CBCENGLISH SERVICES

TOWN HALL

April 10, 2012DEADLIN

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April 10, 2012

Kirstine StewartEVP, ENGLISH SERVICES

OPENING

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April 10, 2012

Neil McEneaneyGENERAL MANAGER, FINANCE & STRATEGY

FINANCIAL OVERVIEW

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» Last week, the President told us that CBC/Radio-Canada needs to find $200M plus severance over the next 3 years

» The $200M comes from:

THE FINANCIAL CHALLENGE – CBC/Radio-Canada

Government cut $115M

Investments & redirections re Strategy 2015 $55M

Cost increases (inflation re salaries, rights, rent, taxes, etc) & contingencies (revenue risks) $30M

TOTAL $200MDEADLIN

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»5 Buckets of Reductions:

CBC / RADIO-CANADA - OVERVIEW

Increasing Revenues $50M

Transforming RCI $10M

Accelerating shutdown of analogue transmitters $10M

Reducing costs, doing things differently $100M

Pacing the 2015 rollout $30M

TOTAL $200MDEADLINE.co

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»Departures:

CBC / RADIO-CANADA - OVERVIEW

UP TO…ENGLISH FRENCH CORPORATE TOTAL

Positions(FTEs)

TOTAL256 243 151 650

Positions (FTEs)

THIS YEAR215 153 105 473

NOTE: this year is before July 31, 2012

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» $200M in financial pressures is being managed Company-wide

» This plan will eliminate up to 650 full time positions in CBC/Radio-Canada

THE FINANCIAL CHALLENGE – CBC/Radio-Canada

$86

$64

$50

English Services

French Services

Corporate Services (includes RCI)

$Millions

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» English Services' share of the $200M financial challenge is $86M

» Over the next 3 years, the $86M (rounded up) will be managed through growing our revenues, maximizing savings in efficiencies and reductions in programs and services. Up to 256 full time positions will be eliminated

THE FINANCIAL CHALLENGE – English Services

$43.2

$14.3

$27.9

Programming/services

Efficiency measures

Revenues

$Millions

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» The Financial plan was developed based on the following criteria:

» Continue implementing Strategy 2015, although at a slower pace

» Increased Canadian content

» More regional services

» More digital services

» Minimize the impact on employees

» Minimize the impact on audiences

» Protect our revenues

» Maximize efficiencies

» Deliver the efficiencies committed under the Strategy 2015 plan

» Reduce costs and doing things differently

» Generate savings from working closely with French and Corporate Services

GUIDING PRINCIPLES – Financial Plan

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OVERVIEW OF CUTS English Services

Note 1: News is triggering $10M in budget cuts (88 FTE reductions) with the remaining $2M (23 FTE’s) held for contingencies

Note 2: Impact from closing the Halifax facilities. Real Estate savings are reflected in the Corporate budget

Note 3: Budget cuts and FTE reductions related to efficiency measures need to be allocated out to programming and support areas

$000's Full Time Positions

PROGRAMMING CUTSTV Programming 21,200 32

News & Centres (Note 1) 12,000 111

Radio 3,000 18

Local Service Extension 7,000 -

Halifax – facilities (Note 2) 13

$43,200 174

NON-PROGRAMMING CUTSEfficiencies (Note 3) 12,250 82

Communications - reduce paid media 2,000 -

$14,250 82

REVENUE INITIATIVESIncreased advertising minutes & R2 $27,850 -

$27,850 0

TOTAL IMPACT $85,300 256DEADLINE.co

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April 10, 2012

Jennifer McGuireGENERAL MANAGER & EDITOR IN CHIEF, NEWS & CENTRES

CBC NEWS & CENTRES

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DIFFICULT DECISIONS

» Protect programming and original journalism

» Maintain the capacity to be competitive

» Protect ability to grow and extend digital

» Extend service to more Canadians, especially locally

» Maximize integration and technology

» Cut infrastructure and administration costs

» Maintain healthy work environments and workloads

GUIDING PRINCIPLES

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THE FINANCIAL CHALLENGE :CBC NEWS and CENTRES

