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August 2015 CONFIDENTIAL AND EXCLUSIVE This material may not be used without prior formal authorization from the Montreal Museum of Fine Arts ANALYSIS OF CURRENT SITUATION

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August 2015CONFIDENTIAL AND EXCLUSIVEThis material may not be used without prior formal authorization from the Montreal Museum of Fine Arts

ANALYSIS OF CURRENT SITUATION

The Montreal Museum of Fine Arts | 1

Executive summary

The Montreal Museum of Fine Arts conducted an analysis of its current situation, as well as its impact on the economy and tourism.

The Montreal Museum of Fine Arts…1. is bold, innovative and caring2. is a world-class institution3. is involved in the community4. is experiencing exceptional growth 5. has a major impact on the economy and tourism in Montreal and Quebec6. is efficiently managed.

Still, despite a significant increase in private funding over the past twenty years, numerous cuts to government funding have resulted in a shortfall that is preventing the MMFA from consolidating its achievements, realizing its vision and reaching its full potential.

The Montreal Museum of Fine Arts | 2

The Montreal Museum of Fine Arts…

The No. 1 art museum in Canada, 12th in North America and 58th in the world for number of visitors

World-renowned expertise in the design and circulation of large-scale temporary exhibitions around the globe2 …is a world-

class institution

A broad range of educational and cultural activities offered to the community, with more than 300,000 participants annually

Partnerships with more than 400 community organizations across Quebec3 …is involved in the community

The MMFA generates economic benefits of about $100 million per year for Montreal and Quebec

A major tourist attraction: 33% of visitors are tourists, and 100,000 tourists come to Montreal every year specifically to visit the Museum

A museum that raises the profile of Montreal and Quebec internationally5

…has a major impact on the economy and tourism in Montreal and Quebec

The MMFA is ranked first among Canadian museums for its proportion of self-generated revenues

Its operating budget and costs per visitor are considerably lower than those of comparable museums in Canada and the United States6 …is efficiently

managed

Since 2010, the Museum has undergone exceptional growth Visitors: from 550,000 to 1,087,000 (+ 98%); more than a million visitors in 2013 and 2014 Memberships: from 25,000 to 64,000 (+ 149%) Participants in educational and cultural activities: from 100,000 to 307,000 (+ 207%)

4…is experiencing exceptional growth

Through its activities and strategies, a vibrant, engaged and multidisciplinary MMFA strives to forge ties with the public, its members and its partners

The Museum’s success is founded on its innovative nature and its ability to reinvent itself and think outside the box.

1 …is bold, innovative and caring

The Montreal Museum of Fine Arts | 3

A BOLD, INNOVATIVE AND CARING MUSEUMThe Museum owes its success to its innovative nature, its ability to reinvent itself and to think outside the box

1

SOURCE: MMFA

The Museum evolves along with its city and is a reflection of its society

▪ It has the capacity and the desire to transform itself to remain relevant

▪ It is innovative, inventive, daring, resourceful and proactive

▪ It initiates dialogue in all disciplines: visual arts, history, music, science, ethnology, sociology, etc.

▪ It offers a bold, contemporary reading of objects, making a connection to today’s social issues

▪ It is receptive to input from its community, through partnerships with artists, craftspeople, creators and experts

▪ It combines disciplines and develops the educational dimension of its collections and exhibitions

The Montreal Museum of Fine Arts | 4

A WORLD-CLASS MUSEUMThe art museum with the most visitors and memberships in Canada2

Ranking of North American art museums by number of visitors Highlights

Millions of visitors in 2014

The Montreal Museum of Fine Arts 1,0Guggenheim Museum - NY 1,0Boston Museum of Fine Arts 1,1Smithsonian American Art Museum - DC 1,2Los Angeles County Museum of Art 1,2Art Institute of Chicago 1,4Museo Soumaya - Mexico 1,5Fine Arts Museums of San Francisco 1,6J. Paul Getty Museum - LA 1,8Museum of Modern Art - NY 3,0National Gallery of Art - DC 3,9Metropolitan Museum of Art - NY 6,2

Top 12 museums With more than 1 million visitors in 2013 and 2014, among art museums, the MMFA ranks:

– 1st in Canada

– 12th in North America

– 58th worldwide

With 63,764 memberships at March 31, 2015, the MMFA is ranked first in Canada and fifth in North America among art museums

SOURCE: Visitors: The Art Newspaper (London), “Special Report,” no. 267, April 2015, p. 3-4; 2013-2014 annual reports for the Vancouver Art Gallery, Musée national des beaux-arts du Québec and Musée d’art contemporain de Montréal

Other Canadian museums

National Gallery of Canada1

Musée d’art contemporain de Montréal 0,2

0,2

0,3

Vancouver Art Gallery 0,5

Art Gallery of Ontario 0,8

Royal Ontario Museum 0,9

Musée national des beaux-arts du Québec

1

12

58

1 Attendance at main facilities, excluding NGC site and Venice Art Biennale

McKinsey & Company | 5

A museum complex that has grown with the addition of two new pavilions in 5 yearsA WORLD-CLASS MUSEUM

2

A

CD

B

E

Five pavilions covering more than 48,813 m2; eighth largest art museum in North America for surface area

A concert hall, auditorium and areas for educational, community and art therapy activities

Sculpture garden adjoining the Museum

1912

Opening of first pavilion, the current Michal and Renata Hornstein Pavilion, designed by Canadian architects Edward & W.S. Maxwell

