CCCE_2012_AR_Eng-FINAL

INNOVATION
PRODUCTIVITY
PROSPERITY
ANNUAL REPORT 2012

CCCE members collectively lead
companies with:
$4.5
trillion
in assets
$850
billion
in revenues
1.4
million
employees
$3
billion
invested
annually in R&D
Source: BHP Billiton Canada Inc.
Source: Coril Holdings Ltd.

ANNUAL REPORT 2012
CANADIAN COUNCIL OF CHIEF EXECUTIVES 1
CONTENTS
The Canadian
Council of
Chief Executives
brings CEOs together
to shape public policy
in the interests of a
stronger Canada and
a better world.
Source: Husky Energy Inc.
2 Message from
the Chair
4 Message from the
President and CEO
6 Taking the Lead
16 Year in Review
21 Events Publications
22 Board of Directors
24 Membership
29 Council Staff
Cover photo courtesy of Canadian Light
Source Inc.

ANNUAL REPORT 2012
CANADIAN COUNCIL OF CHIEF EXECUTIVES2
Canadians have a reputation for modesty,
but surely the time has come to bury the
old stereotype. When we have something to
celebrate, we don’t hold back. Witness the huge
outpouring of national pride after the success
of Canada’s “Own the Podium” drive at the 2010
Vancouver Winter Olympic Games.
Confidence also seems to be driving Canadians’
views about our country’s long-term economic future.
Since the recession began in 2008, our economy has
continued to perform better than those of most other
major development nations. Our banking system has
been lauded as one of the most stable in the world
and our government finances are in relatively good
condition, with one of the lowest net public debt
levels of any industrialized country.
Prime Minister Stephen Harper recently spoke of
Canada as a “great country rising,” adding that we
are in much better shape fiscally than traditional
economic powerhouses such as the United States,
Europe and Japan. The Prime Minister then laid
down a marker of sorts: the goal of making sure
Canada is among the world’s “next generation of
economic powers.”
Can we do it? Can Canada prosper in a world in
which older powers are struggling, and at a time
when growth and investment are shifting to
emerging markets?
Arvind Gupta certainly thinks so. A professor
of computer science at the University of British
Columbia, Dr. Gupta was one of the founders of
Mitacs, a non-profit research network that creates
opportunities for promising young researchers and
scientists. “Canada has all the advantages to own the
economic podium,” he wrote in the Vancouver Sun
recently. Canada, he added, is blessed with a high
standard of living, strong communities and educated
citizens. We also have a culturally diverse population
and natural resources that are the envy of the world.
Message from the
Chair

ANNUAL REPORT 2012
So we have the potential. Unfortunately, Canada
falls short in two areas that are among the keys to
success in the modern global economy: innovation
and productivity. Despite strong macroeconomic
fundamentals, our country’s performance in both
areas is weak by the standards of other advanced
economies. We need to fix that, or else we risk
long-term economic decline.
In particular, we need to find ways to maximize the
economic spinoffs from Canada’s impressive levels of
public investment in research and development. Our
country is a world leader in terms of government
spending on university research, yet in a 2007
comparison we ranked 14th
out of 17 countries based
on the number of patents per million population.
To put it another way, we are clearly failing when it
comes to the commercialization of knowledge.
As an organization composed of the CEOs and
entrepreneurs of Canada’s leading companies,
the Canadian Council of Chief Executives is keenly
aware of the importance of improving Canada’s
innovation record. In 2010, we helped forge a
coalition of 50 leaders from business, academia
and supporting organizations to develop a national
innovation strategy. Later, CCCE member Tom
Jenkins of Open Text Corporation was selected
to lead an independent review of federal support
for research and development.
Dr. Gupta, who served on the federal review panel,
says there are signs that the pace of collaboration
between Canadian businesses and university
researchers is picking up. Since 2007, Canada has
climbed from 15th
to 7th
place in a ranking of countries
with extensive university-business collaborations.
And among the 34 developed countries that comprise
the Organisation for Economic Cooperation and
Development (OECD), Canada is number one in the
share of university research expenditures financed
by business.
In this annual report, we profile more than a
dozen recent and ongoing RD initiatives involving
CCCE member companies in close partnership
with universities and government. They vary widely,
from a project aimed at protecting sensitive whale
populations to the use of advanced simulation
technology to train the healthcare professionals
of tomorrow.
As a country, we have our work cut out for us.
Emerging economies such as China, India and Brazil
are raising their own productivity levels, graduating
large numbers of scientists and engineers, and
improving their technological capacity.
Canadian companies and workers are more exposed
than ever to global competition. But for those with the
will and ambition to succeed, the opportunities in the
global marketplace have also never been greater. It’s
time to set our sights on the podium, identifying
our strengths and working together to create the
conditions that will enable Canadian players to
become global champions.
Hartley T. Richardson
Chair
Canadian companies and workers are more
exposed than ever to global competition. But
for those with the will and ambition to succeed,
the opportunities in the global marketplace
have also never been greater.

ANNUAL REPORT 2012
In the economic history of our country,
few dates hold as much significance as
October 4, 1987. On that day, a quarter century
ago, representatives of Canada and the United
States completed negotiations on the Canada-U.S.
Free Trade Agreement (FTA), a ground-breaking
and, at the time, fiercely controversial treaty that
put both countries at the leading edge of global
trade liberalization.
The FTA eliminated tariffs and reduced many non-
tariff trade barriers, but its real significance was that
it launched an evolutionary process that continues
to this day. It helped to change Canadians’ mindset,
reversing decades of inward-oriented economic
policies. And it inspired – in many cases compelled –
growing numbers of Canadian companies to look
beyond our borders for sales and opportunity.
From the implementation of Canada-U.S. free trade
in the late 1980s to the 1994 North American Free
Trade Agreement, to current and pending trade
liberalization talks with the European Union, India,
Japan and the Trans-Pacific Partnership, Canadians
are, to an increasing degree, reaching out to engage
with the global economy.
The theme of our annual report this year is
“Innovation, Productivity, Prosperity” – three words
that relate directly to Canada’s international trade
agenda and to the competitive challenges that
Canadian employers face in the global marketplace.
Competition stimulates innovation and compels
companies to become more productive, ensuring
better jobs and a more prosperous future for Canadian
individuals and families. Competition breeds
excellence. It drives companies to invest in research
and development, workplace training and new
machinery and equipment. It forces them to
become more responsive to customer needs.
Message from the
President
andCEO

