Annual Report 2011/2012 NWT Business Development and Investment Corporation

Table of Contents

1 Message from Chairperson and the Chief Executive Ocer 2 Corporate Governance and Management 2 Our Mandate 3 The BDIC’s Board 4 Organizational Chart 5 Partnerships 6 Programs and Activities 6 Map of NWT Regions 7 2011-2012 Highlights 9 Venture Investment Program 9 Subsidiary Program 10 Subsidiary Board of Directors 11 Contribution Program 12 Written O and Forgiven Accounts 13 Business Services 14 Job Creation and Maintenance 15 Disbursements 19 Financial Statements

Message from the Chairperson and Chief Executive Oficer We understand that building a sustainable economy for the NWT means economic development of all our communities. We are focused on funding best processes, tools and programs to help small and medium sized business in the Northwest Darrell Beaulieu Pawan Chugh Territories. Chairperson Chief Executive Oficer

Through economic development, the BDIC has continued to cultivate the growth of small and medium sized businesses in the (NWT). Over the last seven years we have expanded our suite of products to eectively help NWT businesses have better choices with more options In 2011-2012 we have again achieved success growing our programs; most notably we were able to increase the number of nancial contributions by across all NWT regions With the commitment of our Minister Honourable David Ramsay to community development, we have created and maintained 47.22 direct and indirect jobs in NWT communities.

In 2011/2012 some of the BDIC’s key achievements include: Increasing the number of contributions by to across every region in the NWT Signing a new 3 year partnership agreement with the Canadian Northern Economic Development Agency to deliver Canada Business NWT services. Expanding the markets of the BDICs subsidiaries through promotions and eorts from Arctic Canada Trading Company Ltd.

Completion of the rst Muskox harvest by our newest subsidiary company in With the continuous volatile state of the global economy, times remain challenging for economic growth. Despite the global scal reality the BDIC continues its commitment to economic development We will continue to focus on the growth of our loan portfolio for small to medium-sized businesses, investment in subsidiaries, and researching for development methods to build the capacity of small and medium-sized businesses in the Territory. Our sincere thanks to the Minister Responsible for the BDIC, Hon. David Ramsay for his continued and strong support for the BDIC the Board of Directors for their sincere commitment to the BDIC and the sta for their relentless dedication and hard work. Together, we will continue our work to help strengthen the Northwest Territories economy.

We are business oriented people working for business people.

Northwest Territories Business Development and Investment Corporation 1 Corporate Governance and Management Our Mandate

To support the economic objectives of the Government of the Northwest Terri- tories in a manner that benets the people and the economy of the Northwest Territories by encouraging the creation and development of business enter- prises providing nancial assistance to business enterprises either on its own or as a complement to private sector or other nancing directly investing in business enterprises; and providing information to business enterprises and members of the public respecting the establishment and operation of businesses, and other business matters. (BDIC Act)

Vision

An accountable and independent Crown Corporation providing resources for the economic development of the Northwest Territories.

Mission

To support the economy by encouraging the creation and development of businesses in communities.

2 We proactivly bring stakeholders together establish and maintain successful to enhance business capacity, sustain businesses, allowing them to be self-reliant selfsuciency and increase community and to participate fully in the economic and prosperity. social life of the NWT. The BDIC’s vision and mission emphasize the importance of business development in the creation of long-term prosperity for the NWT. The vision and mission also recognize that a sustainable economy is based on Northerners’ capacity to

