2 Updated 30-11-05

Mission

• Stimulate the Québec economy by making strategic investments that will benefit Québec workers and businesses alike

• To invest in Québec businesses and provide them with services to further their development and to help create, maintain and protect jobs in Québec.

3 Updated 30-11-05

Mission

• Promote the economic training of workers to enable them to increase their influence on Québec’s economic development

• Educate workers on the need to save for retirement and encourage them to contribute to the economic growth of Québec by purchasing shares in the Fund

4 Updated 30-11-05

The Solidarity Fund answers to a Board of Directors composed of ten persons appointed by the general council of the Québec Federation of Labor, 2 elected at the annual shareholdres meeting and 4 appointed by the preceding directors to represent industrial companies, financial institutions and the socio-economical sectors

5 Updated 30-11-05

Members of the Board

• QFL

• CUPE

• USW

• Energy, Communication and Paper

• UFCW

• CAW

• SEIU

• Construction

• Teamsters

• Public Services Alliance

• Teacher’s Federation

6 Updated 30-11-05

SubscriptionsAnnual average of $727 million

for past five years*

SubscriptionsAnnual average of $727 million

for past five years*

Solidarity Fund QFLNet assets of$6.2 billion

Solidarity Fund QFLNet assets of$6.2 billion

Investments$2.7 billion

2,139 partner companies*and 105,596 jobs*

Investments$2.7 billion

2,139 partner companies*and 105,596 jobs*

Shareholder baseNearly 570 000shareholders

Shareholder baseNearly 570 000shareholders

As at November 30, 2005

Portfolio investmentsand marketable securities

$3.5 billion

Portfolio investmentsand marketable securities

$3.5 billion

A leader in SME development capital, established in 1983

* As at May 31, 2005

7 Updated 30-11-05

A profitable investment vehiclefor shareholders

Share value

$23.07

Note: Rate of return does not take into account tax credits to shareholders

Since inception

5.0%

Rate of returnof the Fund

5.9%

Year endedNovember 30, 2005

8 Updated 30-11-05

A rapidly growing force

489 000

550 000

566 000

June 30, 2001 June 30, 2003 November 30, 2005

Shareholders

9 Updated 30-11-05

A rapidly growing force

4 601 4 620

June 30, 2001

Net assets ($ millions)6 242

June 30, 2003 November 30, 2005

10 Updated 30-11-05

A rapidly growing force

2 8792 634 2 657

June 30, 2001 June 30, 2003 November 30, 2005

Investments ($ millions)

11 Updated 30-11-05

Investment volumeAs at May 31, 2005

405

2000 2001 2002 2003

Investments* ($ millions)

254

229

229

209

118

390283

159

* Including investments not eligible under 60% rule

Net investments

Disinvestments

Investments

372

619

512

368

2004

361

44

492

296

196

2005

12 Updated 30-11-05

31,770Fund

105,596 jobs created, maintained or preserved by the Fund and its partners As at May 31, 2004

Direct jobs

55,474The Fund’s network

28,818indirect

jobs

20,797induced

jobs

507jobs stemming from investments outside

Québec

3,043 specialty funds

20,661fonds régionauxand localfunds

13 Updated 30-11-05

Technology sector26%

Industryand servicessectors74%

Including:

• Industrial technologies,transportation, textileand clothing, plastics,rubber, tourism, mining,agri-food, culture, woodand furniture, real estate, etc.

• Export financing

A diversified portfolioAs at May 31, 2005 (fair value)

14 Updated 30-11-05

A patient partner

• The Solidarity Fund QFL establishes partnerships for the long term

- Exit horizon generally 5 to 7 years

• The Solidarity Fund QFL assumes its partnership role in the event of setbacks

- The Fund has unique expertise in turning around businesses in temporary difficulty

15 Updated 30-11-05

A partner that is activewithout interfering

• Target equity stake of 10% to 40%

• Helps company define its strategic vision

- Participation on board of directors

- Sector specialist that adds value to the business

16 Updated 30-11-05

A partner that meets the needsof business

$

Seed

Start-Up

Consolidation

Expansion

Export

IPO

17 Updated 30-11-05

A partner that meets the needsof business

Unsecured capital• For unionized and

non-unionized companies

At all stages of developmentof small and medium-sized businesses• From pre-start-up to IPO

• Up to $100 million in tangible assets or $50 millionin net assets for a first investment

• Helping create, maintain and preserve jobs

$

Seed

Start-Up

Consolidation

Expansion

Export

IPO$

Seed

Start-Up

Consolidation

Expansion

Export

IPO$

Seed

Start-Up

Consolidation

Expansion

Export

IPO$

Seed

Start-Up

Consolidation

Expansion

Export

IPO

18 Updated 30-11-05

Local Representatives

• 2118 local representatives

• 32 450 000 $ per month of payroll deductions

• RRSP: marginal rate + 15% + 15 %

19 Updated 30-11-05

Worker RelationsWorker Relations

A partner that brings added value…

20 Updated 30-11-05

Roles

• Conduct a social audit of prospective partner companies

• Follow up after investment with the Fund’s financial advisor

• Process investment referrals from the union structure

• Provide turnaround support, etc.

21 Updated 30-11-05

Economic TrainingEconomic Training

A partner that brings added value…

22 Updated 30-11-05

Economic trainingin the workplace

Only the Fund offers this added value

Goal: Make employees active participantsin the company’s growth

Philosophy:

- Trust employees’ intelligence

23 Updated 30-11-05

Economic trainingin the workplace (continued)

Results:

- Better understanding of the company’s financial and strategic situation

- Management transparency

- Genuine communication resulting in:• a change in mentality

• problem resolution

• better working atmosphere

The Solidarity Fund QFL NetworkThe Solidarity Fund QFL Network

24

Start-up

Expansion

Turnaround

$5,000 - $100,000

88 SOLIDE

Updated 30-11-05

Start-up

Expansion

Turnaround

25

The Solidarity Fund QFL NetworkThe Solidarity Fund QFL Network

Up to $2 million

16 fonds régionauxde solidarité FTQ

Updated 30-11-05

Start-up

Expansion

Turnaround

26

The Solidarity Fund QFL NetworkThe Solidarity Fund QFL Network

$500,000 - $50 million

Export

Updated 30-11-05

Project financing

Export financing

Expertise and aninternational network

Export support

27

The Solidarity Fund QFL NetworkThe Solidarity Fund QFL Network

Updated 30-11-05

28 Updated 30-11-05

The Fund:A partner for growth

• A leader in development capital

• A profitable investment vehicle

• A rapidly growing force

• A diversified portfolio

• An extensive network

29 Updated 30-11-05

The Fund:A partner for growth (continued)

• Substantial assets

• Patient capital

• A partner that is active without interfering

• A partner that meets the needs of business

• A partner that brings added value

The Solidarity Fund QFL…

A labour-sponsored investment fundthat has become the largest Québecinstitution dedicated to job creation through economic solidarity.

www.fondsftq.com

(514) 383-8383

1 800 361-5017

30 Updated 30-11-05