ANNUAL REPORT 2012
Canada overall has a lacklustre reputation for
business innovation, and our country’s productivity
performance is weak by the standards of other
advanced industrialized economies. But businesses
that are exposed to international competition, or that
aspire to integrate themselves into global value chains,
cannot afford to take anything for granted. To survive
and grow, they must take risks, innovate and adapt
quickly to the ever-changing marketplace.
Elsewhere in this report, we highlight a series of
examples of innovative thinking and practice by
member companies of the Canadian Council of Chief
Executives, often in close partnership with leading
university researchers.
Sometimes the innovation manifests itself in a
new product or a productivity-enhancing business
process. Sometimes it yields an environmental, health
or social benefit. And sometimes it shows up in a new
approach to recruiting and training the highly skilled
workers that are increasingly in demand in the 21st
century economy.
In 1985, a federal Royal Commission led by former
Liberal finance minister Donald S. Macdonald
described the prospect of reciprocal free trade
between Canada and the United States as a “leap of
faith.” Twenty-five years later, the leap has become a
race – a race that Canadian companies run every day,
in markets around the world. They, and Canada itself,
are stronger and smarter because of it.
The Honourable John P. Manley, P.C., O.C.
President and Chief Executive Officer
The theme of our annual report this
year is “Innovation, Productivity,
Prosperity” – three words that relate
directly to Canada’s international
trade agenda and to the competitive
challenges that Canadian employers
face in the global marketplace.

6 ANNUAL REPORT 2012
CANADIAN COUNCIL OF CHIEF EXECUTIVES
A different kind of liquidity
The potential long-term effects of climate change are many and varied:
from higher average temperatures and droughts to more intense rainfall
and flooding. The consequences can include serious property damage,
higher insurance costs, and changes to aquatic ecosystems due
to the thawing of permafrost, fluctuations in snowfall and
reduced water quality. Water conservation measures and
improved resource management strategies can play
important roles in mitigating these effects. To help
understand the impact of climate change and develop
strategies to improve our ability to adapt to it, Rio
Tinto Alcan has partnered with Ouranos, a joint
initiative of the Quebec government, Hydro-
Québec, Environment Canada, the Université
du Québec à Montréal, Université Laval, McGill
University, and INRS University. Named after the
mythological Greek god of the sky, the non-profit
research consortium is working to further research on
climate change in the province, and studying the future
impact of these changes on water management. Rio Tinto
Alcan has invested $500,000 in the partnership and was the
organization’s first private sector member. The company hopes
the research will assist its water resource management operations
and improve hydrological forecasting.
Canada is a world leader in
the share of university research
financed by the private sector.
Across the country, the pace of
university-business collaboration –
including joint RD projects, industrial
internships and cross-sector research
networks – is on the rise. Some examples
of innovative research partnerships involving
CCCE member companies:
Taking
the
lead

7ANNUAL REPORT 2012
Engineering success
Canada is facing a future of dramatic demographic
changes, shortages of skilled labour and intense
competition from emerging economies. A key priority
for the country is to equip younger Canadians with
the skills and knowledge they need to succeed in a
technology-based and innovation-dependent economy.
Linamar Corporation, a leading supplier to the global
automotive and mobile industrial equipment markets,
recognizes the value of investing in, developing and
motivating today’s students. In 2011, Linamar donated
$1 million to the University of Guelph’s School of
Engineering, enough to fund 10 entrance scholarships
a year in perpetuity, each worth $2,500. Linda
Hasenfratz, Chief Executive Officer of Linamar, says
that the company’s ability to compete around the
world depends on product and process innovation,
and “the key to doing so successfully is plenty of
strong engineers with a solid grounding in practical
and theoretical knowledge.” In addition to nurturing
tomorrow’s highly skilled engineers, the scholarship
program enhances the university’s ability to attract top
students who excel in design and innovation. Each year, five
scholarships go to students arriving at the university directly from
high school and five to students who are transferring from college-
level and international technology programs.
A whale of a tale
The North Atlantic right whale is among the world’s rarest and most
endangered whale species. For centuries, they were hunted for their oil,
meat and baleen (whalebone), to the point where there are now
believed to be fewer than 500 in existence. The Bay of Fundy is a
natural habitat for the North American right whale due to
the area’s strong tidal currents, which concentrate large
quantities of the tiny crustaceans on which the
whales feed. Until a decade ago, however, the
whale population in
7ANNUAL REPORT 2012
Source:UniversityofGuelph
Source: Irving Oil Limited

the Bay of Fundy was in sharp decline as a result of collisions with large
ships. Determined to lessen the impact on whales and reduce the
likelihood of ship strikes, managers at Irving Oil Limited partnered
with the New England Aquarium and Dalhousie University on a research
project that recommended changes to the shipping lanes in the area, a
plan that was adopted by the International Marine Organization. The
relocation of the shipping lanes in 2003 – the first time shipping lanes
had ever been altered to protect an endangered species – reduced the
danger of ship collisions with whales by 90 percent, and since then
there have been no known ship strikes in the Bay of Fundy. Irving Oil’s
commitment to science-based conservation efforts continues through
its ongoing involvement in, and financial support for, whale research,
conservation and education efforts.
It’s good for you
Located on the campus of the University of Manitoba, the Richardson
Centre for Functional Foods and Nutraceuticals is at the forefront of
research into the effects of diet on health and disease prevention. The
centre has two primary roles: to investigate and develop foods with
demonstrable health benefits beyond providing energy, vitamins and
minerals; and to promote the development of an economically viable
functional food and nutraceutical industry in western Canada based on
crops important to the Prairie region, including cereals, pulses, oilseeds,
berries and cherries and native plants. Winnipeg-based James
Richardson Sons, Ltd., Canada’s largest privately owned agribusiness,
is a major financial supporter of the centre. Since its inception in 2006,
the Richardson Centre for Functional Foods and Nutraceuticals has
performed a wide variety of research projects on behalf of the
agri-food, natural health product and pharmaceutical
industries. For example, researchers have looked at
ways to lower cholesterol in humans using naturally
occurring products such as whole grains, dairy and
oils. Other projects have focused on the health
benefits of consuming canola, flax oils, pulses and
buckwheat, improving heart health with herbs
and spices, and improving levels of blood lipids,
such as fatty acids, with plant extracts and
high-fiber barley foods. One current study
is aimed at determining whether expensive
protein powders are any better than chocolate
milk as a post-workout supplement to hasten
muscle recovery and build strength.
ANNUAL REPORT 2012

