2004 Annual Report

APPRECIATING VALUE

  

APPRECIATING VALUE

   Table of contents Head Office and Plant Royal Canadian Financial and operating highlights 3 320 The Mint at a glance 4 Ottawa, K1A 0G8 Message from the Chairperson 6 (613) 993-3500 Message from the President and CEO 8 Performance against objectives 10 Plant Directors and Officers 16 520 Lagimodière Blvd. Management’s discussion and analysis 17 Winnipeg, Manitoba Statistics 34 Canada R2J 3E7 (204) 983-6400 Consolidated financial statements 39 Notes to consolidated financial statements 44 www.mint.ca

Printed in Canada Financial and operating highlights

2004 2003 % change

Key financial highlights (in millions of dollars) Revenue 324.2 254.7 27.3 Income before income tax 16.0 0.5 3,100.0 Net income (loss) from discontinued operations 0.0 (2.7) 100.0 (net of taxes) Net income (loss) 11.1 (3.0) 470.0 Total assets 168.8 140.2 20.4 Capital expenditures 6.9 4.6 50.0 Cash flow from operating activities 18.6 13.8 34.8 Key operating highlights Circulation produced (in millions of pieces) 2,055.4 1,363.2 50.8 sales (in thousands of ounces) 285.8 237.6 20.3 Number of employees 672 471 42.7

Gross profit 72.0 54.5 32.1 Value-added sales revenue per employee 154.0 67.0 130.0 Pre-tax return on equity from continuing operations 17.4% 0.6% 2,800.0 Debt to equity ratio 0.21:1 0.29:1 (33.3) Shareholder’s equity 97.0 86.0 12.8

Total production (millions of pieces) 2,060.8 1,367.5 50.7

RevenueRevenueRevenue (segmented) (segmented) (segmented) NetNet income Netincome income (loss) (loss) (loss) TotTotal productionalTot productional production ($ in($ millions)in($ millions) in millions) ($ in($ millions)in($ millions) in millions) (millions(millions(millions of pieces)of pieces) of pieces)

3,976.93,976.93,976.9

350.4350.4350.4 11.111.1 11.1 324.2324.2324.2 302.6302.6302.6

246.0246.0246.0254.7254.7254.7 5.6 5.6 5.6 2,406.72,406.72,406.7 2,060.82,060.82,060.8 1,714.01,714.01,714.0 (1.8)(1.8)(5.4)(1.8)(5.4)(3.0)(5.4)(3.0) (3.0) 1,367.51,367.51,367.5

0000 0100 0102 0102 030203 040304 04 0000010001020102 030203 0403 04 04 0000010001 020102 030203 0403 04 04

CanadianCanadianCanadian Circulation Circulation Circulation CanadianCanadianCanadian Numismatic Numismatic Numismatic ForeignForeignForeign Circulation Circulation Circulation BullionBullion Bullionand and Refinery andRefinery Refinery

3 The Mint at a glance

BUSINESS LINE BUSINESS LINE RESULTS

Royal Canadian Mint The Royal Canadian Mint is a fully commercial Crown Revenue by segment In 2004, the Mint delivered corporation responsible for the production of all circu- revenue of $324.2 million and lation coins used in Canada and for the management net income of $11.1 million, of the supporting distribution system. It is also one of one of the largest year-over- the world’s premier producers of circulation, numis- year turnarounds in its history. matic and bullion investment coins for the domestic and international marketplace. As one of the world’s largest gold refiners, it refines and recasts gold for Cdn. circulation 63.4 Foreign circulation and Canadian and foreign customers. Cdn. numismatic 52.6 numismatic 25.1 Bullion, Refinery and other 183.9

Canadian Circulation Canadian circulation Canadian numismatic revenue For The Mint’s responsibilities include: Revenue ($ in millions) Increased revenue was driven ($ in millions) ($