FEI Canada 2012Annual Report

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FEI CANADA 2012 ANNUAL REPORT

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TABLE OF CONTENTS

TABLE OF CONTENTSMessage from the CEO & the Chair of the Board of Directors

Leaders

Networking and knowledge exchange

Advocacy

Research

Financial performance review

FEI Canada summary of financial statements

National Strategic Partners

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FEI CANADA 2012 ANNUAL REPORT

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MESSAGE FROM THE CEO AND THE CHAIR OF THE BOARD OF DIRECTORSFEI Canada is striving to improve the value of your membership. Our volunteer leadership and staff is hard at work learning how to best meet and exceed the needs of members and prospective members.

Like many other professional associations, FEI Canada is challenged with changing demographics, triggered in part by the increase in retirement of baby boomers and changes in how we interact with our peers. In order to maintain and expand our membership, we must continue to adapt to a changing generation of financial leaders. We are tackling this issue by consulting with our members, prospective members and experts.

Thanks to all of you who participated in our spring membership survey. When we pored over the results, we wanted to understand what you felt was the greatest value of an FEI Canada membership, and what you thought encouraged your peers to join and to stay members. To help us, we engaged a business school to do a market research study. They undertook one-on-one interviews with members and prospective members , and the insights they gleaned helped us better understand the motivations of Canadian financial executives.

Observations from the market research confirmed that members were looking for various things that we have already incorporated into our strategic initiatives:

• Networking, combined with professional development (PD): Members value networking with their peers, especially if it goes beyond a mere cocktail party chat and involves the sharing of work experiences that will help members solve challenges or further their career. FEI Canada will be organizing more roundtable events to trigger such helpful sharing. Feedback from a participant in one of our CFERF Executive Research Forums was that this type of event was one of the most powerful peer learning experiences from which he has ever benefitted.

• More programming on leadership and management issues: Consistent with trends that the CFO role is evolving into a position that is far more comprehensive in scope, members expressed an interest in non-traditional and “soft” skills. In response, more innovative programming will be introduced in the near future and leadership topics were added to the 2012 Annual Conference agenda. For those who were not able to make it to St. John’s in June, check out the video links that you will find in this report, including our CFO Leadership panel with the dynamic trio of Tim Hortons’ CFO Cynthia Devine, PCL’s EVP Gord Maron and prominent Newfoundland business leader Jo Mark Zurel.

• Organizing members by Communities of Interest

Networks (“COINs”): Many members want more interaction with those in their industry, sector or other community of interest. While FEI Canada’s current member grouping by geography is convenient for in-person meetings, we foresee using the COIN concept for breakout discussions at certain live events as well as virtual connections (LinkedIn groups), webinars and teleconference discussions. Our first COIN was launched recently when the Private Company Roundtable was formed to provide private company members with a forum to exchange their business ideas and concerns.

• Personalized new member recruitment, on-boarding

and mentorship: Many new and prospective members have indicated they’d like their more experienced peers to personally welcome them into our organization and show them the ropes. Some would even like to be mentored by our more senior members. As we are quite a large organization, we would love to hear from those members who would be willing to act as mentors or as hosts at chapter meetings.

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MESSAGE FROM THE CEO AND THE CHAIR OF THE BOARD OF DIRECTORS

Our prospects for continued success are enhanced by the dedication of our volunteer leadership and staff, and we thank all who have contributed and continue to contribute to the advancement of FEI Canada’s strategic goals for their efforts and enthusiasm. This interactive annual report highlights various accomplishments over the past year that was made possible by these efforts. These highlights include:

• The celebration of the 10th anniversary milestone of Canada’s CFO of the Year™ Award, marking a decade of providing much-deserved recognition of our country’s CFOs.

• Our research institute, CFERF, has become self-sustaining and continues to produce high-quality research studies that members appreciate. These have attracted increased media attention, reaching a broader audience of financial leaders through publications such as Canadian Treasurer, Corporate Risk and various business and finance newspapers.

• As a result of our advocacy efforts, the issue of tax simplification is gaining legs. We thank the many hard-working members of our technical committees, including our tax task force chaired by Peter Effer.

• Many members commented on the high-quality of content and jovial atmosphere at our annual conference, held this year in St. John’s, Newfoundland.

In closing, we would like to invite you to email us (mconway@feicanada.org) to let us know how we can better serve you.

