2015-2016 ANNUAL REPORT CELEBRATING 50 YEARS OF TALENT. 1 HIGHLIGHTS 4 ACHIEVEMENTS 5 ABOUT US 8 MESSAGE FROM THE CHAIR OF THE BOARD 10 MESSAGE FROM THE EXECUTIVE DIRECTOR 12 MANAGEMENT DISCUSSION AND ANALYSIS 43 COMMUNITY INVOLVEMENT 44 TALENT FUND 50 GOVERNANCE 61 FINANCIAL STATEMENTS 84 ADDITIONAL INFORMATION Telefilm Canada / 2015-2016 Annual Report HIGHLIGHTS A REMARKABLE YEAR FOR CANADIAN FILM Canadian films won over audiences and critics alike in 2015-2016, receiving acclaim and awards at major Canadian and international film festivals. Throughout the year, Canadian talent was front and CANADA centre at key events around the world. A PARTNER OF CHOICE COPRODUCTIONS IN THE SPOTLIGHT Canadian films selected by — Brooklyn — — Early Winter — Nominated for three Wins the 83 Academy Awards, international including Best Picture, Venice Days and wins festivals Award, winning top prize Best at the Venice Days section British Film of the Mostra at the BAFTA Awards 37 — Remember — prizes 4 Canadian Screen Awards nominations Canadian talent was behind Wins Best Original Screenplay 21 — Room — — Fatima — Oscar Garners numerous prizes, Wins nominations including including 3 Césars Best Actress Best Film Oscar and Golden Globe 2 Most Promising Actress for Best Adapted Screenplay Best Picture 1 Telefilm Canada / 2015-2016 Annual Report HIGHLIGHTS CONNECTING WITH AUDIENCES CANADIAN BOX OFFICE AND SUCCESS AT HOME CANADIAN FILMS Over $1M SHINEON THE INTERNATIONAL SCENE $3M $6M Oscar nominated director Berlin favourite Philippe Falardeau’s Denis Côté’s film — Snowtime! — — Guibord s’en va-t-en guerre — — Boris sans Béatrice — screens for thousands in the screens in the This animated remake Piazza Grande at the Berlin International of a beloved classic family film Locarno International Film Festival’s scored big in Quebec Film Festival Competition section — La passion d’Augustine — Canadian legend Léa Pool’s latest is Guy Maddin’s the big winner — The Forbidden Room — Academy Award nominated director at the Gala du cinéma québécois selected by Zacharias Kunuk’s documentary with six awards, including Best Film— — Qapirangajuq: a first for a female director 16 Inuit Knowledge and international Climate Change — takes part in the Berlinale’s — Paul à Québec — film festivals NATIVe—A Journey into Indigenous including Cinema special series Gilbert Sicotte named Karlovy Vary, Best Actor Locarno and Berlin at the Gala du cinéma québécois. This is Sicotte’s second win in this category, the first being in 2012 for Le Vendeur 2 Telefilm Canada / 2015-2016 Annual Report HIGHLIGHTS A TALENTED FUTURE EMERGING FILMMAKERS IN THE SPOTLIGHT Stephen Dunn’s Andrew Cividino’s The directors of — Closet Monster — — Sleeping Giant — — Turbo Kid — takes home the competes in the International François Simard, Best Canadian Feature Critics’ Week at the Anouk Whissell and Film award 2015 Cannes Film Festival and Yoann-Karl Whissell at TIFF and wins the wins the City of Toronto Award for win the Best Atlantic Director Best Canadian First Feature Best Director (Feature) and Screenwriter at TIFF award at the Bucheon International prizes at the Atlantic Film Festival Fantastic Film Festival Anne Émond’s Sonia Bonspille Stella Meghie’s second film Boileau’s debut feature — Les êtres chers — first feature — Jean of the Joneses — travels to prestigious festivals in — Le dep — presented at Locarno, Namur and Göteborg nominated at Karlovy Vary for the South by Southwest Independent Camera award 3 Telefilm Canada / 2015-2016 Annual Report ACHIEVEMENTS FUNDER PROMOTER THOUGHT LEADERSHIP ADMINISTRATOR Tracking audience behaviour Client satisfaction levels at 110 42 and monitoring the state festivals feature films of the industry 87% including and 12 coproductions 102 15 micro-budgets promotional events supported across Canada, AUDIENCES attracting millions IN CANADA: TREND REPORT 10 years PREPARED BY of filmgoers TELEFILM CANADA of administering 40th funding programs anniversary of coproduction Telefilm’s 2014-2015 annual administration report among the STUDY PREPARED FOR TELEFILM CANADA top 50 Audience-focused strategy OVERVIEW OF THE CANADIAN annual reports worldwide featuring promotional FEATURE FILM INDUSTRY: 2014-2015 Vision Awards 2012-2015 campaign launched By: Monique Lafontaine, Barrister & Solicitor Communications & Entertainment Lawyer Government of Canada March 31, 2015 Annual Report Competition to increase funding by $22M TALENT WITHOUT 2014-2015 over 5 years BORDERS ANNUAL REPORT 15 films purchased nearly $9.4M 20,000 Success Index up by of administrative times budgetary savings 8% during the transferred to program three-day campaign 93 funding over 5 years 86 Management expense ratio 12 at a historic low of 9 $2.7M Talent promoted at $2.5M 28 