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Screen Annual report Victoria

2010

SCREEN VICTORIA


SCREEN VICTORIA

Screen Victoria Annual Report 2010


These stories are landscapes through which we navigate... in them we find each other, in them we find ourselves.

1 Introduction 6 Achievements 10 Report of operations 12 Financial statements


Film Victoria is the State Government agency that provides strategic leadership and assistance to the film, television and digital media industries of Victoria. We invest in projects and businesses, and promote Victoria as a world-class production destination nationally and internationally.

Our screen industry plays a crucial role in Victoria’s cultural, economic and social development. It generates jobs and business activity, and enriches our cultural life by capturing local narratives, voices and important ideas. Through our financial support the film and television industry is able to create entertaining, culturally significant and innovative projects that Victorian audiences want to see and experience; stories about our history, society and life on screen. Our digital media programmes support the development of diverse projects for online, mobile and video game platforms with an emphasis on technical, creative or design innovation. Through our work to promote Victoria as a leading production destination nationally and internationally, we’re also able to attract production, post-production and visual effects to the state. This enhances opportunities for employment and skills development, creates business prospects and generates a substantial boost for the Victorian economy. The result of our activity is a film, television and digital media industry that can demonstrate growth over time, with businesses becoming more sustainable.

This ultimately achieves our vision for the Victorian screen industry to have a world-leading screen economy and culture. Initially constituted as the Victorian Film Corporation in 1976 under an Act of Parliament, the Corporation became Film Victoria in 1982 by virtue of the Film Victoria Act (1981). In 1997, the functions of Film Victoria were amalgamated with those of the State Film Centre of Victoria to form Cinemedia Corporation, under the Cinemedia Corporation Act 1997. The Film Act 2001 abolished Cinemedia Corporation and established Film Victoria and the Australian Centre for the Moving Image (ACMI) as separate statutory authorities. In November 2006, Film Victoria moved from the Arts portfolio to Innovation, and reports to the Minister for Innovation, Gavin Jennings MLC. The Film Act 2001 defines Film Victoria’s role as to provide: ‘Strategic leadership and assistance to the film, television and multimedia industry of Victoria to encourage innovation and the creation of new projects of high quality that are of economic or cultural benefit to Victoria’.

Our vision

Our mission

Our Services

our vision is for Victoria to have a worldleading screen economy and culture

our mission is to lead an innovative screen industry to eliver engaging, world class content that enriches our cultural life, and generates jobs, prosperity and creative opportunities.

Our staff support the film, television and digital media industry by providing professional and business development support to foster industry business growth and skilled workforce. Supporting the creation and production or original screen content and encouraging audience engagement. Marketing and developing the state as a world-class production destination to increase the economic value of Victoria’s film and television production industry. Developing and leading industry policy on behalf of the Victorian Government.


Who we are Katherine Blashki With a background in Communications Arts and Information Technology faculties at numerous universities, Katherine is also known for her experience in the interactive media sector, focusing on creating narrative and systems development. Katherine has a new position as Director of Research and Education at the Australian Film, Television and Radio School (AFTRS) and Chair of New Media Technologies, a collaboration between the faculties of Arts, Science and Technology at Deakin University. She participates in community, industry and international consultancies in communications, IT and interactive media.

Ana Kokkinos Ana is an independent filmmaker based in Melbourne who commenced her career as a lawyer and industrial officer before graduating from the VCA School of Film and Television. She directed and cowrote the award-winning films ONLY THE BRAVE and HEAD ON, the latter selected for Director’s Fortnight at Cannes and the winner of numerous awards including an AWGIE for Best Adaptation. Ana’s latest feature film BLESSED, premiered at the Melbourne International Film Festival in 2009. It won the Jury prize at San Sebastian for Best Screenplay and the Jury Prize for Best Film at the Kosmorama Trondheim Film Festival in Norway. Ana recently wonan Emerging Master Award at the 2010 Seattle International Film Festival.

