2015 Activity Report - Desjardins Capital régional et

BEING A PARTNER
HAS ITS ADVANTAGES
2015 ACTIVITY REPORT
MESSAGE FROM THE BOARD OF DIRECTORS
Capital régional et coopératif Desjardins (CRCD) ended 2015 with solid
performance in all key areas. Its share price rose $0.56 to $12.61 compared with
2014, while net income totalled $74.8 million for an annual return of 4.9%.
Assets surged 9.3% to $1,642.1 million. CRCD had a total of over
102,000 shareholders, a significant increase of 6.2% compared with 2014. Taken
together, these results clearly show that CRCD is in fighting form as it turns 15.
They are also a tribute to all the hard work behind the scenes by a host of people
with a common commitment to growing Quebecers’ collective wealth.
In fact, CRCD has posted positive results for the past seven years, particularly
through close application of its financial asset management strategy. Such rigour
has struck a balance for CRCD between fulfilling its economic development
mandate and generating reasonable long-term shareholder returns. This is
reflected by the share’s compound return of 4.1% (1) over a seven-year horizon,
the required minimum holding period for CRCD shares, in addition to the tax credit
obtained at purchase time. CRCD’s Board of Directors also renewed its
commitment in 2015 to maximizing share availability for shareholders. To this
end, CRCD improved share distribution, with nearly 52,000 Québec taxpayers
purchasing shares, including 12,400 new investors.
TOWARD THE NEXT ROUND OF STRATEGIC PLANNING
The last round of strategic planning, completed by the Board of Directors three
years ago, notably resulted in the adoption of CRCD’s current mission statement
focusing on Québec’s economic future and vitality. CRCD opted for innovative
approaches to support Québec entrepreneurship. In 2016, CRCD will embark on
the next round of strategic planning, specifically to set the objectives for the
2017–2020 period and determine the concrete strategies to meet them. The Board
will examine sensitive issues such as ensuring adequate capitalization to fulfil its
mission. The resulting strategic plan will guide CRCD in pursuing its strategic
goals and creating the tools and resources to achieve viable mid- and longterm solutions.
Frankly, we’re proud of our achievements because, first and foremost, they reflect
our shareholders’ commitment to developing Québec’s economy. Year after year,
their loyalty to our financial product drives our passion for supporting the growth
of Québec companies, and we want to thank them for their renewed trust!
Jacques Plante, Chairman of the Board
Bruno Morin, General Manager
JACQUES PLANTE,
CPA, CA
Chairman of the Board
of CRCD and
Corporate Director
MAURICE DOYON,
Ph.D.
Vice-Chairman of the
Board of CRCD and
Professor, Université Laval
CHANTAL BÉLANGER,
FCPA, FCGA
Secretary of the Board
of CRCD and
Corporate Director
BRUNO MORIN
General Manager
of CRCD and
Corporate Director
EVE-LYNE BIRON,
B.Sc., MBA, IAS.A
Corporate Director
JOANE DEMERS,
FCPA, FCA
Consultant, Gestion
exécutive JD and
Corporate Director
ROGER DEMERS,
FCPA, FCA
Corporate Director
MARLÈNE DEVEAUX
President and Chief
Executive Officer,
Revêtement sur métaux inc.
Me ANDRÉ GABIAS,
LAWYER
Ethics and Governance
Consultant
JEAN-CLAUDE
LORANGER
General Manager, Caisse
Desjardins de Rouyn-Noranda
CLAUDINE ROY
Corporate Director
LOUIS-RÉGIS TREMBLAY,
Eng, IAS.A
Corporate Director
The share’s compound returns were 4.6% over one year, 3.2% over three years, 4.9% over five years and 2.0% over ten years. The indicated rates of return are
the historical and annual compounded total returns, including changes in share value and reinvestment of any dividends or distributions and do not take into
account any income taxes payable by any shareholder, which would have reduced returns. CRCD shares are not guaranteed, their value changes frequently and
past performance is not indicative of future performance.
