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2005-2006 Annual Report Is Twofold: to Celebrate the Progress Achieved and to Signal the Urgent Need for Action in Both Public and Private Financing

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2005-2006 Annual Report Is Twofold: to Celebrate the Progress Achieved and to Signal the Urgent Need for Action in Both Public and Private Financing TELEFiLM CANADA_ANNUAL REPORT 05/06 A 05/06 TELEFiLM CANADA OFFiCES HALIFAX 1717 Barrington Street Suite 300 Halifax, Nova Scotia B3J 2A4 Phone: (902) 426-8425 Toll-free: 1-800-565-1773 Fax: (902) 426-4445 MONTRÉAL* 360 St. Jacques Street Suite 700 Montréal, Quebec H2Y 4A9 Phone: (514) 283-6363 Toll-free: 1-800-567-0890 Fax: (514) 283-8212 *Head office and Quebec office TORONTO 474 Bathurst Street Suite 100 Toronto, Ontario M5T 2S6 Phone: (416) 973-6436 Toll-free: 1-800-463-4607 Fax: (416) 973-8606 VANCOUVER 609 Granville Street Suite 410 Vancouver, British Columbia V7Y 1G5 Phone: (604) 666-1566 Toll-free: 1-800-663-7771 Fax: (604) 666-7754 www.telefilm.gc.ca This annual report is produced by Corporate Affairs and Communications. Additional copies may be obtained by writing to the following address: Telefilm Canada Corporate Affairs and Communications 360 St. Jacques Street, Suite 700 Montréal, Quebec H2Y 4A9 [email protected] Legal deposit: Bibliothèque nationale du Québec National Library of Canada Graphic Design: CG3 inc. | Communications | Graphisme Printing: Imprimerie L’Empreinte ADDiNG ECONOMiC AND CULTURAL VALUE2005-2006: HiGHLiGHTSMESSAGE FROM THE CHAiRMESSAGE FROM THE EXECUTiVE DiRECTORMOViNG FORWARD: RETHiNKiNG THE iNDUSTRYPERFORMANCE REPORT 002PRiORiTiES FOR THE FUTUREBOARD MEMBERSSENiOR MANAGEMENT 009 0 1 2 GOVERNANCE REPORTMANAGEMENT’S DiSCUSSiON AND ANALYSiSRiSK MANAGEMENT 006 004 FiNANCiAL STATEMENTS 059 050 0 1 6 057 056 058 07 1 070 Federal agencies Provincial agencies Foreign partners * * * Performance-based envelopes Performance-based Grants * Loan guarantees Loan * * Broadcasters Private funds Private partners Distributors MANAGEMENT OF OUR PARTNERS * * * * NEARLY $400M Canadian Television Fund: $272M Loans * Advances * Canada Feature Film Fund: $81M Investments * * * Canada New Media Fund: $14M * OUR FiNANCiAL TOOLS FiNANCiAL OUR National Training Program: $2M * Industrial development: $5M * Business management: $16M * About 25,000 direct and indirect jobs created in Canada in created jobs indirect and direct 25,000 About * Budgets of these projects: more than $700 million $700 than more projects: these of Budgets * END-TO-END SUPPORT: companies supported annually supported companies FROM SCRiPTWRiTiNG TO iNTERNATiONAL MARKETiNG Some 1,000 Canadian creation and distribution distribution and creation Canadian 1,000 Some * >The Canada Feature Film Fund >The Canada New Media Fund SUBSTANTiAL LEVERAGE LEVERAGE SUBSTANTiAL supports: supports: pre-development NATiONAL AND iNTERNATiONAL DiSSEMiNATiON * development * development OF CANADA’S AUDiOViSUAL CULTURE * production * marketing product production Canadian productions win dozens of international * * * scriptwriting distribution and marketing awards every year * * low-budget independent features promotion and industrial and We regularly contribute to retrospectives * * * versioning professional development Canadian products are sold in over 100 countries * * participation in Canadian and We administer coproduction agreements with 53 countries * * international festivals and markets * We certify some 100 coproductions annually * We organize immersion sessions in Europe for PARTNER Canadian professionals A ViTAL Canadian festivals * Industry promotional games) websites, DVD-ROM, * (CD-ROM, media New events * National training schools shows arts Variety and performing performing and Variety OUR CLiENTS * (film and video) * Scriptwriters * Directors * Vancouver Producers * * Distributors * Multimedia * designers Toronto * Children’s and youth series youth and Children’s * Documentaries * Drama programs and series and programs Drama * Feature films Feature Montréal * * 2005-2006 iN iNVESTMENTS OUR OUR REGiONALHalifax PRESENCE * We handle entries for over 1,000 productions at more than 80 festivals and events annually We attend seven international markets We provide financial and logistical support for Canadian producers, distributors, exporters and directors with productions in the official selection of international festivals We encourage sales and coproduction PRESENT AT NATiONAL AND iNTERNATiONAL FESTiVALS AND MARKETS * * * * 000 / 001 A ViTAL PARTNER TELLM EFi C AAAN D _AR 05/06 ADDiNG ECONOMiC AND CULTURAL VALUE A GROWiNG ROLE iN CANADA’S AUDiOViSUAL iNDUSTRY Established in 1967 by the federal A UNiQUE MANDATE government, Telefilm Canada has helped build Canada’s audiovisual Telefilm’s mandate as an investor is industry, which is a vibrant unique among Canadian cultural component of the Canadian economy. agencies. Our role as a public agency Telefilm is the government’s