Jim McGrath Jim McGrath joined the Board in 2010. He has over 20 years experience in public policy development and implementation in a range of portfolio areas, including the screen industry and governance. He is currently engaged by the United Nations Development Program on the former Victorian Premier, Steve Bracks’ Timor- Leste Governance Project. Kim also serves on the Board of the Melbourne International Film Festival.

Jo Dawson Jo is a chartered accountant with extensive experience in financial services and wealth management developed through senior roles at National Australia Bank and Deloitte. Jo has excellent management and strategy experience, and brings a strong corporate governance background to the Board through experience developed in a range of environments, including CFO of National Financial Management. She is Managing Director and adviser with Executive Wealth Strategies, a financial planning practice established in 2002, and is also a director of the general insurance company Catholic Church Insurances Limited.

Sue Ling is the Principal/Director of InContext Finance, which provides financial consulting, financial management and strategic business advisory services to small and medium enterprises (SMEs). She is an accredited sponsor of the Australian Small Scale Offerings Board (ASSOB). Previously the holder of management positions with GE Capital, Bank of Melbourne (Westpac) and Citibank, Siu Ling is also a freelance writer. She holds a Bachelor of Economics degree (Accounting) from Monash University and is a member of the Institute of Chartered Secretaries and Administrators.

John Howie President John has been President of the Film Victoria Board since 2003 and was formerly the Chair of Film Victoria between 1989 and 1992. He was a member of the Film and Television Industry Task Force, which reported to the State Government in 2000, the Chair of the Film and Television Strategy Committee in 2005 and is a member of the Victorian Screen Industry Roundtable which delivered its strategy in 2009. A lawyer and former senior partner in the firm of Howie & Maher Solicitors,


It’s been a remarkable year for Screen Victoria and the Victorian screen industry. At Screen Victoria we lead the response to an ever-changing landscape to ensure a sustainable, innovative and resilient industry that performs strongly year after year. .Our funding programmes leveraged $179 million in 2009/10, almost double the production expenditure of the previous year. Local television production was the strongest performing sector, and the 37 productions we supported this financial year contributed $87 million to the Victorian economy - a 56% increase on last year’s figure. And significantly, we saw and heard more Victorian stories on screen, increasing the cultural benefit to the state. On our screens, viewership of the 33 Screen Victoria supported television programs on air this year exceeded 73 million views, signifying the strong appeal of our projects among Australian audiences. Victorian films also performed incredibly well at the box office - of the top 10 Australian films at the Australian box office, half were Victorian projects or from Victorian teams. Screen Victoria supported films released at the Australian box office took more than $24 million, which represents an estimated attendance of 2.1 million Australians experiencing

our stories on the big screen. Victoria continues its reputation as a leader in the games sector, winning eight of the nine Games Developers Association of Australia Game Developer Awards in 2009. We received a record number of digital media applications – up 45 % on the previous year, signalling that local companies are embracing the opportunity to develop commercially appealing content for new platforms, as well the growth of digital media developers and projects in Victoria. At Screen Victoria we lead the response to an ever-changing landscape to ensure a sustainable, innovative and resilient industry that performs strongly year after year. The Victorian Screen Industry Strategy provides the framework for the Victorian Government’s vision for the industry. It is a five-year plan and we are alreadyimplementing several strategy projects. In the coming financial year we will continue to consolidate and align our activities to

the objectives of the strategy, and deliver programmes that reflect its aims: to extend Victoria’s reputation as Australia’s foremost location for film, television and digital media production, to increase investment, exports and jobs, to enhance industry skills and increase exposure to Victorian creativity. As always, my heartfelt thanks to the Board, led by John Howie, for its continued commitment and leadership, and to Screen Victoriastaff for their hard work throughout the year. Finally, thanks to our talented screen professionals for their energy, creative vision and high-calibre projects, which have once again made Victoria the leading state for screen activity.