First pavilion: Michal and Renata Hornstein

MAJOR EXHIBITIONS, ARCHAEOLOGY, CULTURAL ACTIVITIES(5,545 m2)

A

2016

Projected opening of the Museum’s fifth pavilion, Michal and Renata Hornstein Pavilion for Peace, designed by the consortium of architect Manon Asselin of TAG and Jodoin Lamarre Pratte Architectes

Michal and Renata Hornstein Pavilion for Peace

INTERNATIONAL ART, EDUCATION, ART THERAPY, AREAS FOR COMMUNITY AND FAMILY ACTIVITIES(5,278 m2)

E2011

Opening of Claire and Marc Bourgie Pavilion – the fourth in the Museum’s history – designed by the Montreal architectural firm Provencher+Roy et Associés

Opening of the Bourgie professional concert hall in the heritage church next to the new pavilion (the former Erskine & American Church, designed by architect Alexander C. Hutchison in 1894). Restoration of the building envelope by DFS Inc. architecture & design

Claire andMarc Bourgie Pavilion

QUEBEC AND CANADIAN ART, MUSIC (5,460 m2)

D

1976

Opening of a second pavilion, built under the direction of Canadian architect Fred Lebensold, the current Liliane and David M. Stewart Pavilion, and inauguration of Maxwell Cummings Auditorium

Liliane and David M. Stewart Pavilion

DECORATIVE ARTS AND DESIGN(9,610 m2)

B 1991

Opening of the third pavilion, the current Jean-Noël Desmarais Pavilion, designed by Canadian architect Moshe Safdie. The expanded educational facilities, the Studios Art & Education Michel de la Chenelière, opened In 2012.

Jean-Noël Desmarais Pavilion

MAJOR EXHIBITIONS, WORLD CULTURES,MODERN ART, CONTEMPORARY ART, EDUCATION (22 420 m2)

C

SOURCE: MMFA; Association of Art Museum Directors

The Montreal Museum of Fine Arts | 6

AN ENCYCLOPEDIC COLLECTION COMPRISING MORE THAN 41,000 WORKS – UNIQUE IN CANADA

A collection that is impressive for both its size and originalityA WORLD-CLASS MUSEUM

2

The MMFA has one of North America’s largest collections of decorative arts from before 1900. Its collection of decorative arts and design from after 1900 is unique in Canada and includes more than 6,100 objects.

The collections of world cultures and archaeology (Mediterranean, Asian, Pre-Columbian, Asian, African) comprise more than 8,000 objects. They are without equal in Quebec and among the largest in Canada.

The MMFA has an impressive collection of Quebec and Canadian art, including Inuit art as well as works from Pre-Confederation (1700-1870) to the present day.

The MMFA devotes a large amount of space to contemporary art, featuring works by Canadian and international artists since 1980, from Riopelle and Richter to the present day.

The MMFA’s collection of early international art is unique in Quebec for its diversity and quality, and is one of the largest in Canada (with works by Rembrandt, Poussin, El Greco and Veronese, among others).

The collection of international modern art includes European works from the late nineteenth to the early twentieth century, by artists such as Monet, Sisley, Pissarro, Rodin, Renoir, Rouault, Matisse, Picasso, Van Dongen, Dalí, Dix, Cézanne, Matisse, Feininger, Moore and Basquiat. INTERNATIONAL MODERN ART

Portrait of the Lawyer Hugo SimonsOtto Dix

Dryden Serge Lemoyne

Christopher Dresser

Women Pursued by SatyrsHonoré Daumier

SOURCE: MMFA

Portrait of a Young Woman, about 1668Rembrandt

Embrace, 1971Pablo Picasso

Outstanding world-class works

ARCHAEOLOGY AND WORLD CULTURES

INTERNATIONAL CONTEMPORARY ART

EARLY INTERNATIONAL ART

DECORATIVE ARTS AND DESIGN

QUEBEC AND CANADIAN ART

The Montreal Museum of Fine Arts | 7

A WORLD-CLASS MUSEUM

CreativityUnique exhibition designs developed through a multidisciplinary approach, in collaboration with international architects and designers

Excellence and innovation in subject matterExcellence in scholarly research, content and catalogues, exhibition teams and activities associated with exhibitions

The MMFA is recognized for its expertise in designing, producing and touring large-scale temporary exhibitions featuring a multidisciplinary approach with ties between the arts and music. It has also garnered acclaim for its prestigious publications and its innovations in research and exhibition design.

Examples of unique exhibitions initiated, designed and produced exclusively by the MMFA

The Fashion World of Jean Paul Gaultier (2011-2016)Design of this exhibition phenomenon, presented in 11 cities around the world, nearly 2 million visitors around the world in 5 years

Peru: Kingdoms of the Sun and the Moon (2012)Featuring objects from nearly 50 public and private collections, comprising 370 artifacts and treasures

¡Cuba! Art and History, from 1868 to Today (2008)The MMFA successfully assembled works from the Museo Nacional de Bellas Artes in Havana and works from the United States

Temporary Exhibitions of Outstanding Quality2

SOURCE: MMFA

Touring MMFA-designed exhibitions around the worldBusiness ties with the world’s leading art museums and unique expertise in developing and exporting blockbuster productions

The Montreal Museum of Fine Arts | 8

A WORLD-CLASS MUSEUM

Since its publishing department was established in 1985, the MMFA has released some 230 titles in English, French and several other languages