ANNUAL REPORT 2012
Accelerated outcomes
Nuclear medicine involves the use of tiny amounts of radioactive
material to diagnose and treat a wide variety of diseases, including cancer
and arthritis. At TRIUMF, one of the world’s leading subatomic physics
laboratories, researchers from Nordion Inc. are developing new ways to
enhance the health of patients around the world. Owned and operated
by a consortium of 16 Canadian universities, TRIUMF operates the
world’s largest cyclotron, a special type of particle accelerator that
is used to conduct physics research. Nordion has had a 30-year
commercial relationship with Vancouver-based TRIUMF,
resulting in a number of pioneering developments in
molecular imaging technology. Through TRIUMF,
Nordion has also forged new partnerships with
biopharmaceutical companies for the manufacture
of products used in diagnosing cardiac disease and
neurological disorders. Nordion and TRIUMF are
planning future research and development activities
in the areas of radiochemistry and biology that will
explore new approaches for imaging, treatment and
diagnosis of disease.
The right moves
More than 100,000 Canadians live with Parkinson’s
disease, a chronic degenerative disease of the central
nervous system that can cause shaking, difficulty of
movement and dementia. Although there is no known cure for
Parkinson’s, exercise has been found to be effective in mitigating
the symptoms. Sun Life Financial Inc. has committed $250,000 to
support research at Wilfrid Laurier University into Parkinson’s disease,
as well as other brain-related movement disorders such as Huntington’s
disease and Tourette’s syndrome. The Sun Life Financial Movement
Disorders Research Rehabilitation Centre focuses on finding ways to
slow the progression of Parkinson’s disease through the development of
exercise regimes that are proven to benefit a patient’s balance, gait and
coordination. With Sun Life’s support, the centre has built a reputation
as the top Parkinson’s research facility in Canada.
9ANNUAL REPORT 2012
Source:NordionInc.
Source: Sun Life Financial Inc.

Driving research
Launched in 1996, the Windsor, Ontario-based Automotive
Research and Development Centre (ARDC) began as a $30
million joint initiative of Chrysler Canada Inc. and the
University of Windsor. The first partnership of its kind
in Canada, it has since attracted more than $600 million
in investment. The goal of the centre is not only to
produce smarter, more durable and safer cars, but to
train new generations of Canadian engineers capable
of leading-edge research and development in the global
automotive industry. The 200,000-square-foot facility,
equipped with six road-test simulators, enables
Chrysler employees to work side-by-side with a wide
range of researchers and students at all levels from the
university. Priority research areas include alternative
fuels and fuel efficiency, automotive lighting, recycling
and corrosion resistance.
A sea change
Scientists have known since the 1930s that omega-3 fatty acids are
essential for normal human growth, but it was only in the 1990s that
public awareness of its health benefits increased dramatically. A
Canadian entrepreneur, John Risley, played a significant role in the
commercialization of omega-3 supplements. Mr. Risley, the founder,
president and chief executive officer of Clearwater Fine Foods Inc.,
began studying the possible health advantages of fish oil after seeing
scientific evidence supporting its benefits for the heart and brain. In 1997
he launched Ocean Nutrition Canada. Working closely with experts, the
company developed a breakthrough technology that transformed fish oil
into a tasteless, odorless powder finer than flour – a supplement that
could be added to a wide range of food products, from beverages to
bread. Today, Ocean Nutrition is the world’s leading supplier of omega-3
ingredients to the dietary supplement and food manufacturing sectors –
a multi-billion-dollar market, fueled by increasing media attention,
ANNUAL REPORT 2012
Source: Ocean Nutrition Canada Ltd.
Source: Chrysler Group LLC

ANNUAL REPORT 2012
consumer awareness and proven health benefits. In May 2012, Ocean
Nutrition was sold to a Dutch-based company for $540 million –
compelling evidence of innovation’s potential to create value.
On track
As cities around the world become increasingly congested, the need for
smarter and more durable urban transportation solutions is growing
more acute. Bombardier Inc., in partnership with Queen’s University, is
testing a new generation of reinforced concrete that could be used
to build stronger, longer-lasting transportation infrastructure.
The company is working with a team of civil engineering
students to build and evaluate a 1.5-kilometre-long
monorail train track just outside Kingston, Ontario.
Traditional reinforced concrete is built with steel
rods, which are heavy and prone to rust, causing
the concrete to crack and crumble. The new
monorail test track is reinforced with fibreglass
bars and rods, which weigh one-third as much
and last much longer. “It’s a chance to test our
technologies and designs in collaboration with
a multinational company,” says Dr. Amir Fam,
professor of structural engineering and Canada
Research Chair in Innovative and Retrofitted
Structures. Queen’s researchers have been doing
pioneering work in the area of fibre-reinforced
polymers for more than 17 years. With Bombardier’s
involvement, the technology could soon be ready for
real-world application in urban transportation systems.
Synchronicity
Canada is among the world’s leading producers of nickel, and Vale
Canada Limited is the country’s foremost producer of the metal. Nickel
is a key ingredient in stainless steel as well as batteries and various other
industrial and consumer products – but the toxicity of different chemical
forms of nickel can vary significantly. For nickel producers,
understanding the chemical differences that make some nickel
compounds toxic and others harmless is the key to satisfying stringent
regulatory requirements and validating safety standards. To protect its
employees and the environment, Vale Canada works closely with
scientists at Canadian Light Source (CLS), Canada’s national synchrotron
research facility. Located at the University of Saskatchewan, the
synchrotron is one of the largest science projects in Canadian history.
Using radio frequency waves and powerful magnets to accelerate
Source: Bombardier Inc. and Queen’s University

