SGF publishes its 2006 Annual Report
SGF records a profit for the second consecutive year and invests $233 million in Québec’s economy
Montréal, June 6, 2007 – Société générale de financement du Québec (SGF) today made public its 2006 Annual Report.
“We designated 2006 as a year of recovery, resumption of investment and maintenance of profitability. I am proud to announce we achieved exactly that,” stated SGF President Pierre Shedleur.
In 2006, SGF completed the first full year since adopting its Strategic Plan 2005-2009. “The results for 2006 demonstrate the relevance, value and viability of our business plan. SGF is back at cruising speed and is making a clear and solid contribution to Québec’s sustainable economic development,” Mr. Shedleur added.
SGF maintained its profitability in 2006 with a return of 4.1%, recording an increase over the 3.9% return it posted in 2005. SGF earned $75 million of net income, versus $70 million in 2005.
Economic impact on Québec of SGF’s 2006 projects
Through its involvement in business projects, SGF plays a role in Québec’s economic development, such as by acting as a catalyst for investments that create and maintain jobs and increase Québec’s gross domestic product.
As stated in the Annual Report, during the year SGF invested almost $233 million in projects totalling $800 million. These new investments will ultimately create more than 2,800 person-years of direct and indirect employment.
The projects that SGF takes part in create other spinoffs for Québec’s economy: they enable its partners to market new products, to develop new markets, to acquire technology and expertise and to reinforce the leadership position of Québec’s industries.
Although not obliged to do so in fiscal 2006, SGF made a point of complying with most of the provisions of the Act respecting the governance of state-owned enterprises (S.Q. 2006, c. 59) (the “Act”), which was adopted by the National Assembly with an effective date of December 14, 2006. The Act applies to a number of state-owned enterprises, including SGF, and amends various acts, including the Act respecting SGF (R.S.Q. c. S-17). The Act follows the Québec government’s tabling in the spring of 2006 of a policy statement on the reform of the governance of its state-owned enterprises.
For the first time, SGF’s Annual Report therefore provides information on directors’ attendance at meetings, their remuneration and all the other boards of directors on which they sit.
SGF is also making public this year a report on the activities of the Committees of the Board of Directors, namely the Audit Committee, the Human Resources Committee and the Governance and Ethics Committee.
Lastly, the 2006 Annual Report contains information on the remuneration of the five best-paid officers, as required by the Act.
“We welcomed the adoption of the Act respecting the governance of state-owned enterprises and we felt it was incumbent on us to comply with it in 2006 to the extent possible. For us, it was a matter of integrity, transparency and effectiveness,” Mr. Shedleur concluded.
Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, with emphasis on the industrial sector, in co-operation with partners and on standard profitability conditions, in accordance with the economic development policy of the Québec government.
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Senior Adviser, Communications and Media Relations
Société générale de financement du Québec