Examples of bilingual publications produced by the MMFA and distributed internationally

One of Canada’s leading publishers of art books, in English and French, distributed around the world

International distributionThe catalogues are available at leading bookstores and museums around the world (e.g. the Louvre) with support from international distributors (e.g. Hazan, Prestel, Abrams, 5 Continents, La Martinière, Yale University Press)

The Fashion World of Jean Paul Gaultier: From the Sidewalk to the CatwalkPrint run: 40,000

Benjamin-Constant: Marvels and Mirages of Orientalism Print run: 11,000

2

SOURCE: MMFA

Large print runsAbout 60,000 copies of the publications are sold at the Museum Boutique and Bookstore, as well as nearly 100,000 copies via international distributors

Prestigious international awards Many of these publications have been honoured with prestigious international awards (e.g. Grand Prix du Livre de Mode from the Université de la Mode de Lyon for the Jean Paul Gaultier catalogue)

Warhol Live: Music and Dance in Andy Warhol’s World No. of copies printed: 11,317

Warhol – Catalogue Raisonné of Album CoversPrint run: 8,700

The Montreal Museum of Fine Arts | 9

114,050

20,666

50,606

72,635

A MUSEUM INVOLVED IN THE COMMUNITYA “museum for everyone,” offering a wide range of educational and cultural activities that attract more than 300,000 people

A

B

School programmes

Family programmes

Community programmes

C

Cultural and musical activities

D

3DETAILS IN APPENDIX

SOURCE: MMFA data for fiscal year beginning April 1, 2014, and ending March 31, 2015

Participants 2014-2015 Description

48,887

Audioguides and mobile apps

F

▪ For preschoolers, elementary and secondary students, a Museum visit combined with a hands-on workshop

▪ Family Weekends▪ Day Camp and Spring Break ▪ Projects for families from low-income neighbourhoods

▪ Sharing the Museum: customized to meet specific needs (mental health, disabilities, francization, school dropouts, the homeless)

▪ Well-being and art therapy programmes

▪ Cultural activities: lectures, symposiums, films, concerts▪ Guided tours of the collections and exhibitions by the

Volunteer Guides

▪ Tours with an audioguide and mobile apps

The Montreal Museum of Fine Arts | 10

The MMFA has seen remarkable growth in the number of visitors (+ 98%) and memberships (+ 149%) since 2010

A MUSEUM THAT IS EXPERIENCING EXCEPTIONAL GROWTH4

1,087

+ 98%

2014-2015

2013-2014

1,102

2012-2013

704

2011-2012

767

2010-2011

563

2009-2010

550

Number of visitorsIn thousands

+ 149%

64

20152014

59

2013

45

2012

42

2011

38

2010

25

Number of membershipsIn thousands, at March 31. 2015

▪ The number of visitors has doubled since 2010, to 1.09 million

▪ In 2014-2015, the number of visitors surpassed 1million for the second year in a row

▪ Visitor-generated revenues grew from $1.5 to $3.7 M between 2009-2010 and 2014-2015

▪ The number of memberships has increased by 149%since 2010, to 63,764 at March 31, 2015

▪ Revenues generated by memberships increased from $1.0 to $3.1 M between 2009-2010 and 2014-2015

SOURCE: Visitors: MMFA, for fiscal 2014-2015 (April 1 to March 31)Memberships: MMFA, at March 31, 2015

The Montreal Museum of Fine Arts | 11

33

19

15

5

17

39

23

13

5

16

21

23

41

28

25

12

36

49

50

64

3919

62

% visitors1

10.2 213Rest of Quebec

7.8 590Rest of Canada

6.3 658United States

4.7 1,090France

3.8 944Other

Influence of Museum in choice of destination% visitors

Average spending$ by visitor

Museum visitors NoneModerate LowStrong

A MAJOR IMPACT ON THE ECONOMY AND TOURISM IN MONTREAL AND QUEBEC

The Museum influences the choice of destination of 100,000+ tourists

• 33% of the MMFA’s visitors are tourists who spend at least one night in Montreal

• 36% of the MMFA’s visitors from outside the Greater Montreal region chose to visit the city partly because of the MMFA (more than 100,000 people)

• For 17% of visitors from outside Greater Montreal, or about 47,000 people, the MMFA was a decisive factor in the choice of Montreal as a destination

Average 394

SOURCE: Clientele study by Callosum August 21 to September 5 and October 20 to November 30, 2014, of the 1,444 visitors who purchased a ticket to visit the MMFA

67.2Greater Montreal n.a. 152

1 In 2014, the MMFA welcomed 1.1 million visitors, including about 250,000 from Greater Montreal, who took part in educational activities; the above percentages apply to the remaining 850,000 visitors.

2 Estimate, since the amount was not available in the clientele study.

5

The Montreal Museum of Fine Arts | 12

1 Direct benefits: correspond to increased revenues from companies and individuals resulting from increased demand for goods and services associated with the Museum’s activities (e.g. salaries and suppliers). The local economy’s capture rate for these expenses is 90% for the MMFA’s expenses and 70% for tourist spending.

2 Indirect benefits: from increased production in companies located in the targeted region, which supply intermediary products to industries directly related to the Museum’s activities. A range was indicated for each category of indirect benefit, with the aim of reflecting the sensitivity of the benefit to the multiplier factor used.

3 Totalling 847,542 in 2014, or 1,102,339, minus visitors who participated in Education and Community Programmes activities.