electrons close to the speed of light, the synchrotron
enables scientists to study the microstructure and
chemical properties of materials down to the
atomic level. In Vale’s case, that means gaining a
detailed understanding of the chemical nature of
nickel particulates found in mines and processing
facilities. The CLS synchrotron is a unique and
valuable tool for companies in a wide range of
industries, from biotechnology to manufacturing. Among
other applications, Canadian companies have used it to
develop more effective paints and motor oils, design new
drugs, create safer medical implants and build more powerful
computer chips.
Neonatal nurturing
Eight per cent of babies in Canada are born prematurely, putting them at
increased risk of respiratory illness, infection, developmental problems
and even death. Most require constant monitoring to detect any
deterioration in their vital signs or other subtle warnings of complications
or disease. To help doctors make better, faster decisions regarding the care
of premature infants, a team of researchers worked closely with IBM
Canada Ltd. on a breakthrough software project using advanced stream
computing. The result was Project Artemis, a highly flexible, real-time
monitoring system that enables healthcare professionals to detect certain
life-threatening conditions such as infection up to 24 hours faster than is
possible with traditional approaches to neonatal monitoring. The IBM
software analyzes vast quantities of biomedical data collected from
critically ill babies at up to 1,000 readings per second, as well as
environmental data gathered from advanced sensors and more
conventional bedside monitors.
Source: Canadian Light Source Inc.
ANNUAL REPORT 2012

Operation simulate
Based in Montreal, CAE Inc. is recognized worldwide as a
developer of flight simulators that are used to train
commercial and military airline pilots. But by
leveraging its knowledge of advanced simulation
technology, the company is also helping to train
the next generation of healthcare professionals.
In 2009, CAE partnered with the Université de
Montréal to create one of Canada’s largest
healthcare simulation centres. The centre offers
training in a risk-free environment to more than
1,000 medical students each month. It also
functions as a joint research and development
site, enabling CAE Healthcare and the university’s
medical faculty to work together to design and test
new educational tools – including life-like robotic
mannequins – that improve and enhance the safety and
efficiency of patient care. The centre is equipped with 12
rooms that can be used to simulate different environments: a
hospital, an ambulatory environment, a private medical practice,
an external clinic, an emergency room and so on. The centre stresses the
importance of teamwork, communication, error avoidance and error
mitigation in improving patient outcomes. This year the centre was
accredited by the Royal College of Physicians and Surgeons, recognizing
that the facility effectively improves the quality of the educational
experience offered to its students.
Apps everywhere
In today’s highly interconnected world, service availability and reliability
are critical. In fields such as mobile computing, telephony and banking,
interruptions in service can trigger financial losses and customer
dissatisfaction. The impact can be even more serious in safety-critical
situations, such as traffic control systems. To improve the reliability
and performance of mobile communications, Ericsson Canada Inc.
and the Natural Sciences and Engineering Research Council (NSERC)
partnered with researchers at Concordia University on a project
known as MAGIC (Modeling and Automatic Generation of
Information and upgrade Campaigns for Service Availability).
The project focussed on ways of improving and standardizing
so-called “middleware” – the software layer that lies between a
mobile device’s operating system and its applications software.
By standardizing the middleware, the researchers have made
it possible for applications to run reliably on a wider variety of
mobile devices from different manufacturers. At the same time,
resesarchers helped Ericsson figure out how best to upgrade
software applications and repair glitches without interrupting
the services they are delivering to the end-user.
ANNUAL REPORT 2012
Source: Ericsson Canada Inc.
Source:CAEInc.

ANNUAL REPORT 2012
From field to fuel
Canada’s federal and provincial governments have mandated the use of
ethanol in gasoline to lessen the country’s reliance on fossil fuels, reduce
pollution and promote economic growth in rural areas. Husky Energy
Inc. is a leading producer of starch-based ethanol and has invested
heavily in two large-scale ethanol plants. Husky has committed $1.625
million over five years to the University of Manitoba to fund biofuels
research, plus another $1 million to support longer-term research
beyond the initial five-year period. The biofuels research program,
led by plant scientist Dr. Anita Brûlé-Babel, focuses on developing
high-yield, disease-resistant winter wheat varieties, boosting yields,
improving the ethanol production process and making better use of
ethanol by-products, such as dried distillers grain. The knowledge and
experience gained from these studies will contribute to the development
of long-term strategies for improved grain yields for future food, feed
and fuel purposes.
Source:HuskyEnergyInc.

The energy to innovate
Canada’s oil sands contribute about 6.5 per cent of the country’s overall
greenhouse gas (GHG) emissions, or about 0.1 per cent of the world’s
total emissions. GHG emissions per barrel of oil from the oil sands
have fallen by roughly a third since 1990, but the industry knows
it needs to go further to mitigate the environmental impacts of energy
production. As a result, 12 of Canada’s leading energy producers have
taken the unprecedented step of pooling their environmental research
efforts. Canadian Natural Resources Limited, Cenovus Energy Inc.,
Imperial Oil, Nexen Inc., Shell Canada Energy, Suncor Energy,
Teck Resources Limited, and several other producers, have joined
forces to create Canada’s Oil Sands Innovation Alliance (COSIA).
Bringing together researchers from industry, universities and
government, the alliance is intended to improve collaboration and
promote innovation with the goal of overcoming the most pressing
oil sands environmental challenges.
Source:CenovusEnergyInc.
ANNUAL REPORT 2012

16 ANNUAL REPORT 2012
Yearin
Review The Canadian Council of Chief
Executives enables CEOs and
leading entrepreneurs from every
region and every major industry
to devote time and energy to
addressing key issues that affect the
country as a whole. Our primary areas
of focus include: fiscal policy; innovation;
energy and the environment; North
American economic cooperation;
and international trade and investment.
Examples of our work over the past year:
Fiscal policy
A responsible fiscal framework is a Canadian competitive advantage.
At a time when economic uncertainty continues to cast a long
shadow over the global economy, the CCCE believes it is
essential that Canadian governments strive to balance their
budgets and constrain the growth in public spending. The
federal government has made significant progress toward
that goal. From a peak of $42.6 billion in 2009-2010, the
federal deficit declined to an estimated $24.9 billion
at the end of fiscal year 2011-12. Federal program
spending continues to grow, but at a modest pace,
and the government appears on track to return to
surplus by 2015-2016.
As a percentage of Canada’s overall deficit challenge,
provincial budgets are a much greater concern than
in the mid-1990s, the last time the country faced
significant budgetary shortfalls. In 2012-2013,
Canada’s provincial governments will incur an
estimated combined deficit of $22 billion. British
Columbia, Alberta, Quebec and Nova Scotia are expected
to balance their budgets in 2013-2014. At the other end
of the spectrum, Ontario is wrestling with a $15.3 billion
deficit and does not expect to achieve balance until 2017-2018.
Progress in reducing deficits has stalled in many provinces,
highlighting the urgent need for governments to find more efficient
ways of delivering services. Of particular concern are rising health care
costs, which account for roughly half of provincial budgets.