$10 Million 88 jobs affected

CBC News NetworkCBC News

ProgrammingCBC News

Newsgathering

CBC News Digital

CBC News Centres

CBC News & CentresAdministration

$1M12 jobs

$2M16 jobs

$2.6M14 jobs

$3M34 jobs

$200K2 jobs

$1.2M10 jobs

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OVERVIEW OF CUTS/REDUCTIONSCBC NEWS and CENTRESDECISIONS and IMPACTS

CBC News Network

CBC News Programming

CBC News Newsgathering

CBC Centres

Cancel Connect Cancel Dispatches Reduce capacity Assignment Desk Content Units Parliamentary Bureau

Workflow efficienciesacross all locations

Reduce Documentaries

Cuts to The National Changes to management of reporters

Close International BureausSouth America Africa

Cancel Maritime programsClose to HomeConnectionsAt The TableAll the Best

Launch Western Programming

Increase money for High Impact Projects

Augment London and Washington

Launch Local Service Extensions

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LOCAL SERVICE EXTENSIONSNEW STATIONS

Station Impact

Hamilton Still launches in 2012, on schedule

Kamloops DELAYED: 2012/2013 launch

London DELAYED: 2012/2013 launch

Waterloo Region DELAYED: 2012/2013 launch

Saskatoon DELAYED: 2013

Implementing a less expensive option for Regional Expansion

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IMPORTANT TO KEEP LOOKING FORWARD

» Canadians are consuming news and information in different ways

» Digital and mobile showing significant growth

» We need to continue growing and evolving to keep pace

» We need to reach more Canadians in more locations

» We need to differentiate ourselves by offering value through:

QUALITY ORIGINAL JOURNALISM

BREAKING NEWS

INNOVATION

VISION FOR 2015

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April 10, 2012

Chris BoyceEXECUTIVE DIRECTOR, RADIO & AUDIO

RADIO & AUDIO

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RADIO & AUDIO:

FUNDING CUT POSITIONS (FTEs)

$3 Million 18

THE FINANCIAL CHALLENGE

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RADIO & AUDIO:

» Maintain the audience experience

» Maintain existing broadcast & digital services

» Preserve key elements of Strategy 2015

» TALK: Protect core local & network programming, continue to grow record audiences, continue to expand serving audiences with talk content on digital platforms

» MUSIC: No change to music strategy, direction or core values. Continue to be a point of discovery for Canadian music fans, creating compelling music programming across platforms and a wide range of genres.

GUIDING PRINCIPLES

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RADIO & AUDIO

CUT Positions (FTEs) $

Reduce number of live music recordings

13 $1.25M

Eliminate drama programming from the Radio One schedule

3 $1M

Other programming reductions 2 $750K

OVERVIEW OF CUTS

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RADIO & AUDIO

» Grow audiences across platforms

» Provide outstanding Canadian music & talk content, when, where and how Canadians want it

» Even more locally relevant

VISION FOR 2015

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Christine Wilson EXECUTIVE DIRECTOR, CONTENT PLANNING

Trevor Walton EXECUTIVE DIRECTOR, COMMISSIONED & SCRIPTED

Julie Bristow EXECUTIVE DIRECTOR, STUDIO & UNSCRIPTED

Jeffrey OrridgeEXECUTIVE DIRECTOR, SPORTS PROPERTIES

TV PROGRAMMING

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CUTTING TV PROGRAMMING: $21.2M

»How we approached it?

»Protect content

»Protect revenue

»Respect COLs

»Protect 2015

FINANCIAL CHALLENGE & GUIDING PRINCIPLES

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OVERALL:

»6 fewer series, 175 fewer original hours

»More repeats in prime

»Fewer specials

»Less ambitious pace for 2015 initiatives

»Significant external ripple … eg. one drama = 200 jobs

»Next week: final pick-up decisions

»May 10th: Sales and Press Launch

TV PROGRAMMING CUTS

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SCRIPTED & COMMISSIONED:

» A&E, Docs, Kids

» Protect our successes

» Reductions, but retain all genres

» Concentrate on one-hour shows

» Impact to Kids : 4 hours per week

» Documentary : Loss of Cross Cultural fund, Re-balance of In-House and Independent (18 positions and $2.7M)

» Sale of the Bold channel

TV PROGRAMMING CUTS

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STUDIO & UNSCRIPTED:

»Factual, Unscripted Comedy, Sports

» Fewer and less expensive factual programs in prime time

» Little flexibility for blockbuster specials

» Overall reduction of $4M to sports (14 positions, 10 in year 1,

4 in year 2)

» Fewer Hours of Sports Weekend in line with our current sports strategy (35 occasions)

» Sports Weekend to become a seasonal program (Ice & Snow)

TV PROGRAMMING CUTS

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SPORTS PROPERTIES:

» Continue to pursue & retain sports properties that are entertaining, engaging and nation-building

» Showcase Canadians and Canada in world-class, marquis events

» Focus on underleveraged revenue opportunities in amateur sports

» Maintain focus on Winter Amateur Sports, “ICE & Snow Strategy”

» Narrow focus in Summer to signature events

» Continue to build on revenue opportunities and minimize financial exposure through joint venture opportunities with the NHL such as “Face Off” and “Winter Classic”

» NHL / HNIC – Don’t count us out – it’s still our game

TV PROGRAMMING CUTS

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» We are redefining Public Broadcasting for a new century, and we are on a roll!

» We can’t stop …

» making quality content that Canadians love, watch and use

» finding ways to showcase the country, telling the stories others don’t

» transformationing ourselves from « broadcaster » to « content company »

» building the townsquares where Canadians can engage with us and eachother

DON’T LOSE MOMENTUM

VISION FOR 2015

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April 10, 2012

Fred MattocksGENERAL MANAGER, MEDIA OPERATIONS & TECHNOLOGY

EFFICIENCY MEASURES

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EFFICIENCIES – PRODUCTION AND OTHERWISE

» Our plan requires us to find $12,250K over the three years starting this past April 1st. We estimate this will affect 82 Positions (FTEs).

» In order to accomplish this, we will seek efficiencies in:

» Production methods

» Administration

» Work processes

THE FINANCIAL CHALLENGE

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EFFICIENCIES

» Production efficiencies – we will ensure that the resources invested and the infrastructure provided are sized to meet the defined service and creative outcomes – no less and no more.

» Administrative efficiencies – we will ensure that our administrative resources and methods are sized to support the requirements of our content operations and administrative obligations – no less and no more. We will ensure that administration is an enabler of productivity, not a barrier.

» Workflow and work processes – in all areas we will examine the way we do things to identify opportunities to do things more cost effectively, faster, and more productively.

GUIDING PRINCIPLES

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EXAMPLES OF EFFICIENCY MEASURES

» Administrative and Management Review – a review of all administrative and management processes to identify opportunities for savings and to streamline administration support of content and service goals.

» Technology adoption – we have some of the best technologies in the business – technologies that provide us the capability to produce more quickly with fewer resources for a given quality. We will work to ensure that these technologies are being used appropriately to free up resources for content and service goals.

» Workflow – new technologies provide us with opportunities to do work in different ways. We will work to realise savings and to ensure that the work done is productive and contributes directly to content and service goals.

OVERVIEW OF CUTS

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MORE OPPORTUNITY REALISED

» We will have the organisation, skills, direction, tools and infrastructure to “punch above our weight” in meeting the content needs of Canadians.

» We will have set the platform for “Strategy 2020” and we will be moving towards our future in a smooth and natural way. Our talent and energy will be focused primarily on content – creation, acquisition, production and delivery – in service of the expressed needs of Canadians.

» We will continue to create an environment that incites creative enterprise in curation and authorship, an environment where every employee can contribute to our program and service goals.

VISION FOR 2015

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April 10, 2012

Kirstine StewartEVP, ENGLISH SERVICES

CLOSING

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NEXT STEPS – ES HR/IR TIMELINE FOR WFA - AS OF APRIL 5, 2012

NOTE: some dates are subject to change

April 4 Corporate Town Hall

April 5 Notice of Group Termination to Minister of Labour

April 10

Union briefings

Manager briefings

English Services Town Hall

Regional and departmental meetings

Weeks of April 9 and 16 Local Joint Employment Committees process

Week of April 23 Advise unions of redundancy notices to be given to employees

By the end of April Redundancy notices delivered

By June 21 Majority of layoff letters delivered

By July 31 Majority of layoffs implemented

Following layoffsOutplacement services for laid off employees

EAP support available to employees for 6 months post departure

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April 10, 2012

Q&A

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