DATE CONTACT NAME CONTACT TITLE COMPANY NAME COMPANY ADDRESS CITY, PROVINCE POSTAL CODE Sir: OR Madam: (formal letter) Dear Sir: OR Dear Madam: (more personal letter) (If the «Visit Confirmation» letter has been sent, begin the first paragraph with th is:) Further to our previous letter concerning our meeting of DATE... at TIME.... in your office, we would like … OR (If the «Visit Confirmation» letter has not been sent, begin the first paragraph with this:) As mentioned during our telephone conversation, this letter is to confirm our meeting at TIME on DATE in your office and … … to remind you the main purpose of this meeting, which is to review and confirm the legal and the operating structures of your business profile and to define their industrial, commercial and financial activities. To assist you in your preparation of this meeting, we enclose the following documents: 1. Our Business Entity Report(s) which contains two lists: your legal entities structure and your operational entities structure, as recorded on the Business Register of Statistics Canada, along with their related information. (Attachment 1 explains the content of the report.) 2. A list of points or questions (Attachments 2 and 3) to be clarified which we would appreciate resolving for the meeting. 3. A quick reference list (Attachment 4) of the 1997 North American Industrial Classification System (NAICS) relating to your operating units. 4. For your convenience, two portraits (Attachments 5 and 6) representing in a summary format the detailed legal and operational structures. Use the following paragraph only if the contact person has requested an electronic version of the operational structure – As agreed, we have also included a diskette with the electronic version of your operational structure (in Excel format).

.../2.

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– 2 – It would be appreciated if your updates to the content of the Business Entity Report be made on the report itself indicating also the related information, as much as possible before the meeting. If you find it convenient, this document could be used as a turnaround document. Statistics Canada requirements consist, essentially, in obtaining a complete list of all your Canadian operating entities where industrial, commercial and financial activities are carried out. To complete these requirements, it is important to define and confirm for each of the entities: their principal industrial activity or activities (to facilitate their classification), their accounting level of financial data availability and their number of employees. It should be noted that all information is "collected under the authority of the Statistics Act, revised Statutes of Canada, 1985, Chapter S-19 (short title: Statistics Act, R.S.C. 1985, c. S-19)" and remains confidential under the same Act. We appreciate your co-operation and wish to express our sincere thanks. Please do not hesitate to contact us for clarification. Yours truly, Business Profile Manager Profiling Section Business Register Division Statistics Canada Jean Talon Building 8th Floor Tunney's Pasture Ottawa, Ontario K1A 0T6 Telephone: (613) 951- Fax: (613) 951-0104 E-mail Address: Encl. (NUMBER OF ATTACHMENTS)

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Page 1 of 3

BUSINESS ENTITY REPORT Attachment 1

List of Abbreviations and their Meaning

Field Name

Description

SECTION 1 – LEGAL STRUCTURE LE#/ Statistics Canada’s Legal Entity (LE) ID # for each entity. (PARENT #) In brackets, immediate parent ID# for relationship.

LEVEL Hierarchy level of relationship of each entity to the level 01 which is the ultimate parent of the structure. A number with the sign “>” indicates that the entity is a parent.

NAME(S)/ Legal Entity Name ADDRESS Address of Corporate Head Office TYPE / Type of an entity (Incorporated [INC.], individual [IND.], etc.) FRAN If applicable, indicates that the entity is a Franchisor CHARTER / Incorporation charter number. ACT Jurisdiction of incorporation (Act)

RESIDENCE OF OPERATION For operating legal entities, it indicates whether the entity has Canadian operations (Domestic) only, and/or abroad, or no Canadian operations.

BANKRUPT STATUS If applicable, indicates that the business is in a process of bankruptcy

BN Business Number (BN) assigned by Canada Customs and Revenue Agency (CCRA).

AFF If «YES» is indicated, it has an affiliation relating to either a Joint Venture or a Partnership type of relationship. (Refer to Section 2).

BE REF Each letter (A, B, etc.) indicates the delineation of a particular Business Entity (BE) within the legal structure.

SECTION 2 – LEGAL AFFILIATIONS

TYPE OF AFFILIATION Indicate if this unit is an unincorporated or incorporated joint venture as well as if a partnership

LE # Statistics Canada’s Legal Entity (LE) ID # for each entity.

BE # – if applicable – In case of partnership, indicate the Statistics Canada’s Business Entity (BE) ID #.

