Financial Executives Canada 2013 Annual Report

Leadership beyond

finance

FEI Canada 2013 annual REpoRtFEI Canada 2013 annual REpoRtFInanCIal ExECutIvEs Canada 2013 annual REpoRt

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More about Financial Executives Canada

the benefits of being a member

QuICk ClICk lInks:

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tablE oF ContEnts

Message from the CEO & the Chair of the Board of Directors

Leaders

Events

Insights

Policy Forum

Research

Financial performance review

Summary of financial statements

National Strategic Partners

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tablE oF ContEntstablE oF ContEnts

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MEssagE FRoM thE CEo and thE ChaIR oF thE boaRd oF dIRECtoRsOur world is much more complex and competitive, so the demands on senior financial executives are also greater than ever. These increased demands have expanded the role of CFOs, to the point where they are now expected to go well “beyond the numbers” and assume a much broader spectrum of responsibilities within their organization. CFOs are now called upon to be strategic leaders within their companies, and ultimately within the larger Canadian business community.

For a while now, we at FEI Canada have been thinking about how this trend impacts how we should serve you, today’s financial executives. We did some serious soul-searching about what we are and what we should evolve into.

Our research found that you believe the value of FEI Canada is to help members grow as financial executives and leaders in their organizations. This helps them and their businesses work more effectively. FEI Canada offers its members a number of benefits, and you told us that the two you value the most are peer networking and professional development. You indicated that our members are known for being credible, insightful and supportive leaders. Our new brand position recognizes your need for development that will allow you to grow, and to become a respected voice in the leadership of your organizations.

Our mission is clear: FEI Canada brings together senior financial executives to enhance their leadership skills and broad management knowledge through specialized experiences.

One of the most valuable benefits you have as FEI Canada members is the ability to share experiences with each other. If you are dealing with a complex or difficult issue, one of your fellow members has likely dealt with it before and he or she will be pleased to offer you helpful thoughts.

Today’s financial executives need to be ahead of the curve, ready to offer creative solutions to very complex business issues. That’s why we decided to adopt a new tagline – “leadership beyond finance” – to personify the essence of our brand, and its promise to you, our members.

We also decided to simplify our name from FEI Canada to clarify exactly who we are. We will become known as Financial Executives Canada, and soon unveil a new website at www.financialexecutives.ca.

Our new visual identity is an evolution of our old logo, but it’s bolder, revitalized and exclusively Canadian. We are, of course, still proud to be affiliated with our US counterparts Financial Executives International.

Against the backdrop of the forces of change we referred to earlier, the role of the CFO is changing and Financial Executives Canada is here to help you meet these challenges. Our events, including some innovative programs that we will be introducing in the near future, are designed with your professional development in mind. Over the next year, we intend to offer you some inspiration to help you with your own creative thinking – and to help you on your personal journey to achieve “leadership beyond finance”.

MEssagE FRoM thE CEo and thE ChaIR oF thE boaRd oF dIRECtoRs

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

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MEssagE FRoM thE CEo and thE ChaIR oF thE boaRd oF dIRECtoRs

Financial Executives Canada branding announcement, June 7, 2013

Michael Conway, FCPA, FCA, ICD.D President and Chief Executive Officer

Lisa Dorian, CA.CIA, CPA(IL), CRMAChair, 2012-2013 Board of Directors

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FEI Canada 2013 annual REpoRtFEI Canada 2013 annual REpoRtFInanCIal ExECutIvEs Canada 2013 annual REpoRt

FInanCIal ExECutIvEs Canada lEadERsleadership beyond finance

Financial Executives Canada’s leadership is the driving force of the organization. Our Board of Directors is made up of dedicated volunteers from across Canada. Our Chapter Leadership Council and Membership Committee are made up of volunteers from Financial Executives Canada’s 11 chapters.

Financial Executives Canada’s 11 chapters each have a set of amazing volunteers that provide our members with local support, professional development and thought leadership. Thank you to all of our volunteers!

A = Audit and Finance Committee, G = Governance Committee

Chair: Lisa Dorian, Calgary (A), (G) vice Chair: Bill Ross, Edmonton (G) (A)Immediate past Chair: Ray Hawrelak, Edmonton (G) Chair, Chapter leadership Council: Bob Rollwagen, SGH (A)Chair, audit & Finance Committee: Debbie Stein, Calgary (A)Chair, CFERF: Vic Wells, Southern Golden HorseshoeChair, Committee on Corporate Reporting: Gordon Heard, SGHChair, policy Forum: Tim Zahavich, SGH