(1)
COMMITMENTS
402 PARTNER
COMPANIES AND
COOPERATIVES
$940 MILLION
BENEFITTING
QUÉBEC SMEs
67,500
JOBS CREATED OR
MAINTAINED
THROUGHOUT
QUÉBEC †
LAURENTIANS
4 COMPANIES
$7.2 MILLION (1)
ABITIBI-TÉMISCAMINGUE *
27 COMPANIES
$13.6 MILLION (1)
LAVAL
6 COMPANIES
$8.2 MILLION (1)
BAS-ST-LAURENT *
21 COMPANIES
$12.1 MILLION (1)
MAURICIE *
14 COMPANIES
$63.9 MILLION (1)
CAPITALE-NATIONALE
32 COMPANIES
$84.7 MILLION (1)
MONTÉRÉGIE
55 COMPANIES
$205.2 MILLION (1)
CENTRE-DU-QUÉBEC
22 COMPANIES
$44.5 MILLION (1)
MONTRÉAL
56 COMPANIES
$223.9 MILLION (1)
CHAUDIÈRE-APPALACHES
31 COMPANIES
$69.9 MILLION (1)
NORD-DU-QUÉBEC *
12 COMPANIES
$2.4 MILLION (1)
CÔTE-NORD *
16 COMPANIES
$9.9 MILLION (1)
OUTAOUAIS
2 COMPANIES
$1.9 MILLION (1)
EASTERN TOWNSHIPS
37 COMPANIES
$62.2 MILLION (1)
SAGUENAY – LAC-ST-JEAN *
45 COMPANIES
$39.4 MILLION (1)
GASPÉSIE –
ÎLES-DE-LA-MADELEINE *
4 COMPANIES
$6.2 MILLION (1)
OUTSIDE QUÉBEC
2 COMPANIES
$2.4 MILLION (1)
LANAUDIÈRE
4 COMPANIES
$3.5 MILLION (1)
FUNDS
12 FUNDS
$79.2 MILLION (1)
Including the entire ecosystem
* Resource regions
(1)
Including funds committed but not disbursed
†
ENTREPRENEURS:
OUR INSPIRATION
Entrepreneurs are visionaries driven by great determination and perseverance.
Our regional investment teams derive great pride from being at their side
throughout their growth cycle. What is the key to our shared success? Remaining
highly responsive to entrepreneurs at every stage of their development.
With this in mind, we kept up our tradition of touring the regions in 2015 to
meet with the business community, hear from entrepreneurs about their
growth challenges and gain a better understanding of their needs. The
feedback and insight we gained resulted in an adapted product offering. We
also believe it is our duty to support entrepreneurs in upgrading their
knowledge and expertise by giving them access to our business network
both in-house at CRCD and in association with our strategic partners.
Our focus remained squarely on SMEs, while our commitment to value and
nurture the best of Québec entrepreneurship translated into new
commitments totalling $173 million. Factoring in contributions from our
partner funds, in 2015 alone, we invested in 111 companies. Building on net
assets in excess of $1.6 billion, we guide SMEs at every stage of their
development. Startups and technology innovation projects accounted for
21% of that, expansion projects, 44%, and mature companies and business
transfers, 35%.
In short, all of CRCD’s actions in 2015 had a measurable impact on both
individuals and communities. A dedicated, committed and confident partner,
CRCD can truly say it makes a real difference for business. And as we are about
to turn 15, all signs point to an even brighter future!
MARIE-CLAUDE BOISVERT
LUC MÉNARD
Chief Operating Officer
Managing
Vice-president – Investments
YVES CALLOC'H
ANNE-MARIE POITRAS
Chief Financial Officer
of CRCD
Vice-president
SME and Funds under
Management Governance
ANDRÉ DESSUREAULT
CLAUDE RHÉAUME
Vice-president
Specialized Services –
Investments
Vice-president
Management Advisory
CATHERINE LENFANT
GÉRALD ST-AUBIN
Vice-president Strategies,
Regulation and
Shareholders
Vice-president Strategic
Investments and
Partnerships
Our sincerest thanks to all entrepreneurs of bold vision. You are our inspiration!
Marie Claude Boisvert – Chief Operating Officer
Desjardins Business Capital régional et coopératif
STARTUPS AND
TECHNOLOGY INNOVATION
21%
EXPANSION
44%
MATURE COMPANIES AND
BUSINESS TRANSFERS
35%
MAJOR CONTRIBUTIONS
TO HELP ENTREPRENEURIAL DREAMS COME TRUE
CRCD’s contribution to the growth of SMEs and regional economies goes far beyond the capital it injects. It also includes strategic guidance to drive value creation from
several standpoints. The following are concrete examples supported by evocative testimonials from entrepreneurs and directors.
KEEPING BUSINESS OWNERSHIP IN QUÉBEC
When the time comes for a business transfer, CRCD strives to ensure that SMEs remain in the regions they were born in,
thereby helping to maintain and create direct and indirect jobs. If need be, CRCD can become the majority shareholder to
ensure a smooth transition from transferor to transferee by proposing a guidance strategy that meets both the departing
entrepreneur’s expectations and the needs of the new leadership making the acquisition.