5A MAJOR IMPACT ON THE ECONOMY AND TOURISM IN MONTREAL AND QUEBECThe Museum generates direct benefits of more than $40 M and total benefits of about $100 M annually

SOURCE: MMFA; clientele study by Callosum, August 21 to September 5, and October 20 to November 30, 2014

The MMFA’s impact is comparable to that of the Palais des congrès de Montréal, the F1 Grand Prix and the 27 member festivals of the Regroupement des événements majeurs internationaux de Montréal (REMI)

Categories of benefits direct1 indirect

Visitors3

Museum

- $18-20 MSalaries

$15 M $7-8 MQuebec suppliers

$10-11 M $9-11 MLocals

$16-18 M $19-21 MTourists

$41-44 M $53-60 MSubtotal

Grand total $94-104 M

The Montreal Museum of Fine Arts | 13

The MMFA has reduced its costs per visitor by close to 50% since 1994

2014

198

1994

232

+ 2.5% / yr.

2014

34,463

1994

21,189

+ 5.9% / yr.

2014

1,102

1994

347

Expenses$ thousands

Visitorsthousands

31

61

- 49%

20141994

15

46

- 67 %

20141994

Cost per visitor$

Grants per visitor$

2014

146.3100.0

1994

EmployeesETC

Inflation%

4EFFICIENTLY MANAGED

6

The MMFA has limited the increase in its expenses to 0.6% above inflation over the past 20 years, despite annual growth of 5.9% in the number of visitors

Costs per visitor thereby decreased from $61 to $31 ( - 49%) whereas grants received per visitor decreased from $46 to $15 (- 67%)

+ 1.9% / yr.

- 0.8% / yr.

SOURCE: MMFA

The Montreal Museum of Fine Arts | 14

MuseumVisitorsthousands

EmployeesETC

Budget$ millions

Grants% revenues

Grants per visitor $

Cost per visitor$

The Montreal Museum of Fine Arts

Royal Ontario Museum, Toronto (ROM)

Art Gallery of Ontario, Toronto (AGO)

Musée national des beaux-arts du Québec

National Gallery of Canada

Average

The MMFA’s operational efficiency is higher than that of its Canadian counterparts

SOURCE: Association of Art Museum Directors (AAMD), 2014 survey; financial statements of the Art Gallery of Ontario, March 31, 2014

6EFFICIENTLY MANAGED

67

219

44

26

30

15

60,3

86,6

78,0

38,4

51,2

47,2

91

249

55

68

54

31

43

54

15

58

54

35

268

241

126

466

304

205

216

673

263

862

923

1,102

Note: The above data was provided by each museum for the annual survey by the Association of Art Museum Directors.

The MMFA’s operating budget ($34.7 M) is significantly lower than those of the Royal Ontario Museum ($53.7 M) or the Art Gallery of Ontario ($58.5 M)

The MMFA’s cost per visitor ($31) is half that of other Canadian art museums (between $54 and $68)

The proportion of the MMFA’s revenues from grants (47%) is lower than for other museums, with the exception of the Art Gallery of Ontario (38%); however, using the same accounting categories as the AGO in the financial statements for museum operations, the MMFA’s revenues from grants decrease to 24%

The number of employees at the MMFA (205) is significantly lower than at the ROM (304) and the AGO (466)

The Montreal Museum of Fine Arts | 15

… and it operates with a fraction of the budget and resources of comparable American museums

SOURCE: Association of Art Museum Directors (AAMD), 2014 survey

6EFFICIENTLY MANAGED

MuseumVisitorsin thousands

EmployeesETC

BudgetMillions $

Cost per visitor$

The Metropolitan Museum of ArtNational Gallery of ArtMuseum of Modern ArtJ. Paul Getty MuseumFine Arts Museums of San FranciscoArt Institute of ChicagoMuseum of Fine Arts BostonThe Montreal Museum of Fine ArtsSolomon R. Guggenheim MuseumVirginia Museum of Fine ArtsAverage

The MMFA’s budget ($34.7 M) is significantly lower than that of most American art museums that receive more than a million visitors per year; this difference is due in large part to revenues from endowment funds for American museums.

The MMFA’s cost per visitor ($31) and number of employees (205) are lower than those for most American art museums that have more than one million visitors per year.

3766

39

112

102111

57

177164

332

629342341

205656

529371

205761807

2,076

2,2821,0881,0901,1021,2111 5391,5461,662

3,0264,347

6,209

2858

8356

2559

3355

47

36

Note: The above data was provided by each museum for the annual survey of the Association of Art Museum Directors

35 31

The Montreal Museum of Fine Arts | 16

EFFICIENTLY MANAGED

SOURCE: MMFA

-0.20

2010-2011

0.88

2009-2010

1.11

2008-2009

1.12

2007-2008

2.78

2006-2007

2.12

2005-2006

1.440.87

- 61%

2014-20152013-2014

-0.30

2012-2013

-0.84

2011-20122004-2005

2.24

$ millions

The net cost of exhibitions decreased by more than 60% over 10 years, due primarily to revenues from touring exhibitions

Net cost of exhibitions

Outstanding exhibitions presented in Montreal and subsequently exported (in red)

2004▪ Ruhlmann: Genius of Art

Deco▪ Jean Cocteau, Enfant

terrible▪ Tanagra, a Small World

in Clay ▪ Albrecht Dürer, Master

Printmaker of the German Renaissance

2010▪ Tiffany Glass:

A Passion for Colour▪ “We Want Miles”: Miles

Davis vs. Jazz ▪ Rouge Cabaret: The

Terrifying and Beautiful World of Otto Dix

2005▪ Right under the Sun:

Landscape in Provence from Classicism to Modernism

▪ Eternal Egypt: Masterworks of Ancient Art from the British Museum

▪ Edwin Holgate

2011▪ The Warrior Emperor

and China's Terra Cotta Army

▪ Big Bang: Creativity Is Given Carte Blanche

▪ The Fashion World of Jean Paul Gaultier: From the Sidewalk to the Catwalk

2006▪ Il modo italiano: Italian

Design and the Avant-garde in the 20th Century

▪ Catherine the Great:Art for Empire

▪ Girodet, Romantic Rebel

2012▪ Lyonel Feininger: From

the Bauhaus to Manhattan

▪ Beyond Pop Art: Tom Wesselmann

▪ Once Upon a Time ... Impressionism: Great French Paintings from the Clark

2007▪ Maurice Denis.

Earthly Paradise ▪ Emily Carr: New

Perspectives on a Canadian Icon

▪ Once Upon a Time ... Walt Disney

2013▪ Peru: Kingdoms of

the Sun and the Moon

▪ Chihuly▪ Splendore a

Venezia.Art and Music from the Renaissance to the Baroque in Venice

2008▪ ¡Cuba! Art and

History from 1868 to Today

▪ Yves Saint Laurent▪ Warhol Live: Music

and Dance in Andy Warhol’s Work

2014▪ Peter Doig: No

Foreign Lands▪ 1 + 1 = 1

When Collections Collide: The MAC at the MMFA

▪ Fabulous Fabergé▪ From Van Gogh to

Kandinsky

2009▪ J.W. Waterhouse: Garden

of Enchantment▪ Van Dongen: Painting the

Town Fauve ▪ Imagine: the Peace Ballad

of John and Yoko▪ Expanding Horizons:

Painting and Photography of American and Canadian Landscape, 1860 to 1918

2015▪ Marvels and Mirages of

Orientalism: From Spain to Morocco, Benjamin-Constant in His Time Metamorphosis: In Rodin's Studio

▪ 1920s Modernism in Montreal: The Beaver Hall Group

6

The Montreal Museum of Fine Arts | 17

Art Gallery of Ontario

2008

Construction costs for the MMFA’s two latest pavilions are signficantlylower than for other Canadian museums

6EFFICIENTLY MANAGED

The MMFA is the only institution to assume the operating costs of its new pavilions.

Museum YearCost $/sq. ft.

1 Projected construction costs

1,670

3,500

577

5001

Royal Ontario Museum2007

MMFA – Bourgie Pavilion

2011

MMFA – Pavilion for Peace

2016

SOURCE: Annual reports and/or news releases of the AGO and ROM; MMFA

The Montreal Museum of Fine Arts | 18

Executive summary

The Montreal Museum of Fine Arts conducted an analysis of its current situation and its economic and tourism impact

The Montreal Museum of Fine Arts…1. Is bold, innovative and caring2. Is world-class3. Is involved in the community4. Is experiencing exceptional growth5. Has a major impact on the economy and tourism in Montreal and Quebec6. Is efficiently management

Still, despite a significant increase in private funding over the past twenty years, numerous cuts to government grants have resulted in a shortfall that is preventing the MMFA from consolidating its achievements, realizing its vision and reaching its full potential.

The Montreal Museum of Fine Arts | 19

The MMFA’s exceptional growth has had to be self-funded since government grants are not indexed

+ 6.6% / yr.

2014

$18.4 M

1994

$5.2 M

- 01% / yr.

2014

$15.8 M

1994

$16.0M

1 Main sources of self-funding: ticket sales, sponsorships, memberships, boutique, exports2 Average inflation of 1.9%, 1994 to 2014

MMFA revenues$ millions

100% =

2014

$34.2 M

46%

54%

2004

$23.7 M

59%

41%

1994

$21.2M

76%

24%

Between 1994 and 2014

Government funding declined from 76% to 46% of the MMFA’s revenues, compared to the Canadian average of 60%

Non-indexation2 of government funding represents a $7.5 million shortfall

GrantsSelf-generated1

SOURCE: MMFA

The Montreal Museum of Fine Arts | 20

Numerous cuts to government funding have resulted in a shortfall that is preventing the MMFA from consolidating its achievements, realizing its vision and reaching its full potential.

14.4Self-generated revenues

33.4

15.2

34.2

14.6

18.4

29.5

15.0Quebec grants1

32.5

15.2

28.3

12.6

28.5

11.9

15.2

14.1 18.6

Other grants14.1

0.6 1.1 2.9 0.8 0.7 0.7

Revenues

Surplus/deficit

Expenses

-0.3 -0.3-0.6-0.1

00.1Surplus/deficit

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

SOURCE: MMFA

Millions $

1 Ministère de la culture et des communications du Québec

Total expenses

33.734.530.132.6

28.228.4

CONFIDENTIAL AND EXCLUSIVE

This material may not be used without prior formal authorization from the Montreal Museum of Fine Arts

ANALYSIS OF CURRENT SITUATION

APPENDIX

The Montreal Museum of Fine Arts | 22

History of the MMFA: 1860-2015 … 155 years of history

19701910 201619501860 1990 2010

6. Exceptional growth (2010 to 2015)

2011: Opening of fourth pavilion (Claire and Marc Bourgie) and Bourgie Concert Hall; major reinstallation of 4,000 works in the Museum’s four pavilions