Michael Conway, FCA, ICD.D Chief Executive & National President

Ray Hawrelak, CAChair, 2011-2012 Board of Directors

Michael Conway(L) thanks Ray Hawrelak (R) for his time as FEI Canada Chair

FEI CANADA 2012 ANNUAL REPORT

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FEI CANADA’S LEADERSLeader: A person who leads or commands a group, organization, or country.

FEI 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 FEI Canada’s 11 chapters.

FEI 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: Ray Hawrelak, Edmonton (G)Vice Chair: Lisa Dorian, Vancouver (A), (G) Immediate Past Chair: Louis Marcotte, Quebec (G)Chair, Chapter Leadership Council: Bob Rollwagen, Southern Golden Horseshoe (A)Chair, Audit & Finance Committee: Debbie Stein, Calgary (A)Chair, CFERF: Vic Wells, Southern Golden HorseshoeChair, Committee on Corporate Reporting: Sean Carleton, CalgaryChair, Issues and Policies Committee: Bill Ross, Edmonton Chair, 2013 Conference Committee: Maureen Sullivan, Atlantic ProvincesCo-Chair of Sponsorship & Business Development: James Saretsky, CalgaryChair, Membership Committee: Danley Yip, VancouverCanada’s CFO of the Year™ Award Liaison: Tim Zahavich, Southern Golden HorseshoeDirector: Bev Davies, Winnipeg (A)Director: Mark Walsh, Toronto (A)Chief Executive & National President: Michael Conway, Toronto (G)Secretary & CFO: Line Trudeau, Southern Golden Horseshoe (G)Chair, FEI (U.S.): George Boyadjis, Twin CitiesVice Chair, FEI (U.S.): Marsha Hunt, IndianapolisPresident & CEO, FEI (U.S.): Marie Hollein, Chicago

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FEI CANADA’S LEADERS

Chair: Bob Rollwagen, Southern Golden HorseshoeChapter representatives: Nicole Archibald, Southwestern OntarioBradley Bardua, VancouverGeorge Chiarucci, TorontoTyrone Cotie, Atlantic ProvincesSusan Deakin, Southwestern Ontario

Elysia Estee, Southern Golden HorseshoeAzam Foda, Southern Golden HorseshoeCarl Gauvreau, QuebecMona Hale, EdmontonLeah Halpenny, TorontoCynthia Hansen, EdmontonNola Heale, CalgaryDwayne Henley, Winnipeg

Betty Hoffart, ReginaGail Kruger, ReginaSylvie Lafontaine, National Capital RegionGrant McNeil, CalgaryBeverley Szaura, WinnipegAngela Yap, Vancouver

National:Michael Conway, FEI CanadaLisa Dorian, VancouverRay Hawrelak, EdmontonCathy Jackson, FEI CanadaLine Trudeau, FEI Canada

Chair: Danley Yip, VancouverChapter representatives: Geoffrey Baldwin, Atlantic ProvincesGerhard Barnard, CalgaryJordan Beallor, TorontoJean Paul Beaulieu, Quebec

Susan Berggren, Edmonton Dawn Butler, Southwestern OntarioJohn Cole, Winnipeg Ernest Doyle, Southern Golden Horseshoe Robert Hibberd, Vancouver Gail Kruger, Regina

Sylvie Lafontaine, National Capital Region Marie-Josee Marsan, QuebecJason Vandenberg, Edmonton Russell Wong, Toronto

National:Michael Conway, FEI CanadaCathy Jackson, FEI CanadaLine Trudeau, FEI Canada

Chief Executive & National President: Michael ConwayChief Financial Officer: Line TrudeauVP, Research & Communications: Christian BellavanceSenior Writer: Laura BobakCommunications & Research Manager: Melissa GibsonDirector, Membership Development: Cathy Jackson

Membership, Marketing & Chapter Coordinator: Tatum HasanMembership & National Events Coordinator: Sharon BradshawDirector of Events: Rita PlaskettEvents Manager: Andrea CooneyDirector of Sponsorship: Don ComishOffice Administrator: Pat Todd

FEI Canada 2011-2012 leadership meeting

FEI CANADA 2012 ANNUAL REPORT

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President: Tyrone CotieGeoffrey BaldwinRaymond McCormickDavid PangmanMaureen SullivanIan TrambleCarl Vincent

President: Carl GauvreauCatherine AllardDavid AndersonDenis AsselinJean Paul BeaulieuRoss CorcoranMarc GodinBertrand LauzonAlix Mandron