chosen was recognized on March 23, 2005, by instrument to foster Canadian the adoption of a revised version of creative expression in all segments the Telefilm Canada Act that reflects of the audiovisual industry: film, all of our activities. Our mandate is to television and new media. foster and support the development of Canada’s audiovisual industry. As Telefilm Canada’s success is best a Crown Corporation reporting to measured by the way that local the Minister of Canadian Heritage, Canadian stories resonate with Telefilm operates as an arm’s-length Canadian audiences. This is what investor, focused on assisting Telefilm is about: reaching Canadian Canadian production companies audiences with the best of what to produce stories that will reach Canadian talent has to offer. Canadian audiences. 002 / 003 iNVOLVEMENT iN THE WHOLE OUR DEDiCATED VALUE PEOPLE CHAiN Our ability to meet our objectives depends on the quality of our human Telefilm provides assistance resources. For several years now, to Canadian companies and Telefilm has endeavoured to create a professionals throughout the entire work environment that recognizes the value chain, from highly specialized importance of qualified employees training to project financing, from who exemplify our required A COMPREHENSiVE ViSiON development to distribution and competencies and can thrive in our marketing, and from promotion to Telefilm strives to finance high-quality corporate culture. In taking on its sales of finished products. Telefilm is works that have the best chance of VALUES new role in television, Telefilm has also a catalyst for talent. Its support reaching Canadian audiences, while integrated some 15 Canadian has made it possible for thousands of at the same time fostering the long- WORTH Television Fund employees into its Canadian screenwriters, directors, term sustainability of the Canadian SHARiNG own television team, thus ensuring producers, distributors, technicians, industry. Our vision is to assure a the benefit of acquired expertise performers and new media creators thriving Canadian audiovisual culture, As a public-sector corporation and for the industry. Also in 2005-2006, to pursue careers in Canada, and to produced by Canadian creators and a partner to the industry, Telefilm Telefilm introduced a prize designed work in their region and in the official production companies, and emphasizes six core values: to recognize and celebrate the or Aboriginal language of their disseminated through Canadian • Celebrate the telling of Canadian Corporation’s most valued players. choice. We also provide support for distribution companies, broadcasters, stories; visible minority and Aboriginal telecommunications carriers, Web • Actively champion a sustainable Telefilm’s staff complement of professionals. Telefilm is an active operators, and local festivals. audiovisual culture; 200 employees includes a large player in the worldwide market — • Recognize performance and number of professionals with from promoting Canadian films at Telefilm believes that the extent to encourage innovative thinking; extensive industry experience, major festivals to stimulating new which Canadians watch and use the • Promote diversity in policies as well as legal, economic, coproduction partnerships. Through products it helps finance is the key and programs; communications and policy experts. its programs, Telefilm services three measure of success in meeting its • Be open, transparent and Industry expertise is an essential sectors of the Canadian industry: mandate. A second measure of accessible to stakeholders, requirement of all individuals who feature film, television and success is a strong and vibrant the industry and the public; and make decisions on projects. Of new media. industry capable of developing, • Deliver services in the most Telefilm’s educated staff (about 60% producing, distributing and exhibiting cost-effective fashion possible, have university degrees), 8% belong Headquartered in Montréal, Telefilm the cultural creations that it helps in order to meet the expectations to visible minorities, while over half also has offices in Halifax, Toronto to finance in Canada and around of Parliament, clients and the of all female employees hold and Vancouver. the world. Canadian public. professional or executive positions. TELLM EFi C AAAN D _AR 05/06 2005-2006: HiGHLiGHTS In 2005-2006, Telefilm reaffirmed Canadian cultural products its strategic objectives in a fresh enjoyed growing consumer plan signed by our chairman and participation executive director. From Cinemas $44 million in box-office receipts generated by Canadian feature films, up from * $41 million last year. to Cell Phones is: An overall feature film market share of 5.3% for Canadian productions, a five-year plan for meeting the challenges of our ever-changing audiovisual * surpassing our 5% target. * industry, Canadian-made television event programming in English attracted
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