17ANNUAL REPORT 2012
The CCCE agrees with the recent recommendation of the House of
Commons Standing Committee on Finance for a comprehensive review
of Canada’s tax system. The Organisation for Economic Cooperation and
Development, in its 2012 Economic Survey of Canada, noted that Canada
has made significant progress in reducing the statutory corporate income
tax rate. Even so, the complexity of the tax system imposes a significant
administrative burden on Canadian workers and business
owners. Comprehensive tax reform that focuses on
fostering investment and savings, and that
reduces the disparity in treatment between
small and large firms, would enhance Canada’s
medium-term economic growth prospects
while encouraging smaller companies to
expand, invest and enter new markets.
During the past year, CCCE members have
exchanged views on Canada’s evolving
economic conditions with a range of senior
federal and provincial decision-makers,
including Bank of Canada Governor Mark
Carney (Winnipeg, October 2011) and
Finance Minister Jim Flaherty (Toronto,
January 2012). Governor Carney also
participated in a special teleconference for
CCCE members after the release of the
Bank’s July 2012 Monetary Policy Report.
Energy and the Environment
Energy production and research into advanced energy
technologies are important drivers of economic growth. The
CCCE believes that Canada’s political leaders should agree
on a broad strategy that would maximize the potential
of Canada’s diverse energy resources. In a submission
to the premiers and territorial leaders prior to their
July 2012 meeting, we outlined 10 key elements of
such a strategy, including efforts to diversify
Canada’s energy export markets, streamline
regulatory processes, ensure consistency in
climate policies, and address the labour market
needs of the energy sector. The Council also
called for stronger partnerships with Aboriginal
peoples on energy projects. “Addressing the
role of Aboriginal communities in energy and
resource development begins with early
engagement and a true spirit of building stronger
relationships,” the CCCE submission said.
An earlier CCCE paper, Energy-Wise Canada:
Building a Culture of Energy Conservation, emphasized
the importance to business and consumers of improved
energy efficiency. We urged governments not to shield
Federal deficit
Source: Finance Canada.
From 2011 on, data are estimates or projections
-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
-50
-40
-30
-20
-10
0
10
-42.6
-33.4
-24.9
-21.1
-10.2
-1.3
2010-11 2012-13 2014-15
%ofGDP
Deﬁcit/surplus($billions)
2016-17
3.4
7.8
Source: Canadian Natural Resources Limited

ANNUAL REPORT 2012
Canadians from higher energy prices, which play an important role
in motivating individuals and companies to change their energy
consumption habits and investment decisions.
In April 2012, some 65 CCCE members toured Canadian Natural
Resources’ Horizon oil sands facility and Cenovus Energy’s Christina
Lake project, both in northeastern Alberta. The trip enabled CEOs from
across Canada to learn about the scale of investments and some of the
innovations that are improving environmental performance while
generating significant economic spinoffs for the rest of the economy.
Innovation
The federal government spends $5 billion
a year to support private sector research,
but Canada still lags its international peers
in business innovation. In the fall of 2011, a
federal independent panel on research and
development – led by CCCE member Tom
Jenkins, Executive Chairman and Chief
Strategy Officer of Open Text Corporation – put forward a series
of recommendations that would simplify federal RD incentive
programs, reduce compliance costs, promote commercialization
of new technologies, and target assistance more directly at
innovative companies.
A number of the panel’s key recommendations were
reflected in the government’s 2012 budget. However, the
government chose a different approach to amending
the $3.5 billion-a-year Scientific Research and
Experimental Development (SRED) tax credit
program. The CCCE is concerned about two
changes in particular: the government’s
decision to reduce the value of the SRED
credit from 20 to 15 per cent for medium and
large firms, and the elimination of claims
for capital costs associated with research
projects. “Some of the suggested changes
may backfire by reducing the incentives
for large enterprises to conduct RD in
Canada,” we said in a submission to the
House of Commons Standing Committee
on Finance.
Canada is the world’s:
• 2nd
largest producer of uranium
• 3rd
largest producer of hydro-electricity
• 3rd
largest producer of natural gas
• 6th
largest producer of oil
“Global demand for energy is expected to rise by 40%
by 2035 as economies in both developed and emerging
countries continue to grow and the standard of living
improves in the developing world.”
- International Energy Agency

North America
For years, Canada and the United States have
wrestled with the need to improve the
management of our shared border. In
December 2011, Prime Minister Stephen
Harper and President Barack Obama
announced that the two countries had agreed to
implement two action plans designed to speed
up legitimate trade and travel, improve security,
and align regulatory approaches between the two
countries. The CCCE welcomed the announcement as
“a significant and much-needed step forward in Canada-
U.S. cooperation.” Of the 36 border-related recommendations put
forward by the CCCE in an earlier submission to the Government of
Canada, 27 were incorporated in the bilateral action plans.
For manufacturers and exporters on both sides of the border, a key
priority is the construction of a second bridge connecting Windsor,
Ontario, and Detroit, Michigan. Fully a quarter of all Canada-U.S. trade
enters or leaves our country through the heavily congested Detroit-
Windsor corridor, and commercial traffic at that crossing is expected to
triple over the next three decades. In June 2012, Prime Minister Harper
and Michigan Governor Rick Snyder signed an agreement to expedite
construction of a new, publicly owned bridge, the Detroit River
International Crossing. Under the agreement, Canada will be responsible
for building, financing and operating the new bridge, likely with private
sector involvement. The CCCE called the announcement “highly
encouraging,” adding it would “help companies that rely on just-in-time
production to keep costs down and improve their competitiveness”.
Business investment in Canada
(billions)
Source: Bank of Canada
Highlights of the Canada-U.S. border plan:
• Upgrades to key border crossings
• Common approach to screening
cargo from offshore
• Expedited temporary entry
for business visitors
• Expansion of the
NEXUS program for
trusted travellers
• Streamlined customs-
reporting requirements
for importers
• Common approaches
to food and motor
vehicle safety standards
ANNUAL REPORT 2012
0
50
100
150
200
250
300
350
$233.1
$265.1
$288.3 $360.3
2009 2010 2011 2012 – intentions

