60th

Chartered Accountants of Canada’s

CORPORATEREPORTING

AWARDS2011

Would you rather be asking or answering

the tough questions?

When it comes to corporate governance,every decision matters.

That’s why we, at the Canadian Institute of Chartered Accountants (CICA),

lead the way in developing best practices critical to your business. Whether

it’s risk oversight, IFRS transition or executive compensation, our leadership

and support can make the difference. Canada’s Chartered Accountants

have what it takes to help you make every decision a better one.

Visit us at www.cica.ca

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Be the Best

Corporate Reporting Awards Program

Celebrates 60 Years  of ExcellenceMi Mi Tsui, Corporate Reporting Awards program director

This year marks the diamond anniversary of the Chartered Accountants of Canada’s Corporate Reporting Awards (CRA). When the program started in 1941, the focus was the annual or financial report. Over the years, the program has evolved to keep pace with the capital markets and the expectations of Canadian investors for greater transparency and better information on which to base their investment decisions. Today’s CRA program includes separate categor-ies for corporate governance reporting, elec-tronic disclosure and sustainable development reporting, in addition to financial reporting. The criteria have helped drive the development of best practices in all of these areas, which are now regarded as essential components of the corpor-ate reporting model.

The only national program shining a spotlight on Canada’s best corporate reporting models, the awards program offers publicly listed compan-ies and federal and provincial Crown corpora-tions a unique opportunity to demonstrate pride and confidence in their corporate reporting.

Companies that enter are striving to be the best by submitting reports to an independent panel of judges who are experts in their respective areas.

“Successful companies understand it is good business to get their story out in a useful, under-standable, relevant and reliable way,” said Kevin Dancey, FCA, president and CEO, Canadian Institute of Chartered Accountants (CICA). “The awards program goes beyond identify-ing and honouring the best reporting practi-ces; it aims to spread the best to the rest.”

We commend the 78 TSX issuers and Crown cor-porations for participating in the awards program this year. We also congratulate the winners.

ThE AWARDS

INDUSTRY SECTOR AWARDS

Nine industry sector awards were given to TSX issuers who received the highest average ranking in the four judging categories: financial reporting, corporate governance disclosure, electronic dis-closure and sustainable development reporting.

TELUS Corporation

Overall Award of Excellence in

CorporAte reporting

TELUS Corporation receives the Overall Award of Excellence for Corporate Reporting 2011 for ranking first in financial reporting, corporate governance disclosure, sustainable development reporting and electronic disclosure among indus-try peers and for being among the top scorers in the above individual judging categories, regard-less of industry sector.

TELUS continues to maintain a high standard of financial reporting, providing meaningful and transparent information to readers. There is a tone from the top that is set with insightful messaging to investors from the CEO. The annual MD&A builds on CICA’s best practice guidelines and contains an exceptional discussion of manage-ment’s perspective on performance and financial conditions.

A critical snapshot of TELUS’ corporate social responsibility (CSR) strategy and performance is a key strength of the sustainable development reporting. Multi-year data, presented alongside

targets and combined with contextual information such as industry benchmarking, provide a trans-parent view of what achievements and challenges it is facing. With external assurance provided on selected performance indicators and a self-declaration of a GRI A+ report level, readers are given confidence that the report is comprehensive and that the data quality and accuracy are not an afterthought.

The website is strong and demonstrates best practices. Navigation is easy and multiple formats are available for downloading. There is great use of multimedia through presentations and social media networks to keep investors up to date on issues.

The corporate governance disclosure includes detailed information on the orientation and continuing education programs for directors. Governance goals and achievements are disclosed along with the process of the annual board review, a strong ethics policy, detailed stock options plan and descriptive executive compensation chart.

teLus Continues to mAintAin A high stAndArd oF FinAnCiAL reporting, providing meAningFuL And trAnspArent inFormAtion to reAders.

Tim Hortons Inc.

The Tim hortons report provides all the infor-mation a reader needs to clearly understand the company. The report is easy to read and follows a logical progression. The investment story is very well done. The MD&A provides an analysis and explanation of operational and financial results and a reconciliation of non-GAAP measures to GAAP results. The company provides insightful explanations of performance against targets, goals and objectives. There is good use of commentary to explain results in the scorecard and the items that impacted the success or inability to achieve them. An exten-sive discussion around risks is also provided.

The annual report online is a great example for others to follow. There is a PDF report build-ing tool with the ability to add notes. The site is optimally used to enhance the company’s story. The financial statements are thorough and the annual report on Form 10-K is available in XBRL. There is good disclosure of supplement-ary information including links to governance.