Louis MarcotteMarie-Josee MarsanDenis PellerinPierre RichardClaude SamsonPaul StinisRobert St-JeanVicky Tumiotto

President: Sylvie LafontaineKen KemberLouis O’BrienGrant SmithJohn Weerdenburg

President: George ChiarucciJordan BeallorKay BrekkenJonathan BrindleyFred BurkeLeah HalpennyNaresh KhoslaNancy LalaSharlene LockeLeslie MarkowJune McAlareyBrian McAskillDavid MinasSteve RosenCliff TruaxRussell Wong

President: Brad BarduaRoger BissoondattFabiana ChubbsBrad CruickshankMarco FacconeRobert HibberdDoug KingHugh LindsayC. Douglas MorisonIssa NakhlehJeff ShickeleAlan WongAngela YapCheryl YaremkoDanley Yip

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

President: Azam FodaDan BowesNorman ColErnest DoyleElysia EsteeThomas Evans

Ananth KoovappadyFlorian MeyerRobert MurisonBob RollwagenLine Trudeau

President: Susan DeakinNicole ArchibaldDawn ButlerDavid CornerJames KnowlesGitta KulczyckiLynn LoganLloyd Monteith

President: Mona HaleSusan BerggrenPatrick BielenyDarren BumaCynthia HansenRon HelmholdEric Klein Daniel Lefaivre Don SagerJason Vandenberg

President: Nola Heale Gerhard BarnardBrian CallaghanVic FitchTariq MalikGrant McNeilTerene TharaganBrad ThompsonDrew ThomsonJames Saretsky

President: Dwayne HenleyBryan AlboAllan BeaudryJohn ColeBev DaviesJeannie LeeLarry NentwigBeverley Szaura

2011-2012 CHAPTER BOARDS Click on the chapter name to learn more

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NETWORKING AND KNOWLEDGE EXCHANGE

NETWORKING AND KNOWLEDGE EXCHANGENetwork: An extended group of people with similar interests or concerns who interact and remain in informal contact for mutual assistance or support.Knowledge / Exchange: Information and skills acquired through experience or education; the theoretical or practical understanding of a subject / An act of giving one thing and receiving another (especially of the same type or value) in return.

Every year FEI 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 CFO TV and Youtube channels house the latest and greatest event footage, as well as an archive of past happenings. Click the images below to see event video footage and experience what FEI Canada has to offer.

NATIONAL BREAKFAST SEMINAR AND WEBINAR VIDEOS

The CFO and the Audit committee

Managing the Risk of Cheque Fraud

Credit Availability Barometer 2011

Succeeding at Succession

FEI CANADA 2012 ANNUAL REPORT

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CONFERENCE KEYNOTE SPEAKER VIDEOS – JUNE 6-8, 2012

Robert P. Kelly, former Chairman & CEO, BNY Mellon and currently Chancellor, St. Mary’s University

Phil Fontaine, CEO, Ishkonigan Consulting & former National Chief of the Assembly of First Nations

Newfoundland Resource Panel:Elizabeth Beale, President & CEO, Atlantic Provinces Economic CouncilDerrick Sturge, VP Finance & CFO, Nalcor Energy Shawn Skinner, Senior Advisor, Energy & Resources Leader - NL, DeloittePraveen Jha, Chief (Operation), Canada Project, Tata Steel

Mandy Shapansky, President & CEO, Xerox Canada

CFO Leadership Panel:Gordon Maron, Executive Vice President (former Chief Financial Officer), PCL Construction Holdings Ltd.Jo Mark Zurel, President, Stonebridge Capital Inc. and former SVP & CFO, CHC Helicopter Corp.Cynthia Devine, Chief Financial Officer, Tim Hortons Inc.Chris Flanagan, Director, 48 Degrees Inc. (Moderator)

We would like to thank all of our conference speakers, including General Rick Hillier for his inspiring closing luncheon Keynote address.

