Total Finance Magazine Summer 2022

TotalFinance SUMMER 2022

C A N A D A’ S M A G A Z I N E F O R F I N A N C I A L E X E C U T I V E S

SECTOR INSIGHTS

Growing Beyond Groceries

❱ Top 10 Opportunities for Tech Companies ❱ Role of Finance Continues to Evolve ❱ How Soft Skills Give CFOs an Edge

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TALKING POINTS REGULATORY NEWS

TA L K I N G P O I N T S

A coalition of more than 25 National Indigenous Organizations has unveiled a new National Indigenous Economic Strategy (NIES), the first such strategy to be built and designed exclusively by Indigenous leaders, institutions, and organizations from across Canada. The strategy has four strategic pathways, People, Lands, Infrastructure and Finance, with 107 Calls to Economic Prosperity to guide Canadian society toward a more equitable and prosperous future. The Strategy reveals that policy changes and investments to correct a history of excluding Indigenous peoples from economic opportunity will benefit all Canadians, not just Indigenous peoples. Research has found that if the gap in opportunities for Indigenous communities was closed, it would result in a boost of more than $30 billion to Canada’s GDP. Further, if Indigenous peoples had equitable access to economic opportunities, 135,000 more First Nations, Métis, and Inuit individuals would be employed, bringing in $6.9 billion per year in employment income. At the same time, reducing poverty among Indigenous peoples would save federal and provincial/territorial governments more than $8 billion a year. “Canada has become wealthy from the natural resources of Indigenous lands while many Indigenous people continue to live in poverty,” says NIES spokesperson Dawn Madahbee Leach. A recent study conducted by the Canadian Centre for Policy Alternatives found that Indigenous children in Canada are more than twice as likely to live in poverty. “This is an opportunity for governments and the business sector to truly advance reconciliation, in a tangible way,” says Leach. “Reconciliation will be achievable when we embrace and foster a new era of Indigenous economic inclusion and wealth creation. This strategy shows a way to that goal that not only benefits Indigenous peoples, but all Canadians”. Industry and business play an extremely significant role in how the economic, social, and cultural aspects of reconciliation are addressed, including the extent to which opportunities and benefits are truly shared with Indigenous Peoples.

$$$ Buyer demand is at an all-time high, with equipment & truck finance applications up 18 percent from last year. Equipment and truck pricing has hit record highs in 2022, showcasing a sellers’ market with a ton of demand for equipment. For the first time in its history, Ritchie Bros. Financial Services (RBFS) has surpassed US$1 billion in open credit approvals from customers across North America. Chris Quinn, Vice President, Sales & Marketing, Ritchie Bros. Financial Services said RBFS’ two main financing solutions—PurchaseFlex and LeaseFlex—allow customers to buy what they want, where they want. Both options provide up to 100 percent financing with $0 down, low monthly payments, flexible schedules, and the ability to shop anywhere for almost anything. A third RBFS product just entering the market is EquityFlex, which gives customers the ability to refinance current equipment in their fleet for working capital needs, extend the period of financing to drive lower payments, or use the equity from free and clear machines to pay off debt on redundant equipment.

$$$ The International Finance Forum (IFF) is accepting applications for the annual IFF Global Green Finance Award. Echoing the theme of World Environment Day ,”Only One Earth”, which stresses on the need to change through policy changes and our choices to live in harmony with nature in a sustainable way, the IFF Global Green Finance Award is targeting applicants offering green financial solutions that promote the transformation of economic growth modes, contribute to pollution prevention and control and address climate change, as well as improve energy efficiency, energy conservation and emission reductions. This year’s award is a global call for innovations and application practices in policy, system, industry, services, technology and talent building.

The Earth is our only home, and we must protect its limited resources. Unsustainable consumption and production are contributing to climate change, natural degradation and biodiversity loss, as well as pollution and waste crisis. All of these issues intersect and overlap, seriously jeopardizing the future of the planet.

Natural resources are the basis for most goods, services and facilities, and the foundation that supports our economy. However, the linear “take-make-dispose” model is driving the global economy while consuming vast amounts of natural resources. To limit global warming to 1.5°C this century, we must ensure that annual global greenhouse gas emissions are cut in half by 2030. However, due to the ongoing impact of the COVID-19 pandemic over the past three years and the recent intense geopolitical turmoil in the world, economies around the globe are sliding to the brink of economic and energy crises. We must take urgent action to address the looming crisis. However, all these require strong financial support. The IFF Global Green Finance Award was launched by the IFF in 2020, and is judged by a panel of 25 globally influential and authoritative financial leaders and elites from the financial and environmental sectors. In 2022, the award will include 10 Innovation Awards for innovative projects and 10 Annual Awards for institutions. IFF has been upgraded to F20 (Finance 20) status.

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SUMMER 2022 • WWW.TOTALFINANCE.CA

Table of Contents 3

TALKING POINTS

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CFO CV

SECTOR INSIGHTS

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Growing Beyond groceries: Understanding the Financial Power of The Ecosystem Expansion Grocers are in a unique position to expand beyond their core retail offerings. It can be challenging to build an ecosystem — but the rewards could be worth it.

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Summer 2022 Volume 2 Number 3

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Publisher / Corporate Sales Steve Lloyd steve@totalfinance.ca

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LEADERSHIP

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Jack Franklin, Partner, Davies Ward Phillips & Vineberg LLP

Gillian R. Stacey, Partner, Davies Ward Phillips & Vineberg LLP

Jenny Hu, Associate Partner, McKinsey Toronto Jonatan Janmark, Partner, McKinsey Stockholm Nicholas Landry, Associate Partner, McKinsey Vancouver

Randall Tavierne, Private Assurance Leader, Global EY Stephan van Rhee, Technology Sector Analyst, EY Global

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How Will Soft Skills Give CFOs a Sharper Edge?

Creative Direction / Production Jennifer O’Neill, jennifer@totalfinance.ca

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Understanding The Opportunities for AI-Cameras and LiDARs for Smart Road Infrastructure Top 10 Opportunities for Technology Companies in 2022

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ELFA Report Forecasts 2022 Equipment Markets

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Filling the Gap: Scope of Canadian Anti-Money Laundering Laws Expanded

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Barak Ravid, Leader, EYParthenon Americas

Daniel Oh, Country Manager (interim), Sage Canada

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Steven Begley, Partner, McKinsey New York

The Role of Finance Continues to Evolve

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Zain Rizvi, Partner, Davies Ward Phillips & Vineberg LLP

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EQUIPMENT FINANCE

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Contributors Dr. Georges Aoude, Co-founder, Derq

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CFO CV NEWS REGULATORY RYU Apparel Inc. (TSXV: RYU) (OTCQB: RYPPF) (FWB: RYA), creator of award-winning urban athletic apparel, welcomes Robert Lelovic, CA, CPA as its new Chief Financial Officer (CFQO).

Lelovic brings two decades of experience building public companies across diverse industries from Silicon Valley technology companies to the energy sector in the Canadian Oil Fields and the Financial District of Toronto. During his time as a Senior Manager at PricewaterhouseCoopers, Lelovic garnered extensive experience not only in the preparation and review of financial disclosures for publicly traded companies but also includes but is not limited to the implementation of corporate governance practices and regulatory reporting including prospectuses, both for OSC and SEC clients. He monitored a wide variety of engagements including, budget reviews, audits, initial public offerings, due diligence, and special reporting such as IFRS diagnostics and the preparation of white papers, GAAP reconciliations and internal control reports. Lelovic as CFO has an aggregate of 7,722,000 options to purchase common shares of the Company of which, 2,250,000 of the options issued were to directors and or officers of the Company. The options vest immediately and are exercisable for a period of 5 years from the date of grant at a price of $0.055 per common share. RYU Apparel, or Respect Your Universe, is an award winning urban athletic apparel and accessories brand engineered for active lifestyles. Designed without compromise for fit, comfort, and durability, RYU exists to facilitate optimal human performance.

Frontera Energy Corporation (TSX: FEC) says René Burgos Díaz, who was a director of the Company, has been appointed Chief Financial Officer effective June 3, 2022. He replaces Alejandro Piñeros, who is stepping down as Chief Financial Officer to pursue other career opportunities. “I am pleased to announce that René Burgos has been appointed as Frontera’s new CFO. We are fortunate to have such a qualified candidate in René to fill this important executive leadership role. René’s two plus years as a key member of Frontera’s Board of Directors, including his participation in the Company’s Audit Committee and Compensation and Human Resources Committee has helped give him key insights into the Company and its financial structure and approach and will allow him to seamlessly excel in this critical role. René clearly understands the shareholders’ perspective and will continue to work with the Board of Directors and the Company to unlock value,” said

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Gabriel de Alba, Chairman of Frontera’s Board of Directors. Burgos is a financial markets executive with over 20 years of experience in investment management, leveraged financing, restructuring and financial advisory expertise across multiple industries and geographies, specifically Latin America. Most recently, he served as the Head of Private Credit for Latin America and Portfolio Manager for the Latin America Private Credit Opportunities fund (LAPCO) for Compass Group, a LatAm-based asset manager. Prior to joining Compass Group, Mr. Burgos held various roles within financial firms with a focus in Latin America including Carval Investors LLC, Deutsche Bank and Bank of America. Mr. Burgos holds a Bachelor of Business Administration, Accounting and Finance from the Universidad de Puerto Rico. Frontera Energy Corporation is a Canadian public company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 34 exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in Colombia. Frontera is committed to conducting business safely and in a socially, environmentally and ethically responsible manner.

Stuart Adair is moving on to a new challenge as of June 15th. During his long tenure, he oversaw the company’s public company obligations and delivered financial reporting at the standard expected of a highly respected company such as Accord. In addition to her experience at Accord, Eddy has her law degree from Fordham University and is a certified public accountant (inactive).

