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STAYING THE COURSE

ANNUAL REPORT 2019-2020

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AN ESSENTIAL ECONOMIC LEVERCAE Capital Rive-Sud was created in 1985 as the Centre d’aide aux entreprises de la Rive-Sud. Today, it is still a non-profit organization, but on a larger geographical scale, and it is still pursuing its original goal of providing key support to local businesses.

In collaboration with its partners - Canada Economic Development and Services Québec (lead partners), Business Development Bank of Canada and Investissement Québec - CAE Capital Rive-Sud’s mission is to be involved with companies to:

• Contribute to the development of the regional economy• Invest in the development of businesses• Promote job creation and retention

Interventions are conducted along two major axes: coaching and financing.

PROFESSIONNALISM

QUALITY COLLABORATION

GOVERNANCEDEVELOPMENT CREATIVITY

RESPECTINTEGRITY

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RStaying the Course Together!Well before the pandemic outbreak at the end of the financial year ended on March 31, 2020, this implicit motto guided our actions, thoughts, and strategies. We anchored and stabilized our team in the face of a full-blown market storm and STAYED THE COURSE TOGETHER.

CAE Capital assumed its select partnership role in assisting and financing businesses and managed to stand firm and to safeguard its achievements in an increasingly competitive market despite difficult conditions:

During the year ended March 31, 2020, CAE Capital weathered through a Canadian economy that was already in slowdown by the end of 2019. Our first three quarters (April 1 to December 31, 2019) were marked by the impacts of trade tensions and global market uncertainty, which adversely affected trade and business investments (fewer international orders and SR&ED investments), sectors that are particularly covered by CAE Capital.

The global drop in interest rates led to an abundance in liquidities. Many new foreign investment funds emerged in the Canadian and Quebec markets, bringing us strong competition.

During our final quarter (January 1 to March 31), we began to feel the effects of the confinement in China. Production shutdowns in China and Europe had an immediate on local business procurement and hence new orders and contracts.

Considering all of the aforementioned, our loan volume objective has not been met. However, we have STAYED THE COURSE by enforcing sound risk management. Our strategy, OPTIMIZING rather than maximizing, has enabled us to end the year with fewer investments indeed, but overall with a healthy portfolio in which losses were minimized and surpluses optimized.

Despite everything, in 2019-2020, working together our team distributed nearly $7.5 million in loans for 43 projects in which 484 jobs were maintained and/or created. Our actions generated investments in excess of $15 MILLION. Since its foundation, CAE has invested $136.3 million in businesses.

During this turbulent period, many of our clients received technical assistance. Furthermore, more than 147 new entrepreneurs received assistance in their pre-entrepreneurial initiatives and 28 entrepreneurs received assistance in the startup stage of their business projects. Since 2008, nearly 1,100 entrepreneurs have received guidance and follow-up assistance in their startup activities through our Cercles d’entraide and Soutien au travail autonome measures. At CAE, more than 3,200 hours of individual coaching and more than 400 hours of group coaching have been given. Added to this are numerous hours of free training provided to our clients. Despite the full employment situation that strongly characterized most of the year, we have contributed to enhancing entrepreneurship and supporting the creation of hundreds of new businesses in our territory. The team developed new projects and many others are now on the drawing board. This increasing synergy enables us to always offer the best to our clients.

As this year ends, I am especially proud of the resilience and creativity of our team members during this unprecedented COVID-19 crisis. Thanks to them, during the very first days of the pandemic, we led the transition to telework and virtual group training sessions without any impact on our clientele. Furthermore, we launched a virtual co-development cell hosted by Annie, our trainer, for which more than 400 participations have been compiled. Ten experts were recruited to discuss cutting-edge topics related to the immediate needs caused by the pandemic. A comprehensive spreadsheet of the assistance measures was developed and has been

continuously updated by Jane, our accounting technician. It is with gratitude that I wish to highlight the extraordinary work of Brigitte, Jane, Annie, Kim, Nassr, and Marie-Eve. I thank you all for your commitment and versatility. Thank you to an extraordinary team!

Finally, I wish to highlight the exceptional contribution of our Board of Directors, which is entirely composed of volunteers. Thanks to our board members, we have deployed new committees and policies, and have enhanced our governance - among the most transparent, equitable and human. Our members’ dynamism, availability and, above all, expertise have enabled us to STAY THE COURSE and to contribute to the optimization and non-maximization strategy of our (human and material) resources, our actions, and especially our yield. I hereby thank all 11 of our Board directors: Louis, Édith, Jean-Pierre, Jean, Jacques, Éléane, Ronald, Toby, Rachel, Mario, and Nathalie, our chairperson. THANK YOU with all my heart! It is a genuine privilege to work with such a high-calibre team. THANK YOU!

I do not have a crystal ball to predict the future in this period of great uncertainty. However, I am sure that by STAYING THE COURSE TOGETHER we can continue to sustain our businesses and our organization going forward into 2020-2021, guided by optimization over maximization and especially by staying the course with our greatest strengths - agility and resilience.