Tim hortons clearly articulates a sustainability strategy with a three to five year roadmap. The sustainability and responsibility report summary in the annual report links to the online version. Online, the sustainable development reporting is well designed and easy to follow. It offers many interesting elements such as the “Anatomy of Our Cup” and the “Green Restaurant Design” features. The company’s extensive efforts in managing the impacts of the supply chain are demonstrated.

The corporate governance disclosure includes detailed information regarding director independ-ence, director biographies, attendance records, share ownership guidelines and other board mem-berships. The company’s approach to developing a set of corporate governance principles is com-prehensive. There are details regarding outside, independent compensation consultants, with fees and services clearly outlined.

Award of Excellence for Corporate Reporting in

Consumer produCts

THE COMPANY PROVIDES INSIGHTFUL EXPLANATIONS OF PERFORMANCE AGAINST TARGETS, GOALS AND OBJECTIVES.

SNC-Lavalin Group Inc.SNC-Lavalin has produced an excellent report that features an overview of the company, its strategies, competitive advantages, achieve-ments and challenges. The overall investment proposition is clear. There is a highlights section in the MD&A with information presented in such a way as to draw the reader to its key sections. The scorecard financial data is thorough, with a complete and concise summary of key perform-ance indicators, which includes comparisons against objectives, ratings and a discussion on contributors and/or detractors. There is good risk disclosure and an excellent treatment of IFRS.

The company’s online presence is very effect-ive, with a site that has good navigability. The online annual report is segmented in a way that makes all the sections easy to find. Similarly, the web versions of quarterly reports are also segmented and bookmarked for ease of use.

SNC-Lavalin’s sustainable development reporting includes the establishment of meas-urable safety objectives. The company has a number of health and safety initiatives in place and provides significant support to commun-ities. It is evident that the company assists its clients in minimizing environmental impacts.

The corporate governance disclosure includes detailed information on directors’ biographies with a background on each director, board and committee meeting attendance, independence discussion and analysis, and compensation. The process of reviewing the performance of the board is comprehensive and includes a detailed flow chart of the steps performed in the review. There is also a detailed code of ethics policy.

Award of Excellence for Corporate Reporting in

diversiFied industries

There is good risk disclosure and an excellenT TreaTmenT of ifrs.

BMO  Financial GroupBMO Financial Group’s report is a winner again this year. The theme is consistent throughout and includes relevant visuals that make the publica-tion engaging and readable. The look of the report is fresh and creative while remaining serious and professional. BMO presents full disclosure in a clear and timely manner. The vision, mission and stra-tegic priorities are defined and complemented with a discussion on the business. The management discussion is thorough and geared to the future.

The content of the report addresses both negative and positive aspects and both long- and short-term goals, particularly for earnings per share and return on equity. There is a good discussion of factors that could affect future results in the MD&A. The accounting policies and future chan-ges such as IFRS are explained in detail, as are the continued risks and uncertainties.

Online, BMO provides numerous features (con-test, pop-up, charts, PDF and searchable hTML) to ensure that anyone who wants to understand the bank can get what they need. Consistent messages on company performance, informa-tion, facts and current updates are all easily found on the site. The interactive annual report pro-vides information in a variety of formats for easy downloading.

The sustainable development reporting is clear with a corporate responsibility section that is very easy to find and navigate. There is a clear commitment to corporate social responsibil-ity (CSR), with a clear organization structure for CSR outlined in the annual report. The informa-tion provided is organized with a logical flow.

The proxy circular provides detailed director statistics including ownership and attendance at meetings. The annual report also includes a dedicated section on corporate governance.

Award of Excellence for Corporate Reporting in

FinAnCiAL serviCes

BMO presents full disclOsure in a clear and tiMely Manner.

Catalyst Paper CorporationCatalyst Paper’s report is clear and consistent. The strategy is conveyed near the beginning of the printed document, with a logical pro-gression that follows through the report. The message to investors is succinct in its presen-tation, with top line and bottom line financial information graphically presented using five years of historical data. The MD&A is detailed and gives an excellent presentation of strat-egy that includes key performance indica-tors against key 2010 objectives. There is also a good and thorough discussion of risks.

An abundance of useful content (including finan-cials, webcasts and presentations) is provided online for potential investors. A useful glossary of terms helps investors who may not be famil-iar with the industry to understand and evaluate different pieces of information. The navigation is easy throughout. Financials are well organized and can be quickly downloaded. Presentations and webcasts are easily available on the main site and have been uploaded using YouTube.