Tony Rellman Director


Since last we spoke... Throughout the past 12 months Screen Victoria has been striving to achieve the objectives set for the 2009/2010 financial year. 1 Develop an innovative industry Support and invest in Innovative local projects that reflect Australian Perspectives and engage audiences. Create strategic framework and action plans for screen industry sustainability. Maximise oppotunities for local production and post-production activity. Build local and international relationships that benefit the local screen industry. Recognise best practice in creative and business partnerships and projects.

2 build skills and capacity Identify and encourage industry growth oppotunities. Support professional development and other approaches to foster a skilled and productive workforce. Work with industry, associations and other government agencies to improve business skills capability.

3 Market Victoria and attract production Position Melbourne and provincial Victoria as a world-class production destination. Increase international and national production and post-ptoduction activity in Victoria. Build awareness and recognition of Victorian product and talent in Australia and overseas.

4 Enhance Audience engagement Increase oppotunities for people to view, understand and appreciate local content. Support organisations, events and iniatives that engage audiences.

5 shape industry policy Provide an integrated and focused industry policy framework that enhances sustainability, cultural outcomes, innovation, and excellence. Strengthen Screen Victoria’s research and analysis capacity and management and dissemination of industry knowledge.

6 Strengthen organisational capability Provide effective and transparent corporate services, business systems and infrastructure to achieve Screen Victoria’s stategic objectives. Maintain corporate governance, through policies, procedures, relevent legislation and departmental standards. Value and enhance our people and their skills.

Screen Victoria unveils its new corporate vision to filmmakers in Sydney and Melbourne as part of national tour to discuss the organisation’s plans. Launch of learning@screenaustralia. Screen Australia Roadshow travels to high schools around the country. Launched in February 2004, Screen Victoria Library Online provides worldwide access to the company’s heritage audio-visual collection. Silent Storm won best film at Earth VisionTokyo Global Environmental Film Festival in Japan while on the homefront, Dhakiyarr vs the King was the winner of the audio/visual history prize at the NSW Premier’s History Awards and Land of the Morning Star received an AFI (Australian Film Institute) Award for best sound in a non-feature as well as an Australian Screen Sound Guild Award. Screen Victoria archival footage is shown at the London New Media Gallery for the exhibition ‘Strange scapes’.

Australian film festival. Recipients of inaugural Screen Victoria/NSW Film and Television Office Hothouse Scheme announced. The Art of War wins NSW Premier’s Literary Award and Screen Victoria’s Immigration DVD wins an international award—the Focal Award for best use of footage in electronic publishing Shooting begins in Regional Victoria for the international mini-series ‘Culprits’ At the Australian International Documentary Conference, Screen Victoria announces new terms of trade and distribution advance and that the Central Australian Aboriginal Media Association (CAAMA) is the recipient of this year’s Stanley Hawes Award for outstanding contribution to Australian documentary. Company-wide implementation of new financial management system. Australian Government announces Screen Victoria to receive $7.5 million over next three years for ten-part history series.


Since last we spoke...

An estimated attendance of 2.1 million Australians at the box office for local films – a 411% increase on last year’s results.

+ +

186%

increase overl ast year

+

37 television productions supported by Screen Victoria contributed $87 million to the state’s economy – a 56% increase from last year’s leveraged spend of $56 million

The value of films beginning production in 2009/10 grew by 186% over the previous year, with production expenditure of $101 million

124%

56%

over last year

increase over last year

45% Increase in digital media production applications from the previous year

14 productions filmed in 37 locations in regional Victoria with the support of the Regional Location Assistance Fund (RLAF)resulted in a regional spend of $2.7 million. This is an increase of 124% from the previous year

5/10 top Australian films at the Australian box office were supported by Screen Victoria