2 Northwest Territories Business Development and Investment Corporation The BDIC’s Board BDIC BOARD OF DIRECTORS

The BDIC’s Board of Directors are Darrell Beaulieu - Chairper- son N’dilo appointed by the Minister responsible for the BDIC. The Board oversees the BDIC’s Joanne Deneron - Director aairs takes into account sustainable development and capacity building when Charlie Furlong Director making decisions, acts in accordance Ruby Landry - Director with ministerial directives, and establishes operational policies for its programs. Gwen Robak - Director Hay River The Board has two committees: Denny Rodgers - Director Audit Committee assists the Board in fullling its oversight responsibilities for the nancial Andy Wong - Director Yellow- reporting process, the system of internal knife control, the audit process, the performance Norman Warren Wright - Director Wells process and the BDIC’s process of monitoring Denise Yuhas - Vice Chairper- compliance with laws, governing acts, son SmithFort regulations and directives and the code of conduct. Appeals Committee - reviews appeals on nancial program applications rejected by the AUDIT COMMITTEE Application Review Committee or the Chief Denise Yuhas, Chairperson Executive Ocer DIRECTORS MEETINGS Joanne Deneron, Vice Chairperson ATTENDED Rhona Stanislaus CGA, Member at Large Darrell Beaulieu 4/4 Louise Lavoie, Member representing Joanne Deneron 4/4 GNWT Department of Finance Charlie Furlong 2/4 Ruby Landry 3/4 Gwen Robak 4/4

Denny Rodgers 3/4 APPEALS COMMITTEE Andy Wong 4/4 BDIC Board Chairperson or Warren Wright 3/4 Vice Chairperson Denise Yuhas 4/4 Any other two Board members Northwest Territories Business Development and Investment Corporation 3 Organizational Chart As of March 31, 2012

4

4 Northwest Territories Business Development and Investment Corporation Partnerships

The BDIC works with regional business BDIC and The corporations and other partners to Business Development Centre identify, improve, and expand economic Memorandum of Agreement development in the NWT. BDIC and NWT Chamber of The purpose of this Agreement is to Commerce Memorandum of provide for joint client transactions in order to enhance the nancing options oered to Understanding clients.

The general intent of the parties is to carry out mutually agreed activities to promote business attraction, development and retention for creating, maintaining and fostering employment and economic activities in the NWT. BDIC and Memorandum of Understanding

The general intent of the parties is delivery of mutually agreed courses in dierent business related programs at Aurora College, with a focus to improve knowledge and skills of business and economic development program students, and professional development of the BDIC sta

“Partnering to foster business growth in the Northwest Territories.”

Northwest Territories Business Development and Investment Corporation 5 Programs & Activities

The BDIC oers nancial programs and Financial Programs business services to NWT businesses. They are delivered at BDIC Headquarters Credit Facilities Program in and through the Department The BDIC lends to northern businesses of Industry Tourism and Investment where conventional lending institutions are regional delivery agents across the NWT. not prepared to lend and to businesses in The BDIC also provides support to communities where a commercial bank is Community Futures Development not operating The terms can be exible to Corporations CFDCs in the NWT and meet the needs of individual clients. The along with federal and territorial partner BDIC also provides Standby Letters of organizations, organizes multi-stakeholder Credit for contract bids and performance events supporting economic development. security or to guarantee payment for goods and services from a supplier.

6 Northwest Territories Business Development and Investment Corporation 2011-2012 Highlights

Number of Approved Credit Facilities by Region (2006/2007 - 2011-2012)

20

18

16

14 06/07 12 07/08 10 08/09 8 09/10

6 10/11 11/12 4

2

0 Dehcho Inuvik North Slave Sahtu South Slave (incl. Tlicho)

Value of Approved Credit Facilities by Region (2006/2007 - 2011-2012)

$7,000

$6,000

$5,000 06/07 $4,000 07/08 08/09 $3,000 09/10 10/11 $2,000 11/12 $1,000

$0 Dehcho Inuvik North Slave Sahtu South Slave (incl. Tlicho)

Northwest Territories Business Development and Investment Corporation 7 Number of Approved Credit Facilities by Community Level (2006/2007 - 2011-2012)

25

20

06/07 15 07/08 08/09 09/10 10 10/11 11/12 5

0 Level I Level II

Amount of Approved Credit Facilities by Community Level (2006/2007 - 2011-2012)

$12,000

$10,000

8 $8,000 06/07 07/08

$6,000 08/09 09/10 $4,000 10/11 11/12 $2,000

$0 Level I Level II

8 Northwest Territories Business Development and Investment Corporation Subsidiary Program

The BDIC owns seven subsidiary companies. All but one of its subsidiaries are located in Level II communities. There are BDIC subsidiaries in the Dehcho, Inuvik, North Slave and South Slave regions of the NWT. Venture Investment Community The BDIC provides its subsidiaries with funds for operations, new facilities