Accord Financial is North America’s most dynamic commercial finance company providing fast, versatile financing solutions for companies in transition including asset-based lending, factoring, inventory finance, equipment leasing, trade finance, and film/media finance. By leveraging our unique combination of financial strength, deep experience, and independent thinking, we craft winning financial solutions for both small businesses and medium-sized enterprises, simply delivered, so our clients can thrive. For 44 years, Accord has helped businesses manage their cash flows and maximize financial opportunities.

Rajesh Kalathur

Irene Eddy

Accord Financial Corp., one of Canada’s leading independent commercial finance companies (TSX: ACD) announced the appointment of Irene Eddy as interim CFO effective June 15, 2022 alongside the departure of Stuart Adair, the company’s long-time CFO. Eddy joined Accord in 2019 as Senior Vice President, Capital Markets, and as a member of the executive leadership team, helped guide corporate strategy and planning. Since joining Accord, she has handled all aspects of the company’s financing requirements, including managing its key banking relationship and diversifying its sources of capital through the addition of several strategic funding partners. After almost twenty years with Accord,

Deere & Company (NYSE: DE) announced the board named Rajesh Kalathur to the position of Chief Financial Officer, effective May 31, 2022. As Chief Financial Officer Kalathur will retain his present duties for John Deere Financial and have continued oversight for information technology. His areas of responsibility as CFO include accounting and reporting, treasury, taxes, internal audit, strategy and business development, sustainability, and investor relations. Prior to assuming his current role, Kalathur was President, John Deere Financial and Chief Information Officer (CIO) where he led the team responsible for ensuring that John Deere equipment customers throughout the world have ready access to competitive financing. Under Kalathur’s leadership, the John Deere Financial loan portfolio has grown to over $50 billion. In addition, Kalathur served as CIO and successfully helped lead the company’s digitalization journey. His CIO responsibilities will now be led by Ganesh Jayaram who has been appointed as the Chief Information Officer, effective May 31. Deere & Company (www.

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CV REGULATORYCFO NEWS JohnDeere.com) is a global leader in the delivery of agricultural, construction, and forestry equipment.

We help our customers push the boundaries of what’s possible in ways that are more productive and sustainable to help life leap forward. Our technology-enabled products including John Deere Autonomous 8R Tractor, See & Spray™, and E-Power Backhoe are just some of the ways we help meet the world’s increasing need for food, shelter, and infrastructure. Deere & Company also provides financial services through John Deere Financial.

Tetra Bio-Pharma Inc. (TSX: TBP) (OTCQB: TBPMF) (FRA: JAM1) a leader in cannabinoid-derived drug discovery and development is pleased to announce the appointment of Leslie Auld, H.BSc, MBA, CPA, as Chief Financial Officer and member of the Company’s executive team, effective May 30, 2022.

Auld is a seasoned Financial Executive with over 30 years of relevant experience, including a background in Canadian and U.S. publicly listed companies in the pharmaceutical and diagnostic technology industries. She has held executive positions in biotechnology companies developing investigational new drugs, which is the core activity of Tetra. Auld is an analytical, strategic, and solutions-oriented finance professional who combines strong planning, organizational, and communication skills with proven ability to lead high-level operations and interact with senior management and Board of Directors. Tetra BioPharma is a leader in cannabinoid-derived drug discovery and development with a FDA and a Health Canada cleared clinical program aimed at bringing novel prescription drugs and treatments to patients and their healthcare providers.

CGI (TSX: GIB.A) (NYSE: GIB) announced François Boulanger, currently Executive Vice-President and Chief Financial Officer, will assume the position of President and Chief Operating Officer; and Steve Perron, currently Senior Vice-President and Corporate Controller, will assume the position of Executive Vice-President and Chief Financial Officer.

François Boulanger has nearly 35 years of experience in the IT and professional services industry. He joined CGI 24 years ago, and held a number of senior leadership roles before being named Chief Financial Officer in 2014. Steve Perron has 30 years of experience in the IT and professional services industry. He joined CGI 23 years ago, and held a number of senior finance roles, before being named corporate controller in 2019. He will join the CGI Executive Committee and

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report directly to George Schindler. “At CGI, financial strength is a core value—and Steve is a consummate ambassador and driver of our commitment to delivering strong, consistent financial performance for the benefit of our shareholders, clients, and employees,” noted George Schindler. “As CFO, we look forward to his expanded contribution leading our global financial teams to help deliver superior returns.” Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world.

With 84,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2021 reported revenue is C$12.13 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB).

Quarterhill Inc. (TSX: QTRH) (OTCQX: QTRHF) announces that John Karnes has been appointed Chief Financial Officer of the Company effective June 6, 2022. Mr. Karnes will replace Steve Thompson, Wi-LAN Inc.’s CFO, who is currently interim-CFO of Quarterhill. Karnes is an experienced technology executive with more than 20 years spent in CFO roles within both publicly traded and private equity enterprises. Specifically, he has extensive experience in CFO roles with public companies listed on the NYSE and NASDAQ, including Mariner Energy (NYSE: ME), The Houston Exploration Company (NYSE: THX), CyberCash, Inc. (NASDAQ: CYCH) and KiOR, Inc. (NASDAQ: KiOR), where he led during periods of transformation characterized by acquisition and integration, while ensuring regulatory compliance and operational efficiency. Karnes will be based in Dallas, Texas.

Most recently, Mr. Karnes was CFO of Ontellus, a leading US SaaS health record exchange network connecting over 190,000 national physician groups and hospital systems to some of the country’s largest insurance carriers. Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry, as well as, through its Wi-LAN Inc. subsidiary, a leader in Intellectual Property licensing.

Raymond James Ltd., the Canadian arm of North American investment dealer Raymond James

Financial Inc. has appointed Scott Hudson, Executive Vice President, Head of Wealth Management, Private Client Group effective June 1, 2022. “As we continue to build on the success of our wealth management business in Canada, a key priority is to support our advisors and their teams with the best possible leadership partners,” said Jamie Coulter, CEO, Raymond James Ltd. “Scott’s deep expertise building relationships with advisors and other colleagues, along with his ability to find solutions to enhance efficiencies and support, make him ideally suited to help take our wealth management business to a new level of excellence.” Scott’s career, starting as an advisor, includes various wealth management executive roles at a number of financial service firms in Canada. Raymond James Ltd. is the Canadian arm of Raymond James Financial, Inc., one of North America’s leading full service investment dealers.

Raymond James was established in 1962 on the principle of always putting the needs of clients first.

Today, this principle remains the foundation on which the firm continues to serve individual and institutional investors, as well as corporate issuers.

Through its network of approximately 8,730 financial/investment advisors and portfolio managers across Canada, the United States and key international centres, Raymond James Financial, Inc. and its affiliates manage more than US$1.26 trillion in client assets under administration.

Linda Mezon-Hutter

Long-time Canadian Accounting Standards Board (AcSB) Chair Linda Mezon-Hutter, FCPA, FCA, CPA (MI), CGMA will be joining the International Accounting Standards Board (IASB) as a member in September 2022. Appointed as AcSB Chair in July 2013, Linda’s career journey took her through Canada’s adoption of IFRS® Standards and the development of the separate Handbook sections that we see today for private enterprises, not-forprofits, and pension plans. Members of the IASB are appointed by the Trustees of the IFRS Foundation through an open and rigorous process, with the composition of the IASB requiring broad

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CFO CV geographical diversity and varied experience.

Before joining the AcSB as Chair, Linda was the Chief Accountant at the Royal Bank of Canada (RBC), responsible for the interpretation and application of IFRS Standards and U.S. GAAP. She also monitored compliance with Canadian regulatory requirements on financial disclosure and was responsible for auditor independence. Before RBC, Linda held other senior positions in industry and has four years of experience in public accounting. “The appointment of Linda to the IASB is a tremendous achievement for Canada,” says Lorraine Moore, Chair, Accounting Standards Oversight Council (AcSOC). “Canada’s globally recognized reputation in standard setting has been strengthened by Linda’s leadership on the AcSB and her commitment to establishing high-quality standards in Canada and globally.” The Accounting Standards Board (AcSB) is an independent body with the authority to establish accounting standards for use by all Canadian entities outside the public sector. It serves the public interest by establishing standards for financial reporting by all Canadian private sector entities and by contributing to the development of internationally accepted financial reporting standards.

Aimee DeCamillo

Manulife Investment Management appointed Aimee DeCamillo as global head of retirement.

DeCamillo will be accountable for the strategy, growth, and overall success of the organization’s global retirement business. Manulife Investment Management is committed to retirement on a global scale and operates across a diverse footprint of markets with a strong presence in Asia, Canada, and in the U.S. - operating as John Hancock Retirement. With more than $330 billion in retirement assets under management and administration, the company supports over 250,000 retirement plans and serves over 8 million individual participants who rely on its retirement plan administration and investment expertise to help them prepare and save for their retirement.

She will work closely with teams around the world

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to ensure the nuances of local markets are represented in a strategic global approach that reflects best practices and drives opportunities for collaboration and leverage across regions.