ANNUAL REPORT 2012
International
Facing the prospect of slow recoveries in the
United States and Europe, Canadian exporters
are increasingly looking to emerging
economies for growth and opportunity. In
2011, the CCCE and the Canada China
Business Council published an influential
study by economist Wendy Dobson that
called on Canada to move beyond “ad hoc
arrangements” by developing both closer
ties with Asia and a focused strategy based
on ambitious targets for trade and
investment. The report, “Canada, China and
Rising Asia: A Strategic Proposal,” helped set
the stage for the launch of a significant new
CCCE initiative that is examining Asia’s growth,
the rapid expansion of the global middle class and
the impact on Canada’s economic prospects in the
21st
century. In 2012, to encourage debate on what Canada
needs to do to succeed in a rebalanced global economy, we
published eight papers and essays examining various aspects of the
Canada-Asia relationship. We also announced our intention to host
“Canada in the Pacific Century,” a major conference in Ottawa for
200 business leaders, senior government officials and representatives
of aboriginal communities, labour and other sectors.
As a longstanding proponent of an ambitious Canadian trade strategy, the
CCCE looks forward to the anticipated completion of economic
partnership negotiations with the European Union in late
2012. We also continue to offer advice and support to
the federal government as Canada seeks to forge
closer ties with India, Japan, Brazil, Australia and
other markets that hold promise for Canadian
companies. In June 2012, the CCCE strongly
welcomed Canada’s entry into the Trans-Pacific
Partnership (TPP), a multilateral set of
negotiations that has the potential to spur
economic growth around the Pacific Rim.
Speaking on behalf of Canada’s business
leaders, Mr. Manley expressed the hope that
the TPP would lead to “significant reforms in
areas such as intellectual property protection,
regulatory cooperation, rules of origin and
non-tariff barriers, agricultural trade, and
investment and services liberalization.”
Where the world’s middle
class consumers will live
in 2030
Source: OECD
Central and
South America
Europe
North America
Africa and
Middle East
Asia Paciﬁc 7% 7%
14%
66%
6%
Source: Office of
the Prime Minister
of Canada

ANNUAL REPORT 2012
Events Publications
Event highlights
CCCE delegation to Japan
Tokyo – September 25-26, 2011
Autumn Members’ Meeting
Winnipeg, MB – October 3-4, 2011
“The way forward: Canada’s decade of opportunity”
Remarks to the Canadian Business Leadership Forum
Toronto, ON – October 19, 2011
CCCE delegation to China
Beijing and Chongqing - November 19-23, 2011
New Year Members’ Meeting
Toronto, ON – January 16-17, 2012
World Economic Forum Annual Meeting
Davos-Klosters, Switzerland – January 25-29, 2012
Aspen Institute dialogue on Canada’s economic
and fiscal renaissance
Washington, D.C. – March 28, 2012
CEO Summit of the Americas
Cartagena de Indias, Colombia – April 13-14, 2012
Members’ tour of oil sands facilities
Fort McMurray and Christina Lake, AB – April 30, 2012
Spring Members’ Meeting
Calgary, AB – April 30- May 1, 2012
Remarks to the Petroleum Club
Calgary, AB – May 16, 2012
Remarks to the Canadian American Business Council
Washington, D.C. – June 7, 2012
Remarks to the New England Business Council
Boston, MA – June 21, 2012
SELECTED Publications
A Canadian national economic strategy for Asia
By Dominic Barton, Bruno Roy and Bruce Simpson
August 2012
L’essor de la Chine et les implications pour le Quebec
By Martin Cauchon, Joseph P. Caron, and Michael G. Woods
August 2012
Strengthening education and research connectivity between
Canada and Asia
By Stephen J. Toope
August 2012
Competing in the 21st century skills race
By Graham Orpwood, Bonnie Schmidt and Hu Jun
July 2012
Framing an energy strategy for Canada: Submission to the Council
of the Federation
July 2012
Golden opportunities and surmountable challenges: Prospects
for Canadian agriculture in Asia
By Michael Gifford
April 2012
A northern tiger? Canada’s economic and fiscal renaissance
and its implications for the United States
By Jeremy Leonard
March 2012
Chinese foreign direct investment in Canada: Threat
or opportunity?
By Theodore H. Moran
March 2012
Ambiguity and illusion in China’s economic transformation:
Issues for Canadian policy makers and business leaders
By Michael Hart
February 2012
Corporate taxes, jobs and investment: the real story
(Article in iPolitics)
January 25, 2012
Energy-wise Canada: Building a culture of energy conservation
December 2011
Geography is destiny: a good week for Canada-US relations
(Article in iPolitics)
December 9, 2011
Canada, China and rising Asia: A strategic proposal
By Wendy Dobson
October 2011
Intellectual property: A new kind of arms race, with
patents as ammo
(Article in The Globe and Mail)
October 5, 2011
Source: Canada China Business Council

ANNUAL REPORT 2012
Board of Directors
M. Elyse Allan
President and Chief
Executive Officer,
GE Canada
Pierre Beaudoin
President and Chief
Executive Officer,
Bombardier Inc.
John M. Cassaday
President and Chief
Executive Officer,
Corus Entertainment Inc.
Paul Desmarais, Jr.
(Vice Chair)
Chairman and Co-Chief
Executive Officer,
Power Corporation
of Canada
William A. Downe
President and Chief
Executive Officer,
BMO Financial Group
N. Murray Edwards
President,
Edco Financial Holdings Ltd.
Darren Entwistle
President and Chief
Executive Officer,
TELUS
J. Bruce Flatt
Chief Executive Officer,
Brookfield Asset
Management Inc.
Linda S. Hasenfratz
Linamar Corporation
Paul J. Hill
Chairman, President and
Harvard Developments Inc. –
A Hill Company
Tom Jenkins
Executive Chairman and
Chief Strategy Officer,
Open Text Corporation
Donald R. Lindsay
President and Chief
Executive Officer,
Teck Resources Limited