NAME Joint Venture and/or Partnership Name. ADDRESS Address of Corporate Head Office of each entity. PARTICIPANTS: Participants’ or partners’ name SECTION 3 – BUSINESS ENTITY

<< A >>, << B >>, << etc. >> Refers to the delineated BE and is followed by its detailed content. (See “BE REF” under section 1.)

3.1 LEGAL BASE This section lists the legal entities (or the single legal entity) forming the particular BE (legal base content) LE # Statistics Canada’s Legal Entity (LE) ID # for each entity. NAME(S) Legal Entity Name. CITY City of residence (of Corporate Head Office of each entity ) PROV Province of residence (of Corporate Head Office of each entity)

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Page 2 of 3

BUSINESS ENTITY REPORT Attachment 1

List of Abbreviations and their Meaning

Field Name

Description

3.2 OPERATING SUMMARY This section is a summary hierarchy listing of operating entities forming the particular Business Entity. It also reflects the major levels of the operating structure and counts of units.

LEVEL Hierarchy level of relationship in the operating structure where 01 is the TOP Operating Entity (Business Entity – BE). A number with the sign “>” indicates that the entity is ‘parent.’

NAME(S) (ORGANIZATION UNIT) Operating name of entities at each major level (Company, Division, Business Unit, Business Segment, etc.) of the operating structure as recorded on the Business Register.

# PRODUCTION UNITS Number of production units within each of the levels of the structure.

PRODUCTION UNIT TOTAL Number of production units within each level and, for lower parent’s levels, the grand total of all production units for that level.

4. BUSINESS ENTITY OPERATIONAL STRUCTURE 4.1 << BUSINESS ENTITY >> This section indicates data related to the top entity of the operational structure

LEVEL Hierarchy level of relationship in the operating structure where 01 is the TOP Operating Entity (Business Entity – BE). A number with the sign “>” indicates that the entity is a ‘parent.’

OP NUMBER / Statistics Canada’s Operating Entity (OP) ID # for the Business Entity.

NAME(S) / Business Entity Name. ADDRESS / Civic address of the Business Entity (Corporate Head Office). B.E. DATA Business Entity (BE) data which are detailed below.

FISCAL YEAR-END Month of the year-end.

INTL ACTIVITY Code used to identify if the Business Entity has or doesn’t have international investments and/or transactions.

SECTOR Code to indicate if the entity belongs to the private sector or government owned, etc.

LEVEL OF GOVT If applicable, code to indicate if the entity is part of one of the federal, provincial, municipal or foreign government.

OPERATING DATA Financial and Employment data for the total Operating structure.

TOT ASSETS Value of total assets in thousands of Canadian dollars ($000) for the latest fiscal year.

REVENUE Value of the gross revenue in thousands of Canadian dollars ($000) for the latest fiscal year – consolidated basis (after elimination of intercompany transactions).

EMPLOYEES Maximum number of employees for the latest fiscal year. 4.2 DETAILS OF THE OPERATIONAL STRUCTURE LEVEL Hierarchy level of relationship in the operating structure to the

level 01, which is the Business Entity. A number with the sign “>” indicates that the entity is a ‘parent.’

OP NUMBER Statistics Canada’s Operating Entity (OP) ID # for each entity. (PARENT NO.) / In brackets, immediate Parent ID# for relationship. NAME(S) / Operating Name of the entity. ADDRESS Business location (civic) address.

OUTLET NO Store (unit) number or any reference number used by the enterprise in order to properly identify the business unit.

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STC/BUS 525-60422

BUSINESS ENTITY REPORT Attachment 1

List of Abbreviations and their Meaning

Field Name

Description

ACCOUNTING INFORMATION/ The information is described through the various accounting centre types (Investment, Profit, Cost Recovery, Cost and Revenue) as described below.

OPERATING DATA/ Indicates the values of data elements Output and Employee. These values are necessary to confirm the technical (T) or support (S) activity.

ACTIVITY COMMODITY Describes the principal accountable activity carried out in order to assign the proper industrial classification per NAICS (North American Industrial Classification System)

<<… UNIT>> Type of unit (organizational, production or organizational/production) (See note at the end.)

ACCOUNTING CENTRE TYPE Any accounting unit “within an organisation where control over the incurrence of cost, the generating of revenue, or the use of investment funds is found.”