DeCamillo will also collaborate with Manulife Investment Management’s public and private markets investment teams to develop investment solutions for the global retirement platform. She reports to Paul Lorentz, president and CEO, Manulife Investment Management and is based in Boston. “I’m thrilled to have Aimee join us as her insights and experience will be valuable for our global customer base, particularly in light of the challenges plan participants and members face in today’s environment of economic uncertainty and rising inflation,” said Paul Lorentz. “Aimee’s background in retirement innovation from both an investments and provider perspective will help us deliver additional capabilities to customers and stay competitive in a marketplace that has evolved quickly through consolidation, regulation, and overall investor need.” “Managing the global retirement business is an incredible opportunity to have a positive impact on the well-being of so many individuals around the world,” said Aimee DeCamillo. “It’s a privilege to join a firm with the depth of expertise globally and the scale necessary to grow organically while incubating new ideas to help achieve our clients’ retirement plan goals. I look forward to working closely with the teams across regions to accelerate the development of these solutions in a meaningful way for each market.” Aimee has extensive retirement leadership experience, most recently serving as chief commercial officer on the executive leadership team at Jackson Financial, a leading NYSE-listed life insurance and annuity company.

Prior to that role, Aimee was president and head of retirement plan services for U.S.-based asset manager, T. Rowe Price. She also spent several years in various leadership roles at Bank of America and Merrill Lynch. Manulife Financial Corporation is a leading international financial services provider that helps people make their decisions easier and lives better. Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation.

WestJet announced the appointment of Chris Avery, as Vice-President, Commercial Strategy.

Avery, a former WestJetter, will join WestJet’s senior leadership team effective immediately.

“Chris’ knowledge and experience will be critical as we continue to drive growth and accelerate

Chris Avery

recovery,” said John Weatherill, WestJet Executive Vice-President, Commercial. “We are thrilled to welcome Chris back to the WestJet team as travel demand ramps up and we focus on our long-term commercial strategy.” Avery returns to WestJet following five years with Canadian North where he served as President and CEO from 2018 to 2022 and as Vice-President, Customer and Commercial from 2017 to 2018. During his time at the helm of Canadian North, Avery led the merger and integration activities between Canadian North and First Air and successfully navigated the pandemic crisis to position the airline for recovery. Prior to joining Canadian North, Avery spent 11 years with WestJet in senior leadership roles serving as VicePresident, Network Planning and Alliances, VicePresident and General Manager WestJet Vacations and Vice-President, Revenue and Planning. With more than two-decades of aviation experience across North America, Avery has also held positions with Alaska Airlines, Air Transat and Canadian Airlines International. “I am excited to return to WestJet at such a pivotal time as the business evolves to meet the travel and vacation needs of Canadians in recovery,” said Avery. “This is dynamic and innovative team and I’m looking forward to working alongside WestJetters to ensure the airline’s future success.” In 25 years of serving Canadians, WestJet has cut airfares in half and increased the flying population in Canada to more than 50 per cent. WestJet launched in 1996 with three aircraft, 250 employees and five destinations, growing over the years to more than 180 aircraft, 14,000 employees and more than 100 destinations in 23 countries, pre-pandemic.

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SECTOR REGULATORYINSIGHTS NEWS

Growing Beyond Groceries: Understanding the Financial Power of The Ecosystem Expansion Grocers are in a unique position to expand beyond their core retail offerings. It can be challenging to build an ecosystem—but the rewards could be worth it.

BY STEVEN BEGLEY, JENNY HU, JONATAN JANMARK, NICHOLAS LANDRY, AND TOM YOULDON

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here are few locations more central to our lives than grocery stores. Whether we grab items daily or stock up weekly, we visit them so regularly that no other retail business has nearly as many consumer touch points or generates as much user data. And with their vast store networks, supply chains, and last-mile setups — along with the trusted relationships they have with consumers — grocery retailers have an enviable platform to build on to expand beyond their core business.

For many decades, grocers have been actively leveraging their store networks, frequent transactions, and brand strength to grow beyond food into areas including non-food retail (such as hypermarkets), pharmacy retail, financial services, and more. Yet today, the opportunity to grow beyond these core services is greater than ever. Through digitalization, expanding the

grocery business into other domains has become much more scalable because the industry is no longer tied to physical stores.

The most ambitious version of leveraging this platform is to build an ecosystem (see sidebar, “What is an ecosystem?”). Digital-first retailers such as Amazon and Alibaba have led the way, building what many consider the most successful ecosystems in the world. Leading traditional grocers such as Walmart, Loblaws, and Ahold Delhaize have followed, moving in the ecosystem direction. Still, many grocery retailers have yet to take full advantage of today’s digital technology.

These grocers could unlock opportunities for both additional revenue streams and higher valuations by thinking through whether their unique assets—their customers and traffic, brand, physical assets, and so on — can provide attractive growth opportunities beyond the core.

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What is an ecosystem?

How leading grocers are building ecosystems The pattern is clear: grocers venturing beyond grocery generate higher returns for shareholders. In fact, the world’s top eight retailers by revenue market share, five of which are grocers (Amazon, Costco, Kroger, Schwarz Group’s Lidl, and Walmart), all experimenting with such expansions.

Our analysis finds publicly traded grocers pursuing some form of ecosystem strategy have been rewarded with higher enterprise values (EV) relative to the broader grocery sector. We have identified about 15 grocers with some ecosystem activity that have an average EV to EBITDA multiple of 15.3, compared with an overall average multiple of 10.7 for the grocery companies in our data set. Even if some expansion activities may dilute earnings margins in

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the short term, they can still drive value for shareholders as a business is repositioned toward investors.

In essence, the value creation from ecosystem activities is delivered in three ways: ◉ driving more revenue in the core grocery business in stores and online thanks to increased loyalty ( from the value of participating in the ecosystem) and a boost in adding new customers ( from the large set of touchpoints in the ecosystem); ◉ adding new revenue pools, including by monetizing loyalty data, creating new media platforms, tapping into categories adjacent to groceries, and delivering new fee-based services; and ◉ market repositioning from traditional grocery to a technology- and data-

An ecosystem is an interconnected set of products and services through which customers can fulfill a variety of needs in one integrated experience. In grocery, that could include being able to buy not only food but also alcohol, pharmaceuticals, and home goods. It could mean being able to bank at the grocery store or use its distribution network to receive at-home meal-kit deliveries.

At the core of everything, though, is the customer connection, which creates additional value for all stakeholders. A successful ecosystem typically builds on several pillars: ◉ Frequent usage and engagement with stakeholders beyond pure commerce; ◉ A network of services provided through expansive partnerships; ◉ Strong network effects that compound value for customers and participants — the larger the ecosystem, the more value to each participant; and ◉ Rich, data-enabled experiences.

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SECTOR INSIGHTS enabled platform with many potential growth vectors, increasing the valuation multiple.

Consider the US-based grocer Walmart.

It has a vast, integrated, compounding ecosystem intended to engage and deepen its share of wallet beyond retail for its 150 million weekly customers. Walmart provides healthcare services through a network of primary health clinics, offers in-store lab testing in partnership with Quest Diagnostics, and works with insurer Humana to sell Medicare drug plans.

In financial services, it provides prepaid cards in partnership with Green Dot, money transfer services through MoneyGram, and tax services through Jackson Hewitt. Its Walmart+ membership program includes benefits such as free shipping and cheaper prescriptions, while Walmart Marketplace competes with Amazon and is growing rapidly through its expanding network of third-party sellers.

Similarly, Netherlands-based Ahold Delhaize has built an ecosystem that includes different business models in food, such as food service through FreshDirect and partnerships in Europe, e-commerce full-basket delivery, and a variety of store formats, including supermarkets and convenience. Ahold Delhaize has also scaled its non-food marketplace, and is making steps in media monetization and personalization across its food and nonfood propositions, leveraging its consumer data and insights.

consumer (B2C) verticals and touchpoints, or externalizing and monetizing internal capabilities and offering them as businessto-business (B2B) services (Amazon’s AWS arguably being the most famous example.

And the ability to extend services into pharmacy and healthcare is dependent on national regulations.)

Broadening into B2C markets Two primary ways to grow: B2C and B2B There are two major routes for ecosystem expansion: entering new business-to-

“Grocers are increasingly exploring the marketplace platform.”

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When we examined the 24 largest global grocers to see the most prevalent B2C expansions, we found (unsurprisingly) that all of them had ventured into online grocery. In addition, the vast majority had built loyalty programs, expanded into retail categories beyond grocery, and offered financial services (exhibit).

Next on the list after these common (and fairly traditional) expansion verticals comes a rapidly growing expansion play: marketplaces.

In essence, marketplace platforms facilitate retail by allowing third-party sellers that own inventory to sell to consumers through the marketplace interface. This has proved to be a tremendously successful business model that has shaped some of the most valuable companies in the world, notably Amazon and Alibaba. The (not so) secret sauce behind the success of the marketplace model is anchored in the ability to offer an expansive range at the best prices without the associated inventory risk and capital requirements.

While early marketplace activity was driven by online-only players and non-food retailers, grocers are increasingly exploring the model. This enables retailers to broaden their food offerings ( for example, with local or niche ethnic brands) and to quickly expand into more non-food offerings. For example, Kroger announced an expansion of its Kroger Ship program to add 50,000 items to its offerings, including natural and organic food, international food, specialty items, housewares and toys.

The move was intended to increase convenience to the customer and to offer an augmented one-stop-shop experience

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SECTOR INSIGHTS to compete against more diverse retail marketplaces such as Amazon and Walmart. The marketplace model carries risks, such as the difficulty of vetting product assortments and of providing a consistent customer experience. But the benefits of a well-developed marketplace can be immense in terms of better serving customers, expanding online traffic, and gaining additional data and insights on customers, as well as through the financial benefits from seller commissions and monetizable services to the seller community.

Deepening within B2B services For B2B services, the most common areas of expansion were insights, digital services and media, real estate and energy, logistics, and active investments. One of the most extreme examples within grocery is Ocado.

What started as an online grocery business in the United Kingdom evolved into a B2B technology business with customers such as Groupe Casino in France, ICA in Sweden, Kroger in the United States, and Sobeys in Canada.

