|
Employees
To foster a culture of engagement, learning and growth
|
BDC Employee
Engagement
 |
2006 Performance
 |
The Employee Engagement Survey showed a rebound to 78%, an increase of 4% from 2005 and equal to the objective. |
2007 Objectives
|
Employee engagement: 78% |
|
Continued open
communications |
|
Leadership initiatives |
|
Enhance workforce diversity. | |
|
Efficiency
To establish effective and efficient operating and administrative expenses as a percentage of net interest and other income
|
|
BDC Efficiency Ratio
 |
2006 Performance
|
Slightly higher than 2005, due to increased pension costs, and an increase in operating costs in order to gear up for future growth. The lower the ratio, the higher the efficiency achieved. |
2007 Objectives
|
Ratio: 49.7% |
|
Higher ratio due to staff increases and a $9 million increase in pension costs |
|
Efficiency gains are expected from new disbursement procedures. |
* Represents new internal 07 objectives.
Corporate Plan: 51% |
|
Financial sustainability
To fulfill its public policy mandate, BDC has to be profitable to fund the growth of its portfolio, generate a return on common equity at least equal to the government's average long-term cost of funds and be able to withstand unfavourable economic circumstances without requiring government funding
|
|
BDC Outstanding
Financing Portfolio
|
2006 Performance
|
A record $2.5 billion in financing authorizations in fiscal 2006 drove the portfolio to $8.8 billion, an increase of $0.7 billion. |
2007 Objectives
|
Portfolio: $9.4 billion |
|
Increased risk tolerance through Co-Vision Loans, Productivity Plus Loans and Innovation Financing |
|
Partnership agreements with CFDCs and Caisse de dépôt et placement du Québec. |
*Represents new internal 07 objectives.
Corporate Plan: $9.0 billion
|
BDC Return on
Common Equity
|
2006 Performance
|
The total BDC ROE of 9.2% was slightly lower than the 9.7% of 2005, but was significantly higher than the 7.7% objective. This is due to the continued strength of the financing portfolio and the improved performance of BDC Venture Capital. |
2007 Objectives
|
ROE: 8.2% |
|
Generate an ROE at least equal to the government's average long-term cost of funds |
|
ROE is expected to decline as provisions for loan losses are expected to return to more normal levels. |
* Represents new internal 07 objectives.
Corporate Plan:
0.9% – Venture Capital
11.3% – Financing and Consulting
7.5% – Total BDC
|
BDC Consulting
Revenue
|
2006 Performance
|
BDC recorded consulting revenues of $21.6 million, a 14% increase from 2005 and 3% higher than objective. |
2007 Objectives
|
BDC Consulting revenue from activities: $23 million |
|
Increased revenues due to the integrated approach with financing products and investment in resources. |
* Represents new internal 07 objectives.
Corporate Plan: $22.0 million
|
|
BDC Venture Capital
|
2006 Performance
|
IRR on total investments of 1.5% versus 5.6% in 2005 and the planned 6.3% |
|
Lack of divestiture over the past five years has forced down the IRR. |
2007 Objectives
|
Direct investments: 1.2% |
|
Total investments: -0.1% |
|
Continue to hold the course as a leader in the Canadian venture capital industry of early-stage technology |
|
Seek opportunities for divestiture of profitable holdings. |
*Represents new internal 07 objectives.
Corporate Plan:
3.1% – Direct
2.0% – Total |
|