There is a great overview of environmental sus-tainability with a focus on the different business processes and how sustainability affects each of them. Catalyst provides a snapshot of performance over time (2006 to 2010) with easy-to-read data tables and graphs. There is visual connection to the annual report and some connectivity between sustainability priorities (safety, green product development and GhG emission reductions) and the MD&A. Overall, the coverage of environmental, social and economic issues in the report is com-prehensive and supported by detailed quantitative analysis and qualitative discussions.

The corporate governance disclosure includes a detailed and user-friendly compensation commit-tee work plan. The board of directors’ mandate is comprehensive and includes details on board responsibilities. Position descriptions for the direc-tors, chair committees, chair of the board and the CEO are well disclosed and easy to find on the company site.

Award of Excellence for Corporate Reporting in

Forest produCts

The message To invesTors is succincT in iTs presenTaTion.

Newalta CorporationNewalta’s report provides a strong discussion of the company’s performance and investment merit. Readers can understand the company and what it does. The investment proposition is sup-ported by effective charts, photos and graphic elements. The contextual and strategic informa-tion is especially prominent on the company’s website. Newalta has made a special effort to have its website supplement and complement its annual report and financial statements.

The investor relations section is simple, unclut-tered and intuitive. The site is used as a com-munications vehicle in its own right, with signifi-cant content created for use on this medium. The navigation is consistent with a concise menu structure. There is a helpful matrix chart of the committee composition utilizing symbols to

reflect the chair and members of each of the audit, compensation, corporate governance and nominating, and environmental, health and safety committees.

The corporate governance section of the website summarizes the company’s ethics policy and the code of business conduct and ethics and ancil-lary disclosure documents. There is also a well-disclosed executive compensation discussion that includes three years of comparative data for each director.

Newalta has a sustainability steering committee that ensures sustainability initiatives are aligned with company values. There is a clear division of sustainable development reporting (business, people, environment, community and industry).

Award of Excellence for Corporate Reporting in

LiFe sCienCes/teChnoLogy

Newalta’s report provides a stroNg discussioN of the compaNy’s performaNce aNd iNvestmeNt merit.

PotashCorp

PotashCorp has again produced a strong report that is balanced in terms of visual presenta-tion of data and financial information with text. The large breadth of information is well organ-ized and communicated in a strategic man-ner. The scorecard disclosure is very strong in both printed and online versions. Goals are clearly stated and measurable. Results are clearly graded and balance is given to all met-rics. There is considerable industry informa-tion provided that tells a story of PotashCorp in terms of growth prospects and risks for the company and the industry as a whole. The MD&A includes an overall strategy, business segment overviews and a discussion regarding risk man-agement. The IFRS section is also very strong.

The company provides all the essential com-ponents that make up a best practice web-site. This includes a great interactive tool and a “Why Invest?” section that highlights the investment proposition. The site is easy to navigate and data is extremely well organized. Innovative uses of technology include excel-lent filtering tools, a data tool widget that allows users to view recent and historical informa-tion, and a library that allows easy access to financial documents and reports. There is also a unique and original use of “callout links” that explain key terms. This site also uses social media (Facebook and Twitter), which are easily accessible and prominent on the home page.

The sustainable development reporting is thor-ough, with clear links in the sustainability report to other documents in the overall reporting package. PotashCorp is one of the few compan-ies to post its full management standard online. The description of corporate social responsibil-ity values and strategy is clear, with links to the policies. There is good use of top management responses to interview questions throughout the summary report, which demonstrate a commit-ment and alignment with corporate strategy. As well, there is good coverage of GRI indicators.

Award of Excellence for Corporate Reporting in

mining

the large breadth of information is well organized and communicated in a strategic manner.

There is a good discussion of risks in The Md&a and The fuTure-orienTed financial inforMaTion is superb.

Suncor  Energy Inc.Suncor has produced a report that allows the investor to understand the company’s strategy and its ability to deliver results. Graphs and financial highlights are excellent and easy for readers to understand. The message to investors is balanced and candid. Suncor also provides a scorecard that outlines long-term perform-ance goals and how they will be delivered. There is a good discussion of risks in the MD&A and the future-oriented financial information is superb. As well, there is good differentiation of financial statements from the MD&A, which makes it easier to find specific information.

The information provided by Suncor online is easy to find. The use of cookie-crumb trails, fast-loading hyperlinks and user customiza-tion all facilitate site navigation. There are good uses of RSS feeds and social media (Facebook, IR blogs, LinkedIn and YouTube.) The site also provides a graph of the stock price over the prior year, with hyperlinks to the investor toolkit.