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NETWORKING AND KNOWLEDGE EXCHANGE

Chair: Maureen Sullivan, Atlantic ProvincesChapter representatives:Roger Bissoondatt, VancouverDan Clarke, Atlantic ProvincesTyrone Cotie, Atlantic ProvincesJim Fergusson, CalgaryBill Gullage, Atlantic ProvincesNatalia Kochetova–Kozloski, Atlantic ProvincesAnath Koovapaddy Southern Golden HorseshoeJudy Munro, TorontoLouis O’Brien, National Capital RegionBrian Rendell, Atlantic ProvincesCarl Vincent, Atlantic Provinces

National:Christian Bellavance, FEI CanadaSharon Bradshaw, FEI CanadaDon Cormish, FEI CanadaMichael Conway, FEI CanadaAndrea Cooney, FEI CanadaRita Plaskett, FEI CanadaPat Todd, FEI Canada

We kissed the cod and rocked the rock: Photo reel from the 2012 FEI Canada National Conference in St. John’s, Newfoundland

FEI CANADA 2012 ANNUAL REPORT

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Presenting sponsors Kathryn Bolt, Michael Conway, and Bill McFarland congratulate Canada’s CFO of the YearTM Colleen Johnston, CFO of TD Bank Group.

Dr. T. Ross Archibald, with his wife Vonnie and daughter Nicole Archibald. Nicole is also an FEI Canada member and volunteer.

TM

TM

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NETWORKING AND KNOWLEDGE EXCHANGE

The changing role of financial executives in governance

“Ask the expert” – An interactive Q&A with experienced CEO/CFOs & current executive mentors

Cloud computing

Closing keynote – David Rubenstein

The rise of activist investingWhere and how are leading Canadian pension plans investing in private equity?

What’s in store for the Canadian private equity and venture capital industry: trends, challenges and opportunities

Economic impact on Canada’s small and mid-sized firms

FEI CANADA 2012 ANNUAL REPORT

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ADVOCACYAdvocacy: Public support for, or recommendation of, a particular policy.

FEI Canada’s seven advocacy committees develop public positions, provide guidance and expert opinion on emerging issues relevant to FEI Canada 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 FEI Canada’s research.

Co-Chairs: Wayne Braun, CalgaryLisa Dorian, Vancouver

Marc Diamant, TorontoRobert Angel, TorontoNigel Byars, TorontoWarren Cabral, EdmontonBev Davies, WinnipegVictoria Davies, TorontoAsher Drory, TorontoTom Evans, Southern Golden HorseshoeJohn Glicksman, TorontoHubert Huang, TorontoNatalia Kochetova-Kozloski, Atlantic ProvincesNancy Lala, TorontoHugh Lindsay, VancouverCraig Pattinson, TorontoVic Wells, Southern Golden HorseshoeLisa 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, Southern Golden HorseshoeJames Fergusson, CalgaryBarry Gorman, Atlantic ProvincesWilliam Hewitt, TorontoTim McGillicuddy, EdmontonKen Parker ,CalgaryGrant Smith, National Capital RegionTim Zahavich, Southern Golden Horseshoe

Chair: Peter Donovan, TorontoVice Chair: Norm Ferguson, Edmonton

Nigel Byars, TorontoWilliam Hewitt, TorontoTony Hooper, TorontoGerry Wahl, Vancouver

Chair: Timothy Spielman, Calgary

James Fergusson, CalgaryCarl Gauvreau, QuebecKen Kember, National Capital RegionNaresh Khosla, TorontoJudith Purves, TorontoBill Ross, EdmontonDebbie Stein, CalgaryLisa Zingaro, Toronto

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ADVOCACY

(*): FEI 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.

Chair: Sean Carleton, Calgary Vice Chair: Carolyn Graham, EdmontonJoanne Boyes, ReginaSurendra Bungaroo, TorontoAngela Butler, CalgaryKaryn Brooks, Quebec*Susan Campbell, TorontoMarc-Antoine Daoust, QuebecBob Eisner, ReginaBrian Fiedler, Toronto*Murray Harris, CalgaryMonica Hubley, Atlantic ProvincesNancy Lala, TorontoMelanie Litoski, CalgaryCarol Lyons, Toronto Glenn Menuz, Calgary

Neil Robertson, CalgaryRinna Sak, Grant ThorntonJason Schultz, CalgaryTim Smart, TorontoMark Swalwell, TorontoWinson Tang, CalgaryMark Walsh, TorontoJohn Weerdenburg, National Capital RegionVic Wells, Southern Golden HorseshoeCheryl Yaremko, VancouverTim Zahavich, Southern Golden Horseshoe

National representatives:Christian Bellavance, FEI CanadaMichael Conway, FEI CanadaMelissa Gibson, FEI Canada

Co-Chairs: Tim Zahavich, Southern Golden HorseshoeGordon Heard, Southern Golden Horseshoe

