2017 – 2018 Annual Report

Annual Report 2017/18 Executive OCC Leadership Board of Team Directors

Nina Kressler Dick Brown President & CEO December 11, 2013 to February 1, 2019

Dan Young David Coletto Vice-President & COO February 2, 2016 to November 30, 2018

Loretta Briard Frank Colletti General Manager May 6, 2015 to May 5, 2018

Annie Dugas May 31, 2017 to May 30, 2020

Mathieu Fleury December 10, 2014 to November 30, 2018

Annie Hillis December 11, 2013 to December 10, 2019

Jean Lalande September 8, 2014 to September 7, 2020

Richard Patten April 16, 2014 to April 15, 2020 Shaw Centre Jo-Anne Poirier (Chair) March 21, 2018 to March 20, 2021 55 Colonel By Drive, Ottawa Maria Ricci Ontario, Canada, K1N 9J2 December 11, 2013 to December 10, 2019 Tel: 613 563 1984 or 1 800 450 0077 Carolina Rivera Alvarez Fax: 613 563 7646 December 14, 2016 to November 30, 2018 Email: [email protected] David W. Scott December 11, 2013 to December 10, 2019

2 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 3 tax revenue. In total, $60,590,305 in taxes for International Airport Authority, which saw a 2 all three levels of government were generated percent increase in passenger volumes in 2017 Message from during our past fiscal year. and a revenue increase of 5.2 percent. Our success is only possible through collaboration The Ottawa Convention Centre values the with our stakeholders. Ottawa Tourism and principle that giving back to our community is as the President the Ottawa Convention Centre conducted important to staff as welcoming our delegates sales missions in London and participated in and meeting planners. Our innovative Leave a IMEX America and IMEX Frankfurt. Together we Legacy program continues to benefit people far and CEO generated leads, requests for proposals and built and wide as well as here at home. Among the awareness of Ottawa as a first-class meeting meaningful post-event donations, we helped our and convention destination. Our combined clients deliver essential supplies for schools in efforts have yielded great success and return on Cameroon and Ottawa’s St. Joe’s Women’s Centre investment in many different ways. as well as meals for the Ottawa Mission.

As one example of that return on investment, our ith the close of our fiscal year 2018/2019 will not be a duplicate of Canada’s hotelier stakeholders have concluded a year of 2017/2018, the Ottawa Convention 150th birthday year; however, we remain unprecedented growth with a 7 percent increase WCentre will have had its most focused on building on our success of attracting in average hotel occupancy rates, outperforming successful year since our opening in 2011, more international conventions, expanding our every other major city in Canada. Ottawa Tourism concluding the term with a surplus of $2.8M. With Nina Kressler similarly reports that we had a year-over-year a strong emphasis on sales and marketing plus President & CEO increase in visitors of 8.8 per cent to 11 million customer service, our efforts are reaping rewards. visitors, while visitor spending increased by 10.3 We hosted an impressive roster of international, per cent to $2.3 billion. A significant portion of corporate and national association conventions 55% this increase can be attributed to accommodation this year, bringing significant economic impact to spending. Our combined efforts to draw more INCREASE IN CONVENTION the City of Ottawa and the province of Ontario. visitors to Ottawa also helps the Ottawa REVENUE IN 2017/18 participants from outside the Ottawa-Gatineau In addition to numerous social functions and area. This equaled over 78,800 out-of-town trade show events, we hosted 45 conventions, up visitors who boosted Ottawa’s economy by from 30 in 2016, achieving a 55 per cent increase $167M in direct spending. in convention revenue, a 15 per cent increase in overall gross revenue and an impressive increase in This direct spending contributed approximately the Centre’s net operating profit of 47% per cent. $135M to Ottawa’s GDP and supported approximately 2002 jobs, resulting in $85M in Some of our more notable events included the direct and indirect labour income. This includes 105th Grey Cup, Shopify 2018 Summit, CIBC $52M in labour income that stems from 1471 jobs Annual General Meeting, Translational Systems that are supported directly by events held at the Biology Conference, Federation of Canadian Centre. This positive labour impact contributes to Municipalities, 2017 Global 4H Summit, Pet Valu Ottawa’s continued strong job market; according National Convention and Canadian Science Policy to a recent Statistics Canada report, the region’s Conference. unemployment rate is down to 4.4 per cent – In the 2017-18 fiscal year, the Ottawa its lowest level in well over a decade. Another Convention Centre hosted 55 events that drew positive economic impact comes in the form of