ANNUAL REPORT 2012
Jon E. Love
Managing Partner,
KingSett Capital Inc.
The Honourable John P.
Manley, P.C., O.C.
President and Chief
Executive Officer,
Canadian Council
of Chief Executives
Michael H. McCain
President and Chief
Executive Officer,
Maple Leaf Foods Inc.
Lorraine Mitchelmore
President and Canada
Country Chair,
Shell Canada Limited
Claude Mongeau
President and Chief
Executive Officer,
CN
Gordon M. Nixon
(Past Chair)
President and Chief
Executive Officer,
Royal Bank of Canada
Hartley T. Richardson
(Chair)
President and Chief
Executive Officer,
James Richardson Sons,
Limited
John C. Risley
President,
Clearwater Fine Foods Inc.
Juergen Schachler
President and Chief
Executive Officer,
ArcelorMittal Dofasco Inc.
Nancy C. Southern
President and Chief
Executive Officer,
ATCO Group
Louis O. Vachon
President and Chief
Executive Officer,
National Bank of Canada
Michael M. Wilson
President and Chief
Executive Officer,
Agrium Inc.

ANNUAL REPORT 2012
Mark Aboud
President and Managing Director
SAP Canada Inc.
David Aisenstat 2
Chief Executive Officer
Keg Restaurants Ltd.
M. Elyse Allan 1
GE Canada
Mike Ashar
President
Irving Oil Limited
Richard Baker
Governor
Hudson’s Bay Company
Katherine Bardswick
The Co-operators Group Limited
W. Geoffrey Beattie
President
The Woodbridge Company Limited
Laurent Beaudoin 2
Chairman
Bombardier Inc.
Pierre Beaudoin 1, 2
Bombardier Inc.
John M. Beck
Chairman and Chief Executive Officer
Aecon Group Inc.
Reid Bigland
Chairman, President
and Chief Executive Officer
Chrysler Canada Inc.
Pierre Blouin
MTS Allstream Inc.
Ian A. Bourne
Vice Chairman and
Interim Chief Executive Officer
SNC-Lavalin Group Inc.
Charles Brindamour
Intact Financial Corporation
Jack Broodo
President
Dow Chemical Canada ULC
Bill Buckley
ShawCor Ltd.
John M. Cassaday 1
Corus Entertainment Inc.
Yvon Charest
Industrial Alliance Insurance
and Financial Services Inc.
Neil Chrystal
Polygon Homes Ltd.
W. Edmund Clark
TD Bank Group
Jack L. Cockwell 2
Group Chairman
Brookfield Asset Management Inc.
Dean Connor
Sun Life Financial Inc.
Roy Cook 3
Chair
Canadian Manufacturers Exporters
George A. Cope
BCE Inc. and Bell Canada
Jacynthe Côté
Chief Executive
Rio Tinto Alcan
Marcel R. Coutu
Canadian Oil Sands Limited
Dianne Craig
Ford Motor Company of Canada, Limited
Robert S. Crosbie 2
Chairman
Crosbie Group Limited
David M. Culver
Past Chair
Canadian Council of Chief Executives
Tim Cutt
BHP Billiton Canada Inc.
Thomas d’Aquino
Distinguished Lifetime Member
and Former Chief Executive
Jim W. Davidson
FirstEnergy Capital Corp.
Marc de La Bruyère 2
Chairman
Maclab Enterprises
Membership
As of August 2012
1. Board of Directors
2. Entrepreneurs’ Circle
3. Associate Member

ANNUAL REPORT 2012
Arthur A. DeFehr 2
Palliser Furniture
Michael Denham
President and Managing Director, Canada
Accenture Inc.
André Desmarais 2
President and Co-Chief Executive Officer
Power Corporation of Canada
Paul Desmarais, Jr. 1, 2
Chairman and Co-Chief Executive Officer
Power Corporation of Canada
Paul G. Douglas
PCL Constructors Inc.
William A. Downe 1
BMO Financial Group
William J. Doyle
PotashCorp
Rupert Duchesne
Group Chief Executive
Aimia Inc.
N. Murray Edwards 1, 2
President
Edco Financial Holdings Ltd.
Darren Entwistle 1
TELUS
Randall K. Eresman
Encana Corporation
Jon Fairest
Sanofi-aventis Canada Inc.
Dawn Farrell
TransAlta Corporation
Brian Ferguson
President Chief Executive Officer
Cenovus Energy Inc.
Kenneth E. Field 2
GreenField Ethanol Inc.
J. Bruce Flatt 1
Brookfield Asset Management Inc.
Jay Forbes
Teranet Inc.
Peter Galanis
Hewlett-Packard (Canada) Co.
Richard L. George
Distinguished Lifetime Member
Asim Ghosh
Husky Energy Inc.
John W. Gibson, Jr.
Tervita Corporation
Peter E. Gilgan 2
Founder and Chief Executive Officer
Mattamy Homes Limited
Russ Girling
TransCanada Corporation
Blake C. Goldring 2
AGF Management Limited
J. Lindsay Gordon
HSBC Bank Canada
George F. J. Gosbee 2
AltaCorp Capital Inc.
Anthony R. Graham
President
Wittington Investments, Limited
Ian Greenberg
Astral Media Inc.
Andy Gross
Giant Tiger Stores Limited
Charles Guay
The Standard Life Assurance Company
of Canada
Donald A. Guloien
Manulife Financial Corporation
Robert Hardt
Siemens Canada Limited
Hunter Harrison
Canadian Pacific Railway
Source: Stone Creek Resorts Inc.Source: BCE Inc. and Bell Canada