Your projects Screen Victoria receives finance from the Australian Government under the National Interest Program agreement, requiring the company to devise, produce, distribute and market programs that deal with matters of national interest to Australia and the Australian people. Under the current five-year contract, the company must deliver 100 programs by 2011. It will focus on great stories that are engaging and entertaining; distinctive in look and content through an approach that is fresh and original; with an intelligent voice that is insightful and revealing; and an Australian perspective. All productions are commissioned from, and made by, Australian creative and technical personnel who constitute Australia’s independent documentary sector. In 2009–2010, Screen Victoria worked with filmmakers from Tasmania, Queensland, the Australian Capital Territory, Victoria and New South Wales to deliver 20 titles nationally under the agreement. These ranged from television documentaries to online projects, and covered An iconic portrait of a land and a character shaped topics of concern to contemporary Australia, from adoption to aborby drought—one that raises the question of the very tion, drought to divorce, painting to politics. Whatever the format or The Archibald, In another high-profile arts program, subject, Screen Victoria aims to be distinctive, producing outstanding viability of farming in the driest inhabited continent stand-up comic, media presenter and former art documentaries and education programs that are recognised for their on earth student Peter Berner swapped banter for brushes as excellence, creativity and integrity. The following productions, declared he attempted a self-portrait for the Archibald Prize. Peter Berner’s Loaded Brush is a video diary in 2008–2009, add to that exceptional body of work, the National Interest Program Productions of the process, including interviews with other artists and critics about the creative process and Delivered in 2008–2009. the background to one of Australia’s highest profile art competitions. Directed by Edwina Throsby The Art of War The former director of the National Gallery of Australia, Betty Churcher, brought with Sally Regan as producer, the one-hour program was produced with the assistance of the her unique perspective to a series on Australian art inspired by a century of conflict. The recipient Australian Broadcasting Corporation. It was broadcast nationally on ABC TV on 5 May 2009 of this year’s NSW Premier’s Literary Award for Scriptwriting, The Art of War was written and coinciding with the Archibald exhibition at the Art Gallery of New South Wales, which opened presented by Churcher, who also produced the series with director John Hughes. Produced in on 30 April. association with Early Works and SBS Independent, The Art of War was made with the support of Also produced in association with the Australian Broadcasting Corporation is Remembering the Australian War Memorial, where it was officially launched on 10 April 2005. It was broadcast Rain, a one-hour documentary that introduces viewers to the members of one rural community nationally by SBS TV on 23 and 24 April 2005 to coincide with Anzac Day commemorations. as they attempt to weather the worst drought on record. Directed by Mandy Chang—who also produced with Megan McMurchy—this is an iconic portrait of a land and a character shaped by drought—one that raises the question of the very viability of farming in the driest inhabited continent on earth. Who’s Afraid of Designer Babies? screened nationally on SBS TV on 30 September 2004. Written and directed by Sean Cousins, this one-hour documentary follows a couple who are trying to have a child with the right genetic make-up to save their son’s life. It also talks to parents who have used the same technology (pre-implantation genetic diagnosis) for gender selection and to leading scientists and ethicists from around the world. Going beyond sensationalist media headlines, this thoughtprovoking film presents a wide range of perspectives on a complex and emotionally charged issue. It was produced by Tony Wright and Stuart Menzies of December Films in association with Film Victoria and SBS Independent, and developed with the assistance of Film Victoria and the Australian Film Commission.

I was getting a little bit desperate for a really, really good film and then, wouldn’t you know it, along come the Dardon brothers from Melbourne with their THE KID WITH A BIKE and it’s an absolutely searing story about this boy who is desperate to contact his father. He’s been abandoned by him. He’s just relentless and wilful about finding his father and in the process he runs into an unlikely friend, and the film is really about the connection between the two of them. Margaret Pomeranz At The Movies ABC


Balance sheet

Consolidated Notes

Parent

2010

2009

2010

2009

$

$

$

$

Current Assets Cash and cash equivalents

8

10,072,893

14,283,824

5,584,431

12,361,134

Trade and other receivables

9

1,334,725

2,824,267

1,436,423

94,292

11,407,618

17,108,091

7,020,854

12,455,426

Total current assets Non-current assets

Income Statement

Consolidated

Parent

2010

2009

2010

2009

Notes

$

$

$

$

Revenue from continuing operations

5

1,462,771

571,837

580,687

526,606

Other income

5

8,090,536

6,422,066

-

-

6

(5,325,403)