Bruce Bailey, TorontoAnne Burpee, TorontoBill Brushett, Grant ThorntonLarry Cooper, TorontoJohn Forester, TorontoDennis Fortnum, KPMGSonjia Johansen, ReginaKevin Leier, ReginaFlorian Meyer, Southern Golden HorseshoeSunil Mistry, KPMGAjay Rao, TorontoJames Saretsky, CalgaryDarren Schrader, VancouverDana Thiessen, WinnipegDavid Wood, Atlantic Provinces

FEI CANADA 2012 ANNUAL REPORT

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RESEARCHResearch: The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

The Canadian Financial Executives Research Foundation (CFERF) is FEI Canada’s research institute. CFERF’s mission is to advance professional standards and practices of financial executives through research and thought leadership. CFERF’s products are topical and distributed in a format that is both timely and convenient. FEI Canada members aid CFERF’s research by completing surveys and participating in cross country research forums.

2011-2012 CFERF RESEARCH STUDIES

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RESEARCH

THANK YOU TO OUR 2011-2012 CFERF DONORS

Chair: Victor Wells, Southern Golden HorseshoeVice Chair: Mark Walsh, Toronto David Anderson, Quebec Alister Cowan, Calgary Thomas Evans, Southern Golden Horseshoe William Hewitt, Toronto Richard Iwaniuk, Edmonton Nancy Lala, Toronto Raymond McCormick, Atlantic ProvincesPer Mokkelbost, National Capital Region Tim Spielman, Calgary Debbie Stein, Calgary

National representatives:Christian Bellavance, FEI CanadaMichael Conway, FEI CanadaLine Trudeau, FEI Canada

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

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

BRONZE ($1,000-5,000):Canadian Western Bank GroupOpenText CorporationPotashCorpTELUS Corporation

CORPORATE DONORS

CHAPTER DONORSWe would like to thank all of FEI Canada’s 11 chapters for their generous donations to CFERF.

PERSONAL DONATIONS

Benefactors ($500+):Christian BellavanceRichard HaskayneWilliam Hewitt

Jane SouthernDebbie SteinBruce Waterman

Vic Wells

Patrons ($250-499):Michael ConwayThomas Evans

Jean PerronRobert Vaux

Supporters ($100-249): Bryan Albo James BoydGeorge BunzeWarren ChislingJeffrey CookTyrone CotieAlister CowanRobert Dietrich

Michael DoolanPierre GauvreauBarry GormanRichard IwaniukAlbert JonesLeslie MarkowMary MartinBrian McAskill

Glenn MenuzMassood OroomchiSylvain OuelletteKeith PalmerGary RaposoGreg ReiserSteven SaltPeter Scott

Donors (up to $100):Gerhard BarnardSuzanne BedfordDale BencharskyPhilippe BoninEdward BrownJoseph BrownKathy Conway

Norm FergusonCarl HartiganGerald JansenMichael MakinsonCarl McMurrayJan MulliganDouglas Proll

Randall Smallbone John SteenScott StoilenGerry WagnerMark WalshRick Ziemski

FEI CANADA 2012 ANNUAL REPORT

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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 & webinarsNumber of research studies completed in year & in progress at year-endNumber of National Strategic Partners at year-end

2012

$2,020,709 2,179,506

$ (158,797)

$(9,138)

1,7855

9

10

2011

$2,344,6662,142,737

$ 201,929

$120,778

2,01110

8

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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 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 St. John’s, Newfoundland, our National Breakfast Seminar series, National Executive

Development Webinar series, our Private Equity Symposium, our annual SME conference and Canada’s 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 services rendered in relation to our career centre website. All of these activities are supported by our team at National office and various committees including our seven volunteer-driven technical committees.

KEY PERFORMANCE DRIVERS

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FINANCIAL PERFORMANCE REVIEW

RESULTS OF OPERATIONSFEI Canada reported an excess of expenses over revenues of $158,797 for the year ended June 30, 2012, compared to a profit of $201,929 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, the excess of expenses over revenues would have been $9,138 for the year ended June 30, 2012, compared to a profit of $120,778 a year ago. Most of this Pension Expense relates to the mark-to-market adjustment of its investment portfolio and a decrease in the discount rate used in the actuarial liability calculation.