2012: Creation of Studios Arts & Education Michel de La Chenelière, doubling the facilities for educational activities

2015: Celebration of a record year with more than 1 million visitors, for a second consecutive year, 98,000 members and 300,000 participants in educational, cultural and community activities

5. Opening up to the world and multidisciplinary approach (1990-2010)

1991: Opening of third pavilion (current Jean-Noël Desmarais Pavilion)

1994: Creation of the MMFA Foundation to raise private funds and ensure long-term funding through capitalized donations

1997: Installation of the Montreal Museum of Decorative Arts (founded by Liliane and David M. Stewart in 1979) in residence at the Museum; merger with the MMFA in 2000

2008: Arte Musica Foundation takes up residence at the Museum

7. An engaged and humanist museum (2016-2020)

• The Pavilion for Peace, the Museum’s fifth building, will house 700 works of international art, from Old Masters to the modern day, including the Hornstein donation

• Expansion of areas for family, educational and community activities; addition of art therapy programmes

• Reinstallation of 2,500 works in world cultures, decorative arts and design in the other pavilions

3. Identity (1950-1970)

1950: The Art Association adopts the name “The Montreal Museum of Fine Arts.”

1960: Celebration of the centennial and democratization of art, including first support from benefactors in the French-speaking community

1961: Creation of the Education Department

4. Democratization (1970-1990)

1972: Change to the Museum’s status from a private institution to a mixed non-profit corporation.

1976: Opening of a second pavilion (Liliane and David M. Stewart)

Milestone in the Museum’s history, with unusual exhibitions such as Tintin (1980) and Leonardo da Vinci (1987) attracting new audiences

1. Founding (1860-1910)

1860: Establishment of the Art Association of Montreal (first museum in Canada) to “encourage the appreciation of fine arts among the people of the city”

1879: Opening of the first Gallery in Phillips Square, Montreal

2. Raison d’être (1910-1950)

1912: Relocation of the Art Gallery to a new building on Sherbrooke Street (current Michal and Renata Hornstein Pavilion)

1916: Creation of the department of decorative arts and traditional arts, establishing the Museum’s collection as encyclopedic

SOURCE: MMFA

The Montreal Museum of Fine Arts | 23

Le Montreal Museum of Fine Arts a un service de la unique

A WORLD-CLASS MUSEUM

The Museum’s works on loan throughout the world

An encyclopedic collection with more than 41,000 works – the only one of its kind in Canada

2

SOURCE: MMFA

Acquisitions

Following the 150th anniversary campaign—which generated donations with a total value of $19 M—the MMFA reached the milestone of 41,000 works in all of its collections and published a new version of its Guide to the Collections, with the addition of 200 works.

15% of the collection was acquired in the past five years, and several records were broken in regards to the value of the works, notably with the Hornstein donation

Every year, the MMFA lends many of its works around the world. In 2014, 584 works were lent to 29 museums or cultural centres.

In recent years, several hundred works were lent to museums in North America and Europe, as well as to museums in Quebec and elsewhere in Canada. These include: Grand Palais, Paris Louvre Musée d’Orsay Picasso Museum, Barcelona Los Angeles County Museum Museo Thyssen-Bornemisza, Madrid Musée Guimet, Paris Carnegie Museum of Art, Pittsburgh Dulwich Picture Gallery, London AGO, Toronto Nelson-Atkins Museum of Art, Kansas City Royal Academy of Art, London La Fundación El Greco, Toledo Tansey Collection, Celle, Germany

Conservation The MMFA has a unique conservation

department, where various specialized tasks are performed by four expert conservators who serve the needs of the permanent collection, in addition to taking charge of loans from other collections for major temporary exhibitions

The Montreal Museum of Fine Arts | 24

2 The MMFA toured 12 exhibitions over the past six years, with 25 stops around the worldOUR EXHIBITIONS ON TOUR 2009-2015

A WORLD-CLASS MUSEUM

The Montreal Museum of Fine Arts | 25

Pop ArtTom Wesselmann

Virginia Museum of Fine Arts, RichmondApril 6 to July 28, 2013

Denver Art MuseumJuly 13 to September 14, 2014

Cincinnati Art Museum October 31, 2014, to January 18, 2015

Peru: Kingdoms of the Sun and the MoonSeattle Art MuseumOctober 17, 2013, toJanuary 5, 2014

Splendore a Venezia

Portland Art MuseumFebruary 5 to June 8, 2014

SOURCE: MMFA

A WORLD-CLASS MUSEUMTemporary exhibitions developed by the MMFA raise Montreal and Quebec’s profile around the world (1/2)

Warhol Live

The Frist Center for the Visual Arts, NashvilleJune 24 to September 11, 2011

The Andy Warhol Museum, PittsburghJune 10 to September 27, 2009

Fine Arts Museums of San Francisco, de YoungFebruary 14 to May 17, 2009

2

The Montreal Museum of Fine Arts | 26

Temporary exhibitions developed by the MMFA raise Montreal and Quebec’s profile around the world (2/2)

The exhibition Jean Paul Gaultier has been presented in 11 cities and has been seen by more than1,750,000 visitors to date.