5.2% $2.2M 24 34 6.1% international festivals 5.6% 5.7% and content markets $1.2M 5.2% 5.2% $0.8M ■ Canadian films selected at 53 53 Industrial ■ Cultural 83 ■ Commercial 11-12 12-13 13-14 14-15 15-16 international festivals 2014 2015 11-12 12-13 13-14 14-15 15-16 4 Telefilm Canada / 2015-2016 Annual Report ABOUT US OUR VISION BOARD OF DIRECTORS Canadian productions, on all consumption platforms, in Canada and abroad. EXECUTIVE DIRECTOR OUR MISSION LEGAL SERVICES PROJECT FINANCING AND ACCESS TO INFORMATION Telefilm’s mission is to foster and promote the development of the Canadian audiovisual industry by playing a leadership role through financial support and initiatives that contribute to the industry’s PUBLIC AND STRATEGY AND RESEARCH commercial, cultural and industrial success. GOVERNMENTAL AFFAIRS WHAT WE DO NATIONAL PROMOTION INTERNATIONAL PROMOTION First and foremost, we are a team of some 180 enthusiasts AND COMMUNICATIONS of Canadian media content dedicated to the commercial, cultural and industrial success of Canada’s audiovisual industry. As a Crown ADMINISTRATION AND BUSINESS AFFAIRS AND corporation, acting on behalf of the Government of Canada, we CORPORATE SERVICES COPRODUCTION support dynamic companies and creative talent, providing financial support to Canadian film projects and promoting Canadian audiovisual success and talent at festivals, markets and events – HUMAN RESOURCES CMF PROGRAMS ADMINISTRATOR regionally, nationally and around the world. We also administer the funding programs of the Canada Media Fund NATIONAL AND INTERNATIONAL (CMF), which totalled $372.3 million in fiscal 2015-2016, and we FINANCE EVENT MANAGEMENT are responsible for making recommendations to the Minister of Canadian Heritage on whether projects can be recognized as audiovisual treaty coproductions. INFORMATION, PERFORMANCE BUSINESS AFFAIRS AND AND RISK COPRODUCTION Headquartered in Montreal, we serve our clients through four offices located in Vancouver, Toronto, Montreal and Halifax. ACCOUNTABILITY A strong corporate governance framework enables the Board of Directors and the Executive Director to lead the Corporation toward its goals. By its design, Telefilm’s organizational structure ensures that the organization’s departments are accountable to the Executive Director in the delivery of the strategic plan (see Governance section for more details). 5 Telefilm Canada / 2015-2016 Annual Report ABOUT US FINANCIAL ASSISTANCE In 2015-2016, our funding programs provided $95.7 million in support for the Canadian audiovisual industry: $95.7M $60.7M in production financing for 110 feature films $0.5M $18.0M to recommend in marketing 53 audiovisual funding for treaty certification 105 feature films projects $3.8M $5.8M to promote Canadian films at in development support 34 international festivals, for the creation of markets and events 258 projects $6.9M for promotional events in Canada supporting 42 Canadian film festivals and 102 industry events and initiatives 6 Telefilm Canada / 2015-2016 Annual Report ABOUT US OUR VALUES OPEN AND CONTINUOUS COMMUNICATIONS Telefilm offers its employees a stimulating work environment that The organization is committed to consulting, informing and holding encourages behaviours that reflect the four corporate values we a continuous and open dialogue with diverse members of the apply in interacting with one another and in dealing with our clients: industry regarding opportunities, challenges and changes. Whether with film producers, distributors, broadcasters, professional associations, provincial agencies or directors and writers, we stay RESPECT COMMITMENT connected across Canada through three major streams of communication: CLIENT FOCUS OPENNESS • outreach sessions to consult with and inform the industry; • presence at industry events; and • being available for one-on-one conversations with stakeholders By promoting these values, we are able to attract and retain a diverse across the country. workforce to serve the Canadian audiovisual industry. Furthermore, we measure our success based on these four core values. STAYING CONNECTED Telefilm strengthened its use of online communication tools such as Facebook, Google+, Twitter and YouTube to promote the success of Canadian talent to the public. To communicate key industry information to stakeholders and to simplify clients’ online funding applications, eTelefilm, telefilm.ca, Twitter, LinkedIn and industry advisories were favoured. These efficient and effective online platforms and tools are essential to sharing important messages and facilitating application processes. 7 Telefilm Canada / 2015-2016 Annual Report MESSAGE FROM THE CHAIR OF THE BOARD The 2015-2016 fiscal year was the first year of our 2015-2018 I would also like to welcome a whole