“We had just shy of 200 employees, many of whom were starting to build up seniority. It was just
absolutely vital that my people didn’t look at tomorrow with trepidation. I decided to hand the reins
to them when there was a majority shareholder to stand in for me that would guarantee Fournier
Industries’ continuity.”
RENAUD FOURNIER, FOUNDER, FOURNIER INDUSTRIES
BECOMING A BETTER ENTREPRENEUR
Known for high-quality programs and unwavering promotion of entrepreneurship, the École d’Entrepreneurship de Beauce
(EEB) enjoys solid support from partners Desjardins and CRCD. Drawing on this dynamic association, we seek to share EEB’s
benefits with our entrepreneurs through privileged access to all it has to offer.
“Our first-hand experience, for my partner and I, resulted in our exposure to an exciting business
case that influenced our future as entrepreneurs in a big way. Not only did we gain useful skills to
navigate difficult decisions, but the event also allowed us to forge close ties with talented business
leaders. As leaders of a young business in pursuit of growth opportunities, we can’t stress enough
the importance of forming relationships with seasoned entrepreneurs with an established network
of business contacts.”
XAVIER GODMAIRE, CEO, LASERAX
PROVIDING FOR A METICULOUS DIRECTOR SELECTION PROCESS
Given its special focus on SMEs, CRCD is conscientious in identifying potential director nominees who share its values to
help partner companies achieve optimal growth over a long-term horizon. In particular, CRCD further those goals through
its pool of corporate directors consisting of over 200 external directors. Boasting a broad range of expertise in a large variety
of industries, these highly competent, available and engaged directors are selected by CRCD based on their profile’s fit with
the specific needs of each partner company.
“We had to replace an outgoing director representing CRCD on the Board. Thanks to CRCD’s openness
and professional support, the work was completed in an effective collaborative process involving
Board members, CRCD and senior management. Once the desired profile and skills were identified,
CRCD suggested a few names from its pool of directors. Potential nominees were short-listed and
interviewed by the President and the Chairman of the Board. Before his appointment, the selected
nominee was invited to sit in as observer at the following Board meeting so all directors had the
chance to assess him. A great team effort and a successful recruitment process that yielded a new
director who was quick to contribute to the Company’s development.”
JACQUES MALLETTE, CHAIRMAN OF THE BOARD, MARQUIS BOOK PRINTING
GETTING THE MOST OF CAPITAL
To further support SME growth projects, CRCD expanded its SME offering with the launch of SME Equity. This solution is
more flexible, simple, swift and cost effective, and shows entrepreneurs that share capital is a more powerful and flexible
tool for SMEs seeking to pick up the pace of long-term expansion.
“For the past few years, CRCD has continuously supported my projects through debentures. Today,
with an investment in our share capital, I can plan for sustained, longer-term expansion and focus
on growing my business: full speed ahead!”
GILLES BLAIS, PRESIDENT, PRÉCIGRAFIK GROUP
BUILDING CLOSER TIES WITH REGIONAL SMEs
At CRCD, touring Québec’s regions extensively is an integral business development strategy to acquaint current and potential
partners with economic prospects in their region. CRCD greeted nearly 1,000 attendees at tour events in a dozen Québec
municipalities in 2015. Created in conjunction with the Caisse de dépôt et placement du Québec, this initiative will continue
in 2016, imparting on SMEs the importance of being well capitalized and an innovator.
“This format works well for SME leaders. It’s a chance for us to discuss our growth challenges with
other entrepreneurs and the region’s business community who all have a common denominator:
driving regional prosperity.”
JEAN-MARC DALLAIRE, CEO, ÉQUIPEMENTS SUPÉRIEURS
PROVIDING FOR COMPETENT AND WELL-SUPPORTED DIRECTORS
To further enhance the role of our directors serving on partner companies’ boards or advisory committees, over 15 specialized
training sessions were offered in 2015 either directly by CRCD or by high-profile collaborators such as the Collège des
administrateurs de sociétés and the Institute of Corporate Directors.
“As I see it, CRCD is a leader in providing support and training for its directors. Their programs for
directors and entrepreneurs on strategic issues and hot topics hone their skills and also create an
excellent collaborative environment between management and directors, generating more value
added for the business.”
NATHALIE LE PROHON, DIRECTOR, ALITHYA
PROMOTING THEIR PRODUCTS AND SERVICES
During the year, certain partner companies took advantage of our network to disseminate their product and service offering
to all of our teams of investment professionals. CRCD thus facilitates an optimal synergy, with timely access to expertise
and services that are often complementary. In particular, some 20 partner companies were given the opportunity to raise
their profile in networking activities or showcases.