The 2011 Report on Sustainability is well exe-cuted and uses industry benchmarks and sys-temic indicators to put performance in context. The Summary Report provides an overview of Suncor’s sustainability strategy and performance, focusing on the most material issues.

Suncor’s corporate governance disclosure includes descriptive and well-documented direc-tors’ biographies and a position description for the CEO. The compensation regime is complete and displayed in a chart format that eases read-ability and comprehension. Suncor also provides detailed information on the minimum share ownership guidelines for executives, the audit committee charter and directors’ independ-ence. The company’s principal risks are clearly stated, in addition to suggested methods on how these risks are identified and addressed.

Award of Excellence for Corporate Reporting in

oiL And gAs

Enbridge Inc.

Enbridge’s comprehensive report provides a con-cise summary of business assets and activities, and a detailed and informative MD&A, as well as all of the required disclosures for the financial statements. The reader’s attention is maintained with the effective use of visuals (photos and charts). All the information (vision, strategies, key performance drivers, market risks) is discussed in plain language. The “Corporate Information Book” is by far the most all-inclusive annual document amongst its peers. All the information, from the Management Information Circular and annual report to the Annual Information Form, is in a single document for ease of reference by the reader. There is clear disclosure in the finan-cial statements about the company’s position regarding future transition to IFRS versus adopt-ing U.S. GAAP. There is a clear and focused mes-sage to investors, balancing past achievements with future prospects. The message also provides suitable acknowledgment of the two leakage incidents and discusses the company’s willing-ness to learn from mistakes.

The investor relations information provided online is easy to navigate, with quick access to information. The site uses consistent messaging

on the company’s performance and keeps the online data up-to-date and well-organized. The site also provides a useful investor calculator and analytical tools function.

Enbridge’s sustainable development reporting is comprehensive, with excellent overall disclosure. There is a discussion and context for each per-formance indicator reported, including industry benchmarking for some. The commitment to social responsibility is communicated in various sections of the report and there are strong links with environmental, social and governance (ESG) performance and strategy, risk and financial performance.

The company’s corporate governance disclosure includes a process for evaluating the board’s effectiveness and a process for monitoring compliance with the code of conduct. There is detailed disclosure regarding the independent consultant retained for compensation purposes (including identity, fee and description of work provided). Additional disclosures include a com-pensation committee work plan, whistleblower instrument and ethics hotline.

Award of Excellence for Corporate Reporting in

reAL estAte/utiLities And pipeLines

There is a clear and focused message To invesTors, balancing pasT achievemenTs wiTh fuTure prospecTs.

FinAnCiAL reporting: best prACtiCesBill Buchanan, FCA is the overall judging co-ordinator and lead financial reporting judge representing the Canadian Institute of Chartered Accountants (CICA)

Chuck Midgette is the lead judge for financial reporting representing the Canadian Investor

Relations Institute (CIRI)

CICA introduced the Corporate Reporting Awards (CRA) program 60 years ago to highlight and encourage excellence in annual reporting. The judges at the time looked at documents that, by today’s standards, would be considered minimal.

Typically, the first annual reports contained little more than the financial statements. In fact, before the Management’s Discussion and Analysis (MD&A) became a regulatory requirement in 1987, the financial statements and notes represented the only mandatory elements of an annual report. The letter to shareholders and other traditional editorial elements had evolved well before the MD&A only because most companies realized that reporting numbers without context was an incom-plete and often risky practice. That is why CICA has always believed that the best reports contain not just clear and full financial disclosure, but a balanced assessment of a company’s progress and prospects.

The role of the annual report has changed more rapidly in recent years in response to evolving regulatory disclosure and technological advan-ces. Within this environment, investors still have a vital need for the information contained in the annual report, but the manner in which it is provided has changed tremendously. For most companies, the printed report is still a centre-piece of IR communications. But increasingly, it is part of an overall communications strategy that recognizes the powerful and unique benefits of

the IR website and other electronic media. These include immediacy and capacity of information as well as a host of technological advantages that are enabling companies to tell their stories with greater impact.

In 2003 this trend was officially recognized in the renaming of the CICA Annual Report Awards to today’s Corporate Reporting Awards, which includes recognition for excellence in electronic disclosure. But there have also been many changes with respect to the judging cri-teria within the financial reporting category itself. These have included separate and addi-tional marks for the quality of news releases, quarterly reports and online annuals as well as a growing proportion of marks allotted for effective use of web technology. Today, it is virtually impossible to win the overall Award of Excellence in Financial Reporting unless the traditional print report is complemented by a set of high-quality print and online documents.