Chair, 2013 Conference Committee: Jim Fergusson, CalgaryChair of sponsorship Committee: Brian McAskill, TorontoChair, Membership Committee: Danley Yip, Vancouverdirector: Bev Davies, Winnipeg (A)director: Mark Walsh, Toronto (A)director: Susan Deakin, SWOdirector: David Anderson, Quebec president and CEo: Michael Conway, Toronto (G)secretary & CFo: Line Trudeau, SGH (G)

about volunteering

QuICk ClICk lInks:

volunteer testimonials

2012-2013 board of directors

Financial Executives Canada national staff

director of Events: Rita PlaskettCommunications & Events Coordinator: Megan Belldirector of sponsorship: Don Comishoffice administrator: Pat Todd

president & Chief Executive officer: Michael ConwayChief Financial officer: Line Trudeauvp, Research & Communications: Christian Bellavancevp, programs: Steve BowerResearch & Communications Manager: Laura BobakManager, Membership: Valerie BeckMembership & Chapter Coordinator: Sharon Bradshaw

FInanCIal ExECutIvEs Canada lEadERs

Bev Davies, Winnipeg

Susan Deakin, SWO

Jim Fergusson, Calgary

Danley Yip, VancouverBill Ross, Edmonton

Lisa Dorian, Calgary

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lEadERs

Chair, 2013 Conference Committee: Jim Fergusson, CalgaryChair of sponsorship Committee: Brian McAskill, TorontoChair, Membership Committee: Danley Yip, Vancouverdirector: Bev Davies, Winnipeg (A)director: Mark Walsh, Toronto (A)director: Susan Deakin, SWOdirector: David Anderson, Quebec president and CEo: Michael Conway, Toronto (G)secretary & CFo: Line Trudeau, SGH (G)

Chair: Bob Rollwagen, SGHChapter representatives: Nicole Archibald, SWOTyrone Cotie, Atlantic ProvincesJohn Cole, WinnipegElysia Estee, SGHCarl Gauvreau, QuebecLeah Halpenny, TorontoCynthia Hansen, EdmontonBetty Hoffart, ReginaAnanth Koovappady, SGHGail Kruger, ReginaSylvie Lafontaine, NCR

Louis Marcotte, QuebecGrant McNeil, CalgaryIssa Nakhleh, VancouverBeverley Szaura, WinnipegBeverly Ward, SWORussell Wong, TorontoAngela Yap, Vancouver

national:Michael Conway, TorontoLisa Dorian, CalgaryBill Ross, EdmontonLine Trudeau, SGH

Chair: Danley Yip, VancouverChapter representatives: Geoffrey Baldwin, Atlantic ProvincesGerhard Barnard, CalgaryJordan Beallor, TorontoJean Paul Beaulieu, Quebec Susan Berggren, Edmonton John Cole, Winnipeg Robert Hibberd, Vancouver James Knowles, SWO

Gail Kruger, Regina Tammy LeBlanc, SGHMarie-Josee Marsan, Quebec Russell Wong, Toronto

national:Sharon BradshawMichael Conway, TorontoPat ToddLine Trudeau, SGH

2012-2013 Chapter leadership Council 2012-2013 Membership Committee

FEI Canada 2012-2013 leadership meeting

Leah Halpenny, Toronto

Tyrone Cotie, Atlantic Provinces

Danley Yip, Vancouver

Bill Ross, EdmontonLisa Dorian, Calgary

Nicole Archibald, SWO

FEI Canada 2012 annual REpoRt

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FInanCIal ExECutIvEs Canada 2013 annual REpoRt

atlantic provinces Chapter

president: Tyrone CotieGeoffrey BaldwinAnne-Marie GammonRaymond McCormickDavid PangmanMaureen SullivanCarl Vincent

Quebec Chapterpresident: Carl GauvreauCatherine AllardDavid AndersonDenis AsselinJean Paul BeaulieuRoss CorcoranMichel GagnonMarc GodinBertrand LauzonAlix MandronLouis MarcotteMarie-Josee MarsanDenis PellerinPierre RichardClaude SamsonPaul StinisRobert St-JeanVicky Tumiotto

toronto Chapter

president: Leah HalpennyJordan BeallorKay BrekkenJonathan BrindleyFred BurkeAlysia CarterGeorge ChiarucciNancy LalaSharlene LockeLeslie MarkowJune McAlareyBrian McAskillDavid MinasSteve RosenCliff TruaxRussell Wong

Regina Chapter

president: Betty HoffartRobert EisnerBrian FergussonGail KrugerGary MaystruckMarty MelocheEd MeredithLaurie PowersJohn RossChristine ShortJeff Stepan

southern golden horseshoe Chapter

president: Elysia Estee Dan BowesNorman ColThomas EvansAzam FodaAnanth KoovappadyTammy LeBlancFlorian MeyerBob RollwagenLine Trudeau

southwestern ontario Chapter

president: Nicole ArchibaldDawn ButlerDavid CornerSusan DeakinJames KnowlesGitta KulczyckiLynn LoganLloyd MonteithBeverly Ward