4 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 5 corporate convention sector and continuing to grow our largest market, the Canadian Association 50% Market. To support these marketing efforts, an OCCUPANCY RATE Corporate Goals estimated $500,000 of the projected revenue IN 2017/18 generated by a new Municipal Accommodation Tax implemented January 1 will be directed OCC’s corporate goals are set annually by the Executive towards the Convention Development Fund. Leadership Team. In 2017/18, OCC’s corporate goals focused on Ottawa Tourism and the Ottawa Convention Strategic funding like this helps attract world Centre will use this fund to attract more large the following strategic priorities: financial sustainability, client leaders to our city. Conventions generate valuable events to Ottawa. satisfaction, colleague satisfaction, partner performance and and tangible economic impact, showcasing A further $1 million of the projected tax revenue Canada’s capital as a place of innovation, corporate social responsibility. will be invested in the Major Events Fund, which excellence and opportunity to its international Ottawa Tourism uses to attract large-scale events delegates. Everyone at the Ottawa Convention that draw tens of thousands of visitors to the city Centre looks forward to supporting the growth of each year. Together, the Convention Development Ottawa’s tourism industry while promoting our FINANCIAL SUSTAINABILITY FINANCIAL RESULTS Fund and Major Events Fund will support the Centre as a premiere venue for major events and growth of our local tourism and hospitality conventions. OCC’s long range financial imperative is to 2017/18 OBJECTIVE generate revenues to support a surplus and $19.7M industries through destination marketing and 2017/18 RESULT Another important measure of success is sales plus development activities promoting maintain cash flows sufficient to provide for $17.3M attainment of key corporate objectives. For Ottawa internationally as a premiere venue for lifecycle requirements. 2017/2018, we targeted several key areas, major events and conventions. including an occupancy rate of 50 per cent, $12.9M $12.7M which we are proud to have attained. From a ECONOMIC IMPACT FOR 2017/18

customer service perspective, we exceeded our In the 2017-18 fiscal year, OCC hosted 55 events target for client satisfaction, attaining an overall that drew participants from outside the Ottawa- satisfaction score of 4.7 / 5. While we did not meet Gatineau area. This equaled over 78,800 out-of- our targeted waste diversion rate of 70%, it will town visitors who boosted Ottawa’s economy by $2.8M remain a focus area for the year ahead. $167M in direct spending, including: $1.2M Success is not achieved as a solo mission. I wish • $136M in attendee spending to acknowledge and thank our partners, Aramark • $18M in exhibitor spending Entertainment Services Canada Inc. and Freeman GROSS NET OPERATING BOOKING REVENUE PROFIT PACE Audio-Visual/Freeman Electrical Services. Our daily • $12.5M in production spending mantra of Inspired People Creating Extraordinary This direct spending contributed approximately Events remains part of our culture. I also wish $135M to Ottawa’s GDP and supported to thank our colleagues’ on-going commitment approximately 2002 jobs, resulting in $85M in to customer service. They truly make this a direct and indirect labour income. This includes remarkable place to work! $52M in labour income that stems from 1471 jobs that are supported directly by events held at the 2002 Ottawa Convention Centre. In total, $60,590,305 JOBS SUPPORTED (APPROX.) in taxes for all three levels of government was Nina Kressler generated in 2017/2018. President & CEO

6 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 7 OCCUPANCY

BALLROOM

Q1 69.2%

Q2 37.0%

Q3 70.5% 57.5% Q4 50.0% AVERAGE 2017/18

TRADESHOW HALL

Q1 59.9%

Q2 38.8%

Q3 56.3% 51.4% IMPROVING CLIENT SATISFACTION COLLEAGUES & PARTNERS Q4 51.4% AVERAGE 2017/18 OCC recognizes the paramount importance OCC recognizes the fundamental role of of client satisfaction and reflects this through colleague and partner excellence in delivering systems and procedures that ensure superior a superior event experience and maintains a MEETING ROOM customer service from initial contact through to formal program to recruit, retain, recognize