The current blockbuster use case for expanding into B2B services is retail media networks. Grocery retailers have historically been good at monetizing their substantial exposure to consumers — either in-store or through leaflets and magazines — by selling space to consumer packaged-goods companies.

Retail media networks (RMNs) are the digital equivalent of this. When done well, they can unlock approximately 2 to 4 percent of online sales in positive EBIT contribution. Grocers are in a unique position to build RMNs: the high shopping frequency they enjoy provides ample advertising opportunities across assets such as websites, apps, and email; the vast amount of data enables accurate personalization; and the fact that advertisements appear when consumers are in a shopping mode enables very high — and, importantly, measurable — conversion. To capture this opportunity, grocers are increasingly developing inhouse teams that engage directly with their brands on marketing opportunities and effectively operate as advertising agencies.

While North American grocers such as Walmart and Kroger were early adopters

SUMMER 2022

of this approach, we’re seeing European players such as Tesco and Sainsbury’s take meaningful steps into this area.

To date, it’s mainly large retailers with the technology requirements and new capabilities that are set to pursue the retail media network opportunity. But we expect that smaller and regional players will increasingly be able to use plug-and-play solutions and that third parties will provide the same services to vendors and monetize accordingly.

The keys to growing beyond retail We see several grocery retailers expanding beyond the core and building ecosystems that generate additional value for stakeholders. But pursuing an ecosystem strategy does not necessarily lead to success; the reality is that many more companies have experimented with ecosystem strategies than have succeeded in using them to create substantial value.

Based on what we’ve learned from examples of both success and failure, the fundamentals for success are clear (and similar to other endeavours): ambitious senior leadership with willingness to pursue big bets and accept risk, a vision and strategy with rigorous prioritization, and an organizational model that fosters the right collaborations and agility. Once these fundamentals are in place, it comes down to execution. Key actions will then include the following: ◉ Cultivate a relevant portfolio of partners.

This portfolio must include capabilities along the whole partnership life cycle, from aligning strategically to scanning partners, structuring deals, onboarding them, and eventually managing partner relationships. Engaging not only with large companies but also with start-ups is important to build a thriving partner portfolio. ◉ Develop technology capabilities that ensure scalability, security, and responsiveness to customer needs—with business use cases guiding data and technology efforts.

“The blockbuster case for B2B services is retail media networks.” ◉ Implement relevant principles for capital allocation ( for example, a dedicated fund to support rapid growth), undertake continuous performance measurement and evaluation, and ensure timely stakeholder communication.

The benefits of a well-developed marketplace can be immense in terms of better serving customers, expanding online traffic, and gaining additional data and insights on customers. The world’s largest grocery retailers are making moves, but that doesn’t mean midsize or regional grocers can’t develop ecosystems.

First, it’s not necessary to take a leading role. Grocers can partner with others that have the capital or capabilities to orchestrate a robust ecosystem approach while still reaping the benefits that come with stickier, more cost-effective customers.

Second, grocers can find a niche to own.

Is there a segment of customers that can be uniquely served? For instance, regional and smaller banks target specific segments — such as newcomers to a country — with tailored services to meet their needs.

Similarly, pet ownership and care have emerged as powerful niche ecosystems within the consumer-packaged-goods sector.

What we’re saying is that grocers don’t need to seek to replicate the Walmart playbook — there may be sizable, underserved groups to service and own.

Steven Begley is a partner in McKinsey’s New York office, Jenny Hu is an associate partner in the Toronto office, Jonatan Janmark is a partner in the Stockholm office, Nicholas Landry is an associate partner in the Vancouver office, and Tom Youldon is a partner in the London office.

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ISTOCK/ Z_WEI

The Role of Finance Continues to Evolve

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LEADERSHIP

BY DANIEL OH

T

he roles of CFOs and controllers have been greatly transformed in recent years with the increased demand for accounting automation and the need to adapt to change. Today, their responsibilities could include corporate planning, strategy, and connecting the dots between financial and operational data to drive business growth.

With the power of analytics and process automation, CFOs and controllers can create better collaboration, enable datadriven decision making and real-time access to financial data, and gain deeper visibility into transactions, cost, and revenue on demand. In fact, according to our recent The Redefined CFO study, CFOs recognize that artificial intelligence (AI), machine learning (ML), and automation will be crucial technologies for organizations to integrate into the finance function going forward.

Among the vast range of capabilities that can be achieved through accounting automation, there are three main areas that are ripe for improvement in this field of technology — let’s take a closer look at those here.

Collaboration is key Fostering better collaboration can be key to the role of more effective CFOs and controllers.

With automation powering cloud-based accounting software, finance leaders can bring vital information from any device at any time right into the meeting room with them, while facilitating collaboration through digital communication channels with context-specific chat and dialog capabilities.

By leveraging these cloud-based

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tools, they can also bring those same conversations into a dashboard or reporting screen and give greater context to the data and information being discussed.

These capabilities can enable CFOs to do anything from viewing and reconciling journal entries to reviewing invoices, planning, and rolling out projects with their teams in real-time.

This creates a foundation to build internal relationships which strengthen the level of trust in the organization through a single source of data truth and asynchronous communication, which is even more important with remote work dividing workforces and assets.

Create savings and increase efficiency Often, we think of savings in terms of dollar amounts, but CFOs and controllers are uniquely positioned to create time savings, with operational efficiency being a key performance metric.

For example, CFOs and controllers must be able to provide accurate information to executive management teams and company directors in a timely fashion, which can be enabled through accounting automation.

At one point in time, it would take days (or even weeks) to manually pull data from past transactions and organize it into spreadsheets that were often riddled with errors. With accounting automation capabilities at their fingertips, innovative finance leaders can replace cumbersome, outdated processes with forward-thinking analytics that can save time when consolidating and managing data.

In fact, the Sage ‘Close The Books Survey’ showed that professionals who automate more than 50 percent of their journal entries close those books 20 percent faster!

finance teams is to evolve everyday as technology advances. Today, they are tasked with not only reviewing past transactions but to carry out data-driven decision making and planning; something that can be achieved by employing cloud accounting software to optimize workflows and build an effective strategy for future growth.

With access to real-time data and analytics readily available through dashboards and reports right at their fingertips, CFOs and controllers can drive strategic initiatives across the entire organization and plan more accurately for year-end audits.

By empowering finance teams to automate repetitive tasks like purchase ordering workflows, vendor payments, and bank reconciliations, accounting automation software allows finance departments to create massive time savings, boost visibility for staff and leaders, and free themselves up to focus on valueadded activities that directly impact the bottom line.

Finance teams no longer need to be preoccupied with repetitive tasks and can instead pivot to developing short and long-term strategies for their organization’s financial health.

The future of accounting automation Traditional financial processes are a thing of the past; the future of finance now lies in accounting automation to empower and enhance the existing capabilities of finance teams.

Forward-thinking finance leaders who wish to modernize their operations should research the solutions available and focus on the bigger picture — executing a winning strategy that will position their organization for lasting success.

Enable strategic thinking The strategic mission of accounting and

DANIEL OH is Country Manager (interim) of Sage Canada.

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How Will Soft Skills Give CFOs a Sharper Edge?

BY RANDALL TAVIERNE

D

ealing with the unexpected is an occupational hazard for chief finance officers (CFOs) of private companies, but they have been sorely tested during the past year as the priority has moved to responding to the unprecedented health and economic impacts of the COVID-19 pandemic.

Practical concerns — such as overseeing the health and safety of finance teams, supporting virtual working and communicating with stakeholders — have been balanced by financial management issues including maintaining liquidity, securing supply chains and managing fraud risks.

With some countries having experienced a second wave of COVID-19 and continuing economic turbulence, uncertainty remains.

It is perhaps understandable then that having “the agility to adapt to continuous change” has been identified as the most important personal and leadership quality required for a private company CFO to succeed in the future.

More than 400 private company respondents to the 2020 EY DNA of the CFO survey, comprising CFOs, finance directors and heads of finance, were each asked to identify two preferred qualities needed by CFOs. Adapting to continuous change was the top response, identified by 62 percent as one of their two choices.

The second most important quality was “a willingness to experiment and take calculated

risks,” which was selected by 54 percent. This, again, has resonance in the COVID-19 era, given that many companies have had to rethink their business models to survive the economic consequences of the pandemic.

The CFO: from cost gatekeeper to business partner So, how do perceptions match reality?

Respondents were also asked which two attributes were most commonly associated with CFOs in their organizations.

The top attribute associated with a private company CFO is a “big thinker and strategist” and the second is “an inspirational leader and strong communicator.” These results fit with the modern image of a CFO as a business partner to the CEO, fully involved in strategy and decision-making.

However, the more traditional image of the CFO — as the gatekeeper of the numbers — has not been completely superseded. Being “costfocused and risk-averse” ranked equal fourth in the attributes associated with private company CFOs. When asked to respond to the statement “Our finance team is seen by many people in the organization as too risk-averse and costconscious,” 73 percent of private company respondents agreed. Seventy-five percent also agreed that “traditional back-office behaviours and mindsets in finance are slowing the modernization of the function.”

The survey results highlight that private

“Agility to adapt to continuous change” is most important quality for a successful CFO. Question: Which two of the following personal and leadership qualities are most important for a CFO to succeed in the future?

62%

The agility to adapt to continuous change

54%

A willingness to experiment and take calcualted risks The intellectual humility to admit when you do not have all the answers

47%

The courage to challenge entrenched interests and beliefs

31%

Emotional intelligence

6% 0%

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5%

10%

15%

20%

25%

20%

35%

40%

45%

50%

55%

60%

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LEADERSHIP company CFOs have stronger relationships with IT and operations teams than they do with their marketing and HR colleagues.