• INVESTMENT CENTRE

Responsibility centre for which the accounting system provides the relation between the profit realized by that centre and the resources invested in order to measure the management’s performance.

• PROFIT CENTRE “A subdivision of a business that is accountable for specific revenue and associated costs.”

• COST RECOVERY CENTRE An accounting unit (sub division) that chargeback other accounting unit of the same business, where a supplier-client relationship type is maintained.

• COST CENTRE “A subdivision of an organisation with which costs are identified for purposes of managerial control.”

• REVENUE CENTRE A subdivision of an organisation where revenue, and in some cases, some marginal cost are recorded.

• (000) $ OUTPUT

Value of revenue/sales/chargeback (internal transactions) in thousands of Canadian dollars ($000) as accounted for at that unit (business location) for the latest fiscal year (before elimination of intercompany/internal transactions).

• EMPLOYMENT Maximum number of employees that are accounted for under that unit at any one time during the latest fiscal year.

·

·

T % #### ###### OR

S #### ######

Activity Type (T = technical or S = support), industrial classification coding (4-digit SIC and 6- digit NAICS codes) and a brief description of the unit’s principal activity carried out and accounted for at that accounting unit.

Note: There are four types of Operating Units: (1) Business Entity (2) Organizational Unit (3) Production Unit and (4) Organizational/Production Unit. Each of these units can represent a different type of accounting centre as explained above.

Attachment 2 – Page 1

COMPANY NAME

Points and Questions to be Clarified

for the Meeting of DATE at TIME

1. Legal Entities Structure 1.1 Please confirm the Parent Company's interrelationship of all directly or indirectly owned subsidiaries using the Business Entity Report(s). (A copy of your organizational chart would be helpful.)

** If applicable, add here any specific questions as per attached list of additional questions **

1.2 If the company or any of its subsidiaries are involved in partnerships/joint ventures, please supply the names of the partners, their percentage of ownership and how they are accounted for in your accounting records.

** If applicable, add here any specific questions as per attached list of additional questions ** 1.3 a) Please indicate if there are more than one Business Entity (BE) within your legal entities structure.

b) As well, please identify each legal entity that is excluded from the consolidated/combined results, i.e. shell entities. 1.4 Please supply or confirm the Business Number (BN) for each company, as assigned by Canada Customs and Revenue Agency (CCRA). 1.5 Please identify and/or add any legal name changes, acquisitions, disposals or amalgamations of companies by reference to the Business Entity Report(s). If any, indicate on that Report the date of the transaction and which other companies were involved.

** If applicable, add here any specific questions as per attached list of additional questions **

STC/BUS 525-60422

Attachment 2 – Page 2 2. Operating Entities Structure 2.1 Using the Business Entity Report(s) and/or the organizational charts, please confirm the operational structure (divisions, business units, departments, business segments, etc.) for each legal entity indicating their respective operating location address (es), their principal industrial activity, their accounting data availability, their gross revenue value and finally their maximum number of employees (within a 12 month period). (A copy of your own organizational/operational structure would be useful.) 2.2 For discontinued operating entities, please indicate on the attached Business Entity Report(s) the date of the closure or if sold, the date of the sale together with the name of the acquiring business. 2.3 For operating entities not shown on the attached Business Entity Report(s), please use Attachment 3 for each missing unit (location). This should include any other commercial business operations that are considered separate business units, i.e. transportation services, communication services, laboratory services, E-Commerce, Recycling Operations, Commodity Contract Dealing, etc. 2.4 Please explain how your corporate services and/or any other internal support services are allocated or charged back (chargeback – internal transaction) to other internal entities, divisions and/or business units, etc.

** If applicable, add here any specific questions as per attached list of additional questions ** 2.5 Please confirm if there are intercompany transactions. When applicable, indicate which entities are involved and to what extent, size and frequency. 2.6 Please confirm your fiscal year end.

STC/BUS 525-60422

Additional Questions (if needed)

Questions to be covered by Profilers/Analysts in the Delineation of Support Services Production Entities and their Accountability.

These questions are to confirm if there are inter-office billing (chargeback – internal transactions) for

Support Services Rendered between Departments/Divisions where credits and/or debits are recorded in each of the accounting unit involved.

