TALENT WITHOUT 2014-2015 BORDERS ANNUAL REPORT 1 HIGHLIGHTS 4 ABOUT US 6 MESSAGE FROM THE CHAIR OF THE BOARD 8 MESSAGE FROM THE EXECUTIVE DIRECTOR 10 MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY AND ECONOMIC CONDITIONS CORPORATE PLAN DELIVERY ACHIEVEMENTS AND PRIORITIES A NEW STRATEGIC PLAN – 2015-2018 OBJECTIVES AND PERFORMANCE INDICATORS FINANCIAL REVIEW RISK MANAGEMENT 41 TALENT FUND 45 GOVERNANCE BOARD OF DIRECTORS MANAGEMENT COMMITTEE 54 FINANCIAL STATEMENTS 75 ADDITIONAL INFORMATION FILMS FUNDED THROUGH PRODUCTION PROGRAMS FILMS FUNDED THROUGH THE MARKETING PROGRAMS CANADIAN FILM FESTIVALS FUNDED THROUGH THE PROMOTION PROGRAM CANADIAN INDUSTRY PRESENT AT INTERNATIONAL FILM FESTIVALS, MARKETS AND EVENTS TELEFILM CANADA OFFICES Telefilm Canada / 2014-2015 Annual Report HIGHLIGHTS Canadian films dazzled audiences and critics alike in 2014-2015, winning awards and acclaim at major Canadian and international film festivals. Throughout the year, Telefilm and its partners ensured that Canadian talent was front and centre at key events around the world. RECORD YEAR • A first! Three Canadian directors vie for the prestigious Palme d’or at FOR CANADIAN Cannes 2014: David Cronenberg CINEMA ON THE for Maps to the Stars, Atom Egoyan INTERNATIONAL for The Captive and Xavier Dolan SCENE for Mommy. • 2015 begins in impressive style for Canadian cinema as nine films by Canadian directors unspool at the Palm Springs International Film Festival. • Ten Canadian feature films screen at the 2015 Sundance Film Festival— a record number. – Aloft – Le profil Amina – Brooklyn – Chorus – The Forbidden Room – The Games Maker – Hellions – How to Change the World – Turbo Kid – The Witch • Maxime Giroux’s Felix et Meira wins the award for Best Canadian Film at TIFF 2014—and goes on to screen at other prestigious festivals. 1 Telefilm Canada / 2014-2015 Annual Report HIGHLIGHTS CONNECTING • Corner Gas: The Movie attracts more than seven million viewers through its innovative WITH multiplatform launch. AUDIENCES • Nine Canadian films earn more than $1 million each at the Canadian box office. – 1987 – Brick Mansions – The Captive – Dr. Cabbie – The F Word – The Grand Seduction – Mommy – Pompeii – Trailer Park Boys: Don’t Legalize It EMERGING • Supported by Telefilm’s Micro-Budget Production Program, FILMMAKERS up-and-coming Canadian IN THE filmmakers shine brightly on SPOTLIGHT the festival scene: – Christian Sparkes’s Cast no Shadow wins six awards at the 34th Atlantic Film Festival, including Best Feature, Best Director and Best Screenwriter. – Julie Lambert’s documentary, Un film de chasse de filles, wins three awards at the Festival de cinéma de la Ville de Québec. – Adam Brooks and Matthew Kennedy’s The Editor screens at over 20 festivals. 2 Telefilm Canada / 2014-2015 Annual Report HIGHLIGHTS Telefilm’s achievements in 2014-2015 allowed the Corporation to deliver on the four key roles defined in the 2011-2015 corporate plan, Fostering Cultural Success. Highlights include: THOUGHT ORGANIZATIONAL FUNDER PROMOTER LEADER EXCELLENCE • Fast Track stream • Canadian talent takes • Telefilm launches new • 85% of clients report being integrated into the centre stage at Telefilm- strategic plan for satisfied with the services Production Program, signature events, including 2015-2018, Inspired by they receive. now more flexible and Talent to Watch, Not Short Talent. Viewed Everywhere. more efficient. on Talent, Perspective • Canada Media Fund renews Canada and Eye on TIFF. • Audience-focused research Services Agreement for • Marketing Program developed and shared a three-year term. redesigned to allocate • New B2C events gain with the industry. funding on a selective- traction, including The • Telefilm receives 2014 based approach, now Great Canadian Talent • Telefilm contributes to Chartered Professional better adapted to the Faceoff game show at TIFF, industry conferences and Accountants of Canada changing marketplace. the Canada Stars in Awards interactive workshops Award of Excellence in Season gala in Los Angeles featuring audience Financial Reporting • Minority groups better and The Shortest Day short engagement experts. for Small Federal Crown served by additional film celebration. Corporations. mentorship available • Telefilm funds through the Development • Telefilm’s social media cinema-focused • Gartner Consulting ranks Program. channels continue to extend consumer-behaviour Telefilm in the top 25% of their reach—gaining new study with the Motion companies according to • Official-language minority followers and fostering Picture Association a comparative study communities benefit from more online engagement. – Canada. conducted on the use of dedicated component information technologies. added to the Micro-Budget • Telefilm’s collaboration with Production Program. private and public partners continues to boost promotional efforts. $6.7 million in budget savings Leverage effect – Where Canadians Management expense ratio transferred back into funding promotional initiatives watch films programs (ratio per dollar from Telefilm) (over four fiscal years) 81% 16% 3% At home Cinema Mobile 6.3% $2.74 $2.5M $2.2M 5.8% 5.8% $2.30 $1.2M 5.3% $0.8M $2.10 11-12 12-13 13-14 14-15 12-13 13-14 14-15 11-12 12-13 13-14 14-15 3 Telefilm Canada / 2014-2015 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 media content dedicated to the commercial, cultural and industrial success of Canada’s audiovisual industry. On behalf of the Government of Canada, as a Crown corporation, we 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—regionally, nationally and around the world. We also administer the funding programs for the Canada Media Fund (CMF), which totalled $365.6 million in fiscal 2014-2015, and we are responsible for making recommendations to the Minister of Canadian Heritage and Official Languages on whether projects can eventually be recognized as audiovisual treaty coproductions. Headquartered in Montréal, we serve our clients through four offices located in Vancouver, Toronto, Montréal and Halifax. FINANCIAL ASSISTANCE In 2014-2015, our funding programs provided $89.1 million in support for the Canadian audiovisual industry: 68% $60.8M in production financing to produce87 feature films 13% $11.3M in marketing funding for 87 feature films 9% $7.8M in development support for the creation of 301 projects 7% $6.4M for promotional events in Canada supporting 42 Canadian film festivals and 97 industry events and initiatives 3% $2.8M to promote Canadian films at36 international festivals, markets and events 4 Telefilm Canada / 2014-2015 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 NATIONAL PROMOTION INTERNATIONAL FINANCING AND COPRODUCTION AND COMMUNICATIONS PROMOTION PUBLIC AND STRATEGY ADMINISTRATION AND LEGAL SERVICES AND GOVERNMENTAL AFFAIRS AND RESEARCH CORPORATE SERVICES ACCESS TO INFORMATION OUR VALUES Telefilm offers its employees a stimulating work environment that encourages behaviours that reflect our four corporate values. By promoting these values and through our integrated management framework (see Management Discussion and Analysis section for more details), we are able to attract and retain a diverse workforce to serve the Canadian audiovisual industry. Furthermore, we measure our success on the basis of four core values that we apply in interacting with one another and in dealing with our clients: Respect Commitment Client focus Openness STAYING CONNECTED Telefilm strengthened its use of online communication tools such as Twitter, Facebook and Google+ in 2014-2015 to inform and to promote the success of Canadian talent to the public. To communicate key industry information to stakeholders and to facilitate clients’ online funding applications, eTelefilm, telefilm.ca and industry advisories were favoured. These efficient and effective online platforms and tools are essential to sharing important messages and facilitating application processes. OPEN AND CONTINUOUS COMMUNICATIONS The organization is committed to consulting, informing and holding a continuous and open dialogue with diverse members of the industry regarding opportunities, challenges and changes. Whether with film producers, distributors, broadcasters, professional associations, provincial agencies or with directors and writers, we stay connected across Canada through three major streams of communication: – Outreach sessions to consult with and inform the industry; – Presence at industry events; and – Being available for one-on-one conversations with stakeholders across the country. 5 Telefilm Canada / 2014-2015