Q1 52.4% final invoicing. In 2017/18, our client satisfaction and train colleagues in all key areas of the scores reached 4.7 out of 5, surpassing its 4.6 organization, and maintain positive and mutually Q2 35.7% annual target. We continue to look forward to supportive partner relations. surpassing this year’s score in 2018/19. Q3 46.6% Our colleagues have identified rewards and 45.2% We remain confident in the knowledge that recognition as important to them. At OCC, we Q4 48.9% AVERAGE 2017/18 we have earned a strong reputation in both are focused on a culture of appreciation for our the convention and meetings marketplaces colleagues and clients; a culture where great for hosting outstanding events and providing work and results are noticed. To that end, we TOTAL exceptional customer service to our clients. will continue to celebrate great work and offer

Q1 58.4% encouragement through programs like Encore! Encore! which gives us the vehicle to recognize Q2 37.3% colleagues who live our company values every day on the job. When our colleagues meet a Q3 54.8% milestone career anniversary, we honour their 49.9% 4.7/5 Q4 50.2% AVERAGE OUR CLIENT 2017/18 SATISFACTORY SCORE

8 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 9 CORPORATE SOCIAL RESPONSIBILITY set a goal to participate in volunteer activities throughout the year. In 2017/18 OCC staff OCC recognizes the role we play in the life and participated in a number of initiatives aimed at economy of our host community and the role supporting various local community organizations that the community plays in supporting and and groups. In February, colleagues took part in enhancing the event experience of our clients. In a clothing drive to donate new and gently-used doing so, we undertake to demonstrate ongoing workwear supporting Dress for Success and corporate responsibility and maintain a positive Suits His Style, which included 55 dress shirts, 42 community interface. blazers, 41 skirts, 36 dresses, 33 pairs of pants, 23 At OCC we continuously strive to find strategies pairs of shoes, and 27 ties. We will continue to that will maximize the efficiency of our waste look for partnership opportunities in the hopes management system, with a long-term of ensuring all salvageable materials that are left diversion goal of at least 70%. In 2017/18, behind are delivered to charities most in need. OCC successfully diverted 52% of waste from landfills. We expect this number to continue to grow in the coming years as our focus on energy savings and waste management increases. Jane Goodall OCC participates in a rigorous food waste 52% Dr. Jane Goodall: Journey management program that consists of monthly from the Jungle in Ottawa food quality audits whereby the entire kitchen OF WASTE at the Shaw Centre area is scored based on pre-determined values SUCCESSFULLY DIVERTED and then reviewed by senior executives. FROM LANDFILLS BY OCC

While many companies now practice some form of social responsibility programs, we, at the Ottawa dedication with special recognition and rewards. “We were very pleased with Convention Centre, have decided to make it a core Our goal is for our colleagues to know that each the collaboration between the of our operations. Undertaking socially responsible of them are valued members of the OCC team initiatives not only allows us to appeal to socially and as such are responsible for our exceptional Canadian Science Policy Centre conscious consumers (and colleagues), but it also customer service scores. and the Shaw Centre team makes a tangible difference in the world. We OCC’s primary service partners, Aramark for CSPC 2017. Many agreed it also encourage our clients to give back to our community. We offer three flexible CSR programs Entertainment Services (Canada) Inc. and was our best conference ever Freeman Audio-Visual/Freeman Electrical that enable them to have a positive impact with Services, are key ingredients of our operational and the Centre, along with its minimal effort, all of which are facilitated by our product offerings and third-party initiatives. exceptional team, exceeded team: Leave a Legacy Program, Tablée des Chefs OCC works very closely with our service partners and Mealshare. This past year, many local and to ensure customer service remains high and everyone’s expectations. Thank international charities benefited from our clients’ product quality exceeds industry standards and you very much for all your hard generosity including St. Joes Women’s Centre and client demands. work.” Hope for Children Cameroon. OCC colleagues also recognize the importance of Mehrdad Hariri giving back to the community, and as such have CEO and President, Canadian Science Policy Centre

10 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 11 2017/18 Operational Highlights