The recipient of this year’s Award of Excellence in Financial Reporting, PotashCorp, did a great job in each of these areas. But more importantly, each element played its assigned role in support of an over-arching investor communications strategy.

The print and online versions of the report complement each other and work together to encourage readers and visitors to find out more about the company. The information pro-

vided online is prepared specifically for that medium and there are many interactive capabil-ities to enhance the visitor’s experience.

PotashCorp, BMO Financial Group (honourable Mention in Financial Reporting) and the industry sector award winners also displayed numerous other best practices that caught the eyes of our judges.

here are the top five trends they noted this year in the top ranking annual/financial reports:

1. The Investment Proposition The leading annual reports have a section that clearly communicates the company’s strengths, competitive advantages and invest-ment merit. The best reports actively draw conclusions for investors and back them up with bold text and prominent visual evidence.

2. Financial Statements that include XBRL XBRL (eXtensible Business Reporting Language) allows the information in financial documents to be searched, downloaded into spreadsheets or reorganized for analytical purposes. With XBRL, financial statements in foreign languages can be translated into English.

3. The Scorecard Disclosure Winning companies provided specific infor-mation on achievements (and disappoint-

ments), compared with previously published specific goals. They also provided specific measurable information on future goals, objectives and targets.

4. Electronic Disclosure Excellence in business and financial reporting on the web requires continuous innovation. Great navigation tools, easily accessible data and the flexibility to format data in ways the user needs are critical. But the web is not only about data availability, it’s also about interaction. The use of multimedia and social media tools allows companies to start a con-versation with the investor.

5. Management’s Discussion and Analysis The MD&A follows CICA’s best practice guide-lines. The six principles and a five-part frame-work of recommended disclosure practices help companies effectively tell their story to investors.

Did you know ...

• Annual reports are not legally required in Canada, except for Quebec companies.

• GAAP for financial statements was not required until 1972.

• The MD&A was first required by the Ontario Securities Commission in 1987.

MiningAgnico-Eagle Mines LimitedAgrium Inc.Barrick Gold CorporationCameco CorporationhudBay Minerals Inc.Inmet Mining CorporationNovaGold Resources Inc.PotashCorp

Consumer ProductsCanadian Tire Corporation, LimitedEmpire Company LimitedLoblaw Companies LimitedThe North West CompanyTim hortons Inc.

Communications and MediaBCE Inc.Bell Aliant Regional Communications Inc.Cineplex Inc.TELUS CorporationThomson Reuters Corporation

Oil and GasARC Resources Ltd.Canadian Oil Sands Limitedhusky Energy Inc.Nexen Inc.Petrobank Energy and Resources Ltd.Suncor Energy Inc.Talisman Energy Inc.

Life Sciences/TechnologyCGI Group Inc.Newalta CorporationNordion Inc.

Financial ServicesATB FinancialBMO Financial GroupCIBChome Capital Group Inc.Laurentian Bank of CanadaPower Financial CorporationPower Corporation of CanadaRoyal Bank of CanadaScotiabankTD Bank Financial Group

List oF entries

Real Estate/Utilities and PipelinesBoardwalk REITBrookfield Office PropertiesEnbridge Inc.Inter Pipeline FundPembina Pipeline CorporationTransAlta CorporationTransCanada Corporation

Diversified IndustriesBombardier Inc.Medical Facilities CorporationSNC-LavalinSavanna Energy Services Corp.Stantec Inc.Finning International Inc.Trinidad Drilling Ltd.Viterra Inc.

Forest ProductsCascades Inc.Catalyst Paper CorporationDomtar Corporation

Large Federal CrownsBusiness Development Bank of CanadaCanada Deposit and Insurance CorporationCanada Mortgage and housing CorporationCanadian Wheat BoardCBCExport Development CanadaFarm Credit Canada

Small Federal CrownsCanadian Tourism CommissionDefence Construction CanadaNational Capital CommissionPacific PilotageRoyal Canadian MintTelefilm Canada

Provincial CrownsAlberta Pensions Services CorporationInsurance Corporation of British ColumbiaNalcor EnergySaskatchewan Telecommunications holding Corporation

Saskatchewan Transportation CompanySaskatchewan Workers’ Compensation BoardSaskEnergyWorkers’ Compensation Board of Nova ScotiaWorkSafeBC