TALENT. TOGETHER. 2013-2014 Annual Report 1 HIGHLIGHTS 5 ABOUT US 7 MESSAGE FROM THE CHAIR OF THE BOARD 9 MESSAGE FROM THE EXECUTIVE DIRECTOR 11 MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY AND ECONOMIC CONDITIONS CORPORATE PLAN DELIVERY ACHIEVEMENTS AND PRIORITIES OBJECTIVES AND PERFORMANCE INDICATORS FINANCIAL REVIEW RISK MANAGEMENT 32 GOVERNANCE BOARD OF DIRECTORS MANAGEMENT COMMITTEE 41 FINANCIAL STATEMENTS 60 ADDITIONAL INFORMATION TALENT FUND advisory COMMITTEE TALENT FUND DONORS FILMS FUNDED THROUGH PRODUCTION AND POST-PRODUCTION PROGRAMS FILMS FUNDED THROUGH THE MARKETING PROGRAMS CANADIAN FILM FESTIVALS FUNDED THROUGH THE PROMOTION PROGRAM INTERNATIONAL FILM FESTIVALS, MARKETS AND EVENTS ATTENDED BY TELEFILM STATISTICS TELEFILM CANADA OFFICES Telefilm Canada / 2013-2014 Annual Report HIGHLIGHTS CANADIAN TALENT: SUCCEEDING AT HOME AND ABROAD In 2013-2014, the success of the Canadian audiovisual industry radiated beyond our borders and into new markets. Telefilm, along with an array of partners, ensured that Canadian talent was front and centre—gaining new fans throughout the world. The year’s highlights include: Chloé Robichaud’s Sarah préfère la course Louise Archambault’s and Sébastien Pilote’s Gabrielle won the UBS Xavier Dolan’s Le démantèlement, along Audience Award at Locarno Tom à la ferme won with The Apprenticeship and was Canada’s the FIPRESCI International of Duddy Kravitz (1974), submission for the Best Critics Award in Venice. by Ted Kotcheff, Foreign Language Film Oscar. represented Canada at the Cannes Film Festival. Denis Villeneuve’s Enemy came out strong at the Canada presented nine films Canadian Screen Awards, Canada took home during the 16th Shanghai with five prizes, while two awards at the Berlinale: International Film Festival, Gabrielle won both Best Pierrot Lunaire, by Bruce including two features Picture and Best Actress. LaBruce, and Triptyque, in official competition: Gabrielle also took home five from Robert Lepage and A Gun & A Ring and Maïna, Jutras, second only to Pedro Pires. a first for Canada. Louis Cyr, which scooped up nine awards. Canada’s The Phantoms, As part of the 17th edition of The New York Times produced by Dream Street Cinéma du Québec à Paris, highlighted the Canadian film Pictures, won Best Kids French film enthusiasts industry’s success, writing: TV-Movie/Mini-Series at the were able to find a range “Canada is on a hot streak, International Emmy Kids of Quebec films on its movies regularly winning Awards, held in New York. iTunes France. prizes at festivals like Berlin and Tribeca.” H1 Telefilm Canada / 2013-2014 Annual Report HIGHLIGHTS PARTNERING TO PROMOTE SUCCESS AND TALENT Telefilm worked with industry players and a variety of public and private partners to ensure the results of our promotional efforts were optimized. Major successes from the year include: The Movie Nights in Canada At the Banff World Media series in Ottawa was hosted Ten Canadian female directors Festival, Telefilm, the Canada three times throughout and actors were honoured Media Fund and the Canadian 2013-2014, by the with the Birks Diamond Media Production Association Honourable Shelly Glover and Tribute to the Year’s Women unveiled the Eye on Canada James Moore, as Ministers of in Film, in partnership with brand, which serves to unite Canadian Heritage and Official Telefilm, during theToronto all initiatives surrounding the Languages, and featured the International Film Festival. promotion of Canadian filmsGabrielle , Still Mine content. and The Grand Seduction. Telefilm co-hosted the Stars of the Awards Season Telefilm partnered with the in Los Angeles with the Canada was selected as NFB and SODEC to Academy of Canadian the Spotlight Country at the present The Shortest Day Cinema and Television, the 25th anniversary edition Short Film Celebration, Consulate General of Canada, of the Palm Springs a free event dedicated to the the Toronto International Film International Film Festival. promotion and screening Festival and Bell Media to of short films. celebrate high-profile Canadian talent. Telefilm, in partnership with the Canada Media Fund, supported two Red Carpet screening events of The Grand Seduction, which opened both the Calgary International Film Festival and the St. John’s International Women’s Film Festival. 