Madrid115,340 visitors

Montreal173,632 visitors

Dallas114,986 visitors

Rotterdam170,500 visitors

San Francisco279,113 visitors

Paris418,721 visitors

MunichSeptember 18, 2015, to February 14, 2016

London84,473 visitors

Stockholm78,034 visitors

New York116,000 visitors

Melbourne226,961 visitors

A WORLD-CLASS MUSEUM

SOURCE: MMFA

2

The Montreal Museum of Fine Arts | 27SOURCE: MMFA

The tour of the exhibition The Fashion World of Jean Paul Gaultier:a unique phenomenon

A WORLD-CLASS MUSEUM2

▪ With anticipated revenues from the tour, significant investments were made in the exhibition design, innovative audiovisual technologies and a publication produced at reasonable cost, as a result of a large print run.

▪ The Museum worked with many Quebec talents and suppliers and thereby contributed significantly to increasing Montreal and Quebec’s international visibility:– Théâtre Ubu, Denis Marleau and Stéphanie Jasmin– Moment Factory– Paprika, graphic design– Transcontinental Litho Acme– Mannequins JoliCoeur International– Quebec artists for the voices and animated faces of the mannequins

▪ The Fashion World of Jean Paul Gaultier received numerous awards and honours:– Prix Ulysse – Tourisme Montréal– Grand Prix du Livre de Mode, Université de la Mode de Lyon– IDCA Awards (New York): first prize in the International Design and Communication Awards

for “Best Exhibition Strategy” and silver prize for “Best Exhibition Layout”– Award of Outstanding Achievement in the “Exhibitions” category at the 2012 national

convention of the Canadian Museums Association– Prix du Gala Phénicia presented by the Chambre de commerce gaie du Québec (CCGQ)

▪ The exhibition was named as the Museum’s contribution to Montreal UNESCO City of Design

The Montreal Museum of Fine Arts | 28

More than 2,900 school groups and 72,000 students took part in school programmes in 2014-2015

A MUSEUM INVOLVED IN THE COMMUNITY3A

72,63573,88259,587

41,61835,199

2013-2014

2012-2013

2011-2012

2010-2011

2014-2015

Description

The Museum offers a wide range of activities to schools: Adapted to students’ reality

and designed so they can form bonds with the work of art;

Based on innovative, non-traditional approaches;

Using the work of art as a starting point to discuss many subjects associated with art, including history, geography, democracy, moral education, science, etc.

Participants

Number of school groups, 2014, North American art museums

655261139

MMFA75th percentile

2,920

Median25th percentile

SOURCE: MMFA; Association of Art Museum Directors, 2014 survey – Encyclopedic museums

The Museum enables students to enter into contact with art and experience creation. They learn to structure their thinking and the way they represent the world. They develop techniques and creative acts. If art isn’t taught at school, we create visual illiterates.

Catherine AyotteArt teacherÉcole Saint-Gabriel-LalemantMontreal

PROGRAMMES SCOLAIRES ET

The Montreal Museum of Fine Arts | 29

Description Participants

More than 50,000 people took part in the various programmesfor families in 2014-2015

3B

Family Weekends

Day Camp and Spring Break

Projects for families from low-income nieghbourhoods

Discovery activities for works of art Hands-on creative workshops every weekend

Summer Day Camp for children aged 5 to 12 Internship to become an educator’s assistant, provided

free of charge to teens from low-income neighbourhoods Activities for Spring Break, including workshops,

demonstrations, shows and concerts

Chartered bus one Saturday a month to facilitate access to the Museum for families in low-income neighbourhoods

A day with activities for all ages

During the summer, it’s hard to do projects with the kids: you don’t have enough time, or you don’t have the right materials.At the Museum’s Day Camp, my kids discovered art. They learned new techniques and experimented with various materials. It was fantastic! That’s why we sent all three of our children there for many years.

Stéphane BoivinFather of Alexandre, Rose and William, who attended the Museum’s Day Camp for eight years, either together or on their own

SOURCE: MMFA

50 606

32 80420 524

7 7525 562

2013-2014

2012-2013

2011-2012

2010-2011

2014-2015

A MUSEUM INVOLVED IN THE COMMUNITY

The Montreal Museum of Fine Arts | 30

Description Participants

More than 20,000 people participated in various community programmes in 2014-2015

3C

Art therapy

More than 150,000 visitors to date

Participants from various groups: immigrants, refugees, people with mental health challenges, low-income seniors, the disabled and students in literacy classes, etc.

More than 400 partner organizations

Sharing the Museum

Research projects on the role of art in healing and partnership with the Douglas University Mental Health Institute, Sainte-Justine Hospital and Montreal Heart Institute

Involvement of professionals and instructors associated with the master’s degree in art therapy at Concordia University

Coming soon, a world premiere: the first museum to dedicate space to art therapy will host innovative programmes in “art and health,” as well as serving for research and teaching (e.g.: master’s in art therapy)

Some people experienced major crises during the project. This type of experience enabled them to survive while coping with great difficulties. The Museum, for me, truly does play a social role. Providing this type of place to people did them a world of good. It was rewarding.

Yvon Lamy, art therapist with Le Cap,an organization that helps people with mental health issues

SOURCE: MMFA

20,60621,77817,018

6,3117,950

2011-2012

2012-2013

2013-2014

2014-2015

2010-2011

A MUSEUM INVOLVED IN THE COMMUNITY

▪ The Sharing the Museum programme is based on three key principles: open-mindedness, an attentive ear and action!