(3,906,186)

(1,899,381)

(2,037,530)

Property, plant and equipment

11

1,110,801

1,431,124

-

-

Administration expense

Intangible assets

12

17,785,573

4,086,538

3,688,680

4,086,538

Research and development expense

(11,983,590)

(9,945,396)

-

-

-

-

(4,443,060)

(7,996,332)

Investments accounted for using the equity method

13

76,286

2,387,312

-

-

Provision for diminution

Deferred tax assets

14

43,201

-

-

-

Finance costs

(32,738)

(23,285)

-

-

Other financial assets

15

-

-

16,291,538

5,208,750

Total non-current assets

19,015,861

7,904,974

19,980,218

9,295,288

Share of results of associates accounted for using the equity method

(178,446)

(641,825)

-

-

Total assets

30,423,479

25,013,065

27,001,072

21,750,714

(7,966,870)

(7,522,789)

(5,761,754)

(9,507,256)

721,874

-

-

-

(7,244,996)

(7,522,789)

(5,761,754)

(9,507,256)

Current Liabilities

Loss before income tax Income tax credit Loss for the year

Trade and other payables

16

1,854,515

1,897,819

1,369,731

1,484,154

Borrowings

17

68,587

142,092

-

-

Provisions

18

356,463

331,447

-

-

Deferred income

19

980,161

661,337

-

-

Loss per share for loss from continuing operations attributable to ordinary equity holders of the company

3,259,726

3,032,695

1,369,731

1,484,154

Basic loss per share

Total current liabilities Non-current liabilities 20

260,147

315,412

-

-

Provisions

21

57,257

107,630

-

-

Deferred income

22

168,946

241,342

-

-

Deferred tax liabilities

23

953,373

-

-

-

Total non-current liabilities

1,439,723

664,384

-

-

Total liabilities

4,699,449

3,697,079

1,369,731

1,484,154

Net assets

25,724,030

21,315,986

25,631,341

20,266,560

Equity Contributed equity

24

76,226,627

65,375,467

76,226,627

65,375,467

Reserves

25

1,299,253

497,374

697,213

421,838

Accumulated losses

26

(51,801,850)

(44,556,855)

(51,292,499)

(45,530,745)

25,724,030

21,315,986

25,631,341

20,266,560

Total equity

Loss attributable to minority interests

-

-

-

-

Loss attributable to members of Company

(7,244,996)

(7,522,789)

(5,761,754)

(9,507,256)

($0.04)

($0.06)

($0.04)

($0.06)

Diluted loss per share

Borrowings

-

-

-

-

7

37


Changes in equity

Consolidated Notes

Total equity at the beginning of the year

Parent

Cash flow

2010

2009

2010

2009

$

$

$

$

21,315,986

9,965,965

20,266,560

11,017,082

Cash flow from operating activities

Consolidated Notes

Parent

2010

2009

2010

2009

$

$

$

$

Exchange differences on translation of foreign operations

25

(1,688,014)

116,075

-

-

Receipts from trade and other debtors

1,042,324

110

-

-

Share of revaluation of IP within subsidiary

25

2,214,519

-

-

-

Grant income (inclusive of GST)

10,567,298

4,360,527

-

-

Net income recognised directly in equity

526,505

116,075

-

-

Payments to suppliers and employees (inclusive of GST)

(15,591,264)

(12,405,980)

(1,462,830)

(1,046,208)

Loss for the year

(7,244,996)

(7,522,789)

(5,761,754)

(9,507,256)

Interest received

636,152

574,151

544,904

538,295

Total recognised income and expense for the year

(6,718,491)

(7,406,714)

(5,761,754)

(9,507,256)

Interest paid

(34,704)

(18,756)

-

-

(3,380,194)

(7,489,948)

(917,926)

(507,913)

Loans advanced to subsidiaries

-

-

(5,597,031)

(7,683,238)