ANNUAL REPORT 2012
Linda S. Hasenfratz 1, 2
Linamar Corporation
Duncan Hawthorne
Bruce Power
John Helou
President
Pfizer Canada Inc.
Mark Henderson
Ericsson Canada Inc.
Trent Henry
Ernst Young LLP
Les Herr
Empire Life Insurance Company
Paul J. Hill 1, 2
Harvard Developments Inc. -
A Hill Company
Alberto Iperti
Managing Director, Canada
Tenaris
Duncan N. R. Jackman 2
E-L Financial Corporation Limited
Tom Jenkins 1, 2
Executive Chairman and
Chief Strategy Officer
Open Text Corporation
Daryl A. Katz 2
The Katz Group of Companies
Nitin Kawale
President
Cisco Systems Canada, Co.
Don Kayne
Canfor Corporation
Edward S. Kennedy
The North West Company Inc.
Gordon J. Kerr
Enerplus Corporation
Hassan Khosrowshahi 2
Chairman
Persis Holdings Ltd.
James S. Kinnear 2
Kinnear Financial Limited
Thomas A. Kloet
TMX Group Inc.
Tetsuo Komuro
Mitsui Co. (Canada) Ltd.
Jean-Yves Leblanc 3
Chairman of the Board
Conseil du patronat du Québec
Jeff Lehrmann
President
Chevron Canada Limited
Bill Lennie
President
The Home Depot of Canada Inc.
Monique F. Leroux
Chair of the Board, President
and Chief Executive Officer
Desjardins Group
Donald R. Lindsay 1
Teck Resources Limited
Paul J. Lirette
GlaxoSmithKline Inc.
Lisa S. Lisson
President
Federal Express Canada Ltd.
Christine Lithgow
Aon Reed Stenhouse Inc.
D. Allen Loney
The Great-West Life Assurance Company
Maxwell Long
President
Microsoft Canada Inc.
Brandt C. Louie 2
H.Y. Louie Co. Limited
Jon E. Love 1, 2
Managing Partner
KingSett Capital Inc.
John M. Lutz
President
IBM Canada Ltd.
Membership Source: PCL Constructors Inc.

ANNUAL REPORT 2012
Paul Madden
President and General Manager
3M Canada Company
The Honourable John P. Manley 1
Ronald N. Mannix 2
Chairman
Coril Holdings Ltd.
John A. Manzoni
Talisman Energy Inc.
Bruce H. March
Imperial Oil Limited
Russel Marcoux
Yanke Group of Companies
Ron Mathison 2
Matco Investments Ltd.
Michael H. McCain 1, 2
Maple Leaf Foods Inc.
Gerald T. McCaughey
CIBC
Calvin McDonald
Sears Canada Inc.
Bill McFarland
and Senior Partner
PricewaterhouseCoopers LLP
Lorraine Mitchelmore 1
President and Canada Country Chair
Shell Canada Limited
Nadir Mohamed
Rogers Communications Inc.
Claude Mongeau 1
CN
Kevin A. Neveu
Precision Drilling Corporation
Gordon M. Nixon 1
Royal Bank of Canada
Masaru Oda
Mitsubishi Canada Ltd.
Kevin Ogawa
Canon Canada Inc.
R. Jeffrey Orr
Power Financial Corporation
Michael J. Oxley
President
E.I. du Pont Canada Company
Marc Parent
CAE Inc.
Laurence G. Pathy 2
Chairman
Fednav Limited
John E. Peller 2
Andrew Peller Limited
Len Penner
President
Cargill Limited
Domenic Pilla
Shoppers Drug Mart Corporation
Peter Poppinga
Vale Canada Limited
Randy Powell
Rocky Mountaineer
Mike Pratt
President and Chief Operating Officer
Best Buy Canada Ltd.
Kevin Reinhart
Interim President and
Nexen Inc.
Paul Reynolds
Canaccord Financial Ltd.
Hartley T. Richardson 1, 2
James Richardson Sons, Limited
John C. Risley 1, 2
President
Clearwater Fine Foods Inc.
Michael E. Roach
CGI Group Inc.
Source: PotashCorpSource: Husky Energy Inc.

ANNUAL REPORT 2012
Harold A. Roozen 2
CCI Thermal Technologies Inc.
Roger Rossi
Reliance Comfort Limited Partnership
Calin Rovinescu
Air Canada
Lino A. Saputo, Jr.
and Vice Chairman of the Board
Saputo Inc.
Juergen Schachler 1
ArcelorMittal Dofasco Inc.
Mayo Schmidt
Viterra Inc.
Larry W. Shelley
Coril Holdings Ltd.
Ian Smith
Clearwater Seafoods Limited Partnership
Stephen Smith
Chairman, President and Co-founder
First National Financial LP
Jamie C. Sokalsky
Barrick Gold Corporation
Nancy C. Southern 1, 2
ATCO Group
Ronald N. Stern 2
Alberta Newsprint Company
Don Streuber
Bison Transport Inc.
John M. Sullivan
The Cadillac Fairview Corporation
Limited
Kevin M. Sullivan 2
Deputy Chairman
GMP Capital Inc.
Jacques Théorêt
President
Mercer (Canada) Limited
Bill Thomas
and Senior Partner
KPMG
Guy J. Turcotte 2
Stone Creek Resorts Inc.
Louis O. Vachon 1
National Bank of Canada
Dirk Van de Put
McCain Foods Limited
Anne Marie Verstraeten
BNP Paribas (Canada)
Frank Vettese
Managing Partner and Chief Executive
Deloitte Touche LLP
Curt Vossen
President
Richardson International Limited
Michael T. Waites
Finning International Inc.
V. Prem Watsa 2
Fairfax Financial Holdings Limited
Richard E. Waugh
Scotiabank
Steve West
Nordion Inc.
Galen G. Weston 2
Executive Chairman
Loblaw Companies Limited
Gary Whitelaw
Bentall Kennedy Group
Steve Williams
Suncor Energy Inc.
Michael M. Wilson 1
Agrium Inc.
Robert Youden 3
Chair
Canadian Chamber of Commerce
Membership

ANNUAL REPORT 2012
Council Staff
The Honourable John Manley, P.C., O.C.
Chantal Roy
Executive Assistant to the President and Chief Executive
Officer
Susan Scotti
Senior Vice President, Planning and Operations
Sam Boutziouvis
Vice President, Policy, International and Fiscal Issues
John Dillon
Vice President, Policy and Corporate Counsel
Ross Laver
Vice President, Policy and Communications
Nancy Wallace
Vice President, Corporate Services
Joe Blomeley
Policy Analyst
Brian Kingston
Policy Analyst
Sarah Reid
Communications Officer
Monique Raymond-Dubé
Executive Assistant
Patricia Matchem
Senior Administrative Associate
Kristen Garant
Administrative Associate
Meagan Lachance
Administrative Associate

99 rue Bank Street
Suite/bureau 1001
Ottawa (Ontario)
Canada K1P 6B9
Tel 613-238-3727
www.ceocouncil.ca

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