updated 30-11-05 2 mission stimulate the québec economy by making strategic investments that will...
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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)
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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
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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)
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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
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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
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A partner that meets the needsof business
$
Seed
Start-Up
Consolidation
Expansion
Export
IPO
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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 %
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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.
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Economic trainingin the workplace
Only the Fund offers this added value
Goal: Make employees active participantsin the company’s growth
Philosophy:
- Trust employees’ intelligence
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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