Canada Inc Yellowknife and equipment so that they can create (o/a NWT Marine) and/or maintain employment in their community. Where necessary, the NWT Ltd Wekweètì (o/a Snare Lake Ldoge) BDIC also provides a range of support Enodah Wilderness Travel services to its subsidiaries, including Yellowknife Ltd. accounting, marketing, ecommerce and Holman Eskimo general operational support. Several Co-operative BDIC subsidiaries promote traditional Kunnek Resource ne arts and craft activities and the use of Inuvik traditional materials, which helps further Development Corporation support the local economy. North Nahanni Naturalist Lodge Ltd. Paulette & Clarke Renovations Ltd. Fort Smith Tri-Vanguard Ka’nages Yellowknife Pictures Ltd. Two Rivers Development Corporation

Northwest Territories Business Development and Investment Corporation 9 Subsidiary Board of Directors (as of March 31 2012)

YEAR OF 2011/2012 BOARD OF INVESTMENT INCORPORATION DIRECTORS - Pawan Chugh NWT Ltd Ulukhak 2008 tok Arts Centre) Warren Wright Aklavik & Pawan Chugh Furs Ltd Arctic Canada Trading Denise Yuhas Co. Ltd. Pawan Chugh Denise Yuhas Fur Clouds Ltd Gwen Robak Pawan Chugh Denise Yuhas Acho Dene Native Crafts Joanne Deneron Ltd. Pawan Chugh Denise Yuhas General Joanne Deneron Store Ltd. Pawan Chugh Bill Prodromidis

NWT Ltd 10 Leonard Kwong Fort McPherson Tent Pawan Chugh Canvas Shop) Warren Wright Joseph Carpenter Denny Rodgers NWT Ltd Muskox 2011 Pawan Chugh subsidiary) Vernon Amos Warren Wright

10 Northwest Territories Business Development and Investment Corporation Contribution Programs In the BDIC received appli- cations for contributions with a total value The BDIC provides nancial assistance of compared to applications to northern businesses for feasibility received in 2010/2011 with a total value of assessments, development of new A total of applications were products, preparation of marketing and/or approved with a total value of business plans and pilot projects. compared to 20 approvals in 2010/2011 with a total value of

Number of Approved Contributions by Region (2006/2007 - 2011-2012)

13 12 12

06/07 8 7 7 07/08 08/09 5 5 4 09/10 3 3 3 10/11 2 2 2 2 1 1 1 1 1 1 1 11/12 0 0 0 0 0 0 0

Dehcho Inuvik North Slave (incl. Sahtu South Slave Tlicho)

Value of Approved Contributions by Region (2006/2007 - 2011-2012 in $000s)

06/07 $118 $116 07/08 08/09 $96 09/10 10/11

$70 11/12

$56 $49

$40 $39 $38 $32 $27 $25 $20 $17

$10 $10 $10 $10 $9 $10 $9 $10 $6 $0 $0 $0 $0 $0 $0 $0

Dehcho Inuvik North Slave (incl. Sahtu South Slave Tlicho)

Northwest Territories Business Development and Investment Corporation 11 Written-Off and Forgiven BDIC Write offs and Accounts Forgiveness Accounts (2011 - 2012) Accounts that are writteno can still be collected but are assigned zero value Name Amount in the BDICs nancial statements The Forgiveness by Legislative Assembly BDIC Board may approve the writeo of an account under Writeos M.A.N. Enterprises Ltd. over can only be approved by the Anne Marie McGuire Legislative Assembly of the NWT. Northern Maintenance Ltd. When an account is forgiven, it has zero The Fish Gate Ltd value in the BDICs nancial statements and the BDIC can no longer collect the Xah Ndah Resources Ltd. amount owing Accounts under YK Dollar Store Ltd. may be approved for forgiveness by the Annette Gero Financial Management Board Accounts over can only be approved for forgiveness by the Legislative Assembly of Written o by Legislative Assembly the NWT. Raymond Beaver and Michael Beaver Marcel Frise Alexander Gresl Kunnek Resource Development Corporation Kenneth Laliberte Lirettes Trucking Service Ltd. 12 Kelly Yew