Calgary Chapter

president: Grant McNeilGerhard BarnardBrian CallaghanVic FitchNola HealeAllan JohnsonEvelyn LawlessKevin McBethStephen RueTerene TharaganBrad ThompsonWayne BraunWalter Wakula

2012-2013 ChaptER boaRds Click on the chapter name to learn more 2012-2013 ChaptER boaRds

Edmonton Chapter

president: Cynthia HansenSusan BerggrenDarren BumaMona HaleRon HelmholdEric Klein Daniel LefaivreDon SagerBill Ross

vancouver Chapter

president: Issa NakhlehDavid AndruBrad BarduaSuzanne BedfordRoger BissoondattFabiana ChubbsDavid CrawfordDibba DebhamEduard EpshteinRobert HibberdJad JebaraDoug KingHugh LindsayJeff ShickeleAlan WongDanley Yip

Winnipeg Chapter

president: Beverley SzauraAllan BeaudryLynne BlackKeith BoydJohn ColeBev DaviesDwayne HenleyJeannie LeeLarry Nentwig

national Capital Region Chapter

president: Sylvie LafontaineDean CosmanKen KemberPer MokkelbostLouis O’BrienGrant SmithJohn WeerdenburgRudy Wyenburg

Kay Brekken

Bev Davies

Susan Deakin

Leah Halpenny

Danley Yip

Nicole Archibald

Tyrone Cotie

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EvEnts

EvEntsEvery year Financial Executives Canada offers timely, executive level programming to our members. Rather than discuss what we did in the last year, we thought that our events could speak for themselves. Our Vimeo channel houses the latest and greatest event footage, as well as a selection of member testimonials. Click the images below to see event video footage and experience what Financial Executives Canada has to offer.

GROWTH STRATEGY: PERSPECTIVES FROM FINANCIAL EXECUTIVESFEI Canada

National Breakfast Seminar SeriesNovember 6, 2012

Sponsored by:

Working capital optimizationFEI Canada

National Breakfast Seminar SeriesFebruary 20, 2012

Sponsored by:

natIonal bREakFast sEMInaR and WEbInaR vIdEos

growth strategy

Employee productivity

Working Capital optimization

Foreign Exchange Risk Management

EvEnts

Vimeo

view the 2013 conference agenda

Read our special newsletter celebrating the conference

ConFEREnCE kEynotE spEakER vIdEos – JunE 5-7, 2013

turning points in leadershipElyse allan, President & CEO, GE Canada

activist investing: aaron atkinson, Partner, Fasken Martineau DuMoulin LLPsteve dyer, EVP & CFO, Agrium Inc.howard Johnson, Managing Director, Veracap M&A Internationalkathryn McQuade, Former CFO, CP RailMichael nobrega, President & CEO, OMERS

CFo succession planning:Judy Munro, President, Canada, RHI Executive Searchdavid anderson, EVP & CFO, CGI Group louis Marcotte, SVP Strategic Sourcing, Intact Financial Corporationdavid Mclaren, VP, Finance, Redpath Sugarlaurie tugman, Executive Chairman, Nexterra Systems Corporation

the many hats of the CFo in global M&a: a CEo’s viewMike Roach, CEO, CGI Groupdavid anderson, EVP & CFO, CGI Group

It’s a marathon, not a sprint:Colleen Johnston, Group Head of Finance & CFO, TD Bank Groupbruce Waterman, Former Executive VP, Agrium Inc.Michael Conway, President and CEO, Financial Executives Canada

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

Lake Louise 2013Reaching for new heights

Canada’s place in a challenging world:Jack Mintz, Palmer Chair in Public Policy, University of Calgary

ConFEREnCE kEynotE spEakER vIdEos – JunE 5-7, 2013

EvEnts

2012-2013 conference committee

Chair: Jim Fergusson, CalgaryChapter representatives:Gerhard Barnard, CalgaryWayne Braun, CalgaryBev Davies, WinnipegVic Fitch, CalgaryJudith Munro, TorontoBob Rollwagen, SGHTim Spielman, CalgaryMaureen Sullivan, Atlantic ProvincesTerene Tharagan, CalgaryCliff Truax, Toronto

national:Megan BellChristian BellavanceSharon BradshawDon ComishMichael Conway, TorontoRita Plaskett

Watch the highlight video from our lake louise conference, June 2013.