JUNE JULY NOVEMBER 1-4 11-15 21-26

Federation of Canadian 2017 Global 4-H Network 105th Grey Cup

Municipalities (FCM) – Summit As part of Canada’s 150th birthday celebration, “The Shaw Centre [OCC] was Ottawa was chosen to host the 105th Grey 2017 Annual Conference From July 11th to July 15th, the OCC hosted 454 the perfect venue for OSEG to Cup from November 21st to 26th. The Festival and Trade Show delegates and 75 exhibitors from 27 countries at partner with when bringing transformed and showcased our city across 4-H’s Global Network Summit. 4-H, one of the Canada and around the world and the OCC the 105th Grey Cup Festival to The OCC hosted the Federation of Canadian largest youth organizations in the world, builds played a major role in the festivities by partnering Municipalities (FCM) - 2017 Annual Conference leaders from all over the world by offering skill Ottawa. It’s central location, with the CFL and OSEG, and hosting a variety and Trade Show and welcomed 1900 local, building activities, meaningful leadership roles and of celebrations and events, including five press flexible event space, and top- national and international attendees from June partnerships with adult volunteers. Global 4-H conferences, four public events, and three galas notch team were the winning 1st to June 4th. Among the delegates were Network Summit is an action-packed summit for during the six-day period. Among those were: elected officials and municipal members, as 4-H youth, volunteers and professionals. Themes combo for this monumental Shaw CFL Awards & Rev-Up Party, which was well as keynote speaker Jon Montgomery, included community engagement, science, Grey Cup week’s most iconic party; Commissioner city-wide event.” Olympic champion and host of The Amazing technology, sustainable agriculture, food security, Brunch with CFL Commissioner Randy Ambrosie, Race Canada. The four days included plenaries, and environment. We are proud to have hosted a high-profile VIP brunch, and Shaw Centre Client Valerie Hughes workshops, industry-led seminars and networking young leaders from not just Canada, but from Director, Major Events, Ottawa Sports and Entertainment Appreciation hosted by OCC’s marketing team in opportunities with a theme of Shaping Canada’s around the world to join us during Canada’s 150th Group, CFL’s 105th Grey Cup Festival our CrEATe Kitchen. Among the keynote speakers Future, as Canada was celebrating 150 years of birthday celebration. Confederation. we welcomed Dave Dickenson of the Calgary Stampeders, Marc Trestman of the Toronto Argonauts, and TSN’s James Duthie.

12 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 13 Operating Statistics 2017/18 NUMBER OF EVENTS 505

NUMBER OF CONVENTIONS 45

NUMBER OF TRADE & CONSUMER SHOWS 12

NUMBER OF MEETINGS 325

OTHER 9+36424+C EVENTS 123 David Suzuki The 60th Anniversary Awards Gala for the Canadian Federation of Humane Societies (CFHS), held at the OCC in Ottawa, celebrated and recognized the heroes that dedicate $19.7M $2.8M their lives to creating a more humane life for Canadian REVENUE OPERATING SURPLUS animals.

14 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 15 Disclosure of Remuneration

REMUNERATION Dick Brown Vice-Chair $5,812.50

Except for the City of Ottawa David Coletto Director $750 representative, each member of Ottawa Convention Centre’s Board Annie Dugas Director $875 of Directors is paid for his or her attendance at board, committee and Mathieu Fleury Director $0 other meetings as required. Outlined below is the total remuneration paid Annie Hillis Director $2,000 to each director for fiscal 2017/18. Frank Colletti Director $875

Jean Lalande Director $1,750

Richard Patten Director $1,500

Maria Ricci Director $1,500

Carolina Rivera Alvarez Director $750

David W. Scott Director $1,875

Marc Seaman Chair $1,600

16 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 17 Organizational Structure

OCC OCC Organizational Food Service Chart Provider

President & Chief General Executive Officer Manager

Executive Vice-President & Chief Office Administrator Operating Officer

District Executive Director Director of Director of Controller Human Resource Chef of Events Operations Facilities Director, Marketing Director Manager & Partnerships of Sales

Assistant Human Warehouse and Account Manager Senior Technical Assistant Manager, Corporate Account Resource and Purchasing Regional/Local Operations Services Controller Partnerships Managers (4) Payroll Manager Manager Sales Manager Manager

Event Services Executive Operations Marketing & Sales Business Development Manager Local Sous Chef Manager (3) Coordinator Coordinator Sales

Sous Event Services Beverage Chef Manager (5) Manager Aramark General Security Finance & EBMS Administrative Freeman Accountant Manager Manager Administrator Coordinator

Executive Event Services Steward Coordinator F&B & Security Front Office Facilities Officers Assistant

18 2017/18 ANNUAL REPORT SHAW-CENTRE.COM | CANADA’S MEETING PLACE 19

Ottawa Convention Centre / Société du Centre des Congrès d’Ottawa

Financial Statements March 31, 2018