Nathalie DubordExecutive Director

252 hoursof volunteering

More than

CHAIRPERSONNathalie BerthiaumeDirector, Change Management BDC

VICE-CHAIRPERSONLouis DagenaisStrategic Advisor and Manager Information Technology, Governance, Project Management and Marketing Vice-President and Chief Executive Officer, SmartUse Solutions Inc.

SECRETARYÉdith Pion, CPA, CA, M. Fisc.Partner Raymond Chabot Grant Thornton

TREASURERJean-Pierre HudonRetired RBC Royal Bank

DIRECTORSToby Gauld, B.Sc. M.Eng.President Optima Aero and Proprimmo

Eléane Côté, M.Sc.Principal Advisor, Taxation, R&D Credits and Tax Incentives Rio Tinto

Ronald P. GagnonAssociéPartner BDO Canada LLP/s.r.l./S.E.N.C.R.L.

Mario SévignyVice-President, Founder MSB – A subsidiary of Sogeclair

Rachel Auger, CPA-CGAProfessor, Corporate Finance Lecturer HEC Montréall

Jacques LalibertéBusiness Consultant

Jean MatteauConsultant FIER-Longueuil

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THE TEAM1 2

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1. Nathalie Dubord, Executive Director2. Jane Lagacé, Accounting Technician3. Brigitte Demers, Administrative Officer4. Nassr Tribak, Director of Financing5. Marie-Eve Berthiaume, Business Advisor 6. Kim Desaulniers, Business Advisor7. Annie Bahl, Business Advisor

RESULTS as 2020/03/31

CAE’s financing component is a key and complementary tool to traditional financing by financial institutions. Our short-term financing stands apart in its implementation speed and particularly in its AGILITY, which we enforce to meet our clients’ needs.

83 CLIENTS met

35 ACTIVE LOANS

43 Total loans

39 Authorized loans

29 Businesses financed

484 JOBS maintained or created

$ 7.5 millions Total investments authorized

$ 7.5 millions Total investments paid

$ 174,700 Average loan

1.25 fois Mean asset turnover

116 TOTAL REQUESTS

+ $ 15 MILLIONSINVESTMENTS GENERATED

INVESTMENTS SINCE ITS FOUNDATION

$ 136.3 MILLIONS

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CAE Capital has rapidly become an essential player in the financing of our tax credits, both SR&ED and TCEB. Same-week approval and great flexibility during disbursements make it a leading partner.– SERGE CAOUETTE Chair of GLM Conseil

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This year, purchase order financing constitutes 60 % of the financing activities of CAE. We have increased our tax credit financing interventions by more than 8.5 % in order to effectively allocate our investment portfolio and diversify risk.

as

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/31 LOANS DISBURSED

INDUSTRIESFrom April 1st 2019 to march 31st 2020

13 LOANSORDERS

60 % $ 4,495,035

19 BUSINESSES

57 %$ 4,322,379

29 LOANSSR&ED AND TCEB

38 % $ 2,874,935

9 BUSINESSES

41 %$ 3,069,698

MANUFACTURING OTHERSPECIALIZED SERVICES

1 LOANOTHER

2 % $ 142,107

1 BUSINESS

2 %$ 120,000

Edu-Performance is a technology development enterprise that produces software with potentially long development cycles. Most of our clients are from the corporate and government sectors and we often have to adapt our platforms to the individual needs of those organizations. That often leads to critical cash flow imbalances. We are pleased to be able to count on CAERS, which, over the past 20 years, has always been there to back us. I also wish to highlight the exemplary professionalism and kindness of its members with whom it is a constant pleasure to do business. Whatever issues we may face, they are always there to find the solution that enables us to move forward. Thank you to all the CAERS team! – ANDRÉ GOLI, CEO, Edu-Performance

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CAE CAPITAL has financed 975 projects and has invested nearly $ 136.3 million, generating nearly $ 354 million in economic benefits. Thanks to its interventions, CAE has helped to create or retain 484 jobs this year and 9,449 jobs since its creation.

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$ 136,258,864Total

This year, once again, CAE Capital assisted and supported us in our local and international projects. The speed in providing financing and their invaluable advice are major assets for Therio Innovation. They offer an outstanding service that no other bank can provide. Furthermore, every piece of advice we receive makes us better entrepreneurs going forward into an increasingly challenging and stimulating future. Thank you!

– LUC DORION, P.Eng. Therio Innovation Vice-President Finance and Administration/Engineering

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COACHINGCoaching is also a significant part of our service offer. To achieve this mandate, we prioritized two measures in partnership with Emploi-Québec, specifically the Cercles d’entraide Rive-Sud and Support for Self-Employment for the MRC de la Vallée-du-Richelieu and for the MRC de Rouville.

