PLAY IT FORWARD 2016-2017 ANNUAL REPORT TABLE OF CONTENTS 1 Highlights 15 Management Discussion 49 Financial Review 68 Governance 5 Achievements and Analysis 58 Risk Management 85 Financial Statements 6 Telefilm Celebrates 16 Industry and 61 Community Involvement 110 Additional Information Economic Conditions its 50 Years 62 Talent Fund 22 Strategic 8 About Us Plan Delivery 11 Message from the Chair of the Board 13 Message from the Executive Director Telefilm Canada / 2016-2017 Annual Report HIGHLIGHTS In 2016-2017, the future of the Canadian audiovisual industry was strengthened by our greatest resource—our diversity. Women, emerging talent, and Indigenous creators PLAY IT were centre stage like never before. And as Telefilm celebrates its 50th anniversary, FORWARD and Canada shines brighter than ever, we can’t wait to Play it forward! Xavier Dolan’s Maudie Juste la fin du monde received a took the special gala screening Grand Prix at the Berlinale. at the Cannes Film Festival At home, the Maud Lewis CANADA and three Césars awards. biopic is winning the hearts AROUND THE WORLD of Canadian audiences. The Canadian animated film Two Lovers and a Bear Yan England’s Snowtime! screened at the Cannes Film Festival first feature film, headed to China, where it was Director’s Fortnight and kicked-off 1:54, shown on more than Telefilm’s Movie Nights Across Canada picked up the 4,000 screenings in Ottawa. Youth Jury award screens. in Namur and Angoulême, Prix du Public Iris and closed the United Nations’ fifth edition of the Month of Francophonie. 1 Telefilm Canada / 2016-2017 Annual Report HIGHLIGHTS CANADIAN WOMEN MAKE THEIR MARK Elle Canada featured the Birks Diamond From left to right: Ann Marie Fleming (director and animator), Christine Horne (actor), Jennifer Podemski Tribute to the Year’s Women in Film (actor and producer), Ann Shin (documentarian), Amanda Crew (actor), April Mullen (director), Tracey Deer (director), Marie Vien (screenwriter), Caroline Dhavernas (actor), and Léa Pool (director). recipients in its September issue. (Absent: Emma Donoghue, screenwriter) NOTABLE FILMS FROM 2016-2017 HELMED BY WOMEN INCLUDED Werewolf Pays Nelly The Space Between Ashley McKenzie Chloé Robichaud Anne Émond Amy Jo Johnson 2 Telefilm Canada / 2016-2017 Annual Report HIGHLIGHTS SPOTLIGHT ON INDIGENOUS TALENT Alethea Arnaquq-Baril’s Benjamin Ross Hayden’s first feature Zacharias Kunuk’s Angry Inuk The Northlander Maliglutit officially selected at the Berlinale presented at the imagineNATIVE Film featured at the Berlin International and big winner at Hot Docs. + Media Arts Festival. Film Festival and recognized at the Canadian Screen Awards. THE FUTURE FOR EMERGING TALENT IS BRIGHT The Lockpicker Daniel Redenbach Great Great Great by Randall Okita and Janine Windolph’s by Adam Garnet Jones and picked up the The Land of Rock Sarah Kolasky awarded Best Feature, John Dunning Discovery Award and Gold Best Screenplay and Best Performance at the Canadian Screen Awards. premiered at the imagineNATIVE and at the Canadian Film Festival. continued on to travel the festival circuit. Award-winning actor Karine Vanasse THE was named Talent Fund ambassador, as which she is contributing to TALENT fundraising initiatives and helping to raise the profile of Canada’s FUND next generation of directors, writers, Karine Vanasse and Hartley T. Richardson producers and actors. (Chair of the Talent Fund Advisory Committee) 3 Telefilm Canada / 2016-2017 Annual Report HIGHLIGHTS FOCUS ON EXPORT Over the last 10 years, Telefilm refined its promotional A GLOBAL CANADIAN FILMS and export strategies, improved its financial assistance programs and decision-making processes, and CONTENT WIN OVER AUDIENCES enhanced coproduction opportunities to best support MARKET AT HOME AND ABROAD the Canadian audiovisual industry. AT A GLANCE – TOP 20 HIGHEST-GROSSING1 CANADIAN FILMS 81% of gross sales are 19% of gross sales are Canadian international coproductions from international territories from domestic sales capture 93% of selections at international film festivals and events $274M 85% of gross sales stem 15% of gross sales stem Approximately 20% of overall from Canadian international from Canadian productions production financing is allocated to coproductions Canadian international coproductions2 Canadian international coproductions Canadian productions • Barney’s Version • Enemy • L'âge des ténèbres • Silk • The Young • The Captive • Goon • Blindness • Hector and • Life • Splice and Prodigious • The Colony • Passchendaele • Brooklyn the Search • Mr. Nobody • The Imaginarium T.S. Spivet • De père en flic • Eastern Promises for Happiness • Room of Dr. Parnassus • What If EXPORT TO EXPAND THE REACH Leverage the export potential presented by Canada’s membership