Bev Davies, Winnipeg

Jim Fergusson, Calgary

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view the CFoy website

Read our newsletter celebrating brian lawson, our 2013 winner

2013 winner, brian lawson, CFo of brookfield asset Management.

learn more about the Capon award

Read our newsletter celebrating thomas Evans, our 2013 winner

FRANK S. CAPON AWARDFOR DISTINGUISHED SERVICE AT FINANCIAL EXECUTIVES CANADA

thomas Evans, 2013 Capon award winner.

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FInanCIal ExECutIvEs Canada 2013 annual REpoRt

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InsIghts – polICy FoRuM

polICy FoRuMFinancial Executives Canada’s seven thought leadership committees develop public positions, provide guidance and expert opinion on emerging issues relevant to our members, and act as advisors on issues of current importance to industry groups, government, associations, and other constituents who will benefit from the impartial council of the Committee.

The committees include members from across Canada, and from a variety of industry groups. Recommendations from the committees often guide CFERF’s research.

Comment letter submissions

learn more about our policy Forum

taxation Committee

pension Committee

governance and Risk Committee

treasury and Capital Markets Committee

Information technology Committee

policy Forum Chair: Tim Zahavich, SGH

Chair: Marc Diamant, Toronto

Robert Angel, TorontoWayne Braun, CalgaryNigel Byars, TorontoWarren Cabral, EdmontonBev Davies, WinnipegVictoria Davies, TorontoMarc Diamant, TorontoAsher Drory, TorontoTom Evans, SGHJohn Glicksman, TorontoHubert Huang, TorontoNatalia Kochetova-Kozloski, Atlantic ProvincesHugh Lindsay, VancouverCraig Pattinson, TorontoVic Wells, SGHLisa Zingaro, Toronto

Chair: Tyrone Cotie, Atlantic Provinces

Andrew Antoniadis, QuebecMichael Boychuk, QuebecRoss Campbell, TorontoMark Donaghy, TorontoWilliam Hewitt, TorontoRay McCormick, Atlantic ProvincesStan Pasternak, TorontoBill Ross, EdmontonChristian Settano, QuebecPaul Stinis, Quebec

Chair: Peter Effer, Toronto

Rod Butcher, RyanTom Evans, SGHJim Fergusson, CalgaryBarry Gorman, Atlantic ProvincesWilliam Hewitt, TorontoTim McGillicuddy, EdmontonKen Parker, CalgaryGrant Smith, NCRTim Zahavich, SGH

Chair: Norm Ferguson, Edmonton

Nigel Branker, Morneau Shepell Nigel Byars, TorontoPeter Donovan, TorontoWilliam Hewitt, TorontoTony Hooper, TorontoKevin Sorhaitz, TorontoGerry Wahl, Vancouver

Chair: Timothy Spielman, Calgary

Anne Burpee, TorontoChris Evans, Atlantic ProvincesJim Fergusson, CalgaryCarl Gauvreau, QuebecKen Kember, NCRNaresh Khosla, TorontoJudith Purves, TorontoBill Ross, EdmontonDebbie Stein, CalgaryLisa Zingaro, Toronto

polICy FoRuM

Bev Davies, Winnipeg

Jim Fergusson, Calgary

Jim Fergusson, Calgary

Tyrone Cotie, Atlantic Provinces

Peter Effer, Toronto

/12(*): Financial Executives Canada is pleased to be represented by Karyn Brooks on the IFRS Advisory Council of the International Accounting Standards Board and by Brian Fiedler on the Accounting Standards Oversight Council.

Committee on Corporate Reportingprivate Company Committee

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

Chair: Gordon Heard, SGHvice Chair: Carolyn Graham, EdmontonJoanne Boyes, ReginaKaryn Brooks, Quebec*Surendra Bungaroo, TorontoAngela Butler, CalgaryScott Calver, CalgarySusan Campbell, TorontoJeff Curran, CalgaryMarc-Antoine Daoust, QuebecBrian Fiedler, Toronto*Murray Harris, CalgaryNancy Lala, TorontoMelanie Litoski, CalgaryCarol Lyons, Toronto

Glenn Menuz, CalgaryNathan Reeve, CalgaryNeil Robertson, CalgaryRinna Sak, Grant ThorntonJason Schultz, CalgaryMark Swalwell, TorontoWinson Tang, CalgaryMark Walsh, TorontoJohn Weerdenburg, NCRVic Wells, SGHCheryl Yaremko, Vancouver

national representatives:Christian BellavanceMichael Conway, TorontoMelissa Gibson

Chairs: Tim Zahavich, SGH

David Balmer, TorontoAnne Burpee, TorontoLarry Cooper, TorontoJohn Harris, Grant ThorntonSonjia Johansen, ReginaKurt Kroesen, Toronto Steve Meston, CIBCFlorian Meyer, SGHRohit Milhoutra, TorontoSunil Mistry, KPMGAjay Rao, TorontoDana Thiessen, Winnipeg

Michael Conway and CCR vice Chair and Chair Carolyn graham and gordon heard present an honorary Financial Executives Canada membership to gord Fowler upon his retirement as Chair of the accounting standards board.

