CAA NORTH & EAST ONTARIOAnnual Report 2015

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“From the advice offered, to the ease of planning, to bookings being done for you, CAA takes all the ‘painful’ parts out of planning a trip and presents you with a package ready to be enjoyed.”

VAL F.

“The (travel) staff at CAA was amazing, once we knew that Everest basecamp was not going to happen (due to the Nepal earthquake), they were very quick in getting the ball rolling to get us out. As one can imagine, we were all anxious to get home to our families. CAA was extremely helpful in guiding us, spending countless hours trying to coordinate getting us home. They were always professional, always polite and worked very hard to handle all our travel situations to get us home safe.”

JASON C.MEMBER OF THE 2015 DREAM MOUNTAINS CLIMBING TEAM

For CAA North & East Ontario, 2015 has been a year marked by technological innovations that are enabling us to serve our Members faster and more efficiently than ever before. We may have been in the business of roadside assistance for more than a century, but being an old organization doesn’t mean we’re outdated. Building on the success of launching CAA Connect (our usage-based insurance system) in 2014, we

sustained the momentum this year by introducing our new roadside assistance app, CAA Service Tracker, as well as continuing to grow our social media footprint and revamping our internal systems through investments in cloud computing technology.

The introduction of the CAA Service Tracker to the marketplace propels roadside assistance into the 21st century by letting Members track their service requests in real time, through live updates right on their smartphones and now even on their Apple watches. Users can track their CAA driver on an inter-active map, as well as cancel their request, all with the push of a button. In the same way that CAA Connect gives the power to access more affordable insurance to our Members, CAA Service Tracker empowers our Members when they feel at their most helpless—stuck on the side of a road. It’s how we demonstrate our commitment to continuing to serve our Members as best we can, with a little help from technology.

With more than a hundred years behind our national organization, it might be funny to some that we could be concerned by how many likes we have on Facebook or re-tweets on Twitter. But our mission has always been to engage with Members using the platforms most convenient to them and in a manner that is both responsive and reliable.

We do this by constantly improving upon our own internal systems. The last several months have seen us increasingly embracing “the cloud,” decreasing our use of hardware in our data centre in favour of virtual servers and systems that will enable us to work faster and more efficiently. We’ve done this by taking our e-mail management system to Office 365 and incorpo-rating online collaboration tools that are evolving the

fundamental ways in which we do business, giving employees access to everything they need from wherever they may be.

While we’ve incorporated new advances in technology, we’re equally passionate about preserving what makes CAA NEO the most trusted name in roadside assistance, insurance, travel and rewards. This is why we consider the continued development of our Solo Traveller Club to be one of our biggest successes this year, enabling travel-lers to explore the world on their own—but not alone. Through our Solo Traveller Club, those travelling without a companion now have the confidence to embark on an adventure with like-minded individuals—while avoiding the standard single supplement they usually have to pay.

Our first two Solo Traveller Club tours were sold out this year. Part of the success of the Solo Traveller Club is the comfort in having a CAA tour leader on-hand. It’s just one way that we’re able to maintain our uniquely personal connection with our Members that has come to define our enduring relationship with them. Because no matter how quickly technology may advance, the fundamentals of good customer service remain the same: nothing can replace an “old-fashioned” face-to-face conversation.

That is why we’re always available to greet our Members with a smile and helpful advice at their local CAA Store. It’s what separates us as an industry leader: the way in which we blend tradition with technology to maintain our relationship with existing customers while reaching out to new ones. Quite simply, it is how we say, “We’re with you all the way.”

After all, being able to provide a concierge-like level of service is still one of the most important missions of the Club. As we’ve sat down to discuss the question, “What will keep us around for the next century?” this past year, all signs have pointed to maintaining the excellent relationship that we have with our Members as the way forward.

