A778.01 IS AR inside fp - Crown Investments Corporation

I N V E S T M E N T S T R A T E G YFundamental OpportunitiesInvestment Saskatchewan’s capital allocation in 2005 will be directed according to it’srenewed focus and mandate. It takes strong fundamentals to grow a company. These strongfundamentals ensure every opportunity is captured to maximize returns from investments whilebalancing the risk and reward equation. The organization envisions an investment environmentwhere the “no surprises” rule prevails, but recognizes that environment is elusive at best.The nature of financial investment,and private equity in particular, is totake educated risks while utilizing bestefforts and knowledge to mitigate thoserisks. Not all investments are equal.The challenge our investment professionalsaccept every day is to makequalified, knowledgeable decisions aimedat producing a financial return forthe province.In addition, we continually reviewthe current state of our investments.Our risk management policies includeregular assessment by our investmentstaff to review the appropriateness of the carrying value of ourinvestments. Based on their review, the Corporation will writedown certain investments if management determines animpairment exists to an investment.INVESTMENT FOCUSInvestment Saskatchewan’s capital for new investmentsis directed towards business opportunities in the province.Early stage, start-up, expansion financing, managementbuyouts, restructuring or turnarounds are various segmentsthat may be attended to by Investment Saskatchewan’s directinvestments, its fund-of-funds, or through strategic relationshipswith third-party fund managers.Currently, Investment Saskatchewan limits its role in theprovision of seed capital and smaller investments (less than $3million) to participation in pools of capital or funds managedby third parties where possible.InvestmentSaskatchewan’scapital for newinvestments isdirected towards keysectors that drivethe Saskatchewaneconomy.Investment Saskatchewan’s directinvestments are generally targeted tomedium and larger projects (greater thanapproximately $3 million).TARGET SECTORSInvestment Saskatchewan’s targetsectors flow from the province’s overalleconomic development strategy.Investment activity supports Saskatchewan’soverall economic developmentstrategy including a focus on the followingsectors:Agri-value and Agri-related–Food, crop and beverage processing (e.g., frozen foodprocessing, specialty crop processing);– Meat processing (e.g., pork and poultry processing);– Nutraceuticals (e.g., health food, “natural” products); and–Agricultural equipment (e.g., power train equipment).Advanced Technology–Agricultural biotechnology (e.g., new seed and bio-inputs,new oils, improved livestock feed, biodegradable plastics,fermentation); and– Life sciences (e.g., new pharmaceuticals, health research,nanotechnology).Information Technology– Electronics and instrumentation (e.g., Canadian Light SourceSynchrotron-enabled research and technology); and– Bio-products and processing (e.g., agriculture and healthcare enabling technology).10