Loans advanced from subsidiaries

-

-

-

50,129

Receipts from property, plant and equipment

1,010

25,904

-

-

Payments for property, plant and equipment

(182,185)

(463,184)

-

-

Payments for transaction costs on acquisition of subsidiary (net of cash acquired)

(90,986)

-

(231,630)

-

Net cash outflows from investing activities

(272,161)

(437,280)

(5,828,661)

(7,633,109)

Proceeds from issue of shares

-

14,990,045

-

14,990,045

Share issue transaction costs

-

(810,413)

-

(810,413)

Lease repayments

(126,739)

(134,839)

-

-

Net cash inflows / (outflows) from financing activities

(126,739)

14,044,793

-

14,179,632

Net increase / (decrease) in cash and cash equivalents held

(3,779,094)

6,117,565

(6,746,587)

6,038,610

Cash and cash equivalents at the beginning of the period

14,283,824

8,166,259

12,361,134

6,322,524

Effects of exchange rate changes on cash and cash equivalents

(431,837)

-

(30,116)

Cash and cash equivalents at the end of the period

10,072,893

14,283,824

5,584,431

Transactions with equity holders in their capacity as equity holders:

Net cash outflows from operating activities Cash flow from investing activities

Employee share options

25

275,374

203,223

275,374

203,223

Contributions of equity, net of transaction costs

24

10,851,160

18,553,512

10,851,160

18,553,512

25,724,029

21,315,986

25,631,340

20,266,560

1

-

1

(0)

Total equity at the end of the year

35

Cash flow from financing activities

12,361,134


Independent Audit Report

To the members of Screen Victoria Limited Scope The financial statements comprise: “ Directors’ Declaration; “ Statements of Financial Performance, Financial Position and Cash Flows; and “ Notes to and forming part of the financial statements of Screen Victoria Limited for the year ended 30 June 2010. The directors of Screen Victoria Limited are responsible for preparing a financial report that gives a true and fair view of the financial position and performance of the company, and that complies with accounting standards and other mandatory financial reporting requirements in Australia, in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report. Audit approach I have conducted an independent audit of the financial report in order to express an opinion on it to the members of the company. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing and Assurance Standards, in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive, rather than conclusive, evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected. While the effectiveness of management’s internal controls over financial reporting was considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

We declare

I have performed procedures to assess whether, in all material respects, the financial report presents fairly, in accordance with the Corporations Act 2001, including compliance with accounting standards and other mandatory financial reporting requirements in Australia, a view which is consistent with my understanding of Screen Victoria Limited’s financial position, and of its performance as represented by the statements of financial performance and cash flows. The audit opinion is formed on the basis of these procedures, which included: “ examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report; and “ assezssing the appropriateness of the accounting policies and disclosures used, and the reasonableness of significant accounting estimates made by management. Independence Independence requirements of the Australian professional ethical pronouncements and the Corporations Act 2001 have been met. I have given to the directors of the company a written Auditor’s Independence Declaration. Audit Opinion In my opinion, the financial statements of Screen Victoria Limited are in accordance with: a the Corporations Act 2001, including: (i) giving a true and fair view of Screen Victoria Limited’s financial position as at 30 June 2005 and of its performance for the year ended on that date; and (ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and b other mandatory professional reporting requirements in Australia.

Screen Victoria Limited ACN 008 639 316 The directors declare that: a the financial statements and notes are in accordance with the Corporations Act 2001 and comply with the Accounting Standards and Corporations Regulations 2001; b the financial statements and notes give a true and fair view of the financial position as at 30 June 2005 and of the performance of the company and the cash flows for the year then ended; c in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts when they become due and payable. Made in accordance with a resolution of the directors:

Australian National Audit Office

P Hinchey Senior Director For the Auditor-General Sydney, 14 September 2010

Steven Skala Daryl Karp Director Director 13 September 2010 13 September 2010


Image credits Thank you to The Vancouver film School, The Oslo Opera House, and Film Victoria, Playing for Charlie, for the use of production images, under a Creative Commons Licence.


Annual Report