“The showcase format before CRCD’s investment directors is really great for us. We get the chance
to pitch our products and services to the people who represent over 400 companies we could
potentially do business with or form alliances. It’s a really great platform we’re offered.”
YVES POISSON, PRESIDENT, ÉCO-PAK
By leveraging its entrepreneurial ecosystem and numerous partnerships, CRCD forms close ties across a vast business network that gets
bigger and stronger every year. We help match our partners with the skills and expertise they need. Indeed, a number of partner companies
accessed our network in 2015 to find services offered by other companies in our portfolio.
FOR SUBARU NEW RICHMOND AND LFG CONSTRUCTION
At the time of CRCD’s investment in Subaru New Richmond, CRCD investment manager
Martin Labbé identified a need for the construction of the dealer’s new building. Martin
then put Subaru New Richmond in contact with a partner in our portfolio, LFG Construction,
a general contractor in Carleton-sur-Mer specialized in commercial and industrial projects.
Thanks to Martin, LFG Construction won the construction contract much to the satisfaction
of its new partner.
SYNERGY
NETWORK
OTHER BENEFITS OF BEING A PARTNER
FOR GYPTECH ACOUSTIQUE AND LOU-TEC
Gyptech Acoustique is a contractor in Québec’s Chaudière-Appalaches region specializing
in commercial, industrial, institutional and multi-residential interior systems (insulation,
sound proofing, steel stud framing, carpentry, etc.). It is one of the Québec City area’s
largest interior systems contractors. In serving its broad range of clients, Gyptech Acoustique
is often required to rent specialized equipment. CRCD’s Québec City area investment
managers Mario Tremblay and Andrée Bélanger saw a winning connection between the
product offering of Lou-Tec, a CRCD partner company, and key needs of Gyptech Acoustique,
which now rents a great deal of its equipment from Lou-Tec.
CAPITALREGIONAL.COM
At the end of summer 2015, CRCD launched its new website for
greater proximity with current and potential shareholders and
entrepreneurs. The website provides extensive content for all
stakeholders in the CRCD ecosystem. Under a revamped digital
strategy, CRCD now discloses its investments, economic benefits,
partnerships and much more, every day on its website and
via LinkedIn.
In addition, CRCD attaches great importance to its partners’
achievements. CRCD regularly publishes a wide range of news items
highlighting its partner companies or provide information on
industry trends.
Follow us on LinkedIn or on our website at capitalregional.com
BEING A SHAREHOLDER ALSO HAS ITS ADVANTAGES
DRIVING VITALITY IN THE REGIONS
CRCD’s shares are popular with a great number of shareholders, many of whom have bought shares each year since 2001.
“Personally, I find it important to support Québec SMEs. I like being regularly informed, particularly through the website and other shareholder
communications, about the numerous investments completed and their concrete benefits. Not to mention that these shares generate a nice tax
credit and return.”
JEAN LALONDE, SHAREHOLDER
MEETING SHARE DEMAND
CRCD shares are sold through the Desjardins caisse network, but you need not be a caisse member to become a shareholder. CRCD shares are so
popular that sometimes demand exceeds supply, in which case the authorized capitalization is quickly reached.
“Setting the subscription at $3,000 allowed us to broaden the product’s accessibility. And the improvements we made to the buying process with
a web-based form meant a user-friendly experience for thousands of investors that was reliable, accessible and fair. As a financial planner who
has been promoting the product for years now, it’s always a pleasure to see CRCD’s faithful shareholders proudly signing on again to promote
SME growth.”
JULIE DELISLE, FINANCIAL PLANNER, CAISSE DESJARDINS DES TROIS-RIVIÈRES
SHAREHOLDER SERVICES
MANAGER
Capital régional et coopératif Desjardins
2 Complexe Desjardins
P.O. Box 760, Desjardins Station
Montréal, Québec H5B 1B8
Desjardins Business Capital régional et coopératif
2 Complexe Desjardins
P.O. Box 760, Desjardins Station
Montréal, Québec H5B 1B8
Toll free: 1 888 522-3222
[email protected]
capitalregional.com
Tel: 514 281-7131
Toll free: 1 866 866-7000, ext. 7131
[email protected]
desjardins.com/developmentcapital
This Activity Report is also available on
CRCD’s website.
Contact information for our regional
offices may be obtained by calling the
manager or by visiting its website.
100 %
This document was printed on Cascades Rolland Enviro100 paper.
FKC62189 (2016-03)