Carolyn Graham, Edmonton Nathan Reeve, Calgary

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InsIghts – CanadIan FInanCIal ExECutIvEs REsEaRCh FoundatIon

thank you to ouR 2012-2013 CFERF donoRs

CFERF advisory Council2012-2013

Chair: Victor Wells, SGH (D)vice Chair: Mark Walsh, Toronto (D)vice Chair: Thomas Evans, SGH (D) David Anderson, Quebec (D)Alister Cowan, CalgaryBev Davies, Winnipeg William Hewitt, Toronto Richard Iwaniuk, Edmonton Tim Spielman, Calgary Debbie Stein, Calgary

national representatives:Christian BellavanceMichael Conway, TorontoLine Trudeau, SGH

D = CFERF Board of Directors

GOLD ($10,000 +):Bell Canada Husky Energy Inc.

SILVER ($5,000-10,000):Agrium Inc.Brookfield Partners FoundationCGI Group Inc.Imperial Oil Ltd.

BRONZE ($1,000-5,000):AltagasCanadian Western Bank GroupIntact Financial CorporationOpenText CorporationPotashCorpShikatani Lacroix Design

CoRpoRatE donoRs

ChaptER donoRsWe would like to thank all of Financial Executive Canada’s 11 chapters for their generous donations to CFERF.

pERsonal donatIonsBenefactors ($500+):Christian BellavancePhil Connell

William HewittDebbie Stein

Vic Wells

Patrons ($250-499):Michael ConwayAlister Cowan

Normand BarabéThomas Evans

Peter Scott

Supporters ($100-249): Bryan AlboPatrick BielenyKaryn BrooksEdward BrownLily ChenTyrone Cotie Norm Ferguson

Carl HartiganMary MartinMatt MatiaBill RossKeith PalmerAnn PattersonTed Reid

Greg ReiserGerry WagnerMark WalshBruce WatermanJohn WeerdenburgBruce West

Donors (up to $100):Ron BoucherGeorge BunzeNick CreaturaMarc-Antoine DaoustGil DarnleyAndrew DindayalRonald Dooley

Pierre GauvreauBarry GormanOliver HülsAllan JohnsonLia Lomtadze-DedinaLisa MacLeanMichael Makinson

Massood OroomchiDouglas ProllJeffrey ResnickDon SagerSteven SaltJeff ShickeleGrant Slater

learn more about corporate sponsorship of research

Make a personal donation to CFERF

thank you to ouR 2012-2013 CFERF donoRs

Patrick Bieleny

Bev Davies, Winnipeg

Tyrone Cotie

CFERF REsEaRChThe CFERF is Financial Executives Canada’s research institute. CFERF’s mission is to advance professional standards and practices of financial executives through research and thought leadership. Our products are topical and distributed in a format that is both timely and convenient. Members aid CFERF research by completing surveys and participating in cross country research forums.

2012-2013 CFERF REsEaRCh studIEs Check out CFERF latest research

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

the cost of IFRs transition in CanadaThe majority of respondents to an online survey on the costs of transition to International FinancialReporting Standards (IFRS) in Canada said that overall, the costs were significant but manageable, and broadly in line with those planned for and expected. 76% of all respondents said planning costs were about the same as budgeted for. Other costs ultimately turned out to be about the same or less than budgeted for in most categories, such as training, contract changes and having financial results audited. The study shows that, for about half of respondents, the costs of preparing and auditing financial statements under IFRS are about the same as under Canadian generally accepted accounting principles (GAAP).

banking on productivity: Managing employee health costs: suggests that employee health, drug and disability costs have increased significantly or are expected to rise. Yet only 15% of those surveyed said that their company has considered a funding strategy to address the impact of these future costs. Drivers such as an aging workforce, the cost related to drug and disability plans, as well as legislative changes were key issues. The survey found that employee engagement and recruitment challenges stand out as major threats, with 56% and 50% of respondents rating these respective factors as the greatest threats to productivity. Sponsored by Morneau Shepell.

succession planning for CFos study found that while 97% of financial executives say succession readiness is key to the success of the finance function, only 43% reported that their organization has a clearly defined succession plan for its CFO. The study shows that, while many organizations were likely to have experienced an increased need to search for external candidates, it was far more likely that those without succession plans had seen a greater increase in this need than those with succession plans (82% vs. 71%). This finding would indicate that having a succession plan in place may reduce the need to look externally for candidates, and certainly merits further investigation. Sponsored by Robert Half International.

