toronto arts & Toronto marketplace? cultural organizations

THREATS Where does TO Live fit into the arts and cultural • Audience comfort with returning to venues landscape? • City bureaucracy limitations • Potential change in leadership (Board, elected officials) How does TO Live better represent and engage • Growing venue competition with an increasingly diverse Toronto • Complex and costly nature of venues, and community? need for investment in STLC Business Context COVID Will furloughed staff return or need to Impacts & be replaced? future planning 2022 forecast assumptions: . Open for business . Decreased overall city subsidy (relative to 2021) . COLA Allowance included . New seating capacities used (AODA impact) Purpose . Range of perspectives

Diversity Interview . Desire for more diverse staff and Board Perceptions . Commitment to IDEA training

Interviewees Communication cite strengths . Challenge of alignment between staff and Board and within the and Board weaknesses Programming . Need for diverse programming to engage a larger consistency and representing a variety of cultures

Foundation . A pathway to philanthropy?

Staff . Staff leadership is strong Page 30 Profit & Loss

Significant annual budget growth from amalgamation through 2019

$45,000,000

$40,000,000

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$- 2017 2018 2019 2020 2022 (B) Revenue City Subsidy Expense Staffing FTE staff grew 40% between 2017-2019

FTE Staffing 300

250 233 223 240

200 187

150

100

50

0 2017 2018 2019 2020 (B) Activity Performance Venue Underutilizat ion A snapshot from 2019 demonstrates actual vs. potential; 2019 offerings are a combined 40% of utilizat ion across TO Live venues

% of potential activity 100% 90% 80% 70% 60% Full venue 50% utilization = 40% 239 use 40% days 30% 20% 10% 0% Meridian Bluma Jane George Lyric Greenwin Studio TO LIVE hall Appel Mallett Weston Theatre Theatre Theatre Theatre Theatre Recital Hall Volume of presenting act ivity increasing From 2017 to 2019, presenting activity increased fivefold

100% 90% 80% 70% 60% 50% 40% 30% 20%

10% 141 165 50 0% 28 2017 2018 2019 2020* 2022 (B) Risk Rentals Corporate Mer idian Hal l drives potent ial and actual sales A snapshot from 2019 demonstrates performance; average of 68% sold across all venues in 2019

Percent sold (2019) 800,000 68%, 504,000 700,000

600,000

500,000 74%, 316,000

400,000

Audience 300,000 58%, 96,000 59%, 92,000 200,000

100,000

0 Meridian Hall St. Lawrence Centre Meridian Arts Centre TO Live Lines of Business Gross stage rental revenues are growing Gross contribution accounts for 23% - 30% of total revenue (before subsidy) year over year

Stage Rentals $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2017 2018 2019 2020 2022 (B) Gross Revenue Direct Expense Net Corporate rentals cons istently perform Gross corporate rental revenue accounts for 11% - 20% of total revenue (before subsidy) year over year

Corporate Rentals $6,000,000

$5,000,000

$4,000,000

Gross Revenue $3,000,000 Direct Expense Net $2,000,000

$1,000,000

$- 2017 2018 2019 2020 2022 (B) Ancillary net Consistent margins on ancillaries since 2018

Ancillaries (net) $3,500,000 $7.00

$3,000,000 $6.00

$2,500,000 $5.00

$2,000,000 $4.00

$1,500,000 $3.00 Net Revenue Net per capita

$1,000,000 $2.00

$500,000 $1.00

$- $- 2017 2018 2019 2020 2022 (B) Presenting Presented investment and return varies year over year Average presented investment is 14% of total budget

Includes two commercial B’way Presentations presentations at a net $10,000,000 combined loss of ($674,000) $8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

$(2,000,000)

$(4,000,000) 2017 2018 2019 2020 2022 (B) Gross Revenue Direct Expense Net But, presenting vo lume correlates with contributed revenue growth

140% growth in contributed revenue between 2017-2020

$3,500,000 180

160 $3,000,000 140 $2,500,000 120

$2,000,000 100

$1,500,000 80 60 Presentations Contributed Revenue $1,000,000 40 $500,000 20

$- 0 2017 2018 2019 2020 2022 (B) Contributions Presented activity Linear (Contributions) 2019 Results Investment in presentations are offset with rentals and/or contributed income Strong revenue and activity growth trends Summary Rentals & ancillary income are the stopgap and enable more programming investment . More presenting activity correlates with increased contributed revenue

Meridian Hall dominates attendance and drives presenting potential

Costs associated with facility assets drive expenses What does the business context imp ly? KEY QUESTIONS STRENGTHS What are our most significant achievements and • City support = stability opportunities for improvement as an • Strong venue assets and efficient operation organization since amalgamation? • Thoughtful and generative Board • Strong senior team leadership What factors influence planning and investment • Nurturing community and program in lines of business? partnerships • Improving promoter perception How should TO Live consider balancing rentals (“open to all”) and presenting activity (“fully WEAKNESSES curated”) in the future? • Clarity of mission, vision and purpose • Staff and board alignment What is the role of fundraising for TO Live and • Lack of diversity of staff and board what is the role of the TorontoLive Foundation? • Need to deepen community engagement • Enliven the Foundation How can we structure the relationship between • Limited brand awareness in the community, the Board and TO Live Management to and misperceptions strengthen the success of the organization? A growing and diverse marketplace Overall Summary Available inventory for additional activity Alignment around purpose will define Increasing local venue competition direction

Positive trends in earned revenue and philanthropy Clarity of purpose Stronger community positioning A clear and agreed-upon financial construct Strategic Plan Desired Agreement around roles of City, board and staff Outcomes IDEA Plan Clarity of roles for TO Live role (presenter, landlord, etc.) Plan that is actionable and measurable

Page 48 Community awareness and engagement Wide-ranging recognition Broad, inclusive program offerings Success Continued nurturing of current, and developing new Identified partnerships Robust activity and attendance Diverse staff and Board Board alignment Straightforward fiscal model with revenue diversification

Page 49 TO L ive Purpose is the lens through wh ich Success is ach ieved

Purpose

Success Opportunity Activity Competition Community awareness and engagement Wide-ranging recognition Broad, inclusive program offerings Continued nurturing of current, and developing new partnerships Robust activity and attendance = Diverse staff and Board - Board alignment Straightforward fiscal model with revenue diversification Venue Utilization TO L ive SWOT

STRENGTHS WEAKNESSES • City support = stability • Clarity of mission, vision and purpose • Strong venue assets and efficient operation • Staff and board alignment • Thoughtful and generative Board • Lack of diversity of staff and board • Strong senior team leadership • Need to deepen community engagement • Nurturing community and program • Enliven the Foundation partnerships • Limited brand awareness in the community, • Improving promoter perception and misperceptions

OPPORTUNITIES THREATS • Growing marketplace inclusive of those with a • Audience comfort with returning to venues propensity to engage with arts and culture • City bureaucracy limitations • Further engagement with diverse • Potential change in leadership (Board, elected communities officials) • Corporate growth and interest • Growing venue competition • Deeper connection with Toronto arts & • Complex and costly nature of venues, and cultural organizations need for investment in STLC Thank You