Thank you for your assistance in my endeavour. Your attentiveness and sound advice are always very constructive. Your faith in my project is greatly appreciated. I have built my business at last. It is invaluable to me. It is a guarantee of personal independence. No matter how slow things go, they will always pick up. I have learned a lot and I will continue to do so. It is super stimulating.– BRIGITTE CANTIN, BIndD Vox & Oz, Co-Founder Associate Industrial Designer Participant in the Cercles d’entraide and STA programs

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CERCLES D’ENTRAIDE RIVE-SUD

The Cercles d’entraide Rive-Sud are intended for those who wish to engage in a group entrepreneurship initiative in which mutual assistance and peer cooperation play an essential role. Group training is offered in a sequence of 10 workshops. Participants reinforce their entrepreneurial skills and aptitudes, learn about the different stages in launching a start-up using adapted tools, and confirm the feasibility and viability of their project. They also benefit from assistance and direct personalized interventions to answer their specific needs and address specific components of their projects. These various interventions help participants to foster the implementation, survival, and structure of their businesses, and to start on a solid foundation.

Summary of resultsMore than 2,000 hours of individual and group assistance

66%

women

10 groups trained

(8 groups in Beloeil and 2 in Longueuil)

on pre-startups.

Total of 147 participants

300 hours dedicated to pre-startup

training

45 hours of direct coaching

per client

CERCLES D’ENTRAIDE RIVE-SUD

Socio-economic insertion rate of new clients

CERCLES D’ENTRAIDE RIVE-SUD

Areas

CERCLES D’ENTRAIDE RIVE-SUD

SUPPORT FORSELF-EMPLOYMENT

The self-employment support measure aims to provide assistance through guidance, technical advice, and financial support to eligible candidates so that they can achieve independence by creating or developing a business, or by becoming self-employed.

Summary of results20 new enterprises

assisted for a total of 21 entrepreneurs

57%

women

76%with college

(CEGEP) or university

degrees

38%

aged 35 years or under

61%had a personal income of less than $20,000

23jobs

created

VALLÉE-DU-RICHELIEU

SUPPORT FORSELF-EMPLOYMENT

Insertion rate Areas

VALLÉE-DU-RICHELIEU

VALLÉE-DU-RICHELIEU

SUPPORT FORSELF-EMPLOYMENT

SUPPORT FORSELF-EMPLOYMENT

ROUVILLE

Summary of results7 new businesses assisted

43%

women

57%with collegial (CEGEP) or university degrees

43%aged

35 years or under

86%had a personal

income of less than $ 20,000

7jobs

created

SUPPORT FORSELF-EMPLOYMENT

Insertion rate Areas

ROUVILLE

SUPPORT FORSELF-EMPLOYMENT

ROUVILLE

What an extraordinary experience! A generous, dedicated team focused on entrepreneurial success! Thanks to CAE, my project is much more solid, clear, tangible, and elaborated. I am ready to launch my business. The CAE team has made a significant difference to my start-up, not only with the development, writing and production of my business plan (with its 10-week training and the STA component ), but also by guiding me in the right direction with advice, and assistance for business success. Seriously CAE, thank you for everything! You’re incredible. – CYBELLE BIARD Nature & Gratitude Participant in the Cercles d’entraide and STA

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SUPPORT FORSELF-EMPLOYMENT

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Training and Workshops offered by CAE Capital

35 supplementary andcomplementary training sessions were offered this year for a total of 105 hours.

More than 15 topics were covered, including:Legal aspects Market studies Marketing Online marketing Financial forecasting Taxation Professional Facebook profiles The art of selling Social network action plan Business Instagrams Digital transformation and automation LinkedIn

Committees, Tables and Boards of Directors• Ambassador for LADN Montérégie 2020• Ambassador for the 2020 female leadership cohort of the CCIRS• Member of the Table des intervenants of the MRC de Marguerite d’Youville

and of the MRC de la Vallée-du-Richelieu• Member of the labour table of the MRC de la Vallée-du-Richelieu and

of the MRC de Rouville• Member of the economic development table of the MRC de la Vallée-du-Richelieu.• Member of the Comité des permanents of the Réseau des SADC+CAE du Québec• Member of the Table de concertation en immigration of the Vallée-du-Richelieu• Member of the Comité mentorat of the Vallée-du-Richelieu

Membership• Member of the Association en planification fiscale et financière (APFF)• Member of the Association of Quebec Women in Finance (AFFQ)• Member of the Chambre de commerce et d’industrie Vallée-du-Richelieu• Member of the Chambre de commerce et d’industrie de la Rive-Sud• Member of the Réseau des SADC + CAE du Québec

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SLead Partners• Business Development Bank of Canada (BDC)• Canada Economic Development (CED)• Services Québec

Strategic Partners• Canada Revenue Agency (CRA)• Capital Réseau des SADC et CAE • Regional municipal counties (MRCs) de la Vallée-du-Richelieu and Marguerite d’Youville• Développement économique Longueuil (DEL)• Expansion PME• Investissement Québec • Regroupement des CAE autonomes du Québec• Revenu Québec• Réseau des SADC et CAE du Québec

Business Partners• Consultants• Brokers• Private funds• Regional funds• Financial institutions• Professionals• Venture capital firms

RIVE-SUD

270, boulevard Sir-Wilfrid-LaurierBureau 200Beloeil, QC J3G 4G7514 656-5650 • info@caecapital.com

caecapital.comcaerivesud.ca

English version is available upon request CO

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