Fx risk management:The vast majority (90%) of financial executives surveyed rated foreign exchange (FX) management as an important consideration in their business. However, almost half of organizations participating in the survey indicated they did not have a policy or formal process/procedure in place to manage FX risks. Managing foreign currency risk is no longer simply a case of guarding against changes between the U.S. and Canadian dollar. In fact, 42% of Canadian financial executives surveyed said that they are now doing business in fast-growing emerging markets, where currencies can be volatile or under strict government controls. Sponsored by CIBC.

CFERF REsEaRCh

InsIghts – CanadIan FInanCIal ExECutIvEs REsEaRCh FoundatIon

Working capital optimization, found 48% of companies undertook a working capital improvement program and, of those that did, 69% said they achieved a high success rate. Although businesses remain highly focused on cost reduction (80%), profitability improvement (75%) and system implementations (50%), the findings suggest that a balanced approach to managing competing priorities can generate significant returns. The survey also found companies that tended to be more proactive – by executing improvement initiatives, reviewing performance more frequently and reporting more accurate cash forecasts – were the ones that placed high importance on working capital management. Sponsored by Ernst & Young.

2012 goodwill Impairment study: Canadian Edition aimed to analyze the impact that the transition from pre-changeover GAAP to IFRS (and the associated changes in goodwill impairment testing) had on goodwill impairments recorded by Canadian companies. The study also looked at industry trends, and the timing of impairments compared with stock performance. The study shows that, in general, companies that did not recognize a goodwill impairment over the 2012 study’s 2007–2011 time horizon, outperformed those that recorded a goodwill impairment as well as the S&P/TSX Composite Index. Sponsored by Duff & Phelps.

pension Risk Management Issues for CFos, shows that almost 60% of financial executives surveyed indicated that their pension plan posed either a moderate or substantial risk to their organization. At the end of 2012, only about one in 20 Canadian DB pension plans were fully funded on a solvency basis. By far, the biggest factor in the decline is the fact that long-term interest rates have plunged to their lowest levels in 60 years. Disappointing asset returns, demographic pressures and the increasing maturity of pension plans have also played their part. Sponsored by Mercer.

growth strategy: perspectives from financial executivesThis study indicates that Canada’s financial executives are hearing these calls to action, placing growth high on their corporate agendas and rolling up their sleeves to get started. The report reveals that growth is overwhelmingly important to Canadian businesses, with 93% identifying it as a priority and nearly six in ten executives saying it is an “extremely high” priority. More than half (53%) are already executing a growth strategy, and 44% are currently working on a strategic plan for growth. Sponsored by Grant Thornton.

Cloud computing for financial executives This study examines the benefits of and barriers to the adoption of cloud computing, including budgeting and resource allocation, scalability and data security concerns. This survey revealed that one in two (47%) executives indicated that their organization is already using some form of the cloud technology. An additional 15% were planning to adopt cloud in the future. IT issues raised included concerns about hacking, a lack of in-house expertise to move projects forward and possible delays linked to the introduction of new technology. Sponsored by IBM Canada.

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RevenuesExpenses

Excess of revenues over expenses(expenses over revenues) for year

Excess, excluding pension plan expense for past employees for year

Number of membersNumber of breakfast seminars, private events & webinarsNumber of research studies completed in year & in progress at year-endNumber of National Strategic Partners at year-end

2013

$2,097,302 1,950,863

$146,439

$43,484

1,70810

10

11

2012

$2,020,709 2,179,506

$ (158,797)

$(9,138)

1,7855

9

10

FInanCIal pERFoRManCE REvIEWThe financial results of Financial Executives International Canada (FEI Canada) include the accounts of FEI Canada and the Canadian Financial Executives Research Foundation (CFERF).* FEI Canada’s activities are presented below in five categories: Membership, Events, National Strategic Partner program, CFERF, Investment Income and miscellaneous. Membership revenues include national dues and initiation fees received from our members, whereas Membership support costs are shown within various expenditure line items. The events category details results from FEI Canada’s national annual conference held last June in Lake Louise, Alberta, our National Breakfast Seminar series,

our National Executive Development Webinar series, our Private Equity Symposium, our annual SME conference and our CFO of the Year™ Award. The National Strategic Partner Program includes activities with our valued sponsors. CFERF encompasses research studies and donations from members, Chapters and corporations. Investment income represents income earned on our investment portfolio. The miscellaneous category represents mainly fees collected for advertising services rendered on our website. All of these activities are supported by our team at National office and various committees including our volunteer-driven thought leadership technical committees.

kEy pERFoRManCE dRIvERs

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

FInanCIal pERFoRManCE REvIEW

* As more fully described in the CEO message on page 2, FEI Canada announced in June 2013 that it will soon carry on business under the name Financial Executives Canada. While this annual report has been prepared using our new branding for this reason, this Financial Performance Review and our financial statements are still presented under the legal name Financial Executives International Canada (FEI Canada).