In fact, 55 percent reported that they had limited or no collaboration with the Chief Human Resources Officer and 46 percent had limited or no collaboration with the Chief Marketing Officer.

Traditionally, CFOs’ strengths tend to be defined in terms of their approach to rational, analysis-based decision-making, rather than the capabilities that are important for empathetic communication.

Respondents believe that CFOs still have work to do to improve these “softer” skills.

Eighty-two percent of private company respondents agreed with the statement that “to drive culture change, CFOs need to move beyond technical left-brain skills to develop competencies in people-oriented right-brain areas.”

The ability to inspire and motivate people is important at any time, but has increased significance during periods of uncertainty such as currently being experienced across the globe.

If these CFOs feel they need to improve their people skills, they should consider executive leadership courses and take advantage of networking and mentoring opportunities. “Soft” skills can be developed; you don’t necessarily have to be born with them.

Traditionally, CFOs’ strengths tend to be defined in terms of their approach to rational, analysis-based decision-making, rather than the capabilities that are important for empathetic communication.

Respondents believe that CFOs still have work to do to improve these “softer” skills.

Shifting the emphasis from shareholders to stakeholders There is also a growing acceptance that CFOs should not focus narrowly on shortterm profit targets but, instead, seek longer-term growth and returns. Their purpose-led organizations should be providing value for stakeholders that go beyond shareholders, including employees, consumers and local communities.

The survey results demonstrate this strategic shift of emphasis for private companies. Eighty-six percent agreed with the statement that “CFOs are increasingly seen by key stakeholders as the stewards of

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long-term value.”

But, of course, short-term financial performance cannot be ignored. Eighty-five percent agreed with the statement that “CFOs must balance the need for short-term results with a focus on long-term value.”

The tech-savvy CFO CFOs are also taking on a wider role in terms of technology. Data is becoming an increasingly valuable commodity, and the CFO is well placed to leverage this effectively. Such a transformation goes beyond the finance function, often embracing the whole enterprise and supported by new technologies such as AI, robotic process automation and blockchain.

The survey results show that private company CFOs and their finance teams are ahead of their C-suite colleagues in this revolution. When asked if the finance function is “seen as identifying opportunities to utilize new technologies, such as AI, quicker than other teams,” 84 percent of respondents agreed. The finance function also rates highly in terms of innovation, agility and culture.

pandemic has tested the CFOs of private companies like never before, but their agility to adapt to continuous change, to “think big” and to be “inspirational leaders” have proved vital. A new EY survey highlights these and other characteristics of private company CFOs, including their embrace of technology and stewardship of long-term value. However, COVID-19 has also reinforced the need for “softer” skills based on empathy and emotional intelligence, and the survey suggests that private company CFOs need to focus on developing their people skills.

RANDALL TAVIERNE is Global EY Private Assurance Leader based in Toronto, ON.

The CFO in a post-COVID world Private company CFOs have come a long way in recent years and are now considered strategic business partners, stewards of long-term value and technological innovators. The finance function is regarded as the strategic center of many organizations.

However, the COVID-19 pandemic has reinforced the importance of empathy and emotional intelligence as leadership qualities. Many CFOs have adopted more frequent, empathetic and human communication approaches during this time.

Such an approach is relevant not only for the situation today, but also for the future as companies look to earn the trust of new generations of employees and multiple stakeholders.

The COVID-19

Randall Tavierne

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EQUIPMENT FINANCE REGULATORY NEWS

Understanding The Opportunities for AI-Cameras and LiDARs for Smart Road Infrastructure A fter the Consumer Electronics Show (CES) sparked a new wave of autonomous vehicles (AVs) coming to the automotive market in the next few years, much focus as of late has been on the technology of these vehicles themselves. However, the technology embedded in road infrastructure is also beginning to see more conversation between service providers and municipalities.

With advancements in artificial intelligence (AI) and 5G network connectivity, smart-road infrastructure technology offers the promise of being added to many different roads, bridges, and other transit systems across the U.S. in hopes of improving real-time traffic analytics and tackling the most challenging road safety and traffic management problems. One technology at the center of this discussion is on the present-day use

SUMMER 2022

of AI-enhanced cameras and tomorrow’s promise of LiDAR technology.

Artificial intelligence will enhance camera sensing performance

Today there are hundreds of thousands of traffic cameras deployed in the U.S. alone, and even millions more when CCTV cameras are considered. They are mainly used for road monitoring and basic traffic management applications (e.g., loop emulation). However, bringing the latest advancements of AI to these assets can immediately improve basic application performance and unlock more advanced software applications and use-cases.

AI and Machine Learning deliver superior sensing performance over traditional computer vision techniques found in legacy cameras. They

BY DR. GEORGES AOUDE

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Relative Performance Comparison of Cameras vs. Lidars Today

Feature

Legacy Camera

AI-powered Camera 1

LiDAR

AI-powered Camera and LiDAR Fusion

Challenging lighting (low light, glare)

Low

Medium

High

High

Adverse weather conditions (snow, rain, fog)

Low

High

Medium

High

Localization

Low

Medium

High

High

Classification

Low

High

Medium

High

Affordability

High

Medium

Low2

Low2

1. Assumes presence of IR or good low-light sensor 2. Expected to improve with time

enable more robust, flexible, and accurate detection, tracking and classification of all road users with algorithms that can automatically adapt to various lighting and weather conditions. In addition, they allow for predictive capabilities to better model road user movements and behaviors, and improve road safety. Agencies can immediately benefit from AI-enhanced cameras with applications such as road conflict detection and analysis, pedestrian crossing prediction and infrastructure sensing for AV deployments.

LiDAR technology cannot fully replace cameras LiDARs can provide complementary and sometimes overlapping value with cameras, however there are still several safety critical edge cases where LiDAR’s technology does not perform well (e.g., heavy rain and snow, granular classification), and where cameras have been proven to handle better. Moreover, today’s LiDARs technology remains expensive to deploy at

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scale due to its high unit price and limited field of view. As an example, it would take multiple LiDARs at a hefty investment to be deployed in a single intersection, where just one 360-degree AI-camera can be a more cost-effective solution.

For many budget-focused communities, AI-cameras remain the proven technology of choice today. Over time, as the cost of LiDAR technology moderates, communities should evaluate augmenting their infrastructure with such sensors.

Eventually, sensor fusion will drive strong results When the cost of LiDAR technology eventually sees an anticipated reduction it will be viewed as a strong and viable addition to the AI-enhanced cameras that are being installed today. Similar to autonomous vehicles, sensor fusion would be the go-to approach for smart infrastructure solutions and would allow to maximize the benefits of both technologies. (see chart)

The use of a cost-effective and performing AI-powered camera today, combined with the great potential of LiDAR in the coming years could help communities and municipalities achieve a win-win scenario today and tomorrow.

At the end of the day, the goal is clear in improving overall traffic flow and diminishing vehicle crashes and fatalities, but the technology and implementation strategy has to be right in doing so.

The technology monitoring our roads needs to change too, thus calling for the consideration of AI-powered cameras today with the promise of LiDAR tomorrow.

DR. GEORGES AOUDE is the co-founder of Derq, an MIT spinoff powering the future of connected and autonomous roads, making cities smarter and safer for all road users, and enabling the deployment of autonomous vehicles at scale.

Derq provides cities and fleets with an award-winning and patented smart infrastructure Platform powered by AI that helps them tackle the most challenging road safety and traffic management problems.

SUMMER 2022

EQUIPMENT FINANCE

ISTOCK/ MARC_OSBORNE

Top 10 Opportunities for Technology Companies in 2022

BY BARAK RAVID AND STEPHAN VAN RHEE

W

hen we wrote about the top 10 opportunities for technology companies last year, social distancing was the world’s main weapon against the COVID-19 pandemic. Today, thanks to vaccines, we are able to control the pandemic better, but the volatility in the markets has increased and the risk profile of global trade has deteriorated due to geopolitical events. This has impacted the list and following order of the opportunities for 2022.

Last year, demand shifted rapidly from traditional on-premise to cloud-based products and we have seen demand surge for the hardware needed to deliver services remotely. This has created supply chain constraints across the sector. Ongoing trade disputes, regulatory changes and government efforts to protect or stimulate high-tech activities are also having an impact. Companies need to be aware that implementation of new regulation can reshape markets overnight.

We believe that in a post-pandemic world, the technology sector will continue to grow as the digitalization of the economy will accelerate further. In this year’s annual report, EY has ranked the top 10 opportunities that technology companies should take advantage of in 2022. Acting on one or more of the following can help companies seize the

SUMMER 2022

opportunity for growth and navigate the risks and volatility in 2022.

1

Attract and retain a motivated workforce in a hybrid working environment Finding the right talent has always been a major concern in the tech sector, but the pandemic has increased the urgency to address the issue. Companies investing in future growth need engineers in their research centers and salespeople to strengthen their salesforce. Most tech companies are currently talking about a staged and partial return to the office as they are trying to balance the needs and preferences of a modern workforce with the costs involved. A recent survey from EY shows that 9 out of 10 employees demand flexibility in where they work and when they work, and that they are prepared to quit if they don’t get it. But while employees may have mastered working from home, the hybrid model poses new challenges related to employee experience and culture. Employers must solve the puzzle of optimizing rewards, flexibility and experience to create a package that attracts and retains the best talents.

2

Leverage M&A to strengthen growth profile Slightly more than half of all technology executives acknowledge that organic growth could be difficult in the near term, according to EY research.

To sustain growth, they plan to pursue M&A in 2022. Despite increased regulatory scrutiny and financial uncertainty, the deal market is expected to remain healthy.