The Montreal Museum of Fine Arts | 31

Partnerships with more than 400 organizations, fundamental research projects and community programmes

EXAMPLES OF PARTNERSHIPS

SOURCE: MMFA

3CA MUSEUM INVOLVED IN THE COMMUNITY

Research project on the effects of a Museum activity on patients with heart problems▪ Launched in fall 2014, it spans a six-month period and will assess whether a Museum visit helps people better control

the anxiety related to heart problems. ▪ The project is being carried out in collaboration with Museum educators and professionals from the Montreal Heart

Institute.

Research project with the Douglas Mental Health University Institute and Concordia University, through its master’s programme in art therapy aimed at validating the link between art and the treatment of anorexia nervosa▪ A Museum visit enriches the treatment protocol of the Douglas, which is already recognized as one of the most

innovative and effective mental health institutions in the world. ▪ Launched in early 2013, the project has already demonstrated positive effects on participants. The results will be

published in scientific journals.

Visits and workshops with Alzheimer’s patients and their caregivers for the past five years▪ Activities to explore works in association with familiar topics such as the home or work▪ Workshops led by the Museum’s educators and an art therapist▪ Inspired by a similar programme at MoMa in New York

Foundation that fights bullying at school, partnering with the Museum since 2012▪ Creation of a poster featuring a work from the Museum’s collection sent to all schools across Quebec free of charge to

raise awareness of this issue▪ Organization of a school visit entitled The Art of Being Human, focussing on various topics associated with social

interactions, including conflict, harmony, bullying and co-operation

A series of events and activities presented in May 2015 as part of the International Day Against Homophobia and Transphobia, in collaboration with Fondation Émergence and Mouvement Desjardins▪ Presentation of the educational exhibition Allies in the Spotlight at the Museum, along with the exhibition Imaginary

Couples, at Complexe Desjardins, featuring figures from works in the Museum’s collection in the imaginary or real context of same-sex couples

The project included 16 people aged 14 to 25, mostly patients at Sainte-Justine and other mental health centres in Montreal whose symptoms have been stabilized. The group also included some non-patients. The patients’ identities was not known to any participant or member of the Museum team. This diversity gave the young people an opportunity to get to know each other, work together and, perhaps, change the non-patients’ perceptions and attitudes toward mental health problems.

The Montreal Museum of Fine Arts | 32

A unique combination Participants

A rich programme of cultural activities drew 114,000 visitors in 2014-2015

3D

A vast programme of cultural activities to enrich the visitor experience

Lectures

Courses and workshops

Concerts

Films

Just a note to tell you how enthusiastic we were about our tour of the exhibition Peru: Kingdoms of the Sun and the Moon!

Kudos to our guide, who gave the tour in Spanish! We appreciated her scholarly approach and her efforts to use non-technical language to convey her passion and knowledge. Truly an unforgettable visit!

Réjean GagnonSaint-Hubert

SOURCE: MMFA

2011-2012

101,417

2014-2015

114,050

2013-2014

112,764

2012-2013

84,615

45,231

2010-2011

Guided tours

Lectures on a variety of subjects related to the Museum’s encyclopedic collection and exhibitions, presented by well-known local and international experts and researchers

Art courses and workshops given by professional artists, upholding the tradition of teaching at the Museum

Nearly 200 concerts every year, presented by the Arte Musica Foundation in the magnificent setting of Bourgie Hall

Concerts exploring repertoire ranging from ancient and classical music to jazz and world music

A selection of rare films and documentaries Programme developed in collaboration with the Festival of Films on Art

(FIFA), also in residence at the Museum Films and documentaries for all audiences: adults, school groups,

families

Tours of the exhibitions and collection led by a team of dedicated guides comprising more than 160 people

A MUSEUM INVOLVED IN THE COMMUNITY

The Montreal Museum of Fine Arts | 33

The MMFA has experienced major growth in the number of VIP members (+ 157%) and revenues from memberships (+ 195%)since 2010

A MUSEUM THAT IS EXPERIENCING EXCEPTIONAL GROWTH

SOURCE: Visitors: MMFA, fiscal 2014-2015 (April 1 – March 31)Members: MMFA, at March 31, 2015

d

11

37

66

2010 12

4861

13 2015

88 95

+ 157%

14

2.5

2015

3.1

14

+195%1.2

2010

1.0

13

2,01.6

11 12

Number of membersThousands, at March 31

Revenues from memberships$M, at March 31

▪ The number of members has grown by 157% since 2010, to 95,062 at March 31, 2015

▪ Revenues from memberships increased by 195%, from $1M in 2010 to $3M in 2015

4

The Montreal Museum of Fine Arts | 34

tripadvisor page for the MMFA

A MAJOR IMPACT ON THE ECONOMY AND TOURISM IN MONTREAL AND QUEBECThe MMFA is regularly cited as one of the city’s main tourist attractions in social media

Mediocre

Horrible 5

8

Average 83

Very good 389

Excellent 784

Visitor comments

“Even if you go regularly, there’s always something new and surprising in the permanent collections, in addition to fascinating special events.”

“A great place to spend the day. There are so many different galleries to explore. The special exhibitions are worth the extra cost.”

“One of the best. The Montreal Museum of Fine Arts has a very good art collection, ranging from sculptures to historical paintings. It also presents spectacular temporary exhibitions from time to time.”

Visitor ratings: 92%

2014 Travelers’ ChoiceTM AwardsPublished in 3 Days in Montreal

1,269 ratings

5

SOURCE: tripadvisor; Google; Yelp; Lonely Planet