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FInanCIal pERFoRManCE REvIEW

REsults oF opERatIonsFEI Canada reported an excess of revenues over expenses of $146,439 for the year ended June 30, 2013, compared to a loss of $158,797 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, the excess of revenues over expenses would have been $43,484 compared to a loss of $9,138 last year. Most of this Pension Expense relates to the mark-to market adjustment of its investment portfolio and an increase in the discount rate used in the actuarial liability calculation.

REvEnuEsRevenues increased by $77,000 or 4% from a year ago, from $2,021,000 to $2,097,000. Event revenue increased by $86,000 stemming from higher registration revenue from our annual conference (up $56,000) and higher revenue from breakfast seminar and private events (up $57,000) offset by lower revenue from our webinars, Private Equity Symposium and SME conference (down $27,000). CFERF increased revenue by $41,000 resulting from an increase

in the number of studies and donations. Membership dues and fees decreased by $32,000 stemming from the loss of 77 members this year. Revenues from our Strategic Partner program decreased $12,000 compared to last year. Income on our investment portfolio, at $26,000, was $7,000 lower than last year. Miscellaneous income, at $6,000 was virtually unchanged from last year.

REvEnuEs

REsults oF opERatIons

Membership dues and initiation fees

37%

33%

14%

15%

Events

National StrategicPartnerprogram

CFERF Researchstudies and donations

Investment Income1%

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FInanCIal ExECutIvEs Canada 2013 annual REpoRt

ExpEnsEsExpenses, at $1,951,000, decreased $229,000 from $2,180,000 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, expenses increased $23,971 or 1%.

The improvement in the fair market value of our Pension investments and a reduction of our pension benefit obligation resulted in a $103,000 expense reduction this year compared to an increase of $150,000 last year. The reduction in our liability was positively impacted by an increase in the discount rate from 4.80% in 2012 to 5.20% in 2013, partly muted by a weaker Canadian dollar and the increase in the age of the pension plan participants. Other compensation

expenses, representing 45% of FEI Canada’s expenditures, decreased $24,000 compared to last year. CFERF’s research and fundraising programs spent $25,000 more on compensation costs this year. Administration, occupancy and other costs increased $10,000 overall. Event costs were higher by $10,000 mostly due to additional costs associated with our annual conference (up $45,000) and our breakfast seminars (up $20,000) offset by this year’s profit of $33,000 organizing the CFO of the Year™ Award event compared to a loss of $22,000 last year. Our spending on our National Strategic Partner program at $46,000 and on Profile, branding & advocacy at $14,000 were virtually unchanged from last year.

ExpEnsEs, ExCludIng pEnsIon plan

Compensation

45%

21%

17%

14%

2%

Events

Administration, occupancy and other costs

CFERF costs

Pro�le, branding & advocacy1%

National Strategic Partner program

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FInanCIal ExECutIvEs Canada suMMaRy oF FInanCIal statEMEnts

Toronto, Ontario October 4, 2013

Michael Conway, FCPA, FCA, ICD.D President & CEO

FEI Canada suMMaRy FInanCIal statEMEntsManagEMEnt’s REsponsIbIlIty FoR FInanCIal REpoRtIngManagement is responsible for the preparation of the summary financial statements of Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada (FEI Canada) and for their integrity and objectivity. These financial statements have been prepared in accordance with Canadian generally accepted accounting principles appropriate in the circumstances and have been approved by the Board of Directors.

We maintain the necessary system of internal controls to ensure the transactions are authorized, assets are safeguarded and proper records are maintained.

Our Board of Directors, upon recommendation from our Audit and Finance Committee, reviews and monitors the quality and integrity of our financial statements, ensures effectiveness of systems and disclosure and internal controls over financial reporting, and reviews and provides oversight in the management of risks.

Hilborn LLP, our independent external auditors, has been appointed by our Board of Directors on the recommendation of the Audit and Finance Committee. Their appointment was ratified at the annual meeting of members. The auditors have full and unrestricted access to the Audit and Finance Committee to discuss their audit and related findings. They have performed an independent audit of our consolidated financial statements and expressed an opinion without reservation. They have also prepared a report on our summary financial statements which is presented below.