Acquisitions will reignite growth by adding solutions, technologies, end markets and distribution channels to a company’s portfolio. In a similar fashion, divestments could help companies steer away from slower growth market segments or solutions that require capabilities different from those the company possesses. Having the right M&A strategy in place will result in a better growth profile.

3

De-risk the supply chain to secure business continuity Supply chains have come under tremendous pressure from market volatility and geopolitical events. Two major bottlenecks for tech companies in the past months have been logistics and the availability of components. While one can argue that these issues are only of a temporary nature and that they have hit the entire industry, some companies have managed better than others. Tech companies need to carefully review and de-risk their supply chains, all the way from their vendor’s vendors down to their customers’ customers. Different risk profiles in the supply chain require different policies around inventories and sourcing contracts. Logistics issues could lead to

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EQUIPMENT FINANCE changes in preferred manufacturing and distribution footprints. Real-time visibility will help identify bottlenecks at an early stage, while new technologies such as digital twins and 3D printing could reduce the degree of disruption.

4

Embed security into the design of new activities The importance of data security and integrity has increased exponentially during the pandemic. More business is now conducted online, but more importantly, a significant number of companies have changed IT structures and processes in response to the pandemic without sufficiently considering cybersecurity in advance. This has resulted in an increase in disruptive attacks and contributed to worries around being able to comply with regulations. To turn data integrity into a business driver and to avoid major disruptions, tech companies should embed security and privacy into the design of new activities. That includes realigning data security with the business objectives, reviewing the talent profiles needed to do that and including the cyber team in the start-up phase of new projects.

5

Lead by example in environmental, social and governance to strengthen stakeholder relations Technology companies have traditionally focused on environmental sustainability, but stakeholders want more from companies. Consumers increasingly expect companies to drive positive social and environmental outcomes. Employees want to make a meaningful difference. Investors demand sustainable investment options.

And enterprise customers look at the sector to implement new technologies to help drive their own sustainable outcomes.

Tech companies should therefore lead by example, engage with their stakeholders and draw up a long-term value proposition.

This includes environmental and social commitments supported by top-down organizational changes, transparency and reporting on relevant KPIs.

6

Transform business to excel in consumption-based sales During the pandemic, we have seen that consumption-based business

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models offered better protection against economic volatility and a higher valuation from investors than traditional one-off payments. As customers increasingly prefer the flexibility of cloud-based services and software, subscription payments are expected to replace the traditional license payments at a rapid pace over the next five years. To enable this shift, companies need to transform their sales organization, change their pricing tools, adopt new incentive schemes, track different performance indicators and realign their major business processes. This is no easy transition, but it will reward companies with recurring revenues, more time to build customer relations, and an opportunity to generate higher revenues per user from cross-selling and upselling.

7

Realign tax organization with digital business models The technology sector has increasingly become a key target for legislation and taxation changes across the globe.

Governments are looking to shift the taxation base to capture more value from the growing share that digital services contribute to the economy. Steep and sudden changes are caused by trade disputes and by governments looking to strengthen or protect their key industries, which more often than not include the technology segments. With their large international footprints and their large base of material and immaterial assets, tech companies need a robust approach to taxation and global trade, built on realtime insights, early planning and an agile operating model.

Digital is a megatrend that is both a dynamic and pervasive disruptor, as well as a springboard to the future. The way the world operates will never be the same as companies transform every aspect of their business to remain viable and competitive in a digital world.

8

Streamline operations to increase agility The pandemic has exposed the world to a new level of volatility and economic uncertainty. Customer preferences can shift overnight, causing large swings in demand, especially in the technology sector. With supply chains stretched and trade being influenced by

geopolitical factors, the risk profiles in the sector have changed. This has increased the need to transform the organization.

To retain a competitive edge, technology companies need to match the agility of their operations with the future levels of volatility in their business. They can achieve this through simplification of the organization; streamlining the business processes; and leveraging cloud capabilities, data analytics and automation tools.

9

Instil customer trust to drive digital engagement For digital companies, trust is essential because trust is what drives customers to visit, interact and share data needed to create a business and drive growth. And with alternatives only one click away, a lack of trust could send customers elsewhere in the blink of an eye. Research from EY has shown that the main drivers of trust — or distrust — include security, transparency, ethics, content and regulatory compliance. To gain trust, companies need to prioritize the protection of customer data and have clear policies about how to deal with issues such as fake content, online abuse and discrimination. They need to establish a digital trust strategy that incorporates all elements of trust.

10

Prepare for adoption of 5G The rollout of 5G is driving revenues across the entire technology stack, as the industry is gearing up for large-scale implementation. An EY survey found that 52 percent of enterprises are now more interested in 5G than before the global pandemic. It is not just a new connectivity standard; it will change how objects and devices interact and how data analytics and machine learning can improve logistics, reshape customer interaction or identify bottlenecks in the supply chain. Three out of four enterprises believe that 5G will be integrated into their business processes over the next five years.

For that to happen, tech companies need to prepare use cases and adoption road maps to stay ahead of the competition.

BARAK RAVID is EY-Parthenon Americas Leader and STEPHAN VAN RHEE is EY Global Technology Sector Analyst.

SUMMER 2022

ISTOCK/ RISTOARNAUDOV

EQUIPMENT FINANCE

ELFA Report Forecasts 2022 Equipment Markets The 32nd Annual What’s Hot/What’s Not: Equipment Market Forecast 2022 from the Equipment Leasing and Finance Association (ELFA) reveals industry perceptions of 15 equipment markets based on a survey of 85 ELFA members. The survey results point to construction, trucks/trailers, medical, machine tools and hi-tech/ computers as the leading sectors for the year ahead, according to portfolio preference.

Authored by Carl Chrappa of The Alta Group, the report is designed to assist equipment finance organizations in identifying business opportunities for future success. The results of the 2022 Forecast Survey reveal the following overall ranking of equipment types for portfolio preference among ELFA members.

These rankings are based on the amount of future financing volume

SUMMER 2022

(un-weighted) and the best and least favourable future equipment financing opportunities (weighted).

1. Construction 2. Trucks/Trailers 3. Medical 4. Machine Tools 5. Hi-tech/Computers 6. Containers/Chassis 7. Rail 8. Marine/Intercoastal 9. Automobiles 10. Tie: Aircraft, Plastics 11. Telecom 12. Oil/Gas/Energy 13. FF&E 14. Printing

equipment managers and equipment finance companies are decidedly more optimistic in their equipment outlooks, which should bode well for the industry this year.” Visit the ELFA Knowledge Hub at www.elfaonline. org/knowledge-hub/most-popular to access the full results, including: The report, including an analysis of the rankings, an infographic with key takeaways from the report.

“The market forecast is consistently among ELFA’s widest read research,” said Ralph Petta, ELFA President and CEO. “The results of the 2022 Forecast Survey reveal that

The U.S-based Equipment Leasing and Finance Association (ELFA) has selected Charles W. Cross, Senior Lead Counsel at Wells Fargo, to receive its 2022 David H. Fenig Distinguished

ELFA Announces Charles W. Cross Will Receive 2022 David H. Fenig Distinguished Service in Advocacy Award

Service in Advocacy Award. The award honors individuals who have made significant contributions to the association’s advocacy efforts to promote sound public policies for the equipment finance industry.

Cross will be formally recognized at ELFA’s Capitol Connections event on Wednesday, May 25.

ELFA President and CEO Ralph Petta said, “We are pleased to recognize Chuck Cross for all he has done to advance ELFA’s advocacy agenda. As the leading advocate for the equipment finance industry, ELFA plays a critical role in making sure our industry’s voice is heard by elected officials. We would not be successful without the leadership and commitment of members like Chuck.”

“I am honored to be the recipient of this award and accept it in large part as a proxy for all of the

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Leasing” in Banking and Lending Institutional Forms, published by LexisNexis A.S. Pratt, including forms and commentary for small ticket, major market, aircraft and municipal leases.

Cross is currently Senior Lead Counsel at Wells Fargo, where he has been employed for the past 11 years.

He has worked exclusively in the equipment finance industry for over 30 years in senior counsel or general counsel positions at bank-related and independent equipment finance companies including Fleet Capital Corporation, BTM Capital Corporation and Key Global Finance.

The David H. Fenig Distinguished Service in Advocacy Award is named for ELFA’s former Vice President of Federal Government Relations, David H. Fenig, who served as an accomplished and tireless advocate on behalf of the equipment leasing and finance industry from 2004-2011.

Equipment Leasing and Finance Association Appoints Jeff Quigley as Vice President of Finance & Administration The Equipment Leasing and Finance Association announces

GTA

Giving Guide

2022

Find your path to new major donors and sponsors. Get into the 2022 GTA Giving Guide and get your charity’s story and key mission statements, fundraising campaigns, major gift programs, sponsorship opportunities, accomplishments and donor stories into Toronto’s largest official guide to help major individual donors and corporate foundations find new ways to support your efforts. Reach more than 20,000 senior executives in marketing, finance and C-Suite leadership in the largest firms in the Toronto area. Headquarters of companies which allocate millions of dollars for donations, sponsorship, social programs, volunteering, governance, advice and insights.

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that Jeff Quigley has joined the organization as Vice President of Finance & Administration, effective March 31. Quigley will oversee the association $B!G (Bs finances and treasury operations as well as the daily administrative and operational requirements of the organization. Quigley brings 25 years of public accounting experience to ELFA. He progressed from Staff Auditor to Audit partner at the DCbased firm Tate and Tryon, which specialized exclusively in nonprofit organizations. In addition to serving a diverse portfolio of nonprofit organizations, Quigley conducted a wide variety of consulting engagements from internal control analysis to mergers and acquisitions.