REVENUESRevenues decreased $324,000 or 14% from a year ago, to $2,021,000. Event revenue decreased $270,000, due to lower registration and sponsorship revenues from our annual conference (down $184,000) and a drop in the number of webinars and breakfast seminars ($86,000). Membership dues and fees decreased $50,000, stemming from a decline in membership this year. While the number of strategic partnerships was unchanged this year, these

revenues decreased $45,000 due to sponsorship declines in 2010-2011. CFERF revenues improved $50,000, due to higher research revenues ($42,000) and increased donations ($8,000). Miscellaneous revenue declined $12,000 as our member job board service was enhanced by allowing recruiters to post job openings free of charge. Income on our investment portfolio, at $33,000, was $3,000 higher than last year.

Membership dues and initiation fees

40%

30%

15%

14%

Events

National StrategicPartnerProgram

CFERF ResearchStudies and Donations

Investment Income1%

REVENUE

FEI CANADA 2012 ANNUAL REPORT

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EXPENSESExpenses, at $2,179,000, increased $37,000 from $2,143,000 a year ago. Excluding the impact of the expense of the closed Pension Plan for past employees, expenses decreased $194,000 or 9% from a year ago.

The Pension Plan expense at $150,000 was $231,000 higher than a year ago, as lower investment returns were achieved and the discount rate applied to the actuarial liability was lowered by 1.1%. Other compensation expenses,

representing 43% of FEI Canada’s expenditures, decreased $32,000 from last year. Event costs declined $89,000, mostly due to lower costs associated with our annual conference. Administration, occupancy and other costs declined $55,000 largely due to cost curtailment. Despite higher CFERF research and fundraising revenues, related costs were reduced $27,000. National Sponsorship program costs increased $9,000 over last year.

Compensation

43%

19%

16%

12%

2%

Events

Administraion, occupancy and other costs

CFERF costs

Pro�le, branding & advocacy1%

7%

Pension Plan for past employees

National strategic partner program

EXPENSES

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FEI CANADA SUMMARY OF FINANCIAL STATEMENTS

Toronto, Ontario October 4, 2012

Michael Conway, FCA, ICD.D Chief Executive & National President

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 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, assisted by 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.

Hillborn Ellis Grant 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

FEI CANADA 2012 ANNUAL REPORT

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AUDITORS’ 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, 2012 and the summary of revenues and expenses for the year then ended, and related note, are derived from the audited financial statements of Financial Executives International Canada/ Dirigeants Financiers Internationaux du Canada for the year ended June 30, 2012. We expressed an unmodified audit opinion on those financial statements in our report dated October 4, 2012.

The summary financial statements do not contain all the presentation and disclosures required by Canadian generally accepted accounting principles. 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, 2012 are a fair summary of those financial statements, on the basis described in the note to the summary financial statements.

Toronto, ONOctober 4, 2012

Chartered AccountantsLicenced Public Accountants

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FEI CANADA SUMMARY OF FINANCIAL STATEMENTS

SUMMARY STATEMENT OF FINANCIAL POSITION

Ray Hawrelak, CAChair, Board of Directors2011-2012

Debbie Stein, CAChair, Audit & Finance Committee2011-2012

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

June 30

ASSETSCurrent Assets

Capital Assets

LIABILITIESCurrent Liabilities

Long-term Liability

Accrued Pension Liability

FUND BALANCESOperating

Restricted

Strategic

Invested in Capital Assets

2011$

2,570,11487,330

2,657,444

1,480,646

133,772

1,614,418

425,000530,696

87,330

1,043,026

2,657,444

FEI CANADA 2012 ANNUAL REPORT

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2012$

801,052602,292303,917275,349

32,6425,122

2,020,708

947,008149,659421,450344,972260,836

42,77412,806

2,179,505

(158,797)

2011$

851,311873,130349,292224,617

29,51116,805

2,344,666

978,591(81,151)510,111399,778287,412

34,22713,769

2,142,737

201,929

Year ended June 30

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

EXPENSESCompensationPension planEventsAdministration, occupation and other costsCFERF costs and awards grantedNational Strategic Partner program Profile, branding & advocacy

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

SUMMARY STATEMENT OF REVENUES AND EXPENSES

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FEI CANADA SUMMARY OF FINANCIAL STATEMENTS

NOTE TO SUMMARY FINANCIAL STATEMENTSJune 30, 2012

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 nonprofit 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, 2012, on a 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.

FEI Canada Full Financial Statements

FEI CANADA 2012 ANNUAL REPORT

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NATIONAL STRATEGIC PARTNERS

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

http://www.feicanada.org