Line Trudeau, CPA, CA, MBAChief Financial Officer

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audItoRs’ REpoRt on suMMaRy FInanCIal statEMEntsaudItoRs’ REpoRt on suMMaRy FInanCIal statEMEntsTo the Members of Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada

The accompanying summary financial statements, which comprise the summary statement of financial position as at June 30, 2013 and the summary statement of revenues and expenses for the year then ended, and related note, are derived from the audited financial statements of the Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada for the year ended June 30, 2013. We expressed an unmodified audit opinion on those financial statements in our report dated October 4, 2013.

The summary financial statements do not contain all the presentation and disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of the Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada.

MANAGEMENT’S RESPONSIBILITY FOR THE SUMMARY FINANCIAL STATEMENTSManagement is responsible for the preparation of a summary of the audited financial statements on the basis described in the note to the summary financial statements.

AUDITOR’S RESPONSIBILITYOur responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements”.

OPINIONIn our opinion, the summary financial statements derived from the audited financial statements of Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada for the year ended June 30, 2013 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.

Toronto, ONOctober 4, 2013

Chartered Professional AccountantsLicenced Public Accountants

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

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FEI Canada suMMaRy oF FInanCIal statEMEnts

audItoRs’ REpoRt on suMMaRy FInanCIal statEMEnts suMMaRy statEMEnt oF FInanCIal posItIon

Debbie Stein, CAChair, Audit & Finance Committee2012-2013

2013$

2,247,00842,558

2,289,566

1,166,898

92,000

1,258,898

440,000548,110

42,558

1,030,668

2,289,566

June 30

ASSETSCurrent Assets

Capital Assets

LIABILITIESCurrent Liabilities

Long-term Liability

Accrued Pension Liability

FUND BALANCESOperating

Restricted

Strategic

Invested in Capital Assets

2012$

2,315,49166,292

2,381,783

1,253,162

244,392

1,497,554

440,000377,937

66,292

884,229

2,381,783

Lisa Dorian, CA.CIA, CPA(IL), CRMAChair, 2012-2013 Board of Directors

suMMaRy statEMEnt oF FInanCIal posItIon

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2012$

801,052602,626303,917275,349

32,6425,122

2,020,708

947,008149,659421,450344,972260,836

42,77412,806

2,179,505

(158,797)

2013$

768,894688,231291,917316,726

25,5346,000

2,097,302

922,907(102,955)

430,925354,950285,715

45,52813,793

1,950,863

146,439

Year ended June 30

REVENUESMembership dues and initiation feesEventsNational Strategic Partner programCFERF research studies and donationsInvestment incomeMiscellaneous

EXPENSESCompensationPension planEventsAdministration, occupation and other costsCFERF costsNational Strategic Partner program Profile, branding & advocacy

Excess of revenues over expenses (expenses over revenues) for year

suMMaRy statEMEnt oF REvEnuEs and ExpEnsEs

FInanCIal ExECutIvEs Canada 2013 annual REpoRt

suMMaRy statEMEnt oF REvEnuEs and ExpEnsEs

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FEI Canada suMMaRy oF FInanCIal statEMEnts

notE to suMMaRy FInanCIal statEMEntsJune 30, 2013

dEsCRIptIon oF oRganIzatIon and basIs oF pREsEntatIon

Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada (FEI Canada) is a not-for-profit membership organization established to connect financial executives through networking, knowledge exchange, advocacy and ethical leadership. It is a registered non-profit organization, which is exempt from income taxes under the Income Tax Act (Canada).

These summary financial statements have been prepared from the audited financial statements of Financial Executives International Canada/Dirigeants Financiers Internationaux du Canada (the “Organization”) for the year ended June 30, 2013, on the basis that is consistent, in all material respects, with the audited financial statements of the Organization except that no statement of changes in fund balances and statement of cash flows have been presented and only selected information disclosed in the notes to the financial statements has been presented.

The summary financial statements include the accounts of the organization’s controlled foundation, Canadian Financial Executives Research Foundation/Fondation De Recherche Des Dirigeants Financiers Du Canada (CFERF). CFERF is separately incorporated and was formed to promote, conduct and sponsor research and publishing projects on business management topics. FEI Canada provides administrative support and management to CFERF and is not remunerated for this support.

FEI Canada is affiliated with chapters throughout Canada, and with Financial Executives International in the United States (FEI). FEI Canada chapters are independently responsible for funding and managing their operations and, accordingly, are not consolidated in these financial statements.

Full financial statements may be viewed on the FEI Canada website.

FEI Canada Full Financial statements

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FInanCIal ExECutIvEs Canada 2013 annual REpoRt

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natIonal stRatEgIC paRtnERs

We would like to thank our amazing National Strategic Partners. Their ongoing support benefits our members through research, thought leadership and professional development.

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