In addition to writing articles and conducting staff training, he was responsible for the automated audit process: monitoring, testing and implementing emerging technologies. Quigley concluded his public accounting career at RSM after its acquisition of Tate and Tryon.

He earned a B.S. in accounting from Virginia Tech. Quigley succeeds Paul Stilp, who recently retired after serving as a member of the ELFA staff for 18 years.

2021 GTA GIVING

GUIDE

The Animal Guar dian Society

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t’s been over 30 years since Kathy Asling old puppy on the street. She immediatelyfound an 8-weekpet owners in the possible link to called every Toronto and Durham the As an animal rescue in her local newspaper.pup’s owners and ran an advertisement Region area. group we know A reporter who to microchip pets.

Kathy to write how important saw the ad called a cover You cannot predict it is the future so we what will happen Although no owner story. always was ever located, make an appointment advise responsible pet owners in 200 calls to adopt she received almost to the for this quick and less) procedure. prospective adopters puppy. She instinctively screened painless 5 minute It’s better to be (or safe than sorry. expensive options decided on a home and conducted home visits.

With other Kathy out there, we also but had names owners decide know that many families she felt and numbers of not to proceed would several pet with because of the next day she visited provide a loving home to a price. That is why micro-chipping their pets dog. The the local shelter TAGS initiated microchip, saving by contacting the and started ‘match a cheap way to a good people who had called her looking making’ $90 and up). The revenue amount of money (instead of paying to adopt. goes toward a dogs & cats in need through The Animal good cause – helping Guardian Society.

How We Use Your Money 100% of your donations goes to helping program as we the animals in have our far is the veterinary no paid staff. TAGS’s largest expense by bills. We want are healthy, and to be sure that all our dogs sometimes this means expensive or surgeries that medications cost hundreds or even thousands In addition, all TAGS of dollars. and microchipped dogs are spayed or neutered, vaccinated prior to adoption. to receive some Identifying the donations of dog While TAGS is fortunate need for someone purchasing quality food, we also spend lives of good dogs to step up and dog save the money from being put care. Other expenses food to feed to our dogs to death, Kathy daughter created in foster and her the name The Animal include the production educational and (TAGS). In March Guardian Society of training, promotional material. of 1987 the first Durham Region To donate visit was formed. based rescue our website at www.animalguardian.o see our donation Kathy set out to information at rg or meet with individuals Canada Helps https://www.canada guide her into who could mentor developing a program helps.org/en/dn/134 and integrity and ethics that 92 that would promote would operate with our community humane education and find homes to for displaced animals.

Vision Statement Perhaps the most relationships with difficult task in the early days ❯ To sustain the was creating operation of our Animal Controls. a foreign word, program and continue to serve and the constant Rescue in those days was and protect the struggle to save from death and our community. animal citizens animals research labs became of be emotionally ❯ To never see a task that proved and any animal abused, that this was not physical draining. It soon became to abandoned or unwanted. left the job for one person. Kathy neededevident ❯ To continue Now 30 years later to provide medical help. and thousands homed, she has care and training animals in our yet to stop! Kathy of dogs successfully recare. to work closely with and her corps of ❯ To construct a shelter that will volunteers animal shelters, community to humane societies, provide safe housing for animals until improve the lives permanent homes of canine citizens. and the ❯ To ensure that Today, TAGS is a charitable non-profi our shelter offers are found. not receive any a centre for learning and education government funding. t organization and does to public donations We are entirely ❯ To see no animal our community. reliant for put to death in TAGS needs other funds. Other than monetary donations, on municipally shelters because they are run pet care items like overlooked or beds and blankets, good quality dog of space. due to lack leashes and collars, food, dog We also need other ❯ To encourage winter coats, dog those items toys, The Animal Guardian like building materials and services. etc. dedication to animalswho profess their love and Society’s microchip to take a stand a popular tradition, participate in the to educate and clinics have become offering inexpensive ❯ To see the day cause of rescue. microchip services when rescue will for 14 no longer be necessary, as all 2021 GTA Giving Guide animals will have safe, loving homes.

2021 GTA GIVING

GUIDE

National Initiat of the Elderly ive for Care (N.I.C905-263-TAG .E.) S (8247)

We Please feel free welcome your feedback and your questions. to contact us with any questions General information or comments you have. about our program or volunteering: tagsinfo@animalgua n an ageless society, Telephone: rdian.org we recognize and value and contribution nurture everyone's at every life stage.

We also are proud in 2005 under a NICE was of our grant from the Networks of Centresfounded initiative Canada Excellence — New HomeShare an Initiative Program. of intergenerational excellence, NICE Mobilizing research housing solution brings by the National the academic, private, together researchers and partners Initiative for the public and non-profi from Care of the Elderly t sectors.

(NICE). We work providers with Our Mission students to create to match older adult home mutually benefi solutions. Find Improving care cial living our more at www.canadahomesha for all, not just the elderly. Translating knowledge into re.com action. Hear more.

N.I.C.E. is a not-for-profi help close the NICE’s main goals gap between evidence-based are to t charitable organization. donation will help actual practice, research and Your NICE continue improve the training to evidence-based geriatric educational of existing practitioners, informational tools produce practical curricula, and interest spectrum of issues addressing a wide in specializing in new students relating to aging. geriatric care, and www.nicenet.ca/don changes for the effect positive policy care of older adults. ate

foundationmag.ca

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Plus…

Our most important new initiative you can learn is TALK2NICE more about here: which www.nicenet.ca/talk 2nice

National Initiative

NICE 246 Bloor Street West, Room 234, Donations of $25 Toronto, ON M5S or more 1V4 www.nicenet.ca/tool will receive a charitable tax receipt. s

for the Care

NICE is an international network of researchers, practitioners, and students improving the dedicated to care of older Canada and adults, both abroad. in

of the Elderly

(NICE)

Our members represent a broad spectrum disciplines and professions, of medicine, gerontological including geriatric nursing, gerontological social work, gerontology, rehabilitation sociology, psychology, policy, law and science, adults themselves older and their caregivers.

The best part about being a NICE member diverse network. is our The second is FREE! So best? Membership join today.

246 Bloor Street Toronto, Ontario West, Room 234 www.nicenet.ca M5S 1V4, Canada nicenetadmin@utoro nto.ca 26

2021 GTA Giving

Guide

How Will You Leave Your Mark on the Communi ty You Called Home?

foundationmag.ca

I

n 1902, James Ross donated funds to build and equip much-needed hospital a Lakes. Five generations to care for people in the Kawartha later, with every continue to touch gift, our donors patients’ lives by needs that are not covered through supporting vital hospital Through their generous government funding. support for medical saving technology equipment, lifeand priority projects, Team provide 24/7 donors help the care, You can make a lasting and inspire brighter tomorrows. Ross impact on patient Ross is the heart care with a legacy of the gift. The care for our residents, community and ensures exceptional seasonal residents By naming the and regional Ross Memorial Hospital Foundation patients. you join generations in your Will, supports the entire of caring people in creating a legacy that community.

We are honoured are here to answer to be considered in your legacy plans and your questions. you want to play Let’s talk about the role in advancing health Kawartha Lakes.

How will you touch care for people in the the next generation?

Erin Coons, CFRE, CEO, RMH Foundation 705-328-6113 | ecoons@rmh.org | www.rmh.org/foundati on

GUIDE

TORONTO BUSIN E SS

promoting the important interests of ELFA members through the regulatory process. In doing so, he has led the drafting of more than 11 sets of ELFA regulatory comments between California and New York over the last three years.

Cross has been engaged with ELFA for more than three decades.

He attended his first ELFA Legal Forum in 1985, has served two 3-year terms on the ELFA Legal Committee and has been active in a number of association committees and subcommittees, including his current membership on the State Legislative & Regulatory Subcommittee of the Legal Committee, which provides advice and support to ELFA State Government Relations staff in evaluating and responding to state legislative and regulatory issues relating to the equipment finance industry.

In addition, Cross has been as an information resource for ELFA members regarding a range of issues impacting the equipment finance industry, making numerous presentations at ELFA Legal Forums and other industry events. He also has contributed articles to industry publications and was a Contributing Editor and author of “Equipment

2021 GTA GIVING

folks in ELFA that have given this industry their time, knowledge and experience on so many legal and regulatory issues at all levels of government over the years,” said Cross. “It has been a pleasure working with the ELFA staff (and most recently Scott Riehl) and my colleagues at companies and law firms across the country to formulate and present industry viewpoints for the benefit of all of our members.

It is a privilege to work with government officials to accurately identify and define issues, provide useful information and context, and, when necessary, assist in formulating reasonable, responsive and wellcrafted laws and regulations.”

Cross is recognized for his extraordinary contributions to the association’s state advocacy program.

He has assisted the industry in promoting its policy objectives in a number of ways, most notably through providing analysis and guidance to ELFA, its membership and specific issue workgroups. In addition, his willingness to assist ELFA state negotiations has been invaluable to the association’s success on the critical issue of state financial disclosure requirements.

Cross has led the industry’s efforts

The Riverwood Conservan cy

T

he Riverwood Conservancy (TRC) is a member-based charity that provides volunteer and focused on environmental programs and education, conservation,services gardening, and horticulture. Founded Garden Council, today The Riverwoodin 1985 as the Mississauga like-minded groups Conservancy works and individuals with cultures, ages, and to enable people of all abilities to respectfully and learn about connect with nature the importance of protecting and the beauty of Riverwood. experiencing Our Vision: A community that lives in harmony Our Mission: The with nature.