On that note, we would like to extend our sincerest thanks to our Members for their ongoing trust and confidence in CAA NEO. As our Membership base continues to grow year over year, our unwavering commitment to our valued Members remains ever the same. I would also like to extend my sincere appreciation to the Board of Directors and all the staff at CAA NEO for their tireless efforts and dedication.

Here’s to a successful 2016—and moving forward, together!

Respectfully yours,

Christina HluskoCAA NEO President & CEO

MESSAGE FROM THE CLUB

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I would like to express my sincere gratitude for my time spent as Chair of the Board of Directors here at CAA North & East Ontario (CAA NEO). I have been a member of this board for over 17 years and have served as the Chair of the Board for the past three. I am thankful for having been given the opportunity to join and work with this dedicated,

forward-thinking and highly respected organization. Thank you to all our Members, our Board of

Directors and Club staff with whom I have had the opportunity to work and connect with. It is truly something special and invaluable for CAA NEO to have such a dynamic and enthusiastic group of individuals come together and give their personal time to enhance the productivity and image of the Club. What we have accomplished over the past three years is amazing and I would like to wish your new Board Chair, Bob Keeper the best of luck in his new post—I am sure the innovation and growth will continue.

All the best in 2016!

Jack CampbellChair, CAA NEO Board of Directors

MESSAGE FROM JACK CAMPBELL,OUTGOING CHAIR OF THE BOARD

“CAA saved our Christmas Eve! We were picking up some last minute items at Walmart and when we went back out to the car it wouldn’t start. Knowing we would be late for our dinner at my in-laws we called CAA and they came to our rescue in a mere 20 minutes and we made it out in plenty of time for dinner.”

KRISTY T.

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Number of years CAA NEO has been

accredited with the Better Business Bureau:

55

Amount of CAA dollars earned by members:

$696,900

Number of events our sales and corporate sales teams attendedthis past year:

100Number of community events CAA NEOparticipated in:

20

Total number of e-news

subscribers:

140,135

Numberof people

who attendeda travel talk:

500Numberof road

service calls:

133,858

Number of CAANEO Members:

278,588Achieved a

growth rate of:

2.33%

Total of CAA Membersnation wide:

6 Million*unaudited numbers

CAA NEO BY THE NUMBERS*

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We took our SOLO TRAVELLER CLUB to the next level by increasing the number of subscribers from 250 in 2014 to 1,098, hosted more than

15 SOLO TRAVEL EVENTS and launched THREE SOLO TRAVEL EXCURSIONS:

• Treasures of Tuscany

• Adventures of Machu Picchu

• Timeless Turkey

In FEBRUARY 2015 we launched our CAA REWARDS MEMBERSHIP, giving people the ability to take advantage of all the great discounts, rewards and benefits at any of our 164,000 PARTICIPATING REWARDS PARTNERS LOCATIONS AND SERVICES.

Our GROUP TRAVEL DEPARTMENT worked alongside the DREAM MOUNTAINS FOUNDATION to raise funds in support of seven local charities and send a team of 22 ADVENTURE SEEKERS TO NEPAL TO CLIMB MOUNT EVEREST. When the Nepal Earthquake unexpectantly hit, they worked tirelessly to ensure all participants were able to get back to family and friends safely.

In May 2015 we made it easier for Members to PARK AT THE OTTAWA INTERNATIONAL AIRPORT by giving them options and saving them money. Now travellers can reserve their parking space in advance or pay when they arrive at the airport and SAVE 20%.

We celebrated and cheered on a group of SPECIAL OLYMPIANS BY SPONSORING THEM to participate in the 2015 Special Olympics Ontario Provincial Winter Games held in North Bay, showing them that community is strength and having a positive attitude is everything.

We RECEIVED A RECORD NUMBER OF VOTES in our 2015 ONTARIO WORST ROADS CAMPAIGN increasing participation by 26% and having four roads in our region place in the top 10. The number ONE WORST ROAD, ALGONQUIN BLVD WEST IN TIMMINS, garnered more votes than any other number one road in the 12-year history of the campaign.