Written o by Board of Directors Lorra Gummesen

12 Northwest Territories Business Development and Investment Corporation Business Services In 2011/2012, CBNWT published an up- dated version of “How to Start a Business in the NWT” a booklet that gives prospec- The BDIC oers information to tive entrepreneurs the information they support potential clients and provides need to start a business in the North. aftercare to existing clients. A 1-800 number is also available for clients These services are available through around the NWT to call toll-free and be Canada Business NWT (CBNWT), which directed to provincial and territorial specic is operated in partnership with Industry business advice and information. Canada. During the year, CBNWT responded to CBNWT provides the public a wide range a total of inquiries received by tele- of information on small business programs, phone, email, and in-person visits. CBNWT services and applicable laws. Its mission also oered video conference events on is to contribute to economic growth by topics such as Ecommerce, Understanding ensuring that business people in every Your Business Financial Statements and part of the NWT have access to accurate, Business Planning Tax Tips and Financing timely and relevant business information for Aboriginal Entrepreneurs. through a convenient single window. CBNWT publications and other information sources are available to all northern Community Futures communities through its website Development Corporations (http://www. canadabusiness.ca). CBNWT access points have also been established CFDCs support community economic in the following NWT communities through development and diversication and the local Community Futures creation and maintenance of small and The Community Futures Development medium sized businesses. The BDIC Corporations are: provides support to CFDCs in the NWT The Dehcho Business Development Centre in by coordinating partnerships and capac- Fort Simpson ity-building events and by lending them Thebacha Business Development Services loan capital to supplement their capital Inc in Fort Smith reserves. The Southwest Territorial Business Develop- In 2011/2012, the Akaitcho Business ment Corporation in Hay River Development Corporation (N’dilo) and Western Arctic Business Development Ser- Thebacha Business Development Ser- vices in Inuvik vices Inc Fort Smith had loan capital The Sahtu Business Development Centre in arrangements with the BDIC. The Dogrib Area Community Futures in What

Northwest Territories Business Development and Investment Corporation 13 Job Creation or Maintenance

In 2011/2012, the BDIC’s venture investments and subsidiaries created or maintained direct jobs and indirect jobs, for a total of 47.22 full-time equivalent jobs. Indirect jobs are calculated using the NWT Bureau of Statistics Input Output Model, which measures employment contribution. The real number of indirect jobs created by the BDIC is much higher. Direct and indirect jobs for venture investments are aggregated so as not to compromise their operations.

Investment Direct Jobs NWT Ltd Muskox subsidiary 4.00 NWT Ltd (Ulukhaktok Arts Centre) Acho Dene14 Native Crafts Ltd. 1.72

Dene Fur Clouds Ltd NWT Ltd Indirect Jobs Fort McPherson Tent Canvas Shop Subsidiaries 4.00 Nahanni Butte General Store Ltd. 3.00 Venture 4.00 Venture Investments 20.00 Investments Total jobs created or maintained Total 8.00

14 Northwest Territories Business Development and Investment Corporation Disbursements

The BDIC disbursed funds to the following NWT businesses during the scal year

Financial Name of Business Owners Community Total Amount Program Disbursed Hay River Metis Hay River Credit NWT LTD Government Walterhouse, NWT Ltd oa Lous Credit Small Engine (2003)) Blaine Fort Smith NWT Ltd oa NWT BDIC Ulukhaktok Subsidy Ulukhaktok Arts Centre) Denny, Lyle; Ross, Canada Inc oa Yellowknife Credit Surly Bob's Sports Bar) Robert Hofmann, Melissa; Hay River Credit 248,000.00 NWT Ltd Korotash, Wayne NWT Ltd NWT BDIC Sachs Harbour Subsidy NWT Ltd oa - NWT BDIC Fort McPher Subsidy Fort McPherson Tent son Canvas Shop) Acho Dene Native Crafts NWT BDIC Fort Liard Subsidy Alison McCreesh (o/a Ali- Contribu- McCreesh, Alison Yellowknife 10,000.00 son McCreesh Illustration) tion Bourque, Charlie; Arctic Pure Natural Spring Borque, Roger; Credit 30,000.00 Water Fort Smith Borque, Ryan Arctic Pure Natural Spring Contribu- Bourque, Charlie 10,000.00 Water Fort Smith tion - Contribu- Cornerstone Oileld Ser Doctor, Benny Tulita 20,000.00 vices tion - NWT BDIC Fort Provi Subsidy Dene Fur Clouds dence Deneyoua, Rufus (o/a Contribu- Deneyoua, Rufus 1,142.37 R.W. Contracting) Fort Simpson tion Deninu K'ue Development Deninu Kue First Credit Corporation Ltd. Nation Contribu- Erasmus Apparel Ltd. Sarah Erasmus Yellowknife 10,000.00 tion - Contribu- Frost Janelle oa Imag Inuvik 8,288.00 ine That!?) Frost Janelle tion