2 Telefilm Canada / 2013-2014 Annual Report HIGHLIGHTS FUNDING THAT WORKS Telefilm is proud to provide funding programs that encourage success and that are adapted to the ever-changing marketplace. Improvements to funding programs, based on consultations with the industry, were made in 2013-2014 and include: The Marketing Program The redesigned Production was modified to ensure that Program was launched. Canadian content reaches A new Aboriginal The streamlined program more audiences. The program component was added to the now also supports offers greater flexibility to Micro-Budget Production post-production, clarifies support marketing efforts to Program, which supports decision-making criteria and reach audiences on multiple emerging feature film talent places a greater emphasis on platforms and is open to and promotes innovation. demonstrated market interest a wider group of eligible to drive audience success. applicants. The Theatrical Documentary Program was extended, with funding provided in partnership with the Rogers Group of Funds. 3 Telefilm Canada / 2013-2014 Annual Report HIGHLIGHTS FISCAL RESPONSIBILITY Financial measures implemented ensured that financial support for the industry was optimized. Key results from fiscal 2013-2014 include: Operating and The management expense Private- and foreign-sector administrative expenses ratio remained at the low financing doubled in the decreased by 10% over level of 5.8%—on par with production budgets of the last three fiscal years— the previous fiscal year and Telefilm-funded films. with a reduction of 5% outperforming targets. in 2013-2014 alone. Over the past three fiscal $3.3 million in parliamentary years, a cumulative amount appropriation was returned Telefilm achieved efficiencies of $4.5 million was to the federal government resulting in a decrease of transferred from as part of the second year 3.3% in the delivery costs administrative budget of the Budget 2012 Planned of the Canada Media savings back into funding Reductions in Departmental Fund programs. programs—including Spending. $0.8 million in 2013-2014. Savings of 28% in rent expenditures will be achieved as a result of the relocation of the Vancouver and Halifax offices. 4 Telefilm Canada / 2013-2014 Annual Report ABOUT US OUR VISION Audiences everywhere demanding screen-based content created by Canadians—accessible anywhere, anytime and on any platform. OUR MISSION 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 commercial, cultural and industrial success. WHAT WE DO First and foremost, we are a team of some 180 enthusiasts of Canadian cinema. Dedicated to the commercial, cultural and industrial success of Canada’s audiovisual industry, we support dynamic companies and creative talent here at home and internationally through our various funding programs. On behalf of the Government of Canada, as a Crown Corporation, we provide financial support to Canadian film projects and we promote Canadian audiovisual success and talent at festivals, markets and events – regionally, nationally and around the world. We also administer programs for the Canada Media Fund (CMF), which totalled $354.5 million in fiscal 2013-2014, and make recommendations regarding the certification of audiovisual treaty coproductions to the Minister of Canadian Heritage and Official Languages. Headquartered in Montréal, we serve our clients through four offices located in Vancouver, Toronto, Montréal and Halifax. FINANCIAL ASSISTANCE In 2013-2014, our funding programs provided $92.2 million in support for the Canadian film industry: 71% $65.1M in production financing to produce91 feature films 10% $9.2M in development support for the creation of 306 projects 10% $9.1M in marketing funding to raise awareness for 92 feature films 7% $6.3M for promotional events in Canada supporting 43 Canadian film festivals and 66 industry events and initiatives 2% $2.5M to promote Canadian films at 29 international festivals, markets and events A5 Telefilm Canada / 2013-2014 Annual Report ABOUT US 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 corporate plan (see Governance section for more details). BOARD OF DIRECTORS EXECUTIVE DIRECTOR PROJECT BUSINESS affairs International MARKETING AND FINANCING AND certification PROMOTION communications strategy AND RESEARCH PUBLIC AND administration AND LEGAL Services AND AND PROJECT MANAGEMENT governmental affairs corporate services ACCESS TO Information OFFICER The organization monitors its results through a performance measurement framework aligned with the corporate plan. In this context, performance indicators were established in 2011-2012 to ensure strategic alignment throughout the organization’s operational activities (see Management Discussion and Analysis section for more details). OUR VALUES Telefilm offers its employees a stimulating work