Accelerate export potential: in Eurimages, the council of Europe’s cultural fund for feature films – International Marketing Program Promote Canada at international festivals and markets – Export Assistance Program – Promotion Program supporting domestic film festivals Position Canada as a coproduction partner of choice with global impact RECENT SUCCESSFUL COPRODUCTIONS FUNDED BY TELEFILM AND CANADIAN BOX OFFICE HITS!3 Brooklyn Room Ballerina What If $6.0M $1.9M $3.5M $1.3M 1. Based on Telefilm analysis of gross sales of films funded by Telefilm. Top 20 films released theatrically from 2007 to 2016. Gross Sales include the share of all revenues pertaining to the production (Box office sales, TV and home video, among others). 2. Over the last five fiscal year, Telefilm’s allocated approximately one fifth of its production financing to Canadian coproductions. This proportion is reflective of the long-term trend in coproductions investments. 3. Box office sales as at April 2017. 4 Telefilm Canada / 2016-2017 Annual Report ACHIEVEMENTS FUNDER Gender parity Canada now a Funding for Indigenous 18 films $2M objectives member country of creators increased to supported by the in 2016-2017 and set for 2020 $4M Micro-Budget $5M over the next five years Production Program ongoing additional parliamentary appropriation PROMOTER Export Assistance 34 new +150 titles Movie Nights Watch Us Program introduced on the Canada First Across Canada Watch Us festivals iTunes store en route to video series 8 Canadian cities went viral with eligible under + the International 1M views Marketing Program THOUGHT LEADERSHIP Micro-budget case studies Best practices Research and bootcamps launched in film funding and marketing shared on industry hot topics supported at home and internationally CASE STUDY ON MARKETING, DISTRIBUTION AND CASE STUDY ON MARKETING, DISTRIBUTION AND CASE STUDY ON MARKETING, DISTRIBUTION AND AUDIENCE ENGAGEMENT USING DIGITAL CHANNELS AUDIENCE ENGAGEMENT USING DIGITAL CHANNELS AUDIENCE ENGAGEMENT USING DIGITAL CHANNELS CAST NO UN FILM THE SHADOW DE CHASSE EDITOR A Micro-Budget A Micro-Budget Production Program project DE FILLES Production Program project TELEFILM CANADA TELEFILM CANADA A Micro-Budget Production Program project TELEFILM CANADA August 2016 August 2016 August 2016 ADMINISTRATOR More agile, Implemented Client satisfaction Low management Telefilm received responsive and levels reached expense ratio 2014-2015 award client focused 90% maintained at of excellence for its annual report application platform 5.2% of funding programs for three years running $9.7M Administrative budget TALENT WITHOUT 2014-2015 savings transferred to BORDERS ANNUAL REPORT funding programs over the last five fiscal years 5 Telefilm Canada / 2016-2017 Annual Report TELEFILM CELEBRATES ITS 50 YEARS A PASSION THAT’S BEEN GROWING SINCE 1967 On March 3, 1967, the Parliament March 3, 2017 marked our of Canada passed the Canadian 50th anniversary—an opportunity Film Development Corporation Act, to look back at our achievements establishing the organization now and the challenges we have known as Telefilm Canada. Telefilm overcome. Our dedication to has played a key role in the Canadian culture, our ability to evolution of Canada’s film industry innovate and our desire to excel as the agency responsible for have allowed us to remain the industry’s development and relevant for five decades. “I’m myself here today because of promotion since 1967. Moreover, Telefilm has long played a critical The passion Telefilm shares with Telefilm Canada. And I believe strongly role in the success of the television the Canadian industry is our true that more than ever today we need and new media industries, and, driving force. Canadian talent has institutions, we need money put since 2006, has administered the demonstrated strength, courage funding programs of the Canada and creativity, making Canadians into movies.’’ Media Fund. proud to share our culture with the world. – Denis Villeneuve – BEYOND THE NUMBERS: Looking toward the next 50 years, TRUE PASSION we will build on our core values: AND COMMITMENT working in partnership with The industry that emerged in the the industry; recognizing the 1960s has grown exponentially importance of cultural content; to become a vibrant cultural and and ensuring that diverse voices economic force. Telefilm is proud are celebrated both at home to have contributed to this and internationally. important part of Canada’s heritage. “Partnering with Telefilm has allowed me... to make world-class, star-driven films that touch on edgy subject matters relevant to audiences both here in Canada and around the globe.’’ – Kari Skogland – (Director) 6 Telefilm Canada / 2016-2017 Annual Report ©Photos : Courtesy of the Academy of Canadian