Northwest Territories Business Development and Investment Corporation 15 Disbursements

Giroux, David William (o/a Contribu- Giroux, David Dettah Arctic Firewood Great tion Slave Boat) Groat, Kirby & Wendy (o/a Groat, Kirby; Groat, Credit Deh Cho Suites) Wendy Fort Simpson Homister, John (o/a Mck- Homister, John Credit enzie Manor) Fort Simpson Hoppenbrouwers, Judith Hoppenbrouwers, Contribu- Behchoko (o/a Kompas Solutions) Judith tion Louie, Peter J; Gru- J&L Transport Limited Tuktoyaktuk Credit ben Peter Louie Jacquard, Larry (o/a Villa Contribu- Jacquard, Larry Yellowknife Imports) tion Kikoak, Anna (o/a Anna's Contribu- Homecooking and Kidz Kikoak, Anna 10,000.00 Fort Smith tion Club) Marselos, Peter; Martselos Services Ltd. Fort Smith Credit Martselos Frieda McDonald, Mandi Lee Contribu- (o/a Mandi Lee's Mobile Mcdonald, Mandi Norman Wells 20,000.00 tion Kitchen) Contribu- Mercredi, Travis Mercredi, Travis Yellowknife tion Contribu- Migwi, Mabel Mary Migwi, Mabel Yellowknife 10,000.00 tion Depuis, Morgan; Morgan's Mechanical Ltd. Hay River Credit Dupuis, Kristy Contribu- Moses, Darcy E. Moses, Darcy Wrigley tion Contribu- Moses, D'arcy J. Moses, D'arcy J. Wrigley tion Nahanni Butte General NWT BDIC Nahanni Subsidy Store Ltd. Powder, Denis Thomas Powder, Denis (o/a Silver Bullet Con- Hay River Credit 200,000.00 Thomas tracting) Redvers, Nicole (o/a Gaia Redvers, Nicole Yellowknife Credit Naturopathic Clinic) Sabine, Jeremiah (o/a Contribu- Sabine, Jeremiah Yellowknife Arctic Balancing) tion

16 Northwest Territories Business Development and Investment Corporation Disbursements

Scott, Craig (o/a Arctic Contribu- Mitchell, Mike Yellowknife Harvest) tion Sibbeston, Darlene (o/a Contribu- Sibbeston, Darlene XIH SHETS'ETIH) Fort Simpson tion Jean Marie Contribu- Simon, Isidore Paul Simon, Isidore River tion Jean Marie Contribu- Simon, Lucy Simon, Lucy River tion Simpson Air Ltd Grant, Edward J Fort Simpson Credit Contribu- Taylor, Derrald Taylor, Derrald Yellowknife tion Contribu- The Martial Centre Inc. Spencer, Nicole Yellowknife 10,000.00 tion Tsetso, Christine (o/a Trail Contribu- Tsetso, Christine 1,014.00 River Creative Services) Fort Simpson tion Contribu- Villebrun, Greta Villebran, Greta tion Watier, Eilzabeth (o/a Contribu- Watier, Elizabeth Yellowknife 10,000.00 Northern Engraving Plus) tion Whelly, Brendan (o/a Sign Whelly, Brendan Credit Magic) Fort Simpson Kakfwi, Stephen; Contribu- Yamotech Inc Ungerneau, Rares; Yellowknife tion Zoe, John Young, Laurie (o/a The Rusty Raven Gallery & Young, Laurie Fort Smith Credit 200,000.00 Gift)

Total:

Northwest Territories Business Development and Investment Corporation 17 18

18 Northwest Territories Business Development and Investment Corporation