1. Manufacturing / Wholesale (Goods Purchased for Resale – GPRS) Divisions and /or Operations: Describe the activity and process of each production entity delineated. Under each division of the enterprise (company) are there goods (products) that are sold through the sales offices/distribution centers/head office that are company products but are not manufactured by the company’s plants in Canada? Are these transactions recorded / accounted for (debit - credit in the accounting units involved) such as at the manufacturing plants or are they accounted for separately at the sales offices / distribution centers / head office being accounting units? Are there dedicated employees at the accounting unit level for this process (activity) – [wholesale – GPRS]? What is the value of the sales that is attributed to this process (activity) for this accounting unit? What are the major commodities included in these transactions and their respective percentages (for the wholesale - GPRS)? Does each division prepare full or simplified financial statements? If not, what are the internal financial statements prepared at the divisions/plants/accounting unit level? 2. Corporate Head Office: Please describe the processes or activities that are carried out at the head office. Does this accounting unit use the chargeback method (credit and/or debit recorded in each of the accounting units involved such as Divisions/Business units, etc.) for the services they provide to internal users? Is there a residual amount (costs) not allocated back (chargeback) to internal user units? 3. Distribution Centers, Admin offices and/or Sales Offices: Please describe the processes (activities) that are carried out at each of the unit - the Distribution Centers, Sales Offices and/or Admin Offices.

STC/BUS 525-60422

Do these accounting units use the chargeback method (credit – cost recovery through internal transactions and debit to the user’s accounting unit(s) such as Divisions/Business units, etc.) for the services they provide to users? Is there a residual amount (costs) not allocated back (chargeback) to internal user units? 4. General: Are the chargeback costs included in the cost of goods sold or are they shown on a separate cost line on the operating statements?

Other Specific Questions – Where applicable In order for Statistics Canada to recognize and represent business activities on its Business Register (central frame for most surveys) a set of criteria have to be met. This approach will allow the Business and Trade Statistics Program participants (different surveys) to have a common definition of production entities in Canada. In addition, business activity conducted in Canada MUST be linked to an owner. It is the Business Register Division responsibility to ensure that business criteria meet the definition of a production entity. In reviewing the business profile of NAME OF THE COMPANY as well as in conducting analysis of NAME OF THE COMPANY business activities through the review of the YEAR annual report and other documentation (i.e. NAME OF THE COMPANY Web Site), it became obvious that some business activities are not currently represented on the central frame of Statistics Canada Business Register. In order for us to gather the necessary information to define production entities within NAME OF THE COMPANY business activities, we have prepared a list of questions for you to complete for each of your business activity.

Profiler/Analyst: Please prepare a separate sheet for each business activity of the company.

NAME – SEGMENT (BUSINESS ACTIVITY) OF THE COMPANY

Who owns business units? NAME OF THE COMPANY (or subsidiary)

Independent owners Franchisees Who operates business units? NAME OF THE COMPANY

(or subsidiary)

Independent owners Franchisees Who pays employees at business units?

NAME OF THE COMPANY (or subsidiary)

Independent owners Franchisees

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How is control of activities (management) being exercised at business units?

NAME OF THE COMPANY (or subsidiary)

Independent owners Franchisees Who owns inventory at business units?

NAME OF THE COMPANY (or subsidiary)

Independent owners Franchisees

If business units are not owned by NAME OF THE COMPANY (or

subsidiary), where is the accounting done?

100 % of sales recorded by NAME OF THE COMPANY then commission paid back to operator

100 % of sales recorded by Operator then commission paid back to NAME OF THE COMPANY

Operator records only it’ s portion of the sales, etc.

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Attachment 3

UPDATE FORM FOR PRODUCTION / OPERATING ENTITY (BUSINESS LOCATION)

(Confidential when completed)

Division/Company Name

Production/Operating Entity Complete Address

Store or Outlet # Ref

Legal Company Name & Operating/Trade Name (If Applicable)

Description of Principal Industrial Process (Activity)

Effective Date of Change (YY/MM/DD)

Opening (New) Date Closure Date Acquisition Date

From

Sale Date To

Investment Centre (A)

Profit Centre (B)

Cost Recovery Centre (C)

Cost Centre (D) Revenue Centre (E) Accounting Centre Type

(select one type)

Data as at Year End DATE

# of Dedicated Employees

Sales / Revenues (applicable for types (A), (B) and/or (C)) $

Chargeback (C) $ Output (000$)

Assets (A) $

Business Number

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Attachment 4COMPANY NAME

North American Industrial Classification System (NAICS)

Quick Reference

1997 NAICS

CODE DESCRIPTION

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