With the help of the automotive STUDENTS AT NOTRE DAME HIGH SCHOOL IN OTTAWA AND THE UNITED WAY we gave one of our promotional Jeeps a complete overhaul and HANDED OVER THE KEYS TO CHRISTIE LAKE KIDS, a recreational camp serving economically disadvantaged children and youth.

GREW TRAVEL SALES BY $2 MILLION, ranking at the top among CAA/AAA Clubs for Travel Revenue Growth.

HIGHLIGHTS

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INDEPENDENT AUDITOR’S REPORT ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

To the Directors of CAA North & East OntarioThe accompanying Summary Consolidated Financial Statements, which comprise the summary consolidated income statement for the year ended September 30, 2015 and the summary consolidated balance sheet as at September 30, 2015, are derived from the audited consolidated financial statements of CAA North & East Ontario for the year ended September 30, 2015. We expressed an unmodified audit opinion on those consolidated financial statements in our report dated November 21, 2015.

The Summary Consolidated Financial Statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the Summary Consolidated Financial Statements, therefore, is not a substitute for reading the audited consolidated financial statements of CAA North & East Ontario.

Management’s responsibility for the Summary Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of a summary of the audited consolidated financial statements without notes or a summary consolidated statement of cash flows.

Auditor’s responsibilityOur responsibility is to express an opinion on the Summary Consolidated Financial Statements based on our procedures, which were conducted in accordance with Canadian Auditing Standards (CAS) 810, “Engagements to Report on Summary Financial Statements”.

Opinion In our opinion, the Summary Consolidated Financial Statements derived from the audited consolidated financial statements of CAA North & East Ontario for the year ended September 30, 2015 are a fair summary of those consolidated financial statements, without notes or a summary consolidated statement of cash flows.

PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Ottawa, Ontario November 21, 2015

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

Income Statement for the year ended September 30, 2015 2015 2014*

Total operating revenue 28,371,298 27,029,002

Total operating expenses 28,055,361 26,886,570

Income from operations 315,937 142,432

Other gains 188,445 796,937

Income before taxes 504,382 939,369

Income taxes 25,804 48,000

Net income 478,578 891,369

Other changes to net assets (538,900) (1,463,795)

Balance Sheet as at September 30, 2015

Total assets 21,156,164 20,277,036

Total liabilities 17,471,159 16,531,709

Members’ equity 3,685,005 3,745,327

* Certain of the comparative figures have been reclassified in order to conform to the current method of financial statement presentation.

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Administrative Centre2151 Thurston Dr. Ottawa, ON, K1G 6C9 Phone: 613-820-1890 Fax: 613-820-4646 Email: contactcaa@caaneo.on.ca

Ottawa South2446 Bank St. Ottawa, ON, K1V 1A4 Phone: 613-736-9696 Fax: 613-737-0667

Ottawa West500 Hazeldean Rd. Ottawa, ON, K2L 2B5 Phone: 613-836-7422 Fax: 613-836-5339

Ottawa East2026 Tenth Line Rd. at Innes, Unit 7 Ottawa, ON, K4A 4X4 Phone: 613-841-6441 Fax: 613-841-7608

Ottawa Centre1224 Wellington St. W. Ottawa, ON, K1Y 3A1 Phone: 613-729-0707 Fax: 613-729-8395

North Bay955 McKeown Ave., Unit 3B North Bay, ON, P1B 9P3 Phone: 705-474-8230 Fax: 705-474-6162

Parry Sound1 Pine Dr., Unit C7 Parry Sound, ON, P2A 3C3 Phone: 705-746-9305 Fax: 705-746-6198

Sudbury2040 Algonquin Rd., Unit 13B Sudbury, ON, P3E 4Z6 Phone: 705-522-0000 Fax: 705-522-5202

Thunder Bay585 Memorial Ave. Thunder Bay, ON, P7B 3Z1 Phone: 807-345-1261 Fax: 807-345-8944

caaneo.ca