Riverwood Conservancy provides programs is the charity that and urban nature preserve direction for Riverwood, a 150-acre situated on the in Mississauga, Ontario. Our mission shores of the Credit River cultures, ages, and is to abilities to respectfullyenable people of all and learn about connect with the importance of protecting, conservingnature restoring natural spaces and while also experiencing for the well-being of future the beauty of Riverwood’s generations With the support gardens. of donors and members community and of the business the local our work will continue volunteer and education community, to strengthen the youth and nature. connection between Please visit our website the history, activities and programs offeredto learn more about at our centre.

Chappell House, 4300 Riverwood

905-279-5878 | foundationmag.ca

Park Lane,

www.theriverwoodconseMississauga, ON, L5C 2S7 rvancy.org/donate/

Spending time in nature is essential for a child’s well being and But access to natural development. spaces can be limited for low-income, diverse and marginalized communities.

The Riverwood Conservancy’s Education Naturally program offers accessible nature connections for children and youth in Peel, helping to break down barriers and ensure nature is accessible for all members in our community.

Learn more and donate at theriverwoodconservanc y.org/natureforkids Registered Charity

No: BN889418034RR0001

2021 GTA Giving

TORONTO’S CORPORATE PATHFINDER TO CHARITABLE INVESTMENT

28

TOTAL FINANCE

Guide

27

For more information call Steve Lloyd,

905-201-6600 x225 or steve.lloyd@lloydmedia.ca

SUMMER 2022

ISTOCK/ STAS_V

EQUIPMENT FINANCE

Filling the Gap: Scope of Canadian Anti-Money Laundering Laws Expanded T

BY JACK FRANKLIN, ZAIN RIZVI AND GILLIAN R. STACEY

SUMMER 2022

he Canadian federal government has fulfilled its promise to expand Canada’s antimoney laundering (AML) regime to cover crowdfunding platforms and certain payment service providers (PSPs) that previously operated outside the scope of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

In line with the government’s renewed focus on strengthening Canada’s AML regime, the government has approved amendments to regulations (Amending Regulations) under the PCMLTFA that largely memorialize the temporary orders made under the Emergencies Act (Emergency Orders) earlier this year. The Amending Regulations, which came into force on

April 5, 2022, have made significant changes to the regulation of financial technology companies operating in the Canadian payments industry.

Amending regulations The Amending Regulations expand the scope of the PCMLTFA to specifically include crowdfunding platform services, which are defined as “the provision and maintenance of a crowdfunding platform for use by other persons or entities to raise funds or virtual currency for themselves or for persons or entities specified by them.” These businesses, which had previously operated outside the PCMLTFA, must now satisfy extensive reporting and compliance obligations and are subject to regulatory oversight by the

TOTAL FINANCE

29

REGULATORYFINANCE EQUIPMENT NEWS

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

In addition, the Amending Regulations repealed the part of the definition of “electronic funds transfer,” which had excluded certain transactions “carried out by means of a credit or debit card or a prepaid payment product if the beneficiary has an agreement with the payment service provider that permits payment by that means for the provision of good and services.” An exclusion still applies for certain financial entities and casinos, but “money services businesses” (MSBs) will now have reporting and compliance obligations regarding such credit, debit or prepaid payment card transactions.

Retraction of prior guidance Although the Emergency Orders expressly imposed AML obligations on both crowdfunding platforms and entities that perform “payment functions” (i.e., PSPs), the Amending Regulations explicitly added only crowdfunding platform services as a prescribed service that, if performed, would establish such entities as MSBs subject to the PCMLTFA. However, on April 27, 2022, FINTRAC also retracted its Policy Interpretation 7670, which contained the frequently cited “corollary” exemption from the PCMLTFA. Under this policy interpretation, entities involved in the remission or transmission of funds merely as a corollary of their actual service (e.g., payment processing) were not considered MSBs for the purposes of the PCMLTFA. These entities included PSPs engaged in the business of providing settlements directly to merchants on behalf of the merchant’s customers. The retraction of this guidance means that PSPs that maintain a place of business inside Canada or direct their services to individuals or entities in Canada and that otherwise perform MSB activities are subject to the suite of AML requirements applicable to MSBs.

Impact on crowdfunding platforms and PSPs As a result of these changes, both crowdfunding platforms and PSPs that perform MSB activities must now register with FINTRAC; develop and maintain a compliance program; carry out KYC

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TOTAL FINANCE

(know your customer) requirements, including verifying the identity of persons and entities for certain activities and transactions; keep certain records, including records related to transactions and client identification; and report certain transactions to FINTRAC. The Amending Regulations have also imposed further and more specific obligations on crowdfunding platforms.

These obligations include record-keeping requirements in respect of the persons or entities to which they provide their services and the purpose for which the funds or virtual currency are being raised; and verifying the identity of any person to whom the entity provides crowdfunding services or who donates $1,000 or more using the platform.

FINTRAC has indicated that it intends to publish updated guidance in the near future, payments companies currently in the interpretive grey zone face the unhappy choice of waiting for guidance — and potentially being offside the registration requirement — or registering now, perhaps unnecessarily.

There is also a question of how the new regulations will coexist with the forthcoming Retail Payments Activities Act (RPAA), which has been enacted but is not currently in force as it awaits the drafting of regulations. The RPAA is intended to introduce a regulatory oversight framework to govern the retail payments ecosystem in Canada (read our bulletin on the RPAA).

Once in force, the RPAA will be overseen and administered by the Bank of Canada

“Both crowdfunding platforms and PSPs that perform MSB activities must now register with FINTRAC.” Uncertainty ahead While it’s clear that crowdfunding platforms and PSPs that had previously relied upon Policy Interpretation 7670 are now subject to the PCMLTFA, the Amending Regulations and FINTRAC’s corresponding policy updates have introduced uncertainty regarding the scope of the PCMLTFA in the future.

Most notably, the sections of the PCMLTFA relating to MSBs qualify its application to persons and entities “in the business” of providing certain specified MSB services.1 Policy Interpretation 7670 provided insight with respect to FINTRAC’s view regarding when an entity that provided services otherwise captured under the PCMLTFA was not truly “in the business” of providing MSB services and would not be subject to the statute’s requirements. It remains to be seen whether, as a result of the recent changes, payment facilitators and other service providers in the payments chain that are not directly involved in the handling of funds will be caught by the enlarged MSB net. Careful analysis will now be required to determine the obligations of each of the participants in a payments chain. While

(BoC) and is expected to impose certain obligations on PSPs (including registration with the BoC and implementation of operational risk management frameworks), some of which appear to overlap with requirements under the PCMLTFA. As a result, some uncertainty exists regarding the extent to which the Amending Regulations reflect the government’s decision to transfer some of the responsibility for regulating the retail payments ecosystem from the BoC to FINTRAC, and whether this transfer is being made on a temporary or a permanent basis.

Legal advisers and payments industry participants alike must await further regulatory guidance to obtain clarity on the full scope and impact of the Amending Regulations and how the new requirements will be harmonized with other legislation that the federal government is currently developing.

JACK FRANKLIN, ZAIN RIZVI and GILLIAN R. STACEY are partners at Davies Ward Phillips & Vineberg LLP. 1 Under the PCMLTFA, the definition of MSB includes, among other things, any entity that is engaged “in the business” of (i) foreign exchange dealing, (ii) remitting funds or transmitting funds, (iii) issuing or redeeming negotiable instruments, or (iv) dealing in virtual currencies.

SUMMER 2022

FEI CANADA

REGULATORY NEWS

The Frank S. Capon Distinguished Service Award

Nicole Archibald Awarded Financial Executives International Canada’s (FEI Canada) Highest Honour E ach year, Financial Executives International Canada (FEI Canada) honours one member who has contributed significantly to improving the organization. FEI Canada is delighted to announce the 2022 Frank S. Capon Distinguished Service Award has been awarded to Nicole Archibald from the Southwestern Ontario Chapter (SWO).

Nicole completed her CPA, CA designation in 1993 and began her career at EY as an Audit team member. Since the end of her public accounting career, she has held various leadership roles, including CFO, at companies in various industries, including medical device distribution, financial services, and power distribution.

Currently, Nicole serves her own consulting practice, providing fractional CFO services to small and midsize companies.

For over 15 years, Nicole has been a passionate and enthusiastic FEI Canada member and volunteer. During her FEI career, she has demonstrated leadership and resiliency with her strategic thinking abilities to navigate complex situations. Nicole served on both the FEI National Board and the SWO Board as Chair, as well as on various committees at the national and chapter levels. She assembled and chaired the inaugural board of the Golden Triangle (Kitchener/ Waterloo/Guelph) Chapter, meaningfully contributing to the first expansion of FEI Canada in years.

“Nicole demonstrates diligence by adapting to changing environments while adjusting to organizational goals. She is an influential member at FEI Canada who continues to provide a positive impact, empowering her team to work collaboratively.” Norm Ferguson, FEI Chair of FEI Thought Leadership Forum, past Frank S. Capon Award recipient.

SUMMER 2022

“Nicole’s leadership and commitment to FEI has been nothing short of remarkable, and she is without a doubt a deserving recipient of this esteemed award.” Dave Bezanson, FEI Canada Board of Directors Chair.

The Frank S. Capon Distinguished Service Award ceremony took place at the 2022 FEI Canada Conference, Peering Over the Horizon

Financial Executives International Canada (FEI Canada) is the leading voice and informed choice for senior financial executives across the country. With 12 chapters and 1,500+ members, FEI Canada provides professional development, networking opportunities, thought leadership and advocacy services to its members. The association membership consists of senior-level financial executives spanning various industries, functions and disciplines, representing a significant number of Canada’s leading and most influential corporations. For more information, please visit www.feicanada.org or follow us on LinkedIn www.linkedin.com/company/feicanada/ and Twitter @FEICanada.

TOTAL FINANCE

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