2004 Crown Investments Corporation of Saskatchewan Annual Report
2004 Crown Investments Corporation of Saskatchewan Annual Report
2004 Crown Investments Corporation of Saskatchewan Annual Report
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MANAGEMENT’S DISCUSSION AND ANALYSISAchieving Corporate Priorities in <strong>2004</strong>Shareholder ReturnCIC is working to implement importantpublic policy initiatives, such as thelowest - cost utility bundle program, whilemaintaining a reasonable return to theshareholder.In <strong>2004</strong>, CIC declared a dividend <strong>of</strong> $268million to the General Revenue Fund,reflecting:a consolidated return on equity <strong>of</strong> 9.6%;a non-consolidated cash return on equityto the shareholder <strong>of</strong> 17.6%.$ Millions5004003002001000Consolidated Earnings for the periodFinancial SustainabilityCIC works to ensure both its financialperformance as well as its financialsustainability by ensuring it has sufficientcash resources over the planning horizon topay dividends to the GRF.CIC funds new initiatives based on theprinciple <strong>of</strong> sustainable financial selfsufficiency.Enhancing AccountabilityCIC is increasing its transparency andaccountability. During <strong>2004</strong>, manyfundamental disclosure changes were madeincluding the introduction <strong>of</strong> public quarterlyreporting in the <strong>Crown</strong> sector and disclosure<strong>of</strong> budget information in the Government <strong>of</strong><strong>Saskatchewan</strong>’s summary budget.CIC continuously evaluates new standardsfor financial reporting and corporategovernance. The magnitude <strong>of</strong> changes andour work towards meeting these challengeshas been extensive.-10014%12%10%8%6%4%2%0%-2%-4%2000 2001 2002 2003Ongoing2000 2001 2002 2003Ongoing<strong>2004</strong>Non-operatingConsolidated Return on Equity for theperiod<strong>2004</strong>Non-operatingAs a result <strong>of</strong> strong earnings, CIC paid a dividend to the GRF <strong>of</strong> $268 million, compared to its dividend target<strong>of</strong> $250 million. The original target was adjusted to $188 million to reflect public policy expenditures (initiallyestimated at $54 million) and additional grant funding to a subsidiary corporation ($8 million). Strong financialperformance <strong>of</strong> the <strong>Crown</strong> sector in <strong>2004</strong> enabled special dividends <strong>of</strong> $80 million: $5 million in support <strong>of</strong><strong>Saskatchewan</strong>’s Centennial celebrations, and $75 million for the Canadian Agricultural Income Stabilizationprogram.39 C I C
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